[Senate Report 106-224]
[From the U.S. Government Publishing Office]
Calendar No. 417
106th Congress Report
SENATE
1st Session 106-224
_______________________________________________________________________
FASTENER QUALITY ACT
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 795
November 19, 1999.--Ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
79-010 WASHINGTON : 1999
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred sixth congress
first session
JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington JOHN D. ROCKEFELLER IV, West
TRENT LOTT, Mississippi Virginia
KAY BAILEY HUTCHISON, Texas JOHN F. KERRY, Massachusetts
OLYMPIA SNOWE, Maine JOHN B. BREAUX, Louisiana
JOHN ASHCROFT, Missouri RICHARD H. BRYAN, Nevada
BILL FRIST, Tennessee BYRON L. DORGAN, North Dakota
SPENCER ABRAHAM, Michigan RON WYDEN, Oregon
SAM BROWNBACK, Kansas MAX CLELAND, Georgia
Mark Buse, Staff Director
Martha P. Allbright, General Counsel
Ivan A. Schlager, Democratic Chief Counsel and Staff Director
Kevin Kayes, Democratic General Counsel
(ii)
Calendar No. 417
106th Congress Report
SENATE
1st Session 106-224
======================================================================
FASTENER QUALITY ACT
_______
November 19, 1999.--Ordered to be printed
_______
Mr. McCain, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 795]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 795) ``A Bill 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, reports favorably
thereon with amendments and recommends that the bill (as
amended) do pass.
Purpose of the Bill
The purpose of the bill, as reported, is to amend the Faster
Quality Act (FQA), 15 U.S.C. 5401 et seq., to strengthen the
protection against the sale of mismarked, misrepresented, and
counterfeit fasteners and eliminate unnecessary requirements,
and for other purposes.
Background and Needs
Every year billions of special high-strength bolts, screws,
and other fasteners are sold in the United States which carry
grade identifications markings. The markings indicate that the
fasteners conform with specifications set by consensus
standards organizations. These grade-marked fasteners are used
in critical applications like highway bridges and aircraft,
where failure of a fastener could jeopardize public safety.
The FQA was enacted in 1990 (Public Law 101-592) and applies
to all threaded, metallic, through-hardened fasteners, of one-
quarter inch diameter or greater, that directly or indirectly
reference a consensus standard. Under the FQA, such fasteners must be
testedor documented by a laboratory that is certified by the
National Institute of Standards and Technology (NIST).
The FQA was passed in 1990 because a number of incidents of
mismarked, substandard, and/or counterfeit fasteners were
uncovered and posed a threat to public safety and a risk of
equipment and infrastructure failures in both the civilian and
military sectors. In addition, Congress was concerned that
foreign manufacturers were actively engaged in unfair trade
practices that resulted in the dumping of ``substandard''
fasteners in the U.S. 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 a substantial number of these substandard fasteners were
the result of attempts to undercut legitimate U.S. fastener
manufacturers with products that were manufactured specifically
to a lesser standard rather than the result of poor
manufacturing processes.
Despite the passage of time since its enactment, regulations
to carry out the provisions of the FQA have never been
implemented, mainly due to the lack of a sufficient number of
accredited laboratories to conduct the inspection and testing
required by the Act. NIST's most recent rule was published on
April 14, 1998, and includes revisions to earlier proposed
regulations which reflect legislative changes to the FQA
adopted in 1996 as part of the National Technology Transfer and
Advancement Act (P.L. 104-113). Since the passage of the FQA in
1990, fastener quality control procedures have evolved
substantially from the lot-sampling procedure that forms the
basis for the current FQA. NIST attempted to accommodate the
new ``process control''; quality approaches in the April 14 FQA
rule. However, fastener manufacturers and major industrial
users report that the NIST rule is overly restrictive and does
not fully accommodate advances in quality control procedures.
The April 14 rule was scheduled to take effect on October 26,
1998.
