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									                                             28698                        Federal Register / Vol. 71, No. 95 / Wednesday, May 17, 2006 / Notices

                                             NW.; Suite 1000; Washington, DC                           Dated: May 12, 2006.                                  Comments should also be submitted
                                             20004.                                                  Bryant L. VanBrakle,                                  to: Office of Management and Budget,
                                               Synopsis: The agreement provides                      Secretary.                                            Attention: Desk Officer for the Federal
                                             that the parties may coordinate their                   [FR Doc. E6–7502 Filed 5–16–06; 8:45 am]              Trade Commission. Comments should
                                             general commercial agency operations                    BILLING CODE 6730–01–P                                be submitted via facsimile to (202) 395–
                                             in the United States, including                                                                               6974 because U.S. Postal Mail is subject
                                             appointment of common agents to act                                                                           to lengthy delays due to heightened
                                             with respect to such matters as general                 FEDERAL TRADE COMMISSION                              security precautions.
                                             agency services, sales, marketing,                                                                              The FTC Act and other laws the
                                             booking and documentation, billing and                  Agency Information Collection                         Commission administers permit the
                                             collection, vessel chartering,                          Activities; Proposed Collection;                      collection of public comments to
                                             coordination of sailings, routings and                  Comment Request; Extension                            consider and use in this proceeding as
                                             port calls, pricing, and terminal and                                                                         appropriate. All timely and responsive
                                             port matters with respect to voyages to                 AGENCY:   Federal Trade Commission 
                  public comments will be considered by
                                             and from the U.S. and non-U.S. ports.                   (‘‘FTC’’ or ‘‘Commission’’). 
                        the Commission and will be available to
                                             The agreement does not establish any                    ACTION: Notice. 
                                     the public on the FTC Web site, to the
                                             form of joint venture.                                                                                        extent practicable, at http://www.ftc.gov.
                                                                                                     SUMMARY: The information collection
                                                                                                                                                           As a matter of discretion, the FTC makes
                                               Dated: May 12, 2006.                                  requirements described below will be
                                                                                                                                                           every effort to remove home contact
                                               By Order of the Federal Maritime                      submitted to the Office of Management
                                                                                                                                                           information for individuals from the
                                             Commission.                                             and Budget (‘‘OMB’’) for review, as
                                                                                                                                                           public comments it receives before
                                             Bryant L. VanBrakle,                                    required by the Paperwork Reduction
                                                                                                                                                           placing those comments on the FTC
                                             Secretary.                                              Act (‘‘PRA’’) (44 U.S.C. 3501–3520). The
                                                                                                                                                           website. More information, including
                                             [FR Doc. E6–7501 Filed 5–16–06; 8:45 am]                FTC is seeking public comments on its
                                                                                                                                                           routine uses permitted by the Privacy
                                                                                                     proposal to extend through May 31,
                                             BILLING CODE 6730–01–P                                                                                        Act, may be found in the FTC’s privacy
                                                                                                     2009 the current PRA clearance for
                                                                                                                                                           policy at http://www.ftc.gov/ftc/
                                                                                                     information collection requirements
                                                                                                                                                           privacy.htm.
                                             FEDERAL MARITIME COMMISSION                             contained in its Telemarketing Sales
                                                                                                     Rule, 16 CFR 435 (‘‘TSR’’ or ‘‘Rule’’). On            FOR FURTHER INFORMATION CONTACT:
                                             Ocean Transportation Intermediary                       February 2, 2006, the OMB granted the                 Requests for additional information or
                                             License Applicants                                      FTC’s request for a short-term extension              copies of the proposed information
                                                                                                     of this clearance to May 31, 2006.                    requirements should be sent to Gary
                                               Notice is hereby given that the                                                                             Ivens, Attorney, Division of Marketing
                                                                                                     DATES: Comments must be received on
                                             following applicants have filed with the                                                                      Practices, Bureau of Consumer
                                                                                                     or before June 16, 2006.
                                             Federal Maritime Commission an                                                                                Protection, Federal Trade Commission,
                                                                                                     ADDRESSES: Interested parties are
                                             application for license as a Non-Vessel-                                                                      600 Pennsylvania Ave., NW.,
                                             Operating Common Carrier and Ocean                      invited to submit written comments.
