Federal Register / Vol. 69, No. 218 / Friday, November 12, 2004 / Proposed Rules 65395

III. Where Can I Find More Information 

About This Proposal and the 

Corresponding Direct Final Rule?

I. General Information 

A. Does This Action Apply to Me? 

This action applies to a single source, 

CILCO Edwards Generating Station, in 

Peoria County, IL. 

B. What Should I Consider as I Prepare 

My Comments for EPA? 

1. Submitting CBI. Do not submit 

Confidential Business Information (CBI) 

to EPA through Regional Material in 

EDocket (RME), regulations.gov or email. Clearly mark the part or all of the 

information that you claim to be CBI. 

For CBI information in a disk or CD 

ROM that you mail to EPA, mark the 

outside of the disk or CD ROM as CBI 

and then identify electronically within 

the disk or CD ROM the specific 

information that is claimed as CBI. In 

addition to one complete version of the 

comment that includes information 

claimed as CBI, a copy of the comment 

that does not contain the information 

claimed as CBI must be submitted for 

inclusion in the public docket. 

Information so marked will not be 

disclosed except in accordance with 

procedures set forth in 40 CFR part 2. 

2. Tips for Preparing Your Comments.

When submitting comments, remember 

to: 

a. Identify the rulemaking by docket 

number and other identifying 

information (subject heading, Federal 

Register date and page number). 

b. Follow directions—The agency may 

ask you to respond to specific questions 

or organize comments by referencing a 

Code of Federal Regulations (CFR) part 

or section number. 

c. Explain why you agree or disagree; 

suggest alternatives and substitute 

language for your requested changes. 

d. Describe any assumptions and 

provide any technical information and/

or data that you used. 

e. If you estimate potential costs or 

burdens, explain how you arrived at 

your estimate in sufficient detail to 

allow for it to be reproduced. 

f. Provide specific examples to 

illustrate your concerns, and suggest 

alternatives. 

g. Explain your views as clearly as 

possible, avoiding the use of profanity 

or personal threats. 

h. Make sure to submit your 

comments by the comment period 

deadline identified. 

II. What Action Is EPA Taking Today? 

On July 29, 2003, Illinois submitted a 

site-specific sulfur dioxide (SO2) State 

Implementation Plan (SIP) revision 

request for the Central Illinois Light 

Company’s Edwards Generating Station 

in Peoria County, Illinois (CILCO 

Edwards). This revision request sets 

forth SO2 emission limits for CILCO 

Edwards’ three boilers. These limits are 

identical to the emission limits within 

an earlier temporary SIP revision which 

EPA approved on April 13, 2000 (65 FR 

19838). Therefore, EPA is proposing to 

approve the July 29, 2003, permanent 

SIP revision request. 

III. Where Can I Find More Information 

About This Proposal and the 

Corresponding Direct Final Rule? 

For additional information, see the 

Direct Final Rule which is located in the 

Rules section of this Federal Register. 

Copies of the request and the EPA’s 

analysis are available electronically at 

Regional Material in EDocket (RME) or 

in hard copy at the above address. 

(Please telephone Mary Portanova at 

(312) 353–5954 before visiting the 

Region 5 Office.)

Dated: October 20, 2004. 

Bharat Mathur, 

Acting Regional Administrator, Region 5.

[FR Doc. 04–24917 Filed 11–10–04; 8:45 am] 

BILLING CODE 6560–50–P

COMMITTEE FOR PURCHASE FROM 

PEOPLE WHO ARE BLIND OR 

SEVERELY DISABLED 

41 CFR Parts 51–2, 51–3, and 51–4 

[Docket No. 2004–01–01] 

RIN 3037–AA00 

Governance Standards for Central 

Nonprofit Agencies and Nonprofit 

Agencies Participating in the JavitsWagner-O’Day Program

AGENCY: Committee for Purchase From 

People Who Are Blind or Severely 

Disabled.

ACTION: Notice of proposed rulemaking; 

request for comments. 

SUMMARY: The Committee for Purchase 

From People Who Are Blind or Severely 

Disabled (The Committee), which is 

responsible for administering and 

overseeing the implementation of the 

Javits-Wagner-O’Day (JWOD) Act, 

proposes to amend its regulations by 

requiring nonprofit agencies awarded 

Government contracts under the 

authority of the JWOD Act, as well as 

central nonprofit agencies designated by 

the Committee and nonprofit agencies 

that would like to qualify for 

participation in the JWOD Program, to 

comply with new governance standards. 

The proposed governance standards are 

primarily based on standards that are 

common practice in nonprofit and 

business communities. These new 

standards would include, among other 

things, standards concerning the 

practices of boards of directors and the 

reasonableness of executive and other 

employee compensation. Recent 

accounts alleging, and public concern 

regarding, isolated instances of 

excessive compensation packages for 

nonprofit agency executives; a 

perceived lack of full disclosure in the 

financial reporting of nonprofit 

agencies; and the absence of formal 

guidelines to establish independent 

boards of directors for JWOD-affiliated 

central nonprofit agencies and nonprofit 

agencies prompted this proposed 

change. If fully implemented, this 

change would help promote sound 

governance procedures for central 

nonprofit agencies and nonprofit 

agencies participating in the JWOD 

Program, help ensure the effective and 

transparent administration of 

Government contract funds, and 

continue to maintain a high level of 

public support for the JWOD Program’s 

employment mission.

DATES: Submit your written comments 

on this proposed rule on or before 

January 11, 2005. No public meeting 

will be held. 

Comments on the information 

collection aspects of this proposed rule 

will be considered if received by 

January 11, 2005. The Office of 

Management and Budget (OMB) has up 

to 60 days to approve or disapprove 

information collection but may respond 

after 30 days. Therefore, to ensure 

maximum consideration, your 

comments should be received by OMB 

by December 13, 2004.

