[Federal Register: July 1, 2005 (Volume 70, Number 126)]
[Proposed Rules]               
[Page 38080-38081]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01jy05-41]                         

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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.

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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 
jheyer@jwod.gov, 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