An Act to extend and amend the Renegotiation Act of 1951.
PL 84-870 (H.R.11947), enacted 08/01/1956

786 
PUBLIC LAW 870-AUG. 1, 1956 
[70 
S T A T . 
August I, 1956 
[H. R. 11947] 
Public Law 870 
CHAPTER 821 
AN ACT 
To extend and amend the Renegotiation Act of 1951. 
R en e go t iation 
Amendments Act 
of 1956. 
65 Stat. 8. 
" T e r m i n a t i o n 
date". 
65 Stat. 8. 
50 u s e 1213(a). 
"Status termina-
tion date". 
65 Stat. 8, 9. 
"Department". 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Renegotiation Amendments Act of 1956". 
SEC. 2. Section 102 of the Renegotiation Act of 1951 (50 U. S. C , 
App., sec. 1212) is amended by striking out "; but the provisions of 
this title shall not be applicable to receipts or accruals attributable 
to performance, under contracts or subcontracts, after December 31, 
1956" in subsection (a); by relettering subsections (c) and (d) as 
(d) and (e), respectively; and by inserting after subsection (b) the 
following new subsection: 
"(c) 
TERMINATION.— 
" (1) I N GENERAL.—The provisions of this title shall apply only 
with respect to receipts and accruals, under contracts with the 
Departments and related subcontracts, which are determined un-
der regulations prescribed by the Board to be reasonably attribut-
able to performance prior to the close of the termination date. 
Notwithstanding the method of accounting employed by the con-
tractor or subcontractor in keeping his records, receipts or ac-
cruals determined to be so attributable, even if received or accrued 
after the termination date, shall be considered as having been 
received or accrued not later than the termination date. For the 
purposes of this title, the term 'termination date' means December 
31, 1958. 
" (2) 
TERMINATION or STATUS AS DEPARTMENT.—When the status 
of any agency of the Government as a Department within the 
meaning of section 103 (a) is terminated, the provisions of this 
title shall apply only with respect to receipts and accruals, under 
contracts with such agency and related subcontracts, which are 
determined under regulations prescribed by the Board to be 
reasonably attributable to performance prior to the close of the 
status termination date. 
Notwithstanding the method of ac-
counting employed by the contractor or subcontractor in keeping 
his records, receipts or accruals determined to be so attributable, 
even if received or accrued after the status termination date, shall 
be considered as having been received or accrued not later than 
the status termination date. 
For the purposes of this paragraph, 
the term 'status termination date' means, with respect to any 
agency, the date on which the status of such agency as a Depart-
ment within the meaning of section 103 (a) is terminated." 
SEC. 3. (a) Subsections (a) and (b) of section 103 of such Act 
(50 U. S. C., App., sees. 1213 (a) and (b)) are amended to read as 
follows: 
"(a) DEPARTMENT.—The term 'Department' means the Department 
of Defense, the Department of the Army, the Department of the Navy, 
the Department of the Air Force, the Maritime Administration, the 
Federal Maritime Board, the General Services Administration, and 
the Atomic Energy Commission. 
Such term also includes any other 
agency of the Government exercising functions having a direct and 
immediate connection with the national defense which is designated 
by the President during a national emergency proclaimed by the 
President, or declared by the Congress, after the date of the enact-
ment of the Renegotiation Amendments Act of 1956; but such desig-
nation shall cease to be in effect on the last day of the month during 
which such national emergency is terminated. 
70 S T A T . ] 
PUBLIC LAW 870-AUG. 1, 1956 
787 
"(b) SECRETARY.—The term 'Secretary' means the Secretary of 
Defense, the Secretary of the Army, the Secretary of the Navy, the 
Secretary of the Air Force, the Secretary of Commerce (with respect 
to the Maritime Administration), the Federal Maritime Board, the 
Administrator of General Services, the Atomic Energy Commission, 
and the head of any other agency of the Government which the Presi-
dent shall designate as a Department pursuant to subsection (a) of 
this section." 
(b) The amendment made by subsection (a) shall take effect on 
December 31, 1956. 
SEC. 4. (a) Section 103 of such Act (50 U. S. C , App., sec. 1213) 
is amended by adding at the end thereof the following new subsection: 
"(m) 
Two-YEAR Loss CARRYFORWARD.— 
"(1) ALLOWANCE.—Notwithstanding any other provision of 
this section, the renegotiation loss deduction for any fiscal year 
ending on or after December 31, 1956, shall be allowed as an item 
of cost in such fiscal 3^ear, under regulations of the Board. 
