[Congressional Record Volume 145, Number 67 (Tuesday, May 11, 1999)]
[House]
[Pages H2935-H2941]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              FASTENER QUALITY ACT AMENDMENTS ACT OF 1999

  Mr. SENSENBRENNER. Mr. Speaker, I move to suspend the rules and pass 
the bill (H.R. 1183) to amend the Fastener Quality Act to strengthen 
the protection against the sale of mismarked, misrepresented, and 
counterfeit fasteners and eliminate unnecessary requirements, and for 
other purposes, as amended.
  The Clerk read as follows:

                               H.R. 1183

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Fastener Quality Act 
     Amendments Act of 1999''.

     SEC. 2. FINDINGS AND PURPOSE.

       Section 2 of the Fastener Quality Act (15 U.S.C. 5401) is 
     amended to read as follows:

     ``SEC. 2. FINDINGS.

       ``The Congress finds that--
       ``(1) the United States fastener industry is a significant 
     contributor to the global economy, employing thousands of 
     workers in hundreds of communities;
       ``(2) the American economy uses billions of fasteners each 
     year;
       ``(3) state-of-the-art manufacturing and improved quality 
     assurance systems have dramatically improved fastener 
     quality, so virtually all fasteners sold in commerce meet or 
     exceed the consensus standards for the uses to which they are 
     applied;
       ``(4) a small number of mismarked, misrepresented, and 
     counterfeit fasteners do enter commerce in the United States; 
     and
       ``(5) multiple criteria for the identification of fasteners 
     exist, including grade identification markings and 
     manufacturer's insignia, to enable purchasers and users of 
     fasteners to accurately evaluate the characteristics of 
     individual fasteners.''.

     SEC. 3. DEFINITIONS.

       Section 3 of the Fastener Quality Act (15 U.S.C. 5402) is 
     amended to read as follows:

     ``SEC. 3. DEFINITIONS.

       ``As used in this Act, the term--
       ``(1) `accredited laboratory' means a fastener testing 
     facility used to perform end-of-line testing required by a 
     consensus standard or standards to verify that a lot of 
     fasteners conforms to the grade identification marking called 
     for in the consensus standard or standards to which the lot 
     of fasteners has been manufactured, and which--
       ``(A) meets the requirements of ISO/IEC Guide 25 (or 
     another document approved by the Director under section 
     10(c)), including revisions from time to time; and
       ``(B) has been accredited by a laboratory accreditation 
     body that meets the requirements of ISO/IEC Guide 58 (or 
     another document approved by the Director under section 
     10(d)), including revisions from time to time;
       ``(2) `consensus standard' means the provisions of a 
     document that describes fastener characteristics published by 
     a consensus standards organization or a Federal agency, and 
     does not include a proprietary standard;
       ``(3) `consensus standards organization' means the American 
     Society for Testing and Materials, the American National 
     Standards Institute, the American Society of Mechanical 
     Engineers, the Society of Automotive Engineers, the 
     International Organization for Standardization, any other 
     organization identified as a United States consensus 
     standards organization or a foreign and international 
     consensus standards organization in the Federal Register at 
     61 Fed. Reg. 50582-83 (September 26, 1996), and any successor 
     organizations thereto;
       ``(4) `Director' means the Director of the National 
     Institute of Standards and Technology;
       ``(5) `distributor' means a person who purchases fasteners 
     for the purpose of reselling them at wholesale to 
     unaffiliated persons within the United States (an original 
     equipment manufacturer and its dealers shall be considered 
     affiliated persons for purposes of this Act);
       ``(6) `fastener' means a metallic screw, nut, bolt, or stud 
     having internal or external threads, with a nominal diameter 
     of 6 millimeters or greater, in the case of such items 
     described in metric terms, or \1/4\ inch or greater, in the 
     case of such items described in terms of the English system 
     of measurement, or a load-indicating washer, that is through-
     hardened or represented as meeting a consensus standard that 
     calls for through-hardening, and that is grade identification 
     marked or represented as meeting a consensus standard that 
     requires grade identification marking, except that such term 
     does not include any screw, nut, bolt, stud, or load-
     indicating washer that is--
       ``(A) part of an assembly;
       ``(B) a part that is ordered for use as a spare, 
     substitute, service, or replacement part, unless that part is 
     in a package containing more than 75 of any such part at the 
     time of sale, or a part that is contained in an assembly kit;
       ``(C) produced and marked as ASTM A 307 Grade A, or a 
     successor standard thereto;
       ``(D) produced in accordance with ASTM F 432, or a 
     successor standard thereto;
       ``(E) specifically manufactured for use on an aircraft if 
     the quality and suitability of those fasteners for that use 
     has been approved--
       ``(i) by the Federal Aviation Administration; or
       ``(ii) by a foreign airworthiness authority as described in 
     part 21.29, 21.500, 21.502, or

[[Page H2936]]

     21.617 of title 14 of the Code of Federal Regulations;
       ``(F) manufactured in accordance with a fastener quality 
     assurance system; or
       ``(G) manufactured to a proprietary standard, whether or 
     not such proprietary standard directly or indirectly 
     references a consensus standard or any portion thereof;
       ``(7) `fastener quality assurance system' means--
       ``(A) a system that meets the requirements, including 
     revisions from time to time, of--
       ``(i) International Organization for Standardization (ISO) 
     Standard 9000, 9001, 9002, or TS16949;
       ``(ii) Quality System (QS) 9000 Standard;
       ``(iii) Verband der Automobilindustrie e. V. (VDA) 6.1 
     Standard; or
       ``(iv) Aerospace Basic Quality System Standard AS9000; or
       ``(B) any fastener manufacturing system--
       ``(i) that has as a stated goal the prevention of defects 
     through continuous improvement;
       ``(ii) that seeks to attain the goal stated in clause (i) 
     by incorporating--

       ``(I) advanced quality planning;
       ``(II) monitoring and control of the manufacturing process;
       ``(III) product verification embodied in a comprehensive 
     written control plan for product and process characteristics, 
     and process controls (including process influence factors and 
     statistical process control), tests, and measurement systems 
     to be used in production; and
       ``(IV) the creation, maintenance, and retention of 
     electronic, photographic, or paper records required by the 
     control plan regarding the inspections, tests, and 
     measurements performed pursuant to the control plan; and

