EXECUTIVE CRDER 11695—FURTHER PROVIDING FOR THE SOURCE: 38 F.R. 1473, Jan. 12, 1973. On August 15, 1971, I issued Executive Order 11615 establishing a freeze on prices, rents, wages and salaries for a period of 90 days from the date of that order and establishing the Cost of Living Council as the agency with primary responsibility for administering the Economic Stabilization Program. Subsequently, I issued Executive Order 11627 which continued the Cost of Living Council and established a Pay Board and a Price Commission. Under the terms of that order, the Cost of Living Council established broad stabilization goals for the Nation and the Pay Board and Price Commission, acting through their respective Chairmen, prescribed specific standards, criteria and regulations and made rulings and decisions aimed at carrying out goals of the Economic Stabilization Program. On December 22, 1971, I signed into law amendments to the Economic Stabilization Act of 1970. To reflect changes made by these amendments and to reaffirm the existing delegation of authority to the Cost of Living Council, I substituted Executive Order 11640. As the result of efforts under the Economic Stabilization Program, by public officials and private citizens alike, the rate of inflation has been significantly reduced. However, in furtherance of the goals and for the reasons set forth in my message to the Congress of this date, I have determined that to continue to stabilize the economy, reduce inflation, minimize unemployment, improve the Nation's competitive position in world trade, and protect the purchasing power of the dollar, all in the context of sound fiscal management and effective monetary policies, the Economic Stabilization Program should be continued, building upon the solid foundation of achievement accomplished in the past and redirecting our efforts to respond to the needs of the current year. NOW, THEREFORE, by virtue of the authority vested in me by the Constitution and statutes of the United States, particularly the Economic Stabilization Act of 1970, as amended, it is hereby ordered as follows: SECTION 1. (a) The Cost of Living Council (hereinafter referred to as the "Council"), established by section 2 of the Executive Order 11615 of August 15, 1971, is hereby continued. (b) The Council shall be composed of the following members: The Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Labor, the Secretary of Health, Education, and Welfare, the Secretary of Housing and Urban Development, the Director of the Office of Management and Budget, the Chairman of the Council of Economic Advisers, the Director of the Office of Emergency Preparedness, the Special Assistant to the President for Consumer Affairs and such others as the President may, from time to time, designate. The Secretary of the Treasury shall serve as Chairman of the Council and the Chairman of the Council of Economic Advisers shall serve as Vice Chairman. The Chairman of the Board of Governors of the Federal Reserve System shall serve as adviser to the Council. (c) There shall be a Director of the Cost of Living Council who shall be appointed by the President, be a member of the Council, be a fulltime official of the United States, be the Council's Chief Executive Officer, and be compensated at the rate prescribed for Level III of the Executive Schedule by section 5314 of Title 5 of the United States Code. SEC. 2. (a) Except as otherwise provided in subsection (b) of this section, all the powers and duties conferred upon the President by the Economic Stabilization Act of 1970, as amended, are hereby delegated to the Chairman of the Council, including, without limitation, the power and duty to make the determinations and take the actions required or permitted by the act. (b) The authority conferred by or pursuant to this order shall not extend to the prices charged for raw agricultural products until after the first sale thereof. (c) The Council shall develop and recommend to the President policies, mechanisms and procedures to achieve and maintain stability of prices and costs in a growing economy. To this end it shall consult with representatives of agriculture, industry, labor, State and local governments, consumers and the public, including the National Commission on Productivity. (d) In all of its actions the Council shall be guided by the need to maintain consistency of price and wage policies with fiscal, monetary, international, and other economic policies of the United States. (e) The Council shall inform the public, agriculture, industry, and labor concerning the need for controlling inflation and shall encourage and promote voluntary action to that end. SEC. 3. (a) All orders, regulations, circulars, rulings, notices or other directives issued and all other actions taken by any agency pursuant to Executive Order 11588, as amended, Executive Order 11615, as amended, Executive Order 11627, as amended, and Executive Order 11640, as amended, and in effect on the date of this order are hereby confirmed and ratified, and shall remain in full force and effect as if issued under this order, unless or until altered, amended, or revoked by the Chairman or by such competent authority as the Chairman may specify, and shall be administered by the Chairman or by such competent authority as the Chairman may specify. (b) The Chairman shall take such steps as are necessary to make appropriate disposition of actions in process under the Economic Stabilization Program and to effect an orderly transfer of stabilization functions pursuant to this order. (c) This order shall not operate to defeat any suit, action, prosecution, or administrative proceeding, whether heretofore or hereafter commenced, with respect to any right possessed, liability incurred, or offense committed prior to this date. (d) Renegotiation provisions in price, rent, wage or salary contracts which are dependent for their operation on modification or termination of the Economic Stabilization Program are hereby declared inoperative as