[Congressional Record Volume 146, Number 102 (Wednesday, September 6, 2000)]
[Senate]
[Pages S8112-S8114]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LEAHY:
  S. 3012. A bill to amend title 18, United States Code, to impose 
criminal and civil penalties for false statements and failure to file 
reports concerning defects in foreign motor vehicle products, and to 
require the timely provision of notice of such defects, and for other 
purposes; to the Committee on the Judiciary.


           transportation information recall enhancement act

  Mr. LEAHY. Mr. President, like so many Americans, I have been faced 
with a barrage of confusing and frightening information about the 
recent Firestone tire recall. I have a Ford Explorer, and it has 
Firestone tires on it. My wife and I drive it and take our children and 
our friends and others for rides in that vehicle. So I understand what 
a lot of my fellow Vermonters are going through regarding this deadly 
episode. It never should have happened.
  But it is not just Explorer owners who are at risk--pedestrians, 
joggers, bicyclists, and other cars could be hit by out-of-control 
vehicles or by tire pieces.
  The tires on my car are the same size and type as those covered by 
the recall. But they were manufactured at a different plant--a North 
Carolina plant. Even though employees of that plant have raised serious 
concerns about quality control in that factory, the tires on my 
Explorer are not eligible for the recall. But I have to tell you, I 
look long at them each time I get into the vehicle, and it is in the 
back of my mind every time I drive.
  Even though they tell me that they are not yet the subject of a 
recall, I wonder what tomorrow's news may bring.
  The first foreign recall occurred on August 1999, but the Secretary 
of Transportation apparently was not even informed of this by the 
manufacturer until May of 2000--nearly a year after the fact. That is 
outrageous. It is unacceptable. Worse yet, that kind of delay has 
proven deadly. I don't even want to think about the lives that could 
have been saved had there been quicker action, and had the 
manufacturers been honest enough to notify the public immediately.
  Even after the recall was issued, the deadly risk continues as 
families have to wait to get replacement tires. I want to mention one 
sad case. A grandfather, Gary Meek of Farmersville, California, was a 
retired police officer. He, his wife and granddaughter, Amy, 13 years 
old, were driving on August 16, a couple weeks ago, when a Firestone 
tire on the Ford Explorer separated. His wife survived the crash, but 
Mr. Meek and his granddaughter were killed. His widow has to carry on 
with those awful memories.
  I am going to introduce legislation today to mandate that the 
Secretary of Transportation be immediately notified of defects in motor 
vehicles or vehicle components--immediately after the foreign 
manufacturer becomes aware of the dangerous defect or when the 
manufacturer is notified about the defect by the foreign government. 
This notification would be earlier in time than the beginning of a 
foreign recall or any efforts to replace the defective product.
  My bill also requires the manufacturer file a full report on the 
circumstances regarding each defective vehicle or vehicle component. 
The bill will impose stiff criminal penalties for false or misleading 
statements, or efforts to coverup the truth, regarding these reports. 
It also imposes criminal and civil penalties for other violations of 
the bill. In other words, if tires are defective, or are going to be 
recalled or replaced in some other country, they have to notify us--and 
notify us accurately and truthfully.
  One would think some of these foreign tire companies would feel a 
moral duty to save lives. You would think that would be enough to 
motivate them. One would think even the idea of huge fines might 
motivate them. That doesn't seem to be enough. Maybe if they think they 
will get a jail sentence if they don't notify us truthfully, maybe, 
they will put the interests of the lives and safety of the public ahead 
of the short-term gains of their own companies.
  My bill, the Transportation Information Recall Enhancement Act, 
requires notification of a foreign dangerous defect within 48 hours. It 
requires even more detailed information filings a few days later. My 
bill also requires notification of increases in deaths or serious 
injuries in foreign countries regarding vehicles and vehicle components 
that could prove deadly if they are on American soil.
  Secretary Slater said in an interview that there should be a law 
requiring that the United States be immediately notified of foreign 
recalls. We are on the way to making that a reality. I will work with 
any Senator, Republican or Democrat, on this issue so we can pass this 
legislation or any other bill to get the job done in the next couple of 
weeks.
  It is incomprehensible to me how any corporate executives can live 
with themselves when they withhold information that could have saved 
people's lives. If they are going to conceal the truth or make false 
statements, they should face criminal sanctions. Sometimes if a person 
thinks they are going to end up in the slammer, they will pay a lot 
more attention to the safety of people, rather than simply looking at 
the balance sheet.
  For example, we just received reports about Mitsubishi over the past 
two decades. For 20 years, they routinely withheld information about 
dangerous products which ended up in America and other countries. These 
corporate officers should be forced to explain their inaction to the 
families of those who have been injured using their products. Maybe 
Americans should not buy any Mitsubishi products because they lied for 
20 years. Criminal penalties are clearly needed. In the global economy 
there has to be some compassion for the suffering that is sometimes 
caused around the world. There seems to be almost a disconnect. The 
President of Ford Motors, for example, when he heard that Congress was 
going to question him, at first was unwilling to testify personally.

