Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension, 59629-59631 [E8-24021]
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Federal Register / Vol. 73, No. 197 / Thursday, October 9, 2008 / Notices
in a position to effectively coordinate
spectrum for international broadcasters
or to act for entities in times of
frequency interference or adverse
propagation conditions.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. E8–24007 Filed 10–8–08; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
Notice of Public Information
Collection(s) Being Reviewed by the
Federal Communications Commission
for Extension Under Delegated
Authority, Comments Requested
sroberts on PROD1PC70 with NOTICES
October 3, 2008.
SUMMARY: The Federal Communications
Commission, as part of its continuing
effort to reduce paperwork burden
invites the general public and other
Federal agencies to take this
opportunity to comment on the
following information collection(s), as
required by the Paperwork Reduction
Act of 1995, 44 U.S.C. 3501–3520. An
agency may not conduct or sponsor a
collection of information unless it
displays a currently valid control
number. No person shall be subject to
any penalty for failing to comply with
a collection of information subject to the
Paperwork Reduction Act (PRA) that
does not display a valid control number.
Comments are requested concerning (a)
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
burden estimate; (c) ways to enhance
the quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on the respondents,
including the use of automated
collection techniques or other forms of
information technology.
DATES: Persons wishing to comment on
this information collection should
submit comments December 8, 2008. If
you anticipate that you will be
submitting comments, but find it
difficult to do so within the period of
time allowed by this notice, you should
advise the contact listed below as soon
as possible.
ADDRESSES: Direct all PRA comments to
Nicholas A. Fraser, Office of
Management and Budget (OMB), (202)
395–5887, or via fax at 202–395–5167,
or via the Internet at
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Jkt 217001
Nicholas_A._Fraser@omb.eop.gov and
to Judith-B.Herman@fcc.gov, Federal
Communications Commission (FCC). To
submit your comments by e-mail send
them to: PRA@fcc.gov.
To view a copy of this information
collection request (ICR) submitted to
OMB: (1) Go to the Web page https://
www.reginfo.gov/public/do/PRAMain,
(2) look for the section of the Web page
called ‘‘Currently Under Review’’, (3)
click the downward-pointing arrow in
the ‘‘Select Agency’’ box below the
‘‘Currently Under Review’’ heading, (4)
select ‘‘Federal Communications
Commission’’ from the list of agencies
presented in the ‘‘Select Agency’’ box,
(5) click the ‘‘Submit’’ button to the
right of the ‘‘Select Agency’’ box and (6)
when the list of FCC ICRs currently
under review appears, look for the title
of this ICR (or its OMB Control Number,
if there is one) and then click on the ICR
Reference Number to view detailed
information about this ICR.
FOR FURTHER INFORMATION CONTACT: For
additional information, send an e-mail
to Judith B. Herman at 202–418–0214.
SUPPLEMENTARY INFORMATION:
OMB Control No.: 3060–0093.
Title: Application for Renewal of
Radio Station license for Experimental
Radio Service.
Form No.: FCC Form 405.
Type of Review: Extension of a
currently approved collection.
Respondents: Business or other forprofit and not-for-profit institutions.
Number of Respondents: 243
respondents; 243 responses.
Estimated Time Per Response: 2.25
hours.
Frequency of Response: On occasion
and every two year reporting
requirements and third party disclosure
requirement.
Obligation to Respond: Required to
obtain or retain benefits. Statutory
authority for this information collection
(IC) is contained in sections 4(i), 301,
302, 303(e), 303(f), and 303(r), of the
Communications Act of 1934, as
amended; 47 U.S.C. Sections 154(i), 301,
302, 303(e), 303(f) and 303(r).
Total Annual Burden: 547 hours.
Annual Cost Burden: $63,180.
Privacy Act Impact Assessment: N/A.
Nature and Extent of Confidentiality:
Applicants may request that any
information supplied be withheld from
public inspection, e.g., granted
confidentiality, pursuant to 47 CFR
0.459 of the Commission’s rules.
Needs and Uses: The Commission
will submit this information collection
as an extension (no change in reporting
and third party disclosure requirements)
after this 60 day comment period in
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59629
order to obtain the full three year
clearance from the OMB. There is a
slight adjustment increase to the annual
estimated cost burden (+$1,180).
