60366 Federal Register / Vol. 69, No. 195 / Friday, October 8, 2004 / Notices 

U.S.C. 2051–2084. Violation of this Order 

may subject Respondents to appropriate legal 

action. 

32. This Settlement Agreement may be 

used in interpreting the Order. Agreements, 

understandings, representations, or 

interpretations apart from those contained in 

this Settlement Agreement and Order may 

not be used to vary or contradict its terms. 

33. If, after the effective date hereof, any 

provision of this Settlement Agreement and 

Order is held to be illegal, invalid, or 

unenforceable under present or future laws 

effective during the terms of the Settlement 

Agreement and Order, such provision shall 

be fully severable. The rest of the Settlement 

Agreement and Order shall remain in full 

effect, unless the Commission and 

Respondents determine that severing the 

provision materially affects the purpose of 

the Settlement Agreement and Order. 

34. This Settlement Agreement and Order 

shall not be waived, changed, amended, 

modified, or otherwise altered, except in 

writing executed by the party against whom 

such amendment, modification, alteration, or 

waiver is sought to be enforced and approved 

by the Commission. 

35. The provisions of this Settlement 

Agreement and Order shall apply to 

Respondents and each of their successors and 

assigns.

Dated: September 6, 2004. 

Johnson Health Tech Co., Ltd. 

Jason Lo, 

Chief Executive Officer.

Dated: August 25, 2004.

Horizon Fitness, Inc. 

Robert Whip, 

President.

Thomas L. Skalmoski, Esquire, 

Attorney for Respondents Horizon and 

Johnson.

The U.S. Consumer Product Safety 

Commission. 

Alan H. Schoem, 

Director Office of Compliance.

Eric L. Stone, 

Director, Legal Division, Office of 

Compliance.

Dated: September 10, 2004.

By: Michelle Faust Gillice, 

Trial Attorney

Belinda V. Bell, 

Trial Attorney. Legal Division, Office of 

Compliance.

In the Matter of Johnson Health Tech 

Co., Ltd. and Horizon Fitness, Inc.; 

Order. [CPSC Docket No. 05–C0001]

Upon consideration of the Settlement 

Agreement between Respondents 

Johnson Health Tech Co., Ltd 

(‘‘Johnson’’) and Horizon Fitness, Inc. 

(‘‘Horizon’’) and the staff of the 

Consumer Product Safety Commission, 

and the Commission having jurisdiction 

over the subject matter and over 

Johnson and Horizon, and it appearing 

that the Settlement Agreement and 

Order is in the public interest, it is 

Ordered that the Settlement 

Agreement be, and hereby is, accepted, 

and it is 

Further Ordered that Johnson and 

Horizon shall pay the United States 

Treasury a civil penalty of five hundred 

thousand 00/100 dollars ($500,000) in 

four installments. The first payment of 

$125,000.00 shall be paid within twenty 

(20) calendar days of service of the final 

Settlement Agreement and Order. The 

second payment of $125,000.00 shall be 

paid within 110 days of such service. 

The third payment of $125,000.00 shall 

be paid within 200 days of such service. 

The fourth and final payment of 

$125,000.00 shall be paid within 290 

days of such service. Upon failure of 

Respondents Johnson and Horizon to 

make a payment or upon the making of 

a late payment by Respondents Johnson 

and Horizon (a) the entire amount of the 

civil penalty shall be due and payable, 

and (b) interest on the outstanding 

balance shall accrue and be paid at the 

Federal legal rate of interest under the 

provisions of 28 U.S.C. 1961(a) and (b).

Provisionally accepted and Provisional 

Order issued on the 4th day of October, 2004.

By Order of the Commission:

Todd A. Stevenson, 

Secretary, Consumer Product Safety 

Commission.

[FR Doc. 04–22719 Filed 10–7–04; 8:45 am] 

BILLING CODE 6355–01–M

CONSUMER PRODUCT SAFETY 

COMMISSION 

[CPSC Docket No. 05–C0002] 

Sears, Roebuck and Company, a 

Corporation, 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 16 CFR 1118.20. Published 

below is a provisionally-accepted 

Settlement Agreement with Sears, 

Roebuck and Co., a corporation, 

containing a civil penalty of $500,000.