                                                                                                     Comments should refer to                              Washington, DC 20580, (202) 326–2330.
                                             Freight Forwarder-Ocean Transportation                                                                        SUPPLEMENTARY INFORMATION: On
                                             Intermediary pursuant to section 19 of                  ‘‘Telemarketing Sales Rule: FTC File No.
                                                                                                     P994414’’ to facilitate the organization              January 20, 2006, the FTC sought
                                             the Shipping Act of 1984 as amended                                                                           comment on the information collection
                                             (46 U.S.C. app. 1718 and 46 CFR part                    of comments. A comment filed in paper
                                                                                                     form should include this reference both               requirements associated with the TSR,
                                             515).                                                                                                         16 CFR 435 (OMB Control Number:
                                                                                                     in the text and on the envelope and
                                               Persons knowing of any reason why                                                                           3084–0097). See 71 FR 3302. No
                                                                                                     should be mailed or delivered, with two
                                             the following applicants should not                                                                           comments were received. Pursuant to
                                                                                                     complete copies, to the following
                                             receive a license are requested to                                                                            the OMB regulations that implement the
                                                                                                     address: Federal Trade Commission,
                                             contact the Office of Transportation                                                                          PRA (5 CFR 1320), the FTC is providing
                                                                                                     Room H–135 (Annex J), 600
                                             Intermediaries, Federal Maritime                                                                              this second opportunity for public
                                                                                                     Pennsylvania Ave., NW., Washington,
                                             Commission, Washington, DC 20573.                                                                             comment while seeking OMB approval
                                                                                                     DC 20580. Because paper mail in the
                                               Non-Vessel-Operating Common                           Washington area and at the Commission                 to extend the existing paperwork
                                             Carrier and Ocean Freight Forwarder-                    is subject to delay, please consider                  clearance for the Rule. All comments
                                             Transportation Intermediary Applicant:                  submitting your comments in electronic                should be filed as prescribed in the
                                             Werner Enterprises, Inc., 14507 Frontier                form, (in ASCII format, WordPerfect, or               ADDRESSES section above, and must be
                                               Road, Omaha, NE 68138. Officers:                      Microsoft Word) as part of or as an                   received on or before June 16, 2006.
                                               John H. Ohle, Director of Opera.,                     attachment to e-mail messages directed                   The TSR implements the
                                               (Qualifying Individual), Greg Werner,                 to the following e-mail box:                          Telemarketing and Consumer Fraud and
                                               President.                                            paperworkcomment@ftc.gov. However,                    Abuse Prevention Act, 15 U.S.C. 6101–
                                               Ocean Freight Forwarder-Ocean                         if the comment contains any material for              6108 (‘‘Telemarketing Act’’), as
                                             Transportation Intermediary Applicants:                 which confidential treatment is                       amended by the Uniting and
                                                                                                     requested, it must be filed in paper                  Strengthening America by Providing
                                             Elocate Logistic Consultants, Inc., dba                                                                       Appropriate Tools Required to Intercept
                                               LTV Relocation Services, 9262 North                   form, and the first page of the document
                                                                                                     must be clearly labeled ‘‘Confidential.’’ 1           and Obstruct Terrorism Act (‘‘USA
                                               West 101 Street, Miami, FL 33178.                                                                           PATRIOT Act’’), Public Law 107056
                                               Officer: Manuel Jesus Rojas,                            1 Commission Rule 4.2(d), 16 CFR 4.2(d). The        (Oct. 25, 2001). The Telemarketing Act
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                                               President, (Qualifying Individual).                   comment must be accompanied by an explicit            seeks to prevent deceptive or abusive
                                             Scan-Shipping Inc., 20 Pulaski Street,                  request for confidential treatment, including the     telemarketing practices in
                                               Bayonne, NJ 07002. Officers: Henrik                   factual and legal basis for the request, and must
                                                                                                     identify the specific portions of the comment to be   telemarketing, which, pursuant to the
                                               Kjaereng, General Manager,                            withheld from the public record. The request will
                                               (Qualifying Individual), Steen                        be granted or denied by the Commission’s General      public interest. See Commission Rule 4.9(c), 16 CFR
                                               Dyrholm, Vice President.                              Counsel, consistent with applicable law and the       4.9(c).



