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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1183 Enrolled Bill (ENR)]

        H.R.1183

                       One Hundred Sixth Congress

                                 of the

                        United States of America

                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,
   the sixth day of January, one thousand nine hundred and ninety-nine

                                 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.--Subsection (d) of section 4 of the Fastener 
Quality Act, as added by subsection (a) of this section, shall take 
effect 2 years after the date of the 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 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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
```