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[House Report 106-121]
[From the U.S. Government Publishing Office]

106th Congress                                            Rept. 106-121
                        HOUSE OF REPRESENTATIVES
 1st Session                                                 Part 1

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

 
              FASTENER QUALITY ACT AMENDMENTS ACT OF 1999

                                _______
                                

 April 29, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______

    Mr. Sensenbrenner, from the Committee on Science, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1183]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Science, to whom was referred the bill (H.R. 
1183) to amend the Fastener Quality Act to strengthen the 
protection against the sale of mismarked, misrepresented, and 
counterfeit fasteners and eliminate unnecessary requirements, 
and for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
   I. Purpose of the Bill.............................................6
  II. Background and Need for the Legislation.........................6
 III. Summary of Hearings.............................................6
  IV. Committee Actions...............................................8
   V. Summary of Major Provisions of the Bill.........................8
  VI. Section-By-Section Analysis (By Title and Section)..............9
 VII. Committee Views................................................19
VIII. Cost Estimate..................................................19
  IX. Congressional Budget Office Cost Estimate......................20
   X. Compliance with Public Law 104-4 (Unfunded Mandates)...........21
  XI. Committee Oversight Findings and Recommendations...............21
 XII. Oversight Findings and Recommendations by the Committee on 
      Government Reform and Oversight................................21
XIII. Constitutional Authority Statement.............................21
 XIV. Federal Advisory Committee Statement...........................21
  XV. Congressional Accountability Act...............................21
 XVI. Changes in Existing Law Made by the Bill, As Reported..........21
XVII. Committee Recommendations......................................35
XVIII.Exchange of Committee Correspondence...........................36

 XIX. Proceedings of Full Committee Markup...........................37

    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE

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

SEC. 2. FINDINGS AND PURPOSE.

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

``SEC. 2. FINDINGS.

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

SEC. 3. DEFINITIONS.

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

``SEC. 3. DEFINITIONS.

  ``As used in this Act, the term--
          ``(1) `accredited laboratory' means a fastener testing 
        facility used to perform end-of-line testing required by a 
        consensus standard or standards to verify that a lot of 
        fasteners conforms to the grade identification marking called 
        for in the consensus standard or standards to which the lot of 
        fasteners has been manufactured, and which--
                  ``(A) meets the requirements of ISO/IEC Guide 25, 
                including revisions from time to time, or another 
                document approved by the Director under section 10(c); 
                and
                  ``(B) has been accredited by a laboratory 
                accreditation body that meets the requirements of ISO/
                IEC Guide 58, including revisions from time to time, or 
                another document approved by the Director under section 
                10(d);
          ``(2) `consensus standard' means the provisions of a document 
        that describes fastener characteristics published by a 
        consensus standards organization or a Federal agency, and does 
        not include a proprietary standard;
          ``(3) `consensus standards organization' means the American 
        Society for Testing and Materials, the American National 
        Standards Institute, the American Society of Mechanical 
        Engineers, the Society of Automotive Engineers, the 
        International Organization for Standardization, any other 
        organization identified as a United States consensus standards 
        organization or a foreign and international consensus standards 
        organization in the Federal Register at 61 Fed. Reg. 50582-83 
        (September 26, 1996), and any successor organizations thereto;
          ``(4) `Director' means the Director of the National Institute 
        of Standards and Technology;
          ``(5) `distributor' means a person who purchases fasteners 
        for the purpose of reselling them at wholesale to unaffiliated 
        entities or individuals (an original equipment manufacturer and 
        its dealers shall be considered affiliated entities for 
        purposes of this Act);
          ``(6) `fastener' means a metallic screw, nut, bolt, or stud 
        having internal or external threads, with a nominal diameter of 
        6 millimeters or greater, in the case of such items described 
        in metric terms, or \1/4\ inch or greater, in the case of such 
        items described in terms of the English system of measurement, 
        or a load-indicating washer, that is through-hardened or 
        represented as meeting a consensus standard that calls for 
        through-hardening, and that is grade identification marked or 
        represented as meeting a consensus standard that requires grade 
        identification marking, except that such term does not include 
        any screw, nut, bolt, stud, or load-indicating washer that is--
                  ``(A) part of an assembly;
                  ``(B) in a package containing no more than 100 of any 
                one screw, nut, bolt, stud, or load-indicating washer 
                at the time of sale;
                  ``(C) produced and marked as ASTM A 307 Grade A, or a 
                successor standard thereto;
                  ``(D) produced in accordance with ASTM F 432, or a 
                successor standard thereto;
                  ``(E) specifically manufactured for use on an 
                aircraft if the quality and suitability of those 
                fasteners for that use has been approved--
                          ``(i) by the Federal Aviation Administration; 
                        or
                          ``(ii) by a foreign airworthiness authority 
                        as described in part 21.29, 21.500, 21.502, or 
                        21.617 of title 14 of the Code of Federal 
                        Regulations;
                  ``(F) manufactured in accordance with a fastener 
                quality assurance system; or
                  ``(G) manufactured to a proprietary standard, whether 
                or not such proprietary standard directly or indirectly 
                references a consensus standard or any portion thereof;
          ``(7) `fastener quality assurance system' means--
                  ``(A) a system that meets the requirements, including 
                revisions from time to time, of--
                          ``(i) International Organization for 
                        Standardization (ISO) Standard 9000, 9001, 
                        9002, or TS16949;
                          ``(ii) Quality System (QS) 9000 Standard;
                          ``(iii) Verband der Automobilindustrie e. V. 
                        (VDA) 6.1 Standard; or
                          ``(iv) Aerospace Basic Quality System 
                        Standard AS9000; or
                  ``(B) any fastener manufacturing system--
                          ``(i) that has as a stated goal the 
                        prevention of defects through continuous 
                        improvement;
                          ``(ii) that seeks to attain the goal stated 
                        in clause (i) by incorporating--
                                  ``(I) advance quality planning;
                                  ``(II) monitoring and control of the 
                                manufacturing process;
                                  ``(III) product verification embodied 
                                in a comprehensive written control plan 
                                for product and process 
                                characteristics, and process controls 
                                (including process influence factors 
                                and statistical process control), 
                                tests, and measurement systems to be 
                                used in production; and
                                  ``(IV) the creation, maintenance, and 
                                retention of electronic, photographic, 
                                or paper records required by the 
                                control plan regarding the inspections, 
                                tests, and measurements performed 
                                pursuant to the control plan; and
                          ``(iii) that--
                                  ``(I) is subject to certification in 
                                accordance with the requirements of 
                                ISO/IEC Guide 62, including revisions 
                                from time to time (or another document 
                                approved by the Director under section 
                                10(a)), by a third party who is 
                                accredited by an accreditation body in 
                                accordance with the requirements of 
                                ISO/IEC Guide 61, including revisions 
                                from time to time (or another document 
                                approved by the Director under section 
                                10(b)); or
                                  ``(II) undergoes regular or random 
                                evaluation and assessment by the end 
                                user or end users of the screws, nuts, 
                                bolts, studs, or load-indicating 
                                washers produced under such fastener 
                                manufacturing system to ensure that 
                                such system meets the requirements of 
                                clauses (i) and (ii);
          ``(8) `grade identification marking' means any grade-mark or 
        property class symbol appearing on a fastener purporting to 
        indicate that the lot of fasteners conforms to a specific 
        consensus standard, but such term does not include a 
        manufacturer's insignia or part number;
          ``(9) `lot' means a quantity of fasteners of one part number 
        fabricated by the same production process from the same coil or 
        heat number of metal as provided by the metal manufacturer;
          ``(10) `manufacturer' means a person who fabricates fasteners 
        for sale in commerce;
          ``(11) `proprietary standard' means the provisions of a 
        document that describes characteristics of a screw, nut, bolt, 
        stud, or load-indicating washer and is issued by a person who--
                  ``(A) uses screws, nuts, bolts, studs, or load-
                indicating washers in the manufacture, assembly, or 
                servicing of its products; and
                  ``(B) with respect to such screws, nuts, bolts, 
                studs, or washers, is a developer and issuer of 
                descriptions that have characteristics similar to 
                consensus standards and that bear such user's 
                identification;
          ``(12) `record of conformance' means a record or records for 
        each lot of fasteners sold or offered for sale that contains--
                  ``(A) the name and address of the manufacturer;
                  ``(B) a description of the type of fastener;
                  ``(C) the lot number;
                  ``(D) the nominal dimensions of the fastener 
                (including diameter and length of bolts or screws), 
                thread form, and class of fit;
                  ``(E) the consensus standard or specifications to 
                which the lot of fasteners has been manufactured, 
                including the date, number, revision, and other 
                information sufficient to identify the particular 
                consensus standard or specifications being referenced;
                  ``(F) the chemistry and grade of material; and
                  ``(G) the coating material and characteristics and 
                the applicable consensus standard or specifications for 
                such coating;
          ``(13) `represent' means to describe one or more of a 
        fastener's purported characteristics in a document or statement 
        that is transmitted to a purchaser through any medium;
          ``(14) `Secretary' means the Secretary of Commerce;
          ``(15) `specifications' means the required characteristics 
        identified in the contractual agreement with the manufacturer 
        or to which a fastener is otherwise produced, except that the 
        term does not include proprietary standards; and
          ``(16) `through-harden' means heating above the 
        transformation temperature followed by quenching and tempering 
        for the purpose of achieving uniform hardness.''.

SEC. 4. SALE OF FASTENERS.

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

``SEC. 4. SALE OF FASTENERS.

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

SEC. 5. MANUFACTURERS' INSIGNIAS.

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

SEC. 6. REMEDIES AND PENALTIES.

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

SEC. 7. RECORDKEEPING REQUIREMENTS.

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

SEC. 8. RELATIONSHIP TO STATE LAWS.

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

SEC. 9. CONSTRUCTION.

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

SEC. 10. CERTIFICATION AND ACCREDITATION.

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

``SEC. 10. CERTIFICATION AND ACCREDITATION.

  ``(a) Certification.--A person publishing a document setting forth 
guidance or requirements for the certification of manufacturing 
systems, including fastener manufacturing systems, by an accredited 
third party may petition the Director to approve such document for use 
as described in section 3(7)(B)(iii)(I). The Director shall act upon a 
petition within 180 days after its filing, and shall approve such 
petition if the document provides equal or greater rigor and 
reliability as compared to ISO/IEC Guide 62.
  ``(b) Accreditation.--A person publishing a document setting forth 
guidance or requirements for the approval of accreditation bodies to 
accredit third parties described in subsection (a) may petition the 
Director to approve such document for use as described in section 
3(7)(B)(iii)(I). The Director shall act upon a petition within 180 days 
after its filing, and shall approve such petition if the document 
provides equal or greater rigor and reliability as compared to ISO/IEC 
Guide 61.
  ``(c) Laboratory Accreditation.--A person publishing a document 
setting forth guidance or requirements for the accreditation of 
laboratories may petition the Director to approve such document for use 
as described in section 3(1)(A). The Director shall act upon a petition 
within 180 days after its filing, and shall approve such petition if 
the document provides equal or greater rigor and reliability as 
compared to ISO/IEC Guide 25.
  ``(d) Approval of Accreditation Bodies.--A person publishing a 
document setting forth guidance or requirements for the approval of 
accreditation bodies to accredit laboratories may petition the Director 
to approve such document for use as described in section 3(1)(B). The 
Director shall act upon a petition within 180 days after its filing, 
and shall approve such petition if the document provides equal or 
greater rigor and reliability as compared to ISO/IEC Guide 58.''.

SEC. 11. APPLICABILITY.

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

``SEC. 11. APPLICABILITY.

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

SEC. 12. EFFECTIVE DATE.

  Section 4(d) of the Fastener Quality Act, as added by section 4 of 
this Act, shall take effect 2 years after the date of enactment of this 
Act.