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 (October 

25, 2004.).

ADDRESSES: Persons wishing to 

comment on this Settlement Agreement 

should send written comments to the 

Comment 05–C00002, Office of the 

Secretary, Consumer Product Safety 

Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT:

Dennis C. Kacoyanis, Trial Attorney, 

Office of Compliance, Consumer 

Product Safety Commission, 

Washington, DC 20207; telephone (301) 

504–7587.

SUPPLEMENTARY INFORMATION: The text of 

the Agreement and Order appears 

below.

Dated: October 4, 2004. 

Todd A. Stevenson, 

Secretary.

In the Matter of Sears, Roebuck and 

Co., a corporation; Settlement 

Agreement and Order 

1. This Settlement Agreement is made 

by and between the staff (‘‘the staff’’) of 

the U.S. Consumer Product Safety 

Commission (‘‘the Commission’’) and 

Sears, Roebuck and Co. (‘‘Sears’’ or 

‘‘Respondent’’), a corporation, in 

accordance with 16 CFR 1118.20 of the 

Commission’s Procedures for 

Investigations, Inspections, and 

Inquiries under the Consumer Product 

Safety Act (‘‘CPSA’’). This Settlement 

Agreement settles the staff’s allegations 

set forth below. 

I. The Parties 

2. The Commission is an independent 

federal regulatory agency responsible for 

the enforcement of the Consumer 

Product Safety Act, 15 U.S.C. 2051 et 

seq.

3. Sears is a corporation organized 

and existing under the laws of the State 

of New York with its principal corporate 

offices located at 3333 Beverly Road, 

Hoffman Estates, IL 60179. 

II. Allegations of the Staff 

4. Between January 1995 and January 

2002, Murray, Inc., 219 Franklin Road, 

Brentwood, TN 37027, manufactured for 

Sears approximately 36,000 rear-engine 

riding lawnmowers, model numbers, 

502.270210, 502.270211, 502.256210, 

502.256220, 502.251250, 536.270211, 

and 536.270212 (‘‘the subject rearengine riding lawnmowers’’ or ‘‘the 

lawnmowers’’). Sears sold the 

lawnmowers under the Craftsman label. 

5. The subject rear-engine riding 

lawnmowers were sold to consumers for 

use in or around a permanent or 

temporary household or residence and 

are, therefore, ‘‘consumer products’’ as 

defined in section 3(a)(1)(i) of the 

Consumer Product Safety Act (CPSA), 

15 U.S.C. 2052(a)(1)(i). Respondent is a 

‘‘retailer’’ and a ‘‘private labeler’’ of the 

subject rear-engine riding lawnmowers, 

which were ‘‘distributed in commerce’’

Federal Register / Vol. 69, No. 195 / Friday, October 8, 2004 / Notices 60367

as those terms are defined in sections 

3(a)(6), (7), (11), and (12) of the CPSA, 

15 U.S.C. 2052(a)(6), (7), (11), and (12). 

6. The subject rear-engine riding 

lawnmowers’ fuel tanks can crack and 

leak fuel and the leaking fuel can ignite, 

posing a burn or fire hazard to 

consumers. 

7. From 1999 through 2001, Sears 

received approximately 1,600 reports of 

fuel leakage and fuel tank cracking 

associated with the subject rear-engine 

riding lawnmowers. Sears replaced the 

fuel tanks on the lawnmowers. 

8. On four occasions between July 

1999 and September 2001, Sears 

forwarded to Murray reports of 

consumers alleging fuel tank leaks on 

the subject rear-engine riding 

lawnmowers. During this period, Sears 

and Murray communicated about the 

fuel tanks leaking.

9. On or about July 15, 2000 and on 

or about August 31, 2000 the 

Commission’s National Injury 

Information Clearinghouse 

(‘‘Clearinghouse’’) forwarded to Sears 

two reports of consumers alleging fuel 

tank leaks on the subject near-engine 

riding lawnmovers. In both instances, 

the Clearinghouse advised Sears that the 

forwarded reports, either alone or with 

other information Sears had or may later 

obtain on the lawnmowers, may 

reasonably support the conclusion that 

the product contained a defect which 

could create a substantial product 

hazard, or create an unreasonable risk of 

serious injury or death. If this were the 

case, the Clearinghouse instructed Sears 

to report under section 15(b) of the 

CPSA, 15 U.S.C. 2064(b). 

