[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5164 Enrolled Bill (ENR)]

        H.R.5164

                       One Hundred Sixth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
             the twenty-fourth day of January, two thousand


                                 An Act


 
  To amend title 49, United States Code, to require reports concerning 
 defects in motor vehicles or tires or other motor vehicle equipment in 
               foreign countries, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Transportation Recall Enhancement, 
Accountability, and Documentation (TREAD) Act''.

SEC. 2. PRESERVATION OF SECTION 30118.

    The amendments made to section 30118 of title 49, United States 
Code, by section 364 of the Department of Transportation and Related 
Agencies Appropriations Act, 2001 are repealed and such section shall 
be effective as if such amending section had not been enacted.

SEC. 3. REPORTING REQUIREMENTS.

    (a) Defects in Foreign Countries.--Section 30166 of title 49, 
United States Code, is amended by adding at the end the following:
    ``(l) Reporting of Defects in Motor Vehicles and Products in 
Foreign Countries.--
        ``(1) Reporting of defects, manufacturer determination.--Not 
    later than 5 working days after determining to conduct a safety 
    recall or other safety campaign in a foreign country on a motor 
    vehicle or motor vehicle equipment that is identical or 
    substantially similar to a motor vehicle or motor vehicle equipment 
    offered for sale in the United States, the manufacturer shall 
    report the determination to the Secretary.
        ``(2) Reporting of defects, foreign government determination.--
    Not later than 5 working days after receiving notification that the 
    government of a foreign country has determined that a safety recall 
    or other safety campaign must be conducted in the foreign country 
    on a motor vehicle or motor vehicle equipment that is identical or 
    substantially similar to a motor vehicle or motor vehicle equipment 
    offered for sale in the United States, the manufacturer of the 
    motor vehicle or motor vehicle equipment shall report the 
    determination to the Secretary.
        ``(3) Reporting requirements.--The Secretary shall prescribe 
    the contents of the notification required by this subsection.''.
    (b) Early Warning Reporting Requirements.--Section 30166 of title 
49, United States Code, is amended by adding at the end the following:
    ``(m) Early Warning Reporting Requirements.--
        ``(1) Rulemaking required.--Not later than 120 days after the 
    date of the enactment of the Transportation Recall Enhancement, 
    Accountability, and Documentation (TREAD) Act, the Secretary shall 
    initiate a rulemaking proceeding to establish early warning 
    reporting requirements for manufacturers of motor vehicles and 
    motor vehicle equipment to enhance the Secretary's ability to carry 
    out the provisions of this chapter.
        ``(2) Deadline.--The Secretary shall issue a final rule under 
    paragraph (1) not later than June 30, 2002.
        ``(3) Reporting elements.--
            ``(A) Warranty and claims data.--As part of the final rule 
        promulgated under paragraph (1), the Secretary shall require 
        manufacturers of motor vehicles and motor vehicle equipment to 
        report, periodically or upon request by the Secretary, 
        information which is received by the manufacturer derived from 
        foreign and domestic sources to the extent that such 
        information may assist in the identification of defects related 
        to motor vehicle safety in motor vehicles and motor vehicle 
        equipment in the United States and which concerns--
                ``(i) data on claims submitted to the manufacturer for 
            serious injuries (including death) and aggregate 
            statistical data on property damage from alleged defects in 
            a motor vehicle or in motor vehicle equipment; or
                ``(ii) customer satisfaction campaigns, consumer 
            advisories, recalls, or other activity involving the repair 
            or replacement of motor vehicles or items of motor vehicle 
            equipment.
            ``(B) Other data.--As part of the final rule promulgated 
        under paragraph (1), the Secretary may, to the extent that such 
        information may assist in the identification of defects related 
        to motor vehicle safety in motor vehicles and motor vehicle 
        equipment in the United States, require manufacturers of motor 
        vehicles or motor vehicle equipment to report, periodically or 
        upon request of the Secretary, such information as the 
        Secretary may request.
            ``(C) Reporting of possible defects.--The manufacturer of a 
        motor vehicle or motor vehicle equipment shall report to the 
