An Act to amend title 10, United States Code, to broaden the authority of the Secretaries of the military departments to settle certain admiralty claims administratively, and for other purposes
PL 92-417 (H.R.8549), enacted 08/29/1972

654 
PUBLIC L
A
W 92-417-AUG. 29, 1972 
[86 STAT. 
August 29, 1972 
[H. R. 8549] 
Armed Forces. 
Admiralty 
claims against 
U.S., settlement. 
70A Stat. 271. 
Salvage claims. 
70A Stat. 456. 
Public Law 92-417 
AN ACT 
To amend title 10, United' States Code, to broaden the authority of the Secretaries 
of the military departments to settle certain admiralty claims adminis-
tratively, and for other purposes. 
Be it enacted hy the Senate and the House of Representatives of 
United States of America in Congress assembled, That title 10, United 
States Code, is amended as follows: 
(1) The section heading for section 4802 and section 4802(a) are 
amended to read as follows: 
'*§ 4802. Admiralty claims against the United States 
"(a) The Secretary of the Army may settle or compromise an 
admiralty claim against the United States for— 
"(1) damage caused by a vessel of, or in the service of, the 
Department of the Army or by other property under the juris-
diction of the Department of the Army; 
"(2) compensation for towage and salvage service, including 
contract salvage, rendered to a vessel of, or in the service of, the 
Department of the Army or to other property under the juris-
diction of the Department of the Army; or 
"(3) damage caused by a maritime tort committed by any 
agent or employee of the Department of the Army or by property 
under the jurisdiction of the Department of the Army." 
(2) Chapter 451 is amended by striking out the following item in 
the analysis: 
"4802. Damage by United States vessels; towage and salvage of TJnited States 
vessels." 
and inserting the following item in place thereof: 
•'4802. Admiralty claims against the United States." 
(3) The text of section 4804 is amended to read as follows: 
"(a) The Secretary of the Army may settle, or compromise, and 
receive payment of a claim by the United States for salvage services 
performed by the Department of the Army. Amounts received under 
this section shall be covered into the Treasury. 
"(b) In any case where the amount to be received by the United 
States is not more than $10,000, the Secretary of the Army may dele-
gate his authority under subsection (a) to any person designated by 
him." 
(4) The text of section 7365 is amended to read as follows: "The 
Secretary of the Navy, or his designee, may consider, ascertain, adjust,, 
determine, compromise, or settle and receive payment of any claim by 
the United States for salvage services rendered by the Department of 
the Navy." 
(5) Section 7622(a) is amended to read as follows: 
"(a) The Secretary of the Navy may settle, or compromise, and 
pay in an amount not more than $1,000,000 an admiralty claim against 
the United States for— 
" (1) damage caused by a vessel in the naval service or by other 
property under the jurisdiction of the Department of the Navy; 
"(2) compensation for towage and salvage service, including 
contract salvage, rendered to a vessel in the naval service or to 
other property under the jurisdiction of the Department of the 
Navv; or 
86 STAT. ] 
PUBLIC LAW 92-417-AUG. 29, 1972 
655 
" (S) damage caused by a maritime tort committed by any agent 
or employee of the Department of the Navy or by property under 
the jurisdiction of the Department of the Navy." 
(6) The section heading for section 9802, and section 9802(a) are JJ^us?980^2!* 
amended to read as follows: 
*'§ 9802. Admiralty claims against the United States 
"(a) The Secretary of the Air Force may settle or compromise an 
admiralty claim against the United States for— 
"(1) damage caused by a vessel of, or in the service of, the 
Department of the Air Force or by other property under the 
jurisdiction of the Department of the Air Force; 
"(2) compensation for towage and salvage service, including 
contract salvage, rendered to a vessel of, or m the service of, the 
Department of the Air Force or to other property under the 
jurisdiction of the Department of the Air Force; or 
"(3) damage caused by a maritime tort committed by any 
agent or employee of the Department of the Air Force or by 
property under the jurisdiction of the Department of the Air 
Force. 
(7) Chapter 951 is amended by striking out the following item in 
the analysis: 
•'9802. Damage by United States vessels; towage and sa'vage of United States 
vessels." 
and inserting the following item in place thereof: 
"9802. Admiralty claims against the United States." 
(8) The text of section 9804 is amended to read as follows: 
salvage claims,, 
"(a) The Secretary of the Air Force may settle, or compromise, 
and receive payment of a claim by the United States for salvage 
services performed by the Department of the Air Force. Amounts 
received under this section shall be covered into the Treasury. 
