[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repealed and such section shall be effective as if such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.
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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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