An Act to suspend the investment credit and the allowance of accelerated depreciation in the case of certain real property
PL 89-800 (H.R.17607), enacted 11/08/1966

1508 
PUBLIC LAW 89-800-NOV. 8, 1966 
[80 STAT. 
Public Law 89-800 
November 8, 1966 
AN A C T 
[H. R. 17607] 
rp^j suspend the investment credit and the allowance of accelerated depreciation 
in the case of certain real property. 
Taxes. 
Depreciable 
76 Stat. 962. 
26 u s e 38. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That (a) section 48 
prop^rtyVrnCest- 
of tlie Internal Revenue Code of 1964 (relating to definition; special 
ment credit sus- 
rulcs) is amended by redesignating subsection (h) as subsection (k), 
^^6^ st^t. 967. 
^nd by inserting before such subsection the following new subsections: 
26 use 48. 
"(h) SUSPENSION OF INVESTMENT CREDIT.—For purposes of this 
subpart— 
"(1) GENERAL RULE.—Section SB property which is suspension 
period property shall not be treated as new or used section 38 
property. 
"(2) SUSPENSION PERIOD PROPERTY DEFINED.—Except as other-
Post. p. 1512. 
^ig^ provided in this subsection and subsection (i), the term 
'suspension period property' means section 38 property— 
"(A) the j)hysical construction, reconstruction, or erection 
of which begins either during the suspension period or pur-
suant to an order placed during such j)eriod, or 
"(B) which is acquired by the taxpayer either during the 
suspension period or pursuant to an order placed during such 
period. 
"(3) BINDING CONTRACTS.—To the extent that any property is 
constructed, reconstructed, erected, or acquired pursuant to a 
contract which was, on October 9,1966, and at all times thereafter, 
binding on the taxpayer, such property shall not be deemed to 
be suspension period property. 
"(4) EQUIPPED BUILDING RULE.—If— 
"(A) pursuant to a plan of the taxpayer in existence on 
October 9, 1966 (which plan was not substantially modified 
at any time after such date and before the taxpayer placed 
the equipped building in service), the taxpayer has con-
structed, reconstructed, erected, or acquired .a building and 
the machinery and equipment necessary to the planned use 
of the building by the taxpayer, and 
"(B) more than 50 percent of the aggregate adjusted basis 
of all the property of a character subject to the allowance for 
depreciation making up such building as so equipped is 
attributable to either property the construction, reconstruc-
tion, or erection of which was begun by the taxpayer before 
October 10,1966, or property the acquisition of which by the 
taxpayer occurred before such date, 
then all section 38 property comprising such building as so 
equipped (and any incidental section 38 property adjacent to such 
building which is necessary to the planned use of the building) 
shall be treated as section 38 property which is not suspension 
period property. For purposes of subparagraph (B) of the pre-
ceding sentence, the rules of paragraphs (3) and (6) shall be 
applied. For purposes of this paragraph, a special purpose struc-
ture shall be treated as a building. 
"(5) PLANT FACILITY RULE.—-
"(A) GENERAL RULE.—^If— 
" (i) pursuant to a plan of the taxpayer in existence on 
October 9,1966 (which plan was not substantially modi-
fied at any time after such date and before the taxpayer 
80 STAT.] 
PUBLIC LAW 89-800-NOV. 8, 1966 
1509 
placed the plant facility in service), the taxpayer has con-
structed, reconstructed, or erected a plant facility, and 
either 
"(ii) the construction, reconstruction, or erection of 
such plant facility was commenced by the taxpayer be-
fore October 10,1966, or 
"(iii) more than 50 percent of the aggregate adjusted 
basis of all the property of a character subject to the 
allowance for depreciation making up such plant facility 
is attributable to either property the construction, recon-
struction, or erection of which was begun by the taxpayer 
before October 10, 1966, or property the acquisition of 
which by the taxpayer occurred before such date, 
then all section 38 property comprising such plant facility 
shall be treated as section 38 property which is not suspension 
period property. 
For purposes of clause (iii) of the pre-
ceding sentence, the rules of paragraphs (3) and (6) shall be 
applied. 
"(B) PLANT FACILITY DEFINED.—For purposes of this 
paragraph, the term 'plant facility' means a facility which 
does not include any building (or of which buildings con-
stitute an insignificant portion) and which is— 
" (i) a self-contained, single operating unit or process-
ing operation, 
(ii) located on a single site, and 
"(iii) identified, on Octobier 9,1966, in the purchasing 
and internal financial plans of the taxpayer as a single 
unitary project. 