                         I. Purpose of the Bill

    The purpose of the bill is to amend the Fastener Quality 
Act of 1990 (FQA) to strengthen the protection against the sale 
of mismarked, misrepresented, and counterfeit fasteners and 
eliminate unnecessary requirements, and for other purposes.

              II. Background and Need for the Legislation

    Passed by Congress in 1990, the FQA requires all threaded, 
metallic, through-hardened fasteners of one-quarter inch 
diameter or greater, that directly or indirectly reference a 
consensus standard, to be tested by a National Institute of 
Standards and Technology (NIST) certified laboratory. Despite 
its enactment in 1990, no implementing regulations for the Act 
had been finalized until April 14, 1998. The final rule was 
developed only after legislative changes amended the Act in 
1996.
    In 1990, Congress was convinced that foreign manufacturers 
were actively engaged in unfair trade practices that resulted 
in the dumping of ``substandard'' fasteners in the United 
States market. Most of the problems were associated with the 
federal procurement of fasteners at the Defense Industrial 
Supply Center (DISC) and National Aeronautics and Space 
Administration (NASA). It was concluded that substandard 
fasteners ``largely'' originated from foreign companies in 
Japan, Mexico, Spain, Korea, Taiwan, and Poland, and were the 
result of attempts to undercut legitimate U.S. fastener 
manufactures with products that were manufactured specifically 
to a lesser standard rather than the result of poor 
manufacturing processes.
    During the 105th Congress, the Science Committee worked in 
a bipartisan manner to craft legislation that was enacted into 
law as P.L. 105-234. The legislation delays implementation of 
regulations under FQA until June 1, 1999 or 120 days after the 
Secretary of Commerce issued a report on changes needed to the 
law, whichever is later. Two regulations are scheduled to be 
implemented on June 24, 1999.

                        III. Summary of Hearings

    On February 25, 1999, the Subcommittee on Technology held a 
hearing entitled ``Unscrewing the Fastener Quality Act'' to 
review the need for the FQA. Witnesses included: George Parker, 
Vice President Association of International Automobile 
Manufactures, Inc. Arlington, VA, Ed McIlhon, President Iowa 
Industrial Products, Inc., Cedar Falls, IA, and Mr. John M. 
O'Brien, Vice President Federal Screw Works FQA Reform 
Coalition, Detroit, MI.
    John O'Brien, Vice President Federal Screw Works testified 
to the need to develop a new FQA that would ensure the 
continued safety of fasteners used for commerce, but would not 
impose unnecessary and costly burdens on fastener manufacturers 
or their customers. Mr. O'Brien stated that the FQA as it 
stands now is flawed because it forces reliance on testing 
procedures and protocols that have been eclipsed by new 
technology and improved practices. Mr. O'Brien stated that 
dramatic advances in manufacturing technology and the 
implementation of quality assurance systems have resulted in a 
reduction in the defect rates in the fastener industry from the 
60,000ppm allowable under the historic consensus standards, to 
300ppm or less today. Furthermore, he stated that purchasers of 
fasteners today have taken on the responsibility of ensuring 
the quality of products they buy at the beginning ofthe 
transaction--before the fastener reaches the assembly line. Mr. O'Brien 
suggested that the thrust of the FQA should be to prevent the 
intentional sale or offering for sale of mismarked, substandard or 
counterfeit fasteners--not to regulate manufacturing and testing 
procedures. Mr. O'Brien agreed with the proposed requirement that 
manufacturers register a copyrighted insignia they imprint of 
fasteners.
    Edward J. McIlhon, President Iowa Industrial Products 
Corporation testified that there is no longer a basis or need 
for the FQA. Mr. McIlhon sited the Edgerly Report entitled ``Is 
there Still A Basis For The Fastener Quality Act?'' that 
concluded that the major problems identified in the 1988 
Congressional investigation and report have been resolved, and 
that there is no longer a basis for the finding that the health 
and safety of Americans is threatened by the widespread sale of 
mismarked, substandard and counterfeit fasteners. Mr. McIlhon 
feels that the current solution offered by NIST is still 
unworkable because it is too encumbered by the original 
language of the FQA would require redundant and unnecessary 
testing. Furthermore, he stated that the current Act does not 
permit retesting and recertification of fasteners produced 
before its date of implementation, and that this could result 
in a $1 billion loss to the industry. Mr. McIlhon testified 
that the current Act's requirements regarding laboratories are 
unworkdable, and that because a sufficient number of 
laboratories have not been available to conduct the required 
testing, the implementation of regulations has been delayed 
three times. He also mentioned that the current Act is an 
impediment to trade with our partners in Europe. Mr. McIlhon 
concluded by stating that certain portions of the Act should be 
preserved, including; the recording manufacturers' fastener 
insignias by the Patent and Trademark Office (PTO) to assure 
the trace-ability of fasteners after they are placed into 
service; the use of accredited laboratories to assure the 
quality of laboratories involved in testing fasteners under 
appropriate consensus and government standards and 
specifications; the use of grade identification markings on 
fasteners as a means of helping original equipment 
manufacturers assure that only properly manufactured and graded 
fasteners will be used in safety critical applications.
    George Parker, Association of International Automobile 
Manufacturers, Inc. testified that the current FQA would not 
provide higher levels of fastener quality, would be a step 
backward and impose costs without benefits. He also stated that 
although there is not substantial evidence that there are any 
fastener quality problems, the auto industry believes that any 
potential fastener quality problems that produce safety risks 
would derive from mismarked, substandard, and counterfeit 
fasteners. Mr. Parker stated that most major end users have 
systems in place to insure that only the highest quality 
fasteners are used in their products. Mr. Parker concluded by 
stating that if the Congress believe that a law was needed on 
general fastener quality, the auto industry recommends that 
such a law be directed at deterring the introduction of non-
conforming fasteners into commerce and to generally provide 
commercial and government customers with greater assurance that 
fasteners meet stated specifications. Finally, Mr. Parker 
stated that such a law should recognize the actions major end 
users take to insure that only high quality fasteners are used 
in their products, and should also recognize the Quality 
Assurance Systems in place to produce high quality fasteners.

                         IV. Committee Actions

    On March 25, 1998, the full committee marked up the 
legislation (H.R. 1183) which was introduced by Chairman 
Sensenbrenner. The legislation was adopted, as amended (by 
voice vote) and ordered reported to the full House for 
consideration (by voice vote). Amendments to the legislation 
were offered in the following order:
    1. Manager's En Bloc Amendment offered by Mrs. Morella and 
Mr. Barcia to, among other things, make the following changes:
           In the case of fasteners manufactured solely 
        to consensus standards, the amendment ensures that if 
        end-of-line testing is required, then the tests shall 
        be conducted by an accredited laboratory.
           Defines an ``accredited laboratory'' to be a 
        fastener testing facility that meets certain guidelines 
        established by the International Organization for 
        Standardization (ISO/IEC) in their Guide 25 or another 
        document approved by NIST. In addition, the lab must be 
        accredited by an accreditation body that meets ISO/IEC 
        Guide 58 or another document approved by NIST. In order 
        to give manufacturers time to prepare for this 
        requirement, it does not take effect until 2 years 
        after enactment.
           Clarifies that all fasteners manufactured to 
        consensus standards must bear a trademark that is 
        registered with the Department of Commerce, unless the 
        specifications indicate otherwise. In some instances, 
        fastener end-users do not want any markings on their 
        fasteners because of specific manufacturing processes.
           Eases access to documents contained in the 
        records of conformance by fastener purchasers.

               V. Summary of Major Provisions of the Bill

    H.R. 1183 modifies the Fastener Quality Act of 1990 (FQA) 
to recognize new quality practices in the fastener industry, 
focuses on assuring public safety, and imposes the least 
possible additional burdens on an already regulated industry. 
To that end, H.R. 1183 fights fraud by clarifying that anyone 
intentionally misrepresenting the strength or other 
characteristics of a fastener is subject to the criminal 
penalties and civil remedies of the Act; ensures accountability 
by requiring that virtually all fasteners sold in commerce to 
be marked with the registered trademark of their manufacturer; 
reduces the burdensome paperwork requirements of the Act by 
allowing documents to be stored and transmitted in electronic 
format; and, recognizes industry's growing utilization of 
improved quality assurance and management systems by allowing 
fasteners manufactured in accordance with certain quality 
assurance systems to be deemed in compliance with the 
requirements of the Act.

         VI. Section-by-Section Analysis (By Title and Section)

                         SECTION 1. SHORT TITLE

    This section cites the Act as ``The Fastener Quality Act 
Amendments Act of 1999''.

                    SECTION 2. FINDINGS AND PURPOSE

    This section amends the findings of the Fastener Quality 
Act (15 U.S.C. 5401) by stating that--the United States 
fastener industry is a significant contributor to the global 
economy, employing thousands of workers in hundreds of 
communities; the American economy uses billions of fasteners 
each year; state-of-the-art manufacturing and improved quality 
assurance systems have dramatically improvedfastener quality, 
so virtually all fasteners sold in commerce meet or exceed the 
consensus standards for the uses to which they are applied; a small 
number of mismarked, misrepresented, and counterfeit fasteners do enter 
commerce in the United States market, and multiple criteria for the 
identification of fasteners exist, including grade identification 
markings and manufacturer's insignia to enable purchasers and users of 
fasteners to accurately evaluate the characteristics of individual 
fasteners.

