An Act to amend sections 13(d), 13(e), 14(d), and 14(e) of the Securities Exchange Act of 1934 in order to provide additional protection for investors
PL 91-567 (S.3431), enacted 12/22/1970

84 STAT. ] 
PUBLIC LAW 91-567-DEC. 22, 1970 
1497 
Public Law 91-567 
A N A C T 
December 22, 1970 
To amend sections 13(d), 13(e), 14(d), and 14(e) of the Securities Exchange 
[s.343i] 
Act of 1934 in order to provide additional protection for investors. 
Securities Ex-
Be it enacted hy the Seriate and House of Re^resentatwes 
of the 
United States of America in Congress assembled^ That (a) the part of 
paragraph (1) of subsection (d) of section 13 of the Securities anfen^dment." 
' 
Exchange Act of 1934 (15 U.S.C. 78m(d) (1)) which precedes clause 
investor protec-
tion. 
454. 
(A) is amended— 
82*stat. 
(1) by inserting after "section 12 of this title" the following: 
48 stat. 392; 
", or any equity security of an insurance company which would ^^IS'USC^TSL 
have been required to be so registered except for the exemption 
contained in section 12(g) (2) (G) of this title,"; and 
(2) by striking out "10 per centum" and inserting in lieu thereof 
"5 per centum". 
(b) Paragraph (5) of subsection (d) of section 13 of the Securities 
Exchange Act of 1934 (15 U.S.C. 78m(d)(5)) is redesignated as 
paragraph (6) and the following new paragraph is inserted immedi-
ately after paragraph (4). 
"(5) The Commission, by rule or regulation or by order, may permit 
Notice in iieu 
any person to file in lieu of the statement required by paragraph (1) mem?""^^'* ^'^*' 
of this subsection or the rules and regulations thereunder, a notice 
stating the name of such person, the number of shares of any equity 
securities subject to paragraph (1) which are owned by him, the date 
of their acquisition and such other information as the Commission may 
specify, if it appears to the Commission that such securities were 
acquired by such person in the ordinary course of his business and 
were not acquired for the purpose of and do not have the effect of 
changing or influencing the control of the issuer nor in connection with 
or as a participant in any transaction having such purpose or effect." 
SEC. 2. Paragraph (2) of subsection (e) of section 13 of the Securities ^^^^^^^^"^^ 
Exchange Act of 1934 (15 U.S.C. 78m (e) (2)) is amended by adding 
at the end thereof the following: "The Commission shall have power 
to make rules and regulations implementing this paragraph in the 
public interest and for the protection of investors, including exemptive 
rules and regulations covering situations in which the Commission 
deems it unnecessary or, inappropriate that a purchase of the type 
described in this paragraph shall be deemed to be a purchase by the 
issuer for purposes of some or all of the provisions of paragraph (1) 
of this subsection." 
SEC. 3. The first sentence of paragraph (1) of subsection (d) of 
section 14 of the Securities Exchange Act of 1934 (15 U.S.C. 78n(d) 
(1)) is amended— 
(1) by inserting after "section 12 of this title," the following: 
"or any equity security of an insurance company which would have 
been required to be so registered except for the exemption con-
tained in section 12(sr) (2) (G) of this title,"; and 
78 stat. 557. 
(2) by striking out "10 per centum" and inserting in lieu thereof 
"5 per centum". 
SEC. 4. Paragraph 8 of subsection (d) of section 14 of the Securities 
Exchange Act of 1934 (15 U.S.C. 78n(d) (8)) is amended by striking 
out clause (A) and redesignating clauses (B), (C),and (D) as clauses 
(A), (B), and (C), respectively. 
SEC. 5. Subsection (e) of section 14 of the Securities Exchange Act 
(15 U.S.C. 78n(e)) is amended by adding the following sentence at 
the end thereof: "The Commission shall, for the purposes of this 
subsection, by rules and regulations define, and prescribe means reason-
1498 
PUBLIC LAW 91-567-DEC. 22, 1970 
[84 STAT. 
ably designed to prevent, such acts and practices as are fraudulent, 
deceptive, or manipulative." 
securuffr.'' 
SEC. 6. (a) Scctlon 3(a) (2) of the Securities Act of 1933 (15 U.S.C. 
Ante, pp. 718, 
77c(a) (2)) is amended to read as follows: 
i'*34. 
" (2) Any security issued or guaranteed by the United States or any 
territory thereof, or by the District of Columbia, or by any State 
of the United States, or by any political subdivision of a State or 
territory, or by any public instrumentality of one or more States or 
territories, or by any person controlled or supervised by and acting 
as an instrumentality of the Government of the United States pur-
suant to authority granted by the Congress of the United States; or 
any certificate of deposit for any of the foregoing; or any security 
issued or guaranteed by any bank; or any security issued by or repre-
senting an interest in or a direct obligation of a Federal Reserve bank; 
or any interest or participation in any common trust fund or similar 
fund maintained by a bank exclusively for the collective investment 
and reinvestment of assets contributed thereto by such bank in its 
capacity as trustee, executor, administrator, or guardian; or any 
security which is an industrial development bond (as defined in sec-
82^sfaf'26*6^1349 *^"^ 103(c) (2) of the Internal Revenue Code of 1954) the interest on 
26 use 103. 