In August 1998, Congress passed legislation (P.L. 105-234) to
delay implementation of regulations under FQA until the later
of either June 1, 1999 or 120 days after the Secretary of
Commerce reports to Congress on: (1) Changes in fastener
manufacturing processes that have occurred since enactment of
FQA; (2) a comparison of the Act to other programs that
regulate the various categories of fasteners to analyze
duplicate requirements amongst the programs; and (3) any
further revisions that should be made to the Act due to the
reported findings.
Currently, proprietary fasteners of aviation manufacturers
are subject to the quality assurance programs of the Federal
Aviation Administration (FAA). Under these programs, aviation
manufacturers already are required to demonstrate to the FAA
that they have a quality control system which ensures that
their products, including fasteners, meet design
specifications. Therefore, the application of FQA requirements
to such fasteners could create duplicative and potentially
confusing regulations that would not assist federal efforts in
ensuring the safety of the flying public. Furthermore, neither
the FAA nor the National Transportation Safety Board is aware
of any fatal aviation accidents caused by a substandard
proprietary fastener. As a result, P.L. 105-234 is also
exempted from certain testing and certification requirements
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 FAA.
The Secretary of Commerce issued the report required under
Public Law 105-234 on February 24, 1999, thus making June 24,
1999 the effective enactment date for FQA. In addition to the
findings requested, the report also addressed (1) substandard
fasteners' current threat to public safety; (2) whether
imported fasteners pose the same threat as they were perceived
10 years ago, when the FQA was passed; (3) how the military and
other federal agencies have improved their procurement
practices since 1990; and (4) concerns expressed by industry
about the Act as written.
The report discovered the following:
(1) The percentage of aircraft incidents involving
fasteners in the National Transportation Safety Board's
database appears to be reasonably low.
(2) The percentage of all fastener-related recalls
for the automobile industry appears quite low.
(3) Safety related fastener problems do not appear to
be an issue in the nuclear industry.
(4) The U.S. Customs Service is currently
investigating a 5 percent noncompliance rate discovered
in January-April 1998 as opposed to significantly
higher rates in the 1980's.
(5) DISC has checked military inventories over the
past 5 years and found no evidence of widespread
problems with substandard or mismarked fasteners.
(6) NASA has adopted a parts policy for fasteners for
its ten centers concerning procurement policy.
(7) The Department of Commerce found a number of
agencies with regulatory authority to impact fasteners,
but no agency other than the Department of Commerce has
explicit authority to regulate fastener quality.
(8) Mismarked and fraudulent fasteners have appeared
in the US marketplace in the 1990's.
(9) The use of quality management systems is a
positive trend.
(10) Industry concerns with the current FQA are about
type of fasteners covered, cost of implementation,
allowance of electronic storage and transmission, and
why foreign manufacturers are treated differently under
the Act.
The report makes the following recommendations:
(1) Limit the fasteners covered under the Act should
be limited to high strength fasteners (those with a
minimum tensile strength of 120,000 psi).
(2) Deem fasteners to be FQA compliant if they are
made in facilities registered by a Department of
Commerce-approved registrar to a quality management
system.
(3) Allow electronic transmission and storage of
reporting requirements for fasteners.
(4) Amend Title 18 of the U.S. Code to address fraud
in private commercial transactions involving fasteners.
(5) Continue to review why the Act treats foreign and
domestic manufacturers differently.
This bill, S. 795, amends the FQA to take into consideration
the above findings and recommendations before the FQA
implementation date of June 24, 1999. The bill would: (1) focus
the scope of coverage on high strength grade-marked fasteners;
(2) recognize the benefits of advanced quality assurances
systems and implicitly encourages all producers to invest in
the adoption of such systems; (3) create accountability by
requiring fastener producers to imprint a registered insignia
on their product; (4) provide traceability by requiring
fastener manufacturers to retain documents and/or records
generated during the manufacturing and inspection of each lot
of fasteners for five years; (5) direct the Department of
Commerce to create a mechanism to facilitate the reporting and
investigation of suspected cases of international
misrepresentation; and (6) define and establish punishments for
the international misrepresentation of fasteners.
