[Congressional Record Volume 146, Number 125 (Tuesday, October 10, 2000)]
[House]
[Pages H9624-H9632]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  2355
 TRANSPORTATION RECALL ENHANCEMENT, ACCOUNTABILITY, AND DOCUMENTATION 
                              (TREAD) ACT

  Mr. TAUZIN. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 5164) to amend title 49, United States Code, to require 
reports concerning defects in motor vehicles or tires or other motor 
vehicle equipment in foreign countries, and for other purposes, as 
amended.
  The Clerk read as follows:

                               H.R. 5164

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Transportation Recall 
     Enhancement, Accountability, and Documentation (TREAD) Act''.

     SEC. 2. PRESERVATION OF SECTION 30118.

       The amendments made to section 30118 of title 49, United 
     States Code, by section 364 of the Department of 
     Transportation and Related Agencies Appropriations Act, 2001 
     are

[[Page H9625]]

     repealed and such section shall be effective as if such 
     amending section had not been enacted.

     SEC. 3. REPORTING REQUIREMENTS.

       (a) Defects in Foreign Countries.--Section 30166 of title 
     49, United States Code, is amended by adding at the end the 
     following:
       ``(l) Reporting of Defects in Motor Vehicles and Products 
     in Foreign Countries.--
       ``(1) Reporting of defects, manufacturer determination.--
     Not later than 5 working days after determining to conduct a 
     safety recall or other safety campaign in a foreign country 
     on a motor vehicle or motor vehicle equipment that is 
     identical or substantially similar to a motor vehicle or 
     motor vehicle equipment offered for sale in the United 
     States, the manufacturer shall report the determination to 
     the Secretary.
       ``(2) Reporting of defects, foreign government 
     determination.--Not later than 5 working days after receiving 
     notification that the government of a foreign country has 
     determined that a safety recall or other safety campaign must 
     be conducted in the foreign country on a motor vehicle or 
     motor vehicle equipment that is identical or substantially 
     similar to a motor vehicle or motor vehicle equipment offered 
     for sale in the United States, the manufacturer of the motor 
     vehicle or motor vehicle equipment shall report the 
     determination to the Secretary.
       ``(3) Reporting requirements.--The Secretary shall 
     prescribe the contents of the notification required by this 
     subsection.''.
       (b) Early Warning Reporting Requirements.--Section 30166, 
     of title 49, United States Code, is amended by adding at the 
     end the following:
       ``(m) Early warning reporting requirements.--
       ``(1) Rulemaking required.--Not later than 120 days after 
     the date of enactment of the Transportation Recall 
     Enhancement, Accountability, and Documentation (TREAD) Act, 
     the Secretary shall initiate a rulemaking proceeding to 
     establish early warning reporting requirements for 
     manufacturers of motor vehicles and motor vehicle equipment 
     to enhance the Secretary's ability to carry out the 
     provisions of this chapter.
       ``(2) Deadline.--The Secretary shall issue a final rule 
     under paragraph (1) not later than June 30, 2002.
       ``(3) Reporting elements.--
       ``(A) Warranty and claims data.--As part of the final rule 
     promulgated under paragraph (1), the Secretary shall require 
     manufacturers of motor vehicles and motor vehicle equipment 
     to report, periodically or upon request by the Secretary, 
     information which is received by the manufacturer derived 
     from foreign and domestic sources to the extent that such 
     information may assist in the identification of defects 
     related to motor vehicle safety in motor vehicles and motor 
     vehicle equipment in the United States and which concerns--
       ``(i) data on claims submitted to the manufacturer for 
     serious injuries (including death) and aggregate statistical 
     data on property damage from alleged defects in a motor 
     vehicle or in motor vehicle equipment; or
       ``(ii) customer satisfaction campaigns, consumer 
     advisories, recalls, or other activity involving the repair 
     or replacement of motor vehicles or items of motor vehicle 
     equipment.
       ``(B) Other data.--As part of the final rule promulgated 
     under paragraph (1), the Secretary may, to the extent that 
     such information may assist in the identification of defects 
     related to motor vehicle safety in motor vehicles and motor 
     vehicle equipment in the United States, require manufacturers 
     of motor vehicles or motor vehicle equipment to report, 
     periodically or upon request of the Secretary, such 
     information as the Secretary may request.
       ``(C) Reporting of possible defects.--The manufacturer of a 
     motor vehicle or motor vehicle equipment shall report to the 
     Secretary, in such manner as the Secretary establishes by 
     regulation, all incidents of which the manufacturer receives 
     actual notice which involve fatalities or serious injuries 
     which are alleged or proven to have been caused by a possible 
     defect in such manufacturer's motor vehicle or motor vehicle 
     equipment in the United States, or in a foreign country when 
     the possible defect is in a motor vehicle or motor vehicle 
     equipment that is identical or substantially similar to a 
     motor vehicle or motor vehicle equipment offered for sale in 
     the United States.
       ``(4) Handling and utilization of reporting elements.--
       ``(A) Secretary's specifications.--In requiring the 
     reporting of any information requested by the Secretary under 
     this subsection, the Secretary shall specify in the final 
     rule promulgated under paragraph (1)--
       ``(i) how such information will be reviewed and utilized to 
     assist in the identification of defects related to motor 
     vehicle safety;
       ``(ii) the systems and processes the Secretary will employ 
     or establish to review and utilize such information; and
       ``(iii) the manner and form of reporting such information, 
     including in electronic form.
       ``(B) Information in possession of manufacturer.--The 
     regulations promulgated by the Secretary under paragraph (1) 
     may not require a manufacturer of a motor vehicle or motor 
     vehicle equipment to maintain or submit records respecting 
     information not in the possession of the manufacturer.
       ``(C) Disclosure.--None of the information collected 
     pursuant to the final rule promulgated under paragraph (1) 
     shall be disclosed pursuant to section 30167(b) unless the 
     Secretary determines the disclosure of such information will 
     assist in carrying out sections 30117(b) and 30118 through 
     30121.
       ``(D) Burdensome requirements.--In promulgating the final 
     rule under paragraph (1), the Secretary shall not impose 
     requirements unduly burdensome to a manufacturer of a motor 
     vehicle or motor vehicle equipment, taking into account the 
     manufacturer's cost of complying with such requirements and 
     the Secretary's ability to use the information sought in a 
     meaningful manner to assist in the identification of defects 
     related to motor vehicle safety.
       ``(5) Periodic review.--As part of the final rule 
     promulgated pursuant to paragraph (1), the Secretary shall 
     specify procedures for the periodic review and update of such 
     rule.''.
       (c) Sale or Lease of Defective or Noncompliant Tire.--
     Section 30166 of title 49, United States Code, as amended by 
     subsection (b), is amended by adding at the end the 
     following:
       ``(n) Sale or Lease of Defective or Noncompliant Tire.--
       ``(1) In general.--The Secretary shall, within 90 days of 
     the date of enactment of the Transportation Recall 
     Enhancement, Accountability, and Documentation (TREAD) Act, 
     issue a final rule requiring any person who knowingly and 
     willfully sells or leases for use on a motor vehicle a 
     defective tire or a tire which is not compliant with an 
     applicable tire safety standard with actual knowledge that 
     the manufacturer of such tire has notified its dealers of 
     such defect or noncompliance as required under section 
     30118(c) or as required by an order under section 30118(b) to 
     report such sale or lease to the Secretary.
       ``(2) Defect or Noncompliance Remedied or Order Not in 
     Effect.--Regulations under paragraph (1) shall not require 
     the reporting described in paragraph (1) where before 
     delivery under a sale or lease of a tire--
       ``(A) the defect or noncompliance of the tire is remedied 
     as required by section 30120; or
       ``(B) notification of the defect or noncompliance is 
     required under section 30118(b) but enforcement of the order 
     is restrained or the order is set aside in a civil action to 
     which section 30121(d) applies.''.
       (d) Insurance Study.--The Secretary of Transportation shall 
     conduct a study to determine the feasibility and utility of 
     obtaining aggregate information on a regular and periodic 
     basis regarding claims made for private passenger automobile 
     accidents from persons in the business of providing private 
     passenger automobile insurance or of adjusting insurance 
     claims for such automobiles. Not later than 120 days after 
     the date of enactment of this Act, the Secretary shall 
     transmit the results of such study to the Committee on 
     Commerce of the House of Representatives and the Committee on 
     Commerce, Science, and Transportation of the Senate.

