Congress Hears Pleas for Expanded Authority and Resources at CPSC

A proliferation of children's product recalls due to potentially dangerous exposure to lead has left many turning to the federal government for answers. The Consumer Product Safety Commission (CPSC) has borne much of the brunt for the regulatory failures. Congress is considering solutions including new federal standards for lead, expanding the agency's regulatory authority and increasing agency resources.

Currently, CPSC regulations ban the use of lead paint in many products, including toys. Children may also be exposed to lead in jewelry. CPSC has initiated a rulemaking which would ban lead in jewelry. While that rule moves through the regulatory pipeline, CPSC has begun a campaign of voluntary recalls focusing on reducing lead exposure in children's products.

However, neither CPSC regulations nor enforcement practices have kept up with a changing marketplace dominated by Chinese imports. Subsequently, a large number of children's products containing lead have found their way into American households. In these cases, CPSC has had to resort to voluntary recalls, in which the agency works with toy manufacturers and distributors in order to publicize a recall and work to remove tainted products from the market.

In 2007, CPSC has negotiated at least 43 recalls of children's products — from toys to school supplies to jewelry — containing lead, according to CPSC recall announcements. Those 43 recalls have involved approximately 10.8 million products, 84 percent of which were manufactured in China.

The product failures have spurred congressional oversight. Both the House and the Senate have held hearings focusing on children's exposure to lead from toys, jewelry and other products.

The Senate Appropriations Committee Subcommittee on Financial Services and General Government held a hearing on Sept. 12. One panel of witnesses included CPSC Acting Chairman Nancy Nord. Subcommittee members questioned Nord on a new agreement CPSC has negotiated with its Chinese counterpart. Under the agreement, the Chinese agency, the General Administration of Quality Supervision, Inspection and Quarantine, has pledged to work to eliminate lead in toys manufactured in China.

Senators inquired as to whether the agreement would yield actual benefits in the form of safer toys. Nord could not provide a straightforward answer. On multiple occasions, Nord instructed the subcommittee to "ask the Chinese."

Another panel included Mattel chairman Robert Eckert, Toy Industry Association president Carter Keithley, and Consumers Union counsel Sally Greenberg. Eckert was forthright in acknowledging his company had allowed lead-tainted products on the market and apologized for the mistakes. All witnesses expressed full-throated support for a strong and well-resourced CPSC.

During the hearing, ranking member Sam Brownback (R-KS) urged CPSC to "pull out the heavy club" and do a better job enforcing current regulations. Sen. Richard Durbin (D-IL), chairman of the subcommittee, closed the hearing by saying that China, the CPSC and Congress had failed, and he encouraged greater federal involvement: "There are moments when we need government, when we need someone to make certain that the products on the shelves are always going to be safe for our families and our kids. We need to step up to that responsibility."

On Sept. 19 and 20, the House Energy and Commerce Committee Subcommittee on Commerce, Trade and Consumer Protection held a two-day hearing on lead paint in children's toys. Congressmen from both parties were critical of CPSC and the toy industry. Committee Chair John Dingell (D-MI) scolded Nord for being too trustworthy of China, saying, "We have a fistful of promises from China."

Congressmen and witnesses also discussed legislative solutions. One proposed solution would require toys be certified for safety by an independent third party before the products could be sold. Gary Knell, president of the Sesame Workshop, announced his company would begin the process voluntarily.

Sen. Mark Pryor (D-AR) has introduced the CPSC Reform Act of 2007 (S. 2045). The bill would mandate third-party certification for children's products. It would also ban the presence of lead in children's products and tighten the standard for lead in all paints to 0.009 percent from the current 0.06 percent standard.

The legislation goes beyond children's products and lead issues and addresses some of the broader problems plaguing CPSC. Pryor's legislation would also provide CPSC expanded ability to assess civil penalties for parties in violation of CPSC standards. The legislation would also mandate an expansion in appropriations for CPSC.

CPSC's eroding resources have been cited as a reason for the agency's inability to properly ensure product safety. The agency's budget is half of what it was in the 1970s when accounting for inflation. CPSC's staff, once near 1,000, is now 420.

President George W. Bush's proposed budget for FY 2008 would exacerbate this problem. CPSC's budget for FY 2007 was $62,728,000. Bush has proposed a new funding level of $63,250,000 for FY 2008, a cut when taking inflation into account. Bush's budget proposes a cut in staff down to 401.

Congress is attempting to counter the president on his proposed cuts. In their respective versions of the Financial Services and General Government Appropriations bills, the House proposed $66,838,000 for CPSC, and the Senate proposed $70,000,000 for FY 2008. Bush has repeatedly indicated he will veto appropriations bills exceeding his requests.

Pryor's legislation would mandate an increase in staff to at least 500 full-time employees by the beginning of FY 2014. It would also mandate an increase in appropriations to $141,725,000 by FY 2015. The legislation has not yet been considered by the Senate Commerce, Science and Transportation Committee.

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