[Federal Register Volume 64, Number 130 (Thursday, July 8, 1999)]
[Notices]
[Pages 36877-36882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17313]
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FEDERAL TRADE COMMISSION
Submission for OMB Review; Comment Request
AGENCY: Federal Trade Commission.
ACTION: Notice.
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SUMMARY: The FTC has submitted the information collection requirements
contained in five Commission rules and one administrative category to
OMB for review and clearance under the Paperwork Reduction Act (44 USC
3501 et seq.) (PRA). On January 8, 1999, the FTC solicited comment
concerning these information collection requirements, providing the
information specified in 5 CFR 1320.5(a)(iv). 64 FR 1203. The FTC
received no comments. The current OMB clearances for four of the five
rules and the one administrative category expire on September 30, 1999.
The current OMB clearance for the HSR Form and Rules expires on August
31, 1999. The FTC has requested that OMB extend these paperwork
clearances for a period of three years.
DATES: Comments must be filed on or before August 9, 1999.
ADDRESSES: Send comments to the Office of Information and Regulatory
Affairs, Office of Management and Budget, New Executive Office
Building, Room 3228, Washington, DC 20503, ATTN: Desk Officer for the
Federal Trade Commission, and to Elaine W. Crockett, Attorney, Office
of the General
[[Page 36878]]
Counsel, Room 598, 600 Pennsylvania Avenue, NW 20580. Telephone: (202)
326-2453. Fax: (202) 326-2477. E-mail: ecrockett@ftc.gov.
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of the proposed extensions of the information requirements
should be addressed to Elaine W. Crockett at the address listed above.
SUPPLEMENTARY INFORMATION:
1. Title: FTC Hart-Scott-Rodino (``Permerger Notification'') Rules
and form, 16 CFR Parts 801-803--(OMB Control Number 3084-0005)--
Extension
The Antitrust Improvements Act Notification and Report Form
(``Report Form'' or ``Form'') implements the notification requirements
contained in the Premerger Notification Rules, 16 CFR 801-803 (1998)
and Section 7A of the Clayton Act, 15 USC 18a. Under the Act and its
associated rules, certain parties contemplating acquisitions of a
specified size must notify the FTC and the Antitrust Division of the
Department of Justice (``the enforcement agencies'') and wait for 30
days (or, in the case of cash tender offer, 15 days) before
consummating the transaction. The FTC has established the Report Form
as the means for accomplishing the notification mandated by the Act.
The Report Form provides the enforcement agencies with the information
needed to make prompt, preliminary determinations of the antitrust
implications of the reported transactions.
On June 14, 1994, the FTC published a Federal Register Notice in
which it proposed certain changes to the Report Form. 59 FR 30545. At
that time, the FTC requested comments on any paperwork burdens imposed
by those changes. Id. at 30588. Based on comments received in response
to the Notice, as well as other input from interested parties, the
enforcement agencies are continuing their review of the Report Form.
Any future proposal to change the Form as a result of this review will
include a request for comments on any paperwork burdens imposed by the
proposal.
This request is for an extension of the Rules and the Form as they
currently exist. This notice proposes no amendments or changes to the
Rules or the Form, nor does it address any of the changes proposed in
1994. The purpose of this notice is simply to comply with those PRA
requirements that will allow the Report Form to be used in its current
format pending any amendments to the Rules or Form.
Estimated Annual Burden Hours
The total estimated burden associated with completing and filing
the Form is 260,443 hours (based on fiscal year 1997 figures). We have
estimated that, depending on a number of different factors, it takes
anywhere from 8 to 160 hours to complete and file the Form.\1\ The
average, based on historical experience, is approximately 39 hours. In
certain circumstances, only an index or copies of filings made with
another regulatory agency are required to be submitted to the FTC in
lieu of the Form (``index filing''). We have estimated that 2 hours is
needed to comply with the filing requirements in these instances. The
enforcement agencies received notice of 3622 transactions in 1997, of
which 59 were reported to other regulatory agencies. Thus the total
1997 burden was (3517 transactions x 39 hours) + (59 transactions x
2 hours), or 260,443 hours. The increase from the 1994 estimated burden
of 107,985 hours (when last calculated for OMB clearance) is solely a
function of the increase in filing since 1994. Although the number of
reported transactions totaled 3,622 in 1997, because of variations in
the number of fillings received for these transactions is approximately
6,734.\2\
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\1\ These factors include the extent of the filing person's
United States operations; the number of different industries in
which the filing person is engaged; the firm's prior experience and
familiarity with the premerger notification program; the existence
of horizontal overlays or vertical relationships in the businesses
in which the parties to the transaction derive revenue, and the
organizational structure and recordkeeping system of the reporting
entities.