FCC Form 405 is used by the
Experimental Radio Service to apply for
renewal of radio station licenses at the
FCC. Section 307 of the
Communications Act of 1934, as
amended, limits the term of radio
licenses to five years and requires that
written applications be submitted for
renewal. The regular license period for
stations in the Experimental Radio
Service is either two or five years.
The information submitted on FCC
Form 405 is used by Commission staff
to evaluate the applicant/licensee’s need
for a license renewal. In performing this
function, staff performs analysis of the
renewal request as compared to the
original license grant to ascertain if any
changes are requested. If so, additional
analysis is performed to determine if
such changes met the requirements of
the rules of the Experimental Radio
Service for interference free operation. If
needed, the collected information is
used to coordinate such operation with
other Commission bureaus or other
Federal Agencies. All applications are
also analyzed on their merits regarding
whether they meet the general
requirements for an Experimental
license. These requirements are set out
in 47 CFR part 5.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. E8–24008 Filed 10–8–08; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL TRADE COMMISSION
Agency Information Collection
Activities; Submission for OMB
Review; Comment Request; Extension
Federal Trade Commission
(‘‘Commission’’ or ‘‘FTC’’).
ACTION: Notice.
AGENCY:
SUMMARY: The information collection
requirements described below will be
submitted to the Office of Management
and Budget (‘‘OMB’’) for review, as
required by the Paperwork Reduction
Act (‘‘PRA’’). The FTC is seeking public
comments on its proposal to extend
through October 31, 2011, the current
PRA clearance for information
collection requirements contained in the
Commission’s Business Opportunity
Rule (‘‘Rule’’). The current clearance
expires on October 31, 2008.
DATES: Comments must be submitted on
or before November 10, 2008.
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Federal Register / Vol. 73, No. 197 / Thursday, October 9, 2008 / Notices
Interested parties are
invited to submit written comments
electronically or in paper form.
Comments should refer to ‘‘16 CFR Part
437: Paperwork Comment, FTC File No.
P024404’’ to facilitate the organization
of comments. Please note that comments
will be placed on the public record of
this proceeding—including on the
publicly accessible FTC website, at
(https://www.ftc.gov/os/
publiccomments.shtm) — and therefore
should not include any sensitive or
confidential information. In particular,
comments should not include any
sensitive personal information, such as
an individual’s Social Security Number;
date of birth; driver’s license number or
other state identification number, or
foreign country equivalent; passport
number; financial account number; or
credit or debit card number. Comments
also should not include any sensitive
health information, such as medical
records or other individually
identifiable health information. In
addition, comments should not include
any ‘‘[t]rade secrets and commercial or
financial information obtained from a
person and privileged or
confidential. . . .,’’ as provided in Section
6(f) of the FTC Act, 15 U.S.C. 46(f), and
Commission Rule 4.10(a)(2), 16 CFR
4.10(a)(2). Comments containing
material for which confidential
treatment is requested must be filed in
paper form, must be clearly labeled
‘‘Confidential,’’ and must comply with
FTC Rule 4.9(c).1
Because paper mail addressed to the
FTC is subject to delay due to
heightened security screening, please
consider submitting your comments in
electronic form. Comments filed in
electronic form should be submitted by
using the following weblink: (https://
secure.commentworks.com/ftcbizopPRA) (and following the
instructions on the web-based form). To
ensure that the Commission considers
an electronic comment, you must file it
on the web-based form at the weblink
(https://secure.commentworks.com/ftcbizopPRA) If this Notice appears at
(https://www.regulations.gov/search/
index.jsp), you may also file an
electronic comment through that
website. The Commission will consider
all comments that regulations.gov
forwards to it. You may also visit the
sroberts on PROD1PC70 with NOTICES
ADDRESSES:
1 FTC Rule 4.2(d), 16 CFR 4.2(d). The comment
must be accompanied by an explicit request for
confidential treatment, including the factual and
legal basis for the request, and must identify the
specific portions of the comment to be withheld
from the public record. The request will be granted
or denied by the Commission’s General Counsel,
consistent with applicable law and the public
interest. See FTC Rule 4.9(c), 16 CFR 4.9(c).
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FTC website at https://www.ftc.gov to
read the Notice and the news release
describing it.
A comment filed in paper form
should include the ‘‘16 CFR Part 437:
Paperwork Comment, FTC File No.