"(C) SPECIAL RULE.—For purposes of this subsection, if— 
" (i) a certificate of convenience and necessity has been 
issued before October 10, 1966, by a Federal regulatory 
agency with respect to two or more plant facilities which 
are included under a single plan of the taxpayer to con-
struct, reconstruct, or erect such plant facilities, and 
"(ii) more than 50 percent of the aggregate adjusted 
basis of all the proj)erty of a character subject to the 
allowance for depreciation ma&ing up such plant facili-
ties is attributable to either property the construction, 
reconstruction, or erection of which was begun by the 
taxpayer before October 10, 1966, or property the acqui-
sition of which by the taxpayer occurred before such 
date, 
such plant facilities shall be treated as a single plant facility. 
" (D) 
COMMENCEMENT OF CONSTRUCTION.—For purposes of 
subparagraph (A)(ii), the construction, reconstruction, or 
erection of a plant facility shall not be considered to have 
commenced until construction, reconstruction, or erection has 
commenced at the site of such plant facility. 
The preceding 
sentence shall not apply if the site of such plant facility is 
not located on land. 
"(6) MACHINERY OR EQUIPMENT RULE.—Any piece of machin-
ery or equipment— 
"(A) more than 50 percent of the parts and components 
of which (determined on the basis of cost) were held by the 
taxpayer on October 9, 1966, or are acquired by the taxpayer 
pursuant to a binding contract which was in effect on such 
date, for inclusion or use in such piece of machinery or equip-
ment, and 
1510 
PUBLIC LAW 89-800-NOV. 8, 1966 
[80 STAT. 
"(B) the cost of the parts and components of which is not 
an insignificant portion of the total cost, 
shall be treated as property which is not suspension period 
property. 
"(7) CERTAIN LEASE-BACK TRANSACTIONS, ETC.—^Where a person 
who is a party to a binding contract described in paragraph (3) 
transfers rights in such contract (or in the property to which such 
contract relates) to another person but a party to such contract 
retains a right to use the property under a lease with such other 
person, then to the extent of the transferred rights such other 
person shall, for purposes of paragraph (3), succeed to the posi-
tion of the transferor with respect to such binding contract and 
such property. 
The preceding sentence shall apply, in any case 
in which the lessor does not make an election under subsection 
Post, p. 1513. 
^(j)^ only if a party to such contract retains a right to use the 
property under a long-term lease. 
"(8) CERTAIN LEASE XIND CONTRACT OBLIGATIONS.—^Where, pur-
suant to a binding lease or contract to lease in effect on October 9, 
1966, a lessor or lessee is obligated to construct, reconstruct, erect, 
or acquire property specified in such lease or contract, any prop-
erty so constructed, reconstructed, erected, or acquired by the 
lessor or lessee which is section 38 property shall be treated as 
property which is not suspension period property. In the case 
of any project which includes property other than the property 
to be leased to such lessee, the preceding sentence shall be applied, 
in the case of the lessor, to such other property only if the binding 
leases and contracts with all lessees m effect on October 9, 1966, 
cover real property constituting 25 percent or more of the project 
(determined on the basis of rental value). For purposes of the 
preceding sentences of this paragraph, in the case of any project 
where one or more vendor-vendee relationships exist, such vendors 
and vendees shall be treated as lessors and lessees. Where, pur-
suant to a binding contract in effect on October 9, 1966, (i) the 
taxpayer is required to construct, reconstruct, erect, or acquire 
property specified in the contract, to be used to produce one or 
more products, and (ii) the other party is required to take sub-
stantially all of the products to be produced over a substantial 
portion of the expected useful life of the property, then such 
property shall be treated as property which is not suspension 
period property. Clause (ii) of the preceding sentence shall not 
apply if a political subdivision of a State is the other party to 
the contract and is required by the contract to make substantial 
expenditures which benefit the taxpayer. 
" (9) 
CERTAIN TRANSFERS TO BE DISREGARDED.— 
"(A) If property or rights under a contract are trans-
ferred in— 
" (i) a transfer b j reason of death, or 
"(ii) a transaction as a result of which the basis of 
the property in the hands of the transferee is determined 
by reference to its basis in the hands of the transferor 
by reason of the application of section 332, 351, 361, 371 
70%tI'T62]''-' 
(a), 374(a), 721, or 
fe, 
and such property (or the property acquired under such con-
tract) would not be treated as suspension period property in 
the hands of the decedent or the transferor, such property 
shall not be treated as suspension period property in the hands 
of the transferee. 
