An Act to facilitate the establishment of local self-government at the communities of Oak Ridge, Tenn., and Richland, Wash., and to provide for the disposal of federally owned properties of such communities
PL 84-221 (S.2630), enacted 08/04/1955

69 S T A T . ] 
PUBLIC LAW 221-AUG. 4, 1955 
471 
Public Law 221 
CHAPTER 543 
AN ACT 
Aupst 4. 1955 
To facilitate the establishment of local self-government at the communities of 
[S.2630] 
Oak Ridge, Tennessee, and Richland, Washington, and to provide for the 
disposal of federally owned properties of such communities. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
Atomic Energy 
be cited as the "Atomic Energy Community Act of 1955". 
i9*S5?"" y *
= " 
CHAPTER 1. DECLARATION, FINDINGS, AND PURPOSE 
Sec. 71. Authorization to transfer utilities. 
Sec. 72. Date of transfer. 
Sec. 73. Entity i-eceiving transfer. 
Sec. 74. Utilities transferable. 
Sec. 75. Charges for utilities transferred. 
Post, p. 472. 
Sec. 11. Declarations of policy. 
Sec. 12. Findings. 
Sec. 13. Purpose. 
CHAPTER 2. DEFINITIONS 
Post, p. 473. 
Sec. 21. Definitions. 
CHAPTER 3. LOTS, APPRAISALS, AND PRICES 
Post, p. 474. 
Sec. 31. Lots. 
Sec. 32. Appraisals. 
Sec. 33. Basis of appraisal. 
Sec. 34. Posting. 
Sec. 35. Sales prices. 
Sec. 36. Improvements. 
CHAPTER 4. CLASSIFICATION OF PROPERTY AND PRIORITIES 
Post, p. 475. 
Sec. 41. Classification of property. 
Sec. 42. Priorities. 
Sec. 43. Transferability. 
CHAPTER 5. SALES OF PROPERTY FOR PRIVATE U S E 
Poat, p. 476. 
Sec. 51. Application. 
Sec. 52. Disposal of property. 
Sec. 53. Sales. 
Sec. 54. Cash sales. 
Sec. 55. Form and provisions of instruments. 
Sec. 56. Occupancy by existing tenants. 
Sec. 57. Lots. 
CHAPTER 6. FINANCING 
Post, p. 478. 
Sec. 61. Contract purchase. 
Sec. 32. Commission 
financing. 
Sec. 63. Commission indenmity. 
Sec. 64. Community employment and population. 
Sec. 65. Amount of indemnity. 
Sec. 66. Conditions of indenmity. 
(^HAPTER 7. UTILITIES 
Post, p. 480. 
CHAPTER 8. MUNICIPALITIES 
Poet, p. 480. 
Sec. 81. Assistance in organization. 
Sec. 82. Authorization to transfer municipal installations. 
Sec. 83. Date of transfer. 
Sec. 84. Entity receiving transfer. 
Sec. 85. Installations transferable. 
Sec. 86. Charges for municipal installations transferred. 
CHAPTER 9. LOCAL ASSISTANCE 
Post, p. 481. 
Sec. 91. Basis of assistance to cities and other State and local entities. 
Sec. 92. Commission reducti(ms. 
Sec. 93. Area of service. 
Sec. 94. Commission contracts. 
4 7 2 
P U B L I C LAW 2 2 1 - A U G . 4, 1955 
[69 S T A T . 
Post, p. 482. 
CHAPTEK 10. TKANSFER OF FUNCTIONS, ANU REVIEW 
Sec. 101. Transfer of functions. 
Sec. 102. Review. 
Sec. 103. Joint Committee on Atomic Energy, 
Post, p. 483. 
CHAPTEK 11. GENERAL PROVISIONS 
Sec. 111. Powers of tlie Commission. 
Sec. 112. Qualification to purchase. 
Sec. 113. Contract forms. 
Sec. 114. Evidence. 
Sec. 115. Administrative review. 
Sec. 116. Repossession. 
- 
=.,o: i; 
' ' 
Sec. 117. Net proceeds. 
Sec. 118. Appropriations. 
Sec. 119. Sepal-ability of provisions. 
Sec. 201. Amendment to National Housing Act. 
Sec. 202. Amendment to Public Law 874. 
CHAPTER 1. DECLARATION, FINDINGS, AND PURPOSE 
SEC. 11. DECLARATION OF POLICY.—It is hereby declared to be the 
policy of the United States of America that Government ownership 
and management of the communities owned by the Atomic Energy 
Commission shall be terminated in an expeditious manner which is 
consistent with and will not impede the accomplishment of the pur-
42 ^*usc*^*20ii Po^^^ ^^^ programs established by the Atomic Energy Act of 1954. 
note. 
To that end, it is desired at each community to— 
a. facilitate the establishment of local self-government; 
b. provide for the orderly transfer to local entities of municipal 
functions, municipal installations, and utilities; and 
c. provide for the orderly sale to private purchasers of property 
within those communities with a minimum of dislocation. 
SEC. 12. FINDINGS.—The Congress of the United States hereby 
makes the following findings concerning the communities ownied by 
the Atomic Energy Commission: 
a. The continued morale of project-connected persons is essen-
tial to the common defense and security of the United States. 
b. In issuing rules and regulations required or permitted under 
this Act for the disposal of the communities and in disposing of 
the communities in accordance with the ])rovisions of this Act and 
in accordance with the rules and regulations required or permitted 
by this Act, the Commission is acting under authority delegated 
to it by the Congress. 
c. Funds of the United States may be provided for the disposal 
of the communities and for assistance in the operation of the com-
munities thereafter under conditions which will provide for the 
common defense and promote the general welfare. 
