Kawasaki Heavy Industries, Ltd.; Kawasaki Motors Corp., U.S.A.; and Kawasaki Motors Manufacturing Corp., U.S.A., Provisional Acceptance of a Settlement Agreement and Order, 25779-25783 [2017-11567]
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Federal Register / Vol. 82, No. 106 / Monday, June 5, 2017 / Notices
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN 0648–XF462
New England Fishery Management
Council; Public Meeting
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of cancellation of a
public meeting.
AGENCY:
The New England Fishery
Management Council (Council) has
cancelled the public meeting of its
Whiting Committee and Advisory Panel
that was scheduled for Wednesday, June
14, 2017, at 9:30 a.m.
FOR FURTHER INFORMATION CONTACT:
Thomas A. Nies, Executive Director,
New England Fishery Management
Council; telephone: (978) 465–0492.
SUPPLEMENTARY INFORMATION: The notice
published in the Federal Register on
May 31, 2017 (82 FR 24944). The
meeting will be rescheduled at a later
date and announced in the Federal
Register.
SUMMARY:
Dated: May 31, 2017.
Jeffrey N. Lonergan,
Acting Deputy Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 2017–11558 Filed 6–2–17; 8:45 am]
BILLING CODE 3510–22–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
[Docket No. CFPB–2017–0013]
Agency Information Collection
Activities: Comment Request
Bureau of Consumer Financial
Protection.
ACTION: Notice and request for comment.
AGENCY:
In accordance with the
Paperwork Reduction Act of 1995
(PRA), the Bureau of Consumer
Financial Protection (Bureau) is
requesting a new information collection,
titled, ‘‘Debt Collection Quantitative
Disclosure Testing.’’
DATES: Written comments are
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before August 4, 2017 to be assured of
consideration.
ADDRESSES: You may submit comments,
identified by the title of the information
collection, Office of Management and
Budget (OMB) Control Number (see
below), and docket number (see above),
by any of the following methods:
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SUMMARY:
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• Electronic: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Consumer Financial
Protection Bureau (Attention: PRA
Office), 1700 G Street NW., Washington,
DC 20552.
• Hand Delivery/Courier: Consumer
Financial Protection Bureau (Attention:
PRA Office), 1275 First Street NE.,
Washington, DC 20002.
Please note that comments submitted
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received will become public records,
including any personal information
provided. Sensitive personal
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or Social Security numbers, should not
be included.
FOR FURTHER INFORMATION CONTACT:
Documentation prepared in support of
this information collection request is
available at www.regulations.gov.
Requests for additional information
should be directed to the Consumer
Financial Protection Bureau, (Attention:
PRA Office), 1700 G Street NW.,
Washington, DC 20552, (202) 435–9575,
or email: CFPB_PRA@cfpb.gov. Please
do not submit comments to this
mailbox.
SUPPLEMENTARY INFORMATION:
Title of Collection: Debt Collection
Quantitative Disclosure Testing.
OMB Control Number: 3170–XXXX.
Type of Review: New Collection
(Request for a New OMB Control
Number).
Affected Public: Individuals and
households.
Estimated Number of Respondents:
17,750.
Estimated Total Annual Burden
Hours: 3,555.
Abstract: The Dodd-Frank Wall Street
Reform and Consumer Protection Act
and other Federal consumer financial
laws authorize the Bureau to engage in
consumer protection rule writing. The
Bureau plans to seek approval from
OMB to conduct a Web survey of 8,000 1
individuals as part of the Bureau’s
research on debt collection disclosures.
The survey will explore consumer
comprehension and decision making in
response to debt collection disclosure
forms.
Request for Comments: Comments are
invited on: (a) Whether the collection of
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performance of the functions of the
Bureau, including whether the
1 The Bureau plans to administer the survey to
approximately 8,000 individuals; however, in order
to survey 8,000 individuals, the Bureau estimates
that it will need to administer a screening
instrument to approximately 17,750 individuals.
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information will have practical utility;
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Dated: May 31, 2017.
Darrin A. King,
Paperwork Reduction Act Officer, Bureau of
Consumer Financial Protection.
[FR Doc. 2017–11551 Filed 6–2–17; 8:45 am]
BILLING CODE 4810–AM–P
CONSUMER PRODUCT SAFETY
COMMISSION
[CPSC Docket No. 17–C0004]
Kawasaki Heavy Industries, Ltd.;
Kawasaki Motors Corp., U.S.A.; and
Kawasaki Motors Manufacturing Corp.,
U.S.A., Provisional Acceptance of a
Settlement Agreement and Order
Consumer Product Safety
Commission.
ACTION: Notice.
AGENCY:
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 the Consumer Product Safety
Commission’s regulations. Published
below is a provisionally-accepted
Settlement Agreement with Kawasaki
Heavy Industries, Ltd., Kawasaki Motors
Corp., U.S.A., and Kawasaki Motors
Manufacturing Corp., U.S.A., containing
a civil penalty in the amount of five
million, two hundred thousand dollars
($5,200,000), within thirty (30) days of
service of the Commission’s final Order
accepting the Settlement Agreement.
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 June 20,
2017.
ADDRESSES: Persons wishing to
comment on this Settlement Agreement
should send written comments to the
Comment 17–C0004, Office of the
Secretary, Consumer Product Safety
SUMMARY:
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Commission, 4330 East-West Highway,
Room 820, Bethesda, Maryland 20814–
4408.
FOR FURTHER INFORMATION CONTACT:
Philip Z. Brown, Trial Attorney,
Division of Compliance, Office of the
General Counsel, Consumer Product
Safety Commission, 4330 East-West
Highway, Bethesda, Maryland 20814–
4408; telephone (301) 504–7645.
SUPPLEMENTARY INFORMATION: The text of
the Agreement and Order appears
below.1
Dated: May 31, 2017.
Todd A. Stevenson,
Secretary.
UNITED STATES OF AMERICA
CONSUMER PRODUCT SAFETY
COMMISSION
In the Matter of: Kawasaki Heavy
Industries, LTD.; Kawasaki Motors Corp.,
U.S.A.; and Kawasaki Motors Manufacturing
Corp., U.S.A.
CPSC Docket No.: 17–C0004
SETTLEMENT AGREEMENT
1. In accordance with the Consumer
Product Safety Act, 15 U.S.C. §§ 2051–
2089 (‘‘CPSA’’) and 16 C.F.R. § 1118.20,
Kawasaki Heavy Industries, Ltd.,
Kawasaki Motors Corp., U.S.A., and
Kawasaki Motors Manufacturing Corp.,
U.S.A. (collectively, ‘‘Kawasaki’’), and
the United States Consumer Product
Safety Commission (‘‘Commission’’),
through its staff, hereby enter into this
Settlement Agreement (‘‘Agreement’’).
The Agreement and the incorporated
attached Order resolve staff’s charges set
forth below.
THE PARTIES
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2. The Commission is an independent
federal regulatory agency, established
pursuant to, and responsible for, the
enforcement of the CPSA, 15 U.S.C.
§§ 2051–2089. By executing the
Agreement, staff is acting on behalf of
the Commission, pursuant to 16 C.F.R.
§ 1118.20(b). The Commission issues
this Order under the provisions of the
CPSA.
