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Briefing Package Recommends That the Commission Issue a Notice of Proposed Mlemaking ("NPR) to Address the Safety of Youth and Adult All Terrain Vehicles ("Atvs")

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Briefing Package Recommends That the Commission Issue a Notice of Proposed Mlemaking ( VOTE SHEET DATE: MAY 3 1 2006 TO: The Commission Todd A. Stevenson, Secretary A /. THRU: Page C. Faulk, General Counsel FROM: Patricia M. Pollitzer, Regulatory Affairs Division %f SUBJECT: All Terrain Vehicle Initiative. The attached staff briefing package recommends that the Commission issue a notice of proposed mlemaking ("NPR) to address the safety of youth and adult all terrain vehicles ("ATVs"). Specifically, the staff recommends that the Commission propose, under authority of the Consumer Product Safety Act ("CPSA"), a consumer product safety standard for ATVs intended for use by adults and a ban on three-wheeled ATVs intended for use by adults. The staff also recommends that the Commission propose, under authority of the Federal Hazardous Substances Act ("FHSA"), a standard for ATVs intended for use by youths. The effect of this action with respect to youth ATVs would be a ban on youth ATVs that do not comply with the standard, including all three-wheeled youth ATVs. A draft NPR that would accomplish these actions is provided as Tab F of the staff briefing package. In addition, the staff recommends that the Commission approve a web site devoted to safety of ATVs and information related thereto. The information to access the restricted, prototype version of the web site has been provided separately to the Commissioners. The staff briefing package also makes other suggestions for non-regulatory activities that might be undertaken to enhance ATV safety. Please indicate your vote on the following two issues: I. Notice of Proposed Rulemaking 1. Approve publication of the draft NPR in the Federal Register without change. Signature. Date CPSC Hotline: 1-800-638-CPSC(2772) CPSC's Web Site: http:/iwww.cpsc.~ov -. ,i:.. - Initial 2. Approve publication of the draft NPR in the Federal Register with changes. (Please specify.) Signature Date 3. Do not approve publication of the draft NPR in the Federal Register Signature Date 11. ATV Safety Web Site 1. Approve the ATV safety web site as currently configured. Signature Date 2. Approve the ATV safety web site with changes. (Please specify.) Signature Date 3. Do not approve the ATV safety web site. Signature Date Attachment: 1.) Memo to the Commission from Elizabeth Leland, ATV Project Manager, Economics Directorate, Office of Hazard Identification and Reduction, All- Terrain Vehicles: CPSC Staffproposals for Consideration, May 3 1,2006. Page 2 of 2 Briefing Package ATV Safety Review May 2006 For information, contact: Elizabeth W. Leland Directorate for Economic Analysis U.S. Consumer Product Safety Commission 30 1-504-7706 1 NOTE; Thir Cd6crunenf Ittab bet beem reviened or maepted by the CommSssioa. Mtia1 h&, &, Date 5/31!0b Executive Summary On June 8, 2005, Chairman Hal Stratton delivered a memorandum to the staff asking the staff to review all ATV safety actions and make recommendations on a number of issues. The memo directed the staff to consider whether: (1) The current ATV voluntary standards are adequate in light of trends in ATV-related deaths and injuries; (2) the current ATV voluntary standards or other standards pertaining to ATVs should be adopted as mandatory standards by the Commission; and (3) other actions, including rulemaking, should be taken to enhance ATV safety. In October, 2005, the Commission issued an advance notice of proposed rulemaking (ANPR) to initiate a regulatory proceeding for ATVs under the authority of the Consumer Product Safety Act (CPSA), and the Federal Hazardous Substances Act (FHSA). The ANPR was issued as part of the comprehensive review of regulatory and non-regulatory options for addressing the risk of injury and death associated with ATVs, and it invited written comments from the public regarding the risk of injury associated with ATVs and ways in which these risks might be addressed. Based on its evaluation of the regulatory alternatives and the comments that were submitted in response to the ANPR, the CPSC staff recommends issuing a notice of proposed rulemaking (NPR) requiring: adult (single-person and tandem) ATVs to meet specific mechanical performance requirements; youth ATVs to meet specific mechanical performance and design requirements and to be categorized by speed limitation alone rather than by speed limitation and engine size; specific safety warnings to be provided to the purchaser through hang tags, labels, a safety video, and the owner's instruction manual; a means for reporting safety-related complaints to the manufacturer be provided to the purchaser; a disclosure statement warning against the use of adult ATVs by children and describing the possible consequences