     SEC. 4. REMEDIES WITHOUT CHARGE.

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

     SEC. 5. PENALTIES.

       (a) Civil Penalties.--Section 30165(a) of title 49, United 
     States Code, is amended to read as follow:
       ``(a) Civil Penalties.--
       ``(1) In general.--A person that violates any of sections 
     30112, 30115, 30117 through 30122, 30123(d), 30125(c), 30127, 
     or 30141 through 30147, or a regulation prescribed 
     thereunder, is liable to the United States Government for a 
     civil penalty of not more than $5,000 for each violation. A 
     separate violation occurs for each motor vehicle or item of 
     motor vehicle equipment and for each failure or refusal to 
     allow or perform an act required by any of those sections. 
     The maximum penalty under this subsection for a related 
     series of violations is $15,000,000.
       ``(2) Section 30166.--A person who violates section 30166 
     or a regulation prescribed under that section is liable to 
     the United States Government for a civil penalty for failing 
     or refusing to allow or perform an act required under that 
     section or regulation. The maximum penalty under this 
     paragraph is $5,000 per violation per day. The maximum 
     penalty under this paragraph for a related series of daily 
     violations is $15,000,000.''.
       (b) Criminal Penalties.--
       (1) In General.--Subchapter IV of chapter 301 of title 49, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 30170. Criminal Penalties.

       ``(a) Criminal Liability for Falsifying or Withholding 
     Information.--
       ``(1) General rule.--A person who violates section 1001 of 
     title 18 with respect to the reporting requirements of 
     section 30166, with the specific intention of misleading the 
     Secretary with respect to motor vehicle or motor vehicle 
     equipment safety related defects that have caused death or 
     serious bodily injury to an individual, (as defined in 
     section 1365(g)(3) of title 18), shall be subject to criminal 
     penalties of a fine under title 18, or imprisoned for not 
     more than 15 years, or both.
       ``(2) Safe harbor to encourage reporting and for whistle 
     blowers.--
       ``(A) Correction.--A person described in paragraph (1) 
     shall not be subject to criminal

[[Page H9626]]

     penalties under this subsection if (1) at the time of the 
     violation, such person does not know that the violation would 
     result in an accident causing death or serious bodily injury 
     and (2) the person corrects any improper reports or failure 
     to report within a reasonable time.
       ``(B) Reasonable time and sufficiency of correction.--The 
     Secretary shall establish by regulation what constitutes a 
     reasonable time for the purposes of subparagraph (A) and what 
     manner of correction is sufficient for purposes of 
     subparagraph (A). The Secretary shall issue a final rule 
     under this subparagraph within 90 days of the date of 
     enactment of this section.
       ``(C) Effective date.--Subsection (a) shall not take effect 
     before the final rule under subparagraph (B) takes effect.

       ``(b) Coordination with Department of Justice.--The 
     Attorney General may bring an action, or initiate grand jury 
     proceedings, for a violation of subsection (a) only at the 
     request of the Secretary of Transportation.''.
       (2) Clerical amendment.--The subchapter analysis for 
     subchapter IV of chapter 301 of title 49, United States Code, 
     is amended by adding at the end the following:

``30170. Criminal penalties.''.

     SEC. 6. ACCELERATION OF MANUFACTURER REMEDY PROGRAM.

       Section 30120(c) of title 49, United States Code, is 
     amended by inserting at the end thereof the following:
       ``(3) If the Secretary determines that a manufacturer's 
     remedy program is not likely to be capable of completion 
     within a reasonable time, the Secretary may require the 
     manufacturer to accelerate the remedy program if the 
     Secretary finds--
       ``(A) that there is a risk of serious injury or death if 
     the remedy program is not accelerated; and
       ``(B) that acceleration of the remedy program can be 
     reasonably achieved by expanding the sources of replacement 
     parts, expanding the number of authorized repair facilities, 
     or both.
     The Secretary may prescribe regulations to carry out this 
     paragraph.''.

     SEC. 7. SALES OF REPLACED TIRES.

       Section 30120(d) of title 49, United States Code, is 
     amended by adding at the end the following: ``In the case of 
     a remedy program involving the replacement of tires, the 
     manufacturer shall include a plan addressing how to prevent, 
     to the extent reasonably within the control of the 
     manufacturer, replaced tires from being resold for 
     installation on a motor vehicle, and how to limit, to the 
     extent reasonably within the control of the manufacturer, the 
     disposal of replaced tires in landfills, particularly through 
     shredding, crumbling, recycling, recovery, and other 
     alternative beneficial non-vehicular uses. The manufacturer 
     shall include information about the implementation of such 
     plan with each quarterly report to the Secretary regarding 
     the progress of any notification or remedy campaigns.''.

     SEC. 8. SALES OF REPLACED EQUIPMENT.

       Section 30120 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(j) Prohibition on Sales of Replaced Equipment.--No 
     person may sell or lease any motor vehicle equipment 
     (including a tire), for installation on a motor vehicle, that 
     is the subject of a decision under section 30118(b) or a 
     notice required under section 30118(c) in a condition that it 
     may be reasonably used for its original purpose unless--
       ``(1) the defect or noncompliance is remedied as required 
     by this section before delivery under the sale or lease; or
       ``(2) notification of the defect or noncompliance is 
     required under section 30118(b) but enforcement of the order 
     is set aside in a civil action to which section 30121(d) 
     applies.''.

     SEC. 9. CERTIFICATION LABEL.

       Section 30115 of title 49, United States Code, is amended 
     by inserting ``(a) In General.--'' before ``A manufacturer'' 
     and by adding at the end the following:
       ``(b) Certification Label.--In the case of the 
     certification label affixed by an intermediate or final stage 
     manufacturer of a motor vehicle built in more than 1 stage, 
     each intermediate or final stage manufacturer shall certify 
     with respect to each applicable Federal motor vehicle safety 
     standard--
       ``(1) that it has complied with the specifications set 
     forth in the compliance documentation provided by the 
     incomplete motor vehicle manufacturer in accordance with 
     regulations prescribed by the Secretary; or
       ``(2) that it has elected to assume responsibility for 
     compliance with that standard.
     If the intermediate or final stage manufacturer elects to 
     assume responsibility for compliance with the standard 
     covered by the documentation provided by an incomplete motor 
     vehicle manufacturer, the intermediate or final stage 
     manufacturer shall notify the incomplete motor vehicle 
     manufacturer in writing within a reasonable time of affixing 
     the certification label. A violation of this subsection shall 
     not be subject to a civil penalty under section 30165.''.

     SEC. 10. ENDURANCE AND RESISTANCE STANDARDS FOR TIRES.

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

     SEC. 11. IMPROVED TIRE INFORMATION.