3. Kawasaki Heavy Industries, Ltd.
(‘‘KHI’’) is a corporation, organized and
existing under the laws of Japan, with
its principal place of business in Japan.
1 The Commission voted (4–1) to provisionally
accept the Settlement Agreement and Order
regarding Kawasaki Heavy Industries, Ltd.,
Kawasaki Motors Corp., U.S.A., and Kawasaki
Motors Manufacturing Corp., U.S.A. Commissioner
Adler, Commissioner Kaye, Commissioner
Robinson and Commissioner Mohorovic voted to
provisionally accept the Settlement Agreement and
Order. Acting Chairman Buerkle voted to reject the
Settlement Agreement and Order.
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4. Kawasaki Motors Corp., U.S.A.
(‘‘KMC’’) is a corporation, organized and
existing under the laws of the state of
Delaware, with its principal place of
business in Foothill Ranch, CA. KMC is
a wholly-owned subsidiary of KHI.
5. Kawasaki Motors Manufacturing
Corp., U.S.A. (‘‘KMM’’) is a corporation,
organized and existing under the laws of
the state of Nebraska, with its principal
place of business in Lincoln, NE. KMM
is a wholly-owned subsidiary of KHI.
STAFF CHARGES
6. Between October 2011 and
December 2015, Kawasaki
manufactured, distributed, and offered
for sale in the United States
approximately 11,000 model year 2012
and 2013 Teryx4 750 4x4s (‘‘Teryx4
750’’) and approximately 19,500 2014–
2016 model year Teryx4 800 4×4s
(‘‘Teryx4 800’’) and Teryx 800 4×4s
(‘‘Teryx 800’’) (collectively, ‘‘Teryxs’’ or
‘‘Subject Products’’). The Teryxs are
four-wheel recreational off-highway
vehicles that have automotive style
controls and seating for two or four
persons, depending on model type.
7. KMM manufactures and assembles
the Subject Products, which are then
sold to KMC for distribution.
8. KMC is responsible for, among
other things, the distribution, marketing,
and Quality Assurance of the Subject
Products in the United States.
9. KHI is primarily responsible for the
design, development, and engineering of
the Subject Products. KHI retains
ultimate control over the operations of
KMC and KMM, including retaining
recall authority.
10. The Teryxs are a ‘‘consumer
product,’’ ‘‘distribut[ed] in commerce,’’
as those terms are defined or used in
sections 3(a)(5) and (8) of the CPSA, 15
U.S.C. § 2052(a)(5) and (8). Kawasaki is
a ‘‘distributor’’ or a ‘‘manufacturer’’ of
the Teryxs, as such terms are defined in
section 3(a)(7) and (11) of the CPSA, 15
U.S.C. § 2052(a)(7) and (11).
Violation of CPSA Section 19(a)(4)
11. The Teryxs contain a defect which
could create a substantial product
hazard and create an unreasonable risk
of serious injury because sticks or other
debris can break through the Teryxs’
floor board and protrude into the foot
rest area, posing an injury hazard to the
operator and front passenger.
12. Between April 2012 and July
2014, Kawasaki received more than 400
incident reports of Teryx4 750
floorboards cracking or breaking during
normal operation due to impact with, or
penetration by, debris from outside the
vehicle. At least three of the incident
reports resulted in injuries to
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consumers, including one serious
injury.
13. In April 2012, Kawasaki began an
investigation into the Teryx4 750
incidents. In October 2012, Kawasaki
approved a design change to the Teryx4
750. The design change consisted of a
metal strike plate to address the hazard
and was implemented on Teryx4 750
models beginning in early 2013.
14. In May 2013, Kawasaki stopped
manufacturing the Teryx4 750 and
began manufacturing the Teryx 800 and
Teryx4 800.
15. In December 2013, in anticipation
of production for the 2015 model year,
Kawasaki approved an additional design
change. This design change involved
enhanced floorboard guards for
implementation on the 2015 model year
Teryx 800 and Teryx4 800.
16. Kawasaki did not immediately
inform the Commission under 15 U.S.C.
§ 2064(b) regarding the defect and risk
posed by the Teryx4 750 and did not file
a Full Report as required by 16 C.F.R.
§ 1115.13(d) until July 9, 2014.
17. Kawasaki and the Commission
jointly announced a recall of
approximately 11,000 Teryx4 750s on
July 30, 2014.
18. Between July 2013 and August
2015, Kawasaki received more than 150
incident reports of Teryx4 800 or Teryx
800 floor boards cracking or breaking
during normal operation due to impact
with, or penetration by, debris from
outside the vehicle. At least three of the
incident reports resulted in injuries to
consumers, including two serious
injuries.
19. Kawasaki did not immediately
inform the Commission under 15 U.S.C.
§ 2064(b) regarding the defect and risk
posed by the Teryx4 800 and Teryx 800
and did not file a Full Report as
required by 16 C.F.R. § 1115.13(d) until
August 19, 2015.
20. Kawasaki and the Commission
jointly announced a recall of
approximately 19,500 Teryx4 800s and
Teryx 800s on December 15, 2015.
21. Despite having information
reasonably supporting the conclusion
that the Teryxs contained a defect and
created an unreasonable risk of serious
injury, Kawasaki did not immediately
inform the Commission of such defect
or risk, as required by sections 15(b)(3)
and (4) of the CPSA, 15 U.S.C.
§ 2064(b)(3) and (4), in violation of
section 19(a)(4) of the CPSA, 15 U.S.C.
§ 2068(a)(4).
22. Because the information in
Kawasaki’s possession constituted
actual and presumed knowledge,
Kawasaki knowingly violated section
19(a)(4) of the CPSA, 15 U.S.C.
§ 2068(a)(4), as the term ‘‘knowingly’’ is
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defined in section 20(d) of the CPSA, 15
U.S.C. § 2069(d).
23. Pursuant to Section 20 of the
CPSA, 15 U.S.C. § 2069, Kawasaki is
subject to civil penalties for its knowing
violation of section 19(a)(4) of the
CPSA, 15 U.S.C. § 2068(a)(4).
Violation of CPSA Section 19(a)(13)
24. Kawasaki’s July 9, 2014, Full
Report reported a single incident and an
unspecified number of injuries related
to the Subject Products’ floorboards.
The Full Report did not identify more
than 400 similar incidents involving the
Subject Products about which Kawasaki
had actual or presumed knowledge, and
excluded any incidents relating to the
Teryx4 800 and Teryx 800. This
omission constitutes a material
misrepresentation under section
19(a)(13) of the CPSA, 15 U.S.C.
§ 2068(a)(13).
25. Kawasaki’s misrepresentation
impeded CPSC staff’s investigation into
the hazard posed by the Subject
Products’ floorboards and Kawasaki’s
proposed repair, and hampered staff’s
ability to accurately communicate the
prevalence of the hazard to the public.
26. By knowingly making a material
misrepresentation to an officer or
employee of the CPSC in the course of
an investigation under the CPSA,
Kawasaki knowingly violated section
19(a)(13) of the CPSA, 15 U.S.C.
§ 2068(a)(13), as the term ‘‘knowingly’’
is defined in section 20(d) of the CPSA,
15 U.S.C. § 2069(d). Pursuant to section
20 of the CPSA, 15 U.S.C. § 2069,
Kawasaki is subject to civil penalties for
its knowing violation of section
19(a)(13) of the CPSA, 15 U.S.C.
