[Federal Register Volume 70, Number 126 (Friday, July 1, 2005)]
[Proposed Rules]
[Pages 38080-38081]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-13118]
=======================================================================
-----------------------------------------------------------------------
COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR SEVERELY DISABLED
41 CFR Parts 51-2, 51-3, and 51-4
[Docket No. 2004-01-01]
RIN 3037-AA00
Governance Standards for Central Nonprofit Agencies and Nonprofit
Agencies Participating in the Javits-Wagner-O'Day Program
AGENCY: Committee for Purchase From People Who Are Blind or Severely
Disabled.
ACTION: Withdrawal of notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Committee for Purchase From People Who Are Blind or
Severely Disabled (The Committee), which is responsible for
administering and overseeing the implementation of the Javits-Wagner-
O'Day (JWOD) Act, published a notice of proposed rulemaking on November
12, 2004 (69 FR 65395) proposing to amend its regulations by requiring
nonprofit agencies awarded Government contracts under the authority of
the JWOD Act, as well as central nonprofit agencies designated by the
Committee and nonprofit agencies that would like to qualify for
participation in the JWOD Program, to comply with new governance
standards. The Committee is now withdrawing this proposed rule for
further study and will propose a new rule in the near future.
DATES: Effective Date: July 1, 2005.
FOR FURTHER INFORMATION CONTACT: G. John Heyer, General Counsel, by
telephone at (703) 603-2121, by fax at (703) 603-0655, by e-mail at
[email protected], or by postal mail at Committee for Purchase From
People Who Are Blind or Severely Disabled, 1421 Jefferson Davis
Highway, Jefferson Plaza 2, Suite 10800, Arlington, VA 22202-3259.
SUPPLEMENTARY INFORMATION: The Committee proposed by notice of November
12, 2004 (69 FR 65395) to amend its regulations to require nonprofit
agencies awarded Government contracts under the authority of the JWOD
Act, as well as central nonprofit agencies designated by the Committee
and nonprofit agencies that would like to qualify for participation in
the JWOD Program, to comply with new governance standards, including
limits on executive compensation. The Committee, by notice of December
3, 2004 (69 FR 70214), extended the comment period on the proposal to
February 10, 2005. By the close of the comment period, the Committee
had received 167 written comments, from Members of Congress,
representatives of designated central nonprofit agencies,
representatives of nonprofit agencies, and other interested persons.
Six commenters supported the proposed rule in its entirety, and eight
other commenters supported the proposed rule in part but requested
changes to other parts of the rule. Commenters who objected to the
proposed rule frequently offered more than one reason for their
objections, including 90 who questioned the Committee's authority to
propose the rule; 106 who claimed that the proposed rule is duplicative
of efforts of other Governmental entities, such as the Internal Revenue
Service, which also regulate nonprofit agencies participating in the
Committee's JWOD Program; and 84 who claimed that the rule is a waste
of limited resources for most JWOD Program participants, as the
Committee admitted that the proposed rule is a response to actions by a
small number of program participants. The Committee's analysis of the
comments revealed 106 different objections, most made by a small number
of commenters, in addition to requests for extension of the original
comment period, which the Committee granted, and requests for public
hearings on the proposed rule.
As a first step in analyzing the comments received on the proposed
rule, the Committee re-examined its legal authority in light of the
arguments made in the comments and concluded that the JWOD Act's
general rulemaking authority provision (41 U.S.C 47(d)(1)(C)) does
permit the Committee to propose a rule concerning governance standards
and executive compensation for JWOD Program participants. There was
nothing provided or referenced in the written comments which would
explicitly and specifically prohibit the Committee from using its
rulemaking authority to propose a rule of this nature.
[[Page 38081]]
However, the Committee believes that the number and nature of the
other issues raised in the comments justify extensive study and
revision of the rule. By withdrawing the proposed rule, the Committee
will have the flexibility to make use of valuable insights it has
received from reviewing the comments to craft a new rule or rules which
will address its concerns without unintended consequences and excessive
burdens on program participants. The Committee intends to propose a new
rule or rules in this area by the end of the year.
Accordingly, the proposed rule of November 12, 2004 (69 FR 65395)
is hereby withdrawn.
Dated: June 28, 2005.
Sheryl D. Kennerly,
Director, Information Management, Committee for Purchase From People
Who Are Blind or Severely Disabled.
[FR Doc. 05-13118 Filed 6-30-05; 8:45 am]
BILLING CODE 6353-01-P