                         section 3. definitions

    As used in this Act, this section defines the following 
terms--
          (1) ``accredited laboratory'' means a fastener 
        testing facility used to perform end-of-line testing 
        required by a consensus standard or standards to verify 
        that a lot of fasteners conforms to the grade 
        identification marking called for in the consensus 
        standard or standards to which the lot of fasteners has 
        manufactured, and which--
                  (A) meets certain guidelines established by 
                the International Organization for 
                Standardization (ISO/IEC) in their Guide 25 or 
                another document approved by NIST, and
                  (B) has been accredited by an accrediation 
                body that meets ISO/IEC Guide 58 or another 
                document approved by NIST.
          (2) ``consensus standard'' means the provisions of a 
        document that describes fastener characteristics 
        published by a consensus standards organization or a 
        Federal agency, and does not include a proprietary 
        standard;
          (3) ``consensus standards organization'' means the 
        American Society for Testing and Materials, the 
        American National Standards Institute, the American 
        Society of Mechanical Engineers, the Society of 
        Automotive Engineers, the International Organization 
        for Standardization, any other organization identified 
        as a United States consensus standards organization or 
        a foreign and international consensus standards 
        organization in the Federal Register at 61 Fed. Reg. 
        50582-83 (September 26, 1996), and any successor 
        organizations thereto;
          (4) ``Director'' means the Director of the National 
        Institute of Standards and Technology;
          (5) ``distributor'' means a person who purchases 
        fasteners for the purpose of reselling them at 
        wholesale to unaffiliated entities or individuals (an 
        original equipment manufacturer and its dealers shall 
        be considered affiliated entities for purposes of this 
        Act);
          (6) ``fastener'' means a metallic screw, nut, bolt, 
        or stud having internal or external threads, with a 
        nominal diameter of 6 millimeters or greater, in the 
        case of such items described in metric terms, or \1/4\ 
        inch or greater, in the case of such items described in 
        terms of the English system of measurement, or a load-
        indicating washer, that is through-hardened or 
        represented as meeting a consensus standard that calls 
        for through-hardening, and that is grade identification 
        marked or represented as meeting consensus standard 
        that requires grade identification marking. The term 
        ``fastener'' does not include any screw, nut, bolt, stud, 
        or load-indicating washer that is--
                  (A) part of an assembly;
                  (B) in a package containing no more than 100 
                of any one screw, nut, bolt, stud, or load-
                indicating washer at the time of sale;
                  (C) produced and marked as ASTM A 307 Grade 
                A, or a successor standard thereto;
                  (D) produced in accordance with ASTM F 432, 
                or a successor standard thereto;
                  (E) specifically manufactured for use on an 
                aircraft if the quality and suitability of 
                those fasteners for that use has been 
                approved--
                          (i) by the Federal Aviation 
                        Administration; or
                          (ii) by a foreign airworthiness 
                        authority as described in part 21.29, 
                        21.500, 21.502, or 21.617 of title 14 
                        of the Code of Federal Regulations;
                  (F) manufactured in accordance with a 
                fastener quality assurance system; or
                  (G) manufactured to a proprietary standard, 
                whether or not such proprietary standard 
                directly or indirectly references a consensus 
                standard or any portion thereof;
          (7) ``fastener quality assurance system'' means--
                  (A) a system that meets the requirements, 
                including revisions from time to time, of--
                          (i) International Organization for 
                        Standardization (ISO) Standard 9000, 
                        9001, 9002, or TS16949;
                          (ii) Quality System (QS) 9000 
                        Standard;
                          (iii) Verband der Automobilindustrie 
                        e. V. (VDA) 6.1 Standard; or
                          (iv) Aerospace Basic Quality System 
                        Standard AS9000; or
                  (B) any fastener manufacturing system--
                          (i) that has as a stated goal the 
                        prevention of defects through 
                        continuous improvement;
                          (ii) that seeks to attain the goal 
                        stated in clause (i) by incorporating--
                                  (I) advance quality planning;
                                  (II) monitoring and control 
                                of the manufacturing process;
                                  (III) product verification 
                                embodied in a comprehensive 
                                written control plan for 
                                product and process 
                                characteristics, and process 
                                controls (including process 
                                influence factors and 
                                statistical process control), 
                                tests, and measurement systems 
                                to be used in production; and
                                  (IV) the creation, 
                                maintenance, and retention of 
                                electronic, photographic, or 
                                paper records required by the 
                                control plan regarding the 
                                inspections, tests, and 
                                measurements performed pursuant 
                                to the control plan; and
                          (iii) that--
                                  (I) is subject to 
                                certification in accordance 
                                with the requirements of ISO/
                                IEC Guide 62, including 
                                revisions from time to time by 
                                a third party who is accredited 
                                by an accreditation body in 
                                accordance with the 
                                requirements of ISO/IEC Guide 
                                61, including revisions from 
                                time to time, or another 
                                document approved by the 
                                Director under section 10; or
                                  (II) undergoes regular or 
                                random evaluation and 
                                assessment by the end user or 
                                end users of the screws, nuts, 
                                bolts, studs, or load-
                                indicating washers produced 
                                under such fastener 
                                manufacturing system to ensure 
                                that such system meets the 
                                requirements of clauses (i) and 
                                (ii);
          (8) ``grade identification marking'' means any grade-
        mark or property class symbol appearing on a fastener 
        purporting to indicate that the lot of fasteners 
        conforms to a specific consensus standard, but such 
        term does not include a manufacturer's insignia or part 
        number;
          (9) ``lot'' means a quantity of fasteners of one part 
        number fabricated by the same production process from 
        the same coil or heat number of metal as provided by 
        the metal manufacturer;
          (10) ``manufacturer'' means a person who fabricates 
        fasteners for sale in commerce;
          (11) ``proprietary standard'' means the provisions of 
        a document that describes characteristics of a screw, 
        nut, bolt, stud, or load-indicating washer and is 
        issued by a person who--
                  (A) uses screws, nuts, bolts, studs, or load-
                indicating washers in the manufacture, 
                assembly, or servicing of its products; and
                  (B) with respect to such screws, nuts, bolts, 
                studs, or washers, is a developer and issuer of 
                descriptions that have characteristics similar 
                to consensus standards and that bear such 
                user's identification;
          (12) ``record of conformance'' means a record or 
        records designated for each lot of fasteners sold or 
        offered for sale that contains--
                  (A) the name and address of the manufacturer;
                  (B) a description of the type of fastener;
                  (C) the lot number;
                  (D) the nominal dimensions of the fastener 
                (including diameter and length of bolts or 
                screws), thread form, and class of fit;
                  (E) the consensus standard or specifications 
                to which the lot of fasteners has been 
                manufactured, including the date, number, 
                revision, and other information sufficient to 
                identify the particular consensus standard or 
                specifications being referenced;
                  (F) the chemistry and grade of material; and
                  (G) the coating material and characteristics 
                and the applicable consensus standard or 
                specifications for such coating;
          (13) ``represent'' means to describe one or more of a 
        fastener's purported characteristics in a document or 
        statement that is transmitted to a purchaser through 
        any medium;
          (14) ``Secretary'' means the Secretary of Commerce;
          (15) ``specifications'' means the required 
        characteristics identified in the contractual agreement 
        with the manufacturer or to which a fastener is 
        otherwise produced, except that the term does not 
        include proprietary standards; and
          (16) ``through-harden'' means heating above the 
        transformation temperature followed by quenching and 
        tempering for the purpose of achieving uniform 
        hardness.

Committee views

    The Committee intends the definition of the term 
``distributor'' to mean a person who purchases fasteners for 
the purpose of reselling them at wholesale to unaffiliated 
entities or individuals. To be a distributor, a person must be 
involved in the business of trading in fasteners. The 
definition makes clear that transactions between affiliated 
entities (such as between an original equipment manufacturer 
[OEM] and its dealers) do not make the OEM a distributor. The 
Committee makes this distinction in this bill in order to avoid 
the unintended effect of creating a principal-agent or related-
companyrelationship between motor vehicle and other product 
manufacturers and their dealers. The ``distributor'' definition makes 
it clear that use of the concept of ``affiliation'' to describe the 
relationship between manufacturers and their dealers is solely for 
purposes of this Act, and is not intended to apply elsewhere.
    The Committee intends that the term ``fastener,'' and 
therefore the requirements of the bill, apply only to fasteners 
themselves and not to components or products which may contain 
fasteners. In other words, once a fastener has been 
incorporated into a product, it is no longer a fastener for the 
purposes of this legislation. The Committee also intends that 
this provision should be interpreted in a manner consistent 
with an interpretation announced by NIST in a December 10, 
1996, memorandum to the Fastener Advisory Committee. In that 
memorandum, NIST stated that fasteners that are part of a ``kit 
containing a disassembled component would not be subject to the 
law and regulations.''
    The ``fastener'' definition also excludes items that are 
sold in packages containing no more than 100 of any one screw, 
nut, bolt, stud, or washer. This provision applies primarily to 
spare parts for older equipment, installation kits for large 
assemblies, and overhaul kits. Fasteners produced in such small 
lots could become prohibitively expensive if they were subject 
to the Act, since compliance costs would be distributed over a 
much smaller number of fasteners than in the case of typical 
fastener lots used in new manufacturing. The Committee is 
concerned that the result of such cost increases would be the 
probable elimination of the fasteners from these kits and the 
individual sale of the fasteners as separate parts. If that 
should occur, customers would probably either forgo fastener 
replacement (during assembly rebuild) or locally source lower 
cost, non-specification ``hardware store'' fasteners. This 
action would result in the increased possibility of fastener 
related failures in these assemblies. The cost premium for 
packaging small lots of 100 or less would discourage any 
efforts to circumvent the law through repackaging of fasteners.
    Section 3 exempts from the bill's coverage those fasteners 
that are produced under circumstances that inherently provide 
adequate assurances of quality. One category of exempted 
fasteners is those screws, nuts, bolts, studs, and washers that 
are produced to proprietary standards. The definition of 
``proprietary standards'' is intended to include fastener 
standards that are developed by private companies that use 
fasteners in the manufacture, assembly, or service of their 
products and that develop fastener standards under the 
company's name.
    Manufacturers that develop their own proprietary fastener 
standards typically do so as part of ``closed loop'' 
procurement systems. Under these systems, manufacturers 
establish fastener design criteria that are appropriate for the 
products they manufacture, designate qualified suppliers, and 
require that suppliers meet high levels of quality assurance. 
As the Commerce Department noted in its February 24 report, 
such manufacturers ``have very stringent requirements for their 
suppliers and adequate controls to ensure consistent quality 
and fasteners that meet all the requirements of applicable 
standards and specifications.'' The Committee concurs in the 
Department's recommendation that fasteners produced to 
proprietary standards should be exempt from the law.
    The excluded category of fasteners produced to proprietary 
standards expressly encompasses fasteners produced to private 
standards that reference, to varying degrees, consensus or 
government standards. This provision is included to reverse an 
interpretation of the current law by the Commerce Department 
that would have treated as ``consensus standards'' those 
proprietary standards that reference (directly or indirectly) 
any consensus standard. References to consensus standards that 
are contained withinproprietary standards do not bring 
proprietary fasteners into the stream of commerce for generic 
fasteners. As the Commerce Department's report correctly states, 
``fasteners manufactured to specifications that merely reference 
consensus or government standards are made for major end users who are 
able to ensure they receive precisely the part they seek.'' 
Accordingly, no coverage under the amended Act is needed or intended.
    Another category of fasteners that are produced under 
circumstances that provide adequate assurance of quality is 
fasteners produced in accordance with a quality assurance 
system. Since the FQA was enacted in 1990, fastener quality 
assurance procedures have improved substantially over the lot 
sampling procedure on which the current Act was based. Strong 
evidence has been presented to the Committee that these modern 
fastener quality assurance systems (QASs) are both considerably 
more reliable and less costly than older end-of-production-line 
sampling and testing techniques. As NIST stated in its April 
14, 1998, rule: ``A lower defect rate means that fewer 
fasteners are manufactured that fail to comply with relevant 
standards and specifications, and thus that fewer defective 
fasteners will enter into commerce. Public safety is preserved 
and enhanced * * * ''
    The administrative record for this rulemaking contains 
strong evidence that QAS/Statistical Process Control (SPC) 
systems utilizing continuous monitoring and control in the 
manufacturing process yields (sic) a substantially lower defect 
rate than do traditional manufacturing techniques that rely 
solely upon end-of-line testing. SPC is a manufacturing process 
control monitoring technique used to reduce variation in the 
manufacturing process and thereby increase uniformity of the 
manufactured product. Testimony at the Public Workshop of 
February 7, 1997, indicates that the use of QAS/SPC may reduce 
the defect rate from the range of thousands or tens of 
thousands of parts-per-million experienced by traditional 
manufacturing techniques to approximately 100 parts-per-
million.
    The Committee is concerned that the restrictive language in 
the current law may impede the movement of companies toward the 
implementation of these advanced quality systems. Therefore, 
this bill provides an incentive for fastener manufacturers to 
adopt quality assurance systems, by relieving fasteners 
produced in accordance with a QAS from meeting any further 
requirements.
    The bill treats three types of advanced quality systems as 
QASs. The first category is those meeting the requirements of 
ISO Standard 9000, the fundamental international quality system 
standard. The second category of qualifying systems includes 
systems developed by specific industry sectors based on ISO-
9000, such as QS-9000, VDA 6.1, and AS-9000 (quality assurance 
systems based on the basic principles of ISO9000, but 
specifically tailored and refined for use by a particular 
industry). These systems are end-user driven, as contrasted 
with ISO9000, which is manufacturer-driven. The third category 
includes systems that meet specified performance criteria, 
including the incorporation of advanced quality planning, 
monitoring and control of manufacturing processes, use of a 
written control plan, record retention, and either ``second-
party'' or ``third-party'' verification. Second-party 
verification involves evaluation and assessment of the 
fasteners manufacturer's quality procedures

by the end user, the party with the strongest incentive to 
insist on high quality levels. Third-party certification of a 
fastener manufacturer's quality system involves oversight by 
accredited, independent inspectors. The third-party 
certification process must meet either (i) the internationally 
recognized requirements of ISO Guides 61 and 62 or (ii) 
equivalent requirements, as determined by NIST through a 
petitioning process. NIST must approve alternative 
certification/accreditation requirements that are equally 
rigorous and reliable as compared to ISO Guides 61 and 62. 
Systems that meet ISO-9000, industry-specific derivatives of 
that standard, or other systems that meet the specified 
performancecriteria of the bill are automatically deemed to be 
qualifying QASs. The Department's role is to determine the equivalence 
of certain third-party certification processes to the ISO Guide 61/62 
process in a timely manner.