       (a) Tire Labeling.--Within 30 days after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     initiate a rulemaking proceeding to improve the labeling of 
     tires required by section 30123 of title 49, United States 
     Code to assist consumers in identifying tires that may be the 
     subject of a decision under section 30118(b) or a notice 
     required under section 30118(c). The Secretary shall complete 
     the rulemaking not later than June 1, 2002.
       (b) Inflation Levels and Load Limits.--In the rulemaking 
     initiated under subsection (a), the Secretary may take 
     whatever additional action is appropriate to ensure that the 
     public is aware of the importance of observing motor vehicle 
     tire load limits and maintaining proper tire inflation levels 
     for the safe operation of a motor vehicle. Such additional 
     action may include a requirement that the manufacturer of 
     motor vehicles provide the purchasers of the motor vehicles 
     information on appropriate tire inflation levels and load 
     limits if the Secretary determines that requiring such 
     manufacturers to provide such information is the most 
     appropriate way such information can be provided.

     SEC. 12. ROLLOVER TESTS.

       Section 30117 of title 49, United States Code, is amended 
     by adding at the end the following:
       ``(c) Rollover Tests.--
       ``(1) Development.--Not later than 2 years from the date of 
     enactment of this subsection, the Secretary shall--
       ``(A) develop a dynamic test on rollovers by motor vehicles 
     for the purposes of a consumer information program; and
       ``(B) carry out a program of conducting such tests.
       ``(2) Test results.--As the Secretary develops a test under 
     paragraph (1)(A), the Secretary shall conduct a rulemaking to 
     determine how best to disseminate test results to the public.
       ``(3) Motor vehicles covered.--This subsection applies to 
     motor vehicles, including passenger cars, multipurpose 
     passenger vehicles, and trucks, with a gross vehicle weight 
     rating of 10,000 pounds or less. A motor vehicle designed to 
     provide temporary residential accommodations is not 
     covered.''.

     SEC. 13. TIRE PRESSURE WARNING.

       Not later than one year after the date of enactment of this 
     Act, the Secretary of Transportation shall complete a 
     rulemaking for a regulation to require a warning system in 
     new motor vehicles to indicate to the operator when a tire is 
     significantly under inflated. Such requirement shall become 
     effective not later than 2 years after the date of the 
     completion of such rulemaking.

     SEC. 14. IMPROVING THE SAFETY OF CHILD RESTRAINTS.

       (a) In General.--Not later than 12 months after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     initiate a rulemaking for the purpose of improving the safety 
     of child restraints, including minimizing head injuries from 
     side impact collisions.
       (b) Elements for Consideration.--In the rulemaking required 
     by subsection (a), the Secretary shall consider--
       (1) whether to require more comprehensive tests for child 
     restraints than the current Federal motor vehicle safety 
     standards requires, including the use of dynamic tests that--
       (A) replicate an array of crash conditions, such as side-
     impact crashes and rear-impact crashes; and
       (B) reflect the designs of passenger motor vehicles as of 
     the date of enactment of this Act;
       (2) whether to require the use of anthropomorphic test 
     devices that--
       (A) represent a greater range of sizes of children 
     including the need to require the use of an anthropomorphic 
     test device that is representative of a ten-year-old child; 
     and
       (B) are Hybrid III anthropomorphic test devices;
       (3) whether to require improved protection from head 
     injuries in side-impact and rear-impact crashes;
       (4) how to provide consumer information on the physical 
     compatibility of child restraints and vehicle seats on a 
     model-by-model basis;
       (5) whether to prescribe clearer and simpler labels and 
     instructions required to be placed on child restraints;
       (6) whether to amend Federal Motor Vehicle Safety Standard 
     No. 213 (49 C.F.R. 571.213) to cover restraints for children 
     weighing up to 80 pounds;
       (7) whether to establish booster seat performance and 
     structural integrity requirements to be dynamically tested in 
     3-point lap and shoulder belts;
       (8) whether to apply scaled injury criteria performance 
     levels, including neck injury, developed for Federal Motor 
     Vehicle Safety Standard No. 208 to child restraints and 
     booster seats covered by in Federal Motor Vehicle Safety 
     Standard No. 213; and
       (9) whether to include child restraint in each vehicle 
     crash tested under the New Car Assessment Program.
       (c) Report to Congress.--If the Secretary does not 
     incorporate any element described in subsection (b) in the 
     final rule, the Secretary shall explain, in a report to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Commerce submitted 
     within 30 days after issuing the final rule, specifically why 
     the Secretary did not incorporate any such element in the 
     final rule.
       (d) Completion.--Notwithstanding any other provision of 
     law, the Secretary shall

[[Page H9627]]

     complete the rulemaking required by subsection (a) not later 
     than 24 months after the date of enactment of this Act.
       (e) Child Restraint Defined.--In this section, the term 
     ``child restraint'' has the meaning given the term ``Child 
     restraint system'' in section 571.213 of title 49, Code of 
     Federal Regulations (as in effect on the date of enactment of 
     this Act).
       (f) Funding.--For each fiscal year, of the funds made 
     available to the Secretary for activities relating to safety, 
     not less than $750,000 shall be made available to carry out 
     crash testing of child restraints.
       (g) Child Restraint Safety Ratings Program.--No later than 
     12 months after the date of enactment of this Act, the 
     Secretary of Transportation shall issue a notice of proposed 
     rulemaking to establish a child restraint safety rating 
     consumer information program to provide practicable, readily 
     understandable, and timely information to consumers for use 
     in making informed decisions in the purchase of child 
     restraints. No later than 24 months after the date of 
     enactment of this Act the Secretary shall issue a final rule 
     establishing a child restraint safety rating program and 
     providing other consumer information which the Secretary 
     determines would be useful consumers who purchase child 
     restraint systems.
       (h) Booster Seat Study.--In addition to consideration of 
     booster seat performance and structural integrity contained 
     in subsection (b)(7), not later than 12 months after the date 
     of enactment of this Act, the Secretary of Transportation 
     shall initiate and complete a study, taking into account the 
     views of the public, on the use and effectiveness of 
     automobile booster seats for children, compiling information 
     on the advantages and disadvantages of using booster seats 
     and determining the benefits, if any, to children from use of 
     booster with lap and shoulder belts compared to children 
     using lap and shoulder belts alone, and submit a report on 
     the results of that study to the Congress.
       (i) Booster Seat Education Program.--The Secretary of 
     Transportation within 1 year after the date of enactment of 
     this Act shall develop 5 year strategic plan to reduce deaths 
     and injuries caused by failure to use the appropriate booster 
     seat in the 4 to 8 year old age group by 25 percent.

     SEC. 15. IMPROVING CRITERIA USED IN A RECALL.

       (a) Review of Standards and Criteria Used in Opening a 
     Defect or Noncompliance Investigation.--The Secretary shall, 
     not later than 30 days after the date of enactment of this 
     Act, undertake a comprehensive review of all standards, 
     criteria, procedures, and methods, including data management 
     and analysis used by the National Highway Traffic Safety 
     Administration in determining whether to open a defect or 
     noncompliance investigation pursuant to subchapter II or IV 
     of chapter 301 of title 49, United States Code, and shall 
     undertake such steps as may be necessary to update and 
     improve such standards, criteria, procedures, or methods, 
     including data management and analysis.
       (b) Report to Congress.--Not later than 1 year after the 
     date of enactment of this Act, the Secretary shall transmit 
     to the Committee on Commerce of the House of Representatives 
     and the Committee on Commerce, Science, and Transportation of 
     the Senate a report describing the Secretary's findings and 
     actions under subsection (a).