\2\ For example, of the 3622 transactions reported, 164 were
joint ventures, (c)(6) transactions or (c)(8) transactions; only one
filing is required for each transaction. If the remaining 3458,
approximately 80 percent, or 2766, require two filings per
transaction: one each from the acquiring person and the acquired
person. The other 20 percent (692) represent certain transactions
for which the consideration given is voting stock. A typical example
of these transactions is the acquisition of company B's voting stock
by company A. As payment for the B stock, A will give the B
shareholders certain shares of company A stock. A shareholder of B
will acquire an amount of company A stock that will require the B
shareholder to submit a separate filing as an acquiring person. For
HSR purposes, the company A/company B filings make up transactions,
and the B shareholder/company A filings comprise a second
transaction. However, company A generally needs to submit only one
filing for the two transactions. Therefore the two transactions
require three filings, computed as 1.5 filings per transaction. (The
1.5 figure is a slight overestimation, since in some cases more than
one shareholder of company B has a fling obligation as an acquiring
person. Each shareholder's notification is treated as a separate
transactions, and company A's filing as an acquiring person serves
as the acquired party's filing for each of the shareholder
transactions. Thus, for example, four transactions--a primary
transaction with three related shareholder transactions--may have a
total of only five filings.)
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Estimated Labor Costs
Using the burden hours estimated above, the total cost associated
with the Rule and Form would be approximately $78,132,000 (260433 hours
x $300 hour). To verify this cost estimate, staff conducted an
informal survey of actual billings by several antitrust practitioners
for preparation of the Form.\3\ These estimates, based on the type and
complexity of each filing \4\ closely approximated our estimate, based
on burden hours. This information is summarized below. Only the first
category, the index filing, has been terminated on an hourly fee basis.
The remaining figures are calculated on the following basis:
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\3\ The $45,000 Hart-Scott-Rodino filing fee is not included in
these cost estimates because the fee does not fall within either of
the two cost categories defined by OMB: (1) Total hour burden and
annualized costs of hour burden (labor), and (2) non-labor costs,
consisting of total capital and start-up costs and total operation
and maintenance costs. See OMB Instructions for Completing OMB Form
83-I.
\4\ The survey was based on number of filings because each side
to transaction is represented by a different law firm. Therefore,
practitioners do not have cost information relating to an entire
transaction.
6734 filings minus 59 index filings = 6675
Index filing: 59 x $600 (2 hours @ $3.00/hr) + $35400
Simple filings ([35% x 6675] x $2000) + 4,672,000
Moderately complex filings ([60% x 6675] x $15,000) = 60,075,000
Very complex filings ([5% x 6675] x $50,000) = 16,700.000
Total = $81,482,400
This estimate is comparable to, although slightly higher than, our
estimate of $78,132,000. We conservatively have adopted the $81,482.400
estimate as the total annual labor cost.
Esimated Capital or Other Non-Labor Costs
The Rule imposes no current start-up costs and minimal capital
costs. The rule first took effect in 1979, so law firms and companies
already have incurred any necessary start-up costs associated with
filing the Form. Moreover, law firms already have access, for other
business purposes, to the ordinary office equipment needed for
compliance, and the Rule has no consequential effect on the cost of
operating and maintaining that equipment.
[[Page 36879]]
2. Title--Negative Option Plans by Sellers in Commerce (``Negative
Option Rule'') 16 CFR Part 425--(OMB Control Number 3084-0104)--
Extension
The Negative Option Rule protects consumers who participate in
negative option plus (e.g., record or book ``clubs''), contractual
arrangements whereby a seller periodically ships merchandise to
subscribers without an affirmative order by the subscriber. The Rule
requires sellers to send an advance notice to subscribers describing
merchandise offered for sale. The subscriber may instruct the seller,
in accordance with the terms of the plan, to refrain from shipping the
merchandise. The Rule also requires that promotional materials disclose
the terms of membership clearly and conspicuously, and establish
procedures for the administration of such ``negative option'' plans.
