Columbia, a municipality or other political subdivision, authority, commission, board, district, public corporation or other agency or instrumentality of the several States and the District of Columbia and any board, commission, agency, or other instrumentality of a local government.

[37 F.R. 1238, Jan. 27, 1972, as amended at 37 F.R. 2678, Feb. 4, 1972; 37 F.R. 3913, Feb. 24, 1972; 37 F.R. 6827, Apr. 5, 1972; 37 F.R. 9457, May 11, 1972; 37 F.R. 14753, July 25, 1972]

Subpart B-Price Adjustments-
Classification and Procedures

(a) A price category I firm is:

(1) A firm with annual sales or revenues of $100 million or more;

(2) A firm that operates or controls a mass transportation system, the fares of which are not otherwise regulated;

(3) A firm engaged in construction as defined by section 11 of Executive Order No. 11588 (3 CFR 1971 Comp., p. 147), with annual sales or revenues of $50 million or more.

(b) Each price category I firm shall submit a prenotification to the Price Commission of each proposed price adjustment in accordance with regulations issued by the Price Commission.

(c) No proposed price adjustment shall be put into effect by any price category I firm unless such price adjustment has been approved or permitted to take effect in accordance with regulations issued by the Price Commission.

(d) Each price category I firm shall submit quarterly reports to the Price Commission with information on prices, costs, and profits in accordance with regulations issued by the Price Commission. [37 F.R. 1238, Jan. 27, 1972, as amended at 37 F.R. 8940, May 3, 1972; 37 F.R. 13476, July 8, 1972]

ception from the Price Commission from the price adjustment limitations imposed in §§ 300.18 and 300.19 of this title.

(3) A firm engaged in construction as defined by section 11 of Executive Order No. 11588 (3 CFR 1971 Comp., p. 147), with annual sales or revenues of $25 million to $50 million.

(b) Each price category II firm shall submit quarterly reports to the Price Commission with information on prices, costs, and profits in accordance with regulations issued by the Price Commission.

[37 F.R. 1238, Jan. 27, 1972, as amended at 37 F.R. 8940, May 3, 1972; 37 F.R. 13477, July 8, 1972]

$101.15 Price category III forms; monitoring and spot checks.

(a) A price category III firm is:

(1) A firm with annual sales or revenues of less than $50 million other than a firm described in § 101.11(a) (2) through (4) or § 101.13 (a) (2) and (3);

(2) An institutional or noninstitutional provider of health services (as defined in §§ 300.18 and 300.19 of this title) (i) with annual sales or revenues between $1 million and $50 million which has not received an exception from the Price Commission from the price adjustment limitations imposed in §§ 300.18 and 300.19 of this title, or (ii) with annual sales or revenues of $1 million or less.

(3) A firm engaged in construction as defined by section 11 of Executive Order No. 11588 (3 CFR 1971 Comp., p. 147) with annual sales or revenues of less than $25 million.

(b) The price adjustments of price category III firms are not subject to prenotification or reporting. However, they are subject to monitoring and spot checks, as are price adjustments by firms in other categories.

[37 F.R. 1238, Jan. 27, 1972, as amended at 37 F.R. 8940, May 3, 1972; 37 F.R. 16501, Aug. 15, 1972]

§ 101.16 Modification of prenotification

requirements.

Notwithstanding the provisions of § 101.11 the following price adjustments by price category I firms need not be prenotified:

(a) Price adjustments based upon the increased cost of raw or partially processed products subject to the conditions and procedures prescribed in § 300.51 (f) through (i) of this title.

(b) Price adjustments below the base price as determined under Subpart F of chapter III of this title subject to the conditions and procedures prescribed therein.

(c) Price adjustments proposed to established by those utilities subject to the conditions and procedures prescribed in § 300.16 and § 300.16a of this title.

(d) Price adjustments with respect to insurance premiums affecting less than $1 million in aggregate annualized premiums under the existing rate or when the annual sales or revenues of the firm are less than $250 million, by those firms subject to the conditions and procedures prescribed in § 300.20 of this title.

(e) Price adjustments by firms leasing or offering to lease any residence or other real property subject to the conditions and procedures prescribed in Part 301 of this title.

(f) Subject to conditions and procedures prescribed by the Price Commission, price adjustments proposed or established by a multi-industry firm with respect to goods or services when the annual sales or revenues of the firm of such goods or services are less than $100 million with any two-digit Standard Industrial Classification as published in the 1972 Standard Industrial Classification Manual by the Office of the Management and Budget (formerly the Bureau of the Budget): Provided, however, That the operations of this rule shall not permit a modification of the prenotification requirements for any price adjustment:

(1) Of & mass transportation system, the fares of which are not otherwise regulated;

(2) For construction as defined by section 11 of Executive Order No. 11588 (3 CFR 1971 Comp., 36 F.R. 6339) by a firm with annual sales or revenues of $50 million or more derived from construction.