       ``(iii) that--

       ``(I) is subject to certification in accordance with the 
     requirements of ISO/IEC Guide 62 (or another document 
     approved by the Director under section 10(a)), including 
     revisions from time to time, by a third party who is 
     accredited by an accreditation body in accordance with the 
     requirements of ISO/IEC Guide 61 (or another document 
     approved by the Director under section 10(b)), including 
     revisions from time to time; or
       ``(II) undergoes regular or random evaluation and 
     assessment by the end user or end users of the screws, nuts, 
     bolts, studs, or load-indicating washers produced under such 
     fastener manufacturing system to ensure that such system 
     meets the requirements of clauses (i) and (ii);

       ``(8) `grade identification marking' means any grade-mark 
     or property class symbol appearing on a fastener purporting 
     to indicate that the lot of fasteners conforms to a specific 
     consensus standard, but such term does not include a 
     manufacturer's insignia or part number;
       ``(9) `importer' means a distributor located within the 
     United States who contracts for the initial purchase of 
     fasteners manufactured outside the United States;
       ``(10) `lot' means a quantity of fasteners of one part 
     number fabricated by the same production process from the 
     same coil or heat number of metal as provided by the metal 
     manufacturer;
       ``(11) `manufacturer' means a person who fabricates 
     fasteners for sale in commerce;
       ``(12) `proprietary standard' means the provisions of a 
     document that describes characteristics of a screw, nut, 
     bolt, stud, or load-indicating washer and is issued by a 
     person who--
       ``(A) uses screws, nuts, bolts, studs, or load-indicating 
     washers in the manufacture, assembly, or servicing of its 
     products; and
       ``(B) with respect to such screws, nuts, bolts, studs, or 
     washers, is a developer and issuer of descriptions that have 
     characteristics similar to consensus standards and that bear 
     such user's identification;
       ``(13) `record of conformance' means a record or records 
     for each lot of fasteners sold or offered for sale that 
     contains--
       ``(A) the name and address of the manufacturer;
       ``(B) a description of the type of fastener;
       ``(C) the lot number;
       ``(D) the nominal dimensions of the fastener (including 
     diameter and length of bolts or screws), thread form, and 
     class of fit;
       ``(E) the consensus standard or specifications to which the 
     lot of fasteners has been manufactured, including the date, 
     number, revision, and other information sufficient to 
     identify the particular consensus standard or specifications 
     being referenced;
       ``(F) the chemistry and grade of material;
       ``(G) the coating material and characteristics and the 
     applicable consensus standard or specifications for such 
     coating; and
       ``(H) the results or a summary of results of any tests 
     performed for the purpose of verifying that a lot of 
     fasteners conforms to its grade identification marking or to 
     the grade identification marking the lot of fasteners is 
     represented to meet;
       ``(14) `represent' means to describe one or more of a 
     fastener's purported characteristics in a document or 
     statement that is transmitted to a purchaser through any 
     medium;
       ``(15) `Secretary' means the Secretary of Commerce;
       ``(16) `specifications' means the required characteristics 
     identified in the contractual agreement with the manufacturer 
     or to which a fastener is otherwise produced, except that the 
     term does not include proprietary standards; and
       ``(17) `through-harden' means heating above the 
     transformation temperature followed by quenching and 
     tempering for the purpose of achieving uniform hardness.''.

     SEC. 4. SALE OF FASTENERS.

       (a) Amendment.--Sections 5 through 7 of the Fastener 
     Quality Act (15 U.S.C. 5404-6) are repealed, and the 
     following new section is inserted after section 3 of such 
     Act:

     ``SEC. 4. SALE OF FASTENERS.

       ``(a) General Rule.--It shall be unlawful for a 
     manufacturer or distributor, in conjunction with the sale or 
     offer for sale of fasteners from a single lot, to knowingly 
     misrepresent or falsify--
       ``(1) the record of conformance for the lot of fasteners;
       ``(2) the identification, characteristics, properties, 
     mechanical or performance marks, chemistry, or strength of 
     the lot of fasteners; or
       ``(3) the manufacturer's insignia.
       ``(b) Representations.--A direct or indirect reference to a 
     consensus standard to represent that a fastener conforms to 
     particular requirements of the consensus standard shall not 
     be construed as a representation that the fastener meets all 
     the requirements of the consensus standard.
       ``(c) Specifications.--A direct or indirect contractual 
     reference to a consensus standard for the purpose of 
     identifying particular requirements of the consensus standard 
     that serve as specifications shall not be construed to 
     require that the fastener meet all the requirements of the 
     consensus standard.
       ``(d) Use of Accredited Laboratories.--In the case of 
     fasteners manufactured solely to a consensus standard or 
     standards, end-of-line testing required by the consensus 
     standard or standards, if any, for the purpose of verifying 
     that a lot of fasteners conforms with the grade 
     identification marking called for in the consensus standard 
     or standards to which the lot of fasteners has been 
     manufactured shall be conducted by an accredited 
     laboratory.''.
       (b) Effective Date.--Subsection (d) of section 4 of the 
     Fastener Quality Act, as added by subsection (a) of this 
     section, shall take effect 2 years after the date of 
     enactment of this Act.

     SEC. 5. MANUFACTURERS' INSIGNIAS.

       Section 8 of the Fastener Quality Act (15 U.S.C. 5407) is 
     redesignated as section 5 and is amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) General Rule.--Unless the specifications provide 
     otherwise, fasteners that are required by the applicable 
     consensus standard or standards to bear an insignia 
     identifying their manufacturer shall not be offered for sale 
     or sold in commerce unless--
       ``(1) the fasteners bear such insignia; and
       ``(2) the manufacturer has complied with the insignia 
     recordation requirements established under subsection (b).''; 
     and
       (2) in subsection (b), by striking ``and private label'' 
     and all that follows and inserting ``described in subsection 
     (a).''.

     SEC. 6. REMEDIES AND PENALTIES.