Estimated Annual Burden Hours
The Rules's estimated annual burden is approximately 14,375 hours
per day. We estimate that approximately 175 existing clubs spend about
75 hours each to comply with the Rule's disclosure requirements, for a
total of 13,125 per year (175 clubs x 75 hours).
We have revised the number of hours from 125 to 75 hours per year
for each existing club to comply with the information collection
requirements contained in the Rule. These clubs should be familiar with
the Rule, which has been in effect since 1974, so their ``burden'' of
compliance has diminished over the years. Also, comments provided to
the FTC indicate that a substantial portion of the existing clubs
likely would not make these disclosures absent any regulatory
requirement because the Rule has assisted in fostering long-term
relationships with consumers.
In addition, approximately 10 new clubs come into existence each
year. These clubs spend about 125 hours complying with the Rule, making
the total hours that new clubs spend per year 1,250 (10 new clubs x
125 hours). For new clubs, we have retained the estimate of
approximately 125 hours to comply with the rule (including start up-
time). The total of 14,375 hours per year for both existing and new
clubs is a reduction from 15,000 burden hours that the FTC estimated in
1995.
Estimated Labor Costs
Total labor costs are approximately $367,697 per year. According to
the Bureau of Labor Statistics, the average compensation for
advertising managers is $27.88 per hour. Compensation for clerical
personnel is approximately $10.00 per hours. Assuming that managers
perform the bulk of the work, while electric personnel perform some
associated tasks, such as placing advertisements and responding to
inquiries about offering or prices, the total cost to the industry for
the Rule's paperwork requirements would be approximately $367,497 (65
hours managerial time x 175 existing negative option plans x $27.88
per hour = $317,135) plus (10 hours clerical time x 175 existing
negative option plans x $10.00 per hour - $17,500) plus (115 hours
managerial time x 10 new negative option plans x $27.88 per hour =
$32,062) plus (10 hour clerical time x 10 new negative option plans
x $10.00 = $1,000).
Estimated Capital or Other Non-Labor Costs
Because the Rule has been in effect since 1974, the vast majority
of the negative option clubs have no current start-up costs. For the
few new clubs that enter the market each year, the capital and start-up
costs. For the few new clubs that enter the market each year, the
capital and start-up costs associated with the Rule's disclosure
requirements, beyond the additional labor costs discussed above, are de
minimis. Negative option clubs already have access to the ordinary
office equipment necessary for compliance with the Rule.
Similarly, the Rule imposes few, if any, printing and distribution
costs. the required disclosures generally constitute only a small
addition to the materials that a prospective subscriber sends to the
seller to solicit enrollment in a negative option plan. Because
printing and distribution costs are incurred anyway to market the
product, inserting the required disclosures constitutes only a de
minimis incremental expense.
3. Title: Power Output Claims for Amplifiers Utilized in Home
Entertainment Products, 16 CFR part 432--(OMB Control Number 4084-
0105)--Extension
The Amplifier Rule assists consumers by requiring disclosure of
four performance characteristics whenever representations are made
concerning power output, power band or power frequency, and distortion
characteristics of home audio equipment. The Rule also specifies the
test conditions to be used to obtain the FTC disclosures.
Estimated Burden Hours
The annual burden is approximately 1,500 hours. the Rule's
provisions require affected entities to test the power output of
amplifiers in accordance with specified FTC protocol. Approximately 300
new amplifiers and receivers come on the market each year. Since high
fidelity manufacturers routinely conduct performance tests as part of
any new product development, the Rule imposes incremental costs only to
the extent that the FTC protocol is more time-consuming than
alternative testing procedures. Specifically, a warm up
(``precondition'') period that the Rule requires before measurements
are taken may add approximately one hour to the time testing entails.
Thus, we estimate that the Rule imposes approximately 300 hours (1 hour
x 300 new products) of added testing burden annually.
The Rule requires disclosures if an advertisement makes a power
output claim. Assuming that ten advertisements per magazine are placed
each month in ten existing magazines carrying audio equipment
advertisements, we estimate that approximately 1,200 magazine
advertisements annually would be required to carry the FTC disclosures.
