An agency statement that creates new duties or imposes new rights is a substantive legislative rule requiring notice and comment, not an interpretative rule.
The Consumer Product Safety Commission issued a statement of interpretation modifying its enforcement of the Small Parts Rule to include fabric components, claiming the action merely clarified existing regulations. The question presented is whether this statement constitutes an interpretative rule or a substantive legislative rule requiring notice and comment procedures. The court applies the rule that interpretative rules only remind parties of existing duties, whereas substantive rules create new law or impose new rights and duties. Because the statement altered a longstanding enforcement position, imposed new penalties, and affected new classes of businesses, the court determines it is a legislative rule. The court sets aside the statement because the Commission failed to comply with statutory notice and comment requirements.
At page 207 Distinguishing interpretive from substantive agency rules15 citing cases“courts are in general agreement that interpretative rules simply state what the administrative agency thinks the statute means, and only 'remind' affected parties of existing duties.”
- Guo Chun Di v. Carroll, 842 F. Supp. 858 (E.D. Va. 1994).published See Caribbean Produce Exchange v. Sec. of Health and Human Services, 893 F.2d 3, 7 (1st Cir.1989) citing Welch v. United States, 750 F.2d 1101, 1111 (1st Cir.1985) ("failure to publish in the Federal Register does not automatically invalid…
- Cnty. of Clark v. LB Props., Inc., 315 P.3d 294 (Nev. 2013).published ([A] substantive or legislative rule, pursuant to properly delegated authority, has the force of law, and creates new law or imposes new rights or duties.)
- Co. of Clark v. Lb Props., Inc., No. 57082 (Nev. Sept. 12, 2013).unpublished(a substantive or legislative rule, pursuant to properly delegated authority, has the force of law, and creates new law or imposes new rights or duties.)
- Cmty. Associations Inst. v. U.S. Dep't of the Treasury, No. 1:24-cv-01597 (E.D. Va. Oct. 24, 2024).“By contrast, ‘a substantive or legislative rule, pursuant to properly delegated authority, has the force of law, and creates new law or imposes new rights or duties.’” King’s Daughters, 896 F.3d at 620 (citing Jerri’s, 874 F.2d at 207). “…
- Child.'s Hosp. of the King's Daughters, Inc. v. Azar, 896 F.3d 615 (4th Cir. 2018).published“a substantive or legislative rule, pursuant to properly delegated authority, has the force of law, and creates new law or imposes new rights or duties”
- Sec'y, Dep't of Pub. Saf. & Corr. Servs. v. Demby, 890 A.2d 310 (Md. 2006).publishedId,, (quoting Jerri’s Ceramic Arts, Inc. v. Consumer Product Safety Comm’n, 874 F.2d 205 , 207 (4th Cir.1989)). *606 Id. at 207-208.
- Bragg v. Robertson, 54 F. Supp. 2d 653 (S.D. W. Va. 1999).published Instead, the Court should consider the agency’s “intent in authoring it, as ascertained by an examination of the provision’s language, its context, and any available extrinsic evidence.” Jerri’s Ceramic Arts, 874 F.2d at 207-08. 1.
- Wiggins v. Wise, 951 F. Supp. 614 (S.D. W. Va. 1996).published Interpretive rules “simply state what the administrative agency thinks the statute means, and only ‘remind’ affected parties of existing duties.” Id. at 207.
- Chen Zhou Chai v. Carroll, 48 F.3d 1331 (4th Cir. 1995).published Jerri’s Ceramic Arts, 874 F.2d at 207; American Hosp.
- United States v. William B. Ellen, United States of Am. v. William B. Ellen, 961 F.2d 462 (4th Cir. 1992).published The manual does not purport to “create[] new law or impose[] new rights or duties,” Jerri’s Ceramic Arts, 874 F.2d at 207, and it was not promulgated through the notice and comment rulemaking procedures of the Administrative Procedure Act,…
Show 5 more citing cases
- S. Paul Hobbs Donna M. Hobbs, His Wife Phillip Ray Hobbs Dorothy v. Hobbs, His Wife v. United States of Am. William Reilly, Adm'r, United States Env't Prot. Agency (A-100) Stanley L. Laskowski, Acting Adm'r, United States Env't Prot. Agency, Region III Greene A. Jones, Dir., 90-1861 Env't Servs. Div., United States Env't Prot. Agency, Region III John O. Marsh, Jr., &/or Richard L. Armitage, After Confirmation, Sec'y of the Army Lieutenant Gen. Henry J. Hatch, Chief, Army Corps of Engineers Major Gen. James W. Van Loben Sels, North Atl. Div. Eng'r Joseph H. Thomas, Norfolk Dist. Eng'r, 947 F.2d 941 (4th Cir. 1991).unpublished In Jerri's Ceramic Arts v. Consumer Products Safety Comm'n, 874 F.2d 205 (4th Cir.1989), we noted the distinction between the two rules: 26 An interpretive rule simply state[s] what the administrative agency thinks the statute means, and o…
- Fed. Farm Credit Banks Funding Corp. v. Farm Credit Admin., 731 F. Supp. 217 (E.D. Va. 1990).published Jerri’s Ceramic Arts, 874 F.2d at 208.