10. Despite being aware of the 

information set forth in paragraphs 4 

through 9 above, Sears never reported to 

the Commission. 

11. Sears obtained information which 

reasonably supported the conclusion 

that the subject rear-engine riding 

lawnmower as described in paragraph 4 

above contained a defect which could 

create a substantial product hazard or 

created an unreasonable risk of serious 

injury or death, but failed to report to 

the Commission as required by sections 

15(b)(2) and (3) of the CPSA, 15 U.S.C. 

2064(b)(2) and (3). 

12. By failing to immediately inform 

the Commission as required by section 

15(b) of the CPSA, 15 U.S.C. 2064(b), 

Sears violated section 19(a)(4) of the 

CPSA, 15 U.S.C. 2068(a)(4). 

13. Sears committed this failure to 

report ‘‘knowingly’’ as the term 

‘‘knowingly’’ is defined in section 20(d) 

of the CPSA, 15 U.S.C. 2069(d), thus, 

subjecting Sears to civil penalties under 

section 20 of the CPSA, 15 U.S.C. 2069. 

III. Sears’ Response 

14. Sears contests and denies the 

staff’s allegations set forth above in this 

Settlement Agreement. Sears enters into 

this Settlement Agreement and Order to 

resolve this claim without the expense 

and distraction of litigation. By agreeing 

to this settlement, Sears does not admit 

any of the allegations set forth above in 

this Settlement Agreement, or any fault, 

liability or statutory or regulatory 

violation. 

15. Sears provided all of the reported 

incidents to Murray-the company that 

had designed and manufactured the 

subject rear-engine riding lawnmowersand Sears reasonably expected Murray 

to assess whether, based upon all of the 

information available to Murray, CPSC 

should be notified and/or a corrective 

action should be undertaken. 

16. Sears cooperated in the voluntary 

recall of the subject rear-engine riding 

lawnmowers. 

IV. Agreement of the Parties 

17. The Consumer Product Safety 

Commission has jurisdiction over this 

matter and over Sears under the 

Consumer Product Safety Act, 15 U.S.C. 

2051 et seq.

18. This Agreement is entered into for 

settlement purposes only and does not 

constitute an admission by Sears that it 

has violated the law or a determination 

by the Commission of any disputed 

issue of law or fact.

19. In settlement of the staff’s 

allegations, Sears agrees to pay a civil 

penalty in the amount of FIVE 

HUNDRED THOUSAND DOLLARS 

($500,000.00) as set forth in the 

incorporated Order. 

20. Upon final acceptance of this 

Agreement by the Commission and 

issuance of the Final Order, Respondent 

knowingly, voluntarily, and completely 

waives any rights it may have in this 

matter (1) to an administrative or 

judicial hearing, (2) to judicial review or 

other challenge or contest of the validity 

of the Commission’s actions, (3) to a 

determination by the Commission as to 

whether Respondent failed to comply 

with the CPSA and the underlying 

regulations, (4) to a statement of 

findings of fact and conclusions of law, 

and (5) to any claims under the Equal 

Access of Justice Act. 

21. Upon provisional acceptance of 

this Agreement by the Commission, this 

Agreement shall be placed on the public 

record and shall be published in the 

Federal Register in accordance with the 

procedures set forth in 16 CFR 

1118.20(e). If the Commission does not 

receive any written request not to accept 

the Agreement within 15 days, the 

Agreement will be deemed finally 

accepted on the 16th day after the date 

it is published in the Federal Register. 

22. The Commission may publicize 

the terms of the Settlement Agreement 

and Order. 

23. Sears’ full and timely payment to 

the United States treasury of a civil 

penalty in the amount of FIVE 

HUNDRED THOUSAND DOLLARS 

($500,000.00) resolves the allegations in 

paragraphs 4–13 above with respect to 

(a) Sears; (b) any Sears parent, 

subsidiary, affiliate, division, or related 

entity; (c) any shareholder, director, 

officer, employee, agent or attorney of 

any entity referenced in (a) or (b) above; 

and (d) any successor, heir, or assign of 

any entity referenced in (a), (b), or (c) 

above. 