68A Stat. 104. 
80 STAT.] 
PUBLIC LAW 89-800-NOV. 8, 1966 
1511 
"(B) 
If— 
"(i) property or rights under a contract are acquired 
in a transaction to which section 334(b) (2) applies, 
"(ii) the stock of the distributing corporation was 
acquired before October 10, 1966, or pursuant to a bind-
ing contract in effect October 9,1966, and 
"(iii) such property (or the property acquired under 
such contract) would not be treated as suspension period 
property in the hands of the distributing corporation, 
such property shall not be treated as suspension period 
property in the hands of the distributee. 
"(10) 
PROPERTY ACQUIRED FROM AFFILIATED CORPORATION.—For 
purposes of this subsection, in the case of property acquired by 
a corporation which is a member of an affiliated group from 
another member of the same group— 
"(A) such corporation shall be treated as having acquired 
such property on the date on which it was acquired by such 
other member, 
"(B) such corporation shall be treated as having entered 
into a binding contract for the construction, reconstruction, 
erection, or acquisition of such property on the date on which 
such other member entered into a contract for the construc-
tion, reconstruction, erection, or acquisition of such property, 
and 
"(C) such corporation shall be treated as having com-
menced the construction, reconstruction, or erection of such 
property on the date on which such other member commenced 
such construction, reconstruction, or erection. 
For purposes of the preceding sentence, the term 'affiliated group' 
has the meaning assigned to it by section 1504(a), except that all 
corporations shall be treated as includible corporations (without 
any exclusion under section 1504(b)). 
"(11) 
CERTAIN TANGIBLE PROPERTY CONSTRUCTED DURING SUS-
PENSION PERIOD AND LEASED NEW THEREAFTER.—Tangible personal 
property constructed or reconstructed by a person shall not be sus-
pension period property if— 
"(A) such person leases such property after the close of 
the suspension period and the original use of such property 
commences after the close of such period, 
"(B) such construction or reconstruction, and such lease 
transaction, was not pursuant to an order placed during the 
suspension period, and 
"(C) an election is made under subsection (d) with respect 
to such property which satisfies the requirements of such 
subsection. 
"(12) 
WATER AND AIR POLLUTION CONTROL FACILITIES.— 
"(A) I N GENERAL.—Any water pollution control facility or 
air pollution control facility shall be treated as property 
which is not suspension period property. 
"(B) WATER POLLUTION CONTROL FACILITY.—For purposes 
of subparagraph (A), the term 'water pollution control fa-
cility' means any section 38 property which— 
"(i) is used primarily to control water pollution by 
removing, altering, or disposing of wastes, including the 
necessary intercepting sewers, outfall sewers, pumping, 
1512 
PUBLIC LAW 89-800-NOV. 8, 1966 
[80 STAT. 
power, and other equipment, and their appurtenances; 
and 
"(ii) is certified by the State water pollution control 
agency (as defined in section 13(a) of the Federal Water 
y/star 903°^' 
Pollution Control Act) as being in conformity with the 
33 use 466j. 
State program or requirements for control of water pol-
lution and is certified by the Secretary of Interior as 
being in compliance with the applicable regulations of 
Federal agencies and the general policies of the United 
States for cooperation with the States in the prevention 
and abatement of water pollution under the Federal 
Water Pollution Control Act. 
"(C) AIR POLLUTION CONTROL FACILITY.—For purposes of 
subparagraph (A), the term 'air pollution control facility' 
means any section 38 property which— 
"(i) is used primarily to control atmospheric pollu-
tion or contamination by removing, altering, or dispos-
ing of atmospheric pollutants or contaminants; and 
"(ii) is certified by the State air pollution control 
agency (as defined in section 302(b) of the Clean Air 
7/stat^99^2°°' 
Act) as being in conformity with the State program or 
42 use is'sTh. 
requirements for control of air pollution and is certified 
by the Secretary of Health, Education, and Welfare as 
being in compliance with the applicable regulations of 
Federal agencies and the general policies of the United 
States for cooperation with the States in the prevention 
and abatement of air pollution under the Clean Air Act. 
"(D) STANDARDS FOR FACILITY.—Subparagraph (A) shall 
apply in the case of any facility only if the taxpayer con-
structs, reconstructs, erects, or acquires such facility in fur-
therance of Federal, State, or local standards for the control 
of water pollution or atmospheric pollution or contaminants. 
