[Congressional Record (Bound Edition), Volume 154 (2008), Part 2]
[Senate]
[Pages 2391-2409]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. KERRY:
  S. 2658. A bill to amend the Servicemembers Civil Relief Act to 
extend from 90 days to one year the period after release of a member 
from the Armed Forces from active duty during which the member is 
protected from mortgage foreclosure; to the Committee on Veterans' 
Affairs.
  Mr. KERRY. Mr. President, in the Congress and in Washington these 
last years, there has been a tragic disconnect between the words spoken 
about keeping faith with those who wear the uniform of our country, and 
the actions actually taken to make those words count.
  From the tragic conditions at Walter Reed to the backlog of claims at 
the Veterans Administration, there has been a long list of problems 
unaddressed--and of problems that arose because someone, somewhere 
didn't plan ahead to prevent problems for those who sacrifice for all 
of us.
  Today we know from VA estimates that nearly 200,000 veterans are 
homeless on any given night and that nearly 400,000 veterans experience 
homelessness over the course of a year--a national disgrace to consider 
that in the richest country on the planet perhaps one out of every 
three homeless men sleeping in a doorway, alley or box once wore the 
uniform of our country.
  We also know from the Bush administration's own U.S. Labor 
Department, that, for example, in 2006, the unemployment rate for young 
veterans of the wars in Iraq and Afghanistan was 15 percent, more than 
triple the national average back then. We know that too many unemployed 
veterans are National Guard or Reserve troops who were called to duty 
but found when they came home that their old jobs were gone, that 
they'd lost their place in line in the local economy, or that the small 
businesses they'd left behind to serve overseas were in dire straits 
when they came home.
  We know these two challenges--the homeless rates for veterans and the 
unemployment numbers for veterans--demand big solutions, and we are 
working to provide them.
  But we should also know by now that the least we can do is stop these 
problems from becoming worse. We have seen a wave of foreclosures send 
a ripple effect across the economy. By late 2007, 2.5 million mortgages 
were in default--a 40 percent increase from just 2 years earlier. Last 
month, foreclosures in Massachusetts alone were up 128 percent from the 
previous January. In fact, in 2007 alone 1.6 million Americans 
defaulted on their home loans, and as many as 3.5 million more are 
expected to do the same by mid-2010.
  Every U.S. Senator would agree that the thought of our men and women 
in uniform being thrown out of their homes because of mortgage 
foreclosures is miles beyond unacceptable. The question is, in the 
middle of a national housing crisis and a subprime mortgage collapse, 
what can be done--done at a minimum--to ensure that Washington acts to 
shield veterans from becoming the faces of the foreclosure crisis, and 
from making today's Iraq and Afghanistan veterans the faces of 
tomorrows' homeless and jobless populations.
  We know that the soaring and staggering foreclosure statistics are 
directly affecting Americans from all walks of life, and our military 
is not exempt from the pain. The least we can do today is make it clear 
that we will pay some small measure of respect to veterans by helping 
them avoid foreclosure. They need more time and greater flexibility as 
they return to civilian life. The Commission on the National Guard and 
Reserves has urged us to take preventative action. The Commission found 
that the transition from military to civilian life extends well beyond 
the current timelines which forces many service members to focus their 
attention on imminent foreclosure instead of first locating a 
competitive job or addressing any mental or physical health concerns 
that they may be facing.
  That is why today I am introducing commonsense legislation that would 
protect servicemembers and veterans involved in the wars in Iraq and 
Afghanistan by securing a longer grace period for payment. My bill 
would extend the time from 90 days to 1 year the time period that a 
servicemember is protected from foreclosure. By extending the deadline 
to 1 year, I hope we can take one small step to prevent future 
homelessness throughout the veteran's community.
  If America's leaders truly support our troops, we owe them more than 
a polite thank you and best wishes. We owe them action. We cannot 
tolerate a pattern in Washington that has persisted for too long--
provide lip service about supporting the troops but not the lifesaving 
body armor they need; talk a good game about veterans but cut funding 
for their healthcare. It is wrong, and it is time for it to end. We 
should act now to ensure that those saddled with the burden of the 
mortgage crisis are not those who have carried the greatest 
responsibility for America overseas in the fight for freedom. I urge my 
colleagues to support this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2658

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

     SECTION 1. EXTENSION OF MORTGAGE FORECLOSURE PROTECTION 
                   PERIOD FOR SERVICEMEMBERS.

       (a) Extension of Protection Period.--Subsection (c) of 
     section 303 of the Servicemembers Civil Relief Act (50 U.S.C. 
     App. 533(c)) is amended by striking ``90 days'' and inserting 
     ``one year''.
       (b) Extension of Stay of Proceedings Period.--Subsection 
     (b) of such section (50 U.S.C. App. 533(b)) is amended by 
     striking ``90 days'' and inserting ``one year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to individuals performing a period 
     of military service (as that term is defined in section 
     101(3) of the Servicemembers Civil Relief Act (50 U.S.C. App. 
     511(3))) that begins on or after October 7, 2001.
                                 ______
                                 
      By Mr. SANDERS (for himself, Ms. Snowe, Mr. Kerry, Ms. Collins, 
        Mr. Kennedy, and Mr. Leahy):
  S. 2660. A bill to amend the Federal Power Act to ensure that the 
mission and functions of Regional Transmission Organizations and 
Independent System Operators include keeping energy costs as low as 
reasonably possible for consumers, and for other purposes; to the 
Committee on Energy and Natural Resources.

[[Page 2392]]


  Mr. SANDERS. Mr. President, today I am introducing legislation to 
help protect consumers from high electricity prices that have followed 
deregulation of electricity markets. I am honored to have many of my 
colleagues joining me in offering this legislation--Senator Snowe, 
Senator Kerry, Senator Collins, Senator Kennedy, and Senator Leahy.
  Market pricing of electricity promised to bring lower costs to 
consumers. Unfortunately, consumers in organized market regions--those 
that have a Regional Transmission Organization or Independent System 
Operator, RTOs or ISOs as they are called--are experiencing just the 
opposite: substantial, across-the-board problems with spiraling costs, 
unaccountable governance, and a chronic lack of oversight. 
Increasingly, RTOs/ISOs are adopting questionable, unproven, and 
expensive market mechanisms, and there seems to be little interest at 
the Federal Energy Regulatory Commission, FERC, or the RTOs/ISOs to 
question any of the economic theories behind these mechanisms. I note 
that on February 21, 2008, FERC finally took a step toward 
acknowledging that the markets are not working by issuing a proposed 
rule that would address some concerns. I believe, however, that the 
legislation I am introducing today will focus FERC on consumer issues, 
which were not adequately addressed in the proposed rule.
  The goal of lowering costs to consumers has been lost in the race to 
create competitive electricity markets. In fact, something as simple as 
keeping costs to consumers as low as reasonably possible is not even 
part of the mandate, or mission statement, of any of the Nation's ISOs 
or RTOs! In New England, we have seen what can happen--there have been 
several instances in which ISO-New England has implemented expensive 
market mechanisms, over the objection of significant segments of 
electric stakeholders, without either conducting a cost-benefit 
analysis or comparing the costs of the proposed initiative with 
alternative means of achieving the desired results.
  Showing the strong interest in this issue in the New England region, 
the legislation is supported by the Northeast Public Power Association, 
the Vermont Public Power Supply Authority, the Burlington Electric 
Department, Kennebunk Light & Power District, the Massachusetts 
Municipal Wholesale Electric Company, Connecticut Municipal Electric 
Energy Cooperative, the Connecticut Office of Consumer Counsel, and the 
Pascoag Utility District. The Ohio Consumers' Counsel, the Maryland 
Office of People's Counsel, Electricity Consumers Resource Council, and 
the Utility Consumers' Action Network support the legislation as well.
  The legislation I am introducing today would refocus FERC on the 
consumer cost impacts of RTO/ISO actions. Consistent with existing law, 
the bill makes explicit that, when FERC considers the lawfulness of 
RTO/ISO rates, it must assess whether those rates will ensure that 
consumer costs are as low as reasonably possible consistent with the 
provision of reliable service. Also, in recognition of the uniquely 
important roles played by RTOs and ISOs, this bill requires FERC to 
make both goals--cost minimization and reliability--a part of each RTO 
or ISO's mission. These changes clarify and amplify existing law as 
applied to these important organizations, but do not alter, diminish, 
or imply an absence of similar requirements with respect to other 
public utilities regulated by FERC.
  I believe these simple, commonsense issues, when posed by FERC to an 
RTO/ISO that is seeking approval for a rate, charge, or rule, will 
instill a much stronger sense of cost accountability. The bottom line, 
as I see it, is that this simple bill will likely yield substantial 
benefits for consumers and for many regional economies.
  I urge my colleagues to join me in pushing for adoption of the 
Consumer Protection and Cost Accountability Act.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2660

         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 ``Consumer Protection and Cost 
     Accountability Act''.

     SEC. 2. REQUIREMENTS RELATING TO TRANSMISSION ORGANIZATIONS.

       (a) Definitions.--In this Act:
       (1) Commission.--The term ``Commission'' means the Federal 
     Energy Regulatory Commission.
       (2) Lowest reasonable cost.--The term ``lowest reasonable 
     cost'' means the lowest total delivered cost to consumers 
     consistent with the provision of reliable service.
       (3) Transmission organization.--The term ``Transmission 
     Organization'' has the meaning given the term in section 3 of 
     the Federal Power Act (16 U.S.C. 796).
       (b) Rate and Charges; Schedules; Suspension of New Rates.--
     Section 205 of the Federal Power Act (16 U.S.C. 824d) is 
     amended by adding at the end the following:
       ``(g) Requirements Relating to Transmission 
     Organizations.--
       ``(1) Definition of lowest reasonable cost.--In this 
     subsection, the term `lowest reasonable cost' means the 
     lowest total delivered cost to consumers consistent with the 
     provision of reliable service.
       ``(2) Consideration of transmission organization rates.--
     With respect to determining whether a rate or charge made, 
     demanded, or received (including any rule or regulation 
     promulgated by a Transmission Organization relating to a rate 
     or charge made, demanded, or received) is consistent with 
     each requirement described in subsection (a) or section 206, 
     as applicable, the Commission shall consider whether the rate 
     or charge (including each rule or regulation relating to the 
     rate or charge) would enable the Transmission Organization to 
     provide, or facilitate the provision of, reliable service to 
     consumers at the lowest reasonable cost.
       ``(3) Consideration of transmission organization rate 
     changes.--In determining whether any filing by a Transmission 
     Organization to establish or change a rate or charge made, 
     demanded, or received (including any rule or regulation 
     promulgated by a Transmission Organization relating to a rate 
     or charge made, demanded, or received) is consistent with 
     each requirement described in subsection (a), the Commission 
     shall consider whether the rate or charge (including each 
     rule or regulation relating to the rate or charge) would--
       ``(A) provide consumer benefits that outweigh any 
     anticipated direct or indirect costs to consumers, as 
     demonstrated by a cost-benefit analysis to be submitted by 
     the Transmission Organization to the Commission; or
       ``(B) have only a de minimus impact on the total delivered 
     costs to consumer.
       ``(4) Biennial audits.--The Commission shall ensure that 
     each Transmission Organization is subject to biennial, 
     independent audits that--
       ``(A) include--
       ``(i) an assessment of the performance of the Transmission 
     Organization; and
       ``(ii) recommendations to lower the costs and improve the 
     performance of the Transmission Organization; and
       ``(B) are made available to the public.''.
       (c) Annual Reports.--Not later than 1 year after the date 
     of enactment of this Act, and annually thereafter, the 
     Commission shall submit to the appropriate committees of 
     Congress a report describing each determination of the 
     Commission with respect to whether each Transmission 
     Organization provides, or facilitates the provision of, 
     reliable service at the lowest reasonable cost to consumers.
                                 ______
                                 
      By Ms. SNOWE (for herself, Mr. Nelson of Florida, and Mr. 
        Stevens):
  S. 2661. A bill to prohibit the collection of identifying information 
on individuals by false, fraudulent, or deceptive means through the 
Internet, a practice known as ``phishing'', to provide the Federal 
Trade Commission the necessary authority to enforce such prohibition, 
and for other purposes; to the Committee on Commerce, Science, and 
Transportation.
  Ms. SNOWE. Mr. President, I rise today to introduce legislation that 
focuses on eliminating online fraud and identity theft that is 
facilitated through the use of phishing schemes, as well as deceptive 
and misleading domain names. Phishing is a method of online identity 
theft that takes the form of fraudulent e-mails or fake Web sites in 
order to deceive the recipient into giving personal or financial 
account information. In addition to victimizing unsuspecting consumers, 
phishing scams maliciously exploit the trust that legitimate businesses 
have worked so hard to establish with consumers.

[[Page 2393]]

  The Anti-Phishing Consumer Protection Act of 2008 would prohibit the 
practice of phishing--the deceptive solicitation of a consumer's 
personal information through the use of e-mails, instant messages, and 
misleading Web sites that trick recipients into divulging their 
information to identity thieves. The legislation would also prohibit 
related abuses, such as the practice of using fraudulent or misleading 
domain names, by defining them as deceptive practices under the FTC 
Act.
  Additionally, the legislation seeks to solidify the integrity of 
domain name registration, a longtime goal for the Federal Trade 
Commission, by making it illegal for a domain name registrant to 
provide false or misleading identifying contact information in a WHOIS 
database when registering a domain name. Too often law enforcement 
officials have been hindered in their pursuit of phishers and other 
online scams because the person responsible is hiding behind the 
anonymity of false registration information--this legislation would put 
an end to that practice by requiring accurate registration information 
about those that own Web sites and domain names that are used to harm 
consumers.
  The reason it is imperative to address this through legislation is 
because online fraud and, more specifically, phishing scams are running 
rampant. A December 2007 New York Times article reported that more than 
3.5 million Americans lost money to phishing schemes and online 
identity theft over a 12-month period ending in August 2007--this is a 
57-percent increase over the previous year. The total amount lost by 
the victims, $3.2 billion dollars. The Anti-Phishing Working Group 
found, in November 2007, that 178 corporate identities and brands were 
hijacked and used for phishing scams, which is the highest number ever 
reported. All of these figures are very disconcerting and will only 
increase if we don't put greater effort on curtailing this online 
fraud.
  Phishing and other forms of identity theft continue to have a 
detrimental effect on e-commerce by eroding consumers' confidence in 
online transactions. According to a 2007 Javelin Strategy & Research 
study, 80 percent of Internet users are concerned about being victims 
of online identity theft. What is more, a 2006 Zogby Interactive poll 
found that 78 percent of small business owners polled stated that a 
less reliable Internet would damage their business. While consumer 
confidence is critical in any commerce activity, it is paramount for 
online transactions. Phishing and other online fraud activities 
directly undermine that vital trust.
  Phishing schemes aren't just isolated to individuals and e-commerce. 
Companies, organizations, and government agencies are also targets. A 
form of phishing known as spear phishing targets these entities to gain 
unauthorized access to the organization's computer system in order to 
steal financial information, trade secrets, or even top-secret military 
information. The security risks that phishing poses in the world of 
cyberterrorism is very significant.
  But one doesn't have to look to some distant country to find the 
origin of traditional phishing schemes. The United States only until 
recently was consistently the top country that hosted the most phishing 
Web sites. While China now holds that claim, the United States is a 
very close second--hosting approximately 24 percent of phishing Web 
sites. So we can definitively do more within our borders to make the 
Internet notably safer.
  Since President Bush signed the stimulus package into law earlier 
this month, millions of Americans will be expecting to receive tax 
rebate checks this May. But before those checks arrive, taxpayers 
should also expect to be targets of numerous phishing schemes between 
now and then. Many of these scams involve official-looking e-mail 
messages that try to trick the recipient into entering their personal 
information at a fake IRS Web site by stating in the e-mail that they 
are eligible for a refund check. This is not the first time the IRS 
identity has been misused for phishing scams, and it will continue if 
we don't do more to go after phishers.
  And this is what the Anti-Phishing Consumer Protection Act of 2008 
does. It looks to make the Internet safer and more reliable. It also 
facilitates the restoration of trust and consumer confidence that has 
been eroded by the prevalence of deceptive e-mails and Web sites, which 
has, in part, mired the Internet from achieving its full potential. 
That is why I sincerely hope that my colleagues join Senators Bill 
Nelson, Stevens, and me in supporting the critical legislation.
                                 ______
                                 
      By Mr. BAUCUS (for himself and Mr. Gregg) (by request):
  S. 2662. a bill to respond to a Medicare funding warning; to the 
Committee on Finance.
   Mr. BAUCUS. Mr. President, under a provision of the 2003 Medicare 
bill, the Medicare trustees are required to determine the point at 
which general revenues will finance at least 45 percent of Medicare's 
total outlays. If for 2 consecutive years, the trustees predict that 
this 45 percent threshold will be exceeded in the next 6 years, they 
are required to issue a ``Medicare Funding Warning,'' which they did 
last April. As a result, the law requires the President to submit and 
Congress to receive a legislative proposal to reduce general revenues 
as a share of total Medicare spending.
   The President has now submitted proposed legislation to Congress in 
response to the funding warning, and I am therefore required to 
introduce the President's proposal. So today, Senator Gregg and I will 
introduce a bill to respond to a Medicare funding warning. But I do so 
while emphasizing that the President's proposal, contained in this very 
bill, is not the answer to the Medicare program's problems.
   Everyone agrees that Medicare faces a serious long-term financing 
problem that must be addressed. But the challenge facing Medicare is 
not what share of its funding comes from general revenues--the problem 
is rising health care costs in the health care system as a whole. 
Medicare's costs are increasing because costs throughout the health 
care system are skyrocketing. Addressing the causes of these system-
wide costs will be the key to addressing Medicare's long-term 
financing.
   With health care costs increasing much faster than wages and 
inflation, Congress must find ways to control these rising costs in 
order to ensure the long-term financial viability of the Medicare 
program. We must also address current Medicare policies--such as 
overpayments in the Medicare Advantage program--that exacerbate the 
problem.
   While I am statutorily required to introduce the President's 
Medicare bill at this time, I still fully intend to pursue real 
Medicare reform legislation in the coming weeks. That bill will 
increase access to preventive benefits and primary care, and will 
improve the quality of care delivered under the program. I will also 
seek to help low-income seniors with the costs of rising Medicare 
premiums, and to offer timely, appropriate improvements for the 
prescription drug benefit.
   Beyond advancing a more realistic Medicare reform bill this year, I 
also intend for the Finance Committee to launch an aggressive look at 
comprehensive health care reform. Working together, my colleagues and I 
will examine the underlying causes of rising health care costs in the 
entire health care system and explore solutions that can be the 
foundation for system-wide reform--the only way truly to control costs 
in the Medicare program.
   I am required by law to introduce the White House's legislation on 
Medicare today, but I am compelled by my commitment to America's 
seniors to insist on better solutions. Where the President's bill 
cobbles together ill-conceived or premature proposals to check the box 
on curbing Medicare costs, I intend for the Senate to consider a 
carefully crafted, thoughtful package of real improvements to the 
Medicare program overall--and to spend the rest of this year preparing 
for a time when real health reform is within our grasp. Working 
together, we can do better by America's seniors.

