59 010
1998
105 th Congress 2d Session
SENATE
Report
105 267
Calendar No. 498
FASTENER QUALITY ACT
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
H.R. 3824
[Graphic Image Not Available]
July 27, 1998 .--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED FIFTH CONGRESS
SECOND SESSION
JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington WENDELL H. FORD, Kentucky
TRENT LOTT, Mississippi JOHN D. ROCKEFELLER IV, West Virginia
KAY BAILEY HUTCHISON, Texas JOHN F. KERRY, Massachusetts
OLYMPIA SNOWE, Maine JOHN B. BREAUX, Louisiana
JOHN ASHCROFT, Missouri RICHARD H. BRYAN, Nevada
BILL FRIST, Tennessee BYRON L. DORGAN, North Dakota
SPENCER ABRAHAM, Michigan RON WYDEN, Oregon
SAM BROWNBACK, Kansas
John Raidt, Staff Director
Mark Buse, Policy Director
Martha P. Allbright, General Counsel
Ivan A. Schlager, Democratic Chief Counsel and Staff Director
James S. W. Drewry, Democratic General Counsel
(II)
59 010
Calendar No. 498
105 th Congress
Report
SENATE
2d Session
105 267
FASTENER QUALITY ACT
July 27, 1998.--Ordered to be printed
Mr. McCain, from the Committee on Commerce, Science, and Transportation,
submitted the following
REPORT
[To accompany H.R. 3824]
The Committee on Commerce, Science, and Transportation, to which was
referred the bill (H.R. 3824) ``A Bill amending the Fastener Quality Act
to exempt from its coverage certain fasteners approved by the Federal
Aviation Administration for use in aircraft'', having considered the
same, reports favorably thereon with amendments and recommends that the
bill as amended do pass.
PURPOSE OF THE BILL
The purpose of the bill, as reported, is to amend the Fastener
Quality Act (FQA), 15 U.S.C. 5401 et seq., to exempt from coverage
certain fasteners approved by the Federal Aviation Administration (FAA),
and to delay the effective date of regulations implementing the FQA
until June 1, 1999, or 120 days after the Secretary of Commerce
(Secretary) has issued a report on changes needed to the law, whichever
is later.
BACKGROUND AND NEEDS
Every year billions of special high-strength bolts, screws, and other
fasteners are sold in the United States which carry grade identification
markings. The markings indicate that the fasteners conform with
specifications set by consensus standards organizations. These
grade-marked fasteners are used in critical applications like highway
bridges and aircraft where failure of a fastener could jeopardize public
safety.
The FQA was enacted in 1990 and applies to all threaded, metallic,
through-hardened fasteners of one-quarter inch diameter or greater that
directly or indirectly reference a consensus standard. Under the FQA,
such fasteners must be tested or documented by a laboratory that is
certified by the National Institute of Standards and Technology (NIST).
Despite the passage of time since its enactment, regulations to carry
out the provisions of the FQA have never been implemented. NIST's most
recent rule was published April 14, 1998 and includes revisions to
earlier proposed regulations which reflect legislative changes to the
FQA adopted in 1996 as part of the National Technology Transfer and
Advancement Act (Public Law 104 113). The April 14 rule currently is
scheduled to take effect on October 26, 1998.
Since the passage of the FQA in 1990, fastener quality control
procedures have evolved substantially from the lot-sampling procedure
that forms the basis for the current law. In the April 14 rule, NIST
attempted to accommodate the new ``process control'' quality approaches
in the FQA regulations. However, fastener manufacturers and major
industrial users report that the NIST rule is overly restrictive and
does not fully accommodate advances in quality control procedures.
In addition, proprietary fasteners of aviation manufacturers
currently are subject to the quality assurance programs of the FAA.
Under these programs, aviation manufacturers already are required to
demonstrate to the FAA that they have a quality control system which
ensures that their products, including fasteners, meet design
specifications. Consequently, the application of FQA requirements to
such fasteners could create duplicative and potentially confusing
regulations that would not assist federal efforts to ensure the safety
of the flying public. Furthermore, neither the FAA nor the National
Transportation Safety Board is aware of any fatal aviation accidents
caused by a substandard proprietary fastener.