(g) Price adjustments for regulated milk and milk products subject to the conditions and procedures prescribed in § 300.17 of this title.

(h) Price adjustments proposed or established by low-profit firms as defined in and subject to the conditions and procedures prescribed in § 300.31 of this title.

(i) Price adjustments for institutional or noninstitutional providers of health services subject to the conditions and procedures prescribed in §§ 300.18 and 300.19 of this title.

(j) Nonprofit organizations:

(1) General waived. Price adjustments by a nonprofit organization with less than $100 million in annual sales or revenues derived from transactions in property or services which are not exempt under Subpart D of this part or otherwise excluded from coverage of this title.

rule-prenotification

not

(2) Exception—prenotification waived. The waiver of the prenotification requirements of this paragraph does not apply to those price adjustments made by a nonprofit organization (i) which operates a mass transportation system, the fares of which are not otherwise regulated, or (ii) which is engaged in construction as defined by section 11 of Executive Order No. 11588 (3 CFR 1971 Comp., 36 F.R. 6339), with annual sales or revenues of $50 million or more insofar as price adjustments apply to the activities described in subdivisions (i) and (ii) of this subparagraph.

(k) Price adjustments for items which are exempt under Subpart D of this Part or otherwise excluded from coverage of this title.

[37 F.R. 1238, Jan. 27, 1972, as amended at 37 F.R. 5701, Mar. 18, 1972; 37 F.R. 8940, May 3, 1972; 37 F.R. 13477, July 8, 1972; 37 F.R. 19798, Sept. 22, 1972]

§ 101.17 Modification of reporting re

quirements.

(a) Notwithstanding the provisions of §§ 101.11 and 101.13, quarterly reports to the Price Commission need not be submitted to the Price Commission by a utility subject to the conditions and procedures prescribed in § 300.16 of this title: Provided, however, That any such utility which has not submited quarterly reports pursuant to this section shall submit to the Price Commission such certification as may be required by regulations issued by the Price Commission.

(b) Notwithstanding the provisions of §§ 101.11 and 101.13 and except as otherwise provided in § 101.13(a) (2) and §§ 300.18 and 300.19 of this title, quarterly reports to the Price Commission need not be submitted by an institutional or noninstitutional provider of health services having annual sales or revenues of $50 million or more.

(c) Nonprofit organizations:

(1) General rule-reporting waived. Notwithstanding the provisions of §§ 101.11 and 101.13 quarterly reports to the Price Commission need not be submitted by a nonprofit organization with

less than $50 million derived from transactions in property or services which are not exempt under Subpart D to this part, or otherwise excluded from coverage of this title.

(2) Exception-reporting not waived. Waiver of the reporting requirements of §§ 101.11 and 101.13 does not apply to prices, costs, and profits of a nonprofit organization (1) which owns or operates an institutional or noninstitutional provider of health services (as defined in §§ 300.18 and 300.19 of this title) with annual sales or revenues in excess of $1 million, and which has received an exception from the Price Commission from the price adjustment limitations imposed in §§ 300.18 and 300.19 of this title; or (ii) which is engaged in construction as defined by section 11 of Executive Order No. 11588 (3 CFR 1971 Comp., 36 F.R. 6339), with annual sales or revenues of $25 million or more, insofar as the prices, costs, and profits apply to the activities described in subdivisions (1) and (ii) of this subparagraph.

(d) Notwithstanding the provisions of §§ 101.11 and 101.13 quarterly reports to the Price Commission need not be submitted by a firm whose total annual sales or revenues are derived from transactions involving goods and services which are exempt under Subpart D or otherwise excluded from coverage of this title. [37 F.R. 13477, July 8, 1972, as amended at 37 F.R. 19798, Sept. 22, 1972]

construction (as defined in section 11(a) of Executive Order No. 11588 supra); or

(3) A pay adjustment mandated by the action of a legislative or administrative body of a State government which applies to or affects employees of units of local government as defined in § 101.51 (d) (2).

(b) Prenotification of each proposed category I pay adjustment shall be submitted to the Pay Board in accordance with regulations issued by the Pay Board.

(c) No proposed category I pay adjustment shall be put into effect unless such pay adjustment has been approved or permitted to take effect in accordance with regulations issued by the Pay Board.

[37 F.R. 1237, Jan. 27, 1972, as amended at 37 F.R. 14530, July 20, 1972; 37 F.R. 19798, Sept. 22, 1972]

§ 101.23 Category II pay adjustments; reporting requirements.

(a) A category II pay adjustment means a pay adjustment which applies to or affects from 1,000 to 5,000 employees.

(b) Each category II pay adjustment shall be reported to the Pay Board in accordance with regulations issued by the Pay Board.

§ 101.25 Category III pay adjustments; monitoring and spot checks.

(a) A category III pay adjustment means a pay adjustment which applies to or affects less than 1,000 employees.

(b) Category III pay adjustments are not subject to prenotification and reporting. However, they are subject to monitoring and spot checks as are pay adjustments by firms in other categories.