"(13) 
CERTAIN REPLACEMENT PROPERTY.—Section 38 property 
constructed, reconstructed, erected, or acquired by the taxpayer 
shall be treated as property which is not suspension period prop-
erty to the extent such property is placed m service to replace 
property which was— 
"(A) destroyed or damaged by fire, storm, shipwreck, or 
other casualty, or 
"(B) stolen, 
but only to the extent the basis (in the case of new section 38 
property) or cost (in the case of used section 38 property) of such 
section 38 property does not exceed the adjusted basis of the 
property destroyed, damaged, or stolen, 
"(i) EXEMPTION FROM SUSPENSION OF $20,000 OF INVESTMENT.— 
"(1) I N GENERAL.—In the case of property acquired by the tax-
payer by purchase for use in his trade or business which would 
(but for this subsection) be suspension period property, the tax-
payer may select items to which this subsection applies, to the 
extent of an aggregate cost, for the suspension period, of $20,000. 
Any item so selected shall be treated as property which is not 
suspension period property for purposes of tnis subpart (other 
than for purposes of paragraphs (4), (5), (6), (7), (8), (9), 
and (10) of subsection (h)). 
80 STAT.] 
PUBLIC LAW 89-800-NOV. 8, 1966 
1513 
"(2) APPLICABLE RULES.—Under regulations prescribed by the 
Secretary or his delegate, rules similar to the rules provided by 
paragraphs (2) and (3) of subsection (c) shall be applied for 
purposes of this subsection. 
Subsection (d) shall not apply with 
respect to any item to which this subsection applies. 
"(j) SUSPENSION PERIOD.—For purposes of this subpart, the term 
'suspension period' means the period beginning on October 10, 1966, 
and ending on December 31,1967." 
(b) Section 48(d) of such Code (relating to certain leased property) 
76 stat. 967. 
is amended by adding at the end thereof the following new sentences: 
"In the case of susj)ension period property which is leased and is prop-
erty of a kind which the lessor ordinarily leases to one lessee for a 
substantial portion of the useful life of the property, the lessor of the 
property shall be deemed to have elected to treat the first such lessee as 
havmg acquired such property for purposes of applying the last sen-
tence of section 46(a)(2). 
In the case of section 38 property which 
(i) is leased after October 9, 1966 (other than pursuant to a binding 
contract to lease entered into before October 10, 1966), (ii) is not sus-
pension period property with respect to the lessor but is suspension 
period property if acquired by the lessee, and (iii) is property of the 
same kind which the lessor ordinarily sold to customers before Octo-
ber 10, 1966, or ordinarily leased before such date and made an elec-
tion under this subsection, the lessor of such property shall be deemed 
to have made an election under this subsection with respect to such 
property." 
SEC. 2. Section 167 of the Internal Revenue Code of 1954 (relating y^l^^^^^'^^^^^' 
to depreciation) is amended by redesignating subsection (i) as subsec-
tion (j) and by inserting after subsection (h) the following new sub-
section : 
"(i) 
LIMITATION IN CASE OF PROPERTY CONSTRUCTED OR ACQUIRED 
DURING THE SUSPENSION PERIOD.— 
"(1) I N GENERAL.—Under regulations prescribed by the Secre-
tary or his delegate, paragraphs (2), (3), and (4) of subsection 
(b) shall not apply in the case of real property which is not 
section 38 property (as defined in section 48(a)) if— 
" (A) the physical construction, reconstruction, or erection 
of such property by any person begins during the suspension 
period, or 
"(B) an order for such construction, reconstruction, or 
erection is placed by any person during the suspension period. 
Under regulations prescribed by the Secretary or his delegate, 
rules similar to the rules provided by paragraphs (3), (4), (7), 
(8), (9), and (10) of section 48(h) shall be applied for purposes 
^"'^' P- ^^OS. 
of the preceding sentence. 
"(2) EXCEPTION.—Paragraph (1) shall not apply to any item 
of real property selected by the taxpayer if the cost of such prop-
erty (when added to the cost of all other items of real property 
selected by the taxpayer under this paragraph) does not exceed 
$50,000. Under regulations prescribed by the Secretary or his 
delegate, rules similar to the rules provided by paragraph (2) of 
section 48(c) shall be applied for purposes of this paragraph. 
"(3) SUSPENSION PERIOD.—For purposes of this subsection, the 
1514 
PUBLIC LAW 89-800-NOV. 8, 1966 
[80 STAT. 
76 Stat. 963. 
Ante, p. 1513. 
Ante, p. 1508. 
