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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1183 Engrossed in House (EH)]

  1st Session

                               H. R. 1183

_______________________________________________________________________

                                 AN ACT

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.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
106th CONGRESS
  1st Session
                                H. R. 1183

_______________________________________________________________________

                                 AN ACT

 
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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``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 
                (or another document approved by the Director under 
                section 10(c)), including revisions from time to time; 
                and
                    ``(B) has been accredited by a laboratory 
                accreditation body that meets the requirements of ISO/
                IEC Guide 58 (or another document approved by the 
                Director under section 10(d)), including revisions from 
                time to time;
            ``(2) `consensus standard' means the provisions of a 
        document that describes fastener characteristics published by a 
        consensus standards organization or a Federal agency, and does 
        not include a proprietary standard;
            ``(3) `consensus standards organization' means the American 
        Society for Testing and Materials, the American National 
        Standards Institute, the American Society of Mechanical 
        Engineers, the Society of Automotive Engineers, the 
        International Organization for Standardization, any other 
        organization identified as a United States consensus standards 
        organization or a foreign and international consensus standards 
        organization in the Federal Register at 61 Fed. Reg. 50582-83 
        (September 26, 1996), and any successor organizations thereto;
            ``(4) `Director' means the Director of the National 
        Institute of Standards and Technology;
            ``(5) `distributor' means a person who purchases fasteners 
        for the purpose of reselling them at wholesale to unaffiliated 
        persons within the United States (an original equipment 
        manufacturer and its dealers shall be considered affiliated 
        persons for purposes of this Act);
            ``(6) `fastener' means a metallic screw, nut, bolt, or stud 
        having internal or external threads, with a nominal diameter of 
        6 millimeters or greater, in the case of such items described 
        in metric terms, or \1/4\ inch or greater, in the case of such 
        items described in terms of the English system of measurement, 
        or a load-indicating washer, that is through-hardened or 
        represented as meeting a consensus standard that calls for 
        through-hardening, and that is grade identification marked or 
        represented as meeting a consensus standard that requires grade 
        identification marking, except that such term does not include 
        any screw, nut, bolt, stud, or load-indicating washer that is--
                    ``(A) part of an assembly;
                    ``(B) a part that is ordered for use as a spare, 
                substitute, service, or replacement part, unless that 
                part is in a package containing more than 75 of any 
                such part at the time of sale, or a part that is 
                contained in an assembly kit;
                    ``(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) advanced 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 (or another document 
                                approved by the Director under section 
                                10(a)), 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 (or another document 
                                approved by the Director under section 
                                10(b)), including revisions from time 
                                to time; or
                                    ``(II) undergoes regular or random 
                                evaluation and assessment by the end 
                                user or end users of the screws, nuts, 
                                bolts, studs, or load-indicating 
                                washers produced under such fastener 
                                manufacturing system to ensure that 
                                such system meets the requirements of 
                                clauses (i) and (ii);
            ``(8) `grade identification marking' means any grade-mark 
        or property class symbol appearing on a fastener purporting to 
        indicate that the lot of fasteners conforms to a specific 
        consensus standard, but such term does not include a 
        manufacturer's insignia or part number;
            ``(9) `importer' means a distributor located within the 
        United States who contracts for the initial purchase of 
        fasteners manufactured outside the United States;
            ``(10) `lot' means a quantity of fasteners of one part 
        number fabricated by the same production process from the same 
        coil or heat number of metal as provided by the metal 
        manufacturer;
            ``(11) `manufacturer' means a person who fabricates 
        fasteners for sale in commerce;
            ``(12) `proprietary standard' means the provisions of a 
        document that describes characteristics of a screw, nut, bolt, 
        stud, or load-indicating washer and is issued by a person who--
                    ``(A) uses screws, nuts, bolts, studs, or load-
                indicating washers in the manufacture, assembly, or 
                servicing of its products; and
                    ``(B) with respect to such screws, nuts, bolts, 
                studs, or washers, is a developer and issuer of 
                descriptions that have characteristics similar to 
                consensus standards and that bear such user's 
                identification;
            ``(13) `record of conformance' means a record or records 
        for each lot of fasteners sold or offered for sale that 
        contains--
                    ``(A) the name and address of the manufacturer;
                    ``(B) a description of the type of fastener;
                    ``(C) the lot number;
                    ``(D) the nominal dimensions of the fastener 
                (including diameter and length of bolts or screws), 
                thread form, and class of fit;
                    ``(E) the consensus standard or specifications to 
                which the lot of fasteners has been manufactured, 
                including the date, number, revision, and other 
                information sufficient to identify the particular 
                consensus standard or specifications being referenced;
                    ``(F) the chemistry and grade of material;
                    ``(G) the coating material and characteristics and 
                the applicable consensus standard or specifications for 
                such coating; and
                    ``(H) the results or a summary of results of any 
                tests performed for the purpose of verifying that a lot 
                of fasteners conforms to its grade identification 
                marking or to the grade identification marking the lot 
                of fasteners is represented to meet;
            ``(14) `represent' means to describe one or more of a 
        fastener's purported characteristics in a document or statement 
        that is transmitted to a purchaser through any medium;
            ``(15) `Secretary' means the Secretary of Commerce;
            ``(16) `specifications' means the required characteristics 
        identified in the contractual agreement with the manufacturer 
        or to which a fastener is otherwise produced, except that the 
        term does not include proprietary standards; and
            ``(17) `through-harden' means heating above the 
        transformation temperature followed by quenching and tempering 
        for the purpose of achieving uniform hardness.''.