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                                                                           Federal Register / Vol. 71, No. 95 / Wednesday, May 17, 2006 / Notices                                                        28699

                                             USA PATRIOT Act, includes calls made                     necessary and when newer figures are                    (15,000 × 1 = 15,000)).9 The
                                             to solicit charitable contributions. It                  available.                                              Commission staff also estimates that 75
                                             mandates certain disclosures by                                                                                  new entrants per year would need to
                                                                                                      Burden Statement
                                             telemarketers, and directs the                                                                                   spend 100 hours each developing a
                                             Commission to consider including                            Estimated annual hours burden:                       recordkeeping system that complies
                                             recordkeeping requirements in                            2,500,000 hours.                                        with the Rule for an annual total of
                                             promulgating a telemarketing rule to                        The estimated recordkeeping burden                   7,500 burden hours. These figures,
                                             address such practices. The TSR,                         is 28,000 hours for all industry members                based on prior estimates, are consistent
                                             implementing the Telemarketing Act,                      affected by the Rule. The estimated                     with staff’s current knowledge of the
                                             mandates certain disclosures regarding                   burden related to the disclosures that                  industry. Thus, the total estimated
                                             telephone sales and requires                             the Rule requires is 2,472,000 hours                    annual recordkeeping burden for new
                                             telemarketers to retain certain records                  (rounded to nearest thousand) for all                   and existing telemarketing entities is
                                             regarding advertising, sales, and                        affected industry members. Thus, the                    23,000 hours (rounded to the nearest
                                             employees. The disclosures provide                       total PRA burden is 2,500,000 hours.                    thousand).
                                             consumers with information necessary                                                                                In the 2003 Supporting Statement, the
                                             to make informed purchasing decisions.                      Recordkeeping: Following the                         Commission staff estimated that 2,500
                                             The records are available for inspection                 publication of the amended TSR in                       telefunder firms—professional
                                             by the Commission and other law                          2003, the Commission staff estimated                    telefunders soliciting on behalf of
                                             enforcement personnel to determine                       that there were 7,400 telemarketing                     charities—would also be subject to the
                                             compliance with the Rule. Records may                    firms that were potentially subject to the              Rule, which was amended to include
                                             also yield information helpful to                        Rule. This estimate was based on the                    calls to solicit charitable contributions
                                             measuring and redressing consumer                        limited input the Commission received                   pursuant to the USA PATRIOT Act.10
                                             injury stemming from Rule violations.                    in response to the Original User Fee                    Staff estimated that the recordkeeping
                                                On January 29, 2003, the Commission                   NPRM, 67 FR 37,362 (May 29, 2002),                      burden per entity per year would be no
                                             issued final amendments to the TSR,                      regarding the number of firms that                      more than one hour for a cumulative
                                             which, inter alia, established the                       would likely access the National                        total of approximately 2,500 hours. Staff
                                             National Do Not Call Registry (‘‘National                Registry as well as further staff analysis              also estimated that 25 new telefunding
                                             Registry’’), permitting consumers to                     of the information received. Since that                 entrants per year would require 100
                                             register, via either a toll-free telephone               time, the Commission has begun                          hours each to set up recordkeeping
                                             number or the Internet, their preference                 operation of the National Registry, and,                systems that would comply with the
                                             not to receive certain telemarketing                     in the year March 1, 2005, through                      TSR. Thus, the cumulative
                                             calls.2 Accordingly, under the TSR,                      February 28, 2006, slightly less than                   recordkeeping burden for telefunder
                                             most telemarketers are required to                       66,200 entities accessed the National                   firms was 5,000 hours. No new data
                                             refrain from calling consumers who                       Registry.6 Of these, approximately 1,300                suggests that these estimates are
                                             have placed their numbers on the                         were ‘‘exempt’’ entities obtaining access               inaccurate; therefore, the Commission
                                             National Registry.3 Telemarketers must                   to data for more than one state.7 By                    staff retains these estimates.
