[Federal Register Volume 61, Number 197 (Wednesday, October 9, 1996)]
[Rules and Regulations]
[Pages 52877-52879]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25807]
=======================================================================
-----------------------------------------------------------------------
CONSUMER PRODUCT SAFETY COMMISSION
16 CFR Part 1020
Small Business
AGENCY: Consumer Product Safety Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commission is issuing a rule describing how its Small
Business Ombudsman and Small Business Program will assist small
businesses that interact with the Commission.
EFFECTIVE DATE: The rule is effective on October 9, 1996.
FOR FURTHER INFORMATION CONTACT: Clarence T. Bishop, Deputy Executive
Director and Small Business Ombudsman, Consumer Product Safety
Commission, Washington, D.C. 20207; telephone 301-504-0550; telefax
301-504-0121; Web address http://www.cpsc.gov. Small businesses can
obtain information from the Commission's hotline telephone system by
calling 1-800-638-2772, extension 234.
SUPPLEMENTARY INFORMATION:
A. Background
In March 1996 Congress enacted the Small Business Regulatory
Enforcement Fairness Act, Public Law 104-121. Congress found this
legislation necessary because ``small businesses bear a
disproportionate share of regulatory costs and burdens'' and
``fundamental changes * * * are needed in the regulatory and
enforcement culture of Federal agencies'' to make them more responsive
to small businesses. (Sections 202 (2) and (3) of the Act.)
The Consumer Product Safety Commission (``Commission'' or ``CPSC'')
has been evaluating the special needs of small businesses, and working
to address them. In June 1996, the Commission co-sponsored a Small
Business Conference with the International Consumer Product Health and
Safety Organization. More than 130 representatives of small businesses
participated in panels and heard
[[Page 52878]]
speeches by Philip Lader, Administrator of the U.S. Small Business
Administration, and George Weise, Commissioner of the U.S. Customs
Service.
At the conference, CPSC Chairman Ann Brown awarded three
Commendation Awards to small business individuals and companies that
have made contributions to product safety. In addition, the Commission
announced its establishment of the new position of Small Business
Ombudsman. Deputy Executive Director Clarence T. Bishop is now serving
in this position. Its purpose is to have someone at CPSC who is
directly responsible for addressing the needs and problems of small
businesses, who can help small businesses comply with CPSC standards,
and who can help small businesses receive needed technical assistance
and guidance.
To help small businesses obtain information quickly, the Commission
has established a new extension on its toll-free hotline. The telephone
number is 1-800-638-2772, extension 234.
B. The Rule
The rule issued below provides in one place all of the Commission's
small business policies:
1. The rule highlights the Commission's objectives for its
treatment of small businesses (Sec. 1020.1).
2. The rule summarizes the qualifications and responsibilities of
the Commission's Small Business Ombudsman (Sec. 1020.3).
3. The rule establishes a framework and some basic principles for
the Commission's small business program (Sec. 1020.4). And, it gives
examples of how the Commission will assist small businesses.
4. The rule describes the Commission's enforcement policy for
waiving or reducing penalties, in appropriate cases, that small
businesses must pay when they violate the law (Sec. 1020.5).
The rule issued below is not intended to create any right or
benefit, substantive or procedural, enforceable at law or in equity, by
a party against the United States, its agencies, its officers, or any
other person. More specifically, it is not intended to expand any
rights or benefits conferred on a person by section 223 of the Small
Business Regulatory Enforcement Fairness Act of 1996, entitled ``Rights
of Small Entities in Enforcement Actions.''
Generally, the Administrative Procedure Act (APA) requires agencies
to publish a notice of proposed rulemaking and provide opportunity for
public comment before issuing a rule. 5 U.S.C. Sec. 553. However, these
requirements do not apply when the agency finds for good cause that
they are ``impracticable, unnecessary, or contary to the public
interest.'' 5 U.S.C. Sec. 553(b)(B). The Commission finds for good
cause that notice of proposed rulemaking and public participation are
unnecessary because the rule issued below simply compiles small
business policies that are already in effect.
C. Effective Date
The rule shall be effective on October 9, 1996. The APA requires
that a substantive rule be published at least 30 days before its
effective date, unless the agency finds for good cause that such delay
is not needed. 5 U.S.C. Sec. 553(d)(3). The Commission finds good cause
for the rule issued below to become effective immediately because it
simply compiles small business policies that are already in effect.
D. Economic Impact on Small Businesses
When an agency undertakes a rulemaking proceeding, the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq., generally requires that proposed
and final regulatory flexibility analyses describe the impact of the
rule on small businesses and other small entities. The purpose is to
require agencies, consistent with their objectives, to fit the
requirements of rules to the scale of the businesses, organizations,
and governmental jurisdictions subject to such rules. 5 U.S.C. 602
note.
However, the Act does not require an agency to prepare a regulatory
flexibility analysis if the agency's head certifies that the rule will
not have a significant economic impact on a substantial number of small
entities. 5 U.S.C. Sec. 605.
This small business rule is designed to help small entities when
they interact with the Commission. While some economic benefits may
result from improvements in such contacts, the Commission does not
believe that the rule will have a significant economic impact on a
substantial number of small entities.
