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6712 Federal Register / Vol. 73, No.

24 / Tuesday, February 5, 2008 / Notices

days before the meeting date. Dated in Dated: January 30, 2008. Staff Allegations
Washington DC, 29 January 2008. Todd A. Stevenson, 5. Between July 1991 and January
Secretary. 2004, Vornado manufactured and sold
Thomas Luebke,
AIA, Secretary. United States of America Consumer approximately one million of the subject
Product Safety Commission, CPSC portable electric heaters, model
[FR Doc. 08–482 Filed 2–4–08; 8:45 am]
Docket No. 08–C0003 numbers 180VH , Intellitemp , EVH 
BILLING CODE 6330–01–M (collectively, ‘‘Heaters’’ or ‘‘Products’’),
In the Matter of Vornado Liquidating which were sold at retailers and
Trust for and on Behalf of Vornado Air distributors nationwide as well as
Circulation Systems, Inc. a Trust through Vornado’s Web site, for
CONSUMER PRODUCT SAFETY between $50 and $120.
Settlement Agreement and Order
COMMISSION 6. The Heaters are ‘‘consumer
1. This Settlement Agreement is made product(s)’’ and, at the times relevant
[CPSC Docket No. 08–C0003] by and between the staff (the ‘‘staff’’) of herein, Vornado was a ‘‘manufacturer’’
the U.S. Consumer Product Safety of ‘‘consumer product(s),’’ which were
Vornado Liquidating Trust for and on Commission (the ‘‘Commission’’) and ‘‘distributed in commerce’’ as those
Behalf of Vornado Air Circulation the Vornado Liquidating Trust, a trust terms are defined or used in sections
Systems, Inc., a Trust, Provisional acting for and on behalf of Vornado Air 3(a)(1), (4), (11) and (12) of the CPSA,
Acceptance of a Settlement Agreement Circulation Systems, Inc., a dissolved 15 USC 2052(a)(1), (4), (11) and (12).
and Order Kansas corporation, and established for 7. The Heaters are defective because
the sole benefit of the corporation’s a faulty electrical connection can cause
AGENCY:Consumer Product Safety shareholders, in accordance with 16 the Product to overheat and stop
Commission. CFR 1118.20 of the Commission’s working, thereby posing a fire hazard to
Procedures for Investigations, consumers. More specifically, certain of
ACTION: Notice.
Inspections, and Inquiries under the the Heaters are defective and pose a fire
Consumer Product Safety Act (‘‘CPSA’’). hazard to consumers because they
SUMMARY: It is the policy of the This Settlement Agreement and the contain a faulty crimp involving
Commission to publish settlements incorporated attached Order resolve the insulated connectors (‘‘quick
which is provisionally accepts under staff’s allegations set forth below. connects’’), a flaw which can cause the
the Consumer Product Safety Act in the Heaters to overheat.
Federal Register in accordance with the The Parties
8. Vornado received its first report of
terms of 16 CFR 1118.20(e0). Published 2. The Commission is an independent an overheating incident in January 1993.
below is a provisionally-accepted federal regulatory agency responsible for By the end of 1993, Vornado knew of at
Settlement Agreement with Vornado the enforcement of the CPSA, 15 U.S.C. least 22 reports of Heater incidents
Liquidating Trust for and on behalf of 2051–2084. involving melting, smoking, burning,
Vornado Air Circulation Systems, Inc., a actual fire or the emission of flame.
3. Vornado Air Circulation Systems, 9. On or about October 27, 1997,
Trust, containing a civil penalty of
Inc. was a corporation organized and Vornado changed the design of its
$500,000.
existing under the laws of the State of Heaters to incorporate insulated quick
DATES: Any interested person may ask Kansas, with its principal corporate connects on the white wires between
the Commission not to accept this office located in Andover, Kansas. On the heating element and the switch. The
agreement or otherwise comment on its December 29, 2006, Vornado Air redesigned Heaters were sold from the
contents by filing a written request with Circulation Systems, Inc. ceased fall of 1998 through 2003.
the Office of the Secretary by February operations and sold most of its 10. Although Vornado had received
operating assets to a private equity reports of Products overheating prior to
20, 2008.
group which formed a new company, the design change described in
ADDRESSES: Persons wishing to Vornado Air LLC, a Delaware company. paragraph 9, the firm asserts that this
comment on this Settlement Agreement Vornado Air Circulation Systems, Inc.’s design change caused the faulty crimp
should send written comments to the remaining assets and its proceeds from problem which resulted in the majority
Comment 08–C0003, Office of the the asset sale were assigned to the of the overheating incidents that
Secretary, Consumer Product Safety Vornado Liquidating Trust, which was eventually came to Its attention.
Commission, 4330 East West Highway, established as of December 29, 2006, for 11. After implementing the design
Room 502, Bethesda, Maryland 20814– the purpose of satisfying Vornado Air change in question, Vornado received
4408. Circulation Systems Inc.’s remaining many reports of over-heating incidents
liabilities, including the claims asserted with the Heaters, some of which
FOR FURTHER INFORMATION CONTACT: by the Commission which are the involved fires and the emission of
Ronald G. Yelnik, Trial Attorney, Office subject of this Settlement Agreement. flames. These reports continued for
of Compliance and Field Operations, Vornado Air Circulation Systems, Inc. several years thereafter.
Consumer Product Safety Commission, was legally dissolved in September 12. Despite being aware of the
4330 East West Highway, Bethesda, 2007. Vornado Air Circulation Systems, information set forth in paragraphs 5
Maryland 20814–4408; telephone (301) Inc. and the Vornado Liquidating Trust through 11, Vornado did not report to
504–7582. are hereinafter referred to collectively as the Commission about the overheating
‘‘Vornado’’ or the ‘‘firm.’’ issue involving the heaters until
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SUPPLEMENTARY INFORMATION: The text of


