[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]


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CONSUMER PRODUCT SAFETY COMMISSION

16 CFR Part 1020


Small Business

AGENCY: Consumer Product Safety Commission.

ACTION: Final rule.

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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

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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;

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    (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