[Congressional Record (Bound Edition), Volume 161 (2015), Part 8]
[Senate]
[Pages 11238-11245]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. REED (for himself, Mr. Grassley, and Mr. Leahy):
  S. 1730. A bill to enhance civil penalties under the Federal 
securities laws, and for other purposes; to the Committee on Banking, 
Housing, and Urban Affairs.
  Mr. REED. Mr. President, the Stronger Enforcement of Civil Penalties 
Act, which I am pleased to be introducing today with Senator Grassley 
and Senator Leahy, will enhance the ability of securities regulators to 
protect investors and demand greater accountability from market 
players. Unfortunately, even after the financial crisis that crippled 
the economy, we continue to see calculated wrongdoing by some on Wall 
Street. Without the consequence of meaningful penalties to serve as an 
effective deterrent, I fear this disturbing culture of misconduct will 
persist.
  The existing regime for securities law violations limits by statute 
the amount of penalties the Securities and Exchange Commission, SEC, 
can fine an institution or individual. During hearings I held in 2011 
in the Securities, Insurance, and Investment Banking Subcommittee, I 
learned how this limitation significantly interferes with the SEC's 
ability to perform its enforcement duties. At that time, the agency had 
been criticized by a Federal judge for not obtaining a larger 
settlement against Citigroup, a major player in the financial crisis 
that settled with the SEC in an amount that was a fraction of the cost 
the bank had inflicted on investors. The SEC explained that the reason 
for the low settlement amount was a statutory prohibition from levying 
a larger penalty.
  The bipartisan bill Senator Grassley and I are introducing updates 
and strengthens the SEC's civil penalties statute. It aims to make 
potential and current offenders think twice before engaging in 
misconduct by increasing the maximum civil monetary penalties permitted 
by statute, directly linking the size of the maximum penalties to the 
amount of losses suffered by victims of a violation, and substantially 
raising the financial stakes for repeat offenders of our nation's 
securities laws.
  Specifically, our bill would give the SEC more options to tailor 
penalties to the specific circumstances of a given violation. In 
addition to raising the per violation caps for severe, or ``tier 
three,'' violations to $1 million per offense for individuals and $10 
million per offense for entities, the bill would also give the SEC 
additional options to obtain greater penalties based on the ill-gotten 
gains of the violator or on the financial harm to investors.
  Our bill also addresses the disconcerting trend of repeat offenders 
on Wall Street through two provisions. The first would allow the SEC to 
triple the penalty cap applicable to recidivists who have been held 
either criminally or civilly liable for securities fraud within the 
preceding five years. The second would allow the SEC to seek a civil 
penalty against those that violate existing federal court or SEC 
orders, an approach that would be more efficient, effective, and 
flexible than the current civil contempt remedy. These two changes 
would substantially improve the ability of the SEC's enforcement 
program to ratchet up penalties for recidivists.
  More than half of all U.S. households own securities. They deserve a 
strong cop on the beat that has the tools it needs to go after 
fraudsters and pursue the difficult cases arising from our increasingly 
complex financial markets. The Stronger Enforcement of Civil Penalties 
Act will give the SEC more tools to demand meaningful accountability 
from Wall Street, which in turn

[[Page 11239]]

will increase transparency and confidence in our financial system. I 
urge our colleagues to support this important bipartisan legislation to 
enhance the SEC's ability to protect investors and crack down on fraud.
                                 ______
                                 
