[House Report 107-21]
[From the U.S. Government Publishing Office]
107th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 107-21
======================================================================
MADE IN AMERICA INFORMATION ACT
_______
March 13, 2001.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Tauzin, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
together with
[To accompany 725]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 725) to establish a toll free number under the
Federal Trade Commission to assist consumers in determining if
products are American-made, having considered the same, report
favorably thereon without amendment and recommend that the bill
do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Hearings......................................................... 2
Committee Consideration.......................................... 2
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
Statement of General Performance Goals and Objectives............ 3
New Budget Authority, Entitlement Authority, and Tax Expenditures 3
Committee Cost Estimate.......................................... 3
Congressional Budget Office Estimate............................. 3
Federal Mandates Statement....................................... 4
Advisory Committee Statement..................................... 4
Constitutional Authority Statement............................... 4
Applicability to Legislative Branch.............................. 4
Section-by-Section Analysis of the Legislation................... 5
Changes in Existing Law Made by the Bill, as Reported............ 6
PURPOSE AND SUMMARY
The purpose of H.R. 725, the Made in America Information
Act, is to provide for the establishment and operation of a
three-year, toll free number pilot program to assist consumers
in determining what products are ``Made in America.'' The bill
provides that all costs of the program be paid with fees
collected from manufacturers who voluntarily choose to register
their products under this program.
The reported bill requires the Secretary of Commerce to
initiate a rulemaking to establish the program, as well as
procedures for manufacturers to register products that are made
in America. If there is sufficient interest in providing
private sector funding, the Secretary is directed to promulgate
the proposed rule and to enter into a contract for the
establishment and operation of the program.
BACKGROUND AND NEED FOR LEGISLATION
In today's global economy, it is increasingly difficult for
consumers to determine which products are ``Made in America.''
Whether shopping for cars, computers, industrial equipment, or
hand tools, the ``Made in America'' designation still
represents quality and value to consumers, and is something
that consumers, when adequately informed, factor into
purchasing decisions. Currently, there is no central repository
for lists of American-made products.
The issue of the appropriate definition of when a product
is ``Made in America'' has been addressed by the Federal Trade
Commission (FTC or the Commission). The FTC's long-standing
decisions have held that, for purposes of enforcement against
``unfair and deceptive trade practices,'' ``all or virtually
all'' of a product, including its components and parts, must be
made in the United States by U.S. workers in order to make that
claim. In an effort to understand the sentiment among both
consumers and manufacturers better, the Commission undertook a
comprehensive series of workshops, an extensive public comment
period generating more than 300 comments, and consumer surveys.
On December 1, 1997, the Commission issued an enforcement
policy statement on U.S. origin claims rejecting an earlier
effort to change the standard used by the Commission and
announcing its intent to continue enforcing the Commission's
``all or virtually all'' content standard.
The Committee considered, and the House passed, legislation
nearly identical to H.R. 725 in the 103rd, 104th, 105th, and
106th Congresses. The language reported by the Committee is
identical in every material respect to the language passed by
the House in the 106th Congress. The Committee's report on H.R.
3342 in the 103rd Congress (H. Rpt. 103 660) contains
additional background information on the subject of ``Made in
America.'' (See also H.R. 447 in the 104th Congress; H. Rpt.
104-753; H.R. 563 in the 105th Congress; H. Rpt. 105-759; H.R.
754 in the 106th Congress; H. Rpt. 106-399).
HEARINGS
The Committee has not held any hearings on H.R. 725.
COMMITTEE CONSIDERATION
On February 28, 2001, the Committee on Energy and Commerce
met in open markup session and ordered H.R. 725 reported to the
House, by voice vote, a quorum being present.
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.
There were no record votes taken in connection with ordering
H.R. 725 reported.
COMMITTEE OVERSIGHT FINDINGS
The Committee did not hold oversight or legislative
hearings on this legislation.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Currently, there is no central repository for lists of
American-made products. The objective of this legislation is to
provide for such a depository, which will be easily accessible
to the consumer via a toll-free number and funded by industry.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
In compliance with clause 3(c)(2) of Rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
725, Made in America Information Act, would result in no new or
increased budget authority, entitlement authority, or tax
expenditures or revenues.
COMMITTEE COST ESTIMATE
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(c)(3) of Rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 12, 2001.
Hon. W.J. ``Billy'' Tauzin,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 725, the Made in
America Information Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Ken Johnson.
Sincerely,
Steven M. Lieberman
(For Dan L. Crippen, Director).
Enclosure.