ADDRESSES: Send your comments on the 

proposed rule in one of the following 

ways: 

• By electronic mail (preferred 

method) to rulecomments@jwod.gov; 

• By fax, to the attention of G. John 

Heyer, to (703) 603–0655; 

• By postal mail to Committee for 

Purchase From People Who Are Blind 

or Severely Disabled, 1421 Jefferson 

Davis Highway, Jefferson Plaza 2, Suite 

10800, Arlington, VA 22202–3259; or 

• Through the Federal eRulemaking 

Portal at http://www.regulations.gov.

Follow the instructions on the site for 

submitting comments. 

For more information on how to 

submit your comments, please refer to 

the ‘‘Public Comments Solicited’’

section below. 

You may submit comments on the 

information collection aspects of the 

65396 Federal Register / Vol. 69, No. 218 / Friday, November 12, 2004 / Proposed Rules 

proposed rule to the Desk Officer for the 

Committee for Purchase From People 

Who Are Blind or Severely Disabled, 

OMB, Office of Information and 

Regulatory Affairs, via facsimile or email using the following fax number 

and e-mail address: 202/395–6566 (fax); 

OIRA_DOCKET@omb.eop.gov (e-mail). 

Please provide a copy of your comments 

to Janet Yandik, Information 

Management Specialist, Committee for 

Purchase From People Who Are Blind 

or Severely Disabled, 1421 Jefferson 

Davis Highway, Jefferson Plaza 2, Suite 

10800, Arlington, VA, 22202–3259; 

(703) 603–0655 (fax); or 

rulecomments@jwod.gov (e-mail).

Comments will be made available for 

public inspection, from 9 a.m. to 4 p.m. 

on weekdays, at the Committee for 

Purchase From People Who Are Blind 

or Severely Disabled, 1421 Jefferson 

Davis Highway, Jefferson Plaza 2, Suite 

10800, Arlington, VA 22202–3259.

FOR FURTHER INFORMATION CONTACT: G. 

John Heyer, by telephone at (703) 603–

0665, by fax at (703) 603–0655, by email at jheyer@jwod.gov, or by postal 

mail at Committee for Purchase From 

People Who Are Blind or Severely 

Disabled, 1421 Jefferson Davis Highway, 

Jefferson Plaza 2, Suite 10800, 

Arlington, VA, 22202–3259.

SUPPLEMENTARY INFORMATION: 

Background 

The regulations at 41 CFR Chapter 51, 

titled ‘‘Committee for Purchase From 

People Who Are Blind or Severely 

Disabled,’’ provide the requirements, 

standards, and procedures for the JWOD 

Program. The JWOD Program creates 

jobs and training opportunities for 

people who are blind or who have other 

severe disabilities. Its primary means of 

doing so is by requiring Government 

agencies to purchase selected products 

and services from nonprofit agencies 

employing such individuals. As a result, 

JWOD employees are able to lead more 

productive, independent lives. 

Named for its enabling legislation, the 

Javits-Wagner-O’Day Act of 1971 (41 

U.S.C. 46–48c), the JWOD Program is a 

mandatory source of supply for Federal 

employees. The JWOD Program is 

administered by the Committee for 

Purchase From People Who Are Blind 

or Severely Disabled. Two national, 

independent organizations, National 

Industries for the Blind (NIB) and NISH, 

have been designated by the Committee 

as central nonprofit agencies, and these 

organizations help State and private 

nonprofit agencies participate in the 

JWOD Program. 

Governance Standards 

The Committee proposes to require 

nonprofit agencies awarded Government 

contracts under the authority of the 

JWOD Act, as well as central nonprofit 

agencies designated by the Committee 

and nonprofit agencies that would like 

to qualify for participation in the JWOD 

Program, to comply with new 

governance standards. For the purposes 

of this proposal, the term governance 

includes, but is not limited to, the 

structure of the central nonprofit 

agency’s or nonprofit agency’s 

governing authority, such as its Board of 

Directors; auditing and reporting of the 

central nonprofit agency’s or nonprofit 

agency’s finances; executive 

compensation packages provided by the 

central nonprofit agency or nonprofit 

agency; and the central nonprofit 

agency’s or nonprofit agency’s conflict 

of interest policy. Adopting the 

proposed governance standards would 

mean adding a new § 51–2.10 to the 

regulations to provide the standards for 

central nonprofit agencies, qualified 

nonprofit agencies participating in the 

JWOD Program, and nonprofit agencies 

that would like to qualify for 

participation in the JWOD Program; 

adding two new paragraphs to the 

regulations at § 51–3.2 to provide a 

reference to the standards and reporting 

requirements for central nonprofit 

agencies; and adding a new paragraph to 

the regulations at § 51–4.3 to provide a 

reference to the standards for nonprofit 

agencies. 

To date, the Committee’s regulations 

have not included governance 

standards. While the Committee 

believes, based on its experience 

managing the JWOD Program, that the 

overwhelming majority of JWODaffiliated central nonprofit agencies and 

nonprofit agencies operate in an ethical 

and accountable manner, recent 

accounts alleging (and public concern 

regarding) isolated instances of 

excessive compensation packages for 

nonprofit agency executives, a 

perceived lack of full disclosure in the 

financial reporting of nonprofit 

agencies, and the absence of formal 

guidelines to establish independent 

boards of directors for JWOD-affiliated 

central nonprofit agencies and nonprofit 

agencies have prompted the need for 

explicitly stated standards. Therefore, in 

order to help maintain the integrity of 

the JWOD Program, the Committee is 

proposing to add the governance 

standards listed below to the regulations 

at 41 CFR 51–2.10. 