      By Mrs. MURRAY (for herself and Ms. Hirono):
  S. 1731. A bill to amend title 38, United States Code, to waive the 
minimum period of continuous active duty in the Armed Forces for 
receipt of certain benefits for homeless veterans, to authorize the 
Secretary of Veterans Affairs to furnish such benefits to homeless 
veterans with discharges or releases from service in the Armed Forces 
with other than dishonorable conditions, and for other purposes; to the 
Committee on Veterans' Affairs.
  Mrs. MURRAY. Mr. President, today I am introducing the Homeless 
Veterans Services Protection Act of 2015.
  This legislation would ensure continued access to homeless services 
for some of our country's most vulnerable veterans who are currently at 
risk of losing these critical services.
  The administration set the difficult but commendable goal of 
eliminating veteran homelessness. Through tremendous efforts at every 
level of government, and with the help of community groups, non-profits 
and the private sector, we have made major progress toward achieving 
that goal.
  But we know we have a lot of work to do. Veterans are at greater risk 
of becoming homeless than non-veterans and on any given night as many 
as 50,000 veterans are homeless across the United States.
  This is unacceptable.
  Our veterans made great sacrifices while serving our country and our 
commitment to them is especially important. This commitment includes 
providing benefits, medical care, support, and assistance to prevent 
homelessness.
  Two of our greatest tools are the Department of Veterans Affairs' 
Grant and Per Diem program and the Supportive Services for Veteran 
Families program through partnerships with homeless service providers 
around the country.
  These important and successful programs assist very low-income 
veterans and their families who either live in permanent housing or are 
transitioning from homelessness. The programs help our veterans with 
rent, utilities, moving costs, outreach, case management, and obtaining 
benefits.
  But last year, after a legal review of its policies, VA was forced to 
prepare for a change that would have cut off services to veterans who 
did not meet certain length of service or discharge requirements, 
changing policies that homeless service providers had followed for 
decades.
  That would be a heartless, bureaucratic move that could have put 
thousands of veterans on the streets--practically overnight. According 
to some of our leading veterans and homeless groups--including The 
American Legion, the National Alliance to End Homelessness the National 
Low Income Housing Coalition, and the National Coalition for Homeless 
Veterans--had the policy been enacted, VA would have had to stop 
serving about 15 percent of the homeless veteran population, and in 
certain urban areas up to 30 percent of homeless veterans would have 
been turned away.
  The veterans community alerted me to this possible change--and while 
I am proud that we prevented these changes in the short-term--it is 
very concerning that a legal opinion could be issued at any time to 
undo all of that.
  There is good reason to reverse this policy for good. A report from 
VA's Inspector General, issued just last week, shows how VA's unclear 
or outdated guidance hurts veterans, and how VA's proposed policy 
changes work against efforts to help homeless veterans.
  As a senior member of the Senate Veterans' Affairs Committee and the 
daughter of a World War II veteran, I'm proud that the bill I have 
introduced today would permanently protect homeless veterans' access to 
housing and services.
  This bill makes it clear that our country takes care of those who 
have served, and we don't allow bureaucracy to dictate who gets a roof 
over their head and who doesn't.
  Many veterans struggle with mental illness, substance abuse, or 
simply finding a steady job--all factors that can lead to homelessness.
  And veterans of the wars in Iraq and Afghanistan are increasingly 
becoming homeless--numbers that will continue to increase in the coming 
years unless help is available for them.
  The idea that any of these veterans returning from service could 
become homeless because of these policies is unacceptable.
  If we ever hope to end veteran homelessness we must do everything we 
can to reach this goal, and I want to make sure that VA's policies are 
moving us in that direction.
  I don't just believe that the United States can do better; I believe 
we must do better for those who've sacrificed so much for our country.
  Finally I would like to thank Senator Hirono for cosponsoring this 
bill and being a champion of the men and women who have served our 
country.
                                 ______
                                 
