[Federal Register Volume 59, Number 236 (Friday, December 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30248]


[[Page Unknown]]

[Federal Register: December 9, 1994]


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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 95-C0005]

 

Golden Gate Fireworks, Inc., a Corporation; Provisional 
Acceptance of a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Provisional Acceptance of a Settlement Agreement Under the 
Consumer Product Safety Act.

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SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Consumer Product Safety Act in 
the Federal Register in accordance with the terms of 16 CFR 1118.20(e)-
(h). Published below is a provisionally-accepted Settlement Agreement 
with Golden Gate Fireworks, Inc., a corporation.

DATES: Any interested person may ask the Commission not to accept this 
agreement or otherwise comment on its contents by filing a written 
request with the Office of the Secretary by December 27, 1994.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 95-C0005, Office of the 
Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT:
Dennis C. Kacoyanis, Trial Attorney, Office of Compliance and 
Enforcement, Consumer Product Safety Commission, Washington, DC 20207; 
telephone (301) 504-0626.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears 
below.

    Dated: December 5, 1994.
Sadye E. Dunn,
Secretary.

Settlement Agreement and Order

    1. Golden Gate Fireworks, Inc. (hereinafter, ``Golden Gate''), a 
corporation, enters into this settlement Agreement and Order 
(hereinafter, ``Settlement Agreement'') with the staff of the Consumer 
Product Safety Commission, and agrees to the entry of the Order 
described herein. The purpose of the Settlement Agreement is to settle 
the staff's allegations that Golden Gate knowingly violated sections 
4(a) and (c) of the Federal Hazardous Substances Act (FHSA), 15 U.S.C. 
1263(a) and (c).

I. The Parties

    2. The ``staff'' is the staff of the Consumer Product Safety 
Commission, an independent regulatory Commission of the United States 
established pursuant to section 4 of the Consumer Product Safety Act 
(CPSA), 15 U.S.C. 2053.
    3. Golden Gate is a corporation organized and existing under the 
laws of the State of California, since 1989. The firm's principal place 
of business is located at 1355 Market Street, San Francisco, CA 94103. 
From 1989 through approximately January, 1994, Golden gate was an 
importer and distributor of fireworks. Since approximately January, 
1994, Golden gate has been a marketing representative for Shiu Fung 
Fireworks Co., Ltd., a Hong Kong distributor of Black Cat brand 
fireworks.

II. Allegations of the Staff

    4. On three occasions between April 23, 1992, and April 21, 1993, 
Golden Gate introduced or caused the introduction into interstate 
commerce; or received in interstate commerce and delivered or proffered 
delivery thereof for pay or otherwise three different kinds of non-
complying fireworks (15,750 retail units) which are identified and 
described below:

------------------------------------------------------------------------
     Sample No.            Product        Entry date       Expt/Mfg     
------------------------------------------------------------------------
P-863-7080.........  Small Festival         04/23/92  Shiu Fung.        
                      Balls.                                            
R-863-7038.........  Artillery Shell...     03/23/93  Shiu Fung.        
R-863-7295.........  Twitter Glitter...     04/21/93  Shiu Fung.        
------------------------------------------------------------------------

    5. The firework device identified as Small Festival Balls, No. 
0008, Sample No. P-863-7080 in paragraph 4 above is subject to, but 
failed to comply with, the Commission's Fireworks Regulations, 16 CFR 
part 1507, in that when tested, it failed to comply with the fuse burn 
time requirement in 16 CFR 1507.3(a)(2).
    6. The firework device identified as Artillery Shell, No. BC-602, 
Sample No. R-863-7038 in paragraph 4 above is subject to, but failed to 
comply with, the Commission's Fireworks Regulations, 16 CFR part 1507, 
in that when tested, it failed to comply with the fuse burn time and 
pyrotechnic leakage requirements in 16 CFR 1507.3(a)(2) and 1507.5.
    7. The firework device identified as Twitter Glitter, No. 0530 B, 
Sample No. R-863-7295 in paragraph 4 above is subject to, but failed to 
comply with, the Commission's Fireworks Regulations, 16 CFR part 1507, 
in that when tested, it failed to comply with the fuse burn time and 
burnout/blowout requirements in 16 CFR 1507.3(a)(2) and 1507.6.
    8. Each of the fireworks identified in paragraph 4 above is a 
``banned hazardous substance'' pursuant to section 2(q)(1)(B) of the 
FHSA, 15 U.S.C. 1261(q)(1)(B); and 16 CFR part 1507.
    9. Golden Gate knowingly introduced or caused the introduction into 
interstate commerce; or received in interstate commerce and delivered 
or proffered delivery thereof for pay or otherwise, the banned 
hazardous fireworks identified in paragraph 4 above, in violation of 
sections 4(a) and (c) of the FHSA, 15 U.S.C. 1263(a) and (c).

