Consumer Product Safety Commission (CPSC)
Update – February 2007
Several recent events at the Consumer Product Safety
Commission may have significant implications for your firm.
1. Interim Delegation of Authority in the
Absence of a Quorum
After January 14, 2007, the CPSC did not have a
quorum to transact business. The lack of a quorum occurred six
months following the resignation of Chairman Hal Stratton in July
2006, which left the Commission with only two Commissioners, short
of the three required. To allow the agency to continue with critical
business, the Commission approved an Interim Delegation of Authority,
delegating to particular staff specified powers and functions,
beginning on January 15, 2007. The delegation provides for notification
to the Commission of any actions taken pursuant to it and allows
particular actions unless, in certain specified instances, there
is objection by an individual Commissioner.
The Assistant Executive Director for Compliance
and Field Operations (AEDCFO) is delegated authority under Procedures
for Consent Order Agreements (16 C.F.R. Section 1118.20) to act
for the Commission with respect to staff allegations that any
person or firm violated the Prohibited Acts sections of the CPSA
(Section 19, 15 U.S.C. Section 2068) or of the Federal Hazardous
Substances Act (Section 4, 15 U.S.C. Section 1263), where the
total amount of the settlement reached involves no more than $50,000.
The AEDCFO shall obtain the concurrence of the General Counsel.
This authority shall be exercised unless either Commissioner objects
within five business days after notice. This part of the delegation
allows the Office of Compliance to process Consent Orders.
The General Counsel is delegated authority to refer
civil penalty actions to the Department of Justice, unless either
Commissioner objects to such referral within five business days
after notice. This part of the delegation allows the agency to
pursue civil penalties arising from Compliance cases.
The delegation will automatically expire upon the
Commission having a quorum, which will occur upon appointment
and confirmation of a third Commissioner. To date, although various
names have been rumored, including that of Michael Baroody, lobbyist
for the National Association of Manufacturers, the Administration
has not appointed a new Commissioner. The Interim Delegation of
Authority in the Absence of a Quorum – January 12, 2007
can be accessed at: http://www.cpsc.gov/library/foia/ballot/ballot07/ballot07.html.
2. Fiscal Year 2008 Budget Request
CPSC requested $63,250,000 for fiscal year 2008.
This amount represents a net increase of $880,000 over the 2007
funding level of $62,370,000 presently before Congress. The 2008
funding level does not cover “current services,” which
will result in a decrease of 19 Full Time Equivalent (FTE) staff
to 401 FTEs. The document is at: http://www.cpsc.gov/CPSCPUB/PUBS/REPORTS/2008plan.pdf.
Funding for CPSC has remained level for the two
previous years resulting in a staff decrease of 31 FTEs in 2006
and 20 FTEs in 2007. A further decrease of 19 FTEs for 2008 means
that 70 staff positions, nearly 15 percent, have been eliminated
in three years.
CPSC’s safety standards, enforcement and
consumer outreach work has been adversely affected by these
reductions. Coupled with CPSC staff retirements, the quality
and quantity of the CPSC staff’s work continues to deteriorate
as fewer staff are responsible for an increasing workload. Given
the current CPSC agenda, we strongly believe the industry must
conduct their own technical work and/or establish public/private
working relationships in order to avoid poorly developed regulations.
