H. Rept. 110-501 - 110th Congress (2007-2008)
December 19, 2007, As Reported by the Energy and Commerce Committee

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House Report 110-501 - CONSUMER PRODUCT SAFETY MODERNIZATION ACT




[House Report 110-501]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-501

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



 
               CONSUMER PRODUCT SAFETY MODERNIZATION ACT

                                _______
                                

 December 19, 2007.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Dingell, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4040]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 4040) to establish consumer product safety 
standards and other safety requirements for children's products 
and to reauthorize and modernize the Consumer Product Safety 
Commission, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................    17
Background and Need for Legislation..............................    18
Hearings.........................................................    21
Committee Consideration..........................................    22
Committee Votes..................................................    22
Committee Oversight Findings.....................................    27
Statement of General Performance Goals and Objectives............    27
New Budget Authority, Entitlement Authority, and Tax Expenditures    27
Earmarks and Tax and Tariff Benefits.............................    27
Committee Cost Estimate..........................................    27
Congressional Budget Office Estimate.............................    27
Federal Mandates Statement.......................................    27
Advisory Committee Statement.....................................    27
Constitutional Authority Statement...............................    27
Applicability to Legislative Branch..............................    28
Section-by-Section Analysis of the Legislation...................    28
Special Issues...................................................    46

                               AMENDMENT

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Consumer Product 
Safety Modernization Act''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. Authority to issue implementing regulations.

                   TITLE I--CHILDREN'S PRODUCT SAFETY

Sec. 101. Ban on children's products containing lead; lead paint rule.
Sec. 102. Mandatory third-party testing for certain children's 
products.
Sec. 103. Tracking labels for children's products.
Sec. 104. Standards and consumer registration of durable nursery 
products.
Sec. 105. Labeling requirement for certain internet and catalogue 
advertising of toys and games.
Sec. 106. Study of preventable injuries and deaths in minority children 
related to consumer products.
Sec. 107. Review of generally-applicable standards for toys.

          TITLE II--CONSUMER PRODUCT SAFETY COMMISSION REFORM

Sec. 201. Reauthorization of the Commission.
Sec. 202. Structure and quorum.
Sec. 203. Submission of copy of certain documents to Congress.
Sec. 204. Expedited rulemaking.
Sec. 205. Public disclosure of information.
Sec. 206. Publicly available information on incidents involving injury 
or death.
Sec. 207. Prohibition on stockpiling under other Commission-enforced 
statutes.
Sec. 208. Notification of noncompliance with any Commission-enforced 
statute.
Sec. 209. Enhanced recall authority and corrective action plans.
Sec. 210. Website notice, notice to third party internet sellers, and 
radio and television notice.
Sec. 211. Inspection of certified proprietary laboratories.
Sec. 212. Identification of manufacturer, importers, retailers, and 
distributors.
Sec. 213. Export of recalled and non-conforming products.
Sec. 214. Prohibition on sale of recalled products.
Sec. 215. Increased civil penalty.
Sec. 216. Criminal penalties to include asset forfeiture.
Sec. 217. Enforcement by State attorneys general.
Sec. 218. Effect of rules on preemption.
Sec. 219. Sharing of information with Federal, State, local, and 
foreign government agencies.
Sec. 220. Inspector General authority and accessibility.
Sec. 221. Repeal.
Sec. 222. Industry-sponsored travel ban.
Sec. 223. Annual reporting requirement.
Sec. 224. Study on the effectiveness of authority relating to imported 
products.

SEC. 2. REFERENCES.

  (a) Commission.--As used in this Act, the term ``Commission'' means 
the Consumer Product Safety Commission.
  (b) Consumer Product Safety Act.--Except as otherwise expressly 
provided, whenever in this Act an amendment is expressed as an 
amendment to a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Consumer 
Product Safety Act (15 U.S.C. 2051 et seq.).
  (c) Rule.--In this Act and the amendments made by this Act, a 
reference to any rule under any Act enforced by the Commission shall be 
considered a reference to any rule, standard, ban, or order under any 
such Act.

SEC. 3. AUTHORITY TO ISSUE IMPLEMENTING REGULATIONS.

  The Commission may issue regulations, as necessary, to implement this 
Act and the amendments made by this Act.

                   TITLE I--CHILDREN'S PRODUCT SAFETY

SEC. 101. BAN ON CHILDREN'S PRODUCTS CONTAINING LEAD; LEAD PAINT RULE.

  (a) Children's Products Containing Lead.--
          (1) Banned hazardous substance.--Effective 180 days after the 
        date of enactment of this Act, any children's product 
        containing more than the amounts of lead set forth in paragraph 
        (2) shall be a banned hazardous substance within the meaning of 
        section 2(q)(1) of the Federal Hazardous Substances Act (15 
        U.S.C. 1261(q)(1)).
          (2) Standard for amount of lead.--The amounts of lead 
        referred to in paragraph (1) shall be--
                  (A) 600 parts per million total lead content by 
                weight for any part of the product;
                  (B) 300 parts per million total lead content by 
                weight for any part of the product, effective 2 years 
                after the date of enactment of this Act; and
                  (C) 100 parts per million total lead content by 
                weight for any part of the product, effective 4 years 
                after the date of enactment of this Act, unless the 
                Commission determines, after notice and a hearing, that 
                a standard of 100 parts per million is not feasible, in 
                which case the Commission shall require the lowest 
                amount of lead that the Commission determines is 
                feasible to achieve.
          (3) Commission revision to more protective standard.--
                  (A) More protective standard.--The Commission may, by 
                rule, revise the standard set forth in paragraph (2)(C) 
                for any class of children's products to any level and 
                form that the Commission determines is--
                          (i) more protective of human health; and
                          (ii) feasible to achieve.
                  (B) Periodic review.--The Commission shall, based on 
                the best available scientific and technical 
                information, periodically review and revise the 
                standard set forth in this section to require the 
                lowest amount of lead that the Commission determines is 
                feasible to achieve.
          (4) Commission authority to exclude certain materials.--The 
        Commission may, by rule, exclude certain products and materials 
        from the prohibition in paragraph (1) if the Commission 
        determines that the lead content in such products and materials 
        will not result in the absorption of lead in the human body or 
        does not have any adverse impact on public health or safety.
          (5) Definition of children's product.--
                  (A) In general.--As used in this subsection, the term 
                ``children's product'' means a consumer product as 
                defined in section 3(1) of the Consumer Product Safety 
                Act (15 U.S.C. 2052(1)) designed or intended primarily 
                for children 12 years of age or younger.
                  (B) Factors to be considered.--In determining whether 
                a product is primarily intended for a child 12 years of 
                age or younger, the following factors shall be 
                considered:
                          (i) A statement by a manufacturer about the 
                        intended use of such product, including a label 
                        on such product if such statement is 
                        reasonable.
                          (ii) Whether the product is represented in 
                        its packaging, display or advertising as 
                        appropriate for use by children 12 years of age 
                        or younger.
                          (iii) Whether the product is commonly 
                        recognized by consumers as being intended for 
                        use by child 12 years of age or younger.
                          (iv) The Age Determination Guidelines issued 
                        by the Commission staff in September 2002, and 
                        any successor thereto.
          (6) Exception for inaccessible component parts.--The 
        standards established under paragraph (2) shall not apply to 
        any component part of a children's product that is not 
        accessible to a child through normal and reasonably foreseeable 
        use and abuse of such product, as determined by the Commission. 
        A component part is not accessible under this paragraph if such 
        component part is not physically exposed by reason of a sealed 
        covering or casing and does not become physically exposed 
        through reasonably foreseeable use and abuse of the product. 
        The Commission may require that certain electronic devices be 
        equipped with a child-resistant cover or casing that prevents 
        exposure of and accessibility to the parts of the product 
        containing lead if the Commission determines that it is not 
        feasible for such products to otherwise meet such standards.
  (b) Paint Standard.--
          (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Commission shall modify section 
        1303.1 of title 16, Code of Federal Regulations, to--
                  (A) reduce the standard applicable to lead paint by 
                substituting ``0.009 percent'' for ``0.06 percent'' in 
                subsection (a) of that section;
                  (B) apply the standard to all children's products as 
                defined in subsection (a)(5); and
                  (C) reduce the standard for paint and other surface 
                coating on children's products and furniture to 0.009 
                milligrams per centimeter squared.
          (2) More protective standard.--Not later than 3 years after 
        the date of enactment of this Act, the Commission shall, by 
        rule, revise the standard established under paragraph (1)(C) to 
        a more protective standard if the Commission determines such a 
        standard to be feasible.
  (c) Authority to Extend Implementation Periods.--The Commission may 
extend, by rule, the effective dates in subsections (a) and (b) by an 
additional period not to exceed 180 days if the Commission determines 
that--
          (1) there is no impact on public health or safety from 
        extending the implementation period; and
          (2)(A) the complete implementation of the new standards by 
        manufacturers subject to such standards is not feasible within 
        180 days;
          (B) the cost of such implementation, particularly on small 
        and medium sized enterprises, is excessive; or
          (C) the Commission requires additional time to implement such 
        standards and determine the required testing methodologies and 
        appropriate exceptions in order to enforce such standards.

SEC. 102. MANDATORY THIRD-PARTY TESTING FOR CERTAIN CHILDREN'S 
                    PRODUCTS.

  (a) Mandatory and Third-Party Testing.--Section 14(a) (15 U.S.C. 
2063(a)) is amended--
          (1) in paragraph (1)--
                  (A) by striking ``Every manufacturer'' and inserting 
                ``Except as provided in paragraph (2), every 
                manufacturer''; and
                  (B) by striking ``standard under this Act'' and 
                inserting ``rule under this Act or similar rule under 
                any other Act enforced by the Commission'';
          (2) by redesignating paragraph (2) as paragraph (3) and 
        inserting after paragraph (1) the following:
          ``(2) Effective 1 year after the date of enactment of the 
        Consumer Product Safety Modernization Act, every manufacturer 
        of a children's product (and the private labeler of such 
        children's product if such product bears a private label) which 
        is subject to a consumer product safety rule under this Act or 
        a similar rule or standard under any other Act enforced by the 
        Commission, shall--
                  ``(A) have the product tested by a independent third 
                party qualified to perform such tests or a proprietary 
                laboratory certified by the Commission under subsection 
                (e) ; and
                  ``(B) issue a certificate which shall--
                          ``(i) certify that such product conforms to 
                        such standards or rules; and
                          ``(ii) specify the applicable consumer 
                        product safety standards or other similar 
                        rules.''; and
          (3) in paragraph (3) (as so redesignated)--
                  (A) by striking ``required by paragraph (1) of this 
                subsection'' and inserting ``required by paragraph (1) 
                or (2) (as the case may be)''; and
                  (B) by striking ``requirement under paragraph (1)'' 
                and inserting ``requirement under paragraph (1) or (2) 
                (as the case may be)''.
  (b) Definition of Children's Products and Independent Third Party.--
Section 14 (15 U.S.C. 2063) is amended by adding at the end the 
following:
  ``(d) Definitions.--In this section, the following definitions apply:
          ``(1) The term `children's product' means a consumer product 
        designed or intended primarily for children 12 years of age or 
        younger. In determining whether a product is primarily intended 
        for a child 12 years of age or younger, the following factors 
        shall be considered:
                  ``(A) A statement by a manufacturer about the 
                intended use of such product, including a label on such 
                product if such statement is reasonable.
                  ``(B) Whether the product is represented in its 
                packaging, display or advertising as appropriate for 
                use by children 12 years of age or younger.
                  ``(C) Whether the product is commonly recognized by 
                consumers as being intended for use by child 12 years 
                of age or younger.
                  ``(D) The Age Determination Guidelines issued by the 
                Commission staff in September 2002, and any successor 
                thereto.
          ``(2) The term `independent third party', means an 
        independent testing entity that is not owned, managed, 
        controlled, or directed by such manufacturer or private 
        labeler, and that is accredited in accordance with an 
        accreditation process established or recognized by the 
        Commission. In the case of certification of art material or art 
        material products required under this section or under 
        regulations issued under the Federal Hazardous Substances Act, 
        such term includes a certifying organization, as such term is 
        defined in appendix A to section 1500.14(b)(8) of title 16, 
        Code of Federal Regulations.''.
  (c) Certification of Proprietary Laboratories.--Section 14 (15 U.S.C. 
2063) is further amended by adding at the end the following:
  ``(e) Certification of Proprietary Laboratories for Mandatory 
Testing.--
          ``(1) Certification.--Upon request, the Commission, or an 
        independent standard-setting organization to which the 
        Commission has delegated such authority, may certify a 
        laboratory that is owned, managed, controlled, or directed by 
        the manufacturer or private labeler for purposes of testing 
        required under this section if the Commission determines that--
                  ``(A) certification of the laboratory would provide 
                equal or greater consumer safety protection than the 
                manufacturer's use of an independent third party 
                laboratory;
                  ``(B) the laboratory has established procedures to 
                ensure that the laboratory is protected from undue 
                influence, including pressure to modify or hide test 
                results, by the manufacturer or private labeler; and
                  ``(C) the laboratory has established procedures for 
                confidential reporting of allegations of undue 
                influence to the Commission.
          ``(2) Decertification.--The Commission, or an independent 
        standard-setting organization to which the Commission has 
        delegated such authority, may decertify any laboratory 
        certified under paragraph (1) if the Commission finds, after 
        notice and investigation, that a manufacturer or private 
        labeler has exerted undue influence on the laboratory.''.
  (d) Conforming Amendments.--Section 14(b) (15 U.S.C. 2063(b)) is 
amended--
          (1) by striking ``standards under this Act'' and inserting 
        ``rules under this Act or similar rules under any other Act 
        enforced by the Commission''; and
          (2) by striking ``, at the option of the person required to 
        certify the product,'' and inserting ``be required by the 
        Commission to''.

SEC. 103. TRACKING LABELS FOR CHILDREN'S PRODUCTS.

  Section 14(a) (15 U.S.C. 2063(a)) is further amended by adding at the 
end the following:
          ``(4) Effective 1 year after the date of enactment of the 
        Consumer Product Safety Modernization Act, the manufacturer of 
        a children's product shall, to the extent feasible, place 
        distinguishing marks on the product and its packaging that will 
        enable the manufacturer and the ultimate purchaser to ascertain 
        the location and date of production of the product, and any 
        other information determined by the manufacturer to facilitate 
        ascertaining the specific source of the product by reference to 
        those marks.''.

SEC. 104. STANDARDS AND CONSUMER REGISTRATION OF DURABLE NURSERY 
                    PRODUCTS.

