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






                                                       Calendar No. 839
106th CONGRESS
  2d Session
                                S. 3059

                          [Report No. 106-423]

    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

           September 27 (legislative day, September 22), 2000

               Reported by Mr. McCain, with an amendment
 [Strike all after the enacting clause and insert the part printed in 
                                italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Motor Vehicle and Motor 
Vehicle Equipment Defect Notification Improvement Act''.</DELETED>

<DELETED>SEC. 2. IMPROVED INTERNATIONAL COOPERATION CONCERNING SAFETY-
              RELATED DEFECTS.</DELETED>

<DELETED>    (a) In General.--Subchapter I of chapter 301 of title 49, 
United States Code, is amended by adding at the end the 
following:</DELETED>
<DELETED>``Sec.  30106. International cooperation</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) the Secretary determines that disclosure 
        would be in the interest of improved motor vehicle safety; 
        and</DELETED>
        <DELETED>    ``(2) the foreign governmental agency provides a 
        statement in writing to the Secretary that--</DELETED>
                <DELETED>    ``(A) establishes the agency's authority 
                to protect confidential commercial information from 
                public disclosure; and</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) the Secretary determines that disclosure is 
        reasonably necessary to facilitate motor vehicle safety related 
        cooperative law enforcement or regulatory activity; 
        and</DELETED>
        <DELETED>    ``(2) the foreign governmental agency provides a 
        statement in writing to the Secretary that--</DELETED>
                <DELETED>    ``(A) establishes the foreign governmental 
                agency's authority to protect the document or 
                information from public disclosure; and</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (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:</DELETED>

<DELETED>``30106. International cooperation''.

<DELETED>SEC. 3. INTERNATIONAL AGREEMENT FOR RECALLS OF MOTOR VEHICLES 
              OR MOTOR VEHICLE PARTS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (c) Guidelines.--The international agreement negotiated 
under subsection (a) should incorporate the following 
provisions:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Each signatory will cooperate at the 
        international level through its designated authorities through 
        information exchange, communication, and joint 
        action.</DELETED>
        <DELETED>    (3) Each signatory will make available, to the 
        public and to other governments, through an Internet site, at a 
        minimum, the following information:</DELETED>
                <DELETED>    (A) The name, title, and contact 
                information for the competent authority for motor 
                vehicle or motor vehicle equipment recalls.</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (C) The country in which the recall is in 
                effect, and the date of the recall.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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:</DELETED>
        <DELETED>    (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).</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 4. COMPLIANCE REQUIRED FOR CERTIFICATION.</DELETED>

<DELETED>    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.''.</DELETED>

<DELETED>SEC. 5. DEFECT AND NONCOMPLIANCE NOTIFICATION FOR OEM 
              EQUIPMENT; ACCIDENT DATA.</DELETED>

<DELETED>    (a) In General.--Section 30118 of title 49, United States 
Code, is amended--</DELETED>
        <DELETED>    (1) by striking ``motor vehicle or replacement 
        equipment'' in subsections (a), (b), and (c) and inserting 
        ``motor vehicle, original equipment, or replacement 
        equipment'';</DELETED>
        <DELETED>    (2) by redesignating subsections (d) and (e) as 
        subsections (e) and (f); and</DELETED>
        <DELETED>    (3) by inserting after subsection (c) the 
        following:</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) Effective Date.--The amendments made by subsection (a) 
take effect 180 days after the date of enactment of this Act.</DELETED>

<DELETED>SEC. 6. EXTENSION OF TIME FOR NO-CHARGE REMEDIES.</DELETED>

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

<DELETED>SEC. 7. USED MOTOR VEHICLES.</DELETED>

<DELETED>    Section 30126 of title 49, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) by inserting ``(a) In General.--'' before ``To 
        ensure''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(b) Sales of Used Motor Vehicles for Which Notice Has 
Issued.--</DELETED>
        <DELETED>    ``(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--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(B) either--</DELETED>
                        <DELETED>    ``(i) offers to remedy the defect 
                        or noncompliance (within the meaning of such 
                        term as used in section 30120); or</DELETED>
                        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Definitions.--In this subsection:</DELETED>
                <DELETED>    ``(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)).</DELETED>
                <DELETED>    ``(B) Used motor vehicle.--The term `used 
                motor vehicle' means a motor vehicle that has 
                previously been purchased for purposes other than 
                resale.''.</DELETED>

