38 PUBLIC LAWS-CHS. 80 , 81-MAR . 8, 1946 [60 STAT. subcontractor to the prime contractor or higher tier subcontractor. ecovery by U. 8 . The amount of any such fee, cost, or expense shall be recoverable on behalf of the United States from the subcontractor or the recipient thereof by set-off of moneys otherwise owing to the subcontractor either directly by the United States, or by a prime contractor under any cost-plus-a-fixed-fee or cost reimbursable contract, or by an action in an appropriate court of the United States. Upon a showing that a subcontractor paid fees, commissions, or compensation or granted gifts or gratuities to an officer partner, employee, or agent of a prime con- tractor or of another higher tier subcontractor, in connection with the award of a subcontract or order thereunder, it shall be conclusively presumed that the cost of such expense was included in the price of the subcontract or order and ultimately borne by the United States. Upon the direction of the contracting department or agency or of the General Accounting Office, the prime contractor shall withhold from sums otherwise due a subcontractor any amount reported to have been found to have been paid by a subcontractor as a fee, commission, or compen- sation or as a gift or gratuity to an officer, partner, employee, or agent of the prime contractor or another higher tier subcontractor. "Subcontractor. " SEC. 2. For the purpose of this Act, the term "subcontractor" is defined as any person, including a corporation, partnership, or business association of any kind, who holds an agreement or purchase order to perform all or any part of the work or to make or to furnish any article or service required for the performance of a cost-plus-a-fixed-fee or cost reimbursable contract or of a subcontract entered into there- "Pe. under, and the term "person" shall include any subcontractor, cor- poration, association, trust, joint-stock company, partnership, or individual. Power o GAO. SEC. 3. For the purpose of ascertaining whether such fees, com- missions, compensation, gifts, or gratuities have been paid or granted by a subcontractor, the General Accounting Office shall have the power to inspect the plants and to audit the books and records of any prime contractor or subcontractor engaged in the performance of a cost-plus- a-fixed-fee or cost reimbursable contract. Priaties. SEC. 4. Any person who shall knowingly, directly or indirectly, make or receive any such prohibited payment shall be fined not more than $10,000 or be imprisoned for not more than two years, or both. Approved March 8, 1946. March 8, 1946 [H. R . 23481 [Public Law 320] I. R. C., amend- ments. 53 Stat. 384. 26U.S.C.§3228; Supp. V, 3228 . 53 Stat. 269. 26U.8.C.§2550- 2565; Supp. V, § 2550 et seq. Post, p. 39. 52 Stat. 1040. 21U. S. C. I§301- 392; Supp. V, § 321 etseq. Rules and regula- tions. [CHAPTER 81] AN ACT To provide for the coverage of certain drugs under the Federal narcotic laws' Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 3228 of the Internal Revenue Code (containing definitions of terms used for purposes of certain provisions relating to narcotics) is amended by adding the following new subsection (f) at the end thereof: "(f) OPIATE. - T he word 'opiate' as used in this part and sub- chapter A of chapter 23 shall mean any drug (as defined in the Fed- eral Food, Drug, and Cosmetic Act) found by the Secretary of the Treasury, after due notice and opportunity for public hearing, to have an addiction-forming or addiction-sustaining liability similar to morphine or cocaine, and proclaimed by the President to have been so found by the Secretary. The Secretary is authorized to issue nec- essary rules and regulations for carrying out the provisions of this
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