the Agreement and Order appears 4. At all times relevant herein, February 20, 2004, and even then only
below. Vornado designed, manufactured and when requested to do so by the
sold portable electric heaters, including Commission staff.
those that are the subject of this 13. By the time of its February 20,
Settlement Agreement and Order. 2004 report to the CPSC, Vornado was

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Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices 6713

aware of at least 300 reports of constitute an admission by Vornado or the terms of the Settlement Agreement
overheating incidents involving the a determination by the Commission that and Order, such provision shall be fully
subject Heaters. More than 100 of these Vornado violated the CPSA’s reporting severable. The rest of the Settlement
incident reports involved Heaters requirements. Agreement and Order shall remain in
catching fire and/or emitting flames, 21. Upon provisional acceptance of full effect, unless the commission and
while the remainder related to units this Settlement Agreement and Order by Vornado determine that serving the
burning, melting and smoking. the Commission, the Commission shall provision materially changes the
14. Although Vornado had obtained place this Agreement and Order on the purpose of the Settlement Agreement
sufficient information to reasonably public record and shall publish it in the and Order.
support the conclusion that the Heaters Federal Register in accordance with the The Vornado Liquidating Trust for and
contained a defect which could create a procedure set forth in 16 CFR on Behalf of Vornado Air Circulation
substantial product hazard, or created 1118.20(e). If the commission does not Systems, Inc.
an unreasonable risk of serious injury or receive any written requests not to
Dated: January 14, 2008.
death, it failed to inform the accept the Settlement Agreement and
By: Charles Wear,
Commission of such defect or risk as Order within 15 calendar days, the Co-Trustee, 2705 West 112th Street,
required by sections 15(b)(2) and (3) of Agreement and Order shall be deemed
Leawood, Kansas 66211.
the CPSA, 15 U.S.C. 2064(b)(2) and (3). finally accepted on the 16th calendar
day after the date it is published in the Dated: January 14, 2008.
In failing to do so, Vornado By: Kay Reed,
‘‘knowingly’’ violated section 19(a)(4) of Federal Register, in accordance with 16
CFR 1118.20(f). Co-Trustee, 14021 E. Whitewood,
the CPSA, 15 U.S.C. 2068(a)(4), as the Wichita, Kansas 67230.
term ‘‘knowingly’’ is defined in section 22. Upon final acceptance of this
20(d) of the CPSA, 15 U.S.C. 2069(d). Settlement Agreement by the Dated: January 15, 2008.
15. Pursuant to section 20 of the Commission and issuance of the Final By Christopher Smith,
CPSA, 15 U.S.C. 2069, Vornado is Order, Vornado knowingly, voluntarily Sonnenschein Nath & Rosenthal LLP,
subject to civil penalties for its failure and completely waives any rights it may 1301 K Street, NW., Suite 600, East
to report as required under section 15(b) have in this matter to the following: (i) Tower, Washington, DC 20005–3364,
of the CPSA, 15 U.S.C. 2064(b). An administrative or judicial hearing; Counsel for the Vornado Liquidating
(ii) judicial review or other challenge or Trust.
Response of Vornado contest of the commission’s actions; (iii) U.S. CONSUMER PRODUCT SAFETY
16. Vornado contests and denies the a determination by the Commission as COMMISSION.
staff’s allegations. Vornado asserts that to whether Vornado failed to comply John Gibson Mullan,
it acted responsibly and reasonably to with the CPSA and the underlying Assistant Executive Director, Office of
investigate and respond to incident regulations; (iv) a statement of findings Compliance and Field Operations.