P024404’’ reference both in the text and
on the envelope, and should be mailed
or delivered to the following address:
Federal Trade Commission, Office of the
Secretary, Room H-135 (Annex J), 600
Pennsylvania Avenue, NW, Washington,
DC 20580. The FTC is requesting that
any comment filed in paper form be sent
by courier or overnight service, if
possible, because U.S. postal mail in the
Washington area and at the Commission
is subject to delay due to heightened
security precautions.
The FTC Act and other laws the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. The Commission will
consider all timely and responsive
public comments that it receives,
whether filed in paper or electronic
form. Comments received will be
available to the public on the FTC
website, to the extent practicable, at
(https://www.ftc.gov/os/
publiccomments.shtm). As a matter of
discretion, the Commission makes every
effort to remove home contact
information for individuals from the
public comments it receives before
placing those comments on the FTC
website. More information, including
routine uses permitted by the Privacy
Act, may be found in the FTC’s privacy
policy, at (https://www.ftc.gov/ftc/
privacy.shtm).
All comments should additionally be
submitted to: Office of Management and
Budget, Attention: Desk Officer for the
Federal Trade Commission. Comments
should be submitted via facsimile to
(202) 395-6974 because U.S. Postal Mail
is subject to lengthy delays due to
heightened security precautions.
FOR FURTHER INFORMATION CONTACT:
Karen Hobbs, Attorney, Division of
Marketing Practices, Bureau of
Consumer Protection, (202) 326-3587,
Federal Trade Commission, 600
Pennsylvania Avenue, N.W.,
Washington D.C. 20580.
SUPPLEMENTARY INFORMATION: On July 7,
2008, the FTC sought comment on the
information collection requirements
associated with the Business
Opportunity Rule, 16 CFR Part 437
(Control Number: 3084-0142).2 No
comments were received. Pursuant to
the OMB regulations, 5 CFR Part 1320,
that implement the PRA, 44 U.S.C.
2
PO 00000
73 FR 38451 (July 7, 2008).
Frm 00035
Fmt 4703
Sfmt 4703
3501-3521, the FTC is providing this
second opportunity for public comment
while seeking OMB approval to extend
the existing paperwork clearance for the
Rule. All comments should be filed as
prescribed in the ADDRESSES section
above, and must be received on or
before November 10, 2008.
The Rule is designed to ensure that
prospective purchasers of a business
opportunity receive information that
will help them evaluate the opportunity
that is presented to them. Part 437 was
promulgated in March of 2007,
concurrently with the amendment of the
Franchise Rule, Part 436. Part 437
mirrors the requirements and
prohibitions of the original Franchise
Rule, and imposes no additional
disclosure or recordkeeping obligations
or prohibitions.3 The Rule requires
business opportunity sellers to furnish
to prospective purchasers a disclosure
document that provides information
relating to the seller, the seller’s
business, the nature of the proposed
business opportunity, as well as
additional information regarding any
claims about actual or potential sales,
income, or profits for a prospective
business opportunity purchaser. The
seller must also preserve information
that forms a reasonable basis for such
claims. These requirements are subject
to the PRA. The FTC is seeking to
extend the current PRA clearance to
October 31, 2011.4
Estimated annual hours burden: 16,750
hours
Based on a review of trade
publications and information from state
regulatory authorities, staff believes
that, on average, from year to year, there
are approximately 2,500 business
opportunity sellers, with perhaps about
10% of that total reflecting an equal
amount of new and departing business
entrants.
3 In March of 2008, the Commission published
the Business Opportunity Rule Revised Notice of
Proposed Rulemaking, 73 FR 16110 (March 26,
2008) (‘‘Notice’’). The Notice proposed amending
the Business Opportunity Rule substantially, and
would, among other things, reduce the number of
required disclosures by sellers of business
opportunities to prospective purchasers.
Conversely, the Notice proposed amending the rule
to expand the coverage of entities required to make
disclosures to include a broader array of business
opportunities than those covered by the original
Franchise Rule. For now, however, only those
businesses opportunities covered by the original
Franchise Rule—such as vending machine and rack
display opportunities—remain covered under part
437.