  (a) Short Title.--This section may be cited as the ``Danny Keysar 
Child Product Safety Notification Act''.
  (b) Safety Standards.--
          (1) In general.--The Commission shall--
                  (A) in consultation with representatives of consumer 
                groups, juvenile product manufacturers, and independent 
                child product engineers and experts, examine and assess 
                the effectiveness of any voluntary consumer product 
                safety standards for durable infant or toddler product; 
                and
                  (B) in accordance with section 553 of title 5, United 
                States Code, promulgate consumer product safety rules 
                that--
                          (i) are substantially the same as such 
                        voluntary standards; or
                          (ii) are more stringent than such voluntary 
                        standards, if the Commission determines that 
                        more stringent standards would further reduce 
                        the risk of injury associated with such 
                        products.
          (2) Timetable for rulemaking.--Not later than 1 year after 
        the date of enactment of this Act, the Commission shall 
        commence the rulemaking required under paragraph (1) and shall 
        promulgate rules for no fewer than 2 categories of durable 
        nursery products every 6 months thereafter, beginning with the 
        product categories that the Commission determines to be of 
        highest priority, until the Commission has promulgated 
        standards for all such product categories. Thereafter, the 
        Commission shall periodically review and revise the rules set 
        forth under this subsection to ensure that such rules provide 
        the highest level of safety for such products that is feasible.
  (c) Consumer Registration Requirement.--
          (1) Rulemaking.--Not later than 1 year after the date of 
        enactment of this Act, the Commission shall, pursuant to its 
        authority under section 16(b) of the Consumer Product Safety 
        Act (15 U.S.C. 2065(b)), promulgate a final consumer product 
        safety rule to require manufacturers of durable infant or 
        toddler products--
                  (A) to provide consumers with a postage-paid consumer 
                registration form with each such product;
                  (B) to maintain a record of the names, addresses, 
                email addresses, and other contact information of 
                consumers who register their ownership of such products 
                with the manufacturer in order to improve the 
                effectiveness of manufacturer campaigns to recall such 
                products; and
                  (C) to permanently place the manufacturer name and 
                contact information, model name and number, and the 
                date of manufacture on each durable infant or toddler 
                product.
          (2) Requirements for registration form.--The registration 
        form required to be provided to consumers under subsection (a) 
        shall--
                  (A) include spaces for a consumer to provide their 
                name, address, telephone number, and email address;
                  (B) include space sufficiently large to permit easy, 
                legible recording of all desired information;
                  (C) be attached to the surface of each durable infant 
                or toddler product so that, as a practical matter, the 
                consumer must notice and handle the form after 
                purchasing the product;
                  (D) include the manufacturer's name, model name and 
                number for the product, and the date of manufacture;
                  (E) include a message explaining the purpose of the 
                registration and designed to encourage consumers to 
                complete the registration;
                  (F) include an option for consumers to register 
                through the Internet; and
                  (G) include a statement that information provided by 
                the consumer shall not be used for any purpose other 
                than to facilitate a recall of or safety alert 
                regarding that product.
        In issuing regulations under this section, the Commission may 
        prescribe the exact text and format of the required 
        registration form.
          (3) Record keeping and notification requirements.--The 
        standard required under this section shall require each 
        manufacturer of a durable infant or toddler product to maintain 
        a record of registrants for each product manufactured that 
        includes all of the information provided by each consumer 
        registered, and to use such information to notify such 
        consumers in the event of a voluntary or involuntary recall of 
        or safety alert regarding such product. Each manufacturer shall 
        maintain such a record for a period of not less than 6 years 
        after the date of manufacture of the product. Consumer 
        information collected by a manufacturer under this Act may not 
        be used by the manufacturer, nor disseminated by such 
        manufacturer to any other party, for any purpose other than 
        notification to such consumer in the event of a product recall 
        or safety alert.
          (4) Study.--The Commission shall conduct a study at such time 
        as it considers appropriate on the effectiveness of the 
        consumer registration forms in facilitating product recalls and 
        whether such registration forms should be required for other 
        children's products. Not later than 4 years after the date of 
        enactment of this Act, the Commission shall report its findings 
        to Congress.
  (d) Definition of Durable Infant or Toddler Product.--As used in this 
section, the term ``durable infant or toddler product''--
          (1) means a durable product intended for use, or that may be 
        reasonably expected to be used, by children under the age of 5 
        years; and
          (2) shall include--
                  (A) full-size cribs and nonfull-size cribs;
                  (B) toddler beds;
                  (C) high chairs, booster chairs, and hook-on chairs;
                  (D) bath seats;
                  (E) gates and other enclosures for confining a child;
                  (F) play yards;
                  (G) stationary activity centers;
                  (H) infant carriers;
                  (I) strollers;
                  (J) walkers;
                  (K) swings; and
                  (L) bassinets and cradles.

SEC. 105. LABELING REQUIREMENT FOR CERTAIN INTERNET AND CATALOGUE 
                    ADVERTISING OF TOYS AND GAMES.

  Section 24 of the Federal Hazardous Substances Act (15 U.S.C. 1278) 
is amended--
          (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively;
          (2) by inserting after subsection (b) the following:
  ``(c) Internet, Catalogue, and Other Advertising.--
          ``(1) Requirement.--Effective 180 days after the Consumer 
        Product Safety Modernization Act, any advertisement of a 
        retailer, manufacturer, importer, distributor, private labeler, 
        or licensor that provides a direct means for the purchase or 
        ordering of any toy, game, balloon, small ball, or marble that 
        requires a cautionary statement under subsections (a) and (b), 
        including advertisement on Internet websites or in catalogues 
        or other distributed materials, shall include the appropriate 
        cautionary statement required under such subsections in its 
        entirety displayed on or immediately adjacent to such 
        advertisement. Such cautionary statement shall be displayed in 
        the language that is primarily used in the advertisement, 
        catalogue, or Internet website, and in a clear and conspicuous 
        manner consistent with part 1500 of title 16, Code of Federal 
        Regulations (or a successor regulation thereto).
          ``(2) Enforcement.--The requirement in paragraph (1) shall be 
        treated as a consumer product safety rule promulgated under 
        section 7 of the Consumer Product Safety Act (15 U.S.C. 2056) 
        and the publication or distribution of any advertisement that 
        is not in compliance with the requirements of paragraph (1) 
        shall be treated as a prohibited act under section 19 of such 
        Act (15 U.S.C. 2068).
          ``(3) Rulemaking.--Not later than 180 days after the date of 
        enactment of Consumer Product Safety Modernization Act, the 
        Commission shall, by rule, modify the requirement under 
        paragraph (1) with regard to catalogues or other printed 
        materials concerning the size and placement of the cautionary 
        statement required under such paragraph as appropriate relative 
        to the size and placement of the advertisements in such printed 
        materials. The Commission may, under such rule, provide a grace 
        period for catalogues and printed materials printed prior to 
        the effective date in paragraph (1) during which time 
        distribution of such printed materials shall not be considered 
        a violation of such paragraph.''.

SEC. 106. STUDY OF PREVENTABLE INJURIES AND DEATHS IN MINORITY CHILDREN 
                    RELATED TO CONSUMER PRODUCTS.

  (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Comptroller General shall initiate a study 
to assess disparities in the risks and incidence of preventable 
injuries and deaths among children of minority populations, including 
Black, Hispanic, American Indian, Alaskan native, and Asian/Pacific 
Islander children in the United States. The Comptroller General shall 
consult with the Commission as necessary.
  (b) Requirements.--The study shall examine the racial disparities of 
the rates of preventable injuries and deaths related to suffocation, 
poisonings, and drownings associated with the use of cribs, mattresses 
and bedding materials, swimming pools and spas, and toys and other 
products intended for use by children.
  (c) Report.--Not later than 1 year after the date of the enactment of 
this Act, the Comptroller General shall report the findings to the 
Committee on Energy and Commerce of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate. 
The report shall include--
          (1) the Comptroller General's findings on the incidence of 
        preventable risks of injuries and deaths among children of 
        minority populations and recommendations for minimizing such 
        risks;
          (2) recommendations for public outreach, awareness, and 
        prevention campaigns specifically aimed at racial minority 
        populations; and
          (3) recommendations for education initiatives that may reduce 
        statistical disparities.

SEC. 107. REVIEW OF GENERALLY-APPLICABLE STANDARDS FOR TOYS.

  (a) Assessment.--The Commission shall examine and assess the 
effectiveness of the safety standard for toys, ASTM-International 
standard F963-07, or its successor standard, to determine--
          (1) the scope of such standards, including the number and 
        type of toys to which such standards apply;
          (2) the degree of adherence to such standards on the part of 
        manufacturers; and
          (3) the adequacy of such standards in protecting children 
        from safety hazards.
  (b) Special Focus on Magnets.--In conducting the assessment required 
under subsection (a), the Commission shall first examine the 
effectiveness of the F963-07 standard as it relates to intestinal 
blockage and perforation hazards caused by ingestion of magnets. If the 
Commission determines based on the review that there is substantial 
noncompliance with such standard that creates an unreasonable risk of 
injury or hazard to children, the Commission shall expedite a 
rulemaking to consider the adoption, as a consumer product safety rule, 
of the voluntary safety standards contained within the ASTM F963-07, or 
its successor standard, that relate to intestinal blockage and 
perforation hazards caused by ingestion of magnets.
  (c) Report.--Not later than 2 years after the date of enactment of 
this Act, the Commission shall report to Congress the findings of the 
study conducted pursuant to subsection (a). Such report shall include 
the Commission's opinion regarding--
          (1) the feasibility of requiring manufacturer testing of all 
        toys to such standards; and
          (2) whether promulgating consumer product safety rules that 
        are substantially similar or more stringent than the standards 
        described in such subsection would be beneficial to public 
        health and safety.

          TITLE II--CONSUMER PRODUCT SAFETY COMMISSION REFORM

SEC. 201. REAUTHORIZATION OF THE COMMISSION.

  (a) Authorization of Appropriations.--Subsections (a) and (b) of 
section 32 (15 U.S.C. 2081) are amended to read as follows:
  ``(a) There are authorized to be appropriated to the Commission for 
the purpose of carrying out the provisions of this Act and any other 
provision of law the Commission is authorized or directed to carry 
out--
          ``(1) $80,000,000 for fiscal year 2009;
          ``(2) $90,000,000 for fiscal year 2010; and
          ``(3) $100,000,000 for fiscal year 2011.
  ``(b) In addition to the amounts specified in subsection (a), there 
are authorized to be appropriated $20,000,000 to the Commission for 
fiscal years 2009 through 2011, for the purpose of renovation, repair, 
reconstruction, re-equipping, and making other necessary capital 
improvements to the Commission's research, development, and testing 
facility (including bringing the facility into compliance with 
applicable environmental, safety, and accessibility standards).''.
  (b) Report to Congress.--Not later than 180 days after the date of 
enactment of this Act, the Commission shall transmit to Congress a 
report of its plans to allocate the funding authorized by subsection 
(a). Such report shall include--
          (1) the number of full-time inspectors and other full-time 
        equivalents the Commission intends to employ;
          (2) the plan of the Commission for risk assessment and 
        inspection of imported consumer products;
          (3) an assessment of the feasibility of mandating bonds for 
        serious hazards and repeat offenders and Commission inspection 
        and certification of foreign third-party and proprietary 
        testing facilities; and
          (4) the efforts of the Commission to reach and educate 
        retailers of second-hand products and informal sellers, such as 
        thrift shops and yard sales, concerning consumer product safety 
        standards and product recalls, especially those relating to 
        durable nursery products, in order to prevent the resale of any 
        products that have been recalled, including the development of 
        educational materials for distribution not later than 1 year 
        after the date of enactment of this Act.

SEC. 202. STRUCTURE AND QUORUM.

  (a) Extension of Temporary Quorum.--Notwithstanding section 4(d) of 
the Consumer Product Safety Act (15 U.S.C. 2053(d)), 2 members of the 
Commission, if they are not affiliated with the same political party, 
shall constitute a quorum for the transaction of business for the 
period beginning on the date of enactment of this Act through--
          (1) August 3, 2008, if the President nominates a person to 
        fill a vacancy on the Commission prior to such date; or
          (2) the earlier of--
                  (A) 3 months after the date on which the President 
                nominates a person to fill a vacancy on the Commission 
                after such date; or
                  (B) February 3, 2009.
  (b) Repeal of Limitation.--The first proviso in the account under the 
heading ``Consumer Product Safety Commission, Salaries and Expenses'' 
in title III of Public Law 102-389 (15 U.S.C. 2053 note) shall cease to 
be in effect after fiscal year 2010.

SEC. 203. SUBMISSION OF COPY OF CERTAIN DOCUMENTS TO CONGRESS.

  (a) In General.--Notwithstanding any rule, regulation, or order to 
the contrary, the Commission shall comply with the requirements of 
section 27(k) of the Consumer Product Safety Act (15 U.S.C. 2076) with 
respect to budget recommendations, legislative recommendations, 
testimony, and comments on legislation submitted by the Commission to 
the President or the Office of Management and Budget after the date of 
enactment of this Act.
  (b) Reinstatement of Requirement.--Section 3003(d) of Public Law 104-
66 (31 U.S.C. 1113 note) is amended--
          (1) by striking ``or'' after the semicolon in paragraph (31);
          (2) by redesignating paragraph (32) as (33); and
          (3) by inserting after paragraph (31) the following:
          ``(32) section 27(k) of the Consumer Product Safety Act (15 
        U.S.C. 2076(k)); or''.

SEC. 204. EXPEDITED RULEMAKING.

  (a) Rulemaking Under the Consumer Product Safety Act.--
          (1) Advance notice of proposed rulemaking requirement.--
        Section 9 (15 U.S.C. 2058) is amended--
                  (A) by striking ``shall be commenced'' in subsection 
                (a) and inserting ``may be commenced'';
                  (B) by striking ``in the notice'' in subsection (b) 
                and inserting ``in a notice'';
                  (C) by striking ``unless, not less than 60 days after 
                publication of the notice required in subsection (a), 
                the'' in subsection (c) and inserting ``unless the'';
                  (D) by inserting ``or notice of proposed rulemaking'' 
                after ``advance notice of proposed rulemaking'' in 
                subsection (c); and
                  (E) by striking ``an advance notice of proposed 
                rulemaking under subsection (a) relating to the product 
                involved,'' in the third sentence of subsection (c) and 
                inserting ``the notice''.
          (2) Conforming amendment.--Section 5(a)(3) (15 U.S.C. 
        2054(a)(3)) is amended by striking ``an advance notice of 
        proposed rulemaking or''.
  (b) Rulemaking Under Federal Hazardous Substances Act.--
          (1) In general.--Section 3(a)(1) of the Federal Hazardous 
        Substances Act (15 U.S.C. 1262(a)(1)) is amended to read as 
        follows:
  ``(1) Whenever in the judgment of the Commission such action will 
promote the objectives of this Act by avoiding or resolving uncertainty 
as to its application, the Commission may by regulation declare to be a 
hazardous substance, for the purposes of this Act, any substance or 
mixture of substances, which the Commission finds meets the 
requirements section 2(f)(1)(A).''.
          (2) Procedure.--
                  (A) Section 2(q)(2) of the Federal Hazardous 
                Substances Act (15 U.S.C. 1261(q)(2)) is amended by 
                striking ``Proceedings for the issuance, amendment, or 
                repeal of regulations pursuant to clause (B) of 
                subparagraph (1) of this paragraph shall be governed by 
                the provisions of sections 701(e), (f), and (g) of the 
                Federal Food, Drug, and Cosmetic Act: Provided, That 
                if'' and inserting ``Proceedings for the issuance, 
                amendment, or repeal of regulations pursuant to clause 
                (B) of subparagraph (1) of this paragraph shall be 
                governed by the provisions of subsections (f) through 
                (i) of section 3 of this Act, except that if''.
                  (B) Section 3(a)(2) of the Federal Hazardous 
                Substances Act (15 U.S.C. 1262(a)(2)) is amended to 
                read as follows:
  ``(2) Proceedings for the issuance, amendment, or repeal of 
regulations under this subsection and the admissibility of the record 
of such proceedings in other proceedings, shall be governed by the 
provisions of subsections (f) through (i) of this section.''.
          (3) Advance notice of proposed rulemaking requirement.--
        Section 3 of the Federal Hazardous Substances Act (15 U.S.C. 
        1262) is amended--
                  (A) by striking ``shall be commenced'' in subsection 
                (f) and inserting ``may be commenced'';
                  (B) by striking ``in the notice'' in subsection 
                (g)(1) and inserting ``in a notice''; and
                  (C) by striking ``unless, not less than 60 days after 
                publication of the notice required in subsection (f), 
                the'' in subsection (h) and inserting ``unless the''.
          (4) Conforming amendments.--The Federal Hazardous Substances 
        Act (15 U.S.C. 1261 et seq.) is amended--
                  (A) by striking subsection (d) of section 2 and 
                inserting the following:
  ``(d) The term `Commission' means the Consumer Product Safety 
Commission.'';
                  (B) by striking ``Secretary'' each place it appears 
                and inserting ``Commission'' except--
                          (i) in section 10(b) (15 U.S.C. 1269(b));
                          (ii) in section 14 (15 U.S.C. 1273); and
                          (iii) in section 21(a) (15 U.S.C. 1276(a));
                  (C) by striking ``Department'' each place it appears, 
                except in section 14(b), and inserting ``Commission'';
                  (D) by striking ``he'' and ``his'' each place they 
                appear in reference to the Secretary and inserting 
                ``it'' and ``its'', respectively;
                  (E) by striking ``Secretary of Health, Education, and 
                Welfare'' each place it appears in section 10(b) (15 
                U.S.C. 1269(b)) and inserting ``Commission'';
                  (F) by striking ``Secretary of Health, Education, and 
                Welfare'' each place it appears in section 14 (15 
                U.S.C. 1273) and inserting ``Commission'';
                  (G) by striking ``Department of Health, Education, 
                and Welfare'' in section 14(b) (15 U.S.C. 1273(b)) and 
                inserting ``Commission'';
                  (H) by striking ``Consumer Product Safety 
                Commission'' each place it appears and inserting 
                ``Commission''; and
                  (I) by striking ``(hereinafter in this section 
                referred to as the `Commission')'' in section 20(a)(1) 
                (15 U.S.C. 1275(a)(1)).
  (c) Rulemaking Under the Flammable Fabrics Act.--
          (1) In general.--Section 4 of the Flammable Fabrics Act (15 
        U.S.C. 1193) is amended--
                  (A) by striking ``shall be commenced'' and inserting 
                ``may be commenced by a notice of proposed rulemaking 
                or'';
                  (B) in subsection (i), by striking ``unless, not less 
                than 60 days after publication of the notice required 
                in subsection (g), the'' and inserting ``unless the''.
          (2) Other conforming amendments.--The Flammable Fabrics Act 
        (15 U.S.C. 1193 et seq.) is further amended--
                  (A) by striking subsection (i) of section 2 and 
                inserting the following:
  ``(i) The term `Commission' means the Consumer Product Safety 
Commission.'';
                  (B) by striking ``Secretary of Commerce'' each place 
                it appears and inserting ``the Commission'';
                  (C) by striking ``Secretary'' each place it appears, 
                except in sections 9 and 14, and inserting 
                ``Commission'';
                  (D) by striking ``he'' and ``his'' each place either 
                term appears in reference to the secretary and insert 
                ``it'' and ``its'', respectively;
                  (E) in section 4(e), by striking paragraph (5) and 
                redesignating paragraph (6) as paragraph (5);
                  (F) in section 15, by striking ``Consumer Product 
                Safety Commission (hereinafter referred to as the 
                `Commission')'' and inserting ``Commission'';
                  (G) by striking section 16(d) and inserting the 
                following:
  ``(d) In this section, a reference to a flammability standard or 
other regulation for a fabric, related materials, or product in effect 
under this Act includes a standard of flammability continued in effect 
by section 11 of the Act of December 14, 1967 (Public Law 90-189).''; 
and
                  (H) in section 17, by striking ``Consumer Product 
                Safety Commission'' and inserting ``Commission''.

