[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3070 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 3070

To amend title 18, United States Code, to establish criminal penalties 
 for distribution of defective products, to amend chapter 111 of title 
   28, United States Code, relating to protective orders, sealing of 
 cases, and disclosures of discovery information in civil actions, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 19, 2000

  Mrs. Feinstein (for herself and Mr. Kohl) introduced the following 
    bill; which was read twice and referred to the Committee on the 
                               Judiciary

_______________________________________________________________________

                                 A BILL


 
To amend title 18, United States Code, to establish criminal penalties 
 for distribution of defective products, to amend chapter 111 of title 
   28, United States Code, relating to protective orders, sealing of 
 cases, and disclosures of discovery information in civil actions, 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 ``Defective Product Penalty Act of 
2000''.

SEC. 2. DISTRIBUTION OF A DEFECTIVE PRODUCT.

    (a) In General.--Chapter 11 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 226. Distribution of a defective product
    ``(a) Definitions.--In this section:
            ``(1) Defective product.--The term `defective product' 
        means a product with some flaw in design, manufacture, 
        assembly, or instruction that renders the product dangerous to 
        human life and limb beyond the reasonable and accepted risk 
        associated with such or similar products lacking such a flaw.
            ``(2) Serious bodily injury.--The term `serious bodily 
        injury' means bodily injury that involves--
                    ``(A) a substantial risk of death;
                    ``(B) extreme physical pain; or
                    ``(C) injury to, or impairment of, the function of 
                a bodily member, organ, or mental faculty.
    ``(b) Offense.--
            ``(1) Introduction.--Whoever knowingly and willfully 
        introduces into interstate commerce a product known by that 
        person to be a defective product--
                    ``(A) that causes the death of any individual shall 
                be imprisoned for a term of up to 15 years, fined under 
                this title, or both; and
                    ``(B) that causes serious bodily injury to any 
                individual shall be imprisoned for a term of up to 5 
                years, fined under this title, or both.
            ``(2) Failure to disclose.--Any person who has authority to 
        introduce a product into interstate commerce or withdraw or 
        recall a product from interstate commerce, or who has corporate 
        responsibility for the product, and who knows that the product 
        in interstate commerce is a defective product and intentionally 
        fails to disclose the existence of the defect to the 
        appropriate regulatory agency, shall--
                    ``(A) if the defective product, after the discovery 
                and failure to disclose, causes the death of any 
                individual, be imprisoned for a term of up to 15 years, 
                fined under this title, or both; and
                    ``(B) if the defective product, after the discovery 
                and failure to disclose, causes serious bodily injury 
                to any individual, be imprisoned for a term of up to 5 
                years, fined under this title, or both.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 11 of 
title 18, United States Code, is amended by adding at the end the 
following:

``226. Distribution of a defective product.''.

SEC. 3. PROTECTIVE ORDERS AND SEALING OF CASES AND SETTLEMENTS RELATING 
              TO PUBLIC HEALTH OR SAFETY.