LEGISLATIVE HISTORY
H.R. 3824 was referred to the Committee on Commerce, Science, and
Transportation on June 24, 1998. There have been no Senate hearings on
the legislation. However, bill provisions are similar to language
included in S. 1325, the Technology Administration Authorization Act. S.
1325 was approved by the Committee at its April 30, 1998 executive
session and was reported on May 22, 1998.
On July 9, 1998, the Committee met in executive session and, by a
voice vote, ordered H.R. 3824 to be reported with amendments. The
package of amendments, offered by Senator Ford for Senators Hollings and
Rockefeller, broadens and clarifies the scope of the study called for in
the bill. It requires that the study include a comparison of the FQA to
other applicable regulatory programs and an identification of any
duplication.
ESTIMATED COSTS
In accordance with paragraph 11(a) of rule XXVI of the Standing Rules
of the Senate and section 403 of the Congressional Budget Act of 1974,
the Committee provides the following cost estimate, prepared by the
Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 14, 1998.
Hon. John McCain, Chairman, Committee on Commerce, Science and Transportation,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has prepared the
enclosed cost estimate for H.R. 3824, an act amending the Fastener
Quality Act to exempt from its coverage certain fasteners approved by
the Federal Aviation Administration for use in aircraft.
If you wish further details on this estimate, we will be pleased to
provide them. The CBO staff contact is Mark Hadley.
Sincerely,
June E. O'Neill, Director.
Enclosure.
H.R. 3824--An act amending the Fastener Quality Act to exempt
from its coverage certain fasteners approved by the Federal Aviation
Administration for use in aircraft
H.R. 3824 would amend existing law regarding the regulation of
fasteners. The act would direct the National Institute of Standards and
Technology (NIST) to submit a report to the Congress by February 1,
1999, on trends in manufacturing fasteners, on other programs that
regulate fasteners, and on legislative changes that may be needed to
reflect current conditions. Implementation of NIST's regulations on
fasteners would be delayed until June 1, 1999, or 120 days after
submission of the report, whichever is later. Under this legislation,
fasteners made for aircraft would be exempt from those regulations if
the suitability and quality of the fasteners have been approved by the
Federal Aviation Administration.
Based on information provided by the agency, CBO estimates that NIST
would spend about $200,000 in 1999 to complete the study required by
H.R. 3824, assuming appropriation of the necessary funds. Because H.R.
3824 would not affect direct spending or receipts, pay-as-you-go
procedures would not apply.
H.R. 3824 contains no intergovernmental or private-sector mandates as
defined in the Unfunded Mandates Reform Act and would not affect the
budgets of state, local, or tribal governments.
On May 21, 1998, CBO transmitted an estimate of H.R. 3824 as ordered
reported by the House Committee on Science on May 13, 1998. The House
version would not require NIST to report on other programs that regulate
fasteners; therefore, CBO estimated that NIST would spend only about
$100,000 to complete the study.
The CBO staff contact for this estimate is Mark Hadley. This estimate
was approved by Paul N. Van de Water, Assistant Director for Budget
Analysis.
REGULATORY IMPACT STATEMENT
In accordance with paragraph 11(b) of rule XXVI of the Standing Rules
of the Senate, the Committee provides the following evaluation of the
regulatory impact of the legislation, as reported:
NUMBER OF PERSONS COVERED
H.R. 3824, as reported, would exempt from coverage certain
FAA-approved fasteners and delay implementation of FQA regulations.
Manufacturers and users of grade-marked fasteners will be affected by
the FQA requirements when they are implemented. However, the reported
bill will not subject any individuals or businesses affected by those
requirements to any additional regulation.
ECONOMIC IMPACT
Providing an exemption for FAA-approved fasteners will allow aviation
manufacturers to continue their existing manufacturing processes without
modification or cost impact. In addition, the delay in the
implementation of NIST's FQA regulations allows the Secretary of
Commerce to review the current law's relevance to today's manufacturing
processes for fasteners of all kinds. Therefore, businesses will not be
required to incur costs associated with FQA compliance until the later
of June 1, 1999 or 120 days after the Secretary makes the report
available to the Congress.
