[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3059 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 3059

    To amend title 49, United States Code, to require motor vehicle 
   manufacturers and motor vehicle equipment manufacturers to obtain 
  information and maintain records about potential safety defects in 
   their foreign products that may affect the safety of vehicles and 
        equipment in the United States, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 15, 2000

 Mr. McCain (for himself, Mr. Gorton, and Mr. Specter) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
    To amend title 49, United States Code, to require motor vehicle 
   manufacturers and motor vehicle equipment manufacturers to obtain 
  information and maintain records about potential safety defects in 
   their foreign products that may affect the safety of vehicles and 
        equipment in the United States, 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 ``Motor Vehicle and Motor Vehicle 
Equipment Defect Notification Improvement Act''.

SEC. 2. IMPROVED INTERNATIONAL COOPERATION CONCERNING SAFETY-RELATED 
              DEFECTS.

    (a) In General.--Subchapter I of chapter 301 of title 49, United 
States Code, is amended by adding at the end the following:
``Sec.  30106. International cooperation
    ``(a) In General.--The Secretary of Transportation may cooperate 
with the transportation authorities of foreign countries to enhance 
motor vehicle and traffic safety by exchanging information with those 
authorities related to motor vehicle and motor vehicle equipment safety 
defects, noncompliance with motor vehicle safety and motor vehicle 
equipment standards and regulations.
    ``(b) Confidential Information.--The Secretary may authorize the 
disclosure of confidential commercial information submitted to the 
National Highway Traffic Safety Administration, or incorporated in 
agency-prepared records, to a foreign governmental agency that performs 
functions similar to those performed by the National Highway Traffic 
Safety Administration as part of cooperative law enforcement or 
regulatory efforts if--
            ``(1) the Secretary determines that disclosure would be in 
        the interest of improved motor vehicle safety; and
            ``(2) the foreign governmental agency provides a statement 
        in writing to the Secretary that--
                    ``(A) establishes the agency's authority to protect 
                confidential commercial information from public 
                disclosure; and
                    ``(B) commits the foreign governmental agency not 
                to disclose any such information provided to it under 
                this subsection without the written permission of the 
                person to whom the information relates or a written 
                confirmation from the National Highway Traffic Safety 
                Administration that the information has ceased to 
                qualify as confidential commercial information under 
                United States law.
    ``(c) Nonpublic Information.--The Secretary may authorize the 
disclosure of nonpublic, pre-decisional documents concerning 
regulations or other regulatory requirements of the National Highway 
Traffic Safety Administration or other Federal agencies, and other 
nonpublic information relevant to agency activities, to a foreign 
governmental agency that performs functions similar to those performed 
by the National Highway Traffic Safety Administration as part of 
cooperative law enforcement or regulatory activity if--
            ``(1) the Secretary determines that disclosure is 
        reasonably necessary to facilitate motor vehicle safety related 
        cooperative law enforcement or regulatory activity; and
            ``(2) the foreign governmental agency provides a statement 
        in writing to the Secretary that--
                    ``(A) establishes the foreign governmental agency's 
                authority to protect the document or information from 
                public disclosure; and
                    ``(B) commits the foreign governmental agency not 
                to disclose any document or information provided to it 
                under this subsection without a written confirmation 
                from the National Highway Traffic Safety Administration 
                that it has no objection to disclosure of the document 
                or that the information has ceased to qualify as 
                nonpublic information under United States law.
    ``(d) Limit on Disclosure.--Notwithstanding any other provision of 
law, a document or information disclosed under subsection (b) or (c) to 
a foreign governmental agency is not required to be disclosed to the 
public under section 552 of title 5, United States Code, or any other 
provision of law, unless the information has ceased to qualify as 
confidential commercial information under United States law.''.
    (b) Clerical Amendment.--The chapter analysis for subchapter I of 
chapter 301 of title 49, United States Code, is amended by adding at 
the end the following:

``30106. International cooperation''.

SEC. 3. INTERNATIONAL AGREEMENT FOR RECALLS OF MOTOR VEHICLES OR MOTOR 
              VEHICLE PARTS.

