[House Report 106-121]
[From the U.S. Government Publishing Office]
106th Congress Rept. 106-121
HOUSE OF REPRESENTATIVES
1st Session Part 1
======================================================================
FASTENER QUALITY ACT AMENDMENTS ACT OF 1999
_______
April 29, 1999.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Sensenbrenner, from the Committee on Science, submitted the
following
R E P O R T
[To accompany H.R. 1183]
[Including cost estimate of the Congressional Budget Office]
The Committee on Science, to whom was referred the bill (H.R.
1183) to amend the Fastener Quality Act to strengthen the
protection against the sale of mismarked, misrepresented, and
counterfeit fasteners and eliminate unnecessary requirements,
and for other purposes, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
CONTENTS
Page
I. Purpose of the Bill.............................................6
II. Background and Need for the Legislation.........................6
III. Summary of Hearings.............................................6
IV. Committee Actions...............................................8
V. Summary of Major Provisions of the Bill.........................8
VI. Section-By-Section Analysis (By Title and Section)..............9
VII. Committee Views................................................19
VIII. Cost Estimate..................................................19
IX. Congressional Budget Office Cost Estimate......................20
X. Compliance with Public Law 104-4 (Unfunded Mandates)...........21
XI. Committee Oversight Findings and Recommendations...............21
XII. Oversight Findings and Recommendations by the Committee on
Government Reform and Oversight................................21
XIII. Constitutional Authority Statement.............................21
XIV. Federal Advisory Committee Statement...........................21
XV. Congressional Accountability Act...............................21
XVI. Changes in Existing Law Made by the Bill, As Reported..........21
XVII. Committee Recommendations......................................35
XVIII.Exchange of Committee Correspondence...........................36
XIX. Proceedings of Full Committee Markup...........................37
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE
This Act may be cited as the ``Fastener Quality Act Amendments Act
of 1999''.
SEC. 2. FINDINGS AND PURPOSE.
Section 2 of the Fastener Quality Act (15 U.S.C. 5401) is amended
to read as follows:
``SEC. 2. FINDINGS.
``The Congress finds that--
``(1) the United States fastener industry is a significant
contributor to the global economy, employing thousands of
workers in hundreds of communities;
``(2) the American economy uses billions of fasteners each
year;
``(3) state-of-the-art manufacturing and improved quality
assurance systems have dramatically improved fastener quality,
so virtually all fasteners sold in commerce meet or exceed the
consensus standards for the uses to which they are applied;
``(4) a small number of mismarked, misrepresented, and
counterfeit fasteners do enter commerce in the United States;
and
``(5) multiple criteria for the identification of fasteners
exist, including grade identification markings and
manufacturer's insignia, to enable purchasers and users of
fasteners to accurately evaluate the characteristics of
individual fasteners.''.
SEC. 3. DEFINITIONS.
Section 3 of the Fastener Quality Act (15 U.S.C. 5402) is amended to
read as follows:
``SEC. 3. DEFINITIONS.
``As used in this Act, the term--
``(1) `accredited laboratory' means a fastener testing
facility used to perform end-of-line testing required by a
consensus standard or standards to verify that a lot of
fasteners conforms to the grade identification marking called
for in the consensus standard or standards to which the lot of
fasteners has been manufactured, and which--
``(A) meets the requirements of ISO/IEC Guide 25,
including revisions from time to time, or another
document approved by the Director under section 10(c);
and
``(B) has been accredited by a laboratory
accreditation body that meets the requirements of ISO/
IEC Guide 58, including revisions from time to time, or
another document approved by the Director under section
10(d);
``(2) `consensus standard' means the provisions of a document
that describes fastener characteristics published by a
consensus standards organization or a Federal agency, and does
not include a proprietary standard;
``(3) `consensus standards organization' means the American
Society for Testing and Materials, the American National
Standards Institute, the American Society of Mechanical
Engineers, the Society of Automotive Engineers, the
International Organization for Standardization, any other
organization identified as a United States consensus standards
organization or a foreign and international consensus standards
organization in the Federal Register at 61 Fed. Reg. 50582-83
(September 26, 1996), and any successor organizations thereto;
``(4) `Director' means the Director of the National Institute
of Standards and Technology;
``(5) `distributor' means a person who purchases fasteners
for the purpose of reselling them at wholesale to unaffiliated
entities or individuals (an original equipment manufacturer and
its dealers shall be considered affiliated entities for
purposes of this Act);
``(6) `fastener' means a metallic screw, nut, bolt, or stud
having internal or external threads, with a nominal diameter of
6 millimeters or greater, in the case of such items described
in metric terms, or \1/4\ inch or greater, in the case of such
items described in terms of the English system of measurement,
or a load-indicating washer, that is through-hardened or
represented as meeting a consensus standard that calls for
through-hardening, and that is grade identification marked or
represented as meeting a consensus standard that requires grade
identification marking, except that such term does not include
any screw, nut, bolt, stud, or load-indicating washer that is--
``(A) part of an assembly;
``(B) in a package containing no more than 100 of any
one screw, nut, bolt, stud, or load-indicating washer
at the time of sale;
``(C) produced and marked as ASTM A 307 Grade A, or a
successor standard thereto;
``(D) produced in accordance with ASTM F 432, or a
successor standard thereto;
``(E) specifically manufactured for use on an
aircraft if the quality and suitability of those
fasteners for that use has been approved--
``(i) by the Federal Aviation Administration;
or
``(ii) by a foreign airworthiness authority
as described in part 21.29, 21.500, 21.502, or
21.617 of title 14 of the Code of Federal
Regulations;
``(F) manufactured in accordance with a fastener
quality assurance system; or
``(G) manufactured to a proprietary standard, whether
or not such proprietary standard directly or indirectly
references a consensus standard or any portion thereof;
``(7) `fastener quality assurance system' means--
``(A) a system that meets the requirements, including
revisions from time to time, of--
``(i) International Organization for
Standardization (ISO) Standard 9000, 9001,
9002, or TS16949;
``(ii) Quality System (QS) 9000 Standard;
``(iii) Verband der Automobilindustrie e. V.
(VDA) 6.1 Standard; or
``(iv) Aerospace Basic Quality System
Standard AS9000; or
``(B) any fastener manufacturing system--
``(i) that has as a stated goal the
prevention of defects through continuous
improvement;
``(ii) that seeks to attain the goal stated
in clause (i) by incorporating--
``(I) advance quality planning;
``(II) monitoring and control of the
manufacturing process;
``(III) product verification embodied
in a comprehensive written control plan
for product and process
characteristics, and process controls
(including process influence factors
and statistical process control),
tests, and measurement systems to be
used in production; and
``(IV) the creation, maintenance, and
retention of electronic, photographic,
or paper records required by the
control plan regarding the inspections,
tests, and measurements performed
pursuant to the control plan; and
``(iii) that--
``(I) is subject to certification in
accordance with the requirements of
ISO/IEC Guide 62, including revisions
from time to time (or another document
approved by the Director under section
10(a)), by a third party who is
accredited by an accreditation body in
accordance with the requirements of
ISO/IEC Guide 61, including revisions
from time to time (or another document
approved by the Director under section
10(b)); or
``(II) undergoes regular or random
evaluation and assessment by the end
user or end users of the screws, nuts,
bolts, studs, or load-indicating
washers produced under such fastener
manufacturing system to ensure that
such system meets the requirements of
clauses (i) and (ii);
``(8) `grade identification marking' means any grade-mark or
property class symbol appearing on a fastener purporting to
indicate that the lot of fasteners conforms to a specific
consensus standard, but such term does not include a
manufacturer's insignia or part number;
``(9) `lot' means a quantity of fasteners of one part number
fabricated by the same production process from the same coil or
heat number of metal as provided by the metal manufacturer;
``(10) `manufacturer' means a person who fabricates fasteners
for sale in commerce;
``(11) `proprietary standard' means the provisions of a
document that describes characteristics of a screw, nut, bolt,
stud, or load-indicating washer and is issued by a person who--
``(A) uses screws, nuts, bolts, studs, or load-
indicating washers in the manufacture, assembly, or
servicing of its products; and
``(B) with respect to such screws, nuts, bolts,
studs, or washers, is a developer and issuer of
descriptions that have characteristics similar to
consensus standards and that bear such user's
identification;
``(12) `record of conformance' means a record or records for
each lot of fasteners sold or offered for sale that contains--
``(A) the name and address of the manufacturer;
``(B) a description of the type of fastener;
``(C) the lot number;
``(D) the nominal dimensions of the fastener
(including diameter and length of bolts or screws),
thread form, and class of fit;
``(E) the consensus standard or specifications to
which the lot of fasteners has been manufactured,
including the date, number, revision, and other
information sufficient to identify the particular
consensus standard or specifications being referenced;
``(F) the chemistry and grade of material; and
``(G) the coating material and characteristics and
the applicable consensus standard or specifications for
such coating;
``(13) `represent' means to describe one or more of a
fastener's purported characteristics in a document or statement
that is transmitted to a purchaser through any medium;
``(14) `Secretary' means the Secretary of Commerce;
``(15) `specifications' means the required characteristics
identified in the contractual agreement with the manufacturer
or to which a fastener is otherwise produced, except that the
term does not include proprietary standards; and
``(16) `through-harden' means heating above the
transformation temperature followed by quenching and tempering
for the purpose of achieving uniform hardness.''.
SEC. 4. SALE OF FASTENERS.
Sections 5 through 7 of the Fastener Quality Act (15 U.S.C. 5404-7)
are repealed, and the following new section is inserted after section 3
of such Act:
``SEC. 4. SALE OF FASTENERS.
``(a) General Rule.--It shall be unlawful for a manufacturer or
distributor, in conjunction with a sale or offer for sale of a
fastener, to knowingly misrepresent or falsify--
``(1) the record of conformance for the lot of fasteners;
``(2) the identification, characteristics, properties,
mechanical or performance marks, chemistry, or strength of the
lot of fasteners; or
``(3) the manufacturer's insignia.
``(b) Representations.--A direct or indirect reference to a consensus
standard to represent that a fastener conforms to particular
requirements of the consensus standard shall not be construed as a
representation that the fastener meets all the requirements of the
consensus standard.
``(c) Specifications.--A direct or indirect contractual reference to
a consensus standard for the purpose of identifying particular
requirements of the consensus standard that serve as specifications
shall not be construed to require that the fastener meet all the
requirements of the consensus standard.
``(d) Use of Accredited Laboratories.--In the case of fasteners
manufactured solely to a consensus standard or standards, end-of-line
testing required by the consensus standard or standards, if any, for
the purpose of verifying that a lot of fasteners conforms with the
grade identification marking called for in the consensus standard or
standards to which the lot of fasteners has been manufactured shall be
conducted by an accredited laboratory.''.
SEC. 5. MANUFACTURERS' INSIGNIAS.
Section 8 of the Fastener Quality Act (15 U.S.C. 5407) is
redesignated as section 5 and is amended--
(1) by amending subsection (a) to read as follows:
``(a) General Rule.--Unless the specifications provide otherwise, a
fastener that is required by the applicable consensus standard or
standards to bear an insignia identifying its manufacturer shall not be
offered for sale or sold in commerce unless--
``(1) the fastener bears such insignia; and
``(2) the manufacturer has complied with the insignia
recordation requirements established under subsection (b).'';
and
(2) in subsection (b), by striking ``and private label'' and
all that follows and inserting ``described in subsection
(a).''.
SEC. 6. REMEDIES AND PENALTIES.
Section 9 of the Fastener Quality Act (15 U.S.C. 5408) is
redesignated as section 6 and is amended--
(1) in subsection (b)(3), by striking ``of this section'' and
inserting ``of this subsection'';
(2) in subsection (b)(4), by inserting ``arbitrate,'' after
``Secretary may'';
(3) by striking paragraph (3) of subsection (c); and
(4) in subsection (d)--
(A) by inserting ``(1)'' after ``Enforcement.--'';
and
(B) by adding at the end the following new paragraph:
``(2) The Secretary, acting through the Director, shall establish and
maintain a hotline system to facilitate the reporting of alleged
violations of this Act, and the Secretary shall investigate credible
allegations reported through that system.''.
SEC. 7. RECORDKEEPING REQUIREMENTS.