Legislative History
S. 795 was referred to the Committee on Commerce, Science,
and Transportation on April 14, 1999. A hearing on the
legislation was held on April 21, 1999. On May 5, 1999, the
Committee met in executive session and, by a voice vote,
ordered S. 795 to be reported with amendments. An amendment
package offered by Senator Hollings makes technical changes,
requires importers to maintain a record of conformance similar
to that maintained by U.S. manufacturers, and specifies upper
limits on the amounts of civil penalties that can be imposed
for violations of the different provisions in the Act.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 12, 1999.
Hon. John McCain,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 795, 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 Keith Mattrick (for the private-sector
impact).
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
congressional budget office cost estimate
S. 795--Fastener Quality Act Amendments Act of 1999
Summary: 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. S. 795 would
change the requirements for certifying documents and
accrediting the laboratories that test fasteners. The bill also
would increase civil penalties for certain violations of the
Fastener Quality Act.
Enacting S. 795 would probably increase collections of
civil fines, which are recorded as receipts; therefore, pay-as-
you-go procedures would apply. CBO estimates, however, that the
amounts of additional receipts would not be significant. CBO
estimates that implementing S. 795 would cost the National
Institute of Standards and Technology (NIST) less than $500,000
a year, subject to the availability of appropriated funds.
S. 795 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: S. 795 would
increase civil fines for falsifying or misrepresenting records
about the quality of fasteners. The bill also would increase
civil fines for recklessly or intentionally violating the
recordkeeping requirements of the Fastener Quality Act. CBO
estimates that additional collections from civil fines would
not be significant.
Based on information from NIST, CBO estimates that the
agency would spend less than $500,000 a year to implement the
bill. The costs of this legislation fall within budget function
370 (commerce and housing credit).
Pay-as-you-go considerations: The Balanced Budget and
Emergency Deficit Control Act sets up pay-as-you-go procedures
for legislation affecting direct spending or receipts. S. 795
would affect receipts by increasing civil fines for certain
violations of the Fastener Quality Act. Collections from such
fines are likely to be negligible, however, because the federal
government would probably not pursue many additional cases
under the bill.
Estimated impact on State, local, and tribal governments:
S. 795 contains no intergovernmental mandates as defined in
UMRA and would not affect the budgets of state, local, or
tribal governments.
Estimated impact on the private sector: S. 795 contains no
new private-sector mandates as defined in UMRA. Under current
law, regulations to implement the Fastener Quality Act will go
into effect on June 24, 1999. As currently written, those
regulations 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 regulations will
impose significant costs on those entities. Based on
information provided by government and industry sources, CBO
estimates that S. 795 would significantly reduce the
requirements imposed on the private sector.
Previous CBO estimate: On April 8, 1999, CBO transmitted a
cost estimate for H.R. 1183, the Fastener Quality Act
Amendments Act of 1999, as ordered reported by the House
Committee on Science on March 25, 1999. Unlike S. 795, H.R.
1183 would not alter civil penalties; therefore, the House bill
would not affect receipts.
Estimate prepared by: Federal costs: Mark Hadley; Impact on
the private sector: Keith Mattrick.
Estimate approved by: Robert A. Sunshine, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
number of persons covered
Manufacturers, distributors, importers, and users of grade-
marked fasteners will be affected by the FQA requirements when
they are implemented. The number of affected individuals is
substantially reduced when compared to those affected by the
existing FQA as passed in 1990. This is due to two factors: (1)
S. 795 only applies to `high strength' fasteners; (2) S. 795
also recognizes existing fastener quality assurance programs
for manufacturing processes.
economic impact
The number of fasteners covered is limited to a smaller
percentage than those covered in the existing FQA. In addition,
S. 795 provides exemption for FAA-approved and other types of
fasteners manufactured according to fastener quality assurance
systems that meet with certain standards. Therefore, those
companies producing fasteners that are not subject to the new
requirements of the FQA as specified by this bill do not incur
any additional cost for compliance.
privacy
This legislation will not have an adverse impact on the
privacy of individuals.
paperwork
S. 795, as reported, requires manufacturers and importers of
fasteners to retain records of conformance for fasteners for 5
years. These records can be on paper, in photographic form, or
in electronic form, as long as the documents can be verified
for authenticity. In addition, the bill eliminates the
recordation requirement by the Secretary for insignias of
private label distributors.