"(2) DEFINITIONS.—For the purposes of this subsection— 
"(A) The term 'renegotiation loss deduction' means, for 
any fiscal year ending on or after December 31,1956, the sum 
of the renegotiation loss carryforwards to such fiscal year 
from the preceding two fiscal years. 
"(B) The term 'renegotiation loss' means, for any fiscal 
year, the excess, if any, of costs (computed without the appli-
cation of this subsection and the third sentence of subsection 
(f)) paid or incurred in such fiscal year with respect to re-
ceipts or accruals subject to the provisions of this title over 
the amount of receipts or accruals subject to the provisions 
of this title which were received or accrued in such fiscal year, 
but only to the extent that such excess did not result from 
gross inefficiency of the contractor or subcontractor. 
"(3) AMOUNT OF CARRYFORWARDS.—A renegotiation loss for 
any fiscal year (hereinafter in this paragraph referred to as the 
'loss year') shall be a renegotiation loss carryforward to the first 
fiscal year succeeding the loss year. 
Such renegotiation loss, 
after being reduced (but not below zero) by the profits derived 
from contracts with the Departments and subcontracts in the 
first fiscal year succeeding the loss year, shall be a renegotiation 
loss carryforward to the second fiscal year succeeding the loss 
year. 
For the purposes of the preceding sentence, the profits 
derived from contracts with the Departments and subcontracts 
in the first fiscal year succeeding the loss year shall be computed 
as follows: 
" (A) If such first fiscal year ends on or after December 31, 
1956, such profits shall be computed by determining the 
amount of the renegotiation loss deduction for such first 
fiscal year without regard to the renegotiation loss for the 
loss year. 
"(B) If such first fiscal year ends before December 31, 
1956, such profits shall be computed without regard to any 
renegotiation loss for the loss year or any fiscal year preced-
ing the loss year." 
(b) The third sentence of section 103 (f) of such Act is amended by 
striking out "any fiscal year," and inserting in lieu thereof "any fiscal 
year ending before December 31, 1956,". 
SEC. 5. (a) Section 105 (e) (1) of such Act (50 U. S. C , App., 
sec. 1215 (e) (1)) is amended to read as follows: 
"(1) FURNISHING OF FINANCIAL STATEMENTS, ETC.—Every per-
son who holds contracts or subcontracts, to which the provisions 
of this title are applicable, shall, in such form and detail as the 
•Secretary' 
Effective date.i 
65 Stat. 11. 
65 Stat. 9. 
65 Stat. 15. 
788 
PUBLIC LAW 870-,AUG. 1, 1966 
[70 STAT. 
Board may by regulations prescribe, file with the Board, on or 
before the first day of the fifth calendar month following the close 
of his fiscal year, a financial statement setting forth such infor-
mation as the Board may by regulations prescribe as necessary to 
carry out this title. The preceding sentence shall not apply to 
any such person with respect to a fiscal year if the aggregate of the 
amounts received or accrued under such contracts and subcontracts 
during such fiscal year by him, and all persons under control of 
or controlling or under common control with him, is not more than 
the applicable amount prescribed in subsection (f) (1) or (2) 
of this section; but any person to whom this sentence applies may, 
if he so elects, file with the Board for such fiscal year a financial 
statement setting forth such information as the Board may by 
regulations prescribe as necessary to carry out this title. 
The 
Board may require any person who holds contracts or subcon-
tracts to which the provisions of this title are applicable (whether 
or not such person has filed a financial statement under this para-
graph) to furnish any information, records, or data which are 
determined by the Board to be necessary to carry out this title and 
which the Board specifically requests such person to furnish. 
Such information, records, or data may not be re(]^uired with 
respect to any fiscal year after the date on which all liabilities of 
such person for excessive profits received or accrued during such 
Penalty. 
fiscal 
year are discharged. 
Any person who willfully fails or 
refuses to furnish any statement, information, records, or data 
required of him under this subsection, or who knowingly fur-
nishes any statement, information, records, or data pursuant to 
this subsection containing information which is false or mislead-
ing in any material respect, shall, upon conviction thereof, be 
punished by a fine of not more than $10,000 or imprisonment for 
not more than one year, or both." 
(b) The first sentence of section 105 (c) of such Act (50 U. S. C , 
65 Stat. 15. 
App., sec. 1215 (c)) is amended to read as follows: "In the absence of 
fraud or malfeasance or willful misrepresentation of a material 
fact, no proceeding to determine the amount of excessive profits for any 
fiscal year shall be commenced more than one year after a financial 
statement under subsection (e) (1) of this section is filed with the 
Board with respect to such year, and, in the absence of fraud or mal-
feasance or willful misrepresentation of a material fact, if such pro-
ceeding is not commenced prior to the expiration of one year following 
the date upon which such statement is so filed, all liabilities of the 
contractor or subcontractor for excessive profits received or accrued 
during such fiscal year shall thereupon be discharged." 