[[Page 2394]]


                                 ______
                                 
      By Mr. PRYOR (for himself, Mr. Stevens, Mr. Inouye, Ms. Collins, 
        Mr. Nelson of Florida, and Ms. Klobuchar):
  S. 2663. A bill to reform the Consumer Product Safety Commission to 
provide greater protection for children's products, to improve the 
screening of noncompliant consumer products, to improve the 
effectiveness of consumer product recall programs, and for other 
purposes; read the first time.
  Mr. PRYOR. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
placed in the Record, as follows:

                                S. 2663

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``CPSC 
     Reform Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Amendment of Consumer Product Safety Act.
Sec. 3. Reauthorization.
Sec. 4. Personnel.
Sec. 5. Full Commission requirement; interim quorum.
Sec. 6. Submission of copy of certain documents to congress.
Sec. 7. Public disclosure of information.
Sec. 8. Rulemaking.
Sec. 9. Prohibition on stockpiling under other Commission-enforced 
              statutes.
Sec. 10. Third party certification of children's products.
Sec. 11. Tracking labels for products for children.
Sec. 12. Substantial product hazard reporting requirement.
Sec. 13. Corrective action plans.
Sec. 14. Identification of manufacturer by importers, retailers, and 
              distributors.
Sec. 15. Prohibited acts.
Sec. 16. Penalties.
Sec. 17. Preemption.
Sec. 18. Sharing of information with Federal, State, local, and foreign 
              government agencies.
Sec. 19. Financial responsibility.
Sec. 20. Enforcement by State attorneys general.
Sec. 21. Whistleblower protections.
Sec. 22. Ban on children's products containing lead; lead paint rule.
Sec. 23. Alternative measures of lead content.
Sec. 24. Study of preventable injuries and deaths of minority children 
              related to certain consumer products.
Sec. 25. Cost-benefit analysis under the Poison Prevention Packaging 
              Act of 1970.
Sec. 26. Inspector general reports.
Sec. 27. Public internet website links.
Sec. 28. Child-resistant portable gasoline containers.
Sec. 29. Toy safety standard.
Sec. 30. All-terrain vehicle safety standard.
Sec. 31. Garage door opener standard.
Sec. 32. Reducing deaths and injuries from carbon monoxide poisoning.
Sec. 33. Completion of cigarette lighter rulemaking.
Sec. 34. Consumer product registration forms.
Sec. 35. Repeal.
Sec. 36. Consumer Product Safety Commission presence at National 
              Targeting Center of U.S. Customs and Border Protection.
Sec. 37. Development of risk assessment methodology to identify 
              shipments of consumer products that are likely to contain 
              consumer products in violation of safety standards.
Sec. 38. Seizure and destruction of imported products in violation of 
              consumer product safety standards.
Sec. 39. Database of manufacturing facilities and suppliers involved in 
              violations of consumer product safety standards.

     SEC. 2. AMENDMENT OF CONSUMER PRODUCT SAFETY ACT.

  Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Consumer Product Safety 
Act (15 U.S.C. 2051 et seq.).

     SEC. 3. REAUTHORIZATION.

       (a) In General.--Section 32 (15 U.S.C. 2081) is amended--
       (1) by redesignating subsection (c) as subsection (e); and
       (2) by striking subsections (a) and (b) and inserting the 
     following:
       ``(a) There are authorized to be appropriated to the 
     Commission for the purpose of carrying out the provisions of 
     this Act and any other provision of law the Commission is 
     authorized or directed to carry out--
       ``(1) $88,500,000 for fiscal year 2009;
       ``(2) $96,800,000 for fiscal year 2010;
       ``(3) $106,480,000 for fiscal year 2011;
       ``(4) $117,128,000 for fiscal year 2012;
       ``(5) $128,841,000 for fiscal year 2013;
       ``(6) $141,725,000 for fiscal year 2014.
       ``(7) $155,900,000 for fiscal year 2015.
       ``(b) There are authorized to be appropriated to the 
     Commission for the Office of Inspector General--
       ``(1) $1,600,000 for fiscal year 2009;
       ``(2) $1,770,000 for fiscal year 2010;
       ``(3) $1,936,000 for fiscal year 2011;
       ``(4) $2,129,600 for fiscal year 2012;
       ``(5) $2,342,560 for fiscal year 2013;
       ``(6) $2,576,820 for fiscal year 2014; and
       ``(7) $2,834,500 for fiscal year 2015.
       ``(c) There are authorized to be appropriated to the 
     Commission for the purpose of renovation, repair, 
     construction, equipping, and making other necessary capital 
     improvements to the Commission's research, development, and 
     testing facility (including bringing the facility into 
     compliance with applicable environmental, safety, and 
     accessibility standards), $40,000,000 for fiscal years 2009 
     and 2010.
       ``(d) There are authorized to be appropriated to the 
     Commission for research, in cooperation with the National 
     Institute of Science and Technology, the Food and Drug 
     Administration, and other relevant Federal agencies into 
     safety issues related to the use of nanotechnology in 
     consumer products, $1,000,000 for fiscal years 2009 and 
     2010.''.

     SEC. 4. PERSONNEL.

       (a) Professional Staff.--
       (1) In general.--The Consumer Product Safety Commission 
     shall increase the number of fulltime personnel employed by 
     the Commission to at least 500 by October 1, 2013, subject to 
     the availability of appropriations.
       (2) Ports of entry; overseas inspectors.--The Consumer 
     Product Safety Commission shall hire at least 50 additional 
     personnel to be assigned to duty stations at United States 
     ports of entry, or to inspect overseas production facilities, 
     by October 1, 2010, subject to the availability of 
     appropriations.
       (b) Professional Career Path.--The Commission shall develop 
     and implement a professional career development program for 
     professional staff to encourage retention of career personnel 
     and provide professional development opportunities for 
     Commission employees.

     SEC. 5. FULL COMMISSION REQUIREMENT; INTERIM QUORUM.

       (a) Number of Commissioners.--
       (1) In general.--The Congress finds that it is necessary, 
     in order for the Consumer Product Safety Commission to 
     function effectively and carry out the purposes for which the 
     Consumer Product Safety Act was enacted, for the full 
     complement of 5 members of the Commission to serve and 
     participate in the business of the Commission and urges the 
     President to nominate members to fill any vacancy in the 
     membership of the Commission as expeditiously as practicable.
       (2) Repeal of limitation.--Title III of Public Law 102-389 
     is amended by striking the first proviso in the item 
     captioned ``Consumer Product Safety Commission, salaries and 
     expenses'' (15 U.S.C. 2053 note).
       (b) Temporary Quorum.--Notwithstanding section 4(d) of the 
     Consumer Product Safety Act (15 U.S.C. 2053(d)), 2 members of 
     the Consumer Product Safety Commission, if they are not 
     affiliated with the same political party, shall constitute a 
     quorum for the transaction of business for the 9-month period 
     beginning on the date of enactment of this Act.

     SEC. 6. SUBMISSION OF COPY OF CERTAIN DOCUMENTS TO CONGRESS.

       (a) In General.--Notwithstanding any rule, regulation, or 
     order to the contrary, the Commission shall comply with the 
     requirements of section 27(k) of the Consumer Product Safety 
     Act (15 U.S.C. 2076(k)) with respect to budget 
     recommendations, legislative recommendations, testimony, and 
     comments on legislation submitted by the Commission to the 
     President or the Office of Management and Budget after the 
     date of enactment of this Act.
       (b) Reinstatement of Requirement.--Section 3003(d) of 
     Public Law 104-66 (31 U.S.C. 1113 note) is amended--
       (1) by striking ``or'' after the semicolon in paragraph 
     (31);
       (2) by redesignating paragraph (32) as (33); and
       (3) by inserting after paragraph (31) the following:
       ``(32) section 27(k) of the Consumer Product Safety Act (15 
     U.S.C. 2076(k)); or''.

     SEC. 7. PUBLIC DISCLOSURE OF INFORMATION.

       Section 6 (15 U.S.C. 2055) is amended--
       (1) by inserting ``A manufacturer or private labeler shall 
     submit any such mark within 15 calendar days after the date 
     on which it receives the Commission's offer.'' after 
     ``paragraph (2).'' in subsection (a)(3);
       (2) by striking ``30 days'' in subsection (b)(1) and 
     inserting ``15 days'';
       (3) by striking ``finds that the public'' in subsection 
     (b)(1) and inserting ``publishes a finding that the public'';
       (4) by striking ``notice and publishes such a finding in 
     the Federal Register),'' in subsection (b)(1) and inserting 
     ``notice),'';

[[Page 2395]]

       (5) by striking ``10 days'' in subsection (b)(2) and 
     inserting ``5 days'';
       (6) by striking ``finds that the public'' in subsection 
     (b)(2) and inserting ``publishes a finding that the public'';
       (7) by striking ``notice and publishes such a finding in 
     the Federal Register.'' in subsection (b)(2) and inserting 
     ``notice.'';
       (8) in subsection (b)--
       (A) by striking ``(3)'' and inserting ``(3)(A)''; and
       (B) by adding at the end thereof the following:
       ``(B) If the Commission determines that the public health 
     and safety requires expedited consideration of an action 
     brought under subparagraph (A), the Commission may file a 
     request with the District Court for such expedited 
     consideration. If the Commission files such a request, the 
     District Court shall--
       ``(i) assign the matter for hearing at the earliest 
     possible date;
       ``(ii) give precedence to the matter, to the greatest 
     extent practicable, over all other matters pending on the 
     docket of the court at the time;
       ``(iii) expedite consideration of the matter to the 
     greatest extent practicable; and
       ``(iv) grant or deny the requested injunction within 30 
     days after the date on which the Commission's request was 
     filed with the court.'';
       (9) by striking ``section 19 (related to prohibited 
     acts);'' in subsection (b)(4) and inserting ``any consumer 
     product safety rule or provision of this Act or similar rule 
     or provision of any other Act enforced by the Commission;'';
       (10) by striking ``or'' after the semicolon in subsection 
     (b)(5)(B);
       (11) by striking ``disclosure.'' in subsection (b)(5)(C) 
     and inserting ``disclosure; or'';
       (12) by inserting in subsection (b)(5) after subparagraph 
     (C) the following:
       ``(D) the Commission publishes a finding that the public 
     health and safety requires public disclosure with a lesser 
     period of notice than is required under paragraph (1).'';
       (13) in the matter following subparagraph (D) of subsection 
     (b)(5) (as added by paragraph (12) of this section), by 
     striking ``section 19(a),'' and inserting ``any consumer 
     product safety rule or provision under this Act or similar 
     rule or provision of any other Act enforced by the 
     Commission,''; and
       (14) by adding at the end of subsection (b) the following:
       ``(9) Publicly available database of reported deaths, 
     injuries, illness, and risk of such incidents.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of the CPSC Reform Act, the Commission shall 
     establish and maintain a publicly available searchable 
     database accessible on the Commission's web site. The 
     database shall include any reports of injuries, illness, 
     death, or risk of such injury, illness, or death related to 
     the use of consumer products received by the Commission 
     from--
       ``(i) consumers;
       ``(ii) local, State, or Federal government agencies;
       ``(iii) health care professionals, including physicians, 
     hospitals, and coroners;
       ``(iv) child service providers;
       ``(v) public safety entities, including police and fire 
     fighters; and
       ``(vi) other non-governmental sources, other than 
     information provided to the Commission by retailers, 
     manufacturers, or private labelers pursuant to a voluntary or 
     required submission under section 15 or other mandatory or 
     voluntary program.
       ``(B) Additional contents.--In addition to the reports 
     described in subparagraph (A), the Commission may include in 
     the database any additional information it determines to be 
     in the public interest.
       ``(C) Organization of database.--The Commission shall 
     categorize the information available on the database by date, 
     product, manufacturer, the model of the product, and any 
     other category the Commission determines to be in the public 
     interest.
       ``(D) Timing.--The Commission shall make such reports 
     available on the Commission website no later than 15 days 
     after the date on which they are received.
       ``(E) Removal of inaccurate or incorrect information.--If 
     the Commission determines, after investigation, that 
     information made available on the database is incorrect the 
     Commission shall promptly remove it from the database.
       ``(F) Manufacturer comments.--A manufacturer, private 
     labeler, or retailer shall be given an opportunity to comment 
     on any information involving a product manufactured by that 
     manufacturer, or distributed by that private labeler or 
     retailer, as the case may be. Any such comments may be 
     included in the database alongside the information involving 
     such product if requested by the manufacturer, private 
     labeler, or retailer.
       ``(G) Disclosure.--The Commission may not disclose the 
     names or addresses of consumers pursuant to its authority 
     under this subsection.
       ``(H) Application with other provisions.--Subsection (a) 
     and the preceding paragraphs of this subsection do not apply 
     to the public disclosure of information received by the 
     Commission under subparagraph (A) of this paragraph.''.

     SEC. 8. RULEMAKING.

       (a) ANPR Requirement.--
       (1) In general.--Section 9 (15 U.S.C. 2058) is amended--
       (A) by striking ``shall be commenced'' in subsection (a) 
     and inserting ``may be commenced'';
       (B) by striking ``in the notice'' in subsection (b) and 
     inserting ``in a notice'';
       (C) by striking ``unless, not less than 60 days after 
     publication of the notice required in subsection (a), the'' 
     in subsection (c) and inserting ``unless the'';
       (D) by striking ``an advance notice of proposed rulemaking 
     under subsection (a) relating to the product involved,'' in 
     the third sentence of subsection (c) and inserting ``the 
     notice,''; and
       (E) by striking ``Register.'' in the matter following 
     paragraph (4) of subsection (c) and inserting ``Register. 
     Nothing in this subsection shall preclude any person from 
     submitting an existing standard or portion of a standard as a 
     proposed consumer product safety standard.''.
       (2) Conforming amendment.--Section 5(a)(3) (15 U.S.C. 
     2054(a)(3)) is amended by striking ``an advance notice of 
     proposed rulemaking or''.
       (b) Rulemaking Under Federal Hazardous Substances Act.--
       (1) In general.--Section 3(a) of the Federal Hazardous 
     Substances Act (15 U.S.C. 1262(a)) is amended to read as 
     follows:
       ``(a) Rulemaking.--
       ``(1) In general.--Whenever in the judgment of the 
     Commission such action will promote the objectives of this 
     Act by avoiding or resolving uncertainty as to its 
     application, the Commission may by regulation declare to be a 
     hazardous substance, for the purposes of this Act, any 
     substance or mixture of substances, which it finds meets the 
     requirements of section 2(f)(1)(A).
       ``(2) Procedure.--Proceedings for the issuance, amendment, 
     or repeal of regulations under this subsection and the 
     admissibility of the record of such proceedings in other 
     proceedings, shall be governed by the provisions of 
     subsections (f) through (i) of this section.''.
       (2) Procedure.--Section 2(q)(2) of the Federal Hazardous 
     Substances Act (15 U.S.C. 1261(q)(2)) is amended by striking 
     ``Proceedings for the issuance, amendment, or repeal of 
     regulations pursuant to clause (B) of subparagraph (1) of 
     this paragraph shall be governed by the provisions of 
     sections 701(e), (f), and (g) of the Federal Food, Drug, and 
     Cosmetic Act: Provided, That if'' and inserting ``Proceedings 
     for the issuance, amendment, or repeal of regulations 
     pursuant to clause (B) of subparagraph (1) of this paragraph 
     shall be governed by the provisions of subsections (f) 
     through (i) of section 3 of this Act, except that if''.
       (3) ANPR requirement.--Section 3 of the Federal Hazardous 
     Substances Act (15 U.S.C. 1262) is amended--
       (A) by striking ``shall be commenced'' in subsection (f) 
     and inserting ``may be commenced'';
       (B) by striking ``in the notice'' in subsection (g)(1) and 
     inserting ``in a notice''; and
       (C) by striking ``unless, not less than 60 days after 
     publication of the notice required in subsection (f), the'' 
     in subsection (h) and inserting ``unless the''.
       (4) Other conforming amendments.--The Federal Hazardous 
     Substances Act (15 U.S.C. 1261 et seq.) is amended--
       (A) by striking paragraphs (c) and (d) of section 2 and 
     inserting the following:
       ``(c) The term `Commission' means the Consumer Product 
     Safety Commission.'';
       (B) by striking ``Secretary'' each place it appears and 
     inserting ``Commission'' except--
       (i) in section 10(b) (15 U.S.C. 1269(b));
       (ii) in section 14 (15 U.S.C. 1273); and
       (iii) in section 21(a) (15 U.S.C. 1276(a));
       (C) by striking ``Department'' each place it appears, 
     except in sections 5(c)(6)(D)(i) and 14(b) (15 U.S.C. 
     1264(c)(6)(D)(i) and 1273(b)) , and inserting ``Commission'';
       (D) by striking ``he'' and ``his'' each place they appear 
     in reference to the Secretary and inserting ``it'' and 
     ``its'', respectively;
       (E) by striking ``Secretary of Health, Education, and 
     Welfare'' each place it appears in section 10(b) (15 U.S.C. 
     1269(b)) and inserting ``Commission'';
       (F) by striking ``Secretary of Health, Education, and 
     Welfare'' each place it appears in section 14 (15 U.S.C. 
     1273) and inserting ``Commission'';
       (G) by striking ``Department of Health, Education, and 
     Welfare'' in section 14(b) (15 U.S.C. 1273(b)) and inserting 
     ``Commission'';
       (H) by striking ``Consumer Product Safety Commission'' each 
     place it appears and inserting ``Commission'';
       (I) by striking ``(hereinafter in this section referred to 
     as the `Commission')'' in section 14(d) (15 U.S.C. 1273(d)) 
     and section 20(a)(1) (15 U.S.C. 1275(a)(1)); and
       (J) by striking paragraph (5) of section 18(b) (15 U.S.C. 
     1261 note).
       (c) Rulemaking under Flammable Fabrics Act.--
       (1) In general.--Section 4 of the Flammable Fabrics Act (15 
     U.S.C. 1193) is amended--
       (A) by striking ``shall be commenced'' in subsection (g) 
     and inserting ``may be commenced by a notice of proposed 
     rulemaking or''; and

[[Page 2396]]

       (B) by striking ``unless, not less than 60 days after 
     publication of the notice required in subsection (g), the'' 
     in subsection (i) and inserting ``unless the''.
       (2) Other conforming amendments.--The Flammable Fabrics Act 
     (15 U.S.C. 1193) is amended--
       (A) by striking paragraph (i) of section 2 (15 U.S.C. 
     1191(i)) and inserting the following:
       ``(i) The term `Commission' means the Consumer Product 
     Safety Commission.'';
       (B) by striking ``Secretary of Commerce'' each place it 
     appears and inserting ``Commission'';
       (C) by striking ``Secretary'' each place it appears and 
     inserting ``Commission'', except in sections 9 and 14 (15 
     U.S.C. 1198 and 1201);
       (D) by striking ``he'' and ``his'' each place they appear 
     in reference to the Secretary and inserting ``it'' and 
     ``its'', respectively;
       (E) by striking paragraph (5) of section 4(e) (15 U.S.C. 
     1193(e)) and redesignating paragraph (6) as paragraph (5);
       (F) by striking ``Consumer Product Safety Commission 
     (hereinafter in this section referred to as the 
     `Commission')'' in section 15 (15 U.S.C. 1202) and inserting 
     ``Commission'';
       (G) by striking section 16(d) (15 U.S.C. 1203(d)) and 
     inserting the following:
       ``(d) In this section, a reference to a flammability 
     standard or other regulation for a fabric, related material, 
     or product in effect under this Act includes a standard of 
     flammability continued in effect by section 11 of the Act of 
     December 14, 1967 (Public Law 90-189).''; and
       (H) by striking ``Consumer Product Safety Commission'' in 
     section 17 (15 U.S.C. 1204) and inserting ``Commission''.

     SEC. 9. PROHIBITION ON STOCKPILING UNDER OTHER COMMISSION-
                   ENFORCED STATUTES.

       Section 9(g)(2) (15 U.S.C. 2058(g)(2)) is amended--
       (1) by inserting ``or to which a rule under any other law 
     enforced by the Commission applies,'' after ``applies,''; and
       (2) by striking ``consumer product safety'' the second, 
     third, and fourth places it appears.

