82 FR 25779 - Kawasaki Heavy Industries, Ltd.; Kawasaki Motors Corp., U.S.A.; and Kawasaki Motors Manufacturing Corp., U.S.A., Provisional Acceptance of a Settlement Agreement and Order
CONSUMER PRODUCT SAFETY COMMISSION Federal Register Volume 82, Issue 106 (June 5, 2017)
Federal Register Volume 82, Issue 106 (June 5, 2017)
| Page Range | 25779-25783 | |
| FR Document | 2017-11567 |
[Federal Register Volume 82, Number 106 (Monday, June 5, 2017)] [Notices] [Pages 25779-25783] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11567] ======================================================================= ----------------------------------------------------------------------- CONSUMER PRODUCT SAFETY COMMISSION [CPSC Docket No. 17-C0004] Kawasaki Heavy Industries, Ltd.; Kawasaki Motors Corp., U.S.A.; and Kawasaki Motors Manufacturing Corp., U.S.A., Provisional Acceptance of a Settlement Agreement and Order AGENCY: Consumer Product Safety Commission. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: It is the policy of the Commission to publish settlements which it provisionally accepts under the Consumer Product Safety Act in the Federal Register in accordance with the terms of the Consumer Product Safety Commission's regulations. Published below is a provisionally-accepted Settlement Agreement with Kawasaki Heavy Industries, Ltd., Kawasaki Motors Corp., U.S.A., and Kawasaki Motors Manufacturing Corp., U.S.A., containing a civil penalty in the amount of five million, two hundred thousand dollars ($5,200,000), within thirty (30) days of service of the Commission's final Order accepting the Settlement Agreement. DATES: Any interested person may ask the Commission not to accept this agreement or otherwise comment on its contents by filing a written request with the Office of the Secretary by June 20, 2017. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 17-C0004, Office of the Secretary, Consumer Product Safety [[Page 25780]] Commission, 4330 East-West Highway, Room 820, Bethesda, Maryland 20814- 4408. FOR FURTHER INFORMATION CONTACT: Philip Z. Brown, Trial Attorney, Division of Compliance, Office of the General Counsel, Consumer Product Safety Commission, 4330 East-West Highway, Bethesda, Maryland 20814- 4408; telephone (301) 504-7645. SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears below.\1\ --------------------------------------------------------------------------- \1\ The Commission voted (4-1) to provisionally accept the Settlement Agreement and Order regarding Kawasaki Heavy Industries, Ltd., Kawasaki Motors Corp., U.S.A., and Kawasaki Motors Manufacturing Corp., U.S.A. Commissioner Adler, Commissioner Kaye, Commissioner Robinson and Commissioner Mohorovic voted to provisionally accept the Settlement Agreement and Order. Acting Chairman Buerkle voted to reject the Settlement Agreement and Order. Dated: May 31, 2017. Todd A. Stevenson, Secretary. UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION In the Matter of: Kawasaki Heavy Industries, LTD.; Kawasaki Motors Corp., U.S.A.; and Kawasaki Motors Manufacturing Corp., U.S.A. CPSC Docket No.: 17-C0004 SETTLEMENT AGREEMENT 1. In accordance with the Consumer Product Safety Act, 15 U.S.C. Sec. Sec. 2051-2089 (``CPSA'') and 16 C.F.R. Sec. 1118.20, Kawasaki Heavy Industries, Ltd., Kawasaki Motors Corp., U.S.A., and Kawasaki Motors Manufacturing Corp., U.S.A. (collectively, ``Kawasaki''), and the United States Consumer Product Safety Commission (``Commission''), through its staff, hereby enter into this Settlement Agreement (``Agreement''). The Agreement and the incorporated attached Order resolve staff's charges set forth below. THE PARTIES 2. The Commission is an independent federal regulatory agency, established pursuant to, and responsible for, the enforcement of the CPSA, 15 U.S.C. Sec. Sec. 2051-2089. By executing the Agreement, staff is acting on behalf of the Commission, pursuant to 16 C.F.R. Sec. 1118.20(b). The Commission issues this Order under the provisions of the CPSA. 3. Kawasaki Heavy Industries, Ltd. (``KHI'') is a corporation, organized and existing under the laws of Japan, with its principal place of business in Japan. 4. Kawasaki Motors Corp., U.S.A. (``KMC'') is a corporation, organized and existing under the laws of the state of Delaware, with its principal place of business in Foothill Ranch, CA. KMC is a wholly- owned subsidiary of KHI. 5. Kawasaki Motors Manufacturing Corp., U.S.A. (``KMM'') is a corporation, organized and existing under the laws of the state of Nebraska, with its principal place of business in Lincoln, NE. KMM is a wholly-owned subsidiary of KHI. STAFF CHARGES 6. Between October 2011 and December 2015, Kawasaki manufactured, distributed, and offered for sale in the United States approximately 11,000 model year 2012 and 2013 Teryx4 750 4x4s (``Teryx4 750'') and approximately 19,500 2014-2016 model year Teryx4 800 4x4s (``Teryx4 800'') and Teryx 800 4x4s (``Teryx 800'') (collectively, ``Teryxs'' or ``Subject Products''). The Teryxs are four-wheel recreational off- highway vehicles that have automotive style controls and seating for two or four persons, depending on model type. 7. KMM manufactures and assembles the Subject Products, which are then sold to KMC for distribution. 8. KMC is responsible for, among other things, the distribution, marketing, and Quality Assurance of the Subject Products in the United States. 9. KHI is primarily responsible for the design, development, and engineering of the Subject Products. KHI retains ultimate control over the operations of KMC and KMM, including retaining recall authority. 10. The Teryxs are a ``consumer product,'' ``distribut[ed] in commerce,'' as those terms are defined or used in sections 3(a)(5) and (8) of the CPSA, 15 U.S.C. Sec. 2052(a)(5) and (8). Kawasaki is a ``distributor'' or a ``manufacturer'' of the Teryxs, as such terms are defined in section 3(a)(7) and (11) of the CPSA, 15 U.S.C. Sec. 2052(a)(7) and (11). Violation of CPSA Section 19(a)(4) 11. The Teryxs contain a defect which could create a substantial product hazard and create an unreasonable risk of serious injury because sticks or other debris can break through the Teryxs' floor board and protrude into the foot rest area, posing an injury hazard to the operator and front passenger. 