An Act to amend the Atomic Energy Act of 1946, as amended, and for other purposes
PL 83-703 (H.R.9757), enacted 08/30/1954

68 
S T A T . ] 
PUBLIC LAW 703-AUG. 30, 1954 
919 
P u b l i c L a w 7 0 3 
C H A P T E R 1 0 7 3 
^^ 
^^^ 
AuguBt 30, 1954 
To amend the Atomic Energy Act of 1946, as amended, and for other purposes. 
[H. R. 9757] 
Be it enacted hy the SeTiate and House of Representatives of the 
United States of America in Congress assembled, That the Atomic Ac^*o?i*9Mr' 
Energy Act of 1946, as amended, is amended to read as follows: 
"ATOMIC ENERGY ACT OF 1954 
"CHAPTEE 1. DECLARATION, F I N D I N G S , AND PURPOSE 
"Sec. 1. Declaration. 
"Sec. 2. Findings, 
"Sec. 3. Purpose. 
"Sec. 11. Definitions. 
"CHAPTER 2. DEFINITIONS 
'CHAPTER 3. ORGANIZATION 
"Sec. 21. Atomic Energy Commission. 
"Sec. 22. Members. 
"Sec. 23. Office. 
"Sec. 24. General Manager. 
"Sec. 25. Divisions and Offices. 
"Sec. 26. General Advisory Committee. 
"Sec. 27. Military Liaison Committee. 
"Sec. 28. Appointment of Army, Navy, or Air Force Officers. 
"CHAPTER 4. RESEARCH 
"Sec. 31. Research Assistance. 
"Sec. 32. Research by the Commission. 
"Sec. 33. Research for Others. 
"CHAPTER 5. PRODUCTION OF SPECIAL NUCLEAR MATERIAL 
"Sec. 41. Ownership and Operation of Production Facilities. 
"Sec. 42. Irradiation of Materials. 
"Sec. 43. Acquisition of Production Facilities. 
"Sec. 44. Disposition of Energy. 
"CHAPTER 6. SPECIAL NUCLEAR MATERIAL 
"Sec. 51. Special Nuclear Material. 
"Sec. 52. Government Ownership of All Special Nuclear Material. 
"Sec. 53. Domestic Distribution of Special Nuclear Material. 
"Sec. 54. Foreign Distribution of Special Nuclear Material. 
"Sec. 55. Acquisition. 
"Sec. 56. Fair Price. 
"Sec. 57. Prohibition. 
"CHAPTER 7. SOURCE MATEBIAL 
"Sec. 61. Source Material. 
"Sec. 62. License for Transfers Required. 
"Sec. 63. Domestic Distribution of Source Material. 
"Sec. 64. Foreign Distribution of Source Material. 
"Sec. 65. Reporting. 
"Sec. 66. Acquisition. 
"Sec. 67. Operations on Lands Belonging to the United States. 
"Sec. 68. Public Lands. 
"Sec. 69. Prohibition. 
"CHAPTER 8. BYPRODUCT MATERIAL 
"Sec. 81. Domestic Distribution. 
"Sec. 82. Foreign Distribution of Byproduct Material. 
"CHAPTER 9. MILITARY APPLICATION OF ATOMIC ENERGY 
60 Stat. 755. 
4 2 u s e 
1 8 0 1 
Poat, p. 921. 
Post, p. 922. 
Poat, p. 924. 
Poat, p. 927. 
Post, p. 928. 
Poat, p. 929. 
Poat, p. 93^ 
Poat, p. 935. 
Poat, p. 936. 
"Sec. 91, Authority. 
"Sec. 92. Prohibition. 
920 
P U B L I C LAW 703-ATTG. 30, 1954 
[ 6 8 S T A T . 
Post, p . 936. 
"CHAPTER 10. ATOMIC ENERGY LICENSES 
"Sec. 101. License Required, 
"Sec. 102. Finding of Practical Value. 
"Sec. 103. Commercial Licenses. 
' 
"Sec. 104. Medical Therapy and Research and Development. 
"Sec. 105. Antitrust Provisions. 
"Sec. 106. Classes of Facilities. 
"Sec. 107. Operators' Licenses. 
"Sec. 108. War or National Emergency. 
"Sec. 109. Component Parts of Facilities. 
"Sec. 110. Exclusions. 
Post, p, 939. 
"CHAPTER 11. INTERNATIONAL ACTIVITIES 
"Sec. 121. Effect of International Arrangements. 
"Sec. 122. Policies Contained in International Arrangements. 
"Sec. 123. Cooperation with other Nations. 
"Sec. 124. International Atomic Pool. 
Post, p. 940. 
"CHAPTER 12. CONTROL OF INFORMATION 
"Sec. 141. Policy. 
"Sec. 142. Classification and Declassification of Restricted Data. 
"Sec. 143. Department of Defense Participation. 
"Sec. 144. International Cooperation. 
"Sec. 145. Restrictions. 
"Sec. 146. General Provisions. 
Post, p. 943. 
"CHAPTER 13. PATENTS AND INVENTIONS 
"Sec. 151. Military Utilization. 
"Sec. 152. Inventions Conceived During Commission Contracts. 
"Sec. 153. Nonmilitary Utilization. 
"Sec. 154. Injunctions. 
"Sec. 155. Prior Art. 
"Sec. 156. Commission Patent Licenses. 
"Sec. 157. Compensation, Awards, and Royalties. 
"Sec. 158. Monopolistic Use of Patents. 
"Sec. 159. Federally Financed Research. 
"Sec. 160. Saving Clause. 
Post, p. 948. 
"CHAFFEK 14. GENERAL AUTHORITY 
"Sec. 161. General Provisions. 
"Sec. 162. Contracts. 
"Sec. 163. Advisory Committees. 
"Sec. 164. Electric Utility Contracts. 
"Sec. 165. Contract Practices. 
"Sec. 166. Comptroller General Audit. 
"Sec. 167. Claim Settlements. 
"Sec. 168. Payments in lieu of Taxes. 
"Seo. 169. No Subsidy. 
Post, p. 952. 
"CHAPTER 15. COMPENSATION FOR PRIVATE PROPERTY ACQUIRED 
"Sec. 171. .lust Compensation. 
"Sec. 172. Condemnation of Real Property. 
"Sec. 173. Patent Application Disclosures. 
"Sec. 174. Attorney General Approval of Title. 
Post, p. 953. 
"CHAPTER 16. JUDICIAL REVIEW AND ADMINISTRATIVE PROCEDURE 
"Sec. 181. General. 
"Sec. 182. License Applications. 
"Sec. 183. Terms of Licenses. 
"Sec. 184. Inalienability of Licenses. 
' 
"Sec. 185. Construction Permits. 
"Sec. 186. Revocation. 
"Sec. 187. Modification of License. 
' 
"Sec. 188. Continued Operation of Facilities. 
"Sec. 189. Hearings and Judicial Review. 
68 S T A T . ] 
PUBLIC LAW 7 0 3 - A U G . 30, 1954 
921 
"CHAPTER 17. JOINT COMMITTEE ON ATOMIC ENERGY 
Post, p. 956. 
"Sec. 201. Membership. 
"Sec. 202. Authority and Duty. 
"Sec. 203. Chairman. 
"Sec. 204. Powers. 
"Sec. 205. Staff and Assistance. 
"Sec. 206. Classification of Information. 
"Sec. 207. Records. 
"CHAPTER 18. ENFORCEMENT 
Post, p. 958. 
"Sec. 221. General Provisions. 
"Sec. 222. Violation of Specific Sections. 
"Sec. 223. Violation of Sections Generally. 
"Sec. 224. Communication of Restricted Data. 
"Sec. 225. Receipt of Restricted Data. 
"Sec. 226. Tampering with Restricted Data. 
"Sec. 227. Disclosure of Restricted Data. 
"Sec. 228. Statute of Limitations. 
"Sec. 229. Other Laws. 
"Sec. 230. Injunction Proceedings. 
"Sec. 231. Contempt Proceedings. 
"CHAPTER 19. MISCELLANEOUS 
Post, p. 960. 
"Sec. 241. Transfer of Property. 
"Sec. 251. Report to Congress. 
"Sec. 261. Appropriations. 
"Sec. 271. Agency Jurisdiction. 
"Sec. 272. Applicability of Federal Power Act. 
"Sec. 273. Licensing of Government Agencies. 
"Sec. 281. Separability. 
"Sec. 291. Short Title. 
"CHAPTER 1. DECLARATION, FINDINGS, AND PURPOSE 
"SECTION 1. DECLARATION.—^Atomic energy is capable of application 
for peaceful as well as military purposes. It is therefore declared to 
Po"cy of u. s. 
be the policy of the United States that— 
"a. the development, use, and control of atomic energy shall be 
directed so as to make the maximum contribution to the general 
welfare, subject at all times to the paramount objective of making 
the maximum contribution to the common defense and security; 
and 
"b. the development, use, and control of atomic energy shall be 
directed so as to promote world peace, improve the general wel-
fare, increase the standard of living, and strengthen free compe-
tition in private enterprise. 
"SEC. 2. FINDINGS.—The Congress of the United States hereby makes 
the following findings concerning the development, use, and control of 
atomic energy: 
"a. The development, utilization, and control of atomic energy for 
military and for all other purposes are vital to the common defense 
and security. 
"b. In permitting the property of the United States to be used by 
others, such use must be regulated in the national interest and in order 
to provide for the common defense and security and to protect the 
health and safety of the public. 
"c. The processing and utilization of source, byproduct, and special 
nuclear material affect interstate and foreign commerce and must be 
regulated in the national interest. 
"d. The processing and utilization of source, byproduct, and special 
nuclear material must be regulated in the national interest and in 
order to provide for the common defense and security and to protect 
the health and safety of the public. 
Programs* 
922 
PUBLIC LAW 703-AUG. 30, 1954 
[68 STAT. 
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"e. Source and special nuclear material, production facilities, and 
utilization facilities are affected with the public interest, and regulation 
by the United States of the production and utilization of atomic energy 
and of the facilities used in connection therewith is necessary in the 
national interest to assure the common defense and security and to 
protect the health and safety of the public. 
"f. The necessity for protection against possible interstate damage 
occurring from the operation of facilities for the production or utiliza-
tion of source or special nuclear material places the operation of those 
facilities in interstate commerce for the purposes of this Act. 
"g. Funds of the United States may be provided for the development 
and use of atomic energy under conditions which will provide for the 
common defense and security and promote the general welfare. 
"h. It is essential to the common defense and security that title to all 
special nuclear material be in the United States while such special 
nuclear material is within the United States. 
"SEC. 3. PURPOSE.—It is the purpose of this Act to effectuate the 
policies set forth above by providing for— 
"a. a program of conducting, assisting, and fostering research 
and development in order to encourage maximum scientific and 
industrial progress; 
"b. a program for the dissemination of unclassified scientific and 
technical information and for the control, dissemination, and 
declassification of Restricted Data, subject to appropriate safe-
guards, so as to encourage scientific and industrial progress; 
"c. a program for Government control of the possession, use, 
and production of atomic energy and special nuclear material so 
directed as to make the maximum contribution to the common 
defense and security and the national welfare; 
^
^ 
"d. a program to encourage widespread participation in the de-
velopment and utilization of atomic energy for peaceful purposes 
to the maximum extent consistent with the common defense and 
security and with the health and safety of the public; 
"e. a program of international cooperation to promote the 
common defense and security and to make available to cooperating 
nations the benefits of peaceful applications of atomic energy as 
widely as expanding technology and considerations of the common 
defense and security will permit; and 
"f. a program of administration which will be consistent with 
the foregoing policies and programs, with international arrange-
ments, and with agreements for cooperation, which will enable the 
Congress to be currently informed so as to take further legislative 
action as may be appropriate. 
"CHAPTER 2. DEFINITIONS 
"SEC. 11. DEFINITIONS.—The intent of Congress in the definitions as 
given in this section should be construed from the words or phrases 
used in the definitions. As used in this Act: 
u^ ^„ 
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*
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* 
"a. The term 'agency of the United States' means the executive 
branch of the United States, or any Government agency, or the legis-
lative branch of the United States, or any agency, committee, com-
mission, office, or other establishment in the legislative branch, or the 
judicial branch of the United States, or an^ office, agency, committee, 
commission, or other establishment in the judicial branch. 
coo^Ma«M.*i» '**' 
"^- The term 'agreement for cooperation' means any agreement 
with another nation or regional defense organization, authorized or 
permitted by sections 54, 57,64, 82,103,104, or 144, and made pursuant 
to section 123. 
68 STAT:] 
PUBLIC LAW 703-AUG. 30, 1954 
923 
" A t o m i c ener-
gy." 
"Atomic we ap" 
on." 
"c. The term 'atomic energy' means all forms of energy released in 
the course of nuclear fission or nuclear transformation. 
"d. The term 'atomic weapon' means any device utilizing atomic 
energy, exclusive of the means for transporting or propelling the 
device (where such means is a separable and divisible part of the 
device), the principal purpose of which is for use as, or for develop-
ment of, a weapon, a weapon prototype, or a weapon test device. 
"e. The term 'byproduct material' means any radioactive material teri^^'^"*"* ^^' 
(except special nuclear material) yielded in or made radioactive by 
exposure to the radiation incident to the process of producing or 
utilizing special nuclear material. 
"f. The term 'Commission' means the Atomic Energy Commission. 
"Commission." 
"g. The term 'common defense and security' means the common 
defense and security of the United States. 
"h. The term 'defense information' means any information in any ratlin'*""* ^'^'^ 
category determined by any Government agency authorized to classify 
information, as being information respecting, relating to, or affecting 
the national defense. 
"i. The term 'design' means (1) specifications, plans, drawings, 
"Design." 
blueprints, and other items of like nature; (2) the information con-
tained therein; or (3) the research and development data pertinent 
to the information contained therein. 
" j . The term 'Government agency' means any executive depart- agencyr**'""*"* 
ment, commission, independent establishment, corporation, wholly or 
partly owned by the United States of America which is an instru-
mentality of the United States, or any board, bureau, division, service, 
office, officer, authority, administration, or other establishment in the 
executive branch of the Government. 
"k. The term 'international arrangement' means any international ar^a^^iment^»°"*^ 
agreement hereafter approved by the Congress or any treaty during 
the time such agreement or treaty is in full force and effect, but does 
not include any agreement for cooperation. 
"1. The term 'Joint Committee' means the Joint Committee on jg^'J,?^"* commit-
Atomic Energy. 
"m. The term 'operator' means any individual who manipulates 
"Operator." 
the controls of a utilization or production facility. 
"n. The term 'person' means (1) any individual, corporation, part- 
"Person." 
nership, firm, association, trust, estate, public or private institution, 
group, Government agency other than the Commission, any State or 
any political subdivision of, or any political entity within a State, any 
foreign government or nation or any political subdivision of any such 
government or nation, or other entity; and (2) any legal successor, 
representative, agent, or agency of the foregoing. 
"o. The term 'produce', when used in relation to special nuclear 
"Produce." 
material, means (1) to manufacture, make, produce, or refine special 
nuclear material; (2) to separate special nuclear material from other 
substances in which such material may be contained; or (3) to make 
or to produce new special nuclear material. 
"p. The term 'production facility' means (1) any equipment or ciiiJ^'°?"*^"'"* '** 
device determined by rule of the Commission to be capable of the pro-
duction of special nuclear material in such quantity as to be of signifi-
cance to the common defense and security, or in such manner as to 
affect the health and safety of the public; or (2) any important com-
ponent part especially designed for such equipment or device as de-
termined by the Commission. 
"q. The term 'research and development' means (1) theoretical devS.o*l^m •*"*^' 
analysis, exploration, or experimentation; or (2) the extension of 
investigative findings and theories of a scientific or technical nature 
into practical application for experimental and demonstration pur-
924 
PUBLIC LAW 703-AUG. 30, 1954 
[68 
S T A T . 
" R e s t r i c t e d 
Data,»» 
"Source mate-
rial," 
"Special nuclear 
material." 
"United States." 
"UtUization fa-
cility." 
poses, including the experimental production and testing of models, 
devices, equipment, materials, and processes. 
"r. The term 'Restricted Data' means all data concerning (l) de-
sign, manufacture, or utilization of atomic weapons; (2) the produc-
tion of special nuclear material; or (3) the use of special nuclear 
material in the production of energy, but shall not include data de-
classified or removed from the Restricted Data category pursuant to 
section 142, 
"s. The term 'source material' means (1) uranium, thorium, or any 
other material which is determined by the Commission pursuant to the 
provisions of section 61 to be source material; or (2) ores containing 
one or more of the foregoing materials, in such concentration as the 
Commission may by regulation determine from time to time. 