       Section 9 of the Fastener Quality Act (15 U.S.C. 5408) is 
     redesignated as section 6 and is amended--
       (1) in subsection (b)(3), by striking ``of this section'' 
     and inserting ``of this subsection'';
       (2) in subsection (b)(4), by inserting ``arbitrate,'' after 
     ``Secretary may''; and
       (3) in subsection (d)--
       (A) by inserting ``(1)'' after ``Enforcement.--''; and
       (B) by adding at the end the following new paragraph:
       ``(2) The Secretary shall establish and maintain a hotline 
     system to facilitate the reporting of alleged violations of 
     this Act, and the Secretary shall evaluate allegations 
     reported through that system and report any credible 
     allegations to the Attorney General.''.

     SEC. 7. RECORDKEEPING REQUIREMENTS.

       Section 10 of the Fastener Quality Act (15 U.S.C. 5409) is 
     redesignated as section 7 and is amended by striking 
     subsections (a) and (b) and inserting the following:
       ``Manufacturers and importers shall retain the record of 
     conformance for fasteners for 5 years, on paper or in 
     photographic or electronic format in a manner that allows for 
     verification of authenticity. Upon request of a distributor 
     who has purchased a fastener, or a person who has purchased a 
     fastener for use in the production of a commercial product, 
     the manufacturer or importer of the fastener shall make 
     available information in the record of conformance to the 
     requester.''.

     SEC. 8. RELATIONSHIP TO STATE LAWS.

       Section 11 of the Fastener Quality Act (15 U.S.C. 5410) is 
     redesignated as section 8.

     SEC. 9. CONSTRUCTION.

       Section 12 of the Fastener Quality Act (15 U.S.C. 5411) is 
     redesignated as section 9 and is amended by striking ``in 
     effect on the date of enactment of this Act''.

     SEC. 10. CERTIFICATION AND ACCREDITATION.

       Sections 13 and 15 of the Fastener Quality Act (15 U.S.C. 
     5412 and 14) are repealed, and the following new section is 
     inserted at the end of that Act:

     ``SEC. 10. CERTIFICATION AND ACCREDITATION.

       ``(a) Certification.--A person publishing a document 
     setting forth guidance or requirements for the certification 
     of manufacturing systems as fastener quality assurance 
     systems by an accredited third party may petition the 
     Director to approve such document for use as described in 
     section 3(7)(B)(iii)(I). The Director shall act upon a 
     petition within 180 days after its filing, and shall approve 
     such petition if the document provides equal

[[Page H2937]]

     or greater rigor and reliability as compared to ISO/IEC Guide 
     62.
       ``(b) Accreditation.--A person publishing a document 
     setting forth guidance or requirements for the approval of 
     accreditation bodies to accredit third parties described in 
     subsection (a) may petition the Director to approve such 
     document for use as described in section 3(7)(B)(iii)(I). The 
     Director shall act upon a petition within 180 days after its 
     filing, and shall approve such petition if the document 
     provides equal or greater rigor and reliability as compared 
     to ISO/IEC Guide 61.
       ``(c) Laboratory Accreditation.--A person publishing a 
     document setting forth guidance or requirements for the 
     accreditation of laboratories may petition the Director to 
     approve such document for use as described in section 
     3(1)(A). The Director shall act upon a petition within 180 
     days after its filing, and shall approve such petition if the 
     document provides equal or greater rigor and reliability as 
     compared to ISO/IEC Guide 25.
       ``(d) Approval of Accreditation Bodies.--A person 
     publishing a document setting forth guidance or requirements 
     for the approval of accreditation bodies to accredit 
     laboratories may petition the Director to approve such 
     document for use as described in section 3(1)(B). The 
     Director shall act upon a petition within 180 days after its 
     filing, and shall approve such petition if the document 
     provides equal or greater rigor and reliability as compared 
     to ISO/IEC Guide 58. In addition to any other voluntary 
     laboratory accreditation programs that may be established by 
     private sector persons, the Director shall establish a 
     National Voluntary Laboratory Accreditation Program, for the 
     accreditation of laboratories as described in section 
     3(1)(B), that meets the requirements of ISO/IEC Guide 58 (or 
     another document approved by the Director under this 
     subsection), including revisions from time to time.
       ``(e) Affirmation.--(1) An accreditation body accrediting 
     third parties who certify manufacturing systems as fastener 
     quality assurance systems as described in section 
     3(7)(B)(iii)(I) shall affirm to the Director that it meets 
     the requirements of ISO/IEC Guide 61 (or another document 
     approved by the Director under subsection (b)), including 
     revisions from time to time.
       ``(2) An accreditation body accrediting laboratories as 
     described in section 3(1)(B) shall affirm to the Director 
     that it meets the requirements of ISO/IEC Guide 58 (or 
     another document approved by the Director under subsection 
     (d)), including revisions from time to time.
       ``(3) An affirmation required under paragraph (1) or (2) 
     shall take the form of a self-declaration that the 
     accreditation body meets the requirements of the applicable 
     Guide, signed by an authorized representative of the 
     accreditation body, without requirement for accompanying 
     documentation. Any such affirmation shall be considered to be 
     a continuous affirmation that the accreditation body meets 
     the requirements of the applicable Guide, unless and until 
     the affirmation is withdrawn by the accreditation body.''.

     SEC. 11. APPLICABILITY.

       At the end of the Fastener Quality Act, insert the 
     following new section:

     ``SEC. 11. APPLICABILITY.

       ``The requirements of this Act shall be applicable only to 
     fasteners fabricated 180 days or more after the date of the 
     enactment of the Fastener Quality Act Amendments Act of 1999, 
     except that if a manufacturer or distributor of fasteners 
     fabricated before that date prepares a record of conformance 
     for such fasteners, representations about such fasteners 
     shall be subject to the requirements of this Act.''.

     SEC. 12. COMPTROLLER GENERAL REPORT.

       Not later than 2 years after the date of the enactment of 
     this Act, the Comptroller General shall transmit to the 
     Congress a report describing any changes in industry practice 
     resulting from or apparently resulting from the enactment of 
     section 3(6)(B) of the Fastener Quality Act, as added by 
     section 3 of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Wisconsin (Mr. Sensenbrenner) and the gentleman from Colorado (Mr. 
Udall) each will control 20 minutes.
  The Chair recognizes the gentleman from Wisconsin (Mr. 
Sensenbrenner).