Section 10 of the Fastener Quality Act (15 U.S.C. 5409) is
redesignated as section 7 and is amended by striking subsections (a)
and (b) and inserting the following:
``Manufacturers shall retain the record of conformance for fasteners
for 5 years, on paper or in photographic or electronic format in a
manner that allows for verification of authenticity. Upon request of a
distributor who has purchased a fastener, or a person who has purchased
a fastener for use in the production of a commercial product, the
manufacturer of the fastener shall make available information in the
record of conformance to the requester.''.
SEC. 8. RELATIONSHIP TO STATE LAWS.
Section 11 of the Fastener Quality Act (15 U.S.C. 5410) is
redesignated as section 8.
SEC. 9. CONSTRUCTION.
Section 12 of the Fastener Quality Act (15 U.S.C. 5411) is
redesignated as section 9 and is amended by striking ``in effect on the
date of enactment of this Act''.
SEC. 10. CERTIFICATION AND ACCREDITATION.
Sections 13 and 15 of the Fastener Quality Act (15 U.S.C. 5412 and
14) are repealed, and the following new section is inserted at the end
of that Act:
``SEC. 10. CERTIFICATION AND ACCREDITATION.
``(a) Certification.--A person publishing a document setting forth
guidance or requirements for the certification of manufacturing
systems, including fastener manufacturing systems, by an accredited
third party may petition the Director to approve such document for use
as described in section 3(7)(B)(iii)(I). The Director shall act upon a
petition within 180 days after its filing, and shall approve such
petition if the document provides equal or greater rigor and
reliability as compared to ISO/IEC Guide 62.
``(b) Accreditation.--A person publishing a document setting forth
guidance or requirements for the approval of accreditation bodies to
accredit third parties described in subsection (a) may petition the
Director to approve such document for use as described in section
3(7)(B)(iii)(I). The Director shall act upon a petition within 180 days
after its filing, and shall approve such petition if the document
provides equal or greater rigor and reliability as compared to ISO/IEC
Guide 61.
``(c) Laboratory Accreditation.--A person publishing a document
setting forth guidance or requirements for the accreditation of
laboratories may petition the Director to approve such document for use
as described in section 3(1)(A). The Director shall act upon a petition
within 180 days after its filing, and shall approve such petition if
the document provides equal or greater rigor and reliability as
compared to ISO/IEC Guide 25.
``(d) Approval of Accreditation Bodies.--A person publishing a
document setting forth guidance or requirements for the approval of
accreditation bodies to accredit laboratories may petition the Director
to approve such document for use as described in section 3(1)(B). The
Director shall act upon a petition within 180 days after its filing,
and shall approve such petition if the document provides equal or
greater rigor and reliability as compared to ISO/IEC Guide 58.''.
SEC. 11. APPLICABILITY.
At the end of the Fastener Quality Act, insert the following new
section:
``SEC. 11. APPLICABILITY.
``The requirements of this Act shall be applicable only to fasteners
fabricated 180 days or more after the date of the enactment of the
Fastener Quality Act Amendments of 1999, except that if a manufacturer
or distributor of fasteners fabricated before that date prepares a
record of conformance for such fasteners, representations about such
fasteners shall be subject to the requirements of this Act.''.
SEC. 12. EFFECTIVE DATE.
Section 4(d) of the Fastener Quality Act, as added by section 4 of
this Act, shall take effect 2 years after the date of enactment of this
Act.
I. Purpose of the Bill
The purpose of the bill is to amend the Fastener Quality
Act of 1990 (FQA) to strengthen the protection against the sale
of mismarked, misrepresented, and counterfeit fasteners and
eliminate unnecessary requirements, and for other purposes.
II. Background and Need for the Legislation
Passed by Congress in 1990, the FQA requires all threaded,
metallic, through-hardened fasteners of one-quarter inch
diameter or greater, that directly or indirectly reference a
consensus standard, to be tested by a National Institute of
Standards and Technology (NIST) certified laboratory. Despite
its enactment in 1990, no implementing regulations for the Act
had been finalized until April 14, 1998. The final rule was
developed only after legislative changes amended the Act in
1996.
In 1990, Congress was convinced that foreign manufacturers
were actively engaged in unfair trade practices that resulted
in the dumping of ``substandard'' fasteners in the United
States market. Most of the problems were associated with the
federal procurement of fasteners at the Defense Industrial
Supply Center (DISC) and National Aeronautics and Space
Administration (NASA). It was concluded that substandard
fasteners ``largely'' originated from foreign companies in
Japan, Mexico, Spain, Korea, Taiwan, and Poland, and were the
result of attempts to undercut legitimate U.S. fastener
manufactures with products that were manufactured specifically
to a lesser standard rather than the result of poor
manufacturing processes.
During the 105th Congress, the Science Committee worked in
a bipartisan manner to craft legislation that was enacted into
law as P.L. 105-234. The legislation delays implementation of
regulations under FQA until June 1, 1999 or 120 days after the
Secretary of Commerce issued a report on changes needed to the
law, whichever is later. Two regulations are scheduled to be
implemented on June 24, 1999.
III. Summary of Hearings
On February 25, 1999, the Subcommittee on Technology held a
hearing entitled ``Unscrewing the Fastener Quality Act'' to
review the need for the FQA. Witnesses included: George Parker,
Vice President Association of International Automobile
Manufactures, Inc. Arlington, VA, Ed McIlhon, President Iowa
Industrial Products, Inc., Cedar Falls, IA, and Mr. John M.
O'Brien, Vice President Federal Screw Works FQA Reform
Coalition, Detroit, MI.
John O'Brien, Vice President Federal Screw Works testified
to the need to develop a new FQA that would ensure the
continued safety of fasteners used for commerce, but would not
impose unnecessary and costly burdens on fastener manufacturers
or their customers. Mr. O'Brien stated that the FQA as it
stands now is flawed because it forces reliance on testing
procedures and protocols that have been eclipsed by new
technology and improved practices. Mr. O'Brien stated that
dramatic advances in manufacturing technology and the
implementation of quality assurance systems have resulted in a
reduction in the defect rates in the fastener industry from the
60,000ppm allowable under the historic consensus standards, to
300ppm or less today. Furthermore, he stated that purchasers of
fasteners today have taken on the responsibility of ensuring
the quality of products they buy at the beginning ofthe
transaction--before the fastener reaches the assembly line. Mr. O'Brien
suggested that the thrust of the FQA should be to prevent the
intentional sale or offering for sale of mismarked, substandard or
counterfeit fasteners--not to regulate manufacturing and testing
procedures. Mr. O'Brien agreed with the proposed requirement that
manufacturers register a copyrighted insignia they imprint of
fasteners.
Edward J. McIlhon, President Iowa Industrial Products
Corporation testified that there is no longer a basis or need
for the FQA. Mr. McIlhon sited the Edgerly Report entitled ``Is
there Still A Basis For The Fastener Quality Act?'' that
concluded that the major problems identified in the 1988
Congressional investigation and report have been resolved, and
that there is no longer a basis for the finding that the health
and safety of Americans is threatened by the widespread sale of
mismarked, substandard and counterfeit fasteners. Mr. McIlhon
feels that the current solution offered by NIST is still
unworkable because it is too encumbered by the original
language of the FQA would require redundant and unnecessary
testing. Furthermore, he stated that the current Act does not
permit retesting and recertification of fasteners produced
before its date of implementation, and that this could result
in a $1 billion loss to the industry. Mr. McIlhon testified
that the current Act's requirements regarding laboratories are
unworkdable, and that because a sufficient number of
laboratories have not been available to conduct the required
testing, the implementation of regulations has been delayed
three times. He also mentioned that the current Act is an
impediment to trade with our partners in Europe. Mr. McIlhon
concluded by stating that certain portions of the Act should be
preserved, including; the recording manufacturers' fastener
insignias by the Patent and Trademark Office (PTO) to assure
the trace-ability of fasteners after they are placed into
service; the use of accredited laboratories to assure the
quality of laboratories involved in testing fasteners under
appropriate consensus and government standards and
specifications; the use of grade identification markings on
fasteners as a means of helping original equipment
manufacturers assure that only properly manufactured and graded
fasteners will be used in safety critical applications.
George Parker, Association of International Automobile
Manufacturers, Inc. testified that the current FQA would not
provide higher levels of fastener quality, would be a step
backward and impose costs without benefits. He also stated that
although there is not substantial evidence that there are any
fastener quality problems, the auto industry believes that any
potential fastener quality problems that produce safety risks
would derive from mismarked, substandard, and counterfeit
fasteners. Mr. Parker stated that most major end users have
systems in place to insure that only the highest quality
fasteners are used in their products. Mr. Parker concluded by
stating that if the Congress believe that a law was needed on
general fastener quality, the auto industry recommends that
such a law be directed at deterring the introduction of non-
conforming fasteners into commerce and to generally provide
commercial and government customers with greater assurance that
fasteners meet stated specifications. Finally, Mr. Parker
stated that such a law should recognize the actions major end
users take to insure that only high quality fasteners are used
in their products, and should also recognize the Quality
Assurance Systems in place to produce high quality fasteners.
IV. Committee Actions
On March 25, 1998, the full committee marked up the
legislation (H.R. 1183) which was introduced by Chairman
Sensenbrenner. The legislation was adopted, as amended (by
voice vote) and ordered reported to the full House for
consideration (by voice vote). Amendments to the legislation
were offered in the following order:
1. Manager's En Bloc Amendment offered by Mrs. Morella and
Mr. Barcia to, among other things, make the following changes:
In the case of fasteners manufactured solely
to consensus standards, the amendment ensures that if
end-of-line testing is required, then the tests shall
be conducted by an accredited laboratory.
Defines an ``accredited laboratory'' to be a
fastener testing facility that meets certain guidelines
established by the International Organization for
Standardization (ISO/IEC) in their Guide 25 or another
document approved by NIST. In addition, the lab must be
accredited by an accreditation body that meets ISO/IEC
Guide 58 or another document approved by NIST. In order
to give manufacturers time to prepare for this
requirement, it does not take effect until 2 years
after enactment.
Clarifies that all fasteners manufactured to
consensus standards must bear a trademark that is
registered with the Department of Commerce, unless the
specifications indicate otherwise. In some instances,
fastener end-users do not want any markings on their
fasteners because of specific manufacturing processes.
Eases access to documents contained in the
records of conformance by fastener purchasers.
V. Summary of Major Provisions of the Bill
H.R. 1183 modifies the Fastener Quality Act of 1990 (FQA)
to recognize new quality practices in the fastener industry,
focuses on assuring public safety, and imposes the least
possible additional burdens on an already regulated industry.
To that end, H.R. 1183 fights fraud by clarifying that anyone
intentionally misrepresenting the strength or other
characteristics of a fastener is subject to the criminal
penalties and civil remedies of the Act; ensures accountability
by requiring that virtually all fasteners sold in commerce to
be marked with the registered trademark of their manufacturer;
reduces the burdensome paperwork requirements of the Act by
allowing documents to be stored and transmitted in electronic
format; and, recognizes industry's growing utilization of
improved quality assurance and management systems by allowing
fasteners manufactured in accordance with certain quality
assurance systems to be deemed in compliance with the
requirements of the Act.
VI. Section-by-Section Analysis (By Title and Section)
SECTION 1. SHORT TITLE
This section cites the Act as ``The Fastener Quality Act
Amendments Act of 1999''.
SECTION 2. FINDINGS AND PURPOSE
This section amends the findings of the Fastener Quality
Act (15 U.S.C. 5401) by stating that--the United States
fastener industry is a significant contributor to the global
economy, employing thousands of workers in hundreds of
communities; the American economy uses billions of fasteners
each year; state-of-the-art manufacturing and improved quality
assurance systems have dramatically improvedfastener quality,
so virtually all fasteners sold in commerce meet or exceed the
consensus standards for the uses to which they are applied; a small
number of mismarked, misrepresented, and counterfeit fasteners do enter
commerce in the United States market, and multiple criteria for the
identification of fasteners exist, including grade identification
markings and manufacturer's insignia to enable purchasers and users of
fasteners to accurately evaluate the characteristics of individual
fasteners.
section 3. definitions
As used in this Act, this section defines the following
terms--
(1) ``accredited laboratory'' means a fastener
testing facility used to perform end-of-line testing
required by a consensus standard or standards to verify
that a lot of fasteners conforms to the grade
identification marking called for in the consensus
standard or standards to which the lot of fasteners has
manufactured, and which--
(A) meets certain guidelines established by
the International Organization for
Standardization (ISO/IEC) in their Guide 25 or
another document approved by NIST, and
(B) has been accredited by an accrediation
body that meets ISO/IEC Guide 58 or another
document approved by NIST.