SEC. 13. PURPOSE.—It is the purpose of this Act to effectuate the 
policies set forth above by providing for— 
a. the maintenance of conditions which will not impede the 
recruitment and retention of personnel essential to the atomic 
energy program; 
b. the obligation of the United States to contribute to the sup-
port of municipal functions in a manner commensurate with— 
(1) the fiscal problems peculiar to the communities by rea-
son of their construction as national defense installations, 
and 
(2) the municipal and other burdens imposed on the gov-
ernmental or other entities at the communities by the United 
States in its operations at or near the communities; 
69 STAT.] 
PUBLIC LAW 221-AUG. 4, 1955 
473 
c. the opportunity for the residents of the communities to 
assume the obligations and privileges of local self-government; 
and 
d. the encouragement of the construction of new homes at the 
communities. 
CHAPTER 2. DEFINITIONS 
SEC. 21. 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— 
a. The term "Commission' means the Atomic Energy Commission. 
b. The term "community" means that area at— 
(1) Oak Ridge, Tennessee, designated on a map on file at the 
principal office of the Commission, entitled "Minimum Geo-
graphic Area, Oak Ridge, Tennessee", bearing the legend "Boun-
dary Line, Minimum Geographic Area, Oak Ridge, Tennessee" 
and marked "Approved, 21 April 1955, K. D. Nichols, General 
Manager"; or 
(2) Richland, Washington, designated on a map on file at 
the principal office of the Commission, entitled "Minimum Geo-
graphic Area, Richland, Washington", bearing the legend "Boun-
dary Line, Minimum Geographic Area, Richland, Washington" 
and marked "Approved, 21 April 1955, K. D. Nichols, General 
Manager." 
c. The term "house" includes the lot on which the house stands. 
d. The term "member of a family" means any person who, on the 
first offering date, resides in the same dwelling unit with one or more 
of the following relatives (including those having the same relation-
ship through marriage or legal adoption) : spouse, father, mother, 
grandfather, grandmother, brother, sister, son, daughter, uncle, aunt, 
nephew, niece, or first cousin. 
e. The term "mortgage" shall include deeds of trust and such other 
classes of lien as are given to secure advances on, or the unpaid purchase 
price of real estate under the laws of the State in which the real estate 
is located. 
f. The term "municipal installation" includes, without limitation, 
schools, hospitals, police and fire protection systems, sewerage and 
refuse disposal plants, water supply and distribution installations, 
streets and roads, libraries, parks, playgrounds and recreational means, 
municipal government buildings, other properties suitable for munici-
pal or comparable local public service purposes, and anj fixtures, 
equipment, or other property appropriate to the operation, main-
tenance or repair of the foregoing. 
g. The term "occupant" means a person who, on the date on which 
the property in question is first offered for sale, is entitled to residential 
occupancy of the Government-owned house in question, or of a family 
dwelling unit in such house, in accordance with a lease or license agree-
ment with the Commission or its property-management contractor. 
h. The term "offering date" means the date the property in question 
is offered for sale. 
i. The term "project area" means that area which on the effective 
date of this Act constitutes the Federal area at Oak Ridge, Tennessee, 
or Hanford, Washington. 
j . The term "project-connected person" means any person who, on 
the first offering date, is regularly employed at the-project area in 
one of the following capacities: 
(1) An officer or employee of the Commission or any of its 
contractors or subcontractors, or of the United States or any 
474 
PUBLIC LAW 221-AUG. 4, 1955 
[69 STAT. 
agency thereof (including members of the Armed Forces), or 
of a State or political subdivision or agency thereof; 
(2) An officer or employee employed at a school or hospital 
located in the project area; 
(3) A person engaged in or employed in the project area by 
any professional, commercial, or industrial enterprise occupying 
premises located in the project area; or 
(4) An officer or employee of any church or nonprofit organ-
ization occupying premises located in the project area. 
k. The term "resident" means any person who, on the date on which 
the property in question is first offered for sale is either— 
(1) an occupant in a residential unit designated for sale at the 
community, or 
(2) a project-connected person who is entitled, in accordance 
with a lease or similar agreement, to residential occupancy of 
privately owned rental housing in the community. 
1. The term "utility" means any electrical distribution system, any 
public transportation system, or any public communication system, 
and any fixtures, equipment, or other property appropriate to the 
operation, maintenance or repair of the foregoing. 
CHAPTEK 3. LOTS, APPEAISALS, AND PKICES 
SEC. 31. LOTS.—The Commission is authorized to plat each com-
munity immediately upon passage of this Act, or immediately upon 
the inclusion of the community within the provisions of this Act. 
The Commission may establish lot boundaries, and realine, divide, 
or enlarge existing tracts as it deems appropriate. 
SEC. 32. APPRAISALS.—The Commission shall proceed to secure 
appraisals of all property at the community which is to be sold pur-
suant to this Act. The appraisals shall be made by the Federal Hous-
ing Commissioner or his designee. The Commission shall reimburse 
the Federal Housing Commissioner for the cost of such appraisals. 
Appraisals made under this section shall be the appraisals on which 
the Federal Housing Commissioner may insure any mortgage or loan 
under the National Housing Act until such time as he finds that the 
appraisal values generally in the community no longer represent the 
fair market values of the properties. 
SEC. 33. BASIS OF APPRAISAL.—Except for lots sold pursuant to the 
provisions of section 57a., the appraised value shall be the current fair 
market value of the Government's interest in the property. 