§ 2068(a)(13).
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RESPONSE OF KAWASAKI
27. The signing of this Agreement
does not constitute an admission in any
respect by Kawasaki of the staff charges,
set forth above in paragraphs 6 through
26, including, but not limited to, that:
(a) the Teryx4 750, Teryx4 800, and
Teryx 800 contained a defect which
could create a substantial product
hazard and created an unreasonable risk
of serious injury; (b) Kawasaki failed to
inform the Commission of any
reportable issues related to the Teryxs in
a timely manner, in accordance with
sections 15(b)(3) and (4) of the CPSA, 15
U.S.C. §§ 2064(b)(3) and (4); (c)
Kawasaki failed to furnish information
as required by the statute (sections
15(b)(3) and (4), 15 U.S.C. §§ 2064(b)(3)
and (4)), in violation of section 19(a)(4)
of the CPSA, 15 U.S.C. § 2068(a)(4); and
(d) there was any ‘‘knowing’’ violation
of the CPSA as that term is defined in
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section 20(d) of the CPSA, 15 U.S.C.
§ 2069(d).
28. The Teryx4 750, Teryx4 800, and
Teryx 800 are side-by-side recreational
off-highway vehicles which are used in
a variety of challenging off-road
environments where breakage of various
parts, including floor boards, can occur.
29. Kawasaki conducted a reasonable
and diligent investigation of reported
incidents of floor board breakage,
including the smaller number of
reported instances of stick penetration
and the handful of reports of injury. Due
to the nature of the products and the
variety of ways and environments in
which they are used, incident reports
can be difficult to evaluate, since use of
the Teryx4 750, Teryx4 800, and Teryx
800, like all side-by-side recreational
off-highway vehicles, involves the
possibility of parts breakage.
30. The voluntary recalls of the
Teryx4 750, Teryx4 800, and Teryx 800
and related reporting to the Commission
under section 15(b) of the CPSA, 15
U.S.C. § 2064(b), were conducted by
Kawasaki out of an abundance of
caution and without having determined
or concluded that the Teryx4 750,
Teryx4 800, and Teryx 800 contained a
defect which could create a substantial
product hazard or created an
unreasonable risk of serious injury.
Kawasaki may submit a corrective
action plan to the Commission without
admitting that either reportable
information or a substantial product
hazard exists. See 16 C.F.R.
§ 1115.20(a)(1)(xiii). Kawasaki also
makes design changes to its products to
address customer satisfaction.
31. Kawasaki denies the staff charges
that Kawasaki committed a material
misrepresentation by omission in the
July 9, 2014 Full Report in violation of
section 19(a)(13) of the CPSA, 15 U.S.C.
§ 2068(a)(13), and further denies that
Kawasaki committed a ‘‘knowing’’
violation of section 19(a)(13) as that
term is defined in section 20(d) of the
CPSA, 15 U.S.C. § 2069(d).
32. Pursuant to section 20(a)(1) of the
CPSA, 15 U.S.C. § 2069(a)(1), the
amount of the agreed civil penalty
which can be attributable to the claim
of material misrepresentation by
omission under section 19(a)(13) of the
CPSA, 15 U.S.C. § 2068(a)(13), cannot
exceed $100,000.
33. Kawasaki believes that it did
nothing wrong in this matter and that it
complied with the CPSA in all respects.
Kawasaki disputes the staff’s allegations
that Kawasaki had information that the
Teryxs contained a defect which could
create a substantial product hazard and
created an unreasonable risk of injury.
Kawasaki believes that it informed the
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Commission of any reportable issues
regarding the Teryxs in a timely manner
and furnished information to CPSC as
required by the CPSA. Kawasaki does
not believe that it knowingly violated
the CPSA as that term is defined in the
statute.
34. Pursuant to paragraphs 43 through
45, Kawasaki will maintain its program
for current and future compliance with
the CPSA.
35. Kawasaki enters into this
Agreement in order to settle this matter
without the delay and unnecessary
expense of litigation.
AGREEMENT OF THE PARTIES
36. Under the CPSA, the Commission
has jurisdiction over the matter
involving the Subject Products and over
Kawasaki.
37. The parties enter into this
Agreement for settlement purposes only.
The Agreement does not constitute an
admission by Kawasaki, or a
determination by the Commission, that
Kawasaki violated the CPSA’s reporting
requirements or made material
misrepresentations to an officer or
employee of the Commission.
38. In settlement of staff’s charges,
and to avoid the cost, distraction, delay,
uncertainty, and inconvenience of
protracted litigation or other
proceedings, Kawasaki shall pay a civil
penalty in the amount of five million,
two hundred thousand dollars
($5,200,000) within thirty (30) calendar
days after receiving service of the
Commission’s final Order accepting the
Agreement. All payments to be made
under the Agreement shall constitute
debts owing to the United States and
shall be made by electronic wire transfer
to the United States via: https://
www.pay.gov, for allocation to, and
credit against, the payment obligations
of Kawasaki under this Agreement.
Failure to make such payment by the
date specified in the Commission’s final
Order shall constitute Default.
39. All unpaid amounts, if any, due
and owing under the Agreement, shall
constitute a debt due and immediately
owing by Kawasaki to the United States,
and interest shall accrue and be paid by
Kawasaki at the federal legal rate of
interest set forth at 28 U.S.C. § 1961(a)
and (b) from the date of Default, until all
amounts due have been paid in full
(hereinafter ‘‘Default Payment Amount’’
and ‘‘Default Interest Balance’’).
Kawasaki shall consent to a Consent
Judgment in the amount of the Default
Payment Amount and Default Interest
Balance, and the United States, at its
sole option, may collect the entire
Default Payment Amount and Default
Interest Balance, or exercise any other
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rights granted by law or in equity,
including, but not limited to, referring
such matters for private collection, and
Kawasaki agrees not to contest, and
hereby waives and discharges, any
defenses to any collection action
undertaken by the United States, or its
agents or contractors, pursuant to this
paragraph. Kawasaki shall pay the
United States all reasonable costs of
collection and enforcement under this
paragraph, respectively, including
reasonable attorney’s fees and expenses.
40. After staff receives this Agreement
executed on behalf of Kawasaki, staff
shall promptly submit the Agreement to
the Commission for provisional
acceptance. Promptly following
provisional acceptance of the
Agreement by the Commission, the
Agreement shall be placed on the public
record and published in the Federal
Register, in accordance with the
procedures set forth in 16 C.F.R.
§ 1118.20(e). If the Commission does not
receive any written request not to accept
the Agreement within fifteen (15)
calendar days, the Agreement shall be
deemed finally accepted on the 16th
calendar day after the date the
Agreement is published in the Federal
Register, in accordance with 16 C.F.R.
§ 1118.20(f).
41. This Agreement is conditioned
upon, and subject to, the Commission’s
final acceptance, as set forth above, and
it is subject to the provisions of 16
C.F.R. § 1118.20(h). Upon the later of: (i)
Commission’s final acceptance of this
Agreement and service of the accepted
Agreement upon Kawasaki, and (ii) the
date of issuance of the final Order, this
Agreement shall be in full force and
effect, and shall be binding upon the
parties.