" t . The term 'special nuclear material' means (1) plutonium, ura-
nium enriched in the isotope 233 or in the isotope 235, and any other 
material which the Commission, pursuant to the provisions of section 
51, determines to be special nuclear material, but does not include 
source material; or (2) any material artificially enriched by any of 
the foregoing, but does not include source material. 
"u. The term 'United States', when used in a geographical sense, 
includes all Territories and possessions of the United States, and the 
Canal Zone. 
"v. The term 'utilization facility' means (1) any equipment or device, 
except an atomic weapon, determined by rule of the Commission to be 
capable of making use of special nuclear material in such quantity as 
to be of significance to the common defense and security, or in such 
manner as to affect the health and safety of the public, or peculiarly 
adapted for making use of atomic energy in such quantity as to be of 
significance to the common defense and security, or in such manner as 
to affect the health and safetj^ of the public; or (2) any important 
component part especially designed for such equipment or device as 
determined by the Commission. 
"CHAPTER 3. ORGANIZATION 
Action. 
Seal. 
A ppoInf men t 
terms, etc. 
"SEC. 21. ATOMIC ENERGY COMMISSION.—^There is hereby established 
an Atomic Energy Commission, which shall be composed of five mem-
bers, each of whom shall be a citizen of the United States. The Presi-
dent shall designate one member of the Commission as Chairman 
thereof to serve as such during the pleasure of the President. 
The 
Chairman may from time to time designate any other member of the 
Commission as Acting Chairman to act in the place and stead of the 
Chairman during his absence. The Chairman (or the Acting Chair-
man in the absence of the Chairman) shall preside at all meetings of 
the Commission and a quorum for the transaction of business shall 
consist of at least three members present. 
Each member of the Com-
mission, including the Chairman, shall have equal responsibility and 
authority in all decisions and actions of the Commission and shall have 
one vote. Action of the Commission shall be determined by a majority 
vote of the members present. 
The Chairman (or Acting Chairman in 
the absence of the Chairman) shall be the official spokesman of the 
Commission in its relations with the Congress, Government agencies, 
persons, or the public, and, on behalf of the Commission, shall see to 
the faithful execution of the policies and decisions of the Commission, 
and shall report thereon to the Commission from time to time or as the 
Commission may direct. 
The Commission shall have an official seal 
which shall be judicially noticed. 
"SEC. 22. MEMBERS,— 
"a. Members of the Commission shall be appointed by the Presi-
S T A T . ] 
PUBLIC LAW 703-AUG. 30, 1954 
925 
dent, by and with the advice and consent of the Senate. In submit-
ting any nomination to the Senate, the President shall set forth the 
experience and qualifications of the nominee. The term of office of 
each member of the Commission taking office after June 30,1950, shall 
be five years, except that (1) the terms of office of the members first 
taking office after June 30, 1950, shall expire, as designated by the 
President at the time of the appointment, one at the end of one year, one 
at the end of two years, one at the end of three years, one at the end of 
four years, and one at the end of five years, after June 30, 1950; and 
(2) any member appointed to fill a vacancy occurring prior to the 
expiration of the term for which his predecessor was appointed, shall 
be appointed for the remainder of such term. 
Any member of the 
Commission may be removed by the President for inefficiency, neglect 
of duty, or malfeasance in office. 
Each member, except the Chair-
man, shall receive compensation at the rate of $18,000 per annum; 
and the member designated as Chairman shall receive compensation 
at the rate of $20,000 per annum. 
"b. No member of the Commission shall engage in any business, 
vocation, or employment other than that of serving as a member of 
the Commission. 
"SEC. 23. OFFICE.—The principal office of the Commission shall be 
in or near the District of Columbia, but the Commission or any duly 
authorized representative may exercise any or all of its powers in any 
place; however, the Commission shall maintain an office for the 
service of process and papers within the District of Columbia. 
"SEC. 24. GENERAL MANAGER.—There is hereby established within 
the Commission a General Manager, who shall discharge such of the 
administrative and executive functions of the Commission as the 
Commission may direct. 
The General Manager shall be appointed by 
the Commission, shall serve at the pleasure of the Commission, shall 
be removable by the Commission, and shall receive compensation at 
a rate determined by the Commission, but not in excess of $20,000 
per annum. 
"SEC. 25. DIVISIONS AND OFFICES.—There is hereby established 
within the Commission— 
"a. a Division of Military Application and such other program 
divisions (not to exceed ten in number) as the Commission may 
determine to be necessary to the discharge of its responsibilities, 
including a division or divisions the primary responsibilities of 
which include the development and application of civilian uses of 
atomic energy. Each such division shall be under the direction 
of a Director who shall be appointed by the Commission and shall 
receive compensation at a rate determined by the Commission, 
but not in excess of $16,000 per annum. 
The Director of the 
Division of Military Application shall be an active member of 
the Armed Forces. The Commission shall require each such divi-
sion to exercise such of the Commission's administrative and exec-
utive powders as the Commission may determine; 
"b. an Office of the General Counsel under the direction of the 
General Counsel who shall be appointed by the Commission and 
shall receive compensation at a rate determined by the Commis-
sion, but not in excess of $16,000 per annum; and 
"c. an Inspection Division under the direction of a Director 
who shall be appointed by the Commission and shall receive com-
pensation at a rate determined by the Commission, but not in 
excess of $16,000 per annum. The Inspection Division shall be 
responsible for gathering information to show w^hether or not the 
contractors, licensees, and officers and employees of the Commis-
P r o g r a m divi-
sions. 
Directors, 
General Counsel. 
Inspection Divi-
sion> 
926 
PUBLIC LAW 703-AUG. 30, 1954 
[68 S T A T . 
Authority of De-
fense Department. 
Director, D i v i -
sion of M i l i t a r y 
Application. 
sion are complying with the provisions of this Act (except those 
provisions for which the Federal Bureau of Investigation is 
responsible) and the appropriate rules and regulations of the 
Commission. 
"SEC. 26. GENERAL ADVISORY COMMITTEE.—There shall be a General 
Advisory Committee to advise the Commission on scientific and tech-
nical matters relating to materials, production, and research and 
development, to be composed of nine members, who shall be appointed 
from civilian life by the President. 
Each member shall hold office 
for a term of six years, except that (a) any member appointed to fill 
a vacancy occurring prior to the expiration of the term for which his 
predecessor was appointed, shall be appointed for the remainder of 
such term; and (b) the terms of office of the members first taking 
office after August 1,1946, shall expire, as designated by the President 
at the time of appointment, three at the end of two years, three at 
the end of four years, and three at the end of six years, after August 
1. 1946. The Committee shall designate one of its own members as 
Chairman. 
The Committee shall meet at least four times in every 
calendar year. 
The members of the Committee shall receive a per 
diem compensation for each day spent in meetings or conferences, and 
all members shall receive their necessary traveling or other expenses 
while engaged in the work of the Committee. 
"SEC. 27. MILITARY LIAISON COMMITTEE.—There is hereby estab-
lished a Military Liaison Committee consisting of— 
"a. a Chairman, who shall be the head thereof and who shall be 
appointed by the President, by and with the advice and consent 
of the Senate, who shall serve at the pleasure of the President, 
and who shall receive compensation at the rate prescribed for an 
Assistant Secretary of Defense; and 
"b. a representative or representatives from each of the Depart-
ments of the Army, Navy, and Air Force, in equal numbers, as 
determined by the Secretary of Defense, to be assigned from each 
Department by the Secretary thereof, and who will serve without 
additional compensation. 
The Chairman of the Committee may designate one of the members of 
the Committee as Acting Chairman to act during his absence. The 
Commission shall advise and consult with the Department of Defense, 
through the Committee, on all atomic energy matters which the Depart-
ment of Defense deems to relate to military applications of atomic 
weapons or atomic energy including the development, manufacture, 
use, and storage of atomic weapons, the allocation of special nuclear 
material for military research, and the control of information relating 
to the manufacture or utilization of atomic weapons; and shall keep the 
Department of Defense, through the Committee, fully and currently 
informed of all such matters before the Commission. The Department 
of Defense, through the Committee, shall keep the Commission fully 
and currently informed on all matters within the Department of 
Defense which the Commission deems to relate to the development or 
application of atomic energy. The Department of Defense, through 
the Committee, shall have the authority to make written recommenda-
tions to the Commission from time to time on matters relating to mili-
tary applications of atomic energy as the Department of Defense may 
deem appropriate. If the Department of Defense at any time concludes 
that any request, action, proposed action, or failure to act on the part of 
the Commission is adverse to the responsibilities of the Department of 
Defense, the Secretary of Defense shall refer the matter to the Presi-
dent whose decision shall be final. 
"SEC. 28. APPOINTMENT OF ARMY, NAVY, OR AIR FORCE OFFICERS.— 
Notwithstanding the provisions of any other law, any active officer of 
68 STAT.] 
PUBLIC LAW 703-AUG. 30, 1954 
927 
the Army, Navy, or Air Force may serve as Director of the Division 
of Military Application without prejudice to his commissioned status 
as such officer. Any such officer serving as Director of the Division 
of Military Application shall receive in addition to his pay and allow-
ances, including special and incentive pays, an amount equal to the 
difference between such pay and allowances, including special and 
incentive pays, and the compensation prescribed in section 25. Not- t^iAal^ 
^om-
withstanding the provisions of any other law, any active or retired mittee. 
officer of the Army, Navy, or Air Force may serve as Chairman of the 
Military Liaison Committee without prejudice to his active or retired 
status as such officer. 
Any such officer serving as Chairman of the 
Military Liaison Committee shall receive, in addition to his pay and 
allowances, including special and incentive pays, or in addition to his 
retired pay, an amount equal to the difference between such pay and 
allowances, including special and incentive pays, or between his retired 
pay, and the compensation prescribed for the Chairman of the Military 
Liaison Committee. 
"CHAPTER 4. RESEARCH 
"SEC. 31. RESEARCH ASSISTANCE.— 
"a. The Commission is directed to exercise its powers in such man-
ner as to insure the continued conduct of research and development 
activities in the fields specified below, by private or public institutions 
or persons, and to assist in the acquisition of an ever-expanding fund 
of theoretical and practical knowledge in such fields. To this end 
the Commission is authorized and directed to make arrangements 
(including contracts, agreements, and loans) for the conduct of 
research and development activities relating to— 
" (1) nuclear processes; 
"(2) the theory and production of atomic energy, including 
processes, materials, and devices related to such production; 
"(3) utilization of special nuclear material and radioactive 
material for medical, biological, agricultural, health, or military 
purposes; 
"(4) utilization of special nuclear material, atomic energy, and 
radioactive material and processes entailed in the utilization or 
production of atomic energy or such material for all other pur-
poses, including industrial uses, the generation of usable energy, 
and the demonstration of the practical value of utilization or pro-
duction facilities for industrial or commercial purposes; and 
"(5) the protection of health and the promotion of safety 
during research and production activities, 
"b. The Commission may (1) make arrangements pursuant to this 
section, without regard to the provisions of section 3709 of the Revised 
Statutes, as amended, upon certification by the Commission that such 
^* ^^^ *
* 
action is necessary in the interest of the common defense and security, 
or upon a showing by the Commission that advertising is not reasonably 
practicable; (2) make partial and advance payments under such 
arrangements; and (3) make available for use in connection therewith 
such of its equipment and facilities as it may deem desirable. 
"c. The arrangements made pursuant to this section shall contain 
such provisions (1) to protect health, (2) to minimize danger to life or 
property, and (3) to require the reporting and to permit the inspection 
of work performed thereunder, as the Commission may determine. 
No such arrangement shall contain any provisions or conditions which 
prevent the dissemination of scientific or technical information, except 
to the extent such dissemination is prohibited by law. 
PUBLIC LAW 703-AUG. 30, 1954 
[68 S T A T . 
"SEC. 32. RESEARCH BY THE COMMISSION.—^The Commission is author-
ized and directed to conduct, through its own facilities, activities and 
studies of the types specified in section 31. 
"SEC. 33. RESEARCH FOR OTHERS.—^Where the Commission finds pri-
vate facilities or laboratories are inadequate to the purpose, it is author-
ized to conduct for other persons, through its own facilities, such of 
those activities and studies of the types specified in section 31 as it 
deems appropriate to the development of atomic energy. 
The Com-
mission is authorized to determine and make such charges as in its 
discretion may be desirable for the conduct of such activities and 
studies. 
"CHAPTER 5. PRODUCTION OF SPECIAL NUCLEAR 
MATERIAL 
"SEC. 41. OWNERSHIP AND OPERATION or PRODUCTION FACILITIES.— 
"a. OWNERSHIP OF PRODUCTION FACILITIES.—The Commission, 
as agent of and on behalf of the United States, shall be the exclu-
sive owner of all production facilities other than facilities which 
(1) are useful in the conduct of research and development activi-
ties in the fields specified in sectioti 31, and do not, in the opinion 
of the Commission, have a potential production rate adequate to 
enable the user of such facilities to produce within a reasonable 
period of time a suiRcient quantity of special nuclear material 
to produce an atomic weapon; or (2) are licensed by the Commis-
sion pursuant to section 103 or 104. 
"b. OPERATION or THE COMMISSION'S PRODUCTION FACILITIES.— 
The Commission is authorized and directed to produce or to pro-
vide for the production of special nuclear material in its own 
production facilities. 
To the extent deemed necessary, the Com-
mission is authorized to make, or to continue in effect, contracts 
with persons obligating them to produce special nuclear material 
in facilities owned by the Commission. The Commission is also 
authorized to enter into research and development contracts 
authorizing the contractor to produce special nuclear material in 
facilities owned by the Commission to the extent that the produc-
tion of such special nuclear material may be incident to the conduct 
of research and development activities under such contracts. 
Any contract entered into under this section shall contain provi-
sions (1) prohibiting the contractor from subcontracting any part 
of the work he is obligated to perform under the contract, except 
as authorized by the Commission; and (2) obligating the con-
tractor (A) to make such reports pertaining to activities under 
the contract to the Commission as the Commission may require, 
(B) to submit to inspection by employees of the Commission of 
all such activities, and (C) to comply with all safety and security 
regulations which may be prescribed by the Commission. 
Any 
contract made under the provisions of this paragraph may be 
made without regard to the provisions of section 3709 of the 
41 use s. 
Revised Statutes, as amended, upon certification by the Commis-
sion that such action is necessary in the interest of the common 
defense and security, or upon a showing by the Commission that 
advertising is not reasonably practicable. 
Partial and advance 
payments may be made under such contracts. 
The President 
shall determine in writing at least once each year the quantities 
of special nuclear material to be produced under this section and 
shall specify in such determination the quantities of special nu-
clear material to be available for distribution by the Commission 
pursuant to section 53 or 54. 
68 S T A T . ] 
PUBLIC LAW 703-AUG. 30, 1954 
929 
"c. OPERATION OF OTHER PRODUCTION FACILITIES.—Special nuclear 
material may be produced in the facilities which under this section 
are not required to be owned by the Commission. 
"SEC. 42. IRRADIATION OF MATERIALS.—The Commission and per-
sons lawfully producing or utilizing special nuclear material are au-
thorized to expose materials of any kind to the radiation incident to 
the processes of producing or utilizing special nuclear material. 
"SEC. 43. ACQUISITION OF PRODUCTION FACILITIES.—The Commission 
is authorized to purchase any interest in facilities for the production 
of special nuclear materials, or in real property on which such facili-
ties are located, without regard to the provisions of section 3709 of the 
^^ ^^^ ^ 
Kevised Statutes, as amended, upon certification by the Commission 
that such action is necessary in the interest of the common defense and 
security, or upon a showing by the Commission that advertising is not 
reasonably practicable. Partial and advance payments may be made 
under contracts for such purposes. The Commission is further author-
ized to requisition, condemn, or otherwise acquire any interest in such 
production facilities, or to condemn or otherwise acquire such real 
property, and just compensation shall be made therefor. 
"SEC. 44. DISPOSITION OF ENERGY.—If energy is produced at pro-
duction facilities of the Commission or is produced in experimental 
utilization facilities of the Commission, such energy may be used by 
the Commission, or transferred to other Government agencies, or sold 
to publicly, cooperatively, or privately owned utilities or users at 
reasonable and nondiscriminatory prices. If the energy produced 
is electric energy, the price shall be subject to regulation by the appro-
priate agency having jurisdiction. 
In contracting for the disposal 
of such energy, the Commission shall give preference and priority to 
public bodies and cooperatives or to privately owned utilities provid-
ing electric utility services to high cost areas not being served by public 
bodies or cooperatives. 
Nothing in this Act shall be construed to 
authorize the Commission to engage in the sale or distribution of 
energy for commercial use except such energy as may be produced by 
the Commission incident to the operation of research and develop-
ment facilities of the Commission, or of production facilities of the 
Commission. 
"CHAPTEK 6. SPECIAL NUCLEAR MATETtlAL 
"SEC. 