12. Between April 2012 and July 2014, Kawasaki received more than 400 incident reports of Teryx4 750 floorboards cracking or breaking during normal operation due to impact with, or penetration by, debris from outside the vehicle. At least three of the incident reports resulted in injuries to consumers, including one serious injury. 13. In April 2012, Kawasaki began an investigation into the Teryx4 750 incidents. In October 2012, Kawasaki approved a design change to the Teryx4 750. The design change consisted of a metal strike plate to address the hazard and was implemented on Teryx4 750 models beginning in early 2013. 14. In May 2013, Kawasaki stopped manufacturing the Teryx4 750 and began manufacturing the Teryx 800 and Teryx4 800. 15. In December 2013, in anticipation of production for the 2015 model year, Kawasaki approved an additional design change. This design change involved enhanced floorboard guards for implementation on the 2015 model year Teryx 800 and Teryx4 800. 16. Kawasaki did not immediately inform the Commission under 15 U.S.C. Sec. 2064(b) regarding the defect and risk posed by the Teryx4 750 and did not file a Full Report as required by 16 C.F.R. Sec. 1115.13(d) until July 9, 2014. 17. Kawasaki and the Commission jointly announced a recall of approximately 11,000 Teryx4 750s on July 30, 2014. 18. Between July 2013 and August 2015, Kawasaki received more than 150 incident reports of Teryx4 800 or Teryx 800 floor boards cracking or breaking during normal operation due to impact with, or penetration by, debris from outside the vehicle. At least three of the incident reports resulted in injuries to consumers, including two serious injuries. 19. Kawasaki did not immediately inform the Commission under 15 U.S.C. Sec. 2064(b) regarding the defect and risk posed by the Teryx4 800 and Teryx 800 and did not file a Full Report as required by 16 C.F.R. Sec. 1115.13(d) until August 19, 2015. 20. Kawasaki and the Commission jointly announced a recall of approximately 19,500 Teryx4 800s and Teryx 800s on December 15, 2015. 21. Despite having information reasonably supporting the conclusion that the Teryxs contained a defect and created an unreasonable risk of serious injury, Kawasaki did not immediately inform the Commission of such defect or risk, as required by sections 15(b)(3) and (4) of the CPSA, 15 U.S.C. Sec. 2064(b)(3) and (4), in violation of section 19(a)(4) of the CPSA, 15 U.S.C. Sec. 2068(a)(4). 22. Because the information in Kawasaki's possession constituted actual and presumed knowledge, Kawasaki knowingly violated section 19(a)(4) of the CPSA, 15 U.S.C. Sec. 2068(a)(4), as the term ``knowingly'' is [[Page 25781]] defined in section 20(d) of the CPSA, 15 U.S.C. Sec. 2069(d). 23. Pursuant to Section 20 of the CPSA, 15 U.S.C. Sec. 2069, Kawasaki is subject to civil penalties for its knowing violation of section 19(a)(4) of the CPSA, 15 U.S.C. Sec. 2068(a)(4). Violation of CPSA Section 19(a)(13) 24. Kawasaki's July 9, 2014, Full Report reported a single incident and an unspecified number of injuries related to the Subject Products' floorboards. The Full Report did not identify more than 400 similar incidents involving the Subject Products about which Kawasaki had actual or presumed knowledge, and excluded any incidents relating to the Teryx4 800 and Teryx 800. This omission constitutes a material misrepresentation under section 19(a)(13) of the CPSA, 15 U.S.C. Sec. 2068(a)(13). 25. Kawasaki's misrepresentation impeded CPSC staff's investigation into the hazard posed by the Subject Products' floorboards and Kawasaki's proposed repair, and hampered staff's ability to accurately communicate the prevalence of the hazard to the public. 26. By knowingly making a material misrepresentation to an officer or employee of the CPSC in the course of an investigation under the CPSA, Kawasaki knowingly violated section 19(a)(13) of the CPSA, 15 U.S.C. Sec. 2068(a)(13), as the term ``knowingly'' is defined in section 20(d) of the CPSA, 15 U.S.C. Sec. 2069(d). Pursuant to section 20 of the CPSA, 15 U.S.C. Sec. 2069, Kawasaki is subject to civil penalties for its knowing violation of section 19(a)(13) of the CPSA, 15 U.S.C. Sec. 2068(a)(13). RESPONSE OF KAWASAKI 27. The signing of this Agreement does not constitute an admission in any respect by Kawasaki of the staff charges, set forth above in paragraphs 6 through 26, including, but not limited to, that: (a) the Teryx4 750, Teryx4 800, and Teryx 800 contained a defect which could create a substantial product hazard and created an unreasonable risk of serious injury; (b) Kawasaki failed to inform the Commission of any reportable issues related to the Teryxs in a timely manner, in accordance with sections 15(b)(3) and (4) of the CPSA, 15 U.S.C. Sec. Sec. 2064(b)(3) and (4); (c) Kawasaki failed to furnish information as required by the statute (sections 15(b)(3) and (4), 15 U.S.C. Sec. Sec. 2064(b)(3) and (4)), in violation of section 19(a)(4) of the CPSA, 15 U.S.C. Sec. 2068(a)(4); and (d) there was any ``knowing'' violation of the CPSA as that term is defined in section 20(d) of the CPSA, 15 U.S.C. Sec. 2069(d). 28. The Teryx4 750, Teryx4 800, and Teryx 800 are side-by-side recreational off-highway vehicles which are used in a variety of challenging off-road environments where breakage of various parts, including floor boards, can occur. 29. Kawasaki conducted a reasonable and diligent investigation of reported incidents of floor board breakage, including the smaller number of reported instances of stick penetration and the handful of reports of injury. Due to the nature of the products and the variety of ways and environments in which they are used, incident reports can be difficult to evaluate, since use of the Teryx4 750, Teryx4 800, and Teryx 800, like all side-by-side recreational off-highway vehicles, involves the possibility of parts breakage. 