ssue. Does the sale of covered petroleum products by Company A preclude the n from utilizing the pricing provisions of the loss and low profit rule with ard to its activities which are not subject to Subpart L? tuling. No. Subpart L only supersedes the application of the loss and low profit es "with respect to sales and leases subject to this subpart." This language intended to insure that the prices charged for petroleum products are solely ulated by Subpart L and may not be adjusted to compensate for low profit rgins. The language does not, however, prevent the application of the loss and 7 profit rules to a firm's other activities. A firm must still qualify for use of the s and low profit rules on the basis of all of its activities, including sales of ered petroleum products. If it qualifies, the firm may then use the loss and low fit rules in determining the prices it may charge except for prices of covered roleum products. The firm's activities with respect to covered petroleum prods remain subject to the rules of Subpart L. WILLIAM N. WALKER, General Counsel, Cost of Living Council. OCTOBER 24, 1973. [FR Doc. 73-22985 Filed 10-25-73; 10:48 am] PART 152-COST OF LIVING COUNCIL PHASE IV REGULATIONS tension of Interim Rules Applicable to the Food Industry and Miscellaneous Changes Part 152 is amended in Subpart H to extend the interim rules for reporting y adjustments in the food industry and to make various technical and clarifychanges in the special rules applicable to the food industry. Section 152.71 is amended to make clear that the small business exemption in 52.41 is applicable to pay adjustments affecting employees in the food industry. Section 152.72 is amended in paragraph (c) to include employees of mobile ach wagons as described in Standard Industrial Classification Code 5963 among ose employees not subject to the provisions of this subpart. Section 152.74 is amended in paragraph (e) to eliminate the requirement of -month prenotification with regard to nonbudgeted pay adjustments and to quire further prenotification in the event that actual pay adjustments will eed those pay adjustments initially prenotified. Section 152.73 is amended in paragraph (a) and § 152.75 is amended in paraphs (a), (b), and (c) to extend the interim rules through January 31, 1974. On July 19, 1973, the Council extended the interim rules for reporting pay justments affecting employees in the food industry until November 1, 1973. August and September of 1973, meetings were held by the Council in various ies throughout the country with representatives of the food industry, at which estions were raised concerning the prenotification requirements. In view of è concerns expressed in such meetings, the Council has determined that the jectives and goals of the Economic Stabilization Program can better be served extending the period during which the interim rules shall be followed to nuary 31, 1974, and by delaying the general operation of the prenotification es until February 1, 1974. Thus, for example, the operation of the prenotifiion rule in § 152.73 (b) will be delayed in taking effect from November 1, 3, until February 1, 1974, even with respect to prenotifications already reved by the Council for pay adjustments scheduled to be put into effect between ose dates. Such pay adjustments are therefore subject to the rules of § 152.75 elusively. Any prenotification of such a pay adjustment already filed will be ated as a report to the extent appropriate under the interim rules in § 152.75, the pay adjustments so reported need not be reported again. However, no adjustment (except those described in § 152.75 (a)) may be implemented in cess of the general wage and salary standard unless specifically approved by - Council. Because the immediate implementation of Executive Order No. 11730 is reIred, and because the purpose of these regulations is to provide immediate Edance as to Cost of Living Council decisions, the Council finds that publication accordance with normal rule making procedures is impracticable and that od cause exists for making these amendments effective in less than 30 days. Interested persons may submit comments regarding these amendments. Coman cations should be addressed to the Office of the General Counsel, Cost of Litig Council, Washington, D.C. 20508. (Economic Stabilization Act of 1970, as amended, Public Law 92-210, 85 Stat. 743: P Law 93-28, 87 Stat. 27; E.O. 11695, 38 FR 1473; E.O. 11730, 38 FR 19345; Cost of Livin Council Order No. 14, 38 FR 1489.) JAMES W. MCLANE, PARAGRAPH 1. Part 152 of Title 6 of the Code of Federal Regulations is amende by revising § 152.71 to read as follows: § 152.71 Scope. This subpart establishes special mandatory rules applicable to pay adjus ments affecting employees in the food