42. Effective upon the later of: (i) the
Commission’s final acceptance of the
Agreement and service of the accepted
Agreement upon Kawasaki, and (ii) the
date of issuance of the final Order, for
good and valuable consideration,
Kawasaki hereby expressly and
irrevocably waives and agrees not to
assert any past, present, or future rights
to the following, in connection with the
matter described in this Agreement: (i)
an administrative or judicial hearing; (ii)
judicial review or other challenge or
contest of the Commission’s actions; (iii)
a determination by the Commission of
whether Kawasaki failed to comply with
the CPSA and the underlying
regulations; (iv) a statement of findings
of fact and conclusions of law; and (v)
any claims under the Equal Access to
Justice Act.
43. Kawasaki shall maintain a
compliance program designed to ensure
compliance with the CPSA with respect
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to any consumer product imported,
manufactured, distributed or sold by the
Firm, and which shall contain the
following elements: (i) written
standards, policies and procedures,
including those designed to ensure that
information that may relate to or impact
CPSA compliance (including
information obtained by quality control
personnel) is conveyed effectively to
personnel responsible for CPSA
compliance, whether or not an injury is
referenced; (ii) a mechanism for
confidential employee reporting of
compliance-related questions or
concerns to either a compliance officer
or to another senior manager with
authority to act as necessary; (iii)
effective communication of company
compliance-related policies and
procedures regarding the CPSA to all
applicable employees through training
programs or otherwise; (iv) the Firm’s
senior management responsibility for,
and general board oversight of, CPSA
compliance; and (v) retention of all
CPSA compliance-related records for at
least five (5) years, and availability of
such records to staff upon request.
44. Kawasaki shall maintain and
enforce a system of internal controls and
procedures designed to ensure that,
with respect to all consumer products
imported, manufactured, distributed or
sold by Kawasaki: (i) information
required to be disclosed by Kawasaki to
the Commission is recorded, processed
and reported in accordance with
applicable law; (ii) all reporting made to
the Commission is timely, truthful,
complete, accurate and in accordance
with applicable law; and (iii) prompt
disclosure is made to Kawasaki’s
management of any significant
deficiencies or material weaknesses in
the design or operation of such internal
controls that are reasonably likely to
affect adversely, in any material respect,
Kawasaki’s ability to record, process
and report to the Commission in
accordance with applicable law.
45. Upon reasonable request of staff,
Kawasaki shall provide written
documentation of its internal controls
and procedures, including, but not
limited to, the effective dates of the
procedures and improvements thereto.
Kawasaki shall cooperate fully and
truthfully with staff and shall make
available all non-privileged information
and materials, and personnel deemed
necessary by staff to evaluate
Kawasaki’s compliance with the terms
of the Agreement.
46. The parties acknowledge and
agree that the Commission may
publicize the terms of the Agreement
and the Order.
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47. Kawasaki represents that the
Agreement: (i) is entered into freely and
voluntarily, without any degree of
duress or compulsion whatsoever; (ii)
has been duly authorized; and (iii)
constitutes the valid and binding
obligation of Kawasaki, enforceable
against Kawasaki in accordance with its
terms. Kawasaki will not directly or
indirectly receive any reimbursement,
indemnification, insurance-related
payment, or other payment in
connection with the civil penalty to be
paid by Kawasaki pursuant to the
Agreement and Order. The individuals
signing the Agreement on behalf of
Kawasaki represent and warrant that
they are duly authorized by Kawasaki to
execute the Agreement.
48. The signatories represent that they
are authorized to execute this
Agreement.
49. The Agreement is governed by the
laws of the United States.
50. The Agreement and the Order
shall apply to, and be binding upon,
Kawasaki and each of its successors,
transferees, and assigns; and a violation
of the Agreement or Order may subject
Kawasaki, and each of its successors,
transferees, and assigns, to appropriate
legal action.
51. The Agreement and the Order
constitute the complete agreement
between the parties on the subject
matter contained therein.
52. The Agreement may be used in
interpreting the Order. Understandings,
agreements, representations, or
interpretations apart from those
contained in the Agreement and the
Order may not be used to vary or
contradict their terms. For purposes of
construction, the Agreement shall be
deemed to have been drafted by both of
the parties and shall not, therefore, be
construed against any party, for that
reason, in any subsequent dispute.
53. The Agreement may not be
waived, amended, modified, or
otherwise altered, except as in
accordance with the provisions of 16
C.F.R. § 1118.20(h). The Agreement may
be executed in counterparts.
54. If any provision of the Agreement
or the Order is held to be illegal,
invalid, or unenforceable under present
or future laws effective during the terms
of the Agreement and the Order, such
provision shall be fully severable. The
balance of the Agreement and the Order
shall remain in full force and effect,
unless the Commission and Kawasaki
agree in writing that severing the
provision materially affects the purpose
of the Agreement and the Order.
KAWASAKI HEAVY INDUSTRIES, LTD.
Dated: May 12, 2017
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05JNN1
Federal Register / Vol. 82, No. 106 / Monday, June 5, 2017 / Notices
By: lllllllllllllllllll
Hideto Yoshitake,
General Manager and Associate Officer.
KAWASAKI MOTORS CORP., U.S.A.
Dated: May 12, 2017
By: lllllllllllllllllll
Yoshitaka Tamura,
President and Chief Executive Officer.
Commission via: https://www.pay.gov.
Upon the failure of Kawasaki to make
the foregoing payment when due,
interest on the unpaid amount shall
accrue and be paid by Kawasaki at the
federal legal rate of interest set forth at
28 U.S.C. § 1961(a) and (b). If Kawasaki
fails to make such payment or to comply
in full with any other provision of the
KAWASAKI MOTORS MANUFACTURING
Settlement Agreement, such conduct
CORP., U.S.A.
will be considered a violation of the
Dated: May 12, 2017
Settlement Agreement and Order.
By: lllllllllllllllllll
Provisionally accepted and
provisional Order issued on the 31st day
Masanobu Kurushima,
of May, 2017.
President.
By Order of the Commission:
Dated: May 16, 2017
l
By: lllllllllllllllllll llllllllllllllllll
Todd A. Stevenson, Secretary,
Michael A. Wiegard, Esq.,
U.S. Consumer Product Safety
Eckert Seamans Cherin & Mellott, LLC
Counsel to Kawasaki.
Commission.
U.S. CONSUMER PRODUCT SAFETY
COMMISSION
Mary T. Boyle,
General Counsel.
Mary B. Murphy,
Assistant General Counsel.
Dated: May 22, 2017
By: lllllllllllllllllll
Philip Z. Brown,
Trial Attorney, Division of Compliance,
Office of the General Counsel
asabaliauskas on DSKBBXCHB2PROD with NOTICES
UNITED STATES OF AMERICA
CONSUMER PRODUCT SAFETY
COMMISSION
In the Matter of: KAWASAKI HEAVY
INDUSTRIES, LTD.; KAWASAKI MOTORS
CORP., U.S.A.; and KAWASAKI MOTORS
MANUFACTURING CORP., U.S.A.
