(c) Prenotification firms, with final rate increases of 1 percent or less, and nonprenotification firms, subject to noncertificated regulatory agencies. In the case of any final rate increase which is not covered by paragraph (b) of this section, a public utility under the jurisdiction of a regulatory agency that is not certificated under § 300.304 may place the increase into effect according to the terms of the regulatory agency's order or applicable regulations. However, the public utility shall immediately certify that the rate is in compliance with § 300.303(a). The public utility shall keep that certification and substantiating information available for inspection on the reasonable request of any person. During the 60-working-day period after the date of the certification, or a longer period of time if the Price Commission so notifies the public utility, the increase is subject to determination by the Price Commission as to whether it complies with § 300.303, and during that period the Commission may take any action authorized by § 300.311(a). (d) Public utilities not regulated by a regulatory agency, except for prenotification firms subject to paragraph (b) of this section. Except for a prenotification firm which is subject to paragraph (b) of this section, any public utility which is not regulated by a regulatory agency may place an increased rate (final or interim) into effect after notice to the customers affected. The notice may be by letter or by publication in a newspaper of general circulation in the area to be affected by the rate increase. However, the public utility shall immediately certify that it is in compliance with § 300.303 (a) and shall keep that certification and substantiating information available for inspection upon the reasonable request of any person. During the 60-working-day period after the date of the certification, or a longer period of time if the Price Commission so notifies the public utility, the increase is subject to determination by the Price Commission as to whether it complies with § 300.303, and during that period the Commission may take any action authorized by § 300.311(a). (e) Certain allowable costs. A public utility may place in effect, without regard to the reporting and certification requirements of this section, any price increase resulting from the pass-through of specific allowable costs, including taxes (except income taxes) and fuel costs, but t not including labor costs, if the increase is authorized by statute, regulation, or order of the appropriate regulatory agency, or by an approved tariff provision (e.g., a fuel adjustment clause). § 300.309 Nonutility activities of public utilities. Those activities and subsidiaries of a regulated public utility which are not regulated by a regulatory agency and the revenues of which are not included by a regulatory agency in the rate-making process for that public utility, are not subject to this subpart, but are subject to other provisions of Price Commission regulations, as appropriate. § 300.310 Rate bureaus, conferences, and similar organizations. Whenever any price increase is proposed by a rate bureau, conference, or similar organization authorized by law to act on behalf of its members, which is subject to the jurisdiction of a regulatory agency which has not been certificated pursuant to § 300.304, or whose certificate of compliance has been revoked pursuant to § 300.306, the rate bureau, conference, or similar organization must prenotify the Price Commission of the price increase on a prescribed form. The Price Commission shall have 60 working days from receipt of the notice of proposed rate increase, or a longer period of time if the Price Commission so notifies the rate bureau, conference, or similar organization to determine if the increase complies with § 300.303. During that period, the Price Commission may take any action authorized by § 300.311(a). § 300.311 Price Commission actions. (a) With respect to any price increase of a public utility covered by § 300.308 or § 300.310, and within any time limits specified in this subpart, the Price Commission may— (1) Require the public utility, rate bureau, conference, or similar organization to furnish additional information regarding the increase; (2) Suspend all or part of the increase, pending further action by the Price Commission or by the regulatory agency; or (3) Limit, refuse, rescind, reduce, or modify the increase. (b) The Price Commission may, on its own motion, cause any public utility 5 Er rate bureau, conference, or similar organization acting on behalf of a public atility, to file with the Commission, within a time prescribed by it, evidence to show cause why a particular rate or rates should not be reduced from levels in effect for that public utility. This paragraph does not apply to any rate authorized or allowed to go into effect by a regulatory agency for which a certificate of compliance is in effect under § 300.304. Subparts D-E [Reserved] § 300.401 This subpart sets forth the regulations for determining base prices for the purpose of applying Subpart A of this part after November 13, 1971, with respect to the sale of real property, the sale or lease of personal