reports it received involving the of fact and conclusions of law; and (v) Dated: January 17, 2008.
Products, including its implementation any claims under the Equal Access to By: Ronald G. Yelenik,
of a successful product recall in Justice Act. Acting Director,
cooperation with the Commission on 23. The Commission may publicize M. Reza Malihi,
August 3, 2004. Vornado denies it was the terms of the Settlement Agreement Trial Attorney, Legal Division, Office of
aware of facts that arguably could have and Order. Compliance and Field Operations.
given rise to a reporting obligation 24. This Settlement Agreement shall
United States of America Consumer
under the CPSA until the time it apply to, and be binding upon Vornado
Product Safety Commission, CPSC
actually filed a report with the and each of its successors and assigns.
Docket No. 08–C0003
Commission on February 20, 2004. 25. The commission’s Order in this
Likewise, the firm denies that any matter is issued under the provisions of In the Matter of Vornado Liquidating
alleged violation of the CPSA’s the CPSA, 15 U.S.C. 2051–2084, and a Trust for and on Behalf of Vornado Air
reporting requirements was committed violation of the Order may subject those Circulation systems, Inc., a Trust
‘‘knowingly.’’ referenced in paragraph 24 above to Order
17. Vornado has entered this appropriate legal action.
settlement in order to resolve this claim 26. This Settlement Agreement may Upon consideration of the Settlement
without the expense and distraction of be used in interpreting the Order Agreement entered into between the
litigation. Agreements, understandings, Vornado Liquidating Trust, a trust
representations, or interpretations made acting for an on behalf of Vornado Air
Agreement of the Parties outside of this Settlement Agreement Circulation Systems, Inc., a dissolved
18. The commission has jurisdiction and Order may not be used to vary or Kansas corporation, and established for
over this matter and over Vornado to contradict its terms. the sole benefit of the corporation’s
under the CPSs, 15 U.S.C. 2051–2084. 27. This Settlement Agreement and shareholders (collectively, ‘‘Vornado’’),
19. In settlement of the staff’s Order shall not be waived, changed, and the staff of the U.S. Consumer
allegations, Vornado agrees to pay a amended, modified, or otherwise Product Safety Commission (the
civil penalty of five hundred thousand altered, without written agreement ‘‘Commission’’), and the Commission
dollars ($500,000.00) within twenty (20) thereto executed by the party against having jurisdiction over the subject
calendar days of receiving service of the whom such amendment, modification, matter and over Vornado, and it
Final Order of the Commission alteration, or waiver is sought to be appearing the Settlement Agreement is
accepting this Settlement Agreement. enforced, and approval by the in the public interest, it is
This payment shall be made by cashier’s Commission. Ordered, that the Settlement
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check payable to the order of the United 28. If, after the effective date hereof, Agreement be, and hereby is, accepted;
States Treasury. any provision of this Settelement and it is
20. The parties enter this Settlement Agreement and Order is held to be Further ordered, that Vornado shall
Agreement for settlement purposes only. illegal, invalid, or unenforceable under pay a civil penalty in the amount of five
the Settlement Agreement does not present or future laws effective during hundred thousand dollars

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6714 Federal Register / Vol. 73, No. 24 / Tuesday, February 5, 2008 / Notices