24. The Commission’s Order in this 

matter is issued under the provisions of 

the CPSA, 15 U.S.C. 2051 et seq., and 

a violation of this Order shall subject 

Sears to appropriate legal action. 

25. This Settlement Agreement may 

be used in interpreting the Order. 

Agreements, understandings, 

representations, or interpretations apart 

from those contained in this Settlement 

Agreement and Order may not be used 

to vary or contradict its terms.

26. The provisions of this Settlement 

Agreement and Order shall apply to 

Sears and each of its successors and 

assigns.

Respondent Sears, Roebuck and CO.

Dated: September 8, 2004.

Pamela R. Schneider, Vice President, Deputy 

General Counsel, Sears, Roebuck and Co., 

3333 Beverly Road, Hoffman Estates, IL 

60179.

Dated: September 13, 2004.

Eric A. Rubel, Esquire, 

Arnold & Porter, Attorneys for Respondent 

Sears, Roebuck and Co., 555 Twelfth Street, 

NW., Washington, DC 20004–1206.

Commission Staff

Nicholas Marchica, 

Acting Assistant Executive Director, Office of 

Compliance, Consumer Product Safety 

Commission, Washington, DC 20207–0001.

Eric L. Stone, Director 

Legal Division, Office of Compliance.

Dated: September 14, 2004.

Dennis C. Kacovanis, 

Trial Attorney, Legal Division, Office of 

Compliance.

In the Matter of Sears, Roebuck, and 

Co., a corporation; Order 

Upon consideration of the Settlement 

Agreement entered into between 

Respondent Sears, Roebuck and Co., a 

corporation, and the staff of the 

Consumer Product Safety Commission; 

and the Commission having jurisdiction 

over the subject matter and Respondent 

Sears, Roebuck and Co.; and it 

60368 Federal Register / Vol. 69, No. 195 / Friday, October 8, 2004 / Notices 

appearing that the Settlement 

Agreement and Order is in the public 

interest, it is 

Ordered that the Settlement 

Agreement be, and hereby is, accepted; 

and it is 

Further Ordered that upon final 

acceptance of the Settlement Agreement 

and Order, Sears, Roebuck and Co. shall 

pay to the Commission a civil penalty 

in the amount of FIVE HUNDRED 

THOUSAND DOLLARS ($5000,000.00) 

within twenty (20) days after service 

upon Respondent of the Final Order of 

the Commission accepting the attached 

Settlement Agreement. Upon the failure 

of Respondent Sears, Roebuck and Co. 

to pay or to make untimely pay the civil 

penalty, interest shall accrue and be 

paid at the Federal legal rate of interest 

under the provisions of 28 U.S.C. 

1961(a) and (b).

Provisionally accepted and Provisional 

Order issued on the 4th date of October, 

2004.

By Order of The Commission.

Todd A. Stevenson, 

Secretary, Consumer Product Safety 

Commission.

[FR Doc. 04–22718 Filed 10–7–04; 8:45 am] 

BILLING CODE 6355–01–M

DEPARTMENT OF DEFENSE

Office of the Secretary 

Proposed collection; comment request

AGENCY: Office of the Secretary of 

Defense, DoD.

ACTION: Notice.

In compliance with Section 

3506(c)(2)(A) of the Paperwork 

Reduction Act of 1995, the Defense 

Security Services (DSS) announces the 

proposed reinstatement of a public 

information collection and seeks public 

comment on the provisions thereof. 

Comments are invited on: (a) Whether 

the proposed collection of information 

is necessary for the proper performance 

of the functions of the agency, including 

whether the information shall have 

practical utility; (b) the accuracy of the 

agency’s estimate of the burden of the 

proposed information collection; (c) 

ways to enhance the quality, utility, and 

clarity of the information to be 

collected; and (d) ways to minimize the 

burden of the information collection on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology.

DATES: Consideration will be given to all 

comments received by December 7, 

2004.

ADDRESSES: Written comments and 

recommendations on the proposed 

information collection should be sent to 

Defense Security Service, Program 

Integration Branch, ATTN: Mr. Richard 

L. Lawhorn, 1340 Braddock Place, 

Alexandria, VA 22314–1650.