CPSC Docket No.: 17–C0004
ORDER
Upon consideration of the Settlement
Agreement entered into between
Kawasaki Heavy Industries, Ltd.,
Kawasaki Motors Corp., U.S.A., and
Kawasaki Motors Manufacturing Corp.,
U.S.A. (collectively, ‘‘Kawasaki’’), and
the U.S. Consumer Product Safety
Commission (‘‘Commission’’), and the
Commission having jurisdiction over
the subject matter and over Kawasaki,
and it appearing that the Settlement
Agreement and the Order are in the
public interest, it is:
ORDERED that the Settlement
Agreement be, and is, hereby, accepted;
and it is
FURTHER ORDERED that Kawasaki
shall comply with the terms of the
Settlement Agreement and shall pay a
civil penalty in the amount of five
million, two hundred thousand dollars
($5,200,000) within thirty (30) days after
service of the Commission’s final Order
accepting the Settlement Agreement.
The payment shall be made by
electronic wire transfer to the
VerDate Sep<11>2014
17:31 Jun 02, 2017
Jkt 241001
[FR Doc. 2017–11567 Filed 6–2–17; 8:45 am]
BILLING CODE 6355–01–P
DEPARTMENT OF ENERGY
Request for Information (RFI): Review
of Draft Version of DOE Energy-Water
Nexus State Policy Database
Office of Energy Policy and
Systems Analysis (EPSA), Department
of Energy (DOE).
ACTION: Notice of request for
information.
AGENCY:
The Department of Energy
(DOE) gives notice of a Request for
Information (RFI): ‘‘Review of Draft
Version of DOE Energy-Water Nexus
State Policy Database.’’ This RFI seeks
review and feedback from stakeholders
on the draft version of the DOE EnergyWater Nexus State Policy Database,
including over 1,700 state-level water
policies that affect energy systems. The
database is being developed by DOE’s
Office of Energy Policy and Systems
Analysis (DOE–EPSA). The draft or
‘‘beta’’ version of the database is
presented as a web tool at https://
energywaterpolicy.org. Categories of
policies in the database include surface
water rights; groundwater rights; water
discharge regulations for power plant
cooling water effluent, stormwater, and
wastewater from oil and gas production;
Underground Injection Control (UIC)
program regulations; state water plans;
regional watershed commissions;
reservoir and river operations; and
integrated energy and water policies.
The goals of the database are to facilitate
improved policy analysis, modeling,
visualization, and communication by
states, industry, utilities, academia,
federal agencies, and other stakeholders.
SUMMARY:
PO 00000
Frm 00029
Fmt 4703
Sfmt 4703
25783
Written comments and
information are requested on or before
August 4, 2017.
ADDRESSES: Interested persons are
encouraged to submit comments, which
must be submitted electronically to
EPSA.Database@hq.doe.gov.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information may
be sent to Samuel Bockenhauer, U.S.
Department of Energy, Office of Energy
Policy and Systems Analysis, 1000
Independence Avenue SW.,
Washington, DC 20585. Email:
samuel.bockenhauer@hq.doe.gov.
Phone: (202) 586–9016.
SUPPLEMENTARY INFORMATION:
DATES:
Background
Present-day energy and water systems
are in many cases interconnected. Water
is used in most phases of energy
production and electricity generation.
Energy is required to extract, convey,
and deliver water of appropriate quality
for diverse human uses, and then again
to treat wastewaters prior to their return
to the environment. Historically, energy
and water systems have been developed,
managed, and regulated independently
and without significant
acknowledgement of the connections
between them. The energy and water
policy landscape is thus highly
fragmented, which can make it difficult
for industry, utilities, government, and
other stakeholder groups to effectively
balance energy and water goals.
Furthermore, much of the authority
for water policy lies at the level of
individual states. For example,
allocation of water rights and permitting
for water discharge are managed
primarily at the state level. The
particularly complex and fragmented
nature of water policies affecting energy
systems, as well as their variation across
different states, suggests that a
centralized, public database of water
policies affecting energy systems could
enable enhanced policy analysis,
modeling, visualization, and
communication by states, industry,
utilities, academia, federal agencies, and
other stakeholders.
Purpose
The purpose of this RFI is to solicit
feedback from industry, utilities,
academia, research laboratories,
government agencies, and other
stakeholders on the draft version of the
Energy-Water Nexus State Policy
Database available at https://
energywaterpolicy.org. Regarding the
draft version of the Energy-Water Nexus
State Policy Database, neither the
United States Government nor any
E:\FR\FM\05JNN1.SGM
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Agencies
[Federal Register Volume 82, Number 106 (Monday, June 5, 2017)]
[Notices]
[Pages 25779-25783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-11567]
=======================================================================
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 17-C0004]
Kawasaki Heavy Industries, Ltd.; Kawasaki Motors Corp., U.S.A.;
and Kawasaki Motors Manufacturing Corp., U.S.A., Provisional Acceptance
of a Settlement Agreement and Order
AGENCY: Consumer Product Safety Commission.
ACTION: Notice.
-----------------------------------------------------------------------
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 the Consumer
Product Safety Commission's regulations. Published below is a
provisionally-accepted Settlement Agreement with Kawasaki Heavy
Industries, Ltd., Kawasaki Motors Corp., U.S.A., and Kawasaki Motors
Manufacturing Corp., U.S.A., containing a civil penalty in the amount
of five million, two hundred thousand dollars ($5,200,000), within
thirty (30) days of service of the Commission's final Order accepting
the Settlement Agreement.
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 June 20, 2017.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 17-C0004, Office of the
Secretary, Consumer Product Safety
[[Page 25780]]
Commission, 4330 East-West Highway, Room 820, Bethesda, Maryland 20814-
4408.
FOR FURTHER INFORMATION CONTACT: Philip Z. Brown, Trial Attorney,
Division of Compliance, Office of the General Counsel, Consumer Product
Safety Commission, 4330 East-West Highway, Bethesda, Maryland 20814-
4408; telephone (301) 504-7645.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.\1\
---------------------------------------------------------------------------
\1\ The Commission voted (4-1) to provisionally accept the
Settlement Agreement and Order regarding Kawasaki Heavy Industries,
Ltd., Kawasaki Motors Corp., U.S.A., and Kawasaki Motors
Manufacturing Corp., U.S.A. Commissioner Adler, Commissioner Kaye,
Commissioner Robinson and Commissioner Mohorovic voted to
provisionally accept the Settlement Agreement and Order. Acting
Chairman Buerkle voted to reject the Settlement Agreement and Order.
Dated: May 31, 2017.
Todd A. Stevenson,
Secretary.
UNITED STATES OF AMERICA
CONSUMER PRODUCT SAFETY COMMISSION
In the Matter of: Kawasaki Heavy Industries, LTD.; Kawasaki
Motors Corp., U.S.A.; and Kawasaki Motors Manufacturing Corp.,
U.S.A.
CPSC Docket No.: 17-C0004
SETTLEMENT AGREEMENT
1. In accordance with the Consumer Product Safety Act, 15 U.S.C.
Sec. Sec. 2051-2089 (``CPSA'') and 16 C.F.R. Sec. 1118.20, Kawasaki
Heavy Industries, Ltd., Kawasaki Motors Corp., U.S.A., and Kawasaki
Motors Manufacturing Corp., U.S.A. (collectively, ``Kawasaki''), and
the United States Consumer Product Safety Commission (``Commission''),
through its staff, hereby enter into this Settlement Agreement
(``Agreement''). The Agreement and the incorporated attached Order
resolve staff's charges set forth below.
