An Act to amend the Internal Revenue Code of 1954 to exempt from tax income derived by a foreign central bank of issue from obligations of the United States, and for other purposes
PL 87-29 (H.R.5189), enacted 05/04/1961

64 
PUBLIC LAW 87-28-MAY 4, 1961 
[75 S T A T . 
May 4, 1961 
[S. 1027] 
Public Law 87-28 
AN ACT 
To amend title I of the Agricultural Trade Development and Assistance Act 
of 1954. 
A g r i c u l t u r a l 
Trade Development 
and A s s i s t a nee 
A c t 
o f 
1 9 5 4, 
amendment. 
73 Stat. 606. 
7 u s e 1703. 
68 Stat. 456. 
Be it enacted hy the Senate and House of Represent-atives of the 
United States of Afiierica in Congress assembled, That section 103(b) 
of the Agricultural Trade Development and Assistance Act of 1954, 
as amended, is amended by deleting "any calendar year during the 
period beginning January 1, 1960, and ending December 31, 1961," 
and substituting "the calendar year 1960," and by adding at the end 
thereof the following: "Agreements shall not be entered into under 
this title in the calendar year 1961 which will call for appropriations 
to reimburse the Commodity Credit Corporation, pursuant to sub-
section (a) of this section, in amounts in excess of $3,500,000,000, plus 
any amount by which agreements entered into in the preceding calen-
dar year have called or will call for appropriations to reimburse the 
Commodity Credit Corporation in amounts less than authorized for 
such preceding year by this Act as in effect during such preceding 
years. 
Approved May 4, 1961. 
May 4, 1961 
[H. R. 5 189] 
Public Law 87-29 
AN ACT 
To amend the Internal Revenue Code of 1954 to exempt from tax income derived 
by a foreign central bank of issue from obligations of the United States, and 
for other purposes. 
Tax exemption. 
F o r e i g n 
c en-
tral bank issues, 
26 u s e 891-894. 
Effective date. 
Small busi n e s s 
c o r p o r a t i o n s , 
election. 
26 u s e 1372. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemoled, That (a) subpart C 
of part II of subchapter N" of chapter 1 of the Internal Revenue Code 
of 1954 (relating to nonresident aliens and foreign corporations) is 
amended by adding at the end thereof the following new section: 
"SEC. 895. INCOME DERIVED BY A FOREIGN CENTRAL BANK OF ISSUE 
FROM OBLIGATIONS OF THE UNITED STATES. 
"Income derived by a foreign central bank of issue from obligations 
of the United States owned by such foreign central bank of issue shall 
not be included in gross income and shall be exempt from taxation 
under this subtitle unless such obligations are held for, or used in con-
nection with, the conduct of commercial banking functions or other 
commercial activities." 
(b) The table of sections for such subpart C is amended by adding 
at the end thereof the following: 
"Sec. 895. Income derived by a foreign central bank of issue from 
obligations of the United States." 
(c) The amendments made by subsections (a) and (b) shall be 
effective with respect to income received in taxable years beginning 
after December 31, 1960. 
SEC. 2. Section 1372 of the Internal Revenue Code of 1954 (relat-
ing to elections by small business corporations) is amended by adding 
at the end thereof the following new subsection: 
"(g) 
CONSENT TO ELECTION BY CERTAIN SHAREHOLDERS or STOCK 
HELD AS COMMUNITY PROPERTY.—If a husband and wife owned stock 
which was community property (or the income from which was com-
munity income) under the applicable community property law of a 
May 5, 1961 
[H. R. 3935] 
Fair Labor Stanci-
ards 
Amendments 
75 S T A T . ] 
PUBLIC LAW 87-30-MAY 5, 1961 
State, and if either spouse filed a timely consent to an election under 
subsection (a) for a taxable year beginning before January 1, 1961, 
the time for filing the consent of the other spouse to such election shall 
not expire prior to May 15,1961."' 
Approved May 4, 1961. 
Public Law 87-30 
AN ACT 
To amend the Fair Labor Standards Act of 1938, as amended, to provide coverage 
for employees of large enterprises engaged in retail trade or service and of 
other employers engaged in connnerce or in tlie prtxliiction of goods for com-
merce, to increase the minimum wajie under the Act to $1.25 an hour, and for 
other purposes. 
Be it enacted hy the Senate and Hou>^e of Representatives 
of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Fair Labor Standards Amendments of 1961". 
of r96i. 
DEFIXITIOKS 
SEC. '2. (a) Paragraph (m) of section 3 of the Fair Labor Stand-
ards Act of 1938, as amended, defining the term "wage'', is amended 
09 us^c 2^03^^' 
by inserting before the period at the end thereof a colon and the 
following: "Provided, That the cost of board, lodging, or other facili-
ties shall not be included as a part of the wage paid to any employee 
to the extent it is excluded therefrom under the terms of a bona 
fide collective-bargaining agreement applicable to the particular 
employee: Provided 
further, 
That the Secretary is authorized to 
determine the fair value of such board, lodging, or other facilities 
for defined classes of employees and in defined areas, based on aver-
age cost to the employer or to groups of employers similarly situated, 
or average value to groups of employees, or other appropriate meas-
ures of fair value. Such evaluations, where applicable and pertinent, 
shall be used in lieu of actual measure of cost in determining the 
wage paid to any employee''. 
(b) Paragraph (n) of section 3 of such Act is amended by insert- 
^3 stat. 911. 
ing immediately before ''shall not"' the following ", except as used 
in subsection (s)(l),". 
(c) Section 3 of such Act is further amended by adding at the 
end thereof the following new paragraphs: 
"(p) 'American vessel' includes any vessel which is documented 
or numbered under the laws of the L^nited States. 
"'(q) "Secretary" means the Secretary of Labor. 
"(r) 'Enterprise* means the related activities performed (either 
through unified operation or common control) by any person or per-
sons for a common business purpose, and includes all such activities 
whether performed in one or more establishments or by one or more 
corporate or otlier organizational units including departments of 
an establishment operated through leasing arrangements, but shall 
not include the related activities performed for such enterprise by an 
inflei)endeiit contractor: Provided, That, within the meaning of this 
subsection, a retail or service establishment which is under independent 
ownership shall not be deemed to be so operated or controlled as to be 
other than a separate and distinct enterprise by reason of any arrange-
ment, wliich includes, but is not necessarily limited to, an agreement, 
(1) that it will sell, or sell only, certain goods specified by a particular 
manufacturer, distributor, or advertiser, or (2) that it will join with 
other such establishments in the same industry for the purpose of 
collective purchasing, or (3) that it will have the exclusive right to