SEC. 34. POSTING.—^Lists showing the appraised value of each parcel 
of property to be offered for sale to priority purchasers shall, prior 
to the offering of such property for sale, be made available for public 
inspection, at reasonable times, at the offices of the Commission at the 
community. 
SEC. 35. SALES PRICES.— 
a. In the sale to priority purchasers of properties on which are 
located Government-owned single or duplex houses, the sales price 
shall be the appraised value less a deduction of 15 per centum of 
the appraised value and less the deductions provided by section 
36. 
b. In all other cases the sales price to priority purchasers shall 
be the appraised value less the deductions provided by section 
36, except that sales made under sections 53 b. and c. shall be made 
at the prices set forth therein. 
SEC. 36. IMPROVEMENTS.— 
a. In addition to any other deduction which may be permitted 
from the sales price for residential property, there shall, upon 
69 S T A T . ] 
PUBLIC LAW 221-AUG. 4, 1955 
47i5 
application by the prospective purchaser, be deducted the amount 
by which the current fair market value of the Government's 
interest in the premises is enhanced as a result of improvements 
to the premises made by, or at the expense of, the prospective 
purchaser. 
b. A junior occupant of a duplex house, which was purchased 
by the senior occupant, shall, upon application therefor, be 
entitled to a credit, against the purchase price of any residential 
property purchased through the exercise of a priority right 
established under the provisions of section 42, for the amount 
by which the current fair market value of the Government's 
interest in the duplex house of which he was an occupant is 
enhanced as a result of improvements to the premises of such 
duplex house made by, or at the expense of, the junior occupant. 
c. The value of the improvements as specified in subsections 
36 a. and b. shall be determined in accordance with the provi-
sions of section 32. 
d. Persons purchasing property pursuant to the provisions of 
section 52, who do not desire to avail themselves of the indemnity 
provisions contained in sections 63 through 66, shall be entitled 
to an additional deduction of 10 per centum of the appraised 
value of the property in addition to any other deduction set forth 
in this section. 
CHAPTER 4. (CLASSIFICATION OF PROPERTY AND 
PRIORITIES 
SEC. 41. CLASSIFICATION or PROPERTY.— 
a. Immediately upon passage of this Act, the Commission 
shall classify all real property (including such improvements 
and such fixtures, equipment and other personal property inci-
dent thereto as it may deem appropriate) within each commu-
nity in accordance with such classifications as shall insure reason-
ably similar treatment for reasonably similar property. 
The 
Classification shall be made by such procedures, consistent with 
this chapter, as it shall determine. 
b. The commission may, but shall not be required to, classify 
any other real property at or in the vicinity of the community, 
whether within or outside of that community. 
SEC. 42. PRIORITIES.—The Commission shall establish, by rule or 
regulation, a detailed system of reasonable and fair priority rights 
applicable to the sale of Government-owned property to private pur-
chasers at each community. The priorities shall— 
a. be uniform in each class or subclass of property; 
b. give such preference to occupants and project-connected 
persons and to incoming employees of the Commission, of a 
contractor, or of a licensee as the Commission finds necessary 
or desirable, giving due consideration to the following factors: 
(1) The retention and recruitment of personnel essential 
to the atomic energy program; 
(2) The minimization of dislocations within the com-
munity ; 
(3) The expeditious accomplishment of the disposal pro-
gram ; and 
(4) The desirability of encouraging private firms to locate 
or remain in the community; 
c. give the occupant of a Government-owned single family 
house, and the senior occupant of a duplex house, at least ninety 
days in which to exercise the first right of priority; 
476 
PUBLIC LAW 221-AUG. 4, 1955 
[69 STAT. 
d. permit persons who have formerly been occupants, project-
connected persons, or inhabitants of the community, upon appli-
cation therefor, to have such priority as the Commission finds to 
be fair and equitable; and 
e. not impair any rights, including purchase rights, conferred 
by existing leases and covenants; 
SEC. 43. TRANSFERABILITY.—No priority shall be transferable, 
except— 
a. a husband and wife may exercise a priority in their joint 
names; 
b. a religious organization may exercise the priority which 
would otherwise belong to its priest, minister, or rabbi, regardless 
of whether that position happens to be filled at the time of the 
exercise of the priority; 
c. two or more priority holders having a common interest in a 
building or location may assign their interests to a single assignee; 
and 
d. the Commission may permit such other transfers as it finds 
to be fair and equitable. 
CHAPTER 5. SALES OF PROPERTY FOR PRIVATE USE 
SEC. 51. APPLICATION.—The provisions of this chapter shall be made 
applicable at each community as soon as the Commission makes a 
finding in writing that there is a reasonable possibility that the Gov-
ernment-owned real property at such community can be disposed of 
m accordance with the provisions of this chapter. 
SEC. 52. DISPOSAL OF PROPERTY.— 
a. The Commission shall offer for disposal all real property 
(including such improvements thereon and such fixtures, equip-
ment, and other personal property incident thereto as it may deem 
appropriate) within the community which is presently under 
lease or license agreement with the Commission or its community 
management contractor for residential, commercial or industrial, 
agricultural, church or other nonprofit use, or which, in the 
opinion of the Commission, is appropriate for such use, other 
than— 
(1) structures which in the opinion of the Commission 
should be removed from the community because of their 
unsatisfactory type of construction, condition, or location; or 
(2) property which in the opinion of the Commission 
should be transferred pursuant to chapter 7 or chapter 8. 
b. The Commission may, but shall not be required to, dispose 
of any other real property at the community, whether within or 
outside of that community. 
c. Such property shall be disposed of on such terms and condi-
tions, consistent with this chapter, as the Commission shall pre-
scribe in the national interest, and without regard to any prefer-
ences or priorities whatever except those provided for pursuant to 
this Act. 
