[Senate Report 110-265]
[From the U.S. Government Publishing Office]



110th Congress 
 2d Session                      SENATE                          Report
                                                                110-265
_______________________________________________________________________
                                                       Calendar No. 523
 
         CONSUMER PRODUCT SAFETY COMMISSION REFORM ACT OF 2007

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                       S. H.R. deg. 2045




      DATE deg.February 25, 2008.--Ordered to be printed
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                       one hundred tenth congress
                             second session

                   DANIEL K. INOUYE, Hawaii, Chairman
                   TED STEVENS, Alaska, Vice-Chairman
JOHN D. ROCKEFELLER IV, West         JOHN McCAIN, Arizona
    Virginia                         KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts         OLYMPIA J. SNOWE, Maine
BYRON L. DORGAN, North Dakota        GORDON H. SMITH, Oregon
BARBARA BOXER, California            JOHN ENSIGN, Nevada
BILL NELSON, Florida                 JOHN E. SUNUNU, New Hampshire
MARIA CANTWELL, Washington           JIM DEMINT, South Carolina
FRANK R. LAUTENBERG, New Jersey      DAVID VITTER, Louisiana
MARK PRYOR, Arkansas                 JOHN THUNE, South Dakota
THOMAS CARPER, Delaware              ROGER F. WICKER, Mississippi
CLAIRE McCASKILL, Missouri
AMY KLOBUCHAR, Minnesota
          Margaret Cummisky, Staff Director and Chief Counsel
         Lila Helms, Deputy Staff Director and Policy Director
       Jean Toal Eisen, Senior Advisor and Deputy Policy Director
     Christine Kurth, Republican Staff Director and General Counsel
                Paul J. Nagle, Republican Chief Counsel
             Mimi Braniff, Republican Deputy Chief Counsel
                                                       Calendar No. 523
110th Congress                                                   Report
                                 SENATE
 2d Session                                                     110-265

======================================================================


         CONSUMER PRODUCT SAFETY COMMISSION REFORM ACT OF 2007

                                _______
                                

               February 25, 2008.--Ordered to be printed

                                _______
                                

       Mr. Inouye, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 2045]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill joint resolution deg. (S. 
H.R. deg. 2045) TITLE deg. to reform the 
Consumer Product Safety Commission to provide greater 
protection for children's products, to improve the screening of 
noncompliant consumer products, to improve the effectiveness of 
consumer product recall programs, and for other purposes, 
having considered the same, reports favorably thereon 
without amendment deg. with amendments deg. 
with an amendment (in the nature of a substitute) and 
recommends that the bill joint resolution deg. (as 
amended) do pass.

                          Purpose of the Bill

  Established in 1973, the Consumer Product Safety Commission 
(CPSC) is an independent Federal health and safety regulatory 
agency that was created by the passage of the Consumer Product 
Safety Act of 1972 (15 U.S.C. 2051 et seq.) (CPSA). The CPSC 
has not been reauthorized since 1992, and its current statutory 
authority has limited the agency in monitoring and enforcing 
against entities participating in a global marketplace. In 
addition, the resources of the agency have been in decline for 
several years.
  The need for the agency and the product safety regime have 
been highlighted by a recent series of high profile nationwide 
recalls of noncompliant products. In addition to the recalls, 
there are continued reports of products with potentially deadly 
flaws that have been voluntarily recalled, yet are still 
readily available in the stream of commerce. S. 2045, as 
amended, would address several concerns about the CPSC, 
including but not limited to: increased CPSC resources; the 
creation of a joint enforcement regime with the States; the 
improvement of reporting requirements; the creation of new 
mandatory product standards; mandatory third-party 
certification of the safety of children's products; stronger 
authority to manage imported product safety; and increased 
civil and criminal penalties.

                          Background and Needs

  The CPSC estimates that consumer products under its 
jurisdiction are related to 27,100 deaths and 33.1 million 
injuries each year. The agency estimates that the dollar cost 
of these deaths, injuries, and related property damage exceeds 
$700 billion annually. The Commission has four primary 
missions:
           To protect the public against unreasonable 
        risks of injury associated with consumer products;
           To assist consumers in evaluating the 
        comparative safety of consumer products;
           To develop uniform safety standards for 
        consumer products and to minimize conflicting State and 
        local regulations; and
           To promote research, investigation into 
        causes for, and prevention of products-related deaths, 
        illnesses, and injuries.
  In addition to the CPSA, the agency fulfills these missions 
via several statutes. The most significant of these corollary 
statutes include:
           The Federal Hazardous Substances Act (15 
        U.S.C. 1261) (FHSA);
           The Flammable Fabrics Act (15 U.S.C. 1191) 
        (FFA); and
           The Poison Prevention Packaging Act (15 
        U.S.C. 1471) (PPPA).
  The CPSC employs approximately 400 full-time employees (FTEs) 
who are responsible for monitoring the safety of more than 
15,000 different consumer products. The agency strives to 
accomplish its mission by: working in tandem with industry 
leaders to develop voluntary standards; conducting research on 
potentially dangerous products; issuing and implementing 
mandatory standards or banning consumer products if no 
reasonable standard to protect the public can be agreed upon; 
and obtaining recalls of products deemed unsafe or making 
arrangements for product repair. The agency does not have 
jurisdiction over products such as automobiles and other 
street-legal vehicles, tires, boats, tobacco, alcohol, 
firearms, food, drugs, cosmetics, medical devices, and 
pesticides.
  Currently, the CPSC operates as a three person Commission. 
The Commissioners are nominated by the President and confirmed 
by the Senate for staggered seven-year terms. Ms. Nancy Nord, a 
Republican, is the current Acting Chairman since the 
resignation of Mr. Harold ``Hal'' Stratton on July 15, 2006. 
She was confirmed on April 28, 2005, and her term expires in 
2012. Mr. Thomas Hill Moore, the Democratic Commissioner, was 
reconfirmed on May 21, 2004, with his term expiring in October 
2010. Until the President nominates a third Commissioner, the 
CPSC will operate as a two-person panel under a temporary 
quorum proviso. That temporary authority will expire in 
February 2008.
  Funding and Staffing Levels: The President's fiscal year (FY) 
2008 budget proposed to fund 401 FTEs, the fewest number in the 
agency's 34 year history, and to provide only $63.25 million to 
operate the agency. The agency has undergone attrition in 
anticipation of this funding level and is slightly below 400 
FTEs at this time. Funding for the CPSC has remained 
essentially flat for FY 2005 through FY 2007, forcing staff 
decreases of 31 FTEs in FY 2006 and approximately 20 FTEs in FY 
2007. Since 2000, the CPSC has lost approximately 79 FTEs. The 
size of the CPSC workforce today is less than half its size at 
the end of the 1970's. The Consolidated Appropriations Act of 
2008 contains $80 million for the operation of the CPSC for FY 
2008. This bill was signed into law (P.L. 110-161) on December 
26, 2007.
    Quorum: Section 4(d) of the CPSA provides that three 
members serving at the Commission constitute a quorum, which is 
necessary for the transaction of business. If there are only 
two Commissioners because of a vacancy, two members constitute 
a quorum for six months after the vacancy was created. The CPSC 
operated without a quorum from January 2007 to August 2007, 
when a temporary quorum was extended by an amendment to H.R. 1, 
the Implementing Recommendations of the 9/11 Commission Act of 
2007 (P.L. 110-53) (``9/11 Act''), which was signed into law on 
August 3, 2007. That quorum extension expired on February 3, 
2007. Without a quorum, the Commission cannot conduct any 
business requiring a vote, including rulemakings or civil 
penalties, or hold public hearings.
    Conversions of Employees from Noncareer to Career 
Positions: In the General Accountability Office's (GAO) Report 
Personnel Practices: Conversions of Employees from Noncareer to 
Career Positions May 2001-April 2005, the CPSC was highlighted 
for promoting a nonqualified appointee working for then 
Chairman Stratton to a Senior Executive Service (SES) position. 
The case is detailed on page 68 of the report (GAO-06-381, May 
2006).

        Case 16: Consumer Product Safety Commission (CPSC): 
        Positions: From Schedule C Appointment, GS-0301-15/10, 
        Special Assistant, Office of the Chairman, Consumer 
        Product Safety Commission:

        To ES-0340-00/00, Director, Office of International 
        Programs and Intergovernmental Affairs, Office of the 
        Executive Director, Consumer Product Safety Commission:

          Issue: Agency did not appear to address [Office of 
        Personnel Management (OPM)] qualification concerns 
        about the conversions in a substantive manner:
          Details: Prior to applying for the career position, 
        the eventual selectee had served for over a year as a 
        Schedule C Special Assistant in the office of the 
        Chairman. According to his resume, as a Special 
        Assistant, the eventual selectee directly supported the 
        Chairman by (1) providing senior level policy advice on 
        current and developing issues, (2) preparing written 
        materials for presentation at external speaking 
        engagements, (3) acting as a liaison with internal and 
        external parties, and (4) drafting documents as needed.
          On November 14, 2003, CPSC posted a vacancy 
        announcement for the SES career position of Director, 
        Office of International Programs and Intergovernmental 
        Affairs. Based on the vacancy announcement, the 
        director would oversee and coordinate the Commission's 
        international and intergovernmental efforts related to 
        product safety standards. The desired qualifications 
        listed in the announcement closely matched the eventual 
        selectee's previous experience in the private sector, 
        and as an elected official to the New Mexico State 
        Legislature, as listed on his resume.
          Twenty-four applicants applied, and of these, nine 
        were considered qualified for the position and assigned 
        numerical scores. The eventual selectee received the 
        highest numerical score and the selecting official 
        selected him for the career position on December 19, 
        2003.
          Because this is an appointment to the career SES, 
        CPSC submitted the selectee's case to OPM for approval 
        on February 13, 2004. An OPM administered 
        [Qualifications Review Board (QRB)] denied the agency's 
        request citing weakness in three of the five Executive 
        Core Qualifications (ECQ). The QRB also noted that the 
        selectee's lack of managerial experience would be a 
        handicap to successful performance in the SES. Based on 
        comments from CPSC's Executive Director, the selectee 
        revised his ECQ statement by citing different examples 
        from his experiences. Although the selectee refers to 
        his ``career as a senior manager and leader'' the only 
        concrete examples he provided of his experiences in the 
        ECQs relate to his 15-month position at the CPSC or his 
        2-terms as an elected official in the New Mexico State 
        Legislature. However, in describing his specific role 
        and duties for each of these positions on his resume, 
        he does not mention managerial or supervisory duties 
        for either. Using the revised ECQs, CPSC resubmitted 
        its request. OPM pointed out that the resubmission was 
        provided to a different QRB, which was not involved or 
        familiar with the initial QRB's concerns or decision. 
        This QRB approved the appointment on April 2, 2004.
          Conclusions: Although the selectee modified his 
        second submission to OPM, the primary basis for the 
        selectee's qualifications remained his experience from 
        the 15-month appointment at the CPSC and 2-terms as a 
        State Representative. It is unclear whether or how this 
        revised submission addressed the concerns raised by the 
        initial QRB regarding the candidate not meeting the 
        ``demonstrated executive experience'' required for SES 
        positions by 5 U.S.C 3393, or the ``well-honed 
        executive skills and broad perspective of government'' 
        recommended by OPM guidance on the SES.

    The Committee is concerned about the anomalies in the 
employment selection process as evidenced in the GAO report. 
The Committee would strongly encourage the CPSC develop a human 
resource selection protocol to ensure that non-political 
Commission staff have clear opportunities for development and 
promotion, and that candidates for SES positions be technically 
qualified for the demands of the position.
    Civil Penalty Caps: In 1972, Congress passed the CPSA with 
penalties of $2,000 per violation up to $500,000 for any 
related series of violations. In 1990, Congress raised the 
penalty amounts in recognition that the previous penalties had 
been insufficient to motivate compliance and had not kept pace 
with inflation. Congress raised the penalty amount to $5,000 
per violation up to a $1.25 million cap for a series of related 
violations and added a cost of living adjustment (COLA) factor. 
Congress also added penalty authority under the FHSA and the 
FFA.
    On January 1, 1995, the first COLA pushed the penalties to 
$6,000 per violation with a $1.5 million cap. On January 1, 
2005, the COLA increased penalties to $8,000 per violation with 
a $1.825 million cap. The largest civil penalty ever levied by 
the CPSC was against Graco Children's Products for $4 million. 
The penalty combined fines for seven different products that 
violated the CPSA. The CPSC entered into a settlement with 
Graco, which failed to report more than 12 million products 
that imposed dangers to children over an 11 year period.
    A comparison of current CPSC penalty authority highlights 
differences in enforcement regimes for consumer protection and 
consumer safety. The Federal Trade Commission has uncapped 
civil penalty authority (15 U.S.C. 45(m)). In 2002, Schering-
Plough agreed to pay a $500 million fine as a result of a Food 
and Drug Administration investigation into the company's drug 
manufacturing practices. Some States may have stronger 
penalties than the CPSC in protecting consumers from dangerous 
products. For example, in 2003, the State of New York fined Dow 
Chemical $2 million for misleading consumers about the safety 
of its pesticides.
    Preemption of State Product Safety Laws: In 2006, the CPSC 
included language in the preamble of its mattress flammability 
rule that would foreclose common law tort claims applied to 
mattress fire safety. The preemption language was not included 
in the draft rule that was released to the public for the 
notice and comment period, giving constituents no opportunity 
to comment on this significant change. In addition, the 
Commission did not fulfill the requirements of Executive Order 
13132 (August 4, 1999) that mandated consultation with local 
and State governments before enacting a rule that would 
substantially impact them, such as extinguishing common law 
actions in tort as part of a rule regulating product safety. 
The Executive Order states ``National action limiting the 
policymaking discretion of the States shall be taken only where 
there is constitutional and statutory authority for the action 
and the national activity . . . [and] agencies shall consult 
with appropriate State and local officials to determine whether 
Federal objectives can be attained by other means.''
    Many members of the Committee believe that the CPSC went 
beyond Congressional intent in placing this limitation of State 
common law actions in the preamble of the rule. The preemption 
section of the FFA, 15 U.S.C. 1203, uses the narrow term 
``standard or other regulation'' in subsections (a), (b) and 
(c) to encompass the action and subject matter to be preempted 
(15 U.S.C. 1203, emphasis added).

          (a) Standards or regulations designed to protect 
        against same risk as State standards or regulations; 
        identical State standards.--Except as provided in 
        subsections (b) and (c) of this section, whenever a 
        flammability standard or other regulation for a fabric, 
        related material, or product is in effect under this 
        chapter, no State or political subdivision of a State 
        may establish or continue in effect a flammability 
        standard or other regulation for such fabric, related 
        material, or product if the standard or other 
        regulation is designed to protect against the same risk 
        of occurrence of fire with respect to which the 
        standard or other regulation under this chapter is in 
        effect unless the State or political subdivision 
        standard or other regulation is identical to the 
        Federal standard or other regulation.
          (b) State standards or regulations which afford a 
        higher degree of protection.--The Federal Government 
        and the government of any State or political 
        subdivision of a State may establish and continue in 
        effect a flammability standard or other regulation 
        applicable to a fabric, related material, or product 
        for its own use which standard or other regulation is 
        designed to protect against a risk of occurrence of 
        fire with respect to which a flammability standard or 
        other regulation is in effect under this chapter and 
        which is not identical to such standard or other 
        regulation if the Federal, State, or political 
        subdivision standard or other regulation provides a 
        higher degree of protection from such risk of 
        occurrence of fire than the standard or other 
        regulation in effect under this chapter.
          (c) Exemption for State standards or regulations; 
        requirements; determination of burden on interstate 
        commerce; notice and hearing.--(1) Upon application of 
        a State or political subdivision of a State, the 
        Commission may, by regulation promulgated in accordance 
        with paragraph (2), exempt from subsection (a) of this 
        section, under such conditions as may be prescribed in 
        such regulation, any flammability standard or other 
        regulation of such State or political subdivision 
        applicable to a fabric, related material, or product 
        subject to a standard or other regulation in effect 
        under this chapter, if--
          (A) compliance with the State or political 
        subdivision requirement would not cause the fabric, 
        related material, or product to be in violation of the 
        standard or other regulation in effect under this 
        chapter, and
          (B) the State or political subdivision standard or 
        other regulation (i) provides a significantly higher 
        degree of protection from the risk of occurrence of 
        fire with respect to which the Federal standard or 
        other regulation is in effect, and (ii) does not unduly 
        burden interstate commerce. In determining the burden, 
        if any, of a State or political subdivision 
        flammability standard or other regulation on interstate 
        commerce the Commission shall consider and make 
        appropriate (as determined by the Commission in its 
        discretion) findings on the technological and economic 
        feasibility of complying with such flammability 
        standard or other regulation, the cost of complying 
        with such flammability standard or other regulation, 
        the geographic distribution of the fabric, related 
        material, or product to which the flammability standard 
        or other regulation would apply, the probability of 
        other States or political subdivisions applying for an 
        exemption under this subsection for a similar 
        flammability standard or other regulation, and the need 
        for a national, uniform flammability standard or other 
        regulation under this chapter for such fabric, related 
        material, or product.
          (2) A regulation under paragraph (1) granting an 
        exemption for a flammability standard or other 
        regulation of a State or political subdivision of a 
        State may be promulgated by the Commission only after 
        it has provided, in accordance with section 553(b) of 
        title 5, notice with respect to the promulgation of the 
        regulation and has provided opportunity for the oral 
        presentation of views respecting its promulgation.

    The preamble, if read in context with all the subsections, 
would require different interpretations of ``standard or other 
regulation'' between (a) and (c). While (a) sets forth the 
foundation of the agency's ability to preempt a State 
flammability standard or regulation, (c) allows States to apply 
to the Commission to exempt flammability standards or 
regulations from being preempted. Therefore, if one accepts the 
CPSC's interpretation, then a State court in the midst of a 
ruling between independent parties for economic and noneconomic 
damages regarding a mattress flammability matter would have to 
apply to the CPSC for an exception to allow the court to use 
its own common law.
    The preamble language extinguishing common law cases in 
this area of consumer product safety runs counter to the role 
of State courts and the most basic notions of Federalism and 
judicial economy. If the Congress wished to extinguish common 
law private rights of action for consumer products covered by a 
specific Federal product safety standard, it would have 
explicitly stated such a notion as it has in several other 
areas of law.
    Recall Effectiveness: In September 2007, approximately 1.3 
million toys were recalled for violating lead paint standards; 
1 million cribs were recalled for design flaws; and 425,000 
infant play yards were recalled for posing strangulation and 
suffocation hazards. In August 2007, almost 9 million toys were 
recalled for containing magnets that may come loose and create 
an ingestion hazard and thousands of pieces of children's 
jewelry were recalled for high lead content. While recalls for 
children's products have dominated press reports in recent 
months, candles, all-terrain vehicles, bunk beds, space 
heaters, clothes, knives, scuba masks, radios, lamps, and 
electronic equipment were also recalled. Some commentators have 
pointed to the number of recalls as a sign of success of the 
product safety system. Many of these recalls, however, were 
prompted by attention in the press as opposed to investigations 
by the CPSC. In particular, three circumstances in recent press 
reports that called for substantial reform of the CPSC and the 
recall system.
    Simplicity Cribs. On September 21, 2007, the Commission 
announced a voluntary recall with Simplicity, Inc. of Reading, 
Pennsylvania, of roughly 1 million baby cribs. The Commission 
reported two infant deaths, seven infant entrapments, and 55 
other incidents involving design flaw and hardware failure that 
permitted incorrect installation by consumers of one part of 
the crib. A drop-rail side in some crib models detached from 
the frame and created a small space that could entrap infants. 
The cribs were manufactured in China, marketed under the 
Simplicity and Graco brand names, and sold for $100 to $300 
from January 1998 through May 2007 by department stores and 
mass merchandisers worldwide. The voluntary recall directed 
consumers to contact Simplicity for a free repair. One month 
later, the CPSC announced that repair kits were ready to be 
sent to parents with the recalled cribs. The crib recall 
announced by the Commission on September 21 was the fourth 
Federal recall since May 2005 for Simplicity. In press reports, 
consumer safety groups voiced apprehension about the dangerous 
cribs, emphasizing that no margin of error exists when dealing 
with infant products of this nature. Critics have pointed to 
the Commission's delayed response time: a California attorney 
has said that he alerted the Commission about the death, caused 
by a faulty crib, of a 9-month old two years before the agency 
announced the crib recall. \1\
---------------------------------------------------------------------------
    \1\  Maurice Possley, Deaths Spur Huge Crib Recall, Chicago 
Tribune, September 22, 2007 at Zone C-Pg. 1 [hereinafter Possley].
---------------------------------------------------------------------------
  Kazuma Meerkat 50: In June 2007, the CPSC issued a warning 
about an all-terrain vehicle (ATV) imported from China called 
the Kazuma Meerkat 50. The Commission noted in its press 
release that ``Children are at risk of injury or death to 
multiple safety defects with this off-road vehicle.'' The 
Commission could not undertake a mandatory recall because it 
did not have a quorum and could not undertake any official 
business. Jason Tsai, President of the company that imports the 
Meerkat refused to voluntarily recall the ATV, and he told the 
Washington Post in an October 2007 article that he would never 
agree to a recall, because agreeing to a voluntary recall 
``means I agree with CPSC's [accusation] that the Meerkat 50 is 
a severe hazardous product. \2\ The article also highlighted 
that the CPSC is limited in information it can disclose about a 
product because of protections provided under section 6(b) of 
the CPSA. \3\ So in a situation such as the Meerkat impasse, 
the importer can force the CPSC into court over a disclosure 
that would help the consuming public help themselves. Despite 
the CPSC warning and the temporary quorum extension granted in 
the 9/11 Act, the CPSC has not initiated mandatory recall 
proceedings.
---------------------------------------------------------------------------
    \2\  Annys Shin, Stuck in Neutral: Consumer Safety panel Faces 
Constraints In Its Ability to Force Recalls of ATVs, Washington Post, 
Oct. 27, 2007 at D1.
    \3\  Id.
---------------------------------------------------------------------------
  Stand 'n Seal: The Stand 'n Seal case is a powerful 
illustration of the Commission's inability to protect consumers 
from harmful products. There have been at least 88 complaints 
from consumers who have used Stand 'n Seal, including two 
deaths and 28 cases of overexposure resulting in respiratory 
symptoms for which medical attention were sought.
  Stand 'n Seal, distributed by Roanoke Companies Group Inc. 
(Roanoke), is a canned aerosol sealant used to waterproof 
kitchen and bathroom floors. The product entered the market in 
late 2003 for sale exclusively at Home Depot stores. In the 
spring of 2005, one of Roanoke's suppliers switched an 
ingredient in Stand 'n Seal. Shortly after the reformulated 
cans reached Home Depot shelves, calls from customers, 
emergency rooms, and doctors poured into poison control centers 
and the CPSC's own hot line. \4\
---------------------------------------------------------------------------
    \4\  Eric Lipton, Dangerous Sealer Stayed on Shelves After Recall, 
New York Times, October. 8, 2007. Available at www.NYT.com.
---------------------------------------------------------------------------
  After weeks of consumer complaints, in mid-June 2005, Roanoke 
reported a possible health hazard from the Stand 'n Seal 
product to the CPSC. Then, for over two months, the CPSC and 
Roanoke negotiated a recall. During this negotiation period, 
the public was not alerted to the product hazard and the 
product remained on Home Depot's shelves. Also during this 
period, Mr. Tripodi, an executive for Roanoke, sent an e-mail 
message to a business associate saying, ``We are doing 
everything to convince the Home Depot that there is no reason 
to take these batches off the shelf.'' On August 31, 2005, the 
CPSC announced a voluntary recall of the Stand 'n Seal product. 
From mid-June 2005, when Roanoke reported to the Commission, to 
August 31, 2005, when the CPSC issued a voluntary recall, Stand 
'n Seal sickened dozens of people, two of them fatally. \5\
---------------------------------------------------------------------------
    \5\  Id.
---------------------------------------------------------------------------
  After the recall, Roanoke re-supplied Home Depot stores 
nationwide with 50,000 new cans of Stand 'n Seal and assured 
the Commission that it had fixed the problem. Since the CPSC's 
recall notice only applied to cans sold at Home Depot stores 
between April 2005 and June 2005, consumers were left to 
believe that the new Stand 'n Seal cans were safe for use. 
However, the new cans still contained the unsafe chemical 
implicated in earlier illnesses. Andrew Lamer, a 24-year-old 
home contractor, ended up in a hospital intensive care unit 
after using a can of Stand 'n Seal he bought in November 2005, 
four months after the recall. \6\
---------------------------------------------------------------------------
    \6\  Id.
---------------------------------------------------------------------------
  It was not until March 2007, a year and a half after the 
original recall, that Home Depot and Roanoke acknowledged the 
continuing health problem with Stand 'n Seal. A Home Depot 
statement conceded that the 50,000 cans used to restock the 
shelves in 2005 ``have been identified as containing the same 
potentially harmful formulation as the recalled batches.'' Home 
Depot then removed Stand 'n Seal from the market and posted a 
notice on its corporate Web site offering a refund to anyone 
who, after the recall, had bought one of the 50,000 cans. \7\
---------------------------------------------------------------------------
    \7\  Id.
---------------------------------------------------------------------------
  The time it took the Commission to take Stand 'n Seal off 
Home Depot's shelves has revealed serious deficiencies in the 
Commission's ability to carry out its mission to protect 
consumers from unsafe products. If the CPSC had acted more 
quickly to issue recalls of unsafe products or had alerted the 
public of the potential dangers, deaths and injuries associated 
with Stand 'n Seal might have been prevented.
  Lead in Children's Products: Lead is a highly toxic substance 
found in consumer products, contaminated-soil, homes, and work 
environments. Lead poisoning and lead exposure are problematic 
throughout the United States. Indeed, the U.S. Department of 
Housing and Urban Development has estimated that 24 million 
homes still have significant lead-based hazards. Children are 
especially vulnerable to lead exposure because of their 
developing nervous systems and brains. In particular, children 
under the age of six absorb greater amounts of lead than adults 
absorb when both groups' exposure to lead is identical. 
According to the Centers for Disease Control and Prevention 
(CDC), not only are children at increased risk of exposure to 
lead because they absorb more lead than adults but also because 
they tend to exhibit more hand-to-mouth activity than adults. 
Lead is associated with impaired motor, behavioral, cognitive, 
and physical functioning in children. The adverse health 
effects of lead poisoning in children can take many forms: 
behavior and learning problems like hyperactivity, ADHD, ADD, 
hearing problems, headaches, memory and concentration problems, 
stunted growth, brain damage and nervous system damage. 
According to a 1991 statement by the CDC:

          Very severe lead exposure in children (blood lead 
        levels 380  g/dL) can cause coma, convulsions, and even 
        death. Lower levels cause adverse effects on the 
        central nervous system, kidney, and hematopoietic 
        system. Blood lead levels as low as 10  g/dL, which do 
        not cause distinctive symptoms, are associated with 
        decreased intelligence and impaired neurobehavioral 
        development. \8\
---------------------------------------------------------------------------
    \8\  William L. Roper, M.D., M.P.H, Director; Vernon N. Houk, M.D., 
Henry Falk, M.D., Sue Binder, M.D., Preventing Lead Poisoning in Young 
Children: A Statement by the Centers for Disease Control and 
Prevention-October 1991. Available online at http://www.cdc.gov/nceh/
lead/publications/books/plpyc/chapter2.htm

  In 1991, while the CDC defined 10 micrograms per deciliter ( 
g/dL) as the blood lead level that should trigger action by 
public health officials, the CDC acknowledged that the 10  g/dL 
did not represent a threshold for the harmful effects of lead. 
Since then, no safe blood lead level in children has been 
identified. Based on research conducted since 1991, evidence 
indicates that blood lead levels of less than 10  g/dL can 
affect children's physical and mental development, according to 
a report written by the CDC's Advisory Committee on Childhood 
Lead Poisoning Prevention (Advisory Committee) and published in 
the November 2007 issue of the medical journal Pediatrics. The 
report noted that lead ``has a continuing negative association 
with IQ as children reach elementary school age.'' \9\ The 
Advisory Committee's report also enumerated nonhousing lead 
sources of exposure for children, many of which fall under the 
jurisdiction of the CPSC, including pottery and toys. The 
report found that ``because no safe BLL [blood lead level] has 
been defined, small reductions in population-level exposures to 
lead would likely affect substantial numbers of children and 
could be expected to reduce the number of children with adverse 
health outcomes associated with lead exposure.'' \10\
---------------------------------------------------------------------------
    \9\ Helen J. Binns, MD, Carla Campbill, MD, Mary Jean Brown, ScD, 
RN for the Advisory Committee on childhood Lead Poisoning Prevention, 
Interpreting and Managing blood Lead Levels of Less Than 10  g/dL in 
children and Reducing Childhood Exposure to Lead: Recommendations of 
the Centers for Disease Control and Prevention Advisory Committee on 
Childhood Lead Poisoning Prevention, PEDIATRICS Vol. 120, No. 5, 
November 2007, pp. e1285-e1298 (doi:10.1542/peds.2055-1770). Published 
online November 1, 2007.

    \10\  Id.
---------------------------------------------------------------------------
  Highlighting the toxicity of lead and the detrimental impact 
of lead exposure on children's cognitive, physical, and 
behavioral development, the American Academy of Pediatrics 
reiterated much of the CDC's scientific findings on lead 
accumulation in children in a letter to Acting Chairman Nancy 
Nord, dated March 7, 2007:

          Lead is well-established as a potent neurotoxin and a 
        particular threat to the developing brain of the young 
        child, with documented negative effects on behavior and 
        permanent loss of IQ points. No threshold for the toxic 
        effects of lead has been identified. When lead 
        accumulates in the body, it is tightly bound to bone 
        and then released slowly over years or decades. Thus, 
        exposures that may be separated by months to years have 
        an additive effect on the body's burden of lead. 
        Acquisition of lead in the body even in small amounts 
        (i.e., amounts that result in blood lead levels <10  g/
        dL) contribute to an accumulation of lead and produce 
        the negative effects of lead on children's health and 
        development that last a lifetime . . . Studies on lead 
        accumulation at lower levels report a loss of 4 to 7 IQ 
        points for lead levels that move from 1  g/dL to 10  g/
        dL. \11\
---------------------------------------------------------------------------
    \11\ 

  Increasing children's risk of lead exposure are the millions 
of toys recently recalled for containing hazardous levels of 
lead. Posted on the Commission's website are many recalls 
involving lead in children's jewelry; notable examples include: 
a July 8, 2004, recall of one hundred fifty million pieces of 
toy jewelry for containing dangerous levels of lead by four 
companies, A & A Global Industries, Brand Imports, LLC, 
Cardinal Distributing Company, and L. M. Becker & Company; and 
a September 26, 2007, recall by Toby N.Y.C. of 23,500 Toby and 
Me Jewelry Sets that contained high levels of lead. In 2006, a 
four-year old child died in Minnesota after swallowing a piece 
of a Reebok charm bracelet found to be almost entirely composed 
of lead. In 2004 in Oregon, a child ingested a necklace of high 
lead content, after which her blood lead level was recorded as 
123  g/dL.
  Not only has lead in children's metal jewelry been prevalent 
in recent recalls, but products have also been recalled for 
containing dangerous levels of lead paint. Currently, Federal 
law bans the use of lead in paint above 600 parts per million. 
Despite the U.S. Federal standard, Mattel revealed to the House 
of Representatives Subcommittee on Commerce, Trade and Consumer 
Protection on September 19, 2007, the range of lead levels, in 
violation of Federal standards, in its recalled products: ``The 
reported noncompliant lead levels found in paint on some 
samples of recalled toys, so far, has typically been about one 
(1) percent or 10,000 parts per million. The reported 
noncompliant lead levels in paint, so far, range from just over 
the applicable standard to about eleven (11) percent or 110,000 
parts per million.''
  Current science has highlighted the greater danger, 
especially to children, from lead exposure. Standards need to 
be updated to reflect this new information and improved testing 
abilities.