SEC. 205. PUBLIC DISCLOSURE OF INFORMATION.

  Section 6(b) (15 U.S.C. 2055(b)) is amended--
          (1) in paragraph (1)--
                  (A) by striking ``30 days'' and inserting ``15 
                days'';
                  (B) by striking ``finds that the public'' and 
                inserting ``publishes a finding that the public''; and
                  (C) by striking ``and publishes such a finding in the 
                Federal Register'';
          (2) in paragraph (2)--
                  (A) by striking ``10 days'' and inserting ``5 days'';
                  (B) by striking ``finds that the public'' and 
                inserting ``publishes a finding that the public''; and
                  (C) by striking ``and publishes such a finding in the 
                Federal Register'';
          (3) in paragraph (4), by striking ``section 19 (related to 
        prohibited acts)'' and inserting ``any consumer product safety 
        rule under or provision of this Act or similar rule under or 
        provision of any other Act administered by the Commission''; 
        and
          (4) in paragraph (5)--
                  (A) in subparagraph (B), by striking ``; or'' and 
                inserting a semicolon;
                  (B) in subparagraph (C), by striking the period and 
                inserting ``; or'';
                  (C) by adding at the end the following:
          ``(D) the Commission publishes a finding that the public 
        health and safety require public disclosure with a lesser 
        period of notice than is required under paragraph (1).''; and
                  (D) in the matter following such subparagraph (as 
                added by subparagraph (C)), by striking ``section 
                19(a)'' and inserting ``any consumer product safety 
                rule under this Act or similar rule under or provision 
                of any other Act administered by the Commission''.

SEC. 206. PUBLICLY AVAILABLE INFORMATION ON INCIDENTS INVOLVING INJURY 
                    OR DEATH.

  (a) Evaluation.--The Commission shall examine and assess the efficacy 
of the Injury Information Clearinghouse maintained by the Commission 
pursuant to section 5(a) of the Consumer Product Safety Act (15 U.S.C. 
2054(a)). The Commission shall determine the volume and types of 
publicly available information on incidents involving consumer products 
that result in injury, illness, or death and the ease and manner in 
which consumers can access such information.
  (b) Improvement Plan.--As a result of the study conducted under 
subsection (a), the Commission shall transmit to Congress, not later 
than 180 days after the date of enactment of this Act, a detailed plan 
for maintaining and categorizing such information on a searchable 
Internet database to make the information more easily available and 
beneficial to consumers, with due regard for the protection of personal 
information. Such plan shall include the views of the Commission 
regarding whether additional information, such as consumer complaints, 
hospital or other medical reports, and warranty claims, should be 
included in the database. The plan submitted under this subsection 
shall include a detailed implementation schedule for the database, 
recommendations for any necessary legislation, and plans for a public 
awareness campaign to be conducted by the Commission to increase 
consumer awareness of the database.

SEC. 207. PROHIBITION ON STOCKPILING UNDER OTHER COMMISSION-ENFORCED 
                    STATUTES.

  Section 9(g)(2) (15 U.S.C. 2058(g)(2)) is amended--
          (1) by inserting ``or to which a rule under any other law 
        enforced by the Commission applies,'' after ``applies,''; and
          (2) by striking ``consumer product safety'' the second, 
        third, and fourth places it appears.

SEC. 208. NOTIFICATION OF NONCOMPLIANCE WITH ANY COMMISSION-ENFORCED 
                    STATUTE.

  Section 15(b) (15 U.S.C. 2064(b)) is amended--
          (1) by redesignating paragraphs (2) and (3) as paragraphs (3) 
        and (4), respectively;
          (2) by inserting after paragraph (1) the following:
          ``(2) fails to comply with any other rule affecting health 
        and safety promulgated by the Commission under the Federal 
        Hazardous Substances Act, the Flammable Fabrics Act, or the 
        Poison Prevention Packaging Act;''; and
          (3) by adding at the end the following sentence: ``A report 
        provided under this paragraph (2) may not be used as the basis 
        for criminal prosecution under section 5 of the Federal 
        Hazardous Substances Act (15 U.S.C. 1264), except for offenses 
        which require a showing of intent to defraud or mislead.''.

SEC. 209. ENHANCED RECALL AUTHORITY AND CORRECTIVE ACTION PLANS.

  (a) Enhanced Recall Authority.--Section 15 (15 U.S.C. 2064) is 
amended--
          (1) in subjection (c)--
                  (A) by striking ``if the Commission'' and inserting 
                ``(1) If the Commission'';
                  (B) by inserting ``or if the Commission, after 
                notifying the manufacturer, determines a product to be 
                an imminently hazardous consumer product and has filed 
                an action under section 12,'' after ``from such 
                substantial product hazard,'';
                  (C) by redesignating paragraphs (1) through (3) as 
                subparagraphs (D) through (F), respectively;
                  (D) by inserting after ``the following actions:'' the 
                following:
          ``(A) To cease distribution of the product.
          ``(B) To notify all persons that transport, store, 
        distribute, or otherwise handle the product, or to which the 
        product has been transported, sold, distributed, or otherwise 
        handled, to cease immediately distribution of the product.
          ``(C) To notify appropriate State and local public health 
        officials.''; and
                  (E) by adding at the end the following:
  ``(2) If a district court determines, in an action filed under 
section 12, that the product that is the subject of such action is not 
an imminently hazardous consumer product, the Commission shall rescind 
any order issued under this subsection with respect to such product.''.
          (2) in subsection (f)--
                  (A) by striking ``An order'' and inserting ``(1) 
                Except as provided in paragraph (2), an order''; and
                  (B) by inserting at the end the following:
          ``(2) The requirement for a hearing in paragraph (1) shall 
        not apply to an order issued under subsection (c) relating to 
        an imminently hazardous consumer product with regard to which 
        the Commission has filed an action under section 12.''.
  (b) Corrective Action Plans.--Section 15(d) (15 U.S.C. 2064(d)) is 
amended--
          (1) by inserting ``(1)'' after the subsection designation;
          (2) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C);
          (3) by striking ``more (A)'' in subparagraph (C), as 
        redesignated, and inserting ``more (i)'';
          (4) by striking ``or (B)'' in subparagraph (C), as 
        redesignated, and inserting ``or (ii)'';
          (5) by striking ``An order under this subsection may'' and 
        inserting:
  ``(2) An order under this subsection shall'';
          (6) by striking ``, satisfactory to the Commission,'' and 
        inserting ``, as promptly as practicable under the 
        circumstances, as determined by the Commission, for approval by 
        the Commission,''; and
          (7) by adding at the end the following:
  ``(3)(A) If the Commission approves an action plan, it shall indicate 
its approval in writing.
  ``(B) If the Commission finds that an approved action plan is not 
effective or appropriate under the circumstances, or that the 
manufacturer, retailer, or distributor is not executing an approved 
action plan effectively, the Commission may, by order, amend, or 
require amendment of, the action plan. In determining whether an 
approved plan is effective or appropriate under the circumstances, the 
Commission shall consider whether a repair or replacement changes the 
intended functionality of the product.
  ``(C) If the Commission determines, after notice and opportunity for 
comment, that a manufacturer, retailer, or distributor has failed to 
comply substantially with its obligations under its action plan, the 
Commission may revoke its approval of the action plan.''.
  (c) Content of Notice.--Section 15 is further amended by adding at 
the end the following:
  ``(i) Not later than 180 days after the date of enactment of this 
Act, the Commission shall, by rule, establish guidelines setting forth 
a uniform class of information to be included in any notice required 
under an order under subsection (c) or (d) of this section or under 
section 12. Such guidelines shall include any information that the 
Commission determines would be helpful to consumers in--
          ``(1) identifying the specific product that is subject to 
        such an order;
          ``(2) understanding the hazard that has been identified with 
        such product (including information regarding incidents or 
        injuries known to have occurred involving such product); and
          ``(3) understanding what remedy, if any, is available to a 
        consumer who has purchased the product.''.

SEC. 210. WEBSITE NOTICE, NOTICE TO THIRD PARTY INTERNET SELLERS, AND 
                    RADIO AND TELEVISION NOTICE.

  Section 15(c)(1) (15 U.S.C. 2064(c)(1)) is amended by inserting ``, 
including posting clear and conspicuous notice on its Internet website, 
providing notice to any third party Internet website on which such 
manufacturer, retailer, or distributor has placed the product for sale, 
and announcements in languages other than English and on radio and 
television where the Commission determines that a substantial number of 
consumers to whom the recall is directed may not be reached by other 
notice'' after ``comply''.

SEC. 211. INSPECTION OF CERTIFIED PROPRIETARY LABORATORIES.

  Section 16(a)(1) is amended by striking ``or (B)'' and inserting 
``(B) any proprietary laboratories certified under section 14(e), or 
(C)''.

SEC. 212. IDENTIFICATION OF MANUFACTURER, IMPORTERS, RETAILERS, AND 
                    DISTRIBUTORS.

  (a) In General.--Section 16 (15 U.S.C. 2065) is further amended by 
adding at the end thereof the following:
  ``(c) Upon request by an officer or employee duly designated by the 
Commission--
          ``(1) every importer, retailer, or distributor of a consumer 
        product (or other product or substance over which the 
        Commission has jurisdiction under this or any other Act) shall 
        identify the manufacturer of that product by name, address, or 
        such other identifying information as the officer or employee 
        may request, to the extent that such information is in the 
        possession of the importer, retailer, or distributor; and
          ``(2) every manufacturer shall identify by name, address, or 
        such other identifying information as the officer or employee 
        may request--
                  ``(A) each retailer or distributor to which the 
                manufacturer directly supplied a given consumer product 
                (or other product or substance over which the 
                Commission has jurisdiction under this or any other 
                Act);
                  ``(B) each subcontractor involved in the production 
                or fabrication or such product or substance; and
                  ``(C) each subcontractor from which the manufacturer 
                obtained a component thereof.''.
  (b) Compliance Required for Importation.--Section 17 (15 U.S.C. 2066) 
is amended--
          (1) in subsection (g), by striking ``may'' and inserting 
        ``shall''; and
          (2) in subsection (h)(2), by striking ``may'' and inserting 
        ``shall, consistent with section 6,''.

SEC. 213. EXPORT OF RECALLED AND NON-CONFORMING PRODUCTS.

  (a) In General.--Section 18 (15 U.S.C. 2067) is amended by adding at 
the end the following:
  ``(c) Notwithstanding any other provision of this section, the 
Commission may prohibit, by order, a person from exporting from the 
United States for purpose of sale any consumer product, or other 
product or substance that is regulated under any Act enforced by the 
Commission, that the Commission determines, after notice to the 
manufacturer--
          ``(1) is not in conformity with an applicable consumer 
        product safety rule under this Act or a similar rule under any 
        such other Act;
          ``(2) is subject to an order issued under section 12 or 15 of 
        this Act or designated as a banned hazardous substance under 
        the Federal Hazardous Substances Act (15 U.S.C. 1261 et seq.); 
        or
          ``(3) is subject to a voluntary corrective action taken by 
        the manufacturer, in consultation with the Commission, of which 
        action the Commission has notified the public and that would 
        have been subject to a mandatory corrective action under this 
        or another Act enforced by the Commission if voluntary action 
        had not been taken by the manufacturer,
unless the importing country has notified the Commission that such 
country accepts the importation of such product, provided that if the 
importing country has not so notified the Commission within 30 days 
after the Commission has provided notice to the importing country of 
the impending shipment, the Commission may take such action as is 
appropriate with respect to the disposition of the product under the 
circumstances.''.
  (b) Prohibited Act.--Section 19(a)(10) (15 U.S.C. 2068(a)(10)) is 
amended by striking the period at the end and inserting `` or violate 
an order of the Commission issued under section 18(c); or''.
  (c) Conforming Amendments to Other Acts.--
          (1) Federal hazardous substances act.--Section 5(b)(3) of the 
        Federal Hazardous Substances Act (15 U.S.C. 1264(b)(3)) is 
        amended by striking ``substance presents an unreasonable risk 
        of injury to persons residing in the United States'' and 
        inserting ``substance is prohibited under section 18(c) of the 
        Consumer Product Safety Act,''.
          (2) Flammable fabrics act.--Section 15 of the Flammable 
        Fabrics Act (15 U.S.C. 1202) is amended by adding at the end 
        the following:
  ``(d) Notwithstanding any other provision of this section, the 
Consumer Product Safety Commission may prohibit, by order, a person 
from exporting from the United States for purpose of sale any fabric, 
related material, or product that the Commission determines, after 
notice to the manufacturer--
          ``(1) is not in conformity with an applicable consumer 
        product safety rule under the Consumer Product Safety Act or 
        with a rule under this Act;
          ``(2) is subject to an order issued under section 12 or 15 of 
        the Consumer Product Safety Act or designated as a banned 
        hazardous substance under the Federal Hazardous Substances Act 
        (15 U.S.C. 1261 et seq.); or
          ``(3) is subject to a voluntary corrective action taken by 
        the manufacturer, in consultation with the Commission, of which 
        action the Commission has notified the public and that would 
        have been subject to a mandatory corrective action under this 
        or another Act enforced by the Commission if voluntary action 
        had not been taken by the manufacturer,
unless the importing country has notified the Commission that such 
country accepts the importation of such product, provided that if the 
importing country has not so notified the Commission within 30 days 
after the Commission has provided notice to the importing country of 
the impending shipment, the Commission may take such action as is 
appropriate with respect to the disposition of the product under the 
circumstances.''.

SEC. 214. PROHIBITION ON SALE OF RECALLED PRODUCTS.

  Section 19(a) (as amended by section 210) (15 U.S.C. 2068(a)) is 
further amended--
          (1) by striking paragraph (1) and inserting the following:
          ``(1) sell, offer for sale, manufacture for sale, distribute 
        in commerce, or import into the United States any consumer 
        product, or other product or substance that is regulated under 
        any other Act enforced by the Commission, that is--
                  ``(A) not in conformity with an applicable consumer 
                product safety standard under this Act, or any similar 
                rule under any such other Act;
                  ``(B) subject to voluntary corrective action taken by 
                the manufacturer, in consultation with the Commission, 
                of which action the Commission has notified the public;
                  ``(C) subject to an order issued under section 12 or 
                15 of this Act; or
                  ``(D) designated a banned hazardous substance under 
                the Federal Hazardous Substances Act (15 U.S.C. 1261 et 
                seq.);'';
          (2) by striking ``or'' after the semicolon in paragraph (7);
          (3) by striking ``and'' after the semicolon in paragraph (8); 
        and
          (4) by striking ``insulation).'' in paragraph (9) and 
        inserting ``insulation);''.