51. SPECIAL NUCLEAR MATERIAL.—The Commission may 
determine from time to time that other material is special nuclear 
material in addition to that specified in the definition as special 
nuclear material. 
Before making any such determination, the Com-
mission must find that such material is capable of releasing substan-
tial quantities of atomic energy and must find that the determination 
that such material is special nuclear material is in the interest of the 
common defense and security, and the President must have expressly 
assented in writing to the determination. 
The Commission's deter-
mination, together with the assent of the President, shall be submitted 
to the Joint Committee and a period of thirty days shall elapse while 
Congress is in session (in computing such thirty days, there shall be 
excluded the days on which either House is not in session because 
of an adjournment for more than three days) before the determination 
of the Commission may become effective: Provided^ however^ That the 
Joint Committee, after having received such determination, may by 
resolution in writing, waive the conditions of or all or any portion of 
such thirty-day period. 
"SEC. 
52. 
GOVERNMENT OWNERSHIP OF ALL 
SPECIAL NUCLEAR 
MATERIAL.—All rights, title, and interest in or to any special nuclear 
39777 O—55—pt. 1 
61 
930 
PUBLIC LAW 70a-AUG. 30, 1954 
[68 STAT. 
material within or under the jurisdiction of the United States, now or 
hereafter produced, shall be the property of the United States and 
shall be administered and controlled by the Commission as agent of 
and on behalf of the United States by virtue of this Act. Any person 
owning any interest in any special nuclear material at the time when 
such material is hereafter determined to be a special nuclear material 
shall be paid just compensation therefor. Any person who lawfully 
produces any special nuclear material, except pursuant to a contract 
with the Commission under the provisions of section 31 or 41, shall 
be paid a fair price, determined pursuant to section 56, for producing 
such material. 
"SEC. 53. 
DOMESTIC DISTRIBUTION OF SPECIAL NUCLEAR MATE-
RIAL,— 
Licenses. 
ii^ rpj^^ Commissiou is authorized to issue licenses for the possession 
of, to make available for the period of the license, and to distribute 
special nuclear material within the United States to qualified appli-
cants requesting such material— 
"(1) for the conduct of research and development activities of 
the types specified in section 31; 
" (2) for use in the conduct of research and development activi-
ties or in medical therapy under a license issued pursuant to 
section 104; or 
"(3) for use under a license issued pursuant to section 103. 
"b. The Commission shall establish, by rule, minimum criteria for 
the issuance of specific or general licenses for the distribution of special 
nuclear material depending upon the degree of importance to the com-
mon defense and security or to the health and safety of the public of— 
"(1) the physical characteristics of the special nuclear material 
to be distributed; 
" (2) the quantities of special nuclear material to be distributed; 
and 
"(3) the intended use of the special nuclear material to be 
distributed. 
Charges. 
"(. 'pjjg Commission may make a reasonable charge, determined pur-
suant to this section, for the use of special nuclear material licensed 
and distributed under subsection 53 a. (1) or subsection 53 a. (2) and 
shall make a reasonable charge determined pursuant to this section for 
the use of special nuclear material licensed and distributed under 
subsection 53 a. (3). 
The Commission shall establish criteria in writ-
ing for the determination of whether a charge will be made for the use 
of special nuclear material licensed and distributed under subsection 
53 a. (1) or subsection 53 a. (2), considering, among other things, 
whether the licensee is a nonprofit or eleemosynary institution and the 
purposes for which the special nuclear material will be used. 
"d. In determining the reasonable charge to be made by the Com-
mission for the use of special nuclear material distributed to licensees 
of utilization or production facilities licensed pursuant to section 103 
or 104, in addition to consideration of the cost thereof, the Commission 
shall take into consideration— 
"(1) the use to be made of the special nuclear material; 
"(2) the extent to which the use of the special nuclear material 
will advance the development of the peaceful uses of atomic 
energy; 
"(3) the energy value of the special nuclear material in the 
particular use for which the license is issued; 
"(4) whether the special nuclear material is to be used in 
facilities licensed pursuant to section 103 or 104. In this respect, 
the Commission shall, insofar as practicable, make uniform, non-
discriminatory charges for the use of special nuclear material 
distributed to facilities licensed pursuant to section 103; and 
68 S T A T . ] 
PUBLIC LAW 703-AUG. 30, 1954 
931 
"(5) with respect to special nuclear material consumed in a 
facility licensed pursuant to section 103, the Commission shall 
make a further charge based on the cost to the Commission, as 
estimated by the Commission, or the average fair price paid for 
the production of such special nuclear material as determined by 
section 56, whichever is lower, 
"e. Each license issued pursuant to this section shall contain and be 
subject to the following conditions— 
"(1) title to all special nuclear material shall at all times be 
in the United States; 
"(2) no right to the special nuclear material shall be conferred 
by the license except as defined by the license; 
"(3) neither the license nor any right under the license shall 
be assigned or otherwise transferred in violation of the provisions 
of this Act; 
"(4) all special nuclear material shall be subject to the right of 
recapture or control reserved by section 108 and to all other 
provisions of this Act; 
" (5) no special nuclear material may be used in any utilization 
or production facility except in accordance with the provisions of 
this Act; 
"(6) special nuclear material shall be distributed only on terms, 
as may be established by rule of the Commission, such that no user 
will be permitted to construct an atomic weapon; 
"(7) special nuclear material shall be distributed only pursuant 
to such safety standards as may be established by rule of the 
Commission to protect health and to minimize danger to life or 
property; and 
"(8) the licensee will hold the United States and the Com-
mission harmless from any damages resulting from the use or 
possession of special nuclear material by the licensee, 
"f. The Commission is directed to distribute within the United 
States sufficient special nuclear material to permit the conduct of 
widespread independent research and development activities to the 
maximum extent practicable and within the limitations set by the 
President pursuant to section 41. In the event that applications for 
special nuclear material exceed the amount available for distribution, 
preference shall be given to those activities which are most likely, in 
the opinion of the Commission, to contribute to basic research, to the 
development of peacetime uses of atomic energy, or to the economic 
and military strength of the Nation. 
"SEC. 54. FOREIGN DISTUIBUTION OF SPECIAL NUCLEAR MATERIAL.— 
The Commission is authorized to cooperate with any nation by dis-
tributing sjjecial nuclear material and to distribute such special nuclear 
material, pursuant to the terms of an agreement for cooperation to 
which such nation is a party and wliich is made in accordance with 
section 123. 
"SEC. 55. ACQUISITION.—The Commission is authorized to purchase 
or otherwise acquire any special nuclear material or any interest therein 
outside the United States without regard to the provisions of section 
3709 of the Revised Statutes, as amended, upon certification by the 
Commission that such action is necessary in the interest of the common 
defense and security, or upon a showingby the Commission that adver-
tising is not reasonably practicable. I*artial and advance payments 
may be made under contracts for such purposes. 
"SEC. 56. FAIR PRICE.—In determining the fair price to be paid by 
the Commission pursuant to section 52 for the production of any spe-
cial nuclear material, the Commission shall take into consideration the 
value of the special nuclear material for its intended use by the United 
License condi-
tions. 
Distribution for 
independent re-
search, etc. 
41 use 5. 
932 
PUBLIC LAW 703-AUG. 30, 1954 
[68 S T A T . 
States and may give such weight to the actual cost of producing that 
material as the Commission finds to be equitable. The fair price, as 
may be determined by the Commission, shall apply to all licensed 
producers of the same material: Provided^ howe'ver^ That the Commis-
sion may establish guaranteed fair prices for all special nuclear mate-
rial delivered to the Commission for such period of time as it may 
deem necessary but not to exceed seven years. 
"SEC. 57. PROHIBITION.— 
"a. It shall be unlawful for any person to— 
"(1) possess or transfer any special nuclear material which is 
the property of the United States except as authorized by the Com-
mission pursuant to subsection 53 a.; 
"(2) tranfer or receive any special nuclear material in inter-
state commerce except as authorized by the Commission pursuant 
to subsection 53 a., or export from or import into the United 
States any special nuclear material; and 
" (3) directly or indirectly engage in the production of any spe-
cial nuclear material outside of the United States except (A) 
under an agreement for cooperation made pursuant to section 123, 
or (B) upon authorization by the Commission after a determina-
tion that such activity will not be inimical to the interest of the 
United States, 
"b. The Commission shall not distribute any special nuclear mate-
rial— 
"(1) to any person for a use which is not under the jurisdiction 
of the United States except pursuant to the provisions of section 
54; or 
"(2) to any person within the United States, if the Commission 
finds that the distribution of such special nuclear material to such 
person would be inimical to the common defense and security. 
"CHAPTEE 7. SOURCE MATERIAL 
"SEC. 61. SOURCE MATERIAL.—^The Commission may determine 
from time to time that other material is source material in addition to 
those specified in the definition of source material. 
Before making 
such determination, the Commission must find that such material is 
essential to the production of special nuclear material and must find 
that the determination that such material is source material is in the 
interest of the common defense and security, and the President must 
te^r"mUi"^uon*t^ l^^^e expressly assented in writing to the determination. The Com-
joint Committee, 
missiou's determination, together with the assent of the President, 
shall be submitted to the Joint Committee and a period of thirty days 
shall elapse while Congress is in session (in computing such thirty 
days, there shall be excluded the days on which either House is not 
in session because of an adjournment of more than three days) before 
the determination of the Commission may become effective: Provided^ 
however^ That the Joint Committee, after having received such deter-
mination, may by resolution in writing waive the conditions of or 
all or any portion of such thirty-day period. 
"SEC. 62. LICENSE FOR TRANSFERS REQUIRED.—^Unless authorized by 
a general or specific license issued by the Commission, which the 
Commission is hereby authorized to issue, no person may transfer or 
receive in interstate commerce, transfer, deliver, receive possession of 
or title to, or import into or export from the United States any source 
material after removal from its place of deposit in nature, except that 
licenses shall not be required for quantities of source material which, 
in the opinion of the Commission, are unimportant. 
68 STAT.] 
PUBLIC LAW 703-AUG. 30, 1954 
933 
"SEC. 
63. DOMESTIC DISTRIBUTION OF SOURCE MATERIAL.— 
"a. The Commission is authorized to issue licenses for and to dis- 
Licenses, 
tribute source material within the United States to qualified appli-
cants requesting such material— 
"(1) for the conduct of research and development activities of 
the types specified in section 31; 
"(2) for use in the conduct of research and development activi-
ties or in medical therapy under a license issued pursuant to sec-
tion 104; 
"(3) for use under a license issued pursuant to section 103; or 
"(4) for any other use approved by the Commission as an aid 
to science or industry, 
"b. The Commission shall establish, by rule, minimum criteria for 
the issuance of specific or general licenses for the distribution of 
source material depending upon the degree of importance to the com-
mon defense and security or to the health and safety of the public of— 
"(1) the physical characteristics of the source material to be 
distributed; 
"(2) the quantities of source material to be distributed; and 
"(3) the intended use of the source material to be distributed. 
"c. The Commission may make a reasonable charge determined 
charges, 
pursuant to subsection 161 m. for the source material licensed and dis-
tributed under subsection 63 a. (1), subsection 63 a. (2), or subsection 
63 a, (4), and shall make a reasonable charge determined pursuant to 
subsection 161 m., for the source material licensed and distributed 
under subsection 63 a. (3). The Commission shall establish criteria 
in writing for the determination of whether a charge will be made for 
the source material licensed and distributed under subsection 63 a. 
(1), subsection 63 a. (2), or subsection 63 a. (4), considering, among 
other things, whether the licensee is a nonprofit or eleemosynary insti-
tution and the purposes for which the source material will be used. 
"SEC. 64. FOREIGN DISTRIBUTION OF SOURCE MATERIAL.—The Com-
mission is autliorized to cooperate with any nation by distributing 
source material and to distribute source material pursuant to the terms 
of an agreement for cooperation to which such nation is a party and 
which is made in accordance with section 123. The Commission is 
also authorized to distribute source material outside of the United 
States upon a determination by the Commission that such activity 
will not be inimical to the interests of the United States. 
"SEC. 65. REPORTING.—The Commission is authorized to issue such 
rules, regulations, or orders requiring reports of ownership, possession, 
extraction, refining, shipment, or other handling of source material as 
it may deem necessary, except that such reports shall not be required 
with respect to (a) any source material prior to removal from its place 
of deposit in nature, or (b) quantities of source material which in the 
opinion of the Commission are unimportant or the reporting of which 
will discourage independent prospecting for new deposits. 
"SEC. 66. ACQUISITION.—The Commission is authorized and directed, 
to the extent it deems necessary to effectuate the provisions of this 
Act— 
"a. to purchase, take, requisition, condemn, or otherwise acquire 
supplies of source material; 
"b. to purchase, condemn, or otherwise acquire any interest in 
real property containing deposits of source material; and 
"c. to purchase, condemn, or otherwise acquire rights to enter 
upon any real property deemed by the Commission to have possi-
bilities of containing deposits of source material in order to 
conduct prospecting and exploratory operations for such deposits. 
Any purchase made under this section may be made without regard to 
934 
PUBLIC LAW 703-AUG. 30, 1954 
[68 STAT. 
41 use 5. 
the provisions of section 3709 of the Kevised Statutes, as amended, 
upon certification by the Commission that such action is necessary 
in the interest of the common defense and security, or upon a showing 
by the Commission that advertising is not reasonably practicable. 
Partial and advanced payments may be made under contracts for such 
purposes. The Commission may establish guaranteed prices for all 
source material delivered to it within a specified time. Just compen-
sation shall be made for any right, property, or interest in property 
taken, requisitioned, condemned, or otherwise acquired under this 
section. 
"SEC. 67. OPERATIONS ON LANDS BELONGING TO THE UNITED STATES.— 
The Commission is authorized, to the extent it deems necessary to 
effectuate the provisions of this Act, to issue leases or permits for 
prospecting for, exploration for, mining of, or removal of deposits 
of source material in lands belonging to the United States: Provided^ 
however^ That notwithstanding any other provisions of law, such leases 
or permits may be issued for lands administered for national park, 
monument, and wildlife purposes only when the President by Execu-
tive Order declares that the requirements of the common defense and 
security make such action necessary. 
' 
"SEC. 68. PUBLIC LANDS.— 
"a. No individual, corporation, partnership, or association, which 
had any part, directly or indirectly, in the development of the atomic 
energy program, may benefit by any location,, entry, or settlement 
upon the public domain made after such individual, corporation, 
partnership, or association took part in such project, if such individual, 
corporation, partnership, or association, by reason of having had such 
part in the development of the atomic energy program, acquired con-
fidential official information as to the existence of deposits of such 
uranium, thorium, or other materials in the specific lands upon which 
such location, entry, or settlement is made, and subsequent to the date 
of the enactment of this Act made such location, entry, or settlement 
or caused the same to be made for his, or its, or their benefit. 
"b. In cases where any patent, conveyance, lease, permit, or other 
authorization has been issued, which reserved to the United States 
source materials and the right to enter upon the land and prospect 
for, mine, and remove the same, the head of the Government agency 
which issued the patent, conveyance, lease, permit, or other author-
ization shall, on application of the holder thereof, issue a new or 
supplemental patent, conveyance, lease, permit, or other authorization 
without such reservation. 
If any rights have been granted by the 
United States pursuant to any such reservation then such patent shall 
be made subject to those rights, but the patentee shall be subrogated to 
the rights of the United States. 
"c. Notwithstanding the provisions of the Atomic Energy Act of 
4^^ifs J^i'a01 1^^^» ^^ amended, and particularly section 5 (b) (7) thereof, or the 
note, i805ft>)(7). 
provisious of the Act of August 12, 1953 (67 Stat. 539), and particu-
30 u^c soi-sos larly section 3 thereof, any mining claim, heretofore located under the 
503. 
' mining laws of the United States, for or based upon a discovery of a 
mineral deposit which is a source material and which, except for the 
possible contrary construction of said Atomic Energy Act, would have 
been locatable under such mining laws, shall, insofar as adversely 
affected by such possible contrary construction, be valid and effective, 
in all respects to the same extent as if said mineral deposit were a 
locatable mineral deposit other than a source material. 
"SEC. 69. PROHIBITION.—The Commission shall not license any person 
to transfer or deliver, receive possession of or title to, or import into 
or export from the United States any source material if, in the opinion 
of the Commission, the issuance of a license to such person for such 
68 STAT.] 
PUBLIC LAW 703-AUG. 30, 1954 
935 
purpose would be inimical to the common defense and security or the 
health and safety of the public. 
"CHAPTER 
8
. 