SEC. 4. SALE OF FASTENERS.

    (a) Amendment.--Sections 5 through 7 of the Fastener Quality Act 
(15 U.S.C. 5404-6) 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 the sale or offer for sale of 
fasteners from a single lot, to knowingly misrepresent or falsify--
            ``(1) the record of conformance for the lot of fasteners;
            ``(2) the identification, characteristics, properties, 
        mechanical or performance marks, chemistry, or strength of the 
        lot of fasteners; or
            ``(3) the manufacturer's insignia.
    ``(b) Representations.--A direct or indirect reference to a 
consensus standard to represent that a fastener conforms to particular 
requirements of the consensus standard shall not be construed as a 
representation that the fastener meets all the requirements of the 
consensus standard.
    ``(c) Specifications.--A direct or indirect contractual reference 
to a consensus standard for the purpose of identifying particular 
requirements of the consensus standard that serve as specifications 
shall not be construed to require that the fastener meet all the 
requirements of the consensus standard.
    ``(d) Use of Accredited Laboratories.--In the case of fasteners 
manufactured solely to a consensus standard or standards, end-of-line 
testing required by the consensus standard or standards, if any, for 
the purpose of verifying that a lot of fasteners conforms with the 
grade identification marking called for in the consensus standard or 
standards to which the lot of fasteners has been manufactured shall be 
conducted by an accredited laboratory.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 2 years after the date of enactment of this Act.

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, 
fasteners that are required by the applicable consensus standard or 
standards to bear an insignia identifying their manufacturer shall not 
be offered for sale or sold in commerce unless--
            ``(1) the fasteners bear 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''; and
            (3) in subsection (d)--
                    (A) by inserting ``(1)'' after ``Enforcement.--''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) The Secretary shall establish and maintain a hotline system 
to facilitate the reporting of alleged violations of this Act, and the 
Secretary shall evaluate allegations reported through that system and 
report any credible allegations to the Attorney General.''.

SEC. 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 and importers shall retain the record of 
conformance for fasteners for 5 years, on paper or in photographic or 
electronic format in a manner that allows for verification of 
authenticity. Upon request of a distributor who has purchased a 
fastener, or a person who has purchased a fastener for use in the 
production of a commercial product, the manufacturer or importer of the 
fastener shall make available information in the record of conformance 
to the requester.''.

SEC. 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 the 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 
as fastener quality assurance 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. In 
addition to any other voluntary laboratory accreditation programs that 
may be established by private sector persons, the Director shall 
establish a National Voluntary Laboratory Accreditation Program, for 
the accreditation of laboratories as described in section 3(1)(B), that 
meets the requirements of ISO/IEC Guide 58 (or another document 
approved by the Director under this subsection), including revisions 
from time to time.
    ``(e) Affirmation.--(1) An accreditation body accrediting third 
parties who certify manufacturing systems as fastener quality assurance 
systems as described in section 3(7)(B)(iii)(I) shall affirm to the 
Director that it meets the requirements of ISO/IEC Guide 61 (or another 
document approved by the Director under subsection (b)), including 
revisions from time to time.
    ``(2) An accreditation body accrediting laboratories as described 
in section 3(1)(B) shall affirm to the Director that it meets the 
requirements of ISO/IEC Guide 58 (or another document approved by the 
Director under subsection (d)), including revisions from time to time.
    ``(3) An affirmation required under paragraph (1) or (2) shall take 
the form of a self-declaration that the accreditation body meets the 
requirements of the applicable Guide, signed by an authorized 
representative of the accreditation body, without requirement for 
accompanying documentation. Any such affirmation shall be considered to 
be a continuous affirmation that the accreditation body meets the 
requirements of the applicable Guide, unless and until the affirmation 
is withdrawn by the accreditation body.''.

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 Act 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. COMPTROLLER GENERAL REPORT.

    Not later than 2 years after the date of the enactment of this Act, 
the Comptroller General shall transmit to the Congress a report 
describing any changes in industry practice resulting from or 
apparently resulting from the enactment of section 3(6)(B) of the 
Fastener Quality Act, as added by section 3 of this Act.

            Passed the House of Representatives May 11, 1999.

            Attest:

                                                                 Clerk.
```