H.R. 725--Made in America Information Act
H.R. 725 would require the Department of Commerce to
determine if sufficient interest exists among manufacturers to
establish a consumer telephone hotline listing products that
are made in America. If sufficient interest is found, the bill
would authorize the department to enter into a contract to
establish a three-year pilot program to operate such a hotline
and to charge fees to pay for the cost of the contract subject
to future appropriations acts.
CBO estimates that implementing H.R. 725 would not result
in any significant net cost to the federal government. Assuming
the department finds sufficient interest among manufacturers,
CBO estimates that establishing a hotline and database and
operating the program over a three-year period would cost the
Department of Commerce about $10 million during the 2002-2005
period. However, the bill also would authorize the Department
of Commerce to establish fees to offset the costs of the toll-
free hotline, subject to approval in appropriation acts. CBO
estimates that the collection of fees would reduce the net
budgetary effect of H.R. 725 to an insignificant level.
H.R. 725 could increase governmental receipts because the
bill would establish a civil penalty for anyone who knowingly
registers a product for the toll-free hotline that is not made
in America, as defined by the bill. Consequently, pay-as-you-go
procedures would apply. However, CBO estimates that any such
receipts would not be significant in any year.
This bill contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reforms Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact for this estimate is Ken Johnson.
This estimate was approved by Robert A. Sunshine, Assistant
Director for Budget Analysis.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates 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 were created by this
legislation.
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.
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 oraccommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section establishes the short title of the
legislation, the ``Made in America Information Act.''
Section 2. Establishment of toll free number pilot program
This section provides that if, pursuant to comments
received during rulemaking under section 3 of the bill, the
Secretary of Commerce (the Secretary) determines there is
sufficient interest among manufacturers in the private sector
to operate the program established under this section without
Federal funding, the Secretary will establish a toll free
number which may be used by consumers to determine if a product
is made in America. Under this section, the Secretary has
responsibility to publish the toll free number in the Federal
Register.
This section also requires that the Secretary contract out
the establishment and operation of the toll free number pilot
program and the registration of products pursuant to
regulations issued under section 3.
This section further provides that consumers shall be
informed: as to whether products about which inquiry is being
made are registered as being ``Made in America;'' that
registration of a product does not mean that the product is
endorsed or approved by the Government; that registration of a
product does not mean that the Secretary has conducted any
investigation to confirm that the product is a product which
meets the definition of ``Made in America''; and that
registration of a product does not mean that the product
contains 100 percent U.S. content.
Section 3. Registration
This section provides that the Secretary shall propose a
regulation: (1) to establish procedures under which
manufacturers may voluntarily register products which meet the
definition of ``Made in America'' used in the bill and have
such products included in the information available through the
toll free number; (2) to establish, assess, and collect fees
for the costs of having products included in information
available through the toll free number established under
section 2; (3) to establish a toll free number pilot program;
and (4) to solicit views from the private sector concerning the
level of interest of manufacturers in registering products
under the terms and conditions of the toll free number pilot
program described in the proposed regulations and the level of
interest of consumers.
This section also states that manufacturers who register
products as being ``Made in America'' for purposes of this Act
shall be subject to a fee to cover all costs of operating the
toll free number pilot program established in section 2.
Section 4. Penalty
This section provides that if a manufacturer knowingly
registers a product with the Secretary under section 3 which is
not made in America, the manufacturer may not offer such
product for purchase to the Federal government and shall be
subject to a civil penalty of not more than $7,500, which the
Secretary of Commerce may impose.
Section 5. Definition
This section provides that the term ``Made in America'' has
the same meaning given unqualified ``Made in the U.S.A.'' or
``Made in America'' claims, for purposes of the laws
administered by the Federal Trade Commission. Under the Federal
Trade Commission Act, as historically applied and recently
reaffirmed by the FTC, that agency has treated unqualified
``Made in America'' or ``Made in U.S.A.'' claims as having to
meet a standard of ``all or virtually all'' domestic content.
The bill's definition adopts the standard used by the FTC in
order to ensure that ``Made in America'' claims made pursuant
to this legislation meet the standard for unqualified ``Made in
U.S.A.'' or ``Made in America'' claims that the FTC uses to
enforce section 5 of the Federal Trade Commission Act's (15
U.S.C. 45) prohibition against deceptive acts or practices.
This section also states that the term ``product,'' as used
in the reported bill, means a product with a retail value of at
least $250.
Section 6. Rule of construction
This section states that nothing in this Act shall be
deemed to alter, amend, modify, or otherwise affect in any way,
the Federal Trade Commission Act or the opinions, decisions,
rules, or any guidance issued by the Federal Trade Commission
regarding the use of unqualified ``Made in the U.S.A.'' or
``Made in America'' claims in labels on products introduced,
delivered for introduction, sold, advertised, or offered for
sale in commerce.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.