BYPRODUCT 
MATERIAL 
"SEC. 81. DOMESTIC DISTRIBUTION.—No person may transfer or 
receive in interstate commerce, manufacture, produce, transfer, 
acquire, own, possess, import, or export any byproduct material, except 
to the extent authorized by this section or by section 82. The Commis-
sion is authorized to issue general or specific licenses to applicants 
seeking to use byproduct material for research or development pur-
poses, for medical therapy, industrial uses, agricultural uses, or such 
other useful applications as may be developed. The Commission may 
distribute, sell, loan, or lease such byproduct material as it owns to 
licensees with or without charge: Provided^ however^ That, for 
byproduct material to be distributed by the Commission for a charge, 
the Commission shall establish prices on such equitable basis as, in the 
opinion of the Commission, (a) will provide reasonable compensation 
to the Government for such material, (b) will not discourage the use 
of such material or the development of sources of supply of such 
material independent of the Commission, and (c) will encourage 
research and development. In distributing such material, the Commis-
sion shall give preference to applicants proposing to use such material 
either in the conduct of research and development or in medical 
therapy. Licensees of the Commission may distribute byproduct mate-
rial only to applicants therefor who are licensed by the Commission to 
receive such byproduct material. The Commission shall not permit 
the distribution of any byproduct material to any licensee, and shall 
recall or order the recall of any distributed material from any licensee, 
who is not equipped to observe or who fails to observe such safety 
standards to protect health as may be established by the Commission 
or who uses such material in violation of law- or regulation of the Com-
mission or in a manner other than as disclosed in the application 
therefor or approved by the Commission. The Commission is author-
ized to establish classes of byproduct material and to exempt certain 
classes or quantities of material or kinds of uses or users from the 
requirements for a license set forth in this section when it makes a 
finding that the exemption of such classes or quantities of such mate-
rial or such kinds of uses or users will not constitute an unreasonable 
risk to the common defense and security and to the health and safety 
of the public. 
"SEC. 82, FOREIGN DISTRIBUITON OF BYPRODUCT MATERIAL.— 
"a. The Commission is authorized to cooperate with any nation by 
distributing byproduct material, and to distribute byproduct material, 
pursuant to the terms of an agreement for cooperation to which such 
nation is party and which is made in accordance with section 123. 
"b. The Commission is also authorized to distribute byproduct 
material to any person outside the United States upon application 
therefor by such person and demand such charge for such material 
as would be charged for the material if it were distributed within the 
United States: Provided^ however^ That the Commission shall not 
distribute any such material to any person under this section if, in its 
opinion, such distribution would be inimical to the common defense 
and security: And provided 
further^ That the Commission may 
require such reports regarding the use of material distributed pur-
suant to the provisions of this section as it deems necessary. 
"c. The Commission is authorized to license others to distribute 
byproduct material to any person outside the United States under the 
same conditions, except as to charges, as would be applicable if the 
material were distributed by the Commission. 
936 
PUBLIC LAW 703-AUG. 30, 1954 
[68 S T A T . 
"CHAPTER 9. MILITARY APPLICATION OF ATOMIC 
ENERGY 
"SEC. 91. AUTHORITY.— 
"a. The Commission is authorized to— 
"(1) conduct experiments and do research and development 
work in the military application of atomic energy; and 
"(2) engage in the production of atomic weapons, or atomic 
weapon parts, except that such activities shall be carried on only 
to the extent that the express consent and direction of the Presi-
dent of the United States has been obtained, which consent and 
direction shall be obtained at least once each year, 
"b. The President from time to time may direct the Commission 
(1) to deliver such quantities of special nuclear material or atomic 
weapons to the Department of Defense for such use as he deems neces-
sary in the interest of national defense, or (2) to authorize the 
Department of Defense to manufacture, produce, or acquire any 
atomic weapon or Utilization facility for military purposes: Provided, 
however, That such authorization shall not extend to the production 
of special nuclear material other than that incidental to the operation 
of such utilization facilities. 
"SEC. 92. PROHIBITION.—^It shall be unlawful for any person to 
transfer or receive in interstate commerce, manufacture, produce, 
transfer, acquire, possess, import, or export any atomic weapon, except 
as may be authorized by the Commission pursuant to the provisions of 
section 91. Nothing in this section shall be deemed to modify the 
provisions of subsection 31 a. or section 101. 
"CHAPTER 10. ATOMIC ENERGY LICENSES 
"SEC. 101. LICENSE REQUIRED.—It shall be unlawful, except as pro-
vided in section 91, for any person within the United States to trans-
fer or receive in interstate commerce, manufacture, produce, transfer, 
acquire, possess, import, or export any utilization or production 
facility except under and in accordance with a license issued by the 
Commission pursuant to section 103 or 104. 
"SEC. 102. FINDING OF PRACTICAL VALUE.—^Whenever the Commis-
sion has made a finding in writing that any type of utilization or 
production facility has been sufficiently developed to be of practical 
value for industrial or commercial purposes, the Commission may 
thereafter issue licenses for such type of facility pursuant to section 
103. 
"SEC. 103. COMMERCIAL LICENSES.— 
"a. Subsequent to a finding by the Commission as required in sec-
tion 102, the Commission may issue licenses to transfer or receive in 
interstate commerce, manufacture, produce, transfer, acquire, possess, 
import, or export under the terms of an agreement for cooperation 
arranged pursuant to section 123, such type of utilization or produc-
tion facility. 
Such licenses shall be issued in accordance with the 
provisions of chapter 16 and subject to such conditions as the Com-
mission may by rule or regulation establish to effectuate the purposes 
and provisions of this Act. 
"b. The Commission shall issue such licenses on a nonexclusive basis 
to persons applying therefor (1) whose proposed activities will serve 
a useful purpose proportionate to the quantities of special nuclear 
material or source material to be utilized; (2) who are equipped to 
observe and who agree to observe such safety standards to protect 
health and to minimize danger to life or property as the Commission 
68 S T A T . ] 
PUBLIC LAW 7 0 3 - A U G . 30, 1954 
93T 
may by rule establish; and (3) who agree to make available to the 
Commission such technical information and data concerning activities 
under such licenses as the Commission may determine necessary to 
promote the common defense and security and to protect the health 
and safety of the public. All such information may be used by the 
Commission only for the purposes of the common defense and security 
and to protect the health and safety of the public. 
"c. Each such license shall be issued for a specified period, as deter-
mined by the Commission, depending on the type of activity to be 
licensed, but not exceeding forty years, and may be renewed upon the 
expiration of such period. 
"d. No license under this section may be given to any person for 
activities which are not under or within the jurisdiction of the United 
States, except for the export of production or utilization facilities 
under terms of an agreement for cooperation arranged pursuant to 
section 123, or except under the provisions of section 109. No license 
may be issued to any corporation or other entity if the Commission 
knows or has reason to believe it is owned, controlled, or dominated by 
an alien, a foreign corporation, or a foreign government. 
In any 
event, no license may be issued to any person within the United States 
if, in the opinion of the Commission, the issuance of a license to such 
person would be inimical to the common defense and security or to the 
health and safety of the public. 
"SEC. 104. MEDICAL THERAPY AND RESEARCH AND DEVELOPMENT.— 
"a. The Commission is authorized to issue licenses to persons apply-
ing therefor for utilization facilities for use in medical therapy. 
In 
issuing such licenses the Commission is directed to permit the widest 
amount of effective medical therapy possible with the amount of special 
nuclear material available for such purposes and to impose the mini-
mum amount of regulation consistent with its obligations under this 
Act to promote the common defense and security and to protect the 
health and safety of the public. 
"b. The Commission is authorized to issue licenses to persons apply-
ing therefor for utilization and production facilities involved in the 
conduct of research and development activities leading to the demon-
stration of the practical value of such facilities for industrial or com-
mercial purposes. 
In issuing licenses under this subsection, the Com-
mission shall impose the minimum amount of such regulations and 
terms of license as will permit the Commission to fulfill its obligations 
under this Act to promote the common defense and security and to 
protect the health and safety of the public and will be compatible with 
the regulations and terms of license which would apply in the event 
that a commercial license were later to be issued pursuant to section 
103 for that type of facility. 
In issuing such licenses, priority shall be 
given to those activities which will, in the opinion of the Commission, 
lead to major advances in the application of atomic energy for indus-
trial or commercial purposes. 
"c. The Commission is authorized to issue licenses to persons apply-
ing therefor for utilization and production facilities useful in the 
conduct of research and development activities of the types specified 
in section 31 and which are not facilities of the type specified in sub-
section 104 b. The Commission is directed to impose only such mini-
mum amount of regulation of the licensee as the Commission finds 
will permit the Commission to fulfill its obligations under this Act to 
promote the common defense and security and to protect the health 
and safety of the public and will permit the conduct of widespread 
and diverse research and development. 
"d. No license under this section may be given to any person for 
activities which are not under or within the jurisdiction of the United 
States, except for the export of production or utilization facilities 
938 
PUBLIC LAW 703-AUG. 30, 1954 
[68 STAT. 
26 Stat. 209. 
15 use 1-7. 
28 Stat. 570. 
15 use 8-11. 
38 Stat. 730. 
15 u s e 
12-27, 
44; 18 use 402; 
29 use 52, 53. 
38 Stat. 717. 
15 use 41-48. 
P u b l i c ation in 
FR. 
under terms of an agreement for cooperation arranged pursuant to 
section 123 or except under the provisions of section 109. No license 
may be issued to any corporation or other entity if the Commission 
knows or has reason to believe it is owned, controlled, or dominated 
by an alien, a foreign corporation, or a foreign government. 
In any 
event, no license may be issued to any person within the United States 
if, in the opinion of the Commission, the issuance of a license to such 
person would be inimical to the common defense and security or to 
the health and safety of the public. 
"SEC. 105. ANTITRUST PROVISIONS.— 
"a. Nothing contained in this Act, including the provisions which 
vest title to all special nuclear material in the United States, shall re-
lieve any person from the operation of the following Acts, as amended, 
'An Act to protect trade and commerce against unlawful restraints and 
monopolies' approved July second, eighteen hundred and ninety; sec-
tions seventy-three to seventy-seven, inclusive, of an Act entitled 'An 
Act to reduce taxation, to provide revenue for the Government, and 
for other purposes' approved August twenty-seven, eighteen hundred 
and ninety-four; 'An Act to supplement existing laws against unlaw-
ful restraints and monopolies, and for other purposes' approved 
October fifteen, nineteen hundred and fourteen; and 'An Act to create 
a Federal Trade Commission, to define its powers and duties, and for 
other purposes' approved September twenty-six, nineteen hundred and 
fourteen. 
In the event a licensee is found by a court of competent 
jurisdiction, either in an original action in that court or in a proceed-
ing to enforce or review the findings or orders of any Government 
agency having jurisdiction under the laws cited above, to have violated 
any of the provisions of such laws in the conduct of the licensed 
activity, the Commission may suspend, revoke, or take such other 
action as it may deem necessary with respect to any license issued by 
the Commission under the provisions of this Act. 
"b. The Commission shall report promptly to the Attorney General 
any information it may have with respect to any utilization of special 
nuclear material or atomic energy which appears to violate or to tend 
toward the violation of any of the foregoing Acts, or to restrict free 
competition in private enterprise. 
"c. Whenever the Commission proposes to issue any license to any 
person under section 103, it shall notify the Attorney General of the 
proposed license and the proposed terms and conditions thereof, except 
such classes or types of licenses, as the Commission, with the approval 
of the Attorney General, may determine would not significantly affect 
the licensee's activities under the antitrust laws as specified in sub-
section 105 a. Within a reasonable time, in no event to exceed 90 days 
after receiving such notification, the Attorney General shall advise 
the Commission whether, insofar as he can determine, the proposed 
license would tend to create or maintain a situation inconsistent with 
the antitrust laws, and such advice shall be published in the Federal 
Register. Upon the request of the Attorney General, the Commission 
shall furnish or cause to be furnished such information as the Attorney 
General determines to be appropriate or necessary to enable him to 
give the advice called for by this section. 
"SEC. 106. CLASSES OF FACILITIES.—The Commission may— 
"a. group the facilities licensed either under section 103 or 
under section 104 into classes which may include either production 
or utilization facilities or both, upon the basis of the similarity 
of operating and technical characteristics of the facilities; 
"b. define the various activities to be carried on at each such 
class of facility; and 
"c. designate the amounts of special nuclear material available 
for use by each such facility. 
. . mu^* >• 
oi s - . 
.. 
68 S T A T . ] 
PUBLIC LAW 703-AUG. 30, 1954 
939 
"SEC. 107. OPERATORS' LICENSES.—^The Commission shall— 
"a. prescribe uniform conditions for licensing individuals as 
operators of any of the various classes of production and utiliza-
tion facilities licensed in this Act; 
"b. determine the qualifications of such individuals; 
"c. issue licenses to such individuals in such form as the Com-
mission may prescribe; and 
"d. suspend such licenses for violations of any provision of this 
Act or any rule or regulation issued thereunder whenever the 
Commission deems such action desirable. 
"SEC, 108. WAR OR NATIONAL EMERGENCY.—^Whenever the Congress 
declares that a state of war or national emergency exists, the Commis-
sion is authorized to suspend any licenses granted under this Act if in 
its judgment such action is necessary to the common defense and 
security. The Commission is authorized during such period, if the 
Commission finds it necessary to the common defense and security, to 
order the recapture of an^ special nuclear material distributed under 
the provisions of subsection 53 a., or to order the operation of any 
facility licensed under section 103 or lOi, and is authorized to order the 
entry into any plant or facility in order to recapture such material, or 
to operate such facility. 
Just compensation shall be paid for any 
damages caused by the recapture of any special nuclear material or by 
the operation of any such facility. 
"SEC. 109. COMPONENT PARTS OF FACILITIES.—^With respect to those 
utilization and production facilities which are so determined by the 
Commission pursuant to subsection 11 p. (2) or 11 v. (2) the Commis-
sion may (a) issue general licenses for activities required to be licensed 
under section 101, if the Commission determines in writing that such 
general licensing will not constitute an unreasonable risk to the com-
mon defense and security, and (b) issue licenses for the export of such 
facilities, if the Commission determines in writing that each export will 
not constitute an unreasonable risk to the common defense and security. 
"SEC. 110. EXCLUSIONS.—Nothing in this chapter shall be deemed— 
"a. to require a license for (1) the processing, fabricating, or 
refining of special nuclear material, or the separation of special 
nuclear material, or the separation of special nuclear material 
from other substances, under contract with and for the account of 
the Commission; or (2) the construction or operation of facilities 
under contract with and for the account of the Commission; or 
"b. to require a license for the manufacture, production, or 
acquisition by the Department of Defense of any utilization 
facility authorized pursuant to section 91, or for the use of such 
facility by the Department of Defense or a contractor thereof. 
"CHAPTER 11. INTERNATIONAL ACTIVITIES 
"SEC. 121. EFFECT OF INI'ERNATIONAL ARRANGEMENTS.—Any pro-
vision of this Act or any action of the Commission to the extent and 
during the time that it conflicts with the provisions of any inter-
national arrangement made after the date of enactment of this Act 
shall be deemed to be of no force or effect. 
"SEC. 
122. POLICIES 
CONTAINED IN INTERNATIONAL ARRANGE-
MENTS.—In the performance of its functions under this Act, the Com-
mission shall give maximum effect to the policies contained in any 
international arrangement made after the date of enactment of this 
Act. 
940 
PUBLIC LAW 703-AUG. 30, 1954 
[68 STAT. 
"SEC. 123. COOPERATION W I T H OPHER NATIONS.—No cooperation 
with any nation or regional defense organization pursuant to sections 
54, 57,64, 82,103,104, or 144 shall be undertaken until— 
"a. the Commission or, in the case of those agreements for coop-
eration arranged pursuant to subsection 144 b., the Department of 
Defense has submitted to the President the proposed agreement 
for cooperation, together with its recommendation thereon, which 
proposed agreement shall include (1) the terms, conditions, dura-
tion, nature, and scope of the cooperation; (2) a guaranty by the 
cooperating party that security safeguards and standards as set 
forth in the agreement for cooperation will be maintained; (3) a 
guaranty by the cooperating party that any material to be trans-
ferred pursuant to such agreement will not be used for atomic 
weapons, or for research on or development of atomic weapons, or 
for any other military purpose; and (4) a guaranty by the cooper-
ating party that any material or any Restricted Data to be trans-
ferred pursuant to the agreement for cooperation will not be 
transferred to unauthorized persons or beyond the jurisdiction of 
the cooperating party, except as specified in the agreement for 
cooperation; 
"b. the President has approved and authorized the execution of 
the proposed agreement for cooperation, and has made a deter-
mination in writing that the performance of the proposed agree-
ment will promote and will not constitute an unreasonable risk 
to the common defense and security; and 
"c. the proposed agreement for cooperation, together with the 
approval and the determination of the President, has been sub-
mitted to the Joint Committee and a period of thirty days has 
elapsed while Congress is in session (in computing such thirty 
days, there shall be excluded the days on which either House is 
not in session because of an adjournment of more than three days). 