THE PARTIES
2. The Commission is an independent federal regulatory agency,
established pursuant to, and responsible for, the enforcement of the
CPSA, 15 U.S.C. Sec. Sec. 2051-2089. By executing the Agreement, staff
is acting on behalf of the Commission, pursuant to 16 C.F.R. Sec.
1118.20(b). The Commission issues this Order under the provisions of
the CPSA.
3. Kawasaki Heavy Industries, Ltd. (``KHI'') is a corporation,
organized and existing under the laws of Japan, with its principal
place of business in Japan.
4. Kawasaki Motors Corp., U.S.A. (``KMC'') is a corporation,
organized and existing under the laws of the state of Delaware, with
its principal place of business in Foothill Ranch, CA. KMC is a wholly-
owned subsidiary of KHI.
5. Kawasaki Motors Manufacturing Corp., U.S.A. (``KMM'') is a
corporation, organized and existing under the laws of the state of
Nebraska, with its principal place of business in Lincoln, NE. KMM is a
wholly-owned subsidiary of KHI.
STAFF CHARGES
6. Between October 2011 and December 2015, Kawasaki manufactured,
distributed, and offered for sale in the United States approximately
11,000 model year 2012 and 2013 Teryx4 750 4x4s (``Teryx4 750'') and
approximately 19,500 2014-2016 model year Teryx4 800 4x4s (``Teryx4
800'') and Teryx 800 4x4s (``Teryx 800'') (collectively, ``Teryxs'' or
``Subject Products''). The Teryxs are four-wheel recreational off-
highway vehicles that have automotive style controls and seating for
two or four persons, depending on model type.
7. KMM manufactures and assembles the Subject Products, which are
then sold to KMC for distribution.
8. KMC is responsible for, among other things, the distribution,
marketing, and Quality Assurance of the Subject Products in the United
States.
9. KHI is primarily responsible for the design, development, and
engineering of the Subject Products. KHI retains ultimate control over
the operations of KMC and KMM, including retaining recall authority.
10. The Teryxs are a ``consumer product,'' ``distribut[ed] in
commerce,'' as those terms are defined or used in sections 3(a)(5) and
(8) of the CPSA, 15 U.S.C. Sec. 2052(a)(5) and (8). Kawasaki is a
``distributor'' or a ``manufacturer'' of the Teryxs, as such terms are
defined in section 3(a)(7) and (11) of the CPSA, 15 U.S.C. Sec.
2052(a)(7) and (11).
Violation of CPSA Section 19(a)(4)
11. The Teryxs contain a defect which could create a substantial
product hazard and create an unreasonable risk of serious injury
because sticks or other debris can break through the Teryxs' floor
board and protrude into the foot rest area, posing an injury hazard to
the operator and front passenger.
12. Between April 2012 and July 2014, Kawasaki received more than
400 incident reports of Teryx4 750 floorboards cracking or breaking
during normal operation due to impact with, or penetration by, debris
from outside the vehicle. At least three of the incident reports
resulted in injuries to consumers, including one serious injury.
13. In April 2012, Kawasaki began an investigation into the Teryx4
750 incidents. In October 2012, Kawasaki approved a design change to
the Teryx4 750. The design change consisted of a metal strike plate to
address the hazard and was implemented on Teryx4 750 models beginning
in early 2013.
14. In May 2013, Kawasaki stopped manufacturing the Teryx4 750 and
began manufacturing the Teryx 800 and Teryx4 800.
15. In December 2013, in anticipation of production for the 2015
model year, Kawasaki approved an additional design change. This design
change involved enhanced floorboard guards for implementation on the
2015 model year Teryx 800 and Teryx4 800.
16. Kawasaki did not immediately inform the Commission under 15
U.S.C. Sec. 2064(b) regarding the defect and risk posed by the Teryx4
750 and did not file a Full Report as required by 16 C.F.R. Sec.
1115.13(d) until July 9, 2014.
17. Kawasaki and the Commission jointly announced a recall of
approximately 11,000 Teryx4 750s on July 30, 2014.
18. Between July 2013 and August 2015, Kawasaki received more than
150 incident reports of Teryx4 800 or Teryx 800 floor boards cracking
or breaking during normal operation due to impact with, or penetration
by, debris from outside the vehicle. At least three of the incident
reports resulted in injuries to consumers, including two serious
injuries.
19. Kawasaki did not immediately inform the Commission under 15
U.S.C. Sec. 2064(b) regarding the defect and risk posed by the Teryx4
800 and Teryx 800 and did not file a Full Report as required by 16
C.F.R. Sec. 1115.13(d) until August 19, 2015.
20. Kawasaki and the Commission jointly announced a recall of
approximately 19,500 Teryx4 800s and Teryx 800s on December 15, 2015.
21. Despite having information reasonably supporting the conclusion
that the Teryxs contained a defect and created an unreasonable risk of
serious injury, Kawasaki did not immediately inform the Commission of
such defect or risk, as required by sections 15(b)(3) and (4) of the
CPSA, 15 U.S.C. Sec. 2064(b)(3) and (4), in violation of section
19(a)(4) of the CPSA, 15 U.S.C. Sec. 2068(a)(4).
22. Because the information in Kawasaki's possession constituted
actual and presumed knowledge, Kawasaki knowingly violated section
19(a)(4) of the CPSA, 15 U.S.C. Sec. 2068(a)(4), as the term
``knowingly'' is
[[Page 25781]]
defined in section 20(d) of the CPSA, 15 U.S.C. Sec. 2069(d).
23. Pursuant to Section 20 of the CPSA, 15 U.S.C. Sec. 2069,
Kawasaki is subject to civil penalties for its knowing violation of
section 19(a)(4) of the CPSA, 15 U.S.C. Sec. 2068(a)(4).
Violation of CPSA Section 19(a)(13)
24. Kawasaki's July 9, 2014, Full Report reported a single incident
and an unspecified number of injuries related to the Subject Products'
floorboards. The Full Report did not identify more than 400 similar
incidents involving the Subject Products about which Kawasaki had
actual or presumed knowledge, and excluded any incidents relating to
the Teryx4 800 and Teryx 800. This omission constitutes a material
misrepresentation under section 19(a)(13) of the CPSA, 15 U.S.C. Sec.
2068(a)(13).
25. Kawasaki's misrepresentation impeded CPSC staff's investigation
into the hazard posed by the Subject Products' floorboards and
Kawasaki's proposed repair, and hampered staff's ability to accurately
communicate the prevalence of the hazard to the public.
26. By knowingly making a material misrepresentation to an officer
or employee of the CPSC in the course of an investigation under the
CPSA, Kawasaki knowingly violated section 19(a)(13) of the CPSA, 15
U.S.C. Sec. 2068(a)(13), as the term ``knowingly'' is defined in
section 20(d) of the CPSA, 15 U.S.C. Sec. 2069(d). Pursuant to section
20 of the CPSA, 15 U.S.C. Sec. 2069, Kawasaki is subject to civil
penalties for its knowing violation of section 19(a)(13) of the CPSA,
15 U.S.C. Sec. 2068(a)(13).
RESPONSE OF KAWASAKI
27. The signing of this Agreement does not constitute an admission
in any respect by Kawasaki of the staff charges, set forth above in
paragraphs 6 through 26, including, but not limited to, that: (a) the
Teryx4 750, Teryx4 800, and Teryx 800 contained a defect which could
create a substantial product hazard and created an unreasonable risk of
serious injury; (b) Kawasaki failed to inform the Commission of any
reportable issues related to the Teryxs in a timely manner, in
accordance with sections 15(b)(3) and (4) of the CPSA, 15 U.S.C.