Each central nonprofit agency, 

qualified nonprofit agency participating 

in the JWOD Program, and nonprofit 

agency that would like to qualify for 

participation in the JWOD Program 

would have to comply with Committeeapproved governance standards. In 

evaluating the governance of designated 

central nonprofit agencies and nonprofit 

agencies, the Committee would consider 

compliance to be certification, as 

described under the heading 

‘‘Certification’’ below, by the agency 

that the Board of Directors (or, in the 

case of noncorporate entities such as 

State and local governments, an 

equivalent governing authority): 

• Does not include family members of 

the central nonprofit agency’s or 

nonprofit agency’s management team; 

• Does not have the Chairperson also 

serving as the central nonprofit agency’s 

or nonprofit agency’s Chief Executive 

Officer (CEO), President, Executive 

Director, or equivalent;

• Has an audit committee to oversee 

the central nonprofit agency’s or 

nonprofit agency’s financial affairs, and 

audits are conducted by an independent 

auditing firm that is overseen by the 

audit committee; 

• Reviews and certifies executive 

compensation packages, and develops 

and implements an annual evaluation 

process for the Board or other governing 

authority, as well as for the central 

nonprofit agency’s or nonprofit agency’s 

CEO, President, Executive Director, or 

equivalent; 

• Has adopted a conflict of interest 

policy, and discloses all members’

business relationships with the central 

nonprofit agency or nonprofit agency as 

a part of that policy; 

• Turns over Board, or other 

governing authority, membership on a 

recurring schedule; 

• Reviews and validates all Internal 

Revenue Service (IRS) Form 990s and 

all attachments, and certifies that such 

filings identify all sources of 

compensation income from the central 

nonprofit agency or nonprofit agency 

and related entities; 

• Has at least one financial expert 

serving; and 

• Publishes and makes public the 

minutes of Board, or other governing 

authority, meetings. 

Further, in assessing the 

reasonableness of executive and other 

employee compensation, the Committee 

would consider: 

• The size and complexity of the 

central nonprofit agency’s or nonprofit 

agency’s charter or mission; 

• The mission area, geographic size, 

and financial condition of the central 

nonprofit agency or nonprofit agency; 

• The technical and professional 

qualifications required for positions in 

Federal Register / Vol. 69, No. 218 / Friday, November 12, 2004 / Proposed Rules 65397

the central nonprofit agency or 

nonprofit agency; 

• Compensation packages paid at 

comparable central nonprofit agencies 

or nonprofit agencies; 

• The percentage of the net revenues 

to the central nonprofit agency or 

nonprofit agency realized from the 

JWOD Program paid to employees and 

to senior management; 

• The extent to which the central 

nonprofit agency’s or nonprofit agency’s 

executive compensation packages 

exceed the total compensation offered to 

the typical, highest paid (excluding any 

retention allowances and Presidential 

rank awards), senior executive service 

(SES), career Federal government 

employee, as explained below; and 

• For only nonprofit agencies (not 

central nonprofit agencies), the median 

compensation package for the nonprofit 

agency’s direct labor hour workers and 

how that median compares to the 

compensation packages offered to 

executives. 

Currently, the total compensation 

package offered to the typical, highest 

paid (excluding any retention 

allowances and Presidential rank 

awards), SES, career Federal 

government employee amounts to 

approximately $207,000 per year. This 

amount changes annually, according to 

adjustments in the salary and benefits 

for Federal government employees. The 

Committee would generally consider a 

central nonprofit agency’s or nonprofit 

agency’s executive compensation 

package unreasonable if it exceeds the 

total compensation offered to the 

typical, highest paid (excluding any 

retention allowances and Presidential 

rank awards), SES, career Federal 

government employee, unless the 

central nonprofit agency or nonprofit 

agency can provide adequate 

justification for the level of executive 

compensation to the Committee. The 

basis for comparing a central nonprofit 

agency’s or nonprofit agency’s executive 

compensation to a Federal employee’s 

compensation lies in the fact that the 

JWOD Program is a Federal program and 

the funds obtained through the JWOD 

Program are Federal contract funds. 

The proposed standards also include 

procedures that the Committee would 

follow if a central nonprofit agency or 

qualified nonprofit agency participating 

in the JWOD Program violates the 

governance standards set forth at 41 

CFR 51–2.10. Violation by a qualified 

nonprofit agency participating in the 

JWOD Program would be handled in 

accordance with established procedures 

at 41 CFR 51–4.5, ‘‘Violations by 

nonprofit agencies.’’ Violation by a 

central nonprofit agency would be 

investigated by the Committee’s staff. 

The central nonprofit agency concerned 

would be afforded an opportunity to 

submit a statement of facts and 

evidence. The Committee staff would 

report its findings to the Committee, 

together with its recommendation. In 

reviewing the case, the Committee may 

request the submission of additional 

evidence or may conduct its own 

investigation. If a central nonprofit 

agency failed to correct its violations of 

the governance standards, the 

Committee, after affording the central 

nonprofit agency an opportunity to 

address the Committee on the matter, 

may terminate the central nonprofit 

agency’s designation as a central 

nonprofit agency and its eligibility to 

participate in the JWOD Program. 

Further, if a nonprofit agency that 

would like to qualify for participation in 

the JWOD Program was in violation of 

the proposed governance standards set 

forth at 41 CFR 51–2.10, that agency 

could fail to qualify for participation in 

the JWOD Program.

These new standards should help 

promote an environment of sound 

governance and adequate internal 

controls for JWOD-affiliated central 

nonprofit agencies and nonprofit 

agencies, as well as help ensure the 

effective and transparent administration 

of Government contract funds obtained 

through the JWOD Program. Further, 

these proposed standards should not 

impose an undue burden on central 

nonprofit agencies, nor on nonprofit 

agencies, because such standards are 

common practice in nonprofit and 

business communities. 