§ 101.28 Pay adjustments of State and local government employees.

Pay adjustments which affect the employees of State and local governments, except those pay adjustments defined in § 101.21 (a) (3), need not be submitted to the Pay Board in accordance with the provisions of § 101.21 (b) and (c). Such pay adjustments are, however, subject to the reporting requirements of § 101.23, except that such pay adjustments and other pay adjustments affecting the employees of State and local governments which would otherwise be subject to § 101.23, need not be submitted to the Pay Board when certification is submitted at the beginning of such govern

ment's fiscal year and each 6 months thereafter to the Pay Board in accordance with regulations issued by the Pay Board that such pay adjustments are not in excess of 5.5 percent. Approval, however, must be granted by the Pay Board for any pay adjustment in excess of 5.5 percent which affects the employees of State and local governments.

[37 F.R. 19799, Sept. 22, 1972]

§ 101.29 Reclassification.

With the advice of the Pay Board, the Director of the Cost of Living Council has authority to reclassify pay adjustments from one category to another when he deems such action necessary or advisable to effectuate the purposes of the Act and regulations issued pursuant thereto. Subpart D-Exemptions-Items not Included in Coverage

All seeds for plant- Seeds processed for other ing.

uses.

Raw coffee bean___ Roasted coffee bean.
Canned and frozen veg-
etables.
Dill pickles.

the

Stumpage or trees cut from stump.

Garden plants.

Package slaw.

(2) Special rule: Only the first sale by the producer or grower of those agricultural products which are of a type sold for ultimate consumption in their original physical form is exempt. Examples of these products are:

(b) Raw seafood products. The first sale by a producer or fisherman of raw seafood products including those which have shelled, shucked, iced, skinned, scaled, eviscerated, or decapitated is exempt.

(c) Raw sugar prices. Raw sugar price adjustments which are controlled under the Sugar Act of 1948, as amended. [37 F.R. 1238, Jan. 27, 1972, as amended at 37 F.R. 12961, June 30, 1972; 37 F.R. 16501, Aug. 15, 1972]

§ 101.33 Real estate and insurance premiums.

(a) Real estate-(1) Sales. (i) Unimproved real estate.

(ii) Real estate with improvements completed prior to August 15, 1971.

(iii) Real estate with improvements completed on or after August 15, 1971, if

(a) The sales price is determined after the completion of construction; or

(b) The sales price is determined before the completion of construction and the wage rates estimated by the builder at the time the price is determined are not subsequently reduced by any action of the Pay Board.

(2) Rentals. (1) All nonresidential property, including property leased for industrial, farm, or commercial purposes.

(ii) Rental units, including houses, apartments, or any other residential rental property, on which construction is completed, and which are offered for rent for the first time, after August 15, 1971.

(iii) Rehabilitated dwellings offered for rent in the newly rehabilitated condition for the first time after August 15, 1971, if the cost of rehabilitation exceeds one-half of either the undepreciated cost

or the fair market value of the dwelling preceding the rehabilitation.

(iv) Single family dwelling units and rental units in multifamily dwellings, provided the owner of such units and members of his family (as defined in section 318 of the Internal Revenue Code of 1954, as amended) do not own or control, directly or indirectly, more than an aggregate of four such rental units.

(v) Single family dwelling units and rental units in multifamily dwellings for which the monthly rent (as defined in § 301.3 of this title) was $500 or more on January 19, 1972, or if unoccupied on that date, was $500 or more during the base rental period, as defined in Subpart C of Part 301 of this title.

(3) Real estate land leases if:

(i) A residence is established on the leasehold;

(ii) The ground rent charged under such lease is fixed for a period of 20 years or more; and

(iii) Any extension, renewal or renegotiation of such land lease is for a period of 10 years or more and is computed on a percentage of the appraised value of the leased land.

(b) Insurance premiums. (1) Premiums charged for the following lines of insurance purchased or renewed after November 13, 1971:

(i) Reinsurance of all kinds.
(ii) Ocean marine insurance.

(iii) Inland marine insurance on a bid basis applicable to facilities of transportation and communication.

(iv) Life insurance, annuities, and endowments (including individual and group contracts of: Ordinary and term life insurance, fixed and variable annuities, and endowments of all kinds); but excluding credit life insurance of any kind.

(v) Individually negotiated and rated insurance contracts written in excess of a self-insured retention of at least $100,000.

(2) Premiums charged for the following sublines of aviation insurance purchased or renewed after September 1, 1972:

(i) Hull insurance.

(ii) Liability insurance for bodily injury (excluding passenger hazard) caused by an aircraft.

(iii) Liability insurance for property damage caused by an aircraft.

[37 F.R. 1238, Jan. 27, 1972, as amended at 37 F.R. 2678, Feb. 4, 1972; 37 F.R. 3913, Feb. 24, 1972; 37 F.R. 19799, Sept. 22, 1972]