- Tabb Lakes, Ltd. v. United States, 885 F.2d 866 (4th Cir. 1989).unpublished Jerri's Ceramics, 874 F.2d at 208.
- Mills v. Injury Benefits Plan of Schepps-Foremost, Inc., 851 F. Supp. 804 (N.D. Tex. 1993).published
- Vista Hill Investments, LLC, Bobby A. Branch, Tax Matters Partner, No. 17380-19 (T.C. Nov. 9, 2022).published
At page 208 Determining legislative intent for agency enforcement power7 citing casesrule was legislative where it “has the clear intent ... of providing the Commission with power to enforce violations of a new rule
- Guilford Coll. v. Mcaleenan, No. 1:18-cv-00891 (M.D.N.C. Feb. 6, 2020).The memorandum states that its purpose is to “reduce the number of overstays and improve how USCIS implements the unlawful presence ground of inadmissibility under [the] INA.” (See ECF No. 57-1 at 18 (emphasis added).) The memo goes on to…
- Nat'l Council for Adoption v. Jewell, 156 F. Supp. 3d 727 (E.D. Va. 2015).published (rule was legislative where it “has the clear intent ... of providing the Commission with power to enforce violations of a new rule)
- Wiggins v. Wise, 951 F. Supp. 614 (S.D. W. Va. 1996).published Interpretive rules “simply state what the administrative agency thinks the statute means, and only ‘remind’ affected parties of existing duties.” Id. at 207.
- United States v. William B. Ellen, United States of Am. v. William B. Ellen, 961 F.2d 462 (4th Cir. 1992).published The manual does not purport to “create[] new law or impose[] new rights or duties,” Jerri’s Ceramic Arts, 874 F.2d at 207, and it was not promulgated through the notice and comment rulemaking procedures of the Administrative Procedure Act,…
- S. Paul Hobbs Donna M. Hobbs, His Wife Phillip Ray Hobbs Dorothy v. Hobbs, His Wife v. United States of Am. William Reilly, Adm'r, United States Env't Prot. Agency (A-100) Stanley L. Laskowski, Acting Adm'r, United States Env't Prot. Agency, Region III Greene A. Jones, Dir., 90-1861 Env't Servs. Div., United States Env't Prot. Agency, Region III John O. Marsh, Jr., &/or Richard L. Armitage, After Confirmation, Sec'y of the Army Lieutenant Gen. Henry J. Hatch, Chief, Army Corps of Engineers Major Gen. James W. Van Loben Sels, North Atl. Div. Eng'r Joseph H. Thomas, Norfolk Dist. Eng'r, 947 F.2d 941 (4th Cir. 1991).unpublished In Jerri's Ceramic Arts v. Consumer Products Safety Comm'n, 874 F.2d 205 (4th Cir.1989), we noted the distinction between the two rules: 26 An interpretive rule simply state[s] what the administrative agency thinks the statute means, and o…
- Fed. Farm Credit Banks Funding Corp. v. Farm Credit Admin., 731 F. Supp. 217 (E.D. Va. 1990).published Jerri’s Ceramic Arts, 874 F.2d at 208.
- Tabb Lakes, Ltd. v. United States, 885 F.2d 866 (4th Cir. 1989).unpublished Jerri's Ceramics, 874 F.2d at 208.
At page 205 Denial of rule 39(b) motion based on inadvertence3 citing casesCHAPMAN, Circuit Judge: This case requires a determination of whether a “Statement of Interpretation” issued by the Consumer Product Safety Commission is in…
- Urell, No. 2:23-cv-03652 (S.D. Ohio Nov. 19, 2025).Still, “a district court will not abuse its discretion in denying a Rule 39(b) motion if the only justification is mere inadvertence.” Misco, Inc., 874 F.2d at 205.
- West Bend Mut. Ins. Co. v. Osmic, Inc, No. 1:21-cv-00593 (N.D. Ohio Sept. 6, 2024).However, “a district court will not abuse its discretion in denying a Rule 39(b) motion if the only justification is mere inadvertence.” Misco, Inc., 874 F.2d at 205.