     SEC. 16. FOLLOW-UP REPORT.

       One year after the date of enactment of this Act, the 
     Secretary of Transportation shall report to the Congress on 
     the implementation of the amendments made by this Act and any 
     recommendations for additional amendments for consumer 
     safety.

     SEC. 17. AUTHORIZATION OF APPROPRIATIONS.

       In addition to any sums authorized to be appropriated by 
     sections 30104 or 32102 of title 49, United States Code, 
     there is authorized to be appropriated to the Secretary of 
     Transportation for the National Highway Traffic Safety 
     Administration for fiscal year 2001 $9,100,000 to carry out 
     this Act and the amendments made by this Act. Such funds 
     shall not be available for the general administrative 
     expenses of the Secretary or the Administration.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Louisiana (Mr. Tauzin) and the gentleman from Michigan (Mr. Dingell) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Louisiana (Mr. Tauzin).


                             General Leave

  Mr. TAUZIN. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
and to include extraneous material on H.R. 5164.
  The SPEAKER pro tempore (Mr. Ryan of Wisconsin). Is there objection 
to the request of the gentleman from Louisiana?
  There was no objection.
  Mr. TAUZIN. Mr. Speaker, I yield myself 6 minutes.
  Mr. Speaker, I am proud to rise in support of this bill, H.R. 5164, 
the Transportation Recall Enhancement, Accountability, and 
Documentation Act, or the TREAD act, introduced by my colleague the 
gentleman from Michigan (Mr. Upton), the chairman of the Subcommittee 
on Oversight and Investigations of the Committee on Commerce of the 
House.
  Together our two subcommittees have been working to uncover the facts 
surrounding the Firestone tire recall action focusing primarily on the 
action as it pertains to relevant Ford vehicles, in particular one of 
the Nation's most popular SUVs, the Ford Explorer.
  I want to begin by thanking my dear friend the gentleman from 
Michigan (Mr. Dingell) and the ranking minority member of our 
subcommittee, the gentleman from Massachusetts (Mr. Markey), again as 
well as the gentleman from Michigan (Mr. Upton), the author of this 
legislation, for not only the success we have had in bringing this bill 
to the floor but more importantly for I think an extraordinary 
investigative series of hearings, an investigation that even now goes 
on.
  Up here in Congress we always hear about how we must act on something 
because it is life or death. Well, in regard to this situation, no one 
has been exaggerating. This is about life and death.
  As we are aware, Bridgestone/Firestone announced on August 9 a 
voluntary recall of 6.5 million of its 15-inch tires used on light 
trucks and sport utility vehicles. The recalled tires and other tires 
have been implicated in an increasing number of deaths and injuries in 
the United States, and the investigation is indeed far from complete.
  Despite the ongoing investigation by NHTSA, the question of what is 
the precise cause of these tire tread separation accidents remains 
largely unanswered.
  At our hearings we did not expect to find the smoking gun. Instead, 
the main purpose of our joint hearings was to find out what happened 
with the process, who knew what, and what they did with the information 
that was available to them.
  We heard from the companies and from NHTSA on their progress in 
getting to the root cause of the tire failures on these Ford Explorers. 
We examined the testing done by Firestone and Ford on those tires, and 
we delved into what type of testing did the National Highway Traffic 
Safety Administration actually require and was that enough to protect 
the American public.
  It was the hope of every member of the two subcommittees that we 
would work together in a bipartisan fashion to use these hearings and 
this horrible experience to learn how to correct the process and, more 
importantly, how to prevent something of this magnitude from ever 
happening again.
  I would like to again express my sincere appreciation to Members on 
both sides of the aisle of the Committee on Commerce for working 
together in such a constructive fashion to craft what we believe is 
very reasonable and targeted legislation to ameliorate the shortfalls 
in our law that were uncovered in the hearings and in the ongoing 
investigation.
  Given the extraordinary time constraints associated with the task, it 
was absolutely imperative that this legislation move through the 
committee process as quickly as possible.
  In that regard, I wish to thank the staff and the chairman of the 
Committee on the Judiciary who were very helpful in working with the 
Committee on Commerce. We are often at odds in jurisdictional debates, 
but the Committee on the Judiciary was extremely helpful in crafting 
those sections of our bill that have to do with criminal sanctions.
  H.R. 5164 is intended to address problems raised in the investigation 
and the accompanying hearings. The hearings highlighted the fact that 
the information available to NHTSA regarding motor vehicles and these 
tires was in fact inadequate.
  It also became clear that NHTSA did not effectively use the data that 
was available to spot trends that were related to these tire failures.
  I would like to touch on some of the important provisions contained 
in the bill.

                              {time}  0000

  The bill, for example, requires that manufacturers report actual and 
potential defects in motor vehicles and products in foreign countries. 
This covers similar models, not just those models offered for sale in 
the United States.
  The bill directs the Secretary to promulgate rules to require 
manufacturers

[[Page H9628]]