      By Mr. WYDEN (for himself, Mr. Schumer, Ms. Stabenow, Ms. 
        Cantwell, Mr. Nelson, Mr. Menendez, Mr. Carper, Mr. Cardin, Mr. 
        Brown, Mr. Bennet, Mr. Casey, Mr. Warner, Mr. Reid, Ms. Hirono, 
        Mrs. Gillibrand, Mr. Whitehouse, Mrs. McCaskill, Mr. Markey, 
        Mr. Sanders, Ms. Warren, Mr. Blumenthal, Ms. Klobuchar, Mr. 
        Leahy, Mr. Franken, Mr. Merkley, Mrs. Boxer, Mr. Durbin, Mrs. 
        Shaheen, Mr. Murphy, Mr. Heinrich, Mr. Schatz, Ms. Baldwin, 
        Mrs. Murray, Mr. Coons, Ms. Mikulski, Ms. Heitkamp, Mr. Tester, 
        Mr. Booker, Mr. Reed, Mr. Kaine, Mr. Peters, Mr. Donnelly, Mrs. 
        Feinstein, Mr. Udall, Mr. King, and Mr. Manchin):
  S. 1740. A bill to amend the Internal Revenue Code of 1986 to clarify 
that all provisions shall apply to legally married same-sex couples in 
the same manner as other married couples, and for other purposes; to 
the Committee on Finance.
  Mr. WYDEN. Mr. President, 2 weeks ago, the Supreme Court handed down 
a wonderful decision recognizing that all Americans have the right to 
marry the man or woman they love. It was a triumphant movement in the 
march toward justice, one I was happy to celebrate at home with a group 
of Oregonians who were truly elated. In my remarks that morning, I 
said: Love won and there is more to be done.
  So, today, along with 36 colleagues, I am introducing the Equal 
Dignity for Married Taxpayers Act of 2015. What this legislation does 
is it removes each gender-specific reference to marriage from the Tax 
Code. Now, in his opinion for the Court, Justice Kennedy pointed out 
the importance of providing equal dignity in the eyes of the law.
  Our legislation enshrines that equal dignity and respect in our 
Nation's tax laws by recognizing a new dawn of liberty for all 
Americans. In my view, on a more symbolic level, this legislation is 
one way to help close the door on an era when too many of our laws 
denied equality to the LGBTQ community. In my view, this is a 
particularly important step in the march toward justice. It is a 
straightforward way to cement the recognition that all Americans share 
certain unalienable rights--among them, life, liberty, and the pursuit 
of happiness.
  I was proud to vote against the Defense of Marriage Act in the 
Congress 20 years ago and fight measure 36 a decade ago in Oregon. I 
have always said--always said--that if you don't like gay marriage, 
don't get one. This is fundamentally an issue of justice and of 
liberty. I hope all Americans take pride in the wave of acceptance and 
equality that has rolled across our land and this decision embodies.
  This legislation now has 36 cosponsors. My hope is this body will 
support this proposal on a bipartisan basis. I look forward to working 
with our colleagues to take this next step. It is a step toward the arc 
of justice--the arc of justice that says that all of us--all of us--
have to be free. All of us should enjoy true and full equality for all

[[Page 11240]]

Americans. I am very pleased 36 colleagues are joining me in this 
proposal this morning. I hope the Senate will pass it expeditiously on 
a bipartisan basis.
                                 ______
                                 