Transfers by the Commission of such property shall 
not impair rights under existing leases and covenants, including 
any purchase rights therein conferred. 
SEC. 
53. SALES.— 
a. Where rights of priority have been granted pursuant to the 
provisions of this Act to Government-owned property, it shall 
be offered for sale to priority purchaser by giving notice to those 
eligible for such priority. Such notice shall (1) be in such man-
ner as the Commission shall prescribe, (2) identify the property 
to be sold, and (3) state the terms and conditions of sale and 
the date of the offer which, in the case of occupants of single 
69 S T A T . ] 
PUBLIC LAW 221-AUG. 4, 1955 
477 
family or duplex houses, shall expire not less than ninety days 
after the date of the offer. 
b. Any property (other than church property) classified for 
sale under section 41 and offered for sale under section 52, as to 
which no priority right has been conferred, or as to which all 
priority rights have expired, shall be advertised for sale to the 
highest bidder, subject to the right of the Commission to reject 
any or all bids, and also subject to the right of an occupant of a 
Government-owned single family or duplex house to buy such 
house by paying an amount equal to the highest bid. No bid shall 
be accepted which is below the appraised value or, in the case of 
Government-owned single and duplex houses is below 85 per 
centum of the appraised value. 
c. As to any property which has not been sold under subsection 
53 b. within one year after the first advertisement for sale under 
subsection 53 b. the Commission may make such disposition, on 
such terms and conditions, as it may deem appropriate, but the 
Commission shall give an occupant of a Government-owned single 
family or duplex house such further opportunity to purchase 
such house as shall be fair and equitable. 
d. Property for use of churches, in respect of which all priority 
rights have expired, may be disposed of by advertising and com-
petitive bid, or by negotiated sale or other transfer at such prices, 
terms, and conditions as the Commission shall determine to be 
fair and equitable. 
SEC. 54. CASH SALES.—All sales shall be for cash, and the buyer 
shall arrange for the necessary financing, except as provided in chap-
ter 6 of this Act. 
SEC. 55. FORM AND PROVISIONS OF INSTRUMENTS.—Deeds executed 
in connection with the disposal of property pursuant to the provisions 
of this Act— 
a. shall be as simple as the Commission shall find to be appro-
priate, and may contain such warranties or covenants of title and 
other provisions (including any indemnity) as the Commission 
may deem appropriate; 
b. with respect to any dormitories or apartment houses and any 
property used or to be used for construction of housing develop-
ments for rental purposes, may retain or acquire such rights to 
the Commission to designate the future occupants of part or all 
of such properties as it may deem appropriate to insure the avail-
ability of housing for employees of the Commission and its con-
tractors ; 
c. may require that the transferee, his heirs, successors^ and 
assigns shall compensate the Commission for any municipal 
services provided by the Commission at rates which will not be 
in excess of the average tax for such services in the immediate 
vicinity of the community; and any amounts due and unpaid 
for such compensation (together with interest and costs thereon) 
shall, as of the date on which such amounts become delinquent, 
be a lien in favor of the United States upon the premises sold by 
the Commission, though not valid as against any mortgagee, 
E
ledgee, purchaser, or judgment creditor until notice thereof 
as been filed in accordance with the laws of the State in which 
the property is situated or in the office of the clerk of the United 
States district court for the judicial district in which the property 
subject to the lien is situated, if such State has not by law provided 
for the filing of such notice; 
d. in transferring an^ property pursuant to sections 31 and 52, 
may impose such restrictions and requirements relating to the 
478 
PUBLIC LAW 221-AUG. 4, 1955 
[69 STAT, 
use of the premises and to public health and safety, as the Com-
mission may deem appropriate, which restrictions and require-
ments shall not be valid beyond one year after the incorporation 
of the city at the community; and 
e. may require that any payments in lieu of property taxes or 
assessments for local improvements made by the Commission with 
respect to the property shall be equitably prorated. 
SEC. 66. OCCUPANCY BY EXISTING TENANTS.—-Upon application by 
any occupant of a single or duplex house made within the period of 
the first priority when such house is first offered for sale under this 
Act, the Commission shall execute a lease to such occupant for a period 
not to exceed one year from the date on which such property is first 
offered for sale, or for such period as he remains a project-connected 
person, whichever is shorter. 
In selling any house with respect to 
which a lease executed under this section is in effect, the Commission 
may provide that the purchaser shall assume any or all obligations of 
the lessor, but the Commission shall guarantee the lessee's performance 
under the terms of the lease. 
SEC. 57. LOTS.— 
a. Notwithstanding any other provision of this Act, the Com-
mission is authorized, immediately upon passage of this Act, or 
immediately upon the inclusion of the community within the 
provisions of this Act, to offer for sale to the lessees single resi-
dential lots, which.were leased by competitive bid and which do 
not have a Government-owned building thereon, at a price equal 
to the initial valuation of the lot as stated in the lease. 
b. The Commission is authorized to offer for sale, as soon as 
possible, other lots, to individual owners, upon which single 
family or duplex houses may be erected, taking into consideration 
the zoning restrictions the new city is likely to enact with respect 
to those lots. 