                         Summary of Provisions

  CPSC Resources: To address CPSC's lack of resources described 
above, S. 2045 (the ``Reform Act'' or the ``Act'') would 
provide an authorization of $759 million over seven years, 
which is a 74 percent increase over current funding levels. The 
Reform Act also would provide $40 million in funding authority 
to renovate and improve the CPSC laboratory facilities, an 
additional $1 million to support research into the safety of 
nanotechnology in consumer products, and $15 million in funding 
over the next seven years for the Commission's Office of the 
Inspector General.
  Commission Administration and Rulemaking: The Reform Act 
would address current statutory authority and operations of the 
CPSC. The most significant provisions include:
  Quorum. Originally, the CPSC was to be composed of up to five 
Commissioners, not more than three of whom could be members of 
the same political party. In 1992, Congress restricted funds 
for two Commissioners and their staffs for FY 1993 and 
thereafter. Since that time, the CPSC has functioned as a 
three-member commission, with a temporary quorum rule to allow 
the CPSC to function with two Commissioners for up to 6 months. 
Without a quorum, the Commission cannot conduct any business 
requiring a vote, including rulemakings or civil penalties, or 
hold public hearings. After the expiration of the temporary 
quorum in January 2007, the CPSC operated without a quorum 
until the signing of the 9/11 Act on August 3, 2007, which 
included a six month extension of the temporary quorum rule, 
allowing the CPSC to operate fully until February 3, 2008. The 
Act would extend the temporary quorum rule for nine months 
after the date of enactment. Also, the Act would repeal the 
limit on the use of appropriated funds for more than three 
Commissioners and urge the President to nominate members to 
fill all five Commissioner positions.
  Personnel. The Reform Act would require the CPSC to increase 
the number of its FTEs to at least 500 from its current level 
of approximately 400 by October 1, 2013, and would assign an 
additional 50 FTEs to ports of entry or overseas inspection 
duty by October 1, 2010. In addition, to help assure only the 
most qualified individuals obtain civil service positions 
within the CPSC and to limit political influence in the 
professional permanent staff of the Commission, the bill would 
prohibit the appointment of an active political employee to a 
civil service position within the Commission, unless the 
appointment is authorized by a unanimous vote of the Commission 
or more than one year has elapsed since his or her termination 
from the CPSC political appointment. The bill also would 
prohibit the reduction of staff in the office of a 
Commissioner, unless the reduction is authorized by a unanimous 
vote of the Commission.
  Rulemaking. Currently the CPSC is required to undertake a 
three-step rulemaking process (Announced Notice of Proposed 
Rulemaking (ANPR), Notice of Proposed Rulemaking (NPR), and the 
Issuance of the Final Rule). By mandating a two-step rulemaking 
(NPR and Issuance of Final Rule), while allowing the CPSC to 
use its three-step process when the Commission deems 
appropriate, the Reform Act would streamline the process.
  Preemption. In 2006, the CPSC included language in the 
preamble of its mattress flammability rule that would foreclose 
common law tort claims applied to mattress fire safety. The 
preemption language included in the rule was not authorized by 
Congress and was not included in the draft rule that was 
released to the public for the notice and comment period, 
giving constituents no opportunity to comment on this 
significant change. S. 2045 would clarify that no consumer 
product safety standard promulgated by the Commission after the 
date of enactment of the Reform Act, or any other action taken 
by the Commission after that date, would preempt any State or 
local law to an extent greater than currently permitted under 
the preemption sections of the CPSA, the FHSA, the FFA, or the 
PPA. The section would further clarify that the Standard for 
the Flammability of Mattress Sets promulgated by the CPSC would 
not limit a State's or a political division of a State's rights 
to common law actions in tort and to establish standards 
consistent with section 16(b) and (c) of the FFA, or the other 
preemption sections within the CPSA, the FHSA, and the PPA.
  Recall Effectiveness: S. 2045 contains five major amendments 
to the current recall system under the CPSA.
  Corrective Action Plans. Currently, companies can elect the 
remedy they wish to use in the recall of a defective product `` 
a repair, replacement, or refund'' even though Commission staff 
may view the recall method as inadequate or lacking in 
effectiveness. S. 2045 would provide the Commission the 
authority to approve the corrective action plan it determines 
to be in the public interest, instead of allowing the 
manufacturer to select the corrective action plan it believes 
appropriate. Further empowering the Commission, if the agency 
finds that an approved corrective action plan is not effective, 
or that the manufacturer, retailer, or distributor is not 
executing an approved action plan effectively, S. 2045 would 
enable the Commission to order the action plan to be amended, 
if the Commission finds an approved corrective action plan not 
effective or that the manufacturer, retailer, or distributor is 
not effectively executing a corrective action plan. If the 
Commission determines, after notice and the opportunity for 
comment, that a manufacturer, retailer, or distributor has 
failed to comply substantially with its obligations under its 
action plan, the Commission would have the authority to revoke 
approval of the action plan and require the manufacturer, 
retailer, or distributor to cease distribution of the product.
  Tracking Labels for Children's Products. Currently, no 
mandatory Federal regime exists for identifying/tracking marks 
to be placed on children's products. Because of the necessity 
to identify and remove these products from the stream of 
commerce as soon as possible after the notice of a voluntary or 
mandatory recall, S. 2045 would require manufacturers of 
children's products to place distinguishing marks on the 
product and its packaging to the extent practicable, enabling 
the purchaser to ascertain the source, date, and cohort 
(including the batch, run number, or other identifying 
characteristic) of the product by reference to those marks. S. 
2045 would also authorize the Commission to extend the tracking 
requirement to other products through a rulemaking proceeding.
  Identification of Manufacturers by Importers and Retailers. 
The CPSA contains no provision that explicitly requires 
manufacturers, retailers, or importers to maintain and provide 
records to the Commission of product distribution or sale to 
related entities. This lack of communication and transparency 
delays product recall notification to relevant actors. To 
address this, S. 2045 would require that every importer, 
retailer, or distributor of any product or substance under the 
Commission's jurisdiction to identify the manufacturer of that 
product by name, address, or such other identifying information 
as the Commission may request. In addition, each manufacturer 
would be required to identify the retailer, or distributor to 
which it supplied a given consumer product and each 
subcontractor involved in the production or component supply of 
a product by name, address, or such other identifying 
information upon the request of the Commission.
  Bonding for Recalls or Destruction of Products. In certain 
situations a manufacturer, importer or retailer may not have 
the resources to execute an effective recall to remove a 
dangerous product from the stream of commerce. To address this 
potentiality, the Reform Act would give the Commission the 
authority, by rule, require manufacturers or distributors of a 
consumer product to post a bond (or other security acceptable 
to the Commission) in an amount sufficient to cover the costs 
of an effective recall of the product or substance, and in the 
case of an imported product or substance, to cover the costs of 
holding the product or substance at the port and destruction of 
the product or substance should such action be required. 
Prohibition of Sale of Recalled Products. Currently, the CPSA 
prohibits individuals from manufacturing, selling, 
distributing, or importing either a consumer product in 
noncompliance with an applicable safety standard under the CPSA 
or a declared banned hazardous substance under the FHSA. S. 
2045 would add additional protections pertaining to the sale of 
a voluntarily recalled product and expand prohibitions on the 
sale of recalled consumer products under any other Act enforced 
by the Commission. All persons would be prohibited from 
selling, manufacturing, distributing or importing into the 
United States any consumer product that is subject to a 
voluntary corrective action taken by the manufacturer of which 
the CPSC has notified the public. As a result of this addition, 
it would be unlawful for individuals to sell a product that the 
individual knew or should have known was voluntarily or 
mandatorily recalled after a public announcement made by the 
Commission of the recall.
  Industry Reporting and Public Disclosure: The CPSC and 
several outside constituencies have made a number of 
suggestions to improve the reporting system and to provide more 
information to consumers about unsafe or potentially unsafe 
products. After reviewing the submissions, the Committee 
formulated a comprehensive approach to reporting reform. The 
most significant of these provisions include:
  Company Reporting of Defective Products and Statutory 
Violations. Under section 15(b) of the CPSA, companies are 
required to immediately inform the CPSC of information which 
reasonably supports the conclusion that a consumer product: (1) 
fails to comply with a product safety rule; (2) contains a 
defect that could create a substantial product hazard; or (3) 
creates an unreasonable risk of serious injury or death. This 
obligation, however, does not extend to substances and products 
covered by statutes other than the CPSA that the Commission 
enforces, such as the FHSA. Consistent with the requests of 
both CPSC Commissioners, S. 2045 would extend the section 15(b) 
reporting requirements to all statutes that the CPSC enforces.
    Whistleblower Protections. S. 2045 would establish 
whistleblower protections for private and governmental 
employees who: (1) provided or are about to provide to an 
employer, the Federal government, or a State attorney general 
information relating to any violation or alleged violation of 
any order, regulation, or consumer product safety standard 
under any law enforceable by the Commission; (2) testified or 
are about to testify about such matters; (3) assisted or 
participated or is about to assist or participate in the 
investigation of such matters; or (4) objected to, or refused 
to participate in, an act reasonably believed to be in 
violation of law or a substantial danger to public health or 
safety. The bill would set out procedures under which an 
employee may file a complaint with the Department of Labor 
(DOL) against an employer alleging unlawful employment action 
and provide the employer the opportunity to respond and defend 
itself. If the DOL determines that a complainant was aggrieved 
as a result of being a whistleblower, the DOL would be 
authorized to order the employer to provide compensation 
(including back pay); restore the terms, conditions, and 
privileges associated with his or her employment; and provide 
compensatory and consequential damages, reasonable litigation 
costs, and punitive damages up to $250,000.
  S. 2045 would encourage employees to report product safety 
violations to the CPSC or State attorneys general by granting 
an employee 15 to 25 percent of any civil penalty collected 
with respect to a reported violation. If the CPSC or a State 
attorney general proceeds with an action based on information 
provided by a nongovernmental employee, the employee would be 
eligible to receive between 15 and 25 percent, as determined by 
the Commission, of a civil penalty collected depending upon the 
extent to which the information provided by the employee 
substantially contributed to the enforcement action. If the 
Commission's action is based primarily on disclosures of 
specific information not directly provided by the employee, the 
Commission would be authorized to award up to 10 percent of a 
civil penalty collected as it considers appropriate based on 
the role of the employee. An employee would not be entitled to 
a reward if he or she caused the violation without the 
knowledge and direction of his employer. Additionally, an 
employee who brings a frivolous lawsuit would be subject to a 
$1,000 penalty.
  Public Disclosure of Information. The Chicago Tribune 
recently reported that the September 2007 recall of 1 million 
cribs only occurred after the newspaper began raising 
questions. This was despite two deaths and 55 complaints 
received by the CPSC regarding the cribs, beginning in April 
2005. A CPSC investigator was quoted as saying ``[w]e get so 
many cases. Once I do a report, I send it in and that's it. I 
go to the next case. We could spend more time, but we are under 
the gun. We have to move on.'' \12\
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    \12\ Possley at Zone C-Pg. 1.
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  The CPSC, unlike other safety agencies, is restrained from 
disseminating to the public product and manufacturer specific 
information under the CPSA. Under section 6(b) of the CPSA, the 
Commission cannot disclose complaint information with respect 
to a product, unless it is an imminent hazard or in violation 
of the CPSA. Other manufacturer specific information is barred 
from release unless and until the agency has sent a copy of it 
to the named manufacturer, allowed the manufacturer 30 days to 
comment on the information, reviewed the manufacturer's 
comments regarding the accuracy of the information and the 
fairness of releasing it, and determined that disclosure of the 
information would effectuate the purposes of the CPSA. If a 
manufacturer believes that the CPSC has not complied with the 
required procedure, it may seek to enjoin the disclosure of 
information through court action.
  Manufacturers believe that section 6(b) restrictions are 
important because information that may be released by the CPSC 
may be inaccurate and that it should be incumbent upon the CPSC 
to ensure that only accurate information be released. 
Misinformation could hurt the reputation of manufacturers and 
products. In addition, manufacturers argue that the general 
release of information will lead to unsupported lawsuits and 
discourage the voluntary reporting of information.
  The dictates of section 6(b), however, are resource intensive 
for the
 already overburdened agency, especially when a company chooses to 
fight the release of information. As a result, releases by the CPSC 
    and responses to Freedom of Information Act requests have been 
delayed and product safety information has not reached the public. 
   In contrast, the National Highway Traffic Safety Administration 
 (NHTSA) has no similar constraints and routinely posts car safety 
information, including consumer complaints, on its website by make 
  and model. The information is not reviewed for accuracy by NHTSA 
and can be used by consumers in evaluating the safety of infant car 
                                seats and cars they might purchase.
  S. 2045 would eliminate the current section 6(b) of the CPSA. 
In its place, the Commission, to the extent practicable, would 
be required to provide the manufacturer or private labeler of a 
consumer product up to 15 days to review relevant information 
for confidentiality prior to disclosure. At the end of this 
period, in addition to marking proprietary information 
confidential, the manufacturer would have the opportunity to 
file comments with the CPSC as to the veracity of the 
information to be released. The Commission would be required to 
disclose the comments of a manufacturer as an addendum at the 
company's request.
  Inter-Governmental Sharing of Product Safety Information. 
Goods made overseas are sold not only in the United States but 
also in Europe, Africa, and other continents. To the extent 
that the European Union bans an unsafe product and the United 
States does not, shipments to Europe may well be diverted to 
American shores. Once in the United States, the products may 
move from State to State.
  In recognition of this global market, the Committee seeks to 
empower the CPSC to share information with any other Federal, 
State, local, or foreign governments, so long as those entities 
have established the ability to protect such information from 
premature public disclosure and agree to protect such 
information. The European Union has voiced an interest in 
establishing an information sharing relationship with the CPSC 
but has not been able to do so under the CPSC's current 
statutory authority.
  Based on language in the U.S. SAFE WEB Act of 2006 (P.L. 109-
455), which authorized and established procedures under which 
the Federal Trade Commission may share information with foreign 
law enforcement agencies, S. 2045 would authorize the CPSC to 
share information with Federal, State, local, and foreign 
agencies. Prior to the disclosure of such information, however, 
the receiving entity must certify through prior agreement or 
memorandum of understanding that the material will only be used 
for official law enforcement or consumer protection purposes 
and the agency has set forth a bona fide legal basis for its 
authority to maintain the material in confidence. S. 2045 also 
would require the CPSC to maintain the confidentiality of 
information it receives from foreign governments.
  CPSC Import Enforcement Improvements: S. 2045 would provide 
additional authority to aid in the prosecution of importers 
that violate the acts enforced by the Commission. S. 2045 would 
improve the Commission's import enforcement regime by the 
following statutory changes:
  Third Party Certification of Children's Products. Consumers 
are wary that products are not made to the same safety 
standards outside of the United States and are surprised to 
find out that many of the large American toy and children's 
product companies actually have large manufacturing facilities 
abroad. S. 2045 would address this growing lack of confidence 
in the safety of children's products by creating a third party 
certification regime. Every manufacturer of a children's 
product subject to CPSC jurisdiction would be required to use 
third party laboratories to test their products to certify that 
their product conforms to CPSC safety standards, if applicable. 
S. 2045 would require that the CPSC establish protocols and 
standards for credentialing independent third party 
laboratories or delegate that authority to an independent 
standard setting organization to carry out those duties. The 
CPSC or its designee would verify that products tested by such 
parties comply with safety standards. The Commission may 
certify a company-owned laboratory so long as it meets or 
exceeds the standards of a third party laboratory and it is 
protected from undue influence from the company's other 
business units. All children's products, and any other product 
the Commission deems necessary, would be subject to oversight 
by an independent third party laboratory and would be required 
to carry a label to inform consumers that the product meets 
U.S. safety standards. S. 2045 also would prohibit the 
importation of children's products that are not accompanied by 
certification from an independent third party laboratory.
  Repeated Importation Offenses. S. 2045 would create an 
``aiding and abetting'' violation for customs brokers that 
repeatedly assist an importer with violative products in 
evading detection. The Commission would have the authority to 
share this information with CPB with a recommendation that the 
offender's custom broker's license be revoked. Those so 
referred would have their licenses revoked by Customs and 
Border Protection.
  Export of Recalled Products. S. 2045 would authorize the 
Commission to prohibit the exporting of products that the 
Commission determines are not in conformity with applicable 
product safety standards, subject to an order for a banned 
hazardous substance, or subject to a voluntary corrective 
action that would have been subject to a mandatory corrective 
action by the CPSC. The Commission could permit the export of a 
product that would be subject to this section if that product 
meets the applicable safety standards of the importing country.
  Civil and Criminal Penalties:  The Reform Act would modify 
the current authority in the following ways:
  Civil Penalties. S. 2045 would increase the civil penalty cap 
for each violation of a prohibited act under the CPSA, the 
FHSA, or the FFA from $8,000 to $250,000. The maximum civil 
penalty cap for a related series of violations under each act 
would increase from $1,825,000 to $100,000,000. S. 2045 would 
provide strong civil penalty authority for the Commission, 
creating an incentive for companies to comply with the CPSC 
enforced statutes.
  The Committee believes that this increase in penalty 
authority should be accompanied by a clear delineation of the 
factors the Commission will use in determining the size of the 
civil fine it may seek in a given situation. S. 2045 would 
direct the Commission, within a year of enactment, to initiate 
a rulemaking to establish criteria for the imposition of civil 
penalties. In the rulemaking, the Commission would evaluate the 
impact of repeat violations, the precedential value of prior 
adjudicated penalties, the nature of the product defect, the 
severity of the risk of injury, the occurrence or absence of 
injury, the number of defective products distributed, the 
appropriateness of such penalty in relation to the size of the 
business the person charged, and other circumstances.
  Criminal Penalties. Currently, the CPSA provides criminal 
penalties of not more than one year for any person who 
knowingly and willfully violates the CPSA after having received 
notice of noncompliance from the Commission. Individual 
directors, officers, or agents of a corporation who knowingly 
and willfully authorize, order or perform an action in 
violation of the CPSA and who have knowledge of notice of 
noncompliance received from the Commission also may face 
criminal penalties of not more than one year.
  The ``notice of noncompliance'' requirement poses a 
substantial hurdle that makes the CPSC's current criminal 
penalty authority virtually unusable. The notice provision 
means that a bad actor may intentionally violate the CPSA 
without fear of criminal prosecution. Only after the CPSC finds 
the company and provides notice of noncompliance would the 
company be at risk of criminal sanction and then only if it 
continued violating the CPSA.
  In addition, the ``knowing and willful'' requirement means 
that the Commission must demonstrate in any criminal 
prosecution that a company both had knowledge of the facts that 
constitute the violation of the CPSA (knowing) and acted with 
the knowledge that its conduct was unlawful (willful).
  The FHSA also contains criminal penalty provisions. Under the 
FHSA, any person who violates any provision of the FHSA, 
regardless of his or her mens rea (strict liability), faces a 
maximum of 90 days in prison. If the CPSC proves that the 
individual violated the FHSA ``with intent to defraud or 
mislead,'' or for a second offense, he faces not more than one 
year in jail. While the language of the FHSA is modeled on the 
criminal provisions of the Federal Food, Drug, and Cosmetic Act 
(FDCA), the penalties in the FDCA are stricter. Under the FDCA, 
an individual faces up to one year imprisonment for strict 
liability violations and up to three years imprisonment for 
violations with the intent to defraud or mislead.
  S. 2045 would strike ``notice of noncompliance'' requirement 
in the CPSA, which would allow the Commission to seek criminal 
penalties against the most egregious violators when they are 
first identified. In addition, the bill would harmonize the 
criminal provisions of the CPSA, the FHSA and the FFA. S. 2045 
would make a knowing violation of either statute punishable by 
imprisonment for not more than one year. A knowing and willful 
violation of the CPSA, the FHSA or the FFA would be punishable 
by imprisonment for not more than five years. In addition, S. 
2045 would give the Commission authority to seek asset 
forfeiture as a criminal penalty.
  Attorney General Enforcement. As has been recognized by 
consumer groups and industry, the CPSC is underfunded and lacks 
resources to aggressively pursue many aspects of its mission. 
This includes the CPSC's investigative and enforcement 
capabilities. Consistent with other bills passed out of the 
Commerce Committee such as the CANSPAM Act of 2003 and the 
Identity Theft Prevention Act of 2007, S. 2045 would authorize 
a State to bring a civil action on behalf of its residents to 
enforce the provisions of the Acts enforced by the CPSC. By 
empowering State attorneys general to act, the CPSC will be 
buttressed by the resources of State attorney general offices.
  To encourage uniformity, States would be required to serve 
written notice to the Commission of any civil action at least 
60 days prior to initiating such civil action, if feasible. 
Upon receiving the notice, the Commission would be authorized 
to intervene in the civil action, be heard on all matters in 
the case, and file petitions for appeal of a decision. If the 
Commission has instituted a civil action or an administrative 
action, no State attorney general would be authorized to bring 
an action during the pendency of the Commission action. If the 
attorney general of the State prevails in any civil action, it 
is authorized to seek remedies delineated under the CPSA and 
other Acts enforced by the Commission as well.
  Lead and Consumer Products: S. 2045 contains new authority 
that would ban lead in children's products other than trace 
amounts. Within 180 days after the date of enactment, any 
children's product containing lead would be treated as a banned 
hazardous substance under the FHSA, and the prohibition would 
apply without regard to whether the lead contained in such 
children's product is accessible to children.
  The Committee recognizes that eliminating lead completely is 
nearly impossible and so permits trace amounts of lead to 
remain in products. S. 2045 defines trace amounts of lead as 
follows: a children's product will be considered to contain 
lead if, in the case of a children's product that is jewelry, 
any part of the product contains lead or lead compounds and the 
lead content of such part is greater than 0.02 percent by 
weight of the total weight of such part.
  The agency would consider a children's product to contain 
lead if, in non-jewelry children's products, any part of the 
product contains lead or lead compounds and the lead content of 
such part is greater than 0.04 percent by weight of the total 
weight of such part.
  If the Commission determines that it is not feasible for 
certain electronic devices, including batteries, to comply with 
the prohibition, the Commission would be authorized to issue 
standards to reduce the exposure of, and accessibility to, lead 
in such electronic devices, and to establish a schedule by 
which such electronic devices shall be in full compliance with 
the regulations.
  S. 2045 also would grant the Commission greater rulemaking 
authority to aggressively reduce lead in children's products. 
Upon enactment, the Commission would be required to commence a 
rulemaking as to whether lower thresholds should be prescribed 
for children's products. If the Commission decides that lower 
thresholds are appropriate, it would promulgate regulations 
establishing lower thresholds.
  Finally, the bill would direct the Commission to reduce the 
permissible lead level permitted in consumer use paint from 
0.06 percent to 0.009 percent.
  Ongoing Product Rule Amendments and Guidance: S. 2045 would 
address certain specific product safety standards. These 
include:
  Cost-Benefit Analysis Under the PPPA. As part of its Program 
Assessment Rating Tool process, the Office of Management and 
Budget is advocating that the CPSC use a cost/benefit analysis 
in the CPSC's PPPA rulemakings. This runs counter to the 
legislative intent of Congress which specifically did not 
include a cost/benefit analysis in the PPPA, as it did for many 
of the other statutes administered by the CPSC. A cost/benefit 
analysis under the PPPA would force the Commission to weigh the 
risk of poisoning children against the cost of preventing it. 
S. 2045 would clarify the PPPA by preventing all PPPA standards 
from requiring a comparison of the costs versus benefits.
  Toy Safety Standard. The Reform Act would address the lack of 
a Federal toy safety standard. As of 60 days after the date of 
enactment, the ASTM-International standard, Consumer Safety 
Specifications for Toy Safety (F963-07), will be considered a 
mandatory consumer product safety rule issued under the CPSA. 
Updates to the standard by ASTM-International will be 
incorporated into the Federal mandatory toy safety standard 
unless the CPSC determines that the revision does not improve 
toy safety. If the CPSC makes that determination, the prior 
version of the F963-07 standard will continue as the mandatory 
consumer product safety rule without regard to the proposed 
revision.
  All-Terrain Vehicle Safety Standard. S. 2045 would require 
the CPSC to publish in the Federal Register as a mandatory 
consumer product safety standard the American National Standard 
for Four Wheel All-Terrain Vehicles Equipment Configuration, 
and Performance Requirements developed by the Specialty Vehicle 
Institute of America. The standard would take effect 150 days 
after it is published. If the All-Terrain Vehicle (ATV) safety 
standard is revised, the Commission would be required to 
conduct a rulemaking to amend the product safety standard for 
ATVs to include any such provision that the Commission 
determines is reasonably related to the safe performance of 
all-terrain vehicles. The Commission also would have the 
authority to include any additional provisions that the 
Commission determines is reasonably necessary to reduce an 
unreasonable risk of injury associated with all-terrain 
vehicles.
  After the standard takes effect, it would be unlawful for any 
manufacturer or distributor to import into or distribute in 
commerce any new assembled or unassembled all-terrain vehicle 
unless the vehicle complies with each applicable provision of 
the standard or is subject to or complying with certain other 
ATV action plans filed with the Commission. Failure to comply 
with the ATV standard would be deemed a failure to comply with 
a consumer product safety rule and would be subject to all of 
the penalties and remedies available under the CPSA.
  The section also creates a ban on 3-wheeled all-terrain 
vehicles. It clarifies that until a mandatory consumer product 
safety rule applicable to 3-wheeled all-terrain vehicles is in 
effect, it would be unlawful to import or distribute into 
commerce new 3-wheeled ATVs in the United States.
  Finally, the section requires that the Commission issue a 
final rule in its proceeding entitled Standards for all-terrain 
vehicles and ban of three-wheeled all-terrain vehicles. In the 
final rule, the Commission would provide for a multiple factor 
method of categorization that, at a minimum, would incorporate 
weight, the maximum speed of the vehicle, velocity, age and 
height of child riders into its analysis.

                          Legislative History

  On September 12, 2007, Senator Mark Pryor introduced S. 2045, 
which was referred to the Committee on Commerce, Science and 
Transportation. Chairman Inouye and Senators Klobuchar, Nelson 
(FL), Durbin, Schumer, Brown, Casey, and Menendez cosponsored 
the measure. The Commerce Committee held a legislative hearing 
on S. 2045 on October 4, 2007. At this hearing, the Committee 
explored the state of the CPSC, examined reforms that are 
necessary to make the agency more effective to protect children 
and other consumers from dangerous and defective products, and 
sought comments on the proposed bill. CPSC Acting Chairman 
Nancy Nord, Commissioner Thomas Moore, and representatives from 
the consumer, manufacturer, and retailer associations testified 
at the hearing.
  On October 30, 2007, the Committee met in open executive 
session to consider an amendment in the nature of a substitute 
offered by Senator Pryor and Chairman Inouye that made several 
substantive changes to the bill as introduced. In addition to 
that substitute, Senator Pryor and Chairman Inouye offered a 
package of technical amendments to clarify and correct portions 
of the substitute. Senator Kerry offered an amendment for the 
CPSC to study the feasibility of establishing a ``units-of-
mass-per-area-standard'' for measuring lead content in consumer 
products. Senator Dorgan offered an amendment to assess 
disparities in the risks and incidence of preventable injuries 
and deaths among children of minority populations. Senator 
Boxer offered two amendments. The first would amend the FHSA to 
require the inclusion of warning labels on Internet and catalog 
advertising of certain toys and games. The second amendment 
would require manufacturers of durable infant and toddler 
products to provide consumer product registration cards to 
facilitate recalls of those products. Senator Nelson offered 
three amendments. The first amendment would mandate issuance of 
the portable generator safety rule to reduce deaths and 
injuries from carbon monoxide poisoning. The second amendment 
would mandate the CPSC issue a final rule on cigarette lighter 
safety. The third amendment would establish the ASTM-
International standard for toy safety as a mandatory consumer 
product safety rule. Senator Pryor offered an amendment to 
ensure that the consumer product safety standard for garage 
door openers retain an optical or edge sensor requirement. 
Senator McCaskill offered three amendments. The first amendment 
would establish a consumer product safety rule that would 
require child-resistant closures on all portable gasoline 
containers. The second amendment would authorize increased 
funding for the CPSC Inspector General. The third amendment 
would strengthen the whistleblower protections in the 
substitute amendment. Vice Chairman Stevens offered an 
amendment to establish mandatory safety standards for ATVs. The 
Vice Chairman offered a second degree amendment that was 
modified by Senator Kerry that made substantive and technical 
corrections to the underlying amendment. Senator Snowe offered 
an amendment to authorize hiring at least fifty additional CPSC 
inspection personnel for duty stations at U.S. ports or 
overseas production facilities. Each of these amendments to the 
Pryor-Inouye substitute, except for Senator McCaskill's 
amendment strengthening whistleblower protections, was adopted 
en bloc by voice vote. Senator McCaskill's whistleblower 
amendment was then adopted by voice vote. The Committee adopted 
the Pryor-Inouye substitute amendment to the underlying 
measure, as amended, and ordered the bill reported by voice 
vote.

                            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:

S. 2045--CPSC Reform Act of 2007

    Summary: S. 2045 would authorize the appropriation of funds 
to the Consumer Product Safety Commission (CPSC), for fiscal 
years 2009 through 2015, for the purpose of implementing an 
array of consumer protection laws, including the Consumer 
Product Safety Act. Certain amounts authorized by the bill 
would be used to fund CPSC's operating expenses, while other 
funds would be designated specifically for the Office of 
Inspector General, capital improvements to the agency's testing 
facility, and research into the use of nanotechnology in 
consumer products.
    CBO estimates that implementing S. 2045 would increase 
spending subject to appropriation by $447 million over the 
2009-2012 period, assuming appropriation of the specified 
amounts. In addition, CBO estimates the bill would increase 
federal revenues by $17 million over the 2008-2012 period, and 
$48 million over the 2008-2017 period by increasing civil 
penalties levied by CPSC. CBO estimates the bill would not 
affect direct spending.
    S. 2045 contains an intergovernmental mandate as defined in 
the Unfunded Mandates Reform Act (UMRA) because it would 
require state and local governments to comply with 
whistleblower protections authorized in the bill. CBO estimates 
that the costs to governments of complying with the mandate 
would be small and would not exceed the threshold established 
in UMRA ($66 million in 2007, adjusted annually for inflation).
    S. 2045 would impose private-sector mandates, as defined in 
UMRA, on manufacturers, retailers, distributors, and importers 
of consumer products subject to CPSC enforcement. Because of 
the large volume of consumer products that would be affected by 
the mandates, CBO expects that the total cost of complying with 
them would exceed the annual threshold established in UMRA for 
private-sector mandates ($131 million in 2007, adjusted 
annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 2045 is shown in the following table. 
The costs of this legislation fall within budget function 550 
(health).

----------------------------------------------------------------------------------------------------------------
                                                            By fiscal year, in millions of dollars--
                                              ------------------------------------------------------------------
                                                 2008     2009     2010     2011     2012   2008-2012  2008-2017
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level..........................        0      123      131       99      109       462       n.a.
Estimated Outlays............................        0      107      129      103      108       447       n.a.

                                               CHANGES IN REVENUES

Estimated Revenues...........................        2        3        4        4        4        17        48
----------------------------------------------------------------------------------------------------------------
Note: n.a. = not applicable.

    Basis of Estimate:

Spending subject to appropriation

    Assuming that the specified amounts would be provided for 
each year, and that spending would follow historical patterns, 
CBO estimates that implementing S. 2045 would increase 
discretionary spending by $447 million over the 2009-2012 
period.
    S. 2045 would amend and reauthorize several consumer 
protection laws, including the Consumer Product Safety Act. It 
would authorize appropriations for CPSC starting with funding 
levels for fiscal year 2009. The bill would authorize separate 
amounts for CPSC's general operating expenses, the Office of 
the Inspector General, capital improvements to the agency's 
research, development, and testing facility, and for research 
into the use of nanotechnology in consumer products.
    The bill would require CPSC to modify and expand 
regulations regarding levels of lead paint in children's toys, 
for safety standards for all-terrain vehicles, and standards 
for portable gasoline containers. The bill also would require 
CPSC to make changes to rules regarding public notification of 
safety standards and recalls, its tracking of potentially 
hazardous products, and its enforcement responsibilities. In 
addition, the bill would direct the commission to employ at 
least 500 full-time workers by October 2013. Currently, CPSC 
employs just over 400 full-time workers.

Revenues

    S. 2045 would increase the maximum civil penalty for 
violations of consumer product safety standards and applicable 
rules under the Consumer Product Safety Act. CBO estimates that 
by raising the maximum penalty, the bill would increase 
revenues by $17 million over the 2008-2012 period and $48 
million over the 2008-2017 period.
    Those safety standards, which are enforced by CPSC, 
currently stipulate that any person who knowingly manufactures 
or sells products that fail to comply with applicable safety 
standards faces civil penalties up to $1.825 million for each 
violation in 2007. The bill would increase the maximum penalty 
to $100 million for each violation.
    Since 2001, civil penalties assessed by CPSC have averaged 
$4.7 million annually. The average penalty collected during 
that time was $525,000, or less than 30 percent of the maximum 
amounts. About 25 percent of the penalties exceeded $1 million.
    Based on an analysis of historical assessments, CBO expects 
that a small number of cases would be directly affected by the 
higher maximum penalty. Specifically, only a few fines per year 
were assessed at more than 50 percent of the maximum amount. 
However, the fines collected over the past several years may 
have been constrained by the current-law limit. CBO expects 
that increasing the cap would change the dynamics of litigating 
and settling large cases and estimates that the average penalty 
for larger cases would eventually double, while the average 
penalty for smaller cases would be about 20 percent higher.
    Estimated impact on state, local, and tribal governments: 
S. 2045 would extend whistleblower protection to employees of 
state and local governments who provide information about 
violations of safety standards enforceable by the CPSC. State 
and local governments would be prohibited from discharging or 
discriminating against those employees and would be subject to 
an order by the Secretary of Labor that could require 
reinstating the employee and providing damages. The requirement 
to comply would be an intergovernmental mandate as defined in 
UMRA. Because compliance with the protections likely would 
involve only adjustments to administrative procedures, CBO 
estimates that the mandate costs would be small and would not 
exceed the threshold established in UMRA ($66 million in 2007, 
adjusted annually for inflation).
    In general, state and local governments would benefit from 
a provision in the bill that would authorize the commission to 
provide them product information. States also would benefit 
from other provisions that would give them broader flexibility 
to implement their own safety standards as well as authority to 
enforce federal safety standards. Any related costs state and 
local governments incur to enforce safety standards or to 
comply with confidentiality agreements tied to information from 
the commission would be incurred voluntarily.
    Estimated impact on the private sector: S. 2045 contains 
several private-sector mandates as defined in UMRA. The bill 
would impose requirements to address the incidence and effects 
of unsafe products, ban the use of lead in certain products, 
and establish new product safety standards. Based on 
information from the CPSC and industry sources, CBO expects 
that the total cost of complying with the mandates would exceed 
the annual threshold established in UMRA for private-sector 
mandates ($131 million in 2007, adjusted annually for 
inflation).

        ADDRESSING THE INCIDENCE AND EFFECTS OF UNSAFE PRODUCTS

    The bill would impose requirements aiming to reduce 
consumers' exposure to unsafe products, including but not 
limited to:
     Requiring that all children's products 
manufactured in and imported into the United States be tested 
by third-party laboratories and certified to meet applicable 
standards;
     Requiring manufacturers of children's products to 
display tracking labels with the source, date, and cohort of 
production on each product and its packaging;
     Requiring manufacturers of durable infant and 
toddler products to include consumer registration forms with 
each product, maintain a record of registered consumers to 
inform them of recalls, and permanently place tracking 
information on each product; and
     Making it illegal to manufacture, distribute, 
import, or sell banned, non-compliant, or recalled products.
    Both CPSC and industry sources expect that these mandates 
could impose substantial costs on the private sector. The costs 
would depend on the specific requirements imposed by CPSC. 
Manufacturers of children's products would be required to have 
their products tested and certified by third-party laboratories 
and include tracking labels on each product and its packaging 
within one year of the date on which the CPSC Reform Act is 
enacted.
    Toy manufacturers, which account for about $37 billion in 
toy sales (including video games) each year, could be most 
affected by these mandates. Though many manufacturers currently 
test products, requirements that differ from current testing 
practices would lead to significant costs to the industry due 
to the volume of toys sold each year and the costs associated 
with testing products. Also, the certification requirement 
would likely impose new costs on all manufacturers of 
children's products since currently manufacturers either self-
certify or do not certify products at all.
    Additionally, the requirement to display tracking labels 
with the source, date, and cohort of production would be a new 
requirement and would consequently impose new costs on all 
manufacturers, though the cost would vary by product. For 
example, according to industry sources, manufacturers would 
have to pay around $5,000 per toy (or other product) for 
products made in molds to have the molds remanufactured to 
include the tracking label. For clothes and stuffed toys, the 
cost to retool would be considerably less.
    The Juvenile Products Manufacturers Association (JPMA), 
which represents makers of products ranging from cribs to car 
seats for children, expects that its members could experience 
as much as a 10 percent increase in costs as a result of the 
testing and certification requirements, including the 
registration requirements for manufacturers of durable infant 
and toddler products. For an industry with about $7 billion in 
sales (excluding diapers), the incremental cost to comply with 
those mandates could be large relative to UMRA's threshold for 
private-sector mandates.
    The costs associated with the provision that would make it 
illegal to manufacture, distribute, import, or sell banned, 
non-compliant, or recalled products would be relatively small. 
Most manufacturers and retailers stop producing or selling 
recalled products as soon as the recall is known. Since most 
recalls are voluntary, however, it is currently legal to sell 
such goods. Businesses in secondary markets--such as ``mom-n-
pop'' shops, discount stores, and Internet Web sites--that sell 
such recalled goods would incur costs.

                   BANNING LEAD IN CONSUMER PRODUCTS

    S. 2045 would ban children's products that have a lead 
content that exceeds 200 parts per million (ppm) in children's 
jewelry and 400 ppm in all other children's products. It also 
would lower the permissible lead content in paint used by 
consumers from 600 ppm to 90 ppm. The bill would allow CPSC to 
temporarily modify the permissible lead levels for electronic 
products, for which the 400 ppm lead requirement may not be 
feasible.
    A considerable number of manufacturers, especially those 
that make children's jewelry and electronic devices, are 
concerned about the feasibility of the lead requirement. 
According to the Fashion Jewelry Trade Association, metal 
jewelry cannot be made with a lead content as low as 200 ppm. 
Though children's jewelry (intended for children 7 and under) 
only comprises around 5 percent of the sales of the fashion 
jewelry industry, manufacturers of jewelry products could still 
experience significant costs, as even plastic jewelry uses 
metal clasps. Manufacturers of complex and electronic toys 
might also experience significant costs as a result of the lead 
requirement, though the costs would depend on future CPSC 
decisions regarding interim requirements on lead content in 
electronic children's products. Ultimately, manufacturers of 
many types of children's products might have to modify 
operations to comply with this mandate.

               ESTABLISHING NEW PRODUCT SAFETY STANDARDS

    Finally, the bill would impose private-sector mandates by 
establishing several consumer product safety rules and 
standards based on voluntary industry standards set by the 
American Society for Testing and Materials (ASTM-
International), the American National Standards Institute 
(ANSI) and the Specialty Vehicle Institute of America (SVIA), 
including standards for:
     Child-resistant closures on portable gasoline 
containers (ASTM F2517-05),
     Toy safety (ASTM-International Standard F963-07), 
and
     All-terrain vehicle safety (ANSI/SVIA-1-2007).
    The bill also would require all automatic garage door 
openers that directly drive the door in the closing direction 
to include an external secondary entrapment protection device 
that does not require contact with a person or object for the 
garage door to reverse its movement. CPSC and industry sources 
expect the cost of compliance with these mandates to be 
relatively small as most manufacturers already comply 
voluntarily.
    Estimate prepared by: Federal Costs: Geoffrey Gerhardt; 
Revenues: Pamela Greene; Impact on State, Local, and Tribal 
Governments: Lisa Ramirez-Branum; Impact on the Private Sector: 
MarDestinee C. Perez.
    Estimate approved by: Keith J. Fontenot, Deputy Assistant 
Director for Health and Human Resources, Budget Analysis 
Division.

                      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

  The regulatory changes to the authority of the CPSC would 
apply to all of the manufacturers, importers and retailers of 
consumer products under the jurisdiction of the agency. 
Currently, there are more than 15,000 types of consumer 
products under the jurisdiction of the CPSC.

                            ECONOMIC IMPACT

  It is anticipated that manufacturers would have to make 
significant design changes, use different materials and improve 
safety protocols to ensure compliance with new mandatory 
consumer product rules and recall requirements issued from the 
CPSC Reform Act. Retailers will have to change protocols in 
regards to recalled product management to be in compliance with 
S. 2045.

                                PRIVACY

  S. 2045 would have no anticipated impact on the privacy of 
individuals.

                               PAPERWORK

  The legislation would increase paperwork requirements for the 
impacted manufacturers, retailers and importers that have to 
work with the CPSC to prove compliance with the amended Acts 
under the authority of the Commission.

                      Section-by-Section Analysis


Section 1. Short Title; Table of Contents.

  The act would be cited as the CPSC Reform Act of 2007.

Section 2. Amendment of Consumer Product Safety Act.

  Unless specified to the contrary, section references in the 
bill are to the CPSA.

Section 3. Reauthorization.

  S. 2045 would authorize funding of the Commission at the 
following levels:
          (1) $80,000,000 for FY 2009;
          (2) $88,500,000 for FY 2010;
          (3) $96,800,000 for FY 2011;
          (4) $106,480,000 for FY 2012;
          (5) $117,128,000 for FY 2013;
          (6) $128,841,000 for FY 2014; and
          (7) $141,725,000 for FY 2015.
  In addition to the general funding delineated in the schedule 
above, the Reform Act would authorize funds to improve the 
Office of the Inspector General for the CPSC at the following 
levels:
          (1) $1,600,000 for FY 2009;
          (2) $1,770,000 for FY 2010;
          (3) $1,936,000 for FY 2011;
          (4) $2,129,600 for FY 2012;
          (5) $2,342,560 for FY 2013;
          (6) $2,576,820 for FY 2014; and
          (7) $2,834,500 for FY 2015.
  The bill also creates separate authorizations for improving 
the CPSC testing laboratories and improving research resources 
for the nanotechnology safety in consumer products. S. 2045 
would authorize an additional $40,000,000 for use in FY 2009 
and 2010 for renovating and improving the CPSC laboratories. 
The $40,000,000 is to be expended over the two-year period. The 
Reform Act would also authorize $1,000,000 for use in FY 2009 
and 2010 for research into the safety impact of nanotechnology 
in consumer products.

Section 4. Personnel.

  Subject to the availability of appropriations, S. 2045 would 
require the CPSC to increase the number of its fulltime 
personnel to at least 500 from its current level of 420 by 
October 1, 2013. The personnel level is a floor, and as 
resources and duties dictate, the CPSC may hire more than 500 
in the prescribed timeframe as needed to fulfill its mission 
and its current and new authority. In addition to the minimum 
requirement for personnel, an additional 50 employees must be 
hired for duty stations at U.S. ports of entry, or for 
deployment to inspect overseas production facilities by October 
1, 2010. Under no circumstances should the 50 employees reduce 
the number of personnel assigned to duties at CPSC headquarters 
or to CPSC regional offices.
  Professional Career Path. S. 2045 would require the CPSC to 
develop and implement a professional career development program 
to encourage the retention and promote the development of 
career personnel.
  Change of Employment Status by Political Appointees. The bill 
prohibits the appointment of a political employee to a civil 
service position within the Commission, unless the appointment 
is authorized by unanimous vote of the Commission or more than 
1 year has elapsed since his or her termination from the CPSC 
political position.
  Personnel in the Immediate Office of Commissioners. S. 2045 
would prohibit the reduction of staff in the office of a 
Commissioner, unless the reduction is authorized by a unanimous 
vote of the Commission.

Section 5. Full Commission Requirement; Interim Quorum.

  The Committee continues to be concerned about the current 
cycle of the Commission losing its quorum as a matter of course 
over the past few years. The instability of this occurrence is 
a waste of resources in that the CPSC is foreclosed from 
fulfilling its duties whenever a Commissioner or a Chairman 
decides to leave the Commission. It is the opinion of the 
Committee that returning the CPSC to its full complement of 
five Commissioners brings stability and a diversity of 
experience that would aid in the execution of the CPSC 
mandates. The Reform Act would repeal the limit on the use of 
appropriated funds for more than three Commissioners and would 
urge the President to nominate members to fill all five 
Commissioner positions.
  Temporary Quorum. In recognition of the current Commission 
make-up, the section also would allow 2 Commissioners of the 
CPSC, if they are not affiliated with the same political party, 
to constitute a quorum for the transaction of business for the 
nine-month period beginning on the date of enactment.

Section 6. Submission of Copy of Certain Documents to Congress.

  S. 2045 would require the CPSC to concurrently submit to 
Congress any budget or legislative recommendations, testimony 
or comments on legislation sent to the President or to the 
Office of Management and Budget. The section further amends 
P.L. 104-66, which eliminated this requirement from the CPSA in 
1995.

Section 7. Public Disclosure of Information.