                                             periodically access the National Registry                definition, none of the exempt entities                    The cumulative annual recordkeeping
                                             to remove from their telemarketing lists                 are subject to the TSR. Additionally,                   burden for all entities subject to the
                                             the telephone numbers of those                           49,574 were non-exempt entities                         TSR—both telefunder and telemarketing
                                             consumers who have registered.4 Other                    obtaining data for only a single state.                 firms alike—is 28,000 hours.
                                             than the minimal burden associated                       Staff assumes that these entities are                      Disclosures: Staff believes that a
                                             with supplying basic identifying                         operating solely intrastate, and thus are               substantial majority of telemarketers
                                             information to the operator of the                       exempt from the TSR.8 Thus, staff                       make in the ordinary course of business
                                             National Registry, which is discussed                    estimates that 15,000 entities, rounded                 the disclosures the Rule requires
                                             below, the amendments to the Rule                        to the nearest thousand, (66,200 ¥                      because to do so constitutes good
                                             associated with the National Registry do                 1,300 ¥ 49,574 = 15,326) are currently                  business practice. To the extent this is
                                             not impact PRA burden.                                   subject to the TSR.                                     so, the time and financial resources
                                                The Supporting Statement for                             The staff continues to estimate that                 needed to comply with disclosure
                                             Information Collection Provisions of the                 these 15,000 telemarketing entities                     requirements do not constitute
                                             TSR (‘‘2003 Supporting Statement’’),                     subject to the Rule each require                        ‘‘burden.’’ 16 CFR 1320.3(b)(2).
                                             submitted to OMB following the 2003                      approximately 1 hour per year to file                   Moreover, many state laws require the
                                             amendment of the TSR, includes                           and store records required by the TSR                   same or similar disclosures the Rule
                                             substantial analysis in support of the                   for an annual total of 15,000 burden                    mandates. Thus, the disclosure hours
                                             burden estimates included in that                        hours (rounded to the nearest thousand                  burden attributable solely to the Rule is
                                             document.5 The figures used in this                                                                              far less than the total number of hours
                                             Notice are based on those from the 2003                     6 The March 2005 through February 2006 time          associated with the disclosures overall.
                                             Supporting Statement, updated when                       frame differs from that used in the January 20, 2006    As when the FTC last sought OMB
                                                                                                      Notice (which used data from calendar year 2004)        clearance for this Rule, staff estimates
                                                                                                      and the burden estimates herein have been adjusted
                                               2 68  FR 4580 (Jan. 29, 2003).                         accordingly.
                                                                                                                                                              that most of the disclosures the Rule
                                               3 16  CFR 310.4(b)(1)(iii)(B).                            7 An exempt entity is one that, although not         requires would be made in at least 75
                                                4 16 CFR 310.4(b)(3)(iv). The TSR requires            subject to the TSR and the Federal Communication        percent of telemarketing calls even
                                             telemarketers to access the National Registry at least   Commission’s Telephone Consumer Protection Act          absent the Rule. Accordingly, staff
                                             once every 31 days, effective January 1, 2005. See       regulations, chooses to voluntarily scrub its calling   determined that the hours burden
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                                             69 FR 16368 (Mar. 29, 2004). The Commission has          lists against the data in the National Registry.
                                             recently proposed to revise the fees charged to             8 These entities would nonetheless likely be
                                                                                                                                                              estimate for most of the Rule’s
                                             entities who must pay for access to the National         subject to the Federal Communication
                                             Registry. See 71 FR 25512 (May 1, 2006).                 Commission’s Telephone Consumer Protection Act            9 The January 20, 2006 Notice erroneously
                                                5 The 2003 Supporting Statement is available at       regulations, including the requirement that entities    indicated a burden of 2.3 hours per entity.
                                             http://www.ftc.gov/bcp/rulemaking/tsr/                   engaged in intrastate telephone solicitations access      10 Telefunders are not subject to the National

                                             tsrrulemaking/tsrss2003.pdf.                             the National Registry.                                  Registry provisions of the TSR.