"(b) In any case where the amount to be received hj the United 
States is not more than $10,000, the Secretary of the Air Force may 
delegate his authority under subsection (a) to any person designated 
by him." 
SEC. 2. (a) The section heading for section 646, and section 646, 
title 14, United States Code, are revised to read as follows: 
63 stat. 548; 
' 
74 Stat. 245. 
*'§646. Admiralty claims against the United States 
"(a) The Secretary may consider, ascertain, adjust, determine, 
compromise, or settle, and pay in an amount not more than $100,000, 
an admiralty claim against the United States for— 
"(1) damage caused by a vessel in the Coast Guard service or 
by other property under the jurisdiction of the Department in 
which the Coast Guard is operating; 
"(2) compensation for towage and salvage services, including 
contract salvage, rendered to a vessel in the Coast Guard service 
or to other property under the jurisdiction of the Department in 
which the Coast Guard is operating; or 
' 
" (3) damage caused by a maritime tort committed by an agent 
or employee of the Department in which the Coast Guard is 
operating or by property under the jurisdiction of that 
Department. 
"(b) Upon acceptance of payment by the claimant, the settlement 
or compromise of a claim under this section is final and conclusive 
notwithstanding any other law. 
"
^ ' ' 
frao 
PUBLIC LAW 92-418-AUG. 29, 1972 
[86 
STAT. 
Certificat 
Congress. 
"(c) If a claim, under this section is settled or comi>romised for 
tiiore than $100,000, the Secretary shall certify it to Congress." 
(b) Chapter 17 of title 14, United States Code, is amended by 
strikmg out the following item in the analysis: 
"646. Claims for damages occasioned by vessels." 
and inserting the following item in pla<?e thereof: 
^ 
"646. Admiralty claims against the United States." 
SEC. 3. Section 9 of the Act of March 9,1920, chapter 9, as amended 
(41 Stat. 527, as amended; 46 U.S.C. 749) is amended by striking out 
the words "having control of the possession or operation of any 
merchant vessel.'' 
,. 
Approved August 29, 1972. 
. - 
. 
./ 
,'. 
Public Law 92-418 
August 29, 1972 
[H. R.11185] 
Veterans' 
organizations. 
Tax exempt 
status. 
68A Stat. 163; 
83 Stat. 541. 
26 u s e 501. 
AN ACT 
83 Stat. 537. 
Supra, 
83 Stat. 549. 
Effective date. 
76 Stat. 5 1 . 
To amend the Internal Revenue Code of 1954 with regard to the exempt status 
of veterans' organizations, and for other purposes. 
Be it enacted by the /Senate and House of Representatives 
of the 
United States of America in Congress assembled, That (a) section 
501(c) of the Internal Eevenue Code of 1954 (relating to list of 
exempt organizations) is amended by adding at the end thereof the 
following new paragraph: 
"(19) A post or organization of war veterans, or an auxiliary 
unit or society of, or a trust or foundation for, any such post or 
organization— 
"(A) organized in the United States or any of its 
possessions, 
"(B) at least 75 percent of the members of which are war 
veterans and substantially all of the other members of which 
are individuals who are veterans (but not war veterans), or 
are cadets, or are spouses, widows, or widowers of war 
veterans or such individuals, and 
,,it> 
< 
"(C) no part of the net earnings of which inures to the 
benefit of any private shareholder or individual.''. 
(b) Section 512(a) of such Code (relating to definition of unrelated 
business taxable income) is amended by adding at the end thereof 
the following new paragraph: 
"(4) 
SPECIAL RULE APPLICABLE TO ORGANIZATIONS DESCRIBED IN 
?n 
SECTION 501(0(19).—In the case of an organization described 
••,} in section 501(c) (19), the term 'unrelated business taxable 
income' does not include any amount attributable to payments for 
life, sick, accident, or health insurance with respect to members 
of such organizations or their dependents which is set aside 
for the purpose of providing for the payment of insurance benefits 
or for a purpose specified in section 170(c) (4). If an amount set 
»
i
s aside under the preceding sentence is used during the taxable 
p
> 
year for a purpose other than a purpose described in the preceding 
sentence, such amount shall be included, under paragraph (1), in 
unrelated business taxable income for the taxable year.'' 
(c) The amendments made by this section shall apply to taxable 
years beginning after December 31,1969. 
SEC. 2. (a) Section 165(h) of the Internal Revenue Code of 1954 
(relating to disaster losses) is amended by— 
(1) striking out the first sentence and inserting in lieu thereof