  The Reform Act would modify section 6(a) of the CPSA to 
provide manufacturers and private labelers 15 days to review 
information for confidentiality prior to disclosure. If the 
CPSC disagrees with the company's confidentiality designation, 
the company can appeal the decision to the CPSC General 
Counsel, who shall act within 30 days. The General Counsel's 
decision may be appealed to the full Commission, which shall 
act within 15 days. The modification takes the appeals process 
out of the Federal courts as is under current law. The new 
appeals procedure is similar to the process at the National 
Highway Traffic Safety Administration and greatly streamlines 
the procedure for issuing a decision.
  S. 2045 would modify section 6(b) of the CPSA, which requires 
the CPSC to submit to manufacturers and private labelers 
information that is to be disclosed to the public before it is 
released. The Commission then must take reasonable steps to 
assure that the information is accurate and reasonably related 
to effectuating the purposes of the Act. Currently, section 
6(b) provides manufacturers and private labelers with the right 
to challenge a CPSC decision to release information in Federal 
court.
  Under the bill, prior to its public disclosure of any 
information obtained under this Act, and to the extent 
practicable, the Commission would be required to notify and 
provide a summary of the information to each manufacturer or 
private labeler of any consumer product intended to be 
released, and provide the manufacturer or private labeler 15 
days to submit comments to the Commission as to the accuracy of 
such information, and to mark documents confidential as 
appropriate. In disclosing any information under this 
subsection, the Commission would be required to disclose any 
comments or other information at the request of the 
manufacturer or private labeler as an addendum. If a 
manufacturer or private labeler disagreed with the Commission's 
decision to disclose information to the public, it would be 
able to appeal that determination to the General Counsel of the 
Commission. A second and final appeal may be made to the full 
Commission. The document in question may not be made public 
during the pendency of either appeal.
  The requirement to disclose manufacturer or private labeler 
addendums would not apply to Commission actions on imminent 
hazards, substantial product hazards, or if the Commission has 
reasonable cause to believe a company has violated one of the 
prohibited acts of the CPSA. The requirement also does not 
apply to information concerning a rulemaking proceeding, an 
adjudicatory proceeding, or other administrative or judicial 
proceeding. The Commission also may not disclose the names or 
addresses of consumers in its release of information to the 
public, unless the consumer consents in writing.

Section 8. Rulemaking.

  S. 2045 would revise the CPSC's rulemaking procedures under 
the CPSA, FHSA, and the FFA to make permissive the current 
requirement that the CPSC issue an advanced notice of proposed 
rulemaking before issuing a notice of proposed rulemaking. The 
section clarifies that rulemaking proceedings under the FHSA 
are governed by the procedures set forth in the FHSA and not 
the Federal Food, Drug, and Cosmetic Act. The section also 
deletes references to the Secretary of Health, Education, and 
Welfare and replaces with references to the CPSC consistent 
with the transfer of functions to the CPSC in 1972 under 
section 30 of the CPSA (P.L. 92-573).

Section 9. Prohibition on Stockpiling Under Other Commission-Enforced 
        Statutes.

  The Reform Act would authorize the Commission to prohibit, by 
rule, a manufacturer from stockpiling a product that is subject 
to a rule under the CPSA or any other law enforced by the CPSC.

Section 10. Third-Party Certification of Children's Products.

  S. 2045 would establish a process that would ensure that 
manufacturers use third party laboratories to test all 
children's products and certify the products' compliance with 
applicable consumer product safety standards. The Reform Act 
would require every manufacturer of a children's product (and 
the private labeler of such product if it bears a private 
label), which is subject to a consumer product safety standard 
under the CPSA, or a rule under this or any other Act enforced 
by the Commission declaring a consumer product a banned 
hazardous substance to: have the product tested by a qualified 
third-party laboratory; certify that such product conforms to 
such consumer product safety standard or is not a banned 
hazardous substance; and specify the applicable consumer 
product safety standard or rule. If an advertisement, label, or 
package contains a reference to a consumer product safety 
standard, a statement with respect to whether the product meets 
all requirements of that standard also would be required.
  Within one year after the date of enactment of this Act, the 
Commission would be required to, by rule: (1) establish 
protocols and standards for acceptance of certification or 
continuing guarantees of compliance by manufacturers; (2) 
establish protocols and standards for verifying that such 
products tested by third-party laboratories comply with the 
applicable standards under this Act or other Acts enforced by 
the Commission; (3) prescribe standards for accreditation of 
third party laboratories, either by the Commission or by one or 
more independent standard-setting organizations to which the 
Commission delegates authority, to engage in certifying 
compliance; (4) establish requirements, or delegate authority 
to one or more independent standard-setting organizations for 
third-party laboratory testing, as the Commission determines is 
necessary to test random samples of products certified under 
this section on an ongoing basis to ensure they meet the 
requirements for certification; (5) establish requirements for 
periodic audits of third-party laboratories by an independent 
standard-setting organization as a condition for accreditation; 
and (6) establish a program by which manufacturers may label 
products as compliant with the certification requirements.
  Interim Procedure. Within 30 days after the date of enactment 
of S. 2045, the Commission would be required to consider 
existing laboratory testing certification procedures 
established by independent standard-setting organizations and 
designate an existing procedure for manufacturers of children's 
products to follow until the Commission issues its final rule.
  Definitions:

          Children's Product.--A product (other than a 
        medication, drug, or food) designed or intended for use 
        by, or care of, a child 7 years of age or younger. In 
        determining whether a product is intended for use by a 
        child 7 years of age or younger, the following factors 
        shall be considered: (a) a statement by a manufacturer 
        about the intended use of such toy or article, 
        including a label on such good, if such statement is 
        reasonable; (b) the context and manner of the 
        advertising, promotion, and marketing associated with 
        the good; (c) whether the good is commonly recognized 
        by consumers as being intended for use by a child 7 
        years of age or younger; and (d) the Age Determination 
        Guideline issued by the CPSC in September 2002 and any 
        subsequent version of such Guideline.
          Third Party Laboratory.--A testing entity that is 
        designated by the Commission or by an independent 
        standard-setting organization to which the Commission 
        delegates the authority to make such a designation, as 
        a testing laboratory that is competent to test products 
        for compliance with applicable safety standards under 
        the CPSA and other Acts enforced by the Commission. 
        Upon request, the Commission would have the authority 
        to certify a laboratory that is owned, managed, 
        controlled, or directed by the manufacturer or private 
        labeler as a third party laboratory, if the Commission: 
        (1) finds that certification of the laboratory would 
        provide equal or greater consumer safety protection 
        than the manufacturer's use of an independent third 
        party laboratory; (2) establishes procedures to ensure 
        that the laboratory is protected from undue influence, 
        including pressure to modify or hide test results, by 
        the manufacturer or private labeler; and (3) the 
        laboratory establishes procedures for confidential 
        reporting of allegations of undue influence to the 
        Commission. The Commission or an independent standard-
        setting organization to which the Commission has 
        delegated such authority, may decertify a third party 
        laboratory if it finds, after notice of investigation, 
        that a manufacturer or private labeler has exerted 
        undue influence on the laboratory.
          Label and Certification.--Not later than one year 
        after the date of enactment of S. 2045, the Commission 
        would be required to prescribe a product certification 
        and labeling rule for children's products as defined in 
        this section.

  Prohibition on Imports of Children's Products Without Third-
Party Testing Certification. S. 2045 also would prohibit the 
importation of any children's product that is not accompanied 
by certification from a third party laboratory as required by 
this section.

Section 11. Tracking Labels for Products for Children.

  S. 2045 would expand existing labeling requirements to 
provide important safety information to consumers, facilitate 
recalls, and limit the scope of recalls to veritable unsafe 
products.
  Internet and Catalogue Advertising Labeling. S. 2045 would 
amend the FHSA to require manufacturers, retailers, 
distributors, private labelers, and licensors for any toy, 
game, balloon, small ball, or marble that requires a warning 
label in stores under current law to provide a similar 
cautionary statement to be displayed in a catalogue or online 
advertisement.
  Tracking Labels. S. 2045 would require manufacturers of 
children's products to place distinguishing marks on the 
product and its packaging, to the extent practicable, that 
would enable the purchaser to ascertain the source, date, and 
cohort (including the batch, run number, or other identifying 
characteristic) of production of the product by reference to 
those marks. To the extent that small toys and other small 
products are manufactured and shipped without individual 
packaging, the Committee recognizes that it may not be 
practical for a label to be printed on each item. The packaging 
of the bulk shipment of those items, however, would be required 
to be labeled so that retailers and vendors would be able to 
easily identify products that are recalled. The CPSC would also 
be authorized to extend this requirement to other products 
through a rulemaking proceeding.

Section 12. Substantial Product Hazard Reporting Requirement.

  S. 2045 would require that every manufacturer, including an 
importer, of a consumer product or other product or substance 
under the jurisdiction of the Commission, and every distributor 
and retailer of such product, who obtains information which 
reasonably supports the conclusion that such product fails to 
comply with any safety-related rule or standard promulgated by 
the Commission, to immediately inform the Commission of such 
failure.

Section 13. Corrective Action Plans.

  The Reform Act would provide the Commission with the 
authority to approve the corrective action plan elected by the 
person recalling the products. If the Commission finds that an 
approved corrective action plan is not effective, or that the 
person is not executing an approved action plan effectively, 
the Commission may order the action plan to be amended. If the 
Commission determines, after notice and the opportunity for 
comment, that a person failed to comply substantially with its 
obligations under an action plan, the Commission would have the 
authority to revoke approval of the action plan and the person 
would be prohibited from distributing the product.

Section 14. Identification of Manufacturer by Importers, Retailers, and 
        Distributors.

  S. 2045 would give the Commission the authority to require 
every importer, retailer, or distributor of a consumer product 
or other product under the Commission's jurisdiction to 
identify the manufacturer of that product by name, address, or 
such other identifying information as the Commission may 
request. Every manufacturer also would be required to identify 
each retailer, or distributor, to which it supplied a given 
consumer product by name, address, or such other identifying 
information as well as the identifying information as to each 
subcontractor involved in the manufacturing of a product upon 
the request of the Commission.

Section 15. Repeated Importation Offenses.

  S. 2045 would authorize the Commission to designate as a 
repeat offender, after notice and an opportunity for a hearing, 
any customs broker found by the Commission to have aided and 
abetted the importation of a consumer product on multiple 
occasions in violation of section 17 of the CPSA. Minor 
violations of the CPSA would not be counted for purposes of 
determining whether a customs broker was a repeat offender. The 
Committee intends that the Commission have the ability to 
penalize customs brokers who actively aid importers in 
circumventing customs processes, entry inspections, or other 
safeguards for the purpose of violating consumer product safety 
laws and regulations. The Commission also would be authorized 
to refer any such repeat offender to U.S. Customs and Border 
Protection with a recommendation that the custom broker's 
import license be revoked in accordance with that agency's 
procedures. The U.S. Customs and Border Protection agency would 
be required to revoke the customs broker license of any customs 
broker in violation of this section.

Section 16. Prohibited Acts.

  Sale of Recalled Products. S. 2045 would make it unlawful for 
any person to sell, offer for sale, manufacture for sale, 
distribute in commerce, or import into the United States any 
consumer product that is not in conformity with an applicable 
consumer product safety standard, is subject to a voluntary 
corrective action taken by the manufacturer of which action the 
CPSC has notified the public of the extent to which the seller 
knew or should have known of the corrective action, or has been 
designated a banned hazardous substance.
  Export of Recalled Products. The Reform Act also would 
authorize the Commission to prohibit a person from exporting 
from the United States for the purpose of sale any product or 
substance regulated by the Commission that the Commission 
determines, after notice to the manufacturer, is not in 
conformity with an applicable product safety standard and does 
not violate applicable safety standards established by the 
importing country; has been designated a banned hazardous 
substance; or is subject to voluntary corrective action taken 
by the manufacturer and would have been subject to a mandatory 
corrective action by the CPSC, except that the Commission may 
permit the export of such product if it meets applicable safety 
standards established by the importing country. S. 2045 would 
make conforming changes to the FHSA and FFA to ensure that the 
Commission's authority to prohibit the export of certain 
recalled products extends to products and substances regulated 
under those acts.
  False Certification of Compliance with Testing Laboratory 
Standard. S. 2045 would make it unlawful for any person to 
sell, offer for sale, distribute in commerce, or import into 
the United States any consumer product bearing a false 
certification mark of compliance with a safety standard 
established by a nationally recognized testing laboratory, if 
such person knew or should have known that the certification 
mark was false.
  Misrepresentation of Information in Investigation. The Reform 
Act would make it unlawful to misrepresent to any officer or 
employee of the Commission the scope of consumer products 
subject to a corrective action or to make a material 
misrepresentation to such an officer or employee in the course 
of an investigation under the CPSA or another Act enforced by 
the Commission.
  Certificates of Compliance with Mandatory Standards. S. 2045 
would make it unlawful to fail to furnish a certificate 
required by any statute enforced by the Commission, or to issue 
a false certificate if a person in the exercise of due care has 
reason to know that the certificate is false or misleading in 
any material respect; or to fail to comply with any other 
labeling rule promulgated under CPSA section 14(c).
  Undue Influence on Third Party Laboratories. S. 2045 would 
make it unlawful to exercise undue influence on third party 
laboratories with respect to the testing, or reporting of the 
results of testing, of any product for compliance with a 
standard under the CPSA or any other Act enforced by the 
Commission.

Section 17. Penalties.

  CPSA Civil Penalties. The civil penalty cap for each 
violation of a prohibited act under the CPSA would increase 
from $8,000 to $250,000. The maximum civil penalty cap for any 
related series of violations would increase from $1,825,000 to 
$100,000,000.
  FHSA Civil Penalties. The civil penalty cap for each 
violation of a prohibited act under the FHSA would increase 
from $8,000 to $250,000. The maximum civil penalty cap for any 
related series of violations would increase from $1,825,000 to 
$100,000,000.
  FFA. The civil penalty cap for each violation of a prohibited 
act under the FFA would increase from $8,000 to $250,000. The 
maximum civil penalty cap for any related series of violations 
would increase from $1,825,000 to $100,000,000.
  This section also would change the start date of inflation 
adjustments for the penalties in the CPSA, the FHSA, and the 
FFA. The maximum penalty amounts authorized in this section 
would be adjusted for inflation not later than December 1, 
2011, and December 1 of each fifth calendar year thereafter.
  Criminal Penalties. S. 2045 would make a knowing violation of 
the CPSA, FFA, or the FHSA punishable by imprisonment for not 
more than 1 year and a knowing and willful violation of the 
CPSA, FFA, or FHSA punishable by imprisonment for not more than 
5 years. Criminal fines would be set in accordance with section 
3571 of title 18, United States Code. This section would strike 
the requirement that the CPSC provide a person with notice of 
noncompliance and wait until the person violates the law again 
before seeking a criminal penalty.
  Civil Penalty Criteria. Within one year after the date of 
enactment of S. 2045, the Commission would be required to 
initiate a rulemaking to establish criteria for the imposition 
of civil penalties for the CPSA and any other Act enforced by 
the Commission. Such rulemaking should take into consideration 
whether the person has repeatedly violated product safety laws, 
the precedential value of prior adjudicated matters, the nature 
of the product defect, the severity of the risk of injury, the 
occurrence or absence of injury, the number of defective 
products distributed, the appropriateness of such penalty in 
relation to the size of the business charged, and other 
circumstances when determining the civil penalty imposed.
  Criminal Penalties to Include Asset Forfeiture. In addition 
to other penalties provided, the section would authorize the 
Commission to seek the forfeiture of assets associated with a 
violation as a criminal penalty under any Act enforced by the 
Commission.

Section 18. Preemption.

  Effect of Rules and Policy Statements on Preemption. The 
section provides that the provisions of sections 25 and 26 of 
the CPSA, section 18 of the FHSA, section 16 of the FFA, and 
section 7 of the PPA, establishing the extent to which those 
acts preempt, limit, or otherwise affect any other Federal, 
State, or local law, any rule, procedure, or regulation, or any 
cause of action under any State or local law, may not be 
expanded in scope, or limited, modified or extended in 
application, by any rule or regulation, referenced in any 
preamble, statement of policy, executive branch statements, or 
other matter associated with the publication of any such rule 
or regulation.
  Clarification of Preemption. The section further provides 
that the provisions of sections 25 and 26 of the CPSA, section 
18 of the FHSA, section 16 of the FFA, and section 7 of the PPA 
would be preemptive of any State or local law, or any cause of 
action under State or local law, only to the extent provided in 
those Acts unless compliance with duties imposed by State law 
would make compliance with the Federal rule or regulations 
promulgated under those Acts impossible.

Section 19. Sharing of Information with Federal, State, Local, and 
        Foreign Law Enforcement Agencies.

  S. 2045 would authorize the Commission to make information 
obtained by the Commission available to any Federal, State, 
local, or foreign law enforcement agency upon the prior 
certification that such material will be maintained in 
confidence and will be used only for official law enforcement 
or consumer protection purposes, provided: (a) the agency has 
set forth a bona fide legal basis for its authority to maintain 
the material in confidence; (b) the materials are to be used 
for purposes of investigating or enforcing violations of 
product safety laws, aiding a CPSC investigation or enforcement 
proceeding, or, with the approval of the Attorney General, 
aiding in investigating an offense covered by a criminal mutual 
legal assistance treaty. The CPSC would not be authorized to 
share information with a foreign government agency that the 
Secretary of State has determined has repeatedly provided 
support for acts of international terrorism. The section also 
would require the CPSC not to disclose confidential information 
provided by foreign governments, except pursuant to a court 
order or Congressional request. The Commission also would have 
the authority to terminate a memorandum of understanding or 
other agreement with another agency if it determines that the 
other agency has not conformed to the Commission's 
confidentiality requirements.
  In this section, the term ``foreign government agency'' would 
be defined as any agency or judicial authority of a foreign 
government, including a foreign state, a political subdivision 
of a foreign state, a multinational organization comprised of 
foreign states, or any multinational organization acting on 
behalf of one of the aforementioned entities that is vested 
with law enforcement or investigative authority in civil, 
criminal, or administrative matters.

Section 20. Bonding.

  The Reform Act provides the Commission the authority in a 
rulemaking proceeding to require that a person that has 
committed multiple significant violations of any rule or act 
enforced by the Commission, or the manufacturer or distributor 
of a category or class of consumer products, or the 
manufacturer or distributor of any product or substance 
regulated under any other Act enforced by the Commission to 
post a bond (or other security acceptable to the Commission) in 
an amount sufficient to cover the costs of an effective recall 
of the product or substance, or, in the case of an imported 
product or substance, to cover the costs of holding the product 
or substance at the port and destroying the product or 
substance - should such action be required by the Commission.

Section 21. Enforcement by State Attorneys General.

  S. 2045 authorizes a State to bring a civil action on behalf 
of its residents in an appropriate State or district court to 
enforce the provisions of the CPSA or any other Act enforced by 
the Commission to obtain penalties and relief provided under 
the applicable act. It is the intent of the Committee that a 
State attorney general that seeks penalties under this section 
would be entitled to retain any penalty awarded. If multiple 
State attorneys general or the Commission participate in an 
action, conferral of an award would be at the discretion of the 
court based on the level of participation of the party, the 
harm experienced by the State, and any other equitable factor. 
The State would be required to serve written notice to the 
Commission of any civil action at least 60 days prior to 
initiating such civil action, if feasible. Upon receiving the 
notice the Commission would be authorized to intervene in the 
civil action, be heard on all matters in the case, and file 
petitions for appeal of a decision.
  In a civil action, the venue would be required to be a 
judicial district in which the manufacturer, distributor, or 
retailer was authorized to do business. If the Commission has 
instituted a civil action or an administrative action for a 
violation of the CPSA or any other Act enforced by the 
Commission, no State attorney general would be authorized to 
bring an action during the pendency of the Commission action 
against any defendant or agency named in the complaint. If the 
attorney general of the State prevails in any civil action, he 
or she would be authorized to recover reasonable costs and 
attorneys' fees from the covered entity.

Section 22. Whistleblower Protections.

  Whistleblower Protection. S. 2045 would make it unlawful for 
a manufacturer, private labeler, distributor, or retailer, or 
any Federal, State, or local government employing agency to 
discharge an employee or otherwise discriminate against an 
employee because the employee, whether at the employee's 
initiative or in the ordinary course of the employee's duties: 
(1) provided, caused to be provided, or is about to provide to 
the employer, the Federal Government, or the attorney general 
of a State information relating to any violation or alleged 
violation of any order, regulation, or consumer product safety 
standard under any other law enforceable by the Commission; (2) 
testified or is about to testify in such a proceeding; (3) 
assisted or participated or is about to assist or participate 
in such a proceeding; or (4) objected to, or refused to 
participate in, any activity the individual believed to be in 
violation of an applicable law or to be a substantial and 
specific danger to public health or safety.
  Employee Award. The section further provides that if the 
Commission or State attorney general proceeds with an action 
against a manufacturer, private labeler, distributor, or 
retailer for a violation of any act enforced by the Commission, 
on the basis of information provided by such an employee, the 
employee would receive at least 15 percent but not more than 25 
percent (as determined by the Commission in consultation with 
the attorney general that brought the action) of any civil 
penalty assessed and collected by the Commission or State 
attorney general for the violation, depending upon the extent 
to which the information provided by the employee substantially 
contributed to the enforcement action. If the Commission's 
action is based primarily on disclosures of specific 
information not provided by the employee, the Commission may 
award such sums as it considers appropriate based on the 
significance of the information or role of the employee, but in 
no case more than 10 percent (as determined by the Commission 
in consultation with the attorney general that brought the 
action) of the civil penalty assessed and collected.
  Employee Recourse and Complaint Procedures. A person who 
believes that he or she has been discharged or otherwise 
discriminated against may, not later than one year after the 
date on which such violation occurs, file a complaint with the 
Secretary of Labor. Upon receipt of such a complaint, the 
Secretary would notify, in writing, the person named in the 
complaint of the allegations, the substance of evidence 
supporting the complaint, and the opportunities to respond that 
will be afforded to such person. Not later than 60 days after 
the date of receipt of a complaint and after affording the 
person named in the complaint an opportunity to submit to the 
Secretary a written response to the complaint and an 
opportunity to meet with a representative of the Secretary to 
present statements from witnesses, the Secretary would be 
required to conduct an investigation and determine whether 
there is reasonable cause to believe that the complaint has 
merit. The Secretary would notify, in writing, the complainant 
and the person alleged to have committed the violation of his 
findings. If the Secretary concludes that he has a reasonable 
cause to believe that a violation has occurred, the Secretary 
would be required to accompany the Secretary's findings with a 
preliminary order providing the relief. Not later than 30 days 
after the date of notification of findings under this 
paragraph, either the person alleged to have committed the 
violation or the complainant may file objections to the 
findings or preliminary order, or both, and request a hearing 
on the record. The filing of such objections shall not operate 
to stay any reinstatement remedy contained in the preliminary 
order. Such hearings would be required to be conducted 
expeditiously. If a hearing is not requested in such 30-day 
period, the preliminary order would be deemed a final order 
that is not subject to judicial review.
  If the complainant does not make a prima facie showing, the 
Secretary would be required to dismiss a complaint filed under 
this subsection and would not be authorized to conduct an 
investigation into employee discrimination. Similarly, no 
investigation or relief would be authorized if the employer 
demonstrates by clear and convincing evidence, that the 
employer would have taken the same unfavorable personnel action 
in the absence of that behavior. The Secretary would be 
authorized to determine a violation occurring if the 
complainant demonstrates that certain actions were a 
contributing factor in the unfavorable personnel action alleged 
in the complaint. Relief would not be ordered unless the 
employer demonstrates by clear and convincing evidence that the 
employer would have taken the same unfavorable personnel action 
in the absence of that behavior.
  Not later than 120 days after the date of conclusion of a 
hearing, the Secretary would be required to issue a final order 
providing the relief or denying the complaint. At any time 
before issuance of a final order, a proceeding may be 
terminated on the basis of a settlement agreement entered into 
by the Secretary, the complainant, and the person alleged to 
have committed the violation.
  If, in response to a complaint, the Secretary determines that 
a violation of a certain subsection has occurred, the Secretary 
would be required to: order the person who committed such 
violation to take affirmative action to abate the violation; 
reinstate the complainant to his or her former position 
together with the compensation (including back pay); restore 
the terms, conditions, and privileges associated with his or 
her employment; and provide compensatory damages to the 
complainant.
  If such an order is issued under this paragraph, the 
Secretary, at the request of the complainant, would be required 
to assess against the person against whom the order is issued a 
sum equal to the aggregate amount of all costs and expenses 
(including attorneys' and expert witness fees) reasonably 
incurred.
  If the Secretary finds that a complaint is frivolous or has 
been brought in bad faith, the Secretary would be authorized to 
award to the prevailing employer a reasonable attorney's fee 
not exceeding $1,000 to be paid by the employee.
  If the Commission has not issued a final decision within 180 
days after the filing of the complaint, or within 10 days after 
receiving a written determination, the complainant may bring an 
action at law or equity for de novo review in the appropriate 
district court of the United States. At the request of either 
party, the case would be tried by the court with a jury. The 
court would have jurisdiction to grant all appropriate relief 
to a whistleblower available by law or equity including 
punitive damages up to $250,000.
  Any person adversely affected or aggrieved by a final order 
would be able to obtain review of the order in the U.S. Court 
of Appeals. The petition for review would be required to be 
filed not later than 60 days after the date of the issuance of 
the final order of the Secretary. The commencement of 
proceeding under this subparagraph would not, unless ordered by 
the court, operate as a stay of the order.
  An order of the Secretary would not be subject to judicial 
review in any criminal or other civil proceeding. Whenever any 
person has failed to comply with an issued order, the Secretary 
would be authorized to file a civil action in the U.S. district 
court for the district in which the violation was found to 
occur, or in the U.S. district court for the District of 
Columbia, to enforce such order. In actions brought under this 
paragraph, the district courts shall have jurisdiction to grant 
all appropriate relief including, but not limited to, 
injunctive relief and compensatory damages.
  A person on whose behalf an order was issued would be 
authorized to commence a civil action against the person to 
whom such order was issued to require compliance with such 
order. The appropriate U.S. district court shall have 
jurisdiction to enforce such order. The court, in issuing any 
final order under this paragraph, would be authorized to award 
costs of litigation (including reasonable attorney and expert 
witness fees) to any party whenever the court determines such 
award is appropriate. Any nondiscretionary duty imposed by this 
section would be enforceable in a mandamus proceeding.
  Whistleblower protections would not apply to an employee who, 
acting without direction from such manufacturer, private 
labeler, distributor, or retailer (or such person's agent), 
deliberately causes a violation of a consumer product safety 
law or regulation.

Section 23. Ban on Children's Products Containing Lead.

  S. 2045 would require that beginning 180 days after the date 
of enactment: (1) any children's product containing lead would 
be treated as a banned hazardous substance under the FHSA; and 
(2) the prohibition would apply without regard to whether the 
lead contained in such children's product is accessible to 
children.
  Trace Amounts of Lead. A children's product would be 
considered to contain lead if: (1) in the case of a children's 
product that is jewelry, any part of the product contains lead 
or lead compounds and the lead content of such part is greater 
than 0.02 percent by weight of the total weight of such part; 
or (2) in the case of a children's product that is not jewelry, 
any part of the product contains lead or lead compounds and the 
lead content of such part is greater than 0.04 percent by 
weight of the total weight of such part. The Commission may 
establish lesser permissible levels. If the Commission 
determines that it is not feasible for certain electronic 
devices, including batteries, to comply with the prohibition, 
the Commission is authorized to issue standards to reduce the 
exposure of and accessibility of lead in such electronic 
devices, and to establish a schedule by which such electronic 
devices shall be in full compliance with the regulations.
  Regulations. The section further requires that, on the day 
after the date of enactment, the Commission commence a 
rulemaking as to whether lower thresholds should be prescribed 
for children's products. It is the intent of the Committee that 
the Commission examine, as part of this rulemaking, the 
potential effects of trace levels of lead on children and to 
mandate the lowest thresholds practicable to protect the health 
of children. If the Commission makes a determination that lower 
threshold levels are warranted, the Commission shall promulgate 
regulations establishing such lower thresholds in lieu of the 
previous thresholds. Pending the establishment of lower 
thresholds, it is the intent of the Committee that the 
statutory thresholds apply.
  Lead Paint Standards. S. 2045 also would direct the 
Commission, within 30 days of enactment, to reduce the 
permissible lead level permitted in consumer use paint from 
0.06 percent to 0.009 percent.

Section 24. Alternative Measures of Lead Content.

  S. 2045 would require the Commission, in cooperation with the 
National Academy for Sciences and the National Institute of 
Standards and Technology, to study the feasibility of 
establishing a measurement standard based on a units-of-mass-
per-area standard that is statistically comparable to the 
parts-per-million measurement standard currently used in 
laboratory analysis.

Section 25. Study of Preventable Injuries and Deaths of Minority 
        Children Related to Certain Consumer Products.

  S. 2045 would require the Commission, within 90 days after 
the date of enactment, to initiate a study to assess 
disparities in the risks and incidence of preventable injuries 
and deaths among children of minority populations, including 
Black, Hispanic, American Indian, Alaskan Native, and Asian/
Pacific Islander children in the United States. Not later than 
one year after the date of enactment of this Act, the 
Commission would be required to report its findings to 
Congress. There would be $500,000 authorized to the Commission 
for carrying out this section for FY2008.
  The study would examine the racial disparities of the rates 
of preventable injuries and deaths related to suffocation, 
poisoning, and drowning including those associated with the use 
of cribs, mattresses and bedding materials, swimming pools and 
spas, and toys and other products intended for use by children.

Section 26. Cost-Benefit Analysis Under the Poison Prevention Packaging 
        Act of 1970.

  This section would clarify that nothing in the PPA requires 
the Commission to prepare a comparison of the costs that would 
be incurred in complying with such standard with the benefits 
of such standard.

Section 27. Inspector General Reports.

  S. 2045 would require the Inspector General of the Commission 
to conduct reviews and audits of implementation of the Reform 
Act and report on those findings in an annual report to 
Congress. The Inspector also would be required to conduct a 
review and report on complaints from employees of the 
Commission about violations of the CPSA and other Acts enforced 
by the Commission and leaks and unlawful disclosures of 
information by employees of the Commission to persons not 
authorized to receive such information.

Section 28. Public Interest Website Links.

  S. 2045 would require that the Commission, not later than 30 
days after the date of enactment, establish and maintain a 
direct link on the homepage of its Internet website to the 
Internet website of the Office of Inspector General of the 
Commission and a mechanism on the homepage of the Office of 
Inspector General's Internet website by which individuals may 
anonymously report cases of waste, fraud, or abuse with respect 
to the Commission.

Section 29. Child-Resistant Portable Gasoline Containers.

  The Reform Act would establish, as a consumer product safety 
rule issued by the Commission, that each portable gasoline 
container for sale in the United States conform to the child 
resistance requirements as specified in the ASTM F2517-05 
standard and its successors unless the Commission determines 
otherwise. The rule established in this section would apply to 
each portable gasoline container manufactured on or after the 
date that is 6 months after the date of enactment of the Reform 
Act.
  Not later than 2 years after the date of enactment of this 
Act, the Commission would be required to submit to Congress a 
report on the degree of industry compliance, any enforcement 
actions brought by the Commission, and incidents involving 
children interacting with portable gasoline containers.

Section 30. Toy Safety Standard.

  Beginning 60 days after the date of enactment of the Act, S. 
2045 would establish the ASTM 963-07 standard for toy safety as 
a consumer product safety rule issued by the Commission. If 
ASTM International proposes to revise the toy safety standard, 
it would be required to notify the Commission of the proposed 
revision and the proposed revision would be incorporated in the 
consumer product safety rule, unless the Commission determines 
that the revised standard would not improve the safety of the 
consumer product covered. If the Commission so notifies ASTM-
International with respect to a proposed revision, the existing 
standard would continue to be considered a consumer product 
safety rule.

Section 31. All-Terrain Vehicle Safety Standard.

  Within 90 days after the date of enactment, the Commission 
would be required to publish in the Federal Register as a 
consumer product safety standard the Specialty Vehicle 
Institute of America, ANSI/SVIA-1-2007. The standard would take 
effect 150 days after it is published. If ANSI/SVIA-1-2007 is 
revised, the Commission would be required to conduct a 
rulemaking, within 180 days, to amend the product safety 
standard for ATVs to include any such provision that the 
Commission determines is reasonably related to the safe 
performance of ATVs. The Commission also would have the 
authority to include any additional provisions that the 
Commission determines is reasonably necessary to reduce an 
unreasonable risk of injury associated with ATVs.
  After the standard takes effect, it would be unlawful for any 
manufacturer or distributor to import into or distribute in 
commerce any newly assembled or unassembled ATV unless the 
vehicle complies with each applicable provision of the standard 
and is subject to or complying with an applicable ATV action 
plan filed with the Commission. Failure to comply with any ATV 
standard would be deemed a failure to comply with a consumer 
product safety rule and would be subject to all of the 
penalties and remedies available under the CPSA.
  The section also would ban the import and distribution of 3-
wheeled ATVs until a mandatory consumer product safety rule 
with respect to such vehicles is in effect.
  Finally, the section requires that the Commission issue a 
final rule in its proceeding entitled Standards for All-Terrain 
Vehicles and Ban of Three-Wheeled All-Terrain Vehicles. In the 
final rule, the Commission would have the authority to 
incorporate weight, the maximum speed of the vehicle, velocity, 
age and height of children into its analysis.
  The GAO would be required to conduct a study of the utility, 
recreational, and other benefits of ATVs, and the costs 
associated with ATV-related accidents and injuries.

Section 32. Garage Door Opener Standard.

  The Reform Act would require that all automatic garage door 
openers that directly drive the door in the closing direction 
that are manufactured more than 6 months after the date of 
enactment include an external secondary entrapment protection 
device that does not require contact with the person or object 
for the door to reverse.

Section 33. Reducing Deaths and Injuries from Carbon Monoxide 
        Poisoning.

  S. 2045 would require the Commission to issue a final rule in 
its proceeding entitled Portable Generators for which the 
Commission issued an advance notice of proposed rulemaking on 
December 12, 2006, no later than 18 months after the date of 
enactment of this Act. No later than 120 days after the date of 
enactment of this Act, the Commission would be required to 
submit a report that reviews the effectiveness of its labeling 
requirements for its charcoal briquettes during the windstorm 
that struck the Pacific Northwest on December 14, 2006, 
identifies any specific challenges faced by non-English 
speaking populations with use of the current standards, and 
contains recommendations for improving the labels on charcoal 
briquettes.

Section 34. Completion of the Cigarette Lighter Rulemaking.

  S. 2045 would require the Commission to issue a final rule 
mandating general safety standards for cigarette lighters in 
its proceeding entitled Safety Standard for Cigarette Lighters 
for which the Commission issued an advance notice of proposed 
rulemaking on April 11, 2005, no later than 24 months after the 
date of enactment of this Act.

Section 35. Consumer Product Registration Forms.

  No later than one year after the date of enactment, S. 2045 
would require the Commission to promulgate consumer product 
safety rules that require manufacturers of durable infant or 
toddlers' products to provide consumers with postage-paid 
registration forms. Manufacturers would be required to maintain 
a record of the names, addresses, e-mail addresses, and other 
contact information of consumers who register their ownership 
of such products in order to improve the effectiveness of 
campaigns to recall such products and to place permanently the 
manufacturer name, contact information, model name and number, 
and the date of manufacture, on each durable infant or toddler 
product.
  The registration forms would be required to provide space 
sufficiently large to permit easy, legible recording of the 
following information: the consumer's name, the consumer's 
telephone number, the consumer's postal address, the consumer's 
e-mail address, the manufacturer's name, the model name and 
number for the product, the date of manufacture of the product, 
a message that explains the purpose of the registration and is 
designed to encourage consumers to complete the registration, a 
statement that information provided by the consumer would not 
be used for any other purpose other than to facilitate a recall 
of or a safety alert regarding that product, and a message that 
explains the option to register via the Internet. Such form 
would be required to be attached to the surface of the product 
so that, as a practical matter, the consumer will notice and 
handle the form after purchasing the product. The Commission 
would have the authority to prescribe the exact text and format 
of such registration forms.
  Manufacturers would be required to maintain the records for a 
period of not less than 6 years after the date of manufacture 
of the product concerned. It would be unlawful for a 
manufacturer to disseminate to any other party the information 
collected by the manufacturer for any purpose other than 
notification to the consumer concerned in the event of a 
product recall or safety alert. Nothing in this section 
requires a manufacturer to collect, retain, or use any 
information unless it is provided by the consumer.
  Not later than four years after the date of enactment, the 
Commission would be required to conduct a study on the 
effectiveness of the consumer product registration forms in 
facilitating product recalls and submit to Congress a report on 
its findings.

                        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):

                      CONSUMER PRODUCT SAFETY ACT


                product safety information and research


                            [15 U.S.C. 2054]

  Sec. 5. (a) The Commission shall--
          (1) maintain an Injury Information Clearinghouse to 
        collect, investigate, analyze, and disseminate injury 
        data, and information, relating to the causes and 
        prevention of death, injury, and illness associated 
        with consumer products;
          (2) conduct such continuing studies and 
        investigations of deaths, injuries, diseases, other 
        health impairments, and economic losses resulting from 
        accidents involving consumer products as it deems 
        necessary;
          (3) following publication of [an advance notice of 
        proposed rulemaking or] a notice of proposed rulemaking 
        for a product safety rule under any rulemaking 
        authority administered by the Commission, assist public 
        and private organizations or groups of manufacturers, 
        administratively and technically, in the development of 
        safety standards addressing the risk of injury 
        identified in such notice; and
          (4) to the extent practicable and appropriate (taking 
        into account the resources and priorities of the 
        Commission), assist public and private organizations or 
        groups of manufacturers, administratively and 
        technically, in the development or product safety 
        standards and test methods.
  (b) The Commission may--
          (1) conduct research, studies, and investigations on 
        the safety of consumer products and on improving the 
        safety of such products;
          (2) test consumer products and develop product safety 
        test methods and testing devices; and
          (3) offer training in product safety investigation 
        and test methods.
  (c) In carrying out its functions under this section, the 
Commission may make grants or enter into contracts for the 
conduct of such functions with any person (including a 
governmental entity).
  (d) Whenever the Federal contribution for any information, 
research, or development activity authorized by this Act is 
more than minimal, the Commission shall include in any 
contract, grant, or other arrangement for such activity, 
provisions effective to insure that the rights to all 
information, uses, processes, patents, and other developments 
resulting from that activity will be made available to the 
public without charge on a nonexclusive basis. Nothing in this 
subsection shall be construed to deprive any person of any 
right which he may have had, prior to entering into any 
arrangement referred to in this subsection, to any patent, 
patent application, or invention.