unreasonably inconsistent with the goals of the Economic Stabilization Program. Except to the extent permitted pursuant to the provisions of section 4 (a), this order shall not operate to permit: (i) A retroactive increase in prices, rents, wages or salaries for goods or services sold or leased or work performed while the prices, rents, wages or salaries were subject to the rules of the Price Commission or the Pay Board, or (ii) A prospective increase in prices, rents, wages or salaries under the terms of a contract subject to a Price Commission or Pay Board decision and order, except to the extent consistent with such decision and order. SEC. 4. (a) The Chairman, in carrying out the provisions of this order, may continue to (i) prescribe definitions for any terms used herein, (ii) make exceptions or grant exemptions, (iii) issue regulations and orders, (iv) provide for the establishment of committees and other comparable groups, and (v) take such other actions as he determines to be necessary or appropriate to carry out the purposes of this order. (b) The Chairman may redelegate to any agency, instrumentality, or official of the United States any authority under this order, and may, in administering this order, utilize the services of any other agency, Federal or State, as may be available or appropriate. (c) On request of the Chairman, each executive department or agency is authorized and directed, consistent with law, to furnish the Council with any available information which the Council may require in the performance of its functions, and shall provide such other assistance in carrying out the provisions of this order as is permitted by law. SEC. 5. (a) The Construction Industry Stabilization Committee (hereinafter referred to as the CISC) established by section 2 of Executive Order 11588 of March 29, 1971, is hereby continued and shall continue to act as an agency of the United States. The CISC shall perform such functions with respect to the stabilization of wages and salaries in the construction industry as the Chairman of the Council may delegate to it. (b) The CISC shall be composed of twelve members. The CISC shall include four members representative of labor organizations in the construction industry, four members representative of employers in the construction industry, and four members representative of the public. The CISC shall conduct its proceedings in such manner as will be conducive to the proper dispatch of its business and to the ends of justice. (c) The craft dispute boards (hereinafter referred to as "boards") established by associations of contractors and national and international unions under section 2 of Executive Order 11588 are hereby continued. Each board shall be composed of appropriate labor and management representatives. The boards shall perform such functions with respect to the stabilization of wages and salaries in the construction industry as the Chairman of the Council may prescribe. (d) Upon a determination by a board or the CISC that a proposed wage or salary increase is not acceptable and certification of that determination by the Chairman of the Cost of Living Council the following actions shall be taken. (i) In implementing the provisions of the Davis-Bacon Act of March 3, 1931 (46 Stat. 1494, as amended) and related statutes the provisions of which are dependent upon determinations by the Secretary of Labor under the Davis-Bacon Act, and including State statutes or laws requiring similar wage standards, the Secretary of Labor and all States shall not take into consideration any wage or salary increases in excess of that found to be acceptable in making determinations under that act and related statutes. (ii) In order to assure that unacceptable wage rates shall not be utilized in Federal or federally-related construction, the heads of all Federal departments and agencies, subject to the direction and coordination of the Chairman of the Cost of Living Council: (1) shall review all plans for construction and financial assistance for construction in localities in which wage or salary increases have been certified by the Chairman of the Cost of Living Council to be unacceptable and shall, on the basis of that review, determine whether such plans can be approved or continued; and (2) shall review current and prospective construction contracts for Federal construction and for construction on projects receiving Federal financial assistance in the area affected by a certification by the Chairman of the Cost of Living Council and shall, on the basis of such review, determine whether such contracts can be awarded or continued. SEC. 6. (a) There is hereby established the Cost of Living Council Committee on Health to be composed of the Director of the Council, who shall be its Chairman, the Vice Chairman of the Council, the Secretary of the Treasury, the Secretary of Health, Education, and Welfare, the Director of the Office of Management and Budget, and such others as the President may, from time to time, designate. The Committee shall review Government activities significantly influencing health care expenses and make recommendations to the Chairman of the Council concerning these matters. (b) There is hereby established a Health Industry Advisory Committee. This Committee shall be composed of such members as the President may, from time to time, appoint. The President shall designate the Chairman of the Committee. The Committee shall provide advice to the Council on the operation of the Economic Stabilization Program in the health industry and other matters related to health care expenses. SEC. 7. (a) There is hereby established the Cost of Living Council Committee on Food which shall be composed of the Chairman of the Council, who shall be its Chairman, the Vice Chairman of the Council, the Director of the Council, the Secretary of Agriculture, the Director of the Office of Management and Budget and such others as the President may, from time to time, designate. The Committee shall review Govern |