        Secretary, in such manner as the Secretary establishes by 
        regulation, all incidents of which the manufacturer receives 
        actual notice which involve fatalities or serious injuries 
        which are alleged or proven to have been caused by a possible 
        defect in such manufacturer's motor vehicle or motor vehicle 
        equipment in the United States, or in a foreign country when 
        the possible defect is in a motor vehicle or motor vehicle 
        equipment that is identical or substantially similar to a motor 
        vehicle or motor vehicle equipment offered for sale in the 
        United States.
        ``(4) Handling and utilization of reporting elements.--
            ``(A) Secretary's specifications.--In requiring the 
        reporting of any information requested by the Secretary under 
        this subsection, the Secretary shall specify in the final rule 
        promulgated under paragraph (1)--
                ``(i) how such information will be reviewed and 
            utilized to assist in the identification of defects related 
            to motor vehicle safety;
                ``(ii) the systems and processes the Secretary will 
            employ or establish to review and utilize such information; 
            and
                ``(iii) the manner and form of reporting such 
            information, including in electronic form.
            ``(B) Information in possession of manufacturer.--The 
        regulations promulgated by the Secretary under paragraph (1) 
        may not require a manufacturer of a motor vehicle or motor 
        vehicle equipment to maintain or submit records respecting 
        information not in the possession of the manufacturer.
            ``(C) Disclosure.--None of the information collected 
        pursuant to the final rule promulgated under paragraph (1) 
        shall be disclosed pursuant to section 30167(b) unless the 
        Secretary determines the disclosure of such information will 
        assist in carrying out sections 30117(b) and 30118 through 
        30121.
            ``(D) Burdensome requirements.--In promulgating the final 
        rule under paragraph (1), the Secretary shall not impose 
        requirements unduly burdensome to a manufacturer of a motor 
        vehicle or motor vehicle equipment, taking into account the 
        manufacturer's cost of complying with such requirements and the 
        Secretary's ability to use the information sought in a 
        meaningful manner to assist in the identification of defects 
        related to motor vehicle safety.
        ``(5) Periodic review.--As part of the final rule promulgated 
    pursuant to paragraph (1), the Secretary shall specify procedures 
    for the periodic review and update of such rule.''.
    (c) Sale or Lease of Defective or Noncompliant Tire.--Section 30166 
of title 49, United States Code, as amended by subsection (b), is 
amended by adding at the end the following:
    ``(n) Sale or Lease of Defective or Noncompliant Tire.--
        ``(1) In general.--The Secretary shall, within 90 days of the 
    date of the enactment of the Transportation Recall Enhancement, 
    Accountability, and Documentation (TREAD) Act, issue a final rule 
    requiring any person who knowingly and willfully sells or leases 
    for use on a motor vehicle a defective tire or a tire which is not 
    compliant with an applicable tire safety standard with actual 
    knowledge that the manufacturer of such tire has notified its 
    dealers of such defect or noncompliance as required under section 
    30118(c) or as required by an order under section 30118(b) to 
    report such sale or lease to the Secretary.
        ``(2) Defect or noncompliance remedied or order not in 
    effect.--Regulations under paragraph (1) shall not require the 
    reporting described in paragraph (1) where before delivery under a 
    sale or lease of a tire--
            ``(A) the defect or noncompliance of the tire is remedied 
        as required by section 30120; or
            ``(B) notification of the defect or noncompliance is 
        required under section 30118(b) but enforcement of the order is 
        restrained or the order is set aside in a civil action to which 
        section 30121(d) applies.''.
    (d) Insurance Study.--The Secretary of Transportation shall conduct 
a study to determine the feasibility and utility of obtaining aggregate 
information on a regular and periodic basis regarding claims made for 
private passenger automobile accidents from persons in the business of 
providing private passenger automobile insurance or of adjusting 
insurance claims for such automobiles. Not later than 120 days after 
the date of the enactment of this Act, the Secretary shall transmit the 
results of such study to the Committee on Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate.