Section-by-Section Analysis
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 would amend the findings of the Fastener Quality
Act (15 U.S.C. 5401) to recognize the changes that have
occurred in the fastener industry since passage of the existing
FQA in 1990. The reported findings include the significant
contribution of the fastener industry to the global economy;
the state-of-the-art manufacturing and improved quality
assurance systems that fasteners sold in commerce must adhere
to; the small number of mismarked, misrepresented, and
counterfeit fasteners that are actually sold in the United
States; and the multiple criteria that markings on fasteners
must satisfy to enable buyers and users to determine the
characteristics of individual fasteners.
Section 3. Definitions
This section would include definitions of relevant terms. The
definition of ``fastener'' specifically excludes those that are
part of a package containing 100 or fewer fasteners, and those
that have been approved by the FAA, manufactured in accordance
with a fastener quality assurance system, or manufactured
according to a proprietary standard. The definition of
``fastener quality assurance system'' accommodates those
processes that follow international standards, such the
International Organization for Standardization (ISO) Standard
9000, 9001, 9002, and the Aerospace Basic Quality System
Standard AS9000.
Section 4. Sale of fasteners
Subsection (a) would repeal sections 4 through 7 of the FQA
of 1990 (15 U.S.C. 5403 through 5406).
The revised section (4) would establish rules regarding the
sale of fasteners. The general rule is that manufacturers and
distributors cannot intentionally misrepresent or falsify
information about the lot of fasteners under consideration.
This includes the record of conformance, the identification,
characteristics, properties, mechanical or performance marks,
chemistry, or strength of the lot of fasteners, or the
manufacturer's insignia. In representing or specifying a
fastener, if a description references a consensus standard to
show that the fastener conforms to particular requirements of
the standard or to show that particular requirements of the
standard serve as specifications for the fastener, this shall
not be construed as the fastener meeting all the requirements
of the consensus standard. In cases where fasteners are
manufactured solely to consensus standards, if end-of-line
testing is required by the standard, then the tests shall be
conducted by an accredited laboratory.
Subsection (b) would delay implementation of the use of
accredited laboratories for two years from date of enactment of
this Act.
Section. 5. Manufacturers' insignias
This section would redesignate section 8 of the FQA (15
U.S.C. 5407) as section 5, and amend the newly designated
section 5 as follows.
Subsection (a) would be amended to establish the general rule
that fasteners cannot be offered for sale unless they bear
their manufacturer insignias according to applicable consensus
standard(s), unless the specifications provide otherwise. The
manufacturer must comply with the insignia recordation
requirements established under subsection (b).
Subsection (b) would be amended to require the Secretary to
record only insignias of manufacturers in accordance with
Subsection (a) and not private label distributors.
Section 6. Remedies and penalties
This section would redesignate section 9 of the FQA (15
U.S.C. 5408) as section 6, and amends the newly designated
section 6 as follows.
Subsection (b)(1) would be amended to specify different
maximum amounts of civil penalties for a person who is
determined by the Secretary, after notice and an opportunity
for a hearing, to have violated certain provisions of the Act.
Negligent violation of section 7 or any regulation under
section 7 is subject to a maximum civil penalty of $10,000 for
each violation. Gross negligence in violating section 7 or any
regulation under section 7 is subject to a maximum civil
penalty of $35,000 for each violation. Reckless or intentional
violation of section 7 or any regulation under section 7 is
subject to a maximum civil penalty of $50,000 for each
violation. Violation of section 4(a) or any regulation under
section 4(a) is subject to a maximum civil penalty of $50,000
for each violation. Violations of any other provisions of this
Act or any other regulations under this Act is subject to a
maximum civil penalty of $25,000 for each violation.
