NCJ Number
83123
Date Published
1981
Length
1001 pages
Annotation
Testimony before the House Subcommittee on Crime considers H.R. 4973, a bill to amend title 18 of the United States Code to impose criminal penalties for knowing nondisclosure by business entities of dangerous products and business practices.
Abstract
H.R. 4973 provides that managers who discover a serious danger associated with a company product or business practice and do not inform appropriate Federal agencies and employees in writing within 30 days after the discovery shall be criminally liable for a fine not less than $50,000 or imprisonment for not less than 2 years, or both. If the convicted defendant is a corporation, the fine shall not be less than $100,000. Testimony documents instances where companies have endangered their employees by the health hazards of their occupations, notably asbestos manufacturers, without informing employees of the company doctor's diagnosis of health problems, as well as instances where companies knowingly endangered the lives of citizens through the dumping of toxic chemicals and the continuing manufacture of a product known to constitute substantial danger to its users. Testimony was heard from representatives of labor, management, religion, and Government agencies. While virtually all of the testimony favored the intent of the legislation, much of it questioned whether the bill would be effective in achieving the intended goal. Some felt the bill was not strong enough, leading to the offering of a revised bill (H.R. 7040) which includes protection for 'whistleblowers,' revised penalties, and a 15-day time limit for corporate officials to report concealed dangers. Representatives of management argued that the bill is vague in its definitions of how liability is incurred, particularly in defining who can be liable and what constitutes appropriate reporting under the bill.