     SEC. 10. THIRD PARTY CERTIFICATION OF CHILDREN'S PRODUCTS.

       (a) In General.--Section 14(a) (15 U.S.C. 2063(a)) is 
     amended--
       (1) by redesignating paragraph (2) as paragraph (5);
       (2) by striking ``Every manufacturer'' in paragraph (1) and 
     inserting ``Except as provided in paragraph (2), every 
     manufacturer'';
       (3) by designating the second and third sentences of 
     subsection (a) as paragraphs (3) and (4), respectively;
       (4) by inserting after paragraph (1) the following:
       ``(2) Beginning 60 days after the date on which the 
     Commission publishes notice of an interim procedure 
     designated under subsection (d)(2) of this section, every 
     manufacturer, or its designee, of a children's product (and 
     the private labeler, or its designee, of such product if it 
     bears a private label) manufactured or imported after such 
     60th day that is subject to a children's product safety 
     standard shall--
       ``(A) have the product tested by a third party laboratory 
     qualified to perform such tests or testing programs; and
       ``(B) issue a certification which shall--
       ``(i) certify that such product meets that standard; and
       ``(ii) specify the applicable children's product safety 
     standard.'';
       (5) by striking ``Such certificate shall'' in paragraph (3) 
     as redesignated by paragraph (1) and inserting ``A 
     certificate required under this subsection shall''; and
       (6) in paragraph (5), as redesignated by paragraph (1)--
       (A) by striking ``required by paragraph (1) of this 
     subsection,'' and inserting ``required by paragraph (1) or 
     (2) (as the case may be),''; and
       (B) by striking ``requirement under paragraph (1)'' and 
     inserting ``requirement under paragraph (1) or (2) (as the 
     case may be)''.
       (b) Testing programs.--Section 14(b) (15 U.S.C. 2063(b)) is 
     amended--
       (1) by inserting ``(1)'' before the first sentence;
       (2) by designating the second sentence as paragraph (2); 
     and
       (3) in paragraph (2), as so designated, by striking ``Any 
     test or'' and inserting ``Except as provided in subsection 
     (a)(2), any test or''.
       (c) Children's Products; Testing by Independent Third 
     Laboratories; Certification.--Section 14 (15 U.S.C. 2063) is 
     amended by adding at the end the following:
       ``(d) Application to Other Consumer Products; Certifier 
     Standards; Audit.--
       ``(1) In general.--The Commission--
       ``(A) within 1 year after the date of enactment of the CPSC 
     Reform Act shall by rule--
       ``(i) establish protocols and standards--
       ``(I) for acceptance of certification or continuing 
     guarantees of compliance by manufacturers under this section; 
     and
       ``(II) for verifying that products tested by third party 
     laboratories comply with applicable standards under this Act 
     and other Acts enforced by the Commission;
       ``(ii) prescribe standards for accreditation of third party 
     laboratories, either by the Commission or by 1 or more 
     independent standard-setting organizations to which the 
     Commission delegates authority, to engage in certifying 
     compliance under subsection (a)(2) for children's products or 
     products to which the Commission extends the certification 
     requirements of that subsection;
       ``(iii) establish requirements, or delegate authority to 1 
     or more independent standard-setting organizations, for third 
     party laboratory testing, as the Commission determines to be 
     necessary to ensure compliance with any applicable rule or 
     order, of random samples of products certified under this 
     section to determine whether they meet the requirements for 
     certification;
       ``(iv) establish requirements for periodic audits of third 
     party laboratories by an independent standard-setting 
     organization as a condition for accreditation of such 
     laboratories under this section; and
       ``(v) establish a program by which manufacturers may label 
     products as compliant with the certification requirements of 
     subsection (a)(2); and
       ``(B) may by rule extend the certification requirements of 
     subsection (a)(2) to other consumer products or to classes or 
     categories of consumer products.
       ``(2) Interim procedure.--Within 30 days after the date of 
     enactment of the CPSC Reform Act, the Commission shall--
       ``(A) consider existing laboratory testing certification 
     procedures established by independent standard-setting 
     organizations; and
       ``(B) designate an existing procedure, or existing 
     procedures, for manufacturers of children's products to 
     follow until the Commission issues a final rule under 
     paragraph (1)(A).
       ``(e) Definitions.--In this section:
       ``(1) Children's product.--The term `children's product' 
     means a product (other than a medication, drug, or food) 
     designed or intended for use by, or care of, a child 7 years 
     of age or younger that is introduced into the interstate 
     stream of commerce. In determining whether a product is 
     intended for use by a child 7 years of age or younger, the 
     following factors shall be considered:
       ``(A) A statement by a manufacturer about the intended use 
     of such product, including a label on such product, if such 
     statement is reasonable.
       ``(B) Whether the product is represented in its packaging, 
     display, promotion, or advertising as appropriate for 
     children 7 years of age or younger.
       ``(C) Whether the product is commonly recognized by 
     consumers as being intended for use by a child 7 years of age 
     or younger.
       ``(D) The Age Determination Guidelines issued by the 
     Commission in September 2002 and any subsequent version of 
     such Guideline.
       ``(2) Children's product safety standard.--The term 
     `children's product safety standard' means a consumer product 
     safety rule or standard under this Act or any other Act 
     enforced by the Commission, or a rule or classification under 
     this Act or any other Act enforced by the Commission 
     declaring a consumer product to be a banned hazardous product 
     or substance.
       ``(3) Third party laboratory.--
       ``(A) In general.--The term `third party laboratory' means 
     a testing entity that--
       ``(i) is designated by the Commission, or by an independent 
     standard-setting organization to which the Commission 
     qualifies as capable of making such a designation, as a 
     testing laboratory that is competent to test products for 
     compliance with applicable safety standards under this Act 
     and other Acts enforced by the Commission; and
       ``(ii) except as provided in subparagraph (C), is a non-
     governmental entity that is not owned, managed, or controlled 
     by the manufacturer or private labeler.
       ``(B) Testing and certification of art materials and 
     products.--A certifying organization (as defined in appendix 
     A to section 1500.14(b)(8) of title 16, Code of Federal 
     Regulations) meets the requirements of subparagraph (A)(ii) 
     with respect to the certification of art material and art 
     products required under this section or by regulations issued 
     under the Federal Hazardous Substances Act.
       ``(C) Firewalled proprietary laboratories.--Upon request, 
     the Commission may certify a laboratory that is owned, 
     managed, or controlled by the manufacturer or private labeler 
     as a third party laboratory if the Commission--
       ``(i) finds that certification of the laboratory would 
     provide equal or greater consumer safety protection than the 
     manufacturer's use of an independent third party laboratory;
       ``(ii) establishes procedures to ensure that the laboratory 
     is protected from undue influence, including pressure to 
     modify or hide test results, by the manufacturer or private 
     labeler; and
       ``(iii) establishes procedures for confidential reporting 
     of allegations of undue influence to the Commission.
       ``(D) Provisional certification.--
       ``(i) In general.--Upon application made to the Commission 
     less than 1 year after the date of enactment of the CPSC 
     Reform Act, the Commission may provide provisional 
     certification of a laboratory described in subparagraph (C) 
     of this paragraph, or a laboratory described in subparagraph 
     (A) of this paragraph, upon a showing that the laboratory--
       ``(I) is certified under laboratory testing certification 
     procedures established by an

[[Page 2397]]

     independent standard-setting organization; or
       ``(II) provides consumer safety protection that is equal to 
     or greater than that which would be provided by use of an 
     independent third party laboratory.
       ``(ii) Deadline.--The Commission shall grant or deny any 
     such application within 45 days after receiving the completed 
     application.
       ``(iii) Expiration.--Any such certification shall expire 90 
     days after the date on which the Commission publishes final 
     rules under subsections (a)(2) and (d).
       ``(iv) Anti-gap provision.--Within 45 days after receiving 
     a complete application for certification under the final rule 
     prescribed under subsections (a)(2) and (d) of this section 
     from a laboratory provisionally certified under this 
     subparagraph, the Commission shall grant or deny the 
     application if the application is received by the Commission 
     no later than 45 days after the date on which the Commission 
     publishes such final rule.
       ``(E) Decertification.--The Commission, or an independent 
     standard-setting organization to which the Commission has 
     delegated such authority, may decertify a third party 
     laboratory (including a laboratory certified as a third party 
     laboratory under subparagraph (B) of this paragraph) if it 
     finds, after notice and investigation, that a manufacturer or 
     private labeler has exerted undue influence on the 
     laboratory.''.
       (d) Conforming Amendments.--Section 14(b) (15 U.S.C. 
     2063(b)) is amended--
       (1) by striking ``consumer products which are subject to 
     consumer product safety standards'' and inserting ``a 
     consumer product that is subject to a consumer product safety 
     standard, a children's product that is subject to a 
     children's product safety standard, or either such product 
     that is subject to any other rule under this Act (or a 
     similar rule under any other Act enforced by the 
     Commission)''; and
       (2) by striking ``, at the option of the person required to 
     certify the product,'' and inserting ``be required by the 
     Commission to''.
       (e) Label and Certification.--Not later than 1 year after 
     the date of enactment of this Act, the Consumer Product 
     Safety Commission shall prescribe a rule in accordance with 
     section 14(a)(5) and (d) of the Consumer Product Safety Act 
     (15 U.S.C. 2063(a)(5) and (d)) for children's products (as 
     defined in subsection (e) of such section).
       (f) Prohibition on Imports of Children's Products Without 
     Third Party Testing Certification.--Section 17(a) (15 U.S.C. 
     2066(a)) is amended--
       (1) by striking ``or'' at the end of paragraph (4);
       (2) by striking ``(g).'' in paragraph (5) and inserting a 
     ``(g); or''; and
       (3) by adding at the end the following:
       ``(6) is a children's product, as that term is defined in 
     section 14(e), or a product for which the Commission, under 
     section 14(d)(1), has required certification under section 
     14(a)(2), that is not accompanied by a certificate from a 
     third party as required by section 14(a)(2).''.
       (g) CPSC Consideration of Existing Requirements.--In 
     establishing standards for laboratories certified to perform 
     testing under section 14 of the Consumer Product Safety Act, 
     as amended by this section, the Consumer Product Safety 
     Commission may consider standards and protocols for 
     certification of such laboratories by independent standard-
     setting organizations that are in effect on the date of 
     enactment of this Act, but shall ensure that the final rule 
     prescribed under subsections (a)(2) and (d) of that section 
     incorporates, as the standard for certification, the most 
     current scientific and technological standards and techniques 
     available.

     SEC. 11. TRACKING LABELS FOR PRODUCTS FOR CHILDREN.

       (a) Labeling Requirement for Internet and Catalogue 
     Advertising of Certain Toys and Games.--Section 24 of the 
     Federal Hazardous Substances Act (15 U.S.C. 1278) is 
     amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Internet, Catalogue, and Other Advertising.--
       ``(1) Requirement.--
       ``(A) Cautionary statement.--Any advertisement posted by a 
     manufacturer, retailer, distributor, private labeler, or 
     licensor for any toy, game, balloon, small ball, or marble 
     that requires a cautionary statement under subsections (a) 
     and (b), including any advertisement on Internet websites or 
     in catalogues or other distributed materials, shall include 
     the appropriate cautionary statement required under such 
     subsections in its entirety displayed on or immediately 
     adjacent to such advertisement. A manufacturer, distributor, 
     private labeler, or licensor that uses a retailer to 
     advertise a product shall inform the retailer of any 
     cautionary statement that may apply to such products in any 
     communication to the retailer that contains information about 
     the products to be advertised. The requirement imposed by the 
     preceding sentence shall only apply to advertisements by the 
     retailer if the manufacturer, importer, distributor, private 
     labeler, or licensor affirmatively informs the retailer that 
     such cautionary statement is required for the product.
       ``(B) Display.--The cautionary statement described in 
     subparagraph (A) shall be prominently displayed--
       ``(i) in the primary language used in the advertisement, 
     catalogue, or Internet website;
       ``(ii) in conspicuous and legible type in contrast by 
     typography, layout, or color with other material printed or 
     displayed in such advertisement; and
       ``(iii) in a manner consistent with part 1500 of title 16, 
     Code of Federal Regulations.
       ``(C) Definitions.--In this paragraph, the terms 
     `manufacturer, retailer, distributor, private labeler, and 
     licensor'--
       ``(i) mean any individual who, by such individual's 
     occupation holds himself or herself out as having knowledge 
     or skill peculiar to consumer products, including any person 
     who is in the business of manufacturing, selling, 
     distributing, labeling, licensing, or otherwise placing in 
     the stream of commerce consumer products; but
       ``(ii) do not include an individual whose selling activity 
     is intermittent and does not constitute a trade or business.
       ``(2) Enforcement.--The requirement under paragraph (1) 
     shall be treated as a consumer product safety standard 
     promulgated under section 7 of the Consumer Product Safety 
     Act (15 U.S.C. 2056). The publication or distribution of any 
     advertisement that is not in compliance with paragraph (1) 
     shall be treated as a prohibited act under section 19 of such 
     Act (15 U.S.C. 2068).''.
       (b) Tracking Labels for Products for Children.--Section 
     14(a) of the Consumer Product Safety Act (15 U.S.C. 2063(a)), 
     as amended by section 10(a) of this Act, is further amended 
     by adding at the end thereof the following:
       ``(6) Effective 1 year after the date of enactment of the 
     CPSC Reform Act, the manufacturer of a children's product or 
     other consumer product (as may be required by the Commission 
     in its discretion after a rulemaking proceeding) shall place 
     distinguishing marks on the product and its packaging, to the 
     extent practicable, that will enable the ultimate purchaser 
     to ascertain the manufacturer, production time period, and 
     cohort (including the batch, run number, or other identifying 
     characteristic) of production of the product by reference to 
     those marks.''.
       (c) Advertising, Labeling, and Packaging Representation.--
     Section 14(c) (15 U.S.C. 2063(c)) is amended--
       (1) by striking ``(c) The'' and inserting ``(c)(1) The'';
       (2) by striking ``rule)--'' and inserting ``rule):'';
       (3) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C), respectively;
       (4) by indenting the sentence beginning ``Such labels'' and 
     inserting ``(2)'' before ``Such labels''; and
       (5) by adding at the end thereof the following:
       ``(4) If an advertisement, label, or package contains a 
     reference to a consumer product safety standard, a statement 
     with respect to whether the product meets all applicable 
     requirements of that standard.''.

     SEC. 12. SUBSTANTIAL PRODUCT HAZARD REPORTING REQUIREMENT.

       Section 15(b) (15 U.S.C. 2064(b)) is amended--
       (1) by striking ``consumer product distributed in 
     commerce,'' and inserting ``consumer product (or other 
     product or substance over which the Commission has 
     jurisdiction under this or any other Act) distributed in 
     commerce,'';
       (2) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (3) by inserting after paragraph (1) the following:
       ``(2) fails to comply with any rule or standard promulgated 
     by the Commission under this or any other Act;''.

     SEC. 13. CORRECTIVE ACTION PLANS.

       Section 15(d) (15 U.S.C. 2064(d)) is amended--
       (1) by inserting ``(1)'' after ``(d)'';
       (2) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C);
       (3) by striking ``more (A)'' in subparagraph (C), as 
     redesignated, and inserting ``more (i)'';
       (4) by striking ``or (B)'' in subparagraph (C), as 
     redesignated, and inserting ``or (ii)'';
       (5) by striking ``whichever of the following actions the 
     person to whom the order is directed elects:'' and inserting 
     ``any one or more of the following actions it determines to 
     be in the public interest:'';
       (6) by indenting the sentence beginning ``An order'' and 
     inserting ``(2)'' before ``An order'';
       (7) by striking ``satisfactory to the Commission,'' and 
     inserting ``for approval by the Commission,'';
       (8) by striking ``described in paragraph (3).'' and 
     inserting ``described in paragraph (1)(C).''; and
       (9) by adding at the end the following:
       ``(3)(A) If the Commission approves an action plan, it 
     shall indicate its approval in writing.
       ``(B) If the Commission finds that an approved action plan 
     is not effective, or that

[[Page 2398]]

     the manufacturer, retailer, or distributor is not executing 
     an approved action plan effectively, the Commission may by 
     order amend, or require amendment of, the action plan.
       ``(C) If the Commission determines, after notice and 
     opportunity for comment, that a manufacturer, retailer, or 
     distributor has failed to comply substantially with its 
     obligations under its action plan, the Commission may revoke 
     its approval of the action plan. The manufacturer, retailer, 
     or distributor to which the action plan applies may not 
     distribute the product to which the action plan relates in 
     commerce after receipt of notice of a revocation of the 
     action plan.''.

     SEC. 14. IDENTIFICATION OF MANUFACTURER BY IMPORTERS, 
                   RETAILERS, AND DISTRIBUTORS.

       Section 16 (15 U.S.C. 2065) is amended by adding at the end 
     thereof the following:
       ``(c) Upon request by an officer or employee duly 
     designated by the Commission--
       ``(1) every importer, retailer, or distributor of a 
     consumer product (or other product or substance over which 
     the Commission has jurisdiction under this or any other Act) 
     shall identify the manufacturer of that product by name, 
     address, or such other identifying information as the officer 
     or employee may request to the extent that the information is 
     known, or can be determined, by the importer, retailer, or 
     distributor; and
       ``(2) every manufacturer shall identify by name, address, 
     or such other identifying information as the officer or 
     employee may request--
       ``(A) each retailer or distributor to which it directly 
     supplied a given consumer product (or other product or 
     substance over which the Commission has jurisdiction under 
     this or any other Act);
       ``(B) each subcontractor involved in the production or 
     fabrication of such product or substance; and
       ``(C) each subcontractor from which it obtained a component 
     thereof.''.

     SEC. 15. PROHIBITED ACTS.