industry. This subpart does not appi the pay adjustments of any manufacturer, service organization, wholesaler r retailer which both derives less than 20 percent of its annual sales or revens from sales of food and less than $50 million of annual sales or revenues fr sales of food. The small business exemption set forth in Subpart E of this par is applicable to pay adjustments affecting employees in the food industry, wi respect to work performed on and after September 12, 1973. PAR. 2. Section 152.72 is amended by revising the introductory material in paragraph (c) to read as follows: $152.72 Pay adjustments affecting employees in the food industry. (c) On and after June 25, 1973, for purposes of paragraph (b) of this section "Pay adjustments affecting employees in the food industry" does not include par adjustments with respect to employees engaged on a regular and contin basis in the operation of an eating place (described in Standard Industrial Clas sification Code 5812) or drinking place (described in Standard Industria Classification Code 5813) or mobile lunch wagons (described in Standa Industrial Classification Code 5963) or in the rendering of administrative at support functions with respect to such operation, unless PAR. 3. Section 152.73 is amended by deleting the date "November 1, 1973" the introductory material in paragraph (b)(1) and by inserting in its place the date "February 1, 1974". PAR. 4. Section 152.74 is amended by revising paragraph (e) to read as t lows: § 152.74 Procedures for prenotification and reporting. (e) Individual increases. For purposes of §§ 152.73 and 152.75 prenotificati of proposed pay adjustments affecting employees in the food industry shall be submitted to the Council in the manner set forth in this paragraph if such par adjustments apply to individual employees within an appropriate emple unit during a control year, e.g., through operation of a merit plan which provids individual increases on a random or variable timing basis: (1) Prenotification for budgeted and nonbudgeted pay adjustments. If * pay adjustments for a control year are budgeted in advance of such con year, prenotification shall be submitted to the Council not less than 60 da prior to the first day of such control year, or as soon thereafter as the am and timing of such proposed pay adjustments have been determined. If suc pay adjustments are not budgeted in advance of a control year, prenotificat shall be submitted to the Council not less than 60 days prior to the first dar such control year, or as soon thereafter as reasonable and supportable estimates of the amount and timing of pay adjustments anticipated or planned for a ing such control year can be provided. Such prenotification shall include s estimates and the grounds therefor. (2) Further prenotification. If an initial prenotification has been made and the amount of pay adjustments will be greater than that prenotified, furth prenotification shall be submitted to the Council not later than 60 days priv pay adjustment which will cause the percentage amount for the entire emee unit involved to exceed the percentage am ant initially prenotified. 3) Limitation on pay adjustments.-The total of wage and salary increases into effect during a control year in a unit for which prentication has been mitted under the provisions of this paragraph shall at no time exceed the cimum permissible annual aggregate wage and salary increase which has a approved by the Council following such prenotification, or which has n permitted to be put into effect pursuant to the provisions of § 152.73(b). AR. 5. Section 152.75 is revised to read as follows: 2.75 Interim rules for the period ending January 31, 1974. a) Contracts and pay practices in czistence prior to November 14, 1971.— withstanding the provisions of $152.73, a pay adjustment scheduled to be into effect after 9 p.m., e.s.t., March 29, 1973, and prior to February 1, 4, under the terms of a contract or pay practice previously set forth which sted prior to November 14, 1971. may be put into effect according to the ms of such contract or pay practice (provided that in the case of a pay ctice such pay adjustment is put into effect with respect to a control year inning prior to November 14, 1972). However, a report of such pay adjustnt shall be submitted to the Council not later than 10 days after such pay ustment is put into effect. Pay adjustments put into effect pursuant to the visions of this paragraph are subject to challenge by any party at interest by the Council. A challenge by a party at interest shall be submitted to the incil. In the contract or pay practice shall be allowed to remain in effect ess and until the Council rules otherwise. The Council will review a chalged pay adjustment to determine whether any wage or salary increase is reasonably inconsistent with the standards and goals of the economic bilization program. Following such review, the Council may approve such 7 adjustment, prescribe specific wages or salaries, or impose any other uirements which are reasonable and appropriate to accomplish the purpose he economic stabilization program. b) Contracts and pay practices in existence after November 13, 1971, and or to 9 p.m., e.s.t., March 29, 1973.