SEC. 215. INCREASED CIVIL PENALTY.

  (a) Maximum Civil Penalties of the Consumer Product Safety 
Commission.--
          (1) Initial increase in maximum civil penalties.--
                  (A) Temporary increase.--Notwithstanding the dollar 
                amounts specified for maximum civil penalties specified 
                in section 20(a)(1) of the Consumer Product Safety Act 
                (15 U.S.C. 2069(a)(1)), section 5(c)(1) of the Federal 
                Hazardous Substances Act, and section 5(e)(1) of the 
                Flammable Fabrics Act (15 U.S.C. 1194(e)(1)), the 
                maximum civil penalties for any violation specified in 
                such sections shall be $5,000,000, beginning on the 
                date that is the earlier of the date on which final 
                regulations are issued under section 3(b) or 360 days 
                after the date of enactment of this Act.
                  (B) Effective date.--Paragraph (1) shall cease to be 
                in effect on the date on which the amendments made by 
                subsection (b)(1) shall take effect.
          (2) Permanent increase in maximum civil penalties.--
                  (A) Amendments.--
                          (i) Consumer product safety act.--Section 
                        20(a)(1) (15 U.S.C. 2069(a)(1)) is amended by 
                        striking ``$1,250,000'' both places it appears 
                        and inserting ``$10,000,000''.
                          (ii) Federal hazardous substances act.--
                        Section 5(c)(1) of the Federal Hazardous 
                        Substances Act (15 U.S.C. 1264(c)(1)) is 
                        amended by striking ``$1,250,000'' both places 
                        it appears and inserting ``$10,000,000''.
                          (iii) Flammable fabrics act.--Section 5(e)(1) 
                        of the Flammable Fabrics Act (15 U.S.C. 
                        1194(e)(1)) is amended by striking 
                        ``$1,250,000'' and inserting ``$10,000,000''.
                  (B) Effective date.--The amendments made by paragraph 
                (1) shall take effect on the date that is 1 year after 
                the earlier of--
                          (i) the date on which final regulations are 
                        issued pursuant to section 3(b); or
                          (ii) 360 days after the date of enactment of 
                        this Act.
  (b) Determination of Penalties by the Consumer Product Safety 
Commission.--
          (1) Factors to be considered.--
                  (A) Consumer product safety act.--Section 20(b) (15 
                U.S.C. 2069(b)) is amended--
                          (i) by inserting ``the nature, circumstances, 
                        extent, and gravity of the violation, 
                        including'' after ``shall consider'';
                          (ii) by striking ``products distributed, 
                        and'' and inserting ``products distributed,''; 
                        and
                          (iii) by inserting ``, and such other factors 
                        as appropriate'' before the period.
                  (B) Federal hazardous substances act.--Section 
                5(c)(3) of the Federal Hazardous Substances Act (15 
                U.S.C. 1264(c)(3)) is amended--
                          (i) by inserting ``the nature, circumstances, 
                        extent ,and gravity of the violation, 
                        including'' after ``shall consider'';
                          (ii) by striking ``substance distributed, 
                        and'' and inserting ``substance distributed,''; 
                        and
                          (iii) by inserting ``, and such other factors 
                        as appropriate'' before the period.
                  (C) Flammable fabrics act.--Section 5(e)(2) of the 
                Flammable Fabrics Act (15 U.S.C. 1194(e)(2)) is 
                amended--
                          (i) by striking ``nature and number'' and 
                        inserting ``nature, circumstances, extent, and 
                        gravity'';
                          (ii) by striking ``absence of injury, and'' 
                        and inserting ``absence of injury,''; and
                          (iii) by inserting ``, and such other factors 
                        as appropriate'' before the period.
          (2) Regulations.--Not later than 1 year after the date of 
        enactment of this Act, and in accordance with the procedures of 
        section 553 of title 5, United States Code, the Commission 
        shall issue a final regulation providing its interpretation of 
        the penalty factors described in section 20(b) of the Consumer 
        Product Safety Act (15 U.S.C. 2069(b)), section 5(c)(3) of the 
        Federal Hazardous Substances Act (15 U.S.C. 1264(c)(3)), and 
        section 5(e)(2) of the Flammable Fabrics Act (15 U.S.C. 
        1194(e)(2)), as amended by subsection (a).

SEC. 216. CRIMINAL PENALTIES TO INCLUDE ASSET FORFEITURE.

  Section 21 (15 U.S.C. 2070) is amended by adding at the end thereof 
the following:
  ``(c)(1) In addition to the penalty provided by subsection (a), the 
penalty for a criminal violation of this Act or any other Act enforced 
by the Commission may include the forfeiture of assets associated with 
the violation.
  ``(2) In this subsection, the term `criminal violation' means a 
violation of this Act of any other Act enforced by the Commission for 
which the violator is sentenced under this section, section 5(a) of the 
Federal hazardous Substances Act (15 U.S.C. 2064(a)), or section 7 of 
the Flammable Fabrics Act (15 U.S.C. 1196).''.

SEC. 217. ENFORCEMENT BY STATE ATTORNEYS GENERAL.

  Section 24 (15 U.S.C. 2073) is amended--
          (1) in the section heading, by striking ``private'' and 
        inserting ``additional'';
          (2) by striking ``Any interested person'' and inserting ``(a) 
        Any interested person''; and
          (3) by striking ``No separate suit'' and all that follows and 
        inserting the following:
  ``(b)(1) The attorney general of a State, alleging a violation of 
section 19(a) that affects or may affect such State or its residents 
may bring an action on behalf of the residents of the State in any 
United States district court for the district in which the defendant is 
found or transacts business to enforce a consumer product safety rule 
or an order under section 15, and to obtain appropriate injunctive 
relief.
  ``(2) Not less than thirty days prior to the commencement of such 
action, the attorney general shall give notice by registered mail to 
the Commission, to the Attorney General, and to the person against whom 
such action is directed. Such notice shall state the nature of the 
alleged violation of any such standard or order, the relief to be 
requested, and the court in which the action will be brought. The 
Commission shall have the right--
          ``(A) to intervene in the action;
          ``(B) upon so intervening, to be heard on all matters arising 
        therein;
          ``(C) and to file petitions for appeal.
  ``(c) No separate suit shall be brought under this section if at the 
time the suit is brought the same alleged violation is the subject of a 
pending civil or criminal action by the United States under this Act. 
In any action under this section the court may in the interest of 
justice award the costs of suit, including reasonable attorneys' fees 
(determined in accordance with section 11(f)) and reasonable expert 
witnesses' fees.''.

SEC. 218. EFFECT OF RULES ON PREEMPTION.

  In issuing any rule or regulation in accordance with its statutory 
authority, the Commission shall not seek to expand or contract the 
scope, or limit, modify, interpret, or extend the application of 
sections 25 and 26 of the Consumer Products Safety Act (15 U.S.C. 2074 
and 2075, respectively), section 18 of the Federal Hazardous Substances 
Act (15 U.S.C. 1261), section 7 of the Poison Prevention Packaging Act 
(15 U.S.C. 1476), or section 16 of the Flammable Fabrics Act (15 U.S.C. 
1203) with regard to the extent to which each such Act preempts, 
limits, or otherwise affects any other Federal, State, or local law, or 
limits or otherwise affects any cause of action under State or local 
law.

SEC. 219. SHARING OF INFORMATION WITH FEDERAL, STATE, LOCAL, AND 
                    FOREIGN GOVERNMENT AGENCIES.

  Section 29 (15 U.S.C. 2078) is amended by adding at the end the 
following:
  ``(f)(1) The Commission may make information obtained by the 
Commission under this Act available (consistent with the requirements 
of section 6) to any Federal, State, local, or foreign government 
agency upon the prior certification of an appropriate official of any 
such agency, either by a prior agreement or memorandum of understanding 
with the Commission or by other written certification, that such 
material will be maintained in confidence and will be used only for 
official law enforcement or consumer protection purposes, if--
          ``(A) the agency has set forth a bona fide legal basis for 
        its authority to maintain the material in confidence;
          ``(B) the materials are to be used for purposes of 
        investigating, or engaging in enforcement proceedings related 
        to, possible violations of--
                  ``(i) laws regulating the manufacture, importation, 
                distribution, or sale of defective or unsafe consumer 
                products, or other practices substantially similar to 
                practices prohibited by any law administered by the 
                Commission;
                  ``(ii) a law administered by the Commission, if 
                disclosure of the material would further a Commission 
                investigation or enforcement proceeding; or
                  ``(iii) with respect to a foreign law enforcement 
                agency, with the approval of the Attorney General, 
                other foreign criminal laws, if such foreign criminal 
                laws are offenses defined in or covered by a criminal 
                mutual legal assistance treaty in force between the 
                government of the United States and the foreign law 
                enforcement agency's government; and
          ``(C) in the case of a foreign government agency, such agency 
        is not from a foreign state that the Secretary of State has 
        determined, in accordance with section 6(j) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2405(j)), has 
        repeatedly provided support for acts of international 
        terrorism, unless and until such determination is rescinded 
        pursuant to section 6(j)(4) of that Act (50 U.S.C. App. 
        2405(j)(4)).
          ``(2) The Commission may abrogate any agreement or memorandum 
        of understanding entered into under paragraph (1) if the 
        Commission determines that the agency with which such agreement 
        or memorandum of understanding was entered into has failed to 
        maintain in confidence any information provided under such 
        agreement or memorandum of understanding, or has used any such 
        information for purposes other than those set forth in such 
        agreement or memorandum of understanding.
          ``(3)(A) Except as provided in subparagraph (B) of this 
        paragraph, the Commission shall not be required to disclose 
        under section 552 of title 5, United States Code, or any other 
        provision of law--
                  ``(i) any material obtained from a foreign government 
                agency, if the foreign government agency has requested 
                confidential treatment, or has precluded such 
                disclosure under other use limitations, as a condition 
                of providing the material;
                  ``(ii) any material reflecting a consumer complaint 
                obtained from any other foreign source, if that foreign 
                source supplying the material has requested 
                confidential treatment as a condition of providing the 
                material; or
                  ``(iii) any material reflecting a consumer complaint 
                submitted to a Commission reporting mechanism sponsored 
                in part by foreign government agencies.
          ``(B) Nothing in this subsection shall authorize the 
        Commission to withhold information from the Congress or prevent 
        the Commission from complying with an order of a court of the 
        United States in an action commenced by the United States or 
        the Commission.
  ``(4) In this subsection, the term `foreign government agency' 
means--
          ``(A) any agency or judicial authority of a foreign 
        government, including a foreign state, a political subdivision 
        of a foreign state, or a multinational organization constituted 
        by and comprised of foreign states, that is vested with law 
        enforcement or investigative authority in civil, criminal, or 
        administrative matters; and
          ``(B) any multinational organization, to the extent that it 
        is acting on behalf of an entity described in subparagraph (A).
  ``(g) Whenever the Commission is notified of any voluntary recall of 
any consumer product self-initiated by a manufacturer (or a retailer in 
the case of a retailer selling a product under its own label), or 
issues an order under section 15(c) or (d) with respect to any product, 
the Commission shall notify each State's health department or other 
agency designated by the State of the recall or order.''.

SEC. 220. INSPECTOR GENERAL AUTHORITY AND ACCESSIBILITY.

  (a) Report.--Not later than 60 days after the date of the enactment 
of this Act, the Inspector General of the Commission shall transmit a 
report to Congress on the activities of the Inspector General, any 
structural barriers which prevent the Inspector General from providing 
robust oversight of the activities of the Commission, and any 
additional authority or resources that would facilitate more effective 
oversight.
  (b) Employee Complaints.--
          (1) In general.--The Inspector General of the Commission 
        shall conduct a review of--
                  (A) complaints received by the Inspector General from 
                employees of the Commission about violations of rules, 
                regulations, or the provisions of any Act enforced by 
                the Commission; and
                  (B) the process by which corrective action plans are 
                negotiated with such employees by the Commission, 
                including an assessment of the length of time for these 
                negotiations and the effectiveness of the plans.
          (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Inspector General shall transmit a 
        report to the Commission and to Congress setting forth the 
        Inspector General's findings, conclusions, actions taken in 
        response to employee complaints, and recommendations.
  (c) Complaint Procedure.--Not later than 30 days after the date of 
enactment of this Act the Commission shall establish and maintain on 
the homepage of the Commission's Internet website a mechanism by which 
individuals may anonymously report incidents of waste, fraud, or abuse 
with respect to the Commission.

SEC. 221. REPEAL.

  Section 30 (15 U.S.C. 2079) is amended by striking subsection (d) and 
redesignating subsections (e) and (f) as subsections (d) and (e), 
respectively.

SEC. 222. INDUSTRY-SPONSORED TRAVEL BAN.

  The Consumer Product Safety Act (15 U.S.C. 1251 et seq.) is amended 
by adding at the end the following new section:

``SEC. 38. PROHIBITION ON INDUSTRY-SPONSORED TRAVEL.

  ``(a) Prohibition.--Notwithstanding section 1353 of title 31, United 
States Code, no Commissioner or employee of the Commission shall accept 
travel, subsistence, and related expenses with respect to attendance by 
a Commissioner or employee at any meeting or similar function relating 
to official duties of a Commissioner or an employee, from a person--
          ``(1) seeking official action from, doing business with, or 
        conducting activities regulated by, the Commission; or
          ``(2) whose interests may be substantially affected by the 
        performance or nonperformance of the Commissioner's or 
        employee's official duties.
  ``(b) Authorization of Appropriations for Official Travel.--There are 
authorized to be appropriated, for each of fiscal years 2009 through 
2011, $1,200,000 to the Commission for certain travel and lodging 
expenses necessary in furtherance of the official duties of 
Commissioners and employees.''.

SEC. 223. ANNUAL REPORTING REQUIREMENT.

  Section 27(j) (15 U.S.C. 2076(j)) is amended--
          (1) in the matter preceding paragraph (1), by striking ``The 
        Commission'' and inserting ``Notwithstanding section 3003 of 
        the Federal Reports Elimination and Sunset Act of 1995 (31 
        U.S.C. 1113 note), the Commission''; and
          (2) by redesignating paragraphs (5) through (11) as 
        paragraphs (6) through (12), respectively and inserting after 
        paragraph (4) the following:
          ``(5) the number and summary of recall orders issued under 
        section 12 or 15 during such year and a summary of voluntary 
        actions taken by manufacturers of which the Commission has 
        notified the public, and an assessment of such orders and 
        actions;''.

SEC. 224. STUDY ON THE EFFECTIVENESS OF AUTHORITY RELATING TO IMPORTED 
                    PRODUCTS.

  The Commission shall study the effectiveness of section 17(a) of the 
Consumer Product Safety Act (15 U.S.C. 2066(a)), specifically 
paragraphs (3) and (4) of such section, to determine a specific 
strategy to increase the effectiveness of the Commission's ability to 
stop unsafe products from entering the United States. The Commission 
shall submit a report to Congress not later than 9 months after 
enactment of this Act, which shall include recommendations regarding 
additional authority the Commission needs to implement such strategy, 
including any necessary legislation.

                          PURPOSE AND SUMMARY

    H.R. 4040, the Consumer Product Safety Modernization Act, 
is comprehensive bipartisan legislation to strengthen and 
modernize the consumer product safety system in the United 
States. The legislation places special emphasis on improving 
the safety of products designed or intended for children.
    Title I, ``Children's Product Safety,'' contains provisions 
to ensure the greater safety of toys, nursery equipment, and 
other children's products that are sold in or imported into 
interstate commerce. It includes provisions that establish or 
toughen Federal standards to ban lead in children's products 
beyond minute amounts; require pretesting and certification of 
certain children's products, including nursery equipment; 
mandate identifying and cautionary labeling; require a study by 
the Comptroller General of whether there is a disproportionate 
rate of death or injury from consumer products for minority 
children; and require an assessment of voluntary standards 
governing the safety of toys, with special attention to 
products or toys containing powerful magnets.
    Title II, ``Consumer Product Safety Commission Reform,'' 
reauthorizes the Consumer Product Safety Commission (CPSC), the 
Government agency charged with overseeing and regulating the 
safety of the Nation's consumer products. Most importantly, 
this title authorizes significantly increased resources for 
fiscal years 2009 to 2011, providing for approximately 10 
percent real growth on top of increases intended to meet 
inflation and other increased costs. It also restores the 
agency to its full panel of five Commissioners at the end of 
fiscal year 2010. Other provisions enable the agency to inform 
the public immediately about unsafe products when health and 
safety so require, to provide better information to consumers 
about recalled products and the available remedies, and to 
exert more control to stop the importation of unsafe consumer 
products. The bill also mandates that the agency work with 
Congress to develop a comprehensive user-friendly database 
containing information on product-related deaths and serious 
injuries. In total, H.R. 4040 will provide new resources and 
tools to the CPSC to empower it to protect consumers more 
effectively in an increasingly more complex and global 
marketplace.