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                                             28700                           Federal Register / Vol. 71, No. 95 / Wednesday, May 17, 2006 / Notices

                                             disclosure requirements is 25 percent of                   that at least 60 percent of sale calls                     × 20% sales conversion × .1%
                                             the total hours associated with                            result in ‘‘hang-ups’’ before the                          [estimated involving CCLP] × 4 seconds)
                                             disclosures of the type the TSR requires.                  telemarketer can make all the required                     + (570 million calls × 10% [estimated
                                                Staff estimates the total disclosure                    disclosures and that ‘‘hang-up’’ calls                     involving negative options] × 4 seconds
                                             burden attributable to the Rule to be                      consume only 2 seconds. Accordingly,                       × 25% burden) + (570 million calls ×
                                             2,472,000 hours (rounded to the nearest                    staff estimates that the total time                        40% upsell conversion × 20% sales
                                             thousand). Based on industry data, staff                   associated with these disclosure                           conversions × 10% [estimated involving
                                             estimates that the 15,000 telemarketing                    requirements is approximately 1.14                         negative options] × 4 seconds × 25%
                                             entities subject to the Rule make 6.2                      million hours per year [((1.2 billion non-                 burden) + (3.3 billion inbound calls ×
                                             billion calls per year, or 413,000 calls                   hangup calls [2.9 billion outbound calls                   40% upsell conversions × 20% sales
                                             per year per company (rounded to the                       × 40%] × 7 seconds) + (1.7 billion                         conversions × 10% [estimated involving
                                             nearest thousand).11 The TSR provides                      hangup calls [2.9 billion × 60%] × 2                       negative options] × 4 seconds × 25%
                                             that if an industry member chooses to                      seconds) + (570 million calls × 40%                        burden)] + (3.3 billion inbound calls ×
                                             solicit inbound calls from consumers by                    [estimated upsell conversion] × 3                          .3% [estimated business opportunity] ×
                                             advertising media other than direct mail                   seconds) + (3.3 billion inbound calls ×                    8 seconds). The total annual burden for
                                             or by using direct mail solicitations that                 40% [estimated upsell conversion] × 3                      all of the sales disclosures is 553,000
                                             make certain required disclosures                          seconds)) × 25% burden] or 76 hours
                                             (providing for an inbound telephone                                                                                   hours (rounded to the nearest thousand)
                                                                                                        per firm [1.14 million hours /15,000
                                             call as a possible response), that                                                                                    or 37 hours annually per firm.
                                                                                                        firms].
                                             member is exempted from complying                             The TSR also requires further                              As noted above, staff retains its prior
                                             with the Rule’s oral disclosures. Based                    disclosures in telemarketing sales calls                   estimate that 2,500 telefunder firms are
                                             on previous estimates, staff estimates                     before the customer pays for goods or                      subject to the Rule. The only disclosures
                                             that of the 15,000 telemarketing entities,                 services. These disclosures include the                    that the TSR requires in solicitations for
                                             12,656 (27:32) firms conduct inbound                       total costs of the offered goods or                        charitable contributions are the
                                             telemarketing, and that of these,                          services; all material restrictions; and all               disclosures in § 310.4(e)—that the call is
                                             approximately 4,200 (one-third) will                       material terms and conditions of the                       to solicit a charitable contribution and
                                             choose to adopt marketing methods that                     seller’s refund, cancellation, exchange,                   the identity of the charitable
                                             exempt them from complying with the                        or repurchase policies (if a                               organization on whose behalf the call is
                                             Rule’s verbal disclosure requirements.12                   representation about such a policy is a                    being made. The total burden for
                                                The staff retains its estimate that, in                 part of the sales offer). Additional                       disclosures made in solicitations for
                                             a telemarketing call involving the sale of                 specific disclosures are required if the                   charitable contributions is 778,000
                                             goods or services, it takes 7 seconds for                  call involves a prize promotion, the sale                  hours (rounded to the nearest thousand)
                                             telemarketers to disclose the required                     of credit card loss protection products                    [(1.6 billion calls with no early hang up
                                             outbound call information orally plus 3                    or an offer with a negative option                         × 4 seconds × 25% burden) + (2.4 billion
                                             additional seconds to disclose the                         feature.                                                   calls with early hang-up × 2 seconds ×
                                             information required in the case of an                        Staff estimates that the general sales                  25% burden].