"SEC. 124. INTERNATIONAL ATOMIC POOL.—The President is author-
ized to enter into an international arrangement with a group of 
nations providing for international cooperation in the nonmilitary 
applications of atomic energy and he may thereafter cooperate with 
that group of nations pursuant to sections 54, 57, 64, 82, 103, 104, or 
144 a.: Provided^ however^ That the cooperation is undertaken pur-
suant to an agreement for cooperation entered into in accordance 
with section 123. 
"CHAPTER 1
2
. CONTROL 
OF 
INFORMATION 
"SEC. 141. POLICY.—It shall be the policy of the Commission to 
control the dissemination and declassification of Restricted Data in 
such a manner as to assure the common defense and security. 
Con-
sistent with such policy, the Commission shall be guided by the fol-
lowing principles: 
"a. Until effective and enforceable international safeguards against 
the use of atomic energy for destructive purposes have been estab-
lished by an international arrangement, there shall be no exchange 
of Restricted Data with other nations except as authorized by section 
144; and 
"b. The dissemination of scientific and technical information relat-
ing to atomic energy should be permitted and encouraged so as to 
provide that free interchange of ideas and criticism which is essential 
to scientific and industrial progress and public understanding and to 
enlarge the fund of technical information. 
68 STAT.] 
PUBLIC LAW 703-AUG. 30, 1954 
941 
"SEO. 142. 
CLASSIFICATION AND DECLASSIFICATION OF RESTRICTED 
DATA.— 
"a. The Commission shall from time to time determine the data, 
within the definition of Restricted Data, which can be published with-
out undue risk to the common defense and security and shall there-
upon cause such data to be declassified and removed from the category 
of Restricted Data. 
"b. The Commission shall maintain a continuous review of 
Restricted Data and of any Classification Guides issued for the guid-
ance of those in the atomic energy program with respect to the areas 
of Restricted Data which have been declassified in order to determine 
which information may be declassified and removed from the category 
of Restricted Data without undue risk to the common defense and 
security. 
"c. In the case of Restricted Data which the Commission and the 
Department of Defense jointly determine to relate primarily to the 
military utilization of atomic weapons, the determination that such 
data may be published without constituting an unreasonable risk to 
the common defense and security shall be made by the Commission 
and the Department of Defense jointly, and if the Commission and 
the Department of Defense do not agree, the determination shall be 
made by the President. 
"d. The Commission shall remove from the Restricted Data cate-
gory such data as the Commission and the Department of Defense 
jointly determine relates primarily to the military utilization of 
atomic weapons and which the Commission and Department of 
Defense jointly determine can be adequately safeguarded as defense 
information: Provided^ however, That no such data so removed from 
the Restricted Data category shall be transmitted or otherwise made 
available to any nation or regional defense organization, while such 
data remains defense information, except pursuant to an agreement 
for cooperation entered into in accordance with subsection 144 b. 
"e. The Commission shall remove from the Restricted Data cate-
gory such information concerning the atomic energy programs of 
other nations as the Commission and the Director of Central Intelli-
gence jointly determine to be necessary to carry out the provisions of 
section 102 (d) of the National Security Act of 1947, as amended, 
fo us^c 40^3%). 
and can be adequately safeguarded as defense information. 
"SEC. 143. DEPARTMENT OF DEFENSE PARTICIPATION.—The Commis-
sion may authorize any of its employees, or employees of any con-
tractor, prospective contractor, licensee or prospective licensee of the 
Commission to permit any employee of an agency of the Department 
of Defense or of its contractors, or any member of the Armed Forces 
to have access to Restricted Data required in the performance of his 
duties and so certified by the head of the appropriate agency of the 
Department of Defense or his designee: Provided^ however, That the 
head of the appropriate agency of the Department of Defense or his 
designee has determined, in accordance with the established personnel 
security procedures and standards of such agency, that permitting the 
member or employee to have access to such Restricted Data will not 
endanger the common defense and security: And provided 
further, 
That the Secretary of Defense finds that the established personnel 
and other security procedures and standards of such agency are 
adequate and in reasonable conformity to the standards established by 
the Commission under section 145. 
942 
PUBLIC LAW 703-AUG. 30, 1954 
[68 STAT. 
"SEC. 144. INTERNATIONAL COOPERATION.— 
- f 
"a. The President may authorize the Commission to cooperate with 
another nation and to communicate to that nation Restricted Data on— 
"(1) refining, purification, and subsequent treatment of source 
material; 
"(2) reactor development; 
"(3) production of special nuclear material; 
"(4) health and safety; 
"(5) industrial and other applications of atomic energy for 
peaceful purposes; and 
"(6) research and development relating to the foregoing: 
Provided^ however^ That no such cooperation shall invwve wie com-
munication of Restricted Data relating to the design or fabrication of 
atomic weapons: Arid provided further^ That the cooperation is under-
taken pursuant to an agreement for cooperation entered into in accord-
ance with section 123, or is undertaken pursuant to an agreement 
existing on the effective date of this Act. 
"b. The President may authorize the Department of Defense, with 
the assistance of the Commission, to cooperate with another nation or 
with a regional defense organization to which the United States is a 
party, and to communicate to that nation or organization such 
Restricted Data as is necessary to— 
" (1) the development of defense plans; 
" (2) the training of personnel in the employment of and defense 
against atomic weapons; and 
"(3) the evaluation of the capabilities of potential enemies in 
the employment of atomic weapons, 
while such other nation or organization is participating with the 
United States pursuant to an international arrangement by substan-
tial and material contributions to the mutual defense and security: 
Provided^ however^ That no such cooperation shall involve communi-
cation of Restricted Data relating to the design or fabrication of 
atomic weapons except with regard to external characteristics, includ-
ing size, weight, and shape, yields and effects, and systems employed 
in the delivery or use thereof but not including any data in these cate-
gories unless in the joint judgment of the Commission and the 
Department of Defense such data will not reveal important informa-
tion concerning the design or fabrication of the nuclear components 
of an atomic weapon: ATid provided further^ That the cooperation is 
undertaken pursuant to an agreement entered into in accordance with 
section 123. 
"SEC. 145. RESTRICTIONS.— 
b ^ C
S
C * * ^**"°"* 
"a. No arrangement shall be made under section 31, no contract shall 
be made or continued in effect under section 41, and no license shall be 
issued under section 103 or 104, unless the person with whom such 
arrangement is made, the contractor or prospective contractor, or the 
prospective licensee agrees in writing not to permit any individual 
to have access to Restricted Data until the Civil Service Commission 
shall have made an investigation and report to the Commission on 
the character, associations, and loyalty of such individual, and the 
Commission shall have determined that permitting such person to 
have access to Restricted Data will not endanger the common defense 
and security. 
"b. Except as authorized by the Commission or the General Manager 
upon a determination by the Commission or General Manager that 
such action is clearly consistent with the national interest, no indi-
vidual shall be employed by the Commission nor shall the Commission 
permit any individual to have access to Restricted Data until the 
Civil Service Commission shall have made an investigation and report 
68 STAT.] 
PUBLIC LAW 703-AUG. 30, 1954 
943 
to the Commission on the character, associations, and loyalty of such 
individual, and the Commission shall have determined that permitting 
such person to have access to Restricted Data will not endanger the 
common defense and security. 
"c. In the event an investigation made pursuant to subsections a. and by FBI." * ^*'*"*^^ 
b. of this section develops any data reflecting that the individual who 
is the subject of the investigation is of questionable loyalty, the Civil 
Service Commission shall refer the matter to the Federal Bureau of 
Investigation for the conduct of a full field investigation, the results of 
which shall be furnished to the Civil Service Commission for its infor-
mation and appropriate action. 
"d. If the President deems it to be in the national interest, he may 
from time to time cause investigations of any group or class which 
are required by subsections a. and b. of this section to be made by 
the Federal Bureau of Investigation instead of by the Civil Service 
Commission. 
"e. Notwithstanding the provisions of subsections a. and b. of this 
section, a majority of the members of the Commission shall certify 
those specific positions which are of a high degree of importance or 
sensitivity and upon such certification the investigation and reports 
required by such provisions shall be made by the Federal Bureau of 
Investigation instead of by the Civil Service Commission. 
"f. The Commission shall establish standards and specifications in s^frJ^^^sV-fi!^*^! 
. . 
. 
I 
.
.
.
. 
1
1
1
1 
y Comnussioii o.t 
wntmg as to the scope and extent of investigations to be made by the investigation!. 
Civil Service Commission pursuant to subsections a. and b. of this ***" * '' *
*
*
^
" 
section. 
Such standards and specifications shall be based on the loca-
tion and class or kind of work to be done, and shall, among other 
considerations, take into account the degree of importance to the 
common defense and security of the Restricted Data to which access 
will be permitted. 
"SEC 146. GENERAL PROVISIONS.— 
"a. Sections 141 to 145, inclusive, shall not exclude the applicable 
provisions of any other laws, except that no Government agency 
shall take any action under such other laws inconsistent with the 
provisions of those sections. 
"b. The Commission shall have no power to control or restrict the 
dissemination of information other than as granted by this or any 
other law. 
"CHAPTER 
i
;
]
. PATENTS 
AND 
INVENTIONS 
"SEC. 151. MILITARY UTILIZATION.— 
"a. No patent shall hereafter be granted for any invention or dis-
covery which is useful solely in the utilization of special nuclear 
material or atomic energy in an atomic weapon. 
Any patent granted 
for any such invention or discovery is hereby revoked, and just com-
pensation shall be made therefor. 
"b. No patent hereafter granted shall confer any rights with respect 
to any invention or discovery to the extent that such invention or 
discovery is used in the utilization of special nuclear material or 
atomic energy in atomic weapons. 
Any rights conferred by any 
patent heretofore granted for any invention or discovery are hereby 
revoked to the extent that such invention or discovery is so used, and 
just compensation shall be made therefor. 
"c. Any person who has made or hereafter makes any invention or H^*?*"^®' ^"Yr* 
discovery useful (1) in the production or utilization of special nuclear sion.° 
°'°'" 
material or atomic energy; (2) in the utilization of special nuclear 
material in an atomic weapon; or (3) in the utilization of atomic 
energy in an atomic weapon, shall file with the Commission a report 
944 
PUBLIC LAW 703-AUG. 30, 1954 
[68 STAT. 
containing a complete description thereof unless such invention or 
discovery is described in an application for a patent tiled with the 
Commissioner of Patents by such person within the time required for 
the filing of such report. The report covering any such invention or 
discovery shall be filed on or before whichever of the following is the 
later: either the ninetieth day after completion of such invention 
or discovery; or the ninetieth day after such person first discovers or 
first has reason to believe that such invention or discovery is useful in 
such production or utilization. 
"d. The Commissioner of Patents shall notify the Commission of 
all applications for patents heretofore or hereafter filed which, in his 
opinion, disclose inventions or discoveries required to be reported 
under subsection 151 c, and shall provide the Commission access to 
all such applications. 
"SEC. 152. INVENTIONS CONCEIVED DURING COMMISSION CONTRACTS.— 
Any invention or discovery, useful in the production or utilization of 
special nuclear material or atomic energy, made or conceived under 
any contract, subcontract, arrangement, or other relationship with the 
Commission, regardless of whether the contract or arrangement 
involved the expenditure of funds by the Commission, shall be deemed 
to have been made or conceived by the Commission, except that the 
Commission may waive its claim to any such invention or discovery 
if made or conceived by any person at or in connection with any lab-
oratory under the jurisdiction of the Commission as provided in section 
33, or under such other circumstances as the Commission may deem 
appropriate. No patent for any invention or discovery, useful in the 
production or utilization of special nuclear material or atomic energy, 
shall be issued unless the applicant files with the application, or within 
30 days after request therefor by the Commissioner of Patents, a state-
ment under oath setting forth the full facts surrounding the making 
or conception of the invention or discovery described in the applica-
tion and whether the invention or discovery was made or conceived in 
the course of, in connection with, or under the terms of any contract, 
subcontract, arrangement, or other relationship with the Commission, 
regardless of whether the contract or arrangement involved the 
expenditure of funds by the Commission. 
The Commissioner of 
Patents shall forthwith forward copies of the application and the 
statement to the Commission. 
"The Commissioner of Patents may proceed with the application and 
issue the patent to the applicant (if the invention or discovery is other-
Avise patentable) unless the Commission, within 90 days after receipt 
of copies of the application and statement, directs the Commissioner of 
Patents to issue the patent to the Commission (if the invention or dis-
covery is otherwise patentable) to be held by the Commission as the 
agent of and on behalf of the United States. 
"If the Commission files such a direction with the Commissioner of 
Patents, and if the applicant's statement claims, and the applicant 
still believes, that the invention or discovery was not made or con-
ceived in the course of, in connection with, or under the terms of 
any contract, subcontract, arrangement, or other relationship with 
the Commission entitling the Commission to take title to the appli-
cation or the patent, the applicant may, within 30 days after notifica-
tion of the filing of such a direction, request a hearing before a Board 
of Patent Interferences. 
The Board shall have the power to hear 
and determine whether the Commission was entitled to the direction 
filed with the Commissioner of Patents. The Board shall follow the 
rules and procedures established for interference cases and an appeal 
may be taken by either the applicant or the Commission from the 
final order of the Board to the Court of Customs and Patent Appeals 
68 S T A T . ] 
PUBLIC LAW 7 0 3 - A U G . 30, 1954 
945 
in accordance with the procedures governing the appeals from the 
Board of Patent Interferences. 
"If the statement filed by the applicant should thereafter be found 
to contain false material statements any notification by the Commis-
sion that it has no objections to the issuance of a patent to the appli-
cant shall not be deemed in any respect to constitute a waiver of the 
provisions of this section or of any applicable civil or criminal statute, 
and the Commission may have the title to the patent transferred to 
the Commission on the records of the Commissioner of Patents in 
accordance with the provisions of this section. 
"SEC. 153. NONMILITARY UTILIZATION.— 
"a. The Commission may, after giving the patent owner an oppor-
tunity for a hearing, declare any patent to be affected with the public 
interest if (1) the invention or discovery covered by the patent is of 
primary importance in the production or utilization of special nuclear 
material or atomic energy; and (2) the licensing of such invention or 
discovery under this section is of primary importance to effectuate 
the policies and purposes of this Act. 
"6. Whenever any patent has been declared affected with the public 
interest, pursuant to subsection 153 a.— 
"(1) the Commission is hereby licensed to use the invention or 
discovery covered by such patent in performing any of its powers 
under this Act; and 
"(2) any person may apply to the Commission for a nonexclu-
sive patent license to use the invention or discovery covered by 
such patent, and the Commission shall grant such patent license 
to the extent that it finds that the use of the invention or discovery 
is of primary importance to the conduct of an activity by such 
person authorized under this Act. 
"c. Any person— 
"(1) who has made application to the Commission for a license 
under sections 53, 62, 63, 81,103, or 104, or a permit or lease under 
section 67; 
"(2) to whom such license, permit, or lease has been issued by 
the Commission ; 
"(3) who is authorized to conduct such activities as such appli-
cant is conducting or proposes to conduct under a general license 
issued by the Commission under sections 62 or 81; or 
"(4) whose activities or proposed activities are authorized 
under section 31, 
may at any time make application to the Commission for a patent 
license for the use of an invention or discovery useful in the production 
or utilization of special nuclear material or atomic energy covered by a 
patent. 
Each such application shall set forth the nature and purpose 
of the use which the applicant intends to make of the patent license, 
the steps taken by the applicant to obtain a patent license from the 
owner of the patent, and a statement of the effects, as estimated by 
the applicant, on the authorized activities which will result from 
failure to obtain such patent license and which will result from the 
granting of such patent license. 
"d. Whenever any person has made an application to the Commission 
for a patent license pursuant to subsection 153 c.— 
"(1) the Commission, within 30 days after the filing of such 
application, shall make available to the owner of the patent all 
of the information contained in such application, and shall notify 
the owner of the patent of the time and place at which a hearing 
will be held by the Commission; 
39777 O—55—pt. 1 
62 
946 
PUBLIC LAW 703-AUG. 30, 1954 
[68 STAT. 
"(2) the Commission shall hold a hearing within 60 days after 
the filing of such application at a time and place designated by 
i 
the Commission; and 
"(3) in the event an applicant applies for two or more patent 
licenses, the Commission may, in its discretion, order the con-
solidation of such applications, and if the patents are owned by 
, 
more than one owner, such owners may be made parties to one 
1 
hearing. 