PRIVACY
This legislation will not have an adverse impact on the privacy of
individuals.
PAPERWORK
H.R. 3824, as reported, will not increase the paperwork requirement
for private individuals or businesses. The legislation requires the
Secretary of Commerce to submit to Congress a report on changes in the
fastener manufacturing processes, an analysis of the duplication that
exists between FQA and other regulatory programs, and recommendations
for changes to the FQA.
SECTION-BY-SECTION ANALYSIS
Section 1. Amendment
This section would amend Section 15 of the FQA (15 U.S. Code 5414) by
adding at the end a new subsection (b). The new subsection (b) would
exempt from FQA requirements fasteners specifically manufactured or
altered for use on aircraft if the quality and suitability of those
fasteners, for that specified use, is approved by the FAA. The exemption
would not apply to fasteners represented by their manufacturer as having
been manufactured in conformance with standards or specifications
established by a consensus standards organization or a federal agency
other than the FAA.
Section 2. Delayed implementation of regulations
This section would delay the implementation of NIST's April 14, 1998
FQA rule until June 1, 1999, or 120 days after the Secretary transmits a
report to Congress on recommended changes to the FQA, whichever is
later.
The Secretary's report would be required to include: (1) a discussion
of changes in the fastener manufacturing processes that have occurred
since the original enactment of FQA in 1990; (2) a comparison of the FQA
to other regulatory programs that regulate the various categories of
fasteners, and an analysis of any duplication that exists among
programs; and (3) recommendations for changes that should be made to the
FQA as a result of improvements in the fastener manufacturing process
and the comparison of the FQA to other regulatory programs.
Concerns have been raised regarding the application of the FQA to
certain fastener categories. The bill's exemption for aviation fasteners
regulated by the FAA responds to one such concern. Similar situations
may exist in other industries. For example, some automobile
manufacturers have pointed out that the National Highway Traffic Safety
Administration's responsibility for the safety of automobiles could
include fasteners. Thus, it is essential that the Secretary work
cooperatively with other federal agencies and departments in completing
the report required under this section.
To ensure that the report is thorough and complete, and that it
includes necessary information and appropriate recommendations for
Congressional action, the Secretary also should seek and consider input
from a variety of industry and manufacturing sources, both domestic and
foreign. The Committee expects the Secretary to develop a process for
receiving and evaluating input from the public and affected businesses,
and that those comments will be given full consideration.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the Standing Rules of
the Senate, changes in existing law made by the bill, as reported, are
shown as follows (existing law proposed to be omitted is enclosed in
black brackets, new material is printed in italic, existing law in which
no change is proposed is shown in roman):
TITLE 15. COMMERCE AND TRADE\1\
\1\Section 15 of the Fastener Quality Act is reflected in the United
States Code as section 5414 of title 15.
CHAPTER 80. FASTENERS
5414. Applicability
(a) Transitional Rule.-- The requirements of this Act shall be
applicable only to fasteners fabricated 180 days or more after the
Secretary issues final regulations required under sections 5, 6, and 8,
except that the Secretary may extend such time period if the Secretary
determines that an insufficient number of laboratories have been
accredited to perform the volume of inspection and testing required.
Upon any such extension, and every 6 months thereafter during such
extension, the Secretary shall submit a report to the Congress
explaining the reasons for such extension and the steps being taken to
ensure the accreditation of a sufficient number of laboratories.
(b) Aircraft Exemption.--
(1) In general.-- The requirements of this Act shall not apply to
fasteners specifically manufactured or altered for use on an aircraft if
the quality and suitability of those fasteners for that use has been
approved by the Federal Aviation Administration, except as provided in
paragraph (2).
(2) Exception.-- Paragraph (1) shall not apply to fasteners
represented by the fastener manufacturer as having been manufactured in
conformance with standards or specifications established by a consensus
standards organization or a Federal agency other than the Federal
Aviation Administration.