                             General Leave

  Mr. SENSENBRENNER. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks on the bill, H.R. 1183.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Wisconsin?
  There was no objection.
  Mr. SENNSENBRENNER. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, the Fastener Quality Act was signed into law in 1990. It 
requires all threaded metallic fasteners of one-quarter inch diameter 
or greater that reference a consensus standard to be documented by a 
National Institute of Standards and Technology certified laboratory.
  Although the legislation has been on the books for over 8 years, 
concerns over the bill's impact on the economy have delayed NIST's 
implementation of final regulations. NIST's regulations are slated to 
go into effect on June 24, 1999.
  When enacted in 1990, the act was supposed to cover only high-
strength critical application fasteners vital to the public safety. Yet 
all these fasteners represent only 1 percent of fasteners used in the 
United States. However, if the existing Fastener Quality Act 
regulations are implemented next month, even garden hose fasteners 
produced by Sheboygan Screw Products, Incorporated, in my home district 
would be forced to comply with the burdensome act.
  I am not sure how faulty garden hose fasteners may pose a significant 
threat to public safety, but I am sure that regulating them will be 
expensive.
  The Fastener Quality Act in its current form is unworkable, and 
implementing its regulations would cause great disruption to the United 
States economy without providing any significant public safety benefit.
  Garden hose fasteners are only one example of the excesses associated 
with the law. A recent study conducted by the Department of Commerce 
concludes that significant improvements in fastener manufacturing and 
quality control have virtually eliminated the threat of substandard 
fasteners. These changes, however, are not reflected in the current 
law.
  Mr. Speaker, H.R. 1183 continues the commitment of the Committee on 
Science to streamlining the outdated and unnecessary provisions of the 
act in a manner that recognizes the positive development of quality 
products in the fastener industry; focuses on assuring the public 
safety; and imposes the least possible additional burdens on an already 
regulated industry.
  Specifically, provisions of H.R. 1183, first, fight fraud by 
clarifying that anyone intentionally misrepresenting the strength or 
other characteristic of a fastener is subject to both criminal 
penalties and civil remedies.
  Second, ensure traceability by requiring virtually all fasteners sold 
in commerce to be labeled with the registered trademark of their 
manufacturer.
  Third, reduce some of the burdensome paperwork requirements of the 
act by allowing documents to be stored and transmitted in electronic 
format.
  Fourth, recognize industry's growing utilization of dramatically 
improved quality assurance in management systems by allowing fasteners 
manufactured in accordance with certain quality systems to be deemed in 
compliance with the requirements of the act.
  The provisions of H.R. 1183 were crafted in consultation with the 
Committee on Commerce and the Committee on the Judiciary, as well as 
the Department of Commerce.
  In addition, I wish to thank the chairwoman of the Subcommittee on 
Technology, the gentlewoman from Maryland (Mrs. Morella), and the 
ranking member of the subcommittee, the gentleman from Michigan (Mr. 
Barcia), for their work on the legislation.
  Finally, Mr. Speaker, I wish to again point out that the pending 
Fastener Quality Act regulations are slated to be implemented next 
month. With that in mind, I urge all of my colleagues to support the 
swift passage of H.R. 1183 and hope that the other body and the White 
House will follow our lead and act expeditiously in the coming weeks.
  Mr. Speaker, I reserve the balance of my time.
  Mr. UDALL of Colorado. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in support of H.R. 1183, the Fastener Quality Act 
Amendments Act of 1999.
  The gentleman from Wisconsin (Mr. Sensenbrenner) has already 
summarized the provisions of the legislation. I will only add that H.R. 
1183 is the result of bipartisan efforts and that this bill represents 
the hard work of the gentleman from Wisconsin (Mr. Sensenbrenner) and 
the gentleman from California (Mr. Brown), the ranking member of the 
Committee on Science, and the gentleman from Virginia (Mr. Bliley) and 
the gentleman from Michigan (Mr. Dingell), the ranking member on the 
Committee on Commerce.
  Further, as always, it has been a pleasure working with the 
gentlewoman from Maryland (Mrs. Morella), my chairwoman on the 
Subcommittee on Technology.

[[Page H2938]]

  While I am new to this committee and this issue, I have had a 
particular interest in this bill because it so directly relates to the 
work of the National Institute of Standards and Technology, NIST, an 
agency that has important facilities in my district.
  H.R. 1183 remains true to the intent of the original Fastener Quality 
Act passed 10 years ago. H.R. 1183 maintains the necessary standards to 
ensure the quality of high-strength fasteners, while recognizing 
advances in manufacturing techniques, such as quality assurance 
systems.
  Moreover, it would not have been possible to craft this legislation 
without the close cooperation of industry and labor. I want to 
specifically mention the Automotive Industry Fastener Manufacturers and 
affected labor groups for their frank and candid discussions with us, 
as well as their willingness to compromise.
  Ultimately, it was this prevailing sense of cooperation that allowed 
us to develop this legislation.
  In closing, I would urge my colleagues to support 1183.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SENSENBRENNER. Mr. Speaker, I yield 4 minutes to the gentlewoman 
from Maryland (Mrs. Morella), the Chairwoman of the Subcommittee on 
Technology.
  Mrs. MORELLA. Mr. Speaker, I thank the gentleman from Wisconsin (Mr. 
Sensenbrenner) for yielding me this time. I also thank him for his 
leadership in bringing this very important piece of legislation to the 
floor, as well as the ranking member, the gentleman from California 
(Mr. Brown), and to the ranking member of the Subcommittee on 
Technology, the gentleman from Michigan (Mr. Barcia), as well as the 
gentleman from Colorado (Mr. Udall) and other Members of the 
Subcommittee on Technology, the gentleman from Minnesota (Mr. 
Gutknecht), as well as Members of the Committee on Science and all its 
supporters.
  As chair of the Committee on Science Subcommittee on Technology, we 
have held three hearings in the last 14 months to discuss the need for 
the existing Fastener Quality Act, as well as to consider any changes 
to the act that might be warranted.