III. Response of Golden Gate

    10. Golden Gate denies the allegations of the staff set forth in 
paragraphs 4 through 9 above. Golden Gate denies it knowingly, or 
otherwise, introduced or caused the introduction into interstate 
commerce; or received in interstate commerce and delivered or proffered 
delivery thereof for pay or otherwise the banned hazardous fireworks 
identified in paragraph 4 above, in violation of sections 4(a) and (c) 
of the FHSA, 15 U.S.C. 1263(a) and (c) and/or 16 CFR part 1507 et seq.

IV. Agreement of the Parties

    11. The Consumer Product Safety Commission has jurisdiction over 
Golden Gate and the subject matter of this Settlement Agreement under 
the following acts: Consumer Product Safety Act, 15 U.S.C. 2051 et 
seq., and the Federal Hazardous Substances Act, 15 U.S.C. 1261 et seq.
    12. The Commission and Golden Gate agree that this Agreement is 
entered into for the purposes of settlement only and does not 
constitute a determination by the Commission or an admission by Golden 
Gate that Golden Gate violated the FHSA and/or the Commission's 
regulations.
    13. Upon final acceptance of this Settlement Agreement by the 
Commission and issuance of the Final Order, Golden Gate knowingly, 
voluntarily, and completely waives any rights it may have in this 
matter (1) to an administrative or judicial hearing, (2) to judicial 
review or other challenge or contest of the validity of the 
Commission's actions, (3) to a determination by the Commission as to 
whether Golden Gate failed to comply with the FHSA as aforesaid, (4) to 
a statement of findings of fact and conclusions of law, and (5) to any 
claims under the Equal Access to Justice Act, 5 U.S.C. 504.
    14. For purposes of section 6(b) of the CPSA, 15 U.S.C. 2055(b), 
this matter shall be treated as if a complaint had issued, and the 
Commission may publicize the terms of the Settlement Agreement and 
Order.
    15. Upon provisional acceptance of this Settlement Agreement by the 
Commission, the Commission will place the Settlement Agreement and the 
Provisional Order on the public record, and publish it in the Federal 
Register in accordance with the procedures set forth in 16 CFR 
1118.20(e)-(h). If the Commission does not receive any written requests 
not to accept the Settlement Agreement within 15 days, the Settlement 
Agreement shall be deemed finally accepted and the Final Order shall be 
deemed issued on the 16th day.
    16. This Settlement Agreement may be used in interpreting the 
Provisional and Final Orders. Agreements, understandings, 
representations, or interpretations apart from those contained in this 
Settlement Agreement may not be used to vary or to contradict its 
terms.
    17. The provisions of the Settlement Agreement and Final Order 
shall apply to Golden Gate and each of its successors and assigns.
    18. Upon final acceptance of this Agreement, the Commission shall 
issue the Final Order.

    Dated: October 20, 1994.

    Respondent Golden Gate Fireworks, Inc.

    By:
Ralph J. Apel,
President, Golden Gate Fireworks, Inc., 1355 Market Street, Suite 405, 
San Francisco, CA 94103.

    Commission staff.
David Schmeltzer,
Assistant Executive Director, Office of Compliance and Enforcement.
Eric L. Stone,
Acting Director, Division of Administrative Litigation, Office of 
Compliance and Enforcement.

    Dated: October 24, 1994.

    By:
Dennis C. Kacoyanis,
Trial Attorney, Division of Administrative Litigation, Office of 
Compliance and Enforcement.

Order

    Upon consideration of the Settlement Agreement entered into between 
respondent Golden Gate Fireworks, Inc., a corporation, and the staff of 
the Consumer Product Safety Commission; and the Commission having 
jurisdiction over the subject matter and Golden Gate Fireworks, Inc; 
and it appearing that the Settlement Agreement and Order is in the 
public interest, it is
    Ordered, that the Settlement Agreement be and hereby is accepted; 
and it is
    Further Ordered, that upon final acceptance of the Settlement 
Agreement and Order, Golden Gate Fireworks, Inc. shall pay to the 
Commission a civil penalty in the amount of ten thousand and 00/100 
dollars ($10,000.00) in two (2) payments consisting of one (1) payment 
of two thousand five hundred dollars and 00/100 ($2,500.00) and one (1) 
payment of seven thousand five hundred and 00/100 dollars ($7,500.00) 
each. The first payment of two thousand five hundred and 00/100 dollars 
($2,500.00) shall be due within twenty (20) days after service of the 
Final Order of the Commission accepting the Settlement Agreement, 
hereinafter, the ``anniversary date.'' The second payment of seven 
thousand five hundred and 00/100 dollars ($7,500.00) shall be made 
within 365 days of the anniversary date. Upon the failure by Golden 
Gate Fireworks, Inc. (a) the entire amount of the civil penalty shall 
be due and payable, and (b) interest on the outstanding balance shall 
accrue and be paid at the federal legal rate of interest under 
provisions of 28 U.S.C. 1961 (a) and (b).
    Provisionally accepted and Provisional Order issued on the 5th day 
of December, 1994.

    By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 94-30248 Filed 12-8-94; 8:45 am]
BILLING CODE 6355-01-M