E. Environmental Impact
Under the National Environmental Policy Act (42 U.S.C. Secs. 4321-
4347), the Council on Environmental Quality's regulations (40 CFR Part
1500), and CPSC's procedures for environmental review (16 CFR Part
1021), the Commission has assessed the possible environmental effects
associated with the small business rule. Because this rule will not
change the way that firms manufacture, retrofit, or destroy products,
the Commission expects no significant environmental effects from it.
Therefore, neither an environmental assessment nor an environmental
impact statement is required.
List of Subjects in 16 CFR Part 1020
Consumer protection, Penalties, Small businesses, Trade practices.
F. Conclusion
Under the authority of the Small Business Regulatory Enforcement
Fairness Act of 1996, Pub. L. 104-121, 100 Stat. 857-874, the
Commission hereby amends Title 16 of the Code of Federal Regulations,
Chapter II, Subchapter A by adding a new part as follows:
PART 1020--SMALL BUSINESS
Sec.
1020.1 Why is the Commission issuing this rule?
1020.2 What is the definition of ``small business''?
1020.3 What are the qualifications and duties of the Small Business
Ombudsman?
1020.4 What is the Small Business Program?
1020.5 What is the Small Business Enforcement Policy?
Authority: 5 U.S.C. 601 note.
Sec. 1020.1 Why is the Commission issuing this rule?
(a) To state the Commission's policies on small businesses;
(b) To assure that the Commission continues to treat small
businesses fairly;
(c) To assure that small businesses do not bear a disproportionate
share of any burden or cost created by a Commission regulatory,
enforcement, or other action; and
(d) To assure that small businesses are given every opportunity to
participate fully in the Commission's regulatory process.
Sec. 1020.2 What is the definition of ``small business''?
As used in this part, the term ``small business'' means any entity
that is either a ``small business,'' ``small organization,'' or ``small
governmental jurisdiction,'' as those terms are defined at 5 U.S.C.
601(3), (4), and (5), respectively.
Sec. 1020.3 What are the qualifications and duties of the Small
Business Ombudsman?
(a) The Chairman will appoint a senior, full-time Commission
employee as Small Business Ombudsman. The Ombudsman must:
(1) Have a working knowledge of the Commission's statutes and
regulations;
[[Page 52879]]
(2) Be familiar with the industries and products that the
Commission regulates;
(3) Develop a working knowledge of the regulatory problems that
small businesses experience;
(4) Perform the Ombudsman duties in addition to, and consistently
with, other Commission responsibilities; and
(5) Not work in the Office of Compliance or Office of Hazard
Identification and Reduction.
(b) The duties of the Small Business Ombudsman will include, but
not be limited to, the following:
(1) Developing and implementing a program to assist small
businesses that is consistent with Sec. 1020.4;
(2) Working to expedite Commission responses to small businesses
and providing information, guidance, and technical assistance to small
businesses;
(3) Performing a review, at least twice a year, of the Commission's
regulatory agenda for actions likely to have a significant impact on
small businesses; and
(4) Pursuing the interests of small businesses by maintaining a
working relationship with appropriate officials in the Small Business
Administration, in national trade associations that represent small
businesses, and in the Commission.
Sec. 1020.4 What is the Small Business Program?
(a) Whenever the Commission is aware of the interests of small
businesses, it will consider those interests before taking any action
that will likely have a significant effect on small businesses.
(b) Small businesses may request and receive special assistance
from the Commission, as appropriate and consistent with Commission
resources. Examples of such assistance are:
(1) Small businesses may contact the Small Business Ombudsman to
obtain information about Commission statutes, regulations, or programs;
to obtain technical assistance; to determine who in the agency has
particular expertise that might be helpful to the small business; or to
help expedite a small business's request.
(2) Small businesses may request assistance from the Commission by
using the small business extension on the Commission's hotline
telephone system. The number is 1-800-638-2772, extension 234.
(3) The Small Business Ombudsman will directly provide small
businesses with the requested assistance, or will direct the small
business to the appropriate Commission staff for help.
(c) Whenever the Commission issues a final regulatory flexibility
analysis for a rule, under the Regulatory Flexibility Act (5 U.S.C.
604), the Commission will publish a compliance guide for small
businesses. The guide will explain in easy-to-understand language what
action a small business must take to comply with the rule.
(d) The Commission may take other appropriate actions to assist
small businesses, but such actions will not treat any other Commission
constituent unfairly.
Sec. 1020.5 What is the Small Business Enforcement Policy?
(a) When appropriate, the Commission will, subject to all
applicable statutes and regulations and paragraph (b) of this section:
(1) Waive or reduce civil penalties for violations of a statutory
or regulatory requirement by a small business and/or
(2) Consider a small business's ability to pay in determining a
penalty assessment against that small business,
(b) The Commission may decline to waive civil penalties or consider
a small business's ability to pay, under paragraph (a) of this section,
when one or more of the following circumstances applies:
(1) The small business's violations posed serious health or safety
threats.
(2) The small business was subject to multiple enforcement actions
by the Commission.
(3) The small business's violations involved willful or criminal
conduct.
(4) The small business failed to correct violations within a
reasonable time.
(5) The small business failed to make a good faith effort to comply
with the law.
(6) The small business acted in any other way that would make it
unfair or inappropriate for the Commission to provide a benefit under
paragraph (a) of this section.
Dated: October 3, 1996.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 96-25807 Filed 10-8-96; 8:45 am]
BILLING CODE 6355-01-P