  I think he heard an almost national outcry over that insolence and 
disregard of the people of this country, insolence and arrogance that 
kept him from realizing how concerned Americans were. Fortunately, he 
changed his mind and found the time. I suspect the appropriate 
congressional committees would have gotten a subpoena, and the result 
would have been the same. He would have testified.
  Every corporation has a right to sell their products. Every 
corporation has a right to make a decent profit. They

[[Page S8113]]

ought to be able to do that. When they know they have a product that 
can bring about death or injury, and especially when only they know it 
and nobody else does, they ought to make those facts known. The law 
should be very clear that they have to make it known. If they 
manufacture a product in this country to sell both here and abroad, if 
there are problems in the other country and the product is defective, 
they should notify this country of that fact. They will lose some 
business in the short term. In the long term, they will do better. The 
American public will be secure, and the American public will not be 
endangered.
  What Firestone did, what Ford did, and for that matter, what 
Mitsubishi did, was wrong. It was absolutely wrong. I want corporate 
leaders never to do this again. I want a law that says if you provide 
information to our government regarding defective products that is 
false, misleading or untruthful that you are going to go to jail.
  Mr. President, I ask unanimous consent to print a summary of the bill 
in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 3012

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Transportation Information 
     Recall Enhancement Act''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) in an interview with ABC News on September 3, 2000, 
     Secretary of Transportation Rodney Slater stated that he 
     thinks there should be a law requiring that the United States 
     be immediately notified of a foreign recall, ``especially in 
     the global economy when you've got U.S. goods really being 
     used by individuals around the world. We should know when 
     there's a problem someplace else.'';
       (2) as of the date of enactment of this Act, there is no 
     legal requirement for manufacturers of motor vehicles and 
     their components to notify United States agencies of a recall 
     issued in a foreign country;
       (3) between August 1999 and spring 2000, Ford Motor Company 
     replaced Firestone tires on 46,912 vehicles in Saudi Arabia, 
     Thailand, Malaysia, and South America;
       (4)(A) on May 2, 2000, the National Highway Traffic Safety 
     Administration opened a preliminary evaluation into Firestone 
     ATX, ATX II, and Wilderness AT tires after receiving 90 
     complaints, primarily from consumers in the Southeast and 
     Southwest, about tread separations or blowouts;
       (B) as of September 2000, the National Highway Traffic 
     Safety Administration has received over 1,400 complaints, 
     including reports of more than 250 injuries and 88 deaths; 
     and
       (C) some of the complaints date back to the early 1990s, 
     and 797 of the complaints report that a tire failure took 
     place between August 1, 1999, and August 9, 2000; and
       (5)(A) on August 9, 2000, Bridgestone/Firestone announced a 
     United States recall of 6,500,000 ATX, ATX II, and Wilderness 
     AT tires; and
       (B) that date was 3 months after the National Highway 
     Traffic Safety Administration commenced its investigation and 
     nearly 9 months after Ford Motor Company initiated the 
     replacement of the tires in foreign countries.
       (b) Purpose.--The purpose of this Act is to ensure that 
     defects in motor vehicles or replacement equipment in foreign 
     countries are quickly, accurately and truthfully reported to 
     the United States Secretary of Transportation in cases in 
     which--
       (1) the motor vehicles or replacement equipment is 
     manufactured for export to the United States; or
       (2) the motor vehicles or replacement equipment is 
     manufactured in the United States using a manufacturing 
     process that is the same as, or similar to, the manufacturing 
     process used in the foreign country, with the result that the 
     motor vehicles or replacement equipment manufactured in the 
     United States may also be defective.