property, and the sale or lease of services. [36 F.R. 25386, Dec. 30, 1971] § 300.402 Adjustments in base price. If the price of a property or service has been adjusted under this subpart, that adjusted price is the base price. [37 F.R. 11473, July 8, 1972] § 300.403 Determination of base price for personal property or services. The base price with respect to a unit of personal property or services is the higher of (a) The base price determined under § 300.405; or (b) With respect to any class of purchasers, the average price which was received by the seller in transactions involving the property or service on May 25, 1970. In cases where there were no transactions on May 25, 1970, the nearest date preceding May 25, 1970, on which such a transaction did occur, shall be considered to be May 25, 1970, for the purposes of this section. However, this paragraph does not apply if the person did not offer the property or service on May 25, 1970, due to causes other than the temporary closing of his business. [37 F.R. 19378, Sept. 20, 1972] § 300.405 Sales and leases of personal property and services. (a) Sales. The base price with respect to a sale of a unit of personal property or services to a specific class of purchasers is the highest price, at or above which, at least 10 percent of those units were priced by the seller in transactions with that class of purchasers during the freeze base period. However, in computing the base price of an item of personal property or a service, a manufacturer, wholesaler, retailer, or service organization may exclude any temporary special deal or temporary special allowance on that property or service, if that deal or allowance was announced before August 15, 1971, and was intended to be in effect for less than 93 days, including any Ideal or allowance that was continued in effect for a longer period than intended because of the Phase I freeze or the regulations of the Price Commission. A person who increases a price on the basis of the preceding sentence is not required to comply with § 300.51(d) of this part with respect to that price increase. For the purposes of this paragraph, "temporary special deal" includes an offer of free goods, a combination sale, increase quantities, an introductory offer, and a "cents-off" or "price-pack" offer; and "temporary special allowance" includes early shipping, advertising, display buying, and promotional or other similar arrangements. For the purposes of determining the base price with respect to a sale of a unit of personal property or service through an automatic vending machine, the term "class of purchaser," with respect to an automatic vending firm includes those purchasers within a marketing pricing area customarily utilized by that firm. (b) Leases. The base price with respect to a lease of personal property to a specific class of lessees is the highest price, at or above which, at least 10 percent of the leases of the same or substantially identical property were priced by the lessor in transactions with that class of lessees during the freeze base period. [36 F.R. 23979, Dec. 16, 1971, as amended at 37 F.R. 775, Jan. 19, 1972; 37 F.R. 3914, Feb. 24, 1972; 37 F.R. 11473, June 8, 1972; 37 F.R. 17558, Aug. 30, 1972; 37 F.R. 19378, Sept. 20, 1972] § 300.407 Sales of real property. The base price with respect to the sale of any interest in real property which is held by a person for sale in the ordinary course of trade or business is the highest price received by him with respect to the same type of interest in similar real property during the freeze base period. A sale of an interest in real property which is not held for sale in the ordinary course of a trade or business is considered to be (a) Definition. For the purposes of this section, "new property" or "new services" means any personal property or any service which (1) Meets the requirements of the first 3 sentences of paragraph (b) of this section and was not offered for sale or lease by the person at any time during the 1year period immediately preceding the date on which he is offering the property or service for sale or lease; or (2) Without regard to the first 3 sentences of (b) of this section, was previously offered for sale or lease by the person in the same or substantially similar form, but was not offered for sale or lease by that person at any time during the 1-year period immediately preceding the date on which he is offering the property or service for sale or lease. For the purposes of this section, the fact that the person offering the new property or services is incorporated, does not exclude it from the coverage of this section. (b) Personal property or services. To be considered as new personal property or new services under paragraph (a)(1) of this section, a property or service must be substantially different from other property or services in purpose, function, quality, or technology, or the use of that property or service must effect a substantially different result. Property or services that differ from other property or services only in appearance, arrangement, or combination is not to be considered to be new. A change in fashion, style, form, or packaging is not ordinarily considered to create