    (a) International Agreement.--The President is authorized and 
requested to initiate, within 60 days after the date of the enactment 
of this Act, negotiations for an international agreement governing the 
recall by manufacturers of motor vehicles and motor vehicle equipment 
with safety-related defects.
    (b) Purpose.--The purpose of these negotiations shall be to 
establish an international agreement under which government officials 
agree to cooperate in furthering global transparency with respect to 
motor vehicle and motor vehicle equipment recalls so as to promote 
consumer safety and to enhance consumer confidence.
    (c) Guidelines.--The international agreement negotiated under 
subsection (a) should incorporate the following provisions:
            (1) Each signatory will designate a competent authority 
        within its national government as the responsible authority for 
        disseminating, to the public and to other foreign authorities, 
        information about recalls of motor vehicles or motor vehicle 
        equipment.
            (2) Each signatory will cooperate at the international 
        level through its designated authorities through information 
        exchange, communication, and joint action.
            (3) Each signatory will make available, to the public and 
        to other governments, through an Internet site, at a minimum, 
        the following information:
                    (A) The name, title, and contact information for 
                the competent authority for motor vehicle or motor 
                vehicle equipment recalls.
                    (B) The names of any motor vehicle or motor vehicle 
                equipment manufacturer in its jurisdiction that has 
                issued a recall, the company's contact information, and 
                the specific motor vehicle or motor vehicle equipment 
                that is the subject of a recall.
                    (C) The country in which the recall is in effect, 
                and the date of the recall.
            (4) Each signatory, in the interest of getting all relevant 
        information to its competent authority and having the authority 
        share it with the competent authorities of other countries, 
        will disseminate widely the final guidelines negotiated to all 
        relevant governmental departments, agencies, and branches of 
        government.
            (5) Each signatory that is an advanced industrialized 
        country will seek to assist other countries that are 
        signatories to implement the agreement, and to aid efforts by 
        those countries to ensure compliance with the agreement.
            (6) Each signatory will establish a framework to conduct 
        regular oversight and review to assess the operation and 
        effectiveness of the agreement and to create a forum in which 
        each signatory can share with other signatories the laws and 
        regulations it has adopted to implement the agreement.
    (d) Guidelines for Enterprises Engaged in Trade.--The international 
agreement negotiated under subsection (a) should incorporate the 
following guidelines on recalls for manufacturers engaged in exporting 
motor vehicles or motor vehicle equipment or manufacturing motor 
vehicle equipment for inclusion in motor vehicles to be exported:
            (1) Transparency and disclosure.--Each such manufacturer 
        should disclose all relevant information regarding any recall 
        it undertakes to the competent authority in the country in 
        which it initiates the recall and to the competent authority in 
        the country in which it is incorporated. The information should 
        be extensive enough to facilitate public notice described in 
        subsection (c)(3).
            (2) Consumer interests.--Each such manufacturer should be 
        cognizant of the fact that consumers cross international 
        borders and often take vehicles with them, and should, to the 
        greatest extent practical, make consumers aware of recalls of 
        its motor vehicles or motor vehicle equipment, particularly in 
        countries that border or are in proximity to a country in which 
        the recall was initiated.
            (3) Cooperation with regulatory authorities.--Each such 
        manufacturer should cooperate promptly with the national 
        authorities in any country that is requesting information about 
        a motor vehicle or motor vehicle equipment recall in an effort 
        to safeguard consumer safety.

SEC. 4. COMPLIANCE REQUIRED FOR CERTIFICATION.

    Section 30115 of title 49, United States Code, is amended by adding 
at the end the following: ``A person may not affix a certification 
label or tag to a motor vehicle or an item of motor vehicle equipment 
under this section unless that person has established, through testing 
or engineering analyses, that the vehicle or equipment complies with 
all applicable motor vehicle safety standards prescribed under this 
chapter.''.

SEC. 5. DEFECT AND NONCOMPLIANCE NOTIFICATION FOR OEM EQUIPMENT; 
              ACCIDENT DATA.