(2) ``consensus standard'' means the provisions of a
document that describes fastener characteristics
published by a consensus standards organization or a
Federal agency, and does not include a proprietary
standard;
(3) ``consensus standards organization'' means the
American Society for Testing and Materials, the
American National Standards Institute, the American
Society of Mechanical Engineers, the Society of
Automotive Engineers, the International Organization
for Standardization, any other organization identified
as a United States consensus standards organization or
a foreign and international consensus standards
organization in the Federal Register at 61 Fed. Reg.
50582-83 (September 26, 1996), and any successor
organizations thereto;
(4) ``Director'' means the Director of the National
Institute of Standards and Technology;
(5) ``distributor'' means a person who purchases
fasteners for the purpose of reselling them at
wholesale to unaffiliated entities or individuals (an
original equipment manufacturer and its dealers shall
be considered affiliated entities for purposes of this
Act);
(6) ``fastener'' means a metallic screw, nut, bolt,
or stud having internal or external threads, with a
nominal diameter of 6 millimeters or greater, in the
case of such items described in metric terms, or \1/4\
inch or greater, in the case of such items described in
terms of the English system of measurement, or a load-
indicating washer, that is through-hardened or
represented as meeting a consensus standard that calls
for through-hardening, and that is grade identification
marked or represented as meeting consensus standard
that requires grade identification marking. The term
``fastener'' does not include any screw, nut, bolt, stud,
or load-indicating washer that is--
(A) part of an assembly;
(B) in a package containing no more than 100
of any one screw, nut, bolt, stud, or load-
indicating washer at the time of sale;
(C) produced and marked as ASTM A 307 Grade
A, or a successor standard thereto;
(D) produced in accordance with ASTM F 432,
or a successor standard thereto;
(E) specifically manufactured for use on an
aircraft if the quality and suitability of
those fasteners for that use has been
approved--
(i) by the Federal Aviation
Administration; or
(ii) by a foreign airworthiness
authority as described in part 21.29,
21.500, 21.502, or 21.617 of title 14
of the Code of Federal Regulations;
(F) manufactured in accordance with a
fastener quality assurance system; or
(G) manufactured to a proprietary standard,
whether or not such proprietary standard
directly or indirectly references a consensus
standard or any portion thereof;
(7) ``fastener quality assurance system'' means--
(A) a system that meets the requirements,
including revisions from time to time, of--
(i) International Organization for
Standardization (ISO) Standard 9000,
9001, 9002, or TS16949;
(ii) Quality System (QS) 9000
Standard;
(iii) Verband der Automobilindustrie
e. V. (VDA) 6.1 Standard; or
(iv) Aerospace Basic Quality System
Standard AS9000; or
(B) any fastener manufacturing system--
(i) that has as a stated goal the
prevention of defects through
continuous improvement;
(ii) that seeks to attain the goal
stated in clause (i) by incorporating--
(I) advance quality planning;
(II) monitoring and control
of the manufacturing process;
(III) product verification
embodied in a comprehensive
written control plan for
product and process
characteristics, and process
controls (including process
influence factors and
statistical process control),
tests, and measurement systems
to be used in production; and
(IV) the creation,
maintenance, and retention of
electronic, photographic, or
paper records required by the
control plan regarding the
inspections, tests, and
measurements performed pursuant
to the control plan; and
(iii) that--
(I) is subject to
certification in accordance
with the requirements of ISO/
IEC Guide 62, including
revisions from time to time by
a third party who is accredited
by an accreditation body in
accordance with the
requirements of ISO/IEC Guide
61, including revisions from
time to time, or another
document approved by the
Director under section 10; or
(II) undergoes regular or
random evaluation and
assessment by the end user or
end users of the screws, nuts,
bolts, studs, or load-
indicating washers produced
under such fastener
manufacturing system to ensure
that such system meets the
requirements of clauses (i) and
(ii);
(8) ``grade identification marking'' means any grade-
mark or property class symbol appearing on a fastener
purporting to indicate that the lot of fasteners
conforms to a specific consensus standard, but such
term does not include a manufacturer's insignia or part
number;
(9) ``lot'' means a quantity of fasteners of one part
number fabricated by the same production process from
the same coil or heat number of metal as provided by
the metal manufacturer;
(10) ``manufacturer'' means a person who fabricates
fasteners for sale in commerce;
(11) ``proprietary standard'' means the provisions of
a document that describes characteristics of a screw,
nut, bolt, stud, or load-indicating washer and is
issued by a person who--
(A) uses screws, nuts, bolts, studs, or load-
indicating washers in the manufacture,
assembly, or servicing of its products; and
(B) with respect to such screws, nuts, bolts,
studs, or washers, is a developer and issuer of
descriptions that have characteristics similar
to consensus standards and that bear such
user's identification;
(12) ``record of conformance'' means a record or
records designated for each lot of fasteners sold or
offered for sale that contains--
(A) the name and address of the manufacturer;
(B) a description of the type of fastener;
(C) the lot number;
(D) the nominal dimensions of the fastener
(including diameter and length of bolts or
screws), thread form, and class of fit;
(E) the consensus standard or specifications
to which the lot of fasteners has been
manufactured, including the date, number,
revision, and other information sufficient to
identify the particular consensus standard or
specifications being referenced;
(F) the chemistry and grade of material; and
(G) the coating material and characteristics
and the applicable consensus standard or
specifications for such coating;
(13) ``represent'' means to describe one or more of a
fastener's purported characteristics in a document or
statement that is transmitted to a purchaser through
any medium;
(14) ``Secretary'' means the Secretary of Commerce;
(15) ``specifications'' means the required
characteristics identified in the contractual agreement
with the manufacturer or to which a fastener is
otherwise produced, except that the term does not
include proprietary standards; and
(16) ``through-harden'' means heating above the
transformation temperature followed by quenching and
tempering for the purpose of achieving uniform
hardness.
Committee views
The Committee intends the definition of the term
``distributor'' to mean a person who purchases fasteners for
the purpose of reselling them at wholesale to unaffiliated
entities or individuals. To be a distributor, a person must be
involved in the business of trading in fasteners. The
definition makes clear that transactions between affiliated
entities (such as between an original equipment manufacturer
[OEM] and its dealers) do not make the OEM a distributor. The
Committee makes this distinction in this bill in order to avoid
the unintended effect of creating a principal-agent or related-
companyrelationship between motor vehicle and other product
manufacturers and their dealers. The ``distributor'' definition makes
it clear that use of the concept of ``affiliation'' to describe the
relationship between manufacturers and their dealers is solely for
purposes of this Act, and is not intended to apply elsewhere.
The Committee intends that the term ``fastener,'' and
therefore the requirements of the bill, apply only to fasteners
themselves and not to components or products which may contain
fasteners. In other words, once a fastener has been
incorporated into a product, it is no longer a fastener for the
purposes of this legislation. The Committee also intends that
this provision should be interpreted in a manner consistent
with an interpretation announced by NIST in a December 10,
1996, memorandum to the Fastener Advisory Committee. In that
memorandum, NIST stated that fasteners that are part of a ``kit
containing a disassembled component would not be subject to the
law and regulations.''
The ``fastener'' definition also excludes items that are
sold in packages containing no more than 100 of any one screw,
nut, bolt, stud, or washer. This provision applies primarily to
spare parts for older equipment, installation kits for large
assemblies, and overhaul kits. Fasteners produced in such small
lots could become prohibitively expensive if they were subject
to the Act, since compliance costs would be distributed over a
much smaller number of fasteners than in the case of typical
fastener lots used in new manufacturing. The Committee is
concerned that the result of such cost increases would be the
probable elimination of the fasteners from these kits and the
individual sale of the fasteners as separate parts. If that
should occur, customers would probably either forgo fastener
replacement (during assembly rebuild) or locally source lower
cost, non-specification ``hardware store'' fasteners. This
action would result in the increased possibility of fastener
related failures in these assemblies. The cost premium for
packaging small lots of 100 or less would discourage any
efforts to circumvent the law through repackaging of fasteners.
Section 3 exempts from the bill's coverage those fasteners
that are produced under circumstances that inherently provide
adequate assurances of quality. One category of exempted
fasteners is those screws, nuts, bolts, studs, and washers that
are produced to proprietary standards. The definition of
``proprietary standards'' is intended to include fastener
standards that are developed by private companies that use
fasteners in the manufacture, assembly, or service of their
products and that develop fastener standards under the
company's name.
Manufacturers that develop their own proprietary fastener
standards typically do so as part of ``closed loop''
procurement systems. Under these systems, manufacturers
establish fastener design criteria that are appropriate for the
products they manufacture, designate qualified suppliers, and
require that suppliers meet high levels of quality assurance.
As the Commerce Department noted in its February 24 report,
such manufacturers ``have very stringent requirements for their
suppliers and adequate controls to ensure consistent quality
and fasteners that meet all the requirements of applicable
standards and specifications.'' The Committee concurs in the
Department's recommendation that fasteners produced to
proprietary standards should be exempt from the law.
The excluded category of fasteners produced to proprietary
standards expressly encompasses fasteners produced to private
standards that reference, to varying degrees, consensus or
government standards. This provision is included to reverse an
interpretation of the current law by the Commerce Department
that would have treated as ``consensus standards'' those
proprietary standards that reference (directly or indirectly)
any consensus standard. References to consensus standards that
are contained withinproprietary standards do not bring
proprietary fasteners into the stream of commerce for generic
fasteners. As the Commerce Department's report correctly states,
``fasteners manufactured to specifications that merely reference
consensus or government standards are made for major end users who are
able to ensure they receive precisely the part they seek.''
Accordingly, no coverage under the amended Act is needed or intended.
Another category of fasteners that are produced under
circumstances that provide adequate assurance of quality is
fasteners produced in accordance with a quality assurance
system. Since the FQA was enacted in 1990, fastener quality
assurance procedures have improved substantially over the lot
sampling procedure on which the current Act was based. Strong
evidence has been presented to the Committee that these modern
fastener quality assurance systems (QASs) are both considerably
more reliable and less costly than older end-of-production-line
sampling and testing techniques. As NIST stated in its April
14, 1998, rule: ``A lower defect rate means that fewer
fasteners are manufactured that fail to comply with relevant
standards and specifications, and thus that fewer defective
fasteners will enter into commerce. Public safety is preserved
and enhanced * * * ''
The administrative record for this rulemaking contains
strong evidence that QAS/Statistical Process Control (SPC)
systems utilizing continuous monitoring and control in the
manufacturing process yields (sic) a substantially lower defect
rate than do traditional manufacturing techniques that rely
solely upon end-of-line testing. SPC is a manufacturing process
control monitoring technique used to reduce variation in the
manufacturing process and thereby increase uniformity of the
manufactured product. Testimony at the Public Workshop of
February 7, 1997, indicates that the use of QAS/SPC may reduce
the defect rate from the range of thousands or tens of
thousands of parts-per-million experienced by traditional
manufacturing techniques to approximately 100 parts-per-
million.
The Committee is concerned that the restrictive language in
the current law may impede the movement of companies toward the
implementation of these advanced quality systems. Therefore,
this bill provides an incentive for fastener manufacturers to
adopt quality assurance systems, by relieving fasteners
produced in accordance with a QAS from meeting any further
requirements.