                  BACKGROUND AND NEED FOR LEGISLATION

    At the beginning of the 110th Congress in January 2007, the 
Chairman of the Subcommittee on Commerce, Trade, and Consumer 
Protection of the Committee on Energy and Commerce announced 
that the Subcommittee would concentrate its attention on the 
consumer product safety system in the United States and the 
record of the CPSC to perform its mission to ``protect the 
public against unreasonable risks associated with consumer 
products.'' A relatively new independent Federal agency, the 
CPSC was established by legislation in 1972 and began 
operations a year later. The agency's responsibilities cover 
all consumer products in interstate commerce in the United 
States, excluding food, drugs, cosmetics, tobacco, firearms, 
alcohol, automobiles and other on-road vehicles, boats, tires, 
pesticides, and medical devices. The CPSC and commentators have 
for years referred to the agency's responsibility as covering 
more than ``15,000 different product categories,'' but given 
technological advances, the growth in demand for consumer 
products, and the increasing diversification and globalization 
of the market, that number probably is now significantly 
understated.
    The record from the first consumer product safety hearing 
held by the Subcommittee on May 6, 2007, amply demonstrates 
that the CPSC for many years has lacked the necessary resources 
or authority to protect Americans adequately--much less 
robustly--from unsafe consumer products. Starting in the 1980s, 
the agency's resources have been steadily eroded. Staffing 
levels at the agency dropped from a high number of almost 1,000 
employees in the early 1980s to fewer than 400 employees today. 
In addition, starting in 1986 and continuing to the present, an 
appropriations rider has limited CPSC funding to only three 
Commissioners, instead of the five Commissioners provided for 
under section 4(a) of the Consumer Product Safety Act, thereby 
depriving the agency of diversity in its leadership and 
decision making and diminishing its stature relative to other 
independent agencies. Even worse, the limit to three 
Commissioners has caused the CPSC to lack the necessary quorum 
to issue decisions or promulgate rules when any one Commission 
seat is vacant and is not filled within six months through the 
normal Presidential nomination and Senate confirmation process. 
The CPSC has not been reauthorized since 1990, nor has Congress 
undertaken any other systematic review of its performance and 
operating statutes in that time period.
    The Committee's attention to the safety of children's 
products accelerated after the numerous product recalls that 
occurred this past summer. From June to September of 2007, the 
CPSC recalled more than four million children's toys and items 
of jewelry due to excessive lead. Lead is a known neurotoxin 
that can enter a child's system in a number of ways--children 
touch and handle toys with lead paint and then put their hands 
in their mouths, or they mouth or chew on toys and small 
objects, and even swallow them. Public health and other 
officials for years have warned about the devastating effect of 
lead on children's brains. Because of the cumulative effect of 
lead on the developing nervous system, exposure over time can 
lead to attention problems, learning disabilities, mental 
retardation, antisocial and delinquent behavior, and lower 
intellectual ability, measured as loss in IQ points.
    Two of the toy recalls that gained the most media attention 
were for Thomas the Tank Engine, a wooden train set modeled 
after the character in a popular children's TV show, and for 
several toys made by Mattel, Inc., the nation's largest toy 
manufacturer, including a ``Sarge'' car, Barbie doll 
accessories, and Dora the Explorer characters. The lead-paint-
toy recalls in turn focused attention on more than 50 recalls 
over the past several years involving more than 170 million 
items of children's jewelry manufactured with excessive, even 
dangerous, levels of lead. In the worst case, a four-year-old 
child from Minnesota swallowed a charm given away as a premium 
with adult athletic shoes and died three days later from acute 
lead poisoning. The charm removed from his digestive system was 
found to contain 99 percent lead.
    The overwhelming majority of children's products, both toys 
and jewelry, recalled for excessive lead in the past few years 
were imported from China. In 2006, 86 percent of all toys sold 
in the United States were made in China. Excessive lead in 
these products has raised questions about quality control 
practices and the integrity of the manufacturing process for 
consumer goods outsourced by U.S. companies. Questions also 
have been raised about how to comply with and enforce U.S. 
standards when goods are manufactured in a developing nation 
that does not have the same culture of compliance found in the 
United States. To get answers to these questions, Subcommittee 
Chairman Rush and Ranking Member Cliff Stearns wrote letters in 
August 2007 to 19 manufacturers or importers of recalled lead-
tainted toys and jewelry. In September, they pursued their 
questions further in follow-up letters to four of these 
companies that had provided less than complete answers.
    The failure of manufacturers to comply with safety 
standards on lead is an especially difficult problem for 
parents, because there is no way to look at a toy and know that 
either the paint or the underlying metal content is limited to 
safe or lawful amounts of lead. Nor are signs of neurological 
damage to children from cumulative exposure to lead evident 
without medical testing.
    Moreover, efforts by the CPSC to protect consumers against 
excessive levels of lead in the content of children's products 
are complicated by the fact that there is no current Federal 
standard quantifying the permissible amount of lead content in 
a product. To protect children from lead in jewelry and other 
products, the CPSC must proceed under section 2(q)(1) of the 
Federal Hazardous Substance Act, 15 U.S.C. 1261(q)(1), to 
determine that a product is a ``banned hazardous substance'' if 
the lead is ``susceptible of access by a child to whom it is 
entrusted.'' Although CPSC staff in January 2005 published 
guidelines, ``Interim Enforcement Policy for Children's Metal 
Jewelry Containing Lead,'' stating that it will seek corrective 
action for any children's jewelry that tests above 600 parts 
per million (ppm), or .06 percent of total weight, these 
guidelines do not have the force of law. In contrast, there is 
a clear Federal standard limiting the amount of lead in paint 
to 600 ppm. 16 C.F.R. Sec. 1303.
    Lead was not the only problem with toys during last 
summer's recalls. Roughly half the toys recalled were for 
design defects: problems originating with the U.S. manufacturer 
or importer and not the foreign (overwhelmingly Chinese) 
companies that assembled or actually ``manufactured'' the toy. 
Design defects in children's toys or other products leading to 
recalls were for loose and powerful magnets, or for burn, 
laceration, choking, or strangulation hazards.
    To deal with the problem of unsafe toys and other products 
imported from China, the CPSC has been in direct contact with 
the Government of China over the past three years. In September 
2007, the CPSC signed a Joint Statement with the Chinese 
Administration of Quality, Supervision, Inspection, and 
Quarantine (ASQIQ) to improve the quality and safety of four 
categories of consumer products, including toys. In particular, 
the Joint Statement provides that ASQIQ proposes ``a 
comprehensive plan to eliminate the use of lead paint on 
Chinese manufactured toys exported to the United States.''
    Beyond these cooperative actions, the CPSC needs to take 
considerably more aggressive action if it is to protect 
American consumers and children from unsafe toys and other 
products in the marketplace, whether manufactured at home or 
abroad. Stakeholders agreed that the single most important 
thing Congress can do to improve consumer product safety is to 
provide the CPSC with the significantly greater level of 
resources that it needs to perform its mission. The CPSC must 
grow at a quick but workable pace that will allow it to hire 
and train staff with the necessary expertise to regulate 
product safety and enforce the law in a global marketplace with 
such an expansive array of products. In addition, the 
limitation to three Commissioners puts the agency in constant 
jeopardy of losing its quorum when just one Commissioner 
resigns and is not replaced within six months. Without a 
quorum, the CPSC cannot promulgate rules or bring mandatory 
recall actions.
    Testimony also indicated that the CPSC needs enhanced 
authority and more streamlined processes. The agency needs to 
have clearer authority to warn the public about unsafe products 
quickly, and when public safety from dangerous products hangs 
in the balance. The CPSC needs more power to negotiate and 
order appropriate remedies after unsafe or defective products 
have been recalled and then to notify the public effectively 
about the scope of a recall and the available remedies. The 
CPSC also needs better enforcement tools, including the power 
to impose higher penalties, so that the penalty for 
manufacturing or selling an unsafe product will act as a real 
deterrent to wrongdoing and not be simply dismissed as a cost 
of doing business. The agency must be able to promulgate 
regulations more quickly, and it must not be required to engage 
in three-part rulemaking in all instances, even when the 
proposed rule is merely technical in nature. Finally, 
consistent with obligations under various international trade 
agreements, the CPSC must have more authority to deal with 
unsafe consumer products manufactured and imported from abroad.
    To address these important concerns, the Committee has 
crafted this comprehensive and carefully balanced legislation, 
and made reporting it unanimously to the House a high priority.

                                HEARINGS

    The Subcommittee on Commerce, Trade, and Consumer 
Protection held a hearing on Tuesday, May 15, 2007, entitled 
``Protecting Our Children: Current Issues in Consumer Product 
Safety.'' The hearing examined the performance of the CPSC in 
safeguarding consumers, particularly children, from hazardous 
products. Testimony was received from the Honorable Nancy A. 
Nord, Acting CPSC Chairman; Mr. Alan Korn, Public Policy 
Director and General Counsel, Safe Kids Worldwide; Ms. Rachel 
Weintraub, Director of Product Safety and Senior Counsel, 
Consumer Federation of America; Mr. Frederick Locker, General 
Counsel, Toy Industry Association; Ms. Marla Felcher, Adjunct 
Lecturer, Kennedy School of Government, Harvard University; Mr. 
James A. Thomas, President, ASTM International; and Ms. Nancy 
A. Cowles, Executive Director, Kids in Danger.
    The Subcommittee also held a legislative hearing on 
Wednesday, June 6, 2007, entitled ``Legislation to Improve 
Consumer Product Safety for Children: H.R. 2474, H.R. 1699, 
H.R. 814, and H.R. 1721.'' Testimony was received from Mr. 
Edmund Mierzwinski, Consumer Program Director, United States 
Public Interest Research Group, and Ms. Sally Greenberg, Senior 
Product Safety Counsel, Consumers Union.
    On Wednesday September 19, 2007, and Thursday September 20, 
2007 the Subcommittee held a hearing entitled ``Protecting 
Children from Lead-Tainted Imports.'' Testimony was received on 
September 19th from the Honorable Nancy A. Nord, Acting CPSC 
Chairman; the Honorable Thomas H. Moore, CPSC Commissioner; and 
Robert A. Eckert, Chairman and CEO, Mattel Inc. Testimony was 
received on September 20th from Dr. Dana Best, M.D., M.P.H., 
F.A.A.P., American Academy of Pediatrics; Ms. Olivia D. Farrow, 
Esq., R.S., Assistant Commissioner, Division of Environmental 
Health, Baltimore City Health Department; Mr. Michael Green, 
Executive Director, Center for Environmental Health; Ms. Lori 
Wallach, Director, Global Trade Watch; Ms. Mary Teagarden, 
Professor of Global Strategy, Thunderbird School of Global 
Management; Mr. Carter Keithley, President, Toy Industry 
Association, Inc.; Mr. Allen Thompson, Vice President, Global 
Supply Chain Policy, Retail Industry Leaders Association; Mr. 
Michael Gale, Fashion Jewelry Trade Association; Mr. Gary E. 
Knell, CEO and President, Sesame Workshop; and Ms. Kathie 
Morgan, Vice President, Technical, Committee Operations, ATSM 
International.
    The Subcommittee held a legislative hearing on Tuesday, 
November 6, 2007 entitled ``Comprehensive Children's Product 
Safety and Consumer Product Safety Commission Reform 
Legislation.'' Testimony was received from the Honorable Nancy 
A. Nord, Acting CPSC Chairman; the Honorable Thomas H. Moore, 
CPSC Commissioner; Ms. Kathrin Belliveau, Director of Public 
Safety and Regulatory Affairs, Hasbro, Inc.; Dr. Dana Best, 
M.D., M.P.H., F.A.A.P., American Academy of Pediatrics; Mr. 
Lane Hallenbeck, Vice President, Accreditation Services, 
American National Standards Institute (ANSI); Mr. Alan Korn, 
Public Policy Director and General Counsel, Safe Kids 
Worldwide; Mr. Joseph McGuire, President, Association of Home 
Appliance Manufacturers; and Ms. Rachel Weintraub, Director of 
Product Safety and Senior Counsel, Consumer Federation of 
America.

                        COMMITTEE CONSIDERATION

    On Thursday, November 15, 2007, the Subcommittee on 
Commerce, Trade and Consumer Protection met in open markup 
session and favorably forwarded H.R. 4040, amended, to the full 
Committee for consideration, by a voice vote. On Thursday, 
December 13, 2007, the full Committee met in open markup 
session and considered H.R. 4040. The Committee reconvened on 
Tuesday, December 18, 2007, to continue consideration of H.R. 
4040. The Committee ordered H.R. 4040 favorably reported to the 
House, amended, by a recorded vote of 51-0.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. A 
motion by Mr. Dingell to order H.R. 4040 favorably reported to 
the House, amended, was agreed to by a recorded vote of 51 yeas 
and 0 nays. The following are the recorded votes taken on the 
motion and amendments thereto, including the names of those 
Members voting for and against.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

                      COMMITTEE OVERSIGHT FINDINGS

    Regarding clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the oversight findings of the 
Committee regarding H.R. 4040 are reflected in this report.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    The purposes of H.R. 4040 are to improve the safety of 
products designed and sold for children and to reform and 
modernize consumer product safety regulation in the United 
States.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    Regarding compliance with clause 3(c)(2) of rule XIII of 
the Rules of the House of Representatives, the Committee will 
adopt as its own the estimate of budget authority and revenues 
regarding H.R. 4040 prepared by the Director of the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974. The Committee finds that H.R. 
4040 would result in no new or increased entitlement authority 
or tax expenditures.

                  EARMARKS AND TAX AND TARIFF BENEFITS

    Regarding compliance with clause 9 of rule XXI of the Rules 
of the House of Representatives, H.R. 4040 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.

                        COMMITTEE COST ESTIMATE

    The Committee will adopt as its own the cost estimate on 
H.R. 4040 prepared by the Director of the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act 
of 1974.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    Regarding clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, a cost estimate on H.R. 4040 by the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not available when the 
Committee filed this report.

                       FEDERAL MANDATES STATEMENT

    The Committee will adopt as its own the estimate of Federal 
mandates regarding H.R. 4040 prepared by the Director of the 
Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
4040.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian Tribes, and in the provisions of 
Article I, section 8, clause 1, that relate to expending funds 
to provide for the general welfare of the United States.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation 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 of 1995.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title; table of content

    Section 1 states that the short title of this Act is the 
``Consumer Product Safety Modernization Act of 2007'' and also 
includes the table of contents.

Section 2. References

    Section 2 states that all references to the ``Commission'' 
mean the Consumer Product Safety Commission (CPSC) and that all 
references to ``Act'' mean the Consumer Product Safety Act.

Section 3. Authority to issue implementing regulations

    Section 3 provides general authority to the CPSC to 
promulgate regulations that may be necessary to implement the 
legislation.