30. The voluntary recalls of the Teryx4 750, Teryx4 800, and Teryx 800 and related reporting to the Commission under section 15(b) of the CPSA, 15 U.S.C. Sec. 2064(b), were conducted by Kawasaki out of an abundance of caution and without having determined or concluded that the Teryx4 750, Teryx4 800, and Teryx 800 contained a defect which could create a substantial product hazard or created an unreasonable risk of serious injury. Kawasaki may submit a corrective action plan to the Commission without admitting that either reportable information or a substantial product hazard exists. See 16 C.F.R. Sec. 1115.20(a)(1)(xiii). Kawasaki also makes design changes to its products to address customer satisfaction. 31. Kawasaki denies the staff charges that Kawasaki committed a material misrepresentation by omission in the July 9, 2014 Full Report in violation of section 19(a)(13) of the CPSA, 15 U.S.C. Sec. 2068(a)(13), and further denies that Kawasaki committed a ``knowing'' violation of section 19(a)(13) as that term is defined in section 20(d) of the CPSA, 15 U.S.C. Sec. 2069(d). 32. Pursuant to section 20(a)(1) of the CPSA, 15 U.S.C. Sec. 2069(a)(1), the amount of the agreed civil penalty which can be attributable to the claim of material misrepresentation by omission under section 19(a)(13) of the CPSA, 15 U.S.C. Sec. 2068(a)(13), cannot exceed $100,000. 33. Kawasaki believes that it did nothing wrong in this matter and that it complied with the CPSA in all respects. Kawasaki disputes the staff's allegations that Kawasaki had information that the Teryxs contained a defect which could create a substantial product hazard and created an unreasonable risk of injury. Kawasaki believes that it informed the Commission of any reportable issues regarding the Teryxs in a timely manner and furnished information to CPSC as required by the CPSA. Kawasaki does not believe that it knowingly violated the CPSA as that term is defined in the statute. 34. Pursuant to paragraphs 43 through 45, Kawasaki will maintain its program for current and future compliance with the CPSA. 35. Kawasaki enters into this Agreement in order to settle this matter without the delay and unnecessary expense of litigation. AGREEMENT OF THE PARTIES 36. Under the CPSA, the Commission has jurisdiction over the matter involving the Subject Products and over Kawasaki. 37. The parties enter into this Agreement for settlement purposes only. The Agreement does not constitute an admission by Kawasaki, or a determination by the Commission, that Kawasaki violated the CPSA's reporting requirements or made material misrepresentations to an officer or employee of the Commission. 38. In settlement of staff's charges, and to avoid the cost, distraction, delay, uncertainty, and inconvenience of protracted litigation or other proceedings, Kawasaki shall pay a civil penalty in the amount of five million, two hundred thousand dollars ($5,200,000) within thirty (30) calendar days after receiving service of the Commission's final Order accepting the Agreement. All payments to be made under the Agreement shall constitute debts owing to the United States and shall be made by electronic wire transfer to the United States via: http://www.pay.gov, for allocation to, and credit against, the payment obligations of Kawasaki under this Agreement. Failure to make such payment by the date specified in the Commission's final Order shall constitute Default. 39. All unpaid amounts, if any, due and owing under the Agreement, shall constitute a debt due and immediately owing by Kawasaki to the United States, and interest shall accrue and be paid by Kawasaki at the federal legal rate of interest set forth at 28 U.S.C. Sec. 1961(a) and (b) from the date of Default, until all amounts due have been paid in full (hereinafter ``Default Payment Amount'' and ``Default Interest Balance''). Kawasaki shall consent to a Consent Judgment in the amount of the Default Payment Amount and Default Interest Balance, and the United States, at its sole option, may collect the entire Default Payment Amount and Default Interest Balance, or exercise any other [[Page 25782]] rights granted by law or in equity, including, but not limited to, referring such matters for private collection, and Kawasaki agrees not to contest, and hereby waives and discharges, any defenses to any collection action undertaken by the United States, or its agents or contractors, pursuant to this paragraph. Kawasaki shall pay the United States all reasonable costs of collection and enforcement under this paragraph, respectively, including reasonable attorney's fees and expenses. 40. After staff receives this Agreement executed on behalf of Kawasaki, staff shall promptly submit the Agreement to the Commission for provisional acceptance. Promptly following provisional acceptance of the Agreement by the Commission, the Agreement shall be placed on the public record and published in the Federal Register, in accordance with the procedures set forth in 16 C.F.R. Sec. 1118.20(e). If the Commission does not receive any written request not to accept the Agreement within fifteen (15) calendar days, the Agreement shall be deemed finally accepted on the 16th calendar day after the date the Agreement is published in the Federal Register, in accordance with 16 C.F.R. Sec. 1118.20(f). 41. This Agreement is conditioned upon, and subject to, the Commission's final acceptance, as set forth above, and it is subject to the provisions of 16 C.F.R. Sec. 1118.20(h). Upon the later of: (i) Commission's final acceptance of this Agreement and service of the accepted Agreement upon Kawasaki, and (ii) the date of issuance of the final Order, this Agreement shall be in full force and effect, and shall be binding upon the parties. 