Subsection (b)(3) would be amended to clarify the reference
to this subsection.
Subsection (b)(4) would be amended to allow the Secretary to
arbitrate civil penalties imposed under this section prior to
referral to the Attorney General.
A new paragraph (2) is added to subsection (d) to have the
Secretary establish and maintain a hotline system for the
reporting of violations of this Act. The Secretary shall also
evaluate allegations reported through that system and report
any credible allegations to the Attorney General.
Section 7. Recordkeeping requirements
This section would redesignate section 10 of the FQA (15
U.S.C. 5409) as section 7. Subsections (a) and (b) would be
deleted and replaced by a provision that requires manufacturers
and importers to retain records of conformance for fasteners
for 5 years, on paper or photographic or electronic format, as
long as authenticity of the documents can be ascertained.
Information in these records must be provided upon request from
a distributor who has purchased a fastener or a person who has
purchased a fastener for use in the production of a commercial
product. It is the Committee's understanding that these
requirements would be imposed on manufacturers and importers in
a similar manner.
Section 8. Relationship to State laws
This section would redesignate section 11 of the FQA (15
U.S.C. 5410) as section 8.
Section 9. Construction
This section would redesignate section 12 of the FQA (15
U.S.C. 5411) as section 9 and amends the newly revised section
9 by striking ``in effect on the date of enactment of this
Act''.
Section 10. Certification and accreditation
This section would repeal sections 13 and 15 of the FQA (15
U.S.C. 5412 and 5414) and add a new section 10 on
``Certification and Accreditation'' as follows.
Manufacturing systems that meet or exceed the rigor and
reliability required by the ISO/IEC Guide 62 may be certified
by the Director as a ``fastener quality assurance system'' as
defined by this Act. The Director must act upon such petition
for certification within 180 days after its filing.
Accreditation bodies to accredit third parties that can
certify manufacturing systems as described above may be
approved by the Director if they provide equal or greater rigor
and reliability as compared to ISO/IEC Guide 61. The Director
must act upon such petition for approval within 180 days after
its filing.
Laboratories that show equal or greater rigor and reliability
as compared to ISO/IEC Guide 25 may be accredited by the
Director as an ``accredited laboratory'' as defined by this
Act. The Director must act upon such petition for accreditation
within 180 days after its filing.
Accreditation bodies to accredit laboratories that provide
equal or greater rigor and reliability as compared to ISO/IEC
Guide 58 may be approved by the Director. The Director must act
upon such petition for approval within 180 days after its
filing.
Section 11. Applicability
This section would add a new section 11 at the end of the
FQA, specifying that the Act shall be applicable only to
fasteners that are fabricated 180 days or more after the date
of enactment of this Act. However, if manufacturers or
distributors prepare records of conformance for fasteners
fabricated before that date, then these records must comply
with the requirements of this Act.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, 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 material is printed
in italic, existing law in which no change is proposed is shown
in roman):
FASTENER QUALITY ACT
TITLE 15. COMMERCE AND TRADE
CHAPTER 80. FASTENERS
[SEC. 2. FINDINGS AND PURPOSE.
[15 U.S.C. 5401]
[(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. 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.