Sec. Sec. 2064(b)(3) and (4); (c) Kawasaki failed to furnish
information as required by the statute (sections 15(b)(3) and (4), 15
U.S.C. Sec. Sec. 2064(b)(3) and (4)), in violation of section 19(a)(4)
of the CPSA, 15 U.S.C. Sec. 2068(a)(4); and (d) there was any
``knowing'' violation of the CPSA as that term is defined in section
20(d) of the CPSA, 15 U.S.C. Sec. 2069(d).
28. The Teryx4 750, Teryx4 800, and Teryx 800 are side-by-side
recreational off-highway vehicles which are used in a variety of
challenging off-road environments where breakage of various parts,
including floor boards, can occur.
29. Kawasaki conducted a reasonable and diligent investigation of
reported incidents of floor board breakage, including the smaller
number of reported instances of stick penetration and the handful of
reports of injury. Due to the nature of the products and the variety of
ways and environments in which they are used, incident reports can be
difficult to evaluate, since use of the Teryx4 750, Teryx4 800, and
Teryx 800, like all side-by-side recreational off-highway vehicles,
involves the possibility of parts breakage.
30. The voluntary recalls of the Teryx4 750, Teryx4 800, and Teryx
800 and related reporting to the Commission under section 15(b) of the
CPSA, 15 U.S.C. Sec. 2064(b), were conducted by Kawasaki out of an
abundance of caution and without having determined or concluded that
the Teryx4 750, Teryx4 800, and Teryx 800 contained a defect which
could create a substantial product hazard or created an unreasonable
risk of serious injury. Kawasaki may submit a corrective action plan to
the Commission without admitting that either reportable information or
a substantial product hazard exists. See 16 C.F.R. Sec.
1115.20(a)(1)(xiii). Kawasaki also makes design changes to its products
to address customer satisfaction.
31. Kawasaki denies the staff charges that Kawasaki committed a
material misrepresentation by omission in the July 9, 2014 Full Report
in violation of section 19(a)(13) of the CPSA, 15 U.S.C. Sec.
2068(a)(13), and further denies that Kawasaki committed a ``knowing''
violation of section 19(a)(13) as that term is defined in section 20(d)
of the CPSA, 15 U.S.C. Sec. 2069(d).
32. Pursuant to section 20(a)(1) of the CPSA, 15 U.S.C. Sec.
2069(a)(1), the amount of the agreed civil penalty which can be
attributable to the claim of material misrepresentation by omission
under section 19(a)(13) of the CPSA, 15 U.S.C. Sec. 2068(a)(13),
cannot exceed $100,000.
33. Kawasaki believes that it did nothing wrong in this matter and
that it complied with the CPSA in all respects. Kawasaki disputes the
staff's allegations that Kawasaki had information that the Teryxs
contained a defect which could create a substantial product hazard and
created an unreasonable risk of injury. Kawasaki believes that it
informed the Commission of any reportable issues regarding the Teryxs
in a timely manner and furnished information to CPSC as required by the
CPSA. Kawasaki does not believe that it knowingly violated the CPSA as
that term is defined in the statute.
34. Pursuant to paragraphs 43 through 45, Kawasaki will maintain
its program for current and future compliance with the CPSA.
35. Kawasaki enters into this Agreement in order to settle this
matter without the delay and unnecessary expense of litigation.
AGREEMENT OF THE PARTIES
36. Under the CPSA, the Commission has jurisdiction over the matter
involving the Subject Products and over Kawasaki.
37. The parties enter into this Agreement for settlement purposes
only. The Agreement does not constitute an admission by Kawasaki, or a
determination by the Commission, that Kawasaki violated the CPSA's
reporting requirements or made material misrepresentations to an
officer or employee of the Commission.
38. In settlement of staff's charges, and to avoid the cost,
distraction, delay, uncertainty, and inconvenience of protracted
litigation or other proceedings, Kawasaki shall pay a civil penalty in
the amount of five million, two hundred thousand dollars ($5,200,000)
within thirty (30) calendar days after receiving service of the
Commission's final Order accepting the Agreement. All payments to be
made under the Agreement shall constitute debts owing to the United
States and shall be made by electronic wire transfer to the United
States via: https://www.pay.gov, for allocation to, and credit against,
the payment obligations of Kawasaki under this Agreement. Failure to
make such payment by the date specified in the Commission's final Order
shall constitute Default.
39. All unpaid amounts, if any, due and owing under the Agreement,
shall constitute a debt due and immediately owing by Kawasaki to the
United States, and interest shall accrue and be paid by Kawasaki at the
federal legal rate of interest set forth at 28 U.S.C. Sec. 1961(a) and
(b) from the date of Default, until all amounts due have been paid in
full (hereinafter ``Default Payment Amount'' and ``Default Interest
Balance''). Kawasaki shall consent to a Consent Judgment in the amount
of the Default Payment Amount and Default Interest Balance, and the
United States, at its sole option, may collect the entire Default
Payment Amount and Default Interest Balance, or exercise any other
[[Page 25782]]
rights granted by law or in equity, including, but not limited to,
referring such matters for private collection, and Kawasaki agrees not
to contest, and hereby waives and discharges, any defenses to any
collection action undertaken by the United States, or its agents or
contractors, pursuant to this paragraph. Kawasaki shall pay the United
States all reasonable costs of collection and enforcement under this
paragraph, respectively, including reasonable attorney's fees and
expenses.
40. After staff receives this Agreement executed on behalf of
Kawasaki, staff shall promptly submit the Agreement to the Commission
for provisional acceptance. Promptly following provisional acceptance
of the Agreement by the Commission, the Agreement shall be placed on
the public record and published in the Federal Register, in accordance
with the procedures set forth in 16 C.F.R. Sec. 1118.20(e). If the
Commission does not receive any written request not to accept the
Agreement within fifteen (15) calendar days, the Agreement shall be
deemed finally accepted on the 16th calendar day after the date the
Agreement is published in the Federal Register, in accordance with 16
C.F.R. Sec. 1118.20(f).
41. This Agreement is conditioned upon, and subject to, the
Commission's final acceptance, as set forth above, and it is subject to
the provisions of 16 C.F.R. Sec. 1118.20(h). Upon the later of: (i)
Commission's final acceptance of this Agreement and service of the
accepted Agreement upon Kawasaki, and (ii) the date of issuance of the
final Order, this Agreement shall be in full force and effect, and
shall be binding upon the parties.
42. Effective upon the later of: (i) the Commission's final
acceptance of the Agreement and service of the accepted Agreement upon
Kawasaki, and (ii) the date of issuance of the final Order, for good
and valuable consideration, Kawasaki hereby expressly and irrevocably
waives and agrees not to assert any past, present, or future rights to
the following, in connection with the matter described in this
Agreement: (i) an administrative or judicial hearing; (ii) judicial
review or other challenge or contest of the Commission's actions; (iii)
a determination by the Commission of whether Kawasaki failed to comply
with the CPSA and the underlying regulations; (iv) a statement of
findings of fact and conclusions of law; and (v) any claims under the
Equal Access to Justice Act.