4 The current clearance under recently assigned
OMB Control Number 3084-0142 covers the terms
of the original Franchise Rule as applied to business
opportunity sellers. The portion of clearance
applicable to franchisors under Part 436 is
separately assigned to pre-existing OMB Control
Number 3084-0107.
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Federal Register / Vol. 73, No. 197 / Thursday, October 9, 2008 / Notices
The burden estimates for compliance
will vary depending on the particular
business opportunity seller’s prior
experience with the original Franchise
Rule. Staff estimates that 250 or so new
business opportunity sellers will enter
the market each year, requiring
approximately 30 hours each to develop
a Rule-compliant disclosure document.
Thus, staff estimates that the cumulative
annual disclosure burden for new
business opportunity sellers will be
approximately 7,500 hours. Staff further
estimates that the remaining 2,250
established business opportunity sellers
will require no more than
approximately 3 hours each to update
their disclosure document. Accordingly,
the cumulative estimated annual
disclosure burden for established
business opportunity sellers will be
approximately 6,750 hours.
Business opportunity sellers may
need to maintain additional
documentation for the sale of business
opportunities in states not currently
requiring these records as part of their
regulation of business opportunity
sellers. This might entail an additional
hour of recordkeeping per year.
Accordingly, staff estimates that
business opportunity sellers will
cumulatively incur approximately 2,500
hours of recordkeeping burden per year
(2,500 business opportunity sellers x 1
hour).
Thus, the total burden for business
opportunity sellers is approximately
16,750 hours (7,500 hours of disclosure
burden for new business opportunity
sellers + 6,750 hours of disclosure
burden for established business
opportunity sellers + 2,500 of
recordkeeping burden for all business
opportunity sellers).
sroberts on PROD1PC70 with NOTICES
Estimated annual labor cost: $3,595,000
Labor costs are determined by
applying applicable wage rates to
associated burden hours. Staff presumes
an attorney will prepare or update the
disclosure document at an estimated
$250 per hour. As applied, this would
yield approximately $3,562,500 in labor
costs attributable to compliance with
the Rule’s disclosure requirements ((250
new business opportunity sellers x $250
per hour x 30 hours per seller) + (2,250
established business opportunity sellers
x $250 per hour x 3 hours per seller)).
Staff anticipates that recordkeeping
would be performed by clerical staff at
approximately $13 per hour. At 2,500
hours per year for all affected business
opportunity sellers (see above), this
amounts to an estimated $32,500 of
recordkeeping cost. Thus, the combined
labor costs for recordkeeping and
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21:01 Oct 08, 2008
Jkt 217001
disclosure for business opportunity
sellers is approximately $3,595,000.
Estimated non-labor cost: $3,887,500
Business opportunity sellers must
also 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.
Staff estimates that 2,500 business
opportunity sellers print and mail 100
documents per year at a cost of $15 per
document, for a total cost of $3,750,000
(2,500 business opportunity sellers x
100 documents per year x $15 per
document).
Business opportunity sellers must
also complete and disseminate an FTCrequired cover sheet that identifies the
business opportunity seller, the date the
document is issued, a table of contents,
and a notice that tracks the language
specifically provided in the Rule.
Although 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, see 5 CFR 1320.3(c)(2), there are
residual costs to print and mail these
cover sheets, including within them the
presentation of related information
beyond the supplied text. Staff estimates
that 2,500 business opportunity sellers
complete and disseminate 100 cover
sheets per year at a cost of
approximately $0.55 per cover sheet, or
a total cost of approximately $137,500
(2,500 business opportunity sellers x
100 cover sheets per year x $0.55 per
cover sheet).
Accordingly, the cumulative nonlabor cost incurred by business
opportunity sellers each year
attributable to compliance will be
approximately $3,887,500 ($3,750,000
for printing and mailing documents +
$137,500 for completing and mailing
cover sheets).
William Blumenthal
General Counsel
[FR Doc. E8–24021 Filed 10–8–08: 8:45 am]
[BILLING CODE 6750–01–S
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Agency for Healthcare Research and
Quality
Meeting of the National Advisory
Council for Healthcare Research and
Quality
Agency for Healthcare Research
and Quality (AHRQ).
AGENCY:
PO 00000
Frm 00036
Fmt 4703
Sfmt 4703
ACTION:
59631
Notice of public meeting.