—Notwithstanding the provisions of 52.73, a pay adjustment scheduled to be put into effect prior to February 1, 4, under the terms of a contract entered into or a pay practice established or to 9 p.m., e.s.t., March 29, 1973, which is not within the provisions of agraph (a) of this section, may be put into effect without prenotification, to e extent that the total of all pay adjustments for the control year with pect to the appropriate employee unit does not exceed the general wage and ary standard (or applicable exception thereto for which prior approval was required under the rules and regulations of the Pay Board in effect on uary 10, 1973). A report of a pay adjustment put into effect pursuant to the visions of this paragraph shall be submitted to the Council not later than days after such pay adjustment has been put into effect. Such report shall lude pay adjustments actually made and any pay adjustments for which proval of the Council is required. A pay adjustment put into effect pursuant the provisions of this paragraph remains subject to review by the Council, ich may by order prescribe specific wages or salaries. COST OF LIVING COUNCIL FOOD INDUSTRY WAGE AND SALARY COMMITTEE NOTICE OF CLOSED MEETING Pursuant to the provisions of the Federal Advisory Committee Act (Public w 92-463, 86 Stat. 770) notice is hereby given that the Food Industry Wage d Salary Committee, established under the authority of section 212(f) (iv) of ecutive Order 11695, and Cost of Living Council Order No. 14, will meet at a.m., Thursday, November 1, 1973, at 2025 M Street NW., Washington, D.C. The agenda will consist of discussions leading to recommendations on specific ase II and Phase III wage cases in the food area, and future wage policy. Since the above stated meeting will consist of discussions of future food wage 28-511-74-33 policy and Phase II and III cases for decision, pursuant to authority granted ze by Cost of Living Council Order 25, I have determined that the meeting wo fall within exemption (5) of 5 U.S.C. 552(b) and that it is essential to cle the meeting to protect the free exchange of internal views and to avoid inter ference with the operation of the Committee. Issued in Washington, D.C., on October 24, 1973. HENRY H. PERRITT, Jr., [FR Doc. 73-22937 Filed 10-24-73; 3:25 pm] COST OF LIVING COUNCIL [6 CFR Part 150] PHASE IV PRICE REGULATIONS STATE AND LOCAL GOVERNMENT SALES OF PETROLEUM PRODUCTS Notice is hereby given that, pursuant to the authority of Executive Orders 11695 and 11730, the Cost of Living Council, as part of its continuing review of the operation of price controls with respect to the petroleum industry, is co sidering the adoption of certain amendments to exclude sales of "covered pro ucts" as defined in Subpart L from the exemption of price adjustments by State and local governments. If ultimately adopted, this regulation would be effective as of 9 a.m., e.s.t. October 25, 1973, the date upon which this notice of propose rulemaking is filed with the FEDERAL REGISTER. It would occur to any delivery d covered products occurring after that date. The Council is aware that certain government units as lessors of crude pe troleum fields have the option to take royalty payment in kind. Under the e isting regulations sales of products including crude petroleum and refined troleum products by State and local governments are exempt from the Subpart L price rules for covered products. Under the proposed rule, the sale of cra petroleum or refined petroleum by State and local governments would be treated in the same manner as a sale by any other firm and would be subject to the provisions of Subpart L. In undertaking this rulemaking procedure, the Council wishes to solicit co ments on the impact of such a rule both with respect to supply and price stabili tion. The Council is particularly interested in receiving comments on the proposed rule that focus upon the issues discussed in this notice. Comments on the magnitude of the impact of the proposed rule in relati to total domestic sales of crude petroleum are of particular interest. Legislation currently pending in Congress proposes to exempt from all price controls the pr duction of crude petroleum from stripper wells. The amount of production which would be affected by such an exemption is substantial, and the removal