Certification 

Certification by a central nonprofit 

agency that the governance standards 

set forth in the proposed § 51–2.10 have 

or have not yet been met would occur 

on a new annual certification form, due 

to the Committee by November 1 of each 

year. Certification by a qualified 

nonprofit agency participating in the 

JWOD Program that the governance 

standards set forth in the proposed § 51–

2.10 have or have not yet been met 

would occur on the existing annual 

certification forms (Committee Form 

403, Annual Certification—Qualified 

Nonprofit Agencies Serving People Who 

Are Blind, or Committee Form 404, 

Annual Certification—Qualified 

Nonprofit Agencies Serving People Who 

Are Severely Disabled), due to the 

Committee by December 1 of each year. 

Certification by a nonprofit agency that 

would like to qualify for participation in 

the JWOD Program that the governance 

standards set forth in the proposed § 51–

2.10 have or have not yet been met 

would occur on the existing initial 

certification forms (Committee Form 

401, Initial Certification—Qualified 

Nonprofit Agency Serving People Who 

Are Blind, or Committee Form 402, 

Initial Certification—Qualified 

Nonprofit Agency Serving People Who 

Are Severely Disabled). These 

certifications are explained in more 

detail below, under the heading 

‘‘Paperwork Reduction Act.’’

As a part of the certification, central 

nonprofit agencies and nonprofit 

agencies would have to supply 

information on the total (cash and 

noncash) compensation paid to their 

key employees during either the fiscal 

year for which they are submitting an 

annual certification (for central 

nonprofit agencies and qualified 

nonprofit agencies participating in the 

JWOD Program) or the dates covered by 

the report (for initial certification of 

nonprofit agencies that would like to 

participate in the JWOD Program). We 

base our definition of a ‘‘key employee’’

on the definition provided by the IRS in 

the instructions to the IRS Form 990; a 

‘‘key employee’’ is any person having 

responsibilities or powers similar to 

those of officers, directors, or trustees. 

The term includes the chief 

management and administrative 

officials of an organization (such as a 

CEO, President, Executive Director, or 

equivalent) but does not include the 

heads of separate departments or 

smaller units within an organization. A 

chief financial officer and the officer in 

charge of administration or program 

operations are both key employees if 

they have the authority to control the 

organization’s activities, its finances, or 

both. The ‘‘heads of separate 

departments’’ are managers within their 

specific areas but not for the 

organization as a whole and, therefore, 

are not key employees. 

The information we would require 

would consist of: 

• The name, address, and title of each 

key employee; 

• A numerical estimate of the average 

hours per week each key employee 

worked in his or her position; 

• The salary, fees, bonuses, and 

severance payments paid to each key 

employee; 

• All forms of deferred compensation 

and future severance payments and all 

payments to welfare benefit plans 

(including, but not limited to, medical, 

dental, life insurance, severance pay, 

and disability plans) paid on behalf of 

each key employee; and 

• All taxable and nontaxable fringe 

benefits (including, but not limited to, 

payments made under indemnification 

arrangements, the value of personal use 

65398 Federal Register / Vol. 69, No. 218 / Friday, November 12, 2004 / Proposed Rules 

of housing, automobiles, or other assets 

owned or leased by the agency or 

provided for the agency’s use without 

charge) provided to each key employee. 

In summary, the information that 

central nonprofit agencies and nonprofit 

agencies would provide to us would be 

the same as what is required under Part 

IV of the IRS Form 990. 

We are proposing to require this 

information instead of a photocopy of 

an agency’s most recently compiled IRS 

Form 990s because, due to differing 

cycles of fiscal years and filing for 

extensions of the deadline to submit IRS 

Form 990s, central nonprofit agencies 

and nonprofit agencies may be two or 

three years behind the current fiscal 

year in filing their IRS Form 990s. Outof-date information would do little to 

help the Committee determine whether 

a central nonprofit agency or nonprofit 

agency is currently meeting the 

requirements of the Committee’s 

regulations. Therefore, we would 

require central nonprofit agencies and 

nonprofit agencies to submit current 

information on the total compensation 

packages offered to key employees. 

Public Comments Solicited 

We invite public comments on this 

proposed rule. Please submit your 

comments by the date given in the 

DATES section using one of the options 

offered in the ADDRESSES section. Please 

mention the docket number (2004–01–

01) at the top of your comments. As all 

comments received will be made 

available for public inspection, please 

do not include any information, such as 

your street address or telephone 

number, that you would prefer to 

remain private. If you choose to send 

your comments by postal mail, please 

include a DOS-formatted 31⁄2-inch disk 

with your written comments. If you 

have any questions about how to 

comment on this proposed rule, please 

contact the person listed under FOR

FURTHER INFORMATION CONTACT. 

All comments we receive will be 

made available for public inspection, 

from 9 a.m. to 4 p.m. on weekdays, at 

the address listed in the ADDRESSES

section. To facilitate public inspection 

of comments, please call (703) 603–7740 

to notify us of your intention to inspect 

comments before coming to the 

Committee office.

Certifications and Required 

Determinations 

Regulatory Flexibility Act 

I certify that the changes proposed in 

this rule would not have a significant 

impact on a substantial number of small 

entities (Regulatory Flexibility Act, 5 

U.S.C. 605(b)). The major factors 

considered for this certification were: 

1. If approved, the action will not 

result in any additional reporting, 

recordkeeping, or compliance 

requirements for small entities other 

than the small organizations that will 

furnish the service to the Government. 

2. There are no known regulatory 

alternatives which would accomplish 

the objectives of the Javits-WagnerO’Day Act (41 U.S.C. 46–48c). 

We invite comments on this 

certification. Please submit your 

comments by the date given in the 

DATES section using one of the options 

offered in the ADDRESSES section. 