FOR FURTHER INFORMATION CONTACT: To 

request more information on this 

proposed information collection or to 

obtain a copy of the proposal and 

associated collection instruments, 

please write to the above address, or call 

Defense Security Service, Program 

Integration Branch (703) 325–5327. 

Title: Associated Form; and OMB 

Number: Personnel Security 

Investigation Projection for Industry 

Survey; DSS Form 232; OMB Number 

0704–0417. 

Needs and Uses: Executive Order (EO) 

12829, ‘‘National Industrial Security 

Program (NISP),’’ stipulates that the 

Secretary of Defense shall serve as the 

Executive Agent for inspecting and 

monitoring the contractors, licensees, 

and grantees who require or will require 

access to classified information; and for 

determining the eligibility for access to 

classified information of contractors, 

licensees, and grantees and their 

respective employees. EO 1282 also 

authorizes the Executive Agent to issue, 

after consultation with affected 

agencies, standard forms that will 

promote the implementation of the 

NISP. 

Under the NISP, the Defense Security 

Service is responsible for conducting 

personnel security investigations of 

employees of those cleared contractor 

entities under its security cognizance. In 

the past, DSS has relied on historical 

data for agency budget projections 

regarding the numbers of personnel 

security investigations required by 

cleared contractor entities; however, 

historical data did not provide a 

particularly accurate or credible 

estimate of such workload. In this 

proposed collection of information, DSS 

requests the voluntary assistance of the 

Facility Security Officers of cleared 

contractor entities to provide 

projections of the numbers and types of 

personnel security investigations 

required. The data will be incorporated 

into DDS’ budget submissions. 

The Assistant Secretary of Defense 

assigned DSS responsibility for the 

following types of investigations within 

industry: 

a. A Single Scope Background 

Investigation (SSBI). 

b. National Agency Check with Local 

Agency Check and Credit Check 

(NACLC). 

c. SSBI Periodic Reinvestigation 

(SSBI–PR or TS–PR). 

In accordance with 5200.2–R, DSS is 

also responsible for conducting TS–PRs 

every 5 years, SECRET–PRs every 10 

years and CONFIDENTIAL–PRs every 

15 years. In addition, under specified 

circumstances, DSS is required to 

conduct SSBIs, NACLCs and National 

Agency Checks (NACs) for sensitive 

positions that do not require personnel 

security clearances. 

Representative of various industry 

associations, the National Industrial 

Security Program Policy Advisory 

Committee (NISPPAC), the Military 

Services, various elements of the 

Department of Defense and other 

Federal Government Agencies are aware 

of the annual survey. 

Affected Public: Business or other for 

profit; Not-for-profit institutions. 

Annual Burden Hours: 15,146. 

Number of Respondents: 12,117. 

Responses per Respondent: 1. 

Average Burden per Response: 75 

minutes. 

Frequency: Annually.

SUPPLEMENTARY INFORMATION: 

Summary of Information Collection 

The executive of the DSS Form 232 is 

an essential factor in projecting the 

needs of cleared contractor entities for 

PSIs. This collection of information 

requests the voluntary assistance of the 

Facility Security Officer to provide 

projections of the numbers and types of 

PSIs. The data will be incorporated into 

DSS’ budget submissions. The form is 

authorized for local reproduction and 

will be available electronically on the 

World Wide Web. The form will display 

OMB approval number 0704–0417.

Dated: September 27, 2004. 

Patricia L. Toppings, 

Alternate OSD Federal Register Liaison 

Officer, Department of Defense.

[FR Doc. 04–22685 Filed 10–7–04; 8:45 am] 

BILLING CODE 5001–06–M

DEPARTMENT OF DEFENSE

Office of the Secretary 

[Transmittal No. 04–18] 

36(b)(1) Arms Sales Notification

AGENCY: Department of Defense, Defense 

Security Cooperation Agency.

ACTION: Notice.

SUMMARY: The Department of Defense is 

publishing the unclassified text of a 

section 36(b)(1) arms sales notification. 

This is published to fulfill the 

requirements of section 155 of Pub. L. 

104–164 dated 21 July 1996.