to provide early warning reporting data, including warranty and claims 
data and such other data as may be requested by the Secretary. I am 
particularly thankful for our friend the gentleman from Massachusetts 
(Mr. Markey) for the language in this area. Importantly, the Secretary 
must make certain findings regarding the need and utilization of this 
data. We require NHTSA to harmonize the collection of this information 
in a manner that enables it to quickly and more efficiently identify 
problematic patterns in products and vehicles.
  The bill lengthens the period in which a manufacturer of a motor 
vehicle or a tire must remedy the defect without charge, and directs 
the Secretary to conduct a rulemaking to upgrade the 30-year-old tire 
standard to bring it in line with modern tire technology.
  The bill directs the Secretary to review procedures for opening a 
defect investigation and directs the Secretary to conduct a rulemaking 
to improve tire labeling so that we do not have to crawl under our cars 
to see what our tires are really made of and what size and what 
pressure they should be operated under.
  The bill prohibits the resale of motor vehicle equipment removed and 
replaced as a part of a recall. It provides additional funding for 
NHTSA consistent with the appropriation already provided tied to 
carrying out the provisions of this act.
  The bill increases civil penalties to $5,000 per violation per day 
and a maximum of $15 million and it provides enhanced criminal 
penalties for violations of existing law that requires filing honest 
and good information with the government and provides that a person who 
has specific intent of misleading the Secretary with respect to motor 
vehicle defects that have caused death or serious bodily injury would 
suffer more serious criminal penalties.
  Importantly, the bill encourages the reporting of information and 
provides a safe harbor for those who do, but it makes that safe harbor 
only available to someone who did not actually have actual knowledge 
that false reporting or incorrect reporting would result in serious 
injury or death.
  Mr. Speaker, I urge all of my colleagues to report this very 
reasonable bipartisan legislation that passed our committee on a 43-0 
vote. I encourage literally the House to pass it on to the Senate and 
to do this important thing for this Nation to make sure this national 
tragedy does not happen again in the future.
  Mr. Speaker, I reserve the balance of my time.
  Mr. DINGELL. Mr. Speaker, I yield myself 3 minutes.
  (Mr. DINGELL asked and was given permission to revise and extend his 
remarks.)
  Mr. DINGELL. Mr. Speaker, I rise in support of H.R. 5164, the 
Transportation Recall Enhancement, Accountability and Documentation 
Act. This is important legislation of which I was a cosponsor and it 
has bipartisan support. It was reported by the Committee on Commerce by 
a unanimous recorded vote of 42-0.
  Firestone's recall of 14.4 million tires which it announced in August 
of this year is the second largest tire recall ever. It is surpassed 
only by Firestone's recall of 14.5 million tires in 1978. The recent 
recall came about only after Ford Motor Company whose vehicles were 
equipped with many of the recalled tires was given access to 
Firestone's claims data in late July and was able to link 46 deaths and 
a large number of claims to accidents involving two 15-inch models of 
Firestone tires, the ATX and the Wilderness AT.
  Since August 9, the number of fatalities attributable to accidents 
involving the recall of Firestone tires has grown to 101 according to 
NHTSA, the National Highway Traffic Safety Administration.
  Mr. Speaker, I would note that the gentleman from Louisiana (Mr. 
Tauzin), the gentleman from Michigan (Mr. Upton), and the gentleman 
from Massachusetts (Mr. Markey) deserve a great deal of credit for what 
has transpired here as does the gentleman from Minnesota (Mr. Luther), 
the gentleman from Illinois (Mr. Shimkus) and the gentleman from Ohio 
(Mr. Sawyer). They have worked hard, as have a number of other Members 
too numerous to be mentioned at this time.
  In any event, the legislation is necessary. It needs to be adopted at 
an early time.
  Mr. Speaker, I rise in support of H.R. 5164, the Transportation 
Recall Enhancement, Accountability, and Documentation Act. This 
important legislation, of which I am a cosponsor, has broad-based, 
bipartisan support. It was reported out of the Commerce Committee by a 
unanimous, recorded vote of 42 to 0.
  Firestone's recall of 14.4 million tires, which it announced on 
August 9th of this year, is the second largest tire recall ever. It is 
surpassed only by Firestone's recall of 14.5 million tires in 1978.
  The recent recall came about only after Ford Motor Company, whose 
vehicles were equipped with many of the recalled tires, was given 
access to Firestone's claims data in late July and was able to link 46 
deaths and a large number of claims to accidents involving two 15-inch 
models of Firestone tires--the ATX and the Wilderness AT. Since August 
9th, the number of fatalities attributable to accidents involving the 
recalled Firestone tires has grown to 101, according to the National 
Highway Traffic Safety Administration (NHTSA).
  Even today, countless Americans are on the road--picking up their 
kids, driving to work--and the last thing that should worry them is the 
quality and soundness of their tires.
  Mr. Speaker, time is of the essence. H.R. 5164 can and should be 
enacted into law this year. It directly responds to the problems that 
the committee's hearings uncovered in the Firestone tire recall case. 
The legislation directs the National Highway Traffic Safety 
Administration (NHTSA) to develop a plan for analyzing and using 
information it receives. This is important because the hearings showed 
that more than two years ago, NHTSA had information on 47 cases of 
tread separation involving the recalled tires, but failed to do 
anything with the information it already had.
  In addition, this legislation requires manufacturers to give NHTSA 
claims data and other information that proved to be so important in the 
Firestone case. If this legislation becomes law, manufacturers will 
have to notify NHTSA about recalls or customer satisfaction actions 
taken in foreign countries. Furthermore, new enhanced criminal 
penalties will apply to manufacturers and others, if they knowingly and 
willfully withhold or falsify information with the specific intention 
of misleading the Secretary concerning safety related defects that have 
caused death or serious bodily injury.
  Mr. Speaker, the criminal penalties provided in this legislation fit 
the requirements set out by Transportation Secretary Rodney Slater when 
he testified before the committee. At that time, Secretary Slater said 
the wrong kind of criminal penalties could slow down NHTSA's 
enforcement activities, and that he would only support criminal 
penalties for ``egregious activity'' and ``serious matters''. The 
criminal penalties provided in the legislation strike the proper 
balance between holding people accountable for their actions without 
discouraging voluntary reporting and cooperation with government 
agencies.
  We have adopted an amendment on criminal penalties which will ensure 
that the safe harbor provisions cannot be used by an individual if that 
individual had actual knowledge at the time of the violation that the 
violation would result in accident causing death or serious bodily 
injury, as the gentleman from Louisiana, Mr. Tauzin, stated in his 
explanation of the provision.
  Mr. Speaker, I also call to my colleagues' attention the fact that 
this legislation authorizes $9.1 million for NHTSA, the full amount 
that the Agency requested to deal with matters related to the Firestone 
tire recall. While budget cuts in the past may have hindered NHTSA's 
activities in important areas, it is clear that, at this time, 
Republican, and Democratic members of the committee recognize the 
importance of NHTSA's work.
  I would note, however, that we must move quickly, if we are to help 
NHTSA prevent a recurrence of the kind of problem that occurred in the 
Firestone case. Time is quickly running out for this Congress. While 
there is not enough time to solve every problem at NHTSA, we can, and 
we should, enact legislation to deal with the major problems uncovered 
in the committee's investigation of the recent Firestone tire recalls.
  Mr. Speaker, public concern is great, and not just about the dangers 
of driving on the recalled tires. The public rightly perceives that 
both Firestone and NHTSA failed to respond early on to information and 
warnings that should have alerted them to the problems with the 
recalled Firestone tires. Those failures caused consumers to be exposed 
to risks of injury and death far longer than should have been the case. 
Both NHTSA and the companies involved need to take affirmative steps to 
restore public confidence.
  Mr. Speaker, enactment of this legislation will help restore public 
confidence. I urge my colleagues to support H.R. 5164.
  Mr. Speaker, I reserve the balance of my time.

[[Page H9629]]

  Mr. TAUZIN. Mr. Speaker, I am pleased to yield 5 minutes to the 
gentleman from Michigan (Mr. Upton), the author of this legislation, 
the chairman of the Subcommittee on Oversight and Investigations.
  (Mr. UPTON asked and was given permission to revise and extend his 
remarks.)
  Mr. UPTON. Mr. Speaker, I would like to associate my remarks with 
those that have gone before me, both my good friend down the hall, my 
colleague from the great State of Michigan (Mr. Dingell), and certainly 
the chairman of the Subcommittee on Telecommunications, Trade and 
Consumer Protection, the gentleman from Louisiana (Mr. Tauzin).
  This effort has been bipartisan from the very start, from the very 
get-go. There are a lot of people here to thank. Obviously the 
gentleman from Virginia (Mr. Bliley) for getting this on the fast track 
through subcommittee and full committee last week, the hearings that 
the gentleman from Louisiana (Mr. Tauzin) and I conducted last month, 
the many hours of hearings, and his leadership on this has been 
refreshing for the Congress to get this done. But particularly as we 
have reached across on both sides of the aisle, working with my good 
friend the gentleman from Michigan (Mr. Dingell), the gentleman from 
Massachusetts (Mr. Markey) and others and the Committee on the 
Judiciary, we have in fact put together a bill that is solid, that is 
common sense. We identified major problems and we addressed them with 
this legislation.
  I looked back at the record back in the 1970s. There was another big 
tire recall. It was the Firestone 500 tire. A lot of evidence came 
forth. A lot of problems were identified. Yet the Congress did not 
move, the House or Senate, to actually correct it and here we are 25, 
30 years later and we are undergoing the same thing. But this is much 
more of a tragedy, for we have lost more than 100 lives because of 
these tires. We have seen hundreds and hundreds of accidents, many 
serious injuries. What this bill does is it corrects those problems.
  As chairman of the Subcommittee on Oversight and Investigations, our 
investigative staff went out and, in fact, we did collect the evidence, 
we did identify the problems, and we worked very closely with the 
legislative subcommittee, and the gentleman from Louisiana (Mr. Tauzin) 
did a wonderful job of laying that out in the many days and the many 
hours of hearings that we had the last 6 weeks. And we worked in a 
bipartisan fashion to get this thing done. And here we are early now in 
the morning, in the waning days of the Congress trying to complete this 
task.
  The gentleman from Louisiana talked about the many positives about 
this bill so that in fact this cannot happen again. And now passing 
this tonight as we will do, or this morning I guess I should say, 
working with the Senate to make sure that this gets done, already 
talking with the White House to make sure that this bill lands on the 
President's desk and he is going to be able to sign it. Shame on us, 
shame on this Congress if we cannot get this bill done in the last 
couple of days.
  I think it is a terrific credit to the staff, to the Members, to get 
this bill done tonight in this bipartisan way dealing with the 
information that we learned over the last 4 or 5 weeks, working with 
all those involved on this very important issue to in fact put together 
a bill that would pass in the full Committee on Commerce, 42-0, and 
again hopefully on the floor tonight without dissent.
  Mr. DINGELL. Mr. Speaker, I yield 3 minutes to the distinguished 
gentleman from Massachusetts (Mr. Markey).
  Mr. MARKEY. Mr. Speaker, I thank the gentleman from Michigan very 
much for yielding me this time.
  I too want to go down the litany of saints who have participated in 
the construction of this piece of legislation, the gentleman from 
Michigan (Mr. Dingell), the gentleman from Minnesota (Mr. Luther) on 
our side along with many others, the gentleman from Louisiana (Mr. 
Tauzin), the gentleman from Michigan (Mr. Upton), the gentleman from 
Virginia (Mr. Bliley) and many others on the other side.
  This has been a piece of legislation which obviously has had to move 
very quickly. I thank the majority for their cooperation, including 
three amendments that I was particularly interested in: Dynamic testing 
so that we would be able to ensure that there is a better understanding 
of exactly what happens to these vehicles under road conditions rather 
than some static test that really does not test the full capabilities 
of vehicles; ensuring that there is a warning system in vehicles in the 
event that there is a problem with pressure of a tire that could cause 
a danger to those who are using the car or any vehicle; and an early 
warning system as well so that there is ample notification that there 
could be defects in any of these products.
  What I would like to do right now is to rise to engage the gentleman 
from Louisiana in a colloquy in order to provide some clarification 
concerning two matters of particular concerns to the public.