     SEC. 3. CRIMINAL AND CIVIL PENALTIES IN CONNECTION WITH 
                   REPORTING OF DEFECTS IN FOREIGN MOTOR VEHICLE 
                   PRODUCTS.

       (a) In General.--Chapter 47 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1036. Penalties in connection with reporting of 
       defects in foreign motor vehicle products

       ``(a) Definitions.--
       ``(1) Foreign motor vehicle product.--The term `foreign 
     motor vehicle product' means a motor vehicle or replacement 
     equipment that--
       ``(A) is manufactured in a foreign country for export to 
     the United States; or
       ``(B) is manufactured in a foreign country using a 
     manufacturing process that is the same as, or similar to, a 
     manufacturing process used in the United States for a motor 
     vehicle or replacement equipment.
       ``(2) Other terms.--The terms `defect', `manufacturer', 
     `motor vehicle', and `replacement equipment' have the 
     meanings given the terms in section 30102 of title 49.
       ``(b) Criminal Penalty.--A manufacturer of a foreign motor 
     vehicle product, or an officer or employee of such a 
     manufacturer, that, in connection with a report required to 
     be filed under section 30118(f) of title 49, willfully--
       ``(1) falsifies or conceals a material fact;
       ``(2) makes a materially false, fictitious, or fraudulent 
     statement or representation; or
       ``(3) makes or uses a false writing or document knowing 
     that the writing or document contains any materially false, 
     fictitious, or fraudulent statement or entry;
     shall be fined under this title, imprisoned not more than 5 
     years, or both.
       ``(c) Civil Penalty.--
       ``(1) In general.--In addition to any civil penalty that 
     may be assessed under chapter 301 of title 49, a manufacturer 
     that violates section 30118(f) of title 49 shall be subject 
     to a civil penalty of not more than $500,000 for each day of 
     the violation.
       ``(2) Compromise of penalty.--The Attorney General may 
     compromise the amount of a civil penalty imposed under 
     paragraph (1).
       ``(3) Determination of amount.--In determining the amount 
     of a civil penalty or compromise under this subsection, the 
     Attorney General shall consider--
       ``(A) the appropriateness of the penalty or compromise in 
     relation to the size of the business of the manufacturer 
     liable for the penalty; and
       ``(B) the gravity of the violation.
       ``(4) Deduction of amount of penalty.--The United States 
     Government may deduct the amount of the civil penalty imposed 
     or compromised under this section from any amount that the 
     Government owes the manufacturer liable for the penalty.''.
       (b) Conforming Amendment.--The analysis for chapter 47 of 
     title 18, United States Code, is amended by adding at the end 
     the following:

``1036. Penalties in connection with reporting of defects in foreign 
              motor vehicle products.''.

     SEC. 4. REPORTING OF DEFECTS IN FOREIGN MOTOR VEHICLE 
                   PRODUCTS.