The cost of these disclosures is limited to the time needed to draft
and review the language pertaining to power output specifications.
Because this Rule became effective in 1974, and because members of
the industry are familiar with its requirements, compliance is less
burdensome today. Accordingly, we estimate the time involved for this
task to be a maximum of 1 hour per advertisement, for a total burden of
1,200 hours. The total annual burden impose by the Rule is therefore
approximately 1,500 burden hours. (300 testing hours + 1,200 disclosure
hours). This is a reduction from 2,700 burden hours estimated in 1995.
Estimated Labor Costs
According to staff at the Bureau of Labor Statistics, the average
hourly compensation for electronics engineers in the industry is
$28.73, and the average hourly compensation for marketing, advertising
and public relations managers is $27.88. Generally, electronics
engineers perform the testing of amplifiers and receivers (300 hours
x $28.73 = $8,619.00), and marketing, advertising or public relations
managers prepare advertisements (including required disclosures) (1,200
hours x $27.88 = $33,456.00). Based on this information, we estimate
the cost to the industry for the Rule's paperwork requirements to be
$42,075.00 per year ($33,456.00 + $8,619.00).
[[Page 36880]]
Estimated Capital or Other Non-Labor Costs
The Rule imposes no capital or other non labor costs because its
requirements are incidental to testing and advertising done in the
ordinary course of business.
4. Title: Disclosure Requirements and Prohibitions Concerning
Franchising and Business Opportunity Ventures (``Franchise Rule''),
16 CFR Part 436--(OMB Control Number 3084-0107)--Extension
The Franchise Rule requires franchisors and franchise brokers to
furnish to prospective investors a disclosure document that provides
information relating to the franchisor, the franchisor's business, and
the nature of the proposed franchise relationship, as well as
additional information about any claims concerning actual or potential
sales, income, or profits for a prospective franchisee (``earnings
claims''). Franchisors must also preserve the information that forms a
reasonable basis for such claims. The Rule is designed to help protect
potential investors from fraudulent claims.
Estimatd Annual Burden Hours
The current public disclosure and recordkeeping burden for
collections of information contained in the Rule is 36,200 hours. This
figure may change depending upon Commission action on the Advance
Notice of Proposed Rulemaking (``ANPR'') in the Federal Register,
announcing the Commission's intention to consider amending the Rule.
See 62 Fed. Reg. 9115 (February 28, 1997).
A review of the trade publications and information from state
regulatory authorities shows that approximately 5,000 American
franchise systems, consisting of 2,500 business format franchises and
2,500 business opportunity sellers, currently exist.\5\ We have
calculated burden based on this estimate, although some of these
franchisors, for a variety of reasons, are not covered by the Rule in
certain situations (e.g., when a franchisee buys bona fide inventory
but pays no franchisor fees).
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\5\ These figures have been revised since the notice published
January 8, 1999, requesting an OMB extension of this Rule. See 64 FR
1203. The new figures reflect calculations more recently prepared by
staff.
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Estimated Annual Costs
Labor Costs
The Rule's required disclosure document provides franchisees with
information on twenty broad-ranging subjects that affect the
franchisors, the franchisors's business, and the nature of the proposed
franchise relationship. This includes not only generally available
information, such as the official name and address and principal place
of business of the franchisor, but also less commonly available
information such as, among other things, the previous 5 years business
experience of each of the franchisors's current directors and executive
officers and whether any of these individuals has been convicted of a
felony or embezzlement, or has filed in bankruptcy or been adjudged
bankrupt during the previous 7 years. All information in the disclosure
statement must be updated and revised according to the express time
requirements set forth in the Rule.
An attorney likely would prepare or update this disclosure
document. Accordingly, we estimate the attorney-related labor costs of
complying with the Rule's requirements as follows: 500 new franchisors
each incur attorney's fees of approximately $250 per hour for 30 hours
to develop the disclosure document, and 4,500 current franchisors each
incur attorney's fees of approximately $250 per hour of 3 hours to
update the disclosure document, for a total burden of 28,500 hours and
a total cost of $7,125,000.