a new property or service. A property, or part thereof, which undergoes a substantial capital improvement is treated as new property for purposes of a lease. For the purposes of this paragraph, "substantial capital improvement" means a permanent improvement or betterment made to increase the value of the property or to restore the property, the cost of which equals or exceeds at least 3 month's rent and which exceeds $100. (c) Base price determination. A person offering new property or services may determine the base price by either of the following methods: (1) By applying the customary initial percentage markup he received during the freeze base period on the most nearly similar property or service he offered to the direct unit or net invoice cost of the new product or service, but a person may not use this method if he did not offer during the freeze base period any property or service that is similar to the new property or service. (2) By a computation based on the average prices received in a substantial number of current transactions by persons selling or leasing comparable property or services in the same marketing area. (d) This section does not apply to any custom product or service covered by § 300.410. [36 F.R. 23979, Dec. 16, 1971, as amended at 37 F.R. 3914, Feb. 24, 1972; 37 F.R. 5223, Mar. 11, 1972] (a) Definitions. The following definitions apply in this section: "Custom product" means a product (other than one specified in § 101.34 (c) (1) of this title) specially produced by a manufacturer to the buyer's or buyers' specifications and not reasonably comparable to any product manufactured at any previous time by the same manufacturer or its predecessors in interest, including any buyer-specified changes or additions to a noncustom product to the extent that they are not reasonably comparable to any changes or additions manufactured, with respect to that noncustom product, at any previous time by the same manufacturer or its predecessors in interest. "Custom service" means а service (other than one specified in § 101.34 (c) (2) of this title) specially produced by a service organization to the buyer's or buyers' specifications and not reasonably comparable to any service provided at any previous time by the same service organization or its predecessors in interest, including any buyer-specified changes or additions to a noncustom service to the extent that they are not reasonably comparable to any changes or additions furnished, with respect to that noncustom service, at any previous time by the same service organization or its predecessors in interest. (b) General rule. A manufacturer or service organization may determine a base price for a custom product or service, in conformity with its customary pricing practices, if any, which انت (1) Reflects only allowable costs inurred or to be incurred, as determined nder Price Commission regulations or lecisions; and (2) Does not result in an increase in ts profit margin over that which preailed during the base period. For the purposes of this paragraph, the base price shall be considered to reflect allowable costs only to the extent that the costs incurred in the manufacture of the product or in the furnishing of the service for which the price is charged are allowable, as determined under regulations or decisions issued pursuant to the Economic Stabilization Program. EXAMPLE 1. Labor costs to be incurred in the making of a custom product were estimated to be $2 million. However, $200,000 of this estimated cost was found to be nonallowable under Price Commission regulations or decisions (or by other action of an agency administering a part of the Economic Stabilization Program). Therefore, the highest amount of allowable costs for labor that may be included in determining the base price chargeable for the product is $1,800,000. EXAMPLE. 2. Labor costs to be incurred in the construction of an office building were estimated to be $2 million. Because of the action of an agency administering a part of the Economic Stabilization Program, $100,000 of this estimated cost was found to be nonallowable because it exceeded wage rates approved under a contract subject to the Program. Pursuant to another action of an agency administering a part of the Economic Stabilization Program, negotiated and approved changes in work rules resulted in an increase in labor costs of $50,000. Therefore, the highest amount of allowable costs for labor that may be included in determining the base price chargeable for the construction is $1,950,000. (c) Effective date. This section applies to the determination of base prices for all custom products or services after March 9, 1972, regardless of the date of the contract, if any, under which the product or service is sold. [37 F.R. 5223, Mar. 11, 1972, as amended at Subpart G-Procedure and property or services were actually sold or leased, and which are sufficient to justify any price increase for which that person has applied, or has made, under this part. (b) Inspection. Records required to be kept under paragraph (a) of this section shall be made available for inspection at any time upon the request of an officer or employee of the Internal Revenue Service or the