Commenters should identify the 

statement(s) underlying the certification 

on which they are providing additional 

information. 

Executive Order 12866 

The Office of Management and Budget 

has determined that this proposal is 

‘‘not significant’’ for purposes of 

Executive Order 12866. 

a. If adopted, this proposal would not 

have an annual economic effect of $100 

million or adversely affect an economic 

sector, productivity, jobs, the 

environment, or other units of 

government. A cost-benefit and 

economic analysis is not required. This 

proposal would have minimal effects on 

regulated entities. 

b. If adopted, this proposal would not 

create inconsistencies with other 

agencies’ actions. No other Federal 

agency has any role in managing the 

JWOD Program. 

c. If adopted, this proposal would not 

materially affect entitlements, grants, 

user fees, loan programs, or the rights 

and obligations of their recipients. 

d. If adopted, this proposal would not 

raise novel legal or policy issues. This 

proposal is designed to incorporate 

standard, high-quality business 

practices into the requirements for 

central nonprofit agencies and nonprofit 

agencies participating in the JWOD 

Program. 

Executive Order 12988 

This proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. If this proposed rule is 

adopted: (1) It will have no preemptive 

effect on State and local laws and 

regulations; (2) no retroactive effect will 

be given to this rule; and (3) 

administrative proceedings will not be 

required before parties may file suit in 

court challenging this rule. 

Executive Order 13132 

This proposal does not contain 

policies with federalism implications 

sufficient to warrant preparation of a 

Federalism Assessment under Executive 

Order 13132 (August 4, 1999). 

Unfunded Mandates Reform Act 

This proposed rule has been reviewed 

under the Unfunded Mandates Reform 

Act (2 U.S.C. 1501 et seq.). If adopted, 

this proposed rule would not impose an 

unfunded mandate on State, local, or 

Tribal governments or the private sector 

of more than $100 million per year, nor 

would it have a significant or unique 

effect on State, Tribal, or local 

governments or the private sector. 

Paperwork Reduction Act 

Office of Management and Budget 

(OMB) regulations at 5 CFR 1320 

implement provisions of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.). A Federal agency may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information unless it displays a 

currently valid OMB control number. 

The OMB regulations at 5 CFR 

1320.3(c) define a ‘‘collection of 

information’’ as the obtaining of 

information by or for an agency by 

means of identical questions posed to, 

or identical reporting, recordkeeping, or 

disclosure requirements imposed on, 10 

or more persons. In addition, the OMB 

regulations at 5 CFR 1320.3(c)(4)(i) state 

that any recordkeeping, reporting, or 

disclosure requirement contained in a 

rule of general applicability (such as 

this proposed rule) is deemed to involve 

10 or more persons. This proposal 

would require a new certification from 

central nonprofit agencies, qualified 

nonprofit agencies participating in the 

JWOD Program, and nonprofit agencies 

that would like to qualify for 

participation in the JWOD Program and 

would require these agencies to supply 

information on the total (cash and 

noncash) compensation paid to their 

key employees (as explained above 

under the heading ‘‘Certification’’). 

These new information collections 

would require OMB approval under the 

Paperwork Reduction Act. 

Simultaneous with the publication of 

this proposed rule, we have submitted 

an application for information 

collection approval from OMB to 

require a new annual certification from 

central nonprofit agencies that the 

governance standards in proposed 41 

CFR 51–2.10 have or have not yet been 

met. This certification would include a 

requirement that central nonprofit 

agencies supply information on the total 

(cash and noncash) compensation paid 

to their key employees during the fiscal 

year for which they are submitting an 

annual certification. The application for 

Federal Register / Vol. 69, No. 218 / Friday, November 12, 2004 / Proposed Rules 65399

information collection approval from 

OMB also requests a revision to our 

existing annual certification forms, 

which are due to us from qualified 

nonprofit agencies participating in the 

JWOD Program by December 1 of each 

year. The revised forms would include 

the new certification proposed in this 

document and a requirement that 

nonprofit agencies supply information 

on the total (cash and noncash) 

compensation paid to their key 

employees during the fiscal year for 

which they are submitting an annual 

certification. In addition, the 

application for information collection 

approval from OMB requests a revision 

to our existing initial certification forms, 

which are required for nonprofit 

agencies that would like to participate 

in the JWOD Program. The revised 

forms would include the new 

certification proposed in this document 

and a requirement that nonprofit 

agencies supply information on the total 

(cash and noncash) compensation paid 

to their key employees during the dates 

covered by the report. We will notify the 

public of OMB’s response to our 

application in the final rule for this 

regulation.

We are asking OMB to approve, for 

the first time, a new Committee Form 

405, which would be the Annual 

Certification–Central Nonprofit 

Agencies. The new form would be due 

to the Committee by November 1 of each 

year from the two designated central 

nonprofit agencies (currently NIB and 

NISH). The new form would require 

each central nonprofit agency’s Officer 

of the Board and Agency Executive to 

certify, via signature, that the 

governance standards in § 51–2.10 have 

or have not yet been met. If the 

governance standards have not yet been 

met, an explanation (with relevant 

documentation attached) would be 

required. The new form would also 

require central nonprofit agencies to 

supply, and certify the accuracy and 

completeness of, information on the 

total (cash and noncash) compensation 

paid to their key employees during the 

fiscal year for which they are submitting 

an annual certification. Lastly, the new 

form would ask if any changes have 

been made during the past year to the 

central nonprofit agency’s articles of 

incorporation or bylaws. This last piece 

of information has been offered 

sporadically over the years by central 

nonprofit agencies; including it on the 

new form would standardize the 

collection of this information. 