                                             upsell.13 Staff also retains its estimate                  disclosures require 499,167 hours
                                                                                                        annually. This figure includes the                            Finally, any entity that accesses the
                                                11 Staff’s estimates are likely to be conservative in
                                                                                                        burden for written disclosures [(4,200                     National Registry, regardless of whether
                                             light of consumer research that has been conducted         firms [estimated using direct mail] × 10                   it is paying for access, must submit
                                             after implementation of the National Registry. For
                                             example, one survey conducted by Harris                    hours per year × 25% burden) = 10,500                      minimal identifying information to the
                                             Interactive in January 2004 determined that 92%           hours, as well as the figure for oral                      operator of the National Registry. This
                                             of consumers who signed up for the National                disclosures [(570 million calls × 8                        basic information includes, the name
                                             Registry received fewer telemarketing calls and            seconds × 25% burden) + (570 million                       address and telephone number of the
                                             25% reported that they had received no
                                             telemarketing calls. Similarly, another survey             outbound calls × 40% (upsell                               entity, a contact person for the
                                             conducted by Customer Care Alliance found that             conversion) × 20% sales conversion ×                       organization, and information about the
                                             60% of consumers who placed their home                     25% burden × 8 seconds) + (3.3 billion                     matter of payment. The entity also
                                             telephone number on the National Registry                  inbound calls × 40% upsell conversion                      needs to submit a list of the area codes
                                             experienced an 80% reduction in the volume of
                                             telemarketing calls. Nonetheless, as noted above,          × 20% sales conversion × 25% burden                        of data for which it requests
                                             the figures used in this Notice are based on those         × 8 seconds)].                                             information. In addition, the entity has
                                             from the 2003 Supporting Statement, updated when              Staff also estimates that the specific                  to certify that it is accessing the
                                             necessary and when newer figures are available.            sales disclosures require 53,348 hours                     National Registry solely to comply with
                                             Accordingly, due to the lack of precise, verifiable
                                             information concerning the current volume of               annually [(570 million calls × 5%                          the provisions of the TSR. If the entity
                                             telemarketing calls, staff continues to rely upon the      [estimated involving prize promotion] ×                    is accessing the National Registry on
                                             data released by the Direct Marketing Association          3 seconds × 25% burden) + (570 million                     behalf of other seller or telemarketer
                                             (‘‘DMA’’) in 2001. See The DMA, Statistical Fact           calls × .1% [estimated involving credit                    clients, it has to submit basic identifying
                                             Book 2001 (23rd ed. 2001).
                                                12 While staff does not have information directly
                                                                                                        card loss protection (‘‘CCLP’’)] × 4                       information about those clients, a list of
                                             stating the number of inbound telemarketers, it            seconds) + (570 million calls × 40%                        the area codes of data for which it
                                             notes that, according to the DMA 27% of all direct         upsell conversions × 20% sales                             requests information on their behalf,
                                             marketing in Year 2000 was by inbound                      conversions × .1% [estimated involving                     and a certification that the clients are
                                             telemarketing and 32% was by outbound
                                             telemarketing. See Statistical Fact Book 2001 at p.
                                                                                                        CCLP] × 4 seconds) + (3.3 billion                          accessing the National Registry solely to
                                             25. No new data suggests that these estimates have         inbound calls × 40% upsell conversion                      comply with the TSR.