                      SECTION 4. SALE OF FASTENERS

    This section establishes that it shall be unlawful for a 
manufacturer or distributor, in conjunction with a sale or 
offer for sale of a fastener, to knowingly misrepresent or 
falsify--
          (1) the record of conformance for the lot of 
        fasteners;
          (2) the identification, characteristics, properties, 
        mechanical or performance marks, chemistry, or strength 
        of the lot of fasteners; or
          (3) the manufacturer's insignia.
    Subsection (b) establishes that a direct or indirect 
reference to a consensus standard to represent that a fastener 
conforms to particular requirements of the consensus standard 
shall not be construed as a representation that the fastener 
conforms to all the requirements of the consensus standard.
    Subsection (c) establishes that a direct or indirect 
contractual reference to a consensus standard for the purpose 
of identifying particular requirements of the consensus 
standard that serve as specifications shall not be construed to 
require that the fastener meet all the requirements of the 
consensus standard.
    Subsection (d) establishes that in the case of fasteners 
manufactured solely to consensus standards, if end-of-line 
testing is required by the consensus standard or standards, 
then the tests shall be conducted by an accredited laboratory.

Committee view

    The Committee recognizes that many of the original problems 
that led to the passage of the FQA in 1990 were attributed to 
mismarked or fraudulent fasteners. Section 4 fights fastener 
fraud by clarifying that it is unlawful for any manufacturer or 
distributor to intentionally misrepresent or falsify the 
required fastener documentation requirements. Manufacturers of 
fasteners bear the responsibility to provide proof that the 
chemical and physical properties of their product are what they 
are represented to be. Those who intentionally commit fraud 
during the sale of fasteners may be subject to both the 
criminal penalties and civil remedies detailed in Section 6 of 
this bill.
    This bill amends the FQA to clarify that all fasteners, 
whether foreign or domestic in origin, must be treated the same 
for purposes of complying with the Act. The Committee intends 
that the provisions of this bill be implemented in the least 
trade restrictive manner as possible.
    This section requires the use of accredited laboratories 
only for end-of-line testing that is specified in a consensus 
standard for the purpose of verifying that a lot of fasteners 
conforms with the applicable grade identification marking in 
the standard. In this context, ``end-of-line'' testing refers 
to testsconducted on finished fasteners, as opposed to process 
controls that check an ongoing production process.

                  section 5. manufacturers' insignias

    This section redesignates Section 8 of the Fastener Quality 
Act (15 U.S.C. 5407) as section 5.
    Subsection (a) establishes the following new general rule--
``Unless the specifications provide otherwise, a fastener that 
is required by the applicable consensus standard or standards 
to bear an insignia identifying its manufacturer shall not be 
offered for sale or sold in commerce unless--(1) the fastener 
bears such insignia; and (2) the manufacturer has complied with 
the insignia recordation requirements established under 
subsection (b)''.

Committee view

    The Committee believes that Section 5 ensures manufacturer 
accountability by requiring most fasteners sold in commerce 
include the registered trademark of their manufacturer.

                   section 6. remedies and penalties

    This section redesignates Section 9 of the Fastener Quality 
Act (15 U.S.C. 5408) as section 6.
    Subsection (b)(3) is amended to clarify the reference to 
this subsection.
    Subsection (b)(4) is amended to allow the Secretary to 
arbitrate civil penalties imposed under this section prior to 
referral to the Attorney General.
    Paragraph (3) of subsection (c)--which allowed criminal 
penalties of up to 2 years in prison for individuals who 
negligently failed to maintain the fastener records required by 
the Act--is stricken.
    A new paragraph (2) is added to Subsection (d) as follows:
    ``(2) The Secretary, acting through the Director, shall 
establish and maintain a hotline system to facilitate the 
reporting of alleged violations of this Act, and the Secretary 
shall investigate credible allegations reported through that 
system.''.

Committee view

    The Committee recognizes that the fastener industry 
continues to do a satisfactory job of monitoring their own 
manufacturers and distributors. To assist in this effort, 
Section 6 directs the Department to establish and maintain a 
hotline system to facilitate the reporting of alleged 
violations of this Act.

                 section 7. recordkeeping requirements

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

Committee view

    To ensure accountability, Section 7 requires manufacturers 
to retain a record of conformance for fasteners for 5 years. 
The Committee intends for commercial end-users of purchased 
fasteners to have access to the documents upon reasonable 
demand. Finally, the Committee intends to reduce the burdensome 
paperwork requirements of the FQA by allowing documents to be 
stored and transmitted in electronic format.

                 SECTION 8. RELATIONSHIP TO STATE LAWS

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

                        SECTION 9. CONSTRUCTION

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

              SECTION 10. CERTIFICATION AND ACCREDITATION

    Sections 13 and 15 of the Fastener Quality Act (15 U.S.C. 
5412 and 14) are repealed, and the following new section is 
inserted at the end of that Act:
    ``(a) Certification.--A person publishing a document 
setting forth guidance or requirements for the certification of 
manufacturing systems, including fastener manufacturing 
systems, by an accredited third party may petition the Director 
to approve such document for use as described in section 
3(6)(B)(iii)(I). The Director shall act upon a petition within 
180 days after its filing, and shall approve such petition if 
the document provides equal or greater rigor and reliability as 
compared to ISO/IEC Guide 62.
    ``(b) Accreditation.--A person publishing a document 
setting forth guidance or requirements for the approval of 
accreditation bodies to accredit third parties described in 
subsection (a) may petition the Director to approve such 
document for use as described in section 3(6)(B)(iii)(I). The 
Director shall act upon a petition within 180 days after its 
filing, and shall approve such petition if the document 
provides equal or greater rigor and reliability as compared to 
ISO/IEC Guide 61.
    ``(c) Laboratory Accreditation.--A person publishing a 
document setting forth guidance or requirements for the 
accreditation of laboratories may petition the Director to 
approve such document for use as described in section 3(1)(A). 
The Director shall act upon a petition within 180 days after 
its filing, and shall approve such petition if the document 
provides equal or greater rigor and reliability as compared to 
ISO/IEC Guide 25.
    ``(d) Approval of Accredition Bodies.--A person publishing 
a document setting forth guidance or requirements for the 
approval of accreditation bodies to accredit laboratories may 
petition the Director to approve such document for use as 
described in section 3(1)(B). The Director shall act upon a 
petition within 180 days after its filing, and shall approve 
such petition if the document provides equal or greater rigor 
and reliability as compared to ISO/IEC Guide 58.''.

Committee view

    As discussed in Section 3, systems that meet ISO-9000, 
industry-specific derivatives of that standard, or other 
systems that meet the specified performance criteria of the 
bill are automatically deemed to be qualifying QASs. The 
Committee believes the Department's role is to determine the 
equivalence of certain third-party certification processes to 
the ISO Guide 61/62 process in a timely manner.
    The Committee recognizes that quality management systems 
are dynamic, as are the recognized means of evaluating them. 
According, Section 10 is intended to give the Director the 
ability to expand the universe of quality management systems 
and the means of evaluating those systems. At the same time, 
Section 10 requires that such new systems or evaluation methods 
be recognized as providing the same or greater rigor and 
reliability as those referenced in the bill.

                       section 11. applicability

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

Committee view

    Recognizing that manufacturers and distributors of 
fasteners may have fasteners in stock that were fabricated 
before enactment of this legislation, Section 11 allows those 
fasteners to be represented as in compliance with the FQA if 
the manufacturer or distributor designates a record of 
conformance for such fasteners. The representations about such 
fasteners shall be subject to the requirements and penalties of 
this Act.

                       section 12. effective date

    Section 4(d) of the Fastener Quality Act, as added by 
section 4 of this Act, shall take effect 2 years after the date 
of enactment of this Act.

Committee view

    Section 12 states that the requirement for the use of 
accredited labs takes effect 2 years after the enactment date 
of this Act. This is necessary and appropriate for several 
reasons. First, although a number of labs have been accredited 
by NIST, the committee is not convinced that a sufficient 
number of labs are available to do all required tests within a 
reasonable time. The 2-year time period allows manufacturers 
adequate time to locate an accredited lab or to accredit their 
own in-house facility if desired.
    Second, the committee is concerned that existing business 
relationships could be disrupted unintentionally without the 2-
year delay. If a manufacturer is currently using a lab that is 
not accredited, but is providing good results, the committee 
does not envision that the manufacturer would be forced to 
choose another lab immediately. The 2-year delay allows time 
for the lab to become accredited, if it so chooses, without an 
interruption in the business relationship.
    Finally, the committee wishes to encourage manufacturers to 
improve their manufacturing quality procedures. Accordingly, if 
manufacturers currently have internal labs, the 2-year delay 
gives adequate time to meet the new requirements.

                          VII. Committee Views

    [Committee Views are included in Section by Section]

                          VIII. Cost Estimate

    Rule XIII, clause 3(d)(2) of the House of Representatives 
requires each committee report accompanying each bill or joint 
resolution of a public character to contain: (1) an estimate, 
made by such committee, of the costs which would be incurred in 
carrying out such bill or joint resolution in the fiscal year 
in which it is reported and in each of the five fiscal years 
following such fiscal year (or for the authorized duration of 
any program authorized by such bill or joint resolution, if 
less than five years); (2) a comparison of the estimate of 
costs described in subparagraph (1) of this paragraph made by 
such committee with an estimate of such costs made by any 
Government agency and submitted to such committee; and (3) when 
practicable a comparison of the total estimated funding level 
for the relevant program (or programs) with the appropriate 
levels under current law. However, House Rule XIII, clause 
3(d)(3)(B) provides that this requirement does not apply when a 
cost estimate and comparison prepared by the Director of 
Congressional Budget Office under section 403 of the 
Congressional Budget Act of 1974 has been timely submitted 
prior to the filing of the report and included in the report 
pursuant to House Rule XIII, clause 3(c)(3). A cost estimate 
and comparison prepared by the Director of the Congressional 
Budget Office under section 403 of the Congressional Budget Act 
of 1974 has been timely submitted prior to the filing of this 
report and is included in Section XI of this report pursuant to 
House Rule XIII, clause 3(c)(3)
    Rule XIII, clause 3(c)(2) of the House of Representatives 
requires each committee report that accompanies a measure 
providing new budget authority (other than continuing 
appropriations), new spending authority, or new credit 
authority, or changes in revenues or tax expenditures to 
contain a cost estimate, as required by section 308(a)(1) of 
the Congressional Budget Act of 1974 and, when practicable with 
respect to estimates of new budget authority, a comparison of 
the total estimated funding level for the relevant program (or 
programs) to the appropriate levels under current law. H.R.1183 
does not contain any new budget authority, credit authority, or changes 
in revenues or tax expenditures.

             IX. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 8, 1999.
Hon. F. James Sensenbrenner, Jr.,
Chairman, Committee on Science,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1183, the Fastener 
Quality Act Amendments Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Mark Hadley 
(for federal costs) and Lesley Frymier (for the private-sector 
impact).
            Sincerely,
                                          Dan L. Crippen, Director.
    Enclosure.