- West Bend Mut. Ins. Co. v. Osmic, Inc, No. 1:21-cv-00593 (N.D. Ohio Aug. 7, 2024).However, “a district court will not abuse its discretion in denying a Rule 39(b) motion if the only justification is mere inadvertence.” Misco, Inc., 874 F.2d at 205.
Other citing cases
- Lozada v. Dale Baker Oldsmobile, Inc., 91 F. Supp. 2d 1087 (W.D. Mich. 2000).published
- United States v. Econ. Muffler & Tire Ctr., Inc., 762 F. Supp. 1242 (E.D. Va. 1991).published
v.
CONSUMER PRODUCT SAFETY COMMISSION
This case requires a determination of whether a “Statement of Interpretation” issued by the Consumer Product Safety Commission is in fact an interpretation of an existing regulation, or is properly considered a legislative or substantive rule subject to notice and comment procedures. The “interpretation” at issue was published in May 1988, and effects a change in the Commission’s enforcement policy of the “Small Parts Rule,” 16 C.F.R. 1501.1-1501.5 (1988). The Rule allows the Commission to ban small toys and other children’s items that present a potential health hazard. Previously, compliance officers had banned only those hard components, generally plastic, that were sufficiently small to fit into a testing cylinder. Now the Commission seeks also to prohibit components of equivalent size made of fabric. Because we believe this “interpretation” is actually a substantive amendment to the Small Parts Rule, and because the Commission did not comply with the statutory procedures of notice and comment required for such amendments, we grant appellant’s petition to set the Commission’s statement aside.
I
The Federal Hazardous Substances Act, 15 U.S.C. § 1261 et seq. (1982), authorizes the Commission to fashion regulations that identify and prohibit the introduction of hazardous substances into interstate commerce. Pursuant to this authority, the Commission in 1978 proposed regulations to allow the identification and exclusion of articles which pose hazards of choking, aspiration, or ingestion. The final regulations, which went into effect on January 1, 1980, apply generally to appropriately[*207] small “toys and other articles intended for use by children under three years (36 months) of age that are introduced into interstate commerce,” 16 C.F.R. § 1501.2 (1988). Whether the items are considered dangerously small is determined by placing them in a cylinder one and one-quarter inches in diameter, and one inch to two and one-quarter inches deep. The regulation further provides that “if the article fits entirely within the cylinder,” it fails the test procedure. 16 C.F.R. § 1501.4(a) (1988). Further, if the article does not fit entirely within the cylinder, it will be subject to the regulations’ “use and abuse” test. Any “components or pieces (excluding paper, fabric, yarn, fuzz, elastic and string)” that become detached from the article during this testing, and which then fit entirely within the cylinder, do not comply with the test. 16 C.F.R. § 1501.4(b)(2) (1988).
This dispute involves the meaning of the exclusion for “paper, fabric, yarn, fuzz, elastic, and string” provided in § 1501.4(b)(2). Between 1981 and 1987, the Commission’s Compliance and Administrative Litigation staff, which had direct responsibility for enforcing the Small Parts Rule, concluded that § 1501.4(b)(2) meant that “components which become detached from an article [during use and abuse testing] and which are paper, fabric, yarn, fuzz, elastic or string are excluded from being considered small parts.” “Pieces” made of the same sorts of material were also excluded from the rule. During the summer of 1987, however, Commission staff reviewed their initial determination and decided that the enumerated exclusions of § 1501.4(b)(2) actually modified only the word “pieces,” and therefore that only “pieces” of goods that “might tear from the article,” and not “entire components,” fell outside the Small Parts Rule. Small “components” of fabric, yam, elastic or string could therefore be banned.
In May, 1988, the Commission voted, 2-1, to concur in the staff determination and to issue an “interpretative statement,” 16 C.F. R. § 1501.20, providing for the exclusion of small part components made of fabric, yam, fuzz, elastic, or string. The statement was published in the May 27, 1988 Federal Register. There, the Commission stated that, in addition to the phrasing of the regulation, the rale change was justified by remarks in the preamble to the proposed regulations, published in 1979, to the effect that “bits of fabric, yarn, paper and fuzz” were excluded from the rale because “these fibrous types of materials cannot be meaningfully tested with the truncated cylinder when they are pulled off or out of a toy.” Because the Commission was by 1988 unaware of testing limitations for fabric “components” as opposed to “bits” or “pieces,” it concluded that such components should not continue to be excluded from the rule. Enforcement of the new interpretation was stayed until November 23, 1989. 53 Fed.Reg. 19, 281-82 (May 27, 1988).