    (a) In General.--Section 30118 of title 49, United States Code, is 
amended--
            (1) by striking ``motor vehicle or replacement equipment'' 
        in subsections (a), (b), and (c) and inserting ``motor vehicle, 
        original equipment, or replacement equipment'';
            (2) by redesignating subsections (d) and (e) as subsections 
        (e) and (f); and
            (3) by inserting after subsection (c) the following:
    ``(d) Review of Safety-related Data.--A manufacturer of a motor 
vehicle, original equipment, or replacement equipment shall review and 
consider information regarding accidents and incidents involving motor 
vehicles or equipment manufactured by that manufacturer (or a related 
party) that resulted in fatalities, serious injuries, or fires, 
including information about such accidents and incidents outside the 
United States, and notify the Secretary if the manufacturer has reason 
to believe that the vehicle or equipment involved has a safety-related 
defect or fails to comply with any motor vehicle safety standard 
prescribed under this chapter.''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect 180 days after the date of enactment of this Act.

SEC. 6. EXTENSION OF TIME FOR NO-CHARGE REMEDIES.

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

SEC. 7. USED MOTOR VEHICLES.

    Section 30126 of title 49, United States Code, is amended--
            (1) by inserting ``(a) In General.--'' before ``To 
        ensure''; and
            (2) by adding at the end the following:
    ``(b) Sales of Used Motor Vehicles for Which Notice Has Issued.--
            ``(1) In general.--A dealer may not sell a used motor 
        vehicle, except for purposes other than resale, or lease a used 
        motor vehicle to another, unless the dealer--
                    ``(A) informs the purchaser or lessee of any 
                notification of a defect or noncompliance under section 
                30118(b) or (c) with respect to that vehicle that has 
                not been remedied; and
                    ``(B) either--
                            ``(i) offers to remedy the defect or 
                        noncompliance (within the meaning of such term 
                        as used in section 30120); or
                            ``(ii) obtains from the purchaser or lessee 
                        a signed statement in writing acknowledging 
                        receipt of a document that describes the defect 
                        or noncompliance (including any relevant 
                        information from such a notification) and the 
                        offer.
            ``(2) Definitions.--In this subsection:
                    ``(A) Dealer.--Notwithstanding section 30102(a)(1), 
                the term `dealer' means a person who sold at least 10 
                motor vehicles to purchasers for purposes other than 
                resale within the 12 months preceding the sale of the 
                vehicle referred to in paragraph (1). For purposes of 
                this subparagraph, the term motor vehicle does not 
                include a motor vehicle sold for parts or scrap as a 
                junk automobile (as defined in section 30501(4)) or a 
                motor vehicle that is a salvage vehicle (as defined in 
                section 30501(7)).
                    ``(B) Used motor vehicle.--The term `used motor 
                vehicle' means a motor vehicle that has previously been 
                purchased for purposes other than resale.''.

SEC. 8. SCHOOL BUSES.

    Section 30125 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(d) Operation After Notification.--
            ``(1) In general.--A person who owns or leases a school bus 
        who receives a notice of a defect or noncompliance for that 
        school bus under section 30118(b) or (c) may not operate the 
        school bus as a school bus for more than 30 days after receipt 
        of the notice unless the defect or noncompliance is remedied 
        (within the meaning of that term as used in section 30120) or 
        the Secretary grants a waiver. The Secretary may grant a waiver 
        from the prohibition in the preceding sentence, or extend the 
        30-day period, if the Secretary, in the Secretary's sole 
        discretion, finds that the waiver or extension is in the public 
        interest.''.

SEC. 9. COMMERCIAL PASSENGER VEHICLES.

    (a) In General.--Subchapter II of chapter 301 of title 49, United 
States Code, is amended by adding at the end thereof the following:
``Sec.  30128. Commercial passenger vehicles
    ``A person who owns or leases a motor vehicle used to transport 
passengers for compensation who receives a notice of a defect or 
noncompliance for that motor vehicle under section 30118(b) or (c) may 
not operate the motor vehicle for that purpose until the defect or 
noncompliance is remedied (within the meaning of that term as used in 
section 30120).''.
    (b) Clerical Amendment.--The chapter analysis for subchapter II of 
chapter 301 of title 49, United States Code, is amended by adding at 
the end the following:

``30128. Commercial passenger vehicles''.