H.R. 1183--Fastener Quality Act Amendments Act of 1999

    The Fastener Quality Act (Public Law 101-592) imposes 
testing, recordkeeping, and disclosure requirements on 
manufacturers, distributors, and importers of certain screws, 
bolts, nuts, studs, and load-bearing washers. H.R. 1183 would 
change the requirements for certifying documents and 
accrediting laboratories that test fasteners.
    Based on information from the National Institute of 
Standards and Technology (NIST), CBO estimates that NIST would 
spend less than $500,000 a year to implement the bill, subject 
to the availability of appropriated funds. H.R. 1183 would not 
affect direct spending or receipts; therefore, pay-as-you-go 
procedures would not apply.
    H.R. 1183 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The bill would have significant effects on the private 
sector. Under current law, regulations to implement the 
Fastener Quality Act will go into effect on June 1, 1999. As 
currently written, those regulations will impose testing, 
certification, insignia, and recordkeeping requirements on 
manufacturers, distributors, importers, and other private-
sector entities in the fastener industry. According to industry 
sources, the pending regulations will impose significant costs 
on those entities. H.R. 1183 would amend the law that underlies 
the new regulations, and NIST would have to modify the 
regulations to conform with the provisions of the bill. Based 
on information provided by government and industry sources, CBO 
estimates that the resulting new regulations would 
significantly reduce the requirements imposed on the private 
sector relative to current law.
    The CBO staff contacts are Mark Hadley for federal costs 
and Lesley Frymier for the private-sector impact. This estimate 
was approved by Robert A. Sunshine, Deputy Assistant Director 
for Budget Analysis.

                  X. Compliance With Public Law 104-4

    H.R. 1183 contains no unfunded mandates.

          XI. Committee Oversight Findings and Recommendations

    Rule XIII, clause 3(c)(1) of the House of Representatives 
requires each committee report to include oversight findings 
and recommendations required pursuant to clause 2(b)(1) of rule 
X. The Committee has no oversight findings.

    XII. Oversight Findings and Recommendations by the Committee on 
                    Government Reform and Oversight

    Rule XIII, clause 3(c)(4) of the House of Representatives 
requires each committee report to contain a summary of the 
oversight findings and recommendations made by the House 
Government Reform and Oversight Committee pursuant to clause 
4(c)(2) of rule X, whenever such findings and recommendations 
have been submitted to the Committee in a timely fashion. The 
Committee on Science has received no such findings or 
recommendations from the Committee on Government Reform and 
Oversight.

                XIII. Constitutional Authority Statement

    Rule XIII, clause 3(d)(1) of the House of Representatives 
requires each report of a committee on a bill or joint 
resolution of a public character to include a statement citing 
the specific powers granted to the Congress in the Constitution 
to enact the law proposed by the bill or joint resolution. 
Article I, section 8 of the Constitution of the United States 
grants Congress the authority to enact H.R. 1183.

               XIV. Federal Advisory Committee Statement

    H.R. 1183 does not establish nor authorize the 
establishment of any advisory committee.

                  XV. Congressional Accountability Act

    The Committee finds that H.R. 1183 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act (Public Law 104-1).

       XVI. Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                         FASTENER QUALITY ACT

           *       *       *       *       *       *       *

[SEC. 2. FINDINGS AND PURPOSE.

  [(a) Findings.--The Congress finds that--
          [(1) the American economy uses billions of fasteners 
        each year;
          [(2) millions of mismarked, substandard, counterfeit, 
        and other nonconforming fasteners have been sold in 
        commerce to end-users in the United States, and their 
        use has dramatically increased the risk of equipment 
        and infrastructure failures;
          [(3) both the military and civilian sectors of the 
        economy have encountered unnecessary, unwarranted, and 
        dangerous equipment and construction failures, as well 
        as extraordinary expenses, as a result of the use of 
        nonconforming fasteners;
          [(4) the purchase and use of nonconforming fasteners 
        stem from material misrepresentations about such 
        fasteners made by certain manufacturers, importers, and 
        distributors engaged in commerce;
          [(5) current fastener standards of measurement 
        evaluate bolts and other fasteners according to 
        multiple criteria, including strength, hardness, and 
        composition, and provide grade identification markings 
        on fasteners to make the characteristics of individual 
        fasteners clear to purchasers and users;
          [(6) current tests required by consensus standards, 
        designed to ensure that fasteners are of standard 
        measure, are adequate and appropriate for use as 
        standards in a program of high-strength fastener 
        testing;
          [(7) the lack of traceability of fasteners sold in 
        commerce is a serious impediment to effective quality 
        control efforts; and
          [(8) the health and safety of Americans is threatened 
        by the widespread sale in commerce of mismarked, 
        substandard, and counterfeit fasteners, a practice 
        which also harms American manufacturers, importers, and 
        distributors of safe and conforming fasteners, and 
        workers in the American fastener industry.
  [(b) Purpose.--In order to protect public safety, to deter 
the introduction of nonconforming fasteners into commerce, to 
improve the traceability of fasteners in commerce, and 
generally to provide commercial and governmental customers with 
greater assurance that fasteners meet stated specifications, it 
is the purpose of this Act to create procedures for the 
testing, certification, and distribution of certain fasteners 
used in commerce within the United States.

[SEC. 3. DEFINITIONS.

  [As used in this Act, the term--
          [(1) ``alter'' means to alter--
                  [(A) by through-hardening,
                  [(B) by electroplating of fasteners, or
                  [(C) by machining;
          [(2) ``consensus standards organization'' means the 
        American Society for Testing and Materials, American 
        National Standards Institute, American Society of 
        Mechanical Engineers, Society of Automotive Engineers, 
        or any other consensus standard-setting organization 
        determined by the Secretary to have comparable 
        knowledge, expertise, and concern for health and safety 
        in the field for which such organization purports to 
        set standards;
          [(3) ``container'' means any package of fasteners 
        traded in commerce;
          [(4) ``Director'' means the Director of the National 
        Institute of Standards and Technology;
          [(5) ``fastener'' means--
                  [(A) a--
                          [(i) screw, nut, bolt, or stud having 
                        internal or external threads, or
                          [(ii) a load-indicating washer,
                with a nominal diameter of 5 millimeters or 
                greater, in the case of such items described in 
                metric terms, or \1/4\ inch or greater, in the 
                case of such items described in terms of the 
                English system of measurement, which contains 
                any quantity of metal and is held out as 
                meeting a standard or specification which 
                requires through-hardening,
                  [(B) a screw, nut, bolt, or stud having 
                internal or external threads which bears a 
                grade identification marking required by a 
                standard or specification, or
                  [(C) a washer to the extent that it is 
                subject to a standard or specification 
                applicable to a screw, nut, bolt, or stud 
                described in subparagraph (B),
        except that such term does not include any screw, nut, 
        bolt, or stud that is produced and marked as ASTM A 307 
        Grade A or produced in accordance with ASTM F 432;
          [(6) ``grade identification marking'' means any 
        symbol appearing on a fastener purporting to indicate 
        that the fastener's base material, strength properties, 
        or performance capabilities conform to a specific 
        standard of a consensus standards organization or 
        government agency;
          [(7) ``importer'' means a person located within the 
        United States who contracts for the initial purchase of 
        fasteners manufactured outside the United States for 
        resale or such person's use within the United States;
          [(8) ``Institute'' means the National Institute of 
        Standards and Technology;
          [(9) ``lot'' means a quantity of fasteners of one 
        part number fabricated by the same production process 
        from the same coil or heat number of metal as provided 
        by the metal manufacturer and submitted for inspection 
        and testing at one time;
          [(10) ``manufacturer'' means a person who fabricates 
        fasteners, or who alters any item so that it becomes a 
        fastener;
          [(11) ``private label distributor'' means a person 
        who contracts with a manufacturer for the fabrication 
        of fasteners bearing the distributor's distinguishing 
        insignia;
          [(12) ``Secretary'' means the Secretary of Commerce;
          [(13) ``standards and specifications'' means the 
        provisions of a document published by a consensus 
        standards organization or a government agency; and
          [(14) ``through-harden'' means heating above the 
        transformation temperature followed by quenching and 
        tempering for the purpose of achieving a uniform 
        hardness.]

SEC. 2. FINDINGS.

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

SEC. 3. DEFINITIONS.