       (a) Sale of Recalled Products.--Section 19(a) (15 U.S.C. 
     2068(a)) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) sell, offer for sale, manufacture for sale, 
     distribute in commerce, or import into the United States any 
     consumer product, or other product or substance that is 
     regulated under this Act or any other Act enforced by the 
     Commission, that is--
       ``(A) not in conformity with an applicable consumer product 
     safety standard under this Act, or any similar rule under any 
     such other Act;
       ``(B) subject to voluntary corrective action taken by the 
     manufacturer, in consultation with the Commission, of which 
     action the Commission has notified the public, but only if 
     the seller, distributor, or manufacturer knew or should have 
     known of such voluntary corrective action; or
       ``(C) subject to an order issued under section 12 or 15 of 
     this Act, designated a banned hazardous substance under the 
     Federal Hazardous Substances Act (15 U.S.C. 1261 et seq.);'';
       (2) by striking ``or'' after the semicolon in paragraph 
     (7);
       (3) by striking ``and'' after the semicolon in paragraph 
     (8);
       (4) by striking ``insulation).'' in paragraph (9) and 
     inserting ``insulation);''; and
       (5) by striking ``18(b).'' in paragraph (10) and inserting 
     ``18(b); or''.
       (b) Export of Recalled Products.--
       (1) In general.--Section 18 (15 U.S.C. 2067) is amended by 
     adding at the end thereof the following:
       ``(c) Notwithstanding any other provision of law, the 
     Commission may prohibit a person from exporting from the 
     United States for purpose of sale any consumer product, or 
     other product or substance that is regulated under this Act 
     of any other Act enforced by the Commission, that the 
     Commission determines, after notice to the manufacturer--
       ``(1) is not in conformity with an applicable consumer 
     product safety standard under this Act or with a similar rule 
     under any such other Act and does not violate applicable 
     safety standards established by the importing country;
       ``(2) is subject to an order issued under section 12 or 15 
     of this Act or designated as a banned hazardous substance 
     under the Federal Hazardous Substances Act (15 U.S.C. 1261 et 
     seq.); or
       ``(3) is subject to voluntary corrective action taken by 
     the manufacturer, in consultation with the Commission, of 
     which action the Commission has notified the public and that 
     would have been subject to mandatory corrective action under 
     this Act or any other Act enforced by the Commission if 
     voluntary corrective action had not been taken by the 
     manufacturer, except that the Commission may permit such a 
     product to be exported if it meets applicable safety 
     standards established by the importing country.''.
       (2) Penalty.--Section 19(a) (15 U.S.C. 2068(a)), as amended 
     by subsection (a) of this section, is further amended--
       (A) by striking ``or'' after the semicolon in paragraph 
     (10);
       (B) by striking ``37.'' in paragraph (11) and inserting 
     ``37; or''; and
       (C) by adding at the end thereof the following:
       ``(12) violate an order of the Commission under section 
     18(c).''.
       (3) Conforming amendments to other acts.--
       (A) Federal hazardous substances act.--Section 5(b)(3) of 
     the Federal Hazardous Substances Act (15 U.S.C. 1264(b)(3)) 
     is amended by striking ``substance presents an unreasonable 
     risk of injury to persons residing in the United States,'' 
     and inserting ``substance is prohibited under section 18(c) 
     of the Consumer Product Safety Act,''.
       (B) Flammable fabrics act.--Section 15 of the Flammable 
     Fabrics Act (15 U.S.C. 1202) is amended by adding at the end 
     thereof the following:
       ``(d)(1) Notwithstanding any other provision of law, except 
     as provided in paragraph (2), the Consumer Product Safety 
     Commission may prohibit a person from exporting from the 
     United States for purpose of sale any fabric, related 
     material, or product that the Commission determines, after 
     notice to the manufacturer--
       ``(A) is not in conformity with an applicable consumer 
     product safety standard under the Consumer Product Safety Act 
     or with a rule under this Act;
       ``(B) is subject to an order issued under section 12 or 15 
     of the Consumer Product Safety Act or designated as a banned 
     hazardous substance under the Federal Hazardous Substances 
     Act (15 U.S.C. 1261 et seq.); or
       ``(C) is subject to voluntary corrective action taken by 
     the manufacturer, in consultation with the Commission, of 
     which action the Commission has notified the public and that 
     would have been subject to mandatory corrective action under 
     this or another Act enforced by the Commission if voluntary 
     corrective action had not been taken by the manufacturer.
       ``(2) The Commmission may permit the exportation of a 
     fabric, related material, or product described in paragraph 
     (1) if it meets applicable safety standards of the country to 
     which it is being exported.''.
       (c) False Certification of Compliance With Testing 
     Laboratory Standard.--Section 19(a) (15 U.S.C. 2068(a)), as 
     amended by subsection (b)(2) of this section, is further 
     amended--
       (1) by striking ``or'' after the semicolon in paragraph 
     (11);
       (2) by striking ``18(c).'' in paragraph (12) and inserting 
     ``18(c); or''; and
       (3) by adding at the end thereof the following:
       ``(13) sell, offer for sale, distribute in commerce, or 
     import into the United States any consumer product bearing a 
     registered safety certification mark owned by an accredited 
     conformity assessment body, which mark is known, or should 
     have been known, by such person to be used in a manner 
     unauthorized by the owner of that certification mark.''.
       (d) Misrepresentation of Information in Investigation.--
     Section 19(a) (15 U.S.C. 2068(a)), as amended by subsection 
     (c) of this section, is further amended--
       (1) by striking ``or'' after the semicolon in paragraph 
     (12);
       (2) by striking ``false.'' in paragraph (13) and inserting 
     ``false; or''; and
       (3) by adding at the end thereof the following:
       ``(14) misrepresent to any officer or employee of the 
     Commission the scope of consumer products subject to an 
     action required under section 12 or 15, or to make a material 
     misrepresentation to such an officer or employee in the 
     course of an investigation under this Act or any other Act 
     enforced by the Commission.''.
       (e) Certificates of Compliance With Mandatory Standards.--
     Section 19(a)(6) (15 U.S.C. 2068(a)(6)) is amended to read as 
     follows:
       ``(6) fail to furnish a certificate required by this Act or 
     any other Act enforced by the Commission, or to issue a false 
     certificate if such person in the exercise of due care has 
     reason to know that the certificate is false or misleading in 
     any material respect; or to fail to comply with any rule 
     under section 14(c);''.
       (f) Undue Influence on Third Party Laboratories.--Section 
     19(a) (15 U.S.C. 2068(a)), as amended by subsection (d) of 
     this section, is further amended--
       (1) by striking ``or'' after the semicolon in paragraph 
     (13);
       (2) by striking ``Commission.'' in paragraph (14) and 
     inserting ``Commission; or''; and
       (3) by adding at the end thereof the following:
       ``(15) exercise, or attempt to exercise, undue influence on 
     a third party laboratory (as defined in section 14(e)(2)) 
     with respect to the testing, or reporting of the results of 
     testing, of any product for compliance with a standard under 
     this Act or any other Act enforced by the Commission.''.

     SEC. 16. PENALTIES.

       (a) Civil Penalties.--
       (1) In general.--Section 20(a) (15 U.S.C. 2069(a)) is 
     amended--
       (A) by striking ``$5,000'' and inserting ``$250,000'';
       (B) by striking ``$1,250,000'' each place it appears and 
     inserting ``$20,000,000''; and
       (C) by striking ``December 1, 1994,'' in paragraph (3)(B) 
     and inserting ``December 1, 2011,''.
       (2) Federal hazardous substances act.--Section 5(c) of the 
     Federal Hazardous Substances Act (15 U.S.C. 1264(c)) is 
     amended--

[[Page 2399]]

       (A) by striking ``$5,000'' in paragraph (1) and inserting 
     ``$250,000'';
       (B) by striking ``$1,250,000'' each place it appears in 
     paragraph (1) and inserting ``$20,000,000''; and
       (C) by striking ``December 1, 1994,'' in paragraph (6)(B) 
     and inserting ``December 1, 2011,''.
       (3) Flammable fabrics act.--Section 5(e) of the Flammable 
     Fabrics Act (15 U.S.C. 1194(e)) is amended--
       (A) by striking ``$5,000'' in paragraph (1) and inserting 
     ``$250,000'';
       (B) by striking ``$1,250,000'' in paragraph (1) and 
     inserting ``$20,000,000''; and
       (C) by striking ``December 1, 1994,'' in paragraph (5)(B) 
     and inserting ``December 1, 2011,''.
       (4) Maximum penalty for certain violations.--Section 
     20(a)(1) (15 U.S.C. 2069(a)), section 5(c)(1) of the Federal 
     Hazardous Substances Act (15 U.S.C. 1264(c)), and section 
     5(e)(1) of the Flammable Fabrics Act (15 U.S.C. 1194(e)) are 
     each amended by inserting ``The Commission shall impose civil 
     penalties exceeding $10,000,000 under this paragraph only 
     when issuing a finding of aggravated circumstances.'' after 
     ``violations.''.
       (b) Criminal Penalties.--
       (1) In general.--Section 21(a) (15 U.S.C. 2070(a)) is 
     amended to read as follows:
       ``(a) Violation of section 19 of this Act is punishable 
     by--
       ``(1) imprisonment for not more than 5 years for a knowing 
     and willful violation of that section;
       ``(2) a fine determined under section 3571 of title 18, 
     United States Code; or
       ``(3) both.''.
       (2) Directors, officers, and agents.--Section 21(b) (15 
     U.S.C. 2070(b)) is amended by striking ``19, and who has 
     knowledge of notice of noncompliance received by the 
     corporation from the Commission,'' and inserting ``19''.
       (3) Under the federal hazardous substances act.--Section 
     5(a) of the Federal Hazardous Substances Act (15 U.S.C. 
     1264(a)) is amended by striking ``one year, or a fine of not 
     more than $3,000, or both such imprisonment and fine.'' and 
     inserting ``5 years, a fine determined under section 3571 of 
     title 18, United States Code, or both.''.
       (4) Under the flammable fabrics act.--Section 7 of the 
     Flammable Fabrics Act (15 U.S.C. 1196) is amended to read as 
     follows:


                              ``penalties

       ``Sec. 7. Violation of section 3 or 8(b) of this Act, or 
     failure to comply with section 15(c) of this Act, is 
     punishable by--
       ``(1) imprisonment for not more than 5 years for a knowing 
     and willful violation of that section;
       ``(2) a fine determined under section 3571 of title 18, 
     United States Code; or
       ``(3) both.''.
       (c) Civil Penalty Criteria.--Within 1 year after the date 
     of enactment of this Act, the Consumer Product Safety 
     Commission shall initiate a rulemaking in accordance with 
     section 553 of title 5, United States Code, to establish 
     criteria for the imposition of civil penalties under section 
     20 of the Consumer Product Safety Act (15 U.S.C. 2069) and 
     any other Act enforced by the Commission, including factors 
     to be considered in establishing the amount of such 
     penalties, such as repeat violations, the precedential value 
     of prior adjudicated penalties, the factors described in 
     section 20(b) of the Consumer Product Safety Act (15 U.S.C. 
     2069(b)), and other circumstances.
       (d) Criminal Penalties To Include Asset Forfeiture.--
     Section 21 (15 U.S.C. 2070) is amended by adding at the end 
     thereof the following:
       ``(c)(1) In addition to the penalties provided by 
     subsection (a), the penalty for a criminal violation of this 
     Act or any other Act enforced by the Commission may include 
     the forfeiture of assets associated with the violation.
       ``(2) In this subsection, the term `criminal violation' 
     means a violation of this Act or any other Act enforced by 
     the Commission for which the violator is sentenced to pay a 
     fine, be imprisoned, or both.''.

     SEC. 17. PREEMPTION.

       The provisions of sections 25 and 26 of the Consumer 
     Product Safety Act (15 U.S.C. 2074 and 2075, respectively)), 
     section 18 of the Federal Hazardous Substances Act (15 U.S.C. 
     1261 note), section 16 of the Flammable Fabrics Act (15 
     U.S.C. 1203), and section 7 of the Poison Packaging 
     Prevention Act of 1970 (15 U.S.C. 1476) establishing the 
     extent to which those Acts preempt, limit, or otherwise 
     affect any other Federal, State, or local law, any rule, 
     procedure, or regulation, or any cause of action under State 
     or local law may not be expanded or contracted in scope, or 
     limited, modified or extended in application, by any rule or 
     regulation thereunder, or by reference in any preamble, 
     statement of policy, executive branch statements, or other 
     matter associated with the publication of any such rule or 
     regulation.

     SEC. 18. SHARING OF INFORMATION WITH FEDERAL, STATE, LOCAL, 
                   AND FOREIGN GOVERNMENT AGENCIES.

       Section 29 (15 U.S.C. 2078) is amended by adding at the end 
     thereof the following:
       ``(f)(1) The Commission may make information obtained by 
     the Commission under section 6 available to any Federal, 
     State, local, or foreign government agency upon the prior 
     certification of an appropriate official of any such agency, 
     either by a prior agreement or memorandum of understanding 
     with the Commission or by other written certification, that 
     such material will be maintained in confidence and will be 
     used only for official law enforcement or consumer protection 
     purposes, if--
       ``(A) the agency has set forth a bona fide legal basis for 
     its authority to maintain the material in confidence;
       ``(B) the materials are to be used for purposes of 
     investigating, or engaging in enforcement proceedings related 
     to, possible violations of--
       ``(i) laws regulating the manufacture, importation, 
     distribution, or sale of defective or unsafe consumer 
     products, or other practices substantially similar to 
     practices prohibited by any law administered by the 
     Commission;
       ``(ii) a law administered by the Commission, if disclosure 
     of the material would further a Commission investigation or 
     enforcement proceeding; or
       ``(iii) with respect to a foreign law enforcement agency, 
     with the approval of the Attorney General, other foreign 
     criminal laws, if such foreign criminal laws are offenses 
     defined in or covered by a criminal mutual legal assistance 
     treaty in force between the government of the United States 
     and the foreign law enforcement agency's government; and
       ``(C) the foreign government agency is not from a foreign 
     state that the Secretary of State has determined, in 
     accordance with section 6(j) of the Export Administration Act 
     of 1979 (50 U.S.C. App. 2405(j)), has repeatedly provided 
     support for acts of international terrorism, unless and until 
     such determination is rescinded pursuant to section 6(j)(4) 
     of that Act (50 U.S.C. App. 2405(j)(4)).
       ``(2) Except as provided in paragraph (3) of this 
     subsection, the Commission shall not be required to disclose 
     under section 552 of title 5, United States Code, or any 
     other provision of law--
       ``(A) any material obtained from a foreign government 
     agency, if the foreign government agency has requested 
     confidential treatment, or has precluded such disclosure 
     under other use limitations, as a condition of providing the 
     material;
       ``(B) any material reflecting a consumer complaint obtained 
     from any other foreign source, if the foreign source 
     supplying the material has requested confidential treatment 
     as a condition of providing the material; or
       ``(C) any material reflecting a consumer complaint 
     submitted to a Commission reporting mechanism sponsored in 
     part by foreign government agencies.
       ``(3) Nothing in this subsection shall authorize the 
     Commission to withhold information from the Congress or 
     prevent the Commission from complying with an order of a 
     court of the United States in an action commenced by the 
     United States or the Commission.
       ``(4) The Commission may terminate a memorandum of 
     understanding or other agreement with another agency if it 
     determines that the other agency has not handled information 
     made available by the Commission under paragraph (1) or has 
     failed to maintain confidentiality with respect to the 
     information.
       ``(5) In this subsection, the term `foreign government 
     agency' means--
       ``(A) any agency or judicial authority of a foreign 
     government, including a foreign state, a political 
     subdivision of a foreign state, or a multinational 
     organization constituted by and comprised of foreign states, 
     that is vested with law enforcement or investigative 
     authority in civil, criminal, or administrative matters; and
       ``(B) any multinational organization, to the extent that it 
     is acting on behalf of an entity described in subparagraph 
     (A).''.

     SEC. 19. FINANCIAL RESPONSIBILITY.

       (a) In General.--The Act (15 U.S.C. 2051 et seq.) is 
     amended by adding at the end thereof the following:


                       ``financial responsibility

       ``Sec. 39. (a) The Commission, in a rulemaking proceeding, 
     may establish procedures to require the posting of an escrow, 
     proof of insurance, or security acceptable to the Commission 
     by--
       ``(1) a person that has committed multiple significant 
     violations of this Act or any rule or Act enforced by the 
     Commission;
       ``(2) the manufacturer or distributor of a category or 
     class of consumer products; or
       ``(3) the manufacturer or distributor of any consumer 
     product or any product or substance regulated under any other 
     Act enforced by the Commission.
       ``(b) Amount.--The escrow, proof of insurance, or security 
     required by the Commission under subsection (a) shall be in 
     an amount sufficient--
       ``(1) to cover the costs of an effective recall of the 
     product or substance; or
       ``(2) to cover the costs of holding the product and the 
     destruction of the product should such action be required by 
     the Commission under this Act or any other act enforced by 
     the Commission.''.
       (b) Conforming Amendments.--
       (1) The table of contents is amended by striking the item 
     relating to section 10 and inserting the following:

``Sec. 10. [Repealed].''.

[[Page 2400]]

       (2) The table of contents is amended by inserting after the 
     item relating to section 34 the following:

``Sec. 35. Interim cellulose insulation safety standard.
``Sec. 36. Congressional veto of consumer product safety rules.
``Sec. 37. Information reporting.
``Sec. 38. Low-speed electric bicycles.
``Sec. 39. Financial responsibility.''.

     SEC. 20. ENFORCEMENT BY STATE ATTORNEYS GENERAL.

       (a) In General.--The Act (15 U.S.C. 2051 et seq.) is 
     amended by inserting after section 26 the following:


                ``ENFORCEMENT BY STATE ATTORNEYS GENERAL

       ``Sec. 26A. (a) Except as provided in subsection (f), 
     whenever the attorney general of a State has reason to 
     believe that the interests of the residents of that State 
     have been, or are being, threatened or adversely affected by 
     a violation of any consumer product safety rule, regulation, 
     standard, certification or labeling requirement, or order 
     prescribed under this Act or any other Act enforced by the 
     Commission (including the sale of a voluntarily or 
     mandatorily recalled product or of a banned hazardous 
     substance or product), the State, as parens patriae, may 
     bring a civil action on behalf of its residents in an 
     appropriate district court of the United States to obtain 
     injunctive relief provided under such Act.
       ``(b) The State shall serve written notice to the 
     Commission of any civil action under subsection (a) at least 
     60 days prior to initiating such civil action. The notice 
     shall include a copy of the complaint to be filed to initiate 
     such civil action, except that if it is not feasible for the 
     State to provide such prior notice, the State shall provide 
     notice immediately upon instituting such civil action.
       ``(c) Upon receiving the notice required by subsection (b), 
     the Commission may intervene in such civil action and upon 
     intervening--
       ``(1) be heard on all matters arising in such civil action; 
     and
       ``(2) file petitions for appeal of a decision in such civil 
     action.
       ``(d) Nothing in this section shall prevent the attorney 
     general of a State from exercising the powers conferred on 
     the attorney general, or other authorized State officer, by 
     the laws of such State. Nothing in this section shall 
     prohibit the attorney general of a State, or other authorized 
     State officer, from proceeding in State or Federal court on 
     the basis of an alleged violation of any civil or criminal 
     statute of that State.
       ``(e) In a civil action brought under subsection (a)--
       ``(1) the venue shall be a judicial district in which--
       ``(A) the manufacturer, distributor, or retailer operates; 
     or
       ``(B) the manufacturer, distributor, or retailer is 
     authorized to do business;
       ``(2) process may be served without regard to the 
     territorial limits of the district or of the State in which 
     the civil action is instituted; and
       ``(3) a person who participated with a manufacturer, 
     distributor, or retailer in an alleged violation that is 
     being litigated in the civil action may be joined in the 
     civil action without regard to the residence of the person.
       ``(f) If the Commission has instituted a civil action or an 
     administrative action for violation of this Act or any other 
     Act enforced by the Commission, no State attorney general, or 
     other official or agency of a State, may bring an action 
     under this section during the pendency of that action against 
     any defendant named in the complaint of the Commission for 
     any violation of this Act alleged in the complaint.
       ``(g) If the attorney general of the State prevails in any 
     civil action under subsection (a), it can recover reasonable 
     costs and attorney fees from the manufacturer, distributor, 
     or retailer.''.
       (b) Conforming Amendment.--The table of contents is amended 
     by inserting after the item relating to section 26 the 
     following:

``Sec. 26A. Enforcement by state attorneys general.''.

     SEC. 21. WHISTLEBLOWER PROTECTIONS.