CHAPTER 6. FINANCING 
SEC. 61. CONTRACT PURCHASE.—The Commission may, in the sale 
of any single-family or duplex house to a priority purchaser, enter 
into a contract to purchase which provides that the purchaser shall 
conclude his purchase within not more than three years after the 
date the contract is entered into. Such contracts to purchase shall 
provide for such periodic payments, including payments on account 
of principal, interest, or tax equivalents, as the Commission shall 
prescribe. 
SEC. 62. COMMISSION FINANCING.— 
a. In the event that the Commission finds that financing on 
reasonable terms is not available from other sources, the Com-
mission may, in order to facilitate the sale of residential prop-
erty under chapter 5 of this Act, accept, in partial payment of 
the purchase price of any house, apartment building, or dormi-
tory notes secured by first mortgages on such terms and condi-
tions as the Commission shall deem appropriate. In the case of 
houses and apartment buildings, the maturity and percentage of 
appraised value in connection with such notes and mortgages 
68 Stat. 605. 
shall uot excced those prescribed under section 223 (a) of the 
""""' ""'" 
National Housing Act, as amended, and the interest rate shall 
equal the interest rate plus the premium being charged (and any 
periodic service charge being authorized by the Federal Housing 
Commissioner for properties of similar character) under section 
223 (a) of the National Housing Act, as amended, at the effective 
date of such notes and mortgages. 
12 use 1715n. 
69 STAT.] 
PUBLIC LAW 221-AUG. 4, 1955 
479 
b. The Commission may sell any such notes and mortgages 
on terms set by the Commission. 
SEC. 63. COMMISSION INDEMNITY.—For a period of not more than 
fifteen years after the date of enactment of this Act, the Commission 
shall indemnify the purchaser (except a purchaser taking advantage 
of the provisions of subsection 36 (d)), and any successor in title, 
of any such single family or duplex house as set forth in this chapter. 
This indemnity shall be deemed to be incorporated in the deeds given 
on the sale of Government-owned houses. One person may not invoke 
the indemnity in respect of more than one house. 
SEC. 64. COMMUNITY EMPLOYMENT AND POPULATION.—The indem-
nity obligation specified in section 63 shall arise only if, for the six 
months just preceding the date on which it is invoked— 
(a) the total number of operating, maintenance, and admin-
istrative employees in the project area, as determinecl by the Com-
mission, has been less than fourteen thousand three hundred and 
thirty-seven in the case of Oak Ridge or seven thousand six 
hundred and twenty-two in the case of Richland; and 
(b) the population in the community has been less than twenty-
nine thousand two hundred and fifty in the case of Oak Ridge or 
twenty-five thousand two hundred in the case of Richland. 
For purposes of this section employment shall be determined on the 
basis of the pay period or periods ending nearest the 15th of each 
month. 
SEC. 65. AMOUNT or INDEMNITY.—The indemnity obligation of the 
Commission specified in section 63 shall be for such amount, less the 
sales price of the property, as would have remained unpaid under a 
loan entered into on the date of the execution of the original deed by 
the Commission— 
(1) which was in the amount of the purchase price from the 
Commission and provided for equal monthly payments of prin-
cipal and interest over a period of twenty years computed on the 
basis of the average interest and other charges recorded for prop-
erty of the same class at the community; and 
(2) on which all payments due to the date when notice was 
received by the Commission had been made. 
SEC. 66. CONDITIONS OF INDEMNITY.—The Commission shall make 
the indemnity payment specified by section 65 only if the Commission 
receives a notice from the then owner of the property that he is about 
to sell the property for a sum less than the unpaid balance of the real 
or hypothetical loan calculated pursuant to section 65. Such payment 
shall be made only if— 
a. notice is given to the Commission at a time when the condi-
tions of section 64 are satisfied; 
b. the sale is made within such time as the Commission may 
prescribe and in a manner which the Commission determined to 
afford adequate assurance of a fair price without excessive costs; 
and 
c. the Commission is given such prior notice of the sale and 
such opportunity to become a purchaser as it shall prescribe. 
In such circumstances the Commission is hereby authorized to purchase 
the property. Sales pursuant to this section and payment by the Com-
mission of such amount, if any, as is owing pursuant to sections 63 
through 66 shall end the obligation of the Commission under sections 
63 through 66 with respect to that property. 
480 
PUBLIC LAW 221-AUG. 4, 1955 
[69 STAT. 
CHAPTER 7. 
UTILITIES 
SEC. 71. AUTHORIZATION TO TRANSFER UTILITIES.—The Commis-
sion is authorized to transfer to one or more of the entities specified in 
this chapter such utilities as in the judgment of the Commission will 
be appropriate to enable the transferee to meet the needs of the resi-
dents of the community for ade(iuate utility services of the kind to be 
transferred. 
SEC. 72. DATE OF TRANSFER.—Transfers of utilities shall be made as 
soon as possible, but in any event, not later than five years after the date 
of enactment of this Act. 
SEC. 73. ENTITY RECEIVING TRANSFER.— 
a. Transfer may be made to one or more of the following, if 
the transferee has the legal authority to receive and operate the 
utility. 
(1) the city at the community; 
(2) the State in which the community is located; 
(8) any political subdivision or agency of that State; or 
(4) any person, firm, corporation, or other legal entity. 
b. In determining the transferee for any utility, the Commis-
sion may consider the following: 
(1) the pattern of ownership of the comparable utilities 
in the State in which the community is located; 
(2) the ability of the transferee to operate the utility; 
(3) the probable price of the sale of the utility, the ability 
of the transferee to pay that price, and any probable expense; 
(4) the desires of the eligible voters of the community as 
directly expressed in any vote in any officially recognized pro-
cedure or in any procedure established by the Commission; 
and 
(5) the benefit to the United States in reducing possible 
requirements for local assistance as authorized in chapters 
8 and 9 of this Act. 