We expect that completing this new 

certification form would require a 

moderate amount of time for central 

nonprofit agencies even though the 

certification and any documents to 

support the certification do not exceed 

the knowledge and information 

normally possessed by a prudent person 

in the ordinary course of business 

dealings. We estimate that it would take 

an average of 20 hours for a respondent 

to complete the form, including reading 

the appropriate instructions; referring to 

and reading the new governance 

standards (as provided in § 51–2.10, 

below); certifying that the new 

standards have or have not been met; if 

necessary, providing a brief explanation 

concerning why the governance 

standards have not yet been met and 

attaching appropriate documentation; 

gathering and recording information on 

the total (cash and noncash) 

compensation paid to the agency’s key 

employees during the fiscal year for 

which the agency is submitting an 

annual certification; certifying that the 

central nonprofit agency’s articles of 

incorporation or bylaws have or have 

not changed during the most recent 

fiscal year; and, if necessary, attaching 

any changes to the articles of 

incorporation or bylaws. Therefore, for 

the total number of respondents 

completing this form (2), the new 

information collection requirements 

would result in a total annual burden of 

40 hours. 

Committee Form 403 (Annual 

Certification—Qualified Nonprofit 

Agencies Serving People Who Are 

Blind) and Committee Form 404 

(Annual Certification—Qualified 

Nonprofit Agencies Serving People Who 

Are Severely Disabled) are already 

approved by OMB and assigned OMB 

control numbers 3037–0001 and 3037–

0002, respectively. Both of these control 

numbers expire on March 31, 2006. We 

have submitted a revision request to 

OMB to update these two forms to 

include a new certification statement 

that would require each nonprofit 

agency’s Officer of the Board and 

Agency Executive to certify, via 

signature, that the governance standards 

in § 51–2.10 have or have not yet been 

met. If the governance standards have 

not yet been met, an explanation (with 

relevant documentation attached) would 

be required. In addition, each nonprofit 

agency would have to supply, and 

certify the accuracy and completeness 

of, information on the total (cash and 

noncash) compensation paid to their 

key employees during the fiscal year for 

which they are submitting an annual 

certification. 

We expect the additional certification 

on Committee Form 403 or 404 would 

require a moderate time for respondents 

even though the certification and any 

documents to support the certification 

do not exceed the knowledge and 

information normally possessed by a 

prudent person in the ordinary course of 

business dealings. We estimate that it 

would take an average of 19 hours for 

a respondent to read the appropriate 

instructions; refer to and read the new 

standards (as provided in § 51–2.10, 

below); certify that the new standards 

have or have not been met; if necessary, 

provide a brief explanation concerning 

why the governance standards have not 

yet been met and attach appropriate 

documentation; and gather and record 

information on the total (cash and 

noncash) compensation paid to the 

agency’s key employees during the 

fiscal year for which the agency is 

submitting an annual certification. 

Therefore, for the total number of 

respondents completing both of these 

forms (642; 77 for Form 403, and 565 for 

Form 404), the new information 

collection requirements would result in 

an additional annual burden of 12,198 

hours (1,463 hours for Form 403, and 

10,735 hours for Form 404). In addition, 

in accordance with 41 CFR 51–4.3(b)(4), 

relevant records would have to be made 

available for inspection at any 

reasonable time to representatives of the 

Committee or the central nonprofit 

agency representing the nonprofit 

agency. 

In addition, Committee Form 401 

(Initial Certification–Qualified 

Nonprofit Agency Serving People Who 

Are Blind) and Committee Form 402 

(Initial Certification–Qualified 

Nonprofit Agency Serving People Who 

Are Severely Disabled) are already 

approved by OMB and assigned OMB 

control numbers 3037–0004 and 3037–

0003, respectively. Both of these control 

numbers expire on March 31, 2005. We 

have submitted a revision request to 

OMB to update these two forms to 

include a new certification statement 

that would require each nonprofit 

agency’s Officer of the Board and 

Agency Executive to certify, via 

signature, that the governance standards 

in § 51–2.10 have or have not yet been 

met. If the governance standards have 

not yet been met, an explanation (with 

relevant documentation attached) would 

be required. In addition, each nonprofit 

agency would have to supply, and 

certify the accuracy and completeness 

of, information on the total (cash and 

noncash) compensation paid to their 

key employees during the dates covered 

by the report.

We expect the additional certification 

on Committee Form 401 or 402 would 

require a moderate time for respondents 

even though the certification and any 

documents to support the certification 

do not exceed the knowledge and 

65400 Federal Register / Vol. 69, No. 218 / Friday, November 12, 2004 / Proposed Rules 

information normally possessed by a 

prudent person in the ordinary course of 

business dealings. We estimate that it 

would take an average of 19 hours for 

a respondent to read the appropriate 

instructions; refer to and read the new 

standards (as provided in § 51–2.10, 

below); certify that the new standards 

have or have not been met; if necessary, 

provide a brief explanation concerning 

why the governance standards have not 

yet been met and attach appropriate 

documentation; and gather and record 

information on the total (cash and 

noncash) compensation paid to the 

agency’s key employees during the dates 

covered by the report. Therefore, for the 

total number of respondents completing 

both of these forms (32; 2 for Form 401, 

and 30 for Form 402), the new 

information collection requirements 

would result in an additional annual 

burden of 608 hours (38 hours for Form 

401, and 570 hours for Form 402). 

OMB regulations at 5 CFR part 1320 

require that interested members of the 

public and affected agencies have an 

opportunity to comment on information 

collection and recordkeeping activities. 

We invite comments on: (1) Whether the 

collection of information is necessary 

for the proper performance of the 

functions of the agency, including 

whether the information will have 

practical utility; (2) the accuracy of the 

agency’s estimate of burden, including 

the validity of the methodology and 

assumptions used; (3) ways to enhance 

the quality, utility, and clarity of the 

information on those who are to 

respond, including through the use of 

appropriate automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology; and (4) ways to 

minimize the burden of the collection of 

information on those who are to 

respond. See the DATES and ADDRESSES

sections of this proposed rule for 

information on submitting your 

comments on this information 

collection.

