(a) The purpose of this part is to establish the economic units and transactions which are covered by, or are exempt from, the controls, standards, and criteria established for the post-freeze economic stabilization period. The purpose is also to establish categories of economic units which must comply with the prenotification, reporting, and other procedural requirements prescribed by the Cost of Living Council.

(b) This part applies to all price adjustments and to all pay adjustments which occur during the post-freeze economic stabilization period, except those which are specifically exempt under this part.

(c) This part does not apply to economic transactions which are not prices, rents, wages, and salaries within the meaning of the Act as amended. Examples of transactions not within the meaning of the Act are:

(1) State or local income, sales and real estate taxes;

(2) Workmen's compensation payments;

(3) Welfare payments;

(4) Child support payments; and
(5) Alimony payments.

(d) The Cost of Living Council may permit any exceptions, exemptions or reclassifications that it considers appropriate with respect to the coverage, classification, and other procedural requirements prescribed in this part, Requests for exceptions or exemptions from the coverage, classification, and other procedural requirements of this part shall be submitted in accordance with the provisions of Parts 105, 205, 305, and 401 of this title.

(e) This part applies to:

(i) economic units and transactions in the several States and the District of Columbia; and

(ii) sales of goods and services by firms in the several States and the District of Columbia to firms in the Commonwealth of Puerto Rico.

[37 F.R. 1237, Jan. 27, 1972 as amended at 37 F.R. 3913, Feb. 24, 1972]

"Act" means the Economic Stabilization Act of 1970, as amended.

"Annual sales or revenues" means the total gross receipts of a firm during its most recent fiscal year, from whatever source derived, except that it does not include gross receipts of or from a foreign branch or division of such a firm, or the gross receipts of or from a wholly or partially owned foreign entity such as a corporation, partnership, joint venture, association, trust, or subsidiary, if the gross receipts of such foreign entity, branch, or division are derived primarily from transactions with other foreign firms. A foreign entity, branch, or division is one located outside the several States and the District of Columbia. However, gross receipts of domestic entities from U.S. export sales and from sales to firms in the Commonwealth of Puerto Rico are included in the determination of annual sales or revenue.

"Council" means the Cost of Living Council established by Executive Order No. 11615 (3 CFR, 1971 Comp., p. 199) and continued under the provisions of Executive Order No. 11640 (3 CFR, 1972 Comp., 37 F.R. 1213).

"Employer" means a firm which employs one or more persons who receive a wage or salary.

"Exception" means a waiver directed to an individual firm in a particular case which relieves it from the requirements of a rule, regulation, or order issued pursuant to the act.

"Exemption" means a general waiver of the requirements of all rules, regulations, and orders issued pursuant to the act.

"Firm" means any person, corporation, association, estate, partnership, trust, joint-venture, or sole proprietorship or any other entity however organized including charitable, educational, or other eleemosynary institutions, and the Federal and State and local governments. For purposes of this definition, a firm includes any entity listed in the preceding sentence that is part of or is directly or indirectly controlled by the firm. A person will be deemed to control any firm which is controlled directly or indirectly by such person, his spouse, children, grandchildren, or parents.

"Mass transportation system" means a public benefit corporation, with annual

sales or revenues in excess of $10 million, which is charged by law or contract with the responsibility of operating a mass transportation facility or facilities which:

(a) Serves a Standard Metropolitan Statistical Area (SMSA); and

(b) Constitutes the sole or a principal means of public transportation for that

area.

A facility or facilities includes a rapid rail transit, subway, elevated, bus system but does not include school buses or other conveyances used primarily for sight-seeing or chartered for private

use.

"Non-profit organization" or one which is "not operated for profit" is a firm which is defined as a nonprofit organization in section 501(c) and is exexempt under section 501 (a) of the Internal Revenue Code of 1954, amended.

"Pay adjustment” means a change in wages and salaries which includes all forms of direct or indirect remuneration or inducement to employees by their employers for personal services, which are reasonably subject to valuation, including but not limited to: Vacation and holiday payments; bonus; layoff and severance pay plans; supplemental unemployment benefits; night shift, overtime, production; and incentive pay; employer contributions for insurance plans (but not including public plans, e.g. old age, survivors, health, and disability insurance under the Social Security system, Railroad Retirement Acts, Federal Insurance Contributions Act, Federal Unemployment Tax Acts, Civil Service Retirement Acts and the Carriers and Employees Tax Act); savings, pension, profit sharing, annuity funds, and other deferred compensation and welfare benefits; payments in kind, job perquisites; housing allowances; uniform and other work clothing allowances (but not including employer-required uniforms and work clothing whether or not for safety purposes); cost-of-living allowances; commission rates, stock options, and other fringe benefits; and benefits which result in more pay per hour or other unit of work or production (e.g., by shortening the workday without a proportionate decrease in pay). Notwithstanding the foregoing definition of pay adjustment, contributions by any employer for:

(a) Any pension, profit sharing, or annuity and savings plan which meets

the requirements of section 401(a), 404 (a) (2), or 403(b) of the Internal Revenue Code of 1954;

(b) Any group insurance plan; or (c) Any disability and health plan; are not to be included in wages and salaries unless such contributions are determined by the Pay Board to be unreasonably inconsistent with the standards issued pursuant to section 203 (b) of the Act.

"Pay Board" means the Board established pursuant to section 7 of Executive Order No. 11627 (3 CFR, 1971 Comp., p. 218).

"Prenotification" means notice submitted to the Price Commission or Pay Board relating to a proposed price adjustment or pay adjustment.

"Price adjustment" means an increase in the unit price of property or services or a decrease in the quality of substantially the same property or services.

"Price Commission” means the Commission established pursuant to section 8 of Executive Order No. 11627.

"Professional athlete" means any individual who undertakes or engages in, as a means of livelihood or for economic gain, either individually or as an employee of a professional sports organization, competitive sporting events requiring physical agility or strength.

"Real estate with improvements" means land upon which there is a structure, dwelling, or other building. It does not mean land on which roads, water, sewer, or drainage facilities have been constructed.

"Retail firm" means a firm whose annual sales or revenues are primarily from the sale of goods to ultimate consumers.

"Security" means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, or, in general, any interest or instrument commonly known as a "security," or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.

"State and local governments" means the several States and the District of

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

§ 101.11 Price category I firms; prenotification and reporting require

ments.

(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:

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.

(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