  As used in this Act, the term--
          (1) ``accredited laboratory'' means a fastener 
        testing facility used to perform end-of-line testing 
        required by a consensus standard or standards to verify 
        that a lot of fasteners conforms to the grade 
        identification marking called for in the consensus 
        standard or standards to which the lot of fasteners has 
        been manufactured, and which--
                  (A) meets the requirements of ISO/IEC Guide 
                25, including revisions from time to time, or 
                another document approved by the Director under 
                section 10(c); and
                  (B) has been accredited by a laboratory 
                accreditation body that meets the requirements 
                of ISO/IEC Guide 58, including revisions from 
                time to time, or another document approved by 
                the Director under section 10(d);
          (2) ``consensus standard'' means the provisions of a 
        document that describes fastener characteristics 
        published by a consensus standards organization or a 
        Federal agency, and does not include a proprietary 
        standard;
          (3) ``consensus standards organization'' means the 
        American Society for Testing and Materials, the 
        American National Standards Institute, the American 
        Society of Mechanical Engineers, the Society of 
        Automotive Engineers, the International Organization 
        for Standardization, any other organization identified 
        as a United States consensus standards organization or 
        a foreign and international consensus standards 
        organization in the Federal Register at 61 Fed. Reg. 
        50582-83 (September 26, 1996), and any successor 
        organizations thereto;
          (4) ``Director'' means the Director of the National 
        Institute of Standards and Technology;
          (5) ``distributor'' means a person who purchases 
        fasteners for the purpose of reselling them at 
        wholesale to unaffiliated entities or individuals (an 
        original equipment manufacturer and its dealers shall 
        be considered affiliated entities for purposes of this 
        Act);
          (6) ``fastener'' means a metallic screw, nut, bolt, 
        or stud having internal or external threads, with a 
        nominal diameter of 6 millimeters or greater, in the 
        case of such items described in metric terms, or \1/4\ 
        inch or greater, in the case of such items described in 
        terms of the English system of measurement, or a load-
        indicating washer, that is through-hardened or 
        represented as meeting a consensus standard that calls 
        for through-hardening, and that is grade identification 
        marked or represented as meeting a consensus standard 
        that requires grade identification marking, except that 
        such term does not include any screw, nut, bolt, stud, 
        or load-indicating washer that is--
                  (A) part of an assembly;
                  (B) in a package containing no more than 100 
                of any one screw, nut, bolt, stud, or load-
                indicating washer at the time of sale;
                  (C) produced and marked as ASTM A 307 Grade 
                A, or a successor standard thereto;
                  (D) produced in accordance with ASTM F 432, 
                or a successor standard thereto;
                  (E) specifically manufactured for use on an 
                aircraft if the quality and suitability of 
                those fasteners for that use has been 
                approved--
                          (i) by the Federal Aviation 
                        Administration; or
                          (ii) by a foreign airworthiness 
                        authority as described in part 21.29, 
                        21.500, 21.502, or 21.617 of title 14 
                        of the Code of Federal Regulations;
                  (F) manufactured in accordance with a 
                fastener quality assurance system; or
                  (G) manufactured to a proprietary standard, 
                whether or not such proprietary standard 
                directly or indirectly references a consensus 
                standard or any portion thereof;
          (7) ``fastener quality assurance system'' means--
                  (A) a system that meets the requirements, 
                including revisions from time to time, of--
                          (i) International Organization for 
                        Standardization (ISO) Standard 9000, 
                        9001, 9002, or TS16949;
                          (ii) Quality System (QS) 9000 
                        Standard;
                          (iii) Verband der Automobilindustrie 
                        e. V. (VDA) 6.1 Standard; or
                          (iv) Aerospace Basic Quality System 
                        Standard AS9000; or
                  (B) any fastener manufacturing system--
                          (i) that has as a stated goal the 
                        prevention of defects through 
                        continuous improvement;
                          (ii) that seeks to attain the goal 
                        stated in clause (i) by incorporating--
                                  (I) advance quality planning;
                                  (II) monitoring and control 
                                of the manufacturing process;
                                  (III) product verification 
                                embodied in a comprehensive 
                                written control plan for 
                                product and process 
                                characteristics, and process 
                                controls (including process 
                                influence factors and 
                                statistical process control), 
                                tests, and measurement systems 
                                to be used in production; and
                                  (IV) the creation, 
                                maintenance, and retention of 
                                electronic, photographic, or 
                                paper records required by the 
                                control plan regarding the 
                                inspections, tests, and 
                                measurements performed pursuant 
                                to the control plan; and
                          (iii) that--
                                  (I) is subject to 
                                certification in accordance 
                                with the requirements of ISO/
                                IEC Guide 62, including 
                                revisions from time to time (or 
                                another document approved by 
                                the Director under section 
                                10(a)), by a third party who is 
                                accredited by an accreditation 
                                body in accordance with the 
                                requirements of ISO/IEC Guide 
                                61, including revisions from 
                                time to time (or another 
                                document approved by the 
                                Director under section 10(b)); 
                                or
                                  (II) undergoes regular or 
                                random evaluation and 
                                assessment by the end user or 
                                end users of the screws, nuts, 
                                bolts, studs, or load-
                                indicating washers produced 
                                under such fastener 
                                manufacturing system to ensure 
                                that such system meets the 
                                requirements of clauses (i) and 
                                (ii);
          (8) ``grade identification marking'' means any grade-
        mark or property class symbol appearing on a fastener 
        purporting to indicate that the lot of fasteners 
        conforms to a specific consensus standard, but such 
        term does not include a manufacturer's insignia or part 
        number;
          (9) ``lot'' means a quantity of fasteners of one part 
        number fabricated by the same production process from 
        the same coil or heat number of metal as provided by 
        the metal manufacturer;
          (10) ``manufacturer'' means a person who fabricates 
        fasteners for sale in commerce;
          (11) ``proprietary standard'' means the provisions of 
        a document that describes characteristics of a screw, 
        nut, bolt, stud, or load-indicating washer and is 
        issued by a person who--
                  (A) uses screws, nuts, bolts, studs, or load-
                indicating washers in the manufacture, 
                assembly, or servicing of its products; and
                  (B) with respect to such screws, nuts, bolts, 
                studs, or washers, is a developer and issuer of 
                descriptions that have characteristics similar 
                to consensus standards and that bear such 
                user's identification;
          (12) ``record of conformance'' means a record or 
        records for each lot of fasteners sold or offered for 
        sale that contains--
                  (A) the name and address of the manufacturer;
                  (B) a description of the type of fastener;
                  (C) the lot number;
                  (D) the nominal dimensions of the fastener 
                (including diameter and length of bolts or 
                screws), thread form, and class of fit;
                  (E) the consensus standard or specifications 
                to which the lot of fasteners has been 
                manufactured, including the date, number, 
                revision, and other information sufficient to 
                identify the particular consensus standard or 
                specifications being referenced;
                  (F) the chemistry and grade of material; and
                  (G) the coating material and characteristics 
                and the applicable consensus standard or 
                specifications for such coating;
          (13) ``represent'' means to describe one or more of a 
        fastener's purported characteristics in a document or 
        statement that is transmitted to a purchaser through 
        any medium;
          (14) ``Secretary'' means the Secretary of Commerce;
          (15) ``specifications'' means the required 
        characteristics identified in the contractual agreement 
        with the manufacturer or to which a fastener is 
        otherwise produced, except that the term does not 
        include proprietary standards; and
          (16) ``through-harden'' means heating above the 
        transformation temperature followed by quenching and 
        tempering for the purpose of achieving uniform 
        hardness.

[SEC. 5. TESTING AND CERTIFICATION OF FASTENERS.

  [(a) Requirement.--(1) No fastener shall be offered for sale 
or sold in commerce unless it is part of a lot which--
          [(A) conforms to the standards and specifications to 
        which the manufacturer represents it has been 
        manufactured; and
          [(B) has been inspected, tested, and certified as 
        provided in subsections (b), (c), and (d) of this 
        section.
  [(2)(A) Paragraph (1)(B) of this subsection shall not apply 
to fasteners which are part of a lot of 50 fasteners or less 
if, within 10 working days after the delivery of such 
fasteners, or as soon as practicable thereafter--
          [(i) inspection, testing, and certification as 
        provided in subsections (b), (c), and (d) is carried 
        out; and
          [(ii) written notice detailing the results of such 
        inspection, testing, and certification is sent (I) to 
        all purchasers of such fasteners, except retail sellers 
        and retail consumers, and (II) to any retail seller or 
        retail consumer who, prior to delivery, requests such 
        written notice.
  [(B) If a fastener is sold under this paragraph, each 
purchaser of such fastener, except for retail sellers and 
retail consumers unless such retail sellers and retail 
consumers request such notice in advance, shall be provided, 
contemporaneously with each sale anddelivery, written notice 
stating that such fastener has not yet been inspected, tested, and 
certified as required by this Act.
  [(b) Inspection and Testing.--(1) The manufacturer of a lot 
of fasteners shall cause to be inspected and tested a 
representative sample, as provided in paragraph (2) of this 
subsection, of the fasteners in such lot to determine whether 
the lot conforms to the standards and specifications to which 
the manufacturer represents it has been manufactured. Such 
inspection and testing shall be performed by a laboratory 
accredited in accordance with the procedures and conditions 
specified by the Secretary under section 6. The standards and 
specifications to which the manufacturer represents such lot 
has been manufactured shall be disclosed by the manufacturer to 
the laboratory at the time the lot is submitted for inspection 
and testing under this paragraph. The manufacturer of a lot may 
perform the inspection and testing required by this paragraph 
in a laboratory which it owns or with which it is otherwise 
affiliated, if such laboratory is accredited in accordance with 
the procedures and conditions specified by the Secretary under 
section 6; unless the Secretary finds that, as to a specific 
type of fastener and as to a specific type of inspection or 
testing, a ban on manufacturer ownership or affiliation with 
the accredited laboratory would increase the protection of 
health and safety of the public or industrial workers.
  [(2) The size, selection, and integrity of the sample to be 
inspected and tested under paragraph (1) shall be governed--
          [(A) by the standards and specifications to which the 
        manufacturer represents the fasteners in the sample 
        have been manufactured; or
          [(B) if such standards and specifications do not 
        provide for the size, selection, or integrity of the 
        sample, by sampling procedures prescribed by the 
        Secretary, who shall to the extent practicable use 
        consensus testing standards and related materials.
Nothing in this paragraph shall prohibit a purchaser from 
requiring the inspection and testing of a greater number of 
fasteners from a lot than is specified in the applicable 
standards and specifications or in the applicable sampling 
procedures prescribed by the Secretary.
  [(c) Laboratory Report of Testing.--If a laboratory 
performing the inspection and testing under subsection (b)(1) 
determines, as to the characteristics selected under the 
sampling procedures prescribed by the Secretary and based on 
the sample examined, that a lot conforms to the standards and 
specifications to which the manufacturer represents it has been 
manufactured, the laboratory shall provide to the manufacturer 
a written inspection and testing report with respect to such 
lot. The report, which shall be in a form prescribed by the 
Secretary by regulation, shall--
          [(1) state the manufacturer's name, the part 
        description, and the lot number and note the grade 
        identification mark and insignia found on the fastener;
          [(2) reference the standards and specifications 
        disclosed by the manufacturer with respect to such lot 
        under subsection (b)(1);
          [(3) list the markings and characteristics selected 
        under the Secretary's procedures for testing 
        significant characteristics required by the standards 
        and specifications described in paragraph (2) and 
        specify the results of the inspection and testing under 
        subsection (b)(1);
          [(4) except as provided in subsection (d), state 
        whether, based on the samples provided as 
        representative of the lot, such lot has been found 
        after such inspection and testing to conform to such 
        standards and specifications; and
          [(5) bear the original signature of a laboratory 
        employee or officer determined by the Secretary to be 
        responsible for the accuracy of the report and of the 
        inspection and testing to which it relates.
  [(d) Alternative Procedure for Chemical Characteristics.--
Notwithstanding the requirements of subsections (b) and (c), a 
manufacturer shall be deemed to have demonstrated, for purposes 
of subsection (a)(1), that the chemical characteristics of a 
lot conform to the standards and specifications to which the 
manufacturer represents such lot has been manufactured if the 
following requirements are met:
          [(1) The coil or heat number of metal from which such 
        lot was fabricated has been inspected and tested with 
        respect to its chemical characteristics by a laboratory 
        accredited in accordance with the procedures and 
        conditions specified by the Secretary under section 6.
          [(2) Such laboratory has provided to the 
        manufacturer, either directly or through the metal 
        manufacturer, a written inspection and testing report, 
        which shall be in a form prescribed by the Secretary by 
        regulation, listing the chemical characteristics of 
        such coil or heat number.
          [(3) The report described in paragraph (2) indicates 
        that the chemical characteristics of such coil or heat 
        number conform to those required by the standards and 
        specifications to which the manufacturer represents 
        such lot has been manufactured.
          [(4) The manufacturer demonstrates that such lot has 
        been fabricated from the coil or heat number of metal 
        to which the report described in paragraphs (2) and (3) 
        relates.
In prescribing the form of report required by subsection (c), 
the Secretary shall provide for an alternative to the statement 
required by subsection (c)(4), insofar as such statement 
pertains to chemical characteristics, for cases in which a 
manufacturer elects to use the procedure permitted by this 
subsection.

[SEC. 6. LABORATORY ACCREDITATION.

  [(a) Establishment of Accreditation Program.--(1) The 
Secretary, acting through the Director, shall issue regulations 
which shall include--
          [(A) procedures and conditions, including sampling 
        procedures referred to in section 5, for the 
        accreditation by the Institute of laboratories engaged 
        in the inspection and testing of fasteners under 
        section 5;
          [(B) procedures and conditions (which shall be 
        consistent with the procedures and conditions 
        established under subparagraph (A)), using to the 
        extent practicable the requirements of national or 
        international consensus documents intended to govern 
        the operation of accreditation bodies, under which 
        private entities may apply for approval by the Secretary 
        to engage directly in the accreditation of laboratories in 
        accordance with the requirements of this Act; and
          [(C) conditions (which shall be consistent with the 
        procedures and conditions established under 
        subparagraph (A)), under which the accreditation of 
        foreign laboratories by their governments or 
        organizations recognized by the Director shall be 
        deemed to satisfy the laboratory accreditation 
        requirements of this section.
  [(2) Upon establishing a laboratory accreditation program 
under paragraph (1), the Secretary shall publish a notice in 
the Federal Register stating that the Secretary is prepared to 
accept applications for accreditation of such laboratories.
  [(3) No accreditation provided under the terms of this 
subsection shall be effective for a period of greater than 3 
years.
  [(b) Laboratory Accreditation Procedures.--Existing Institute 
accreditation procedures stated in part 7 of title 15, Code of 
Federal Regulations, as in effect on the date of enactment of 
this Act, supplemented as the Secretary considers necessary, 
shall be used to accredit laboratories under the accreditation 
program established under subsection (a).
  [(c) Ensuring Compliance.--(1) The Secretary shall ensure 
that--
          [(A) private entities accrediting laboratories under 
        procedures and conditions established under subsection 
        (a)(1)(B) comply with such procedures and conditions, 
        and
          [(B) laboratories accredited by such private 
        entities, or by foreign governments pursuant to 
        subsection (a)(1)(C), comply with the requirements for 
        such accreditation.
  [(2) The Secretary may require any such private entity or 
laboratory to provide all records and materials that may be 
necessary to allow the Secretary to carry out this subsection.
  [(d) Operation of Laboratory Accreditation Program.--(1) The 
Director may hire such contractors as are necessary to carry 
out the accreditation program established under subsection (a).
  [(2) Costs to the Institute and to the Secretary for the 
establishment and operation of the accreditation program under 
this section shall be fully reimbursable to the Institute or to 
the Secretary, as appropriate, through fees or other charges 
for accreditation services under such program.
  [(e) Recommendations to Consensus Standards Organizations.--
The Director shall periodically transmit to appropriate 
consensus standards organizations any information or 
recommendations that may be useful in the establishment or 
application by such organizations of standards and 
specifications for fasteners.