                   Title I--Children's Product Safety


Section 101. Ban on children's products containing lead; lead paint 
        rule

    Section 101 establishes a Federal ban on lead in children's 
products beyond specified minute amounts. It establishes clear 
Federal standards, phased in over four years, on the amounts of 
lead content and lead paint that are permitted in children's 
products. Once these lead standards are fully implemented, they 
will be the most health protective standards in the world, more 
protective than those currently established under any State or 
local law or in the European Union. Thereafter, the legislation 
requires that the CPSC, through rulemaking, review these 
standards to determine whether they may feasibly be reduced 
further to ensure they are as protective of human health as 
possible. Thus, the Committee intends that the statutory 
standards established under this legislation serve as a minimum 
level of protection, and this Act provides the CPSC with 
ongoing responsibility and authority to review advances in 
science and technology to determine if such standards may be 
revised and reduced further.
    Section 101(a) addresses lead content in children's 
products. Paragraph (1) declares that, effective 180 days after 
enactment, any children's product containing more than the 
amount of lead set forth in paragraph (2) shall be a banned 
hazardous substance within the meaning of section 2(q)(1) of 
the Federal Hazardous Substances Act, 15 U.S.C. 1261(q)(1). 
Although section 2(q)(1) refers to hazardous substances 
``susceptible of access'' to children, the legislation makes 
children's products with lead levels greater than the standards 
set forth in paragraph (2) banned hazard substances regardless 
of accessibility.
    Paragraph (2) reduces the small amounts of lead permitted 
in children's products in stages. Lead standards are expressed 
as total lead content by weight, not as the amount of soluble 
lead. Within 180 days after enactment, the permitted amount is 
600 parts per million (ppm) total lead content by weight for 
any part of a product. Two years later, the permitted amount is 
reduced to 300 ppm, and 4 years later, the amount is reduced to 
100 ppm. The CPSC may, however, after a hearing make a 
determination as to whether the 100 ppm standard is feasible to 
achieve. If the CPSC determines that 100 ppm is not feasible, 
it must set the standard at the lowest level between 300 ppm 
and 100 ppm that is feasible to achieve.
    When assessing whether a standard is ``feasible,'' the 
Committee intends that CPSC focus on the scientific advances 
and the technical ability of manufacturers to achieve that 
standard. The CPSC also should focus on its own ability to 
detect violations of the standard and to enforce it. Increased 
cost of manufacturing is not a sufficient consideration to 
render a standard infeasible. The Committee assumes that the 
cost to produce children's products to meet these reduced lead 
standards will increase but believes that the greater cost is 
necessary to protect the health of children, which is the 
primary focus of this section and this title.
    Paragraph (3) expressly requires the CPSC to review the 100 
ppm standard as it applies to any class of children's products 
to determine if it is feasible to set it at a lower level that 
is more protective of human health. The CPSC may at any time 
require that any class of children's products be manufactured 
with even lower levels of lead--including 0 ppm--and establish 
an appropriate standard. The Committee expects the CPSC to 
consider the different materials and products made for 
children, as well the way children interact with these 
materials and products, and to work with industry and the 
public to reduce the amount of lead in various children's 
products to the greatest extent possible.
    Paragraph (3) further mandates that the CPSC conduct 
periodic reviews of scientific and technical information on an 
ongoing basis to determine if it is feasible to reduce whatever 
lead standard applies at the time. The Committee intends that 
the CPSC conduct such reviews every several years.
    Paragraph (4) authorizes the CPSC, in very narrow 
circumstances, to exclude, by rule, certain materials and 
products from the total lead weight limits. The lead content in 
these materials must be in a form that will not result in 
absorption of any lead whatsoever into the human body or have 
any adverse effect on public health or safety. The Committee 
understands that one such material may be lead crystal because 
of its molecular structure, but the CPSC must make that 
determination by rule. The CPSC also would have to determine if 
other materials meet this strict standard, including for 
example, certain gemstones. Paragraph (4) does not, however, 
authorize the CPSC to exclude children's metal jewelry items 
that exceed total lead weight standards but have been 
electroplated. The Committee believes that electroplating is 
capable of being breached through normal use and abuse, which 
would allow lead to leach out and be absorbed by the human body 
if ingested. Accordingly, items of children's jewelry must meet 
the lead standards set forth in paragraph (2) or otherwise are 
banned hazardous substances.
    Paragraph (5) defines ``children's products'' as used in 
this Act. It includes all consumer products as defined in 
section 3(a)(1) of the Consumer Product Safety Act designed or 
intended primarily for children 12 years of age or younger. By 
``primarily intended'', the Committee wishes to exclude common 
household products that may be used by children but are not 
intended primarily for children and would not reasonably be 
considered children's products. Examples would include door 
knobs, metal bed posts on full-size beds, and metal clothes 
hangers. Paragraph (5) lists specific factors to be considered 
when determining whether a product is primarily intended for 
the age group, including the manufacturer's statement of 
intended use, marketing and packaging of the product, and which 
products consumers would commonly recognize as intended for 
children in that age group. Manufacturers also are directed to 
consult the Age Determination Guidelines issued by CPSC staff 
in 2002.
    Paragraph (6) sets forth an exception to the lead standards 
in paragraph (2) for inaccessible component parts that are 
contained in sealed coverings and casings, and thus will not be 
exposed or accessible to children through normal use and abuse. 
The CPSC may determine which such component parts may be 
excepted from the lead limits. This exception is intended 
primarily for sealed electronic devices. It is not intended to 
apply to items of children's jewelry that have been 
electroplated, as electroplating is not the sealed covering or 
casing that this paragraph contemplates. As stated, it is the 
Committee's view that electroplating can be breached by normal 
use and abuse. The Committee expects the Commission to develop 
a rigorous standard that will ensure that any product granted 
an exception has no meaningful ability to expose a child to 
lead in such a way that could raise blood lead level.
    Finally, nothing in section 101 or this legislation is 
intended to interfere with the ability of any State to require 
warnings about a risk of illness or injury associated with lead 
in a children's product. The Committee recognizes that some 
States currently impose such warning requirements and does not 
intend to preempt those requirements in any way.
    Subsection (b) applies to lead paint on children's 
products. Not later than 180 days after enactment, the CPSC 
must modify the existing regulations on lead paint at 16 C.F.R. 
1303.1, reducing the standard from ``0.06 percent'' to ``0.009 
percent'' of total lead content by weight. Stated in equivalent 
terms to the lead content standard in section 101(a)(2), this 
translates to a reduction from 600 ppm to 90 ppm.
    Paragraph (1)(C) directs the CPSC also to set the lead 
paint standard at .0009 milligrams per centimeter squared, an 
alternative measurement expressed as the amount of lead mass in 
a given surface area. This alternative measurement permits 
testing of paint on children's products with x-ray fluorescence 
spectroscopy (XRF) technology, which is both quick and 
portable. XRF technology can be used outside laboratories 
onsite at ports or in stores to test the level of lead in 
paint. XRF technology can greatly aid the CPSC's efforts to 
inspect and enforce the paint levels on a vast array of toys 
and other children's products.
    Paragraph (2) directs that the CPSC must review the 
standard in paragraph (1)(C) not later than three years after 
enactment to determine whether it is feasible to revise it to 
make it more protective. The Committee is aware that XRF 
technology is advancing and wants to ensure that it can and 
will be used to detect even lower levels of lead as soon as it 
is feasible to do so.
    Subsection (c) gives the CPSC authority to extend, by rule, 
the implementation period for the new lead standards in both 
subsections (a) and (b) for an additional 180 days. To grant an 
extension, the CPSC must determine that there would be no 
impact on public health and safety, and also that 
implementation within 180 days would not be feasible, would be 
excessively costly, or that the agency would require additional 
time to implement standards and acquire the technology 
necessary to test and to enforce the new standards.
    This provision provides a mechanism for the CPSC, by rule, 
to grant limited exceptions for items that may, due to 
extenuating circumstances, be unable to reach the lead standard 
by the stated deadline. The Commission must determine that 
there will be no affect on health or safety from extending the 
implantation period. The Committee does not intend for CPSC to 
be able to establish blanket extensions for broad categories of 
products or for all products made by a manufacturer. This 
section is intended only to provide a modest time extension for 
manufacturers encountering unexpected challenges by the 
technical or technological issues for complying with the lead 
standard. The Committee expects that manufacturers will apply 
for waivers on a product-by-product or class-by-class basis, 
and that CPSC will evaluate each application individually to 
ensure that any extension will have no health or safety impact.

Section 102. Mandatory third-party testing for certain children's 
        products

    Section 102 amends section 14 of the Consumer Product 
Safety Act to establish requirements for third-party testing 
and certification of certain children's products.
    Subsection (a) establishes a new subsection under section 
14 to require that within a year of enactment, every 
manufacturer of a children's product subject to a rule or a 
safety standard under any of the acts enforced by the CPSC must 
have the product tested and certify that it conforms to the 
rule or standard. The testing requirement applies only to 
mandatory standards or rules. It does not apply to voluntary 
standards. Testing must be performed by either qualified 
independent third-party laboratories or certain proprietary 
laboratories that have been certified by the CPSC.
    Subsection (b) defines ``children's product'' and 
``independent third party'' as used in this section. The 
meaning of ``children's product'' is identical to the meaning 
in section 101 for determining the application of that 
section's lead limits. The term ``independent third party'' 
means a testing entity that is not owned, managed, directed, or 
controlled by the manufacturer of the product. Further, the 
independent testing facility must be accredited through a 
process established or recognized by the CPSC. The definition 
recognizes the certifying organization that currently certifies 
art material products, as required under the Federal Hazardous 
Substances Act.
    Subsection (c) amends section 14 to set forth the process 
and standards for certifying proprietary laboratories to permit 
them to perform the mandatory testing and certification 
required under this section. The CPSC, or an organization to 
which the CPSC has delegated such authority, may certify such a 
laboratory to test and certify children's products under 
certain conditions. One condition is that certification of the 
proprietary laboratory must provide equal or greater consumer 
safety protection. It is critical that the laboratory also must 
have established procedures to protect the integrity of test 
results and for confidential reporting of any undue influence, 
which might jeopardize the integrity of test results. The CPSC, 
or an organization to which the CPSC has delegated such 
authority, may decertify a proprietary laboratory if it finds, 
after an investigation, that a manufacturer or private labeler 
has exerted any undue influence on the laboratory or test 
results. The Committee intends that the CPSC and any designated 
organization should be vigilant in its oversight of proprietary 
laboratories and ensure that the laboratories and all personnel 
strictly adhere to the highest ethical standards. When the CPSC 
finds violations, the Committee expects the CPSC to investigate 
and decertify the proprietary laboratory.
    Subsection (d) makes technical changes to ensure that all 
rules and standards enforced by the CPSC under any of the acts 
the agency enforces are covered by the testing requirement.

Section 103. Tracking labels for children's products

    Section 103 amends section 14(a) of the Consumer Product 
Safety Act to require manufacturers to place distinguishing 
marks, to the extent feasible, on both children's products and 
their packaging that specify the location and date of 
production of such products. In several instances of children's 
product recalls during the summer of 2007, the Committee 
determined that certain manufacturers could not quickly 
ascertain the locations at which recalled products were 
manufactured. The Committee intends that section 103 will 
impose more stringent standards of responsibility upon 
manufacturers concerning their production processes and thereby 
aid in determining the origin of the product and the cause of 
the recall.
    In determining the feasibility of placing distinguishing 
marks on products--as opposed to their packaging--the Committee 
expects that manufacturers will give primary consideration to 
the product's size. For example, the Committee would require a 
tracking label on the container for children's building blocks, 
but not on the building blocks themselves. Similarly, for a 
board game, the manufacturer should put labels on the box and 
the board, but usually not on all the small pieces or cards 
that are part of the game. In contrast, the Committee expects 
that a manufacturer would place a tracking label on both the 
packaging for a crib and the crib itself.

Section 104. Standards and consumer registration of durable nursery 
        products

    Section 104 establishes safety standards and registration 
requirements for 12 defined ``durable infant or toddler 
products,'' such as cribs, high chairs, and strollers--products 
that parents buy specifically to protect and care for infants 
and toddlers.
    Subsection (a) states that this section of the Act may be 
cited as the ``Danny Keysar Child Product Safety Notification 
Act'' to commemorate a 16-month-old child who died after 
becoming entrapped in a portable crib that had been recalled 
several years earlier for a safety hazard.
    Subsection (b) requires the CPSC to assess the 
effectiveness of existing voluntary safety standards that cover 
these products, which are defined and specified in subsection 
(d), and then to promulgate mandatory product safety standards 
for these products that are substantially the same or more 
stringent than the voluntary standards. In making this 
assessment, the CPSC is directed to consult with 
representatives of consumer groups, juvenile product 
manufacturers, and independent child product engineers.
    Paragraph (2) sets forth the timetable for conducting the 
rulemaking. The CPSC must begin the rulemaking within one year 
of the date of enactment. Thereafter, it must complete the 
rulemaking and promulgate a mandatory safety standard for at 
least 2 of the 12 products every 6 months. The Committee leaves 
to the CPSC's discretion the priority for promulgating the 12 
mandatory standards. Once these rulemakings are completed, the 
CPSC must review them periodically to ensure that they provide 
the highest levels of safety feasible for these products.
    Subsection (c) requires that within one year of enactment, 
the CPSC must promulgate a consumer product safety rule 
pursuant to section 16(b) of the Consumer Product Safety Act 
(15 U.S.C. 2065(b)) on recordkeeping requirements to enhance 
the effectiveness of recalls. The rule promulgated by the CPSC 
must require manufacturers of durable infant or toddler 
products to:
          
 Provide a postage-paid registration form 
        with each product;
          
 Maintain a record of the names, addresses, 
        e-mail addresses, and other contact information for the 
        consumers who register their ownership of the products; 
        and
          
 Place permanently on each product the 
        manufacturer name and contact information, model name 
        and number, and the date of manufacture.
    Subparagraph (2) provides that the card must include the 
manufacturer's name, the model name and number of the product, 
and space for the consumer to provide name, mailing address, 
telephone number, and e-mail address. The space provided for 
recording this information must be sufficiently large to permit 
easy, legible writing. The card also must provide an option for 
consumers to register through the Internet. The cards must be 
attached to the product in an obvious place and include a 
statement of the purpose (e.g., to aid in recalls) to encourage 
consumers to complete the registration process. Finally, the 
cards must include a statement that the information that the 
consumer provides will not be used for any other purpose except 
to facilitate a recall or safety alert involving the specific 
product.
    Subparagraph (3) requires manufacturers to maintain, for a 
period of six years after the date of manufacture of a product, 
a record of all information provided by registrants of that 
product, and to use the information to notify registrants in 
the event of a voluntary or mandatory recall or a safety alert. 
Maintaining an ongoing business relationship with consumers 
through marketing and other uses of information has shown to be 
an effective way to keep up-to-date contact information. 
Manufacturers may not, however, use the information provided on 
registration cards--or disseminate it to any other party--for 
any other purpose than to alert consumers to recalls and 
product alerts.
    Subparagraph (4) requires the CPSC, no later than four 
years after the date of enactment of this legislation, to 
conduct a study on the effectiveness of the registration cards 
and whether such registration forms should be required for 
other children's products to report its findings to Congress.
    Paragraph (d) sets forth the definition of ``durable infant 
or toddler product''. This term means a durable product 
intended for use by, or reasonably expected to be used by, 
children under the age of five years. The definition 
specifically applies to 12 enumerated products:
          
 full-size or non-full-size cribs
          
 toddler beds
          
 high chairs, booster chairs, or hook-on 
        chairs
          
 bath seats
          
 gates and other enclosures for confining a 
        child
          
 play yards
          
 stationary activity centers
          
 infant carriers
          
 strollers
          
 walkers
          
 swings
          
 bassinets and cradles

Section 105. Labeling requirement for certain Internet and catalogue 
        advertising of toys and games

    Section 105 amends section 24 of the Federal Hazardous 
Substances Act to require manufacturers of specified children's 
products to include clear and conspicuous warnings about such 
products on or adjacent to advertisements in catalogues and on 
Internet sites that provide for a direct means for their sale. 
Further, the publication or distribution or any advertisement 
not in compliance with this requirement is a prohibited act 
under section 19 of the Consumer Product Safety Act.
    Within 180 days of enactment, the CPSC must, by rule, 
modify the size and placement requirements for cautionary 
statements in printed catalogues. When promulgating this rule, 
the Committee expects that the CPSC will take into account the 
relative sizes of the warnings and advertisements, 
respectively, and consider the possibility of permitting a 
general warning to be printed at the top of a catalogue's page, 
(as opposed to specific warnings adjacent to individual product 
advertisements). For example, if a catalogue page contains only 
advertisements for hazardous children's products (within the 
meaning of section 24 of the Federal Hazardous Substances Act), 
the CPSC may allow a single warning at the top of that page.
    Finally, under the rulemaking described above, the CPSC may 
also grant a grace period from the labeling requirement for 
catalogues printed prior to the effective date of this 
legislation. The Committee would consider an exemption period 
of one year prior to enactment the maximum reasonable limit for 
this period.