SEC. 4. REMEDIES WITHOUT CHARGE.

    Section 30120(g)(1) of title 49, United States Code, is amended 
by--
        (1) striking ``8 calendar years'' and inserting ``10 calendar 
    years''; and
        (2) striking ``3 calendar years'' and inserting ``5 calendar 
    years''.

SEC. 5. PENALTIES.

    (a) Civil Penalties.--Section 30165(a) of title 49, United States 
Code, is amended to read as follows:
    ``(a) Civil Penalties.--
        ``(1) In general.--A person that violates any of section 30112, 
    30115, 30117 through 30122, 30123(d), 30125(c), 30127, or 30141 
    through 30147, or a regulation prescribed thereunder, is liable to 
    the United States Government for a civil penalty of not more than 
    $5,000 for each violation. A separate violation occurs for each 
    motor vehicle or item of motor vehicle equipment and for each 
    failure or refusal to allow or perform an act required by any of 
    those sections. The maximum penalty under this subsection for a 
    related series of violations is $15,000,000.
        ``(2) Section 30166.--A person who violates section 30166 or a 
    regulation prescribed under that section is liable to the United 
    States Government for a civil penalty for failing or refusing to 
    allow or perform an act required under that section or regulation. 
    The maximum penalty under this paragraph is $5,000 per violation 
    per day. The maximum penalty under this paragraph for a related 
    series of daily violations is $15,000,000.''.
    (b) Criminal Penalties.--
        (1) In general.--Subchapter IV of chapter 301 of title 49, 
    United States Code, is amended by adding at the end the following:

``Sec. 30170. Criminal Penalties

    ``(a) Criminal Liability for Falsifying or Withholding 
Information.--
        ``(1) General rule.--A person who violates section 1001 of 
    title 18 with respect to the reporting requirements of section 
    30166, with the specific intention of misleading the Secretary with 
    respect to motor vehicle or motor vehicle equipment safety related 
    defects that have caused death or serious bodily injury to an 
    individual (as defined in section 1365(g)(3) of title 18), shall be 
    subject to criminal penalties of a fine under title 18, or 
    imprisoned for not more than 15 years, or both.
        ``(2) Safe harbor to encourage reporting and for whistle 
    blowers.--
            ``(A) Correction.--A person described in paragraph (1) 
        shall not be subject to criminal penalties under this 
        subsection if: (1) at the time of the violation, such person 
        does not know that the violation would result in an accident 
        causing death or serious bodily injury; and (2) the person 
        corrects any improper reports or failure to report within a 
        reasonable time.
            ``(B) Reasonable time and sufficiency of correction.--The 
        Secretary shall establish by regulation what constitutes a 
        reasonable time for the purposes of subparagraph (A) and what 
        manner of correction is sufficient for purposes of subparagraph 
        (A). The Secretary shall issue a final rule under this 
        subparagraph within 90 days of the date of the enactment of 
        this section.
            ``(C) Effective date.--Subsection (a) shall not take effect 
        before the final rule under subparagraph (B) takes effect.
    ``(b) Coordination with Department of Justice.--The Attorney 
General may bring an action, or initiate grand jury proceedings, for a 
violation of subsection (a) only at the request of the Secretary of 
Transportation.''.
        (2) Clerical amendment.--The subchapter analysis for subchapter 
    IV of chapter 301 of title 49, United States Code, is amended by 
    adding at the end the following:
``30170. Criminal penalties.''.

SEC. 6. ACCELERATION OF MANUFACTURER REMEDY PROGRAM.