<DELETED>SEC. 8. SCHOOL BUSES.</DELETED>

<DELETED>    Section 30125 of title 49, United States Code, is amended 
by adding at the end the following:</DELETED>
<DELETED>    ``(d) Operation After Notification.--</DELETED>
        <DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 9. COMMERCIAL PASSENGER VEHICLES.</DELETED>

<DELETED>    (a) In General.--Subchapter II of chapter 301 of title 49, 
United States Code, is amended by adding at the end thereof the 
following:</DELETED>
<DELETED>``Sec.  30128. Commercial passenger vehicles</DELETED>
<DELETED>    ``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).''.</DELETED>
<DELETED>    (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:</DELETED>

<DELETED>``30128. Commercial passenger vehicles''.

<DELETED>SEC. 10. PENALTIES.</DELETED>

<DELETED>    (a) Civil Penalties.--Section 30165(a) of title 49, United 
States Code, is amended to read as follows:</DELETED>
<DELETED>    ``(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.''.</DELETED>
<DELETED>    (b) Criminal Penalties.--</DELETED>
        <DELETED>    (1) In general.--Subchapter IV of chapter 301 of 
        title 49, United States Code, is amended by adding at the end 
        the following:</DELETED>
<DELETED>``Sec.  30170. Criminal penalties</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.''.</DELETED>
        <DELETED>    (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:</DELETED>

<DELETED>``30170. Criminal penalties''.

<DELETED>SEC. 11. RECORDS AND REPORTS.</DELETED>

<DELETED>    (a) Recordkeeping and Reporting Requirements.--Section 
30166(e) of title 49, United States Code, is amended to read as 
follows:</DELETED>
<DELETED>    ``(e) Records and Reports.--</DELETED>
        <DELETED>    ``(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).</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.''.</DELETED>
<DELETED>    (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,''.</DELETED>
<DELETED>    (c) Definitions.--Section 30166(a) of title 49, United 
States Code, is amended to read as follows:</DELETED>
<DELETED>    ``(a) Definitions.--Notwithstanding section 30102(a), in 
this section:</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) Manufacturer.--The term `manufacturer'--
        </DELETED>
                <DELETED>    ``(A) means a person--</DELETED>
                        <DELETED>    ``(i) manufacturing or assembling 
                        motor vehicles or motor vehicle equipment; 
                        or</DELETED>
                        <DELETED>    ``(ii) importing motor vehicles or 
                        motor vehicle equipment for resale; 
                        and</DELETED>
                <DELETED>    ``(B) includes--</DELETED>
                        <DELETED>    ``(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;</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(5) Owner.--The term `owner' means an owner 
        inside or outside the United States.</DELETED>
        <DELETED>    ``(6) Purchaser.--The term `purchaser' means a 
        purchaser inside or outside the United States.</DELETED>
        <DELETED>    ``(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.''.</DELETED>
<DELETED>    (d) Effective Date.--The amendments made by this section 
take effect 180 days after the date of enactment of this Act.</DELETED>