SEC. 74. UTILITIES TRANSFERABLE.—All utilities are authorized to be 
transferred under this chapter, but shall not include property which 
the Commission determines to be needed for its own use. 
SEC. 75. CHARGES FOR UTILITIES TRANSFERRED.—The Commission 
may give the utility to the city incorporated at the community; and 
must charge in selling the utility to any other transferee. 
The charges 
and terms for the transfer of any utility may be established by adver-
tising and competitive bid, or by negotiated sale or other transfer at 
such prices, terms, and conditions as the Commission shall determine 
to be fair and equitable. 
CHAPTER 8. MUNICIPALITIES 
SEC. 81. ASSISTANCE IN ORGANIZATION.—The Commission is author-
ized, for a period not to extend beyond five years after the date of 
enactment of this Act to cooperate with and assist the residents of 
the community in preparation for and establishment of local self-
government and in the transfer of municipal installations and respon-
sibilities to local entities. 
Such assistance may include payment of 
any amounts reasonably necessary to meet expenses incident to the 
establishment and organization oi a city government and other local 
entities at the community, until such time as the municipal installa-
tions are transferred in accordance with the provisions of this chapter. 
SEC. 82. AUTHORIZATION To TRANSFER MUNICIPAL INSTALLATIONS.— 
The Commission is authorized to transfer to one or more of the entities 
specified in this chapter such municipal installations as in the judg-
69 STAT.] 
PUBLIC LAW 221-AUG. 4, 1955 
481 
inent of the Commission, will be appropriate to enable the transferees 
to meet the needs of the residents of the community for adequate 
school, hospital, and other municipal services. 
SEC. 83. DATE OF TR.\NsrER.—Transfers of municipal installations 
may be made at any time, not later than five years after the date of 
enactment of this Act. 
SEC. 84. ENTITY RECEIVING TRANSFER.— 
a. Transfers may be made to one or more of the following, if 
the entity has the legal authority to receive the installation: 
(1) the city at the community; (2) the State in which the com-
munity is located; (3) any political subdivision or agency of that 
State; or (4) a private nonprofit organization in the case of the 
hospital installation or cemetery at the community. 
b. In determining the entity to which school, hospital, and 
other municipal installations, respectively, shall be transferred, 
the Commission shall be governed, in order, by 
(1) the results of a vote in which the eligible voters in the 
community expressed themselves directly on the transfer in 
the vote on the incorporation of the city; 
(2) the results of a vote in which the eligible voters have 
directly expressed themselves on the proposed transfer in a 
referendum or other officially recognized procedure; 
(3) there being only one entity which is legally author-
ized to receive the municipal installation; or 
(4) in the absence of the other alternatives, the Commis-
sion has conducted a vote of the eligible voters of the com-
munity on the proposed transfer under such procedures as 
it may establish. 
SEC. 85. INSTALLATIONS TRANSFERABLE.—All municipal installations 
are authorized to be transferred under this chapter, but shall not 
include property which the Commission determines to be needed for 
its own use. 
SEC. 86. CHARGES FOR MUNICIPAL INSTALLATIONS TRANSFERRED.— 
The transfer of any municipal installation authorized to be made 
under the provisions of this chapter may be made without charge to 
the entity receiving the installation. 
CHAPTER 9. LOCAL ASSISTANCE 
SEC. 91. BASIS OF ASSISTANCE TO CITIES AND OTHER STATE AND 
LOCAL ENTITIES.— 
a. From the date of transfer of any municipal installations to 
a governmental or other entity at or for the community, the 
Commission shall, for a period of ten years, make annual assist-
ance payments of just and reasonable sums to the State, county, 
or local entity having jurisdiction to collect property taxes or to 
the entity receiving the installation transferred hereunder. 
In 
determining the amount and recipient of such payments, the 
Commission shall consider— 
(1) the approximate real property taxes and assessments 
for local improvements which would be paid to the govern-
mental entity upon property within the community if such 
property were not exempt from taxation by reason of Federal 
ownership; 
(2) the maintaining of municipal services at a level which 
will not impede the recruitment or retention of personnel 
essential to the atomic energy program; 
5440Z O - 55 
482 
PUBLIC LAW 221-AUG. 4, 1965 
[69 S T A T , 
(H) the tiscal problems peculiar to the governmental entity 
by reason of the construction at the community as a single 
purpose national defense installation under emergency con-
, 
ditions; and 
^ 
(4) the municipal services and other burdens imposed on 
the governmental or other entities at the community by the 
United States in its operations in the project area. 
b. Special interim payments may be made under the provisions 
of this section to any governmental entity which— 
(1) has a special burden due to the requirements under law 
imposed upon it in assisting in effectuating the purposes of 
this Act for which it will not otherwise receive adequate com-
pensation or revenues; or 
(2) will suffer a tax loss or lapse in place of which it will 
j 
not receive any other adequate revenues until the new gov-
ernmental entities contemplated by this chapter are receiving 
their normal taxes and performing their normal functions, 
c. Payments made under this section shall be payments made 
for special burdens imposed on the local governmental entities in 
accordance with the second sentence of section 168 of the Atomic 
68 use 2xi 
Energy Act of 1954. Payments may be made under this section 
notwithstanding the provisions of the xVct of September 30, 1950 
20 ^s*c^23°* et 
(Public Law 874, Eighty-first Congress), as amended, 
•e* 
d. With respect to any entity not less than six months prior to 
the expiration of the ten-year period referred to in subsection a, 
the Commission shall present to the Joint Committee on Atomic 
Energy its recommendation as to the need for any further con-
tribution payments to such entity. If it recommends further con-
tribution payments, it shall propose a definite schedule of such 
contribution payments which will provide for an orderly and rea-
sonably prompt withdrawal of the Atomic Energy Commission 
from participation in and contribution toward local government. 