[SEC. 7. SALE OF FASTENERS SUBSEQUENT TO MANUFACTURE.

  [(a) Domestically Produced Fasteners.--It shall be unlawful 
for a manufacturer to sell any shipment of fasteners covered by 
this Act which are manufactured in the United States unless the 
fasteners--
          [(1) have been manufactured according to the 
        requirements of the applicable standards and 
        specifications and have been inspected and tested by a 
        laboratory accredited in accordance with the procedures 
        and conditions specified by the Secretary under section 
        6; and
          [(2) an original laboratory testing report described 
        in section 5(c) and a manufacturer's certificate of 
        conformance are on file with the manufacturer, or under 
        such custody as may be prescribed by the Secretary, and 
        available for inspection.
  [(b) Fasteners of Foreign Origin.--(1) Except as provided in 
paragraph (2) of this subsection, it shall be unlawful--
          [(A) for any person to sell to any importer, and
          [(B) for any importer to purchase,
any shipment of fasteners which are manufactured outside the 
United States unless delivery of such shipment to such importer 
is accompanied by a manufacturer's certificate as described in 
subsection (a), an original laboratory testing report described 
in section 5(c), with respect to each lot from which such 
fasteners were taken, and any other relevant lot identification 
information.
  [(2) The requirement under paragraph (1) of this subsection 
that the delivery of such a shipment to such importer be 
accompanied by an original laboratory testing report shall not 
apply in the case of fasteners imported into the United 
States--
          [(A) as products manufactured within a nation which 
        is party to a congressionally-approved free trade 
        agreement with the United States that is in effect, so 
        long as the Secretary certifies that satisfactory 
        arrangements have been reached by which purchasers 
        within the United States can readily gain access to an 
        original laboratory testing report for such fasteners; 
        or
          [(B) as Canadian-origin products under the United 
        States-Canada Automobile Pact for use as original 
        equipment in the manufacture of motor vehicles.
  [(c) Option For Importers and Private Label Distributors.--
(1) Notwithstanding section 5(a) and subsections (a) and (b) of 
this section, delivery of a lot, or portion of a lot, of 
fasteners may be made to an importer or private label 
distributor without the required original copy of the 
laboratory testing report if--
          [(A) the manufacturer provides to the importer or 
        private label distributor a manufacturer's certificate 
        certifying that the fasteners have been manufactured 
        according to the requirements of the applicable 
        standards and specifications; and
          [(B) the importer or private label distributor 
        assumes responsibility in writing for the inspection 
        and testing of such lot or portion by a laboratory 
        accredited in accordance with the procedures and 
        conditions specified by the Secretary under section 6.
  [(2) If the importer or private distributor assumes the 
responsibility in writing for the inspection and testing of 
such lot or portion, the provisions of section 5(a) and 
subsections (a) and (b) of this section shall apply to the 
importer or private label distributor in the same manner and to 
the same extent as to a manufacturer; except that the importer 
or private label distributor shall provideto the testing 
laboratory the manufacturer's certificate described under paragraph (1) 
of this subsection.
  [(d) Alterations Subsequent to Manufacture.--(1) Any person 
who significantly alters a fastener so that such fastener no 
longer conforms to the description in the relevant test report 
issued under section 5(c), and who thereafter offers for sale 
or sells such altered fastener, shall be treated as a 
manufacturer for purposes of this Act and shall cause such 
altered fastener to be inspected and tested under section 5 or 
this section as though it were newly manufactured, unless 
delivery of such fastener to the purchaser is accompanied by a 
written statement noting the original lot number, disclosing 
the subsequent alteration, and warning that such alteration may 
affect the dimensional or physical characteristics of the 
fastener.
  [(2) Any person who knowingly sells an altered fastener and 
who did not alter such fastener shall provide to the purchaser 
a copy of the statement required by paragraph (1).
  [(e) Commingling.--It shall be unlawful for any manufacturer, 
importer, or private label distributor to commingle like 
fasteners from different lots in the same container, except 
that such manufacturer, importer, or private label distributor 
may commingle like fasteners of the same type, grade, and 
dimension from not more than two tested and certified lots in 
the same container during repackaging and plating operations. 
Any container which contains fasteners from two lots shall be 
conspicuously marked with the lot identification numbers of 
both lots.
  [(f) Subsequent Purchaser.--If a person who purchases 
fasteners for any purpose so requests either prior to the sale 
or at the time of sale, the seller shall conspicuously mark the 
container of the fasteners with the lot number from which such 
fasteners were taken.]

SEC. 4. SALE OF FASTENERS.

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

SEC. [8.] 5. MANUFACTURERS' INSIGNIAS.

  [(a) General Rule.--No fastener which is required by the 
standards and specifications to which it was manufactured to 
bear a raised or depressed insignia identifying its 
manufacturer or private label distributor shall be offered for 
sale or sold in commerce unless the manufacturer or private 
label distributor of such fastener has complied with the 
requirements prescribed by the Secretary in connection with the 
program established under subsection (b) of this section.]
  (a) General Rule.--Unless the specifications provide 
otherwise, a fastener that is required by the applicable 
consensus standard or standards to bear an insignia identifying 
its manufacturer shall not be offered for sale or sold in 
commerce unless--
          (1) the fastener bears such insignia; and
          (2) the manufacturer has complied with the insignia 
        recordation requirements established under subsection 
        (b).
  (b) Recordation.--The Secretary shall establish, by 
regulation, a program to provide for the recordation of the 
insignias of manufacturers [and private label distributors 
described in subsection (a), to ensure the traceability of a 
fastener to its manufacturer or private label distributor.] 
described in subsection (a).

SEC. [9.] 6. REMEDIES AND PENALTIES.

  (a)  * * *
  (b) Civil Penalties.--(1)  * * *

           *       *       *       *       *       *       *

  (3) Any person against whom a civil penalty is assessed under 
paragraph (2) [of this section] of this subsection may obtain 
review thereof in the appropriate court of the United States by 
filing a notice of appeal in such court within 30 days from the 
date of such order and by simultaneously sending a copy of such 
notice by certified mail to the Secretary. The findings and 
order of the Secretary shall be set aside by such court if they 
are found to be unsupported by substantial evidence, as 
provided in section 706(2) of title 5, United States Code.
  (4) The Secretary may arbitrate, compromise, modify, or 
remit, with or without conditions, any civil penalty which is 
subject to imposition or which has been imposed under this 
section prior to referral to the Attorney General under 
paragraph (5).

           *       *       *       *       *       *       *

  (c) Criminal Penalties.--(1)  * * *

           *       *       *       *       *       *       *

  [(3) Whoever negligently fails to maintain records relating 
to a fastener in violation of this Act or a regulation under 
this Act shall be fined under title 18, United States Code, or 
imprisoned not more than 2 years, or both.]
  (d) Enforcement.--(1) The Secretary may designate officers or 
employees of the Department of Commerce to conduct 
investigations pursuant to this Act. In conducting such 
investigations, those officers or employees may, to the extent 
necessary or appropriateto the enforcement of this Act, 
exercise such authorities as are conferred upon them by other laws of 
the United States, subject to policies and procedures approved by the 
Attorney General.
  (2) The Secretary, acting through the Director, shall 
establish and maintain a hotline system to facilitate the 
reporting of alleged violations of this Act, and the Secretary 
shall investigate credible allegations reported through that 
system.

SEC. [10.] 7. RECORDKEEPING REQUIREMENTS.

  [(a) Laboratories.--Laboratories which perform inspections 
and testing under section 5(b) shall retain for 5 years all 
records concerning the inspection and testing, and 
certification, of fasteners under section 5.
  [(b) Manufacturers, Importers, Private Label Distributors, 
and Persons who Make Significant Alterations.--Manufacturers, 
importers, private label distributors, and persons who make 
significant alterations shall retain for 5 years all records 
concerning the inspection and testing, and certification, of 
fasteners under section 5, and shall provide copies of any 
applicable laboratory testing report or manufacturer's 
certificate upon request to the subsequent purchaser of 
fasteners taken from the lot to which such testing report or 
manufacturer's certificate relates.]
  Manufacturers shall retain the record of conformance for 
fasteners for 5 years, on paper or in photographic or 
electronic format in a manner that allows for verification of 
authenticity. Upon request of a distributor who has purchased a 
fastener, or a person who has purchased a fastener for use in 
the production of a commercial product, the manufacturer of the 
fastener shall make available information in the record of 
conformance to the requester.

SEC. [11.] 8. RELATIONSHIP TO STATE LAWS.

  Nothing in this Act shall be construed to preempt any rights 
or causes of action that any buyer may have with respect to any 
seller of fasteners under the law of any State, except to the 
extent that the provisions of this Act are in conflict with 
such State law.

SEC. [12.] 9. CONSTRUCTION.

  Nothing in this Act shall be construed to limit or otherwise 
affect the authority of any consensus standards organization to 
establish, modify, or withdraw any standards and specifications 
under any other law or authority [in effect on the date of 
enactment of this Act].

[SEC. 13. REGULATIONS.

  The Secretary shall issue such regulations as may be 
necessary to implement this Act.

[SEC. 15. APPLICABILITY.

  (a) Transitional Rule.--The requirements of this Act shall be 
applicable only to fasteners fabricated 180 days or more after 
the Secretary issues final regulations required under sections 
5, 6, and 8, except that the Secretary may extend such time 
period if the Secretary determines that an insufficient number 
of laboratories have been accredited to perform the volume of 
inspection and testing required. Upon any such extension, and 
every 6 months thereafter during such extension, the Secretary 
shall submit a report to the Congress explaining the reasons 
for such extension and the steps being taken to ensure the 
accreditation of a sufficient number of laboratories.
  [(b) Aircraft Exemption.--
          [(1) In general.--The requirements of this Act shall 
        not apply to fasteners specifically manufactured or 
        altered for use on an aircraft if the quality and 
        suitability of those fasteners for that use has been 
        approved by the Federal Aviation Administration, except 
        as provided in paragraph (2).
          [(2) Exception.--Paragraph (1) shall not apply to 
        fasteners represented by the fastener manufacturer as 
        having been manufactured in conformance with standards 
        or specifications established by a consensus standards 
        organization or a Federal agency other than the Federal 
        Aviation Administration.]

SEC. 10. CERTIFICATION AND ACCREDITATION.

  (a) Certification.--A person publishing a document setting 
forth guidance or requirements for the certification of 
manufacturing systems, including fastener manufacturing 
systems, by an accredited third party may petition the Director 
to approve such document for use as described in section 
3(7)(B)(iii)(I). The Director shall act upon a petition within 
180 days after its filing, and shall approve such petition if 
the document provides equal or greater rigor and reliability as 
compared to ISO/IEC Guide 62.
  (b) Accreditation.--A person publishing a document setting 
forth guidance or requirements for the approval of 
accreditation bodies to accredit third parties described in 
subsection (a) may petition the Director to approve such 
document for use as described in section 3(7)(B)(iii)(I). The 
Director shall act upon a petition within 180 days after its 
filing, and shall approve such petition if the document 
provides equal or greater rigor and reliability as compared to 
ISO/IEC Guide 61.
  (c) Laboratory Accreditation.--A person publishing a document 
setting forth guidance or requirements for the accreditation of 
laboratories may petition the Director to approve such document 
for use as described in section 3(1)(A). The Director shall act 
upon a petition within 180 days after its filing, and shall 
approve such petition if the document provides equal or greater 
rigor and reliability as compared to ISO/IEC Guide 25.
  (d) Approval of Accreditation Bodies.--A person publishing a 
document setting forth guidance or requirements for the 
approval of accreditation bodies to accredit laboratories may 
petition the Director to approve such document for use as 
described in section 3(1)(B). The Director shall act upon a 
petition within 180 days after its filing, and shall approve 
such petition if the document provides equal or greater rigor 
and reliability as compared to ISO/IEC Guide 58.