Retirement and 
savings bonds. 
40 Stat. 288. 
31 u s e 774. 
55 Stat. 7. 
31 u s e 757c. 
term 'suspension period' means the period beginning on Octo-
ber 10,1966, and ending on December 31,1967." 
SEC. 3. (a) Section 46(a) of the Internal Kevenue Cbde of 1954 
(relating to determination of amount of credit) is amended by strik-
ing out paragraph (2) and inserting in lieu thereof the following: 
"(2) LIMITATION BASED ON AMOUNT OF TAX.—Notwithstanding 
paragraph (1), the credit allowed by section 38 for the taxable 
year shall not exceed— 
" (A) so much of the liability for tax for the taxable year 
as does not exceed $25,000, plus 
"(B) for taxable years ending on or before the last day 
of the suspension period (as defined in section 48(j)), 25 
percent of so much of the liability for tax for the taxable 
year as exceeds $25,000, or 
"(C) for taxable years ending after the last day of such 
suspension period, 50 percent of so much of the liability for 
tax for the taxable year as exceeds $25,000. 
In applying subparagraph (C) to a taxable year beginning on or 
before the last day of such suspension period and ending after 
the last day of such suspension period, the percent referred to 
in such subparagraph shall be the sum of 25 percent plus the 
percent which bears the same ratio to 25 percent as the number 
of days in such year after the last day of the suspension period 
bears to the total number of days in such year. The amount 
otherwise determined under this paragraph shall be reduced (but 
not below zero) by the credit which would have been allowable 
under paragraph (1) for such taxable year with respect to sus-
pension period property but for the application of section 
(b) Section 46(b) (1) of such Code (relating to allowance of carry-
back and carryover of unused credits) is amended— 
(1) by striking out subparagraph (B) and inserting in lieu 
thereof the following: 
"(B) an investment credit carryover to each of the 7 tax-
able years following the unused credit year,"; and 
(2) by striking out in the last sentence "8 taxable years" and 
"other 7 taxable years" and inserting in lieu thereof "10 taxable 
years" and "other 9 taxable years", respectively. 
SEC. 4. The amendments made by this Act shall apply to taxable 
years ending after October 9,1966, except that the amendments made 
by section 3(b) shall apply only if the fifth taxable year following the 
unused credit year ends after December 31, 1966. 
SEC. 5. The Second Liberty Bond Act, as amended, is amended by 
inserting after section 22 the following new section: 
"SEC. 22A. (a) In addition to the United States savings bonds 
authorized to be issued under section 22 of this Act, the Secretary of 
the Treasury, with the approval of the President, is authorized to issue 
from time to time, through the Postal Service or otherwise. United 
States retirement and savings bonds, the proceeds of which shall be 
available to meet any public expenditures authorized by law and to 
retire any outstanding obligations of the United States bearing interest 
or issued on a discount basis. The various issues and series of United 
80 STAT.] 
PUBLIC LAW 89-800-NOV. 8, 1966 
1515 
States retirement and savings bonds shall be in such forms, shall be 
offered in such amounts, subject to the limitations imposed by section 
21 of this Act, and shall be issued in such manner and subject to such ^^'^ ^a^\72^^'' 
terms and conditions consistent with subsections (b), (c), and (d) of 
31 use 757band 
this section, including any restrictions on their transfer, as the Secre- "°t^-
tary of the Treasury may from time to time prescribe. 
"(b)(1) Retirement and savings bonds shall be issued only on a dis-
count basis, and shall mature not less than ten nor more than thirty 
years from the date as of which issued, as the terms thereof may pro-
vide. Such bonds shall be sold at such price or prices and shall be re-
deemable before maturity upon such terms and conditions as the Secre-
tary of the Treasury may prescribe, except that the issue price of such 
bonds, and the terms upon which they may be redeemed at maturity, 
shall be such as to afford an investmeAt yield of not more than 5 per 
centum per annum, compounded semiannually. 
The denominations 
of such bonds shall be such as the Secretary of the Treasury may from 
lime to time determine and shall be expressed in terms of their maturity 
values. The Secretary of the Treasury is authorized by regulations to 
fix the maximum amount of such bonds issued in any one year that 
may be held by any one person at any one time, except that such maxi-
mum amount shall not be less than $3,000. 
" (2^ The Secretary of the Treasury, with the approval of the Presi-
dent, IS authorized to provide by regulations that owners of retirement 
and savings bonds may, at their option, retain the bonds after maturity 
and continue to earn interest upon them at rates which are consistent 
with the late of investment yield afforded by retirement and savings 
bonds. 