<DELETED>SEC. 12. INCREASE IN ODOMETER PENALTIES.</DELETED>

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

<DELETED>SEC. 13. REVISED TIRE SAFETY STANDARDS.</DELETED>

<DELETED>    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.</DELETED>

<DELETED>SEC. 14. IMPROVED TIRE SIDEWALL MARKINGS.</DELETED>

<DELETED>    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.</DELETED>

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, and noncompliance with motor vehicle safety and motor vehicle 
equipment standards and enforcement of 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 enforcement 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 foreign governmental 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 otherwise been 
                made available to the public in the United States.
    ``(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 otherwise been made 
                available to the public in the United States.
    ``(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 otherwise been made 
available to the public in the United States.''.
    (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 
dissemination of information about the recall by manufacturers of motor 
vehicles and motor vehicle equipment with safety-related defects. Any 
such agreement may not enter into force with respect to the United 
States unless it has been ratified by the United States Senate.
    (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, to 
        the greatest extent practical, make consumers aware of recalls 
        of its motor vehicles or motor vehicle equipment.
            (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.
    (e) Provisions Related to the United States.--
            (1) In general.--The Secretary of Transportation shall be 
        the competent authority for the United States.
            (2) Coordination.--In carrying out the role of competent 
        authority, the Secretary shall coordinate with and draw on the 
        expertise of the Department of State, the Office of the United 
        States Trade Representative, and the National Highway Traffic 
        Safety Administration.
            (3) Internet availability.--Until the President concludes 
        the negotiations authorized by this section and there is an 
        international Internet database that contains the information 
        described in subsection (c)(3), the Secretary shall establish 
        an official Department of Transportation website on the 
        Internet providing that information to the greatest extent 
        possible when a recall involves motor vehicles or motor vehicle 
        equipment that is offered for sale inside and outside the 
        United States, and shall post information provided to the 
        Secretary by United States embassies about recalls of motor 
        vehicles or motor vehicle equipment in the country in which the 
        embassy is located that is offered for sale in the United 
        States.
            (4) Coordinated federal strategy.--The Secretary of State 
        shall establish procedures by which United States embassies and 
        consular offices abroad will inform the Secretary of 
        Transportation whenever the Ambassador, commercial attache, or 
        other representative of the United States receives information 
        about an impending or announced recall of motor vehicles or 
        motor vehicle equipment. The Secretary of Transportation shall 
        notify the Senate Committee on Commerce, Science, and 
        Transportation and the House or Representatives Committee on 
        Commerce whenever the Secretary receives such information.
    (f) No Diminution of United States Standards.--Nothing in this 
section authorizes any diminution or weakening of any Federal Motor 
Vehicle Safety Standard under chapter 301 of title 49, United States 
Code, or any other provision of law, whether in effect on the date of 
enactment of this Act or promulgated after that date.

SEC. 4. DEFECT AND NONCOMPLIANCE NOTIFICATION FOR OEM EQUIPMENT.

    Section 30118 of title 49, United States Code, is amended by 
striking ``motor vehicle or replacement equipment'' in subsections (a), 
(b), and (c) and inserting ``motor vehicle, original equipment, or 
replacement equipment''.

SEC. 5. 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. 6. ENHANCED INFORMATION REPORTING.

    Section 30118 of title 49, United States Code, is amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f); and
            (2) by inserting after subsection (c) the following:
    ``(d) Enhanced Reporting of Information.--
            ``(1) Rulemaking required.--No later than 120 days after 
        the date of enactment of the Motor Vehicle and Motor Vehicle 
        Equipment Defect Notification Improvement Act, the Secretary of 
        Transportation shall initiate a rulemaking proceeding to 
        establish increased reporting requirements and record retention 
        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) Data covered.--
                    ``(A) Required data.--In carrying out this 
                subsection, the Secretary shall require manufacturers 
                to collect and report to the Secretary periodically, or 
                upon request by the Secretary, the following 
                information derived from domestic and foreign sources:
                            ``(i) Accidents or incidents, or trends or 
                        patterns of accidents or incidents, involving 
                        motor vehicles, motor vehicle equipment, or 
                        motor vehicle equipment components or systems 
                        manufactured by that manufacturer that result 
                        in fatalities, serious injuries, or fires.
                            ``(ii) Any 3 or more lawsuits in which the 
                        manufacturer is a defendant involving the same, 
                        or a substantially similar, alleged defect.
                            ``(iii) Customer satisfaction campaigns, 
                        consumer advisories, recalls, or other activity 
                        involving the repair or replacement of motor 
                        vehicles or items of motor vehicle equipment.
                            ``(iv) Warranty or adjustment data received 
                        by the manufacturer.
                    ``(B) Potential data.--In carrying out this 
                subsection, the Secretary shall consider requiring 
                manufacturers to collect and report to the Secretary 
                periodically, or upon request by the Secretary, the 
                following information derived from domestic and foreign 
                sources:
                            ``(i) Consumer complaints.
                            ``(ii) Safety-related information relating 
                        to actual or potential defects not otherwise 
                        collected or reported.
                            ``(iii) The number or other identifying 
                        characteristic for motor vehicle equipment sold 
                        by that manufacturer.
                            ``(iv) Communications between the 
                        manufacturer and dealers, or other information 
                        made available by the manufacturer to dealers, 
                        relating to motor vehicle or motor vehicle 
                        equipment safety-related defects or recalls.
            ``(4) Insurance.--No later than 120 days after the date of 
        enactment of the Motor Vehicle and Motor Vehicle Equipment 
        Defect Notification Improvement Act, the Secretary shall 
        initiate a rulemaking proceeding to establish enhanced 
        aggregate information reporting requirements under this chapter 
        for persons in the business of providing motor vehicle 
        insurance or of adjusting motor vehicle insurance claims. The 
        Secretary shall issue a final rule under this paragraph not 
        later than June 30, 2002.
            ``(5) Confidentiality.--Nothing in this subsection provides 
        an exception from section 30167(a) for information received by 
        the Secretary under the rulemaking required by this 
        subsection.''.