SEC. 10. PENALTIES.

    (a) Civil Penalties.--Section 30165(a) of title 49, United States 
Code, is amended to read as follows:
    ``(a) In General.--A person that violates any of sections 30112, 
30115, 30117 through 30122, 30123(d), 30125(c) or (d), 30126(b), 30127, 
30128, 30141 through 30147, or 30166, 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 
paragraph for a related series of violations is $15,000,000, except 
that no such maximum applies in the case of a willful and intentional 
violation.''.
    (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) Defects That Cause Grievous Bodily Harm.--It is unlawful for 
a manufacturer to introduce a motor vehicle or motor vehicle equipment 
into interstate commerce with a safety-related defect that causes 
grievous bodily harm to an individual if the manufacturer knows of the 
defect at the time the vehicle or equipment is introduced into 
intrestate commerce.
    ``(b) Defects That Cause Fatalities.--It is unlawful for a 
manufacturer to introduce a motor vehicle or motor vehicle equipment 
into interstate commerce with a safety-related defect that causes the 
death of an individual if the manufacturer knows of the defect at the 
time the vehicle or equipment is introduced into intrestate commerce.
    ``(c) Penalties.--Violation of subsection (a) is punishable by fine 
of not more than $10,000, imprisonment for not more than 5 years, or 
both. Violation of subsection (b) is punishable by a fine of not more 
than $50,000, imprisonment for not more than 15 years, or both.''.
            (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. 11. RECORDS AND REPORTS.