42. Effective upon the later of: (i) the Commission's final acceptance of the Agreement and service of the accepted Agreement upon Kawasaki, and (ii) the date of issuance of the final Order, for good and valuable consideration, Kawasaki hereby expressly and irrevocably waives and agrees not to assert any past, present, or future rights to the following, in connection with the matter described in this Agreement: (i) an administrative or judicial hearing; (ii) judicial review or other challenge or contest of the Commission's actions; (iii) a determination by the Commission of whether Kawasaki failed to comply with the CPSA and the underlying regulations; (iv) a statement of findings of fact and conclusions of law; and (v) any claims under the Equal Access to Justice Act. 43. Kawasaki shall maintain a compliance program designed to ensure compliance with the CPSA with respect to any consumer product imported, manufactured, distributed or sold by the Firm, and which shall contain the following elements: (i) written standards, policies and procedures, including those designed to ensure that information that may relate to or impact CPSA compliance (including information obtained by quality control personnel) is conveyed effectively to personnel responsible for CPSA compliance, whether or not an injury is referenced; (ii) a mechanism for confidential employee reporting of compliance-related questions or concerns to either a compliance officer or to another senior manager with authority to act as necessary; (iii) effective communication of company compliance-related policies and procedures regarding the CPSA to all applicable employees through training programs or otherwise; (iv) the Firm's senior management responsibility for, and general board oversight of, CPSA compliance; and (v) retention of all CPSA compliance-related records for at least five (5) years, and availability of such records to staff upon request. 44. Kawasaki shall maintain and enforce a system of internal controls and procedures designed to ensure that, with respect to all consumer products imported, manufactured, distributed or sold by Kawasaki: (i) information required to be disclosed by Kawasaki to the Commission is recorded, processed and reported in accordance with applicable law; (ii) all reporting made to the Commission is timely, truthful, complete, accurate and in accordance with applicable law; and (iii) prompt disclosure is made to Kawasaki's management of any significant deficiencies or material weaknesses in the design or operation of such internal controls that are reasonably likely to affect adversely, in any material respect, Kawasaki's ability to record, process and report to the Commission in accordance with applicable law. 45. Upon reasonable request of staff, Kawasaki shall provide written documentation of its internal controls and procedures, including, but not limited to, the effective dates of the procedures and improvements thereto. Kawasaki shall cooperate fully and truthfully with staff and shall make available all non-privileged information and materials, and personnel deemed necessary by staff to evaluate Kawasaki's compliance with the terms of the Agreement. 46. The parties acknowledge and agree that the Commission may publicize the terms of the Agreement and the Order. 47. Kawasaki represents that the Agreement: (i) is entered into freely and voluntarily, without any degree of duress or compulsion whatsoever; (ii) has been duly authorized; and (iii) constitutes the valid and binding obligation of Kawasaki, enforceable against Kawasaki in accordance with its terms. Kawasaki will not directly or indirectly receive any reimbursement, indemnification, insurance-related payment, or other payment in connection with the civil penalty to be paid by Kawasaki pursuant to the Agreement and Order. The individuals signing the Agreement on behalf of Kawasaki represent and warrant that they are duly authorized by Kawasaki to execute the Agreement. 48. The signatories represent that they are authorized to execute this Agreement. 49. The Agreement is governed by the laws of the United States. 50. The Agreement and the Order shall apply to, and be binding upon, Kawasaki and each of its successors, transferees, and assigns; and a violation of the Agreement or Order may subject Kawasaki, and each of its successors, transferees, and assigns, to appropriate legal action. 51. The Agreement and the Order constitute the complete agreement between the parties on the subject matter contained therein. 52. The Agreement may be used in interpreting the Order. Understandings, agreements, representations, or interpretations apart from those contained in the Agreement and the Order may not be used to vary or contradict their terms. For purposes of construction, the Agreement shall be deemed to have been drafted by both of the parties and shall not, therefore, be construed against any party, for that reason, in any subsequent dispute. 53. The Agreement may not be waived, amended, modified, or otherwise altered, except as in accordance with the provisions of 16 C.F.R. Sec. 1118.20(h). The Agreement may be executed in counterparts. 