The bill treats three types of advanced quality systems as
QASs. The first category is those meeting the requirements of
ISO Standard 9000, the fundamental international quality system
standard. The second category of qualifying systems includes
systems developed by specific industry sectors based on ISO-
9000, such as QS-9000, VDA 6.1, and AS-9000 (quality assurance
systems based on the basic principles of ISO9000, but
specifically tailored and refined for use by a particular
industry). These systems are end-user driven, as contrasted
with ISO9000, which is manufacturer-driven. The third category
includes systems that meet specified performance criteria,
including the incorporation of advanced quality planning,
monitoring and control of manufacturing processes, use of a
written control plan, record retention, and either ``second-
party'' or ``third-party'' verification. Second-party
verification involves evaluation and assessment of the
fasteners manufacturer's quality procedures
by the end user, the party with the strongest incentive to
insist on high quality levels. Third-party certification of a
fastener manufacturer's quality system involves oversight by
accredited, independent inspectors. The third-party
certification process must meet either (i) the internationally
recognized requirements of ISO Guides 61 and 62 or (ii)
equivalent requirements, as determined by NIST through a
petitioning process. NIST must approve alternative
certification/accreditation requirements that are equally
rigorous and reliable as compared to ISO Guides 61 and 62.
Systems that meet ISO-9000, industry-specific derivatives of
that standard, or other systems that meet the specified
performancecriteria of the bill are automatically deemed to be
qualifying QASs. The Department's role is to determine the equivalence
of certain third-party certification processes to the ISO Guide 61/62
process in a timely manner.
SECTION 4. SALE OF FASTENERS
This section establishes that it shall be unlawful for a
manufacturer or distributor, in conjunction with a sale or
offer for sale of a fastener, to knowingly misrepresent or
falsify--
(1) the record of conformance for the lot of
fasteners;
(2) the identification, characteristics, properties,
mechanical or performance marks, chemistry, or strength
of the lot of fasteners; or
(3) the manufacturer's insignia.
Subsection (b) establishes that a direct or indirect
reference to a consensus standard to represent that a fastener
conforms to particular requirements of the consensus standard
shall not be construed as a representation that the fastener
conforms to all the requirements of the consensus standard.
Subsection (c) establishes that a direct or indirect
contractual reference to a consensus standard for the purpose
of identifying particular requirements of the consensus
standard that serve as specifications shall not be construed to
require that the fastener meet all the requirements of the
consensus standard.
Subsection (d) establishes that in the case of fasteners
manufactured solely to consensus standards, if end-of-line
testing is required by the consensus standard or standards,
then the tests shall be conducted by an accredited laboratory.
Committee view
The Committee recognizes that many of the original problems
that led to the passage of the FQA in 1990 were attributed to
mismarked or fraudulent fasteners. Section 4 fights fastener
fraud by clarifying that it is unlawful for any manufacturer or
distributor to intentionally misrepresent or falsify the
required fastener documentation requirements. Manufacturers of
fasteners bear the responsibility to provide proof that the
chemical and physical properties of their product are what they
are represented to be. Those who intentionally commit fraud
during the sale of fasteners may be subject to both the
criminal penalties and civil remedies detailed in Section 6 of
this bill.
This bill amends the FQA to clarify that all fasteners,
whether foreign or domestic in origin, must be treated the same
for purposes of complying with the Act. The Committee intends
that the provisions of this bill be implemented in the least
trade restrictive manner as possible.
This section requires the use of accredited laboratories
only for end-of-line testing that is specified in a consensus
standard for the purpose of verifying that a lot of fasteners
conforms with the applicable grade identification marking in
the standard. In this context, ``end-of-line'' testing refers
to testsconducted on finished fasteners, as opposed to process
controls that check an ongoing production process.
section 5. manufacturers' insignias
This section redesignates Section 8 of the Fastener Quality
Act (15 U.S.C. 5407) as section 5.
Subsection (a) establishes the following new general rule--
``Unless the specifications provide otherwise, a fastener that
is required by the applicable consensus standard or standards
to bear an insignia identifying its manufacturer shall not be
offered for sale or sold in commerce unless--(1) the fastener
bears such insignia; and (2) the manufacturer has complied with
the insignia recordation requirements established under
subsection (b)''.
Committee view
The Committee believes that Section 5 ensures manufacturer
accountability by requiring most fasteners sold in commerce
include the registered trademark of their manufacturer.
section 6. remedies and penalties
This section redesignates Section 9 of the Fastener Quality
Act (15 U.S.C. 5408) as section 6.
Subsection (b)(3) is amended to clarify the reference to
this subsection.
Subsection (b)(4) is amended to allow the Secretary to
arbitrate civil penalties imposed under this section prior to
referral to the Attorney General.
Paragraph (3) of subsection (c)--which allowed criminal
penalties of up to 2 years in prison for individuals who
negligently failed to maintain the fastener records required by
the Act--is stricken.
A new paragraph (2) is added to Subsection (d) as follows:
``(2) The Secretary, acting through the Director, shall
establish and maintain a hotline system to facilitate the
reporting of alleged violations of this Act, and the Secretary
shall investigate credible allegations reported through that
system.''.
Committee view
The Committee recognizes that the fastener industry
continues to do a satisfactory job of monitoring their own
manufacturers and distributors. To assist in this effort,
Section 6 directs the Department to establish and maintain a
hotline system to facilitate the reporting of alleged
violations of this Act.
section 7. recordkeeping requirements
Section 10 of the Fastener Quality Act (15 U.S.C. 5409) is
redesignated as section 7 and is amended by striking
subsections (a) and (b) and inserting the following:
``Manufacturers shall retain the record of conformance for
fasteners for 5 years, on paper or in photographic or
electronic format in a manner that allows for verification of
authenticity. Upon request of a distributor who has purchased a
fastener, or a person who has purchased a fastener for use in
the production of a commercial product, the manufacturer of the
fastener shall make available information in the record of
conformance to the requester.''
Committee view
To ensure accountability, Section 7 requires manufacturers
to retain a record of conformance for fasteners for 5 years.
The Committee intends for commercial end-users of purchased
fasteners to have access to the documents upon reasonable
demand. Finally, the Committee intends to reduce the burdensome
paperwork requirements of the FQA by allowing documents to be
stored and transmitted in electronic format.
SECTION 8. RELATIONSHIP TO STATE LAWS
Section 11 of the Fastener Quality Act (15 U.S.C. 5410) is
redesignated as section 8.
SECTION 9. CONSTRUCTION
Section 12 of the Fastener Quality Act (15 U.S.C. 5411) is
redesignated as section 9 and is amended by striking ``in
effect on the date of enactment of this Act.''
SECTION 10. CERTIFICATION AND ACCREDITATION
Sections 13 and 15 of the Fastener Quality Act (15 U.S.C.
5412 and 14) are repealed, and the following new section is
inserted at the end of that Act:
``(a) Certification.--A person publishing a document
setting forth guidance or requirements for the certification of
manufacturing systems, including fastener manufacturing
systems, by an accredited third party may petition the Director
to approve such document for use as described in section
3(6)(B)(iii)(I). The Director shall act upon a petition within
180 days after its filing, and shall approve such petition if
the document provides equal or greater rigor and reliability as
compared to ISO/IEC Guide 62.
``(b) Accreditation.--A person publishing a document
setting forth guidance or requirements for the approval of
accreditation bodies to accredit third parties described in
subsection (a) may petition the Director to approve such
document for use as described in section 3(6)(B)(iii)(I). The
Director shall act upon a petition within 180 days after its
filing, and shall approve such petition if the document
provides equal or greater rigor and reliability as compared to
ISO/IEC Guide 61.
``(c) Laboratory Accreditation.--A person publishing a
document setting forth guidance or requirements for the
accreditation of laboratories may petition the Director to
approve such document for use as described in section 3(1)(A).
The Director shall act upon a petition within 180 days after
its filing, and shall approve such petition if the document
provides equal or greater rigor and reliability as compared to
ISO/IEC Guide 25.
``(d) Approval of Accredition Bodies.--A person publishing
a document setting forth guidance or requirements for the
approval of accreditation bodies to accredit laboratories may
petition the Director to approve such document for use as
described in section 3(1)(B). The Director shall act upon a
petition within 180 days after its filing, and shall approve
such petition if the document provides equal or greater rigor
and reliability as compared to ISO/IEC Guide 58.''.
Committee view
As discussed in Section 3, systems that meet ISO-9000,
industry-specific derivatives of that standard, or other
systems that meet the specified performance criteria of the
bill are automatically deemed to be qualifying QASs. The
Committee believes the Department's role is to determine the
equivalence of certain third-party certification processes to
the ISO Guide 61/62 process in a timely manner.
The Committee recognizes that quality management systems
are dynamic, as are the recognized means of evaluating them.
According, Section 10 is intended to give the Director the
ability to expand the universe of quality management systems
and the means of evaluating those systems. At the same time,
Section 10 requires that such new systems or evaluation methods
be recognized as providing the same or greater rigor and
reliability as those referenced in the bill.
section 11. applicability
At the end of the Fastener Quality Act, insert the
following new section:
``The requirements of this Act shall be applicable only to
fasteners fabricated 180 days or more after the date of the
enactment of the Fastener Quality Act Amendments of 1999,
except that if a manufacturer or distributor of fasteners
fabricated before that date designates a record of conformance
for such fasteners, representations about such fasteners shall
be subject to the requirements of this Act.''.
Committee view
Recognizing that manufacturers and distributors of
fasteners may have fasteners in stock that were fabricated
before enactment of this legislation, Section 11 allows those
fasteners to be represented as in compliance with the FQA if
the manufacturer or distributor designates a record of
conformance for such fasteners. The representations about such
fasteners shall be subject to the requirements and penalties of
this Act.
section 12. effective date
Section 4(d) of the Fastener Quality Act, as added by
section 4 of this Act, shall take effect 2 years after the date
of enactment of this Act.
Committee view
Section 12 states that the requirement for the use of
accredited labs takes effect 2 years after the enactment date
of this Act. This is necessary and appropriate for several
reasons. First, although a number of labs have been accredited
by NIST, the committee is not convinced that a sufficient
number of labs are available to do all required tests within a
reasonable time. The 2-year time period allows manufacturers
adequate time to locate an accredited lab or to accredit their
own in-house facility if desired.
Second, the committee is concerned that existing business
relationships could be disrupted unintentionally without the 2-
year delay. If a manufacturer is currently using a lab that is
not accredited, but is providing good results, the committee
does not envision that the manufacturer would be forced to
choose another lab immediately. The 2-year delay allows time
for the lab to become accredited, if it so chooses, without an
interruption in the business relationship.
Finally, the committee wishes to encourage manufacturers to
improve their manufacturing quality procedures. Accordingly, if
manufacturers currently have internal labs, the 2-year delay
gives adequate time to meet the new requirements.
VII. Committee Views
[Committee Views are included in Section by Section]
VIII. Cost Estimate
Rule XIII, clause 3(d)(2) of the House of Representatives
requires each committee report accompanying each bill or joint
resolution of a public character to contain: (1) an estimate,
made by such committee, of the costs which would be incurred in
carrying out such bill or joint resolution in the fiscal year
in which it is reported and in each of the five fiscal years
following such fiscal year (or for the authorized duration of
any program authorized by such bill or joint resolution, if
less than five years); (2) a comparison of the estimate of
costs described in subparagraph (1) of this paragraph made by
such committee with an estimate of such costs made by any
Government agency and submitted to such committee; and (3) when
practicable a comparison of the total estimated funding level
for the relevant program (or programs) with the appropriate
levels under current law. However, House Rule XIII, clause
3(d)(3)(B) provides that this requirement does not apply when a
cost estimate and comparison prepared by the Director of
Congressional Budget Office under section 403 of the
Congressional Budget Act of 1974 has been timely submitted
prior to the filing of the report and included in the report
pursuant to House Rule XIII, clause 3(c)(3). A cost estimate
and comparison prepared by the Director of the Congressional
Budget Office under section 403 of the Congressional Budget Act
of 1974 has been timely submitted prior to the filing of this
report and is included in Section XI of this report pursuant to
House Rule XIII, clause 3(c)(3)
Rule XIII, clause 3(c)(2) of the House of Representatives
requires each committee report that accompanies a measure
providing new budget authority (other than continuing
appropriations), new spending authority, or new credit
authority, or changes in revenues or tax expenditures to
contain a cost estimate, as required by section 308(a)(1) of
the Congressional Budget Act of 1974 and, when practicable with
respect to estimates of new budget authority, a comparison of
the total estimated funding level for the relevant program (or
programs) to the appropriate levels under current law. H.R.1183
does not contain any new budget authority, credit authority, or changes
in revenues or tax expenditures.
IX. Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 8, 1999.