                              {time}  1430

  At the hearings we received testimony from a variety of fastener 
manufacturers, distributors, and consumers. There is a clear consensus 
that two factors have dramatically changed since passage of the 
Fastener Quality Act in 1990. First, the implementation of modern 
manufacturing quality procedures have dramatically increased the 
quality of fasteners used in U.S. commerce. In today's business place, 
heavy volume fastener users like automotive, aerospace, and heavy 
equipment manufacturers, they invent, they demand, and they ensure 
quality from their suppliers. They have a clear economic incentive to 
do so.
  Secondly, the implementation of more stringent government procurement 
practices have eliminated the military's problems with substandard or 
mismarked fasteners. In fact, the Defense Industrial Supply Center has 
checked military inventories over the past 4 years and found no 
evidence of faulty fasteners at all.
  Recognizing these important developments, H.R. 1183 is intended to 
modernize the existing 9-year-old act to better reflect the practices 
of today's fastener industry and to ensure that the flow of the 200 
billion fasteners used annually in our Nation's chain of commerce is 
not unnecessarily disrupted.
  The legislation that we are considering also creates a level playing 
ground for all fastener manufacturers, distributors, and consumers. It 
does not drive small manufacturers out of business, nor does it place 
U.S. manufacturers at a competitive disadvantage with their foreign 
competitors.
  As the gentleman from Wisconsin (Chairman Sensenbrenner) mentioned, 
Fastener Quality Act regulations are slated to take effect next month, 
on June 24. The proposed regulations significantly exceed the original 
congressional intent of the 1990 Act, which was to cover about 1 
percent of fasteners used in the U.S. for critical applications.
  Although it is difficult to determine the exact percentage of 
fasteners that would be covered by the additional regulations, industry 
estimates it to be at least 50 percent, possibly as much as 70 percent.
  The Department of Commerce recently released a study that concluded 
current fastener quality presented little or no threat to public 
safety, and that changes made since 1990 in the fastener industry to 
improve the quality of fasteners have been significant.
  With the Department's study in mind, it simply does not make sense to 
enact additional burdensome and costly fastener regulations. The 
Automobile Manufacturers Association, for example, projects the cost of 
compliance for the motor vehicle industry alone to be greater than $320 
million a year, without necessarily enhancing vehicle safety.
  So, Mr. Speaker, I am pleased that H.R. 1183 takes steps to modify 
the FQA in a way that focuses on assuring public safety without 
imposing costly new regulations.
  H.R. 1183 was favorably reported by the Committee on Science on March 
25 of this year, and it is bipartisan. It has been endorsed by many 
industry associations, including the National Association of 
Manufacturers, the U.S. Chamber of Commerce, and I strongly urge all my 
colleagues to support this commonsense legislation.
  Mr. SENSENBRENNER. Mr. Speaker, I yield 2 minutes to the gentleman 
from Minnesota (Mr. Gutknecht).
  Mr. GUTKNECHT. Mr. Speaker, in 1990 Congress enacted the Fastener 
Quality Act to protect Americans from foreign manufacturers who were 
dumping substandard fasteners in the U.S. market. The Fastener Quality 
Act required all threaded, metallic, through-hardened fasteners of one-
quarter inch in diameter or greater to be tested or documented by a 
laboratory certified by the National Institute of Standards and 
Technology, otherwise known as NIST. In short, Mr. Speaker, this was a 
$20 solution to a $5 problem.
  Earlier this year, the Department of Commerce submitted a report to 
Congress recommending that the Fastener Quality Act be amended to, 
number one, limit coverage under the act to only high-strength 
fasteners; number two, deem fasteners compliant if they are 
manufactured by a NIST-approved facility; number three, reduce 
paperwork burdens; and finally, address fraud in commercial 
transactions involving fasteners.
  NIST even testified in front of our committee that the agency did not 
want to enforce the Fastener Quality Act as it was written because it 
was ``overly burdensome.'' H.R. 1183 amends the Fastener Quality Act of 
1990 to strengthen protections against the sale of mismarked, 
misrepresented, or counterfeit fasteners.
  Let me make it very clear, Mr. Speaker, fraudulent marketing of 
fasteners is still a fraud. H.R. 1183 reduces the paperwork burdens of 
the Fastener Quality Act by allowing documents to be stored and 
transmitted by an electronic format.
  Mr. Speaker, H.R. 1183 is the right solution to the real problem. I 
hope my colleagues will join me in supporting this important 
legislation.
  Mr. SENSENBRENNER. Mr. Speaker, I yield 2 minutes to the gentlewoman 
from Illinois (Mrs. Biggert).
  Mrs. BIGGERT. Mr. Speaker, I thank the gentleman for yielding me the 
time.
  Mr. Speaker, most Americans, myself included, do not completely 
realize the importance of fasteners in our everyday lives. Fasteners 
are the nuts, bolts, and screws that hold together everything from 
furniture and cars to construction equipment, bridges, and buildings.
  I became more aware of the importance of these fasteners just last 
weekend when I had to assemble a piece of furniture for my home. 
Without nuts or bolts, the entertainment center I was assembling would 
have lacked the strength and stability to withstand the weight of my 
television.
  Mr. Speaker, during the past decade the manufacturers and 
distributors of fasteners have taken significant steps to ensure the 
quality of their products. With the implementation of modern 
manufacturing quality procedures and improved procurement practices, 
the American fastener industry is a global quality leader.
  Approximately 5,000 of the men and women who help make these 
fasteners