54. If any provision of the Agreement or the Order is held to be illegal, invalid, or unenforceable under present or future laws effective during the terms of the Agreement and the Order, such provision shall be fully severable. The balance of the Agreement and the Order shall remain in full force and effect, unless the Commission and Kawasaki agree in writing that severing the provision materially affects the purpose of the Agreement and the Order. KAWASAKI HEAVY INDUSTRIES, LTD. Dated: May 12, 2017 [[Page 25783]] By:-------------------------------------------------------------------- Hideto Yoshitake, General Manager and Associate Officer. KAWASAKI MOTORS CORP., U.S.A. Dated: May 12, 2017 By:-------------------------------------------------------------------- Yoshitaka Tamura, President and Chief Executive Officer. KAWASAKI MOTORS MANUFACTURING CORP., U.S.A. Dated: May 12, 2017 By:-------------------------------------------------------------------- Masanobu Kurushima, President. Dated: May 16, 2017 By:-------------------------------------------------------------------- Michael A. Wiegard, Esq., Eckert Seamans Cherin & Mellott, LLC Counsel to Kawasaki. U.S. CONSUMER PRODUCT SAFETY COMMISSION Mary T. Boyle, General Counsel. Mary B. Murphy, Assistant General Counsel. Dated: May 22, 2017 By:-------------------------------------------------------------------- Philip Z. Brown, Trial Attorney, Division of Compliance, Office of the General Counsel UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION In the Matter of: KAWASAKI HEAVY INDUSTRIES, LTD.; KAWASAKI MOTORS CORP., U.S.A.; and KAWASAKI MOTORS MANUFACTURING CORP., U.S.A. CPSC Docket No.: 17-C0004 ORDER Upon consideration of the Settlement Agreement entered into between Kawasaki Heavy Industries, Ltd., Kawasaki Motors Corp., U.S.A., and Kawasaki Motors Manufacturing Corp., U.S.A. (collectively, ``Kawasaki''), and the U.S. Consumer Product Safety Commission (``Commission''), and the Commission having jurisdiction over the subject matter and over Kawasaki, and it appearing that the Settlement Agreement and the Order are in the public interest, it is: ORDERED that the Settlement Agreement be, and is, hereby, accepted; and it is FURTHER ORDERED that Kawasaki shall comply with the terms of the Settlement Agreement and shall pay a civil penalty in the amount of five million, two hundred thousand dollars ($5,200,000) within thirty (30) days after service of the Commission's final Order accepting the Settlement Agreement. The payment shall be made by electronic wire transfer to the Commission via: http://www.pay.gov. Upon the failure of Kawasaki to make the foregoing payment when due, interest on the unpaid amount shall accrue and be paid by Kawasaki at the federal legal rate of interest set forth at 28 U.S.C. Sec. 1961(a) and (b). If Kawasaki fails to make such payment or to comply in full with any other provision of the Settlement Agreement, such conduct will be considered a violation of the Settlement Agreement and Order. Provisionally accepted and provisional Order issued on the 31st day of May, 2017. By Order of the Commission: ----------------------------------------------------------------------- Todd A. Stevenson, Secretary, U.S. Consumer Product Safety Commission. [FR Doc. 2017-11567 Filed 6-2-17; 8:45 am] BILLING CODE 6355-01-P
![Federal Register / Vol. 82, No. 106 / Monday, June 5, 2017 / Notices 25779
DEPARTMENT OF COMMERCE • Electronic: http:// information will have practical utility;
www.regulations.gov. Follow the (b) The accuracy of the Bureau’s
National Oceanic and Atmospheric instructions for submitting comments. estimate of the burden of the collection
Administration • Mail: Consumer Financial of information, including the validity of
RIN 0648–XF462 Protection Bureau (Attention: PRA the methods and the assumptions used;
Office), 1700 G Street NW., Washington, (c) Ways to enhance the quality, utility,
New England Fishery Management DC 20552. and clarity of the information to be
Council; Public Meeting • Hand Delivery/Courier: Consumer collected; and (d) Ways to minimize the
Financial Protection Bureau (Attention: burden of the collection of information
AGENCY: National Marine Fisheries PRA Office), 1275 First Street NE., on respondents, including through the
Service (NMFS), National Oceanic and Washington, DC 20002. use of automated collection techniques
Atmospheric Administration (NOAA), Please note that comments submitted or other forms of information
Commerce. after the comment period will not be technology. Comments submitted in
ACTION: Notice of cancellation of a accepted. In general, all comments response to this notice will be
public meeting. received will become public records, summarized and/or included in the
including any personal information request for OMB approval. All
SUMMARY: The New England Fishery provided. Sensitive personal comments will become a matter of
Management Council (Council) has information, such as account numbers public record.
cancelled the public meeting of its or Social Security numbers, should not
Whiting Committee and Advisory Panel Dated: May 31, 2017.
be included. Darrin A. King,
that was scheduled for Wednesday, June
FOR FURTHER INFORMATION CONTACT: Paperwork Reduction Act Officer, Bureau of
14, 2017, at 9:30 a.m.
Documentation prepared in support of Consumer Financial Protection.
FOR FURTHER INFORMATION CONTACT:
this information collection request is [FR Doc. 2017–11551 Filed 6–2–17; 8:45 am]
Thomas A. Nies, Executive Director, available at www.regulations.gov.
New England Fishery Management Requests for additional information
BILLING CODE 4810–AM–P
Council; telephone: (978) 465–0492. should be directed to the Consumer
SUPPLEMENTARY INFORMATION: The notice Financial Protection Bureau, (Attention:
published in the Federal Register on CONSUMER PRODUCT SAFETY
PRA Office), 1700 G Street NW.,
May 31, 2017 (82 FR 24944). The COMMISSION
Washington, DC 20552, (202) 435–9575,
meeting will be rescheduled at a later or email: CFPB_PRA@cfpb.gov. Please [CPSC Docket No. 17–C0004]
date and announced in the Federal do not submit comments to this
Register. mailbox. Kawasaki Heavy Industries, Ltd.;
Dated: May 31, 2017. Kawasaki Motors Corp., U.S.A.; and
SUPPLEMENTARY INFORMATION: Kawasaki Motors Manufacturing Corp.,
Jeffrey N. Lonergan, Title of Collection: Debt Collection U.S.A., Provisional Acceptance of a
Acting Deputy Director, Office of Sustainable Quantitative Disclosure Testing.
Fisheries, National Marine Fisheries Service.
Settlement Agreement and Order
OMB Control Number: 3170–XXXX.
[FR Doc. 2017–11558 Filed 6–2–17; 8:45 am] Type of Review: New Collection AGENCY: Consumer Product Safety
BILLING CODE 3510–22–P (Request for a New OMB Control Commission.
Number). ACTION: Notice.