of the exemption from government sales should be viewed in this light. Presently, there is a mandatory allocation program for propane and a mandi tory allocation program for middle distillates scheduled to take effect on Xvember 1. In addition, there is legislation pending which would impose mandatory controls on the allocation of crude petroleum. The Council is interested in the impact of sales of crude petroleum by states upon the regulatory scheme of any mandatory allocation program. The effects of possible changes in traditional supply patterns which could * sult from sales of crude petroleum by states as well as the availability of alter nate sources of supply both for the lessee refiners and those purchasing from the states are also matter on which the Council invites comments. The Council is concerned about the possible impact of the proposed rule light of the increasingly tight supply situation caused by the recent actions f certain mideast governments with respect to the curtailment of sales of cru petroleum to the United States. These actions complicate the domestic crude roleum supply situation, and may directly affect prices for crude petrolen refined products. Interested persons are invited to participate in the rulemaking by submitting ritten data, views or arguments with respect to the proposed regulations forth in this notice to the Executive Secretariat, Cost of Living Council. M Street NW., Washington, D.C. 20508. Comments should be identified on the outside envelope and on the document mitted with the designation "Proposed Phase IV Petroleum Amendments." n copies should be submitted. All comments received by November 24, 1973, it be considered by the Council before final action is taken on the proposed ulation. The proposed regulation may be changed in light of the comments eived. All comments received in response to this notice will be available for mination and copying by interested persons at the Cost of Living Council, * M Street NW., Washington, D.C. 20508, during the hours of 9 a.m. to 5 1., Monday through Friday. Submission may be inspected both before and er the ending date for comment. onomic Stabilization Act of 1970, as amended, Pub. L. 92-210, 85 Stat. 743 : Pub. L. 93Stat. 27; E.0. 11695, 38 FR 1473; E.O. 11730, 38 FR 19345; Cost of Living Council Her No. 14, 38 FR 1489.) In consideration of the foregoing it is proposed to amend Part 150 of Title 6 the Code of Federal Regulations as set forth below. Issued in Washington, D.C., 9 a.m., e.s.t., October 25, 1973. JOHN T. DUNLOP, Director, Cost of Living Council. PARAGRAPH 1. The exemption of certain price adjustments by State and local ernments is amended to exclude sales of "covered products" as defined in bpart L. 50.54 Certain price adjustments. a) Federal and State and local governments. (2) Prices and fees charged by State and local governments for any work, vice, publication, report, document, benefit, privilege, authority, use, franse, license, permit, certificate, registration, facilities, materials, or similiar ng of value or utility, performed, furnished, provided, granted, prepared, ned, or transferred including tuition and other charges for schools, colleges, 1 universities owned or operated by a State and local government, are exempt, rept, however, that prices charged for sales of "covered products" as defined in part L, and fees or charges for health services (but not health service fees ied on all students as a condition of enrollment) are not exempt under the -visions of this section. f) Government property. 2) Prices charged for property sold by the United States or State and local ernments, including lease-sales are exempt, except however, that prices rged by state and local governments for sales of "covered products" as defined Subpart L are not exempt under the provisions of this section. IFR Doc. 73-22984 Filed 10-25-73; 10:47 am] [From the Federal Register, Nov. 7, 1973] COST OF LIVING COUNCIL [6 CFR Part 150] HEALTH CARE NOTICE OF PROPOSED RULEMAKING ursuant to Executive Order No. 11730, the Cost of Living Council is considerthe adoption of the regulations set forth in this notice effective January 974. n July 19, 1973 the Council removed institutional and noninstitutional pro-rs of health services from the Council's freeze regulations, and continued the se II and Phase III mandatory controls applicable to these providers. It was cated at that time that the continuation of these controls was intended to be interim measure, and that new regulations governing providers of health vices would be developed and issued as a separate subpart of the Phase IV reguons after extensive consultation with the Health Industry Advisory Committee he Cost of Living Council and other interested health care providers and sumers. |