List of Subjects 

41 CFR Part 51–2 

Organization and functions 

(Government agencies). 

41 CFR Part 51–3 

Government procurement, 

Handicapped. 

41 CFR Part 51–4 

Reporting and recordkeeping 

requirements.

For the reasons set forth in the 

preamble, the Committee proposes to 

amend parts 51–2, 51–3, and 51–4 of 

title 41, chapter 51 of the Code of 

Federal Regulations as follows: 

1. The authority citation for parts 51–

2, 51–3, and 51–4 continues to read as 

follows:

Authority: 41 U.S.C. 46–48c.

PART 51–2—COMMITTEE FOR 

PURCHASE FROM PEOPLE WHO ARE 

BLIND OR SEVERELY DISABLED 

2. Add a new § 51–2.10 to read as 

follows:

§ 51–2.10 Program participant governance. 

Each central nonprofit agency, 

qualified nonprofit agency participating 

in the JWOD Program, and nonprofit 

agency that would like to qualify for 

participation in the JWOD Program must 

comply with Committee-approved 

governance standards. 

(a) In evaluating the governance of 

central nonprofit agencies and nonprofit 

agencies, the Committee will consider 

compliance to be certification by the 

agency, in accordance with paragraph 

(d) of this section, that the Board of 

Directors (or, in the case of 

noncorporate entities such as State and 

local governments, an equivalent 

governing authority): 

(1) Does not include family members 

of the central nonprofit agency’s or 

nonprofit agency’s management team; 

(2) Does not have the Chairperson also 

serving as the central nonprofit agency’s 

or nonprofit agency’s Chief Executive 

Officer (CEO), President, Executive 

Director, or equivalent; 

(3) Has an audit committee to oversee 

the central nonprofit agency’s or 

nonprofit agency’s financial affairs, and 

audits are conducted by an independent 

auditing firm that is overseen by the 

audit committee; 

(4) Reviews and certifies executive 

compensation packages, and develops 

and implements an annual evaluation 

process for the Board or other governing 

authority, as well as for the central 

nonprofit agency’s or nonprofit agency’s 

CEO, President, Executive Director, or 

equivalent; 

(5) Has adopted a conflict of interest 

policy, and discloses all members’

business relationships with the central 

nonprofit agency or nonprofit agency as 

a part of that policy; 

(6) Turns over Board, or other 

governing authority, membership on a 

recurring schedule; 

(7) Reviews and validates all Internal 

Revenue Service (IRS) Form 990s and 

all attachments, and certifies that such 

filings identify all sources of 

compensation income from the central 

nonprofit agency or nonprofit agency 

and related entities; 

(8) Has at least one financial expert 

serving; and 

(9) Publishes and makes public the 

minutes of Board, or other governing 

authority, meetings. 

(b) In assessing the reasonableness of 

executive and other employee 

compensation, the Committee will 

consider: 

(1) The size and complexity of the 

central nonprofit agency’s or nonprofit 

agency’s charter or mission; 

(2) The mission area, geographic size, 

and financial condition of the central 

nonprofit agency or nonprofit agency; 

(3) The technical and professional 

qualifications required for positions in 

the central nonprofit agency or 

nonprofit agency; 

(4) Compensation packages paid at 

comparable central nonprofit agencies 

or nonprofit agencies; 

(5) The percentage of the net revenues 

to the central nonprofit agency or 

nonprofit agency realized from the 

JWOD Program paid to employees and 

to senior management; 

(6) The extent to which the central 

nonprofit agency’s or nonprofit agency’s 

executive compensation packages 

exceed the total compensation offered to 

the typical, highest paid (excluding any 

retention allowances and Presidential 

rank awards), senior executive service, 

career Federal government employee; 

and 

(7) For only nonprofit agencies, the 

median compensation package for the 

nonprofit agency’s direct labor hour 

workers and how that median compares 

to the compensation packages offered to 

executives. 

(c) Certification. (1) A central 

nonprofit agency must certify that the 

governance standards set forth in 

paragraphs (a) and (b) of this section 

have or have not yet been met by 

completing the annual certification form 

(Committee Form 405) and providing 

the completed form to the Committee by 

November 1 of each year. 

(2) Qualified nonprofit agencies 

participating in the JWOD Program must 

certify that the governance standards set 

forth in paragraphs (a) and (b) of this 

section have or have not yet been met 

on the annual certification form 

required by § 51–4.3(a) of this chapter. 

(3) Nonprofit agencies that would like 

to qualify for participation in the JWOD 

Program must certify that the 

governance standards set forth in 

paragraphs (a) and (b) of this section 

have or have not yet been met on the 

initial certification form required by 

§ 51–4.2(c) of this chapter. 

(d) Violations. (1) Violations of the 

governance standards set forth in 

paragraphs (a) and (b) of this section by 

Federal Register / Vol. 69, No. 218 / Friday, November 12, 2004 / Proposed Rules 65401

central nonprofit agencies will be 

investigated by the Committee’s staff. 

The central nonprofit agency concerned 

will be afforded an opportunity to 

submit a statement of facts and 

evidence. The Committee staff will 

report its findings to the Committee, 

together with its recommendation. In 

reviewing the case, the Committee may 

request the submission of additional 

evidence or may conduct its own 

investigation. If a central nonprofit 

agency fails to correct its violations of 

the governance standards set forth in 

paragraphs (a) and (b) of this section, 

the Committee, after affording the 

central nonprofit agency an opportunity 

to address the Committee on the matter, 

may terminate the central nonprofit 

agency’s designation as a central 

nonprofit agency and its eligibility to 

participate in the JWOD Program.