       Section 30118 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(f) Reporting of Defects in Foreign Motor Vehicle 
     Products.--
       ``(1) Definition of foreign motor vehicle product.--The 
     term `foreign motor vehicle product' means a motor vehicle or 
     replacement equipment that--
       ``(A) is manufactured in a foreign country for export to 
     the United States; or
       ``(B) is manufactured in a foreign country using a 
     manufacturing process that is the same as, or similar to, a 
     manufacturing process used in the United States for a motor 
     vehicle or replacement equipment.
       ``(2) Reporting of defects.--
       ``(A) Initial report.--Not later than 48 hours after 
     determining, or learning that a government of a foreign 
     country has determined, that a foreign motor vehicle product 
     contains a defect that could be related to motor vehicle 
     safety, the manufacturer of the foreign motor vehicle product 
     shall report the determination to the Secretary.
       ``(B) Written report.--
       ``(i) In general.--Not later than 5 days after the end of 
     the 48-hour period described in subparagraph (A), the 
     manufacturer shall submit to the Secretary a written report 
     that meets the requirements of clause (ii).
       ``(ii) Contents of written report.--A written report under 
     clause (i) shall contain--

       ``(I) a description of the foreign motor vehicle product 
     that is the subject of the report;
       ``(II) a description of--

       ``(aa) the determination of the defect by the government of 
     the foreign country or by the manufacturer of a foreign motor 
     vehicle product; and
       ``(bb) any measures that the government requires to be 
     taken, or the manufacturer determines should be taken, to 
     obtain a remedy of the defect;

       ``(III) information concerning any serious injuries or 
     fatalities possibly resulting from the defect; and
       ``(IV) such other information as the Secretary determines 
     to be appropriate.

       ``(3) Reporting of possible defects.--Upon making a 
     determination that there have been a significant number of 
     serious injuries or fatalities in a foreign country that 
     could have resulted from a defect in a foreign motor vehicle 
     product that could be related to motor vehicle safety (as 
     determined in accordance with regulations promulgated by the 
     Secretary), the manufacturer of the foreign motor vehicle 
     product shall report the determination to the Secretary in 
     such manner as the Secretary establishes by regulation.''.

     SEC. 5. EFFECTIVE DATE.

       This Act and the amendments made by this Act take effect on 
     the date that is 180 days after the date of enactment of this 
     Act.
                                  ____


                                Summary

  This Act will provide criminal penalties for making false or 
misleading statements in notifications or reports made to the U.S. 
Government regarding recalls or replacement actions regarding motor 
vehicles and component parts. This criminal liability and the

[[Page S8114]]

requirements for providing notice is triggered when a foreign 
government makes the manufacturer aware of the defect in motor vehicles 
or replacement parts, even before it triggers recalls or replacement 
actions.
  This Act will help ensure accurate, truthful information and timely 
notice regarding recalls or replacement actions concerning defective 
motor vehicles or replacement equipment such as tires in foreign 
countries are quickly reported to the United States Secretary of 
Transportation where such vehicles are manufactured for export to the 
United States or where the defective product or equipment is 
manufactured in the United States in a manner that is similar to its 
manufacture in the foreign country and thus may likewise be dangerous.
  The notification must be provided to the Secretary within 48 hours of 
when the foreign manufacturer learns or is notified of the defect by 
the foreign government. Within 5 days of that 48-hour deadline, a more 
detailed, accurate and truthful report must be provided to the 
Secretary of Transportation describing the basis for actions taken and 
providing information about serious injuries or fatalities related to 
the defect.
  In addition, even if a defect is not identified, the Secretary must 
be notified each time there is a significant increase in deaths or 
serious injuries in a foreign country related to vehicles or vehicle 
components manufactured in foreign countries for export to the United 
States or related to vehicles or components manufactured in the United 
States using similar manufacturing processes (as are used in the 
foreign country), as defined in regulations of the Secretary.
  Failure to comply with these requirements, and any related 
requirements set by the Secretary under the bill, shall result in a 
civil money penalty of up to $500,000, per day. In addition, for 
manufacturers or employees of foreign motor vehicle products 
(manufacturing vehicles for export to the United States or using 
manufacturing processes similar to that used in the United States) who 
in reporting to the Secretary knowingly or willfully: falsifies, 
conceals, or covers up a material fact; makes a materially false, 
fictitious, or fraudulent statement or representation; or makes a false 
writing or document, shall be imprisoned for up to 5 years and shall be 
subject to criminal fines of up to $500,000 for corporations, or 
$250,000 for individuals.
  This Act shall be effective beginning six months after enactment.
                                 ______