"e. If, after any hearing conducted pursuant to subsection 153 d., 
the Commission finds that— 
"(1) the invention or discovery covered by the patent is of 
primary importance in the production or utilization of special 
nuclear material or atomic energy; 
I 
"(2) the licensing of such invention or discovery is of primary 
importance to the conduct of the activities of the applicant; 
"(3) the activities to which the patent license are proposed to 
be applied by such applicant are of primary importance to the 
furtherance of policies and purposes of this Act; and 
"(4) such applicant cannot otherwise obtain a patent license 
from the owner of the patent on terms which the Commission 
deems to be reasonable for the intended use of the patent to be 
made by such applicant, 
the Commission shall license the applicant to use the invention or 
discovery covered by the patent for the purposes stated in such appli-
cation on terms deemed equitable by the Commission and generally 
not less fair than those granted by the patentee or by the Commission 
to similar licensees for comparable use. 
"f. The Commission shall not grant any patent license pursuant to 
subsection 153 e. for any other purpose than that stated in the appli-
cation. 
Nor shall the Commission grant any patent license to any 
other applicant for a patent license on the same patent without an 
application being made by such applicant pursuant to subsection 153 c, 
and without separate notification and hearing as provided in sub-
section 153 d., and without a separate finding as provided in subsec-
tion 153 e. 
"g. The owner of the patent affected by a declaration or a finding 
made by the Commission pursuant to subsection 153 b. or 153 e. shall 
be entitled to a reasonable royalty fee from the licensee for any use 
of an invention or discovery licensed by this section. Such royalty fee 
may be agreed upon by such owner and the patent licensee, or in the 
absence of such agreement shall be determined for each patent license 
by the Commission pursuant to subsection 157 c. 
"h. The provisions of this section shall apply to any patent the 
application for which shall have been filed before kSeptember 1, 1959, 
SEC. 154. INJUNCTIONS.—No court shall have jurisdiction or power 
to stay, restrain, or otherAvise enjoin the use of any invention or dis-
covery by a patent licensee, to the extent that such use is licensed by 
subsection 153 b. or 153 e. 
If, in any action against such patent 
licensee, the court shall determine that the defendant is exercising 
such license, the measure of damages shall be the royalty fee deter-
mined pursuant to subsection 157 c, together with such costs, interest, 
and reasonable attorney's fees as may be fixed by the court. If no 
royalty fee has been determined, the court shall stay the proceeding 
until the royalty fee is determined pursuant to subsection 157 c. 
If 
any such patent licensee shall fail to pay such royalty fee, the patentee 
may bring an action in any court of competent jurisdiction for such 
royalty fee, together with such costs, interest, and reasonable attor-
ney's fees as may be fixed by the court. 
68 S T A T . ] 
PUBLIC LAW 703-AUG. 30, 1954 
947 
"SEC. 155. PRIOR ART.—In connection with applications for patents 
covered by this Chapter, the fact that the invention or discovery was 
known or used before shall be a bar to the patenting of such invention 
or discovery even though such prior knowledge or use was under 
secrecy within the atomic energy program of the United States. 
"SEC. 156. COMMISSION PATENT LICENSES,—The Commission shall 
establish standard specifications upon which it may grant a patent 
license to use any patent held by the Commission or declared to be 
affected with the public interest pursuant to subsection 153 a. Such a 
patent ]icense shall not waive any of the other provisions of this Act. 
"SEC. 157. COMPENSATION, AWARDS, AND ROYALTIES.— 
"a. PATENT COMPENSATION BOARD.—^The Commission shall designate 
a Patent Compensation Board to consider applications under this sec-
tion. The members of the Board shall receive a per diem compensa-
tion for each day spent in meetings or conferences, and all members 
shall receive their necessary traveling or other expenses while engaged 
- ^' 
in the work of the Board. The members of the Board may serve as 
such without regard to the provisions of sections 281, 283, or 284 of 
Title 18 of the United States Code, except in so far as such sections 
^^ ^***' *^^-
may prohibit any such member from receiving compensation in respect 
of any particular matter which directly involves the Commission or 
in which the Commission is directly interested. 
"b. ELIGIBILITY.— 
"(1) Any owner of a patent licensed under section 158 or subsec-
tions 153 b. or 153 e., or any patent licensee thereunder may make 
application to the Commission for the determination of a reasonable 
royalty fee in accordance with such procedures as the Commission 
by regulation may establish. 
"(2) Any person seeking to obtain the just compensation provided 
in section 151 shall make application therefor to the Commission in 
accordance with such procedures as the Commission may by regulation 
establish. 
"(3) Any person making any invention or discovery useful in the 
production or utilization of special nuclear material or atomic energy, 
who is not entitled to compensation or a royalty therefor under this 
Act and who has complied with the provisions of section 151 c. hereof 
may make application to the Commission for, and the Commission 
may grant, an award. The Commission may also, upon the recom-
mendation of the General Advisory Committee, and with the approval 
of the President, grant an award for any especially meritorious con-
tribution to the development, use, or control of atomic energy. 
"c. STANDARDS.— 
"(1) In determining a reasonable royalty fee as provided for in 
subsections 153 b. or 153 e., the Commission shall take into considera-
tion (A) the advice of the Patent Compensation Board; (B) any 
defense, general or special, that might be pleaded by a defendant in an 
action for infringement; (C) the extent to which, if any, such patent 
was developed through federally financed research; and (D) the 
degree of utility, novelty, and importance of the invention or dis-
covery, and may consider the cost to the owner of the patent of 
developing such invention or discovery or acquiring such patent. 
"(2) In determining what constitutes just compensation as pro-
vided for in section 151, or in determining the amount of any award 
under subsection 157 b. (3), the Commission shall take into account 
the considerations set forth in subsection 157 c. (1) and the actual use 
of such invention or discovery. 
Such compensation may be paid by 
the Commission in periodic payments or in a lump sum. 
"SEC. 158. MONOPOLISTIC USE OF PATENTS.—^Whenever the owner of 
any patent hereafter granted for any invention or discovery of pri-
948 
PUBLIC LAW 703-AUG. 30, 1954 
[68 S T A T . 
mary use in the utilization or production of special nuclear material 
or atomic energy is found by a court of competent jurisdiction to have 
intentionally used such patent in a manner so as to violate any of 
the antitrust laws specified in subsection 105 a., there may be included 
in the judgment of the court, in its discretion and in addition to any 
other lawful sanctions, a requirement that such owner license such 
j)atent to any other licensee of the Commission who demonstrates a 
need therefor. 
Such licensee shall pay a reasonable royalty fee, to be 
determined in accordance with section 157, to the owner of the patent. 
"SEC. 159. FEDERALLY FINANCED RESEARCH.—Nothing in this Act 
shall affect the right of the Commission to require that patents granted 
on inventions, made or conceived during the course of federally 
financed research or operations, be assigned to the United States. 
"SEC. 160. SAVING CLAUSE.—Any patent application on which a pat-
ent was denied by the United States Patent Office under sections 11 
42 use liii 
(^). (1)' 11 (*) (2), or 11 (b) of the Atomic Energy Act of 1946, and 
which is not prohibited by section 151 or section 155 of this Act may 
be reinstated upon application to the Commissioner of Patents within 
one year after enactment of this Act and shall then be deemed to have 
been continuously pending since its original filing date: Pro^nded, 
however, That no patent issued upon any patent application so rein-
stated shall in any way furnish a basis of claim against the Govern-
ment of the United States, 
"CHAPTER 1
4
. 
GENERAL 
AUTHORITY 
"SEC. 161. GENERAL PROVISIONS.—In the performance of its func-
tions the Commission is authorized to— 
"a. establish advisory boards to advise with and make recom-
mendations to the Commission on legislation, policies, adminis-
tration, research, and other matters, provided that the Commission 
issues regulations setting forth the scope, procedure, and limita-
tions of the authority of each such board; 
"b. establish by rule, regulation, or order, such standards and 
instructions to govern the possession and use of special nuclear 
material, source material, and byproduct material as the Com-
mission may deem necessary or desirable to promote the common 
defense and security or to protect health or to minimize danger to 
life or property; 
"c. make such studies and investigations, obtain such informa-
tion, and hold such meetings or hearings as the Commission may 
deem necessary or proper to assist it in exercising any authority 
provided in this Act, or in the administration or enforcement of 
this Act, or any regulations or orders issued thereunder. 
For such 
purposes the Commission is authorized to administer oaths and 
affirmations, and by subpena to require any person to appear and 
testify, or to appear and produce documente, or both, at any desig-
nated place. No person shall be excused from complying with 
any requirements under this paragraph because of his privilege 
against self-incrimination, but the immunity provisions of the 
49 u^c 46 ^' 
Compulsory Testimony Act of February 11,1893, shall apply with 
respect to any individual who specifically claims such privilege. 
Witnesses subpenaed under this subsection shall be paid the same 
fees and mileage as are paid witnesses in the district courts of the 
United States; 
"d. appoint and fix the compensation of such officers and 
employees as may be necessary to carry out the functions of the 
Commission. Such officers and employees shall be appointed in 
accordance with the civil-service laws and their compensation 
68 S T A T . ] 
P U B U C LAW 703-AUG. 30, 1954 
949 
fixed in accordance with the Classification Act of 1949, as amended, 
f uicfi on *not«. 
except that, to the extent the Commission deems such action 
necessary to the discharge of its responsibilities, personnel may 
be employed and their compensation fixed without regard to such 
laws: Provided, hoivever,Thsitno 
officer or employee {except such 
officers and employees whose compensation is fixed by law, and 
scientific and technical personnel) whose position would be sub-
ject to the Classification Act of 1949, as amended, if such Act 
were applicable to such position, shall be paid a salary at a rate 
in excess of the rate payable under such Act for positions of 
equivalent difficulty or responsibility. The Commission shall make 
adequate provision for administrative review of any determination 
to dismiss any employee; 
"e, acquire such material, property, equipment, and facilities, 
establish or construct such buildings and facilities, and modify 
such buildings and facilities from time to time, as it may deem 
necessary, and construct, acquire, provide, or arrange for such 
facilities and services (at project sites where such facilities and 
services are not available) for the housing, health, safety, welfare, 
and recreation of personnel employed by the Commission as it 
may deem necessary, subject to the provisions of section 174; 
"f. with the consent of the agency concerned, utilize or employ 
the services or personnel of any Government agency or any State 
or local government, or voluntary or uncompensated personnel, 
to perform such functions on its behalf as may appear desirable; 
' g. acquire, purchase, lease, and hold real and personal property, 
including patents, as agent of and on behalf of the United States, 
subject to the provisions of section 174, and to sell, lease, grant, 
and dispose of such real and personal property as provided in 
this Act; 
"h. consider in a single application one or more of the activi-
ties for which a license is required by this Act, combine in a single 
license one or more of such activities, and permit the applicant or 
licensee to incorporate by reference pertinent information already 
filed with the Commission; 
"i. prescribe such regulations or orders as it may deem neces-
sary (1) to protect Restricted Data received by any person in 
connection with any activity authorized pursuant to this Act, 
(2) to guard against the loss or diversion of any special nuclear 
material acquired by any person pursuant to section 53 or pro-
duced by any person in connection with any activity authorized 
pursuant to this Act, and to prevent any use or disposition thereof 
which the Commission may determine to be inimical to the com-
mon defense and security, and (3) to govern any activity author-
ized pursuant to this Act, including standards and restrictions 
governing the design, location, and operation of facilities used 
in the conduct of such activity, in order to protect health and to 
minimize danger to life or property; 
" j . without regard to the provisions of the Federal Property 
and Administrative Services Act of 1949, as amended, except sec- 
63 fta^^a^??. 
tion 207 of that Act, or any other law, make such disposition as 488. 
it may deem desirable of (1) radioactive materials, and (2) any 
other property, the special disposition of which is, in the opinion 
of the Commission, in the interest of the national security: 
Pro-
vided, however, That the property furnished to licensees in 
accordance with the provisions of subsection 161 m. shall not be 
deemed to be property disposed of by the Commission pursuant 
to this subsection: 
40 use 471 note. 
950 
PUBLIC LAW 703-AUG. 30, 1954 
[68 S T A T . 
"k. authorize such of its members, officers, and employees as it 
deems necessary in the interest of the common defense and secu-
rity to carry firearms while in the discharge of their official 
duties. The Commission may also authorize such of those employ-
ees of its contractors engaged in the protection of property owned 
by the United States and located at facilities owned by or con-
tracted to the United States as it deems necessary in the interests 
of the common defense and security to carry firearms while in 
the discharge of their official duties; 
"1. secure the admittance free of duty into the United States of 
purchases made abroad of source materials, upon certification to 
the Secretary of the Treasury that such entry is necessary in the 
interest of the common defense and security; 
"m. enter into agreements with persons licensed under section 
103 or 104 for such periods of time as the Commission may deem 
necessary or desirable (1) to provide for the processing, fabri-
cating, separating, or refining in facilities owned by the Commis-
sion of source, byproduct, or other material or special nuclear 
material owned by or made available to such licensees and which 
is utilized or produced in the conduct of the licensed activity, and 
(2) to sell, lease, or otherwise make available to such licensees 
such quantities of source or byproduct material, and other mate-
rial not defined as special nuclear material pursuant to this Act, 
as may be necessary for the conduct of the licensed activity: Pro-
vided^ however^ That any such agreement may be canceled by 
the licensee at any time upon payment of such reasonable cancel-
lation charges as may be agreed upon by the licensee and the 
Commission: And provided further, That the Commission shall 
establish prices to be paid by licensees for material or services to 
' 
be furnished by the Commission pursuant to this subsection, 
which prices shall be established on such a nondiscriminatory 
basis as, in the opinion of the Commission, will provide reasonable 
compensation to the Government for such material or services 
and will not discourage the development of sources of supply 
independent of the Commission; 
"n. assign scientific, technical, professional, and administra-
tive employees for instruction, education, or training by public 
or private agencies, institutions of learning, laboratories, or 
industrial or commercial organizations and to pay the whole or 
any part of the salaries of such employees, costs of their transpor-
tation and per diem in lieu of subsistence in accordance with appli-
cable laws and regulations, and training charges incident to their 
assignments (including tuition and other related fees) : Provided, 
however, That (1) not more than one per centum of the eligible 
employees shall be so assigned during any fiscal year, and (2) 
any such assignment shall be approved in advance by the Com-
mission or shall be in accordance with a training program previ-
ously approved by the Commission: And provided further, 
That 
appropriations or other funds available to the Commission for 
salaries or expenses shall be available for the purposes of this 
. \,- t {). '; •', 
subsection; 
"o. delegate to the General Manager or other officers of the 
Commission any of those functions assigned to it under this Act 
except those specified in sections 51, 57 a. (3), 61, 102 (with 
respect to the finding of practical value), 108, 123, 145 b. (with 
respect to the determination of those persons to whom the Com-
mission may reveal Restricted Data in the national interest), 
145 e., and 161 a.; 
"p. require by rule, regulation, or order, such reports, and the 
keeping of such records with respect to, and to provide for such 
68 S T A T . ] 
PUBLIC LAW 7 0 3 - A U G . 30, 1954 
951 
inspections of, activities and studies of types specified in section 
31 and of activities under licenses issued pursuant to sections 53, 
63, 81,103, and 104, as may be necessary to effectuate the purposes 
of this Act, including section 105; and 
"q. make, promulgate, issue, rescind, and amend such rules and 
regulations as may be necessary to carry out the purposes of this 
Act. 
"SEC. 162. CONTRACTS.—The President may, in advance, exempt 
any specific action of the Commission in a particular matter from the 
provisions of law relating to contracts whenever he determines that 
such action is essential in the interest of the common defense and 
security. 
"SEC. 163. ADVISORY COMMITTEES.—The members of the General 
Advisory Committee established pursuant to section 26 and the mem-
bers of advisory boards established pursuant to section 161 a. may 
serve as such without regard to the provisions of sections 281, 283, or 
284 of Title 18 of the United States Code, except insofar as such 
" stat. 697. 
sections may prohibit any such member from receiving compensation 
in respect of any particular matter which directly involves the Com-
mission or in which the Commission is directly interested. 
"SEC. 
164. ELECTRIC UTILITY CONTRACTS.—The Commission is 
authorized in connection with the construction or operation of the Oak 
Ridge, Paducah, and Portsmouth installations of the Commission, 
without regard to section 3679 of the Revised Statutes, as amended, 
^^ ^ ^ ®
*
*
* 
to enter into new contracts or modify or confirm existing contracts to 
provide for electric utility services for periods not exceeding twenty-
five years, and such contracts shall be subject to termination by the 
Commission upon payment of cancellation costs as provided in such 
contracts, and any appropriation presently or hereafter made avail-
able to the Commission shall be available for the payment of such 
cancellation costs. Any such cancellation payments shall be taken 
into consideration in determination of the rate to be charged in the 
event the Commission or any other agency of the Federal Government 
shall purchase electric utility services from the contractor subsequent 
to the cancellation and during the life of the original contract. 