       (a) In General.--The Act (15 U.S.C. 2051 et seq.), as 
     amended by section 19, is further amended by adding at the 
     end the following:


                       ``WHISTLEBLOWER PROTECTION

       ``Sec. 40. (a) No manufacturer, private labeler, 
     distributor, or retailer, nor any Federal, State, or local 
     government agency, may discharge an employee or otherwise 
     discriminate against an employee with respect to 
     compensation, terms, conditions, or privileges of employment 
     because the employee, whether at the employee's initiative or 
     in the ordinary course of the employee's duties (or any 
     person acting pursuant to a request of the employee)--
       ``(1) provided, caused to be provided, or is about to 
     provide or cause to be provided to the employer, the Federal 
     Government, or the attorney general of a State information 
     relating to any violation of, or any act or omission the 
     employee reasonably believes to be a violation of an order, 
     regulation, rule, or other provision of this Act or any other 
     Act enforced by the Commission;
       ``(2) testified or is about to testify in a proceeding 
     concerning such violation;
       ``(3) assisted or participated or is about to assist or 
     participate in such a proceeding; or
       ``(4) objected to, or refused to participate in, any 
     activity, policy, practice, or assigned task that the 
     employee (or other such person) reasonably believed to be in 
     violation of an order, regulation, rule, or other provision 
     of this Act or any other Act enforced by the Commission.
       ``(b)(1) A person who believes that he or she has been 
     discharged or otherwise discriminated against by any person 
     in violation of subsection (a) may, not later than 180 days 
     after the date on which such violation occurs, file (or have 
     any person file on his or her behalf) a complaint with the 
     Secretary of Labor alleging such discharge or discrimination 
     and identifying the person responsible for such act. Upon 
     receipt of such a complaint, the Secretary shall notify, in 
     writing, the person named in the complaint of the filing of 
     the complaint, of the allegations contained in the complaint, 
     of the substance of evidence supporting the complaint, and of 
     the opportunities that will be afforded to such person under 
     paragraph (2).
       ``(2)(A) Not later than 60 days after the date of receipt 
     of a complaint filed under paragraph (1) and after affording 
     the complainant and the person named in the complaint an 
     opportunity to submit to the Secretary a written response to 
     the complaint and an opportunity to meet with a 
     representative of the Secretary to present statements from 
     witnesses, the Secretary shall initiate an investigation and 
     determine whether there is reasonable cause to believe that 
     the complaint has merit and notify, in writing, the 
     complainant and the person alleged to have committed a 
     violation of subsection (a) of the Secretary's findings. If 
     the Secretary concludes that there is reasonable cause to 
     believe that a violation of subsection (a) has occurred, the 
     Secretary shall accompany the Secretary's findings with a 
     preliminary order providing the relief prescribed by 
     paragraph (3)(B). Not later than 30 days after the date of 
     notification of findings under this paragraph, either the 
     person alleged to have committed the violation or the 
     complainant may file objections to the findings or 
     preliminary order, or both, and request a hearing on the 
     record. The filing of such objections shall not operate to 
     stay any reinstatement remedy contained in the preliminary 
     order. Any such hearing shall be conducted expeditiously. If 
     a hearing is not requested in such 30-day period, the 
     preliminary order shall be deemed a final order that is not 
     subject to judicial review.
       ``(B)(i) The Secretary shall dismiss a complaint filed 
     under this subsection and shall not conduct an investigation 
     otherwise required under subparagraph (A) unless the 
     complainant makes a prima facie showing that any behavior 
     described in paragraphs (1) through (4) of subsection (a) was 
     a contributing factor in the unfavorable personnel action 
     alleged in the complaint.
       ``(ii) Notwithstanding a finding by the Secretary that the 
     complainant has made the showing required under clause (i), 
     no investigation otherwise required under subparagraph (A) 
     shall be conducted if the employer demonstrates, by clear and 
     convincing evidence, that the employer would have taken the 
     same unfavorable personnel action in the absence of that 
     behavior.
       ``(iii) The Secretary may determine that a violation of 
     subsection (a) has occurred only if the complainant 
     demonstrates that any behavior described in paragraphs (1) 
     through (4) of subsection (a) was a contributing factor in 
     the unfavorable personnel action alleged in the complaint.
       ``(iv) Relief may not be ordered under subparagraph (A) if 
     the employer demonstrates by clear and convincing evidence 
     that the employer would have taken the same unfavorable 
     personnel action in the absence of that behavior.
       ``(3)(A) Not later than 120 days after the date of 
     conclusion of any hearing under paragraph (2), the Secretary 
     shall issue a final order providing the relief prescribed by 
     this paragraph or denying the complaint. At any time before 
     issuance of a final order, a proceeding under this subsection 
     may be terminated on the basis of a settlement agreement 
     entered into by the Secretary, the complainant, and the 
     person alleged to have committed the violation.
       ``(B) If, in response to a complaint filed under paragraph 
     (1), the Secretary determines that a violation of subsection 
     (a) has occurred, the Secretary shall order the person who 
     committed such violation--
       ``(i) to take affirmative action to abate the violation;
       ``(ii) to reinstate the complainant to his or her former 
     position together with compensation (including back pay) and 
     restore the terms, conditions, and privileges associated with 
     his or her employment; and
       ``(iii) to provide compensatory damages to the complainant.

       If such an order is issued under this paragraph, the 
     Secretary, at the request of the complainant, shall assess 
     against the person against whom the order is issued a sum 
     equal to the aggregate amount of all costs and expenses 
     (including attorneys' and expert witness fees) reasonably 
     incurred, as determined by the Secretary, by the complainant 
     for, or in connection with, the bringing of the complaint 
     upon which the order was issued.

[[Page 2401]]

       ``(C) If the Secretary finds that a complaint under 
     paragraph (1) is frivolous or has been brought in bad faith, 
     the Secretary may award to the prevailing employer a 
     reasonable attorneys' fee, not exceeding $1,000, to be paid 
     by the complainant.
       ``(4) If the Secretary has not issued a final decision 
     within 210 days after the filing of the complaint, or within 
     90 days after receiving a written determination, the 
     complainant may bring an action at law or equity for review 
     in the appropriate district court of the United States with 
     jurisdiction, which shall have jurisdiction over such an 
     action without regard to the amount in controversy, and which 
     action shall, at the request of either party to such action, 
     be tried by the court with a jury. The proceedings shall be 
     governed by the same legal burdens of proof specified in 
     paragraph (2)(B). The court shall have jurisdiction to grant 
     all appropriate relief to the employee available by law or 
     equity, including injunctive relief, compensatory and 
     consequential damages, reasonable attorneys and expert 
     witness fees, court costs, and punitive damages up to 
     $250,000.
       ``(5)(A) Any person adversely affected or aggrieved by a 
     final order issued under paragraph (3) may obtain review of 
     the order in the United States Court of Appeals for the 
     circuit in which the violation, with respect to which the 
     order was issued, allegedly occurred or the circuit in which 
     the complainant resided on the date of such violation. The 
     petition for review must be filed not later than 60 days 
     after the date of the issuance of the final order of the 
     Secretary. Review shall conform to chapter 7 of title 5, 
     United States Code. The commencement of proceedings under 
     this subparagraph shall not, unless ordered by the court, 
     operate as a stay of the order.
       ``(B) An order of the Secretary with respect to which 
     review could have been obtained under subparagraph (A) shall 
     not be subject to judicial review in any criminal or other 
     civil proceeding.
       ``(6) Whenever any person has failed to comply with an 
     order issued under paragraph (3), the Secretary may file a 
     civil action in the United States district court for the 
     district in which the violation was found to occur, or in the 
     United States district court for the District of Columbia, to 
     enforce such order. In actions brought under this paragraph, 
     the district courts shall have jurisdiction to grant all 
     appropriate relief including, but not limited to, injunctive 
     relief and compensatory damages.
       ``(7)(A) A person on whose behalf an order was issued under 
     paragraph (3) may commence a civil action against the person 
     to whom such order was issued to require compliance with such 
     order. The appropriate United States district court shall 
     have jurisdiction, without regard to the amount in 
     controversy or the citizenship of the parties, to enforce 
     such order.
       ``(B) The court, in issuing any final order under this 
     paragraph, may award costs of litigation (including 
     reasonable attorneys' and expert witness fees) to any party 
     whenever the court determines such award is appropriate.
       ``(c) Any nondiscretionary duty imposed by this section 
     shall be enforceable in a mandamus proceeding brought under 
     section 1361 of title 28, United States Code.
       ``(d) Subsection (a) shall not apply with respect to an 
     employee of a manufacturer, private labeler, distributor, or 
     retailer who, acting without direction from such 
     manufacturer, private labeler, distributor, or retailer (or 
     such person's agent), deliberately causes a violation of any 
     requirement relating to any violation or alleged violation of 
     any order, regulation, or consumer product safety standard 
     under this Act or any other law enforced by the 
     Commission.''.
       (b) Conforming Amendment.--The table of contents, as 
     amended by section 19 of this Act, is further amended by 
     inserting after the item relating to section 39 the 
     following:

``Sec. 40. Whistleblower protection.''.

     SEC. 22. BAN ON CHILDREN'S PRODUCTS CONTAINING LEAD; LEAD 
                   PAINT RULE.

       (a) In General.--Beginning on the date that is 1 year after 
     the date of enactment of this Act, any children's product (as 
     defined in section 14(e) of the Consumer Product Safety Act 
     (15 U.S.C. 2063(e))) that contains lead shall be treated as a 
     banned hazardous substance under the Federal Hazardous 
     Substances Act (15 U.S.C. 1261 et seq.).
       (b) Trace Amounts of Lead.--
       (1) Initial standard.--For purposes of subsection (a), a 
     children's product shall be considered to contain lead if any 
     part of the product contains lead or lead compounds and the 
     lead content of such part (calculated as lead metal) is 
     greater than 0.03 percent by weight of the total weight of 
     such part (or such lesser amount as may be established by the 
     Commission by regulation).
       (2) Reduced threshold.--
       (A) In general.--Beginning on the date that is 3 years 
     after the date of enactment of this Act, paragraph (1) shall 
     be applied by substituting ``0.01 percent'' for ``0.03 
     percent'' unless the Consumer Product Safety Commission 
     determines that a standard of 0.01 percent is not 
     technologically feasible. The Commission may make such a 
     determination only after notice and a hearing and after 
     analyzing the public health protections associated with 
     substantially reducing lead in children's products.
       (B) Alternative reduction.--If the Commission determines 
     under subparagraph (A) that the 0.01 percent standard is not 
     technologically feasible, the Commission shall, by 
     regulation, establish a lesser amount that is the lowest 
     amount of lead, lower than 0.03 percent by weight, the 
     Commission determines to be technologically feasible to 
     achieve. The amount of lead established by the Commission 
     under the preceding sentence shall be substituted for the 
     0.03 percent standard under paragraph (1) beginning on the 
     date that is 3 years after the date of enactment of this Act.
       (c) Exceptions.--
       (1) Inaccessible components.--After notice and a hearing, 
     the Commission may determine that subsection (a) does not 
     apply to a component of a children's product that is not 
     accessible to a child because it is not physically exposed by 
     reason of a sealed covering or casing and will not become 
     physically exposed through normal and reasonably foreseeable 
     use and abuse of the product. In making its determination 
     under this paragraph, the Commission may not consider paint, 
     coatings, or electroplating to be a barrier that would render 
     lead in the substrate inaccessible to a child through normal 
     and reasonably foreseeable use and abuse of the product.
       (2) Electronics.--If the Commission determines that it is 
     not feasible for certain electronic devices, including 
     batteries, to comply with subsection (a) at the time the 
     regulations take effect, the Commission shall, by 
     regulation--
       (A) issue standards to reduce the exposure of and 
     accessibility to lead in such electronic devices; and
       (B) establish a schedule by which such electronic devices 
     shall be in full compliance with the regulations prescribed 
     under subsection (a).
       (d) Regulations.--Notwithstanding the provisions of 
     subsection (b), the Commission may by regulation establish 
     such lower thresholds for lead content in children's products 
     than those set forth in subsection (b) as the Commission 
     finds to be technologically feasible.
       (e) Paint Standard for All Products.--Effective on the date 
     that is 1 year after the date of enactment of this Act, the 
     Consumer Product Safety Commission shall modify section 
     1303.1 of its regulations (16 C.F.R. 1303.1) by substituting 
     ``0.009 percent'' for ``0.06 percent'' in subsection (a) of 
     that section.
       (f) Application With ASTM F963.--To the extent that any 
     standard or rule promulgated by the Consumer Product Safety 
     Commission under this section (or any section of the Consumer 
     Product Safety Act or any other Act enforced by the 
     Commission, as such Acts are affected by this section) is 
     inconsistent with the ASTM F963 standard, such promulgated 
     standard or rule shall supersede the ASTM F963 standard to 
     the extent of the inconsistency.

     SEC. 23. ALTERNATIVE MEASURES OF LEAD CONTENT.

       The Consumer Product Safety Commission, in cooperation with 
     the National Academy of Sciences and the National Institute 
     of Standards and Technology, shall study the feasibility of 
     establishing a measurement standard based on a units-of-mass-
     per-area standard (similar to existing measurement standards 
     used by the Department of Housing and Urban Development and 
     the Environmental Protection Agency to measure for metals in 
     household paint and soil, respectively) that is statistically 
     comparable to the parts-per-million measurement standard 
     currently used in laboratory analysis.

     SEC. 24. STUDY OF PREVENTABLE INJURIES AND DEATHS OF MINORITY 
                   CHILDREN RELATED TO CERTAIN CONSUMER PRODUCTS.

       (a) In General.--Within 90 days after the date of enactment 
     of this Act, the Government Accountability Office shall 
     initiate a study to assess disparities in the risks and 
     incidence of preventable injuries and deaths among children 
     of minority populations, including Black, Hispanic, American 
     Indian, Alaskan Native, and Asian/Pacific Islander children 
     in the United States.
       (b) Requirements.--The study shall examine the racial 
     disparities of the rates of preventable injuries and deaths 
     related to suffocation, poisonings, and drowning including 
     those associated with the use of cribs, mattresses and 
     bedding materials, swimming pools and spas, and toys and 
     other products intended for use by children.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Commission shall report its 
     findings to the Senate Commerce, Science, and Transportation 
     Committee and the House of Representatives Energy and 
     Commerce Committee. The report shall include--
       (1) the Commission's findings on the incidence of 
     preventable risks of injury and death among children of 
     minority populations and recommendations for minimizing such 
     increased risks;
       (2) recommendations for public outreach, awareness, and 
     prevention campaigns specifically aimed at racial minority 
     populations; and
       (3) recommendations for education initiatives that may 
     reduce current statistical disparities.

[[Page 2402]]

       (d) Authorization.--There are authorized to be appropriated 
     to the Commission $500,000 for purposes of carrying out this 
     section for fiscal year 2009.

     SEC. 25. COST-BENEFIT ANALYSIS UNDER THE POISON PREVENTION 
                   PACKAGING ACT OF 1970.

       Section 3 of the Poison Prevention Packaging Act of 1970 
     (15 U.S.C. 1472) is amended by adding at the end thereof the 
     following:
       ``(e) Nothing in this Act shall be construed to require the 
     Secretary, in establishing a standard under this section, to 
     prepare a comparison of the costs that would be incurred in 
     complying with such standard with the benefits of such 
     standard.''.

     SEC. 26. INSPECTOR GENERAL REPORTS.

       (a) Implementation by the Commission.--
       (1) In general.--The Inspector General of the Consumer 
     Product Safety Commission shall conduct reviews and audits of 
     implementation of the Consumer Product Safety Act by the 
     Commission, including--
       (A) an assessment of the ability of the Commission to 
     enforce subsections (a)(2) and (d) of section 14 of the Act 
     (15 U.S.C. 2063), as amended by section 10 of this Act, 
     including the ability of the Commission to enforce the 
     prohibition on imports of children's products without third 
     party testing certification under section 17(a)(6) of the Act 
     (15 U.S.C. 2066)(a)(6), as added by section 10 of this Act;
       (B) an assessment of the ability of the Commission to 
     enforce section 14(a)(6) of the Act (15 U.S.C. 2063(a)(6)), 
     as added by section 11 of this Act, and section 16(c) of the 
     Act, as added by section 14 of this Act; and
       (C) an audit of the Commission's capital improvement 
     efforts, including construction of a new testing facility.
       (2) Annual report.--The Inspector General shall submit an 
     annual report, setting forth the Inspector General's 
     findings, conclusions, and recommendations from the reviews 
     and audits under paragraph (1), for each of fiscal years 2009 
     through 2015 to the Commission, the Senate Committee on 
     Commerce, Science, and Transportation, and the House of 
     Representatives Committee on Energy and Commerce.
       (b) Employee Complaints.--
       (1) In general.--Within 1 year after the date of enactment 
     of this Act, the Inspector General shall conduct a review 
     of--
       (A) complaints received by the Inspector General from 
     employees of the Commission about violations of rules or 
     regulations of the Consumer Product Safety Act or any other 
     Act enforced by the Commission; and
       (B) the process by which corrective action plans are 
     negotiated with such employees by the Commission, including 
     an assessment of the length of time for these negotiations 
     and the effectiveness of the plans.
       (2) Report.--The Inspector General shall submit a report, 
     setting forth the Inspector General's findings, conclusions, 
     and recommendations, to the Commission, the Senate Committee 
     on Commerce, Science, and Transportation, and the House of 
     Representatives Committee on Energy and Commerce.
       (c) Leaks.--
       (1) In general.--Within 1 year after the date of enactment 
     of this Act, the Inspector General shall--
       (A) conduct a review of whether, and to what extent, there 
     have been unauthorized and unlawful disclosures of 
     information by Members, officers, or employees of the 
     Commission to persons not authorized to receive such 
     information; and
       (B) to the extent that such unauthorized and unlawful 
     disclosures have occurred, determine--
       (i) what class or kind of information was most frequently 
     involved in such disclosures; and
       (ii) how frequently such disclosures have occurred.
       (2) Report.--The Inspector General shall submit a report, 
     setting forth the Inspector General's findings, conclusions, 
     and recommendations, to the Commission, the Senate Committee 
     on Commerce, Science, and Transportation, and the House of 
     Representatives Committee on Energy and Commerce.

     SEC. 27. PUBLIC INTERNET WEBSITE LINKS.

       Not later than 30 days after the date of enactment of this 
     Act, the Consumer Product Safety Commission shall establish 
     and maintain--
       (1) a direct link on the homepage of its Internet website 
     to the Internet website of the Commission's Office of 
     Inspector General; and
       (2) a mechanism on the homepage of the Office of Inspector 
     General's Internet website by which individuals may 
     anonymously report cases of waste, fraud, or abuse with 
     respect to the Commission.

     SEC. 28. CHILD-RESISTANT PORTABLE GASOLINE CONTAINERS.

       (a) Consumer Product Safety Rule.--
       (1) Establishment.--There is established, as a consumer 
     product safety rule promulgated by the Commission in 
     accordance with section 9 of the Consumer Product Safety Act 
     (15 U.S.C. 2058), a requirement that each portable gasoline 
     container for sale in the United States shall conform to the 
     child-resistance requirements for closures on portable 
     gasoline containers specified in the standard ASTM F2517-05, 
     issued by ASTM International.
       (b) Revision of Rule.--
       (1) In general.--Except as provided in paragraph (2), if, 
     after the date of the enactment of this Act, ASTM 
     International proposes to revise the child resistance 
     requirements of ASTM F2517-05--
       (A) ASTM International shall notify the Commission of the 
     proposed revision; and
       (B) the proposed revision shall be incorporated in the 
     consumer product safety rule established by subsection (a).
       (2) Exception.--If, not later than 60 days after the date 
     of the notice described in paragraph (1)(A), the Commission 
     notifies ASTM International that the Commission has 
     determined that such revision is inconsistent with subsection 
     (a), the requirement of paragraph (1)(B) shall not apply.
       (c) Implementing Regulations.--With respect to the 
     promulgation of any regulations by the Commission to 
     implement the requirements of this section--
       (1) section 553 of title 5, United States Code, shall 
     apply; and
       (2) sections 7 and 9 of the Consumer Product Safety Act (15 
     U.S.C. 2056 and 2058) shall not apply.
       (d) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Commission shall submit to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Energy and Commerce 
     a report on--
       (1) the degree of industry compliance with the consumer 
     product safety rule established by subsection (a);
       (2) any enforcement actions brought by the Commission to 
     enforce such rule; and
       (3) incidents involving children interacting with portable 
     gasoline containers (including both those that are and are 
     not in compliance with the rule established by subsection 
     (a)).
       (e) Definitions.--In this section:
       (1) Commission.--The term ``Commission'' means the Consumer 
     Product Safety Commission.
       (2) Portable gasoline container.--The term ``portable 
     gasoline container'' means any portable gasoline container 
     intended for use by consumers.
       (f) Effective Date.--The rule established by subsection (a) 
     shall apply to portable gasoline containers manufactured on 
     or after the date that is 6 months after the date of 
     enactment of this Act.