Hon. F. James Sensenbrenner, Jr.,
Chairman, Committee on Science,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1183, the Fastener
Quality Act Amendments Act of 1999.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Mark Hadley
(for federal costs) and Lesley Frymier (for the private-sector
impact).
Sincerely,
Dan L. Crippen, Director.
Enclosure.
H.R. 1183--Fastener Quality Act Amendments Act of 1999
The Fastener Quality Act (Public Law 101-592) imposes
testing, recordkeeping, and disclosure requirements on
manufacturers, distributors, and importers of certain screws,
bolts, nuts, studs, and load-bearing washers. H.R. 1183 would
change the requirements for certifying documents and
accrediting laboratories that test fasteners.
Based on information from the National Institute of
Standards and Technology (NIST), CBO estimates that NIST would
spend less than $500,000 a year to implement the bill, subject
to the availability of appropriated funds. H.R. 1183 would not
affect direct spending or receipts; therefore, pay-as-you-go
procedures would not apply.
H.R. 1183 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The bill would have significant effects on the private
sector. Under current law, regulations to implement the
Fastener Quality Act will go into effect on June 1, 1999. As
currently written, those regulations will impose testing,
certification, insignia, and recordkeeping requirements on
manufacturers, distributors, importers, and other private-
sector entities in the fastener industry. According to industry
sources, the pending regulations will impose significant costs
on those entities. H.R. 1183 would amend the law that underlies
the new regulations, and NIST would have to modify the
regulations to conform with the provisions of the bill. Based
on information provided by government and industry sources, CBO
estimates that the resulting new regulations would
significantly reduce the requirements imposed on the private
sector relative to current law.
The CBO staff contacts are Mark Hadley for federal costs
and Lesley Frymier for the private-sector impact. This estimate
was approved by Robert A. Sunshine, Deputy Assistant Director
for Budget Analysis.
X. Compliance With Public Law 104-4
H.R. 1183 contains no unfunded mandates.
XI. Committee Oversight Findings and Recommendations
Rule XIII, clause 3(c)(1) of the House of Representatives
requires each committee report to include oversight findings
and recommendations required pursuant to clause 2(b)(1) of rule
X. The Committee has no oversight findings.
XII. Oversight Findings and Recommendations by the Committee on
Government Reform and Oversight
Rule XIII, clause 3(c)(4) of the House of Representatives
requires each committee report to contain a summary of the
oversight findings and recommendations made by the House
Government Reform and Oversight Committee pursuant to clause
4(c)(2) of rule X, whenever such findings and recommendations
have been submitted to the Committee in a timely fashion. The
Committee on Science has received no such findings or
recommendations from the Committee on Government Reform and
Oversight.
XIII. Constitutional Authority Statement
Rule XIII, clause 3(d)(1) of the House of Representatives
requires each report of a committee on a bill or joint
resolution of a public character to include a statement citing
the specific powers granted to the Congress in the Constitution
to enact the law proposed by the bill or joint resolution.
Article I, section 8 of the Constitution of the United States
grants Congress the authority to enact H.R. 1183.
XIV. Federal Advisory Committee Statement
H.R. 1183 does not establish nor authorize the
establishment of any advisory committee.
XV. Congressional Accountability Act
The Committee finds that H.R. 1183 does not relate to the
terms and conditions of employment or access to public services
or accommodations within the meaning of section 102(b)(3) of
the Congressional Accountability Act (Public Law 104-1).
XVI. Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
FASTENER QUALITY ACT
* * * * * * *
[SEC. 2. FINDINGS AND PURPOSE.
[(a) Findings.--The Congress finds that--
[(1) the American economy uses billions of fasteners
each year;
[(2) millions of mismarked, substandard, counterfeit,
and other nonconforming fasteners have been sold in
commerce to end-users in the United States, and their
use has dramatically increased the risk of equipment
and infrastructure failures;
[(3) both the military and civilian sectors of the
economy have encountered unnecessary, unwarranted, and
dangerous equipment and construction failures, as well
as extraordinary expenses, as a result of the use of
nonconforming fasteners;
[(4) the purchase and use of nonconforming fasteners
stem from material misrepresentations about such
fasteners made by certain manufacturers, importers, and
distributors engaged in commerce;
[(5) current fastener standards of measurement
evaluate bolts and other fasteners according to
multiple criteria, including strength, hardness, and
composition, and provide grade identification markings
on fasteners to make the characteristics of individual
fasteners clear to purchasers and users;
[(6) current tests required by consensus standards,
designed to ensure that fasteners are of standard
measure, are adequate and appropriate for use as
standards in a program of high-strength fastener
testing;
[(7) the lack of traceability of fasteners sold in
commerce is a serious impediment to effective quality
control efforts; and
[(8) the health and safety of Americans is threatened
by the widespread sale in commerce of mismarked,
substandard, and counterfeit fasteners, a practice
which also harms American manufacturers, importers, and
distributors of safe and conforming fasteners, and
workers in the American fastener industry.
[(b) Purpose.--In order to protect public safety, to deter
the introduction of nonconforming fasteners into commerce, to
improve the traceability of fasteners in commerce, and
generally to provide commercial and governmental customers with
greater assurance that fasteners meet stated specifications, it
is the purpose of this Act to create procedures for the
testing, certification, and distribution of certain fasteners
used in commerce within the United States.
[SEC. 3. DEFINITIONS.
[As used in this Act, the term--
[(1) ``alter'' means to alter--
[(A) by through-hardening,
[(B) by electroplating of fasteners, or
[(C) by machining;
[(2) ``consensus standards organization'' means the
American Society for Testing and Materials, American
National Standards Institute, American Society of
Mechanical Engineers, Society of Automotive Engineers,
or any other consensus standard-setting organization
determined by the Secretary to have comparable
knowledge, expertise, and concern for health and safety
in the field for which such organization purports to
set standards;
[(3) ``container'' means any package of fasteners
traded in commerce;
[(4) ``Director'' means the Director of the National
Institute of Standards and Technology;
[(5) ``fastener'' means--
[(A) a--
[(i) screw, nut, bolt, or stud having
internal or external threads, or
[(ii) a load-indicating washer,
with a nominal diameter of 5 millimeters or
greater, in the case of such items described in
metric terms, or \1/4\ inch or greater, in the
case of such items described in terms of the
English system of measurement, which contains
any quantity of metal and is held out as
meeting a standard or specification which
requires through-hardening,
[(B) a screw, nut, bolt, or stud having
internal or external threads which bears a
grade identification marking required by a
standard or specification, or
[(C) a washer to the extent that it is
subject to a standard or specification
applicable to a screw, nut, bolt, or stud
described in subparagraph (B),
except that such term does not include any screw, nut,
bolt, or stud that is produced and marked as ASTM A 307
Grade A or produced in accordance with ASTM F 432;
[(6) ``grade identification marking'' means any
symbol appearing on a fastener purporting to indicate
that the fastener's base material, strength properties,
or performance capabilities conform to a specific
standard of a consensus standards organization or
government agency;
[(7) ``importer'' means a person located within the
United States who contracts for the initial purchase of
fasteners manufactured outside the United States for
resale or such person's use within the United States;
[(8) ``Institute'' means the National Institute of
Standards and Technology;
[(9) ``lot'' means a quantity of fasteners of one
part number fabricated by the same production process
from the same coil or heat number of metal as provided
by the metal manufacturer and submitted for inspection
and testing at one time;
[(10) ``manufacturer'' means a person who fabricates
fasteners, or who alters any item so that it becomes a
fastener;
[(11) ``private label distributor'' means a person
who contracts with a manufacturer for the fabrication
of fasteners bearing the distributor's distinguishing
insignia;
[(12) ``Secretary'' means the Secretary of Commerce;
[(13) ``standards and specifications'' means the
provisions of a document published by a consensus
standards organization or a government agency; and
[(14) ``through-harden'' means heating above the
transformation temperature followed by quenching and
tempering for the purpose of achieving a uniform
hardness.]
SEC. 2. FINDINGS.
The Congress finds that--
(1) the United States fastener industry is a
significant contributor to the global economy,
employing thousands of workers in hundreds of
communities;
(2) the American economy uses billions of fasteners
each year;
(3) state-of-the-art manufacturing and improved
quality assurance systems have dramatically improved
fastener quality, so virtually all fasteners sold in
commerce meet or exceed the consensus standards for the
uses to which they are applied;
(4) a small number of mismarked, misrepresented, and
counterfeit fasteners do enter commerce in the United
States; and
(5) multiple criteria for the identification of
fasteners exist, including grade identification
markings and manufacturer's insignia, to enable
purchasers and users of fasteners to accurately
evaluate the characteristics of individual fasteners.
SEC. 3. DEFINITIONS.
As used in this Act, the term--
(1) ``accredited laboratory'' means a fastener
testing facility used to perform end-of-line testing
required by a consensus standard or standards to verify
that a lot of fasteners conforms to the grade
identification marking called for in the consensus
standard or standards to which the lot of fasteners has
been manufactured, and which--
(A) meets the requirements of ISO/IEC Guide
25, including revisions from time to time, or
another document approved by the Director under
section 10(c); and
(B) has been accredited by a laboratory
accreditation body that meets the requirements
of ISO/IEC Guide 58, including revisions from
time to time, or another document approved by
the Director under section 10(d);
(2) ``consensus standard'' means the provisions of a
document that describes fastener characteristics
published by a consensus standards organization or a
Federal agency, and does not include a proprietary
standard;
(3) ``consensus standards organization'' means the
American Society for Testing and Materials, the
American National Standards Institute, the American
Society of Mechanical Engineers, the Society of
Automotive Engineers, the International Organization
for Standardization, any other organization identified
as a United States consensus standards organization or
a foreign and international consensus standards
organization in the Federal Register at 61 Fed. Reg.
