July 15, 2009

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Under appropriation bills that passed House and Senate committees last week, CPSC is set to get more funding in fiscal 2010 than requested by President Barack Obama. Nonetheless, those bills would fund the agency below the $118 million called for by the CPSIA for the year.

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S. 1432 would give the agency $115 million, with $2 million targeting the Virginia Graeme Baker pool act. The Senate Appropriations Committee passed it July 9, and the accompanying report explained:

The Committee recommends $115,000,000 for the Consumer Product Safety Commission, which is $9,596,000 above the fiscal year 2009 funding level and $8,000,000 above the budget request.

This increased funding level is provided for the Consumer Product Safety Commission to carry out its increased responsibilities under the CPSIA. The Committee is aware that in fiscal year 2009 CPSC has received hundreds of complaints about health and safety problems associated with drywall imported from China. The Committee is appreciative of the fact that CPSC is leading a coordinated, comprehensive, and multi-faceted Federal investigation of imported drywall products. The Committee notes that funds provided in fiscal year 2010 will be available to support CPSC's investigation of imported and domestic drywall products.

Small Business Compliance - CPSIA established many vital safeguards for ensuring that children's products are safe. In December 2008, the CPSC sought comments from the public on section 102 of CPSIA, which requires testing of certain children's products. In particular, the CPSC sought comments regarding testing component parts of children's products rather than testing the final product. The Committee believes that small businesses could benefit greatly by protocol and guidance from the CPSC for those circumstances under which the testing of component parts is sufficient for a small business to demonstrate that its products are in compliance with section 102. Therefore, the Committee recommends that the CPSC expedite the issuance of such guidance.

Within the funds provided, the Committee has included sufficient resources for the Commission to educate micro-businesses, such as home-based businesses, thrift stores, second-hand shops and operators of church fairs, about compliance with CPSIA.

Meanwhile the House Appropriations committee July 10 passed H.R. 3170. It would give CPSC more than $113.3 million, with $2 million targeting the pool law. In its report, the committee explained:

The Consumer Product Safety Commission (CPSC) is charged with reducing the unreasonable risk of injury associated with more than 15,000 consumer products. The bill provides funding for the ongoing work of the CPSC as well as the implementation and enforcement of recently enacted consumer protection legislation, specifically the Consumer Product Safety Improvement Act, the Virginia Graeme Baker Pool and Spa Safety Act, and the Children's Gasoline Burn Prevention Act.

The Consumer Product Safety Improvement Act was signed into law on August 14, 2008 and is considered to be the most significant piece of consumer protection legislation enacted since the CPSC was established in the early 1970s. The legislation received nearly unanimous bipartisan support in Congress. Congress passed this legislation in the wake of a massive number of consumer products recalled in 2007 and 2008--more than 20 million--many of which involved toys manufactured in China. This bill provides much needed resources for the CPSC to support the ongoing implementation of this legislation.

The bill also provides funding for an increased presence at the Nation's ports to keep defective products from entering the country. Through its Import Safety Initiative, the CPSC positions investigators at key ports of entry to monitor shipments of consumer products into the United States. Stopping defective products before they enter the country is a proactive approach to keeping consumers--and particularly our children--safe.

The bill provides a funding level of $113 million for the CPSC for fiscal year 2010, $8 million above the current year's level and $6 million above the Administration's request. The additional funds provided will enable the CPSC to add staff to implement new consumer protection legislation as well as to meet ongoing workload needs.

The House bill also would bar CPSC for a year from using money for CPSIA activities related to lead in off-highway vehicles, but the effect would be minimal as the agency also has an enforcement stay in place.

In May, Obama said he would ask for $107 million for CPSC in fiscal 2010, a 10.5% reduction from the figure authorized by the CPSIA. The law called for $118.20 million in 2010, $115.64 million in 2011, $123.99 million in 2012, $131.78 million in 2013, and $136.41 million in 2014. CPSC’s 2009 budget is $105.4 million.