    (a) Remedy Program.--Section 30120(c) of title 49, United States 
Code, is amended by inserting at the end thereof the following:
    ``(3) If the Secretary determines that a manufacturer's remedy 
program is not likely to be capable of completion within a reasonable 
time, the Secretary may require the manufacturer to accelerate the 
remedy program if the Secretary finds--
        ``(A) that there is a risk of serious injury or death if the 
    remedy program is not accelerated; and
        ``(B) that acceleration of the remedy program can be reasonably 
    achieved by expanding the sources of replacement parts, expanding 
    the number of authorized repair facilities, or both.
The Secretary may prescribe regulations to carry out this paragraph.''.
    (b) Reimbursement Prior to Recall.--Section 30120(d) of title 49, 
United States Code, is amended by inserting at the end thereof the 
following: ``A manufacturer's remedy program shall include a plan for 
reimbursing an owner or purchaser who incurred the cost of the remedy 
within a reasonable time in advance of the manufacturer's notification 
under subsection (b) or (c) of section 30118. The Secretary may 
prescribe regulations establishing what constitutes a reasonable time 
for purposes of the preceding sentence and other reasonable conditions 
for the reimbursement plan.''.

SEC. 7. SALES OF REPLACED TIRES.

    Section 30120(d) of title 49, United States Code, is amended by 
adding at the end the following: ``In the case of a remedy program 
involving the replacement of tires, the manufacturer shall include a 
plan addressing how to prevent, to the extent reasonably within the 
control of the manufacturer, replaced tires from being resold for 
installation on a motor vehicle, and how to limit, to the extent 
reasonably within the control of the manufacturer, the disposal of 
replaced tires in landfills, particularly through shredding, crumbling, 
recycling, recovery, and other alternative beneficial non-vehicular 
uses. The manufacturer shall include information about the 
implementation of such plan with each quarterly report to the Secretary 
regarding the progress of any notification or remedy campaigns.''.

SEC. 8. SALES OF REPLACED EQUIPMENT.

    Section 30120 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(j) Prohibition on Sales of Replaced Equipment.--No person may 
sell or lease any motor vehicle equipment (including a tire), for 
installation on a motor vehicle, that is the subject of a decision 
under section 30118(b) or a notice required under section 30118(c) in a 
condition that it may be reasonably used for its original purpose 
unless--
        ``(1) the defect or noncompliance is remedied as required by 
    this section before delivery under the sale or lease; or
        ``(2) notification of the defect or noncompliance is required 
    under section 30118(b) but enforcement of the order is set aside in 
    a civil action to which section 30121(d) applies.''.

SEC. 9. CERTIFICATION LABEL.

    Section 30115 of title 49, United States Code, is amended by 
inserting ``(a) In General.--'' before ``A manufacturer'' and by adding 
at the end the following:
    ``(b) Certification Label.--In the case of the certification label 
affixed by an intermediate or final stage manufacturer of a motor 
vehicle built in more than 1 stage, each intermediate or final stage 
manufacturer shall certify with respect to each applicable Federal 
motor vehicle safety standard--
        ``(1) that it has complied with the specifications set forth in 
    the compliance documentation provided by the incomplete motor 
    vehicle manufacturer in accordance with regulations prescribed by 
    the Secretary; or
        ``(2) that it has elected to assume responsibility for 
    compliance with that standard.
If the intermediate or final stage manufacturer elects to assume 
responsibility for compliance with the standard covered by the 
documentation provided by an incomplete motor vehicle manufacturer, the 
intermediate or final stage manufacturer shall notify the incomplete 
motor vehicle manufacturer in writing within a reasonable time of 
affixing the certification label. A violation of this subsection shall 
not be subject to a civil penalty under section 30165.''.

SEC. 10. ENDURANCE AND RESISTANCE STANDARDS FOR TIRES.

    The Secretary of Transportation shall conduct a rulemaking to 
revise and update the tire standards published at 49 CFR 571.109 and 49 
CFR 571.119. The Secretary shall complete the rulemaking under this 
section not later than June 1, 2002.

SEC. 11. IMPROVED TIRE INFORMATION.