(c) The second sentence of section 105 (c) of such Act (50 U. S. C , 
65 Stat. 15. 
App., sec. 1215 (c)) is amended by striking out "then upon the ex-
piration" and inserting in lieu thereof "then, in the absence of fraud 
or malfeasance or willful misrepresentation of a material fact, upon 
the expiration". 
(d) The amendments made by subsections (a), (b), and (c) shall 
apply only with respect to fiscal years (as defined in section 103 (h) 
so u s e app. ^jf g^^jj^ ^^jt) ending after June 30,1956. 
SEC. 6. (a) Section 105 (f) (1) of such Act (50 U. S. C , App., 
staf. Vni: ^^'' ^* sec. 1215 (f) (1)) is amended by inserting after "after June 30, 1953" 
wherever appearing therein the following: ", or $1,000,000, in the 
case of a fiscal year ending after June 30,1956". 
(b) Section 105 (f) (3) of such Act (50 U. S. C , App., sec. 1215 
sta? fife* ^^' ®
* (f) (^)) is amended as follows: 
(1) by inserting in the second sentence thereof, after "the 
$500,000 amount," the following: "the $1,000,000 amount,"; and 
so U S C app, 
1213. 
68 Stat. 1117. 
70 S T A T . ] 
PUBLIC LAW 870-AUG. 1, 1956 
789 
(2) by adding at the end thereof the following: "In the case 
of a fiscal year beginning on or before the termination date and 
ending after the termination date, the $1,000,000 amount and the 
$25,000 amount shall be reduced to an amount which bears the 
same ratio to $1,000,000 or $25,000, as the case may be, as the num-
ber of days in such fiscal year before the close of the termination 
date bears to 365." 
SEC. 7. (a) Section 105 (f) (3) of such Act (50 U. S. C, App., sec. 
1215 (f) (3)) is further amended by striking out, in the first sentence, 
6S stat. i6. 
"for the purposes of paragraphs (1) and (2)" and inserting in lieu 
thereof "for the purposes of paragraph (1)". 
(b) The amendment made by subsection (a) shall apply only with 
respect to fiscal years (as defined in section 103 (h) of such Act) 
ending on or after June 30,1956. 
SEC. 8. (a) Section 106 (a) (7) of such Act (50 U. S. C, App., 
sec, 1216 (a) (7)) is amended by striking out "other than paragraph g^ll \lf^' ^^' ^
® 
(8)" and inserting in lieu thereof "other than paragraph (1), (5), 
or (8)". 
(b) The amendment made by subsection (a) shall apply only with 
respect to subcontracts made after June 30,1956. 
SEC. 9. (a) Section 106 of such Act (50 U. S. C, App., sec. 1216) 
is amended by striking out paragraph (8) in subsection (a), and by 
adding at the end of such section the following new subsection: 
"(e) MANDATORY EXEMPTION FOR STANDARD COMMERCIAL ARTICLES 
AND SERVICES.— 
"(1) ARTICLES AND SERVICES.—The provisions of this title shall 
not apply to amounts received or accrued in a fiscal year under 
any contract or subcontract for an article or service which (with 
respect to such fiscal year) is— 
"(A) a standard commercial article; 
"(B) an article which is identical in every material respect 
w^ith a standard commercial article; or 
"(C) a service which is a standard commercial service or 
is reasonably comparable with a standard commercial service. 
"(2) CLASSES OF ARTICLES.—The provisions of this title shall 
not apply to amounts received or accrued in a fiscal year under any 
contract or subcontract for an article which (with respect to such 
fiscal year) is an article in a standard commercial class of articles. 
"(3) APPLICATIONS.—Paragraph (1) (B) or (C) and para-
graph (2) shall apply to amounts received or accrued in a fiscal 
year under any contract or subcontract for an article or service 
only if— 
"(A) the contractor or subcontractor at his election files, 
at such time and in such form and detail as the Board shall 
by regulations prescribe, an application containing such 
information and data as may be required by the Board under 
its regulations for the purpose of enabling it to make a deter-
mination under the applicable paragraph, and 
"(B) the Board determines that such article or service is, 
or fails to determine that such article or service is not, an 
article or service to which such paragraph applies, within the 
following periods after the date of filing such application: 
"(i) in the case of paragraph (1) (B) or (C), three 
months; 
"(ii) in the case of paragraph (2), six months; or 
"(iii) in either case, any longer period stipulated by 
inntual agreement. 