                              {time}  2410

  First, under the section entitled ``early warning requirements,'' we 
provide for the reporting of new information to NHTSA generally at an 
earlier stage than the stage when an actual recall takes place based on 
the finding of a defect. To protect the confidentiality of this new 
early stage information, the bill provides in Section 2(b) in the 
subsection titled ``disclosure'' that such information shall be treated 
as confidential unless the Secretary makes a finding that its 
disclosure would assist in ensuring public safety, but with respect to 
information that NHTSA currently requires be disclosed to the public it 
is my understanding of the committee's intention that we not provide 
manufacturers with the ability to hide from public disclosure 
information which under current law must be disclosed. Would the 
gentleman from Louisiana (Mr. Tauzin) agree that this special 
disclosure provision for new early stage information is not intended to 
protect from disclosure that is currently disclosed under existing law 
such as information about actual defects or recalls?
  Mr. TAUZIN. Mr. Speaker, will the gentleman yield?
  Mr. MARKEY. I yield to the gentleman from Louisiana.
  Mr. TAUZIN. Mr. Speaker, the gentleman is correct.
  Mr. MARKEY. Mr. Speaker, I think my wife is calling me here. I will 
not answer it at this time.
  Hon, I will be calling you back in just a second.


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (Mr. Ryan of Wisconsin). The gentleman will 
disable his telephone.
  Mr. MARKEY. Mr. Speaker, I would like to engage the gentleman from 
Louisiana (Mr. Tauzin) in this colloquy.
  Second, in the same section in the subsection entitled ``information 
in the possession of manufacturer,'' we provide that the Secretary may 
not require a manufacturer to maintain and submit records respecting 
information not in the possession of the manufacturer. Concern has been 
expressed that this provision not become a loophole for unscrupulous 
manufacturers who might be willing to destroy a record in order to 
demonstrate that it is no longer in its possession. Would the gentleman 
agree that it is in the Secretary's discretion to require a 
manufacturer to maintain records that are in fact in the manufacturer's 
possession and that it would be a violation of such a requirement to 
destroy such a record?
  Mr. TAUZIN. Mr. Speaker, will the gentleman yield?
  Mr. MARKEY. I yield to the gentleman from Louisiana.
  Mr. TAUZIN. The gentleman is again correct.
  Mr. MARKEY. Mr. Speaker, I thank the gentleman from Louisiana (Mr. 
Tauzin) for his responses.
  Mr. Speaker, I note the gentleman from Illinois who is here and he 
deserves special praise for his work on child safety seats.
  Mr. TAUZIN. Mr. Speaker, will the gentleman yield?
  Mr. MARKEY. I yield to the gentleman from Louisiana.
  Mr. TAUZIN. Mr. Speaker, I simply again want to tell the gentleman 
again how much I deeply appreciate his contributions to the legislation 
and to the hearings.

[[Page H9630]]

  Mr. MARKEY. Mr. Speaker, I hope that we can pass this TREAD bill this 
year so we do not have to come back.
  I wanted to make sure that everyone understand how important it is 
that we move together to pass this legislation this year.
  Mr. TAUZIN. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Illinois (Mr. Shimkus), a member of the Committee on 
Commerce.
  Mr. SHIMKUS. Mr. Speaker, I rise in support of H.R. 5164, the TREAD 
Act, and I would like to thank the gentleman from Virginia (Mr. 
Bliley), the gentleman from Louisiana (Mr. Tauzin), the gentleman from 
Michigan (Mr. Upton), the gentleman from Massachusetts (Mr. Markey) for 
his help and, of course, the ranking member, the gentleman from 
Michigan (Mr. Dingell) for their support in this legislation.
  We worked hard in the Committee on Commerce to find out why our 
safety organization cannot connect the dots, identify the problem and 
warn consumers about the Ford Firestone accidents. The TREAD Act is our 
response. I also want to thank the chairman for including provisions in 
my bill, the Child Passenger Safety Act of 2000. Each year more than 
1,500 children below the age of 9 are killed and another 20,000 suffer 
incapacitating injuries in motor vehicle crashes. Parents put their 
trust in the government standards to assure them that they are 
purchasing a safe child restraint seat. Unfortunately, like current 
tire standards, Federal car seat standards are woefully outdated. 
Testing and manufacturing standards are based on tests performed on a 
sled not in a real car, and only measure frontal impacts. Car seats are 
not subject to dynamic testing in various crash modes such as side, 
rear and rollover impacts. These would measure the durability of each 
seat when subject to real crash scenarios.
  In addition, Federal standards and regulations do not address the 
safety needs of children over the age of 4 who weigh more than 50 
pounds. It is not well-known that over-the-shoulder seat belts are not 
always safe for children. Booster seats should be used as a transition 
safety device for toddlers and small children. However, Federal 
standards have not been developed for manufacturers of boosters.
  As a parent of three young boys, I know firsthand that there is a 
lack of useful consumer information regarding child restraints to 
assist parents in making the best safety seat selections for their 
children. That is why I introduced the Child Passenger Safety Act. This 
legislation included in the TREAD Act will enhance the safety of 
children in motor vehicles by requiring the National Highway Traffic 
Safety Administration to improve child restraint safety performance 
testing and standards and provide parents with better consumer 
information and labeling for child restraints.
  The National Highway Traffic Safety Administration should be about 
the job of highway traffic safety. In passing the TREAD Act with the 
inclusion of the Child Passenger Safety Act and signing it into law, 
they can be about their business.
  Mr. DINGELL. Mr. Speaker, I yield 3 minutes to the distinguished 
gentleman from Minnesota (Mr. Luther).
  Mr. LUTHER. Mr. Speaker, I certainly want to thank the same key 
players here that have already been thanked adequately, the gentleman 
from Louisiana (Mr. Tauzin), the gentleman from Virginia (Mr. Bliley), 
the gentleman from Michigan (Mr. Dingell), the gentleman from Michigan 
(Mr. Upton), the gentleman from Massachusetts (Mr. Markey) and the 
staffs, as well as my own staff, for the excellent work in developing 
this sensible bipartisan piece of legislation.
  Mr. Speaker, I particularly want to highlight sections 7 and 8 of the 
bill. Those sections reflect an amendment that I authored that was 
added with the support of the gentleman from Louisiana (Mr. Tauzin), 
with the support of other Members in the Committee on Commerce. The 
goal that we had in adopting that particular amendment was, quite 
frankly, to get these tires off the road just as quickly as possible.
  I think there was general consensus that today there are still too 
many recalled tires in use. There are too many waiting lists at dealers 
in this country. That is an unacceptable situation and presents much 
too great of a risk to the consumers of America.
  First, under Section 7, tire manufacturers are absolutely required to 
print tire ID numbers so that consumers can easily determine if their 
tire is subject to a recall. We heard information to the effect that 
mechanics even today are having a hard time determining if a particular 
tire is subject to a recall. This will require that those ID numbers be 
on the sidewalls so that consumers themselves can make this 
determination.
  Secondly, Section 8 gives the government the flexibility and 
authority to require manufacturers to fully reimburse consumers for 
replacing defective parts with competitors' parts even if the 
manufacturer is unable to do so in a timely basis. The goal there 
being, let us get the problem taken care of and worry about the 
compensation later.

