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[CHAPTER 150-1ST SESSION]

[8.972]

AN ACT

To amend section 7 (c) of the Act of May 21, 1920 (41 Stat. 613), as amended by section 601 of the Act of June 30, 1932 (47 Stat. 417).

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 7 (c) of the Act entitled "An Act making appropriations for fortifications and other works of defense, for the armament thereof, and for the procurement of heavy ordnance for trial and service, for the fiscal year ending June 30, 1921, and for other purposes", approved May 21, 1920 (41 Stat. 613), as amended by section 601 of the Act of June 30, 1932 (47 Stat. 417; 31 U. S. C. 686), is hereby amended to read as follows:

"(c) Orders placed as provided in subsection (a) shall be considered as obligations upon appropriations in the same manner as orders or contracts placed with private contractors. Advance payments credited to special working funds shall remain available to the procuring agency for entering into contracts and other uses during the fiscal year or years for which the appropriation involved was made and thereafter until said appropriation lapses under the law to the surplus fund of the Treasury."

SEO. 2. Section 8 of the Act approved June 22, 1936 (49 Stat. 1648), is hereby repealed.

Approved June 26, 1943.

[CHAPTER 212-1ST SESSION]

[H. R. 2663]

AN ACT

To provide a penalty for the willful violation of regulations or orders respecting the protection or security of vessels, harbors, ports, or water-front facilities.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That whoever willfully shall violate any regulation or order promulgated or approved by the Secretary of the Navy pursuant to lawful authority for the protection or security of vessels, harbors, ports, or water-front facilities, relating to fire hazards, fire protection, lighting, machinery, guard service, disrepair, disuse, or other unsatisfactory conditions thereon, or the ingress thereto, or egress or removal of persons therefrom, or otherwise providing for safeguarding the same against destruction, loss, or injury by accident, or by enemy action, sabotage, or other subversive acts, shall be guilty of a misdemeanor and upon conviction thereof shall be liable to a fine of not to exceed $5,000 or to imprisonment for not more than one year, or both.

SEC. 2. The provisions of this Act shall remain in effect only until six months after the cessation of hostilities in the present war. Approved July 9, 1943.

[CHAPTER 239-1ST SESSION]

[H. R. 1900]

AN ACT

To prevent the payment of excessive fees or compensation in connection with the negotiation of war contracts.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first sentence of section 403 (a) (5) of the Sixth Supplemental National Defense Appropriation Act, 1942, as amended, is amended to read as follows: "The term 'subcontract' means (i) any purchase order or agreement to perform all or any part of the work, or to make or furnish any article, required for the performance of any other contract or subcontract or (ii) any contract or arrangement (other than a contract or arrangement between two contracting parties, one of which parties is found by the Secretary to be a bona fide executive officer, partner, or full-time employee of the other contracting party), (A) any amount payable under which is contingent upon the procurement of a contract or contracts with a Department or of a subcontract or subcontracts thereunder, or determined with reference to the amount of such a contract or subcontract or such contracts or subcontracts, or (B) under which any part of the services performed or to be performed consists of the soliciting, attempting to procure, or procuring a contract or contracts with a Department or a subcontract or subcontracts thereunder: Provided, That nothing in this sentence shall be construed (1) to affect in any way the validity or construction of provisions in any contract with a Department or any subcontract thereunder, heretofore at any time or hereafter made, prohibiting the payment of contingent fees or commissions; or (2) to restrict in any way the authority of the Secretary to determine the nature or amount of selling expenses under subcontracts as defined in (ii) herein, as a proper element of the contract price or as a reimbursable item of cost, under a contract with a Department or a subcontract thereunder."

SEC. 2. Section 403 (b) (3) of such Act, as amended, is amended by striking out "in each subcontract for an amount in excess of $100,000" and inserting in lieu thereof "in each subcontract described in subsection (a) (5) (ii) and in each subcontract for an amount in excess of $100,000 described in subsection (a) (5) (i)”.

SEC. 3. The first paragraph of section 403 (c) (6) of such Act, as amended, is amended to read as follows:

"(6) This subsection (c) shall be applicable to all contracts and subcontracts hereafter made and to all contracts and subcontracts heretofore made, whether or not such contracts or subcontracts contain a renegotiation or recapture clause, unless (i) final payment pursuant to such contract or subcontract was made prior to April 28, 1942; or (ii) the contract or subcontract provides otherwise pursuant to subsection (b) or (i), or is exempted under subsection (i), of this

section 403; or (iii) the aggregate sales by and amounts payable to the contractor or subcontractor and all persons under the control of or controlling or under common control with the contractor or subcontractor, under contracts with the Departments and subcontracts thereunder (including those described in clauses (i) and (ii) of this subsection (6), but excluding subcontracts described in subsection (a) (5) (ii)) do not exceed, or in the opinion of the Secretary will not exceed, $100,000, and under subcontracts described in subsection (a) (5) (ii) do not exceed, or in the opinion of the Secretary will not exceed, $25,000, for the fiscal year of such contractor or subcontractor."

SEC. 4. Section 403 (e) of such Act, as amended, is amended by striking out "in an aggregate amount in excess of $100,000".

SEC. 5. The amendments made by this Act shall be effective as of April 28, 1942. Approved July 14, 1943.

[CHAPTER 349-1ST SESSION]

[S. 1544]

AN ACT

Authorizing the acquisition and conversion or construction of certain auxiliary vessels, landing craft, and district craft for the United States Navy, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Navy is hereby authorized to acquire and convert or to undertake the construction of two million five hundred thousand tons, or such portion thereof as may be directed by the President of auxiliary vessels and one million tons of landing craft and district craft, such auxiliary vessels, landing craft and district craft to be of such size, type, and design as the Secretary may consider best suited for the prosecution of the war, such vessels to be in addition to those heretofore authorized.

SEO. 2. There is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary to effectuate the purposes of this Act: Provided, That no sums expended by the Maritime Commission from funds appropriated to it for the construction of vessels which are transferred to the Navy shall be reimbursed from naval appropriations, except to the extent of agreements existing on the effective date of this Act: Provided further, That vessels acquired by the Navy from the Maritime Commission without reimbursement shall not be disposed of except by return to the Maritime Commission.

Approved December 17, 1943.

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