Opinion ID: 357169
Heading Depth: 2
Heading Rank: 1

Heading: subject matter jurisdiction under section 11 of the act

Text: 12
13 When rules are required by statute to be made on the record after an opportunity for agency hearing, the formal rulemaking provisions of §§ 556 and 557 of the Administrative Procedure Act apply, 5 U.S.C. § 553(c). Section 557(c) of the APA provides that parties to a proceeding are entitled to file exceptions to initial findings and decisions that must be considered before the agency takes final action. The Association argues that since Section 9 of the Consumer Product Safety Act requires the Commission to provide interested parties with an opportunity for oral presentation of data, views, and arguments, the Act mandates a hearing on the record after an opportunity for an agency hearing, thereby making § 557(c) of the APA applicable to proceedings to issue consumer product safety standards. 14 LSGA's contention that it is entitled to file exceptions before a final rule is promulgated by the Commission is without merit. The Supreme Court has held that before a statute triggers formal rulemaking procedures, it must require a hearing on the record or its equivalent, United States v. Florida East Coast Railroad Company, 410 U.S. 224, 239, 93 S.Ct. 810, 35 L.Ed.2d 223 (1973). Section 9 of the CPSA does not explicitly or implicitly require such a hearing. Normally under informal rulemaking, the agency may in its discretion determine whether parties should be allowed an opportunity for oral presentation of data, views, and arguments, 5 U.S.C. § 553(c). By expressly requiring the Commission to provide an opportunity for oral presentations, Section 9 simply mandates procedures that would otherwise be available only in the exercise of the Commission's discretion. A statutory direction to permit comments to be made orally as well as in writing still presumes the framework of informal rulemaking and does not constitute the mandate of a hearing on the record or its equivalent 8 that would make the formal rulemaking provisions of §§ 556 and 557 of the APA applicable. 9 15 Even if there is no statutory right to file exceptions before a final rule is promulgated under 15 U.S.C. § 2058, LSGA contends that the Commission nevertheless acted as if the exceptions were properly filed, thus tolling the period for judicial review, cf. Tallman v. Udall, 116 U.S.App.D.C. 379, 384, 324 F.2d 411, 416 rev'd on other grounds,380 U.S. 1, 85 S.Ct. 792, 13 L.Ed.2d 616 (1965). LSGA supports its argument by citing a memorandum by the Deputy Secretary of the Commission which states that the decision of the Commission at its July 28 meeting was to deny 'limited exceptions' . 10 LSGA also points to a transcript of the Commission's meeting which notes that the Chairman urged that the Commission deny the request for exceptions. 11 16 The Commission replies by stating that it did not deny the exceptions on the merits, but refused to address them. The Commission marshalls support from the official record of the proceedings, which reports that the Commission has decided not to address the 'limited exceptions' submitted by LSGA. 12 17 We agree with the Commission's view of the nature of its action. While there is casual talk at the Commission meeting of denying the exceptions, it is obvious that they were not considered on the merits. A staff memorandum submitted to the Commission prior to its meeting stated that the limited exceptions were not properly before the Commission. 13 The memorandum noted, however, that the Commission could, in its discretion, consider them in an ad hoc proceeding. No such ad hoc proceeding occurred. The total lack of substantive discussion of the exceptions indicates that the official report stating that they were not addressed fairly reflects what occurred at the Commission meeting. Thus, even assuming the correctness of the Association's underlying legal argument, the 60 day period for judicial review was not tolled by de facto consideration of the limited exceptions submitted by LSGA. 14
18 Relying upon Outland v. C. A. B., 109 U.S.App.D.C. 90, 284 F.2d 224 (1960), LSGA argues that it tolled the statutory period for seeking judicial review by filing a petition for reconsideration with the Commission. In Outland, we held that where a timely petition for rehearing is filed, the statutory period for seeking judicial review is tolled until the final disposition of the petition for rehearing by the agency. 19 Unlike in Outland, however, the Consumer Product Safety Act and regulations promulgated thereunder do not provide for rehearing or reconsideration after the promulgation of a consumer product safety standard. Under the statutory and regulatory scheme, interested parties may make oral and written presentations to the Commission after notice of the proposed consumer product safety standard has been published in the Federal Register, 15 U.S.C. § 2058(a) (2). After considering the commentary, the Commission may promulgate the standard, 15 U.S.C. § 2058(a)(1). Thereafter, affected parties may seek judicial review of the standard, 15 U.S.C. § 2060, or may seek to amend or revoke them, 15 U.S.C. §§ 2058(e), 2059. Because there is no provision for rehearing or reconsideration by the Commission, 15 the policies behind Outland exhaustion of administrative remedies and avoidance of unnecessary filing of protective petitions for judicial review pending final administrative disposition are not pertinent. We therefore find that Outland does not form a basis for tolling the 60 day statutory period for judicial review in this case. 20