($500,000.00). This payment shall be frequency of collection; and (6) Comments regarding burden and/or
made payable to the order of the United Reporting and/or Recordkeeping the collection activity requirements
States Treasury within twenty (20) burden. OMB invites public comment. should be electronically mailed to
calendar days of service of the Final The Department of Education is ICDocketMgr@ed.gov. Individuals who
Order of the Commission upon especially interested in public comment use a telecommunications device for the
Vornado. Upon the failure of Vornado to addressing the following issues: (1) Is deaf (TDD) may call the Federal
make full payment in the prescribed this collection necessary to the proper Information Relay Service (FIRS) at 1–
time, interest on the outstanding functions of the Department; (2) will 800–877–8339.
balance shall accrue and be paid at the this information be processed and used [FR Doc. E8–2067 Filed 2–4–08; 8:45 am]
federal rate of interest under the in a timely manner; (3) is the estimate
BILLING CODE 4000–01–P
provisions of 28 U.S.C. section 1961(a) of burden accurate; (4) how might the
and (b). Department enhance the quality, utility,
Provisionally accepted and Provisional and clarity of the information to be DEPARTMENT OF EDUCATION
Order issued on the 30th day of January, collected; and (5) how might the
2008. Department minimize the burden of this Submission for OMB Review;
By Order of the Commission: collection on the respondents, including Comment Request
through the use of information
Todd A. Stevenson, AGENCY: Department of Education.
technology.
Secretary, Consumer Product Safety SUMMARY: The IC Clearance Official,
Commission. Dated: January 30, 2008. Regulatory Information Management
[FR Doc. 08–491 Filed 2–4–08; 8:45 am] Angela C. Arrington, Services, Office of Management invites
BILLING CODE 6355–01–M IC Clearance Official, Regulatory Information comments on the submission for OMB
Management Services, Office of Management. review as required by the Paperwork
Office of Innovation and Improvement Reduction Act of 1995.
DEPARTMENT OF EDUCATION DATES: Interested persons are invited to
Type of Review: New.
Title: National Writing Project Annual submit comments on or before March 6,
Notice of Proposed Information 2008.
Collection Requests Performance Indicators.
Frequency: Annually. ADDRESSES: Written comments should
AGENCY: Department of Education. Affected Public: Individuals or be addressed to the Office of
SUMMARY: The IC Clearance Official, household; Not-for-profit institutions. Information and Regulatory Affairs,
Regulatory Information Management Reporting and Recordkeeping Hour Attention: Education Desk Officer,
Services, Office of Management, invites Burden: Office of Management and Budget, 725
comments on the proposed information Responses: 480. 17th Street, NW., Room 10222,
collection requests as required by the Burden Hours: 460. Washington, DC 20503. Commenters are
Paperwork Reduction Act of 1995. Abstract: The purpose is to encouraged to submit responses
DATES: Interested persons are invited to implement a data collection and review electronically by e-mail to
submit comments on or before April 7, process for a new annual reporting for oira_submission@omb.eop.gov or via fax
2008. Government Performance Results Act to (202) 395–6974. Commenters should
SUPPLEMENTARY INFORMATION: Section (GPRA) purposes for the National include the following subject line in
3506 of the Paperwork Reduction Act of Writing Project (NWP) program. These their response ‘‘Comment: [insert OMB
1995 (44 U.S.C. Chapter 35) requires data are necessary to assess the number], [insert abbreviated collection
that the Office of Management and performance of the NWP program in name, e.g., ‘‘Upward Bound
Budget (OMB) provide interested meeting its stated goals and objectives. Evaluation’’]. Persons submitting
Federal agencies and the public an early The data collection will occur in phases comments electronically should not
opportunity to comment on information over a 2-year period. Although all ED- submit paper copies.
collection requests. OMB may amend or grantees are required to provide SUPPLEMENTARY INFORMATION: Section
waive the requirement for public performance data on an annual or 3506 of the Paperwork Reduction Act of
consultation to the extent that public periodic basis, the respondents for this 1995 (44 U.S.C. Chapter 35) requires
participation in the approval process data collection are participants in the that the Office of Management and
would defeat the purpose of the NWP grant; therefore, their participation Budget (OMB) provide interested
information collection, violate State or in the data collection is voluntary. Federal agencies and the public an early
Federal law, or substantially interfere Requests for copies of the proposed opportunity to comment on information
with any agency’s ability to perform its information collection request may be collection requests. OMB may amend or
statutory obligations. The IC Clearance accessed from http://edicsweb.ed.gov, waive the requirement for public
Official, Regulatory Information by selecting the ‘‘Browse Pending consultation to the extent that public
Management Services, Office of Collections’’ link and by clicking on participation in the approval process
Management, publishes that notice link number 3445. When you access the would defeat the purpose of the
containing proposed information information collection, click on information collection, violate State or
collection requests prior to submission ‘‘Download Attachments’’ to view. Federal law, or substantially interfere
of these requests to OMB. Each Written requests for information should with any agency’s ability to perform its
proposed information collection, be addressed to U.S. Department of statutory obligations. The IC Clearance
grouped by office, contains the Education, 400 Maryland Avenue, SW., Official, Regulatory Information
following: (1) Type of review requested, LBJ, Washington, DC 20202–4537. Management Services, Office of
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e.g. new, revision, extension, existing or Requests may also be electronically Management, publishes that notice
reinstatement; (2) Title; (3) Summary of mailed to ICDocketMgr@ed.gov or faxed containing proposed information
the collection; (4) Description of the to 202–401–0920. Please specify the collection requests prior to submission
need for, and proposed use of, the complete title of the information of these requests to OMB. Each
information; (5) Respondents and collection when making your request. proposed information collection,

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