     SEC. 29. TOY SAFETY STANDARD.

       (a) In General.--Beginning 60 days after the date of 
     enactment of this Act, ASTM-International Standard F963-07, 
     Consumer Safety Specifications for Toy Safety, as it exists 
     on the date of enactment of this Act shall be considered to 
     be a consumer product safety rule issued by the Consumer 
     Product Safety Commission under section 9 of the Consumer 
     Product Safety Act (15 U.S.C. 2058).
       (b) Revisions.--If more than 60 days after the date of 
     enactment of this Act, ASTM-International proposes to revise 
     Standard F963-07, Consumer Safety Specifications for Toy 
     Safety, or a successor standard, it shall notify the 
     Commission of the proposed revision and the proposed revision 
     shall be incorporated in the consumer product safety rule. 
     The revised standard shall be considered to be a consumer 
     product safety rule issued by the Consumer Product Safety 
     Commission under section 9 of the Consumer Product Safety Act 
     (15 U.S.C. 2058), effective 30 days after the date on which 
     ASTM-International notifies the Commission of the revision 
     unless, within 60 days after receiving that notice, the 
     Commission notifies ASTM-International that it has determined 
     that the proposed revision does not improve the safety of the 
     consumer product covered by the standard. If the Commission 
     so notifies ASTM-International with respect to a proposed 
     revision of the standard, the existing standard shall 
     continue to be considered to be a consumer product safety 
     rule without regard to the proposed revision.

     SEC. 30. ALL-TERRAIN VEHICLE SAFETY STANDARD.

       (a) In General.--The Act (15 U.S.C. 2051 et seq.), as 
     amended by section 21 of this Act, is further amended by 
     adding at the end thereof the following:


                 ``ALL-TERRAIN VEHICLE SAFETY STANDARD

       ``Sec. 41. (a) In General.--
       ``(1) Mandatory standard.--Notwithstanding any other 
     provision of law, within 90 days after the date of enactment 
     of the CPSC Reform Act the Commission shall publish in the 
     Federal Register as a mandatory consumer product safety 
     standard the American National Standard for Four Wheel All-
     Terrain Vehicles Equipment Configuration, and Performance 
     Requirements developed by the Specialty Vehicle Institute of 
     America (American National Standard ANSI/SVIA-1-2007). The 
     standard shall take effect 150 days after it is published.
       ``(2) Compliance with standard.--After the standard takes 
     effect, it shall be unlawful for any manufacturer or 
     distributor to import into or distribute in commerce in the 
     United States any new assembled or unassembled all-terrain 
     vehicle unless--
       ``(A) the vehicle complies with each applicable provision 
     of the standard;
       ``(B) the vehicle is subject to an ATV action plan filed 
     with the Commission before the date of enactment of the CPSC 
     Reform Act, or subsequently filed with and approved by the 
     Commission, and bears a label certifying such compliance and 
     identifying the

[[Page 2403]]

     manufacturer, importer or private labeler and the ATV action 
     plan to which it is subject; and
       ``(C) the manufacturer or distributor is in compliance with 
     all provisions of the applicable ATV action plan.
       ``(3) Violation.--The failure to comply with any 
     requirement of paragraph (2) shall be deemed to be a failure 
     to comply with a consumer product safety rule under this Act 
     and subject to all of the penalties and remedies available 
     under this Act.
       ``(4) Compliant models with additional features.--Paragraph 
     (2) shall not be construed to prohibit the distribution in 
     interstate commerce of new all-terrain vehicles that comply 
     with the requirements of that paragraph but also incorporate 
     characteristics or components that are not covered by those 
     requirements. Any such characteristics or components shall be 
     subject to the requirements of section 15 of this Act.
       ``(b) Modification of All-Terrain Vehicle Safety 
     Standard.--
       ``(1) ANSI revisions.--If the American National Standard 
     ANSI/SVIA-1-2007 is revised through the applicable consensus 
     standards development process after the date on which the 
     product safety standard for all-terrain vehicles is published 
     in the Federal Register, the American National Standards 
     Institute shall notify the Commission of the revision.
       ``(2) Commission action.--Within 120 days after it receives 
     notice of such a revision by the American National Standards 
     Institute, the Commission shall issue a notice of proposed 
     rulemaking in accordance with section 553 of title 5, United 
     States Code, to amend the product safety standard for all-
     terrain vehicles to include any such revision that the 
     Commission determines is reasonably related to the safe 
     performance of all-terrain vehicles, and notify the Institute 
     of any provision it has determined not to be so related. The 
     Commission shall promulgate an amendment to the standard for 
     all-terrain vehicles within 180 days after the date on which 
     the notice of proposed rulemaking for the amendment is 
     published in the Federal Register.
       ``(3) Unreasonable risk of injury.--Notwithstanding any 
     other provision of this Act, the Commission may, pursuant to 
     sections 7 and 9 of this Act, amend the product safety 
     standard for all-terrain vehicles to include any additional 
     provision that the Commission determines is reasonably 
     necessary to reduce an unreasonable risk of injury associated 
     with the performance of all-terrain vehicles.
       ``(4) Certain provisions not applicable.--Sections 7, 9, 
     11, and 30(d) of this Act shall not apply to promulgation of 
     any amendment of the product safety standard under paragraph 
     (2). Judicial review of any amendment of the standard under 
     paragraph (2) shall be in accordance with chapter 7 of title 
     5, United States Code.
       ``(c) Requirements for 3-Wheeled All-Terrain Vehicles.--
     Until a mandatory consumer product safety rule applicable to 
     3-wheeled all-terrain vehicles promulgated pursuant to this 
     Act is in effect, new 3-wheeled all-terrain vehicles may not 
     be imported into or distributed in commerce in the United 
     States. Any violation of this subsection shall be considered 
     to be a violation of section 19(a)(1) of this Act and may 
     also be enforced under section 17 of this Act.
       ``(d) Further Proceedings.--
       ``(1) Deadline.--The Commission shall issue a final rule in 
     its proceeding entitled `Standards for All Terrain Vehicles 
     and Ban of Three-wheeled All Terrain Vehicles'.
       ``(2) Categories of youth atvs.--In the final rule, the 
     Commission may provide for a multiple factor method of 
     categorization that, at a minimum, takes into account--
       ``(A) the weight of the vehicle;
       ``(B) the maximum speed of the vehicle;
       ``(C) the velocity at which a vehicle of a given weight is 
     traveling at the maximum speed of the vehicle;
       ``(D) the age of children for whose operation the vehicle 
     is designed or who may reasonably be expected to operate the 
     vehicle; and
       ``(E) the average weight of children for whose operation 
     the vehicle is designed or who may reasonably be expected to 
     operate the vehicle.
       ``(e) Definitions.--In this section:
       ``(1) All-terrain vehicle or atv.--The term `all-terrain 
     vehicle' or `ATV' means--
       ``(A) any motorized, off-highway vehicle designed to travel 
     on 3 or 4 wheels, having a seat designed to be straddled by 
     the operator and handlebars for steering control; but
       ``(B) does not include a prototype of a motorized, off-
     highway, all-terrain vehicle or other motorized, off-highway, 
     all-terrain vehicle that is intended exclusively for research 
     and development purposes unless the vehicle is offered for 
     sale.
       ``(2) ATV action plan.--The term `ATV action plan' means a 
     written plan or letter of undertaking that describes actions 
     the manufacturer or distributor agrees to take to promote ATV 
     safety, including rider training, dissemination of safety 
     information, age recommendations, other policies governing 
     marketing and sale of the vehicles, the monitoring of such 
     sales, and other safety related measures, and that is 
     substantially similar to the plans described under the 
     heading The Undertakings of the Companies in the Commission 
     Notice published in the Federal Register on September 9, 1998 
     (63 FR 48199-48204).''.
       (b) GAO Study.--The Comptroller General shall conduct a 
     study of the utility, recreational, and other benefits of 
     all-terrain vehicles to which section 38 of the Consumer 
     Product Safety Act (15 U.S.C. 2085) applies, and the costs 
     associated with all-terrain vehicle-related accidents and 
     injuries.
       (c) Conforming Amendment.--The table of contents, as 
     amended by section 21 of this Act, is further amended by 
     inserting after the item relating to section 40 the 
     following:

``Sec. 41. All-terrain vehicle safety standard.''.
       (d) Effective Date.--The amendment made by subsection (a) 
     shall take effect 90 days after the date of enactment of this 
     Act.

     SEC. 31. GARAGE DOOR OPENER STANDARD.

       Notwithstanding section 203(b) of the Consumer Product 
     Safety Improvement Act of 1990 (15 U.S.C. 2056 note) or any 
     amendment by the American National Standards Institute and 
     Underwriters Laboratories, Inc. of its Standards for Safety-
     UL 325, all automatic garage door openers that directly drive 
     the door in the closing direction that are manufactured more 
     than 6 months after the date of enactment of this Act shall 
     include an external secondary entrapment protection device 
     that does not require contact with a person or object for the 
     garage door to reverse.

     SEC. 32. REDUCING DEATHS AND INJURIES FROM CARBON MONOXIDE 
                   POISONING.

       (a) In General.--The Consumer Product Safety Commission 
     shall issue a final rule in its proceeding entitled 
     ``Portable Generators'' for which the Commission issued an 
     advance notice of proposed rulemaking on December 12, 2006 
     (71 Fed. Reg. 74472), no later than 18 months after the date 
     of enactment of this Act.
       (b) Report.--Not later than 120 days after the date of 
     enactment of this Act, the Consumer Product Safety Commission 
     shall submit a report to the Senate Committee on Commerce, 
     Science, and Transportation that--
       (1) reviews the effectiveness of its labeling requirements 
     for charcoal briquettes (16 C.F.R. 1500.14(b)(6)) during the 
     windstorm that struck the Pacific Northwest beginning on 
     December 14, 2006;
       (2) identifies any specific challenges faced by non-English 
     speaking populations with use of the current standards; and
       (3) contains recommendations for improving the labels on 
     charcoal briquettes.

     SEC. 33. COMPLETION OF CIGARETTE LIGHTER RULEMAKING.

       The Consumer Product Safety Commission shall issue a final 
     rule mandating general safety standards for cigarette 
     lighters in its proceedings entitled ``Safety Standard for 
     cigarette Lighters'' for which the Commission issued an 
     advance notice of proposed rulemaking on April 11, 2005 (68 
     Fed. Reg. 11339) no later than 24 months after the date of 
     enactment of this Act.

     SEC. 34. CONSUMER PRODUCT REGISTRATION FORMS.

       (a) Consumer Product Registration Forms.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Commission shall, pursuant to its 
     authority under section 16(b) of the Consumer Product Safety 
     Act (15 U.S.C. 2065(b)), promulgate final consumer product 
     safety rules that require manufacturers of durable infant or 
     toddler products--
       (A) in accordance with paragraph (2), to provide consumers 
     with postage-paid consumer registration forms with each such 
     product;
       (B) in accordance with paragraph (5), to maintain a record 
     of the names, addresses, e-mail addresses, and other contact 
     information of consumers who register their ownership of such 
     products with the manufacturer in order to improve the 
     effectiveness of manufacturer campaigns to recall such 
     products; and
       (C) to place permanently the manufacturer name and contact 
     information, model name and number, and the date of 
     manufacture on each durable infant or toddler product.
       (2) Requirements for registration forms.--
       (A) In general.--The registration forms required by 
     paragraph (1)(A) shall provide space sufficiently large to 
     permit easy, legible recording of the information specified 
     in subparagraph (B)(i).
       (B) Elements.--Such forms shall include the following:
       (i) Spaces for a consumer to provide the following:
       (I) The consumer's name.
       (II) The consumer's postal address.
       (III) The consumer's telephone number.
       (IV) The consumer's e-mail address.
       (ii) The manufacturer's name.
       (iii) The model name and number for the product.
       (iv) The date of manufacture of the product.
       (v) A message that--
       (I) explains the purpose of the registration; and
       (II) is designed to encourage consumers to complete the 
     registration.
       (vi) A statement that information provided by the consumer 
     shall not be used for any

[[Page 2404]]

     purpose other than to facilitate a recall of or safety alert 
     regarding that product.
       (vii) A message that explains the option to register via 
     the Internet, as required by paragraph (4).
       (C) Placement.--Such form shall be attached to the surface 
     of each durable infant or toddler product so that, as a 
     practical matter, the consumer will notice and handle the 
     form after purchasing the product.
       (3) Text and format of registration forms.--In promulgating 
     regulations under paragraph (1), the Commission may prescribe 
     the exact text and format of such form.
       (4) Internet registration.--In promulgating regulations 
     under paragraph (1), the Commission shall require 
     manufacturers of durable infant or toddler products to 
     provide a mechanism for consumers to submit to the 
     manufacturer via the Internet electronic versions of the 
     registration forms required by paragraph (1)(A).
       (5) Record keeping and notification requirements.--
       (A) In general.--The rules promulgated under paragraph (1) 
     shall require each manufacturer of a durable infant or 
     toddler product--
       (i) to maintain a record of consumers who register for such 
     product that includes all of the information provided by such 
     consumers; and
       (ii) to use such information to notify such consumers in 
     the event of a voluntary or involuntary recall of, or safety 
     alert regarding, such product.
       (B) Period of maintenance.--Such rules shall require such 
     manufacturers of durable infant or toddler products to 
     maintain the records described in subparagraph (A)(i) for a 
     period of not less than 6 years after the date of manufacture 
     of the product concerned.
       (C) Limitation on use of information collected.--The rules 
     promulgated under paragraph (1) shall prohibit manufacturers 
     from using or disseminating to any other party the 
     information collected by the manufacturer under this 
     subsection for any purpose other than notification to the 
     consumer concerned in the event of a product recall or safety 
     alert regarding the product concerned.
       (D) Reservation.--Nothing in this section requires a 
     manufacturer to collect, retain, or use any information 
     unless it is provided by the consumer.
       (b) Report and Study.--Not later than 4 years after the 
     date of enactment of this Act, the Commission shall--
       (1) conduct a study on the effectiveness of the rules 
     promulgated under subsection (a) in facilitating product 
     recalls; and
       (2) submit to Congress a report on the findings of the 
     Commission with respect to the study required by paragraph 
     (1).
       (c) Definitions.--In this section:
       (1) Commission.--The term ``Commission'' means the Consumer 
     Product Safety Commission.
       (2) Durable infant or toddler product.--The term ``durable 
     infant or toddler product'' means a durable product intended 
     for use by, or that may be reasonably expected to be used by, 
     children younger than the age of 5 years, including the 
     following:
       (A) Full-size cribs and nonfull-size cribs.
       (B) Toddler beds.
       (C) High chairs, booster chairs, and hook-on chairs.
       (D) Bath seats.
       (E) Gates and other enclosures for confining a child.
       (F) Play yards.
       (G) Stationary activity centers.
       (H) Infant carriers.
       (I) Strollers.
       (J) Walkers.
       (K) Swings.
       (L) Bassinets and cradles.

     SEC. 35. REPEAL.

       Section 30 (15 U.S.C. 2079) is amended by striking 
     subsection (d) and redesignating subsections (e) and (f) as 
     subsections (d) and (e), respectively.

     SEC. 36. CONSUMER PRODUCT SAFETY COMMISSION PRESENCE AT 
                   NATIONAL TARGETING CENTER OF U.S. CUSTOMS AND 
                   BORDER PROTECTION.

       (a) In General.--Except as provided in subsection (c), not 
     later than 6 months after the date of the enactment of this 
     Act, the Consumer Product Safety Commission shall enter into 
     a memorandum of understanding with the Secretary of Homeland 
     Security for the assignment by the Commission of not less 
     than 1 full-time equivalent personnel to work at the National 
     Targeting Center of U.S. Customs and Border Protection.START 
     HERE
       (b) Responsibilities.--Any personnel assigned under 
     subsection (a) shall, in cooperation with other personnel 
     working at the National Targeting Center, identify products, 
     before such products are imported into the customs territory 
     of the United States, that--
       (1) are intended for importation into such customs 
     territory; and
       (2) pose a high risk to consumer safety.
       (c) Waiver.--The Consumer Product Safety Commission may 
     waive the requirement of subsection (a) if the Commission 
     determines that an assignment under subsection (a) would not 
     improve the effectiveness of the Commission in identifying 
     products described in subsection (b) before such products are 
     imported into the customs territory of the United States.

     SEC. 37. DEVELOPMENT OF RISK ASSESSMENT METHODOLOGY TO 
                   IDENTIFY SHIPMENTS OF CONSUMER PRODUCTS THAT 
                   ARE LIKELY TO CONTAIN CONSUMER PRODUCTS IN 
                   VIOLATION OF SAFETY STANDARDS.

       (a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, the Consumer Product Safety 
     Commission shall develop a risk assessment methodology for 
     identification of shipments of consumer products that are--
       (1) intended for import into the customs territory of the 
     United States; and
       (2) are likely to include consumer products that would be 
     refused admission into such customs territory under section 
     17(a) of the Consumer Product Safety Act (15 U.S.C. 2066(a)).
       (b) Use of International Trade Data System.--The 
     methodology developed under subsection (a) shall, as far as 
     practicable, use the International Trade Data System (ITDS) 
     established under section 411(d) of the Tariff Act of 1930 
     (19 U.S.C. 1411) to evaluate and assess information about 
     shipments of consumer products intended for import into the 
     customs territory of the United States before such shipments 
     enter such customs territory.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

     SEC. 38. SEIZURE AND DESTRUCTION OF IMPORTED PRODUCTS IN 
                   VIOLATION OF CONSUMER PRODUCT SAFETY STANDARDS.

       (a) List of Product Defects That Constitute a Substantial 
     Product Hazard.--
       (1) In general.--Not later than 6 months after the date of 
     the enactment of this Act, the Consumer Product Safety 
     Commission shall publish a list of product defects that 
     constitute a substantial product hazard (as defined in 
     section 15 of the Consumer Product Safety Act (15 U.S.C. 
     2064)).
       (2) Updates.--The Consumer Product Safety Commission shall, 
     as the Commission considers appropriate--
       (A) update the list required by paragraph (1); and
       (B) provide a copy of the updated list to the Secretary of 
     Homeland Security.
       (b) Destruction of Noncompliant Imported Products.--Section 
     17(e) (15 U.S.C. 2066(e)) is amended to read as follows:
       ``(e) Product Destruction.--The Secretary of Homeland 
     Security shall ensure the destruction of any product refused 
     admission into the customs territory of the United States 
     under this section unless such product is exported, under 
     regulations prescribed by the Secretary or the Commission, as 
     appropriate, within 90 days of the date of notice of such 
     refusal or within such additional time as may be permitted 
     pursuant to such regulations.''.
       (c) Inspection and Recordkeeping Requirements as Conditions 
     on Importation.--Section 17(g) (15 U.S.C. 2066(g)) is amended 
     by striking ``Commission may'' and inserting ``Commission 
     shall''.
       (d) Provision of Information to Cooperating Agencies.--
     Section 17(h)(2) (15 U.S.C. 2066(h)(2)) is amended by 
     striking ``Commission may'' and inserting ``Commission 
     shall''.
       (e) Construction.--Section 17 (15 U.S.C. 2066) is amended 
     by adding at the end the following:
       ``(i) Construction.--Nothing in this section shall be 
     construed to prevent the Secretary of Homeland Security from 
     prohibiting entry or directing the destruction or export of a 
     consumer product under any other provision of law.''.
       (f) Conforming Amendments.--Such section 17 is further 
     amended--
       (1) in subsection (a), by striking ``Any consumer'' and 
     inserting ``Refusal of Admission.--Any consumer'';
       (2) in subsection (b), by striking ``The'' in the first 
     sentence and inserting ``Samples.--The'';
       (3) in subsection (c), by striking ``If'' and inserting 
     ``Modification.--If'';
       (4) in subsection (d), by striking ``All actions'' in the 
     first sentence and inserting ``Supervision of 
     Modifications.--All actions'';
       (5) in subsection (f), by striking ``All expenses'' in the 
     first sentence and inserting ``Payment of Expenses Occasioned 
     by Refusal of Admission.--All expenses'';
       (6) in subsection (g), by striking ``The Commission'' and 
     inserting ``Importation Conditioned Upon Manufacturer's 
     Compliance.--The Commission'';
       (7) in subsection (h), by striking ``(h)(1) The 
     Commission'' and inserting ``(h) Product Surveillance 
     Program.--(1) The Commission''.
       (g) Technical Amendments.--Such section 17 is further 
     amended--
       (1) by striking ``Secretary of the Treasury'' each place it 
     occurs and inserting ``Secretary of Homeland Security''; and
       (2) by striking ``Department of the Treasury'' each place 
     it occurs and inserting ``Department of Homeland Security''.

