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.
Package slaw.

(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 com puted 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]

§ 101.34

Certain price adjustments.

(a) Federal, State, and local governments. (1) Price adjustments including rent adjustments for any work, service, publication, report, document, benefit, privilege, authority, use, franchise, license, permit, certificate, registration, or similar thing of value or utility, performed, furnished, provided, granted, prepared, issued, or transferred by any Federal department, agency, or other instrumentality including the Postal Service and wholly owned Government corporations as defined in the Government Corporation Control Act of 1945, as amended.

(2) Price adjustments including rent adjustments by State and local governments for any work, service, publication, report, document, benefit, privilege, authority, use, franchise, license, permit, certificate, registration, facilities, materials, or similar thing of value or utility, performed, furnished, provided, granted, prepared, issued, or transferred including tuition and other charges for schools, colleges, and universities owned or operated by a State and local government; except, however, that fees or charges for health services (but not health service fees levied on all students as a condition of enrollment) and for utility services (including, gas electricity, telephone, telegraph, public transportation by vehicle or pipeline, but not including water or sewage disposal services) provided directly or indirectly by a State and local government are not exempt under the provisions of this section.

(b) Tuition fees of private nonprofit educational organizations. Tuition fees and other charges by private schools, colleges, and universities not operated for profit; except that: (1) Fees and charges resulting in income which is subject to tax under Part III of Subchapter F of the Internal Revenue Code of 1954, as amended, as unrelated business taxable income and (2) medical fees and charges, other than a health service fee levied on all students as a condition of enrollment, are not exempt under the provisions of this section.

(c) Custom products and services. (1) The following products when custom made to individual order:

(1) Leather goods.

(ii) Wigs and toupees.

(iii) Fur apparel.

(iv) Jewelry.

(4) All rates, fares, and charges for foreign air transportation (as defined by the Federal Aviation Act, 49 U.S.C. 1301 (21)) which are set forth in tariffs filed with the Civil Aeronautics Board or which are established or approved by the Civil Aeronautics Board.

(e) Damaged and used products. Damaged and used products other than products which have been rebuilt, repackaged, baled, reassembled, or otherwise processed.

(f) Government property. (1) Abandoned or confiscated property sold by any Federal, State, or local government agency pursuant to authorization of a court.

(2) Property sold by the United States, including lease-sales.

(g) Transactions in gold. Transactions in gold on the domestic market under license from the Secretary of the Treasury pursuant to the Gold Reserve Act of 1934 as amended, and regulations issued pursuant thereto.

(h) Securities and financial instruments. (1) Securities as defined in § 101.2. (2) Property subject to net leases as defined in 26 U.S.C. 163 (d) (4) (a).

(3) Commercial paper.

(4) Commodity futures sold on an organized commodities exchange but not including the commodity (unless otherwise exempt).

(1) Brokerage fees charged on a securities exchange. Brokerage fees, charged for the trading of securities on a securities exchange, that are subject to the jurisdiction of the Securities and Exchange Commission, when the Securities and Exchange Commission has certified that such fees are consistent with the objectives of the economic stabilization program.

(j) Retail firms, including restaurants. Price adjustments of retail firms, including restaurants, with annual sales or revenues of less than $100,000,

(k) Fees and charges imposed by Indian Tribal Councils. Price adustments, including rent adjustments, for any work, service, publication, report, document, benefit, privilege, authority, use, franchise, license, permit, certificate, registration, commodity, or similar thing of value or utility, performed, furnished, sold, leased, provided, granted, prepared, issued, or transferred by any Indian Tribal Council which is formally recognized by a State or the Federal Government are exempt whether or not all or part of a particular transaction takes place on or off Indian Tribal lands.

(1) U.S. tanker rates. Rates for the transportation of goods in a coastwise voyage by sea as defined in 46 U.S.C. section 88, in tank vessels built in and documented under the laws of the United States and owned by persons who are citizens of the United States, or tank vessels to which the privilege of engaging in the coastwise trade is extended by section 13 or 808 of title 46 of the United States Code.

(m) Silver. Price adjustments for (i) commercial grade silver in refining shapes, (ii) silver content in ores and done, (iii) silver coins, and (iv) other forms of silver sold for manufacturing or professional uses.

[37 F.R. 1238, Jan. 27, 1972, as amended at 37 F.R. 3913, Feb. 24, 1972; 37 F.R. 5043, Mar. 9, 1972; 37 FR. 6827, Apr. 5, 1972; 37 F.R. 7796, Apr. 20, 1972; 37 F.R. 16501, Aug. 15, 1972]

§ 101.35

Certain pay adjustments.

(a) Federal pay adjustments. Federal Government employees' pay adjustments which are based upon Federal law and regulations and are determined by Presidential directives, including therein pay adjustments in the compensation and allowances of members of the Armed Forces; employees of the Judicial and of the Legislative Branch of the Federal Government: Provided, however, This section shall not exempt pay adjustments affecting employees of the U.S. Postal Service.

(b) Pay adjustments affecting certain U.S. citizens. Pay adjustments which apply to or affect U.S. citizens who reside and are employed outside the United States and the District of Columbia.

(c) Professional athletes. Pay adjustments of professional athletes, and pay adjustments of managers and coaches of professional athletes, when such managers and coaches are employed by

(a) Royalties and other payments from the sale of copyrights, manuscripts, and like materials prepared for publication.

(b) Dues paid to a nonprofit organization.

(c) Antiques and art objects including paintings, etchings, and sculpture.

(d) Collectors' coins and stamps. (e) Rock and stone specimens including precious stones and mounting into which precious stones are set.

(f) Handicraft objects.

(g) The first sale of mint oil and maple syrup or sugar.

(h) The first sale of dehydrated fruits.

(i) Films. Price adjustments for motion pictures and television productions when such price adjustments are made by producers or distributors of motion pictures and television productions.

[37 F.R. 1238, Jan. 27, 1972, as amended at 37 F.R. 12962, June 30, 1972; 37 F.R. 16502, Aug. 15, 1972]

Subpart E-Small Business
Exemption 1

§ 101.51 Exemption of firms with 60 or fewer employees.

(a) Applicability—firms existing on or before December 31, 1971-(1) General. Subject to the provisions of subparagraphs (2) and (3) of this paragraph, price and pay adjustments (but not rent increases or adjustments) of any firm, existing on or before December 31, 1971, including a local government, with an average of 60 or fewer employees (determined as provided in subparagraph (3) of this paragraph are exempt from and not included in the coverage of this title.

(2) Exemption not applicable. The exemption provided for in subparagraph (1) of this paragraph shall not be applicable to:

(i) A firm which on the effective date of this regulation was classified as a price category I or II firm under § 101.11 or § 101.13;

(ii) A firm which on the effective date of this regulation was an institutional or 137 F.R. 8940, May 8, 1972.