Section 106. Study of preventable injuries and deaths in minority 
        children related to consumer products

    Section 106 directs the Comptroller General to complete a 
study to assess disparities of preventable injuries and deaths 
among minority children related to consumer products intended 
for children's use. The Committee expects that the Comptroller 
General will make use of whatever data has been collected 
already by the CPSC on this matter. Moreover, section 106 
directs that this study begin within 90 days of enactment and 
submitted to this Committee and the Senate Committee on 
Commerce, Science, and Transportation not later than one year 
after enactment. The Committee expects that this report will 
include recommendations for public outreach, awareness, and 
prevention campaigns directed specifically at minority 
populations, as well as make recommendations for education 
initiatives that may reduce disparities in injury rates.

Section 107. Review of generally-applicable standards for toys

    Children's toys must be as safe as possible. Section 107(a) 
directs the CPSC to examine the effectiveness of the current 
voluntary standard--ASTM-International standard F963-07--that 
governs a wide range of hazards, including strangulation, 
burns, and choking, that could be presented by toys. The CPSC 
must determine the scope, adherence to, and adequacy of the 
voluntary standard in protecting children from safety 
standards.
    Subsection (b) provides for a special focus on that 
standard as it relates to magnets included in toys, and a 
determination of whether that standard is effective to prevent 
intestinal blockages and perforation hazards cause by ingestion 
of magnets that are parts of toys. The Committee notes that 
toys with powerful magnets have caused serious injuries to 
several children over the past few years and even caused the 
death of one child. Since these incidents, the industry has 
adopted a voluntary standard covering magnets in toys. If the 
CPSC determines that there is substantial noncompliance with 
the voluntary standard on magnets, it must expedite a 
rulemaking to consider the adoption of a mandatory standard 
covering the related hazards.
    Finally, subsection (c) requires the CPSC within two years 
after enactment to report to Congress on the results of the 
agency's assessment of compliance with, and the effectiveness 
of, the voluntary standard covering all toy hazards, and the 
feasibility of requiring manufacturers to pre-test and certify 
toys to it or more stringent standards.

          Title II--Consumer Product Safety Commission Reform


Section 201. Reauthorization of the Commission

    Section 201 reauthorizes the CPSC for fiscal years 2009 
through 2011. Subsection (a) amends section 32(a) of the 
Consumer Product Safety Act to authorize appropriations for the 
CPSC in the amounts of $80 million, $90 million, and $100 
million for fiscal years 2009, 2010, and 2011, respectively. 
Similarly, it amends section 32(b) to authorize $20 million to 
the CPSC for fiscal years 2009 through 2011 for making 
necessary capital improvements to the CPSC's research, 
development, and testing facility.
    These authorization levels are designed to allow the CPSC 
to grow quickly but prudently and hire new staff both to meet 
its new responsibilities under this legislation and generally 
to perform the mission of the agency. To attract talented and 
experienced personnel, the Committee encourages the CPSC, as 
appropriate, to take advantage of available Federal employment 
authorities under Title 5, such as recruitment and retention 
bonuses and relocation costs.
    Subsection (b) requires the CPSC to submit a report to 
Congress within 180 days of enactment concerning its plans to 
allocate the funding authorized by section 201(a). The report 
must address specifically:
          
 the number of full-time inspectors and other 
        ``full time equivalents'' that the CPSC intends to 
        employ;
          
 the CPSC's plan for risk assessment and 
        inspection of imported consumer products;
          
 an assessment of the feasibility of 
        mandating bonds for serious hazards and repeat 
        offenders, as well as CPSC inspection and certification 
        of foreign third-party and proprietary testing 
        facilities; and
          
 the efforts of the Commission to reach and 
        educate second-hand retailers and informal sellers 
        about consumer product safety standards and product 
        recalls, especially those relating to durable nursery 
        products, such as cribs and strollers.
    The Committee intends to use this report as the basis for 
oversight hearings in the future, which, among other issues, 
will examine how best to improve the CPSC's regulatory 
authority over imported consumer products.

Section 202. Structure and quorum

    Section 202(a) extends the CPSC's temporary quorum and 
permits two members of the Commission to constitute a quorum, 
provided they are not from the same political party. If the 
President nominates a Commissioner prior to August 3, 2008, the 
temporary quorum will continue through that date. If the 
President nominates a Commissioner after August 3, 2008, the 
temporary quorum would extend for an additional three months 
after the date of the nomination (giving the Senate time to 
act), or until February 3, 2009, whichever is earlier.
    Subsection (b) repeals the first proviso in the account 
under the heading ``Consumer Product Safety Commission, 
Salaries and Expenses'' in title III of Public Law 102-389, 
effective after fiscal year 2010. This provision thereby 
repeals the three-Commissioner restriction under which the CPSC 
has been operating since the 1980s.

Section 203. Submission of copy of certain documents to Congress

    Section 203 requires the CPSC to comply with requirements 
under section 27(k) of the Consumer Product Safety Act and 
provide to Congress all of its budget submissions. It also 
directs the agency to submit to this Committee budget 
recommendations, legislative recommendations, testimony, and 
comments on legislation submitted by the Commission to the 
President or the Office of Management and Budget.
    Subsection (b) amends section 3003(d) of Public Law 104-66 
to reinstate the section 27(k) of the Consumer Product Safety 
Act, which had ceased to be effective in 1999 with respect to 
providing such materials to Congress.

Section 204. Expedited rulemaking

    Section 204 grants the Commission the discretion to 
promulgate rules through a two-step process. Currently, the 
Commission must employ a three-step rulemaking process in all 
instances. This flexibility allows the Commission to expedite 
the promulgation of rules to enforce more efficiently the 
statutes under its jurisdiction. Subsection (a) covers the 
Consumer Product Safety Act, subsection (b) covers the Federal 
hazardous Substances Act, and subsection (c) covers the 
Flammable Fabrics Act.
    The Committee expects that the CPSC will use its discretion 
to continue to employ three-part rulemaking and begin the 
process with an Advanced Notice of Proposed Rulemaking when it 
is dealing with complex or novel issues. The Committee expects, 
however, that the CPSC will make use of two-part rulemaking 
when dealing with technical or relatively straightforward 
matters.

Section 205. Public disclosure of information

    Section 205 of the bill amends section 6(b) of the Consumer 
Product Safety Act, which governs how the Commission discloses 
information about consumer products to the public. The general 
purpose of Section 6(b) is to ensure the accuracy and fairness 
of this information through a consultation process with the 
affected company.
    Section 205 amends section 6(b)(1) by shortening the time 
from 30 to 15 days by which a manufacturer or private labeler 
must respond to the Commission's notification that information 
about the company's product will be released to the public. 
This original 30-day notice and comment period was established 
in the early 1970s, well before the advent of modern 
telecommunications and electronic mail. The shortened timeframe 
ensures that the CPSC may disclose relevant information to the 
public more quickly. Moreover, section 205 further amends 
section 6(b)(1) to allow the Commission, in the case of a 
public health or safety hazard posed by a product, to simply 
publish its finding (presumably on the Commission's Web site) 
before disclosing the relevant information to the public. 
Currently, section 6(b)(1) requires the Commission to publish 
its finding in the Federal Register, which can needlessly delay 
the process for as long as five additional days.
    When publicly disclosing information furnished to the 
Commission under section 15(b) of the CPSA, which requires 
manufacturers, distributors, and retailers to inform the 
Commission of defective products that violate safety rules or 
otherwise pose a serious risk to the public, the Commission is 
governed by the cumbersome requirements of section 6(b)(5). 
Section 205 amends section 6(b)(5) by adding a ``public health 
and safety'' exception that permits immediate disclosure of 
information to the public. This new provision greatly enhances 
the Commission's ability to protect the public by granting the 
agency authority to overcome statutory obstacles that have 
hampered past efforts to inform the public about hazardous 
products. It is important to note that section 6(b)(3) of CPSA, 
which allows the affected company to seek an injunction against 
the release of information in Federal court, does not apply to 
section 6(b)(5) and the new health and safety exception.
    The Committee expects the CPSC to use this new disclosure 
authority fully to protect the public from health and safety 
hazards. With regard to disclosure of information pursuant to 
formal requests under the Freedom of Information Act, the 
Committee expects the Commission to respond to these requests 
promptly, especially once it has hired sufficient staff with 
the additional funding authorized under this legislation. 
Section 6(b) of the CPSA should not pose insurmountable 
obstacles to timely disclosure of accurate information on 
commercial products to the public, and past delays are 
unacceptable. Section 205 reflects the Committee's concerns 
over these delays. The Committee expects the Commission to 
exercise this new disclosure authority and utilize these new 
resources in a manner that aggressively serves the well-being 
of consumers.

Section 206. Publicly available information on incidents involving 
        death or injury

    Section 206 gives the CPSC 180 days after the date of 
enactment to devise a detailed plan, complete with an 
implementation schedule and recommendations for any necessary 
legislation, for providing consumers with a user-friendly 
database containing information on incidents involving death 
and serious injury caused by consumer products. The database 
would build on the current Injury Information Clearinghouse 
maintained by the CPSC pursuant to section 5(a) and could 
include additional information, such as consumer complaints, 
hospital and medical reports, and warranty information. The 
database must take into account the protection of personal 
information. The plan also must include provision for a public 
awareness campaign to educate consumers about the database.
    The intent of this Committee is to not only examine how to 
make the National Injury Information Clearinghouse database 
more useful and accessible to consumers, including the goal of 
providing information that specifies the manufacturer and model 
of product, but to consider how to expand existing data sources 
to improve consumer accessibility. The goal of the CPSC should 
be to devise a database that can rapidly provide consumers with 
`early warning' information about specific products that could 
pose serious safety hazards. Similar databases or resources 
already exist at the National Highway Traffic Safety 
Administration, the Food and Drug Administration and the 
Department of Transportation, and the Committee suggests that 
the Commission examine these and other Agency efforts, if 
applicable, when designing its own database.

Section 207. Prohibition on stockpiling under other Commission-enforced 
        statutes

    Section 207 amends section 9(g) of the CPSA to make it 
clear that companies are prohibited from stockpiling products 
that do not conform to new safety standards prior to their 
effective dates under all rules or standards promulgated under 
any of the statutes enforced by the Commission. The Committee 
believes that companies found to be in violation of this 
section (and thus, section 19 of the CPSA) should be penalized 
harshly, particularly given the possible extension of the 180-
day compliance period for lead standards for certain products, 
as provided under section 101(c) of this legislation.

Section 208. Notification of noncompliance with any Commission-enforced 
        statute

    Section 208 amends section 15(b) of the CPSA to add a 
sentence that limits the use of a report filed under section 
15(b)(2) as the basis for a criminal prosecution in certain, 
narrow circumstances. The report may not be used as the sole 
basis for criminal prosecution under section 5 of the Federal 
Hazardous Substances Act, except for offenses which require a 
showing of intent to defraud or mislead. This provision is 
intended to provide assurances that the report itself would not 
be used as the sole basis for criminal prosecution under the 
part of section 5 that provides for strict liability for 
criminal enforcement without regard to any requirement of 
knowledge, intent, or willfulness. That part of section 5(a) 
providing for strict criminal liability states that ``any 
person who violates one of the provisions of section 4 shall be 
guilty of a misdemeanor and shall on conviction thereof be 
subject to a fine of not more than $500 or to imprisonment for 
not more than ninety days, or both.'' The Committee's intent is 
to promote the timely, accurate, and complete disclosure of 
information that is necessary to protect public health and 
safety.

Section 209. Enhanced recall authority and corrective action plan

    Section 209 enhances the CPSC's authority in cases of 
mandatory recalls and also strengthens the agency's ability to 
tailor corrective action plans that meet consumer needs.
    Subsection (a) amends section 15(c) of the Consumer Product 
Safety Act to increase the number of required actions that the 
Commission may order a manufacturer, retailer, or distributor 
to take in the event of a mandatory recall. Should the 
Commission determine that a product presents a substantial 
product hazard (after a public hearing) or concurrently declare 
a product an imminently hazardous consumer product, notify the 
manufacturer, and file an action under section 12 of the 
Consumer Product Safety Act, section 209(a) of H.R. 4040 
permits the Commission to require one or more of the following 
actions of a manufacturer, retailer, or distributor in addition 
to those which already exist under section 15(c):
          
 cease distribution of the product;
          
 notify all persons that transport, store, 
        distribute, or otherwise handle the product, or to 
        which the product has been transported, sold, 
        distributed, or otherwise handled, to cease immediately 
        distribution of the product; and
          
 notify appropriate State and local public 
        health officials.
Furthermore, subsection (a) specifies that the Commission must 
rescind such an order if a district court determines that the 
product subject to the order is not an imminently hazardous 
consumer product. Lastly, the rescission of such a Commission 
order is not subject to a hearing under 5 U.S.C. 554.
    Subsection (b) amends Section 15(d) to require companies to 
submit a corrective action plan as promptly as practicable and 
subject the plan to the approval of the Commission. The 
Commission must evaluate the plan's appropriateness under the 
circumstances and, in turn, may order the company to amend the 
plan to render it more appropriate and effective. For example, 
a repair to a crib that immobilizes the drop-side feature would 
not be an appropriate remedy because it changes the crib's 
functionality. The Committee believes that these new provisions 
will ensure that repairs or other remedies offered after a 
recall meet the needs of consumers and continue to provide the 
functionality that consumers expected when initially purchasing 
a product. If the product cannot be repaired to maintain its 
original functionality, then the only appropriate remedy might 
be to offer refunds to consumers. Subsection (a) authorizes the 
Commission to revoke the approval of a corrective action plan 
altogether if the Commission determines that a manufacturer, 
distributor, or retailer is not complying with the terms of the 
plan.
    Subsection (c) further amends Section 15 by adding a new 
subsection (i) requiring the CPSC by rule to set guidelines on 
a uniform class of information in mandatory recall notices 
under subsection (c) or (d) or under section 12 of the CPSA. 
The guidelines should include information helpful to consumers 
in identifying the specific product, understanding the hazard, 
and understanding the available remedy. The Committee expects 
that similar information will be provided, as applicable and to 
the greatest extent possible, in the notices issued in 
voluntary recalls.

Section 210. Website notice, notice to third party internet sellers, 
        and radio and television notice

    Section 210 amends section 15(c)(1) of the Consumer Product 
Safety Act to authorize the CPSC to require a company to 
provide notices of recalled products on Web sites and, when 
appropriate, to issue public announcements of such recalls on 
radio and television. Moreover, the CPSC may require the 
company to make such announcements in languages other than 
English if the agency determines that such an accommodation is 
necessary, given the targeted population. The Committee 
recognizes that underserved communities often have large 
immigrant populations that may not have access to the Internet. 
Such communities often receive information primarily from radio 
and television. Consequently, if the CPSC determines that such 
vulnerable populations are particularly at risk from a recalled 
product, the agency may order announcements over the public 
airwaves or other relevant media platforms to promote awareness 
and safety.

Section 211. Inspection of certain proprietary laboratories

    Section 211 amends section 16(a)(1) of the Consumer Product 
Safety Act to authorize the CPSC personnel to enter and inspect 
any proprietary laboratories certified under section 14(e) of 
the Consumer Product Safety Act. The Committee makes clear that 
the Commission has the same right to inspect proprietary 
laboratories that it has to inspect factories, warehouses, or 
other establishments in order to implement and enforce statutes 
under its jurisdiction.

Section 212. Identification of manufacturer, importers, retailers, and 
        distributors

    Section 212(a) amends section 16 of the Consumer Product 
Safety Act by adding subsection (c), which requires, upon the 
request of the Commission, every importer, retailer, or 
distributor of a consumer product or component thereof (over 
which the Commission has jurisdiction) to provide identifying 
information (including, but not limited to, the name and 
address) for the manufacturer of that product or component, to 
the extent that such information is available.
    Subsection (a) further amends section 16 of the Consumer 
Product Safety Act to require, upon the request of the 
Commission, every manufacturer of the products and components 
listed above to supply identifying information (including, but 
not limited to, the name and address) for each retailer or 
distributor to which the manufacturer supplied the product or 
applicable component thereof, each subcontractor involved in 
the production of such products and their components, as well 
as each subcontractor from which the manufacturer obtained 
components for an applicable consumer product. It is the intent 
of the Committee that the Commission will have the authority to 
request the information in sections 212(a) and 212(b) in order 
that it may investigate more thoroughly the source or sources 
of consumer product recalls.
    Subsection (b) amends section 17(g) of the Consumer Product 
Safety Act by requiring the Commission, by rule, to condition 
the importation of a consumer product on CPSC's recordkeeping 
and inspection requirements under the Act. Section 212(b) also 
amends section 17(h)(2) to require the Commission to share 
information, data, violator lists, test results, and other 
support guidance and documents with Federal agencies with which 
it cooperates under the auspices of the permanent product 
surveillance program mandated under section 17(h)(1). Section 
212(b) further amends section 17(h)(2) of the Consumer Product 
Safety Act to condition the sharing of this information upon 
the confidentiality requirements described in section 6 of the 
Act.
    The Committee expects that the Commission will use the 
authority under this section to monitor imports of consumer 
products and control more effectively their entry into U.S. 
commerce. The Committee intends to hold oversight hearings on 
the Commission's activities to ensure that unsafe consumer 
products are detected at ports of entry and denied entry into 
the United States. Lastly, the Committee expects that the 
Commission will terminate its agreement under section 17(h)(1) 
of the Consumer Product Safety Act upon discovery that a 
cooperating Federal agency violates the confidentiality 
requirements under section 6 of the Act.

