Senate Bill Recommends $400K Increase for CPSC, $2M Decrease for TTB

Included in the general provisions of S. 3677 are a clarification for agricultural goods sold to Cuba and funding restrictions related to the Buy American Act.

(Although the Senate Appropriations Committee has approved S. 3677, it is not yet in effect. Generally, in order for a bill to be implemented, identical versions of that bill must be passed by both the House and Senate, and then the bill must be approved (enacted) by the President.)

The following are highlights of the trade-related provisions in the Senate Appropriations Committee's (Committee's) bill (S. 3677) and report² (S. Rept. 111-238).

CPSC Would Receive $400K Increase

S. 3677 would provide the Consumer Product Safety Commission $118.6 million for salaries and expenses, $400,000 more than was provided in the FY 2010 appropriation and equal to the Administration’s FY 2011 budget request.

(The House Appropriations Committee’s Financial Services and General Government Subcommittee recommended to the full House Appropriations Committee a $7.2 million increase in FY 2011 funding for CPSC to, among other things, double its presence at U.S. ports where most dangerous products enter the U.S. market. See ITT’s Online Archives or 08/02/10 news, 10080226, for BP summary.)

Committee instructs CPSC to ensure compliance and other hiring goals are met. In its report, the Committee reminds the CPSC that hiring -- particularly in the areas of Compliance and Field Operations and Hazard Identification and Reduction -- remains a priority and that increased funding has been provided over the past several years for this purpose. CPSC should ensure that this funding is being spent as directed and that hiring goals are met.

GAO follow-up report on CPSC’s targeting of unsafe consumer products. The Committee notes that an August 2009 Government Accountability Office (GAO) report (GAO--09--803), issued in response to a mandate in the Consumer Product Safety Improvement Act of 2008 (CPSIA), raised concerns about and made recommendations to strengthen CPSC’s ability to target unsafe consumer products. The CPSC’s ability to conduct market surveillance and target unsafe products is a critical factor in its decisions about whether to recall consumer products. In carrying out this important activity, CPSC must rely on a relatively small number of compliance officers and investigators, as well as work with its counterparts in other countries. The effectiveness of CPSC’s field structure and approach to market surveillance has important implications for its ability to ensure the safety of consumer products. To further strengthen CPSC’s ability to target unsafe consumer products, the Committee directs GAO to conduct a follow-up report within 270 days of enactment.

Quarterly reports on drywall. The Committee expressed appreciation for the monthly drywall reports provided by the CPSC during the past year and for FY 2011 requires that these reports be provided on a quarterly basis instead, although the CPSC should update the Committee of notable developments immediately, should they occur outside the quarterly reporting schedule.

TTB Funding Would Decrease by $2M

S. 3677 would provide $101 million for Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) salaries and expenses, $2 million less than was appropriated in FY 2010.

In its report, the Committee reminds the Department of Treasury and TTB that the fiscal year 2010 enacted level included $3 million for hiring, training, and equipping of special law enforcement agents to target tobacco smuggling and other criminal diversion activities. The Committee directs the Treasury Department and TTB to place a high priority on hiring these positions and conducting robust criminal enforcement activities at TTB.

The Committee does not recommend (for the second year in a row) assessing fees on producers, distributors, and retailers of alcohol in order to offset TTB’s operating budget, as was proposed in the Administration’s FY 2011 budget.

FTC Would Receive $22.3M Increase in Funding

S. 3677 would provide $314 million to the Federal Trade Commission for salaries and expenses, an increase of $22.3 million over what was appropriated in FY 2010. The Committee has approved significant program increases for FTC activities in the areas of financial practices, fraud targeting, international consumer protection, and merger transactions. The report does not discuss any trade-specific FTC activities.

SBA Funding Would be Increased by $13.9M

S. 3677 would provide $1.1 billion for the Small Business Administration, $13.9 million above what was enacted in FY 2010. The Committee recommended funding increases for small business development centers, women’s business centers, native American outreach, Hispanic business centers, etc. The report does not discuss any trade-specific SBA activities.

CIT Would Receive Almost $1M Increase

S. 3677 would provide the Court of International Trade with $22.3 million, an increase of almost $1 million over what was appropriated in FY 2010.

(The CIT has exclusive nationwide jurisdiction over civil actions brought against the U.S., its agencies and officers, and certain civil actions brought by the U.S., arising out of import transactions and the administration and enforcement of the Federal customs

and international trade laws.)

Treasury Directed to Fully Implement all Sanctions, Divestment Measures

Of the amount provided to the Treasury Department, the Committee recommends $102.6 million for Terrorism and Financial Intelligence programs. With these funds, the Treasury Department will continue to issue and enforce economic and trade sanctions consistent with national security and foreign policy goals. The Committee directs the Treasury Department to fully implement all sanctions and divestment measures, particularly those applicable to North Korea, Burma, Iran, Sudan, and Zimbabwe. The Committee directs the Department to promptly notify the Committee of any resource constraints that adversely impact the implementation of any sanctions program.

Clarification for Agricultural Goods Sold to Cuba

S. 3677 contains language to clarify the requirement for payment of “cash in advance” for agricultural goods sold to Cuba.

Buy American Act Funding Restrictions

The general provision of S. 3677 include a provision which states that no funds appropriated under the bill may be expended by an entity unless the entity agrees that in expending the assistance the entity will comply with the Buy American Act (41 USC 10a-10c).

¹FY 2011 is from October 1, 2010 through September 30, 2011.

²Although reports such as S. Rept. 111-238 do not have statutory force and departments and agencies are not legally bound by their declarations, they do explain congressional intent, and executive branch agencies take them seriously because they must justify their budget requests annually to the Appropriations Committees