790 
PUBLIC LAW 870-AUG. 1, 1966 
[70 STAT. 
"(4) DEFINITIONS.—For the purposes of this subsection— 
"(A) the term 'article' includes any material, part, com-
ponent, assembly, machinery, equipment, or other personal 
property; 
"(B) the term 'standard commercial article' means, with 
respect to any fiscal year, an article— 
"(i) which either is customarily maintained in stock 
by the contractor or subcontractor or is offered for sale 
in accordance with a price schedule regularly maintained 
by the contractor or subcontractor, and 
"(ii) from the sales of which by the contractor or sub-
contractor at least 35 percent of the receipts or accruals 
in such fiscal year, or of the aggregate receipts or accruals 
in such fiscal year and the preceding fiscal year, are 
not (without regard to this subsection and subsection 
(c) of this section) subject to this title; 
"(C) an article is, with respect to any fiscal year, 'identical 
in every material respect with a standard commercial article' 
only if— 
" (i) such article is of the same kind and manufactured 
of the same or substitute materials (without necessarily 
being of identical specifications) as a standard commer-
cial article from sales of which the contractor or sub-
contractor has receipts or accruals in such fiscal year, 
" (ii) such article is sold at a price which is reasonably 
comparable with the price of such standard commercial 
article, and 
"(iii) at least 35 percent of the aggregate receipts or 
accruals in such fiscal year by the contractor or subcon-
tractor from sales of such article and sales of such stand-
ard commercial article are not (without regard to this 
subsection and subsection (c) of this section) subject to 
this title; 
"(D) the term 'service' means any processing or other oper-
ation performed by chemical, electrical, physical, or mechani-
cal methods directly on materials owned by another person; 
"(E) the term 'standard commercial service' means, with 
respect to any fiscal year, a service from the performance of 
which by the contractor or subcontractor at least 35 percent 
of the receipts or accruals in such fiscal year are not (without 
regard to this subsection) subject to this title; 
"(F) a service is, with respect to any fiscal year, 'reasonably 
comparable with a standard commercial service' only if— 
"(i) such service is of the same or a similar kind, per-
formed with the same or similar materials, and has the 
same or a similar result, without necessarily involving 
identical operations, as a standard commercial service 
from the performance of which the contractor or sub-
contractor has receipts or accruals in such fiscal year, 
and 
"(ii) at least 35 percent of the aggregate receipts or 
accruals in such fiscal year by the contractor or subcon-
tractor from the performance of such service and such 
standard commercial service are not (without regard to 
this subsection) subject to this title; and 
70 STAT.] 
PUBLIC LAW 870-AUG. 1, 1956 
791 
"(G) the term 'standard commercial class of articles' 
means, with respect to any fiscal year, two or more articles 
with respect to which the following conditions are met: 
"(i) at least one of such articles either is customarily 
maintained in stock by the contractor or subcontractor 
or is offered for sale in accordance with a price schedule 
regularly maintained by the contractor or subcontractor, 
"(ii) all of such articles are of the same kind and 
manufactured of the same or substitute materials (with-
out necessarily being of identical specifications), 
"(iii) all of such articles are sold at reasonably com-
parable prices, and 
"(iv) at least 35 percent of the aggregate receipts or 
accruals in the fiscal year by the contractor or subcon-
tractor from sales of all of such articles are not (without 
regard to this subsection and subsection (c) of this sec-
tion) subject to this title. 
"(5) WAIVER OF EXEMPTION.—Any contractor or subcontractor 
may waive the exemption provided in paragraphs (1) and (2) 
with respect to his receipts or accruals in any fiscal year from 
sales of any article or service by including a statement to such 
effect in the financial statement filed by him for such fiscal year 
pursuant to section 105 (e) (1), without necessarily waiving such 
^^'«' P* ^^^* 
exemption with respect to receipts or accruals in sucli fiscal year 
from sales of any other article or service. A waiver, if made, 
shall be unconditional, and no waiver may be made without the 
permission of the Board for any receipts or accruals with respect 
to which the contractor or subcontractor has previously filed an 
application under paragraph (3). 
"(6) NONAPPLICABILITY DURING NATIONAL EMERGENCIES.—Para-
graphs (1) and (2) shall not apply to amounts received or 
accrued during a national emergency proclaimed by the Presi-
dent, or declared by the Congress, after the date of the enactment 
of the Renegotiation Amendments Act of 1956." 