      By Mr. NELSON (for himself, Mr. Blumenthal, and Mr. Markey):
  S. 1743. A bill to provide greater transparency, accountability, and 
safety authority to the National Highway Traffic Safety Administration, 
and for other purposes; to the Committee on Commerce, Science, and 
Transportation.
  Mr. NELSON. Mr. President, today, I am introducing the Motor Vehicle 
Safety Act of 2015. I introduce this bill with Senator Blumenthal, the 
Ranking Member of the Subcommittee on Consumer Protection, Product 
Safety, Insurance, and Data Security, as well as Senator Markey, a 
valued Member of the Commerce Committee.
  Takata airbags. GM ignition switches. Toyota unintended acceleration. 
By now, we all know the tragic stories: automakers and suppliers hiding 
dangerous defects for years right under the nose of a weak, under-
resourced regulator. The result? Scores of deaths, hundreds of 
injuries, and millions of vehicles still under recall that are 
endangering lives both inside and outside the cars.
  Every year, over 32,000 people die on our roadways--32,000 lives cut 
short, 32,000 families without a loved one. Car accidents are by far 
the top cause of accidental deaths. But it doesn't have to be this way. 
Congress can adopt practical solutions to help make cars safer and 
improve the recall process and, in turn, save lives. That is exactly 
what this legislation is designed to do--to take the lessons we have 
learned from exploding Takata airbags, defective GM ignition switches, 
and several other recent serious recalls to ensure that a company can 
never again hide a lethal defects from the public, to improve the way 
we recall dangerous cars, and to harness American innovation and 
ingenuity to make vehicles safer.
  Many of the concepts in today's bill are not new. Indeed, many of the 
provisions in the bill have passed the Senate before with bipartisan 
support. The Motor Vehicle Safety Act of 2015 that Senators Blumenthal, 
Markey, and I introduce today includes provisions from bills introduced 
by myself, Senators Blumenthal, Markey, Gillibrand, Schatz, Booker, and 
former Chairman Rockefeller. Like the earlier bills, this legislation 
is predicated on improving four things: transparency, wrongdoer 
accountability, vehicle safety, and recall effectiveness.
  First, government transparency. The Department of Transportation 
Inspector General identified several problems with how NHTSA processes 
early warning data. This bill seeks to help remedy those problems and 
increase the transparency of the information the agency receives. For 
example, the bill would require NHTSA to upgrade its online databases 
to improve searchability and to consider early warning data when 
investigating potential safety defects. The bill would also require 
NHTSA to disclose information submitted by manufacturers to NHTSA 
through the Early Warning Reporting system unless the information is 
exempt under FOIA. Finally, motor vehicle and equipment manufacturers 
would have to automatically submit documentation that first alerted 
them to a fatality involving their vehicle or equipment to NHTSA's 
Early Warning Reporting database.
  Second, wrongdoer accountability. The bill would remove the cap on 
NHTSA's civil penalty authority, which is currently at $35 million 
NHTSA's civil penalty authority must be bolstered to deter highly 
profitable corporations from violating safety laws. Otherwise, we get 
what we have now: companies treating NHTSA's civil penalties as a mere 
cost of doing business. Just look at the GM case, where the maximum $35 
million civil penalty represented less than 1/1000 of GM's quarterly 
revenues, which is over $35 billion. In addition, the bill would impose 
criminal penalties on corporate executives who knowingly conceal the 
fact that their product poses a danger of death or serious injury. 
Corporate executives who hide serious dangers from the public shouldn't 
get off the hook.
  Third, vehicle safety. The bill would authorize NHTSA to conduct new 
research and implement life-saving standards to make vehicles safer. 
For example, it would require large commercial trucks to have crash 
avoidance technologies, and it would improve car hoods and bumpers to 
reduce pedestrian fatalities and injuries. The legislation also would 
task NHTSA with evaluating whether technology exists to help prevent 
children from being left in hot cars. These changes just make sense, 
and they would save lives.
  Lastly, recall effectiveness. The major lesson from the Takata, GM, 
and other defect debacles is that we need to improve the recall process 
so that unsafe vehicles get fixed as quickly as possible. This bill 
would do just that by improving NHTSA's recall authority, asking 
dealers to adopt commonsense practices, and exploring new ways to 
notify consumers of recalls. First, the Motor Vehicle Safety Act of 
2015 would give NHTSA the authority to expedite recalls in the case of 
substantial likelihood of death or serious injury. Second, the 
legislation would ensure that used car dealers fix cars under recall 
before selling them. The fact that used car dealers can still sell 
vehicles under recall without bothering to fix them is appalling--
several individuals who died from exploding Takata airbags had 
purchased used cars that hadn't been fixed. My legislation would also 
require authorized dealers to check for open recalls when a car is 
brought in for any service--something that should already be very quick 
and doable for dealers. Third, the bill would create grant programs to 
allow states to participate in the recall notification process by 
notifying drivers of open recalls when the DMV sends registration 
renewals. Finally, NHTSA would have promulgate a rule requiring new 
vehicles have a warning feature--similar to tire pressure monitor or 
oil change light on the dashboard--that would notify consumers that 
their cars are subject to a safety recall. With innovations like backup 
cameras and connected cars, we've seen how technology improves safety. 
I am very excited about the possibility that technology can also ensure 
that a driver knows his or her car is under recall and, as a result, 
prevent injuries and deaths from safety defects.
  The American public demands that we do something meaningful to keep 
them safe on the road. There will be more recalls in the future--it is 
inevitable. And the consequences can be deadly. But they don't have to 
be. Improving the recall process can and will save lives. I realize our 
bill may not get us to l00 percent completion of recalls or perfect 
motor vehicle safety, but I am confident that it would go a long way 
towards improving recall effectiveness, adding practical safety 
technologies to vehicles, and making Americans safer on our nation's 
roads and highways.
  I want to thank my colleagues, Senators Blumenthal and Markey, for 
helping me on this extremely important bill and for their dedication to 
making our roads safer.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1743

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REFERENCES.