Affected Public: Individuals and
BUREAU OF CONSUMER FINANCIAL households. SUMMARY: It is the policy of the
PROTECTION Estimated Number of Respondents: Commission to publish settlements
17,750. which it provisionally accepts under the
[Docket No. CFPB–2017–0013] Estimated Total Annual Burden Consumer Product Safety Act in the
Hours: 3,555. Federal Register in accordance with the
Agency Information Collection terms of the Consumer Product Safety
Abstract: The Dodd-Frank Wall Street
Activities: Comment Request Commission’s regulations. Published
Reform and Consumer Protection Act
AGENCY: Bureau of Consumer Financial and other Federal consumer financial below is a provisionally-accepted
Protection. laws authorize the Bureau to engage in Settlement Agreement with Kawasaki
ACTION: Notice and request for comment. consumer protection rule writing. The Heavy Industries, Ltd., Kawasaki Motors
Bureau plans to seek approval from Corp., U.S.A., and Kawasaki Motors
SUMMARY: In accordance with the OMB to conduct a Web survey of 8,000 1 Manufacturing Corp., U.S.A., containing
Paperwork Reduction Act of 1995 individuals as part of the Bureau’s a civil penalty in the amount of five
(PRA), the Bureau of Consumer research on debt collection disclosures. million, two hundred thousand dollars
Financial Protection (Bureau) is The survey will explore consumer ($5,200,000), within thirty (30) days of
requesting a new information collection, comprehension and decision making in service of the Commission’s final Order
titled, ‘‘Debt Collection Quantitative response to debt collection disclosure accepting the Settlement Agreement.
Disclosure Testing.’’ forms. DATES: Any interested person may ask
DATES: Written comments are Request for Comments: Comments are the Commission not to accept this
encouraged and must be received on or invited on: (a) Whether the collection of agreement or otherwise comment on its
asabaliauskas on DSKBBXCHB2PROD with NOTICES
before August 4, 2017 to be assured of information is necessary for the proper contents by filing a written request with
consideration. performance of the functions of the the Office of the Secretary by June 20,
ADDRESSES: You may submit comments, Bureau, including whether the 2017.
identified by the title of the information ADDRESSES: Persons wishing to
1 The Bureau plans to administer the survey to
collection, Office of Management and comment on this Settlement Agreement
approximately 8,000 individuals; however, in order
Budget (OMB) Control Number (see to survey 8,000 individuals, the Bureau estimates
should send written comments to the
below), and docket number (see above), that it will need to administer a screening Comment 17–C0004, Office of the
by any of the following methods: instrument to approximately 17,750 individuals. Secretary, Consumer Product Safety
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![25780 Federal Register / Vol. 82, No. 106 / Monday, June 5, 2017 / Notices
Commission, 4330 East-West Highway, 4. Kawasaki Motors Corp., U.S.A. consumers, including one serious
Room 820, Bethesda, Maryland 20814– (‘‘KMC’’) is a corporation, organized and injury.
4408. existing under the laws of the state of 13. In April 2012, Kawasaki began an
FOR FURTHER INFORMATION CONTACT: Delaware, with its principal place of investigation into the Teryx4 750
Philip Z. Brown, Trial Attorney, business in Foothill Ranch, CA. KMC is incidents. In October 2012, Kawasaki
Division of Compliance, Office of the a wholly-owned subsidiary of KHI. approved a design change to the Teryx4
General Counsel, Consumer Product 5. Kawasaki Motors Manufacturing 750. The design change consisted of a
Safety Commission, 4330 East-West Corp., U.S.A. (‘‘KMM’’) is a corporation, metal strike plate to address the hazard
Highway, Bethesda, Maryland 20814– organized and existing under the laws of and was implemented on Teryx4 750
4408; telephone (301) 504–7645. the state of Nebraska, with its principal models beginning in early 2013.
place of business in Lincoln, NE. KMM 14. In May 2013, Kawasaki stopped
SUPPLEMENTARY INFORMATION: The text of manufacturing the Teryx4 750 and
is a wholly-owned subsidiary of KHI.
the Agreement and Order appears began manufacturing the Teryx 800 and
below.1 STAFF CHARGES Teryx4 800.
Dated: May 31, 2017. 6. Between October 2011 and 15. In December 2013, in anticipation
Todd A. Stevenson, December 2015, Kawasaki of production for the 2015 model year,
Secretary. manufactured, distributed, and offered Kawasaki approved an additional design
for sale in the United States change. This design change involved
UNITED STATES OF AMERICA approximately 11,000 model year 2012 enhanced floorboard guards for
CONSUMER PRODUCT SAFETY and 2013 Teryx4 750 4x4s (‘‘Teryx4 implementation on the 2015 model year
COMMISSION 750’’) and approximately 19,500 2014– Teryx 800 and Teryx4 800.
2016 model year Teryx4 800 4×4s 16. Kawasaki did not immediately
In the Matter of: Kawasaki Heavy (‘‘Teryx4 800’’) and Teryx 800 4×4s inform the Commission under 15 U.S.C.
Industries, LTD.; Kawasaki Motors Corp., (‘‘Teryx 800’’) (collectively, ‘‘Teryxs’’ or § 2064(b) regarding the defect and risk
U.S.A.; and Kawasaki Motors Manufacturing ‘‘Subject Products’’). The Teryxs are posed by the Teryx4 750 and did not file
Corp., U.S.A. four-wheel recreational off-highway a Full Report as required by 16 C.F.R.