(b) Section 102 (d) of such Act is amended by striking out "section 
lo^Jf s c*'a 
106 (a) (8)" each place it appears and inserting in lieu thereof 1212. 
"section 106 (e)". 
(c) The amendments made by this section shall apply only with 
respect to fiscal years (as defined in section 103 (h) of such Act) end- 12^13. ^ ^ ^ ^^^' 
ing after June 30, 1956. 
SEC. 10. Section 107 (c) of such Act (50 U. S. C, App., sec. 1217 
(c)) is amended by striking out "subject to the Classification Act of 
^s stat. 20. 
1949 (but without regard to the civil-service laws and regulations)'' 
and inserting in lieu thereof "subject to the Classification Act of 1919 
and the civil-service laws and regulations". 
SEC. 11. (a) The next to the last sentence of section 108 of such Act 
(50 IT. S. C., App., sec. 1218) is amended by inserting "only" after 
65 stat. 21. 
"section 105". 
(b) The amendment made by subsection (a) shall be effective as of 
Effective date, 
the date of the enactment of the Renegotiation Act of 1951. 
s o u s e app. 
SEC. 12. Such Act is amended by inserting after section 108 a new 
so "u*l"c app. 
section as follows: 
^ ^ ^*' 
"SEC. 108A. VENUE OF APPEALS FROM TAX COURT DECISIONS IN 
RENEGOTIATION CASES. 
"A decision of the Tax Court of the United States under section 108 
of this Act may, to the extent subject to review, be reviewed by— 
"(1) The United States Court of Appeals for the circuit in 
which is located the office to which the contractor or subcontractor 
792 
PUBLIC LAW 871-AUG. 1, 1956 
[70 STAT. 
made his Federal income-tax return for the taxable year which 
corresponds to the fiscal year with respect to which such decision 
of the Tax Court was made, or if no such return was made for 
such taxable year, then by the United States Court of Appeals for 
the District of Columbia, or 
"(2) any United States Court of Appeals designated by the 
Attorney General and the contractor or subcontractor by stipula-
tion in writing." 
65 Stat. 22. 
§£<.. 13. Sectiou 113 of such Act (50 U. S. C. App., sec. 1223) is 
amended by striking out "during the period (or a part thereof) begin-
ning July 1,1950, and ending December 31,1953,". 
SEC. 14. Such Act is amended by inserting after section 113 a new 
section as follows: 
"SEC. 114. REPORTS TO CONGRESS. 
"The Board shall on or before January 1, 1957, and on or before 
January 1 of each year thereafter, submit to the Congress a complete 
report of its activities for the preceding year ending on June 30. Such 
report shall include— 
"(1) the number of persons in the employment of the Board 
during such year, and the places of their employment; 
"(2) the administrative expenses incurred by the Board during 
such year; 
"(3) statistical data relating to filings during such year by con-
tractors and subcontractors, and to the conduct and disposition 
during such year of proceedings with respect to such filings and 
filings made during previous years; 
" (4) an explanation of the principal changes made by the Board 
during such year in its regulations and operating procedures; 
"(5) the number of renegotiation cases disposed of by the Tax 
Court, each United States Court of Appeals, and the Supreme 
Court during such year, and the number of cases pending in each 
such court at the close of such year; and 
"(6) such other information as the Board deems appropriate." 
Approved August 1, 1956. 
Public Law 871 
CHAPTER 822 
August I. 1956 
AN ACT 
' 
. 
To amend title 18, entitled "Crimes and Criminal Procedure", of the United 
States Code, to provide a criminal sanction for the embezzlement or theft of 
the property of Indian tribal organizations. 
Indians. 
Theft of t r i b a l 
67 Stat. 588. 
Be it enacted hy the Senate and Houne of Representatives 
of the 
United States of America in Congress assembled^ That chapter 53 of 
property. 
title 18, United States Code, is hereby amended by inserting at the 
end of the chapter analysis preceding section 1151 of such title the 
following new item: 
"1163. Embezzlement and theft from Indian tribal organizations." 
SEC. 2. Title 18, United States Code, is hereby amended by inserting 
in chapter 53 thereof immediately after section 1162 a new section, 
to be designated as section 1163, as follows: 
"§ 1163. Embezzlement and theft from Indian tribal organizations 
"Whoever embezzles, steals, knowingly converts to his use or the 
use of another, willfully misapplies, or willfully permits to be mis-
applied, any of the moneys, funds, credits, ^oods, assets, or other prop-
erty belonging to any Indian tribal organization or intrusted to the 
custody or care of any officer, employee, or agent of an Indian tribal 
organization; or