Update on CPSC Database, Youth ATV/Bike Bill House Set to Consider
On June 23, 2011, the House Appropriations Committee approved and reported the fiscal year 2012 Financial Services1 appropriations bill. Introduced on July 7 as H.R. 2434, it would ban funding for the CPSC public database, exclude youth off-highway vehicles and bicycles from CPSC’s lead content limits, require a GAO cost benefit analysis of the CPSIA, etc.
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According to the Republican Cloakroom schedule, the House is scheduled to begin consideration of H.R. 2434 during the week of July 11, 2011.
Highlights from Bill and Committee’s Report
The following are highlights of the CPSC-related provisions in the text of the bill (H.R. 2434, as introduced) and the Committee’s report (H. Rept. 112-136)2.
Would Ban Funding for CPSIA-required Public Database
The Committee3 expressed strong concerns regarding the consumer product complaint database required by the Consumer Product Safety Improvement Act of 2008 (CPSIA). The Committee believes that the construction of this database is flawed and, therefore, is of little value to consumers and manufacturers. The Committee believes the $3 million annual investment in the database would be more effectively spent elsewhere and has included language in H.R. 2434 prohibiting funds from being spent on this database.4
Committee Would Reconsider Funding Ban if CPSC Improves Database
The FY 2011 Continuing Resolution requires the Government Accountability Office (GAO) to conduct an analysis of the database. The Committee encourages the CPSC to implement any GAO recommendations and improve the reliability of the information provided. The Committee states that if the CPSC takes sufficient actions to improve the database, it will reconsider the funding prohibition.
Would Ban Funding of Lead Limits for Youth Off-Highway Vehicles, Bicycles
H.R. 2434 contains a prohibition on the use of funds to implement or enforce the CPSIA lead content limits in (i) Section 101(a) with respect to youth off-highway and all-terrain vehicles (ATVs) or (ii) Section 101(a)(2)(C) with respect to bicycles.
The Committee notes that the CPSC currently has a stay on: (i) certain lead content requirements for youth off-highway and all-terrain vehicles and bicycles; and (ii) on lead content testing and certification for all children’s products. However, the Committee remains concerned that child-sized version of these products still will not be able to meet the lead content limits when these stays expire and will be pulled from the market, increasing the tendency for children to ride and be hurt by adult sized ATVs.
Would Require GAO Cost-Benefit Analysis of CPSIA
The Committee believes that CPSIA implementation has not been risk-based and has been onerous and costly to manufacturers in some cases. The Committee urges the CPSC to focus its resources where they can make the most impact for consumers -- risk assessment and enforcement. H.R. 2434 would require the GAO to conduct a quantitative and qualitative cost benefit analysis of the CPSIA.
Committee Supports Import Safety Initiative at Ports of Entry, China Office
The Committee supports the Import Safety Initiative which positions CPSC investigators at key ports of entry in order to stop defective products from entering the U.S. The CPSC’s coordination with U.S. Customs and Border Protection (CBP) is a cost efficient way to increase enforcement capabilities at U.S. borders and the Committee believes that resources in this area are being spent in a targeted and effective way. The Committee urges CPSC to continue its efforts in working with CBP to ensure the safety of imported products.
The Committee is also supportive of the CPSC’s efforts in establishing a regional office in China. The Committee finds that the CPSC’s efforts to establish a presence in China, along with efforts at U.S. ports, suggests increased effectiveness in stemming the flow of defective and harmful products coming in from overseas.
CPSC Would Receive Small Decrease in Funding
H.R. 2434 would provide a FY 2012 appropriation of $111.3 million for the CPSC, which is $3.5 million less than it received in FY 2011 and $10.7 million less than the President’s budget request.
1Financial Services and General Government Appropriations Act, 2012.
2Although the Appropriations Committee’s report does not have statutory force; departments and agencies are not legally bound by their declarations. It does, however, explain congressional intent and frequently have effect because departments and agencies must justify their budget requests annually to the Appropriations Committees.
3In the report, the two of the Committee’s Minority Members expressed opposition to the inclusion of controversial policy riders in the bill, such as the de-funding of the CPSC database.
4According to testimony by CPSC Chairman Tenenbaum on February 17, 2011, the agency spent $3 million to establish the database and this is not a recurring annual cost. (See ITT’s Online Archives or 02/23/11 news, 11022316, for BP summary.
Appropriations Committee press release available here
Text of H.R. 2434 (as introduced) available here
H. Rept. 112-136 available here