       (a) Short Title.--This Act may be cited as the ``Motor 
     Vehicle Safety Act of 2015''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents; references.
Sec. 2. Definition of Secretary.

                TITLE I--TRANSPARENCY AND ACCOUNTABILITY

Sec. 101. Public availability of early warning data.
Sec. 102. Additional early warning reporting requirements.
Sec. 103. Improved National Highway Traffic Safety Administration 
              vehicle safety databases.
Sec. 104. Corporate responsibility for NHTSA reports.
Sec. 105. Reports to Congress.

[[Page 11241]]

      TITLE II--ENHANCED SAFETY AUTHORITY AND CONSUMER PROTECTION

Sec. 201. Civil penalties.
Sec. 202. Criminal penalties.
Sec. 203. Cooperation with foreign governments.
Sec. 204. Imminent hazard authority.
Sec. 205. Used passenger motor vehicle consumer protection.
Sec. 206. Unattended children warning system.
Sec. 207. Collision avoidance technologies.
Sec. 208. Motor vehicle pedestrian protection.

                           TITLE III--FUNDING

Sec. 301. Authorization of appropriations.

                 TITLE IV--RECALL PROCESS IMPROVEMENTS

Sec. 401. Recall obligations under bankruptcy.
Sec. 402. Dealer requirement to check for and remedy recall.
Sec. 403. Application of remedies for defects and noncompliance.
Sec. 404. Direct vehicle notification of recalls.
Sec. 405. State notification of open safety recalls.
Sec. 406. Recall completion pilot grant program.
Sec. 407. Improvements to notification of defect or noncompliance.
       (c) References to Title 49, United States Code.--Except as 
     otherwise expressly provided, wherever in this Act an 
     amendment or repeal is expressed in terms of an amendment to, 
     or repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of title 49, United States Code.

     SEC. 2. DEFINITION OF SECRETARY.

       In this Act, unless expressly provided otherwise, the term 
     ``Secretary'' means the Secretary of Transportation.

                TITLE I--TRANSPARENCY AND ACCOUNTABILITY

     SEC. 101. PUBLIC AVAILABILITY OF EARLY WARNING DATA.

       (a) Regulations.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations establishing categories of information provided 
     to the Secretary under section 30166(m) of title 49, United 
     States Code, as amended by section 102 of this Act, that must 
     be made available to the public. The Secretary may establish 
     categories of information that are exempt from public 
     disclosure under section 552(b) of title 5, United States 
     Code.
       (b) Consultation.--In conducting the rulemaking under 
     subsection (a), the Secretary shall consult with the Director 
     of the Office of Government Information Services within the 
     National Archives and Records Administration and the Director 
     of the Office of Information Policy of the Department of 
     Justice.
       (c) Presumption and Limitation.--The Secretary shall 
     promulgate the regulations with a presumption in favor of 
     maximum public availability of information. In promulgating 
     regulations under subsection (a), the following types of 
     information shall presumptively not be eligible for 
     protection under section 552(b) of title 5, United States 
     Code:
       (1) Vehicle safety defect information related to incidents 
     involving death or injury.
       (2) Aggregated numbers of property damage claims.
       (3) Aggregated numbers of consumer complaints related to 
     potential vehicle defects.
       (d) Nullification of Prior Regulations.--Beginning 2 years 
     after the date of enactment of this Act, the regulations 
     establishing early warning reporting class determinations in 
     Appendix C of part 512 of title 49, Code of Federal 
     Regulations, shall have no force or effect.

     SEC. 102. ADDITIONAL EARLY WARNING REPORTING REQUIREMENTS.