                    PUBLIC DISCLOSURE OF INFORMATION

                            [15 U.S.C. 2055]

  Sec. 6. (a)(1) Nothing contained in this Act shall be 
construed to require the release of any information described 
by subsection (b) of section 552 of title 5, United States 
Code, or which is otherwise protected by law from disclosure to 
the public.
  (2) All information reported to or otherwise obtained by the 
Commission or its representative under this Act which 
information contains or relates to a trade secret or other 
matter referred to in section 1905 of title 18, United States 
Code, or subject to section 552(b)(4) of title 5, United States 
Code, shall be considered confidential and shall not be 
disclosed.
  (3) The Commission shall, prior to the disclosure of any 
information which will permit the public to ascertain readily 
the identity of a manufacturer or private labeler of a consumer 
product, offer such manufacturer or private labeler an 
opportunity to mark such information as confidential and 
therefore barred from disclosure under paragraph (2). A 
manufacturer or private labeler shall submit any such mark 
within 15 calendar days after the date on which it receives the 
Commission's offer.
  (4) All information that a manufacturer or private labeler 
has marked to be confidential and barred from disclosure under 
paragraph (2), either at the time of submission or pursuant to 
paragraph (3), shall not be disclosed, except in accordance 
with the procedures established in paragraphs (5) and (6).
  (5) If the Commission determines that a document marked as 
confidential by a manufacturer or private labeler to be barred 
from disclosure under paragraph (2) may be disclosed because it 
is not confidential information as provided in paragraph (2), 
the Commission shall notify such person in writing that the 
Commission intends to disclose such document at a date not less 
than 10 days after the date of receipt of notification.
  [(6) Any person receiving such notification may, if he 
believes such disclosure is barred by paragraph (2), before the 
date set for release of the document, bring an action in the 
district court of the United States in the district in which 
the complainant resides, or has his principal place of 
business, or in which the documents are located, or in the 
United States District Court for the District of Columbia to 
restrain disclosure of the document. Any person receiving such 
notification may file with the appropriate district court or 
court of appeals of the United States, as appropriate, an 
application for a stay of disclosure. The documents shall not 
be disclosed until the court has ruled on the application for a 
stay.]
  (6) If a manufacturer or private labeler receives a 
notification from the Commission under paragraph (5) of the 
Commission's intent to disclose a document marked as 
confidential by that manufacturer or private labeler, it may 
appeal the determination of the Commission under paragraph (5) 
with respect to that document. The appeal shall be made in 
writing to the general counsel of the Commission before the 
date set for release of the document and set forth the reason 
the manufacturer or private labeler believes disclosure of the 
document is barred by paragraph (2). The general counsel shall 
act on the appeal within 30 days after receiving it. If the 
general counsel determines that disclosure of the document is 
not barred by paragraph (2), the manufacturer or private 
labeler may appeal the determination of the general counsel to 
the full Commission, which shall decide within 15 days after 
receiving it whether the determination of the general counsel 
is supported by the law and the evidence. The document may not 
be disclosed during the pendency of an appeal under this 
paragraph.
  (7) Nothing in this Act shall authorize the withholding of 
information by the Commission or any officer or employee under 
its control from the duly authorized committees or 
subcommittees of the Congress, and the provisions of paragraphs 
(2) through (6) shall not apply to such disclosures, except 
that the Commission shall immediately notify the manufacturer 
or private labeler of any such request for information 
designated as confidential by the manufacturer or private 
labeler.
  (8) The provisions of paragraphs (2) through (6) shall not 
prohibit the disclosure of information to other officers, 
employees, or representatives of the Commission (including 
contractors) concerned with carrying out this Act or when 
relevant in any administrative proceeding under this Act or in 
judicial proceedings to which the Commission is a party. Any 
disclosure of relevant information--
          (A) in Commission administrative proceedings or in 
        judicial proceedings to which the Commission is a 
        party, or
          (B) to representatives of the Commission (including 
        contractors),
shall be governed by the rules of the Commission (including in 
camera review rules for confidential material) for such 
proceedings or for disclosures to such representatives or by 
court rules or orders, except that the rules of the Commission 
shall not be amended in a manner inconsistent with the purposes 
of this section.
  [(b)(1) Except as provided by paragraph (4) of this 
subsection, not less than 30 days prior to its public 
disclosure of any information obtained under this Act, or to be 
disclosed to the public in connection therewith (unless the 
Commission finds that the public health and safety requires a 
lesser period of notice and publishes such a finding in the 
Federal Register), the Commission shall, to the extent 
practicable, notify and provide a summary of the information 
to, each manufacturer or private labeler of any consumer 
product to which such information pertains, if the manner in 
which such consumer product is to be designated or described in 
such information will permit the public to ascertain readily 
the identity of such manufacturer or private labeler, and shall 
provide such manufacturer or private labeler with a reasonable 
opportunity to submit comments to the Commission in regard to 
such information. The Commission shall take reasonable steps to 
assure, prior to its public disclosure thereof, that 
information from which the identity of such manufacturer or 
private labeler may be readily ascertained is accurate, and 
that such disclosure is fair in the circumstances and 
reasonably related to effectuating the purposes of this Act. In 
disclosing any information under this subsection, the 
Commission may, and upon the request of the manufacturer or 
private labeler shall, include with the disclosure any comments 
or other information or a summary thereof submitted by such 
manufacturer or private labeler to the extent permitted by and 
subject to the requirements of this section.
  [(2) If the Commission determines that a document claimed to 
be inaccurate by a manufacturer or private labeler under 
paragraph (1) should be disclosed because the Commission 
believes it has complied with paragraph (1), the Commission 
shall notify the manufacturer or private labeler that the 
Commission intends to disclose such document at a date not less 
than 10 days after the date of the receipt of notification. The 
Commission may provide a lesser period of notice of intent to 
disclose if the Commission finds that the public health and 
safety requires a lesser period of notice and publishes such 
finding in the Federal Register.
  [(3) Prior to the date set for release of the document, the 
manufacturer or private labeler receiving the notice described 
in paragraph (2) may bring an action in the district court of 
the United States in the district in which the complainant 
resides, or has his principal place of business, or in which 
the documents are located or in the United States District 
Court for the District of Columbia to enjoin disclosure of the 
document. The district court may enjoin such disclosure if the 
Commission has failed to take the reasonable steps prescribed 
in paragraph (1).
  [(4) Paragraphs (1) through (3) of this subsection shall not 
apply to the public disclosure of (A) information about any 
consumer product with respect to which product the Commission 
has filed an action under section 12 (relating to imminently 
hazardous products), or which the Commission has reasonable 
cause to believe is in violation of section 19 (relating to 
prohibited acts); or (B) information in the course of or 
concerning a rulemaking proceeding (which shall commence upon 
the publication of an advance notice of proposed rulemaking or 
a notice of proposed rulemaking), an adjudicatory proceeding 
(which shall commence upon the issuance of a complaint) or 
other administrative or judicial proceeding under this Act.
  [(5) In addition to the requirements of paragraph (1), the 
Commission shall not disclose to the public information 
submitted pursuant to section 15(b) respecting a consumer 
product unless--
          [(A) the Commission has issued a complaint under 
        section 15 (c) or (d) alleging that such product 
        presents a substantial product hazard;
          [(B) in lieu of proceeding against such product under 
        section 15 (c) or (d), the Commission has accepted in 
        writing a remedial settlement agreement dealing with 
        such product; or
          [(C) the person who submitted the information under 
        section 15(b) agrees to its public disclosure.
The provisions of this paragraph shall not apply to the public 
disclosure of information with respect to a consumer product 
which is the subject of an action brought under section 12, or 
which the Commission has reasonable cause to believe is in 
violation of section 19(a), or information in the course of or 
concerning a judicial proceeding.
  [(6) Where the Commission initiates the public disclosure of 
information that reflects on the safety of a consumer product 
or class of consumer products, whether or not such information 
would enable the public to ascertain readily the identity of a 
manufacturer or private labeler, the Commission shall establish 
procedures designed to ensure that such information is accurate 
and not misleading.
  [(7) If the Commission finds that, in the administration of 
this Act, it has made public disclosure of inaccurate or 
misleading information which reflects adversely upon the safety 
of any consumer product or class of consumer products, or the 
practices of any manufacturer, private labeler, distributor, or 
retailer of consumer products, it shall, in a manner equivalent 
to that in which such disclosure was made, take reasonable 
steps to publish a retraction of such inaccurate or misleading 
information.
  [(8) If, after the commencement of a rulemaking or the 
initiation of an adjudicatory proceeding, the Commission 
decides to terminate the proceeding before taking final action, 
the Commission shall, in a manner equivalent to that in which 
such commencement or initiation was publicized, take reasonable 
steps to make known the decision to terminate.]
  (b)(1) Except as provided by paragraph (3) of this 
subsection, prior to its public disclosure of any information 
obtained under this Act, or to be disclosed to the public in 
connection therewith (unless the Commission finds that the 
public health and safety requires otherwise), the Commission 
shall, to the extent practicable, notify and provide a summary 
of the information to each manufacturer or private labeler of 
any consumer product to which such information pertains, if the 
manner in which such consumer product is to be designated or 
described in such information will permit the public to 
ascertain readily the identity of such manufacturer or private 
labeler, and shall provide such manufacturer or private labeler 
not less than 15 days to submit comments to the Commission as 
to the accuracy of such information.
  (2) In disclosing any information under this subsection, the 
Commission may, and upon the request of the manufacturer or 
private labeler shall, include with the disclosure any comments 
or other information or a summary thereof submitted under 
paragraph (1) by such manufacturer or private labeler as an 
addendum.
  (3) Paragraphs (1) and (2) of this subsection do not apply to 
the public disclosure of--
          (A) information about any consumer product--
                  (i) with respect to which the Commission has 
                filed an action under section 12;
                  (ii) with respect to which the Commission has 
                issued a complaint under section 15(c) or (d) 
                alleging that such product presents a 
                substantial product hazard; or
                  (iii) which the Commission has reasonable 
                cause to believe is in violation of any 
                regulation promulgated by the Commission or any 
                Act enforced by the Commission, or where the 
                Commission determines that the public health or 
                safety requires immediate disclosure or a 
                substantial product hazard exists;
          (B) information in the course of, or concerning, a 
        rulemaking proceeding (which shall commence upon the 
        publication of an advance notice of proposed rulemaking 
        or a notice of proposed rulemaking), an adjudicatory 
        proceeding (which shall commence upon the issuance of a 
        complaint), or other administrative or judicial 
        proceeding under this Act.
  (4) If, after the commencement of a rulemaking or the 
initiation of an adjudicatory proceeding, the Commission 
decides to terminate the proceeding before taking final action, 
the Commission shall, in a manner equivalent to that in which 
such commencement or initiation was publicized, take reasonable 
steps to make known the decision to terminate.
  (5) The Commission may not disclose the names or addresses of 
consumers pursuant to its authority under this section unless 
the consumer consents in writing to the disclosure.
  (c) The Commission shall communicate to each manufacturer of 
a consumer product, insofar as may be practicable, information 
as to any significant risk of injury associated with such 
product.
  (d)(1) For purposes of this section, the term ``Act'' means 
the Consumer Product Safety Act, the Flammable Fabrics Act, the 
Poison Prevention Packaging Act, and the Federal Hazardous 
Substances Act.
  (2) The provisions of this section shall apply whenever 
information is to be disclosed by the Commission, any member of 
the Commission, or any employee, agent, or representative of 
the Commission in an official capacity.
  (e)(1) Notwithstanding the provisions of section 552 of title 
5, United States Code, subsection (a)(7) of this section, or of 
any other law, except as provided in paragraphs (2), (3), and 
(4), no member of the Commission, no officer or employee of the 
Commission, and no officer or employee of the Department of 
Justice may--
          (A) publicly disclose information furnished under 
        subsection (c)(1) or (c)(2)(A) of section 37;
          (B) use such information for any purpose other than 
        to carry out the Commission's responsibilities; or
          (C) permit anyone (other than the members, officers, 
        and employees of the Commission or officers or 
        employees of the Department of Justice who require such 
        information for an action filed on behalf of the 
        Commission) to examine such information.
  (2) Any report furnished under subsection (c)(1) or (c)(2)(A) 
of section 37 shall be immune from legal process and shall not 
be subject to subpoena or other discovery in any civil action 
in a State or Federal court or in any administrative 
proceeding, except in an action against such manufacturer under 
section 20, 21, or 22 for failure to furnish information 
required by section 37.
  (3) The Commission may, upon written request, furnish to any 
manufacturer or to the authorized agent of such manufacturer 
authenticated copies of reports furnished by or on behalf of 
such manufacturer in accordance with section 37, upon payment 
of the actual or estimated cost of searching the records and 
furnishing such copies.
  (4) Upon written request of the Chairman or Ranking Minority 
Member of the Committee on Commerce, Science, and 
Transportation of the Senate or the Committee on Energy and 
Commerce of the House of Representatives or any subcommittee of 
such committee, the Commission shall provide to the Chairman or 
Ranking Minority Member any information furnished to the 
Commission under section 37 for purposes that are related to 
the jurisdiction of such committee or subcommittee.
  (5) Any officer or employee of the Commission or other 
officer or employee of the Federal Government who receives 
information provided under section 37, who willfully violates 
the requirements of this subsection shall be subject to 
dismissal or other appropriate disciplinary action consistent 
with procedures and requirements established by the Office of 
Personnel Management.

              PROCEDURE FOR CONSUMER PRODUCT SAFETY RULES

                            [15 U.S.C. 2058]

  Sec. 9. (a) A proceeding for the development of a consumer 
product safety rule [shall be commenced] may be commenced by 
the publication in the Federal Register of an advance notice of 
proposed rulemaking which shall--
          (1) identify the product and the nature of the risk 
        of injury associated with the product;
          (2) include a summary of each of the regulatory 
        alternatives under consideration by the Commission 
        (including voluntary consumer product safety 
        standards);
          (3) include information with respect to any existing 
        standard known to the Commission which may be relevant 
        to the proceedings, together with a summary of the 
        reasons why the Commission believes preliminarily that 
        such standard does not eliminate or adequately reduce 
        the risk of injury identified in paragraph (1);
          (4) invite interested persons to submit to the 
        Commission, within such period as the Commission shall 
        specify in the notice (which period shall not be less 
        than 30 days or more than 60 days after the date of 
        publication of the notice), comments with respect to 
        the risk of injury identified by the Commission, the 
        regulatory alternatives being considered, and other 
        possible alternatives for addressing the risk;
          (5) invite any person (other than the Commission) to 
        submit to the Commission, within such period as the 
        Commission shall specify in the notice (which period 
        shall not be less than 30 days after the date of 
        publication of the notice), an existing standard or a 
        portion of a standard as a proposed consumer product 
        safety standard; and
          (6) invite any person (other than the Commission) to 
        submit to the Commission, within such period as the 
        Commission shall specify in the notice (which period 
        shall not be less than 30 days after the date of 
        publication of the notice), a statement of intention to 
        modify or develop a voluntary consumer product safety 
        standard to address the risk of injury identified in 
        paragraph (1) together with a description of a plan to 
        modify or develop the standard.
The Commission shall transmit such notice within 10 calendar 
days to the Committee on Commerce, Science, and Transportation 
of the Senate and the Committee on Energy and Commerce of the 
House of Representatives.
  (b)(1) If the Commission determines that any standard 
submitted to it in response to an invitation in a notice 
published under subsection (a)(5) if promulgated (in whole, in 
part, or in combination with any other standard submitted to 
the Commission or any part of such a standard) as a consumer 
product safety standard, would eliminate or adequately reduce 
the risk of the injury identified [in the notice] in a notice 
under subsection (a)(1), the Commission may publish such 
standard, in whole, in part, or in such combination and with 
nonmaterial modifications, as a proposed consumer product 
safety rule.
  (2) If the Commission determines that--
          (A) compliance with any standard submitted to it in 
        response to an invitation in a notice published under 
        subsection (a)(6) is likely to result in the 
        elimination or adequate reduction of the risk of injury 
        identified in the notice, and
          (B) it is likely that there will be substantial 
        compliance with such standard,
the Commission shall terminate any proceeding to promulgate a 
consumer product safety rule respecting such risk of injury and 
shall publish in the Federal Register a notice which includes 
the determination of the Commission and which notifies the 
public that the Commission will rely on the voluntary standard 
to eliminate or reduce the risk of injury, except that the 
Commission shall terminate any such proceeding and rely on a 
voluntary standard only if such voluntary standard is in 
existence. For purposes of this section, a voluntary standard 
shall be considered to be in existence when it is finally 
approved by the organization or other person which developed 
such standard, irrespective of the effective date of the 
standard. Before relying upon any voluntary consumer product 
safety standard, the Commission shall afford interested persons 
(including manufacturers, consumers, and consumer 
organizations) a reasonable opportunity to submit written 
comments regarding such standard. The Commission shall consider 
such comments in making any determination regarding reliance on 
the involved voluntary standard under this subsection.
  (c) No consumer product safety rule may be proposed by the 
Commission [unless, not less than 60 days after publication of 
the notice required in subsection (a), the] unless the 
Commission publishes in the Federal Register the text of the 
proposed rule, including any alternatives, which the Commission 
proposes to promulgate, together with a preliminary regulatory 
analysis containing--
          (1) a preliminary description of the potential 
        benefits and potential costs of the proposed rule, 
        including any benefits or costs that cannot be 
        quantified in monetary terms, and an identification of 
        those likely to receive the benefits and bear the 
        costs;
          (2) a discussion of the reasons any standard or 
        portion of a standard submitted to the Commission under 
        subsection (a)(5) was not published by the Commission 
        as the proposed rule or part of the proposed rule;
          (3) a discussion of the reasons for the Commission's 
        preliminary determination that efforts proposed under 
        subsection (a)(6) and assisted by the Commission as 
        required by section 5(a)(3) would not, within a 
        reasonable period of time, be likely to result in the 
        development of a voluntary consumer product safety 
        standard that would eliminate or adequately reduce the 
        risk of injury addressed by the proposed rule; and
          (4) a description of any reasonable alternatives to 
        the proposed rule, together with a summary description 
        of their potential costs and benefits, and a brief 
        explanation of why such alternatives should not be 
        published as a proposed rule.
The Commission shall transmit such notice within 10 calendar 
days to the Committee on Commerce, Science, and Transportation 
of the Senate and the Committee on Energy and Commerce of the 
House of Representatives. Any proposed consumer product safety 
rule shall be issued within twelve months after the date of 
publication of [an advance notice of proposed rulemaking under 
subsection (a) relating to the product involved,] the notice 
unless the Commission determines that such proposed rule is not 
reasonably necessary to eliminate or reduce the risk of injury 
associated with the product or is not in the public interest. 
The Commission may extend the twelve-month period for good 
cause. If the Commission extends such period, it shall 
immediately transmit notice of such extension to the Committee 
on Commerce, Science, and Transportation of the Senate and the 
Committee on Energy and Commerce of the House of 
Representatives. Such notice shall include an explanation of 
the reasons for such extension, together with an estimate of 
the date by which the Commission anticipates such rulemaking 
will be completed. The Commission shall publish notice of such 
extension and the information submitted to the Congress in the 
Federal Register.
  (d)(1) Within 60 days after the publication under subsection 
(c) of a proposed consumer product safety rule respecting a 
risk of injury associated with a consumer product, the 
Commission shall--
          (A) promulgate a consumer product safety rule 
        respecting the risk of injury associated with such 
        product, if it makes the findings required under 
        subsection (f), or
          (B) withdraw the applicable notice of proposed 
        rulemaking if it determines that such rule is not (i) 
        reasonably necessary to eliminate or reduce an 
        unreasonable risk of injury associated with the 
        product, or (ii) in the public interest;
except that the Commission may extend such 60-day period for 
good cause shown (if it publishes its reasons therefor in the 
Federal Register).
  (2) Consumer product safety rules shall be promulgated in 
accordance with section 553 of title 5, United States Code, 
except that the Commission shall give interested persons an 
opportunity for the oral presentation of data, views, or 
arguments, in addition to an opportunity to make written 
submissions. A transcript shall be kept of any oral 
presentation.
  (e) A consumer product safety rule shall express in the rule 
itself the risk of injury which the standard is designed to 
eliminate or reduce. In promulgating such a rule the Commission 
shall consider relevant available product data including the 
results of research, development, testing, and investigation 
activities conducted generally and pursuant to this Act. In the 
promulgation of such a rule the Commission shall also consider 
and take into account the special needs of elderly and 
handicapped persons to determine the extent to which such 
persons may be adversely affected by such rule.
  (f)(1) Prior to promulgating a consumer product safety rule, 
the Commission shall consider, and shall make appropriate 
findings for inclusion in such rule with respect to--
          (A) the degree and nature of the risk of injury the 
        rule is designed to eliminate or reduce;
          (B) the approximate number of consumer products, or 
        types or classes thereof, subject to such rule;
          (C) the need of the public for the consumer products 
        subject to such rule, and the probable effect of such 
        rule upon the utility, cost, or availability of such 
        products to meet such need; and
          (D) any means of achieving the objective of the order 
        while minimizing adverse effects on competition or 
        disruption or dislocation of manufacturing and other 
        commercial practices consistent with the public health 
        and safety.
  (2) The Commission shall not promulgate a consumer product 
safety rule unless it has prepared, on the basis of the 
findings of the Commission under paragraph (1) and on other 
information before the Commission, a final regulatory analysis 
of the rule containing the following information:
          (A) A description of the potential benefits and 
        potential costs of the rule, including costs and 
        benefits that cannot be quantified in monetary terms, 
        and the identification of those likely to receive the 
        benefits and bear the costs.
          (B) A description of any alternatives to the final 
        rule which were considered by the Commission, together 
        with a summary description of their potential benefits 
        and costs and a brief explanation of the reasons why 
        these alternatives were not chosen.
          (C) A summary of any significant issues raised by the 
        comments submitted during the public comment period in 
        response to the preliminary regulatory analysis, and a 
        summary of the assessment by the Commission of such 
        issues.
The Commission shall publish its final regulatory analysis with 
the rule.
  (3) The Commission shall not promulgate a consumer product 
safety rule unless it finds (and includes such finding in the 
rule)--
          (A) that the rule (including its effective date) is 
        reasonably necessary to eliminate or reduce an 
        unreasonable risk of injury associated with such 
        product;
          (B) that the promulgation of the rule is in the 
        public interest;
          (C) in the case of a rule declaring the product a 
        banned hazardous product, that no feasible consumer 
        product safety standard under this Act would adequately 
        protect the public from the unreasonable risk of injury 
        associated with such product;
          (D) in the case of a rule which relates to a risk of 
        injury with respect to which persons who would be 
        subject to such rule have adopted and implemented a 
        voluntary consumer product safety standard, that--
                  (i) compliance with such voluntary consumer 
                product safety standard is not likely to result 
                in the elimination or adequate reduction of 
                such risk of injury; or
                  (ii) it is unlikely that there will be 
                substantial compliance with such voluntary 
                consumer product safety standard;
          (E) that the benefits expected from the rule bear a 
        reasonable relationship to its costs; and
          (F) that the rule imposes the least burdensome 
        requirement which prevents or adequately reduces the 
        risk of injury for which the rule is being promulgated.
  (4)(A) Any preliminary or final regulatory analysis prepared 
under subsection (c) or (f)(2) shall not be subject to 
independent judicial review, except that when an action for 
judicial review of a rule is instituted, the contents of any 
such regulatory analysis shall constitute part of the whole 
rulemaking record of agency action in connection with such 
review.
  (B) The provisions of subparagraph (A) shall not be construed 
to alter the substantive or procedural standards otherwise 
applicable to judicial review of any action by the Commission.
  (g)(1) Each consumer product safety rule shall specify the 
date such rule is to take effect not exceeding 180 days from 
the date promulgated, unless the Commission finds, for good 
cause shown, that a later effective date is in the public 
interest and publishes its reasons for such finding. The 
effective date of a consumer product safety standard under this 
Act shall be set at a date at least 30 days after the date of 
promulgation unless the Commission for good cause shown 
determines that an earlier effective date is in the public 
interest. In no case may the effective date be set at a date 
which is earlier than the date of promulgation. A consumer 
product safety standard shall be applicable only to consumer 
products manufactured after the effective date.
  (2) The Commission may by rule prohibit a manufacturer of a 
consumer product from stockpiling any product to which a 
consumer product safety rule applies, or to which a rule under 
any other law enforced by the Commission applies, so as to 
prevent such manufacturer from circumventing the purpose of 
such [consumer product safety] rule. For purposes of this 
paragraph, the term ``stockpiling'' means manufacturing or 
importing a product between the date of promulgation of such 
[consumer product safety] rule and its effective date at a rate 
which is significantly greater (as determined under the rule 
under this paragraph) than the rate at which such product was 
produced or imported during a base period (prescribed in the 
rule under this paragraph) ending before the date of 
promulgation of the [consumer product safety] rule.
  (h) The Commission may by rule amend or revoke any consumer 
product safety rule. Such amendment or revocation shall specify 
the date on which it is to take effect which shall not exceed 
180 days from the date the amendment or revocation is published 
unless the Commission finds for good cause shown that a later 
effective date is in the public interest and publishes its 
reasons for such finding. Where an amendment involves a 
material change in a consumer product safety rule, sections 7 
and 8, and subsections (a) through (g) of this section shall 
apply. In order to revoke a consumer product safety rule, the 
Commission shall publish a proposal to revoke such rule in the 
Federal Register, and allow oral and written presentations in 
accordance with subsection (d)(2) of this section. It may 
revoke such rule only if it determines that the rule is not 
reasonably necessary to eliminate or reduce an unreasonable 
risk of injury associated with the product. Section 11 shall 
apply to any amendment of a consumer product safety rule which 
involves a material change and to any revocation of a consumer 
product safety rule, in the same manner and to the same extent 
as such section applies to the Commission's action in 
promulgating such a rule.
  (i) The Commission shall grant, in whole or in part, or deny 
any petition under section 553(e) of title 5, United States 
Code, requesting the Commission to initiate a rulemaking, 
within a reasonable time after the date on which such petition 
is filed. The Commission shall state the reasons for granting 
or denying such petition. The Commission may not deny any such 
petition on the basis of a voluntary standard unless the 
voluntary standard is in existence at the time of the denial of 
the petition, the Commission has determined that the voluntary 
standard is likely to result in the elimination or adequate 
reduction of the risk of injury identified in the petition, and 
it is likely that there will be substantial compliance with the 
standard.

                   PRODUCT CERTIFICATION AND LABELING

                            [15 U.S.C. 2063]

  Sec. 14. (a)(1) [Every manufacturer] Except as provided in 
paragraph (2), every manufacturer of a product which is subject 
to a consumer product safety standard under this Act and which 
is distributed in commerce (and the private labeler of such 
product if it bears a private label) shall issue a certificate 
which shall certify that such product conforms to all 
applicable consumer product safety standards, and shall specify 
any standard which is applicable.
  (2) Every manufacturer of a children's product (and the 
private labeler of such product if it bears a private label) 
which is subject to a consumer product safety standard under 
this Act, or a rule under this or any other Act enforced by the 
Commission declaring a consumer product a banned hazardous 
product, shall--
          (A) have the product tested by a third party 
        laboratory qualified to perform such tests or testing 
        programs; and
          (B) issue a certification which shall--
                  (i) certify that such product conforms to 
                such consumer product safety standard or is not 
                a banned hazardous product under such rule; and
                  (ii) specify the applicable consumer product 
                safety standard or rule.
  (3) [Such certificate shall] A certificate required under 
this subsection shall accompany the product or shall otherwise 
be furnished to any distributor or retailer to whom the product 
is delivered.
  (4) Any certificate under this subsection shall be based on a 
test of each product or upon a reasonable testing program; 
shall state the name of the manufacturer or private labeler 
issuing the certificate; and shall include the date and place 
of manufacture.
  [(2)] (5) In the case of a consumer product for which there 
is more than one manufacturer or more than one private labeler, 
the Commission may by rule designate one or more of such 
manufacturers or one or more of such private labelers (as the 
case may be) as the persons who shall issue the certificate 
[required by paragraph (1) of this subsection,] required by 
paragraph (1) or (2) (as the case may be), and may exempt all 
other manufacturers of such product or all other private 
labelers of the product (as the case may be) from the 
[requirement under paragraph (1)] requirement under paragraph 
(1) or (2) (as the case may be) to issue a certificate with 
respect to such product.
  (6) The manufacturer of a children's product or other 
consumer product (as may be required by the Commission in its 
discretion after a rulemaking proceeding) shall place 
distinguishing marks on the product and its packaging, to the 
extent practicable, that will enable the ultimate purchaser to 
ascertain the source, date, and cohort (including the batch, 
run number, or other identifying characteristic) of production 
of the product by reference to those marks.
  (b)(1) The Commission may by rule prescribe reasonable 
testing programs for consumer products which are subject to 
consumer product safety standards under this Act and for which 
a certificate is required under subsection (a).
  (2) [Any test or] Except as provided in subsection (a)(2), 
any test or testing program on the basis of which a certificate 
is issued under subsection (a) may, at the option of the person 
required to certify the product, be conducted by an independent 
third party qualified to perform such tests or testing 
programs.
  [(c) The] (c)(1) The Commission may by rule require the use 
and prescribe the form and content of labels which contain the 
following information (or that portion of it specified in the 
[rule)--] rule):
          [(1)] (A) The date and place of manufacture of any 
        consumer product.
          [(2)] (B) A suitable identification of the 
        manufacturer of the consumer product, unless the 
        product bears a private label in which case it shall 
        identify the private labeler and shall also contain a 
        code mark which will permit the seller of such product 
        to identify the manufacturer thereof to the purchaser 
        upon his request.
          [(3)] (C) In the case of a consumer product subject 
        to a consumer product safety rule, a certification that 
        the product meets all applicable consumer product 
        safety standards and a specification of the standards 
        which are applicable.
  (2) Such labels, where practicable, may be required by the 
Commission to be permanently marked on or affixed to any such 
consumer product. The Commission may, in appropriate cases, 
permit information required under paragraphs (1) and (2) of 
this subsection to be coded.
  (4) If an advertisement, label, or package contains a 
reference to a consumer product safety standard, a statement 
with respect to whether the product meets all requirements of 
that standard.
  (d) Application to Other Consumer Products; Certifier 
Standards; Audit.--
          (1) In general.--The Commission--
                  (A) within 1 year after the date of enactment 
                of the CPSC Reform Act of 2007 shall by rule--
                          (i) establish protocols and 
                        standards--
                                  (I) for acceptance of 
                                certification or continuing 
                                guarantees of compliance by 
                                manufacturers under this 
                                section; and
                                  (II) for verifying that 
                                products tested by third party 
                                laboratories comply with 
                                applicable standards under this 
                                Act and other Acts enforced by 
                                the Commission;
                          (ii) prescribe standards for 
                        accreditation of third party 
                        laboratories, either by the Commission 
                        or by 1 or more independent standard-
                        setting organizations to which the 
                        Commission delegates authority, to 
                        engage in certifying compliance under 
                        subsection (a)(2) for children's 
                        products or products to which the 
                        Commission extends the certification 
                        requirements of that subsection;
                          (iii) establish requirements, or 
                        delegate authority to 1 or more 
                        independent standard-setting 
                        organizations, for third party 
                        laboratory testing, as the Commission 
                        determines to be necessary to ensure 
                        compliance with any applicable rule or 
                        order, of random samples of products 
                        certified under this section to 
                        determine whether they meet the 
                        requirements for certification;
                          (iv) establish requirements for 
                        periodic audits of third party 
                        laboratories by an independent 
                        standard-setting organization as a 
                        condition for accreditation of such 
                        laboratories under this section; and
                          (v) establish a program by which 
                        manufacturers may label products as 
                        compliant with the certification 
                        requirements of subsection (a)(2); and
                  (B) may by rule extend the certification 
                requirements of subsection (a)(2) to other 
                consumer products or to classes or categories 
                of consumer products;
          (2) Interim procedure.--Within 30 days after the date 
        of enactment of the CPSC Reform Act of 2007, the 
        Commission shall--
                  (A) consider existing laboratory testing 
                certification procedures established by 
                independent standard-setting organizations; and
                  (B) designate an existing procedure for 
                manufacturers of children's products to follow 
                until the Commission issues a final rule under 
                paragraph (1)(A).
  (e) Definitions.--In this section:
          (1) Children's product.--The term ``children's 
        product'' means a product (other than a medication, 
        drug, or food) designed or intended for use by, or care 
        of, a child 7 years of age or younger that is 
        introduced into the interstate stream of commerce. In 
        determining whether a product is intended for use by a 
        child 7 years of age or younger, the following factors 
        shall be considered:
                  (A) A statement by a manufacturer about the 
                intended use of such product, including a label 
                on such product, if such statement is 
                reasonable.
                  (B) The context and manner of the 
                advertising, promotion, and marketing 
                associated with the product.
                  (C) Whether the product is commonly 
                recognized by consumers as being intended for 
                use by a child 7 years of age or younger.
                  (D) The Age Determination Guideline issued by 
                the Consumer Product Safety Commission in 
                September 2002 and any subsequent version of 
                such Guideline.
          (2) Third party laboratory.--
                  (A) In general.--The term ``third party 
                laboratory'' means a testing entity that--
                          (i) is designated by the Commission, 
                        or by an independent standard-setting 
                        organization to which the Commission 
                        delegates the authority to make such a 
                        designation, as a testing laboratory 
                        that is competent to test products for 
                        compliance with applicable safety 
                        standards under this Act and other Acts 
                        enforced by the Commission; and
                          (ii) except as provided in 
                        subparagraph (B), is a non-governmental 
                        entity that is not owned, managed, 
                        controlled, or directed by the 
                        manufacturer or private labeler.
                  (B) Exception for proprietary laboratories.--
                Upon request, the Commission may certify a 
                laboratory that is owned, managed, controlled, 
                or directed by the manufacturer or private 
                labeler as a third party laboratory if the 
                Commission--
                          (i) finds that certification of the 
                        laboratory would provide equal or 
                        greater consumer safety protection than 
                        the manufacturer's use of an 
                        independent third party laboratory;
                          (ii) establishes procedures to ensure 
                        that the laboratory is protected from 
                        undue influence, including pressure to 
                        modify or hide test results, by the 
                        manufacturer or private labeler; and
                          (iii) establishes procedures for 
                        confidential reporting of allegations 
                        of undue influence to the Commission.
                  (C) Decertification.--The Commission, or an 
                independent standard-setting organization to 
                which the Commission has delegated such 
                authority, may decertify a third party 
                laboratory if it finds, after notice and 
                investigation, that a manufacturer or private 
                labeler has exerted undue influence on the 
                laboratory.

            NOTIFICATION AND REPAIR, REPLACEMENT, OR REFUND

                            [15 U.S.C. 2064]

  Sec. 15. (a) For purposes of this section, the term 
``substantial product hazard'' means--
          (1) a failure to comply with an applicable consumer 
        product safety rule which creates a substantial risk of 
        injury to the public, or
          (2) a product defect which (because of the pattern of 
        defect, the number of defective products distributed in 
        commerce, the severity of the risk, or otherwise) 
        creates a substantial risk of injury to the public.
  (b) Every manufacturer of a [consumer product distributed in 
commerce,] consumer product (or other product or substance over 
which the Commission has jurisdiction under this or any other 
Act) distributed in commerce, and every distributor and 
retailer of such product, who obtains information which 
reasonably supports the conclusion that such product--
          (1) fails to comply with an applicable consumer 
        product safety rule or with a voluntary consumer 
        product safety standard upon which the Commission has 
        relied under section 9;
          (2) fails to comply with any rule or standard 
        promulgated by the Commission under this or any other 
        Act;
          [(2)] (3) contains a defect which could create a 
        substantial product hazard described in subsection 
        (a)(2); or
          [(3)] (4) creates an unreasonable risk of serious 
        injury or death,
shall immediately inform the Commission of such failure to 
comply, of such defect, or of such risk, unless such 
manufacturer, distributor, or retailer has actual knowledge 
that the Commission has been adequately informed of such 
defect, failure to comply, or such risk.
  (c) If the Commission determines (after affording interested 
persons, including consumers and consumer organizations, an 
opportunity for a hearing in accordance with subsection (f) of 
this section) that a product distributed in commerce presents a 
substantial product hazard and that notification is required in 
order to adequately protect the public from such substantial 
product hazard, the Commission may order the manufacturer or 
any distributor or retailer of the product to take any one or 
more of the following actions:
          (1) To give public notice of the defect or failure to 
        comply.
          (2) To mail notice to each person who is a 
        manufacturer, distributor, or retailer of such product.
          (3) To mail notice to every person to whom the person 
        required to give notice knows such product was 
        delivered or sold.
Any such order shall specify the form and content of any notice 
required to be given under such order.
  (d)(1) If the Commission determines (after affording 
interested parties, including consumers and consumer 
organizations, an opportunity for a hearing in accordance with 
subsection (f)) that a product distributed in commerce presents 
a substantial product hazard and that action under this 
subsection is in the public interest, it may order the 
manufacturer or any distributor or retailer of such product to 
take [whichever of the following actions the person to whom the 
order is directed elects:] any one or more of the following 
actions it determines to be in the public interest:
          [(1)] (A) To bring such product into conformity with 
        the requirements of the applicable consumer product 
        safety rule or to repair the defect in such product.
          [(2)] (B) To replace such product with a like or 
        equivalent product which complies with the applicable 
        consumer product safety rule or which does not contain 
        the defect.
          [(3)] (C) To refund the purchase price of such 
        product (less a reasonable allowance for use, if such 
        product has been in the possession of a consumer for 
        one year or [more (A)] more (i) at the time of public 
        notice under subsection (c), [or (B)] or (ii) at the 
        time the consumer receives actual notice of the defect 
        or noncompliance, whichever first occurs).
  (2) An order under this subsection may also require the 
person to whom it applies to submit a plan, [satisfactory to 
the Commission,] for approval by the Commission, for taking 
action under whichever of the preceding paragraphs of this 
subsection under which such person has elected to act. The 
Commission shall specify in the order the persons to whom 
refunds must be made if the person to whom the order is 
directed elects to take the action [described in paragraph 
(3).] described in paragraph (1)(C). If an order under this 
subsection is directed to more than one person, the Commission 
shall specify which person has the election under this 
subsection. An order under this subsection may prohibit the 
person to whom it applies from manufacturing for sale, offering 
for sale, distributing in commerce, or importing into the 
customs territory of the United States (as defined in general 
note 2 of the Harmonized Tariff Schedule of the United States), 
or from doing any combination of such actions, the product with 
respect to which the order was issued.
  (3)(A) If the Commission approves an action plan, it shall 
indicate its approval in writing.
  (B) If the Commission finds that an approved action plan is 
not effective, or that the manufacturer, retailer, or 
distributor is not executing an approved action plan 
effectively, the Commission may by order amend, or require 
amendment of, the action plan.
  (C) If the Commission determines, after notice and 
opportunity for comment, that a manufacturer, retailer, or 
distributor has failed to comply substantially with its 
obligations under its action plan, the Commission may revoke 
its approval of the action plan. The manufacturer, retailer, or 
distributor to which the action plan applies may not distribute 
the product to which the action plan relates in commerce after 
receipt of notice of a revocation of the action plan.
  (e)(1) No charge shall be made to any person (other than a 
manufacturer, distributor, or retailer) who avails himself of 
any remedy provided under an order issued under subsection (d), 
and the person subject to the order shall reimburse each person 
(other than a manufacturer, distributor, or retailer) who is 
entitled to such a remedy for any reasonable and foreseeable 
expenses incurred by such person in availing himself of such 
remedy.
  (2) An order issued under subsection (c) or (d) with respect 
to a product may require any person who is a manufacturer, 
distributor, or retailer of the product to reimburse any other 
person who is a manufacturer, distributor, or retailer of such 
product for such other person's expenses in connection with 
carrying out the order, if the Commission determines such 
reimbursement to be in the public interest.
  (f) An order under subsection (c) or (d) may be issued only 
after an opportunity for a hearing in accordance with section 
554 of title 5, United States Code, except that, if the 
Commission determines that any person who wishes to participate 
in such hearing is a part of a class of participants who share 
an identity of interest, the Commission may limit such person's 
participation in such hearing to participation through a single 
representative designated by such class (or by the Commission 
if such class fails to designate such a representative). Any 
settlement offer which is submitted to the presiding officer at 
a hearing under this subsection shall be transmitted by the 
officer to the Commission for its consideration unless the 
settlement offer is clearly frivolous or duplicative of offers 
previously made.
  (g)(1) If the Commission has initiated a proceeding under 
this section for the issuance of an order under subsection (d) 
with respect to a product which the Commission has reason to 
believe presents a substantial product hazard, the Commission 
(without regard to section 27(b)(7)), or the Attorney General 
may, in accordance with 12(d)(1), apply to a district court of 
the United States for the issuance of a preliminary injunction 
to restrain the distribution in commerce of such product 
pending the completion of such proceeding. If such a 
preliminary injunction has been issued, the Commission (or the 
Attorney General if the preliminary injunction was issued upon 
an application of the Attorney General) may apply to the 
issuing court for extensions of such preliminary injunction.
  (2) Any preliminary injunction, and any extension of a 
preliminary injunction, issued under this subsection with 
respect to a product shall be in effect for such period as the 
issuing court prescribes not to exceed a period which extends 
beyond the thirtieth day from the date of the issuance of the 
preliminary injunction (or, in the case of a preliminary 
injunction which has been extended, the date of its extension) 
or the date of the completion or termination of the proceeding 
under this section respecting such product, whichever date 
occurs first.
  (3) The amount in controversy requirement of section 1331 of 
title 28, United States Code, does not apply with respect to 
the jurisdiction of a district court of the United States to 
issue or extend a preliminary injunction under this subsection.
  (h) Nothing in this section shall be construed to require the 
Commission, in determining that a product distributed in 
commerce presents a substantial product hazard and that 
notification or other action under this section should be 
taken, to prepare a comparison of the costs that would be 
incurred in providing notification or taking other action under 
this section with the benefits from such notification or 
action.