(2) Violations of the governance 

standards set forth in paragraphs (a) and 

(b) of this section by qualified nonprofit 

agencies participating in the JWOD 

Program will be handled in accordance 

with 41 CFR 51–4.5, ‘‘Violations by 

nonprofit agencies,’’ of this chapter. 

(e) The information collection 

requirements set forth in this section for 

central nonprofit agencies are included 

on Committee Form 405, which has 

approved by the Office of Management 

and Budget (OMB) under OMB control 

number 3037–xxxx. The information 

collection requirements set forth in this 

section for qualified nonprofit agencies 

participating in the JWOD Program are 

included on Committee Forms 403 and 

404, which have been approved by the 

Office of Management and Budget 

(OMB) under OMB control numbers 

3037–0001 and 3037–0002, respectively. 

The information collection requirements 

set forth in this section for nonprofit 

agencies that would like to qualify for 

participation in the JWOD Program are 

included on Committee Forms 401 and 

402, which have been approved by the 

Office of Management and Budget 

(OMB) under OMB control numbers 

3037–0004 and 3037–0003, respectively. 

A Federal agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a currently valid OMB 

control number.

PART 51–3—CENTRAL NONPROFIT 

AGENCIES 

3. Amend § 51–3.2 by adding new 

paragraphs (o) and (p) to read as 

follows:

§ 51–3.2 Responsibilities under the JWOD 

Program.

* * * * *

(o) Submit to the Committee, by 

November 1 of each year, a completed 

copy of the Annual Certification—

Central Nonprofit Agency (Committee 

Form 405) covering the fiscal year 

ending the preceding September 30. 

(p) Comply with Committee-approved 

governance standards, as provided in 

§ 51–2.10 of this chapter.

PART 51–4—NONPROFIT AGENCIES 

4. Amend § 51–4.3 by adding a new 

paragraph (b)(10) to read as follows:

§ 51–4.3 Maintaining qualification.

* * * * *

(b) * * * 

(10) Comply with Committeeapproved governance standards, as 

provided in § 51–2.10 of this chapter.

* * * * *

Dated: November 5, 2004. 

Leon A. Wilson, Jr., 

Executive Director, Committee for Purchase 

From People Who Are Blind or Severely 

Disabled.

[FR Doc. 04–25233 Filed 11–10–04; 8:45 am] 

BILLING CODE 6353–01–P

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 64 

[CC Docket Nos. 90–71 and 98–67, CG 

Docket No. 03–123; DA 04–3266; 04–137] 

Petitions for Reconsideration of 

Telecommunications Relay Service 

Requirements

AGENCY: Federal Communications 

Commission.

ACTION: Proposed rule.

SUMMARY: This document seeks public 

comment on petitions filed for 

reconsideration and is extending the 

filing dates already set for two of the 

four petitions for reconsideration to 

coincide with the dates set forth in this 

document.

DATES: Interested parties may file 

oppositions to the petitions for 

reconsideration on or before November 

15, 2004. Replies to an opposition may 

be filed on or before November 30, 2004. 

Parties that may have already submitted 

comments in this proceeding need not 

resubmit those comments unless they 

choose to update them.

ADDRESSES: Federal Communications 

Commission, 445 12th Street, SW., 

Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT:

Dana Jackson, Consumer and 

Governmental Affairs Bureau, Disability 

Rights Office at (202) 418–2247 (voice), 

(202) 418–7898 (TTY), or e-mail at 

Dana.Jackson@fcc.gov.

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s public 

notice DA 04–3266, released October 15, 

2004. When filing oppositions and 

replies to an opposition, please 

reference CC Docket Nos. 90–571 and 

No. 98–67 or CG Docket No. 03–123. 

Oppositions and replies to an 

opposition may be filed using the 

Commission’s Electronic Comment 

Filing System (ECFS) or by filing paper 

copies. See Electronic Filing of 

Documents in Rulemaking Proceedings, 

63 FR 24121, May 1, 1998. Oppositions 

and replies to an opposition filed 

through the ECFS can be sent as an 

electronic file via the Internet to

<http://www.fcc.gov/e-file/ecfs.html>. 

Generally, only one copy of an 

electronic submission must be filed. If 

multiple docket or rulemaking numbers 

appear in the caption of this proceeding, 

however, commenters must transmit 

one electronic copy of the oppositions 

and replies to an opposition to each 

docket or rulemaking number 

referenced in the caption. In completing 

the transmittal screen, commenters 

should include their full name, Postal 

Service mailing address, and the 

applicable docket or rulemaking 

number. Parties may also submit 

electronic oppositions and replies to an 

opposition by Internet e-mail. To get 

filing instructions, commenters should 

send an e-mail to ecfs@fcc.gov, and 

should include the following words in 

the body of the message, ‘‘get form 

<your e-mail address>.’’ A sample form 

and directions will be sent in reply. 

Parties who choose to file by paper must 

file an original and four copies of each 

filing. If more than one docket or 

rulemaking number appears in the 

caption of this proceeding, commenters 

must submit two additional copies for 

each additional docket or rulemaking 

number. Filings can be sent by hand or 

messenger delivery, by electronic 

media, by commercial overnight courier, 

or by first-class or overnight U.S. Postal 

Services mail (although we continue to 

experience delays in receiving U.S. 

Postal Service mail). The Commission’s 

contractor, Natek, Inc., will receive 

hand-delivered or messenger-delivered 

paper filings or electronic media for the 

Commission’s Secretary at 236 

Massachusetts Avenue, NE., Suite 110, 

Washington, DC 20002. The filing hours 

at this location are 8 a.m. to 7 p.m. All 

hand deliveries must be held together 

with rubber bands or fasteners. Any 

envelopes must be disposed of before 

entering the building. Commercial and