The 
authority of the Commission under this section to enter into new con-
tracts or modify or confirm existing contracts to provide for electric 
utility services includes, in case such electric utility services are to be 
furnished to the Commission by the Tennessee Valley Authority, 
authority to contract with any person to furnish electric utility services 
to the Tennessee Valley Authority in replacement thereof. Any con-
tract hereafter entered into by the Commission pursuant to this section 
shall be submitted to the Joint Committee and a period of thirty days 
shall elapse while Congress is in session (in computing such thirty days, 
there shall be excluded the days on which either House is not in session 
because of adjournment for more than three days) before the contract 
of the Commission shall become effective: Provided^ however^ That the 
Joint Committee, after having received the proposed contract, may 
by resolution in writing, waive the conditions of or all or any portion 
of such thirty-day period. 
"SEC. 165. CONTRACT PRACTICES.— 
"a. In carrying out the purposes of this Act the Commission shall 
not use the cost-plus-percentage-of-cost system of contracting. 
"b. No contract entered into under the authority of this Act shall 
provide, and no contract entered into under the authority of the 
Atomic Energy Act of 1946, as amended, shall be modified or amended 
42^usc^is0 i 
after the date of enactment of this Act to provide, for direct payment note, 
or direct reimbursement by the Commission of any Federal income 
taxes on behalf of any contractor performing such contract for profit. 
"SEC. 166. COMPTROLLER GENERAL AUDIT.—No moneys appropriated 
952 
PUBLIC LAW 703-AUG. 30, 1964 
[68 STAT. 
for the purposes of this Act shall be available for payments under 
any contract with the Commission, negotiated without advertising, 
except contracts with any foreign government or any agency thereof 
and contracts with foreign producers, unless such contract includes a 
clause to the effect that the Comptroller General of the United States 
or any of his duly authorized representatives shall, until the expira-
tion of three years after final payment, have access to and the right to 
examine any directly pertinent books, documents, papers, and records 
of the contractor or any of his subcontractors engaged in the per-
formance of, and involving transactions related to such contracts or 
subcontracts: Provided^ hoxoever^ That no moneys so appropriated 
shall be available for payment under such contract which includes any 
provision precluding an audit by the General Accounting Office of 
any transaction under such contract. 
"SEC. 167. CLAIM SETTLEMENTS.—The Commission, acting on behalf 
of the United States, is authorized to consider, ascertain, adjust, deter-
mine, settle, and pay, any claim for money damage of $5,000 or less 
against the United States for bodily injury, death, or damage to or 
loss of real or personal property resulting from any detonation, 
explosion, or radiation produced in the conduct of the Commission's 
program for testing atomic weapons, where such claim is presented to 
the Commission in writing within one year after the accident or inci-
dent out of which the claim arises: Provided^ hoioever^ That the dam-
age to or loss of property, or bodily injury or death, shall not have 
been caused in whole or in part by any negligence or wrongful act on 
the part of the claimant, his agents, or employees. Any such settle-
ment under the authority of this section shall be final and conclusive 
for all purposes, notwithstanding any other provision of law to the 
contrary. 
"SEC. 168. PAYMENTS IN LIEU or TAXES.—In order to render finan-
cial assistance to those States and localities in which the activities of 
the Commission are carried on, and in which the Commission has 
acquired property previously subject to State and local taxation, the 
Commission is authorized to make payments to State and local govern-
ments in lieu of property taxes. Such payments may be in the amounts, 
at the times, and upon the terms the Commission deems appropriate, 
but the Commission shall be guided by the policy of not making pay-
ments in excess of the taxes which would have been payable for such 
property in the condition in which it was acquired, except in cases 
where special burdens have been cast upon the State or local govern-
ment by activities of the Commission, the Manhattan Engineer District 
or their agents. In any such case, any benefit accruing to the State or 
local government by reason of such activities shall be considered in 
determining the amount of the payment. 
"SEC. 169. No SUBSIDY.—No funds of the Commission shall be 
employed in the construction or operation of facilities licensed under 
section 103 or 104 except under contract or other arrangement entered 
into pursuant to section 31. 
"CHAPTEK15. COMPENSATION FOR PRIVATE PROPERTY 
ACQUIRED 
"SEC. 171. JUST COMPENSATION.—The United States shall make just 
compensation for any property or interests therein taken or requisi-
tioned pursuant to sections 43, 52 (with respect to the material for 
which the United States is required to pay just compensation), 66, 
and 108. Except in case of real property or any interest therein, the 
Commission shall determine and pay such just compensation. If the 
compensation so determined is unsatisfactory to the person entitled 
68 S T A T . ] 
PUBLIC LAW 703-AUG. 30, 1954 
953 
thereto, such person shall be paid 75 per centum of the amount so 
determined, and shall be entitled to sue the United States in the Court 
of Claims or in any district court of the United States for the district 
in which such claimant is a resident in the manner provided by section 
1346 of Title 28 of the United States Code to recover such further sum 
^2 stat. 933. 
as added to said 75 per centum will constitute just compensation. 
"SEC. 
172. CONDEMNATION OF REAL PROPERTY.—Proceedings 
for 
condemnation shall be instituted pursuant to the provisions of the Act 46"ta\^*i42i' ^^^' 
approved August 1, 1888, as amended, and section 1403 of Title 28 25te°25tef ^ " ' 
of the United States Code. The Act approved February 26, 1931, as 
amended, shall be applicable to any such proceedings. 
"SEC. 173. PATENT APPLICATION DISCLOSURES.—In the event that the 
Commission communicates to any nation any Restricted Data based 
on any patent application not belonging to the United States, just 
compensation shall be paid by the United States to the owner of the 
patent application. 
The Commission shall determine such compen-
sation. If the compensation so determined is unsatisfactory to the 
person entitled thereto, such person shall be paid 75 per centum of the 
amount so determined, and shall be entitled to sue the United States 
in the Court of Claims or in any district court of the United States 
for the district in which such claimant is a resident in a manner pro-
vided by section 1346 of Title 28 of the United States Code to recover 
^2 stat. 933. 
such further sum as added to such 75 per centum will constitute 
just compensation. 
"SEC. 174. ATTORNEY GENERAL APPROVAL OF TITLE.—All real prop-
erty acquired under this Act shall be subject to the provisions of sec-
tion 355 of the Revised Statutes, as amended: Provided^ however^ 
^° "^^ ^ss. 
That real property acquired by purchase or donation, or other means 
of transfer may also be occupied, used, and improved for the purposes 
of this Act prior to approval of title by the Attorney General in those 
cases where the President determines that such action is required 
in the interest of the common defense and security. 
"CHAPTER 16. JUDICIAL REVIEW AND ADMINISTRATIVE 
PROCEDURE 
"SEC. 181. GENERAL.—The provisions of the Administrative Pro-
cedure Act (Public Law 404, Seventy-ninth Congress, approved June 
5°ire*c\'ooi note. 
11, 1946) shall apply to all agency action taken under this Act, and 
the terms 'agency' and 'agency action' shall have the meaning specified 
in the Administrative Procedure Act: Provided^ however^ That in the 
case of agency proceedings or actions which involve Restricted Data or 
defense information, the Commission shall provide by regulation for 
such parallel procedures as will effectively safeguard and prevent dis-
closure of Restricted Data or defense information to unauthorized 
persons with minimum impairment of the procedural rights which 
would be available if Restricted Data or defense information were not 
involved. 
"SEO. 182. LICENSE APPLICATIONS.— 
"a. Each application for a license hereunder shall be in writing and 
shall specifically state such information as the Commission, by rule or 
regulation, may determine to be necessary to decide such of the tech-
nical and financial qualifications of the applicant, the character of the 
applicant, the citizenship of the applicant, or any other qualifications 
of the applicant as the Commission may deem appropriate for the 
license. In connection with applications for licenses to operate pro-
duction or utilization facilities, the applicant shall state such technical 
specifications, including information of the amount, kind, and source 
of special nuclear material required, the place of the use, the specific 
954 
PUBLIC LAW 703-AUG. 30, 1954 
[68 ST A T . 
C o m m ei 
power. 
Notice in FR. 
characteristics of the facility, and such other information as the Com-
mission may, by rule or regulation, deem necessary in order to enable 
ifr'to find that the utilization or production of special nuclear material 
will be in accord with the common defense and security and will 
provide adequate protection to the health and safety of the public. 
Such technical specifications shall be a part of any license issued. 
The 
Commission may at any time after the filing of the original application, 
and before the expiration of the license, require further written state-
ments in order to enable the Commission to determine whether the 
application should be granted or denied or whether a license should 
be modified or revoked. 
All applications and statements shall be 
signed by the applicant or licensee under oath or affirmation. 
"b. The Commission shall not issue any license for a utilization or 
production facility for the generation of commercial power under sec-
tion 103, until it has given notice in writing to such regulatory agency 
as may nave jurisdiction over the rates and services of the proposed 
activity, to municipalities, private utilities, public bodies, and coopera-
tives within transmission distance authorized to engage in the distri-
bution of electric energy and until it has published notice of such 
application once each week for four consecutive weeks in the Federal 
Eegister, and until four weeks after the last notice. 
"c. The Commission, in issuing any license for a utilization or pro-
duction facility for the generation of commercial power under section 
103, shall give preferred consideration to applications for such facili-
ties which will be located in high cost power areas in the United 
States if there are conflicting applications for a limited opjDortunity 
for such license. Where such conflicting applications resulting from 
limited opportunity for such license include those submitted by public 
or cooperative bodies such applications shall be given preferred 
consideration. 
"SEC. 183. TERMS OF LICENSES.—Each license shall be in such form 
and contain such terms and conditions as the Commission may, by 
rule or regulation, prescribe to effectuate the provisions of this Act, 
including the following provisions: 
"a. Title to all special nuclear material utilized or produced by 
facilities pursuant to the license, shall at all times be in the United 
States. 
"b. No right to the special nuclear material shall be conferred by 
the license except as defined by the license. 
"c. Neither the license nor any right under the license shall be 
assigned or otherwise transferred in violation of the provisions of 
this Act. 
"d. Every license issued under this Act shall be subject to the right 
of recapture or control reserved by section 108, and to all of the other 
provisions of this Act, now or hereafter in effect and to all valid rules 
and regulations of the Commission. 
"SEC. 184. iNALiENABiLrrr OF LICENSES.—No license granted here-
under and no right to utilize or produce special nuclear material 
granted hereby shall be transferred, assigned or in any manner dis-
posed of, either voluntarily or involuntarily, directly or indirectly, 
through transfer of control of any license to any person, unless the 
Commission shall, after securing full information, find that the trans-
fer is in accordance with the provisions of this Act, and shall give its 
consent in writing. The Commission may give such consent to the 
creation of a mortgage, pledge, or other lien upon any facility owned 
or thereafter acquired by a licensee, or upon any leasehold or other 
interest in such property, and the rights of the creditors so secured 
may thereafter be enforced by any court subject to rules and regula-
tions established by the Commission to protect public health and 
safety and promote the common defense and security. 
68 S T A T . ] 
PUBLIC LAW 703-AUG. 30, 1954 
955 
"SEC. 185. CONSTRUCTION PERMITS.—All applicants for licenses to 
construct or modify production or utilization facilities shall, if the 
application is otherwise acceptable to the Commission, be initially 
granted a construction permit. The construction permit shall state 
the earliest and latest dates for the completion of the construction 
or modification. Unless the construction or modification of the facility 
is completed by the completion date, the construction permit shall 
expire, and all rights thereunder be forfeited, unless upon good cause 
shown, the Commission extends the completion date. Upon the com-
pletion of the construction or modification of the facility, upon the 
filing of any additional information needed to bring the original 
application up to date, and upon finding that the facility authorized 
, o 
has been constructed and will operate in conformity with the applica-
tion as amended and in conformity with the provisions of this Act 
and of the rules and regulations of the Commission, and in the absence 
of any good cause being shown to the Commission why the granting 
of a license would not be in accordance with the provisions of this 
Act, the Commission shall thereupon issue a license to the applicant. 
For all other purposes of this Act, a construction permit is deemed to 
be a 'license'. 
"SEC. 186. REVOCATION.— 
"a. Any license may be revoked for any material false statement in 
the application or any statement of fact required under section 182, 
or because of conditions revealed by such application or statement of 
fact or any report, record, or inspection or other means which would 
warrant the Commission to refuse to grant a license on an original 
application, or for failure to construct or operate a facility in accord-
ance with the terms of the construction permit or license or the techni-
cal specifications in the application, or for violation of, or failure to 
observe any of the terms and provisions of this Act or of any regula-
tion of the Commission. 
"b. The Commission shall follow the provisions of section 9 (b) of 
t^i^c\ooia>) 
the Administrative Procedure Act in revoking any license. 
"c. Upon revocation of the license, the Commission may immediately 
retake possession of all special nuclear material held by the licensee. 
In cases found by the Commission to be of extreme importance to the 
national defense and security or to the health and safety of the public, 
the Commission may recapture any special nuclear material held by 
the licensee or may enter upon and operate the facility prior to any 
of the procedures provided under the Administrative Procedure Act. 
* use looi note. 
Just compensation shall be paid for the use of the facility. 
"SEC. 187. MODIFICATION or LICENSE.—The terms and conditions of 
all licenses shall be subject to amendment, revision, or modification, by 
reason of amendments of this Act or by reason of rules and regulations 
issued in accordance with the terms of this Act. 
"SEC. 188. CONTINUED OPERATION OF FACILITIES.—Whenever the 
Commission finds that the public convenience and necessity or the 
production program of the Commission requires continued operation 
of a production facility or utilization facility the license for which 
has been revoked pursuant to section 186, the Commission may, after 
consultation with the appropriate regulatory agency, State or Fed-
eral, having jurisdiction, order that possession be taken of and such 
facility be operated for such period of time as the public convenience 
and necessity or the production program of the Commission may, in 
the judgment of the Commission, require, or until a license for the 
operation of the facility shall become effective. 
Just compensation 
shall be paid for the use of the facility. 
"SEC. 189. HEARINGS AND JUDICIAL EEVIEW.— 
"a. In any proceeding under this Act, for the granting, suspending, 
956 
PUBLIC LAW 703-AUG. 30, 1954 
[68 STAT. 
revoking, or amending of any license or construction permit, or appli-
cation to transfer control, and in any proceeding for the issuance or 
modification of rules and regulations dealing with the activities of 
licensees, and in any proceeding for the payment of compensation, an 
award or royalties under sections 153, 157, 186 c, or 188, the Com-
mission shall grant a hearing upon the request of any person whose 
interest may be affected by the proceeding, and shall admit any such 
person as a party to such proceeding. 
"b. Any final order entered in any proceeding of the kind specified 
in subsection a. above shall be subject to judicial review in the manner 
prescribed in the Act of December 29,1950, as amended (ch. 1189, 64 
io42"foo9.^ °^ *' Stat. 1129), and to the provisions of section 10 of the Administrative 
Procedure Act, as amended. 
"CHAPTER 17. JOINT COMMITTEE ON ATOMIC ENERGY 
"SEC. 201. MEMBERSHIP.—There is hereby established a Joint Com-
mittee on Atomic Energy to be composed of nine Members of the 
Senate to be appointed by the President of the Senate, and nine Mem-
bers of the House of Representatives to be appointed by the Speaker 
of the House of Representatives. In each instance not more than five 
Members shall be members of the same political party. 
"SEC. 202. AUTHORITY AND DUTT.—The Joint Committee shall make 
continuing studies of the activities of the Atomic Energy Commission 
and of problems relating to the development, use, and control of 
atomic energy. 
During the first sixty days of each session of the 
Congress, the Joint Committee shall conduct hearings in either open 
or executive session for the purpose of receiving information concern-
ing the development, growth, and state of the atomic energy industry. 
The Commission shall keep the Joint Committee fully and currently 
informed with respect to all of the Commission's activities. The 
Department of Defense shall keep the Joint Committee fully and cur-
rently informed with respect to all matters within the Department of 
Defense relating to the development, utilization, or application of 
atomic energy. Any Government agency shall furnish any informa-
tion requested by the Joint Committee with respect to the activities 
or responsibilities of that agency in the field of atomic energy. All 
bills, resolutions, and other matters in the Senate or the House of Rep-
resentatives relating primarily to the Commission or to the develop-
ment, use, or control of atomic energy shall be referred to the Joint 
Committee. The members of the Joint Committee who are Members 
of the Senate shall from time to time report to the Senate, and the 
members of the Joint Committee who are Members of the House of 
Representatives shall from time to time report to the House, by bill 
or otherwise, their recommendations with respect to matters within 
the jurisdiction of their respective Houses which are referred to the 
Joint Committee or otherwise within the jurisdiction of the Joint 
Committee. 
"SEC. 203. CHAIRMAN.—^Vacancies in the membership of the Joint 
Committee shall not affect the power of the remaining members to 
execute the functions of the Joint Committee, and shall be filled in the 
same manner as in the case of the original selection. 