       Section 30166(m) is amended--
       (1) in paragraph (3)(C)--
       (A) by striking ``The manufacturer'' and inserting the 
     following:
       ``(i) In general.--The manufacturer''; and
       (B) by adding at the end the following:
       ``(ii) Fatal incidents.--If an incident described in clause 
     (i) involves a fatality, the Secretary shall require the 
     manufacturer to submit, as part of its incident report--

       ``(I) all initial claim or notice documents, as defined by 
     the Secretary through regulation, except media reports, that 
     notified the manufacturer of the incident;
       ``(II) any police reports or other documents, as defined by 
     the Secretary through regulation, that relate to the initial 
     claim or notice (except for documents that are protected by 
     the attorney-client privilege or work product privileges that 
     are not already publicly available), that describe or 
     reconstruct the incident, and that are in the actual 
     possession or control of the manufacturer at the time the 
     incident report is submitted;
       ``(III) any amendments or supplements, as defined by the 
     Secretary through regulation, to the initial claim or notice 
     documents described in subclause (I), except for--

       ``(aa) medical documents and bills;
       ``(bb) property damage invoices or estimates; and
       ``(cc) documents related to damages; and

       ``(IV) any police reports or other documents described in 
     subclause (II) that are obtained by the manufacturer after 
     the submission of its incident report.'';

       (2) in paragraph (4), by amending subparagraph (C) to read 
     as follows:
       ``(C) Disclosure.--
       ``(i) In general.--The information provided to the 
     Secretary under this subsection shall--

       ``(I) be disclosed publicly; and
       ``(II) be entered into the early warning reporting database 
     in a manner specified by the Secretary through regulation 
     that is searchable by manufacturer name, vehicle or equipment 
     make and model name, model year, and reported system or 
     component.

       ``(ii) Information disclosure requirements.--In 
     administering this subparagraph, the Secretary shall--

       ``(I) presume in favor of maximum public availability of 
     information;
       ``(II) require the publication of information on incidents 
     involving death or injury; and
       ``(III) require the publication of numbers of property 
     damage claims.''; and

       (3) by adding at the end the following:
       ``(6) Section 552 of title 5.--Any requirement for the 
     Secretary to publicly disclose information under this 
     subsection shall be construed consistently with the 
     requirements of section 552 of title 5.
       ``(7) Use of early warning reports.--The Secretary shall 
     consider information gathered under this subsection in 
     proceedings described in sections 30118 and 30162.''.

     SEC. 103. IMPROVED NATIONAL HIGHWAY TRAFFIC SAFETY 
                   ADMINISTRATION VEHICLE SAFETY DATABASES.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, and after public consultation, the 
     Secretary shall improve public accessibility to information 
     on the National Highway Traffic Safety Administration's 
     publicly accessible vehicle safety databases--
       (1) by improving organization and functionality, including 
     design features such as drop-down menus, and allowing for 
     data from all of the publicly accessible vehicle safety 
     databases to be searched, sorted, aggregated, and downloaded 
     in a manner--
       (A) consistent with the public interest; and
       (B) that facilitates easy use by consumers;
       (2) by providing greater consistency in presentation of 
     vehicle safety issues;
       (3) by improving searchability about specific vehicles and 
     issues through standardization of commonly used search terms 
     and the integration of databases to enable all to be 
     simultaneously searched using the same keyword search 
     function; and
       (4) by ensuring that all studies, investigation reports, 
     inspection reports, incident reports, and other categories of 
     materials, as specified through the rulemaking under section 
     101(a), be made publicly available in a manner that is 
     searchable in databases by--
       (A) manufacturer name, vehicle or equipment make and model 
     name, and model year;
       (B) reported system or component;
       (C) number of injuries or fatalities; and
       (D) any other element that the Secretary determines to be 
     in the public interest.
       (b) Investigation Information.--The Secretary shall--
       (1) provide public notice of information requests to 
     manufacturers issued under section 30166 of title 49, United 
     States Code; and
       (2) make such information requests, the manufacturer's 
     written responses to the information requests, and notice of 
     any enforcement or other action taken as a result of the 
     information requests--
       (A) available to consumers on the Internet not later than 5 
     days after such notice is issued; and
       (B) searchable by manufacturer name, vehicle or equipment 
     make and model name, model year, system or component, and the 
     type of inspection or investigation being conducted.
       (c) Section 552 of Title 5.--Any requirement for the 
     Secretary to publicly disclose information under this section 
     shall be construed consistently with the requirements of 
     section 552 of title 5, United States Code.