[15 U.S.C. 5402]
[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) ``standard 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. 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 persons within the United
States, and, for purposes of this paragraph, an
original equipment manufacturer and its dealers shall
be considered affiliated persons for purposes of this
Act;
(6) ``fastener'' means a metallic screw, nut, bolt,
or stud having internal or external threads, with a
nominal diameter of 6 millimeters or greater, in the
case of such items described in metric terms, or \1/4\
inch or greater, in the case of such items described in
terms of the English system of measurement, or a load-
indicating washer, that is through-hardened or
represented as meeting a consensus standard that calls
for through-hardening, and that is grade identification
marked or represented as meeting a consensus standard
that requires grade identification marking, except that
such term does not include any screw, nut, bolt, stud,
or load-indicating washer that is--
(A) part of an assembly;
(B) 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) ``importer'' means a distributor located within
the United States who contracts for the initial
purchase of fasteners manufactured outside the United
States;
(10) ``lot'' means a quantity of fasteners of one
part number fabricated by the same production process
from the same coil or heat number of metal as provided
by the metal manufacturer;
(11) manufacturer'' means a person who fabricates
fasteners for sale in commerce;
(12) ``proprietary standard'' means the provisions of
a document that describes characteristics of a screw,
nut, bolt, stud, or load-indicating washer and is
issued by a person who--
(A) uses screws, nuts, bolts, studs, or load-
indicating washers in the manufacture,
assembly, or servicing of its products; and
(B) with respect to such screws, nuts, bolts,
studs, or washers, is a developer and issuer of
descriptions that have characteristics similar
to consensus standards and that bear such
user's identification;
(13) ``record of conformance'' means a record or
records for each lot of fasteners sold or offered for
sale that contains--
(A) the name and address of the manufacturer;
(B) a description of the type of fastener;
(C) the lot number;
(D) the nominal dimensions of the fastener
(including diameter and length of bolts or
screws), thread form, and class of fit;
(E) the consensus standard or specifications
to which the lot of fasteners has been
manufactured, including the date, number,
revision, and other information sufficient to
identify the particular consensus standard or
specifications being referenced;
(F) the chemistry and grade of material; and
(G) the coating material and characteristics
and the applicable consensus standard or
specifications for such coating; and
(H) the results or a summary of results of
any tests performed for the purpose of
verifying that a lot of fasteners conforms to
its grade identification marking or to the
grade identification marking the lot of
fasteners is represented to meet;
(14) ``represent'' means to describe one or more of a
fastener's purported characteristics in a document or
statement that is transmitted to a purchaser through
any medium;
(15) ``Secretary'' means the Secretary of Commerce;
(16) ``specifications'' means the required
characteristics identified in the contractual agreement
with the manufacturer or to which a fastener is
otherwise produced, except that the term does not
include proprietary standards; and
(17) ``through-harden'' means heating above the
transformation temperature followed by quenching and
tempering for the purpose of achieving uniform
hardness.
[SEC. 5. TESTING AND CERTIFICATION OF FASTENERS.
[15 U.S.C. 5404]
[(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 and
delivery, 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.
[15 U.S.C. 5405]
[(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.
[15 U.S.C. 5406]
[(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 provide to 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 the sale or offer for sale of
fasteners from a single lot, to knowingly misrepresent or
falsify--
(1) the record of conformance for the lot of
fasteners;
(2) the identification, characteristics, properties,
mechanical or performance marks, chemistry, or strength
of the lot of fasteners; or
(3) the manufacturer's insignia.
(b) Representations.--A direct or indirect reference to a
consensus standard to represent that a fastener conforms to
particular requirements of the consensus standard shall not be
construed as a representation that the fastener meets all the
requirements of the consensus standard.
(c) Specifications.--A direct or indirect contractual
reference to a consensus standard for the purpose of
identifying particular requirements of the consensus standard
that serve as specifications shall not be construed to require
that the fastener meet all the requirements of the consensus
standard.
(d) Use of Accredited Laboratories.--In the case of fasteners
manufactured solely to a consensus standard or standards, end-
of-line testing required by the consensus standard or
standards, if any, for the purpose of verifying that a lot of
fasteners conforms with the grade identification marking called
for in the consensus standard or standards to which the lot of
fasteners has been manufactured shall be conducted by an
accredited laboratory.
SEC. [8.] 5. MANUFACTURERS' INSIGNIAS.
[15 U.S.C. 5407]
[(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, fasteners that are required by the applicable
consensus standard or standards to bear insignia identifying
their manufacturer shall not be offered for sale or sold in
commerce unless--
(1) the fasteners bear such an 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.
[15 U.S.C. 5408]
(a) Civil Remedies.--
(1) The Attorney General may bring an action in an
appropriate United States district court for
appropriate declaratory and injunctive relief against
any person who violates this Act or any regulation
under this Act.