CPSC Docket No.: 17–C0004 vehicles that have automotive style § 1115.13(d) until July 9, 2014.
controls and seating for two or four 17. Kawasaki and the Commission
SETTLEMENT AGREEMENT persons, depending on model type. jointly announced a recall of
1. In accordance with the Consumer 7. KMM manufactures and assembles approximately 11,000 Teryx4 750s on
Product Safety Act, 15 U.S.C. §§ 2051– the Subject Products, which are then July 30, 2014.
2089 (‘‘CPSA’’) and 16 C.F.R. § 1118.20, sold to KMC for distribution. 18. Between July 2013 and August
Kawasaki Heavy Industries, Ltd., 8. KMC is responsible for, among 2015, Kawasaki received more than 150
Kawasaki Motors Corp., U.S.A., and other things, the distribution, marketing, incident reports of Teryx4 800 or Teryx
Kawasaki Motors Manufacturing Corp., and Quality Assurance of the Subject 800 floor boards cracking or breaking
U.S.A. (collectively, ‘‘Kawasaki’’), and Products in the United States. during normal operation due to impact
the United States Consumer Product 9. KHI is primarily responsible for the with, or penetration by, debris from
Safety Commission (‘‘Commission’’), design, development, and engineering of outside the vehicle. At least three of the
through its staff, hereby enter into this the Subject Products. KHI retains incident reports resulted in injuries to
Settlement Agreement (‘‘Agreement’’). ultimate control over the operations of consumers, including two serious
The Agreement and the incorporated KMC and KMM, including retaining injuries.
recall authority. 19. Kawasaki did not immediately
attached Order resolve staff’s charges set
10. The Teryxs are a ‘‘consumer inform the Commission under 15 U.S.C.
forth below.
product,’’ ‘‘distribut[ed] in commerce,’’ § 2064(b) regarding the defect and risk
THE PARTIES as those terms are defined or used in posed by the Teryx4 800 and Teryx 800
2. The Commission is an independent sections 3(a)(5) and (8) of the CPSA, 15 and did not file a Full Report as
federal regulatory agency, established U.S.C. § 2052(a)(5) and (8). Kawasaki is required by 16 C.F.R. § 1115.13(d) until
pursuant to, and responsible for, the a ‘‘distributor’’ or a ‘‘manufacturer’’ of August 19, 2015.
the Teryxs, as such terms are defined in 20. Kawasaki and the Commission
enforcement of the CPSA, 15 U.S.C.
section 3(a)(7) and (11) of the CPSA, 15 jointly announced a recall of
§§ 2051–2089. By executing the
U.S.C. § 2052(a)(7) and (11). approximately 19,500 Teryx4 800s and
Agreement, staff is acting on behalf of
Teryx 800s on December 15, 2015.
the Commission, pursuant to 16 C.F.R. Violation of CPSA Section 19(a)(4) 21. Despite having information
§ 1118.20(b). The Commission issues 11. The Teryxs contain a defect which reasonably supporting the conclusion
this Order under the provisions of the could create a substantial product that the Teryxs contained a defect and
CPSA. hazard and create an unreasonable risk created an unreasonable risk of serious
3. Kawasaki Heavy Industries, Ltd. of serious injury because sticks or other injury, Kawasaki did not immediately
(‘‘KHI’’) is a corporation, organized and debris can break through the Teryxs’ inform the Commission of such defect
existing under the laws of Japan, with floor board and protrude into the foot or risk, as required by sections 15(b)(3)
its principal place of business in Japan. rest area, posing an injury hazard to the and (4) of the CPSA, 15 U.S.C.
asabaliauskas on DSKBBXCHB2PROD with NOTICES
operator and front passenger. § 2064(b)(3) and (4), in violation of
1 The Commission voted (4–1) to provisionally
12. Between April 2012 and July section 19(a)(4) of the CPSA, 15 U.S.C.
accept the Settlement Agreement and Order
regarding Kawasaki Heavy Industries, Ltd.,
2014, Kawasaki received more than 400 § 2068(a)(4).
Kawasaki Motors Corp., U.S.A., and Kawasaki incident reports of Teryx4 750 22. Because the information in
Motors Manufacturing Corp., U.S.A. Commissioner floorboards cracking or breaking during Kawasaki’s possession constituted
Adler, Commissioner Kaye, Commissioner normal operation due to impact with, or actual and presumed knowledge,
Robinson and Commissioner Mohorovic voted to
provisionally accept the Settlement Agreement and
penetration by, debris from outside the Kawasaki knowingly violated section
Order. Acting Chairman Buerkle voted to reject the vehicle. At least three of the incident 19(a)(4) of the CPSA, 15 U.S.C.
Settlement Agreement and Order. reports resulted in injuries to § 2068(a)(4), as the term ‘‘knowingly’’ is
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![Federal Register / Vol. 82, No. 106 / Monday, June 5, 2017 / Notices 25783
By: lllllllllllllllllll Commission via: http://www.pay.gov. DATES: Written comments and
Hideto Yoshitake, Upon the failure of Kawasaki to make information are requested on or before
the foregoing payment when due,
General Manager and Associate Officer. August 4, 2017.
KAWASAKI MOTORS CORP., U.S.A. interest on the unpaid amount shall ADDRESSES: Interested persons are
Dated: May 12, 2017 accrue and be paid by Kawasaki at the encouraged to submit comments, which
By: lllllllllllllllllll
federal legal rate of interest set forth at must be submitted electronically to
28 U.S.C. § 1961(a) and (b). If Kawasaki EPSA.Database@hq.doe.gov.
Yoshitaka Tamura,
fails to make such payment or to comply FOR FURTHER INFORMATION CONTACT:
President and Chief Executive Officer.
in full with any other provision of the Requests for additional information may
KAWASAKI MOTORS MANUFACTURING Settlement Agreement, such conduct be sent to Samuel Bockenhauer, U.S.