     SEC. 104. CORPORATE RESPONSIBILITY FOR NHTSA REPORTS.

       Section 30166(o) is amended--
       (1) in paragraph (1), by striking ``may'' and inserting 
     ``shall''; and
       (2) by adding at the end the following:
       ``(3) Deadline.--Not later than 1 year after the date of 
     enactment of the Motor Vehicle Safety Act of 2015, the 
     Secretary shall issue a final rule under paragraph (1).''.

     SEC. 105. REPORTS TO CONGRESS.

       (a) Ability to Identify and Investigate Vehicle Safety 
     Concerns.--
       (1) In general.--Not later than 3 years after the date of 
     enactment of this Act, and biennially thereafter for 6 years, 
     the Inspector General of the Department of Transportation 
     shall update the Inspector General's report dated June 18, 
     2015 (ST-2015-063) on the pre-investigation processes used by 
     the Office of Defects Investigation of the National Highway 
     Traffic Safety Administration (referred to in this section as 
     ``NHTSA'') to collect and analyze vehicle safety data and to 
     determine potential safety issues and whether those processes 
     were sufficiently improved, including an assessment of--
       (A) the sufficiency of NHTSA's procedures and practices for 
     collecting, verifying the accuracy and completeness of, 
     analyzing, and

[[Page 11242]]

     determining whether to further investigate potential safety 
     issues described in consumer complaints and manufacturer 
     submittals to the early warning report system;
       (B) the number and type of requests for information made by 
     NHTSA based on data received in the early warning reporting 
     system and consumer complaints received;
       (C) the number of safety defect investigations opened by 
     NHTSA based on information reported to NHTSA through the 
     early warning reporting system, consumer complaints, or other 
     sources;
       (D) the nature and vehicle defect category of each safety 
     defect investigation described in subparagraph (C);
       (E) the duration of each safety defect investigation 
     described in subparagraph (C), including--
       (i) the number of safety defect investigations described in 
     subparagraph (C) that are subsequently closed without further 
     action; and
       (ii) the number and description of safety defect 
     investigations described in subparagraph (C) that have been 
     open for more than 1 year;
       (F) the percentage of the safety defect investigations 
     described in subparagraph (C) that result in a finding of a 
     safety defect, recall, or service information campaign;
       (G) the status and sufficiency of NHTSA's compliance with 
     each recommendation designed to improve vehicle safety made 
     by the Inspector General; and
       (H) other information the Inspector General considers 
     appropriate.
       (2) Report.--
       (A) In general.--Not later than 30 days after the date that 
     a report under paragraph (1) is complete, the Inspector 
     General shall transmit the report to--
       (i) the Committee on Commerce, Science, and Transportation 
     of the Senate; and
       (ii) the Committee on Energy and Commerce of the House of 
     Representatives.
       (B) Public.--The Inspector General shall make the report 
     public as soon as practicable, but not later than 30 days 
     after the date the report is transmitted under subparagraph 
     (A).
       (b) Report on Operations of the Council for Vehicle 
     Electronics, Vehicle Software, and Emerging Technologies.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this Act, the Secretary shall prepare a report 
     regarding the operations of the Council for Vehicle 
     Electronics, Vehicle Software, and Emerging Technologies 
     established under section 31401 of the Moving Ahead for 
     Progress in the 21st Century Act (49 U.S.C. 105 note). The 
     report shall include information about the accomplishments of 
     the Council, the role of the Council in integrating and 
     aggregating expertise across NHTSA, and the priorities of the 
     Council over the next 5 years.
       (2) Submission of report.--The Secretary shall submit the 
     report upon completion to the Committee on Commerce, Science, 
     and Transportation of the Senate and the Committee on Energy 
     and Commerce of the House of Representatives.

      TITLE II--ENHANCED SAFETY AUTHORITY AND CONSUMER PROTECTION

     SEC. 201. CIVIL PENALTIES.