Printing the Disclosure Document
To comply specifically with the Rule, franchisors must incur costs
to print and distribute the disclosure document. These costs vary based
upon the length of the disclosures and the number of copies produced to
meet the expected demand. We estimate, however, that 2,500 business
format and product franchisors print and mail 100 disclosure documents
per year at a cost of $35.00 per document. Further, we estimate that
another 2,500 business opportunity sellers print and mail 100 documents
per year at a cost of $15.00 per document, for a total cost of
$12,500.000.
Cover Sheet
The franchisor also must provide and disseminate an FTC cover sheet
that identifies the franchisor, the date the document is issued, a
table of contents, and a notice that tracks the language specifically
provided in the Rule. Some of the language in the cover sheet is
supplied by the government for the purpose of disclosure to the public,
and is thus excluded from the definition of ``collection of
information'' under the PRA. 5 CFR 1320.3(c)(2). Nonetheless,
franchisors must spend some time in providing the rest of the required
information. Further, there are reproduction and mailing costs.
Accordingly, we estimate that 5,000 franchisors complete and
disseminate 100 cover sheets per year at a cost of approximately $.55
per cover sheet, or a total cost of approximately $277,000.
Recordkeeping Costs
The franchisor may require additional recordkeeping of information
pertaining to the sale of franchise in non-registration states. At
most, franchisors would spend an additional hour each year at a cost of
$10 per hour to save material to show potential franchisees. This would
result in a total of 5,000 hours per year for all affected entities at
a total cost of $50,000.
Estimate of Capital and Other Non-Labor Costs
There are no significant current capital or other non-labor costs
associated with this Rule.
5. Title: Labeling and Advertising of Home Insulation (``R-Value
Rule''), 16 CFR Part 460--(OMB Control Number 3084-0109)--Extension
The R-Value Rule establishes uniform standards for the
substantiation and disclosure of accurate, material product information
about the thermal performance characteristics of home insulation
products. The R-value of an insulation signifies the insulation's
degree of resistance to the flow of heat. This information tells
consumers how well a product is likely to perform as an insulator and
allows consumers to determine whether the cost of the insulation is
justified.
Estimated Annual Burden Hours
The Rule's requirements include product testing, recordkeeping, and
third-party disclosure's on labels, fact sheets, advertisements and
other promotional materials. These requirements apply to certain
manufacturers and their testing laboratories; home insulation
installers; new home sellers who make energy savings claims; and
retailers who sell home insulation for do-it-yourself installation by
consumers.
Based on information provided by members of the insulation
industry, staff estimate that the Rule affects: (1) 150 insulation
manufacturers and their testing laboratories; (2) 1,500 installers who
sell home insulation; (3) 130,000 new home builders/sellers of site-
built home and approximately 7,000 dealers who sell manufactured
housing; and (4) 25,000 retail sellers who sell home insulation for
installation by consumers.
Manufacturers and Testing Laboratories: Under the Rule's testing
[[Page 36881]]
requirements, manufacturers must test each insulation product for its
R-value. The test takes approximately 2 hours. Approximately 15 of the
150 insulation manufacturers in existence introduce one new product
each year. The total annual testing burden is therefore approximately
30 hours (15 manufacturers x 2 hours per test).
As for third-party disclosure requirements in advertising and other
promotional materials, staff estimate that most manufacturers spend an
average of approximately 20 hours per year to comply with this
requirement. Only the five or six largest manufacturers require
additional time (approximately 80 hours each). Thus, the annual third-
party disclosure burden for manufacturers is approximately 3,360 hours
(144 manufacturers x 20 hours + 6 manufacturers x 80 hours).
While the Rule imposes recordkeeping requirements, most
manufacturers and their testing laboratories keep these records of
testing in the ordinary course of business. Staff estimate that no more
than one additional hour per year per manufacturer is necessary to
comply with this requirement, for an annual recordkeeping burden of
approximately 150 hours (150 manufacturers x 1 hour).
Installers: Installers are required to show the manufacturers'
insulation fact sheet to retail consumers prior to purchase. Installers
must also disclose information in contracts or receipts concerning the
R-value and the amount of insulation to be installed. Staff estimate
that two minutes per sales transaction is sufficient for complying with
these requirements. Approximately 835,000 retrofit insulations are
installed by approximately 1,500 installers per year, and therefore,
the annual burden is approximately 27,833 hours (835,000 sales
transactions x 2 minutes). Staff also estimate that one hour per year
per installer is sufficient for including required disclosures in
advertisements and other promotional materials. The burden for this
requirement is approximately 1,500 hours per year (1,500 installers x
1 hour).