"(c) For purposes of taxation, any increment in value represented 
by the difference between the price paid and the redemption value 
received (whether at, before, or after maturity) for savings and retire-
ment bonds shall be considered as interest. Such bonds shall not bear 
the circulation privilege. 
"(d) The provisions of subsections (c), (e), (g), (h), and (i) of 
section 22 shall, to the extent not inconsistent with the provisions of 5/813^*47^' 
this section, apply with respect to retirement and savings bonds issued 
31 use 757c. 
under this section." 
SEC. 6. (a) Section 501(c)(6) of the Internal Revenue Code of 
Footbaii leagues, 
1954 (relating to exemption of business leagues, boards of trade, etc.) '""gA'^stat. i63. 
is amended by striking out "or boards of trade" and inserting in lieu 
thereof "boards of trade, or professional football leagues (whether or 
not administering a pension fund for football players)". 
(b) (1) Section 1 of the Act of September 30, 1961 (75 Stat. 732; 
15 U.S.C. 1291), is amended by adding at the end thereof: "In addi-
tion, such laws shall not apply to a joint agreement by which the 
member clubs of two or more professional football leagues, which are 
exempt from income tax under section 501(c)(6) of the Internal 
Revenue Code of 1954, combine their operations in expanded single 
league so exempt from income tax, if such agreement increases rather 
than decreases the number of professional football clubs so operating, 
and the provisions of which are directly relevant thereto." 
(2) Section 2 of such Act is amended by striking out "described in 
section 1" and inserting in lieu thereof "described in the first sentence 
in section 1". 
(3) Section 3 of such Act is amended (A) by striking out "Section foo"La'ir^o°n\^*ts 
1 of this Act" and inserting in lieu thereof "The first sentence of 
section 1 of this Act"; (B) by striking out the word "intercollegiate" 
1516 
PUBLIC LAW 89-801-NOV. 8, 1966 
[80 STAT. 
the first and last time it appears in such section and inserting in lieu 
thereof "intercollegiate or interscholastic"; (C) by striking out the 
words "daily newspaper of general circulation prior to March 1" and 
inserting in lieu thereof "newspaper of general circulation prior to 
August 1"; (D) by redesignating paragraph (2) as paragraph (3); 
(E) by striking out the word "and" at the end of paragraph (1) and 
inserting in lieu thereof the word "or"; and (F) by adding after 
paragraph (1) the following new paragraph: 
" (2) in the case of an interscholastic football contest, such contest 
is between secondary schools, both of which are accredited or certified 
under the laws of the State or States in which they are situated and 
offer courses continuing through the twelfth grade of the standard 
school curriculum, or the equivalent, and". 
(c) The amendment made by subsection (a) shall apply to taxable 
years ending after the date of the enactment of this Act. 
Approved November 8, 1966. 
Public Law 89-801 
November 8, 1966 
A N 
A C T 
[H.R. 15766] 
ip(j establish a National Commission on Reform of Federal Criminal Laws. 
National Com-
mission on Reform 
of Federal Crim-
inal Laws. 
Establishment. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the National 
Commission on Eeform 
of Federal Criminal Laws is hereby 
established. 
MEMBERSHIP OF COMMISSION 
SEC. 2. (a) The Commission shall be composed of— 
(1) three Members of the Senate appointed by the President of 
the Senate, 
(2) three Members of the House of Representatives appointed 
by the Speaker of the House of Representatives, 
(3) three members appointed by the President of the United 
States, one of whom he shall designate as Chairman, 
(4) one United States circuit judge and two United States dis-
trict judges appointed by the Chief Justice of the United States. 
(b) At no time shall more than two of the members appointed under 
paragraph (1), paragraph (2), or paragraph (3) be persons who are 
members of the same political party. 
(c) Any vacancy in the Commission shall not affect its powers but 
shall be filled in the same manner in which the original appointment 
was made, and subject to the same limitations with respect to party 
affiliations as the original appointment was made. 
(d) Seven members shall constitute a quorum, but a lesser number 
may conduct hearings. 
DUTIES o r T H E COMMISSION 
SEC. 3. The Commission shall make a full and complete review and 
study of the statutory and case law of the United States which consti-
tutes the federal system of criminal justice for the purpose of formu-
lating and recommending to the Congress legislation which would 
improve the federal system of criminal justice. It shall be the further 
duty of the Commission to make recommendations for revision and 
recodification of the criminal laws of the United States, including the