SEC. 92. COMMISSION REDUCTIONS.—Any payment which becomes 
due under section 91 prior to the transfer of all municipal installations 
at the community may be reduced by such amount as the Commission 
determines to be equitable based on the municipal services then being 
performed by the Commission, and the municipal services then being 
performed by such governmental entity. 
SEC. 93. AREA OF SERVICE,—The payments made pursuant to section 
91 to transferees of municipal installations are in anticipation that the 
respective recipients of those payments furnish, or have furnished, for 
the community, the school, hospital, or other municipal services in 
respect of which the payments are made. 
Any such payment may be 
withheld, in whole or in part, if the Commission finds that the recipient 
is not furnishing such services for any part of the area so designated. 
SEC. 94. COMMISSION CONTRACTS.—The Commission is authorized, 
31 use' 66s! 
without regard to section 3679 of the Revised Statutes, to enter into a 
contract with any governmental or other entity to which payments 
are required to be made pursuant to section 91, obligating the Com-
mission to make to such entity the payments as directed to oe made by 
section 91. 
CHAPTER 10. TRANSFER OF FUNCTIONS, AND REVIEW 
SEC. 101. TRANSFER OF FUNCTIONS.—^The President is authorized to 
delegate the duties and responsibilities placed on the Commission by 
this Act to such other agencies of the United States Government as are 
reasonably qualified to perform those duties and responsibilities. The 
President may delegate any or all of the duties and responsibilities of 
69 S T A T . ] 
PUBLIC LAW 221-AUG. 4, 1955 
48a 
the Commission in the operation of the communities to such other 
agencies of the United States Government that are reasonably qualified 
to perform those duties and responsibilities. The Commission shall 
retain no financing duties and responsibilities. 
SEC. 102. REVIEW.—The Commission shall present to the Joint Com-
mittee on Atomic Energy of the Congress a full review of its activities 
under this Act every three years in addition to any other presentation 
which may be required or requested by the Joint Committee. 
SEC. 103. JOINT COMMITTEE ON ATOMIC ENERGY.—The provisions of 
chapter 17 of the Atomic Energy Act of 1954 shall be applicable to all 
matters under this Act. 
CHAPTER 1
1
. 
GENERAL 
PROVISIONS 
SEC, 111. POWERS OF THE COMMISSION.—The Commission shall have 
all powers conferred by the Atomic Energy Act of 1954, including the 
power to make, promulgate, issue, rescmd, and amend such rules, 
regulations, and delegations as may be appropriate to carry out the 
provisions of this Act and shall be subject to the limitations contained 
in chapter 14 of that Act. Nothing contained in this Act shall impair 
the powers vested in the Commission by the Atomic Energy Act of 
1954, as amended, or any other law. 
SEC. 112. QUALIFICATION To PURCHASE.—No officer or employee of 
the Commission or of any other Federal agency (including officers and 
members of the Armed Forces) shall be disqualified from purchasing 
any property or exercising any right or privilege under this Act, but 
no such officer or employee shall make any determination as to his own 
eligibility or priority, or as to valuation, price, or terms of sale and 
financing of property sold to him. 
SEC. 113. CONTRACT FORMS.—Contracts entered into pursuant to this 
Act and other instruments executed pursuant to this Act shall be 
in such form and contain such provisions, consistent with this 
Act, as the Commission shall prescribe; and shall be as simple and 
concise as possible. Any mortgage shall contain terms which will place 
the United States in the same position, with respect to any mortgages 
it may hold under the provisions of chapter 6, as that occupied by a 
private lender under the applicable State laws for the relief of mort-
gagors with respect to deficiency judgments. 
SEC. 114. EVIDENCE.—A deed, lease, contract, or other instrument 
executed by or on behalf of the Commission purporting to transfer 
title or any other interest in property disposed of pursuant to this Act 
shall be conclusive evidence of compliance with the provisions of this 
Act and rules and regulations promulgated thereunder, insofar as con-
cerns title or other interest of any bona fide grantee or transferee for 
value without notice of lack of such compliance, and his successors in 
title. 
SEC. 115. ADMINISTRATIVE REVIEW.—Determinations authorized by 
this Act to be made by the Commission as to classification, priorities, 
prices, and terms and conditions of sale of property disposed under this 
Act shall be subject to review only in accordance with such provisions 
for administrative review or reconsideration as the Commission may 
prescribe. 
SEC. 116. REPOSSESSION.—The Commission is authorized to repossess 
any property sold by it in accordance with the terms of any contract to 
purchase, mortgage or other instrument, and to sell or make any other 
disposition of any property so repossessed and any property pur-
chased by it pursuant to section 66. 
SEC. 117. NET PROCEEDS.—The net jjroceeds derived by the Commis-
sion from the disposal of property pursuant to this Act, after defray-
ed Stat. 919. 
42 u s e 2011 
note. 
68 Stat. 948. 
42 u s e 2201-
2209. 
484 
PUBLIC LAW 221~AUG. 4, 1955 
[69 STAT. 
ing expenses incident to appraisal, sale or other transfer and any 
financing under section 62, shall be covered into the Treasury. 