50582-83 (September 26, 1996), and any successor
organizations thereto;
(4) ``Director'' means the Director of the National
Institute of Standards and Technology;
(5) ``distributor'' means a person who purchases
fasteners for the purpose of reselling them at
wholesale to unaffiliated entities or individuals (an
original equipment manufacturer and its dealers shall
be considered affiliated entities for purposes of this
Act);
(6) ``fastener'' means a metallic screw, nut, bolt,
or stud having internal or external threads, with a
nominal diameter of 6 millimeters or greater, in the
case of such items described in metric terms, or \1/4\
inch or greater, in the case of such items described in
terms of the English system of measurement, or a load-
indicating washer, that is through-hardened or
represented as meeting a consensus standard that calls
for through-hardening, and that is grade identification
marked or represented as meeting a consensus standard
that requires grade identification marking, except that
such term does not include any screw, nut, bolt, stud,
or load-indicating washer that is--
(A) part of an assembly;
(B) in a package containing no more than 100
of any one screw, nut, bolt, stud, or load-
indicating washer at the time of sale;
(C) produced and marked as ASTM A 307 Grade
A, or a successor standard thereto;
(D) produced in accordance with ASTM F 432,
or a successor standard thereto;
(E) specifically manufactured for use on an
aircraft if the quality and suitability of
those fasteners for that use has been
approved--
(i) by the Federal Aviation
Administration; or
(ii) by a foreign airworthiness
authority as described in part 21.29,
21.500, 21.502, or 21.617 of title 14
of the Code of Federal Regulations;
(F) manufactured in accordance with a
fastener quality assurance system; or
(G) manufactured to a proprietary standard,
whether or not such proprietary standard
directly or indirectly references a consensus
standard or any portion thereof;
(7) ``fastener quality assurance system'' means--
(A) a system that meets the requirements,
including revisions from time to time, of--
(i) International Organization for
Standardization (ISO) Standard 9000,
9001, 9002, or TS16949;
(ii) Quality System (QS) 9000
Standard;
(iii) Verband der Automobilindustrie
e. V. (VDA) 6.1 Standard; or
(iv) Aerospace Basic Quality System
Standard AS9000; or
(B) any fastener manufacturing system--
(i) that has as a stated goal the
prevention of defects through
continuous improvement;
(ii) that seeks to attain the goal
stated in clause (i) by incorporating--
(I) advance quality planning;
(II) monitoring and control
of the manufacturing process;
(III) product verification
embodied in a comprehensive
written control plan for
product and process
characteristics, and process
controls (including process
influence factors and
statistical process control),
tests, and measurement systems
to be used in production; and
(IV) the creation,
maintenance, and retention of
electronic, photographic, or
paper records required by the
control plan regarding the
inspections, tests, and
measurements performed pursuant
to the control plan; and
(iii) that--
(I) is subject to
certification in accordance
with the requirements of ISO/
IEC Guide 62, including
revisions from time to time (or
another document approved by
the Director under section
10(a)), by a third party who is
accredited by an accreditation
body in accordance with the
requirements of ISO/IEC Guide
61, including revisions from
time to time (or another
document approved by the
Director under section 10(b));
or
(II) undergoes regular or
random evaluation and
assessment by the end user or
end users of the screws, nuts,
bolts, studs, or load-
indicating washers produced
under such fastener
manufacturing system to ensure
that such system meets the
requirements of clauses (i) and
(ii);
(8) ``grade identification marking'' means any grade-
mark or property class symbol appearing on a fastener
purporting to indicate that the lot of fasteners
conforms to a specific consensus standard, but such
term does not include a manufacturer's insignia or part
number;
(9) ``lot'' means a quantity of fasteners of one part
number fabricated by the same production process from
the same coil or heat number of metal as provided by
the metal manufacturer;
(10) ``manufacturer'' means a person who fabricates
fasteners for sale in commerce;
(11) ``proprietary standard'' means the provisions of
a document that describes characteristics of a screw,
nut, bolt, stud, or load-indicating washer and is
issued by a person who--
(A) uses screws, nuts, bolts, studs, or load-
indicating washers in the manufacture,
assembly, or servicing of its products; and
(B) with respect to such screws, nuts, bolts,
studs, or washers, is a developer and issuer of
descriptions that have characteristics similar
to consensus standards and that bear such
user's identification;
(12) ``record of conformance'' means a record or
records for each lot of fasteners sold or offered for
sale that contains--
(A) the name and address of the manufacturer;
(B) a description of the type of fastener;
(C) the lot number;
(D) the nominal dimensions of the fastener
(including diameter and length of bolts or
screws), thread form, and class of fit;
(E) the consensus standard or specifications
to which the lot of fasteners has been
manufactured, including the date, number,
revision, and other information sufficient to
identify the particular consensus standard or
specifications being referenced;
(F) the chemistry and grade of material; and
(G) the coating material and characteristics
and the applicable consensus standard or
specifications for such coating;
(13) ``represent'' means to describe one or more of a
fastener's purported characteristics in a document or
statement that is transmitted to a purchaser through
any medium;
(14) ``Secretary'' means the Secretary of Commerce;
(15) ``specifications'' means the required
characteristics identified in the contractual agreement
with the manufacturer or to which a fastener is
otherwise produced, except that the term does not
include proprietary standards; and
(16) ``through-harden'' means heating above the
transformation temperature followed by quenching and
tempering for the purpose of achieving uniform
hardness.
[SEC. 5. TESTING AND CERTIFICATION OF FASTENERS.
[(a) Requirement.--(1) No fastener shall be offered for sale
or sold in commerce unless it is part of a lot which--
[(A) conforms to the standards and specifications to
which the manufacturer represents it has been
manufactured; and
[(B) has been inspected, tested, and certified as
provided in subsections (b), (c), and (d) of this
section.
[(2)(A) Paragraph (1)(B) of this subsection shall not apply
to fasteners which are part of a lot of 50 fasteners or less
if, within 10 working days after the delivery of such
fasteners, or as soon as practicable thereafter--
[(i) inspection, testing, and certification as
provided in subsections (b), (c), and (d) is carried
out; and
[(ii) written notice detailing the results of such
inspection, testing, and certification is sent (I) to
all purchasers of such fasteners, except retail sellers
and retail consumers, and (II) to any retail seller or
retail consumer who, prior to delivery, requests such
written notice.
[(B) If a fastener is sold under this paragraph, each
purchaser of such fastener, except for retail sellers and
retail consumers unless such retail sellers and retail
consumers request such notice in advance, shall be provided,
contemporaneously with each sale anddelivery, written notice
stating that such fastener has not yet been inspected, tested, and
certified as required by this Act.
[(b) Inspection and Testing.--(1) The manufacturer of a lot
of fasteners shall cause to be inspected and tested a
representative sample, as provided in paragraph (2) of this
subsection, of the fasteners in such lot to determine whether
the lot conforms to the standards and specifications to which
the manufacturer represents it has been manufactured. Such
inspection and testing shall be performed by a laboratory
accredited in accordance with the procedures and conditions
specified by the Secretary under section 6. The standards and
specifications to which the manufacturer represents such lot
has been manufactured shall be disclosed by the manufacturer to
the laboratory at the time the lot is submitted for inspection
and testing under this paragraph. The manufacturer of a lot may
perform the inspection and testing required by this paragraph
in a laboratory which it owns or with which it is otherwise
affiliated, if such laboratory is accredited in accordance with
the procedures and conditions specified by the Secretary under
section 6; unless the Secretary finds that, as to a specific
type of fastener and as to a specific type of inspection or
testing, a ban on manufacturer ownership or affiliation with
the accredited laboratory would increase the protection of
health and safety of the public or industrial workers.
[(2) The size, selection, and integrity of the sample to be
inspected and tested under paragraph (1) shall be governed--
[(A) by the standards and specifications to which the
manufacturer represents the fasteners in the sample
have been manufactured; or
[(B) if such standards and specifications do not
provide for the size, selection, or integrity of the
sample, by sampling procedures prescribed by the
Secretary, who shall to the extent practicable use
consensus testing standards and related materials.
Nothing in this paragraph shall prohibit a purchaser from
requiring the inspection and testing of a greater number of
fasteners from a lot than is specified in the applicable
standards and specifications or in the applicable sampling
procedures prescribed by the Secretary.
[(c) Laboratory Report of Testing.--If a laboratory
performing the inspection and testing under subsection (b)(1)
determines, as to the characteristics selected under the
sampling procedures prescribed by the Secretary and based on
the sample examined, that a lot conforms to the standards and
specifications to which the manufacturer represents it has been
manufactured, the laboratory shall provide to the manufacturer
a written inspection and testing report with respect to such
lot. The report, which shall be in a form prescribed by the
Secretary by regulation, shall--
[(1) state the manufacturer's name, the part
description, and the lot number and note the grade
identification mark and insignia found on the fastener;
[(2) reference the standards and specifications
disclosed by the manufacturer with respect to such lot
under subsection (b)(1);
[(3) list the markings and characteristics selected
under the Secretary's procedures for testing
significant characteristics required by the standards
and specifications described in paragraph (2) and
specify the results of the inspection and testing under
subsection (b)(1);
[(4) except as provided in subsection (d), state
whether, based on the samples provided as
representative of the lot, such lot has been found
after such inspection and testing to conform to such
standards and specifications; and
[(5) bear the original signature of a laboratory
employee or officer determined by the Secretary to be
responsible for the accuracy of the report and of the
inspection and testing to which it relates.
[(d) Alternative Procedure for Chemical Characteristics.--
Notwithstanding the requirements of subsections (b) and (c), a
manufacturer shall be deemed to have demonstrated, for purposes
of subsection (a)(1), that the chemical characteristics of a
lot conform to the standards and specifications to which the
manufacturer represents such lot has been manufactured if the
following requirements are met:
[(1) The coil or heat number of metal from which such
lot was fabricated has been inspected and tested with
respect to its chemical characteristics by a laboratory
accredited in accordance with the procedures and
conditions specified by the Secretary under section 6.
[(2) Such laboratory has provided to the
manufacturer, either directly or through the metal
manufacturer, a written inspection and testing report,
which shall be in a form prescribed by the Secretary by
regulation, listing the chemical characteristics of
such coil or heat number.
[(3) The report described in paragraph (2) indicates
that the chemical characteristics of such coil or heat
number conform to those required by the standards and
specifications to which the manufacturer represents
such lot has been manufactured.
[(4) The manufacturer demonstrates that such lot has
been fabricated from the coil or heat number of metal
to which the report described in paragraphs (2) and (3)
relates.
In prescribing the form of report required by subsection (c),
the Secretary shall provide for an alternative to the statement
required by subsection (c)(4), insofar as such statement
pertains to chemical characteristics, for cases in which a
manufacturer elects to use the procedure permitted by this
subsection.
[SEC. 6. LABORATORY ACCREDITATION.
[(a) Establishment of Accreditation Program.--(1) The
Secretary, acting through the Director, shall issue regulations
which shall include--
[(A) procedures and conditions, including sampling
procedures referred to in section 5, for the
accreditation by the Institute of laboratories engaged
in the inspection and testing of fasteners under
section 5;
[(B) procedures and conditions (which shall be
consistent with the procedures and conditions
established under subparagraph (A)), using to the
extent practicable the requirements of national or
international consensus documents intended to govern
the operation of accreditation bodies, under which
private entities may apply for approval by the Secretary
to engage directly in the accreditation of laboratories in
accordance with the requirements of this Act; and
[(C) conditions (which shall be consistent with the
procedures and conditions established under
subparagraph (A)), under which the accreditation of
foreign laboratories by their governments or
organizations recognized by the Director shall be
deemed to satisfy the laboratory accreditation
requirements of this section.
[(2) Upon establishing a laboratory accreditation program
under paragraph (1), the Secretary shall publish a notice in
the Federal Register stating that the Secretary is prepared to
accept applications for accreditation of such laboratories.
[(3) No accreditation provided under the terms of this
subsection shall be effective for a period of greater than 3
years.
[(b) Laboratory Accreditation Procedures.--Existing Institute
accreditation procedures stated in part 7 of title 15, Code of
Federal Regulations, as in effect on the date of enactment of
this Act, supplemented as the Secretary considers necessary,
shall be used to accredit laboratories under the accreditation
program established under subsection (a).
[(c) Ensuring Compliance.--(1) The Secretary shall ensure
that--
[(A) private entities accrediting laboratories under
procedures and conditions established under subsection
(a)(1)(B) comply with such procedures and conditions,
and
[(B) laboratories accredited by such private
entities, or by foreign governments pursuant to
subsection (a)(1)(C), comply with the requirements for
such accreditation.
[(2) The Secretary may require any such private entity or
laboratory to provide all records and materials that may be
necessary to allow the Secretary to carry out this subsection.
[(d) Operation of Laboratory Accreditation Program.--(1) The
Director may hire such contractors as are necessary to carry
out the accreditation program established under subsection (a).
[(2) Costs to the Institute and to the Secretary for the
establishment and operation of the accreditation program under
this section shall be fully reimbursable to the Institute or to
the Secretary, as appropriate, through fees or other charges
for accreditation services under such program.
[(e) Recommendations to Consensus Standards Organizations.--
The Director shall periodically transmit to appropriate
consensus standards organizations any information or
recommendations that may be useful in the establishment or
application by such organizations of standards and
specifications for fasteners.
[SEC. 7. SALE OF FASTENERS SUBSEQUENT TO MANUFACTURE.
[(a) Domestically Produced Fasteners.--It shall be unlawful
for a manufacturer to sell any shipment of fasteners covered by
this Act which are manufactured in the United States unless the
fasteners--
[(1) have been manufactured according to the
requirements of the applicable standards and
specifications and have been inspected and tested by a
laboratory accredited in accordance with the procedures
and conditions specified by the Secretary under section
6; and
[(2) an original laboratory testing report described
in section 5(c) and a manufacturer's certificate of
conformance are on file with the manufacturer, or under
such custody as may be prescribed by the Secretary, and
available for inspection.
[(b) Fasteners of Foreign Origin.--(1) Except as provided in
paragraph (2) of this subsection, it shall be unlawful--
[(A) for any person to sell to any importer, and
[(B) for any importer to purchase,
any shipment of fasteners which are manufactured outside the
United States unless delivery of such shipment to such importer
is accompanied by a manufacturer's certificate as described in
subsection (a), an original laboratory testing report described
in section 5(c), with respect to each lot from which such
fasteners were taken, and any other relevant lot identification
information.