SUMMARY: In accordance with section
10(a) of the Federal Advisory Committee
Act, 5 U.S.C. app. 2, this notice
announces a meeting of the National
Advisory Council for Healthcare
Research and Quality.
DATES: The meeting will be held on
Friday, November 7, 2008, from 9 a.m.
to 3 p.m.
ADDRESSES: The meeting will be held at
the Eisenberg Conference Center,
Agency for Healthcare Research and
Quality, 540 Gaither Road, Rockville,
Maryland 20850.
FOR FURTHER INFORMATION CONTACT:
Deborah Queenan, Coordinator of the
Advisory Council, at the Agency for
Healthcare Research and Quality, 540
Gaither Road, Rockville, Maryland
20850, (301) 427–1330. For press-related
information, please contact Karen
Migdail at (301) 427–1855.
If sign language interpretation or other
reasonable accommodation for a
disability is needed, please contact Mr.
Donald L. Inniss, Director, Office of
Equal Employment Opportunity
Program, Program Support Center, on
(301) 443–1144, no later than October
27, 2008. The agenda, roster, and
minutes are available from Ms. Bonnie
Campbell, Committee Management
Officer, Agency for Healthcare Research
and Quality, 540 Gaither Road,
Rockville, Maryland 20850. Ms.
Campbell’s phone number is (301) 427–
1554.
SUPPLEMENTARY INFORMATION:
I. Purpose
The National Advisory Council for
Healthcare Research and Quality was
established in accordance with Section
921 (now Section 931) of the Public
Health Service Act 42 U.S.C. 299c. In
accordance with its statutory mandate,
the Council is to advise the Secretary of
the Department of Health and Human
Services and the Director, Agency for
Healthcare Research and Quality
(AHRQ), on matters related to actions of
AHRQ to enhance the quality, improve
the outcomes, and reduce the costs of
health care services; improve access to
such services through scientific
research; and promote improvements in
clinical practice and in the organization,
financing, and delivery of health care
services.
The Council is composed of members
of the public, appointed by the
Secretary, and Federal ex-officio
members.
II. Agenda
On Friday, November 7, the Council
meeting will convene at 9 a.m., with the
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]]>Agencies
[Federal Register Volume 73, Number 197 (Thursday, October 9, 2008)]
[Notices]
[Pages 59629-59631]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-24021]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Submission for OMB
Review; Comment Request; Extension
AGENCY: Federal Trade Commission (``Commission'' or ``FTC'').
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The information collection requirements described below will
be submitted to the Office of Management and Budget (``OMB'') for
review, as required by the Paperwork Reduction Act (``PRA''). The FTC
is seeking public comments on its proposal to extend through October
31, 2011, the current PRA clearance for information collection
requirements contained in the Commission's Business Opportunity Rule
(``Rule''). The current clearance expires on October 31, 2008.
DATES: Comments must be submitted on or before November 10, 2008.
[[Page 59630]]
ADDRESSES: Interested parties are invited to submit written comments
electronically or in paper form. Comments should refer to ``16 CFR Part
437: Paperwork Comment, FTC File No. P024404'' to facilitate the
organization of comments. Please note that comments will be placed on
the public record of this proceeding--including on the publicly
accessible FTC website, at (https://www.ftc.gov/os/publiccomments.shtm)
-- and therefore should not include any sensitive or confidential
information. In particular, comments should not include any sensitive
personal information, such as an individual's Social Security Number;
date of birth; driver's license number or other state identification
number, or foreign country equivalent; passport number; financial
account number; or credit or debit card number. Comments also should
not include any sensitive health information, such as medical records
or other individually identifiable health information. In addition,
comments should not include any ``[t]rade secrets and commercial or
financial information obtained from a person and privileged or
confidential. . . .,'' as provided in Section 6(f) of the FTC Act, 15
U.S.C. 46(f), and Commission Rule 4.10(a)(2), 16 CFR 4.10(a)(2).
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c).\1\
---------------------------------------------------------------------------
\1\ FTC Rule 4.2(d), 16 CFR 4.2(d). The comment must be
accompanied by an explicit request for confidential treatment,
including the factual and legal basis for the request, and must
identify the specific portions of the comment to be withheld from
the public record. The request will be granted or denied by the
Commission's General Counsel, consistent with applicable law and the
public interest. See FTC Rule 4.9(c), 16 CFR 4.9(c).