                              {time}  0020

  Moreover, manufacturers can be directed to fully reimburse consumers 
who replace the defective parts before the formal recall occurs.
  At this very moment, Firestone is having difficulty replacing their 
defective parts with new, safer parts. This delay puts consumers, as I 
mentioned, at risk, at an unacceptable risk of serious injury or death 
to them or to their family members.
  What this Section 8 will do is ensure that in the future, dangerous 
and defective parts will be off the road as quickly as possible.
  Again, I want to commend my colleagues on the Committee on Commerce 
for bringing this bill to the floor, this pro-consumer bill, this year, 
and for their commitment to getting this passed into law this year. I 
think it is just outstanding the work that has been done in this 
regard.
  I think what this act does show is that when we work together in a 
bipartisan manner like this, we can accomplish good things for the 
American consumer and attempt to ensure that tragedies like the one 
that we heard in this committee will never happen again.
  Mr. DINGELL. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. TAUZIN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, let me close very briefly. I do want to make a few 
comments.
  First of all, I want to say a word to the investigators on the 
Committee on Commerce. I think the Nation owes them a debt of 
gratitude. The investigators on the Democratic and Republican side of 
the aisle who work for our Committee on Commerce have done incredible 
work.
  Those who witnessed the hearings by which our Committee on Commerce 
and our two subcommittees delved into the causes of this problem, and 
hopefully the solutions that we bring to the House floor tonight, those 
hearings were in large measure determined by the great work of the 
investigative staff of our committee. I wanted to say a word of thanks 
to them. I think indeed our country is going to be better off because 
of their work.
  Secondly, I thought we ought to think about tonight the victims of 
this tragedy, the victims and their families. There are people still 
being injured and still, unfortunately, suffering severe injury, even 
death on the highway, as this awful recall continues. It may be the 
worst recall I have seen in all my years in public service.
  Until it is finished, until every family has safe tires to ride upon, 
our committee will continue its investigation and continue pressing the 
companies involved here to complete this recall in as quick a fashion 
as possible.
  I also think we ought to think about the workers at these two 
companies. I know they have been terribly stressed by this awful 
position the two companies find themselves in, both Bridgestone/
Firestone and also the Ford Motor Company.
  Obviously, this has been a trying time for all the families of the 
workers who support these two great American companies. On the other 
hand, both companies obviously have a lot to answer to as this 
investigation continues.
  I think the work we did is going to help victims recover in the 
courts of our land, recover damages for accidents and deaths. I hope 
that will be one of the good effects of our investigation, that the 
facts we uncovered will assist them in proper recovery.

[[Page H9631]]