[[Page H2939]]

are residents of the State of Illinois. The Chicagoland area has the 
highest concentration of fastener manufacturers and distributors in the 
Nation, and is home to the largest U.S. producer of fasteners. These 
people continue to work tirelessly to make a quality product on which 
the world's builders and manufacturers can rely.
  H.R. 1183 recognizes the efforts of these American companies and 
their workers. It prevents burdensome, costly, and duplicate 
regulations from being placed on the fastener industry, and holds 
companies accountable for the quality of their work.
  H.R. 1183 changes the focus of the law from government regulation and 
bureaucracy to industry accountability. I ask my colleagues to support 
it.
  Mr. SENSENBRENNER. Mr. Speaker, I yield 2\1/2\ minutes to the 
gentleman from Illinois (Mr. Manzullo).
  Mr. MANZULLO. Mr. Speaker, I rise in support of H.R. 1183, the 
Fastener Quality Amendments Act of 1999. In 1990, Congress enacted the 
Fastener Quality Act in the belief that public safety was at risk 
because of the sale of faulty and mismarked fasteners in this country.
  In its desire to ensure quality, Congress ended up creating a 
bureaucratic and regulatory nightmare that threatened the existence of 
smaller fastener manufacturing companies. The act proved rigid and 
obsolete as quality assurance technology within the industry advanced 
quickly.
  In the district that I represent, we have over 80 fastener companies, 
the Pearson family, the Goellner family, all the way to the larger 
fastener companies, such as Elco-Textron. There are employers that 
employ as many as 1,800 people down to those that employ as few as 12, 
and every single one of these companies supports passage of H.R. 1183.
  These manufacturers understand that the FQA in its current form 
imposes redundant testing requirements and regulations that simply do 
not work. I am pleased to be able to inform these hard-working 
Americans that H.R. 1183 addresses their concerns by creating a better 
system for identifying, reporting, and prosecuting the knowing 
misrepresentation of a mismarked fastener.
  The bill targets the true essence of the problem; that is, it attacks 
fastener fraud, instead of trying to regulate quality. Any fastener 
maker worth its reputation will ensure the quality of its product, or 
else it will not be in business very long.
  Many businesses wait anxiously for January 1 of 2000 to see the 
effects of the Y2K bug, but to the American fastener industry, the 
dreaded date comes much sooner, next month in fact, and its impact will 
not be a mystery. For on June 24, unless Congress passes H.R. 1183 and 
the President signs it into law, the Fastener Quality Act will take 
effect. This will set in motion the process of fastener companies going 
out of business, and the dire consequences that that in turn will have 
on industries dependent on the production of fasteners.
  I am pleased to support H.R. 1183, and urge its speedy passage.
  Mr. DINGELL. Mr. Speaker, I support H.R. 1183, the Fastener Quality 
Act Amendments Act of 1999. The Fastener Quality Act, which would be 
amended by the bill before us today, was enacted in 1990 and originated 
in the Committee on Commerce. It resulted from an 18-month 
investigation conducted by the Committee's Subcommittee on Oversight 
and Investigations. This investigation uncovered deaths attributable to 
industrial and aircraft accidents in which fastener failures occurred; 
the use of substandard fasteners with false certificates in Army Corps 
of Engineer projects; defective fasteners in Army vehicles and in 
critical areas of Navy ships; and the falsification of test results for 
fasteners used in spacecraft and aircraft.
  For the last nine years, the National Institute of Standards and 
Technology (NIST) at the Department of Commerce has attempted, without 
success, to issue regulations implementing the Fastener Quality Act. 
Last year, legislation was enacted which imposed yet another delay in 
the issuance of fastener regulations. Under the law passed last year, 
Congress has until June 23rd of this year to enact amendments to the 
Fastener Quality Act, or NIST is to go ahead and issue its regulations 
implementing the current law.
  Why does the Fastener Quality Act need to be amended? The simple fact 
is that manufacturing in the United States has undergone the same 
technological revolution over the last 10 years that has occurred in 
virtually every other sector of American life. Manufacturing operations 
are now largely computer-controlled. Many of these systems can measure 
the conformity of each fastener being manufactured, and thereby reduce 
the need for end-of-the-line testing of a sample from each lot of 
fasteners being produced.
  Similarly, it was never the intent of the law that fasteners 
manufactured to a proprietary standard be covered by the Act, since 
total responsibility for fasteners produced to a proprietary standard 
rests with the one setting that standard. Nevertheless, NIST's proposed 
regulations cover proprietary fasteners, subjecting manufacturers and 
consumers to unnecessary expense and costs. This bill exempts fasteners 
produced to proprietary standards from the requirements of the Fastener 
Quality Act.
  The bill before us today is the product of an agreement involving the 
Department of Commerce and the fastener industry, as well as 
representatives of major industries that use fasteners. Not only does 
this legislation account for manufacturing innovations during the past 
10 years, it also recognizes that problems in the fastener industry 
persist.
  An article in the April 5, 1999, edition of a publication called 
Engineering News illustrates why the Fastener Quality Act is still very 
much needed. This article cites a Department of Commerce consultant who 
claims counterfeit fasteners were used in the 700-foot tall hoist that 
broke free from the scaffold of an office building under construction 
in Times Square last July, killing an elderly woman and injuring 12 
others. While it is too soon to tell whether counterfeit fasteners 
caused or contributed to this terrible accident, David Sharp, a 
consultant to the Commerce Department's New York Office of Export 
Enforcement, was quoted as saying there is ``very clear evidence'' that 
mismarked fasteners were used in the scaffold and hoist. Mr. Sharp also 
claims that initial findings indicate the use of inferior steel in some 
of the fasteners involved in this accident.