[(2) The requirement under paragraph (1) of this subsection
that the delivery of such a shipment to such importer be
accompanied by an original laboratory testing report shall not
apply in the case of fasteners imported into the United
States--
[(A) as products manufactured within a nation which
is party to a congressionally-approved free trade
agreement with the United States that is in effect, so
long as the Secretary certifies that satisfactory
arrangements have been reached by which purchasers
within the United States can readily gain access to an
original laboratory testing report for such fasteners;
or
[(B) as Canadian-origin products under the United
States-Canada Automobile Pact for use as original
equipment in the manufacture of motor vehicles.
[(c) Option For Importers and Private Label Distributors.--
(1) Notwithstanding section 5(a) and subsections (a) and (b) of
this section, delivery of a lot, or portion of a lot, of
fasteners may be made to an importer or private label
distributor without the required original copy of the
laboratory testing report if--
[(A) the manufacturer provides to the importer or
private label distributor a manufacturer's certificate
certifying that the fasteners have been manufactured
according to the requirements of the applicable
standards and specifications; and
[(B) the importer or private label distributor
assumes responsibility in writing for the inspection
and testing of such lot or portion by a laboratory
accredited in accordance with the procedures and
conditions specified by the Secretary under section 6.
[(2) If the importer or private distributor assumes the
responsibility in writing for the inspection and testing of
such lot or portion, the provisions of section 5(a) and
subsections (a) and (b) of this section shall apply to the
importer or private label distributor in the same manner and to
the same extent as to a manufacturer; except that the importer
or private label distributor shall provideto the testing
laboratory the manufacturer's certificate described under paragraph (1)
of this subsection.
[(d) Alterations Subsequent to Manufacture.--(1) Any person
who significantly alters a fastener so that such fastener no
longer conforms to the description in the relevant test report
issued under section 5(c), and who thereafter offers for sale
or sells such altered fastener, shall be treated as a
manufacturer for purposes of this Act and shall cause such
altered fastener to be inspected and tested under section 5 or
this section as though it were newly manufactured, unless
delivery of such fastener to the purchaser is accompanied by a
written statement noting the original lot number, disclosing
the subsequent alteration, and warning that such alteration may
affect the dimensional or physical characteristics of the
fastener.
[(2) Any person who knowingly sells an altered fastener and
who did not alter such fastener shall provide to the purchaser
a copy of the statement required by paragraph (1).
[(e) Commingling.--It shall be unlawful for any manufacturer,
importer, or private label distributor to commingle like
fasteners from different lots in the same container, except
that such manufacturer, importer, or private label distributor
may commingle like fasteners of the same type, grade, and
dimension from not more than two tested and certified lots in
the same container during repackaging and plating operations.
Any container which contains fasteners from two lots shall be
conspicuously marked with the lot identification numbers of
both lots.
[(f) Subsequent Purchaser.--If a person who purchases
fasteners for any purpose so requests either prior to the sale
or at the time of sale, the seller shall conspicuously mark the
container of the fasteners with the lot number from which such
fasteners were taken.]
SEC. 4. SALE OF FASTENERS.
(a) General Rule.--It shall be unlawful for a manufacturer or
distributor, in conjunction with a sale or offer for sale of a
fastener, to knowingly misrepresent or falsify--
(1) the record of conformance for the lot of
fasteners;
(2) the identification, characteristics, properties,
mechanical or performance marks, chemistry, or strength
of the lot of fasteners; or
(3) the manufacturer's insignia.
(b) Representations.--A direct or indirect reference to a
consensus standard to represent that a fastener conforms to
particular requirements of the consensus standard shall not be
construed as a representation that the fastener meets all the
requirements of the consensus standard.
(c) Specifications.--A direct or indirect contractual
reference to a consensus standard for the purpose of
identifying particular requirements of the consensus standard
that serve as specifications shall not be construed to require
that the fastener meet all the requirements of the consensus
standard.
(d) Use of Accredited Laboratories.--In the case of fasteners
manufactured solely to a consensus standard or standards, end-
of-line testing required by the consensus standard or
standards, if any, for the purpose of verifying that a lot of
fasteners conforms with the grade identification marking called
for in the consensus standard or standards to which the lot of
fasteners has been manufactured shall be conducted by an
accredited laboratory.
SEC. [8.] 5. MANUFACTURERS' INSIGNIAS.
[(a) General Rule.--No fastener which is required by the
standards and specifications to which it was manufactured to
bear a raised or depressed insignia identifying its
manufacturer or private label distributor shall be offered for
sale or sold in commerce unless the manufacturer or private
label distributor of such fastener has complied with the
requirements prescribed by the Secretary in connection with the
program established under subsection (b) of this section.]
(a) General Rule.--Unless the specifications provide
otherwise, a fastener that is required by the applicable
consensus standard or standards to bear an insignia identifying
its manufacturer shall not be offered for sale or sold in
commerce unless--
(1) the fastener bears such insignia; and
(2) the manufacturer has complied with the insignia
recordation requirements established under subsection
(b).
(b) Recordation.--The Secretary shall establish, by
regulation, a program to provide for the recordation of the
insignias of manufacturers [and private label distributors
described in subsection (a), to ensure the traceability of a
fastener to its manufacturer or private label distributor.]
described in subsection (a).
SEC. [9.] 6. REMEDIES AND PENALTIES.
(a) * * *
(b) Civil Penalties.--(1) * * *
* * * * * * *
(3) Any person against whom a civil penalty is assessed under
paragraph (2) [of this section] of this subsection may obtain
review thereof in the appropriate court of the United States by
filing a notice of appeal in such court within 30 days from the
date of such order and by simultaneously sending a copy of such
notice by certified mail to the Secretary. The findings and
order of the Secretary shall be set aside by such court if they
are found to be unsupported by substantial evidence, as
provided in section 706(2) of title 5, United States Code.
(4) The Secretary may arbitrate, compromise, modify, or
remit, with or without conditions, any civil penalty which is
subject to imposition or which has been imposed under this
section prior to referral to the Attorney General under
paragraph (5).
* * * * * * *
(c) Criminal Penalties.--(1) * * *
* * * * * * *
[(3) Whoever negligently fails to maintain records relating
to a fastener in violation of this Act or a regulation under
this Act shall be fined under title 18, United States Code, or
imprisoned not more than 2 years, or both.]
(d) Enforcement.--(1) The Secretary may designate officers or
employees of the Department of Commerce to conduct
investigations pursuant to this Act. In conducting such
investigations, those officers or employees may, to the extent
necessary or appropriateto the enforcement of this Act,
exercise such authorities as are conferred upon them by other laws of
the United States, subject to policies and procedures approved by the
Attorney General.
(2) The Secretary, acting through the Director, shall
establish and maintain a hotline system to facilitate the
reporting of alleged violations of this Act, and the Secretary
shall investigate credible allegations reported through that
system.
SEC. [10.] 7. RECORDKEEPING REQUIREMENTS.
[(a) Laboratories.--Laboratories which perform inspections
and testing under section 5(b) shall retain for 5 years all
records concerning the inspection and testing, and
certification, of fasteners under section 5.
[(b) Manufacturers, Importers, Private Label Distributors,
and Persons who Make Significant Alterations.--Manufacturers,
importers, private label distributors, and persons who make
significant alterations shall retain for 5 years all records
concerning the inspection and testing, and certification, of
fasteners under section 5, and shall provide copies of any
applicable laboratory testing report or manufacturer's
certificate upon request to the subsequent purchaser of
fasteners taken from the lot to which such testing report or
manufacturer's certificate relates.]
Manufacturers shall retain the record of conformance for
fasteners for 5 years, on paper or in photographic or
electronic format in a manner that allows for verification of
authenticity. Upon request of a distributor who has purchased a
fastener, or a person who has purchased a fastener for use in
the production of a commercial product, the manufacturer of the
fastener shall make available information in the record of
conformance to the requester.
SEC. [11.] 8. RELATIONSHIP TO STATE LAWS.
Nothing in this Act shall be construed to preempt any rights
or causes of action that any buyer may have with respect to any
seller of fasteners under the law of any State, except to the
extent that the provisions of this Act are in conflict with
such State law.
SEC. [12.] 9. CONSTRUCTION.
Nothing in this Act shall be construed to limit or otherwise
affect the authority of any consensus standards organization to
establish, modify, or withdraw any standards and specifications
under any other law or authority [in effect on the date of
enactment of this Act].
[SEC. 13. REGULATIONS.
The Secretary shall issue such regulations as may be
necessary to implement this Act.
[SEC. 15. APPLICABILITY.
(a) Transitional Rule.--The requirements of this Act shall be
applicable only to fasteners fabricated 180 days or more after
the Secretary issues final regulations required under sections
5, 6, and 8, except that the Secretary may extend such time
period if the Secretary determines that an insufficient number
of laboratories have been accredited to perform the volume of
inspection and testing required. Upon any such extension, and
every 6 months thereafter during such extension, the Secretary
shall submit a report to the Congress explaining the reasons
for such extension and the steps being taken to ensure the
accreditation of a sufficient number of laboratories.
[(b) Aircraft Exemption.--
[(1) In general.--The requirements of this Act shall
not apply to fasteners specifically manufactured or
altered for use on an aircraft if the quality and
suitability of those fasteners for that use has been
approved by the Federal Aviation Administration, except
as provided in paragraph (2).
[(2) Exception.--Paragraph (1) shall not apply to
fasteners represented by the fastener manufacturer as
having been manufactured in conformance with standards
or specifications established by a consensus standards
organization or a Federal agency other than the Federal
Aviation Administration.]
SEC. 10. CERTIFICATION AND ACCREDITATION.
(a) Certification.--A person publishing a document setting
forth guidance or requirements for the certification of
manufacturing systems, including fastener manufacturing
systems, by an accredited third party may petition the Director
to approve such document for use as described in section
3(7)(B)(iii)(I). The Director shall act upon a petition within
180 days after its filing, and shall approve such petition if
the document provides equal or greater rigor and reliability as
compared to ISO/IEC Guide 62.
(b) Accreditation.--A person publishing a document setting
forth guidance or requirements for the approval of
accreditation bodies to accredit third parties described in
subsection (a) may petition the Director to approve such
document for use as described in section 3(7)(B)(iii)(I). The
Director shall act upon a petition within 180 days after its
filing, and shall approve such petition if the document
provides equal or greater rigor and reliability as compared to
ISO/IEC Guide 61.
(c) Laboratory Accreditation.--A person publishing a document
setting forth guidance or requirements for the accreditation of
laboratories may petition the Director to approve such document
for use as described in section 3(1)(A). The Director shall act
upon a petition within 180 days after its filing, and shall
approve such petition if the document provides equal or greater
rigor and reliability as compared to ISO/IEC Guide 25.
(d) Approval of Accreditation Bodies.--A person publishing a
document setting forth guidance or requirements for the
approval of accreditation bodies to accredit laboratories may
petition the Director to approve such document for use as
described in section 3(1)(B). The Director shall act upon a
petition within 180 days after its filing, and shall approve
such petition if the document provides equal or greater rigor
and reliability as compared to ISO/IEC Guide 58.
SEC. 11. APPLICABILITY.
The requirements of this Act shall be applicable only to
fasteners fabricated 180 days or more after the date of the
enactment of the Fastener Quality Act Amendments of 1999,
except that if a manufacturer or distributor of fasteners
fabricated before that date prepares a record of conformance
for such fasteners, representations about such fasteners shall
be subject to the requirements of this Act.
XVII. Committee Recommendations
On March 25, 1999, a quorum being present, the Committee
favorably reported H.R. 1183, The Fastener Quality Amendments
Act of 1999, by a voice vote, and recommends its enacted.
XVIII. Exchange of Committee Correspondence
House of Representatives,
Committee on Commerce,
Washington, DC, April 17, 1999.
Hon. F. James Sensenbrenner, Jr.,
Chairman, Committee on Science,
Rayburn House Office Building, Washington, DC.
Dear Chairman Sensenbrenner: On March 25, 1999, the
Committee on Science ordered reported H.R. 1183, the Fastener
Quality Act Amendments Act of 1999, with amendments. As you
know, the Committee on Commerce was named as an additional
committee of jurisdiction and has had a longstanding interest
in the issue of fastener quality and the Fastener Quality Act
(15 U.S.C. Sec. 5401 et al). This interest goes back at least
to the 100th Congress, at which time the Committee undertook an
investigation of counterfeit and substandard fasteners. This
investigation resulted in the issuance of a unanimously
approved Subcommittee report--``The Threat from Substandard
Fasteners: Is America Losing Its Grip?''--which ultimately led
to the approval by our respective committees of the Fastener
Quality Act of 1990.