Also, installers must keep records that indicate the substantiation
relied upon for savings claims. The addition time for complying with
this requirement is minimal, approximately 5 minutes per year per
installer, for a total of approximately 125 hours (1,500 installers x
5 minutes).
New Home Sellers: New home sellers must make contract disclosures
concerning the type, thickness and R-value of the insulation they
install in each part of a new home. Staff estimate that no more than
one minute per sales transaction is required to comply with this
requirement, for a total annual burden of approximately 283,333 hours
(1.7 million new home sales x 1 minute).
New home sellers who make energy savings claims must also keep
records regarding the substantiation relied upon for those claims.
Because few new home sellers make these claims, and the ones that do
would likely keep these records anyway in the ordinary course of
business, staff estimate that the one minute burden for disclosures
would be more than adequate to cover this recordkeeping requirement, as
well.
Retailers: The Rule requires that the approximately 25,000
retailers who sell home insulation make fact sheets available to
consumers prior to purchase. This can be accomplished by, e.g., placing
copies in a display rack, or keeping copies in a binder on a service
desk with an appropriate notice. Replenishing or replacing fact sheets
takes approximately one hour per year per retailer, for a burden
estimate of approximately 25,000 annual hours (25,000 retailers x 1
hour).
The Rule also requires specific disclosures in advertisements or
other promotional materials to ensure that the claims are fair and not
deceptive. This burden is extremely small because retailers typically
use advertising copy provided by the insulation manufacturer, and even
when retailers prepare their own advertising copy, the Rule provides
some of the language to be used. Accordingly, approximately one hour
per year per retailer is sufficient for compliance with this
requirement, for a total annual burden of approximately 25,000 hours.
Retailers who make energy savings claims in advertisements or other
promotional materials must keep records that indicate the
substantiation they are relying upon. Because few retailers make these
types of promotional claims and because the Rule permits retailers to
rely on the insulation manufacturer's substantiation data for any
claims that are made, the additional recordkeeping burden is de
minimis. The time calculated for disclosures, above, would be more than
adequate to cover any burden imposed by this recordkeeping requirement.
To summarize, staff estimates that the Rule imposes a total of
366,331 burden hours, as follows: 150 recordkeeping and 3,390 testing
and disclosure hours for manufacturers; 125 recordkeeping and 29,333
disclosure hours for installers; 283,333 disclosure hours for new home
sellers; and 50,000 disclosure hours for retailers. This figure has
been rounded to 366,400 burden hours.
Estimated Annual Labor Costs:
The total annual labor costs for the Rule's information collection
requirements is $7,290,030, derived as follows: $600 for testing, based
on 30 hours for manufacturers (30 hours x $20 per hour for skilled
technical personnel); $2,750 for complying with the recordkeeping
requirements of the Rule, based on 275 hours (275 hours x $10 per
hour for clerical personnel); $33,360 for manufacturers' compliance
with third-party disclosure requirements, based on 3,360 hours (3,360
hours x $10 per hour for clerical personnel); and 47,253,320 for
compliance by installers, new home (362,666 hours x $20 per hour for
sales persons).
Estimate of Capital and Other Non-Labor Costs
There are no significant current capital or other non-labor costs
associated with this Rule. Because the Rule has been in effect since
1980, members of the industry are familiar with its requirements and
already have in place the equipment for conducting tests and storing
records. New products are introduced infrequently. Because the required
disclosures are placed on packaging or on the product itself, the
Rule's additional disclosure requirements do not cause industry members
to incur any significant additional non-labor associated costs.
6. Title: FTC Administrative Activities (OMB Control Number 3084-
0047)--Extension
Currently, the FTC has OMB clearance for certain administrative
and/or procedural activities relating to: (1) FTC procurement
activities; (2) the document order form used by the FTC public
reference branch; (3) applications to the Commission, including
applications and notices contained in the Commission's Rules of
Practice (primarily Parts I, II, and IV); and (4) rules governing
claims against the FTC under the Equal Access to Justice Act.