                      INSPECTION AND RECORDKEEPING

                            [15 U.S.C. 2065]

  Sec. 16. (a) For purposes of implementing this Act, or rules 
or orders prescribed under this Act, officers or employees duly 
designated by the Commission, upon presenting appropriate 
credentials and a written notice from the Commission to the 
owner, operator, or agent in charge, are authorized--
          (1) to enter, at reasonable times, (A) any factory, 
        warehouse, or establishment in which consumer products 
        are manufactured or held, in connection with 
        distribution in commerce, or (B) any conveyance being 
        used to transport consumer products in connection with 
        distribution in commerce; and
          (2) to inspect, at reasonable times and in a 
        reasonable manner such conveyance or those areas of 
        such factory, warehouse, or establishment where such 
        products are manufactured, held, or transported and 
        which may relate to the safety of such products. Each 
        such inspection shall be commenced and completed with 
        reasonable promptness.
  (b) Every person who is a manufacturer, private labeler, or 
distributor of a consumer product shall establish and maintain 
such records, make such reports, and provide such information 
as the Commission may, by rule, reasonably require for the 
purposes of implementing this Act, or to determine compliance 
with rules or orders prescribed under this Act. Upon request of 
an officer or employee duly designated by the Commission, every 
such manufacturer, private labeler, or distributor shall permit 
the inspection of appropriate books, records, and papers 
relevant to determining whether such manufacturer, private 
labeler, or distributor has acted or is acting in compliance 
with this Act and rules under this Act.
  (c) Upon request by an officer or employee duly designated by 
the Commission--
          (1) every importer, retailer, or distributor of a 
        consumer product (or other product or substance over 
        which the Commission has jurisdiction under this or any 
        other Act) shall identify the manufacturer of that 
        product by name, address, or such other identifying 
        information as the officer or employee may request; and
          (2) every manufacturer shall identify by name, 
        address, or such other identifying information as the 
        officer or employee may request--
                  (A) each retailer or distributor to which it 
                supplied a given consumer product (or other 
                product or substance over which the Commission 
                has jurisdiction under this or any other Act);
                  (B) each subcontractor involved in the 
                production or fabrication or such product or 
                substance; and
                  (C) each subcontractor from which it obtained 
                a component thereof.

                           IMPORTED PRODUCTS

                            [15 U.S.C. 2066]

  Sec. 17. (a) Any consumer product offered for importation 
into the customs territory of the United States (as defined in 
general note 2 of the Harmonized Tariff Schedule of the United 
States) shall be refused admission into such customs territory 
if such product--
          (1) fails to comply with an applicable consumer 
        product safety rule;
          (2) is not accompanied by a certificate required by 
        section 14, or is not labeled in accordance with 
        regulations under section 14(c);
          (3) is or has been determined to be an imminently 
        hazardous consumer product in a proceeding brought 
        under section 12;
          (4) has a product defect which constitutes a 
        substantial product hazard (within the meaning of 
        section 15(a)(2)); [or]
          (5) is a product which was manufactured by a person 
        who the Commission has informed the Secretary of the 
        Treasury is in violation of subsection [(g).] (g); or
          (6) is a children's product, as that term is defined 
        in section 14(e), or a product for which the 
        Commission, under section 14(d)(1), has required 
        certification under section 14(a)(2)), that is not 
        accompanied by a certificate from a third party as 
        required by section 14(a)(2).
  (b) The Secretary of the Treasury shall obtain without charge 
and deliver to the Commission, upon the latter's request, a 
reasonable number of samples of consumer products being offered 
for import. Except for those owners or consignees who are or 
have been afforded an opportunity for a hearing in a proceeding 
under section 12 with respect to an imminently hazardous 
product, the owner or consignee of the product shall be 
afforded an opportunity by the Commission for a hearing in 
accordance with section 554 of title 5 of the United States 
Code with respect to the importation of such products into the 
customs territory of the United States. If it appears from 
examination of such samples or otherwise that a product must be 
refused admission under the terms of subsection (a), such 
product shall be refused admission, unless subsection (c) of 
this section applies and is complied with.
  (c) If it appears to the Commission that any consumer product 
which may be refused admission pursuant to subsection (a) of 
this section can be so modified that it need not (under the 
terms of paragraphs (1) through (4) of subsection (a)) be 
refused admission, the Commission may defer final determination 
as to the admission of such product and, in accordance with 
such regulations as the Commission and the Secretary of the 
Treasury shall jointly agree to, permit such product to be 
delivered from customs custody under bond for the purpose of 
permitting the owner or consignee an opportunity to so modify 
such product.
  (d) All actions taken by an owner or consignee to modify such 
product under subsection (c) shall be subject to the 
supervision of an officer or employee of the Commission and of 
the Department of the Treasury. If it appears to the Commission 
that the product cannot be so modified or that the owner or 
consignee is not proceeding satisfactorily to modify such 
product, it shall be refused admission into the customs 
territory of the United States, and the Commission may direct 
the Secretary to demand redelivery of the product into customs 
custody, and to seize the product in accordance with section 
22(b) if it is not so redelivered.
  (e) Products refused admission into the customs territory of 
the United States under this section must be exported, except 
that upon application, the Secretary of the Treasury may permit 
the destruction of the product in lieu of exportation. If the 
owner or consignee does not export the product within a 
reasonable time, the Department of the Treasury may destroy the 
product.
  (f) All expenses (including travel, per diem or subsistence, 
and salaries of officers or employees of the United States) in 
connection with the destruction provided for in this section 
(the amount of such expenses to be determined in accordance 
with regulations of the Secretary of the Treasury) and all 
expenses in connection with the storage, cartage, or labor with 
respect to any consumer product refused admission under this 
section, shall be paid by the owner or consignee and, in 
default of such payment, shall constitute a lien against any 
future importations made by such owner or consignee.
  (g) The Commission may, by rule, condition the importation of 
a consumer product on the manufacturer's compliance with the 
inspection and recordkeeping requirements of this Act and the 
Commission's rules with respect to such requirements.
  (h)(1) The Commission shall establish and maintain a 
permanent product surveillance program, in cooperation with 
other appropriate Federal agencies, for the purpose of carrying 
out the Commission's responsibilities under this Act and the 
other Acts administered by the Commission and preventing the 
entry of unsafe consumer products into the commerce of the 
United States.
  (2) The Commission may provide to the agencies with which it 
is cooperating under paragraph (1) such information, data, 
violator lists, test results, and other support, guidance, and 
documents as may be necessary or helpful for such agencies to 
cooperate with the Commission to carry out the product 
surveillance program under paragraph (1).
  (3) The Commission shall periodically report to the Congress 
the results of the surveillance program under paragraph (1).
  (i)(1) The Commission may--
          (A) designate as a repeat offender, after notice and 
        an opportunity for a hearing, any customs broker found 
        by the Commission to have aided and abetted the 
        importation of a consumer product in violation of 
        subsection (a) on multiple occasions (disregarding de 
        minimus violations thereof); and
          (B) refer any such customs broker to United States 
        Customs and Border Protection with a recommendation 
        that its customs broker license be revoked in 
        accordance with that agency's procedures.
  (2) The United States Customs and Border Protection shall 
revoke the customs broker license of any customs broker 
referred to it under paragraph (1)(B).

                                EXPORTS

                            [15 U.S.C. 2067]

  Sec. 18. (a) This Act shall not apply to any consumer product 
if (1) it can be shown that such product is manufactured, sold, 
or held for sale for export from the United States (or that 
such product was imported for export), unless (A) such consumer 
product is in fact distributed in commerce for use in the 
United States, or (B) the Commission determines that 
exportation of such product presents an unreasonable risk of 
injury to consumers within the United States, and (2) such 
consumer product when distributed in commerce, or any container 
in which it is enclosed when so distributed, bears a stamp or 
label stating that such consumer product is intended for 
export; except that this Act shall apply to any consumer 
product manufactured for sale, offered for sale, or sold for 
shipment to any installation of the United States located 
outside the United States.
  (b) Not less than thirty days before any person exports to a 
foreign country any product--
          (1) which is not in conformity with an applicable 
        consumer product safety standard in effect under this 
        Act, or
          (2) which is declared to be a banned hazardous 
        substance by a rule promulgated under section 9,
such person shall file a statement with the Commission 
notifying the Commission of such exportation, and the 
Commission, upon receipt of such statement, shall promptly 
notify the government of such country of such exportation and 
the basis for such safety standard or rule. Any statement filed 
with the Commission under the preceding sentence shall specify 
the anticipated date of shipment of such product, the country 
and port of destination of such product, and the quantity of 
such product that will be exported, and shall contain such 
other information as the Commission may by regulation require. 
Upon petition filed with the Commission by any person required 
to file a statement under this subsection respecting an 
exportation, the Commission may, for good cause shown, exempt 
such person from the requirement of this subsection that such a 
statement be filed no less than thirty days before the date of 
the exportation, except that in no case shall the Commission 
permit such a statement to be filed later than the tenth day 
before such date.
  (c) Notwithstanding any other provision of law, the 
Commission may prohibit a person from exporting from the United 
States for purpose of sale any consumer product, or other 
product or substance that is regulated under this Act or any 
other Act enforced by the Commission, that the Commission 
determines, after notice to the manufacturer--
          (1) is not in conformity with an applicable consumer 
        product safety standard under this Act or with a 
        similar rule under any such other Act and does not 
        violate applicable safety standards established by the 
        importing country;
          (2) is subject to an order issued under section 12 or 
        15 of this Act or designated as a banned hazardous 
        substance under the Federal Hazardous Substances Act 
        (15 U.S.C. 1261 et seq.); or
          (3) is subject to voluntary corrective action taken 
        by the manufacturer, in consultation with the 
        Commission, of which action the Commission has notified 
        the public and that would have been subject to 
        mandatory corrective action under this Act or any other 
        Act enforced by the Commission if voluntary corrective 
        action had not been taken by the manufacturer, except 
        that the Commission may permit such a product to be 
        exported if it meets applicable safety standards 
        established by the importing country.

                            PROHIBITED ACTS

                            [15 U.S.C. 2068]

  Sec. 19. (a) It shall be unlawful for any person to--
          [(1) manufacture for sale, offer for sale, distribute 
        in commerce, or import into the United States any 
        consumer product which is not in conformity with an 
        applicable consumer product safety standard under this 
        Act;]
          (1) sell, offer for sale, manufacture for sale, 
        distribute in commerce, or import into the United 
        States any consumer product, or other product or 
        substance that is regulated under this Act or any other 
        Act enforced by the Commission, that is--
                  (A) not in conformity with an applicable 
                consumer product safety standard under this 
                Act, or any similar rule under any such other 
                Act;
                  (B) subject to voluntary corrective action 
                taken by the manufacturer, in consultation with 
                the Commission, of which action the Commission 
                has notified the public, but only if the 
                seller, distributor, or manufacturer knew or 
                should have known of such voluntary corrective 
                action; or
                  (C) subject to an order issued under section 
                12 or 15 of this Act, designated a banned 
                hazardous substance under the Federal Hazardous 
                Substances Act (15 U.S.C. 1261 et seq.);
          (2) manufacture for sale, offer for sale, distribute 
        in commerce, or import into the United States any 
        consumer product which has been declared a banned 
        hazardous product by a rule under this Act;
          (3) fail or refuse to permit access to or copying of 
        records, or fail or refuse to establish or maintain 
        records, or fail or refuse to make reports or provide 
        information, or fail or refuse to permit entry or 
        inspection, as required under this Act or rule 
        thereunder;
          (4) fail to furnish information required by section 
        15(b);
          (5) fail to comply with an order issued under section 
        15 (c) or (d) (relating to notification, and to repair, 
        replacement, and refund, and to prohibited acts);
          [(6) fail to furnish a certificate required by 
        section 14 or issue a false certificate if such person 
        in the exercise of due care has reason to know that 
        such certificate is false or misleading in any material 
        respect; or to fail to comply with any rule under 
        section 14(c) (relating to labeling);]
          (6) fail to furnish a certificate required by this 
        Act or any other Act enforced by the Commission, or to 
        issue a false certificate if such person in the 
        exercise of due care has reason to know that the 
        certificate is false or misleading in any material 
        respect; or to fail to comply with any rule under 
        section 14(c);
          (7) fail to comply with any rule under section 
        9(g)(2) (relating to stockpiling); [or]
          (8) fail to comply with any rule under section 27(e) 
        (relating to provision of performance and technical 
        data); [and]
          (9) fail to comply with any rule or requirement under 
        section 35 (relating to labeling and testing of 
        cellulose [insulation).] insulation;
          (10) fail to file a statement with the Commission 
        pursuant to section [18(b).] 18(b);
          (11) fail to furnish information required by section 
        [37.] 37;
          (12) violate an order of the Commission under section 
        18(c);
          (13) sell, offer for sale, distribute in commerce, or 
        import into the United States any consumer product 
        bearing a false certification mark of compliance with a 
        safety standard established by a nationally recognized 
        testing laboratory if such person knew or should have 
        known that the certification mark was false;
          (14) misrepresent to any officer or employee of the 
        Commission the scope of consumer products subject to an 
        action required under section 12 or 15, or to make a 
        material misrepresentation to such an officer or 
        employee in the course of an investigation under this 
        Act or any other Act enforced by the Commission; or
          (15) exercise, or attempt to exercise, undue 
        influence on a third party laboratory (as defined in 
        section 14(e)(2)) with respect to the testing, or 
        reporting of the results of testing, of any product for 
        compliance with a standard under this Act or any other 
        Act enforced by the Commission.
  (b) Paragraphs (1) and (2) of subsection (a) of this section 
shall not apply to any person (1) who holds a certificate 
issued in accordance with section 14(a) to the effect that such 
consumer product conforms to all applicable consumer product 
safety rules, unless such person knows that such consumer 
product does not conform, or (2) who relies in good faith on 
the representation of the manufacturer or a distributor of such 
product that the product is not subject to an applicable 
product safety rule.

                            CIVIL PENALTIES

                            [15 U.S.C. 2069]

  Sec. 20. (a)(1) Any person who knowingly violates section 19 
of this Act shall be subject to a civil penalty not to exceed 
[$5,000] $250,000 for each such violation. Subject to paragraph 
(2), a violation of section 19(a) (1), (2), (4), (5), (6), (7), 
(8), (9), (10), or (11) shall constitute a separate offense 
with respect to each consumer product involved, except that the 
maximum civil penalty shall not exceed [$1,250,000] 
$100,000,000 for any related series of violations. A violation 
of section 19(a)(3) shall constitute a separate violation with 
respect to each failure or refusal to allow or perform an act 
required thereby; and, if such violation is a continuing one, 
each day of such violations shall constitute a separate 
offense, except that the maximum civil penalty shall not exceed 
[$1,250,000] $100,000,000 for any related series of violations.
  (2) The second sentence of paragraph (1) of this subsection 
shall not apply to violations of paragraph (1) or (2) of 
section 19(a)--
          (A) if the person who violated such paragraphs is not 
        the manufacturer or private labeler or a distributor of 
        the products involved, and
          (B) if such person did not have either (i) actual 
        knowledge that his distribution or sale of the product 
        violated such paragraphs or (ii) notice from the 
        Commission that such distribution or sale would be a 
        violation of such paragraphs.
  (3)(A) The maximum penalty amounts authorized in paragraph 
(1) shall be adjusted for inflation as provided in this 
paragraph.
  (B) Not later than [December 1, 1994,] December 1, 2011, and 
December 1 of each fifth calendar year thereafter, the 
Commission shall prescribe and publish in the Federal Register 
a schedule of maximum authorized penalties that shall apply for 
violations that occur after January 1 of the year immediately 
following such publication.
  (C) The schedule of maximum authorized penalties shall be 
prescribed by increasing each of the amounts referred to in 
paragraph (1) by the cost-of-living adjustment for the 
preceding five years. Any increase determined under the 
preceding sentence shall be rounded to--
          (i) in the case of penalties greater than $1,000 but 
        less than or equal to $10,000, the nearest multiple of 
        $1,000;
          (ii) in the case of penalties greater than $10,000 
        but less than or equal to $100,000, the nearest 
        multiple of $5,000;
          (iii) in the case of penalties greater than $100,000 
        but less than or equal to $200,000, the nearest 
        multiple of $10,000; and
          (iv) in the case of penalties greater than $200,000, 
        the nearest multiple of $25,000.
  (D) For purposes of this subsection:
          (i) The term ``Consumer Price Index'' means the 
        Consumer Price Index for all-urban consumers published 
        by the Department of Labor.
          (ii) The term ``cost-of-living adjustment for the 
        preceding five years'' means the percentage by which--
                  (I) the Consumer Price Index for the month of 
                June of the calendar year preceding the 
                adjustment; exceeds
                  (II) the Consumer Price Index for the month 
                of June preceding the date on which the maximum 
                authorized penalty was last adjusted.
  (b) In determining the amount of any penalty to be sought 
upon commencing an action seeking to assess a penalty for a 
violation of section 19(a), the Commission shall consider the 
nature of the product defect, the severity of the risk of 
injury, the occurrence of absence of injury, the number of 
defective products distributed, and the appropriateness of such 
penalty in relation to the size of the business of the person 
charged.
  (c) Any civil penalty under this section may be compromised 
by the Commission. In determining the amount of such penalty or 
whether it should be remitted or mitigated and in what amount, 
the Commission shall consider the appropriateness of such 
penalty to the size of the business of the person charged, the 
nature of the product defect, the severity of the risk of 
injury, the occurrence or absence of injury, and the number of 
defective products distributed. The amount of such penalty when 
finally determined, or the amount agreed on compromise, may be 
deducted from any sums owing by the United States to the person 
charged.
  (d) As used in the first sentence of subsection (a)(1) of 
this section, the term ``knowingly'' means (1) the having of 
actual knowledge, or (2) the presumed having of knowledge 
deemed to be possessed by a reasonable man who acts in the 
circumstances, including knowledge obtainable upon the exercise 
of due care to ascertain the truth of representations.

                           CRIMINAL PENALTIES

                            [15 U.S.C. 2070]

  Sec. 21. [(a) Any person who knowingly and willfully violates 
section 19 of this Act after having received notice of 
noncompliance from the Commission shall be fined not more than 
$50,000 or be imprisoned not more than one year, or both.] (a) 
Violation of section 19 of this Act is punishable by--
          (1) imprisonment for not more than--
                  (A) 1 year for a knowing violation of that 
                section; or
                  (B) 5 years for a knowing and willful 
                violation of that section; and
          (2) a fine determined under section 3571 of title 18, 
        United States Code.
  (b) Any individual director, officer, or agent of a 
corporation who knowingly [and willfully] authorizes, orders, 
or performs any of the acts or practices constituting in whole 
or in part a violation of section [19, and who has knowledge of 
notice of noncompliance received by the corporation from the 
Commission,] 19 shall be subject to penalties under this 
section without regard to any penalties to which that 
corporation may be subject under subsection (a).
  (c)(1) In addition to the penalties provided by subsection 
(a), the penalty for a criminal violation of this Act or any 
other Act enforced by the Commission may include the forfeiture 
of assets associated with the violation.
  (2) In this subsection, the term `criminal violation' means a 
violation of this Act of any other Act enforced by the 
Commission for which the violator is sentenced to pay a fine, 
be imprisoned, or both.

           *       *       *       *       *       *       *


                 ENFORCEMENT BY STATE ATTORNEYS GENERAL

  Sec. 26A. (a) Except as provided in subsection (f), a State, 
as parens patriae, may bring a civil action on behalf of its 
residents in an appropriate State or district court of the 
United States to enforce the provisions of this Act or any 
other Act enforced by the Commission to obtain penalties and 
relief provided under such Acts whenever the attorney general 
of the State has reason to believe that the interests of the 
residents of the State have been or are being threatened or 
adversely affected by a manufacturer, distributor, or retailer 
entity that violates this Act or a regulation under this Act.
  (b) The State shall serve written notice to the Commission of 
any civil action under subsection (a) at least 60 days prior to 
initiating such civil action. The notice shall include a copy 
of the complaint to be filed to initiate such civil action, 
except that if it is not feasible for the State to provide such 
prior notice, the State shall provide notice immediately upon 
instituting such civil action.
  (c) Upon receiving the notice required by subsection (b), the 
Commission may intervene in such civil action and upon 
intervening--
          (1) be heard on all matters arising in such civil 
        action; and
          (2) file petitions for appeal of a decision in such 
        civil action.
  (d) Nothing in this section shall prevent the attorney 
general of a State from exercising the powers conferred on the 
attorney general by the laws of such State to conduct 
investigations or to administer oaths or affirmations or to 
compel the attendance of witnesses or the production of 
documentary and other evidence.
  (e) In a civil action brought under subsection (a)--
          (1) the venue shall be a judicial district in which--
                  (A) the manufacturer, distributor, or 
                retailer operates; or
                  (B) the manufacturer, distributor, or 
                retailer is authorized to do business;
          (2) process may be served without regard to the 
        territorial limits of the district or of the State in 
        which the civil action is instituted; and
          (3) a person who participated with a manufacturer, 
        distributor, or retailer in an alleged violation that 
        is being litigated in the civil action may be joined in 
        the civil action without regard to the residence of the 
        person.
  (f) If the Commission has instituted a civil action or an 
administrative action for violation of this Act or any other 
Act enforced by the Commission, no State attorney general, or 
other official or agency of a State, may bring an action under 
this section during the pendency of that action against any 
defendant named in the complaint of the Commission for any 
violation of this Act alleged in the complaint.
  (g) If the attorney general of the State prevails in any 
civil action under subsection (a), it can recover reasonable 
costs and attorney fees from the manufacturer, distributor, or 
retailer.

           *       *       *       *       *       *       *


        COOPERATION WITH STATES AND WITH OTHER FEDERAL AGENCIES

                            [15 U.S.C. 2078]

  Sec. 29. (a) The Commission shall establish a program to 
promote Federal-State cooperation for the purposes of carrying 
out this Act. In implementing such program the Commission may--
          (1) accept from any State or local authorities 
        engaged in activities relating to health, safety, or 
        consumer protection assistance in such functions as 
        injury data collection, investigation, and educational 
        programs, as well as other assistance in the 
        administration and enforcement of this Act which such 
        States or localities may be able and willing to provide 
        and, if so agreed, may pay in advance or otherwise for 
        the reasonable cost of such assistance, and
          (2) commission any qualified officer or employee of 
        any State or local agency as an officer of the 
        Commission for the purpose of conducting examinations, 
        investigations, and inspections.
  (b) In determining whether such proposed State and local 
programs are appropriate in implementing the purposes of this 
Act, the Commission shall give favorable consideration to 
programs which establish separate State and local agencies to 
consolidate functions relating to product safety and other 
consumer protection activities.
  (c) The Commission may obtain from any Federal department or 
agency such statistics, data, program reports, and other 
materials as it may deem necessary to carry out its functions 
under this Act. Each such department or agency may cooperate 
with the Commission and, to the extent permitted by law, 
furnish such materials to it. The Commission and the heads of 
other departments and agencies engaged in administering 
programs related to product safety shall, to the maximum extent 
practicable, cooperate and consult in order to insure fully 
coordinated efforts.
  (d) The Commission shall, to the maximum extent practicable, 
utilize the resources and facilities of the National Bureau of 
Standards, on a reimbursable basis, to perform research and 
analyses related to risks of injury associated with consumer 
products (including fire and flammability risks), to develop 
test methods, to conduct studies and investigations, and to 
provide technical advice and assistance in connection with the 
functions of the Commission.
  (e) The Commission may provide to another Federal agency or a 
State or local agency or authority engaged in activities 
relating to health, safety, or consumer protection, copies of 
any accident or investigation report made under this Act by any 
officer, employee, or agent of the Commission only if (1) 
information which under section 6(a)(2) is to be considered 
confidential is not included in any copy of such report which 
is provided under this subsection; and (2) each Federal agency 
and State and local agency and authority which is to receive 
under this subsection a copy of such report provides assurances 
satisfactory to the Commission that the identity of any injured 
person and any person who treated an injured person will not, 
without the consent of the person identified, be included in--
          (A) any copy of any such report, or
          (B) any information contained in any such report, 
        which the agency or authority makes available to any 
        member of the public. No Federal agency or State or 
        local agency or authority may disclose to the public 
        any information contained in a report received by the 
        agency or authority under this subsection unless with 
        respect to such information the Commission has complied 
        with the applicable requirements of section 6(b).
  (f)(1) The Commission may make information obtained by the 
Commission under section 6 available to any Federal, State, 
local, or foreign government agency upon the prior 
certification of an appropriate official of any such agency, 
either by a prior agreement or memorandum of understanding with 
the Commission or by other written certification, that such 
material will be maintained in confidence and will be used only 
for official law enforcement or consumer protection purposes, 
if--
          (A) the agency has set forth a bona fide legal basis 
        for its authority to maintain the material in 
        confidence;
          (B) the materials are to be used for purposes of 
        investigating, or engaging in enforcement proceedings 
        related to, possible violations of--
                  (i) laws regulating the manufacture, 
                importation, distribution, or sale of defective 
                or unsafe consumer products, or other practices 
                substantially similar to practices prohibited 
                by any law administered by the Commission;
                  (ii) a law administered by the Commission, if 
                disclosure of the material would further a 
                Commission investigation or enforcement 
                proceeding; or
                  (iii) with respect to a foreign law 
                enforcement agency, with the approval of the 
                Attorney General, other foreign criminal laws, 
                if such foreign criminal laws are offenses 
                defined in or covered by a criminal mutual 
                legal assistance treaty in force between the 
                government of the United States and the foreign 
                law enforcement agency's government; and
          (C) the foreign government agency is not from a 
        foreign state that the Secretary of State has 
        determined, in accordance with section 6(j) of the 
        Export Administration Act of 1979 (50 U.S.C. App. 
        2405(j)), has repeatedly provided support for acts of 
        international terrorism, unless and until such 
        determination is rescinded pursuant to section 6(j)(4) 
        of that Act (50 U.S.C. App. 2405(j)(4)).
  (2) Except as provided in paragraph (3) of this subsection, 
the Commission shall not be required to disclose under section 
552 of title 5, United States Code, or any other provision of 
law--
          (A) any material obtained from a foreign government 
        agency, if the foreign government agency has requested 
        confidential treatment, or has precluded such 
        disclosure under other use limitations, as a condition 
        of providing the material;
          (B) any material reflecting a consumer complaint 
        obtained from any other foreign source, if the foreign 
        source supplying the material has requested 
        confidential treatment as a condition of providing the 
        material; or
          (C) any material reflecting a consumer complaint 
        submitted to a Commission reporting mechanism sponsored 
        in part by foreign government agencies.
  (3) Nothing in this subsection shall authorize the Commission 
to withhold information from the Congress or prevent the 
Commission from complying with an order of a court of the 
United States in an action commenced by the United States or 
the Commission.
  (4) The Commission may terminate a memorandum of 
understanding or other agreement with another agency if it 
determines that the other agency has not handled information 
made available by the Commission under paragraph (1) or has 
failed to maintain confidentiality with respect to the 
information.
  (5) In this subsection, the term ``foreign government 
agency'' means--
          (A) any agency or judicial authority of a foreign 
        government, including a foreign state, a political 
        subdivision of a foreign state, or a multinational 
        organization constituted by and comprised of foreign 
        states, that is vested with law enforcement or 
        investigative authority in civil, criminal, or 
        administrative matters; and
          (B) any multinational organization, to the extent 
        that it is acting on behalf of an entity described in 
        subparagraph (A).

                    AUTHORIZATION OF APPROPRIATIONS

                            [15 U.S.C. 2081]

  Sec. 32. [(a) There are authorized to be appropriated for the 
purposes of carrying out the provisions of this Act (other than 
the provisions of section 27(h) which authorize the planning 
and construction of research, development, and testing 
facilities) and for the purpose of carrying out the functions, 
powers, and duties transferred to the Commission under section 
30, not to exceed--
          [(1) $42,000,000 for fiscal year 1991, and
          [(2) $45,000,000 for fiscal year 1992.
For payment of accumulated and accrued leave under section 5551 
of title 5, United States Code, severance pay under section 
5595 under such title, and any other expense related to a 
reduction in force in the Commission, there are authorized to 
be appropriated such sums as may be necessary.
  [(b)(1) There are authorized to be appropriated such sums as 
may be necessary for the planning and construction of research, 
development and testing facilities described in section 27(h); 
except that no appropriation shall be made for any such 
planning or construction involving an expenditure in excess of 
$100,000 if such planning or construction has not been approved 
by resolutions adopted in substantially the same form by the 
Committee on Energy and Commerce of the House of 
Representatives, and by the Committee on Commerce, Science, and 
Transportation of the Senate. For the purpose of securing 
consideration of such approval the Commission shall transmit to 
Congress a prospectus of the proposed facility including (but 
not limited to)--
          [(A) a brief description of the facility to be 
        planned or constructed;
          [(B) the location of the facility, and an estimate of 
        the maximum cost of the facility;
          [(C) a statement of those agencies, private and 
        public, which will use such facility, together with the 
        contribution to be made by each such agency toward the 
        cost of such facility; and
          [(D) a statement of justification of the need for 
        such facility.
  [(2) The estimated maximum cost of any facility approved 
under this subsection as set forth in the prospectus may be 
increased by the amount equal to the percentage increase, if 
any, as determined by the Commission, in construction costs, 
from the date of the transmittal of such prospectus to 
Congress, but in no event shall the increase authorized by this 
paragraph exceed 10 per centum of such estimated maximum cost.]
  (a) There are authorized to be appropriated to the Commission 
for the purpose of carrying out the provisions of this Act and 
any other provision of law the Commission is authorized or 
directed to carry out--
          (1) $80,000,000 for fiscal year 2009;
          (2) $88,500,000 for fiscal year 2010;
          (3) $96,800,000 for fiscal year 2011;
          (4) $106,480,000 for fiscal year 2012;
          (5) $117,128,000 for fiscal year 2013;
          (6) $128,841,000 for fiscal year 2014; and
          (7) $141,725,000 for fiscal year 2015.
  (b) There are authorized to be appropriated to the Commission 
for the Office of Inspector General--
          (1) $1,600,000 for fiscal year 2009;
          (2) $1,770,000 for fiscal year 2010;
          (3) $1,936,000 for fiscal year 2011;
          (4) $2,129,600 for fiscal year 2012;
          (5) $2,342,560 for fiscal year 2013;
          (6) $2,576,820 for fiscal year 2014; and
          (7) $2,834,500 for fiscal year 2015.
  (c) There are authorized to be appropriated to the Commission 
for the purpose of renovation, repair, construction, equipping, 
and making other necessary capital improvements to the 
Commission's research, development, and testing facility 
(including bringing the facility into compliance with 
applicable environmental, safety, and accessibility standards), 
$40,000,000 for fiscal years 2009 and 2010.
  (d) There are authorized to be appropriated to the Commission 
for research, in cooperation with the National Institute of 
Science and Technology, the Food and Drug Administration, and 
other relevant Federal agencies into safety issues related to 
the use of nanotechnology in consumer products, $1,000,000 for 
fiscal years 2009 and 2010.
  [(c)] (e) No funds appropriated under subsection (a) may be 
used to pay any claim described in section 4(i) whether 
pursuant to a judgment of a court or under any award, 
compromise, or settlement of such claim made under section 2672 
of title 28, United States Code, or under any other provision 
of law.

           *       *       *       *       *       *       *


                             BOND AUTHORITY

  Sec. 39. (a) The Commission, in a rulemaking proceeding, may 
require the posting of a bond (or other security acceptable to 
the Commission) by--
          (1) a person that has committed multiple significant 
        violations of this Act or any rule or Act enforced by 
        the Commission;
          (2) the manufacturer or distributor of a category or 
        class of consumer products; or
          (3) the manufacturer or distributor of any consumer 
        product or any product or substance regulated under any 
        other Act enforced by the Commission.
  (b) Amount.--The bond or other security required by the 
Commission under subsection (a) shall be in an amount 
sufficient--
          (1) to cover the costs of an effective recall of the 
        product or substance; or
          (2) in the case of an imported product or substance, 
        to cover the costs of holding the product or substance 
        at the port and the destruction of the product should 
        such action be required by the Commission under this 
        Act or any other Act enforced by the Commission.

                        WHISTLEBLOWER PROTECTION

  Sec. 40. (a) No manufacturer, private labeler, distributor, 
or retailer, nor any Federal, State, or local government 
agency, may discharge an employee or otherwise discriminate 
against an employee with respect to compensation, terms, 
conditions, or privileges of employment because the employee, 
whether at the employee's initiative or in the ordinary course 
of the employee's duties (or any person acting pursuant to a 
request of the employee)--
          (1) provided, caused to be provided, or is about to 
        provide or cause to be provided to the employer, the 
        Federal Government, or the attorney general of a State 
        information relating to any violation or alleged 
        violation of any order, regulation, or consumer product 
        safety standard under this Act or any other law 
        enforced by the Commission (or by the attorney general 
        of a State under section 21);
          (2) testified or is about to testify in such a 
        proceeding;
          (3) assisted or participated or is about to assist or 
        participate in such a proceeding; or
          (4) objected to, or refused to participate in, any 
        activity, policy, practice, or assigned task that the 
        employee (or other such person) reasonably believed to 
        be in violation of an applicable law or to be a 
        substantial and specific danger to public health or 
        safety.
  (b)(1) If the Commission, or the attorney general of a State, 
proceeds with an action against a manufacturer, private 
labeler, distributor, or retailer for a violation of this Act 
or any other Act enforced by the Commission, on the basis of 
information provided by such an employee, the employee shall 
receive at least 15 percent but not more than 25 percent of any 
civil penalty assessed and collected by the Commission, or 
attorney general, for the violation, depending upon the extent 
to which the information provided by the employee substantially 
contributed to the enforcement action, as determined by the 
Commission.
  (2) If the Commission's action is based primarily on 
disclosures of specific information (other than information 
provided by the employee) relating to allegations or 
transactions in a criminal, civil, or administrative hearing, 
in a congressional, administrative, or Government 
Accountability Office report, hearing, audit, or investigation, 
or from the news media, the Commission may award such sums as 
it considers appropriate to the employee, but in no case more 
than 10 percent of the civil penalty assessed and collected, 
taking into account the significance of the information and the 
role of the employee.
  (3) In the case of an action brought by the attorney general 
of a State under section 21, the amount of any civil penalty to 
which such an employee may be entitled shall be determined by 
the Commission, subject to the limitations in paragraph (1) and 
(2), in consultation with the attorney general that brought the 
action.
  (c)(1) A person who believes that he or she has been 
discharged or otherwise discriminated against by any person in 
violation of subsection (a) may, not later than 1 year after 
the date on which such violation occurs, file (or have any 
person file on his or her behalf) a complaint with the 
Secretary of Labor alleging such discharge or discrimination 
and identifying the person responsible for such act. Upon 
receipt of such a complaint, the Secretary shall notify, in 
writing, the person named in the complaint of the filing of the 
complaint, of the allegations contained in the complaint, of 
the substance of evidence supporting the complaint, and of the 
opportunities that will be afforded to such person under 
paragraph (2).
  (2)(A) Not later than 60 days after the date of receipt of a 
complaint filed under paragraph (1) and after affording the 
complainant and the person named in the complaint an 
opportunity to submit to the Secretary a written response to 
the complaint and an opportunity to meet with a representative 
of the Secretary to present statements from witnesses, the 
Secretary shall initiate an investigation and determine whether 
there is reasonable cause to believe that the complaint has 
merit and notify, in writing, the complainant and the person 
alleged to have committed a violation of subsection (a) of the 
Secretary's findings. If the Secretary concludes that there is 
reasonable cause to believe that a violation of subsection (a) 
has occurred, the Secretary shall accompany the Secretary's 
findings with a preliminary order providing the relief 
prescribed by paragraph (3)(B). Not later than 30 days after 
the date of notification of findings under this paragraph, 
either the person alleged to have committed the violation or 
the complainant may file objections to the findings or 
preliminary order, or both, and request a hearing on the 
record. The filing of such objections shall not operate to stay 
any reinstatement remedy contained in the preliminary order. 
Any such hearing shall be conducted expeditiously. If a hearing 
is not requested in such 30-day period, the preliminary order 
shall be deemed a final order that is not subject to judicial 
review.
  (B)(i) The Secretary shall dismiss a complaint filed under 
this subsection and shall not conduct an investigation 
otherwise required under subparagraph (A) unless the 
complainant makes a prima facie showing that any behavior 
described in paragraphs (1) through (4) of subsection (a) was a 
contributing factor in the unfavorable personnel action alleged 
in the complaint.
  (ii) Notwithstanding a finding by the Secretary that the 
complainant has made the showing required under clause (i), no 
investigation otherwise required under subparagraph (A) shall 
be conducted if the employer demonstrates, by clear and 
convincing evidence, that the employer would have taken the 
same unfavorable personnel action in the absence of that 
behavior.
  (iii) The Secretary may determine that a violation of 
subsection (a) has occurred only if the complainant 
demonstrates that any behavior described in paragraphs (1) 
through (4) of subsection (a) was a contributing factor in the 
unfavorable personnel action alleged in the complaint.
  (iv) Relief may not be ordered under subparagraph (A) if the 
employer demonstrates by clear and convincing evidence that the 
employer would have taken the same unfavorable personnel action 
in the absence of that behavior.
  (3)(A) Not later than 120 days after the date of conclusion 
of any hearing under paragraph (2), the Secretary shall issue a 
final order providing the relief prescribed by this paragraph 
or denying the complaint. At any time before issuance of a 
final order, a proceeding under this subsection may be 
terminated on the basis of a settlement agreement entered into 
by the Secretary, the complainant, and the person alleged to 
have committed the violation.
  (B) If, in response to a complaint filed under paragraph (1), 
the Secretary determines that a violation of subsection (a) has 
occurred, the Secretary shall order the person who committed 
such violation--
          (i) to take affirmative action to abate the 
        violation;
          (ii) to reinstate the complainant to his or her 
        former position together with compensation (including 
        back pay) and restore the terms, conditions, and 
        privileges associated with his or her employment; and
          (iii) to provide compensatory damages to the 
        complainant.
If such an order is issued under this paragraph, the Secretary, 
at the request of the complainant, shall assess against the 
person against whom the order is issued a sum equal to the 
aggregate amount of all costs and expenses (including 
attorneys' and expert witness fees) reasonably incurred, as 
determined by the Secretary, by the complainant for, or in 
connection with, the bringing of the complaint upon which the 
order was issued.
  (C) If the Secretary finds that a complaint under paragraph 
(1) is frivolous or has been brought in bad faith, the 
Secretary may award to the prevailing employer a reasonable 
attorneys' fee, not exceeding $1,000, to be paid by the 
complainant.
  (4) If the Secretary has not issued a final decision within 
180 days after the filing of the complaint, or within 90 days 
after receiving a written determination, the complainant may 
bring an action at law or equity for de novo review in the 
appropriate district court of the United States with 
jurisdiction, which shall have jurisdiction over such an action 
without regard to the amount in controversy, and which action 
shall, at the request of either party to such action, be tried 
by the court with a jury. The proceedings shall be governed by 
the same legal burdens of proof specified in paragraph (2)(B). 
The court shall have jurisdiction to grant all appropriate 
relief to the employee available by law or equity, including 
injunctive relief, compensatory and consequential damages, 
reasonable attorneys and expert witness fees, court costs, and 
punitive damages up to $250,000.
  (5)(A) Any person adversely affected or aggrieved by a final 
order issued under paragraph (3) may obtain review of the order 
in the United States Court of Appeals for the circuit in which 
the violation, with respect to which the order was issued, 
allegedly occurred or the circuit in which the complainant 
resided on the date of such violation. The petition for review 
must be filed not later than 60 days after the date of the 
issuance of the final order of the Secretary. Review shall 
conform to chapter 7 of title 5, United States Code. The 
commencement of proceedings under this subparagraph shall not, 
unless ordered by the court, operate as a stay of the order.
  (B) An order of the Secretary with respect to which review 
could have been obtained under subparagraph (A) shall not be 
subject to judicial review in any criminal or other civil 
proceeding.
  (6) Whenever any person has failed to comply with an order 
issued under paragraph (3), the Secretary may file a civil 
action in the United States district court for the district in 
which the violation was found to occur, or in the United States 
district court for the District of Columbia, to enforce such 
order. In actions brought under this paragraph, the district 
courts shall have jurisdiction to grant all appropriate relief 
including, but not limited to, injunctive relief and 
compensatory damages.
  (7)(A) A person on whose behalf an order was issued under 
paragraph (3) may commence a civil action against the person to 
whom such order was issued to require compliance with such 
order. The appropriate United States district court shall have 
jurisdiction, without regard to the amount in controversy or 
the citizenship of the parties, to enforce such order.
  (B) The court, in issuing any final order under this 
paragraph, may award costs of litigation (including reasonable 
attorneys' and expert witness fees) to any party whenever the 
court determines such award is appropriate.
  (d) Any nondiscretionary duty imposed by this section shall 
be enforceable in a mandamus proceeding brought under section 
1361 of title 28, United States Code.
  (e) Subsection (a) shall not apply with respect to an 
employee of a manufacturer, private labeler, distributor, or 
retailer who, acting without direction from such manufacturer, 
private labeler, distributor, or retailer (or such person's 
agent), deliberately causes a violation of any requirement 
relating to any violation or alleged violation of any order, 
regulation, or consumer product safety standard under this Act 
or any other law enforced by the Commission.