                                             changed. Accordingly, using a 27:32 ratio, staff
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                                             estimates that the number of inbound telemarketers         whether the initial transaction and the subsequent
                                                                                                                                                                      Commission staff continues to
                                             is approximately 12,656 (15,000 × 27/32).                  solicitation are made by the same telemarketer             estimate, as it did in the Original User
                                                13 An ‘‘upsell’’ is the soliciting of the purchase of   (‘‘external upsell’’). Or, it may be made by or on         Fee NPRM, that it should take no longer
                                             goods or services after an initial transaction occurs      behalf of the same seller as in the initial transaction,   than two minutes for each entity to
                                             during a single telephone call. The solicitation may       regardless of whether the initial transaction and
                                             be made by or on behalf of a seller different from         subsequent solicitation are made by the same
                                                                                                                                                                   submit this basic information, and that
                                             the seller in the initial transaction, regardless of       telemarketer (‘‘internal upsell’’).                        each entity would have to submit the


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                                                                           Federal Register / Vol. 71, No. 95 / Wednesday, May 17, 2006 / Notices                                                     28701

                                             information annually.14 Based on the                    solicitations for existing telefunder                 Oral disclosure estimates, discussed
                                             number of entities accessing the                        entities would be $25,000 (2,500 burden               above, applied to a retained estimated
                                             National Registry that are subject to the               hours × $10/hour).                                    commercial calling rate of 6 cents per
                                             TSR, this requirement will result in 500                   Disclosures: The estimated annual                  minute ($3.60 per hour), totals
                                             burden hours (15,000 entities × 2                       labor cost for disclosures for all entities,          $8,899,000 (rounded to the nearest
                                             minutes per entity). In addition,                       both telefunders and telemarketing                    thousand) (2,472,000 hours × $3.60 per
                                             Commission staff continues to estimate                  firms is $37,073,000 (rounded to the                  hour) in phone-related costs.
                                             that possibly one-half of those entities                nearest thousand). This estimate was                  Accordingly, the non-labor costs for
                                             may need, during the course of their                    derived in part by applying a wage rate               telemarketing entities associated with
                                             annual period, to submit their basic                    of $15 per hour to: (1) 1,140,000 hours               the Rule’s information collection
                                             identifying information more than once                  attributed to disclosing outbound call                provisions is $9,649,000 ($8,899,000 in
                                             in order to obtain additional area codes                information and disclosing the                        phone related costs + $750,000 for office
                                             of data. This would result in an                        information required in the case of an                supplies). Non-labor costs incurred by
                                             additional 250 burden hours (7,500                      upsell; (2) 553,000 hours attributed to               telefunders for telefunder organizations
                                             entities × 2 minutes per entity). Thus,                 all sales disclosures; and (3) 778,000                are estimated to be $2,926,000 (rounded
                                             Commission staff estimates that                         hours for the disclosure made in                      to the nearest thousand) (778,000
                                             accessing the National Registry will                    solicitations for charitable                          estimated hours @ $3.60 per hour +
                                             impose a total burden of approximately                  contributions.                                        $125,000 in office supply-related costs
                                             750 hours per year.                                        The remaining portion of the labor                 (2500 telefunders @ $50 each)). Thus,
                                                Thus, the cumulative annual                          cost estimate is associated with                      the total non-labor costs for all entities
                                             disclosure burden for all entities subject              supplying basic identifying information               subject to the TSR is $12,575,000.18
                                             to the TSR—both telefunder and                          to the National Registry operator.                       Finally, staff believes that the
                                             telemarketing firms alike—is 2,472,000                  Applying a clerical wage of $10 per                   estimated 4,200 inbound telemarketing
                                             hours (rounded to the nearest                           hour, the cumulative annual labor cost                entities choosing to comply with the
                                             thousand).                                              for entities that provide the requisite               Rule through written disclosures incur
                                                Estimated annual labor cost burden:                  information and are subject to the TSR                no additional capital or operating
                                             $37,448,000 (rounded to the nearest                     is approximately $7,500 (750 hours ×                  expenses as a result of the Rule’s
                                             thousand).15                                            $10).16                                               requirements because they are likely to
                                                Recordkeeping: The estimated labor                      Estimated annual non-labor cost                    provide written information to
                                             cost for recordkeeping for all entities,                burden: $12,575,000 (rounded to the                   prospective customers in the ordinary
                                             both telefunders and telemarketing                      nearest thousand).17                                  course of business. Adding the required
                                             firms, is $375,000. Assuming a                             Total capital and start-up costs: Staff            disclosures to that written information
                                             cumulative burden of 7,500 hours/year                   estimates that the capital and start-up               likely requires no supplemental non-
                                             to set up compliant recordkeeping                       costs associated with the TSR’s                       labor expenditures.