The FTC seeks to delete items (1), (2), and (4). With respect to
item (1), OMB has advised the FTC that it must seek clearance only for
any agency-unique information collections that have been published as a
supplement to the Federal Acquisition Regulations. The FTC has no such
supplement and accordingly, there is no requirement to obtain OMB
approval. Deleting this item eliminates 1,000 of 2,300 hours estimated
in the FTC's 1995 submission for OMB Control No. 3084-0047.
[[Page 36882]]
With respect to item (2), FTC Form 14 is excluded from the PRA's
definition of ``information'' because the form asks only for the
respondent's name, address, a description of the records and the number
of copies requested. See 5 CFR 3(h)(1) (the definition of
``information'' excludes an ``affidavit'' or ``certification'' that
merely asks the respondent for identifying information such as his or
her name, address, the date, and the nature of the instrument), OMB
Implementing Guidance to the Paperwork Reduction Act of 1995
(Preliminary Draft), February 3, 1997. Deleting this item eliminates
another 1,000 of 2,300 hours.
With respect to item (4), the ``law enforcement'' exception of the
PRA excludes this category, because it involves collecting information
during the conduct of a Federal investigation, civil action,
administrative action, investigation, or audit with respect to a
specific party, or subsequent adjudicative or judicial proceedings
designed to determine fines or other penalties See 5 CFR 1320.4(a)(1)-
(3). Deleting this item eliminates another 200 hours of the 2,300 hours
previously estimated for this submission.
With respect to item (3), the FTC is requesting an extension for
those provisions covered by that category. Several of the Commission's
rules contain provisions that allow certain modifications to, or
exemptions from, a rule. For example, Part 901 of the Commission's
Rules, 16 CFR Part 901, implementing the Fair Debt Collection Practices
Act, 15 U.S.C. 1692, sets forth the procedures and standards for
approving petitions received from a state that is requesting permission
to apply state law in lieu of federal standards.
Also, the Commission recently amended Rule 4.11(e), 16 CFR 4.11(e),
which establishes procedures for agency review of compulsory process
issued to the Commission or its employees in matters to which the
agency is not a party. The revised rule requires requesters who seek
voluntary testimony by Commission employees to submit a statement in
support of their requests. This amendment increases the burden imposed
by ``FTC Administrative Activities'' by 24 hours and $6,000 per year.
On June 11, 1999, the FTC filed an OMB Form 83-C, Paperwork Reduction
Act Change Worksheet that reflected those increases.
The FTC also recently received approval from the Office of
Government Ethics (``OGE'') to use an alternative form (instead of OGE
Form 450, OMB clearance No. 3209-0006) for Commission consultants to
report financial and other conflicts of interest. This alternative
form, which requires a simple certification instead of a detailed
listing of the reporter's financial interests, is appropriate for FTC
consultants, most of whom work only on specific projects for short
periods of time, and many of whom serve without pay. While this form
will save FTC consultants several hours per year in complying with
financial disclosure and conflict of interest requirements, it also
will increase the burden attributed to the FTC by approximately 2 hours
per year because it replaces hours attributable to OGE. There is no
significant cost associated with completing the form.
Estimated Annual Burden Hours
Most applications to the Commission generally fall within the ``law
enforcement exception'' discussed above, and those that are not are
rare and any burden associated with them is de minimis. For example,
over the last decade, the Commission has received only one application
for an exemption under the Fair Debt Collection Practices Act
provisions. Staff has estimated that such a submission can be completed
well within 50 hours. Applications and notices to the Commission
contained in other rules (generally in Parts I, II, and IV of the
Commission's Rule of Practice) are also infrequent and difficult to
quantify. An example is a request for a waiver of costs for obtaining
Commission records. See 16 CFR 4.8(e). Nonetheless, in order to cover
any potential'' collections of information'' for which we have not
otherwise requested clearance, we are requesting a total of 100 burden
hours as an estimate of the time needed to submit any relevant
responses.
Estimated Annual Labor Costs
Based on 124 burden hours, and an hourly rate of $250 for attorney
time, we estimate the annual cost burden to be no more than $31,000.
There is no cost associated with the alternative financial reporting
form.
Estimated Capital and Start-Up Costs/Operation and Maintenance
Not applicable
John D. Graubert,
Acting General Counsel.
[FR Doc. 99-17313 Filed 7-7-99; 8:45 am]
BILLING CODE 6750-01-M