                  ALL-TERRAIN VEHICLE SAFETY STANDARD.

  Sec. 41. (a) In General.--
          (1) Mandatory standard.--Notwithstanding any other 
        provision of law, within 90 days after the date of 
        enactment of the CPSC Reform Act of 2007 the Commission 
        shall publish in the Federal Register as a mandatory 
        consumer product safety standard the American National 
        Standard for Four Wheel All-Terrain Vehicles Equipment 
        Configuration, and Performance Requirements developed 
        by the Specialty Vehicle Institute of America (American 
        National Standard ANSI/SVIA-1-2007). The standard shall 
        take effect 150 days after it is published.
          (2) Compliance with standard.--After the standard 
        takes effect, it shall be unlawful for any manufacturer 
        or distributor to import into or distribute in commerce 
        in the United States any new assembled or unassembled 
        all-terrain vehicle unless--
                  (A) the vehicle complies with each applicable 
                provision of the standard;
                  (B) the vehicle is subject to an ATV action 
                plan filed with the Commission before January 
                1, 2008, or subsequently filed with and 
                approved by the Commission, and bears a label 
                certifying such compliance and identifying the 
                manufacturer, importer or private labeler and 
                the ATV action plan to which it is subject; and
                  (C) the manufacturer or distributor is in 
                compliance with all provisions of the 
                applicable ATV action plan.
          (3) Violation.--The failure to comply with any 
        requirement of paragraph (2) shall be deemed to be a 
        failure to comply with a consumer product safety rule 
        under this Act and subject to all of the penalties and 
        remedies available under this Act.
          (4) Compliant models with additional features.--
        Paragraph (2) shall not be construed to prohibit the 
        distribution in interstate commerce of new all-terrain 
        vehicles that comply with the requirements of that 
        paragraph but also incorporate characteristics or 
        components that are not covered by those requirements. 
        Any such characteristics or components shall be subject 
        to the requirements of section 15 of this Act.
  (b) Modification of All-Terrain Vehicle Safety Standard.--
          (1) ANSI revisions.--If the American National 
        Standard ANSI/SVIA-1-2007 is revised through the 
        applicable consensus standards development process 
        after the date on which the product safety standard for 
        all-terrain vehicles is published in the Federal 
        Register, the American National Standards Institute 
        shall notify the Commission of the revision.
          (2) Commission action.--Within 120 days after it 
        receives notice of such a revision by the American 
        National Standards Institute, the Commission shall 
        issue a notice of proposed rulemaking in accordance 
        with section 553 of title 5, United States Code, to 
        amend the product safety standard for all-terrain 
        vehicles to include any such revision that the 
        Commission determines is reasonably related to the safe 
        performance of all-terrain vehicles, and notify the 
        Institute of any provision it has determined not to be 
        so related. The Commission shall promulgate an 
        amendment to the standard for all-terrain vehicles 
        within 180 days after the date on which the notice of 
        proposed rulemaking for the amendment is published in 
        the Federal Register.
          (3) Unreasonable risk of injury.--Notwithstanding any 
        other provision of this Act, the Commission may, 
        pursuant to sections 7 and 9 of this Act, amend the 
        product safety standard for all-terrain vehicles to 
        include any additional provision that the Commission 
        determines is reasonably necessary to reduce an 
        unreasonable risk of injury associated with the 
        performance of all-terrain vehicles.
          (4) Certain provisions not applicable.--Sections 7, 
        9, 11, and 30(d) of this Act shall not apply to 
        promulgation of any amendment of the product safety 
        standard under paragraph (2). Judicial review of any 
        amendment of the standard under paragraph (2) shall be 
        in accordance with chapter 7 of title 5, United States 
        Code.
  (c) Requirements for 3-Wheeled All-Terrain Vehicles.--Until a 
mandatory consumer product safety rule applicable to 3-wheeled 
all-terrain vehicles promulgated pursuant to this Act is in 
effect, new 3-wheeled all-terrain vehicles may not be imported 
into or distributed in commerce in the United States. Any 
violation of this subsection shall be considered to be a 
violation of section 19(a)(1) of this Act and may also be 
enforced under section 17 of this Act.
  (d) Further Proceedings.--
          (1) Deadline.--The Commission shall issue a final 
        rule in its proceeding entitled ``Standards for All 
        Terrain Vehicles and Ban of Three-wheeled All Terrain 
        Vehicles''.
          (2) Categories of youth atvs.--In the final rule, the 
        Commission may provide for a multiple factor method of 
        categorization that, at a minimum, takes into account--
                  (A) the weight of the vehicle;
                  (B) the maximum speed of the vehicle;
                  (C) the velocity at which a vehicle of a 
                given weight is travelling at the maximum speed 
                of the vehicle;
                  (D) the age of children for whose operation 
                the vehicle is designed or who may reasonably 
                be expected to operate the vehicle; and
                  (E) the average weight of children for whose 
                operation the vehicle is designed or who may 
                reasonably be expected to operate the vehicle.
  (e) Definitions.--In this section:
          (1) All-terrain vehicle or atv.--The term ``all-
        terrain vehicle'' or ``ATV'' means--
                  (A) any motorized, off-highway vehicle 
                designed to travel on 3 or 4 wheels, having a 
                seat designed to be straddled by the operator 
                and handlebars for steering control; but
                  (B) does not include a prototype of a 
                motorized, off-highway, all-terrain vehicle or 
                other motorized, off-highway, all-terrain 
                vehicle that is intended exclusively for 
                research and development purposes unless the 
                vehicle is offered for sale.
          (2) ATV action plan.--The term ``ATV action plan'' 
        means a written plan or letter of undertaking that 
        describes actions the manufacturer or distributor 
        agrees to take to promote ATV safety, including rider 
        training, dissemination of safety information, age 
        recommendations, other policies governing marketing and 
        sale of the vehicles, the monitoring of such sales, and 
        other safety related measures, and that is 
        substantially similar to the plans described under the 
        heading The Undertakings of the Companies in the 
        Commission Notice published in the Federal Register on 
        September 9, 1998 (63 FR 48199-48204).

DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND 
INDEPENDENT AGENCIES APPROPRIATIONS ACT, 1993

           *       *       *       *       *       *       *


       CONSUMER PRODUCT SAFETY COMMISSION, SALARIES AND EXPENSES

  For necessary expenses of the Consumer Product Safety 
Commission, including hire of passenger motor vehicles, 
services as authorized by 5 U.S.C. 3109, but at rates for 
individuals not to exceed the per diem rate equivalent to the 
rate for GS-18, purchase of nominal awards to recognize non-
Federal officials' contributions to Commission activities, and 
not to exceed $500 for official reception and representation 
expenses, $48,400,000: [Provided, That funds shall not be 
available for the personnel compensation and benefits of more 
than three Commissioners of the Consumer Product Safety 
Commission for fiscal year 1993 and thereafter:] Provided 
further, That of the funds provided under this heading, 
$6,300,000 shall be for the relocation of the headquarters 
staff of the Commission and shall be available until expended.

FEDERAL REPORTS ELIMINATION AND SUNSET ACT OF 1995

           *       *       *       *       *       *       *


SEC. 3003 TERMINATION OF REPORTING REQUIREMENTS

                         [31 U.S.C. 1113 note]

  (a) Termination.--
          (1) In general.--Subject to the provisions of 
        paragraph (2) of this subsection and subsection (d), 
        each provision of law requiring the submittal to 
        Congress (or any committee of the Congress) of any 
        annual, semiannual, or other regular periodic report 
        specified on the list described under subsection (c) 
        shall cease to be effective, with respect to that 
        requirement, May 15, 2000.
          (2) Exception.--The provisions of paragraph (1) shall 
        not apply to any report required under--
                  (A) the Inspector General Act of 1978 (5 
                U.S.C. App.); or
                  (B) the Chief Financial Officers Act of 1990 
                (Public Law 101-576), including provisions 
                enacted by the amendments made by that Act.
  (b) Identification of wasteful reports.--The President shall 
include in the first annual budget submitted pursuant to 
section 1105 of title 31, United States Code, after the date of 
enactment of this Act a list of reports that the President has 
determined are unnecessary or wasteful and the reasons for such 
determination.
  (c) List of Reports.--The list referred to under subsection 
(a) is the list prepared by the Clerk of the House of 
Representatives for the first session of the One Hundred Third 
Congress under clause 2 of rule III of the Rules of the House 
of Representatives (House Document No. 103-7).
    (d) Specific Reports Exempted.--Subsection (a)(1) shall not 
apply to any report required under--
          (1) section 116 of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2151n);
          (2) section 306 of that Act (22 U.S.C. 2226);
          (3) section 489 of that Act (22 U.S.C. 2291h);
          (4) section 502B of that Act (22 U.S.C. 2304);
          (5) section 634 of that Act (22 U.S.C. 2394);
          (6) section 406 of the Foreign Relations 
        Authorization Act, Fiscal Years 1990 and 1991 (22 
        U.S.C. 2414a);
          (7) section 25 of the Arms Export Control Act (22 
        U.S.C. 2765);
          (8) section 28 of that Act (22 U.S.C. 2768);
          (9) section 36 of that Act (22 U.S.C. 2776);
          (10) section 6 of the Multinational Force and 
        Observers Participation Resolution (22 U.S.C. 3425);
          (11) section 104 of the FREEDOM Support Act (22 
        U.S.C. 5814);
          (12) section 508 of that Act (22 U.S.C. 5858);
          (13) section 4 of the War Powers Resolution (50 
        U.S.C. 1543);
          (14) section 204 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1703);
          (15) section 14 of the Export Administration Act of 
        1979 (50 U.S.C. App. 2413);
          (16) section 207 of the International Economic Policy 
        Act of 1972 (Public Law 92-412; 86 Stat. 648);
          (17) section 4 of Public Law 93-121 (87 Stat. 448);
          (18) section 108 of the National Security Act of 1947 
        (50 U.S.C. 404a);
          (19) section 704 of the Support for East European 
        Democracy (SEED) Act of 1989 (22 U.S.C. 5474);
          (20) section 804 of the Foreign Relations 
        Authorization Act, Fiscal Years 1990 and 1991 (Public 
        Law 101-246; 104 Stat. 72);
          (21) section 140 of the Foreign Relations 
        Authorization Act, Fiscal Years 1988 and 1989 (22 
        U.S.C. 2656f);
          (22) section 2 of the Act of September 21, 1950 
        (Chapter 976; 64 Stat. 903);
          (23) section 3301 of the Panama Canal Act of 1979 (22 
        U.S.C. 3871);
          (24) section 2202 of the Export Enhancement Act of 
        1988 (15 U.S.C. 4711);
          (25) section 1504 of Public Law 103-160 (10 U.S.C. 
        402 note);
          (26) section 502 of the International Security and 
        Development Coordination Act of 1985 (22 U.S.C. 2349aa-
        7);
          (27) section 23 of the Act of August 1, 1956 (Chapter 
        841; 22 U.S.C. 2694(2));
          (28) section 5(c)(5) of the Export Administration Act 
        of 1979 (50 U.S.C. App. 2404(c)(5));
          (29) section 14 of the Export Administration Act of 
        1979 (50 U.S.C. App. 2413);
          (30) section 50 of Public Law 87-297 (22 U.S.C. 
        2590);
          (31) section 240A of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2200a); [or]
          (32) section 27(k) of the Consumer Product Safety Act 
        (15 U.S.C. 2076(k); or
          [(32)] (33) section 604 of the United States 
        Information and Educational Exchange Act of 1948 (22 
        U.S.C. 1469).

                         FLAMMABLE FABRICS ACT

                              SHORT TITLE

                         [15 U.S.C. 1191 note]

  Section 1. This Act may be cited as the ``Flammable Fabrics 
Act''.

                              DEFINITIONS

                            [15 U.S.C. 1191]

  Sec. 2. As used in this Act--
  (a) The term ``person'' means an individual, partnership, 
corporation, association, or any other form of business 
enterprise.
  (b) The term ``commerce'' means commerce among the several 
States or with foreign nations or in any territory of the 
United States or in the District of Columbia or between any 
such territory and another, or between any such territory and 
any State or foreign nation, or between the District of 
Columbia or the Commonwealth of Puerto Rico and any State or 
territory or foreign nation, or between the Commonwealth of 
Puerto Rico and any State or territory or foreign nation or the 
District of Columbia.
  (c) The term ``territory'' includes the insular possessions 
of the United States and also any territory of the United 
States.
  (d) The term ``article of wearing apparel'' means any costume 
or article of clothing worn or intended to be worn by 
individuals.
  (e) The term ``interior furnishing'' means any type of 
furnishing made in whole or in part of fabric or related 
material and intended for use or which may reasonably be 
expected to be used, in homes, offices, or other places of 
assembly or accommodation.
  (f) The term ``fabric'' means any material (except fiber, 
filament, or yarn for other than retail sale) woven, knitted, 
felted, or otherwise produced from or in combination with any 
natural or synthetic fiber, film, or substitute therefor which 
is intended for use or which may reasonably be expected to be 
used, in any product as defined in subsection (h).
  (g) The term ``related material'' means paper, plastic, 
rubber, synthetic film, or synthetic foam which is intended for 
use or which may reasonably be expected to be used in any 
product as defined in subsection (h).
  (h) The term ``product'' means any article of wearing apparel 
or interior furnishing.
  [(i) The term ``Commission'' means the Federal Trade 
Commission.]
  (i) The term ``Commission'' means the Consumer Product Safety 
Commission.
  (j) The term ``Federal Trade Commission Act'' means the Act 
of Congress entitled ``An Act to create a Federal Trade 
Commission, to define its powers and duties, and for other 
purposes'' approved September 26, 1914, as amended.

                        PROHIBITED TRANSACTIONS

                            [15 U.S.C. 1192]

  Sec. 3. (a) The manufacture for sale, the sale, or the 
offering for sale, in commerce, or the importation into the 
United States, or the introduction, delivery for introduction, 
transportation or causing to be transported, in commerce, or 
the sale or delivery after a sale or shipment in commerce, of 
any product, fabric, or related material which fails to conform 
to an applicable standard or regulation issued or amended under 
the provisions of section 4 of this Act, shall be unlawful and 
shall be an unfair method of competition and an unfair and 
deceptive act or practice in commerce under the Federal Trade 
Commission Act.
  (b) The manufacture for sale, the sale, or the offering for 
sale, of any product made of fabric or related material which 
fails to conform to an applicable standard or regulation issued 
or amended under section 4 of this Act, and which has been 
shipped or received in commerce shall be unlawful and shall be 
an unfair method of competition and an unfair and deceptive act 
or practice in commerce under the Federal Trade Commission Act.

                    REGULATION OF FLAMMABLE FABRICS

                            [15 U.S.C. 1193]

  Sec. 4. (a) Whenever the [Secretary of Commerce] Commission 
finds on the basis of the investigations or research conducted 
pursuant to section 14 of this Act that a new or amended 
flammability standard or other regulation, including labeling, 
for a fabric, related material, or product may be needed to 
protect the public against unreasonable risk of the occurrence 
of fire leading to death or personal injury, or significant 
property damage, [he] it shall institute proceedings for the 
determination of an appropriate flammability standard 
(including conditions and manner of testing) or other 
regulation or amendment thereto for such fabric, related 
material, or product.
  (b) Each standard, regulation, or amendment thereto 
promulgated pursuant to this section shall be based on findings 
that such standard, regulation, or amendment thereto is needed 
to adequately protect the public against unreasonable risk of 
the occurrence of fire leading to death, injury, or significant 
property damage, is reasonable, technologically practicable, 
and appropriate, is limited to such fabrics, related materials, 
or products which have been determined to present such 
unreasonable risks, and shall be stated in objective terms. 
Each such standard, regulation, or amendment thereto, shall 
become effective twelve months from the date on which such 
standard, regulation, or amendment is promulgated, unless the 
[Secretary of Commerce] Commission finds for good cause shown 
that an earlier or later effective date is in the public 
interest and publishes the reason for such finding. Each such 
standard or regulation or amendment thereto shall exempt 
fabrics, related materials, or products in inventory or with 
the trade as of the date on which the standard, regulation, or 
amendment thereto, becomes effective except that, if the 
[Secretary] Commission finds that any such fabric, related 
material, or product is so highly flammable as to be dangerous 
when used by consumers for the purpose for which it is 
intended, [he] it may under such conditions as the [Secretary] 
Commission may prescribe, withdraw, or limit the exemption for 
such fabric, related material, or product.
  (c) The [Secretary of Commerce] Commission may obtain from 
any person by regulation or subpena issued pursuant thereto 
such information in the form of testimony, books, records, or 
other writings as is pertinent to the findings or 
determinations which [he] it is required or authorized to make 
pursuant to this Act. All information reported to or otherwise 
obtained by the [Secretary] Commission or [his] its 
representative pursuant to this subsection which information 
contains or relates to a trade secret or other matter referred 
to in section 1905 of title 18 of the United States Code, shall 
be considered confidential for the purpose of that section, 
except that such information may be disclosed to other officers 
or employees concerned with carrying out this Act or when 
relevant in any proceeding under this Act. Nothing in this 
section shall authorize the withholding of information by the 
[Secretary] Commission or any officer or employee under [his] 
its control, from the duly authorized committees of the 
Congress.
  (d) Standards, regulations, and amendments to standards and 
regulations under this section shall be made in accordance with 
section 553 of title 5, United States Code, except that 
interested persons shall be given an opportunity for the oral 
presentation of data, views, or arguments in addition to an 
opportunity to make written submissions. A transcript shall be 
kept of any oral presentation.
  (e)(1) Any person who will be adversely affected by any such 
standard or regulation or amendment thereto when it is 
effective may at any time prior to the sixtieth day after such 
standard or regulation or amendment thereto is issued file a 
petition with the United States court of appeals for the 
circuit wherein such person resides or has his principal place 
of business, for a judicial review thereof. A copy of the 
petition shall be forthwith transmitted by the clerk of the 
court to the [Secretary] Commission or other officer designated 
by [him] it for that purpose. The [Secretary] Commission 
thereupon shall file in the court the record of the proceedings 
on which the [Secretary] Commission based the standard or 
regulation, as provided in section 2112 of title 28 of the 
United States Code.
  (2) If the petitioner applies to the court for leave to 
adduce additional evidence, and shows to the satisfaction of 
the court that such additional evidence is material and that 
there were reasonable grounds for the failure to adduce such 
evidence in the proceeding before the [Secretary] Commission, 
the court may order such additional evidence (and evidence in 
rebuttal thereof) to be taken before the [Secretary] 
Commission, and to be adduced upon the hearing, in such manner 
and upon such terms and conditions as to the court may seem 
proper. The [Secretary] Commission may modify [his] its 
findings or make new findings, by reason of the additional 
evidence so taken, and [he] it shall file such modified or new 
findings, and [his] its recommendations, if any, for the 
modification or setting aside of [his] its original standard or 
regulation or amendment thereto, with the return of such 
additional evidence.
  (3) Upon the filing of the petition referred to in paragraph 
(1) of this subsection, the court shall have jurisdiction to 
review the standard or regulation in accordance with chapter 7 
of title 5 of the United States Code and to grant appropriate 
relief as provided in such chapter. The standard or regulation 
shall not be affirmed unless the findings required by the first 
sentence of subsection (b) are supported by substantial 
evidence on the record taken as a whole. For purposes of this 
paragraph, the term ``record'' means the standard or 
regulation, any notice published with respect to the 
promulgation of such standard or regulation, the transcript 
required by subsection (d) of any oral presentation, any 
written submission of interested parties, and any other 
information which the Commission considers relevant to such 
standard or regulation.
  (4) The judgment of the court affirming or setting aside, in 
whole or in part, any such standard or regulation of the 
[Secretary] Commission shall be final, subject to review by the 
Supreme Court of the United States upon certiorari or 
certification as provided in section 1254 of title 28 of the 
United States Code.
  [(5) Any action instituted under this subsection shall 
survive, notwithstanding any change in the person occupying the 
office of Secretary or any vacancy in such office.]
  [(6)] (5) The remedies provided for in this subsection shall 
be in addition to and not in substitution for any other 
remedies provided by law.
  (f) A certified copy of the transcript of the record and 
proceedings under subsection (e) shall be furnished by the 
[Secretary] Commission to any interested party at his request, 
and payment of the costs thereof, and shall be admissible in 
any criminal, exclusion of imports, or other proceeding arising 
under or in respect of this Act, irrespective of whether 
proceedings with respect to the standard or regulation or 
amendment thereto have previously been initiated or become 
final under subsection (e).
  (g) A proceeding for the promulgation of a regulation under 
this section for a fabric, related material, or product [shall 
be commenced] may be commenced by a notice of proposed 
rulemaking or by the publication in the Federal Register of an 
advance notice of proposed rulemaking which shall--
          (1) identify the fabric, related material, or product 
        and the nature of the risk of injury associated with 
        the fabric, related material, or product;
          (2) include a summary of each of the regulatory 
        alternatives under consideration by the Commission 
        (including voluntary standards);
          (3) include information with respect to any existing 
        standard known to the Commission which may be relevant 
        to the proceedings, together with a summary of the 
        reasons why the Commission believes preliminarily that 
        such standard does not eliminate or adequately reduce 
        the risk of injury identified in paragraph (1);
          (4) invite interested persons to submit to the 
        Commission, within such period as the Commission shall 
        specify in the notice (which period shall not be less 
        than 30 days or more than 60 days after the date of 
        publication of the notice), comments with respect to 
        the risk of injury identified by the Commission, the 
        regulatory alternatives being considered, and other 
        possible alternatives for addressing the risk;
          (5) invite any person (other than the Commission) to 
        submit to the Commission, within such period as the 
        Commission shall specify in the notice (which period 
        shall not be less than 30 days after the date of 
        publication of the notice), an existing standard or a 
        portion of a standard as a proposed regulation.
          (6) invite any person (other than the Commission) to 
        submit to the Commission, within such period as the 
        Commission shall specify in the notice (which period 
        shall not be less than 30 days after the date of 
        publication of the notice), a statement of intention to 
        modify or develop a voluntary standard to address the 
        risk of injury identified in paragraph (1) together 
        with a description of a plan to modify or develop the 
        standard.
The Commission shall transmit such notice within 10 calendar 
days to the Committee on Commerce, Science, and Transportation 
of the Senate and the Committee on Energy and Commerce of the 
House of Representatives.
  (h)(1) If the Commission determines that any standard 
submitted to it in response to an invitation in a notice 
published under subsection (g)(5) if promulgated (in whole, in 
part, or in combination with any other standard submitted to 
the Commission or any part of such a standard) as a regulation, 
would eliminate or adequately reduce the risk of injury 
identified in the notice provided under subsection (g)(1), the 
Commission may publish such standard, in whole, in part, or in 
such combination and with nonmaterial modifications, as a 
proposed regulation under this section.
  (2) If the Commission determines that--
          (A) compliance with any standard submitted to it in 
        response to an invitation in a notice published under 
        subsection (g)(6) is likely to result in the 
        elimination or adequate reduction of the risk of injury 
        identified in the notice, and
          (B) it is likely that there will be substantial 
        compliance with such standard,
the Commission shall terminate any proceeding to promulgate a 
regulation respecting such risk of injury and shall publish in 
the Federal Register a notice which includes the determination 
of the Commission and which notifies the public that the 
Commission will rely on the voluntary standard to eliminate or 
reduce the risk of injury, except that the Commission shall 
terminate any such proceeding and rely on a voluntary standard 
only if such voluntary standard is in existence. For purposes 
of this section, a voluntary standard shall be considered to be 
in existence when it is finally approved by the organization or 
other person which developed such standard, irrespective of the 
effective date of the standard. Before relying upon any 
voluntary consumer product safety standard, the Commission 
shall afford interested persons (including manufacturers, 
consumers, and consumer organizations) a reasonable opportunity 
to submit written comments regarding such standard. The 
Commission shall consider such comments in making any 
determination regarding reliance on the involved voluntary 
standard under this subsection.
  (3) The Commission shall devise procedures to monitor 
compliance with any voluntary standards--
          (A) upon which the Commission has relied under 
        paragraph (2) of this subsection;
          (B) which were developed with the participation of 
        the Commission; or
          (C) whose development the Commission has monitored.
  (i) No regulation may be proposed by the Commission under 
this section [unless, not less than 60 days after publication 
of the notice required in subsection (g), the] unless the 
Commission publishes in the Federal Register the text of the 
proposed rule, including any alternatives, which the Commission 
proposes to promulgate, together with a preliminary regulatory 
analysis containing--
          (1) a preliminary description of the potential 
        benefits and potential costs of the proposed 
        regulation, including any benefits or costs that cannot 
        be quantified in monetary terms, and an identification 
        of those likely to receive the benefits and bear the 
        costs;
          (2) a discussion of the reasons any standard or 
        portion of a standard submitted to the Commission under 
        subsection (g)(5) was not published by the Commission 
        as the proposed regulation or part of the proposed 
        regulation;
          (3) a discussion of the reasons for the Commission's 
        preliminary determination that efforts proposed under 
        subsection (g)(6) and assisted by the Commission as 
        required by section 5(a)(3) of the Consumer Product 
        Safety Act would not, within a reasonable period of 
        time, be likely to result in the development of a 
        voluntary standard that would eliminate or adequately 
        reduce the risk of injury identified in the notice 
        provided under subsection (g)(1); and
          (4) a description of any reasonable alternatives to 
        the proposed regulation, together with a summary 
        description of their potential costs and benefits, and 
        a brief explanation of why such alternatives should not 
        be published as a proposed regulation.
The Commission shall transmit such notice within 10 calendar 
days to the Committee on Commerce, Science, and Transportation 
of the Senate and the Committee on Energy and Commerce of the 
House of Representatives.
  (j)(1) The Commission shall not promulgate a regulation under 
this section unless it has prepared a final regulatory analysis 
of the regulation containing the following information:
          (A) A description of the potential benefits and 
        potential costs of the regulation, including costs and 
        benefits that cannot be quantified in monetary terms, 
        and the identification of those likely to receive the 
        benefits and bear the costs.
          (B) A description of any alternatives to the final 
        regulation which were considered by the Commission, 
        together with a summary description of their potential 
        benefits and costs and brief explanation of the reasons 
        why these alternatives were not chosen.
          (C) A summary of any significant issues raised by the 
        comments submitted during the public comment period in 
        response to the preliminary regulatory analysis, and a 
        summary of the assessment by the Commission of such 
        issues.
The Commission shall publish its final regulatory analysis with 
the regulation.
  (2) The Commission shall not promulgate a regulation under 
this section unless it finds (and includes such finding in the 
regulation)--
          (A) in the case of a regulation which relates to a 
        risk of injury with respect to which persons who would 
        be subject to such regulation have adopted and 
        implemented a voluntary standard, that--
                  (i) compliance with such voluntary standard 
                is not likely to result in the elimination or 
                adequate reduction of such risk of injury; or
                  (ii) it is unlikely that there will be 
                substantial compliance with such voluntary 
                standard;
          (B) that the benefits expected from the regulation 
        bear a reasonable relationship to its costs; and
          (C) that the regulation imposes the least burdensome 
        requirement which prevents or adequately reduces the 
        risk of injury for which the regulation is being 
        promulgated.
  (3)(A) Any regulatory analysis prepared under subsection (i) 
or paragraph (1) shall not be subject to independent judicial 
review, except that when an action for judicial review of a 
regulation is instituted, the contents of any such regulatory 
analysis shall constitute part of the whole rulemaking record 
of agency action in connection with such review.
  (B) The provisions of subparagraph (A) shall not be construed 
to alter the substantive or procedural standards otherwise 
applicable to judicial review of any action by the Commission.
  (k) The Commission shall grant, in whole or in part, or deny 
any petition under section 553(e) of title 5, United States 
Code, requesting the Commission to initiate a rulemaking, 
within a reasonable time after the date on which such petition 
is filed. The Commission shall state the reasons for granting 
or denying such petition. The Commission may not deny any such 
petition on the basis of a voluntary standard unless the 
voluntary standard is in existence at the time of the denial of 
the petition, the Commission has determined that the voluntary 
standard is likely to result in the elimination or adequate 
reduction of the risk of injury identified in the petition, and 
it is likely that there will be substantial compliance with the 
standard.

                     ADMINISTRATION AND ENFORCEMENT

                            [15 U.S.C. 1194]

  Sec. 5. (a) Except as otherwise specifically provided herein, 
sections 3, 5, 6, and 8(b) of this Act shall be enforced by the 
Commission under rules, regulations and procedures provided for 
in the Federal Trade Commission Act. In the case of an attorney 
general of a State alleging a violation of a standard or 
regulation under section 4 that affects or may affect such 
State or its residents, such attorney general may bring a civil 
action for an injunction to enforce the requirement of such 
standard or regulation. The procedural requirements of section 
24 of the Consumer Product Safety Act shall apply to any such 
action.
  (b) The Commission is authorized and directed to prevent any 
person from violating the provisions of section 3 of this Act 
in the same manner, by the same means and with the same 
jurisdiction, powers and duties as though all applicable terms 
and provisions of the Federal Trade Commission Act were 
incorporated into and made a part of this Act; and any such 
person violating any provision of section 3 of this Act shall 
be subject to the penalties and entitled to the privileges and 
immunities provided in said Federal Trade Commission Act as 
though the applicable terms and provisions of the said Federal 
Trade Commission Act were incorporated into and made a part of 
this Act.
  (c) The Commission is authorized and directed to prescribe 
such rules and regulations, including provisions for 
maintenance of records relating to fabrics, related materials, 
and products, as may be necessary and proper for administration 
and enforcement of this Act. The violation of such rules and 
regulations shall be unlawful and shall be an unfair method of 
competition and an unfair and deceptive act or practice, in 
commerce, under the Federal Trade Commission Act.
  (d) The Commission is authorized to--
          (1) cause inspections, analyses, tests, and 
        examinations to be made of any product, fabric or 
        related material which it has reason to believe falls 
        within the prohibitions of this Act; and
          (2) cooperate on matters related to the purposes of 
        this Act with any department or agency of the 
        Government; with any State or territory or with the 
        District of Columbia or the Commonwealth of Puerto 
        Rico; or with any department, agency, or political 
        subdivision thereof; or with any person.
  (e)(1) Any person who knowingly violates a regulation or 
standard under section 4 shall be subject to a civil penalty 
not to exceed [$5,000] $250,000 for each such violation, except 
that the maximum civil penalty shall not exceed [$1,250,000] 
$100,000,000 for any related series of violations.
  (2) In determining the amount of any penalty to be sought 
upon commencing an action seeking to assess a penalty for a 
violation of a regulation or standard under section 4, the 
Commission shall consider the nature and number of the 
violations, the severity of the risk of injury, the occurrence 
or absence of injury, and the appropriateness of such penalty 
in relation to the size of the business of the person charged.
  (3) Any civil penalty under this subsection may be 
compromised by the Commission. In determining the amount of 
such penalty or whether it should be remitted or mitigated, and 
in what amount, the Commission shall consider the nature and 
number of the violations, the appropriateness of such penalty 
to the size of the business of the persons charged, the 
severity of the risk of injury, and the occurrence or absence 
of injury. The amount of such penalty when finally determined, 
or the amount agreed on compromise, may be deducted from any 
sums owing by the United States to the person charged.
  (4) As used in paragraph (1), the term ``knowingly'' means 
(A) having actual knowledge, or (B) the presumed having of 
knowledge deemed to be possessed by a reasonable person who 
acts in the circumstances, including knowledge obtainable upon 
the exercise of due care to ascertain the truth of 
representations.
  (5)(A) The maximum penalty amounts authorized in paragraph 
(1) shall be adjusted for inflation as provided in this 
paragraph.
  (B) Not later than [December 1, 1994,] December 1, 2011, and 
December 1 of each fifth calendar year thereafter, the 
Commission shall prescribe and publish in the Federal Register 
a schedule of maximum authorized penalties that shall apply for 
violations that occur after January 1 of the year immediately 
following such publication.
  (C) The schedule of maximum authorized penalties shall be 
prescribed by increasing each of the amounts referred to in 
paragraph (1) by the cost-of-living adjustment for the 
preceding five years. Any increase determined under the 
preceding sentence shall be rounded to--
          (i) in the case of penalties greater than $1,000 but 
        less than or equal to $10,000, the nearest multiple of 
        $1,000;
          (ii) in the case of penalties greater than $10,000 
        but less than or equal to $100,000, the nearest 
        multiple of $5,000;
          (iii) in the case of penalties greater than $100,000 
        but less than or equal to $200,000, the nearest 
        multiple of $10,000; and
          (iv) in the case of penalties greater than $200,000, 
        the nearest multiple of $25,000.
  (D) For purposes of this subsection:
          (i) The term ``Consumer Price Index'' means the 
        Consumer Price Index for all-urban consumers published 
        by the Department of Labor.
          (ii) The term ``cost-of-living adjustment for the 
        preceding five years'' means the percentage by which--
                  (I) the Consumer Price Index for the month of 
                June of the calendar year preceding the 
                adjustment; exceeds
                  (II) the Consumer Price Index for the month 
                of June preceding the date on which the maximum 
                authorized penalty was last adjusted.

           *       *       *       *       *       *       *


                               PENALTIES

                            [15 U.S.C. 1196]

  [Sec. 7. Any person who willfully violates section 3 or 8(b) 
of this Act, or who fails to comply with section 15(c) of this 
Act, shall be guilty of a misdemeanor, and upon conviction 
thereof shall be fined not more than $5,000 or be imprisoned 
not more than one year or both in the discretion of the court: 
Provided, That nothing herein shall limit other provisions of 
this Act.]
  Sec. 7. Violation of section 3 or 8(b) of this Act, or 
failure to comply with section 15(c) of this Act, is punishable 
by--
          (1) imprisonment for not more than--
                  (A) 1 year for a knowing violation of that 
                section; or
                  (B) 5 years for a knowing and willful 
                violation of that section; and
          (2) a fine determined under section 3571 of title 18, 
        United States Code.