SEC. 7. SCHOOL BUSES.

    Section 30125 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(d) Suspension of Operations for Imminent Hazard.--The Secretary 
may issue an order directing any person that operates a school bus to 
suspend operation of the school bus as a school bus if the Secretary 
determines that there is a defect or noncompliance that presents an 
imminent hazard to passenger safety if the school bus continues 
operation before the defect or noncompliance is remedied.''.

SEC. 8. 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
    ``The Secretary of Transportation may issue an order directing any 
person that operates a motor vehicle used to transport passengers for 
compensation to suspend operation of the vehicle to transport 
passengers for compensation if the Secretary determines that there is a 
defect or noncompliance that presents an imminent hazard to passenger 
safety if the vehicle continues such operation before the defect or 
noncompliance is remedied.''.
    (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. 9. 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 per day 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) Acts Prohibited.--It is unlawful for a director, officer, or 
agent of a manufacturer that introduces a motor vehicle or motor 
vehicle equipment into interstate commerce to authorize, order, or 
ratify the introduction if the director, officer, or agent knew that--
            ``(1) at the time of introduction the manufacturer was in 
        violation of section 30112(a) or 30118(c) with respect to that 
        motor vehicle or motor vehicle equipment;
            ``(2) the condition of the motor vehicle or motor vehicle 
        equipment that is the subject of that violation created a 
        serious danger of death or grievous bodily harm; and
            ``(3) the condition described in paragraph (2) caused death 
        or grievous bodily harm.
    ``(b) Penalties.--Violation of subsection (a) is punishable by--
            ``(1) a fine of not more than $10,000, imprisonment for not 
        more than 5 years, or both, if the violation resulted in 
        grievous bodily harm; and
            ``(2) a fine of not more than $50,000, imprisonment for not 
        more than 15 years, or both, if the violation resulted in 
        death.
    ``(c) Coordination With DOJ.--Before authorizing a United States 
Attorney to bring an action, or initiate grand jury proceedings, for a 
violation of subsection (a) or (b), the Attorney General shall consult 
with 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. 10. 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.--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).''.
    (b) 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.''.
    (c) Effective Date.--The amendments made by this section take 
effect 180 days after the date of enactment of this Act.

SEC. 11. 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. 12. 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, 
2002.

SEC. 13. 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 
complete the rulemaking not later than June 1, 2002. 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.

SEC. 14. AUTHORIZATION OF APPROPRIATIONS.

    Section 30104 of title 49, United States Code, is amended to read 
as follows:
``Sec.  30104. Authorization of appropriations
    ``There are authorized to be appropriated to the Secretary of 
Transportation, out of the Highway Account of the Highway Trust fund, 
$115,954,000 for the National Highway Traffic Safety Administration to 
carry out this chapter in fiscal year 2001.''.
                                                       Calendar No. 839

106th CONGRESS

  2d Session

                                S. 3059

                          [Report No. 106-423]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

           September 27 (legislative day, September 22), 2000

                       Reported with an amendment