---------------------------------------------------------------------------
Because paper mail addressed to the FTC is subject to delay due to
heightened security screening, please consider submitting your comments
in electronic form. Comments filed in electronic form should be
submitted by using the following weblink: (https://
secure.commentworks.com/ftc-bizopPRA) (and following the instructions
on the web-based form). To ensure that the Commission considers an
electronic comment, you must file it on the web-based form at the
weblink (https://secure.commentworks.com/ftc-bizopPRA) If this Notice
appears at (https://www.regulations.gov/search/index.jsp), you may also
file an electronic comment through that website. The Commission will
consider all comments that regulations.gov forwards to it. You may also
visit the FTC website at https://www.ftc.gov to read the Notice and the
news release describing it.
A comment filed in paper form should include the ``16 CFR Part 437:
Paperwork Comment, FTC File No. P024404'' reference both in the text
and on the envelope, and should be mailed or delivered to the following
address: Federal Trade Commission, Office of the Secretary, Room H-135
(Annex J), 600 Pennsylvania Avenue, NW, Washington, DC 20580. The FTC
is requesting that any comment filed in paper form be sent by courier
or overnight service, if possible, because U.S. postal mail in the
Washington area and at the Commission is subject to delay due to
heightened security precautions.
The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. The Commission will consider all timely and responsive
public comments that it receives, whether filed in paper or electronic
form. Comments received will be available to the public on the FTC
website, to the extent practicable, at (https://www.ftc.gov/os/
publiccomments.shtm). As a matter of discretion, the Commission makes
every effort to remove home contact information for individuals from
the public comments it receives before placing those comments on the
FTC website. More information, including routine uses permitted by the
Privacy Act, may be found in the FTC's privacy policy, at (https://
www.ftc.gov/ftc/privacy.shtm).
All comments should additionally be submitted to: Office of
Management and Budget, Attention: Desk Officer for the Federal Trade
Commission. Comments should be submitted via facsimile to (202) 395-
6974 because U.S. Postal Mail is subject to lengthy delays due to
heightened security precautions.
FOR FURTHER INFORMATION CONTACT: Karen Hobbs, Attorney, Division of
Marketing Practices, Bureau of Consumer Protection, (202) 326-3587,
Federal Trade Commission, 600 Pennsylvania Avenue, N.W., Washington
D.C. 20580.
SUPPLEMENTARY INFORMATION: On July 7, 2008, the FTC sought comment on
the information collection requirements associated with the Business
Opportunity Rule, 16 CFR Part 437 (Control Number: 3084-0142).\2\ No
comments were received. Pursuant to the OMB regulations, 5 CFR Part
1320, that implement the PRA, 44 U.S.C. 3501-3521, the FTC is providing
this second opportunity for public comment while seeking OMB approval
to extend the existing paperwork clearance for the Rule. All comments
should be filed as prescribed in the ADDRESSES section above, and must
be received on or before November 10, 2008.
---------------------------------------------------------------------------
\2\ 73 FR 38451 (July 7, 2008).
---------------------------------------------------------------------------
The Rule is designed to ensure that prospective purchasers of a
business opportunity receive information that will help them evaluate
the opportunity that is presented to them. Part 437 was promulgated in
March of 2007, concurrently with the amendment of the Franchise Rule,
Part 436. Part 437 mirrors the requirements and prohibitions of the
original Franchise Rule, and imposes no additional disclosure or
recordkeeping obligations or prohibitions.\3\ The Rule requires
business opportunity sellers to furnish to prospective purchasers a
disclosure document that provides information relating to the seller,
the seller's business, the nature of the proposed business opportunity,
as well as additional information regarding any claims about actual or
potential sales, income, or profits for a prospective business
opportunity purchaser. The seller must also preserve information that
forms a reasonable basis for such claims. These requirements are
subject to the PRA. The FTC is seeking to extend the current PRA
clearance to October 31, 2011.\4\
---------------------------------------------------------------------------
\3\ In March of 2008, the Commission published the Business
Opportunity Rule Revised Notice of Proposed Rulemaking, 73 FR 16110
(March 26, 2008) (``Notice''). The Notice proposed amending the
Business Opportunity Rule substantially, and would, among other
things, reduce the number of required disclosures by sellers of
business opportunities to prospective purchasers. Conversely, the
Notice proposed amending the rule to expand the coverage of entities
required to make disclosures to include a broader array of business
opportunities than those covered by the original Franchise Rule. For
now, however, only those businesses opportunities covered by the
original Franchise Rule--such as vending machine and rack display
opportunities--remain covered under part 437.