  I also want to make the point that what we have tried to do is not 
determine who was liable, either civilly or otherwise. What we have 
tried to do is find out what was wrong with the process.
  In doing so, I wanted to first of all commend NHTSA for the many, 
many lives it has saved over the years and the good work that our 
national highway safety transportation agency does.
  We believe, from the facts we have found, that someone dropped the 
ball in this case. That is regrettable. But I think that should not 
take away from the fact that NHTSA is still a great agency that 
protects safety on the highways, and has in fact saved many lives.
  Finally, I wanted to point out that the legislation we will finally 
pass tonight is all about information. It is about getting the 
information in the proper hands so that, instead of an awful recall, 
instead of a body count accumulating before defective products are 
taken off the market, that in fact those products never make it to the 
marketplace in the first place, that we do not have to suffer the loss 
of American citizens to find out that something went wrong.
  Again, I want to thank all of my colleagues and all the staffs for 
the great work on this bill. I hope that before we adjourn this 
session, the words of the gentleman from Michigan (Mr. Upton) will ring 
in the ears of everyone who is left to consider that, that it would be 
an awful shame if we left this session without putting this bill for 
signature on the President's desk.
  Mr. HYDE. Mr. Speaker, we all understand the importance of this 
legislation. It would have been difficult, if not impossible, to ignore 
the well publicized incidents involving motor vehicles and their tires 
which have been highlighted in excellent oversight hearings by the 
Committee on Commerce. The result of these hearings has been to call 
into question the sufficiency of the regulatory scheme governing the 
motor vehicle industry, and to ask whether further incentives are 
needed to ensure that safety information will be made available to the 
public in a timely fashion. It was the considered opinion of the 
Commerce Committee that changes were needed, as evidenced by this 
bipartisan legislation that we have before us.
  The TREAD Act, as it is known, strengthens current reporting 
requirements about defects in motor vehicles, tires, or other motor 
vehicle equipment. It would also require reporting of defects in motor 
vehicles and products which occur in foreign countries, something that 
many believe would have saved lives had it been in place when safety 
incidents began occurring in places such as Venezuela and Saudi Arabia. 
As part of this intensified reporting scheme, H.R. 5164 would subject 
persons who intentionally violate these, as well as existing, reporting 
requirements to heightened criminal fines and penalties.
  In my view, this new criminal penalty section strikes an eminently 
reasonable balance. It penalizes truly intentional acts of withholding 
or falsifying safety information while continuing to encourage the 
motor vehicle industry to provide full information to the National 
Highway Transportation Safety Administration about possible safety 
problems involving their products. I see no striking departure in this 
legislation from existing principles of criminal law. In fact, if 
anything, it builds on current law. Section 1001 of Title 18 makes it a 
crime to make a false statement to the government. The Attorney General 
currently may, and will continue to have the authority to, prosecute 
anyone who either makes false reports to the NHTSA, or who fails to 
disclose information that is required by statute. What this bill does 
in rightly recognize that withholding information that, if known, could 
be the difference between life or death should carry a higher penalty. 
What it means, in essence, is that a person who intends to mislead the 
government about safety related defects will be subject to a harsher 
penalty than one who, just through reckless indifference, submits a 
form that contains false information. Both of these acts currently 
carry a maximum jail sentence of five years. Under H.R. 5164, an 
intentional misstatement (or omission) of information about safety 
related defects would lead to a trebled maximum penalty of 15 years.
  Under normal circumstances, the Committee on the Judiciary would have 
formally asserted and exercised its jurisdiction over the criminal 
penalties section of this legislation. However, at this late stage in 
the session it would have been difficult for us to do so without 
running the risk that it become delayed or bogged down by procedural 
roadblocks. Given the importance of this bill, we instead chose to work 
closely with the Commerce Committee and its staff to develop and 
perfect the criminal provisions. Included in our consultations with the 
Commerce Committee was a discussion of many of the issues that were 
identified to us by the Department of Justice. Where possible, we 
incorporated their constructive suggestions.
  I have been assured, however, that by electing not to formally 
exercise the committee's jurisdiction over these important criminal 
sections, we have in no way waived or limited our right to be fully 
represented on any conference committee that might be appointed to 
resolve differences with the Senate.
  It is my strong hope that this legislation will be enacted before the 
end of this legislative session, and that the new criminal provisions 
it contains will have the desired deterrent effect on the withholding 
of safety information, and a concurrent salutory effect on the safety 
of the motor vehicles available to American consumers. I congratulate 
its sponsors for their hard work in crafting a balanced measure which 
they were able to bring to the floor so expeditiously, and in such a 
bipartisan manner.
  Mr. GREEN of Texas. Mr. Speaker, I rise today in support of H.R. 
5164, the TREAD Act. This bill, of which I am a cosponsor, was 
introduced by my friends on the Commerce Committee, Representatives 
Tauzin and Upton.
  I would like especially to thank Representative Tauzin, the Chairman 
of the Telecommunications Subcommittee, for his willingness to work 
with our office on the two amendments, which were accepted.
  These amendments, which deal with keeping recalled and defective 
equipment out of the stream of commerce and the safety testing of 
vehicles, addressed key consumer safety issues and I am pleased they 
were included in this important legislation.
  Overall, this legislation will require companies to report foreign 
recalls to the National Highway Traffic Safety Administration (NHTSA) 
within five days.
  In addition, manufacturers will now be required to contact NHTSA 
immediately if they begin to notice a significant number of injuries 
associated with their product.
  The legislation will also increase the civil penalties and add 
criminal penalties to better encourage those companies to err on the 
side of caution if there is a safety question.
  Mr. Speaker, I believe that this bill will make our roads a safer 
place and it serves as a good starting point for when we take up the 
reauthorization of NHTSA next Congress.
  Mr. WAXMAN. Mr. Speaker, I rise in support of this bill because we 
need legislation that will improve the flow of important safety 
information from motor vehicle and motor vehicle parts manufacturers to 
federal regulators and consumers. This bill does not do all it should, 
but it does represent a modest step forward. And even more importantly, 
further improvements are possible in discussions with the Senate as we 
craft final legislation.
  There are several deficiencies in the bill that should be addressed 
by the conference committee in the event that Senator McCain's bill, S. 
3059, passes the Senate. Foremost among these are provisions that have 
the appearance of criminal penalties but will, in all likelihood, have 
no meaningful impact.
  The criminal provisions in this bill would only extend to a 
particularly exotic variety of false statements. It does nothing to 
punish a manufacturer's willful introduction of a deadly and defective 
product onto the market. Nor does it punish a manufacturer's knowing 
failure to act to prevent a deadly and defective product from reaching 
consumers. That is the type of conduct that the government needs to 
deter and needs to punish through the criminal law.
  In fact, the criminal provisions in this bill are probably 
unenforceable. To obtain a conviction under this bill, a prosecutor 
would first have to prove up all of the elements of a criminal false 
statement with respect to an auto safety reporting requirement. That 
conduct is already punishable by imprisonment under existing law, 18 
U.S.C. 1001. In addition, a prosecutor would need to prove that the 
accused made the false statement with (1) the specific intent, (2) to 
mislead the Secretary of Transportation, (3) with respect to safety 
related defects, (4) that caused death or grievous bodily harm to an 
individual. That's not all. On top of all that, a prosecutor must also 
prove that the accused failed to correct the error or omission within a 
reasonable time. How long a reasonable time is, and what exactly 
constitutes a correction is anyone's guess. The bill leaves it up to 
the Secretary of Transportation.
  If those aren't enough obstacles to successful enforcement, there's 
more: The Justice Department may only prosecute a violation of this 
statute at the request of the Transportation Secretary. A prosecutor 
can not commence a prosecution if the Secretary fails or refuses to 
act.
  There are so many obstacles to prosecution in this bill that it would 
probably never be used successfully, and it will probably do little to 
deter the egregious misconduct that we're all concerned about. We can 
and must do better than that.

[[Page H9632]]

  The provisions Senator McCain has included in S. 3059, while not 
perfect, are at least a better approach. The Senate bill focuses, not 
on false statements to government regulators, but more appropriately on 
a manufacturer's intentional failure to act to prevent a serious 
accident. That bill would make it unlawful for a director, officer, or 
agent of a manufacturer to authorize, order, or ratify the introduction 
of a motor vehicle or motor vehicle equipment if he or she knew that 
the company had failed to comply with a safety standard or failed to 
report a defect; knew the condition of a vehicle created an ``imminent 
serious danger of death or grievous bodily harm;'' and knew that the 
condition actually caused grievous bodily harm or death. I believe this 
provision more directly addresses the problem and will more effectively 
deter a manufacturer from ignoring serious safety defects simply to 
pursue a profit.
  If and when this bill reaches the conference committee, we should at 
least adopt the Senate provision. I intend to work with Senator McCain 
to further improve the criminal penalty provisions he has already 
included.
  This legislation also fails to provide the National Highway Traffic 
Safety Administration with the civil enforcement provisions that they 
say they need. NHTSA has been hamstrung by its inability to assess 
civil penalties administratively. Almost every other regulatory agency 
has this authority, including the Environmental Protection Agency, the 
Food and Drug Administration, and agencies within the Department of 
Transportation. While NHTSA has requested this authority, the House 
Commerce Committee has denied it.
  This creates the baffling situation where members of Congress are 
attacking NHTSA for not enforcing motor vehicle safety laws more 
aggressively, while denying NHTSA's request for adequate enforcement 
powers.
  Finally, there are also lost opportunities in this legislation. In 
the early 1970's, NHTSA issued a roof crush resistance standard for 
passenger cars. This standard is outdated and fails to model what 
happens in real-world crashes.
  This is a very serious matter. According to NHTSA, in 1998 there were 
almost 11 million vehicle crashes involving rollovers. Over 3.6 million 
of those accidents resulted in injury or death. Rollovers played a part 
in over 15 percent of the passenger car crashes that resulted in 
fatalities. Rollovers occurred in 36 percent of sport utility vehicle 
accidents that resulted in fatalities.
  This legislation should require NHTSA to issue a new roof crush 
standard. Our cars have changed remarkably since the 1970's, and it's 
just commonsense that our safety standards ought to keep pace with 
these changes.
  Mr. Speaker, this is the time to pass strong legislation that 
provides meaningful protection for the public. I urge my colleagues to 
pass this bill so that we can work with the Senate to craft legislation 
that families across our country deserve.
  Mr. TAUZIN. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Ryan of Wisconsin). The question is on 
the motion offered by the gentleman from Louisiana (Mr. Tauzin) that 
the House suspend the rules and pass the bill, H.R. 5164, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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