     SEC. 39. DATABASE OF MANUFACTURING FACILITIES AND SUPPLIERS 
                   INVOLVED IN VIOLATIONS OF CONSUMER PRODUCT 
                   SAFETY STANDARDS.

       (a) Documentation of Acts and Omissions.--If the Consumer 
     Product Safety

[[Page 2405]]

     Commission discovers evidence that a violation of a consumer 
     product safety rule was the result of an act or omission by a 
     manufacturing facility or supplier, the Commission shall 
     document the following:
       (1) The date on which the violation occurred.
       (2) A description of the violation and the circumstances 
     that led to the violation.
       (3) Details of the act or omission and the relation of such 
     act or omission to the violation.
       (4) Identifying information about the manufacturing 
     facility or supplier, including the name and address of such 
     manufacturing facility or supplier.
       (b) Database.--The Consumer Product Safety Commission shall 
     establish and maintain a database that contains the 
     following:
       (1) All of the information documented under subsection (a).
       (2) Any information submitted under subsection (d).
       (c) Notice.--The Commission shall take reasonable steps to 
     provide notice to each manufacturing facility or supplier 
     documented in the database required by subsection (b) of the 
     inclusion of such manufacturing facility or supplier in such 
     database and the reasons for such inclusion.
       (d) Comments.--The Commission shall establish a process by 
     which a manufacturing facility or supplier included in the 
     database required by subsection (b) for an act or omission 
     described in subsection (a) may submit information to the 
     Commission for inclusion in the database. Such information 
     may consist of--
       (1) evidence refuting evidence contained in the database 
     that a violation described in subsection (a) was the result 
     of an act or omission by such manufacturing facility or 
     supplier; and
       (2) evidence of remedial measures taken by such 
     manufacturing facility or supplier to correct such act or 
     omission.
       Information submitted under this subsection shall be 
     treated the same as information in the database for purposes 
     of subsections (g) and (h).
       (e) Availability of Database to U.S. Customs and Border 
     Protection.--The Consumer Product Safety Commission shall 
     make the database established under subsection (b) available 
     on a real-time basis to the Commissioner responsible for the 
     U.S. Customs and Border Protection of the Department of 
     Homeland Security.
       (f) Use of Database by U.S. Customs and Border 
     Protection.--The Commissioner responsible for the U.S. 
     Customs and Border Protection of the Department of Homeland 
     Security shall use the information stored in the database 
     required by subsection (b) in determining--
       (1) whether a container being imported into the United 
     States contains consumer products that are in violation of a 
     consumer product safety standard of the Commission; and
       (2) whether action should be taken with respect to any 
     consumer products in such container under section 17 of the 
     Consumer Product Safety Act (15 U.S.C. 2066).
       (g) Limitation on Disclosure of Information in Database.--
       (1) In general.--The Consumer Product Safety Commission and 
     the Commissioner responsible for the U.S. Customs and Border 
     Protection of the Department of Homeland Security shall not 
     disclose any information contained in or provide access to 
     the database required by subsection (b) to any person except 
     as provided in paragraph (2), provided that this limitation 
     does not apply to the disclosure of information that was 
     collected, received, or maintained by the Commission for 
     purpose other than inclusion in the database.
       (2) Exception for law enforcement and national security.--
     The Consumer Product Safety Commission and the Commissioner 
     responsible for the U.S. Customs and Border Protection of the 
     Department of Homeland Security may disclose information 
     contained in and provide access to the database required by 
     subsection (b) to a law enforcement agency or an intelligence 
     agency of the United States if the Commission or the 
     Commissioner determine that such disclosure is necessary--
       (A) to prevent a crime; or
       (B) to detect, prevent, or respond to a threat to national 
     security.
       (3) Exemption from freedom of information act disclosure 
     requirements.--The database required by subsection (b) shall 
     not be subject to the disclosure requirements of section 552 
     or 552A of title 5, United States Code.
       (h) Limitation on Use of Information in Database for 
     Certain Civil or Criminal Penalties.--
       (1) Prohibition on imposition by consumer product safety 
     commission of penalties solely on basis of database.--The 
     Consumer Product Safety Commission may not impose any penalty 
     under section 20 or 21 of the Consumer Product Safety Act (15 
     U.S.C. 2069, 2070) on any person solely on the inclusion of 
     information on a person in the database required by 
     subsection (b).
       (2) Prohibition on imposition by u.s. customs and border 
     protection of penalties solely on basis of database.--
     Notwithstanding any other provision of law, the Commissioner 
     responsible for the U.S. Customs and Border Protection of the 
     Department of Homeland Security may not impose any civil or 
     criminal penalty on any person solely on the inclusion of 
     information on a person in the database required by 
     subsection (b).
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.
                                 ______
                                 
      By Mr. REID:
  S. 2664. A bill to extend the provisions of the Protect America Act 
of 2007; read the first time.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
placed in the Record, as follows:

                                S. 2664

       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 ``Protect America Short-term 
     Extension Act''.

     SEC. 2. EXTENSION OF THE PROTECT AMERICA ACT OF 2007.

       Subsection (c) of section 6 of the Protect America Act of 
     2007 (Public Law 110-55; 121 Stat. 557; 50 U.S.C. 1803 note), 
     as amended by section 1 of the Act to Extend the Protect 
     America Act of 2007 for 15 Days (Public Law 110-182), is 
     amended by striking ``195 days after the date of the 
     enactment of this Act'' and inserting ``on the date that is 
     30 days after the date of the enactment of the Protect 
     America Short-term Extension Act''.

     SEC. 3. EFFECTIVE DATE.

       The amendment made by section 2 shall take effect as if 
     enacted on February 15, 2008.
                                 ______
                                 
      By Mr. REID:
  S. 2665. A bill to extend the provisions of the Protect America Act 
of 2007 until July 1, 2009; read the first time.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
placed in the Record, as follows:

                                S. 2665

       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 ``Protect America Long-term 
     Extension Act''.

     SEC. 2. EXTENSION OF THE PROTECT AMERICA ACT OF 2007.

       Subsection (c) of section 6 of the Protect America Act of 
     2007 (Public Law 110-55; 121 Stat. 557; 50 U.S.C. 1803 note), 
     as amended by section 1 of the Act to Extend the Protect 
     America Act of 2007 for 15 Days (Public Law 110-182), is 
     amended by striking ``195 days after the date of the 
     enactment of this Act'' and inserting ``on July 1, 2009''.

     SEC. 3. EFFECTIVE DATE.

       The amendment made by section 2 shall take effect as if 
     enacted on February 15, 2008.
                                 ______
                                 
       By Ms. CANTWELL (for herself, Mr. Smith, Mr. Kerry, Mr. Coleman, 
        and Mr. Salazar):
   S. 2666. A bill to amend the Internal Revenue Code of 1986 to 
encourage investment in affordable housing, and for other purposes; to 
the Committee on Finance.
   Ms. CANTWELL. Mr. President, the issues of housing are very much on 
the minds of the American people and those of us in Congress. While we 
focus on the challenges that homeowners currently are facing, we must 
not fail to recognize that there are a lot of families that dare not 
dream of owning their own home; they dream simply of having access to 
safe, affordable rental housing in our communities.
   Today, I am pleased to introduce the Affordable Housing Investment 
Act, a bill that will update and modernize the low-income housing tax 
credit program--a program that we all know has been tremendously 
successful in helping construct needed affordable housing in 
communities across our country.
   We often find ourselves reacting to Government programs that are 
broken; this bill is about a Government program that works but can be 
improved upon. The low-income housing tax credit program was created as 
part of the Tax Reform Act of 1986 and made permanent in 1993. Designed 
as a public/private funding partnership, largely administered by the 
States, this program has become the most successful housing production 
program in existence.

[[Page 2406]]

   These tax credits make it attractive for investors to forego highly 
profitable luxury residences, in order to provide housing for those 
most in need. Without affordable housing, many low-income Americans 
would find themselves on the street. Instead, these families can 
provide shelter to their children and have a secure place to live near 
where they work and go to school.
   State agencies award housing tax credits to housing developers, who 
turn the credits into construction funds by selling them to investors. 
There funds allow developers to borrow less money and pass through the 
savings in lower rental rates for low-income tenants. Investors, in 
turn, receive a 10-year tax credit based on the cost of constructing or 
rehabilitating apartments that cannot be rented to anyone whose median 
income is higher than 60 percent of the median income in the area.
   Each State's annual housing credit allocation is capped. In 2007, 
the cap is $1.95 per capita, with a minimum of $2.275 million. States 
put each development through three separate, rigorous evaluations to 
make sure it receives only enough housing credits to make it viable as 
low-income housing for the long term.
   Since its inception, this program has created nearly 2 million homes 
for low-income families at restricted rents for terms of at least 30 
years--housing that would not have occurred without the tax credit.
   The credit is responsive to the needs of local communities. It works 
for new construction, rehabilitation, and preservation of affordable 
housing. It works in cities, suburbs, and rural areas. It revitalizes 
low-income communities. It serves families, the elderly, the disabled, 
and the homeless. Each State sets its own housing priorities, and 
developers compete aggressively to meet these priorities.
   The program is cost efficient and has a high compliance rate. The 
marketplace imposes discipline on the program so that taxpayers' 
dollars are well-spent. Investors receive their tax credits only if 
housing is built on time and on budget, operates successfully within 
local housing markets, and is well maintained over time. The annual 
failure rate for housing credit properties is 0.02 percent annually, 
well below that for other housing or commercial real estate.
   As successful as the housing tax credit program is, it could benefit 
significantly from updating.
   The Affordable Housing Investment Act of 2008, which I am 
introducing with Senators Smith, Kerry, Coleman and Salazar, modernizes 
the tax credit rules in order to make it even more useful.
   First, it eliminates the penalties for combining housing credits 
with other Federal housing programs. The bill proposes to remove 
various restrictions that make it hard to coordinate housing credits 
with other Federal policies and programs. These restrictions frustrate 
efforts to address local needs and add unnecessary legal and accounting 
costs. In some cases, these restrictions were set many years ago to 
prevent properties from receiving excessive subsidies. Such 
restrictions are no longer needed because States examine each project 
at three points to ensure that it needs the amount of housing credits 
allocated to it. In addition, the high demand for housing credits and 
other subsidies motivates all subsidy providers to limit subsidies to 
the minimum amount necessary.
   Second, the bill helps foster low-income community revitalization by 
facilitating the construction of child care, primary health care, 
recreation and other community service facilities and aiding with the 
specific needs for housing in rural areas.
   Third, the bill preserves existing affordable housing by easing 
restrictions on rehabilitation of older properties.
   Finally, the bill eliminates unneeded inefficiencies in the tax laws 
that serve no public policy purpose.
   The legislation has been endorsed by the National Council of State 
Housing Agencies, the Affordable Housing Tax Credit Coalition, the 
Housing Development Consortium, Local Initiatives Support Corporation 
and Impact Capital, National Association of State and Local Equity 
Funds, Seattle Housing Authority, and the Washington State Housing 
Finance Commission.
   The tax credit program may be invisible to the people that now have 
a roof over their head, but it is indispensable to our ability to meet 
the growing demand--and diminishing supply--for affordable housing.
   For example, Port Orchard Vista--a 42-unit apartment building for 
low-income seniors--would not have been built without the tax credit 
program. One resident, a 62-year-old grandmother named Jackie, would be 
homeless if this project had not been built. Jackie's Social Security 
check is $600 per month. Her rent was $605, not including utilities--or 
groceries! She was selling her furniture and her mom's old cookbooks to 
make up the difference. She was just a few months away from being 
homeless.
   Thanks to the tax credits, the Kitsap County Consolidated Housing 
Authority was able to get this project built and keep Jackie off the 
street. Today, Jackie's rent is $200--including utilities.
   The Village at Overlake Station in Redmond, Washington, was built in 
2001 and offers beautiful public spaces and apartment homes. Sarah, a 
single mother, came to Overlake Station in late 2005 after spending 
that summer and fall living out of her vehicle with her two children. 
She was extremely grateful to find a suitable, affordable apartment 
before the cold weather came. She and her children were forced to 
huddle together in the backseat of her car to stay warm as they slept 
and she was concerned about their safety. Though she tried to be 
cautious, she just knew she should find a better way to take care of 
her children.
   Sarah and her children have proudly lived at Overlake for 2 years. 
Soon they will move into a new house, thanks to Habitat for Humanity. 
In two years, Sarah has gone from homelessness to homeownership--thanks 
to the Low-Income Housing Tax Credit program.
   These stories can be replicated in every community in my State and 
across the country.
   In 2002, the Millennial Housing Commission said in its final report 
to the Congress:

        Securing access to decent, affordable housing is 
     fundamental to the American Dream. All Americans want to live 
     in good-quality homes they can afford without sacrificing 
     other basic needs. All Americans want to live in safe 
     communities with ready access to job opportunities, good 
     schools, and amenities. All parents want their children to 
     grow up with positive role models and peer influences nearby. 
     And the overwhelming majority of Americans want to purchase a 
     home as a way to build wealth.

   By leveraging private capital to build affordable housing units, we 
are also helping our local communities. People left with no affordable 
housing options join the ranks of the homeless and then become the 
responsibility of our cash-strapped communities. We can alleviate some 
of the community responsibilities of caring for the homeless, the 
disabled, and other vulnerable low-income families by helping to 
provide these people an affordable place to call home. I encourage my 
colleagues to join me in this effort.
   Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2666

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

     SECTION 1. SHORT TITLE, ETC.

       (a) Short Title.--This Act may be cited as the ``Affordable 
     Housing Investment Act of 2008''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title, etc.

       TITLE I--FACILITATE DEVELOPMENT OF HOUSING CREDIT PROPERTY

Sec. 101. Renaming the low-income housing credit as the affordable 
              housing credit.

[[Page 2407]]

Sec. 102. Modification of rules for determining applicable percentage.
Sec. 103. Increase in credit for buildings in State designated areas.
Sec. 104. Modification of scattered site rule.
Sec. 105. Treatment of rural projects.
Sec. 106. Expansion of allowable basis for community service 
              facilities.

   TITLE II--IMPROVE COORDINATION WITH OTHER FEDERAL HOUSING PROGRAMS

Sec. 201. Affordable housing credits allowed for section 8 moderate 
              rehabilitation developments.
Sec. 202. Modification to low-income housing credit rules for reduction 
              of eligible basis by grants received.

   TITLE III--FACILITATE PRIVATE INVESTMENT CAPITAL TO INCREASE THE 
              EFFICIENCY OF AFFORDABLE HOUSING INVESTMENT

Sec. 301. Repeal of recapture bond rule.
Sec. 302. Affordable housing credit allowed against alternative minimum 
              tax.
Sec. 303. Interest on qualified mortgage bonds, qualified veterans' 
              mortgage bonds, and qualified residential rental project 
              exempt facility bonds exempt from alternative minimum 
              tax.

          TITLE IV--HELP PRESERVE EXISTING AFFORDABLE HOUSING

Sec. 401. Repeal of 10-year rule for acquisition housing credits.
Sec. 402. Modification of related person rule for affordable housing 
              credit.

     TITLE V--SIMPLIFY ADMINISTRATION OF THE HOUSING CREDIT PROGRAM

Sec. 501. Elimination of certain annual recertifications of tenant 
              incomes.

  TITLE VI--CONFORM MULTIFAMILY HOUSING BOND RULES TO HOUSING CREDIT 
                                 RULES

Sec. 601. Coordination of certain rules applicable to affordable 
              housing credit and qualified residential rental project 
              exempt facility bonds.

          TITLE VII--IMPROVE THE MORTGAGE REVENUE BOND PROGRAM

Sec. 701. Special rule for use of mortgage bonds for disaster victims, 
              single parents, and homemakers.
Sec. 702. Repeal of required use of certain principal repayments on 
              qualified mortgage issues to redeem bonds.

                       TITLE VIII--EFFECTIVE DATE

Sec. 801. Effective date.

       TITLE I--FACILITATE DEVELOPMENT OF HOUSING CREDIT PROPERTY

     SEC. 101. RENAMING THE LOW-INCOME HOUSING CREDIT AS THE 
                   AFFORDABLE HOUSING CREDIT.

       (a) In General.--The heading of section 42 (relating to 
     low-income housing credit) is amended by striking ``low-
     income'' and inserting ``affordable''.
       (b) Conforming Amendments.--
       (1) Sections 38(b)(5), 42(a), 772(a)(7), and 772(d)(5) are 
     each amended by striking ``low-income'' and inserting 
     ``affordable''.
       (2) The headings of subparagraphs (3)(D) and (6)(B) of 
     section 469(i) are each amended by striking ``low-income'' 
     and inserting ``affordable''.
       (3) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by striking the item 
     relating to section 42 and inserting the following:

``Sec. 42. Affordable housing credit.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 102. MODIFICATION OF RULES FOR DETERMINING APPLICABLE 
                   PERCENTAGE.

       (a) In General.--Subsection (b) of section 42 is amended--
       (1) by striking the semicolon and all that follows to the 
     period in the heading,
       (2) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) In general.--For purposes of this section, the term 
     `applicable percentage' means the greater of the alternative 
     applicable percentage determined under paragraph (2) or--
       ``(A) 9 percent in the case of any building to which 
     subparagraph (B) does not apply, and
       ``(B) 4 percent in the case of--
       ``(i) any existing building, and
       ``(ii) any new building if, at any time during the taxable 
     year or any prior taxable year, there is or was outstanding 
     any obligation--
       ``(I) not taken into account under section 146,
       ``(II) which is exempt from tax under section 103, and
       ``(III) the proceeds of which are or were used (directly or 
     indirectly) with respect to such building or the operation 
     thereof.'',
       (3) by striking ``Buildings placed in service after 1987'' 
     in the heading for paragraph (2) and inserting ``Alternative 
     applicable percentage'', and
       (4) by striking ``In the case of any qualified low-income 
     building placed in service by the taxpayer after 1987, the 
     term `applicable percentage' means'' in paragraph (2)(A) and 
     inserting ``For purposes of paragraph (1), the term 
     `alternative applicable percentage' means''.
       (b) Modification of Rules Related to Federal Subsidies.--
       (1) In general.--Paragraph (2) of section 42(i) (relating 
     to determination of whether building is Federally subsidized) 
     is amended to read as follows:
       ``(2) Exceptions for certain new buildings otherwise 
     subject to 4 percent credit limitation.--
       ``(A) Election to reduce eligible basis by proceeds of 
     obligations.--A tax-exempt obligation shall not be taken into 
     account under subsection (b)(1)(B)(ii) if the taxpayer elects 
     to exclude the proceeds of such obligation from the eligible 
     basis of the building for purposes of subsection (d).
       ``(B) Special rule for subsidized construction financing.--
     A tax-exempt obligation used to provide construction 
     financing for any building shall not be taken into account 
     under subsection (b)(1)(B)(ii) if--
       ``(i) such obligation (when issued) identified the building 
     for which the proceeds of such obligation would be used, and
       ``(ii) such obligation is redeemed before such building is 
     placed in service.''.
       (2) Conforming amendment.--Section 1400N(c)(6) is amended 
     by striking ``December 31, 2010'' and inserting ``the date of 
     the enactment of the Affordable Housing Investment Act of 
     2008''.