Price Commission. (c) Justification. Upon the request of an officer or employee of the Internal Revenue Service or the Price Commission, each person who applies for a price increase or increases a price, under this part, shall: (1) Specify the records that comply with paragraph (a) of this section; and (2) Justify that price increase or increased price. (d) Period for keeping records. Each person required to keep a record under this section shall maintain and preserve that record for at least 4 years after the last day of the calendar year in which the transactions or other events recorded in that record occurred or the property was acquired by that person, whichever is later. [36 F.R. 23979, Dec. 16, 1971, as amended at 37 F.R. 7623, Apr. 18, 1972] § 300.506 Submissions on price increase filings by persons not a party to the filing. (a) Any person who shows that he has a direct interest in any application for a price increase, or a request for an exception from any provision of this part, made by any other person or class of persons may submit written data, information, or views to the Price Commission with respect to that application or request. The submission must state the grounds on which the person making the submission considers that he has a direct interest in the case. (b) Each submission that conforms to paragraph (a) of this section and that is relevant to the case to which it is directed will be considered by the Commission. (c) Each submission that is received by the Commission soon enough to allow a copy to be given to each party involved in the case, for the consideration and comments of that party, will be given to that party. The Commission will consider a submission in arriving at a decision only when it is received in time for the procedure described in this paragraph to be used. (d) A submission that is not received within the time prescribed in paragraph (c) of this section will be treated by the Commission as a request to reexamine the matters involved in the case to which the submission is addressed. (e) The Price Commission does not hold oral hearings on submissions made under this section. [36 F.R. 23980, Dec. 16, 1971] § 300.507 Exceptions: Authority of District Directors of Internal Revenue in certain cases. There is hereby delegated to each District Director of Internal Revenue the authority to consider, and grant or deny, in whole or in part, any request for an exception from (b) Any price category III firm (as defined in § 101.15 of this chapter) except a public utility subject to § 300.16, § 300.16a, or Subpart C. (b) Any price category III firm (as defined in § 101.15 of this chapter) except a public utility subject to § 300.16 or § 300.16a. [37 F.R. 14999, July 27, 1972, as amended at 37 F.R. 20251, Sept. 28, 1972] to engage in any act or practice constituting a violation of this part or any order issued thereunder, the Commission may request the Attorney General to bring an action in the appropriate district court of the United States to enjoin that act or practice. The relief sought may include a mandatory injunction commanding any person to comply with any such order or regulation and restitution of moneys received in violation of any such order or regulation. [37 F.R. 3915, Feb. 24, 1972] APPENDIX I-INSTITUTIONAL AND NONINSTITUTIONAL PROVIDERS OF HEALTH SERVICES Pursuant to §§ 300.18 and 300.19, this Appendix lists examples of the institutional and noninstitutional providers of health services subject to those sections. The lists are not intended to be exhaustive. (a) Institutional providers of health services subject to § 300.18, owned or operated by any person, include any hospital, as defined by the American Hospital Association in "Classification of Health Care Institutions," 1968 edition (American Hospital Association, 840 North Lake Shore Drive, Chicago, IL 60611), and any other organization (or part of an organization) which operates licensed 24-hour, inpatient health care facilities, including any out-patient health care laboratory or other health care facility operated by a hospital or such other organization, such as, medical hospitals; psychiatric hospitals or asylums; tuberculosis hospitals; tuberculosis sanatoria with medical care; clinics and dispensaries operated by such a hospital or other organization; nurses training schools operated by a hospital; skilled nursing homes; extended care facilities; and intermediate care facilities. (b) Noninstitutional providers of health services subject to § 300.19, owned or operated by any person, include (1) Physicians and surgeons. (2) Clinics not covered by paragraph (a) of this appendix. (3) Dispensaries not covered by paragraph (a) of this appendix. (4) Dentists and dental surgeons. (7) Medical laboratories, including cancer research laboratories, biological (not manufacturing) chemists, bacteriological, biological, medical X-ray (picture and treatment) and pathological laboratories (but not manufacturing laboratories). (8) Dental laboratories that make dentures or teeth to order for the dental profession. (9) Vocational rehabilitation institutions. (10) Curative baths or spas operated separately from hospitals. (11) Health camps. (12) Health resorts. |