(2) An action under paragraph (1) may not be brought
more than 10 years after the date on which the cause of
action accrues.
(b) Civil Penalties.--
[(1) Any person who is determined by the Secretary,
after notice and an opportunity for a hearing, to have
violated this Act or any regulation under this Act
shall be liable to the United States for a civil
penalty of not more than $ 25,000 for each violation.]
(1) Any person who is determined by the Secretary,
after notice and an opportunity for a hearing, to
have--
(A) negligently violated section 7 or any
regulation under section 7 shall be liable to
the United States for a civil penalty of not
more than $10,000 for each violation;
(B) committed gross negligence in violating
section 7 or any regulation under section 7
shall be liable to the United States for a
civil penalty of not more than $35,000 for each
violation;
(C) recklessly or intentionally violated
section 7 or any regulations under section 7
shall be liable to the United States for a
civil penalty of not more than $50,000 for each
violation;
(D) violated section 4(a) or any regulation
under section 4(a) shall be liable to the
United States for a civil penalty of not more
than $50,000 for each violation; or
(E) violated any other provision of this Act
or any other regulation under this Act shall be
liable to the United States for a civil penalty
of not more than $25,000 for each violation.
(2) The amount of the penalty shall be assessed by
the Secretary by written notice. In determining the
amount of the penalty, the Secretary shall consider the
nature, circumstances, and gravity of the violation
and, with respect to the person found to have committed
the violation, the degree of culpability, any history
of prior violations, the effect on ability to continue
to do business, any good faith attempt to achieve
compliance,ability to pay the penalty, and such other
matters as justice may require.
(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).
(5) A civil penalty assessed under this subsection
may be recovered in an action brought by the Attorney
General on behalf of the United States in the
appropriate district court of the United States. In
such action, the validity and appropriateness of the
final order imposing the civil penalty shall not be
subject to review.
(6) For the purpose of conducting any hearing under
this section, the Secretary may issue subpoenas for the
attendance and testimony of witnesses and the
production of relevant papers, books, and documents,
and may administer oaths. Witnesses summoned shall be
paid the same fees and mileage that are paid to
witnesses in the courts of the United States. In case
of contempt or refusal to obey a subpoena served upon
any person pursuant to this paragraph, the district
court of the United States for any district in which
such person is found, resides, or transacts
business,upon application by the United States and
after notice to such person, shall have jurisdiction to
issue an order requiring such person to appear and give
testimony before the Secretary or to appear and produce
documents before the Secretary, or both, and any
failure to obey such order of the court may be punished
by such court as a contempt thereof.
(c) Criminal Penalties.--
(1) Whoever knowingly certifies, marks, offers for
sale, or sells 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 5
years, or both.
(2) Whoever intentionally 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 5
years, or both.
(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 appropriate to 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 shall establish and maintain a
hotline system to facilitate the reporting of alleged
violations of this Act, and the Secretary shall
evaluate allegations reported through that system and
report any credible allegations to the Attorney
General.
SEC. [10.] 7. RECORDKEEPING REQUIREMENTS.
[15 U.S.C. 5409]
[(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 and importers shall retain the record of
conformance for fasteners for 5 years, on paper or in
photographic or electronic format in a manner that allows for
verification of authenticity. Upon request of a distributor who
has purchased a fastener, or a person who has purchased a
fastener for use in the production of a commercial product, the
manufacturer or importer of the fastener shall make available
information in the record of conformance to the requester.
SEC. [11.] 8. RELATIONSHIP TO STATE LAWS.
[15 U.S.C. 5410]
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.
[15 U.S.C. 5411]
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.
[15 U.S.C. 5412]
[The Secretary shall issue such regulations as may be
necessary to implement this Act.
* * * * * * *
[SEC. 15. APPLICABILITY.
[15 U.S.C. 5414]
[(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 6months thereafter during such extension,
the Secretary shall submit are port 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 this Act, 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.