    (a) Tire Labeling.--Within 30 days after the date of the enactment 
of this Act, the Secretary of Transportation shall initiate a 
rulemaking proceeding to improve the labeling of tires required by 
section 30123 of title 49, United States Code to assist consumers in 
identifying tires that may be the subject of a decision under section 
30118(b) or a notice required under section 30118(c). The Secretary 
shall complete the rulemaking not later than June 1, 2002.
    (b) Inflation Levels and Load Limits.--In the rulemaking initiated 
under subsection (a), the Secretary may take whatever additional action 
is appropriate to ensure that the public is aware of the importance of 
observing motor vehicle tire load limits and maintaining proper tire 
inflation levels for the safe operation of a motor vehicle. Such 
additional action may include a requirement that the manufacturer of 
motor vehicles provide the purchasers of the motor vehicles information 
on appropriate tire inflation levels and load limits if the Secretary 
determines that requiring such manufacturers to provide such 
information is the most appropriate way such information can be 
provided.

SEC. 12. ROLLOVER TESTS.

    Section 30117 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(c) Rollover Tests.--
        ``(1) Development.--Not later than 2 years from the date of the 
    enactment of this subsection, the Secretary shall--
            ``(A) develop a dynamic test on rollovers by motor vehicles 
        for the purposes of a consumer information program; and
            ``(B) carry out a program of conducting such tests.
        ``(2) Test results.--As the Secretary develops a test under 
    paragraph (1)(A), the Secretary shall conduct a rulemaking to 
    determine how best to disseminate test results to the public.
        ``(3) Motor vehicles covered.--This subsection applies to motor 
    vehicles, including passenger cars, multipurpose passenger 
    vehicles, and trucks, with a gross vehicle weight rating of 10,000 
    pounds or less. A motor vehicle designed to provide temporary 
    residential accommodations is not covered.''.

SEC. 13. TIRE PRESSURE WARNING.

    Not later than 1 year after the date of the enactment of this Act, 
the Secretary of Transportation shall complete a rulemaking for a 
regulation to require a warning system in new motor vehicles to 
indicate to the operator when a tire is significantly under inflated. 
Such requirement shall become effective not later than 2 years after 
the date of the completion of such rulemaking.

SEC. 14. IMPROVING THE SAFETY OF CHILD RESTRAINTS.