The Joint Com-
mittee shall select a Chairman and a Vice Chairman from among its 
members at the beginning of each Congress. 
The Vice Chairman shall 
act in the place and stead of the Chairman in the absence of the Chair-
man. The Chairmanship shall alternate between the Senate and the 
House of Representatives with each Congress, and the Chairman shall 
be selected by the Members from that House entitled to the Chair-
68 S T A T . ] 
P U B U C LAW 703-AUG. 30, 1954 
957 
mansliip. 
The Vice Chairman shall be chosen from the House other 
than that of the Chairman by the Members from that House. 
"SEC. 204. POWERS.—^In carrying out its duties under this Act, the 
Joint Committee, or any duly authorized subcommittee thereof, is 
authorized to hold such hearings or investigations, to sit and act at 
such places and times, to require, by subpena or otherwise, the attend-
ance of such witnesses and the production of such books, papers, and 
documents, to administer such oaths, to take such testimony, to pro-
cure such printing and binding, and to make such expenditures as it 
deems advisable. 
The Joint Committee may make such rules respect-
ing its organization and procedures as it deems necessary: 
Provided, 
however^ That no measure or recommendation shall be reported from 
the Joint Committee unless a majority of the committee assent. Sub-
penas may be issued over the signature of the Chairman of the Joint 
Committee or by any member designated by him or by the Joint 
Committee, and may be served by such person or persons as may be 
designated by such Chairman or member. 
The Chairman of the Joint 
Committee or any member thereof may administer oaths to witnesses. 
The Joint Committee may use a committee seal. The provisions of ^°^ic^l%\-\%^' 
sections 102 to 104, inclusive, of the Revised Statutes, as amended, shall 
apply in case of any failure of any witness to comply with a subpena 
or to testify when summoned under authority of this section. The 
expenses of the Joint Committee shall be paid from the contingent 
fund of the Senate from funds appropriated for the Joint Committee 
upon vouchers approved by the Chairman, 
The cost of stenographic 
service to report public hearings shall not be in excess of the amounts 
prescribed by law for reporting the hearings of standing committees 
of the Senate. 
The cost of stenographic service to report executive 
hearings shall be fixed at an equitable rate by the Joint Committee. 
Members of the Joint Committee, and its employees and consultants, 
while traveling on official business for the Joint Committee, may 
receive either the per diem allowance authorized to be paid to Mem-
bers of Congress or its employees, or their actual and necessary 
expenses provided an itemized statement of such expenses is attached 
to the voucher. 
"SEC. 205. STAFF AND ASSISTANCE.—The Joint Committee is empow-
ered to appoint and fix the compensation of such experts, consultants, 
technicians, and staff employees as it deems necessary and advisable. 
The Joint Committee is authorized to utilize the services, information, 
facilities, and personnel of the departments and establishments of the 
Government. 
The Joint Committee is authorized to permit such of 
its members, employees, and consultants as it deems necessary in the 
interest of common defense and security to carry firearms while in 
the discharge of their official duties for the committee. 
"SEC. 206. CLASSIFICATION OF INFORMATION.—The Joint Committee 
may classify information originating within the committee in accord-
ance with standards used generally by the executive branch for classi-
fying Restricted Data or defense information. 
"SEC. 207. RECORDS.—The Joint Committee shall keep a complete 
record of all committee actions, including a record of the votes on 
any question on which a record vote is demanded. All committee 
records, data, charts, and files shall be the property of the Joint Com-
mittee and shall be kept in the offices of the Joint Committee or other 
places as the Joint Committee may direct under such security safe-
guards as the Joint Committee shall determine in the interest of the 
common defense and security. 
958 
PUBLIC LAW 703-AUG. 30, 1954 
[68 S T A T . 
"CHAPTEK 18. ENFOKCEMENT 
"SEG. 221. GENERAL PROVISIONS.— 
"a. To protect against the unlawful dissemination of Restricted 
Data and to safeguard facilities, eq[uipment, materials, and other prop-
erty of the Commission, the President shall have authority to utilize 
the services of any Government agency to the extent he may deem 
necessary or desirable. 
"b. The Federal Bureau of Investigation of the Department of 
Justice shall investigate all alleged or suspected criminal violations 
of this Act. 
"c. No action shall be brought against any individual or person for 
any violation under this Act unless and until the Attorney General of 
the United States has advised the Commission with respect to such 
action and no such action shall be commenced except by the Attorney 
General of the United States: Provided^ however^ That no action shall 
be brought under sections 222,223,224,225 or 226 except by the express 
direction of the Attorney General. 
"SEO. 222. VIOLATION OF SPECIFIC SECTIONS,—Whoever willfully vio-
lates, attempts to violate, or conspires to violate, any provision of 
sections 57, 92, or 101, or whoever unlawfully interferes, attempts to 
interfere, or conspires to interfere with any recapture or entry under 
section 108, shall, upon conviction thereof, be punished by a fine of not 
more than $10,000 or by imprisonment for not more than five years, 
or both, except that whoever commits such an offense with intent to 
injure the United States or with intent to secure an advantage to any 
foreign nation shall, upon conviction thereof, be punished by death or 
imprisonment for life (but the penalty of death or imprisonment for 
life may be imposed only upon recommendation of the jury), or by a 
fine of not more than $20,000 or by imprisonment for not more than 
twenty years, or both. 
"SEC. 223. VIOLATION OF SECTIONS GENERALLY.—Whoever willfully 
violates, attempts to violate, or conspires to violate, any provision of 
this Act for which no penalty is specifically provided or of any regula-
tion or order prescribed or issued under section 65 or subsections 161 b., 
i., or p. shall, upon conviction thereof, be punished by a fine of not 
more than $5,000 or by imprisonment for not more than two years, or 
both, except that whoever commits such an offense with intent to injure 
the United States or with intent to secure an advantage to any foreign 
nation, shall, upon conviction thereof, be punished by a fine of not more 
than $20,000 or by imprisonment for not more than twenty years, or 
both. 
"SEC. 224. COMMUNICATION OF RESTRICTED DATA.—^Whoever, law-
fully or unlawfully, having possession of, access to, control over, or 
being entrusted with any document, writing, sketch, photograph, plan, 
model, instrument, appliance, note, or information involving or 
incorporating Restricted Data— 
"a. communicates, transmits, or discloses the same to any indi-
vidual or person, or attempts or conspires to do any of the fore-
going, with intent to injure the United States or with intent to 
secure an advantage to any foreign nation, upon conviction 
thereof, shall be punished by death or imprisonment for life (but 
the penalty of death or imprisonment for life may be imposed only 
upon recommendation of the jury), or by a fine of not more than 
$20,000 or imprisonment for not more than twenty years, or both; 
"b. communicates, transmits, or discloses the same to any indi-
vidual or person, or attempts or conspires to do any of the fore-
going, with reason to believe such data will be utilized to injure 
the United States or to secure an advantage to any foreign nation. 
68 S T A T . ] 
PUBLIC LAW 7 0 3 - A U G . 30, 1954 
959 
shall, upon conviction, be punished by a fine of not more than 
$10,000 or imprisonment for not more than ten years, or both. 
"SEC. 225. RECEIPT OF RESTRICTED DATA.—^Whoever, with intent to 
injure the United States or with intent to secure an advantage to any 
foreign nation, acquires, or attempts or conspires to acquire any docu-
ment, writing, sketch, photograph, plan, model, instrument, appli-
ance, note, or information involving or incorporating Restricted Data 
shall, upon conviction thereof, be punished by death or imprisonment 
for life (but the penalty of death or imprisonment for life may be 
imposed only upon recommendation of the jury), or by a fine of not 
more than $20,000 or imprisonment for not more than twenty years, 
or both. 
"SEC. 226. TAMPERING WITH RESTRICTED DATA.—^Whoever, with intent 
to injure the United States or with intent to secure an advantage to 
any foreign nation, removes, conceals, tampers with, alters, mutilates, 
or destroys any document, writing, sketch, photograph, plan, model, 
instrument, appliance, or note involving or incorporating Restricted 
Data and used by any individual or person in connection with the 
production of special nuclear material, or research or development 
relating to atomic energy, conducted by the United States, or financed 
in whole or in part by Federal funds, or conducted with the aid of 
special nuclear material, shall be punished by death or imprisonment 
for life (but the penalty of death or imprisonment for life may be 
imposed only upon recommendation of the jury), or by a fine of not 
more than $20,000 or imprisonment for not more than twenty years, 
or both. 
"SEC. 227. DISCLOSURE OF RESTRICTED DATA.—Whoever, being or 
having been an employee or member of the Commission, a member 
of the Armed Forces, an employee of any agency of the United States, 
or being or having been a contractor of the Commission or of an 
agency of the United States, or being or having been an employee of 
a contractor of the Commission or of an agency of the United States, 
or being or having been a licensee of the Commission, or being or 
having been an employee of a licensee of the Commission, knowingly 
communicates, or whoever conspires to communicate or to receive, 
any Restricted Data, knowing or having reason to believe that such 
data is Restricted Data, to any person not authorized to receive Re-
stricted Data pursuant to the provisions of this Act or under rule or 
regulation of the Commission issued pursuant thereto, knowing or 
having reason to believe such person is not so authorized to receive 
Restricted Data shall, upon conviction thereof, be punishable by a 
fine of not more than $2,500. 
"SEC. 228. STATUTE OF LIMITATIONS.—Except for a capital offense, 
no individual or person shall be prosecuted, tried, or punished for any 
offense prescribed or defined in sections 224 to 226, inclusive, of this 
Act unless the indictment is found or the information is instituted 
within ten years next after such offense shall have been committed. 
"SEC. 229. OTHER LAWS.—Sections 224 to 228 shall not exclude the 
applicable provisions of any other laws. 
"SEC. 230. INJUNCTION PROCEEDINGS.—Whenever in* the judgment 
of the Commission any person has engaged or is about to engage in 
any acts or practices which constitute or will constitute a violation of 
any provision of this Act, or any regulation or order issued there-
under, the Attorney General on behalf of the United States may make 
application to the appropriate court for an order enjoining such acts 
or practices, or for an order enforcing compliance with such provision, 
and upon a showing by the Commission that such person has engaged 
or is about to engage in any such acts or practices, a permanent or 
temporary injunction, restraining order, or other order may be 
granted. 
960 
PUBLIC LAW 703-AUG. 30, 1954 
[68 STAT. 
"SEC. 231. CONTEMPT PROCEEDINGS.—In case of failure or refusal to 
obey a subpena served upon any person pursuant to subsection 161 c , 
the district court for any district in which such person is found or 
resides or transacts business, upon application by the Attorney Gen-
eral on behalf of the United States, shall have jurisdiction to issue an 
order requiring such person to appear and give testimony or to appear 
and produce documents, or both, in accordance with the subpena; and 
any failure to obey such order of the court may be punished by such 
court as a contempt thereof. 
"CHAPTER 19. MISCELLANEOUS 
"SEC. 241. TRANSEER OF PROPERTY.—Nothing in this Act shall be 
deemed to repeal, modify, amend, or alter the provisions of section 
42 u^c lioka) 
^ (^) ^^ ^^^ Atomic Energy Act of 1946, as heretofore amended. 
"SEC. 251. REPORT TO CONGRESS.—The Commission shall submit to 
the Congress, in January and July of each year, a report concerning 
the activities of the Commission. The Commission shall include in 
such report, and shall at such other times as it deems desirable submit 
to the Congress, such recommendations for additional legislation as 
the Commission deems necessary or desirable. 
"SEC. 261. APPROPRIATIONS.—^There are hereby authorized to be 
appropriated such sums as may be necessary and appropriate to carry 
out the provisions and purposes of this Act except such as may be 
necessary for acquisition or condemnation of any real property or any 
facility or for plant or facility acquisition, construction, or expansion. 
The Acts appropriating such sums may appropriate specified portions 
thereof to be accounted for upon the certification of the Commission 
only. Funds appropriated to the Commission shall, if obligated by 
contract during the nscal year for which appropriated, remain avail-
able for expenditure for four years following the expiration of the 
fiscal year for which appropriated. 
"SEC. 271. AGENCY JURISDICTION.—Nothing in this Act shall be 
construed to affect the authority or regulations of any Federal, State, 
or local agency with respect to the generation, sale, or transmission of 
electric power. 
"SEC. 272. APPLICABILITY OF FEDERAL POWER ACT.—Every licensee 
under this Act who holds a license from the Commission for a utiliza-
tion or production facility for the generation of commercial electric 
energy under section 103 and who transmits such electric energy in 
interstate commerce or sells it at wholesale in interstate commerce 
shall be subject to the regulatory provisions of the Federal Power Act. 
"SEC. 273. LICENSING OF GOVERNMENT AGENCIES.—Nothing in this 
Act shall preclude any Government agency now or hereafter author-
ized by law to engage in the production, marketing, or distribution of 
electric energy from obtaining a license under section 103, if qualified 
under the provisions of section 103, for the construction and operation 
of production or utilization facilities for the primary purpose of pro-
ducing electric energy for disposition for ultimate public consumption. 
"SEC. 281. SEPARABILITY.—If any provision of this Act or the appli-
cation of such provision to any person or circumstances, is held invalid, 
the remainder of this Act or the application of such provision to per-
sons or circumstances other than those as to which it is held invalid, 
shall not be affected thereby. 
"SEC. 291. SHORT TITLE.—This Act may be cited as the 'Atomic 
Energy Act of 1954'." 
Ante, p . 955. 
New Mexico. 
Retrocession. 
68 S T A T . ] 
PUBLIC LAW 704-AUG. 30, 1954 
961 
jgjjQ 2 . 
a. Section 1 (d) of the Act of December 29,1950 (64 Stat. 1129), is 
s use io3i(d). 
amended by inserting before the period at the end thereof a semicolon 
and the following: "when such order was entered by the Atomic Energy 
Commission, 'agency' means that Commission". 
b. Section 2 of the Act of Decemjjer 29, 1950 (64 Stat. 1129), is 
lou^^of Ap-
amended by inserting before the period at the end of the first para- P®"^^' ju'isdic-
graph thereof a comma and the following: "and (d) of the Atomic 
Energy Commission made reviewable by section 189 of the Atomic 
Energy Act of 1954, as amended". 
SEC. 3. There is hereby retroceded to the State of New Mexico the 
exclusive jurisdiction heretofore acquired from the State of New 
Mexico by the United States of America over the following land of 
the United States Atomic Energy Commission in Bernalillo County 
and within the boundaries of the Sandia base, Albuquerque, New 
Mexico. 
Beginning at the center quarter corner of section 30, township 10 
north, range 4 east, New Mexico principal meridian, Bernalillo 
County, New Mexico, thence south no degrees twenty-three minutes 
thirty seconds west one thousand nine hundred forty-seven and twenty 
one-hundredths feet, thence north eighty-nine degrees thirty-six min-
utes forty-five seconds east two thousand sixty-eight and forty one-
hundredths feet, thence north eighty-nine degrees three minutes fif-
teen seconds east five hundred forty-six feet, thence north no degrees 
thirty-nine minutes no seconds east two hundred thirty-two and sev-
enty one-hundredths feet, thence north eighty-nine degrees twenty-
one minutes no seconds west eight hundred fifty-two and twenty one-
hundredths feet, thence north no degrees thirty-nine minutes no sec-
onds east five hundred and sixty one-hundredths feet, thence along 
the back of the south curb of West Sandia Drive, Sandia Base, Ber-
nalillo County, New Mexico, eight hundred sixty-five and sixty one-
hundredths feet, thence north no degrees thirty-nine minutes no sec-
onds east one thousand three hundred thirty-five and three-tenths feet 
to a point south eighty-nine degrees twenty-seven minutes forty-five 
seconds west a distance of thirty feet from the quarter corner common 
to sections 30 and 29, township 10 north, range 4 east, thence south 
eighty-nine degrees, twenty-seven minutes forty-five seconds west two 
thousand six hundred twenty-three and forty one-hundredths feet 
to the point of beginning. 
This retrocession of jurisdiction shall take effect upon acceptance 
by the State of New Mexico. 
Approved August 30, 1954, 9:44 a.m., E.D.T. 
Public Law 704 
CHAPTER 1074 
' ' ^ ^^^ 
August 30, 1954 
To authorize and direct the construction of bridges over the Potomac River, and 
[H. R. 1980] 
for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress 
assembled, 
TITLE I—BRIDGE IN VICINITY OF CONSTITUTION 
AVENUE 
That (a) the Commissioners of the District of Columbia are author-
ized and directed to construct, maintain, and operate a low-level bridge 
over the Potomac River, from the vicinity of Constitution Avenue 
39777 O—55—pt. 1 
63 
Potomac R i v e r 
bridges.