CORP., U.S.A. will be considered a violation of the Department of Energy, Office of Energy
Dated: May 12, 2017 Settlement Agreement and Order. Policy and Systems Analysis, 1000
By: lllllllllllllllllll Provisionally accepted and Independence Avenue SW.,
Masanobu Kurushima, provisional Order issued on the 31st day Washington, DC 20585. Email:
President. of May, 2017. samuel.bockenhauer@hq.doe.gov.
Dated: May 16, 2017 By Order of the Commission: Phone: (202) 586–9016.
By: lllllllllllllllllll lllllllllllllllllll SUPPLEMENTARY INFORMATION:
Michael A. Wiegard, Esq., Todd A. Stevenson, Secretary,
Background
Eckert Seamans Cherin & Mellott, LLC U.S. Consumer Product Safety
Counsel to Kawasaki. Commission. Present-day energy and water systems
U.S. CONSUMER PRODUCT SAFETY [FR Doc. 2017–11567 Filed 6–2–17; 8:45 am]
are in many cases interconnected. Water
COMMISSION is used in most phases of energy
BILLING CODE 6355–01–P
Mary T. Boyle,
production and electricity generation.
Energy is required to extract, convey,
General Counsel.
and deliver water of appropriate quality
Mary B. Murphy, for diverse human uses, and then again
Assistant General Counsel. DEPARTMENT OF ENERGY
to treat wastewaters prior to their return
Dated: May 22, 2017 to the environment. Historically, energy
Request for Information (RFI): Review
By: lllllllllllllllllll and water systems have been developed,
of Draft Version of DOE Energy-Water
Philip Z. Brown, Nexus State Policy Database managed, and regulated independently
Trial Attorney, Division of Compliance, and without significant
Office of the General Counsel AGENCY: Office of Energy Policy and acknowledgement of the connections
UNITED STATES OF AMERICA
Systems Analysis (EPSA), Department between them. The energy and water
CONSUMER PRODUCT SAFETY of Energy (DOE). policy landscape is thus highly
COMMISSION ACTION: Notice of request for fragmented, which can make it difficult
In the Matter of: KAWASAKI HEAVY information. for industry, utilities, government, and
INDUSTRIES, LTD.; KAWASAKI MOTORS other stakeholder groups to effectively
CORP., U.S.A.; and KAWASAKI MOTORS SUMMARY: The Department of Energy balance energy and water goals.
MANUFACTURING CORP., U.S.A. (DOE) gives notice of a Request for Furthermore, much of the authority
CPSC Docket No.: 17–C0004 Information (RFI): ‘‘Review of Draft for water policy lies at the level of
Version of DOE Energy-Water Nexus individual states. For example,
ORDER State Policy Database.’’ This RFI seeks allocation of water rights and permitting
Upon consideration of the Settlement review and feedback from stakeholders for water discharge are managed
Agreement entered into between on the draft version of the DOE Energy- primarily at the state level. The
Kawasaki Heavy Industries, Ltd., Water Nexus State Policy Database, particularly complex and fragmented
Kawasaki Motors Corp., U.S.A., and including over 1,700 state-level water nature of water policies affecting energy
Kawasaki Motors Manufacturing Corp., policies that affect energy systems. The systems, as well as their variation across
U.S.A. (collectively, ‘‘Kawasaki’’), and database is being developed by DOE’s different states, suggests that a
the U.S. Consumer Product Safety Office of Energy Policy and Systems centralized, public database of water
Commission (‘‘Commission’’), and the Analysis (DOE–EPSA). The draft or policies affecting energy systems could
Commission having jurisdiction over ‘‘beta’’ version of the database is enable enhanced policy analysis,
the subject matter and over Kawasaki, presented as a web tool at http:// modeling, visualization, and
and it appearing that the Settlement energywaterpolicy.org. Categories of communication by states, industry,
Agreement and the Order are in the policies in the database include surface utilities, academia, federal agencies, and
public interest, it is: water rights; groundwater rights; water other stakeholders.
ORDERED that the Settlement discharge regulations for power plant
Agreement be, and is, hereby, accepted; cooling water effluent, stormwater, and Purpose
and it is wastewater from oil and gas production; The purpose of this RFI is to solicit
FURTHER ORDERED that Kawasaki Underground Injection Control (UIC) feedback from industry, utilities,
asabaliauskas on DSKBBXCHB2PROD with NOTICES
shall comply with the terms of the program regulations; state water plans; academia, research laboratories,
Settlement Agreement and shall pay a regional watershed commissions; government agencies, and other
civil penalty in the amount of five reservoir and river operations; and stakeholders on the draft version of the
million, two hundred thousand dollars integrated energy and water policies. Energy-Water Nexus State Policy
($5,200,000) within thirty (30) days after The goals of the database are to facilitate Database available at http://
service of the Commission’s final Order improved policy analysis, modeling, energywaterpolicy.org. Regarding the
accepting the Settlement Agreement. visualization, and communication by draft version of the Energy-Water Nexus
The payment shall be made by states, industry, utilities, academia, State Policy Database, neither the
electronic wire transfer to the federal agencies, and other stakeholders. United States Government nor any
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Document Created: 2018-11-14 10:01:14
Document Modified: 2018-11-14 10:01:14
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Dates | Any interested person may ask the Commission not to accept this agreement or otherwise comment on its contents by filing a written request with the Office of the Secretary by June 20, 2017. | |
| Contact | Philip Z. Brown, Trial Attorney, Division of Compliance, Office of the General Counsel, Consumer Product Safety Commission, 4330 East-West Highway, Bethesda, Maryland 20814- 4408; telephone (301) 504-7645. | |
| FR Citation | 82 FR 25779 |
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