II
As this court has previously stated, the Commission’s “characterization of its statement as an exposition of its policy or interpretation of the standard does not preclude our finding that it is something more.” National Knitwear Manufacturers Association v. Consumer Products Safety Commission, 666 F.2d 81, 83 (4th Cir.1981). Such a distinction between “interpretative” rales and “something more,” i.e., “substantive” or “legislative” rales, is not always easily made. Nonetheless, courts are in general agreement that interpretative rales simply state what the administrative agency thinks the statute means, and only “remind” affected parties of existing duties. Chula Vista City School District v. Bennett, 824 F.2d 1573, 1582 (Fed.Cir.1987); Southern California Edison Co. v. Federal Energy Regulatory Commission, 770 F.2d 779, 783 (9th Cir.1985); General Motors Corp. v. Ruckelshaus, 742 F.2d 1561, 1562 (D.C.1984); Gibson Wine Co. v. Snyder, 194 F.2d 329, 331 (D.C.Cir.1952). In contrast, a substantive or legislative rale, pursuant to properly delegated authority, has the force of law, and creates new law or imposes new rights or duties. National Latino Media Coalition v. Federal Communications Com[*208] mission, 816 F.2d 785, 788 (D.C.Cir.1987); Southern California Edison, 770 F.2d at 783; General Motors Corp., 742 F.2d at 1565.
The distinction between interpretative and legislative rules is significant because 15 U.S.C. § 1262, through 5 U.S.C. § 553(b)(3)(A) (1982), the Administrative Procedure Act, exempts “interpretative rules, general statements of policy, or rules of agency organization, procedure [and] practice” from the process of notice and comment. Legislative rules which fail to satisfy such procedural requirements must be set aside. 15 U.S.C. § 1262(e)(l)-(3) (1982); 5 U.S.C. § 553(b)(3)(A) (1982); Toy Manufacturers of America v. Consumer Products Safety Commission, 630 F.2d 70, 75-77 (2d Cir.1980).
Ill
In deciding whether proposed § 1501.20 is an interpretative rule, this court should consider the Commission’s “intent in authoring it, as ascertained by an examination of the provision’s language, its context, and any available extrinsic evidence.” Doe v. Hampton, 566 F.2d 265, 280-81 (D.C.Cir.1977). Here, the language of the statement and related comments establishes that more is involved than mere “interpretation,” because the proposed statement has the clear intent of eliminating a former exemption and of providing the Commission with power to enforce violations of a new rule. For example, the statement gives the Commission authority to impose the full range of civil and criminal penalties provided by Congress. The Commission specifically maintained that in “any enforcement action” based on the new interpretation, “affected parties who disagree with the action will have a full opportunity in a federal district court and/or administrative proceeding to challenge the Commission’s interpretation.” This is conclusive evidence that the agency believes its statement imposes new duties that have the force of law and that it can proceed to enforce those duties. Moreover, the Commission explicitly created a “stay of enforcement,” a further indication that it plans to sanction future non-compliance. For these reasons, the Commission’s contention that the rule does not “command performance” is simply incredible. Its proposal that, instead, the statement “only expects” and “urges” compliance, and merely provides guidance to the public and its staff, ignores the statement’s plain language that the period of mere “expectation” is limited to those months before the stay of enforcement is lifted.
The broader context of the statement also confirms that the Commission’s act is an attempt at legislative rule-making. The fact that the statement altered a longstanding position cannot readily be discounted. If “interpretation” is a process of “reminding” one of existing duties, a decision to modify former duties demands close scrutiny by a reviewing court. Certainly this does not mean that an agency may never reconsider its interpretation of a regulation. But it must do so with regard to the effects of such a decision, and the greater such effects, the less likely the change can be considered merely interpretative. Here, the new rule directly impacts on an enormous range of children’s products industries, including toys, apparel, furniture and furnishings, the latter of which, because of the fabric exemption, were formerly excluded from the rule. As a result, the statement would, for the first time, have the effect of bringing within the sweep of the regulation entirely new classes of business.
Because the tests distinguishing legislative and interpretative rule-making are largely concerned with intent and effect, we believe that the above facts establish that the Commission has made a legislative rule and called it an interpretation. Congress has made it clear that the promulgation of such legislative rules must be preceded by the procedural requirements elaborated at 15 U.S.C. § 1262. Because the Commission has not complied with such requirements, the interpretation by the Commission must be set aside.
SO ORDERED.