Annually, upon advice of the Commission, there shall be transferred 
to miscellaneous receipts of the Treasury such portion of such net pro-
ceeds as may no longer be needed to meet the contingent obligations 
provided for in subsection 118 c. 
SEC. 118. APPROPRIATIONS.— 
a. 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. 
b. There are authorized to' be appropriated the sum of $518,000 
at Oak Ridge and the sum of $2,165,000 at Richland for construc-
tion, modification, or expansion of municipal installations author-
ized to be transferred pursuant to chapter 8 of this Act. 
c. As much as may be necessary of net proceeds from section 117 
are hereby appropriated and made available for use by the Com-
mission (without fiscal year limitations) to pay any costs, losses, 
expenses, or obligations incurred by the Commission in connection 
with obligations entered into pursuant to section 37 or section 63, 
with repossession or repurchase, rehabilitation, and further dis-
position pursuant to sections 63 through 66 and section 116, and 
with the defense and payment of any claims for breaches of war-
ranties and covenants of title of any property disposed of pur-
suant to this Act. 
SEO. 119. SEPARABILITY OF PROVISIONS.—If any provisions of this 
Act, or the application of such provision to any person or circum-
stances, is held invalid, the remainder of this Act or the application of 
such provision to persons or circumstances other than those as to which 
it is held invalid, shall not be affected thereby. 
AMENDMENT TO NATIONAL HOUSING ACT 
12 u s e 171Sn. 
«8 Stat. 60 5.^ 
g^c. 201. Sectiou 223 (a) of the National Housing Act, as amended, 
is further amended as follows: 
(a) After paragraph (3) thereof there is added the following 
new paragraph: 
" (4) executed in connection with the sale by the Government, 
or any agency or official thereof, of any housing (including any 
property acquired, held, or constructed in connection therewith 
or to serve the inhabitants thereof) pursuant to the Atomic Energy 
Community Act of 1955, as amended: Provided^ That such insur-
ance shall be issued without regard to any preferences or priorities 
except those prescribed by the Atomic Energy Community Act 
of 1955, as amended; or". 
ih) The paragraph numbered (4) is renumbered (5). 
(c) The paragraph numbered (5) is renumbered (6) and is revised 
to read as follows: 
"(6) executed in connection with the first resale, within two 
years from the date of its acquisition from the Government, of 
any portion of a project or property of the character described 
in paragraphs (1), (2), (3), and (4) aboye;or". 
(d) The paragraph numbered (6) is renumbered (7) and the last 
proviso therein is amended by striking "(4) or (5)" and inserting 
"(4), (5), or (6)" and by striking "(3), or (5)" and inserting "(3), 
(4),or (6)". 
69 
S T A T . ] 
PUBLIC LAW 223~AUG. 4, 1955 
485 
AMEXDMENT TO PUBLIC LAW NUMBERED 8 74, EIGHTY-FIRST CONGRESS 
SEC. 202. Section 8 (d) of the Act of September 30, 1950 (Public 
Law Numbered 874, Eighty-first Congress), as amended, is further 
amended by adding, after the words "Indian Affairs", the following: 
", or the availability of appropriations for the making of payments 
directed to be made by section 91 of the Atomic Energy Community 
Act of 1955, as amended." 
Approved August 4, 1955. 
67 Stat. 536. 
20 use 243 (d). 
Public Law 222 
CHAPTER 544 
AN ACT 
To exempt meetings of associations of professional hairdressers or cosmetologists 
from certain provisions of the Acts of June 7, 1938 (52 Stat. 611), and July 1, 
1902 (32 Stat. 622), as amended. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That the provisions 
of the Act of June 7, 1938 (52 Stat. 611; title 2, ch. 13, D. C. Code, 
1951 edition), and of paragraph 10 of section 7 of the Act approved 
July 1,1902 (32 Stat. 622), as amended (sec. 47-2310, D. C. Code, 1951 
edition), shall not be applicable to activities conducted in connection 
with anj bona fide regularly scheduled national annual convention of 
any national association of professional hairdressers or cosmetologists, 
from which the general public is excluded. 
Approved August 4, 1955. 
August 4, 1955 
igust 4, 1 
{S. 6673 
D. C cosmetolo-
gists. 
Public Law 223 
CHAPTER 545 
AN ACT 
To repeal the prohibition against the declaration of stock dividends by public 
utilities operating in the District of Columbia. 
August 4, 1955 
[S.2177] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That paragraph 75 
of section 8 of the Act entitled "An Act making appropriations to 
provide for the expenses of the government of the District of Columbia 
for the fiscal year ending June thirtieth, nineteen hundred and four-
teen, and for other purposes", approved March 4, 1913 (D. C. Code, 
sec. 43-804), which provides that no public utility shall declare any 
stock, bond, or scrip dividend or divide the proceeds of the sale of 
any stock, bond, or scrip among its stockholders, is hereby repealed. 
SEC. 2. Paragraph 73 of section 8 of the Act entitled "An Act making 
appropriations to provide for the expenses of the government of the 
District of Columbia for the fiscal year ending June thirtieth, nineteen 
hundred and fourteen, and for other purposes" approved March 4, 
1913 (sec. 43-802, D. C. Code; 37 Stat. 990), be amended to read as 
follows: "That no public utility shall hereafter issue any stocks, 
stock certificates, bonds, mortgages, or any other evidences of indebted-
ness payable in more than one year from date, or pay any stock, 
bond or scrip dividend, until it shall have first obtained the certificate 
of the commission showing authority for such issue from the 
commission." 
Approved August 4, 1955. 
D. C , stock divl-
dends.