           *       *       *       *       *       *       *


                             INVESTIGATIONS

                            [15 U.S.C. 1201]

  Sec. 14. (a) The Secretary of Health, Education, and Welfare 
in cooperation with the [Secretary of Commerce] Commission 
shall conduct a continuing study and investigation of the 
deaths, injuries, and economic losses resulting from accidental 
burning of products, fabrics, or related materials.
  (b) In cooperation with appropriate public and private 
agencies, the [Secretary of Commerce] Commission is authorized 
to--
          (1) conduct research into the flammability of 
        products, fabrics, and materials;
          (2) conduct feasibility studies on reduction of 
        flammability of products, fabrics, and materials;
          (3) develop flammability test methods and testing 
        devices; and
          (4) offer appropriate training in the use of 
        flammability test methods and testing devices.5

                                EXPORTS

                            [15 U.S.C. 1202]

  Sec. 15. (a) This Act shall not apply to any fabric, related 
material, or product which is to be exported from the United 
States, if such fabric, related material, or product, and any 
container in which it is enclosed, bears a stamp or label 
stating that such fabric, related material, or product is 
intended for export and such fabric, related material, or 
product is in fact exported from the United States; unless the 
[Consumer Product Safety Commission (hereinafter in this 
section referred to as the ``Commission'')] Commission 
determines that exportation of such fabric, related material, 
or product presents an unreasonable risk of injury to persons 
residing within the United States; except that this Act shall 
apply to any fabric, related material, or product manufactured 
for sale, offered for sale, or intended for shipment to any 
installation of the United States located outside of the United 
States.
  (b) This Act shall not apply to any fabric, related material, 
or product which is imported into the United States for dyeing, 
finishing, other processing, or storage in bond, and export 
from the United States, if such fabric, related material, or 
product, any container in which it is enclosed, bears a stamp 
or label stating that such fabric, related material, or product 
is intended for export, and such fabric, related material, or 
product is in fact exported from the United States, unless the 
Commission determines that exportation of such fabric, related 
material, or product presents an unreasonable risk of injury to 
persons residing within the United States; except that this Act 
shall apply to any such imported fabric, related material, or 
product manufactured for sale, offered for sale, or intended 
for shipment to any installation of the United States located 
outside of the United States.
  (c) Not less than thirty days before any person exports to a 
foreign country any fabric, related material, or product that 
fails to conform to an applicable flammability standard or 
regulation in effect under this Act, such person shall file a 
statement with the Commission notifying the Commission of such 
exportation, and the Commission, upon receipt of such 
statement, shall promptly notify the government of such country 
of such exportation and the basis for such flammability 
standard or regulation. Any statement filed with the Commission 
under the preceding sentence shall specify the anticipated date 
of shipment of such fabric, related material, or product, the 
country and port of destination of such fabric, related 
material, or product, and the quantity of such fabric, related 
material, or product that will be exported, and shall contain 
such other information as the Commission may by regulation 
require. Upon petition filed with the Commission by any person 
required to file a statement under this subsection respecting 
an exportation, the Commission may, for good cause shown, 
exempt such person from the requirement of this subsection that 
such a statement be filed in no less than thirty days before 
the date of the exportation, except that in no case shall the 
Commission permit such a statement to be filed later than the 
tenth day before such date.
  (d) Notwithstanding any other provision of law, the Consumer 
Product Safety Commission may prohibit a person from exporting 
from the United States for purpose of sale any fabric, related 
material, or product that the Commission determines, after 
notice to the manufacturer--
          (1) is not in conformity with an applicable consumer 
        product safety standard under the Consumer Product 
        Safety Act or with a rule under this Act;
          (2) is subject to an order issued under section 12 or 
        15 of the Consumer Product Safety Act or designated as 
        a banned hazardous substance under the Federal 
        Hazardous Substances Act (15 U.S.C. 1261 et seq.); or
          (3) is subject to voluntary corrective action taken 
        by the manufacturer, in consultation with the 
        Commission, of which action the Commission has notified 
        the public and that would have been subject to 
        mandatory corrective action under this or another Act 
        enforced by the Commission if voluntary corrective 
        action had not been taken by the manufacturer.

                               PREEMPTION

                            [15 U.S.C. 1203]

  Sec. 16. (a) Except as provided in subsections (b) and (c), 
whenever a flammability standard or other regulation for a 
fabric, related material, or product is in effect under this 
Act, no State or political subdivision of a State may establish 
or continue in effect a flammability standard or other 
regulation for such fabric, related material, or product if the 
standard or other regulation is designed to protect against the 
same risk of occurrence of fire with respect to which the 
standard or other regulation under this Act is in effect unless 
the State or political subdivision standard or other regulation 
is identical to the Federal standard or other regulation.
  (b) The Federal Government and the government of any State or 
political subdivision of a State may establish and continue in 
effect a flammability standard or other regulation applicable 
to a fabric, related material, or product for its own use which 
standard or other regulation is designed to protect against a 
risk of occurrence of fire with respect to which a flammability 
standard or other regulation is in effect under this Act and 
which is not identical to such standard or other regulation if 
the Federal, State, or political subdivision standard or other 
regulation provides a higher degree of protection from such 
risk of occurrence of fire than the standard or other 
regulation in effect under this Act.
  (c)(1) Upon application of a State or political subdivision 
of a State, the Commission may, by regulation promulgated in 
accordance with paragraph (2), exempt from subsection (a), 
under such conditions as may be prescribed in such regulation, 
any flammability standard or other regulation of such State or 
political subdivision applicable to a fabric, related material, 
or product subject to a standard or other regulation in effect 
under this Act, if--
          (A) compliance with the State or political 
        subdivision requirement would not cause the fabric, 
        related material, or product to be in violation of the 
        standard or other regulation in effect under this Act, 
        and
          (B) the State or political subdivision standard or 
        other regulation (i) provides a significantly higher 
        degree of protection from the risk of occurrence of 
        fire with respect to which the Federal standard or 
        other regulation is in effect, and (ii) does not unduly 
        burden interstate commerce.
In determining the burden, if any, of a State or political 
subdivision flammability standard or other regulation on 
interstate commerce the Commission shall consider and make 
appropriate (as determined by the Commission in its discretion) 
findings on the technological and economic feasibility of 
complying with such flammability standard or other regulation, 
the cost of complying with such flammability standard or other 
regulation, the geographic distribution of the fabric, related 
material, or product to which the flammability standard or 
other regulation would apply, the probability of other States 
or political subdivisions applying for an exemption under this 
subsection for a similar flammability standard or other 
regulation, and the need for a national, uniform flammability 
standard or other regulation under this Act for such fabric, 
related material, or product.
  (2) A regulation under paragraph (1) granting an exemption 
for a flammability standard or other regulation of a State or 
political subdivision of a State may be promulgated by the 
Commission only after it has provided, in accordance with 
section 553(b) of title 5, United States Code, notice with 
respect to the promulgation of the regulation and has provided 
opportunity for the oral presentation of views respecting its 
promulgation.
  [(d) For purposes of this section--
          [(1) a reference to a flammability standard or other 
        regulation for a fabric, related material, or product 
        in effect under this Act includes a standard of 
        flammability continued in effect by section 11 of the 
        Act of December 14, 1967 (Public Law 90-189); and
          [(2) the term ``Commission'' means the Consumer 
        Product Safety Commission.]
  (d) In this section, a reference to a flammability standard 
or other regulation for a fabric, related material, or product 
in effect under this Act includes a standard of flammability 
continued in effect by section 11 of the Act of December 14, 
1967 (Public Law 90-189).

POISON PREVENTION PACKAGING ACT OF 1970

           *       *       *       *       *       *       *


                     [SPECIAL PACKAGING STANDARDS]

                            [15 U.S.C. 1472]

  Sec. 3. (a) The Secretary, may establish in accordance with 
the provisions of this Act, by regulation, standards for the 
special packaging of any household substance if he finds that--
          (1) the degree or nature of the hazard to children in 
        the availability of such substance, by reason of its 
        packaging, is such that special packaging is required 
        to protect children from serious personal injury or 
        serious illness resulting from handling, using, or 
        ingesting such substance; and
          (2) the special packaging to be required by such 
        standard is technically feasible, practicable, and 
        appropriate for such substance.
  (b) In establishing a standard under this section, the 
Secretary shall consider--
          (1) the reasonableness of such standard;
          (2) available scientific, medical, and engineering 
        data concerning special packaging and concerning 
        childhood accidental ingestions, illness, and injury 
        caused by household substances;
          (3) the manufacturing practices of industries 
        affected by this Act; and
          (4) the nature and use of the household substance.
  (c) In carrying out this Act, the Secretary shall publish his 
findings, his reasons therefor, and citation of the sections of 
statutes which authorize his action.
  (d) Nothing in this Act shall authorize the Secretary to 
prescribe specific packaging designs, product content, package 
quantity, or, with the exception of authority granted in 
section 4(a)(2) of this Act, labeling. In the case of a 
household substance for which special packaging is required 
pursuant to a regulation under this section, the Secretary may 
in such regulation prohibit the packaging of such substance in 
packages which he determines are unnecessarily attractive to 
children.
  (e) Nothing in this Act shall be construed to require the 
Secretary, in establishing a standard under this section, to 
prepare a comparison of the costs that would be incurred in 
complying with such standard with the benefits of such 
standard.

                    FEDERAL HAZARDOUS SUBSTANCES ACT

                              SHORT TITLE

                         [15 U.S.C. 1261 note]

  Section 1. This Act may be cited as the ``Federal Hazardous 
Substances Act''.

                              DEFINITIONS

                            [15 U.S.C. 1261]

  Sec. 2. For the purposes of this Act--
  (a) The term ``territory'' means any territory or possession 
of the United States, including the District of Columbia and 
the Commonwealth of Puerto Rico but excluding the Canal Zone.
  (b) The term ``interstate commerce'' means (1) commerce 
between any State or territory and any place outside thereof, 
and (2) commerce within the District of Columbia or within any 
territory not organized with a legislative body.
  [(c) The term ``Department'' means the Department of Health, 
Education, and Welfare.]
  [(d) The term ``Secretary'' means the Secretary of Health, 
Education, and Welfare.]
  (c) The term ``Commission'' means the Consumer Product Safety 
Commission.
  (e) The term ``person'' includes an individual, partnership, 
corporation, and association.
  (f) The term ``hazardous substance'' means:
          1. (A) Any substance or mixture of substances which 
        (i) is toxic, (ii) is corrosive, (iii) is an irritant, 
        (iv) is a strong sensitizer, (v) is flammable or 
        combustible, or (vi) generates pressure through 
        decomposition, heat, or other means, if such substance 
        or mixture of substances may cause substantial personal 
        injury or substantial illness during or as a proximate 
        result of any customary or reasonably foreseeable 
        handling or use, including reasonably foreseeable 
        ingestion by children.
          (B) Any substances which the [Secretary] Commission 
        by regulation finds, pursuant to the provisions of 
        section 3(a), meet the requirements of subparagraph 
        1(A) of this paragraph.
          (C) Any radioactive substance, if, with respect to 
        such substance as used in a particular class of article 
        or as packaged, the [Secretary] Commission determines 
        by regulation that the substance is sufficiently 
        hazardous to require labeling in accordance with this 
        Act in order to protect the public health.
          (D) Any toy or other article intended for use by 
        children which the [Secretary] Commission by regulation 
        determines, in accordance with section 3(e) of this 
        Act, presents an electrical, mechanical, or thermal 
        hazard.
          (E) Any solder which has a lead content in excess of 
        0.2 percent.
          2. The term ``hazardous substance'' shall not apply 
        to pesticides subject to the Federal Insecticide, 
        Fungicide, and Rodenticide Act, nor to foods, drugs, 
        and cosmetics subject to the Federal Food, Drug, and 
        Cosmetic Act, nor to substances intended for use as 
        fuels when stored in containers and used in the 
        heating, cooking, or refrigeration system of a house, 
        nor to tobacco and tobacco products, but such term 
        shall apply to any article which is not itself a 
        pesticide within the meaning of the Federal 
        Insecticide, Fungicide, and Rodenticide Act but which 
        is a hazardous substance within the meaning of 
        subparagraph 1 of this paragraph by reason of bearing 
        or containing such an economic poison.
          3. The term ``hazardous substance'' shall not include 
        any source material, special nuclear material, or 
        byproduct material as defined in the Atomic Energy Act 
        of 1954, as amended, and regulations issued pursuant 
        thereto by the Atomic Energy Commission.
  (g) The term ``toxic'' shall apply to any substance (other 
than a radioactive substance) which has the capacity to produce 
personal injury or illness to man through ingestion, 
inhalation, or absorption through any body surface.
  (h)(1) The term ``highly toxic'' means any substance which 
falls within any of the following categories: (a) Produces 
death within fourteen days in half or more than half of a group 
of ten or more laboratory white rats each weighing between two 
hundred and three hundred grams, at a single dose of fifty 
milligrams or less per kilogram of body weight, when orally 
administered; or (b) produces death within fourteen days in 
half or more than half of a group of ten or more laboratory 
white rats each weighing between two hundred and three hundred 
grams, when inhaled continuously for a period of one hour or 
less at an atmospheric concentration of two hundred parts per 
million by volume or less of gas or vapor or two milligrams per 
liter by volume or less of mist or dust, provided such 
concentration is likely to be encountered by man when the 
substance is used in any reasonably foreseeable manner; or (c) 
produces death within fourteen days in half or more than half 
of a group of ten or more rabbits tested in a dosage of two 
hundred milligrams or less per kilogram of body weight, when 
administered by continuous contact with the bare skin for 
twenty-four hours or less.
  (2) If the [Secretary] Commission finds that available data 
on human experience with any substance indicate results 
different from those obtained on animals in the above-named 
dosages or concentrations, the human data shall take 
precedence.
  (i) The term ``corrosive'' means any substance which in 
contact with living tissue will cause destruction of tissue by 
chemical action; but shall not refer to action on inanimate 
surfaces.
  (j) The term ``irritant'' means any substance not corrosive 
within the meaning of subparagraph (i) which on immediate, 
prolonged, or repeated contact with normal living tissue will 
induce a local inflammatory reaction.
  (k) The term ``strong sensitizer'' means a substance which 
will cause on normal living tissue through an allergic or 
photodynamic process a hypersensitivity which becomes evident 
on reapplication of the same substance and which is designated 
as such by the [Secretary] Commission. Before designating any 
substance as a strong sensitizer, the [Secretary] Commission, 
upon consideration of the frequency of occurrence and severity 
of the reaction, shall find that the substance has a 
significant potential for causing hypersensitivity.
  (l)(1) The terms ``extremely flammable'', ``flammable'', and 
``combustible'' as applied to any substance, liquid, solid, or 
the content of a self-publicized container shall be defined by 
regulations issued by the Commission.
  (2) The test methods found by the Commission to be generally 
applicable for defining the flammability or combustibility 
characteristics of any such substance shall also be specified 
in such regulations.
  (3) In establishing definitions and test methods related to 
flammability and combustibility, the Commission shall consider 
the existing definitions and test methods of other Federal 
agencies involved in the regulation of flammable and 
combustible substances in storage, transportation and use; and 
to the extent possible, shall establish compatible definitions 
and test methods.
  (4) Until such time as the Commission issues a regulation 
under paragraph (1) defining the term ``combustible'' as 
applied to liquids, such term shall apply to any liquid which 
has a flash point above eighty degrees Fahrenheit to and 
including one hundred and fifty degrees, as determined by the 
Tagliabue Open Cup Tester.
  (m) The term ``radioactive substance'' means a substance 
which emits ionizing radiation.
  (n) The term ``label'' means a display of written, printed, 
or graphic matter upon the immediate container of any substance 
or, in the case of an article which is unpackaged or is not 
packaged in an immediate container intended or suitable for 
delivery to the ultimate consumer, a display of such matter 
directly upon the article involved or upon a tag or other 
suitable material affixed thereto; and a requirement made by or 
under authority of this Act that any word, statement, or other 
information appearing on the label shall not be considered to 
be complied with unless such word, statement, or other 
information also appears (1) on the outside container or 
wrapper, if any there be, unless it is easily legible through 
the outside container or wrapper and (2) on all accompanying 
literature where there are directions for use, written or 
otherwise.
  (o) The term ``immediate container'' does not include package 
liners.
  (p) The term ``misbranded hazardous substance'' means a 
hazardous substance (including a toy, or other article intended 
for use by children, which is a hazardous substance, or which 
bears or contains a hazardous substance in such manner as to be 
susceptible of access by a child to whom such toy or other 
article is entrusted) intended, or packaged in a form suitable, 
for use in the household or by children, if the packaging or 
labeling of such substance is in violation of an applicable 
regulation issued pursuant to section 3 or 4 of the Poison 
Prevention Packaging Act of 1970 or if such substance, except 
as otherwise provided by or pursuant to section 3, fails to 
bear a label--
          (1) which states conspicuously (A) the name and place 
        of business of the manufacturer, packer, distributor or 
        seller; (B) the common or usual name or the chemical 
        name (if there be no common or usual name) of the 
        hazardous substance or of each component which 
        contributes substantially to its hazard, unless the 
        [Secretary] Commission by regulation permits or 
        requires the use of a recognized generic name; (C) the 
        signal word ``DANGER'' on substances which are 
        extremely flammable, corrosive, or highly toxic, (D) 
        the signal word ``WARNING'' or ``CAUTION'' on all other 
        hazardous substances; (E) an affirmative statement of 
        the principal hazard or hazards, such as ``Flammable'', 
        ``Combustible,'' ``Vapor Harmful'', ``Causes Burns'', 
        ``Absorbed Through Skin'', or similar wording 
        descriptive of the hazard; (F) precautionary measures 
        describing the action to be followed or avoided, except 
        when modified by regulation of the [Secretary] 
        Commission pursuant to section 3; (G) instruction, when 
        necessary or appropriate, for first-aid treatment; (H) 
        the word ``poison'' for any hazardous substance which 
        is defined as ``highly toxic'' by subsection (h); (I) 
        instructions for handling and storage of packages which 
        require special care in handling or storage; and (J) 
        the statement (i) ``Keep out of the reach of children'' 
        or its practical equivalent, or, (ii) if the article is 
        intended for use by children and is not a banned 
        hazardous substance, adequate directions for the 
        protection of children from the hazard, and
          (2) on which any statements required under 
        subparagraph (1) of this paragraph are located 
        prominently and are in the English language in 
        conspicuous and legible type in contrast by typography, 
        layout, or color with other printed matter on the 
        label.
The term ``misbranded hazardous substance'' also includes a 
household substance as defined in section 2(2)(D) of the Poison 
Prevention Packaging Act of 1970 if it is a substance described 
in paragraph 1 of section 2(f) of this Act and its packaging or 
labeling is in violation of an applicable regulation issued 
pursuant to section 3 or 4 of the Poison Prevention Packaging 
Act of 1970.
  (q)(1) The term ``banned hazardous substance'' means (A) any 
toy, or other article intended for use by children, which is a 
hazardous substance, or which bears or contains a hazardous 
substance in such manner as to be susceptible of access by a 
child to whom such toy or other article is entrusted; or (B) 
any hazardous substance intended, or packaged in a form 
suitable, for use in the household, which the [Secretary] 
Commission by regulation classifies as a ``banned hazardous 
substance'' on the basis of a finding that, notwithstanding 
such cautionary labeling as is or may be required under this 
Act for that substance, the degree or nature of the hazard 
involved in the presence or use of such substance in households 
is such that the objective of the protection of the public 
health and safety can be adequately served only by keeping such 
substance, when so intended or packaged, out of the channels of 
interstate commerce: Provided, That the [Secretary] Commission, 
by regulation, (i) shall exempt from clause (A) of this 
paragraph articles, such as chemical sets, which by reason of 
their functional purpose require the inclusion of the hazardous 
substance involved, or necessarily present an electrical, 
mechanical, or thermal hazard and which bear labeling giving 
adequate directions and warnings for safe use and are intended 
for use by children who have attained sufficient maturity, and 
may reasonably be expected, to read and heed such directions 
and warnings, and (ii) shall exempt from clause (A), and 
provide for the labeling of, common fireworks (including toy 
paper caps, cone fountains, cylinder fountains, whistles 
without report, and sparklers) to the extent that [he] it 
determines that such articles can be adequately labeled to 
protect the purchasers and users thereof.
  (2) [Proceedings for the issuance, amendment, or repeal of 
regulations pursuant to clause (B) of subparagraph (1) of this 
paragraph shall be governed by the provisions of sections 701 
(e), (f), and (g) of the Federal Food, Drug, and Cosmetic Act: 
Provided, That if] Proceedings for the issuance, amendment, or 
repeal of regulations pursuant to clause (B) of subparagraph 
(1) of this paragraph shall be governed by the provisions of 
subsections (f) through (i) of section 3 of this Act, except 
that if the [Secretary] Commission finds that the distribution 
for household use of the hazardous substance involved presents 
an imminent hazard to the public health, [he] it may by order 
published in the Federal Register give notice of such finding, 
and thereupon such substance when intended or offered for 
household use, or when so packaged as to be suitable for such 
use, shall be deemed to be a ``banned hazardous substance'' 
pending the completion of proceedings relating to the issuance 
of such regulations.
  (r) An article may be determined to present an electrical 
hazard if, in normal use or when subjected to reasonably 
foreseeable damage or abuse, its design or manufacture may 
cause personal injury or illness by electric shock.
  (s) An article may be determined to present a mechanical 
hazard if, in normal use or when subjected to reasonably 
foreseeable damage or abuse, its design or manufacture presents 
an unreasonable risk of personal injury or illness (1) from 
fracture, fragmentation, or disassembly of the article, (2) 
from propulsion of the article (or any part or accessory 
thereof), (3) from points or other protrusions, surfaces, 
edges, openings, or closures, (4) from moving parts, (5) from 
lack or insufficiency of controls to reduce or stop motion, (6) 
as a result of self-adhering characteristics of the article, 
(7) because the article (or any part or accessory thereof) may 
be aspirated or ingested, (8) because of instability, or (9) 
because of any other aspect of the article's design or 
manufacture.
  (t) An article may be determined to present a thermal hazard 
if, in normal use or when subjected to reasonably foreseeable 
damage or abuse, its design or manufacture presents an 
unreasonable risk of personal injury or illness because of heat 
as from heated parts, substances, or surfaces.

REGULATIONS DECLARING HAZARDOUS SUBSTANCES AND ESTABLISHING VARIATIONS 
                             AND EXEMPTIONS

                            [15 U.S.C. 1262]

  Sec. 3. [(a) 1. Whenever in the judgment of the Secretary 
such action will promote the objectives of this Act by avoiding 
or resolving uncertainty as to its application, the Secretary 
may by regulation declare to be a hazardous substance, for the 
purposes of this Act, any substance or mixture of substances 
which he finds meets the requirements of subparagraph (1)(A) of 
section 2(f).
  [2. Proceedings for the issuance, amendment, or repeal of 
regulations under this subsection and the admissibility of the 
record of such proceedings in other proceedings, shall in all 
respects be governed by the provisions of sections 701(e), (f), 
and (g) of the Federal Food, Drug, and Cosmetic Act, except 
that--
          [(A) the Secretary's order after public hearing 
        (acting upon objections filed to an order made prior to 
        hearing) shall be subject to the requirements of 
        section 409(f)(2) of the Federal Food, Drug, and 
        Cosmetic Act; and
          [(B) the scope of judicial review of such order shall 
        be in accordance with the fourth sentence of paragraph 
        (2), and with the provisions of paragraph (3), of 
        section 409(g) of the Federal Food, Drug, and Cosmetic 
        Act.]
  (a) Rulemaking.--
          (1) In general.--Whenever in the judgment of the 
        Commission such action will promote the objectives of 
        this Act by avoiding or resolving uncertainty as to its 
        application, the Commission may by regulation declare 
        to be a hazardous substance, for the purposes of this 
        Act, any substance or mixture of substances, which it 
        finds meets the requirements of section 2(f)(1)(A).
          (2) Procedure.--Proceedings for the issuance, 
        amendment, or repeal of regulations under this 
        subsection and the admissibility of the record of such 
        proceedings in other proceedings, shall be governed by 
        the provisions of subsections (f) through (i) of this 
        section.
  (b) If the [Secretary] Commission finds that the requirements 
of section 2(p)(1) are not adequate for the protection of the 
public health and safety in view of the special hazard 
presented by any particular hazardous substance, [he] it may by 
regulation establish such reasonable variations or additional 
label requirements as [he] it finds necessary for the 
protection of the public health and safety; and any such 
hazardous substance intended, or packaged in a form suitable, 
for use in the household or by children, which fails to bear a 
label in accordance with such regulations shall be deemed to be 
a misbranded hazardous substance.
  (c) If the [Secretary] Commission finds that, because of the 
size of the package involved or because of the minor hazard 
presented by the substance contained therein, or for other good 
and sufficient reasons, full compliance with the labeling 
requirements otherwise applicable under this Act is 
impracticable or is not necessary for the adequate protection 
of the public health and safety, the [Secretary] Commission 
shall promulgate regulations exempting such substance from 
these requirements to the extent [he] it determines to be 
consistent with adequate protection of the public health and 
safety.
  (d) The [Secretary] Commission may exempt from the 
requirements established by or pursuant to this Act any 
hazardous substance or container of a hazardous substance with 
respect to which [he] it finds that adequate requirements 
satisfying the purposes of this Act have been established by or 
pursuant to any other Act of Congress.
  (e)(1) A determination by the [Secretary] Commission that a 
toy or other article intended for use by children presents an 
electrical, mechanical, or thermal hazard shall be made by 
regulation in accordance with the procedures prescribed by 
section 553 (other than clause (B) of the last sentence of 
subsection (b) of such section) of title 5 of the United States 
Code unless the [Secretary] Commission elects the procedures 
prescribed by subsection (e) of section 701 of the Federal 
Food, Drug, and Cosmetic Act, in which event such subsection 
and subsections (f) and (g) of such section 701 shall apply to 
the making of such determination. If the [Secretary] Commission 
makes such election, [he] it shall publish that fact with the 
proposal required to be published under paragraph (1) of such 
subsection (e).
  (2) If, before or during a proceeding pursuant to paragraph 
(1) of this subsection, the [Secretary] Commission finds that, 
because of an electrical, mechanical, or thermal hazard, 
distribution of the toy or other article involved presents an 
imminent hazard to the public health and [he] it, by order 
published in the Federal Register, gives notice of such 
finding, such toy or other article shall be deemed to be a 
banned hazardous substance for purposes of this Act until the 
proceeding has been completed. If not yet initiated when such 
order is published, such a proceeding shall be initiated as 
promptly as possible.
  (3)(A) In the case of any toy or other article intended for 
use by children which is determined by the [Secretary] 
Commission, in accordance with section 553 of title 5 of the 
United State Code, to present an electrical, mechanical, or 
thermal hazard, any person who will be adversely affected by 
such a determination may, at any time prior to the 60th day 
after the regulation making such determination is issued by the 
[Secretary] Commission, file a petition with the United States 
Court of Appeals for the circuit in which such person resides 
or has his principal place of business for a judicial review of 
such determination. A copy of the petition shall be forthwith 
transmitted by the clerk of the court to the [Secretary] 
Commission or other officer designated by him for that purpose. 
The [Secretary] Commission shall file in the court the record 
of the proceedings on which the [Secretary] Commission based 
[his] its determination, as provided in section 2112 of title 
28 of the United States Code.
  (B) If the petitioner applies to the court for leave to 
adduce additional evidence, and shows to the satisfaction of 
the court that such additional evidence is material and that 
there was no opportunity to adduce such evidence in the 
proceeding before the [Secretary] Commission, the court may 
order such additional evidence (and evidence in rebuttal 
thereof) to be taken before the [Secretary] Commission in a 
hearing or in such other manner, and upon such terms and 
conditions, as to the court may seem proper. The [Secretary] 
Commission may modify [his] its findings as to the facts, or 
make new findings, by reason of the additional evidence so 
taken, and [he] it shall file such modified or new findings, 
and [his] its recommendation, if any, for the modification or 
setting aside of [his] its original determination, with the 
return of such additional evidence.
  (C) Upon the filing of the petition under this paragraph, the 
court shall have jurisdiction to review the determination of 
the [Secretary] Commission in accordance with subparagraphs 
(A), (B), (C), and (D) of paragraph (2) of the second sentence 
of section 706 of title 5 of the United States Code. If the 
court ordered additional evidence to be taken under 
subparagraph (B) of this paragraph, the court shall also review 
the [Secretary's] Commission's determination to determine if, 
on the basis of the entire record before the court pursuant to 
subparagraphs (A) and (B) of this paragraph, it is supported by 
substantial evidence. If the court finds the determination is 
not so supported, the court may set it aside. With respect to 
any determination reviewed under this paragraph, the court may 
grant appropriate relief pending conclusion of the review 
proceedings, as provided in section 705 of such title.
  (D) The judgment of the court affirming or setting aside, in 
whole or in part, any such determination of the [Secretary] 
Commission shall be final, subject to review by the Supreme 
Court of the United States upon certiorari or certification, as 
provided in section 1254 of title 28 of the United States Code.
  (f) A proceeding for the promulgation of a regulation under 
section 2(q)(1) classifying an article or substance as a banned 
hazardous substance or a regulation under subsection (e) of 
this section [shall be commenced] may be commenced by the 
publication in the Federal Register of an advance notice of 
proposed rulemaking which shall--
          (1) identify the article or substance and the nature 
        of the risk of injury associated with the article or 
        substance;
          (2) include a summary of each of the regulatory 
        alternatives under consideration by the Commission 
        (including voluntary standards);
          (3) include information with respect to any existing 
        standard known to the Commission which may be relevant 
        to the proceedings, together with a summary of the 
        reasons why the Commission believes preliminarily that 
        such standard does not eliminate or adequately reduce 
        the risk of injury identified in paragraph (1);
          (4) invite interested persons to submit to the 
        Commission, within such period as the Commission shall 
        specify in the notice (which period shall not be less 
        than 30 days or more than 60 days after the date of 
        publication of the notice), comments with respect to 
        the risk of injury identified by the Commission, the 
        regulatory alternatives being considered, and other 
        possible alternatives for addressing the risk;
          (5) invite any person (other than the Commission) to 
        submit to the Commission, within such period as the 
        Commission shall specify in the notice (which period 
        shall not be less than 30 days after the date of 
        publication of the notice), an existing standard or a 
        portion of a standard as a proposed regulation under 
        section 2(q)(1) or subsection (e) of this section; and
          (6) invite any person (other than the Commission) to 
        submit to the Commission, within such period as the 
        Commission shall specify in the notice (which period 
        shall not be less than 30 days after the date of 
        publication of the notice), a statement of intention to 
        modify or develop a voluntary standard to address the 
        risk of injury identified in paragraph (1) together 
        with a description of a plan to modify or develop the 
        standard.

The Commission shall transmit such notice within 10 calendar 
days to the Committee on Commerce, Science, and Transportation 
of the Senate and the Committee on Energy and Commerce of the 
House of Representatives.
  (g)(1) If the Commission determines that any standard 
submitted to it in response to an invitation in a notice 
published under subsection (f)(5) if promulgated (in whole, in 
part, or in combination with any other standard submitted to 
the Commission or any part of such a standard) as a regulation 
under section 2(q)(1) or subsection (e) of this section, as the 
case may be, would eliminate or adequately reduce the risk of 
injury identified [in the notice] in a notice provided under 
subsection (f)(1), the Commission may publish such standard, in 
whole, in part, or in such combination and with nonmaterial 
modifications, as a proposed regulation under such section or 
subsection.
  (2) If the Commission determines that--
          (A) compliance with any standard submitted to it in 
        response to an invitation in a notice published under 
        subsection (f)(6) is likely to result in the 
        elimination or adequate reduction of the risk of injury 
        identified in the notice, and
          (B) it is likely that there will be substantial 
        compliance with such standard,

the Commission shall terminate any proceeding to promulgate a 
regulation under section 2(q)(1) or subsection (e) of this 
section, respecting such risk of injury and shall publish in 
the Federal Register a notice which includes the determination 
of the Commission and which notifies the public that the 
Commission will rely on the voluntary standard to eliminate or 
reduce the risk of injury, except that the Commission shall 
terminate any such proceeding and rely on a voluntary standard 
only if such voluntary standard is in existence. For purposes 
of this section, a voluntary standard shall be considered to be 
in existence when it is finally approved by the organization or 
other person which developed such standard, irrespective of the 
effective date of the standard. Before relying upon any 
voluntary standard, the Commission shall afford interested 
persons (including manufacturers, consumers, and consumer 
organizations) a reasonable opportunity to submit written 
comments regarding such standard. The Commission shall consider 
such comments in making any determination regarding reliance on 
the involved voluntary standard under this subsection.
  (3) The Commission shall devise procedures to monitor 
compliance with any voluntary standards--
          (A) upon which the Commission has relied under 
        paragraph (2) of this subsection;
          (B) which were developed with the participation of 
        the Commission; or
          (C) whose development the Commission has monitored.
  (h) No regulation under section 2(q)(1) classifying an 
article or substance as a banned hazardous substance and no 
regulation under subsection (e) of this section may be proposed 
by the Commission [unless, not less than 60 days after 
publication of the notice required in subsection (f), the] 
unless the Commission publishes in the Federal Register the 
text of the proposed rule, including any alternatives which the 
Commission proposes to promulgate, together with a preliminary 
regulatory analysis containing--
          (1) a preliminary description of the potential 
        benefits and potential costs of the proposed 
        regulation, including any benefits or costs that cannot 
        be quantified in monetary terms, and an identification 
        of those likely to receive the benefits and bear the 
        costs;
          (2) a discussion of the reasons any standard or 
        portion of a standard submitted to the Commission under 
        subsection (f)(5) was not published by the Commission 
        as the proposed regulation or part of the proposed 
        regulation;
          (3) a discussion of the reasons for the Commission's 
        preliminary determination that efforts proposed under 
        subsection (f)(6) and assisted by the Commission as 
        required by section 5(a)(3) of the Consumer Product 
        Safety Act would not, within a reasonable period of 
        time, be likely to result in the development of a 
        voluntary standard that would eliminate or adequately 
        reduce the risk of injury identified in the notice 
        provided under subsection (f)(1); and
          (4) a description of any reasonable alternatives to 
        the proposed regulation, together with a summary 
        description of their potential costs and benefits, and 
        a brief explanation of why such alternatives should not 
        be published as a proposed regulation.
The Commission shall transmit such notice within 10 calendar 
days to the Committee on Commerce, Science, and Transportation 
of the Senate and the Committee on Energy and Commerce of the 
House of Representatives.
  (i)(1) The Commission shall not promulgate a regulation under 
section 2(q)(1) classifying an article or substance as a banned 
hazardous substance or a regulation under subsection (e) of 
this section unless it has prepared a final regulatory analysis 
of the regulation containing the following information:
          (A) A description of the potential benefits and 
        potential costs of the regulation, including costs and 
        benefits that cannot be quantified in monetary terms, 
        and the identification of those likely to receive the 
        benefits and bear the costs.
          (B) A description of any alternatives to the final 
        regulation which were considered by the Commission, 
        together with a summary description of their potential 
        benefits and costs and a brief explanation of the 
        reasons why these alternatives were not chosen.
          (C) A summary of any significant issues raised by the 
        comments submitted during the public comment period in 
        response to the preliminary regulatory analysis, and a 
        summary of the assessment by the Commission of such 
        issues.
The Commission shall publish its final regulatory analysis with 
the regulation.
  (2) The Commission shall not promulgate a regulation under 
section 2(q)(1) classifying an article or substance as a banned 
hazardous substance or a regulation under subsection (e) of 
this section unless it finds (and includes such finding in the 
regulation)--
          (A) in the case of a regulation which relates to a 
        risk of injury with respect to which persons who would 
        be subject to such regulation have adopted and 
        implemented a voluntary standard, that--
                  (i) compliance with such voluntary standard 
                is not likely to result in the elimination or 
                adequate reduction of such risk of injury; or
                  (ii) it is unlikely that there will be 
                substantial compliance with such voluntary 
                standard;
          (B) that the benefits expected from the regulation 
        bear a reasonable relationship to its costs; and
          (C) that the regulation imposes the least burdensome 
        requirement which prevents or adequately reduces the 
        risk of injury for which the regulation is being 
        promulgated.
  (3)(A) Any regulatory analysis prepared under subsection (h) 
or paragraph (1) shall not be subject to independent judicial 
review, except that when an action for judicial review of a 
regulation is instituted, the contents of any such regulatory 
analysis shall constitute part of the whole rulemaking record 
of agency action in connection with such review.
  (B) The provisions of subparagraph (A) shall not be construed 
to alter the substantive or procedural standards otherwise 
applicable to judicial review of any action by the Commission.
  (j) The Commission shall grant, in whole or in part, or deny 
any petition under section 553(e) of title 5, United States 
Code, requesting the Commission to initiate a rulemaking, 
within a reasonable time after the date on which such petition 
is filed. The Commission shall state the reasons for granting 
or denying such petition. The Commission may not deny any such 
petition on the basis of a voluntary standard unless the 
voluntary standard is in existence at the time of the denial of 
the petition, the Commission has determined that the voluntary 
standard is likely to result in the elimination or adequate 
reduction of the risk of injury identified in the petition, and 
it is likely that there will be substantial compliance with the 
standard.

                            PROHIBITED ACTS

                            [15 U.S.C. 1263]

  Sec. 4. The following acts and the causing thereof are hereby 
prohibited:
  (a) The introduction or delivery for introduction into 
interstate commerce of any misbranded hazardous substance or 
banned hazardous substance.
  (b) The alteration, mutilation, destruction, obliteration, or 
removal of the whole or any part of the label of, or the doing 
of any other act with respect to, a hazardous substance, if 
such act is done while the substance is in interstate commerce, 
or while the substance is held for sale (whether or not the 
first sale) after shipment in interstate commerce, and results 
in the hazardous substance being a misbranded hazardous 
substance or banned hazardous substance.
  (c) The receipt in interstate commerce of any misbranded 
hazardous substance or banned hazardous substance and the 
delivery or proffered delivery thereof for pay or otherwise.
  (d) The giving of a guarantee or undertaking referred to in 
section 5(b)(2) which guarantee or undertaking is false, except 
by a person who relied upon a guarantee or undertaking to the 
same effect signed by, and containing the name and address of, 
the person residing in the United States from whom he received 
in good faith the hazardous substance.
  (e) The failure to permit entry or inspection as authorized 
by section 11(b) or to permit access to and copying of any 
record as authorized by section 12.
  (f) The introduction or delivery for introduction into 
interstate commerce, or the receipt in interstate commerce and 
subsequent delivery or proffered delivery for pay or otherwise, 
of a hazardous substance in a reused food, drug, or cosmetic 
container or in a container which, though not a reused 
container, is identifiable as a food, drug, or cosmetic 
container by its labeling or by other identification. The reuse 
of a food, drug, or cosmetic container as a container for a 
hazardous substance shall be deemed to be an act which results 
in the hazardous substance being a misbranded hazardous 
substance. As used in this paragraph, the terms ``food'', 
``drug'', and ``cosmetic'' shall have the same meaning as in 
the Federal Food, Drug, and Cosmetic Act.
  (g) The manufacture of a misbranded hazardous substance or 
banned hazardous substance within the District of Columbia or 
within any territory not organized with a legislative body.
  (h) The use by any person to his own advantage, or revealing 
other than to the [Secretary] Commission or officers or 
employees of the [Department,] Commission, or to the courts 
when relevant in any judicial proceeding under this Act, of any 
information acquired under authority of section 11 concerning 
any method of process which as a trade secret is entitled to 
protection.
  (i) The failure to notify the [Consumer Product Safety] 
Commission with respect to exports, pursuant to section 14(d).
  (j) The failure to comply with an order issued under section 
15.
  (k) The introduction or delivery for introduction into 
interstate commerce of any lead solder which has a lead content 
in excess of 0.2 percent which does not prominently display a 
warning label stating the lead content of the solder and 
warning that the use of such solder in the making of joints or 
fittings in any private or public potable water supply system 
is prohibited.