    (a) In General.--Not later than 12 months after the date of the 
enactment of this Act, the Secretary of Transportation shall initiate a 
rulemaking for the purpose of improving the safety of child restraints, 
including minimizing head injuries from side impact collisions.
    (b) Elements for Consideration.--In the rulemaking required by 
subsection (a), the Secretary shall consider--
        (1) whether to require more comprehensive tests for child 
    restraints than the current Federal motor vehicle safety standards 
    requires, including the use of dynamic tests that--
            (A) replicate an array of crash conditions, such as side-
        impact crashes and rear-impact crashes; and
            (B) reflect the designs of passenger motor vehicles as of 
        the date of the enactment of this Act;
        (2) whether to require the use of anthropomorphic test devices 
    that--
            (A) represent a greater range of sizes of children 
        including the need to require the use of an anthropomorphic 
        test device that is representative of a ten-year-old child; and
            (B) are Hybrid III anthropomorphic test devices;
        (3) whether to require improved protection from head injuries 
    in side-impact and rear-impact crashes;
        (4) how to provide consumer information on the physical 
    compatibility of child restraints and vehicle seats on a model-by-
    model basis;
        (5) whether to prescribe clearer and simpler labels and 
    instructions required to be placed on child restraints;
        (6) whether to amend Federal Motor Vehicle Safety Standard No. 
    213 (49 CFR 571.213) to cover restraints for children weighing up 
    to 80 pounds;
        (7) whether to establish booster seat performance and 
    structural integrity requirements to be dynamically tested in 3-
    point lap and shoulder belts;
        (8) whether to apply scaled injury criteria performance levels, 
    including neck injury, developed for Federal Motor Vehicle Safety 
    Standard No. 208 to child restraints and booster seats covered by 
    in Federal Motor Vehicle Safety Standard No. 213; and
        (9) whether to include child restraint in each vehicle crash 
    tested under the New Car Assessment Program.
    (c) Report to Congress.--If the Secretary does not incorporate any 
element described in subsection (b) in the final rule, the Secretary 
shall explain, in a report to the Senate Committee on Commerce, 
Science, and Transportation and the House of Representatives Committee 
on Commerce submitted within 30 days after issuing the final rule, 
specifically why the Secretary did not incorporate any such element in 
the final rule.
    (d) Completion.--Notwithstanding any other provision of law, the 
Secretary shall complete the rulemaking required by subsection (a) not 
later than 24 months after the date of the enactment of this Act.
    (e) Child Restraint Defined.--In this section, the term ``child 
restraint'' has the meaning given the term ``Child restraint system'' 
in section 571.213 of title 49, Code of Federal Regulations (as in 
effect on the date of the enactment of this Act).
    (f) Funding.--For each fiscal year, of the funds made available to 
the Secretary for activities relating to safety, not less than $750,000 
shall be made available to carry out crash testing of child restraints.
    (g) Child Restraint Safety Ratings Program.--No later than 12 
months after the date of the enactment of this Act, the Secretary of 
Transportation shall issue a notice of proposed rulemaking to establish 
a child restraint safety rating consumer information program to provide 
practicable, readily understandable, and timely information to 
consumers for use in making informed decisions in the purchase of child 
restraints. No later than 24 months after the date of the enactment of 
this Act the Secretary shall issue a final rule establishing a child 
restraint safety rating program and providing other consumer 
information which the Secretary determines would be useful consumers 
who purchase child restraint systems.
    (h) Booster Seat Study.--In addition to consideration of booster 
seat performance and structural integrity contained in subsection 
(b)(7), not later than 12 months after the date of the enactment of 
this Act, the Secretary of Transportation shall initiate and complete a 
study, taking into account the views of the public, on the use and 
effectiveness of automobile booster seats for children, compiling 
information on the advantages and disadvantages of using booster seats 
and determining the benefits, if any, to children from use of booster 
with lap and shoulder belts compared to children using lap and shoulder 
belts alone, and submit a report on the results of that study to the 
Congress.
    (i) Booster Seat Education Program.--The Secretary of 
Transportation within 1 year after the date of the enactment of this 
Act shall develop 5 year strategic plan to reduce deaths and injuries 
caused by failure to use the appropriate booster seat in the 4 to 8 
year old age group by 25 percent.

SEC. 15. IMPROVING CRITERIA USED IN A RECALL.

    (a) Review of Standards and Criteria Used in Opening a Defect or 
Noncompliance Investigation.--The Secretary shall, not later than 30 
days after the date of the enactment of this Act, undertake a 
comprehensive review of all standards, criteria, procedures, and 
methods, including data management and analysis used by the National 
Highway Traffic Safety Administration in determining whether to open a 
defect or noncompliance investigation pursuant to subchapter II or IV 
of chapter 301 of title 49, United States Code, and shall undertake 
such steps as may be necessary to update and improve such standards, 
criteria, procedures, or methods, including data management and 
analysis.
    (b) Report to Congress.--Not later than 1 year after the date of 
the enactment of this Act, the Secretary shall transmit to the 
Committee on Commerce of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate a report 
describing the Secretary's findings and actions under subsection (a).

SEC. 16. FOLLOW-UP REPORT.

    One year after the date of the enactment of this Act, the Secretary 
of Transportation shall report to the Congress on the implementation of 
the amendments made by this Act and any recommendations for additional 
amendments for consumer safety.

SEC. 17. AUTHORIZATION OF APPROPRIATIONS.

    In addition to any sums authorized to be appropriated by section 
30104 or 32102 of title 49, United States Code, there is authorized to 
be appropriated to the Secretary of Transportation for the National 
Highway Traffic Safety Administration for fiscal year 2001 $9,100,000 
to carry out this Act and the amendments made by this Act. Such funds 
shall not be available for the general administrative expenses of the 
Secretary or the Administration.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.