\4\ The current clearance under recently assigned OMB Control
Number 3084-0142 covers the terms of the original Franchise Rule as
applied to business opportunity sellers. The portion of clearance
applicable to franchisors under Part 436 is separately assigned to
pre-existing OMB Control Number 3084-0107.
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Estimated annual hours burden: 16,750 hours
Based on a review of trade publications and information from state
regulatory authorities, staff believes that, on average, from year to
year, there are approximately 2,500 business opportunity sellers, with
perhaps about 10% of that total reflecting an equal amount of new and
departing business entrants.
[[Page 59631]]
The burden estimates for compliance will vary depending on the
particular business opportunity seller's prior experience with the
original Franchise Rule. Staff estimates that 250 or so new business
opportunity sellers will enter the market each year, requiring
approximately 30 hours each to develop a Rule-compliant disclosure
document. Thus, staff estimates that the cumulative annual disclosure
burden for new business opportunity sellers will be approximately 7,500
hours. Staff further estimates that the remaining 2,250 established
business opportunity sellers will require no more than approximately 3
hours each to update their disclosure document. Accordingly, the
cumulative estimated annual disclosure burden for established business
opportunity sellers will be approximately 6,750 hours.
Business opportunity sellers may need to maintain additional
documentation for the sale of business opportunities in states not
currently requiring these records as part of their regulation of
business opportunity sellers. This might entail an additional hour of
recordkeeping per year. Accordingly, staff estimates that business
opportunity sellers will cumulatively incur approximately 2,500 hours
of recordkeeping burden per year (2,500 business opportunity sellers x
1 hour).
Thus, the total burden for business opportunity sellers is
approximately 16,750 hours (7,500 hours of disclosure burden for new
business opportunity sellers + 6,750 hours of disclosure burden for
established business opportunity sellers + 2,500 of recordkeeping
burden for all business opportunity sellers).
Estimated annual labor cost: $3,595,000
Labor costs are determined by applying applicable wage rates to
associated burden hours. Staff presumes an attorney will prepare or
update the disclosure document at an estimated $250 per hour. As
applied, this would yield approximately $3,562,500 in labor costs
attributable to compliance with the Rule's disclosure requirements
((250 new business opportunity sellers x $250 per hour x 30 hours per
seller) + (2,250 established business opportunity sellers x $250 per
hour x 3 hours per seller)).
Staff anticipates that recordkeeping would be performed by clerical
staff at approximately $13 per hour. At 2,500 hours per year for all
affected business opportunity sellers (see above), this amounts to an
estimated $32,500 of recordkeeping cost. Thus, the combined labor costs
for recordkeeping and disclosure for business opportunity sellers is
approximately $3,595,000.
Estimated non-labor cost: $3,887,500
Business opportunity sellers must also 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. Staff estimates that 2,500 business opportunity
sellers print and mail 100 documents per year at a cost of $15 per
document, for a total cost of $3,750,000 (2,500 business opportunity
sellers x 100 documents per year x $15 per document).
Business opportunity sellers must also complete and disseminate an
FTC-required cover sheet that identifies the business opportunity
seller, the date the document is issued, a table of contents, and a
notice that tracks the language specifically provided in the Rule.
Although 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, see 5 CFR 1320.3(c)(2), there are residual costs to print and mail
these cover sheets, including within them the presentation of related
information beyond the supplied text. Staff estimates that 2,500
business opportunity sellers complete and disseminate 100 cover sheets
per year at a cost of approximately $0.55 per cover sheet, or a total
cost of approximately $137,500 (2,500 business opportunity sellers x
100 cover sheets per year x $0.55 per cover sheet).
Accordingly, the cumulative non-labor cost incurred by business
opportunity sellers each year attributable to compliance will be
approximately $3,887,500 ($3,750,000 for printing and mailing documents
+ $137,500 for completing and mailing cover sheets).
William Blumenthal
General Counsel
[FR Doc. E8-24021 Filed 10-8-08: 8:45 am]
[BILLING CODE 6750-01-S