SEC. 11. APPLICABILITY.

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

                    XVII. Committee Recommendations

    On March 25, 1999, a quorum being present, the Committee 
favorably reported H.R. 1183, The Fastener Quality Amendments 
Act of 1999, by a voice vote, and recommends its enacted.

              XVIII. Exchange of Committee Correspondence

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

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

             XIX. Proceedings of the Full Committee Markup

   Thursday, March 25, 1999, House of Representatives, Committee on 
                        Science, Washington, DC

H.R. 1183, Fastener Quality Act Amendments Act of 1999

    Chairman Sensenbrenner. The last bill on our agenda today 
is H.R. 1183, a Fastener Quality Act Amendments of 1999. This 
bill continues the Science Committee's commitment to 
streamlining the provisions of the Fastener Quality Act. The 
intent of H.R. 1183 is to modify the act in a way that 
recognizes new quality practices in the fastener industry, 
focuses on ensuring public safety, and imposes the least 
possible additional burdens on an already heavily regulated 
industry.
    To that end, this bill: first, fights fraud by clarifying 
that anyone intentionally misrepresenting the strength or other 
characteristic of a fastener is subject to the criminal 
penalties and civil remedies of the act. Second, it ensures 
accountability by requiring that virtually all fasteners sold 
in commerce include the registered trademark of their 
manufacturer. Third, reduces some of the burdensome paperwork 
requirements of the act by allowing documents to be stored and 
transmitted in electronic format. And fourth, recognizes the 
industry's growing utilization of dramatically improved quality 
assurance in management systems by allowing fasteners 
manufactured in accordance with certain quality systems to be 
deemed in compliance with the requirements of the act.
    The current law of the Fastener Quality Act of 1990 is 
unworkable and would cause great disruption to the U.S. economy 
without providing any significant public safety benefit. Last 
Congress, the Science Committee drafted bipartisan legislation 
enacted as Public Law 105-234, that delayed NIST from 
implementing costly and bureaucratic regulations that were 
inconsistent with the original Congressional intent of the art.
    So I would urge members to support this legislation, and 
recognize Mr. Brown for an opening statement.
    Mr. Brown. Mr. Chairman, I am having trouble distinguishing 
the green color here as to when the thing is on and off. Could 
you have a correction made on that as quickly as possible?
    Chairman Sensenbrenner. If the gentleman will yield. If you 
push the red button, then the missiles start flying here. So 
stay away from that. [Laughter.]
    Mr. Brown. Mr. Chairman, there is very little I can add to 
what you have already said about this bill. It is one we have 
wrestled with for a number of years. It will never end up being 
perfect or maybe even fully satisfactory to most of the people 
who are involved. But it is very important, and as we all 
recall, there was a time a few years back when it was a matter 
of urgency and of national security that we do something to 
improve the quality of fasteners that were usedin critical 
applications in defense, space, and many other things.
    This bill is the best possible approach that I can envision 
to continuing and improving on this process. I am 
wholeheartedly in support of it.
    Chairman Sensenbrenner. The gentleman yields back the 
balance of his time. I am informed that neither the gentlewoman 
from Maryland or the gentleman from Michigan have opening 
statements, and would ask unanimous consent that all members 
may insert opening statements in the record at this point. 
Without objection, it is so ordered.
    [The information follows:]
    
    
    Chairman Sensenbrenner. Furthermore, I ask unanimous 
consent that the bill be considered as read and open to 
amendment at any point.
    [The information follows:]
    
    
    Chairman Sensenbrenner. I ask that members proceed with 
amendments in the order on the roster. The first one is by Mrs. 
Morella and Mr. Barcia. The Chair recognizes the gentlewoman 
from Maryland to offer her amendment.
    Mrs. Morella. Thank you very much, Mr. Chairman. I have an 
amendment at the desk.
    Chairman Sensenbrenner. The clerk will report the 
amendment.
    The Clerk. ``En bloc amendment to H.R. 1183''----
    Chairman Sensenbrenner. Without objection, the amendment is 
considered as read, and open for amendment at any point.
    [The information follows:]
    
    
    Chairman Sensenbrenner. The gentlewoman from Maryland is 
recognized for five minutes.
    Mrs. Morella. Thank you, Mr. Chairman. You know, when I was 
first elected, to me a fastener meant something that you used 
to enclose clothing and in other manners. But now I understand 
through experience and through the Subcommittee and full 
Committee, that a fastener is defined as a nut, a bolt, a 
screw, or a stud. All I can say is I hope Jay Leno doesn't get 
word of that. [Laughter.]
    But our Technology Subcommittee held a hearing on this 
issue in the last Congress, and also held a hearing in February 
to discuss the need for the existing Fastener Quality Act, as 
well as to consider any changes to the act that may be 
warranted. At the hearing, the Subcommittee received testimony 
from fastener manufacturers, distributors, and consumers, and 
we realized how important fasteners are.
    There is a clear consensus that two factors have 
dramatically changed since the passage of the FQA in 1990. 
First, the implementation of modern manufacturing quality 
procedures have dramatically increased the quality of fasteners 
used in U.S. commerce. In today's business place, heavy volume 
fastener users like automobile, aerospace, heavy equipment 
manufacturers, invent, demand and ensure quality from their 
suppliers. They have a clear economic incentive to do so.
    Secondly, the implementation of more stringent Government 
procurement practices have eliminated the military's problems 
with sub-standard or mis-marked fasteners. In fact, the Defense 
Industrial Supply Center has checked military inventories over 
the past four years, found no evidence of faulty fasteners at 
all.
    Recognizing these important developments, H.R. 1183 is 
intended to modernize the existing 9-year-old act to better 
reflect the practices of today's fastener industry and to 
ensure that the flow of the 200 billion fasteners used annually 
in our Nation's chain of commerce not unnecessarily disrupted. 
The legislation that we are considering also creates a level 
playing ground for all fastener manufacturers, distributors and 
consumers. It does not drive small manufacturers out of 
business, nor does it place U.S. manufacturers at a competitive 
disadvantage with their foreign competitors.
    Mr. Chairman, as Chair of the Technology Subcommittee, I am 
pleased to offer this bipartisan en bloc amendment with Mr. Jim 
Barcia, the Ranking Member of the Subcommittee. The amendment 
makes certain changes to H.R. 1183 as follows: First, in the 
case of fasteners manufactured solely to consensus standards, 
the amendment ensures that any required end-of-line testing is 
conducted by an accredited laboratory.An accredited laboratory 
is defined to include a fastener testing facility that meets certain 
guidelines established by the International Organization for 
Standardization, or that is approved by the National Institute of 
Standards and Technology. In addition, the definition also requires 
accreditation by the International Organization for Standardization, or 
by NIST.
    I could go on, because the amendment then takes additional 
steps to ensure traceability by requiring that all fasteners 
that are manufactured to consensus standards bear a trademark 
that's registered with the Department of Commerce. Finally, it 
ensures disclosure of critical information by requiring 
fastener manufacturer to make certain documents available.
    I just want to remind members too that without prompt 
enactment of this legislation, the current FQA regulations are 
slated to be implemented on June 24th of this year. So with 
that in mind, I ask for swift passage. I yield back, Mr. 
Chairman.
    Chairman Sensenbrenner. The gentlewoman's time has expired. 
Further discussion on the Morella-Barcia amendment, with the 
caveat that we are losing our reporting quorum.
    The gentleman from Michigan is recognized for five minutes.
    Mr. Barcia. I won't take the full five minutes. I will try 
to be very brief. Mr. Chairman, I want to begin by concurring 
with Mr. Brown's comments about the bipartisan way in which we 
developed H.R. 1183 and this en bloc amendment. I also want to 
thank Chairman Sensenbrenner and Chairwoman Morella for their 
diligence and efforts on this very important issue.
    Chairwoman Morella has articulately explained the 
provisions in the en bloc amendments. I won't repeat those 
explanations. The en bloc amendment ensures that fasteners 
manufactured to consensus standards must be tested in 
accredited labs, that high strength bolts must carry a 
manufacturer's mark except when the end-user specifies 
otherwise, and that records on the physical and chemical 
properties of fasteners are available to everyone in the supply 
chain.
    The goal of this en bloc amendment is to ensure the 
traceability of fasteners once they leave the manufacturer, and 
that the testing of fasteners is reliable and accurate. This en 
bloc amendment substantially improves H.R. 1183, and addresses 
some of the most serious concerns that were raised with the 
text as introduced. H.R. 1183, along with the en bloc 
amendment, is a product that probably doesn't entirely satisfy 
everyone. However, I believe that it reduces the cumbersome 
regulatory burdens that resulted from the original Fastener 
Quality Act. It recognizes advancements made in manufacturing 
processes, and attempts to maintain credible standards to 
ensure that fasteners are of high quality. I urge my colleagues 
to support this amendment.
    Chairman Sensenbrenner. The gentleman yields back the 
balance of his time. Further discussion on the Morella-Barcia 
amendment?
    [No response.]
    Hearing none, all those in favor signify by saying aye.
    Opposed, no.
    The ayes appear to have it. The ayes have it, and the 
amendment is agreed to.
    Are there further amendments to the bill?
    [No response.]
    If not, is there any report language?
    [No response.]
    If not, the question is on the bill. All those in favor 
will signify by saying aye.
    Opposed, no.
    The ayes appear to have it. The ayes have it. The motion is 
agreed to.
    The Chair recognizes the gentleman from Michigan for a 
motion to report the bill.
    Mr. Barcia. Thank you, Mr. Chairman. I move that the 
Committee report the bill, H.R. 1183 as amended. Furthermore, I 
move to instruct the staff to prepare the legislative report to 
make technical and conforming amendments, and that the Chairman 
take all necessary steps to bring the bill before the House for 
its consideration.
    Chairman Sensenbrenner. You have heard the motion. The 
question is on reporting the bill. The Chair notes the presence 
of a reporting quorum. Those in favor will signify by saying 
aye.
    Opposed, no.
    The ayes appear to have it. The ayes have it, and the bill 
is favorably reported.
    Without objection, the bill will be reported as a single 
amendment in the nature of a substitute reflecting the 
amendment adopted today. Members will have two subsequent 
calendar days in which to submit supplemental minority or 
additional views on the measure. Without objection, pursuant to 
clause 1 of rule 22 of the rules of the House of 
Representatives, the Committee authorizes the Chair to offer 
such motions as may be necessary in the House to go to 
conference on the bill. Without objection, so ordered.
    I thank everybody for their patience. We put the timing 
pretty good today in getting done just when the bell rang.
    The Chair recognizes the gentleman from the California.
    Mr. Brown. Thank you, Mr. Chairman. I ask unanimous consent 
that Ms. Sheila Jackson Lee, who is detained in another 
committee, be allowed to insert her brief statement in the 
record expressing her appreciation to the great Chairman that 
we have.
    Chairman Sensenbrenner. Without objection, that is 
certainly so ordered.
    The Chair will quit while he is ahead, and the Committee is 
adjourned.
    [Whereupon, at 11:18 a.m., the committee was adjourned.]

                                  
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