As you know, the legislation, as amended, significantly
restructures the Fastener Quality Act and adopts suggestions
from both the Department of Commerce and the affected
industries regarding changes in the Act. These changes must be
enacted before June 23, 1999, when the rules promulgated by the
Department of Commerce would otherwise become effective.
In light of the upcoming deadline, I recognize your desire
to bring this legislation before the House in an expeditious
manner. Given our involvement in the process thus far, and your
assurance that we will work to address concerns raised by our
minority before this legislation is considered by the House, I
will not exercise the Committee's right to a referral. By
agreeing to waive its consideration of the bill, however, the
Commerce Committee does not waive its jurisdiction over H.R.
1183. In addition, the Commerce Committee reserves its
authority to seek conferees on any provisions of the bill that
are within its jurisdiction during any House-Senate conference
that may be convened on this legislation. I ask for your
commitment to support any request by the Commerce Committee for
conferees on H.R. 1183 or similar legislation.
I request that you include this letter as a part of the
Committee's report on H.R. 1183 and as part of the Record
during consideration of the legislation on the House floor.
Thank you for your attention to these matters.
Sincerely,
Tom Bliley, Chairman.
------
House of Representatives,
Committee on Science,
Washington, DC, April 22, 1999.
Hon. Tom Bliley,
Chairman, House Committee on Commerce,
Rayburn House Office Building, Washington, DC.
Dear Chairman Bliley: Thank you for your letter of April
17, 1999 regarding H.R. 1183, the Fastener Quality Amendments
Act of 1999.
I appreciate your waiving your Committee's right to a
referral on this bill so that it can move expeditiously to the
floor. I recognize your historic jurisdiction in this area and
will support any request you may make to have conferees on H.R.
1183 or similar legislation.
The exchange of letters between our two committees will be
included in the Committee report on H.R. 1183 and will be made
part of the floor record.
Sincerely,
F. James Sensenbrenner, Jr.,
Chairman.
XIX. Proceedings of the Full Committee Markup
Thursday, March 25, 1999, House of Representatives, Committee on
Science, Washington, DC
H.R. 1183, Fastener Quality Act Amendments Act of 1999
Chairman Sensenbrenner. The last bill on our agenda today
is H.R. 1183, a Fastener Quality Act Amendments of 1999. This
bill continues the Science Committee's commitment to
streamlining the provisions of the Fastener Quality Act. The
intent of H.R. 1183 is to modify the act in a way that
recognizes new quality practices in the fastener industry,
focuses on ensuring public safety, and imposes the least
possible additional burdens on an already heavily regulated
industry.
To that end, this bill: first, fights fraud by clarifying
that anyone intentionally misrepresenting the strength or other
characteristic of a fastener is subject to the criminal
penalties and civil remedies of the act. Second, it ensures
accountability by requiring that virtually all fasteners sold
in commerce include the registered trademark of their
manufacturer. Third, reduces some of the burdensome paperwork
requirements of the act by allowing documents to be stored and
transmitted in electronic format. And fourth, recognizes the
industry's growing utilization of dramatically improved quality
assurance in management systems by allowing fasteners
manufactured in accordance with certain quality systems to be
deemed in compliance with the requirements of the act.
The current law of the Fastener Quality Act of 1990 is
unworkable and would cause great disruption to the U.S. economy
without providing any significant public safety benefit. Last
Congress, the Science Committee drafted bipartisan legislation
enacted as Public Law 105-234, that delayed NIST from
implementing costly and bureaucratic regulations that were
inconsistent with the original Congressional intent of the art.
So I would urge members to support this legislation, and
recognize Mr. Brown for an opening statement.
Mr. Brown. Mr. Chairman, I am having trouble distinguishing
the green color here as to when the thing is on and off. Could
you have a correction made on that as quickly as possible?
Chairman Sensenbrenner. If the gentleman will yield. If you
push the red button, then the missiles start flying here. So
stay away from that. [Laughter.]
Mr. Brown. Mr. Chairman, there is very little I can add to
what you have already said about this bill. It is one we have
wrestled with for a number of years. It will never end up being
perfect or maybe even fully satisfactory to most of the people
who are involved. But it is very important, and as we all
recall, there was a time a few years back when it was a matter
of urgency and of national security that we do something to
improve the quality of fasteners that were usedin critical
applications in defense, space, and many other things.
This bill is the best possible approach that I can envision
to continuing and improving on this process. I am
wholeheartedly in support of it.
Chairman Sensenbrenner. The gentleman yields back the
balance of his time. I am informed that neither the gentlewoman
from Maryland or the gentleman from Michigan have opening
statements, and would ask unanimous consent that all members
may insert opening statements in the record at this point.
Without objection, it is so ordered.
[The information follows:]
Chairman Sensenbrenner. Furthermore, I ask unanimous
consent that the bill be considered as read and open to
amendment at any point.
[The information follows:]
Chairman Sensenbrenner. I ask that members proceed with
amendments in the order on the roster. The first one is by Mrs.
Morella and Mr. Barcia. The Chair recognizes the gentlewoman
from Maryland to offer her amendment.
Mrs. Morella. Thank you very much, Mr. Chairman. I have an
amendment at the desk.
Chairman Sensenbrenner. The clerk will report the
amendment.
The Clerk. ``En bloc amendment to H.R. 1183''----
Chairman Sensenbrenner. Without objection, the amendment is
considered as read, and open for amendment at any point.
[The information follows:]
Chairman Sensenbrenner. The gentlewoman from Maryland is
recognized for five minutes.
Mrs. Morella. Thank you, Mr. Chairman. You know, when I was
first elected, to me a fastener meant something that you used
to enclose clothing and in other manners. But now I understand
through experience and through the Subcommittee and full
Committee, that a fastener is defined as a nut, a bolt, a
screw, or a stud. All I can say is I hope Jay Leno doesn't get
word of that. [Laughter.]
But our Technology Subcommittee held a hearing on this
issue in the last Congress, and also held a hearing in February
to discuss the need for the existing Fastener Quality Act, as
well as to consider any changes to the act that may be
warranted. At the hearing, the Subcommittee received testimony
from fastener manufacturers, distributors, and consumers, and
we realized how important fasteners are.
There is a clear consensus that two factors have
dramatically changed since the passage of the FQA in 1990.
First, the implementation of modern manufacturing quality
procedures have dramatically increased the quality of fasteners
used in U.S. commerce. In today's business place, heavy volume
fastener users like automobile, aerospace, heavy equipment
manufacturers, invent, demand and ensure quality from their
suppliers. They have a clear economic incentive to do so.
Secondly, the implementation of more stringent Government
procurement practices have eliminated the military's problems
with sub-standard or mis-marked fasteners. In fact, the Defense
Industrial Supply Center has checked military inventories over
the past four years, found no evidence of faulty fasteners at
all.
Recognizing these important developments, H.R. 1183 is
intended to modernize the existing 9-year-old act to better
reflect the practices of today's fastener industry and to
ensure that the flow of the 200 billion fasteners used annually
in our Nation's chain of commerce not unnecessarily disrupted.
The legislation that we are considering also creates a level
playing ground for all fastener manufacturers, distributors and
consumers. It does not drive small manufacturers out of
business, nor does it place U.S. manufacturers at a competitive
disadvantage with their foreign competitors.
Mr. Chairman, as Chair of the Technology Subcommittee, I am
pleased to offer this bipartisan en bloc amendment with Mr. Jim
Barcia, the Ranking Member of the Subcommittee. The amendment
makes certain changes to H.R. 1183 as follows: First, in the
case of fasteners manufactured solely to consensus standards,
the amendment ensures that any required end-of-line testing is
conducted by an accredited laboratory.An accredited laboratory
is defined to include a fastener testing facility that meets certain
guidelines established by the International Organization for
Standardization, or that is approved by the National Institute of
Standards and Technology. In addition, the definition also requires
accreditation by the International Organization for Standardization, or
by NIST.
I could go on, because the amendment then takes additional
steps to ensure traceability by requiring that all fasteners
that are manufactured to consensus standards bear a trademark
that's registered with the Department of Commerce. Finally, it
ensures disclosure of critical information by requiring
fastener manufacturer to make certain documents available.
I just want to remind members too that without prompt
enactment of this legislation, the current FQA regulations are
slated to be implemented on June 24th of this year. So with
that in mind, I ask for swift passage. I yield back, Mr.
Chairman.
Chairman Sensenbrenner. The gentlewoman's time has expired.
Further discussion on the Morella-Barcia amendment, with the
caveat that we are losing our reporting quorum.
The gentleman from Michigan is recognized for five minutes.
Mr. Barcia. I won't take the full five minutes. I will try
to be very brief. Mr. Chairman, I want to begin by concurring
with Mr. Brown's comments about the bipartisan way in which we
developed H.R. 1183 and this en bloc amendment. I also want to
thank Chairman Sensenbrenner and Chairwoman Morella for their
diligence and efforts on this very important issue.
Chairwoman Morella has articulately explained the
provisions in the en bloc amendments. I won't repeat those
explanations. The en bloc amendment ensures that fasteners
manufactured to consensus standards must be tested in
accredited labs, that high strength bolts must carry a
manufacturer's mark except when the end-user specifies
otherwise, and that records on the physical and chemical
properties of fasteners are available to everyone in the supply
chain.
The goal of this en bloc amendment is to ensure the
traceability of fasteners once they leave the manufacturer, and
that the testing of fasteners is reliable and accurate. This en
bloc amendment substantially improves H.R. 1183, and addresses
some of the most serious concerns that were raised with the
text as introduced. H.R. 1183, along with the en bloc
amendment, is a product that probably doesn't entirely satisfy
everyone. However, I believe that it reduces the cumbersome
regulatory burdens that resulted from the original Fastener
Quality Act. It recognizes advancements made in manufacturing
processes, and attempts to maintain credible standards to
ensure that fasteners are of high quality. I urge my colleagues
to support this amendment.
Chairman Sensenbrenner. The gentleman yields back the
balance of his time. Further discussion on the Morella-Barcia
amendment?
[No response.]
Hearing none, all those in favor signify by saying aye.
Opposed, no.
The ayes appear to have it. The ayes have it, and the
amendment is agreed to.
Are there further amendments to the bill?
[No response.]
If not, is there any report language?
[No response.]
If not, the question is on the bill. All those in favor
will signify by saying aye.
Opposed, no.
The ayes appear to have it. The ayes have it. The motion is
agreed to.
The Chair recognizes the gentleman from Michigan for a
motion to report the bill.
Mr. Barcia. Thank you, Mr. Chairman. I move that the
Committee report the bill, H.R. 1183 as amended. Furthermore, I
move to instruct the staff to prepare the legislative report to
make technical and conforming amendments, and that the Chairman
take all necessary steps to bring the bill before the House for
its consideration.
Chairman Sensenbrenner. You have heard the motion. The
question is on reporting the bill. The Chair notes the presence
of a reporting quorum. Those in favor will signify by saying
aye.
Opposed, no.
The ayes appear to have it. The ayes have it, and the bill
is favorably reported.
Without objection, the bill will be reported as a single
amendment in the nature of a substitute reflecting the
amendment adopted today. Members will have two subsequent
calendar days in which to submit supplemental minority or
additional views on the measure. Without objection, pursuant to
clause 1 of rule 22 of the rules of the House of
Representatives, the Committee authorizes the Chair to offer
such motions as may be necessary in the House to go to
conference on the bill. Without objection, so ordered.
I thank everybody for their patience. We put the timing
pretty good today in getting done just when the bell rang.
The Chair recognizes the gentleman from the California.
Mr. Brown. Thank you, Mr. Chairman. I ask unanimous consent
that Ms. Sheila Jackson Lee, who is detained in another
committee, be allowed to insert her brief statement in the
record expressing her appreciation to the great Chairman that
we have.
Chairman Sensenbrenner. Without objection, that is
certainly so ordered.
The Chair will quit while he is ahead, and the Committee is
adjourned.
[Whereupon, at 11:18 a.m., the committee was adjourned.]