  Clearly, the Fastener Quality Act remains important today, and the 
legislation we are considering continues the important elements of the 
original Act. Fastener manufacturers and distributors are prohibited 
from knowingly misrepresenting or falsifying fastener characteristics, 
properties, mechanical or performance marks, chemistry, strength, 
manufacturer's insignia, or the record of conformance concerning a lot 
of fasteners. The record of conformance, which a manufacturer or 
importer of foreign-made fastener is to make available upon request to 
end users or purchasers, must also contain a summary of any end-of-the-
line testing required by a consensus standard to which the fastener is 
produced.
  Records of conformance are required to be held for five years. 
Fasteners manufactured using quality assurance systems approved by 
accredited third parties would be exempt from these requirements of the 
Act. An accrediting body is required to provide notice to NIST that it 
meets the requirements of the published guide with which it purports to 
comply. All the criminal and civil penalties of current law are 
continued without charge.
  Mr. Speaker, the health and safety of the American public depends on 
fasteners that are able to do the job they are represented to perform. 
The Fastener Quality Act is a very important tool in achieving this 
objective, and the amendments before us today should reduce the 
regulatory burden on industry while maintaining essential protections. 
I urge my colleagues to vote for this legislation.
  Mr. BLILEY. Mr. Speaker, I rise today in support of H.R. 1183, the 
Fastener Quality Act Amendments Act of 1999. As you know, this is a 
measure over which the Committee on Commerce and the Committee on 
Science share jurisdiction, and I am pleased to lend my support to this 
effort.
  The Commerce Committee's interest in this matter goes back to the 
100th Congress, at which time the Committee undertook an investigation 
of counterfeit and substandard fasteners. The investigation resulted in 
the issuance of a unanimously approved Subcommittee report entitled 
``The Threat from Substandard Fasteners; Is America Losing Its Grip?'' 
which ultimately led to the approval by our respective committees of 
the Fastener Quality Act of 1990.
  In the years since the enactment of the original Fastener Quality 
Act, we have had to revisit the statute on a number of occasions 
because the statutory requirements resulted in real-world outcomes that 
significantly increased the burden on legitimate businesses, had the 
potential to reduce the supply and increase the cost of critical use 
fasteners, and in the end would do very little to protect the public 
from substandard screws, nuts, and bolts. Most recently, the Congress 
enacted the Fastener Quality Act Amendments (P.L. 105-234) which 
exempted certain fasteners regulated by the Federal Aviation 
Administration from coverage under the Act. More importantly, however, 
the amendments delayed implementation of the rules implementing the Act

[[Page H2940]]

until the Secretary of Commerce reported to the Congress regarding the 
applicability of the original Act to modern day manufacturing practices 
and any recommended statutory changes.
  On February 24, 1999, the Secretary of Commerce submitted his report 
to Congress, making several recommendations regarding the class of 
fasteners that should be covered by the Act, the use of quality 
management systems in the manufacturing process as a substitute for 
lot-testing of fasteners, and the reduction of paperwork burdens. Using 
these recommendations as a framework for discussion, the Science 
Committee, Commerce Committee, and the affected industries worked to 
craft the rewrite of the Fastener Quality Act which is contained in 
H.R. 1183.

  I particularly want to commend Chairman Sensenbrenner for his 
willingness to work with the Commerce Committee on this issue. He and 
his staff openly solicited our input, and the product before the House 
today reflects that effort. In particular, I want to commend him for 
his willingness to listen and accommodate the concerns of the Ranking 
Member of the Commerce Committee, the gentleman from Michigan, Mr. 
Dingell. As you know, Mr. Dingell was the original author of the 
Fastener Quality Act, and had a keen interest in these amendments.
  Given our involvement in the process and the willingness of the 
Science Committee to address the concerns of members of the Commerce 
Committee, I did not exercise the Committee's right to a referral. By 
agreeing to waive its consideration of the bill, however, the Commerce 
Committee does not waive its jurisdiction over H.R. 1183. Chairman 
Sensenbrenner and I engaged in an exchange of letters of this matter, 
and I submit them for the Record.
  Mr. Speaker, H.R. 1183 makes badly needed changes to the Fastener 
Quality Act. I wholeheartedly support these amendments, and encourage 
my colleagues on both sides of the aisle to support them as well.

                                         House of Representatives,


                                        Committee on Commerce,

                                   Washington, DC, April 17, 1999.
     Hon. F. James Sensenbrenner, Jr.
     Chairman, Committee on Science, Rayburn House Office 
         Building, Washington, DC.
       Dear Chairman Sensenbrenner: On March 25, 1999, the 
     Committee on Science ordered reported H.R. 1183, the Fastener 
     Quality Act Amendments of 1999, with amendments. As you know, 
     the Committee on Commerce was named as an additional 
     committee of jurisdiction and has had a longstanding interest 
     in the issue of fastener quality and the Fastener Quality Act 
     (15 U.S.C. Sec. 5401 et al.). This interest goes back at 
     least to the 100th Congress, at which time the Committee 
     undertook an investigation of counterfeit and substandard 
     fasteners. This investigation resulted in the issuance of a 
     unanimously approved Subcommittee report--``The Threat from 
     Substandard Fasteners: Is America Losing Its Grip?''--which 
     ultimately led to the approval by our respective committees 
     of the Fastener Quality Act of 1990.
       As you know, the legislation, as amended, significantly 
     restructures the Fastener Quality Act and adopts suggestions 
     from both the Department of Commerce and the affected 
     industries regarding changes in the Act. These changes must 
     be enacted before June 23, 1999, when the rules promulgated 
     by the Department of Commerce would otherwise become 
     effective.
       In light of the upcoming deadline, I recognize your desire 
     to bring this legislation before the House in an expeditious 
     manner. Given our involvement in the process thus far, and 
     your assurance that we will work to address concerns raised 
     by our minority before this legislation is considered by the 
     House, I will not exercise the Committee's right to a 
     referral. By agreeing to waive its consideration of the bill, 
     however, the Commerce Committee does not waive its 
     jurisdiction over H.R. 1183. In addition, the Commerce 
     Committee reserves its authority to seek conferees on any 
     provisions of the bill that are within its jurisdiction 
     during any House-Senate conference that may be convened on 
     this legislation. I ask for your commitment to support any 
     request by the Commerce Committee for conferees on H.R. 1183 
     or similar legislation.
       I request that you include this letter as a part of the 
     Committee's report on H.R. 1183 and as part of the Record 
     during consideration of the legislation on the House floor.
       Thank you for your attention to these matters.
           Sincerely,
                                                       Tom Bliley,
                                                         Chairman.
                                  ____
                                  
                                         House of Representatives,


                                         Committee on Science,

                                   Washington, DC, April 22, 1999.
     Hon. Tom Bliley,
     Chairman, House Committee on Commerce, Rayburn House Office 
         Building, Washington, DC.
       Dear Chairman Bliley: Thank you for your letter of April 
     17, 1999 regarding H.R. 1183, the Fastener Quality Act 
     Amendments of 1999.
       I appreciate your waiving your Committee's right to a 
     referral on this bill so that it can move expeditiously to 
     the floor. I recognize your historic jurisdiction in this 
     area and will support any request you may make to have 
     conferees on H.R. 1183 or similar legislation.
       The exchange of letters between our two committees will be 
     included in the Committee report on H.R. 1183 and will be 
     made part of the floor record.
           Sincerely,
                                       F. James Sensenbrenner, Jr.
                                                         Chairman.