43. Kawasaki shall maintain a compliance program designed to ensure
compliance with the CPSA with respect to any consumer product imported,
manufactured, distributed or sold by the Firm, and which shall contain
the following elements: (i) written standards, policies and procedures,
including those designed to ensure that information that may relate to
or impact CPSA compliance (including information obtained by quality
control personnel) is conveyed effectively to personnel responsible for
CPSA compliance, whether or not an injury is referenced; (ii) a
mechanism for confidential employee reporting of compliance-related
questions or concerns to either a compliance officer or to another
senior manager with authority to act as necessary; (iii) effective
communication of company compliance-related policies and procedures
regarding the CPSA to all applicable employees through training
programs or otherwise; (iv) the Firm's senior management responsibility
for, and general board oversight of, CPSA compliance; and (v) retention
of all CPSA compliance-related records for at least five (5) years, and
availability of such records to staff upon request.
44. Kawasaki shall maintain and enforce a system of internal
controls and procedures designed to ensure that, with respect to all
consumer products imported, manufactured, distributed or sold by
Kawasaki: (i) information required to be disclosed by Kawasaki to the
Commission is recorded, processed and reported in accordance with
applicable law; (ii) all reporting made to the Commission is timely,
truthful, complete, accurate and in accordance with applicable law; and
(iii) prompt disclosure is made to Kawasaki's management of any
significant deficiencies or material weaknesses in the design or
operation of such internal controls that are reasonably likely to
affect adversely, in any material respect, Kawasaki's ability to
record, process and report to the Commission in accordance with
applicable law.
45. Upon reasonable request of staff, Kawasaki shall provide
written documentation of its internal controls and procedures,
including, but not limited to, the effective dates of the procedures
and improvements thereto. Kawasaki shall cooperate fully and truthfully
with staff and shall make available all non-privileged information and
materials, and personnel deemed necessary by staff to evaluate
Kawasaki's compliance with the terms of the Agreement.
46. The parties acknowledge and agree that the Commission may
publicize the terms of the Agreement and the Order.
47. Kawasaki represents that the Agreement: (i) is entered into
freely and voluntarily, without any degree of duress or compulsion
whatsoever; (ii) has been duly authorized; and (iii) constitutes the
valid and binding obligation of Kawasaki, enforceable against Kawasaki
in accordance with its terms. Kawasaki will not directly or indirectly
receive any reimbursement, indemnification, insurance-related payment,
or other payment in connection with the civil penalty to be paid by
Kawasaki pursuant to the Agreement and Order. The individuals signing
the Agreement on behalf of Kawasaki represent and warrant that they are
duly authorized by Kawasaki to execute the Agreement.
48. The signatories represent that they are authorized to execute
this Agreement.
49. The Agreement is governed by the laws of the United States.
50. The Agreement and the Order shall apply to, and be binding
upon, Kawasaki and each of its successors, transferees, and assigns;
and a violation of the Agreement or Order may subject Kawasaki, and
each of its successors, transferees, and assigns, to appropriate legal
action.
51. The Agreement and the Order constitute the complete agreement
between the parties on the subject matter contained therein.
52. The Agreement may be used in interpreting the Order.
Understandings, agreements, representations, or interpretations apart
from those contained in the Agreement and the Order may not be used to
vary or contradict their terms. For purposes of construction, the
Agreement shall be deemed to have been drafted by both of the parties
and shall not, therefore, be construed against any party, for that
reason, in any subsequent dispute.
53. The Agreement may not be waived, amended, modified, or
otherwise altered, except as in accordance with the provisions of 16
C.F.R. Sec. 1118.20(h). The Agreement may be executed in counterparts.
54. If any provision of the Agreement or the Order is held to be
illegal, invalid, or unenforceable under present or future laws
effective during the terms of the Agreement and the Order, such
provision shall be fully severable. The balance of the Agreement and
the Order shall remain in full force and effect, unless the Commission
and Kawasaki agree in writing that severing the provision materially
affects the purpose of the Agreement and the Order.
KAWASAKI HEAVY INDUSTRIES, LTD.
Dated: May 12, 2017
[[Page 25783]]
By:--------------------------------------------------------------------
Hideto Yoshitake,
General Manager and Associate Officer.
KAWASAKI MOTORS CORP., U.S.A.
Dated: May 12, 2017
By:--------------------------------------------------------------------
Yoshitaka Tamura,
President and Chief Executive Officer.
KAWASAKI MOTORS MANUFACTURING CORP., U.S.A.
Dated: May 12, 2017
By:--------------------------------------------------------------------
Masanobu Kurushima,
President.
Dated: May 16, 2017
By:--------------------------------------------------------------------
Michael A. Wiegard, Esq.,
Eckert Seamans Cherin & Mellott, LLC Counsel to Kawasaki.
U.S. CONSUMER PRODUCT SAFETY COMMISSION
Mary T. Boyle,
General Counsel.
Mary B. Murphy,
Assistant General Counsel.
Dated: May 22, 2017
By:--------------------------------------------------------------------
Philip Z. Brown,
Trial Attorney, Division of Compliance, Office of the General
Counsel
UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION
In the Matter of: KAWASAKI HEAVY INDUSTRIES, LTD.; KAWASAKI
MOTORS CORP., U.S.A.; and KAWASAKI MOTORS MANUFACTURING CORP.,
U.S.A.
CPSC Docket No.: 17-C0004
ORDER
Upon consideration of the Settlement Agreement entered into between
Kawasaki Heavy Industries, Ltd., Kawasaki Motors Corp., U.S.A., and
Kawasaki Motors Manufacturing Corp., U.S.A. (collectively,
``Kawasaki''), and the U.S. Consumer Product Safety Commission
(``Commission''), and the Commission having jurisdiction over the
subject matter and over Kawasaki, and it appearing that the Settlement
Agreement and the Order are in the public interest, it is:
ORDERED that the Settlement Agreement be, and is, hereby, accepted;
and it is
FURTHER ORDERED that Kawasaki shall comply with the terms of the
Settlement Agreement and shall pay a civil penalty in the amount of
five million, two hundred thousand dollars ($5,200,000) within thirty
(30) days after service of the Commission's final Order accepting the
Settlement Agreement. The payment shall be made by electronic wire
transfer to the Commission via: https://www.pay.gov. Upon the failure of
Kawasaki to make the foregoing payment when due, interest on the unpaid
amount shall accrue and be paid by Kawasaki at the federal legal rate
of interest set forth at 28 U.S.C. Sec. 1961(a) and (b). If Kawasaki
fails to make such payment or to comply in full with any other
provision of the Settlement Agreement, such conduct will be considered
a violation of the Settlement Agreement and Order.
Provisionally accepted and provisional Order issued on the 31st day
of May, 2017.
By Order of the Commission:
-----------------------------------------------------------------------
Todd A. Stevenson, Secretary,
U.S. Consumer Product Safety Commission.
[FR Doc. 2017-11567 Filed 6-2-17; 8:45 am]
BILLING CODE 6355-01-P