[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5164 Reported in House (RH)]






                                                 Union Calendar No. 571
106th CONGRESS
  2d Session
                                H. R. 5164

                          [Report No. 106-954]

 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 13, 2000

   Mr. Upton (for himself, Mr. Tauzin, Mr. Markey, Mrs. Wilson, Mr. 
Boucher, Mr. Whitfield, Mr. Green of Texas, Mr. Rogan, Mr. Waxman, Mr. 
Bilbray, Mr. Fossella, Mr. Gordon, Ms. DeGette, Mr. Luther, Ms. Eshoo, 
and Ms. McCarthy of Missouri) introduced the following bill; which was 
                 referred to the Committee on Commerce

                            October 10, 2000

   Additional sponsors: Mr. Dingell, Mrs. Cubin, Mr. Greenwood, Mr. 
Ehrlich, Ms. Slaughter, Mr. Camp, Mr. Phelps, Mr. Reynolds, Mr. Frost, 
   Mr. Barrett of Wisconsin, Ms. Rivers, Ms. Berkley, Mr. Blunt, Mr. 
Boehlert, Mr. George Miller of California, Mr. LaFalce, Mr. Wynn, Mrs. 
Thurman, Mr. Terry, Mrs. Roukema, Mr. Moore, Mr. Deutsch, Mr. Shimkus, 
               Mr. LaTourette, Mr. Klink, and Mr. Gillmor

                            October 10, 2000

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                          September 13, 2000]

_______________________________________________________________________

                                 A BILL


 
 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. 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 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; and
                            ``(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 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 permit 
                        such information to be reviewed and utilized; 
                        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 and 
                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 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 this subsection, 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 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. 3. 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. 4. 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 sections 
        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 grievous bodily harm 
        to an individual, shall be subject to criminal penalties of a 
        fine under title 18, United States Code, 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 such 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 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. 5. ACCELERATION OF MANUFACTURER 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.''.

SEC. 6. 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. The manufacturer shall include 
information about the implementation of such plan with each quarterly 
report to the Secretary about the progress about the notification and 
remedy campaign.''.

SEC. 7. SALES OF REPLACED EQUIPMENT.

    Section 30112 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(c) Prohibition on Sales of Replaced Equipment.--No person may 
sell any item of 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) or 
was removed from a motor vehicle as part of an action taken under 
section 30120(a) or 30120(b) in a condition that it may be used for its 
original purpose unless the item of motor vehicle equipment is no 
longer defective or is otherwise free of the condition that was the 
subject of the action taken under section 30120(a) or 30120(b).''.

SEC. 8. 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. 9. ENDURANCE AND RESISTANCE STANDARDS FOR TIRES.

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

SEC. 10. IMPROVED TIRE INFORMATION.

    (a) Tire Labeling.--Within 30 days after the date of 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 recall by the manufacturer. 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 to 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 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. 11. 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 
        enactment of this subsection, the Secretary of Transportation, 
        acting through the National Highway Traffic Safety 
        Administration, 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, acting through the National 
        Highway Traffic Safety Administration, shall conduct a 
        rulemaking to determine how best to disseminate test results to 
        the public.
            ``(3) Motor vehicles covered.--This subsection applies to 
        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. 12. TIRE PRESSURE WARNING.

    Not later than one year after the date of enactment of this Act, 
the Secretary of Transportation, acting through the National Highway 
Traffic Safety Administration, shall complete a rulemaking for a 
regulation to require a warning system in a motor vehicle 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. 13. IMPROVING CRITERIA USED IN A RECALL.

    (a) Review of Standards and Criteria Used in Opening a Defect 
Investigation.--The Secretary shall, not later than 30 days after the 
date of enactment of this Act, undertake a comprehensive review of all 
standards, criteria, procedures, and methods, including data management 
and analytical capabilities, used by the National Highway Traffic 
Safety Administration in determining whether to open a defect 
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 analytical capabilities.
    (b) Report to Congress.--Not later than 1 year after the date of 
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. 14. FOLLOW-UP REPORT.

    One year after the date of enactment of this Act, the Administrator 
of the National Highway Traffic Safety Administration 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. 15. AUTHORIZATION OF APPROPRIATIONS.

    In addition to any sums authorized to be appropriated by sections 
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.




                                                 Union Calendar No. 571

106th CONGRESS

  2d Session

                               H. R. 5164

                          [Report No. 106-954]

_______________________________________________________________________

                                 A BILL

 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.

_______________________________________________________________________

                            October 10, 2000

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed