Submission for OMB Review; Comment Request

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: [email protected].

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