* which is excludable from gross income under section 103(a)(1) of 
such Code if, by reason of the application of paragraph (4) or (6) of 
section 103(c) of such Code (determined as if paragraphs (4) (A), 
(6), and (7) were not included in such section 103(c)), paragraph (1) 
of such section 103(c) does not apply to such security; or any interest 
or participation in a single or collective trust fund maintained by a 
bank or in a separate account maintained by an insurance company 
which interest or participation is issued in connection with (A) a 
stock bonus, pension, or profit-sharing plan which meets the require-
ments for qualification under section 401 of the Internal Revenue Code 
68A Stat. 134. 
of 1954, Or (B) an annuity plan which meets the requirements for the 
26 use 401. 
deduction of the employer's contribution under section 404(a) (2) of 
76 Stat. 1141. 
such Code, other than any plan described in clause (A) or (B) of this 
paragraph (i) the contributions under which are held in a single 
trust fund maintained by a bank or in a separate account maintained 
by an insurance company for a single emplo;^er and under which 
an amount in excess of the employer's contribution is allocated to the 
purchase of securities (other than interests or participations in the 
trust or separate account itself) issued by the employer or by any 
company directly or indirectly controlling, controlled by or under 
common control with the employer or (ii) which covers employees 
some or all of whom are employees within the meaning of section 
76 Stat. 811. 
401(c)(1) of such Codc. The Commission, by rules and regulations 
48 Stat. 77; 
Qr Order, shall exempt from the provisions of section 5 of this title 
i5*use 77*e. 
8ny interest or participation issued in connection with a stock bonus, 
pension, profit-sharing, or annuity plan which covers employees some 
or all of whom are employees within the meaning of section 401(c) (1) 
of the Internal Revenue Code of 1954, if and to the extent that the 
Commission determines this to be necessary or appropriate in the 
public interest and consistent with the protection of investors and the 
purposes fairly intended by the policy and provisions of this title. For 
purposes of this paragraph, a security issued or ^laranteed bj^ a 
bank shall not include any interest or participation in any collective 
"Bank." 
trust fund maintained by a bank; and the term 'bank' means any 
national bank, or any banking institution organized under the laws 
of any State, territory, or the District of Columbia, the business of 
which is substantially confined to banking and is sui)ervised by the 
State or territorial banking commission or similar official; except that 
in the case of a common trust fund or similar fund, or a collective 
84 STAT. ] 
PUBLIC LAW 91.569-DEC. 23, 1970 
1499 
trust fund, the term 'bank' has the same meaning as in the Investment 
Company Act of 1940." 
ft,%^n-J<^^' 
(b) Section 3 (a) of the Securities Exchange Act of 1934 (15 U.S.C. 
'^ 
^ 
" 
78c) (relating to exempted securities) is amended by inserting after 
^'"*' PP- ''^^•' 
"any municipal corporate instrumentality of one or more States;" in ^'^^^' 
paragraph (12) the following: "or any security which is an industrial 
development bond (as defined in section 103(c)(2) of the Internal 
Revenue Code of 1954) the interest on which is excludable from gross 1349^'^** ^^^' 
income under section 103(a) (1) of such Code if, by reason of the appli- 
26 use 103. 
cation of paragraph (4) or (6) of section 103(c) of such Code (deter-
mined as if paragraphs (4) (A), (5), and (7) were not included in 
such section 103(c)), paragraph (1) of such section 103(c) does not 
apply to such security;". 
(c) Section 304(a) of the Trust Indenture Act of 1939 (15 U.S.C 
77ddd) (relating to exempted securities) is amended bv reclassifying 
the present text of paragraph (4) thereof as paragraph (4) (A), and 
by adding a new subparagraph (B) at the end of such paragraph (4), 
to read as follows: 
"(B) any security exempted from the provisions of the Securities 
Act of 1933, as amended, by paragraph (2) of subsection 3(a) thereof, 
as amended by section 401 of the Employment Security Amendments 
o f 1970." 
^ " ' O ' P- 718. 
(d) The amendments made by this section shall apply with respect 
to securities sold after January 1,1970. 
Approved December 22, 1970. 
Public Law 91-568 
AN ACT 
December 22, 1970 
To amend the peanut marketing quota provisions to make permanent certain 
[H. R. 17582] 
provisions thereunder. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled. That section 358a 
Peanut acreage 
of the Agricultural Adjustment Act of 1938, as amended, is further ^ 8T'stTt?658; 
amended as follows: 
33 stat. 213. 
S3 Stat. 1153. 
Ante, p. 1498. 
Effective date 
7 use 1358a. 
(1) Subsection (a) thereof is amended by deleting", 1969, and 1970" 
and inserting in lieu thereof "and succeeding". 
Approved December 22, 1970. 
Public Law 91-569 
AN A C T 
December 23, 1970 
To amend the Interstate Commerce Act and the Federal Aviation Act of 1958 
[H.R. 10634] 
in order to exempt certain compensation of employees from withholding for 
income tax purposes under the laws of States or subdivisions thereof other 
than the State or subdivision of residence or the State or subdivision wherein 
more than 50 per centum of compensation is earned, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress aHsembled^ That part I of the 
interstate trans-
Interstate Commerce Act is amended by redesignating section 26 ees.^ °" ^'"^ °^' 
as section 27 and by inserting before such section a new section as 
state income tax 
fnllr>w«- 
withholding, cer.. 
iwinj-wD. 
tain wage exemp-
tions. 
54 Stat. 919. 
49 use 27.