    (a) Short Title.--This section may be cited as the ``Sunshine in 
Litigation Act of 2000''.
    (b) Protective Orders and Sealing of Cases.--Chapter 111 of title 
28, United States Code, is amended by adding at the end the following:
``Sec. 1660. Protective orders and sealing of cases and settlements 
              relating to public health or safety
    ``(a) In General.--A court shall enter an order under rule 26(c) of 
the Federal Rules of Civil Procedure restricting the disclosure of 
information obtained through discovery, an order approving a settlement 
agreement that would restrict the disclosure of such information, or an 
order restricting access to court records in a civil case, only after 
making particularized findings of fact that--
            ``(1) the order would not restrict the disclosure of 
        information that is relevant to the protection of public health 
        or safety; or
            ``(2)(A) the public interest in disclosure of potential 
        health or safety hazards is clearly outweighed by a specific 
        and substantial interest in maintaining the confidentiality of 
        the information or records; and
            ``(B) the protection from disclosure provided by the order 
        is no broader than necessary to protect the interest in 
        maintaining confidentiality.
    ``(b) Period of Effectiveness.--No order under subsection (a) 
(other than an order approving a settlement agreement) shall continue 
in effect after the entry of final judgment unless, at or after entry 
of the order, the court makes a separate particularized finding of fact 
that the requirements of paragraph (1) or (2) of subsection (a) have 
been met.
    ``(c) Burden of Proof.--The party that is the proponent for the 
entry of an order, as provided under this section, shall have the 
burden of proof in obtaining the order.
    ``(d) No Approval or Enforcement of Agreement To Restrict 
Disclosure.--
            ``(1) In general.--No court of the United States may 
        approve or enforce any provision of an agreement between or 
        among parties to a civil action, or approve or enforce an order 
        subject to subsection (a), that prohibits or otherwise 
        restricts a party from disclosing any information relevant to 
        the civil action to any Federal or State agency with authority 
        to enforce laws regulating an activity relating to such 
        information.
            ``(2) Confidentiality.--Any information described in 
        paragraph (1) that is disclosed to a Federal or State agency 
        shall be confidential to the extent provided by law.''.
    (c) Conforming Amendment.--The table of sections for chapter 111 of 
title 28, United States Code, is amended by adding after the item 
relating to section 1659 the following:

``1660. Protective orders and sealing of cases and settlements relating 
                            to public health or safety.''.
    (d) Effective Date.--The amendments made by this section--
            (1) take effect on the date that is 30 days after the date 
        of enactment of this Act; and
            (2) apply only to orders entered in civil actions or 
        agreements entered into on or after that date.

SEC. 4. MOTOR VEHICLE SAFETY STANDARDS AND COMPLIANCE.

    (a) Requirement of Testing Before Certification of Compliance.--
Section 30115 of title 49, United States Code, is amended in the first 
sentence by striking ``A manufacturer'' and inserting ``After 
conducting appropriate testing, a manufacturer''.
    (b) Notification of Defects and Noncompliance.--Section 30118 of 
title 49, United States Code, is amended--
            (1) in subsections (a), (b)(1), and (c), by inserting ``, 
        original equipment,'' before ``or replacement equipment'' each 
        place it appears; and
            (2) in subsection (c)--
                    (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and indenting 
                appropriately;
                    (B) by striking ``A manufacturer'' and inserting 
                the following:
            ``(1) Actual defects or noncompliance.--A manufacturer''; 
        and
                    (C) by adding at the end the following:
            ``(2) Duty to learn of potential defects or 
        noncompliance.--A manufacturer of a motor vehicle, original 
        equipment, or replacement equipment shall--
                    ``(A) review and consider information concerning 
                motor vehicle accidents or incidents in vehicles or 
                equipment in cases in which there are serious personal 
                injuries, deaths, or fires, including information 
                received from any foreign source, to learn whether the 
                vehicle or equipment contains a defect or does not 
                comply with an applicable motor vehicle safety 
                standard; and
                    ``(B) notify the Secretary if the manufacturer has 
                reason to believe that a defect or noncompliance may 
                exist.''.
    (c) Extension of Period During Which Remedies for Defects and 
Noncompliance Shall Be Provided Without Charge.--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''.
    (d) Civil Penalty.--Section 30165(a) of title 49, United States 
Code, is amended--
            (1) in the first sentence, by striking ``$1,000'' and 
        inserting ``$10,000''; and
            (2) by striking the last sentence.
    (e) Provision of Copies of All Communications About Defects and 
Noncompliance.--Section 30166(f) of title 49, United States Code, is 
amended--
            (1) by inserting ``(whether the dealers, owners, or 
        purchasers are located in the United States or in a foreign 
        country)'' before ``about''; and
            (2) by inserting ``in the United States'' before the period 
        at the end.
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