Section 213. Export of recalled and non-conforming products

    Section 213(a) amends section 18 of the Consumer Product 
Safety Act by adding subsection (c), which stipulates that a 
person may not export products that are not in conformity with 
U.S. consumer product safety rules, are subject to mandatory or 
voluntary recalls, are designated an imminent hazard to public 
health and safety, or are designated as a banned hazardous 
substance. A person may export such products in the event that 
the importing country notifies the Commission within 30 days 
that it will accept the products. Thereafter, the Commission 
has the authority to take such action as is appropriate for the 
disposition of the product.
    Subsection (b) amends section 19(a)(10) of the Consumer 
Product Safety Act to make a violation of section 18(c) of the 
Act a prohibited act. A knowing violation of this prohibition 
would subject a person to civil penalties.
    Subsection (c) makes conforming amendments to section 
5(b)(3) of the Federal Hazardous Substances Act and section 15 
of the Flammable Fabrics Act in order to harmonize them with 
the export prohibition placed on certain products in section 
213(a) of H.R. 4040.
    The Committee intends that this section will curb export of 
consumer products that violate U.S. law and expects the 
Commission to exercise rigorous oversight in this area, 
particularly as relates to the enforcement of penalties for 
prohibited acts.

Section 214. Prohibition on sale of recalled products

    Section 214 amends section 19(a) of the Consumer Product 
Safety Act to prohibit the sale, resale, manufacture, or 
importation of any consumer product that has been recalled, is 
a banned hazardous substance, or does not conform to safety 
standards. A knowing violation of this prohibition would 
subject a person to civil penalties.

Section 215. Increased civil penalty

    Section 215 increases the cap on civil penalties. 
Subsection (a) increases the cap from $1.825 million to $10 
million for violations of the Consumer Product Safety Act, the 
Flammable Fabrics Act, and the Federal Hazardous Substances 
Act. The increase is phased in over two years. Initially, the 
cap rises to $5 million as soon as CPSC issues interpretive 
guidance, or 360 days after enactment, whichever occurs first. 
The cap will then rise to $10 million 1 year after the first 
increase.
    Subsection (b) gives the CPSC more flexibility in 
determining the appropriate level of civil penalties that it 
levies on manufacturers, distributors, and retailers that 
violate the three statutes. Section 215(b) expands the factors 
that the Commission must consider beyond the five specific 
factors to which the CPSC is currently limited. Furthermore, 
these factors are not exclusive. For example, while the CPSC 
currently is not permitted to consider whether a violator is a 
recidivist or a first-time offender, the amendments made by 
this section will permit that important consideration in 
assessing a penalty. Subsection (b) requires the Commission to 
issue regulations providing its interpretation of these new, 
restated penalty factors within one year of enactment.

Section 216. Criminal penalties to include asset forfeiture

    Section 216 amends section 21 of the Consumer Product 
Safety Act to provide that criminal penalties for violations of 
any statute enforced by the Commission may include asset 
forfeitures.

Section 217. Enforcement by State attorneys general

    State attorneys general serve an important and useful role 
as an enforcer of consumer product safety laws. Section 217 
amends section 24 of the Consumer Product Safety Act to grant 
State attorneys general the same injunction authority under 
CPSA that they already have under the Federal Hazardous 
Substances Act and the Flammable Fabrics Act. A State attorney 
general may bring an action on behalf of the State's residents 
to enforce a consumer product safety rule or an order under 
section 15 of the CPSA. Section 217 requires the State attorney 
general to provide notice to the CPSC, the Attorney General of 
the United States, and the targeted defendant at least 30 days 
prior to the commencement of an action. Section 217, however, 
prohibits such State actions when a similar civil or criminal 
action has been commenced by the CPSC or U.S. Department of 
Justice. Section 217 provides that the courts may award the 
costs of the action, including reasonable attorney fees and 
expert witness fees.

Section 218. Effect of rules on preemption

    Section 218 prevents the CPSC from expanding, contracting, 
or otherwise modifying the scope or nature of the preemption 
provisions under any of the statutes enforced by the agency. 
This prohibition applies to any part of a rule or regulation 
(including preambles) promulgated by the Commission. This 
section addresses concerns that the CPSC in recent years has 
attempted to circumvent Federal and State adjudication and 
imply the preemption of State common law rights of action. 
Specifically, in February of 2006, the CPSC issued a rule on 
mattress flammability under the Flammable Fabrics Act (FFA). In 
the rule's preamble, the CPSC declared that FFA's preemption 
provisions affecting State ``standards and other regulations'' 
also affected all State ``legal requirements'' including common 
law standards. Not only did this advisory opinion depart from 
the plainly stated language of the statute, but it departed 
from the CPSC's accepted standard practice of simply listing 
the preemption provisions of the governing statute and leaving 
the interpretation of those provisions to the courts. As such, 
this preamble should not be afforded any deference by State or 
Federal courts.
    Tort actions based on negligence are predicated on 
procedures and standards developed over hundreds of years of 
American and English jurisprudence. The preemption provisions 
of the statutes under the jurisdiction of the CPSC are clear, 
and State common law actions and standards are not preempted. 
The Committee does not believe it is proper for the CPSC to 
issue advisory opinions (in regulatory preambles or otherwise) 
that attempt to alter the scope of those provisions. Instead, 
the Committee believes that such matters are best left with the 
courts.

Section 219. Sharing of information with Federal, State, local, and 
        foreign government agencies

    Section 219 amends section 29 of the Consumer Product 
Safety Act to add a new subsection (f), which allows the CPSC, 
consistent with requirements under section 6, to share 
information obtained under the Act with other Federal, State, 
local, and foreign agencies. The CPSC must have memoranda of 
understanding or written certifications with these other 
agencies to ensure that such information will be kept 
confidential. The CPSC may share this information with other 
agencies if:
          
 the agency has legal authority to maintain 
        in confidence;
          
 the materials will be used in the 
        investigations or enforcement proceedings concerning 
        possible violations of laws that are substantially 
        similar to those enforced by the CPSC; laws actually 
        administered by the CPSC; other foreign criminal laws, 
        with the approval of the Attorney General for a foreign 
        law enforcement agency; and
          
 the foreign agency is not from a state that 
        has been determined to have provided repeated support 
        for acts of international terrorism, in accordance with 
        section 6(j) of the Export Administration Act of 1979.
    Significantly, section 29, as amended by Section 219, will 
allow the Commission to terminate agreements with other 
domestic and foreign agencies if those agencies have failed to 
keep shared information confidential or have used the 
information for purposes other than those set out in written 
agreements. It also provides that the CPSC will not be required 
under provisions of the Freedom of Information Act to disclose 
any material obtained from a foreign government agency if that 
agency has requested that the information be kept confidential 
or that the information reflects a consumer complaint submitted 
to a Commission reporting mechanism that is sponsored in part 
by foreign government agencies. The Commission, however, is not 
authorized to withhold information from Congress or prevent the 
Commission from complying with a U.S. court order in an action 
commenced by the United States or the Commission.
    Finally, section 219 requires that, in the event of 
voluntary recalls or a Commission order pursuant to section 
15(c) or (d) of the Consumer Product Safety Act, the Commission 
shall notify each State's health department or other agency 
designated by the State of the recall or order.
    The Committee expects that the CPSC will work closely in 
the future with State and local agencies to disseminate 
information concerning product recalls and enforcement actions. 
The Committee believes that cooperation with State and local 
agencies is an effective means for meeting the Commission's 
mission to protect the public health and safety. Moreover, and 
in light of the large international market for consumer 
products, the Committee believes that the CPSC would benefit 
from further cooperation with foreign government agencies, 
particularly those from the European Union and the People's 
Republic of China. The Committee expects that the CPSC will 
revisit and renegotiate, where necessary, existing memoranda of 
understanding with foreign governments and negotiate new 
agreements with other governments as necessary.

Section 220. Inspector General authority and accessibility

    Section 220(a) is aimed at strengthening and improving the 
resources available to the CPSC's Office of Inspector General 
to ensure effective oversight of the CPSC as the agency 
receives anticipated significant increases in funding, adds new 
staff, and takes on new responsibilities. To this end, the 
Committee intends to hold oversight hearings in the future 
concerning the CPSC's Office of the Inspector General--with the 
reports in section 220(a) and 220(b) as their basis--in order 
to determine the role and functionality of that office within 
the agency, as well as the additional authority or resources it 
may need to function more effectively. The Committee believes 
that effective oversight of waste, fraud, and abuse is critical 
to an agency's ability to carry out its statutorily mandated 
duties.
    Subsection (a) requires that the Commission's Office of the 
Inspector General, within 60 days of enactment, report to 
Congress concerning the office's activities, any structural 
barriers to its ability to complete its mission, and the 
additional authority or resources--if any--necessary to 
facilitate oversight.
    Subsection (b) directs the Commission's Office of the 
Inspector General to submit a report to Congress within one 
year of enactment about its reviews of both the employee 
complaint process and the way in which corrective action plans 
are negotiated.
    Finally, subsection (c) requires that the Commission's 
Office of the Inspector General establish within 30 days of 
enactment a link on the CPSC's Web site to facilitate the 
filing of anonymous complaints (from either inside or outside 
the agency) regarding any waste, fraud, or abuse involving CPSC 
activities.

Section 221. Repeal

    Section 221 repeals section 30(d), which requires the CPSC 
to take action under the other statutes it enforces (the 
Federal Hazardous Substances Act, the Flammable Fabrics Act, 
and the Poison Prevention Packaging Act) unless it finds by 
rule that it is in the public interest to proceed under the 
CPSA instead. Because many of the new provisions require the 
CPSC to act under the CPSA, the repeal of this section will 
ensure that such activity will not be delayed by the necessity 
of a threshold rulemaking.

Section 222. Industry-sponsored travel ban

    Section 222 amends the Consumer Product Safety Act by 
adding section 38, ``Prohibition on Industry-Sponsored 
Travel.'' Section 222 bars Commissioners and staff from 
accepting so-called gift travel. Specifically, this section 
prohibits Commissioners and staff from accepting payment or 
reimbursement for travel, subsistence, and related expenses 
with respect to attendance at meetings or events relating to 
their official duties from persons seeking official action 
from, doing business with, or conducting activities regulated 
by the Commission or whose interests may be substantially 
affected by a Commissioner or employee's performance (or 
nonperformance) of official duties.
    Section 222 also includes an authorization of $1.2 million 
for each of fiscal years 2009 through 2011 necessary for travel 
and lodging expenses necessary in furtherance of the official 
duties of Commissioners and employees.
    Given recent press reports concerning industry-funded 
travel of CPSC officials in the past, the Committee finds it 
prudent to apply this ban on privately-funded travel upon the 
Commission. But to ensure that Commissioners and employees have 
sufficient funds to pay for travel pertaining to or required 
for their duties, this section provides for a specific travel 
authorization that should be sufficient to meet appropriate 
travel needs.

Section 223. Annual reporting requirement

    Section 223 amends section 27(j) to require the CPSC to 
file an annual report on the number and summary of recall 
orders under section 12 and 15 and a summary of the voluntary 
recall actions, including an assessment of these orders and 
actions. These reports are intended to help Congress, 
stakeholders, and the CPSC itself to assess the effectiveness 
of recall activities.

Section 224. Study on the effectiveness of authority relating to 
        imported products

    Section 224 directs the Commission to submit to Congress 
within nine months of enactment a study on the effectiveness of 
section 17(a) of the Consumer Product Safety Act. This study 
must include the Commission's recommendations about additional 
authority it may need (and appropriate legislation to authorize 
it) to stop unsafe consumer products from entering the United 
States. This study will serve as background for future 
Committee hearings on import safety.

                             SPECIAL ISSUES

    This legislation contains no title relating to single-
product issues. The Committee believes that consumers are best 
served by keeping this bill focused on the daunting task of 
reforming the CPSC. Nevertheless, the Committee shares the 
concern that certain single products require tighter 
regulations and standards. Many of these issues were raised by 
Members of the Committee in colloquys or discussions of 
amendments that were offered and withdrawn.
    In that regard, the Committee is concerned that the current 
approach to all-terrain vehicle (ATV) safety is not working. In 
2003, the CPSC issued the latest in a long line of studies 
documenting the dramatic increase in ATV injuries and deaths. 
The American Academy of Pediatricians advises that the 
situation continues to worsen, particularly as to children. 
Adding to this problem is the growing volume of imports, most 
of which do not comply with key elements of the applicable 
ANSI/SVIA voluntary standard. The record indicates that no 
Chinese manufacturer has provided the CPSC with a voluntary 
undertaking or action plan committing to provide standardized 
CPSC-approved safety information or free training with 
incentives, or to monitor retailers for compliance with ATV 
age-related sales restrictions. This situation begs for 
enforcement of a mandatory standard. The Committee therefore 
directs the CPSC to proceed expeditiously to issue a final rule 
in its proceeding entitled ``Standards for All-Terrain Vehicles 
and Ban of Three-Wheeled All Terrain Vehicles.'' In developing 
the final rule, the CPSC shall give special attention to a 
categorization scheme that is most instructive to parents and 
guardians in making a safe purchase, and that addresses the 
ability of children of different ages to operate safely each 
category of ATV suitable for operation by children.
    The Committee also directs the CPSC to conduct a public 
awareness campaign to educate consumers about the importance of 
residential smoke alarms and improved smoke detector 
technology, including the difference between ionization type 
and photoelectric type alarms. The campaign shall include 
recommendations for effective use and maintenance of smoke 
alarms.
    The Committee also directs the CPSC to issue a final rule 
in its proceeding entitled ``Safety Standard for Cigarette 
Lighters'' for which the Commission issued an advance notice of 
proposed rulemaking on April 11, 2005 (70 Fed. Reg. 18339).
    The Committee believes that the CPSC, in the course of 
implementing the legislation's provisions related to lead, 
should take the necessary steps to examine whether the CPSC 
should issue a consumer product safety rule requiring any 
ceramic product, such as a plate, dish, bowl or other 
container, intended for use with food that contains any lead 
bear a warning label stating ``THIS PRODUCT MAY CONTAIN LEAD.''
    The Committee also directs the CPSC to examine its current 
authority with respect to toys intended for use by household 
pets, especially those that could become children's play 
things. If the CPSC determines that it has the appropriate 
authority to regulate such products, the Committee directs the 
CPSC to undertake a rulemaking regarding the use of lead and 
lead paint in household pet toys.
    The Committee also has been informed of tipping dangers 
presented by furniture, ovens and other large appliances, and 
television sets. In order to help stem these preventable 
accidents and injuries, the Committee directs the CPSC to look 
into these matters, and, where appropriate, to require 
stabilizing mechanisms such as braces, clear and conspicuous 
warning labels, and to make available on its Internet Web site 
recommendations on tipover prevention.
    Lastly, the Committee requests that the CPSC conduct a 
study of injuries and deaths related to toy guns, and consider 
the adoption of a consumer product safety rule that provides 
for distinctive marking of toy guns to distinguish them from 
actual firearms.
    The Committee intends for the CPSC to give priority to the 
effective implementation of Title I and II of H.R. 4040. 
Nonetheless, the Committee requests that these additional 
matters also be given consideration, and notes that it intends 
to check on their status at appropriate intervals to make sure 
that they are accomplished with reasonable diligence.
    The Committee also notes that it was made aware late in the 
process of two other possible dangers regarding toxic toys, 
phthalates and asbestos. It intends to address these important 
issues in subsequent hearings and legislation.