     SEC. 103. INCREASE IN CREDIT FOR BUILDINGS IN STATE 
                   DESIGNATED AREAS.

       (a) In General.--Clause (i) of section 42(d)(5)(C) 
     (relating to increase in credit for buildings in high cost 
     areas) is amended by striking ``or difficult development 
     area'' and inserting ``, difficult development area, or State 
     designated project''.
       (b) State Designated Project.--Subparagraph (C) of section 
     42(d)(5) is amended by adding at the end the following new 
     clause:
       ``(v) State designated project.--For purposes of this 
     subparagraph, the term `State designated project' means any 
     project published as part of a State's qualified allocation 
     plan (as defined in subsection (m)(1)(B)) and designated by 
     the housing credit agency as meeting such criteria for 
     designation under this clause as the State in which such 
     project is located may specify. The rules of clauses (ii)(II) 
     and (iii)(II) shall not apply for purposes designations made 
     under this clause.''.
       (c) Conforming Amendment.--The heading of subparagraph (C) 
     of section 42(d)(5) is amended by striking ``buildings in 
     high cost areas'' and inserting ``certain buildings''.

     SEC. 104. MODIFICATION OF SCATTERED SITE RULE.

       Paragraph (7) of section 42(g) (relating to scattered site 
     projects) is amended to read as follows:
       ``(7) Scattered site projects.--Buildings which would (but 
     for their lack of proximity) be treated as a project for 
     purposes of this section shall be so treated if the rent-
     restricted (within the meaning of paragraph (2)) residential 
     units of such project are distributed among such buildings in 
     proportion to the number of residential units in each 
     building.''.

     SEC. 105. TREATMENT OF RURAL PROJECTS.

       Section 42(i) (relating to definitions and special rules) 
     is amended by adding at the end the following new paragraph:
       ``(8) Treatment of rural projects.--For purposes of this 
     section, in the case of any project for residential rental 
     property located in a rural area (as defined in section 520 
     of the Housing Act of 1949), any income limitation measured 
     by reference to area median gross income shall be measured by 
     reference to the greater of area median gross income or 
     national non-metropolitan median income.''.

     SEC. 106. EXPANSION OF ALLOWABLE BASIS FOR COMMUNITY SERVICE 
                   FACILITIES.

       Section 42(d)(4)(C) (relating to inclusion of basis of 
     property used to provide services for certain nontenants) is 
     amended--
       (1) by striking ``10 percent of the eligible basis'' in 
     clause (ii)and inserting ``20 percent of the first $5,000,000 
     in eligible basis plus 10 percent of the remaining eligible 
     basis'', and
       (2) by adding at the end the following new flush sentences:

     ``For each calendar year beginning after 2008, the dollar 
     amount in clause (ii) shall be increased by an amount equal 
     to such dollar amount multiplied by the cost-of-living 
     adjustment determined under section 1(f)(3), determined by 
     substituting `calendar year 2007' for `calendar year 1992' in 
     subparagraph (B) thereof. If any amount adjusted under the 
     preceding sentence is not a multiple of $100,000, such amount 
     shall be rounded to the next lowest multiple of $100,000.''.

   TITLE II--IMPROVE COORDINATION WITH OTHER FEDERAL HOUSING PROGRAMS

     SEC. 201. AFFORDABLE HOUSING CREDITS ALLOWED FOR SECTION 8 
                   MODERATE REHABILITATION DEVELOPMENTS.

       Paragraph (2) of section 42(c) (relating to qualified low-
     income building) is amended by striking the last sentence.

     SEC. 202. MODIFICATION TO LOW-INCOME HOUSING CREDIT RULES FOR 
                   REDUCTION OF ELIGIBLE BASIS BY GRANTS RECEIVED.

       (a) In General.--The Secretary of the Treasury shall modify 
     Treasury Regulations section 1.42-16(b) to provide that none 
     of the following shall be considered a grant made with 
     respect to a building or its operation

[[Page 2408]]

     for purposes of section 42(d)(5)(A) of the Internal Revenue 
     Code of 1986:
       (1) Rental assistance under section 521 of the Housing Act 
     of 1949 (42 U.S.C. 1490a).
       (2) Assistance under section 538(f)(5) of the Housing Act 
     of 1949 (42 U.S.C. 1490p-2(f)(5)).
       (3) Interest reduction payments under section 236 of the 
     National Housing Act (12 U.S.C. 1715z-1).
       (4) Rental assistance under section 202 of the Housing Act 
     of 1959 (12 U.S.C. 1701q).
       (5) Rental assistance under section 811 of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 8013).
       (6) Modernization, operating, and rental assistance 
     pursuant to section 202 of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (25 U.S.C. 
     4132).
       (7) Assistance under title IV of the Stewart B. McKinney 
     Homeless Assistance Act (42 U.S.C. 11361 et seq.).
       (8) Tenant-based rental assistance under section 212 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12742).
       (9) Assistance under the AIDS Housing Opportunity Act (42 
     U.S.C. 12901 et seq.).
       (10) Per diem payments under section 2012 of title 38, 
     United States Code.
       (11) Rent supplements under section 101 of the Housing and 
     Urban Development Act of 1965 (12 U.S.C. 1701s).
       (12) Assistance under section 542 of the Housing Act of 
     1949 (42 U.S.C. 1490r).
       (13) Any other ongoing payment used to enable the property 
     to be rented to low-income tenants.
       (b) Effective Date.--The modifications required by this 
     section shall take effect on the date of the enactment of 
     this Act.
       (c) No Inference.--Nothing contained in subsection (a) may 
     be construed to create any inference with respect to the 
     consideration of any program specified under subsection (a) 
     as a grant made with respect to a building or its operation 
     for purposes of section 42(d)(5)(A) of the Internal Revenue 
     Code of 1986 as in effect on the day before such date of 
     enactment.

   TITLE III--FACILITATE PRIVATE INVESTMENT CAPITAL TO INCREASE THE 
              EFFICIENCY OF AFFORDABLE HOUSING INVESTMENT

     SEC. 301. REPEAL OF RECAPTURE BOND RULE.

       (a) In General.--Paragraph (6) of section 42(j) (relating 
     to recapture of credit) is amended to read as follows:
       ``(6) No recapture on disposition of building (or interest 
     therein) reasonably expected to continue as a qualified low-
     income building.--
       ``(A) In general.--In the case of a disposition of a 
     building or an interest therein, the taxpayer shall be 
     discharged from liability for any additional tax under this 
     subsection by reason of such disposition if it is reasonably 
     expected that such building will continue to be operated as a 
     qualified low-income building for the remaining compliance 
     period with respect to such building.
       ``(B) Statute of limitations.--
       ``(i) Extension of period.--The period for assessing a 
     deficiency attributable to the application of subparagraph 
     (A) with respect to a building (or interest therein) during 
     the compliance period with respect to such building shall not 
     expire before the expiration of 3 years after the end of such 
     compliance period.
       ``(ii) Assessment.--Such deficiency may be assessed before 
     the expiration of the 3-year period referred to in clause (i) 
     notwithstanding the provisions of any other law or rule of 
     law which would otherwise prevent such assessment.''.
       (b) Information Reporting.--
       (1) In general.--Subpart B of part III of subchapter A of 
     chapter 61 (relating to information concerning transactions 
     with other persons) is amended by inserting after section 
     6050V the following new section:

     ``SEC. 6050W. RETURNS RELATING TO PAYMENT OF LOW-INCOME 
                   HOUSING CREDIT REPAYMENT AMOUNT.

       ``(a) Requirement of Reporting.--Every person who, at any 
     time during the taxable year, is an owner of a building (or 
     an interest therein)--
       ``(1) which is in the compliance period at any time during 
     such year, and
       ``(2) with respect to which recapture is required by 
     section 42(j),

     shall, at such time as the Secretary may prescribe, make the 
     return described in subsection (b).
       ``(b) Form and Manner of Returns.--A return is described in 
     this subsection if such return--
       ``(1) is in such form as the Secretary may prescribe, and
       ``(2) contains--
       ``(A) the name, address, and TIN of each person who, with 
     respect to such building or interest, was formerly an 
     investor in such owner at any time during the compliance 
     period,
       ``(B) the amount (if any) of any credit recapture amount 
     required under section 42(j), and
       ``(C) such other information as the Secretary may 
     prescribe.
       ``(c) Statements To Be Furnished to Persons With Respect to 
     Whom Information Is Required.--Every person required to make 
     a return under subsection (a) shall furnish to each person 
     whose name is required to be set forth in such return a 
     written statement showing--
       ``(1) the name and address of the person required to make 
     such return and the phone number of the information contact 
     for such person, and
       ``(2) the information required to be shown on the return 
     with respect to such person.

     The written statement required under the preceding sentence 
     shall be furnished on or before March 31 of the year 
     following the calendar year for which the return under 
     subsection (a) is required to be made.
       ``(d) Compliance Period.--For purposes of this section, the 
     term `compliance period' has the meaning given such term by 
     section 42(i).''.
       (2) Assessable penalties.--
       (A) Subparagraph (B) of section 6724(d)(1) (relating to 
     definitions) is amended by inserting after clause (xxi) the 
     following new clause:
       ``(xxii) section 6050W (relating to returns relating to 
     payment of low-income housing credit repayment amount),''.
       (B) Paragraph (2) of section 6724(d) is amended by striking 
     ``or'' at the end of subparagraph (BB), by striking the 
     period at the end of subparagraph (CC) and inserting ``, 
     or'', and by adding after subparagraph (CC) the following new 
     subparagraph:
       ``(DD) section 6050W (relating to returns relating to 
     payment of low-income housing credit repayment amount).''.
       (3) Clerical amendment.--The table of sections for subpart 
     B of part III of subchapter A of chapter 61 is amended by 
     inserting after the item relating to section 6050V the 
     following new item:
``Sec. 6050W. Returns relating to payment of low-income housing credit 
              repayment amount.''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply with respect to any liability for the credit recapture 
     amount under section 42(j) of the Internal Revenue Code of 
     1986 that arises after the date of the enactment of this Act.
       (2) Special rule for low-income housing buildings sold 
     before date of enactment of this act.--In the case of a 
     building disposed of before the date of the enactment of this 
     Act with respect to which the taxpayer posted a bond (or 
     alternative form of security) under section 42(j) of the 
     Internal Revenue Code of 1986 (as in effect before such date 
     of enactment), the taxpayer may elect (by notifying the 
     Secretary of the Treasury in writing)--
       (A) to cease to be subject to the bond requirements under 
     section 42(j)(6) of such Code, as in effect before such date 
     of enactment, and
       (B) to be subject to the requirements of section 42(j) of 
     such Code, as amended by this section.

     SEC. 302. AFFORDABLE HOUSING CREDIT ALLOWED AGAINST 
                   ALTERNATIVE MINIMUM TAX.

       (a) In General.--Subparagraph (B) of section 38(c)(4) 
     (relating to special rules for specified credits) is amended 
     by redesignating clauses (ii), (iii), and (iv) as clauses 
     (iii), (iv), and (v), respectively, and by inserting after 
     clause (i) the following new clause:
       ``(ii) the credit determined under section 42(a),''.
       (b) Effective Date.--The amendments made by this subsection 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 303. INTEREST ON QUALIFIED MORTGAGE BONDS, QUALIFIED 
                   VETERANS' MORTGAGE BONDS, AND QUALIFIED 
                   RESIDENTIAL RENTAL PROJECT EXEMPT FACILITY 
                   BONDS EXEMPT FROM ALTERNATIVE MINIMUM TAX.

       (a) In General.--Clause (ii) of section 57(a)(5)(C) 
     (relating to exception for qualified 501(c)(3) bonds) is 
     amended to read as follows:
       ``(ii) Exception for certain bonds.--For purposes of clause 
     (i), the term `private activity bond' shall not include--
       ``(I) any qualified 501(c)(3) bond (as defined in section 
     145);
       ``(II) any qualified mortgage bond (as defined in section 
     143(a));
       ``(III) any qualified veterans' mortgage bond (as defined 
     in section 143(b)); and
       ``(IV) any exempt facility bond (as defined in section 
     142(a)) issued as part of an issue 95 percent or more of the 
     net proceeds of which are to be used to provide qualified 
     residential rental projects (as defined in section 
     142(d)).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds originally issued after the date of the 
     enactment of this Act.

          TITLE IV--HELP PRESERVE EXISTING AFFORDABLE HOUSING

     SEC. 401. REPEAL OF 10-YEAR RULE FOR ACQUISITION HOUSING 
                   CREDITS.

       (a) In General.--Subparagraph (B) of section 42(d)(2) 
     (relating to existing buildings) is amended by striking 
     clause (ii) and by redesignating clauses (iii) and (iv) as 
     clauses (ii) and (iii), respectively.
       (b) Conforming Amendment.--Section 42(d) is amended by 
     striking paragraph (6) and by redesignating paragraph (7) as 
     paragraph (6).

     SEC. 402. MODIFICATION OF RELATED PERSON RULE FOR AFFORDABLE 
                   HOUSING CREDIT.

       (a) In General.--Clause (iii) of section 42(d)(2)(D) 
     (related to related person, etc.) is amended to read as 
     follows:

[[Page 2409]]

       ``(iii) Related person.--For purposes of subparagraph 
     (B)(iii), a person (hereinafter in this subclause referred to 
     as the `related person') is related to any person if the 
     related person bears a relationship to such person specified 
     in section 267(b) or 707(b)(1), or the related person and 
     such person are engaged in trades or businesses under common 
     control (within the meaning of subsections (a) and (b) of 
     section 52.''.
       (b) Effective Date.--The amendment made by this subsection 
     shall take effect on the date of the enactment of this Act.

     TITLE V--SIMPLIFY ADMINISTRATION OF THE HOUSING CREDIT PROGRAM

     SEC. 501. ELIMINATION OF CERTAIN ANNUAL RECERTIFICATIONS OF 
                   TENANT INCOMES.

       Paragraph (8) of section 42(g) (relating to qualified low-
     income housing project) is amended--
       (1) by striking ``may waive'' in the mater preceding 
     subparagraph (A);
       (2) by inserting ``may waive'' before ``any recapture'' in 
     subparagraph (A); and
       (3) by inserting ``shall waive'' before ``any annual 
     recertification'' in subparagraph (B).

  TITLE VI--CONFORM MULTIFAMILY HOUSING BOND RULES TO HOUSING CREDIT 
                                 RULES

     SEC. 601. COORDINATION OF CERTAIN RULES APPLICABLE TO 
                   AFFORDABLE HOUSING CREDIT AND QUALIFIED 
                   RESIDENTIAL RENTAL PROJECT EXEMPT FACILITY 
                   BONDS.

       (a) Determination of Next Available Unit.--Paragraph (3) of 
     section 142(d) (relating to current income determinations) is 
     amended by adding at the end the following new subparagraph:
       ``(C) Exception for projects with respect to which 
     affordable housing credit is allowed.--In the case of a 
     project with respect to which credit is allowed under section 
     42, the second sentence of subparagraph (B) shall be applied 
     by substituting `building (within the meaning of section 42)' 
     for `project'.''.
       (b) Students.--Paragraph (2) of section 142(d) (relating to 
     definitions and special rules) is amended by adding at the 
     end the following new subparagraph:
       ``(C) Students.--Students (as defined in section 152(f)(2)) 
     shall not be treated as satisfying the requirements of 
     subparagraph (A) or (B) of paragraph (1) except under rules 
     similar to the rules of 42(i)(3)(D).''.
       (c) Single-Room Occupancy Units.--Paragraph (2) of section 
     142(d) (relating to definitions and special rules), as 
     amended by this Act, is further amended by adding at the end 
     the following new subparagraph:
       ``(D) Single-room occupancy units.--A unit shall not fail 
     to be treated as a residential unit merely because such unit 
     is a single-room occupancy unit (within the meaning of 
     section 42).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to determinations of the status of qualified 
     residential rental projects for periods beginning after the 
     date of the enactment of this Act, with respect to bonds 
     issued before, on, or after such date.

          TITLE VII--IMPROVE THE MORTGAGE REVENUE BOND PROGRAM

     SEC. 701. SPECIAL RULE FOR USE OF MORTGAGE BONDS FOR DISASTER 
                   VICTIMS, SINGLE PARENTS, AND HOMEMAKERS.

       (a) In General.--Paragraph (2) of section 143(d) (relating 
     to exceptions to 3-year requirement) is amended by striking 
     ``and'' at the end of subparagraph (C) and by inserting after 
     subparagraph (D) the following new subparagraphs:
       ``(E) financing of residences for individuals with an 
     ownership interest in a principal residence which--
       ``(i) is located in an area with respect to which a major 
     disaster has been declared by the President under section 401 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act, and
       ``(ii) has been rendered uninhabitable by reason of the 
     major disaster,
       ``(F) financing of residences for individuals who--
       ``(i) are not married, and
       ``(ii) have one or more qualifying children (within the 
     meaning of section 152), and
       ``(G) financing of residences for displaced homemakers,''.
       (b) Displaced Homemakers.--Section 143(d) is amended by 
     adding at the end the following new paragraph:
       ``(4) Displaced homemaker.--For purposes of paragraph 
     (2)(G), the term `displaced homemaker' means any individual 
     who is--
       ``(A) over 18 years of age,
       ``(B) is not employed or underemployed and is experiencing 
     difficulty in obtaining or upgrading employment, and
       ``(C) has not worked full-time full-year in the labor force 
     for a number of years before the date on which financing for 
     a residence is supplied, but has, during such years, worked 
     primarily without remuneration to care for the home and 
     family.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 702. REPEAL OF REQUIRED USE OF CERTAIN PRINCIPAL 
                   REPAYMENTS ON QUALIFIED MORTGAGE ISSUES TO 
                   REDEEM BONDS.

       (a) In General.--Subparagraph (A) of section 143(a)(2) 
     (relating to qualified mortgage issue defined) is amended by 
     inserting ``and'' at the end of clause (ii), by striking ``, 
     and'' at the end of clause (iii) and inserting a period, and 
     by striking clause (iv) and the last sentence.
       (b) Conforming Amendment.--Clause (ii) of section 
     143(a)(2)(D) is amended by striking ``(and clause (iv) of 
     subparagraph (A))''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to repayments received after the date of the 
     enactment of this Act.

                       TITLE VIII--EFFECTIVE DATE

     SEC. 801. EFFECTIVE DATE.

       Except as otherwise provided in this Act, the amendments 
     made by this Act shall apply to--
       (1) housing credit dollar amounts allocated after the date 
     of the enactment of this Act, and
       (2) buildings placed in service after such date to the 
     extent paragraph (1) of section 42(h) of the Internal Revenue 
     Code of 1986 does not apply to such building by reason of 
     paragraph (4) thereof, but only with respect to bonds issued 
     after such date.

                          ____________________