of children riding adult ATVs be provided to and signed by purchasers of all adult ATVs; an acknowledgement-of-age statement be provided to and signed by purchasers of children's ATVs; a certificate offering fiee training to each member of the purchaser's immediate family for which the ATV is age-appropriate be provided to all purchasers of ATVs; three-wheeled ATVs to be banned. In addition to these regulatory actions, the staff also recommends that the Commission implement a series of non-regulatory activities to enhance ATV safety. These would include continuing to work with industry in voluntary standards activities, launching an ATV safety Web site including an ATV data resource "bank" with information on state legislative and regulatory activity, and implementing an additional two-phase information and education effort. TABLE OF CONTENTS Page Executive Summary 2 Briefing Memorandum 6 1. Introduction 6 2. Background 7 A. CPSCYsInvolvement with ATVs: History and Recent Activities 7 B. ATV-Related Injury and Death Data 8 C. Characteristics of the Current Market for ATVs 9 3. Issues That Need to be Addressed by a Mandatory Standard 9 4. Regulatory Activity: Notice of Proposed Rulemaking (NPR) 10 5. Requirements for Adult, Tandem, and Youth ATVs 10 A. Four-wheeled Single-Person Adult ATVs 10 B. Four-wheeled Two-Person Tandem ATVs 11 C. Four-wheeled Youth ATVs 11 D. Discussion: Mechanical Requirements 13 6. Information Requirements 15 A. Labels, Hang Tags, Owner's Manuals, and Safety Video 15 B. Risk Disclosure Form 16 7. Offer-of-Training Requirement 17 8. Ban: Three-Wheeled ATVs 19 9. Non-Regulatory Activities 19 A. Voluntary Standards Activities 20 B. Development of a Data Resource for Those Interested in State Legislation 20 C. Safety Information and Education, Including the Launch of a Dedicated Web Site 20 10. Additional Staff Comments 2 1 A. Encouraging the Use of Protective Gear 2 1 B. Insurance Discounts for Training 2 1 11. Summary 2 1 12. Options Available to the Commission 2 1 A. Approve All of the Staffs Recommendations 2 1 B. Approve Some, but Not All, of the Staff's Recommendations 22 C. Defer Making a Decision on the Staffs Recommendations 22 D. Do Not Implement Any of the Staffs Recommendations 22 13. Staff Recommendation 22 Tabs A: Consumer Product Safety Commission, 16 CFR Chapter 11, "All Terrain Vehicles: Advance Notice of Proposed Rulemaking: Request for Comments and Information", 70 Federal Register 6003 1 - 60036 (October 14,2005). 23 B: List of Public Comments Submitted in Response to the October 14,2005, Federal Register Notice C: "October 14,2005, All-Terrain Vehicle (ATV) Advance Notice of Proposed Rulemaking (ANPR): CPSC Staff Response to Public Comments", Memorandum fiom Elizabeth W. Leland, Economic Analysis, Manager, ATV Safety Review Project, CPSC, to Jacqueline Elder, Assistant Executive Director for Hazard Identification and Reduction, May 26,2006. D: 2004 Annual Report ofATV Deaths and Injuries, Report from Robin L. Ingle, Directorate for Epidemiology, Division of Hazard Analysis, CPSC, September 2005. E: "Current Market Conditions --- ATVs", Memorandum from Terrance R. Karels, Directorate for Economic Analysis, CPSC, to Elizabeth W. Leland, EC, Project Manager, ATVs, May 23,2006. F: Preamble to Proposed Rules. Proposed Rule: Part 1307 - Ban of Three-Wheeled All Terrain Vehicles. Proposed Rule: Part 1410 - Requirements for Adult All Terrain Vehicles. Proposed Rule: Part 15 15 - Requirements for Youth All Terrain Vehicles. G: "Draft Proposed Requirements for All-Terrain Vehicles", Memorandum fiom Caroleene Paul, Division of Mechanical Engineering, Directorate for Engineering Sciences, CPSC, to Elizabeth Leland, Project Manager, ATV Safety Review Team, May 23,2006. H: "ATV Age Guidelines", Memorandum fiom Hope E. Johnson, Engineering Psychologist, Division of Human Factors, Directorate for Engineering Sciences, CPSC, to Elizabeth Leland, Project Manager, ATV Team, May 23,2006. I: "ATV Lighting", Memorandum fiom Sarah B. Brown, Engineering Psychologist, Division of Human Factors, Directorate for Engineering Sciences, CPSC, to Elizabeth Leland, Project Manager, ATV Project, May 22,2006. J: "All Terrain Vehicle Mandatory Standard: Preliminary Regulatory Analysis", Report from Robert Franklin, Directorate for Economic Analysis, CPSC, May 2006, and "All Terrain Vehicles: Initial Regulatory Flexibility Analysis", Report from Robert Franklin, Directorate for Economic Analysis, CPSC, May 2006. K: "Minimum requirements for ATV hang tags, product labels, and manual warnings", Memorandum fiom Timothy P. Smith, Engineering Psychologist, Division of Human Factors, Directorate for Engineering Sciences, CPSC, to Elizabeth W. Leland, Project Manager, ATV Safety Review Project, May 23,2006. 41 1 L: "Recommended disclosure statement for adult-ATV purchasers", Memorandum from Timothy P. Smith, Engineering Psychologist, Division of Human Factors,
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