    (a) Recordkeeping and Reporting Requirements.--Section 30166(e) of 
title 49, United States Code, is amended to read as follows:
    ``(e) Records and Reports.--
            ``(1) In general.--The Secretary of Transportation is 
        authorized to require a manufacturer of a motor vehicle or 
        motor vehicle equipment to keep records, and a manufacturer, 
        distributor, or dealer to make reports, to enable the Secretary 
        to decide whether the manufacturer, distributor, or dealer has 
        complied or is complying with this chapter or a regulation 
        prescribed or order issued under this chapter. This subsection 
        does not impose a recordkeeping requirement on a distributor or 
        dealer in addition to those imposed under subsection (f) of 
        this section and section 30117(b) or a regulation prescribed or 
        order issued under subsection (f) or section 30117(b).
            ``(2) Accidents and incidents.--The Secretary of 
        Transportation shall require a manufacturer of a motor vehicle 
        or motor vehicle equipment to keep records and to make reports 
        if the manufacturer has received information with regard to 
        accidents or other incidents involving motor vehicles or 
        equipment manufactured by that manufacturer (or a related 
        party) that resulted in fatalities, serious injuries, or fires. 
        The Secretary is authorized to require that the reports be made 
        when the information is received by the manufacturer, 
        periodically, or in response to an order or request by the 
        Secretary.
            ``(3) Warranty, claim, and other information.--The 
        Secretary of Transportation is authorized to require a 
        manufacturer of a motor vehicle or motor vehicle equipment to 
        keep records and to make reports with regard to warranty or 
        adjustment information, consumer complaints, consumer 
        satisfaction campaigns, lawsuits (but only with respect to 
        lawsuits for which the manufacturer has been named as a 
        defendant in 3 or more lawsuits with respect to the same 
        defect), personal injury claims, and other safety-related 
        information relating to actual or potential defects. The 
        Secretary is authorized to require a manufacturer of motor 
        vehicle equipment to provide information to the Secretary 
        related to the number, or other identifying characteristic, of 
        equipment made or sold by that manufacturer. The Secretary is 
        authorized to require that the reports be made when the 
        information is received by the manufacturer, periodically, or 
        in response to an order or request by the Secretary.
            ``(4) Access to defect and recall dealer communications.--
        The Secretary of Transportation is authorized to require a 
        manufacturer of a motor vehicle or motor vehicle equipment to 
        provide reasonable access to the manufacturer's communications 
        related to defects and recalls to the same extent and in the 
        same manner as provided to the manufacturer's dealers.
            ``(5) Insurors.--The Secretary of Transportation is 
        authorized to require a person in the business of providing 
        automobile insurance or resolving claims under insurance 
        policies to keep records or to make reports, upon receiving 
        information, periodically, or in response to an order or 
        specific request to make a report regarding accidents or 
        incidents in vehicles and equipment that result in fatalities, 
        serious injuries, or fires. The information required may 
        include the vehicle identification number, the insured's name, 
        address, and telephone number. The Secretary shall treat any 
        such information with respect to an insured person as 
        confidential information.''.
    (b) Communications about Defects and Noncompliance.--Section 
30166(f) of title 49, United States Code, is amended by striking 
``communication to'' and inserting ``communication to, or made 
available to,''.
    (c) Definitions.--Section 30166(a) of title 49, United States Code, 
is amended to read as follows:
    ``(a) Definitions.--Notwithstanding section 30102(a), in this 
section:
            ``(1) Motor vehicle accident.--The term `motor vehicle 
        accident' means an occurrence associated with the maintenance 
        or operation of a motor vehicle or motor vehicle equipment 
        resulting in personal injury, death, or property damage.
            ``(2) Dealer.--The term `dealer' means a person selling and 
        distributing new motor vehicles or motor vehicle equipment, 
        inside or outside the United States, primarily to purchasers 
        that in good faith purchase the vehicles or equipment other 
than for resale.
            ``(3) Distributor.--The term `distributor' means a person 
        primarily selling and distributing motor vehicles or motor 
        vehicle equipment, inside or outside the United States, for 
        resale.
            ``(4) Manufacturer.--The term `manufacturer'--
                    ``(A) means a person--
                            ``(i) manufacturing or assembling motor 
                        vehicles or motor vehicle equipment; or
                            ``(ii) importing motor vehicles or motor 
                        vehicle equipment for resale; and
                    ``(B) includes--
                            ``(i) a person incorporated within or with 
                        its principal place of business in the United 
                        States and its direct and indirect domestic and 
                        foreign subsidiaries and affiliates;
                            ``(ii) a person with its principal place of 
                        business in a foreign country, including its 
                        direct or indirect domestic and foreign 
                        subsidiaries and affiliates, any of which 
                        exports motor vehicles or motor vehicle 
                        equipment into the United States; and
                            ``(iii) a person with its principal place 
                        of business in a foreign country, including its 
                        direct or indirect domestic and foreign 
                        subsidiaries and affiliates, any of which 
                        manufactures or assembles motor vehicles or 
                        motor vehicle equipment in the United States.
            ``(5) Owner.--The term `owner' means an owner inside or 
        outside the United States.
            ``(6) Purchaser.--The term `purchaser' means a purchaser 
        inside or outside the United States.
            ``(7) Person.--The term `person' means any manufacturer, 
        distributor, or dealer and any other person within the United 
        States that may have information related to this chapter.''.
    (d) Effective Date.--The amendments made by this section take 
effect 180 days after the date of enactment of this Act.

SEC. 12. INCREASE IN ODOMETER PENALTIES.

    (a) Civil Penalty.--Section 32709(a)(1) of title 49, United States 
Code, is amended--
            (1) by striking ``$2,000'' and inserting ``$5,000''; and
            (2) by striking ``$100,000.'' and inserting 
        ``$1,000,000.''.
    (b) Private Civil Actions.--Section 32710(a) of title 49, United 
States Code, is amended by striking ``$1,500,'' and inserting 
``$10,000,''.

SEC. 13. REVISED TIRE SAFETY STANDARDS.

    Within 30 days after the date of enactment of this Act, the 
Secretary of Transportation shall initiate a rulemaking proceeding to 
review and revise as necessary the motor vehicle safety standards for 
pneumatic tires prescribed under chapter 301 of title 49, United States 
Code. The Secretary shall complete the rulemaking no later than June 1, 
2001.

SEC. 14. IMPROVED TIRE SIDEWALL MARKINGS.

    Within 30 days after the date of enactment of this Act, the 
Secretary of Transportation shall initiate a rulemaking proceeding to 
improve the labelling of tires required by section 30123 of title 49, 
United States Code, to facilitate improved public understanding of load 
limits and appropriate tire inflation levels. The Secretary shall also 
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.

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