                               PENALTIES

                            [15 U.S.C. 1264]

  Sec. 5. [(a) Any person who violates any of the provisions of 
section 4 shall be guilty of a misdemeanor and shall on 
conviction thereof be subject to a fine of not more than $500 
or to imprisonment for not more than ninety days, or both; but 
for offenses committed with intent to defraud or mislead, or 
for second and subsequent offenses, the penalty shall be 
imprisonment for not more than one year, or a fine of not more 
than $3,000, or both such imprisonment and fine.]
  (a) In General.--Violation of section 4 of this Act is 
punishable by--
          (1) imprisonment for not more than--
                  (A) 1 year for a knowing violation of that 
                section; or
                  (B) 5 years for a knowing and willful 
                violation of that section; and
          (2) a fine determined under section 3571 of title 18, 
        United States Code.
  (b) No person shall be subject to the penalties of subsection 
(a) of this section, (1) for having violated section 4(c), if 
the receipt, delivery, or proffered delivery of the hazardous 
substance was made in good faith, unless he refuses to furnish 
on request of an officer or employee duly designated by the 
[Secretary] Commission, the name and address of the person from 
whom he purchased or received such hazardous substance, and 
copies of all documents, if any there be, pertaining to the 
delivery of the hazardous substance to him; or (2) for having 
violated section 4(a), if he establishes a guarantee or 
undertaking signed by, and containing the name and address of, 
the person residing in the United States from whom he received 
in good faith the hazardous substance, to the effect that the 
hazardous substance is not a misbranded hazardous substance or 
a banned hazardous substance within the meaning of those terms 
in this Act; or (3) for having violated subsection (a) or (c) 
of section 4 with respect to any hazardous substance shipped or 
delivered for shipment for export to any foreign country, in a 
package marked for export on the outside of the shipping 
container and labeled in accordance with the specifications of 
the foreign purchaser and in accordance with the laws of the 
foreign country, but if such hazardous substance is sold or 
offered for sale in domestic commerce or if the [Consumer 
Product Safety] Commission determines that exportation of such 
[substance presents an unreasonable risk of injury to persons 
residing within the United States,] substance is prohibited 
under section 18(c) of the Consumer Product Safety Act, this 
clause shall not apply.
  (c)(1) Any person who knowingly violates section 4 shall be 
subject to a civil penalty not to exceed [$5,000] $250,000 for 
each such violation. Subject to paragraph (2), a violation of 
subsections (a), (b), (c), (d), (f), (g), (i), (j), and (k) of 
section 4 shall constitute a separate offense with respect to 
each substance involved, except that the maximum civil penalty 
shall not exceed [$1,250,000] $100,000,000 for any related 
series of violations. A violation of section 4(e) shall 
constitute a separate violation with respect to each failure or 
refusal to allow or perform an act required by section 4(e); 
and, if such violation is a continuing one, each day of such 
violation shall constitute a separate offense, except that the 
maximum civil penalty shall not exceed [$1,250,000] 
$100,000,000 for any related series of violations.
  (2) The second sentence of paragraph (1) of this subsection 
shall not apply to violations of subsection (a) or (c) of 
section 4--
          (A) if the person who violated such subsection is not 
        the manufacturer, importer, or private labeler or a 
        distributor of the substances involved; and
          (B) if such person did not have either (i) actual 
        knowledge that such person's distribution or sale of 
        the substance violated such subsection, or (ii) notice 
        from the Commission that such distribution or sale 
        would be a violation of such subsection.
  (3) In determining the amount of any penalty to be sought 
upon commencing an action seeking to assess a penalty for a 
violation of section 4, the Commission shall consider the 
nature of the substance, the severity of the risk of injury, 
the occurrence or absence of injury, the amount of the 
substance distributed, and the appropriateness of such penalty 
in relation to the size of the business of the person charged.
  (4) Any civil penalty under this subsection may be 
compromised by the Commission. In determining the amount of 
such penalty or whether it should be remitted or mitigated, and 
in what amount, the Commission shall consider the 
appropriateness of such penalty to the size of the business of 
the persons charged, the nature of the substance involved, the 
severity of the risk of injury, the occurrence or absence of 
injury, and the amount of the substance distributed. The amount 
of such penalty when finally determined, or the amount agreed 
on compromise, may be deducted from any sums owing by the 
United States to the person charged.
  (5) As used in the first sentence of paragraph (1), the term 
``knowingly'' means (A) having actual knowledge, or (B) the 
presumed having of knowledge deemed to be possessed by a 
reasonable person who acts in the circumstances, including 
knowledge obtainable upon the exercise of due care to ascertain 
the truth of representations.
  (6)(A) The maximum penalty amounts authorized in paragraph 
(1) shall be adjusted for inflation as provided in this 
paragraph.
  (B) Not later than [December 1, 1994,] December 1, 2011, and 
December 1 of each fifth calendar year thereafter, the 
Commission shall prescribe and publish in the Federal Register 
a schedule of maximum authorized penalties that shall apply for 
violations that occur after January 1 of the year immediately 
following such publication.
  (C) The schedule of maximum authorized penalties shall be 
prescribed by increasing each of the amounts referred to in 
paragraph (1) by the cost-of-living adjustment for the 
preceding five years. Any increase determined under the 
preceding sentence shall be rounded to--
          (i) in the case of penalties greater than $1,000 but 
        less than or equal to $10,000, the nearest multiple of 
        $1,000;
          (ii) in the case of penalties greater than $10,000 
        but less than or equal to $100,000, the nearest 
        multiple of $5,000;
          (iii) in the case of penalties greater than $100,000 
        but less than or equal to $200,000, the nearest 
        multiple of $10,000; and
          (iv) in the case of penalties greater than $200,000, 
        the nearest multiple of $25,000.
  (D) For purposes of this subsection:
          (i) The term ``Consumer Price Index'' means the 
        Consumer Price Index for all-urban consumers published 
        by the Department of Labor.
          (ii) The term ``cost-of-living adjustment for the 
        preceding five years'' means the percentage by which--
                  (I) the Consumer Price Index for the month of 
                June of the calendar year preceding the 
                adjustment; exceeds
                  (II) the Consumer Price Index for the month 
                of June preceding the date on which the maximum 
                authorized penalty was last adjusted.
  (d) In the case of an attorney general of a State alleging a 
violation that affects or may affect such State or its 
residents, such attorney general may bring a civil action for 
an injunction to enforce any requirement of this Act relating 
to misbranded or banned hazardous substances. The procedural 
requirements of section 24 of the Consumer Product Safety Act 
shall apply to any such action.

                                SEIZURES

                            [15 U.S.C. 1265]

  Sec. 6. (a) Any misbranded hazardous substance or banned 
hazardous substance when introduced into or while in interstate 
commerce or while held for sale (whether or not the first sale) 
after shipment in interstate commerce, or which may not, under 
the provisions of section 4(f), be introduced into interstate 
commerce, or which has been manufactured in violation of 
section 4(g), shall be liable to be proceeded against while in 
interstate commerce or at any time thereafter, on libel of 
information and condemned in any district court in the United 
States within the jurisdiction of which the hazardous substance 
is found: Provided, That this section shall not apply to a 
hazardous substance intended for export to any foreign country 
if it (1) is in a package branded in accordance with the 
specifications of the foreign purchaser, (2) is labeled in 
accordance with the laws of the foreign country, and (3) is 
labeled on the outside of the shipping package to show that it 
is intended for export, and (4) is so exported.
  (b) Such hazardous substance shall be liable to seizure by 
process pursuant to the libel, and the procedure in cases under 
this section shall conform, as nearly as may be, to the 
procedure in admiralty; except that on demand of either party 
any issue of fact joined in any such case shall be tried by 
jury. When libel for condemnation proceedings under this 
section, involving the same claimant and the same issues of 
misbranding, are pending in two or more jurisdictions, such 
pending proceedings, upon application of the United States or 
the claimant seasonably made to the court of one such 
jurisdiction, shall be consolidated for trial by order of such 
court, and tried in (1) any district selected by the applicant 
where one of such proceedings is pending; or (2) a district 
agreed upon by stipulation between the parties. If no order for 
consolidation is so made within a reasonable time, the United 
States or the claimant may apply to the court of one such 
jurisdiction, and such court (after giving the other party, the 
claimant, or the United States attorney for such district, 
reasonable notice and opportunity to be heard) shall by order, 
unless good cause to the contrary is shown, specify a district 
of reasonable proximity to the claimant's principal place of 
business, in which all such pending proceedings shall be 
consolidated for trial and tried. Such order of consolidation 
shall not apply so as to require the removal of any case the 
date for trial of which has been fixed. The court granting such 
order shall give prompt notification thereof to the other 
courts having jurisdiction of the cases covered thereby.
  (c) Any hazardous substance condemned under this section 
shall, after entry of the decree, be disposed of by destruction 
or sale as the court may, in accordance with the provisions of 
this section, direct and the proceeds thereof, if sold, less 
the legal costs and charges, shall be paid into the Treasury of 
the United States; but such hazardous substance shall not be 
sold under such decree contrary to the provisions of this Act 
or the laws of the jurisdiction in which sold: Provided, That, 
after entry of the decree and upon payment of the costs of such 
proceedings and the execution of a good and sufficient bond 
conditioned that such hazardous substance shall not be sold or 
disposed of contrary to the provisions of this Act or the laws 
of any State or territory in which sold, the court may by order 
direct that such hazardous substance be delivered to the owner 
thereof to be destroyed or brought into compliance with the 
provisions of this Act under the supervision of an officer or 
employee duly designated by the [Secretary] Commission, and the 
expense of such supervision shall be paid by the person 
obtaining release of the hazardous substance under bond.
  (d) When a decree of condemnation is entered against the 
hazardous substance, court costs and fees, and storage and 
other proper expenses, shall be awarded against the person, if 
any, intervening as claimant of the hazardous substance.
  (e) In the case of removal for trial of any case as provided 
by subsection (b)--
          (1) the clerk of the court from which removal is made 
        shall promptly transmit to the court in which the case 
        is to be tried all records in the case necessary in 
        order that such court may exercise jurisdiction;
          (2) the court to which such case is removed shall 
        have the powers and be subject to the duties, for 
        purposes of such case, which the court from which 
        removal was made would have had, or to which such court 
        would have been subject, if such case had not been 
        removed.

              HEARING BEFORE REPORT OF CRIMINAL VIOLATION

                            [15 U.S.C. 1266]

  Sec. 7. Before any violation of this Act is reported by the 
[Secretary] Commission to any United States attorney for 
institution of a criminal proceeding, the person against whom 
such proceeding is contemplated shall be given appropriate 
notice and an opportunity to present his views, either orally 
or in writing, with regard to such contemplated proceeding.

           *       *       *       *       *       *       *


                              REGULATIONS

                            [15 U.S.C. 1269]

  Sec. 10. (a) The authority to promulgate regulations for the 
efficient enforcement of this Act, except as otherwise provided 
in this section, is hereby vested in the [Secretary] 
Commission.
  (b) The Secretary of the Treasury and the [Secretary of 
Health, Education, and Welfare] Commission shall jointly 
prescribe regulations for the efficient enforcement of the 
provisions of section 14, except as otherwise provided therein. 
Such regulations shall be promulgated in such manner and take 
effect at such time, after due notice, as the [Secretary of 
Health, Education, and Welfare] Commission shall determine.

                    EXAMINATIONS AND INVESTIGATIONS

                            [15 U.S.C. 1270]

  Sec. 11. (a) The [Secretary] Commission is authorized to 
conduct examinations, inspections, and investigations for the 
purposes of this Act through officers and employees of the 
[Department] Commission or through any health officer or 
employee of any State, territory, or political subdivision 
thereof, duly commissioned by the [Secretary] Commission as an 
officer of the [Department] Commission.
  (b) For purposes of enforcement of this Act, officers or 
employees duly designated by the [Secretary] Commission, upon 
presenting appropriate credentials and a written notice to the 
owner, operator, or agent in charge, are authorized (1) to 
enter, at reasonable times, any factory, warehouse, or 
establishment in which hazardous substances are manufactured, 
processed, packed, or held for introduction into interstate 
commerce or are held after such introduction, or to enter any 
vehicle being used to transport or hold such hazardous 
substances in interstate commerce; (2) to inspect, at 
reasonable times and within reasonable limits and in a 
reasonable manner, such factory, warehouse, establishment, or 
vehicle, and all pertinent equipment, finished and unfinished 
materials, and labeling therein; and (3) to obtain samples of 
such materials or packages thereof, or of such labeling. A 
separate notice shall be given for each such inspection, but a 
notice shall not be required for each entry made during the 
period covered by the inspection. Each such inspection shall be 
commenced and completed with reasonable promptness.
  (c) If the officer or employee obtains any sample, prior to 
leaving the premises, he shall give to the owner, operator, or 
agent in charge a receipt describing the samples obtained. If 
an analysis is made of such sample, a copy of the results of 
such analysis shall be furnished promptly to the owner, 
operator, or agent in charge.

                     RECORDS OF INTERSTATE SHIPMENT

                            [15 U.S.C. 1271]

  Sec. 12. For the purpose of enforcing the provisions of this 
Act, carriers engaged in interstate commerce, and persons 
receiving hazardous substances in interstate commerce or 
holding such hazardous substances so received shall, upon the 
request of an officer or employee duly designated by the 
[Secretary] Commission, permit such officer or employee, at 
reasonable times, to have access to and to copy all records 
showing the movement in interstate commerce of any such 
hazardous substance, or the holding thereof during or after 
such movement, and the quantity, shipper, and consignee 
thereof; and it shall be unlawful for any such carrier or 
person to fail to permit such access to and copying of any 
record so requested when such request is accompanied by a 
statement in writing specifying the nature or kind of such 
hazardous substance to which such request relates: Provided, 
That evidence obtained under this section, or any evidence 
which is directly or indirectly derived from such evidence, 
shall not be used in a criminal prosecution of the person from 
whom obtained: Provided further, That carriers shall not be 
subject to the other provisions of this Act by reason of their 
receipt, carriage, holding, or delivery of hazardous substances 
in the usual course of business as carriers.

                               PUBLICITY

                            [15 U.S.C. 1272]

  Sec. 13. (a) The [Secretary] Commission may cause to be 
published from time to time reports summarizing any judgments, 
decrees, or court orders which have been rendered under this 
Act, including the nature of the charge and the disposition 
thereof.
  (b) The [Secretary] Commission may also cause to be 
disseminated information regarding hazardous substances in 
situations involving, in the opinion of the [Secretary] 
Commission, imminent danger to health. Nothing in this section 
shall be construed to prohibit the [Secretary] Commission from 
collecting, reporting, and illustrating the results of the 
investigations of the [Department] Commission.

                          IMPORTS AND EXPORTS

                            [15 U.S.C. 1273]

  Sec. 14. (a) The Secretary of the Treasury shall deliver to 
the [Secretary of Health, Education, and Welfare,] Commision, 
upon [his] its request, samples of hazardous substances which 
are being imported or offered for import into the United 
States, giving notice thereof to the owner or consignee, who 
may appear before the [Secretary of Health, Education, and 
Welfare] Commission and have the right to introduce testimony. 
If it appears from the examination of such samples or otherwise 
that such hazardous substance is a misbranded hazardous 
substance or banned hazardous substance or in violation of 
section 4(f), then such hazardous substance shall be refused 
admission, except as provided in subsection (b) of this 
section. The Secretary of the Treasury shall cause the 
destruction of any such hazardous substance refused admission 
unless such hazardous substance is exported, under regulations 
prescribed by the Secretary of the Treasury, within ninety days 
of the date of notice of such refusal or within such additional 
time as may be permitted pursuant to such regulations.
  (b) Pending decision as to the admission of a hazardous 
substance being imported or offered for import, the Secretary 
of the Treasury may authorize delivery of such hazardous 
substance to the owner or consignee upon the execution by him 
of a good and sufficient bond providing for the payment of such 
liquidated damages in the event of default as may be required 
pursuant to regulations of the Secretary of the Treasury. If it 
appears to the [Secretary of Health, Education, and Welfare] 
Commission that the hazardous substance can, by relabeling or 
other action, be brought into compliance with this Act, final 
determination as to admission of such hazardous substance may 
be deferred and, upon filing of timely written application by 
the owner or consignee and the execution by him of a bond as 
provided in the preceding provisions of this subsection, the 
[Secretary] Commission may, in accordance with regulations, 
authorize the applicant to perform such relabeling or other 
action specified in such authorization (including destruction 
or export of rejected hazardous substances or portions thereof, 
as may be specified in the [Secretary's] Commission's 
authorization). All such relabeling or other action pursuant to 
such authorization shall, in accordance with regulations, be 
under the supervision of an officer or employee of the 
[Department of Health, Education, and Welfare] Commission 
designated by the Secretary, or an officer or employee of the 
Department of the Treasury designated by the Secretary of the 
Treasury.
  (c) All expenses (including travel, per diem, or subsistence, 
and salaries of officers or employees of the United States) in 
connection with the destruction provided for in subsection (a) 
of this section and the supervision of the relabeling or other 
action authorized under the provisions of subsection (b) of 
this section, the amount of such expenses to be determined in 
accordance with regulations, and all expenses in connection 
with the storage, cartage, or labor with respect to any 
hazardous substance refused admission under subsection (a) of 
this section, shall be paid by the owner or consignee and, in 
default of such payment, shall constitute a lien against any 
future importations made by such owner or consignee.
  (d) Not less than thirty days before any person exports to a 
foreign country any misbranded hazardous substance or banned 
hazardous substance, such person shall file a statement with 
the [Consumer Product Safety Commission (hereinafter in this 
section referred to as the ``Commission'')] Commission 
notifying the Commission of such exportation, and the 
Commission, upon receipt of such statement, shall promptly 
notify the government of such country of such exportation and 
the basis upon which such substance is considered misbranded or 
has been banned under this Act. Any statement filed with the 
Commission under the preceding sentence shall specify the 
anticipated date of shipment of such substance, the country and 
port of destination of such substance, and the quantity of such 
substance that will be exported, and shall contain such other 
information as the Commission may by regulation require. Upon 
petition filed with the Commission by any person required to 
file a statement under this subsection respecting an 
exportation, the Commission may, for good cause shown, exempt 
such person from the requirement of this subsection that such a 
statement be filed no less than thirty days before the date of 
the exportation, except that in no case shall the Commission 
permit such a statement to be filed later than the tenth day 
before such date.

               NOTICE AND REPAIR, REPLACEMENT, OR REFUND

                            [15 U.S.C. 1274]

  Sec. 15. (a) If any article or substance sold in commerce is 
defined as a banned hazardous substance (whether or not it was 
such at the time of its sale) and the Commission determines 
(after affording interested persons, including consumers and 
consumer organizations, an opportunity for a hearing) that 
notification is required to adequately protect the public from 
such article or substance, the Commission may order the 
manufacturer or any distributor or dealer of the article or 
substance to take any one or more of the following actions:
          (1) To give public notice that the article or 
        substance is a banned hazardous substance.
          (2) To mail such notice to each person who is a 
        manufacturer, distributor, or dealer of such article or 
        substance.
          (3) To mail such notice to every person to whom the 
        person giving the notice knows such article or 
        substance was delivered or sold.
An order under this subsection shall specify the form and 
content of any notice required to be given under the order.
  (b) If any article or substance sold in commerce is defined 
as a banned hazardous substance (whether or not it was such at 
the time of its sale) and the Commission determines (after 
affording interested persons, including consumers and consumer 
organizations, an opportunity for a hearing) that action under 
this subsection is in the public interest, the [Consumer 
Product Safety] Commission may order the manufacturer, 
distributor, or dealer to take whichever of the following 
actions the person to whom the order is directed elects:
          (1) If repairs to or changes in the article or 
        substance may be made so that it will not be a banned 
        hazardous substance, to make such repairs or changes.
          (2) To replace such article or substance with a like 
        or equivalent article or substance which is not a 
        banned hazardous substance.
          (3) To refund the purchase price of the article or 
        substance (less a reasonable allowance for use, if the 
        article or substance has been in the possession of the 
        consumer for one year or more--
                  (A) at the time of public notice under 
                subsection (a), or
                  (B) at the time the consumer receives actual 
                notice that the article or substance is a 
                banned hazardous substance, whichever first 
                occurs).
An order under this subsection may also require the person to 
whom it applies to submit a plan, satisfactory to the 
Commission, for taking the action which such person has elected 
to take. The Commission shall specify in the order the persons 
to whom refunds must be made if the person to whom the order is 
directed elects to take the action described in paragraph (3). 
If an order under this subsection is directed to more than one 
person, the Commission shall specify which person has the 
election under this subsection. An order under this subsection 
may prohibit the person to whom it applies from manufacturing 
for sale, offering for sale, distributing in commerce, or 
importing into the customs territory of the United States (as 
defined in general note 2 of the Harmonized Tariff Schedule of 
the United States), or from doing any combination of such 
actions, with respect to the article or substance with respect 
to which the order was issued.
  (c)(1) If the Commission determines (after affording 
interested persons, including consumers and consumer 
organizations, an opportunity for a hearing in accordance with 
subsection (e) of this section) that any toy or other article 
intended for use by children that is not a banned hazardous 
substance contains a defect which creates a substantial risk of 
injury to children (because of the pattern of defect the number 
of defective toys or such articles distributed in commerce, the 
severity of the risk, or otherwise) and that notification is 
required to protect adequately the public from such toy or 
article, the Commission may order the manufacturer or any 
distributor or dealer of such toy or article to take any one or 
more of the following actions:
          (A) To give public notice that such defective toy or 
        article contains a defect which creates a substantial 
        risk of injury to children.
          (B) To mail such notice to each person who is a 
        manufacturer, distributor, or dealer of such toy or 
        article.
          (C) To mail such notice to every person to whom the 
        person giving notice knows such toy or article was 
        delivered or sold.
An order under this paragraph shall specify the form and 
content of any notice required to be given under the order.
  (2) If the Commission determines (after affording interested 
persons, including consumers and consumer organizations, an 
opportunity for a hearing in accordance with subsection (e) of 
this section) that any toy or other article intended for use by 
children that is not a banned hazardous substance contains a 
defect which creates a substantial risk of injury to children 
(because of the pattern of defect, the number of defective toys 
or such articles distributed in commerce, the severity of the 
risk, or otherwise) and that action under this paragraph is in 
the public interest, the Commission may order the manufacturer, 
distributor, or dealer to take whichever of the following 
actions the person to whom the order is directed elects:
          (A) If repairs to or changes in the toy or article 
        can be made so that it will not contain a defect which 
        creates a substantial risk of injury to children, to 
        make such repairs or changes.
          (B) To replace such toy or article with a like or 
        equivalent toy or article which does not contain a 
        defect which creates a substantial risk of injury to 
        children.
          (C) To refund the purchase price of such toy or 
        article (less a reasonable allowance for use, if such 
        toy or article has been in the possession of the 
        consumer for 1 year or more (i) at the time of public 
        notice under paragraph (1)(A), or (ii) at the time the 
        consumer receives actual notice that the toy or article 
        contains a defect which creates a substantial risk of 
        injury to children, whichever first occurs).
An order under this paragraph may also require the person to 
whom it applies to submit a plan, satisfactory to the 
Commission, for taking the action which such person has elected 
to take. The Commission shall specify in the order the person 
to whom refunds must be made if the person to whom the order is 
directed elects to take the action described in subparagraph 
(C). If an order under this paragraph is directed to more than 
one person, the Commission shall specify which person has the 
election under this paragraph. An order under this paragraph 
may prohibit the person to whom it applies from manufacturing 
for sale, offering for sale, distributing in commerce, or 
importing into the customs territory of the United States (as 
defined in general note 2 of the Harmonized Tariff Schedule of 
the United States), or from doing any combination of such 
actions, with respect to the toy or article respect to which 
the order was issued.
  (d)(1) No charge shall be made to any person (other than a 
manufacturer, distributor, or dealer) who avails himself of any 
remedy provided under an order issued under subsection (b) or 
(c), and the person subject to the order shall reimburse each 
person (other than a manufacturer, distributor, or dealer) who 
is entitled to such a remedy for any reasonable and foreseeable 
expenses incurred by such person in availing himself of such 
remedy.
  (2) An order issued under subsection (a), (b), or (c) with 
respect to a toy, article or substance may require any person 
who is a manufacturer, distributor, or dealer of the toy, 
article or substance to reimburse any other person who is a 
manufacturer, distributor, or dealer of such article or 
substance for such other person's expenses in connection with 
carrying out the order, if the Commission determines such 
reimbursement to be in the public interest.
  (e) An order under subsection (a), (b), or (c) may be issued 
only after an opportunity for a hearing in accordance with 
section 554 of title 5, United States Code, except that, if the 
Commission determines that any person who wishes to participate 
in such hearing is a part of a class of participants who share 
an identity of interest, the Commission may limit such person's 
participation in such hearing to participation through a single 
representative designated by such class (or by the Commission 
if such class fails to designate such a representative).
  (f) For purposes of this section (1) the term 
``manufacturer'' includes an importer for resale, and (2) a 
dealer who sells at wholesale an article or substance shall 
with respect to that sale be considered the distributor of that 
article or substance.
  (g) Nothing in this section shall be construed to require the 
Commission, in determining that an article or substance 
distributed in commerce presents a substantial product hazard 
and that notification or other action under this section should 
be taken, to prepare a comparison of the costs that would be 
incurred in providing notification or taking other action under 
this section with the benefits from such notification or 
action.

           *       *       *       *       *       *       *


                         [15 U.S.C. 1261 note]

  Sec. 17. This Act shall take effect upon the date of its 
enactment; but no penalty or condemnation shall be enforced for 
any violation of this Act which occurs--
          (a) prior to the expiration of the sixth calendar 
        month after the month in which this Act is enacted, or
          (b) prior to the expiration of such additional period 
        or periods, ending not more than eighteen months after 
        the month of enactment of this Act, as the [Secretary] 
        Commission may prescribe on the basis of a finding that 
        conditions exist which necessitate the prescribing of 
        such additional period or periods: Provided, That the 
        [Secretary] Commission may limit the application of 
        such additional period or periods to violations related 
        to specified provisions of this Act, or to specified 
        kinds of hazardous substances or packages thereof.

                   EFFECT UPON FEDERAL AND STATE LAW

                         [15 U.S.C. 1261 note]

  Sec. 18. (a) Nothing in this Act shall be construed to modify 
or affect the provisions of the Flammable Fabrics Act, as 
amended (15 U.S.C. 1191-1200), or any regulations promulgated 
thereunder; or of chapter 39, title 18, United States Code, as 
amended (18 U.S.C. 831 et seq.), or any regulations promulgated 
thereunder, or under sections 204(a)(2) and 204(a)(3) of the 
Interstate Commerce Act, as amended (relating to the 
transportation of dangerous substances and explosives by 
surface carriers); or of section 1716, title 18, United States 
Code, or any regulations promulgated thereunder (relating to 
mailing of dangerous substances); or of section 902 or 
regulations promulgated under section 601 of the Federal 
Aviation Act of 1958 (relating to transportation of dangerous 
substances and explosives in aircraft); or of the Federal Food, 
Drug, and Cosmetic Act; or of the Public Health Service Act; or 
of the Federal Insecticide, Fungicide, and Rodenticide Act; or 
of the Dangerous Drug Act for the District of Columbia (70 
Stat. 612), or the Act entitled ``An Act to regulate the 
practice of pharmacy and the sale of poisons in the District of 
Columbia, and for other purposes'', approved May 7, 1906 (34 
Stat. 175), as amended; or of any other Act of Congress, except 
as specified in section 19.
  (b)(1)(A) Except as provided in paragraphs (2) and (3), if a 
hazardous substance or its packaging is subject to a cautionary 
labeling requirement under section 2(p) or 3(b) designated to 
protect against a risk of illness or injury associated with the 
substance, no State or political subdivision of a State may 
establish or continue in effect a cautionary labeling 
requirement applicable to such substance or packaging and 
designed to protect against the same risk of illness or injury 
unless such cautionary labeling requirement is identical to the 
labeling requirement under section 2(p) or 3(b).
  (B) Except as provided in paragraphs (2), (3), and (4), if 
under regulations of the Commission promulgated under or for 
the enforcement of section 2(q) a requirement is established to 
protect against a risk of illness or injury associated with a 
hazardous substance, no State or political subdivision of a 
State may establish or continue in effect a requirement 
applicable to such substance and designed to protect against 
the same risk of illness or injury unless such requirement is 
identical to the requirement established under such 
regulations.
  (2) The Federal Government and the government of any State or 
political subdivision of a State may establish and continue in 
effect a requirement applicable to a hazardous substance for 
its own use (or to the packaging of such a substance) which 
requirement is designed to protect against a risk of illness or 
injury associated with such substance and which is not 
identical to a requirement described in paragraph (1) 
applicable to such substance (or packaging) and designed to 
protect against the same risk of illness or injury if the 
Federal, State, or political subdivision requirement provides a 
higher degree of protection from such risk of illness or injury 
than the requirement described in paragraph (1).
  (3)(A) Upon application of a State or political subdivision 
of a State, the Commission may, by regulation promulgated in 
accordance with subparagraph (B), exempt from paragraph (1), 
under such conditions as may be prescribed in such regulation, 
any requirement of such State or political subdivision designed 
to protect against a risk of illness or injury associated with 
a hazardous substance if--
          (i) compliance with the requirement would not cause 
        the hazardous substance (or its packaging) to be in 
        violation of the applicable requirement described in 
        paragraph (1), and
          (ii) the State or political subdivision requirement 
        (I) provides a significantly higher degree of 
        protection from such risk of illness or injury than the 
        requirement described in paragraph (1), and (II) does 
        not unduly burden interstate commerce.
In determining the burden, if any, of a State or political 
subdivision requirement on interstate commerce the Commission 
shall consider and make appropriate (as determined by the 
Commission in its discretion) findings on the technological and 
economic feasibility of complying with such requirement, the 
cost of complying with such requirement, the geographic 
distribution of the substance to which the requirement would 
apply, the probability of other States or political 
subdivisions applying for an exemption under this paragraph for 
a similar requirement, and the need for a national, uniform 
requirement under this Act for such substance (or its 
packaging).
  (B) A regulation under subparagraph (A) granting an exemption 
for a requirement of a State or political subdivision of a 
State may be promulgated by the Commission only after it has 
provided, in accordance with section 553(b) of title 5, United 
States Code, notice with respect to the promulgation of the 
regulation and has provided opportunity for the oral 
presentation of views respecting its promulgation.
  (4) Paragraph (1)(B) does not prohibit a State or a political 
subdivision of a State from establishing or continuing in 
effect a requirement which is designed to protect against a 
risk of illness or injury associated with fireworks devices or 
components thereof and which provides a higher degree of 
protection from such risk of illness or injury than a 
requirement in effect under a regulation of the Commission 
described in such paragraph.
  [(5) As used in this subsection, the term ``Commission'' 
means the Consumer Product Safety Commission.]

                  REPEAL OF FEDERAL CAUSTIC POISON ACT

                          [15 U.S.C. 401 note]

  Sec. 19. The Federal Caustic Poison Act (44 Stat. 1406) is 
repealed effective at the close of the sixth calendar month 
after the month of enactment of this Act, except that the 
Federal Caustic Poison Act shall remain in full force and 
effect with respect to any ``dangerous caustic or corrosive 
substance'' (as defined by that Act) which is an article 
subject to the Federal Food, Drug, and Cosmetic Act and which 
is, by virtue of paragraph 2 of section 2(f) of this Act, 
excluded from the term ``hazardous substance'' as defined in 
this Act: Provided, That, if the [Secretary] Commission, 
pursuant to section 17(b) of this Act, prescribes an additional 
period or periods during which violations of this Act shall not 
be enforceable and if such additional period or periods are 
applicable to violations of this Act involving one or more 
substances defined as ``dangerous caustic or corrosive 
substances'' by the Federal Caustic Poison Act, that Act shall, 
with respect to such substance or substances, remain in full 
force and effect during such additional period or periods: 
Provided further, That, with respect to violations, liabilities 
incurred or appeals taken prior to the close of said sixth 
month or, if applicable, prior to the expiration of the 
additional period or periods referred to in the preceding 
proviso, all provisions of the Federal Caustic Poison Act shall 
be deemed to remain in full force for the purpose of sustaining 
any proper suit, action, or other proceeding with respect to 
any such violations, liabilities, and appeals.

           *       *       *       *       *       *       *


SEC. 24. REQUIREMENTS FOR LABELING CERTAIN TOYS AND GAMES.

                            [15 U.S.C. 1278]

  (a) Toys or Games for Children Who Are at Least 3.--
          (1) Requirement.--The packaging of any toy or game 
        intended for use by children who are at least 3 years 
        old but not older than 6 years (or such other upper age 
        limit as the Commission may determine, which may not be 
        less than 5 years old), any descriptive material which 
        accompanies such toy or game, and, in the case of bulk 
        sales of such toy or game when unpackaged, any bin, 
        container for retail display, or vending machine from 
        which the unpackaged toy or game is dispensed shall 
        bear or contain the cautionary statement described in 
        paragraph (2) if the toy or game--
                  (A) is manufactured for sale, offered for 
                sale, or distributed in commerce in the United 
                States, and
                  (B) includes a small part, as defined by the 
                Commission.
          (2) Label.--The cautionary statement required by 
        paragraph (1) for a toy or game shall be as follows:

                         [ILLUSTRATION OMITTED]

  (b) Balloons, Small Balls, and Marbles.--
          (1) Requirement.--In the case of any latex balloon, 
        any ball with a diameter of 1.75 inches or less 
        intended for children 3 years of age or older, any 
        marble intended for children 3 years of age or older, 
        or any toy or game which contains such a balloon, ball, 
        or marble, which is manufactured for sale, offered for 
        sale, or distributed in commerce in the United States--
                  (A) the packaging of such balloon, ball, 
                marble, toy, or game,
                  (B) any descriptive material which 
                accompanies such balloon, ball, marble, toy, or 
                game, and
                  (C) in the case of bulk sales of any such 
                product when unpackaged, any bin, container for 
                retail display, or vending machine from which 
                such unpackaged balloon, ball, marble, toy, or 
                game is dispensed,
        shall bear or contain the cautionary statement 
        described in paragraph (2).
          (2) Label.--The cautionary statement required under 
        paragraph (1) for a balloon, ball, marble, toy, or game 
        shall be as follows:
                  (A) Balloons.--In the case of balloons, or 
                toys or games that contain latex balloons, the 
                following cautionary statement applies:

                         [ILLUSTRATION OMITTED]

                  (D) Toys and games.--In the case of toys or 
                games containing balls, the following 
                cautionary statement applies:

                         [ILLUSTRATION OMITTED]

  (c) Internet, Catalogue, and Other Advertising.--
          (1) Requirement.--
                  (A) Cautionary statement.--Any advertisement 
                posted by a manufacturer, retailer, 
                distributor, private labeler, or licensor for 
                any toy, game, balloon, small ball, or marble 
                that requires a cautionary statement under 
                subsections (a) and (b), including any 
                advertisement on Internet websites or in 
                catalogues or other distributed materials, 
                shall include the appropriate cautionary 
                statement required under such subsections in 
                its entirety displayed on or immediately 
                adjacent to such advertisement.
                  (B) Display.--The cautionary statement 
                described in subparagraph (A) shall be 
                prominently displayed--
                          (i) in the primary language used in 
                        the advertisement, catalogue, or 
                        Internet website;
                          (ii) in conspicuous and legible type 
                        in contrast by typography, layout, or 
                        color with other material printed or 
                        displayed in such advertisement; and
                          (iii) in a manner consistent with 
                        part 1500 of title 16, Code of Federal 
                        Regulations.
                  (C) Definitions.--In this paragraph, the 
                terms `manufacturer, retailer, distributor, 
                private labeler, and licensor'--
                          (i) mean any individual who, by such 
                        individual's occupation holds himself 
                        or herself out as having knowledge or 
                        skill peculiar to consumer products, 
                        including any person who is in the 
                        business of manufacturing, selling, 
                        distributing, labeling, licensing, or 
                        otherwise placing in the stream of 
                        commerce consumer products; but
                          (ii) do not include an individual 
                        whose selling activity is intermittent 
                        and does not constitute a trade or 
                        business.
          (2) Enforcement.--The requirement under paragraph (1) 
        shall be treated as a consumer product safety standard 
        promulgated under section 7 of the Consumer Product 
        Safety Act (15 U.S.C. 2056). The publication or 
        distribution of any advertisement that is not in 
        compliance with paragraph (1) shall be treated as a 
        prohibited act under section 19 of such Act (15 U.S.C. 
        2068).
  [(c)] (d) General Labeling Requirements.--
          (1) In general.--Except as provided in paragraphs (2) 
        and (3), any cautionary statement required under 
        subsection (a) or (b) shall be--
                  (A) displayed in its entirety on the 
                principal display panel of the product's 
                package, and on any descriptive material which 
                accompanies the product, and, in the case of 
                bulk sales of such product when unpackaged, on 
                the bin, container for retail display of the 
                product, and any vending machine from which the 
                unpackaged product is dispensed, and
                  (B) displayed in the English language in 
                conspicuous and legible type in contrast by 
                typography, layout, or color with other printed 
                matter on such package, descriptive materials, 
                bin, container, and vending machine, and in a 
                manner consistent with part 1500 of title 16, 
                Code of Federal Regulations (or successor 
                regulations thereto).
          (2) Exception for products manufactured outside 
        united states.--In the case of a product manufactured 
        outside the United States and directly shipped from the 
        manufacturer to the consumer by United States mail or 
        other delivery service, the accompanying material 
        inside the package of the product may fail to bear the 
        required statement if other accompanying material 
        shipped with the product bears such statement.
          (3) Special rules for certain packages.--(A) A 
        cautionary statement required by subsection (a) or (b) 
        may, in lieu of display on the principal display panel 
        of the product's package, be displayed on another panel 
        of the package if--
                  (i) the package has a principal display panel 
                of 15 square inches or less and the required 
                statement is displayed in three or more 
                languages; and
                  (ii) the statement specified in subparagraph 
                (B) is displayed on the principal display panel 
                and is accompanied by an arrow or other 
                indicator pointing toward the place on the 
                package where the statement required by 
                subsection (a) or (b) appears.
          (B)(i) In the case of a product to which subsection 
        (a), subsection (b)(2)(B), subsection (b)(2)(C), or 
        subsection (b)(2)(D) applies, the statement specified 
        by this subparagraph is as follows:

                         [ILLUSTRATION OMITTED]

          (ii) In the case of a product to which subsection 
        (b)(2)(A) applies, the statement specified by this 
        subparagraph is as follows:

                         [ILLUSTRATION OMITTED]

  [(d)] (e) Treatment as Misbranded Hazardous Substance.--A 
balloon, ball, marble, toy, or game, that is not in compliance 
with the requirements of this subsection shall be considered a 
misbranded hazardous substance under section 2(p).

                                  
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