                                             systems for new telemarketing entities,                 information collection requirements are
                                             and applying to that a skilled labor rate               de minimis. The Rule’s recordkeeping                  William Blumenthal,
                                             of $20/hour, labor costs would                          requirements mandate that companies                   General Counsel.
                                             approximate $150,000 yearly for all new                 maintain records but not in any                       [FR Doc. 06–4630 Filed 5–16–06; 8:45 am]
                                             telemarketing entities. As indicated                    particular form. While those                          BILLING CODE 6750–01–P
                                             above, staff estimates that existing                    requirements necessitate that affected
                                             telemarketing entities require 15,000                   entities have a means of storage,
                                             hours, cumulatively, to maintain                        industry members should have that                     DEPARTMENT OF HEALTH AND
                                             compliance with the TSR’s                               already regardless of the Rule. Even if               HUMAN SERVICES
                                             recordkeeping provisions. Applying a                    an entity finds it necessary to purchase
                                             clerical wage rate of $10/hour,                         a storage device, the cost is likely to be            Office for Civil Rights; The Patient
                                             recordkeeping maintenance for existing                  minimal, especially when annualized                   Safety and Quality Improvement Act of
                                             telemarketing entities would amount to                  over the item’s useful life. The Rule’s               2005; Delegation of Authority
                                             an annual cost of approximately                         disclosure requirements require no
                                                                                                     capital expenditures.                                   Notice is hereby given that I have
                                             $150,000.                                                                                                     delegated to the Director of the Office of
                                                Based on the estimated cumulative                       Other non-labor costs: Affected
                                                                                                     entities need some storage media such                 Civil Rights (OCR), with authority to
                                             burden of 2,500 hours/year to set up
                                                                                                     as file folders, computer diskettes, or               redelegate, the authority to enforce the
                                             compliant recordkeeping systems for
                                                                                                     paper in order to comply with the Rule’s              privilege and confidentiality protections
                                             new telefunder entities, and applying to
                                                                                                     recordkeeping requirements. Although                  of section 922, Title IX of the Public
                                             that a skilled labor rate of $20/hour,
                                                                                                     staff believes that most affected entities            Health Service Act, as amended by the
                                             cumulative labor costs would be
                                                                                                     would maintain the required records in                patient Safety and Quality Improvement
                                             approximately $50,000. In addition, the
                                                                                                     the ordinary course of business, staff                Act of 2005 (the Act). Pursuant to this
                                             annual estimated labor cost for
                                                                                                     estimates that the approximately 15,000               delegation, the OCR Director shall have
                                             maintaining records relating to
                                                                                                     telemarketers subject to the Rule spend               the authority:
                                               14 See 67 FR 37366 (May 29, 2002). As stated in       an annual amount of $50 each on office                A. To impose civil monetary penalties
                                             the Original User Fee NPRM, this estimate is likely     supplies as a result of the Rule’s                      pursuant to section 922(f) of the Act;
                                             to be conservative for PRA purposes. The OMB            recordkeeping requirements, for a total               B. To administer an enforcement
                                             regulation defining ‘‘information’’ generally                                                                   program regarding the privilege and
                                             excludes disclosures that require persons to provide    recordkeeping cost burden of $750,000.
                                                                                                                                                             confidentiality protections of section
mstockstill on PROD1PC61 with NOTICES




                                             facts necessary simply to identify themselves, e.g.,
                                             the respondent, the respondent’s address, and a           16 Staff continues to assume that clerical            922 of the Act (the Enforcement
                                             description of the information the respondent seeks     employees will submit the minimal identifying
                                             in detail sufficient to facilitate the request. See 5   information. See 68 FR 16238, 16246 (April 3,           18 Staff believes that remaining non-labor costs
                                             CFR 1320.3(h)(1).                                       2003).                                                would largely be incurred by affected entities,
                                               15 The January 20, 2006 Notice erroneously              17 The January 20, 2006 Notice erroneously          regardless, in the ordinary course of business and/
                                             indicated $20,315,000.                                  indicated $5,613,000.                                 or marginally be above such costs.



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