  Mr. EWING. Mr. Speaker, I would like to take this opportunity to 
express my support for this important legislation. As a member of the 
Science Committee I was pleased to support this legislation, which I 
believe will fix the Fastener Quality Act once and for all.
  Since the original Fastener Quality Act was enacted in 1990, 
manufacturers have been faced with costly, counterproductive 
regulations which have not addressed the real issues of reporting and 
monitoring the quality of fasteners.
  This legislation changes the Fastener Quality Act's emphasis from 
federal monitoring of production methods to a focus on the reporting, 
identification, traceability, and prosecution of efforts to sell 
intentionally mismarked fasteners.
  Our main concern should be public safety and I believe this bill will 
address that issue, while eliminating some of the unnecessary 
regulation manufacturers have been faced with.
  Requiring fasteners that are sold to be marked with the registered 
trademark of their manufacturers will help to ensure that only quality 
fasteners are distributed. I also believe that regarding fasteners as 
compliant if they are manufactured at a NIST approved facility will cut 
down significantly on excess paperwork and regulatory red-tape 
manufacturers are currently required to go through.
  Republicans have worked hard since 1994 to eliminate burdensome and 
costly federal regulations imposed on businesses in our country and 
this legislation is another example of our commitment.
  Again, I would like to express my strong support for this legislation 
and I hope that all members will support it.
  Mr. SMITH of Michigan. Mr. Speaker, although the legislation is 
obscure, the story of the FQA holds an important lesson about how 
government can go overboard with regulations. This bill is an example 
of what we're trying to do to repeal costly and ineffective rules.
  About 380 companies in the U.S. manufacture fasteners, employing 
about 44,000 people and ringing up about $7.5 billion in sales 
annually. Fasteners go into many products, including automobiles, 
aircraft, appliances, construction and agriculture machinery, and 
commercial buildings. Americans consume approximately 200 billion 
fasteners every year, 26 billion by the auto industry alone.
  In the late 1980s, there were fears of harm from mismarked, 
substandard and fraudulently sold fasteners, mainly from abroad. 
Congress reacted by passing the FQA an 1990 (before I came to 
Congress). As originally written, it set federal standards for 
fasteners and required that they be tested at federally-certified 
laboratories.
  The FQA has never gone into effect because no implementing 
regulations were written until 1998. Draft regulations had proven 
unworkable and rapid improvements in fasteners made some regulations 
out of date before they could be approved. By the time final 
implementing regulations were adopted last year, many questions had 
been raised about the FQA's regulatory burdens and the need for federal 
standards at all. Congress passed another law last year to delay the 
regulations from taking affect in order to have the Department of 
Commerce evaluate the need for the law.
  In its study, the Department found no real threat to public safety 
from fasteners. At the same time, the regulations would have been 
extremely costly and created a new bureaucracy. The Automobile 
Manufacturers Association, for example, estimated that bureaucratic 
delays and other factors associated with the regulations would have 
cost the auto industry $318 million in the first year alone.
  This bill will replace the law's federal standards with a simpler 
rule: tell the truth. So long as sellers accurately represent a 
fastener's quality, they will comply with the law. Those who 
misrepresent a fastener's quality, however, will be subject to serious 
legal penalties.
  THis story shows both how government writes bad regulations and how 
they can be fixed. Too often, Congress allows itself to propose 
permanent regulatory solutions to temporary problems. The result is 
unnecessary expense. In this case, as in many others, market pressure 
did more to protect consumers than government could. Doing away with 
these rules represents the beginning of what many of us are trying to 
accomplish in reviewing and modifying laws to eliminate unnecessary 
government regulations.
  Mr. STEBENOW. Mr. Speaker, I am a supporter of this legislation and 
appreciate the opportunity to share my thoughts on it with my 
colleagues. I would first like to thank Chairman Sensenbrenner and 
Ranking Member Brown of the Science Committee, as well as Chairman 
Bliley and Ranking Member Dingell of

[[Page H2941]]

the Commerce Committee for their efforts in bringing this bill to the 
floor today. It is the result of extensive talks between members of 
both committees and industry groups, and I believe we have reached a 
very satisfactory conclusion. This measure protects the safety of the 
citizens of this country while not impeding economic development, and 
does so in time to meet the June 1 deadline that was enacted during the 
last Congress.
  For those that are not familiar with this issue, fasteners are nuts, 
bolts, screws used in manufacturing and construction. The fastener 
industry has a major impact on the economy operating 380 major 
manufacturing facilities with 44,000 employees and total U.S. sales of 
$7.5 billion. This activity is strongly tied to the automobile, 
aircraft, applicance, construction, agricultural machinery and 
equipment, and the commercial building industries. For example, more 
than 200 billion fasteners are consumed annually in this country, 26 
billion by the auto industry alone, which has a significant impact in 
my home state of Michigan. Given that the estimated cost to business of 
the Fastener Quality Act of 1999 was $1 billion, it is appropriate that 
the original act has been updated to reflect changes in the fastener 
industry.
  Mr. Speaker, this legislation promotes safety in a common-sense 
manner. It addresses the problems of substantial fasteners, requiring 
testing to be conducted by accredited laboratories and making it 
unlawful for a fastener manufacturer or distributor to knowingly 
misrepresent whether a product meets industry-set quality standards. 
Again, I support this bill and urge my colleagues to the same.
  Mr. UDALL of Colorado. Mr. Speaker, I have no further requests for 
time, and I yield back the balance of my time.
  Mr. SENSENBRENNER. Mr. Speaker, I have no further requests for time, 
and I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Pease). The question is on the motion 
offered by the gentleman from Wisconsin (Mr. Sensenbrenner) that the 
House suspend the rules and pass the bill, H.R. 1183, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________