       (a) In General.--Section 30165(a) is amended--
       (1) in paragraph (1)--
       (A) in the first sentence--
       (i) by inserting ``or causes the violation of'' after 
     ``violates''; and
       (ii) by striking ``$5,000'' and inserting ``$25,000''; and
       (B) by striking the third sentence;
       (2) in paragraph (2)--
       (A) in subparagraph (A), by striking ``$10,000'' and 
     inserting ``$100,000''; and
       (B) in subparagraph (B), by striking the second sentence; 
     and
       (3) in paragraph (3)--
       (A) in the first sentence, by inserting ``or causes the 
     violation of'' after ``violates'';
       (B) in the second sentence, by striking ``$5,000'' and 
     inserting ``$25,000''; and
       (C) by striking the third sentence.
       (b) Construction.--Nothing in this section shall be 
     construed as preventing the imposition of penalties under 
     section 30165 of title 49, United States Code, prior to the 
     issuance of a final rule under section 31203(b) of the Moving 
     Ahead for Progress in the 21st Century Act (49 U.S.C. 30165 
     note).

     SEC. 202. CRIMINAL PENALTIES.

       (a) Reporting Standards.--
       (1) In general.--Part I of title 18, United States Code, is 
     amended by inserting after chapter 101 the following:

                  ``CHAPTER 101A--REPORTING STANDARDS

``Sec.
``2081. Definitions.
``2082. Failure to inform and warn.
``2083. Relationship to existing law.

     ``Sec. 2081. Definitions

       ``In this chapter--
       ``(1) the term `appropriate Federal agency' means an agency 
     with jurisdiction over a covered product, covered service, or 
     business practice;
       ``(2) the term `business entity' means a corporation, 
     company, association, firm, partnership, sole proprietor, or 
     other business entity;
       ``(3) the term `business practice' means a method or 
     practice of--
       ``(A) manufacturing, assembling, designing, researching, 
     importing, or distributing a covered product;
       ``(B) conducting, providing, or preparing to provide a 
     covered service; or
       ``(C) otherwise carrying out business operations relating 
     to covered products or covered services;
       ``(4) the term `covered product' means a product 
     manufactured, assembled, designed, researched, imported, or 
     distributed by a business entity that enters interstate 
     commerce;
       ``(5) the term `covered service' means a service conducted 
     or provided by a business entity that enters interstate 
     commerce;
       ``(6) the term `responsible corporate officer' means a 
     person who--
       ``(A) is an employer, director, or officer of a business 
     entity;
       ``(B) has the responsibility and authority, by reason of 
     his or her position in the business entity and in accordance 
     with the rules or practice of the business entity, to acquire 
     knowledge of any serious danger associated with a covered 
     product (or component of a covered product), covered service, 
     or business practice of the business entity; and
       ``(C) has the responsibility, by reason of his or her 
     position in the business entity, to communicate information 
     about the serious danger to--
       ``(i) an appropriate Federal agency;
       ``(ii) employees of the business entity; or
       ``(iii) individuals, other than employees of the business 
     entity, who may be exposed to the serious danger;
       ``(7) the term `serious bodily injury' means an impairment 
     of the physical condition of an individual, including as a 
     result of trauma, repetitive motion, or disease, that--
       ``(A) creates a substantial risk of death; or
       ``(B) causes--
       ``(i) serious permanent disfigurement;
       ``(ii) unconsciousness;
       ``(iii) extreme pain; or
       ``(iv) permanent or protracted loss or impairment of the 
     function of any bodily member, organ, bodily system, or 
     mental faculty;
       ``(8) the term `serious danger' means a danger, not readily 
     apparent to a reasonable person, that the normal or 
     reasonably foreseeable use of, or the exposure of an 
     individual to, a covered product, covered service, or 
     business practice has an imminent risk of causing death or 
     serious bodily injury to an individual; and
       ``(9) the term `warn affected employees' means take 
     reasonable steps to give, to each individual who is exposed 
     or may be exposed to a serious danger in the course of work 
     for a business entity, a description of the serious danger 
     that is sufficient to make the individual aware of the 
     serious danger.

     ``Sec. 2082. Failure to inform and warn

       ``(a) Requirement.--After acquiring actual knowledge of a 
     serious danger associated with a covered product (or 
     component of a covered product), covered service, or business 
     practice of a business entity, a business entity and any 
     responsible corporate officer with respect to the covered 
     product, covered service, or business practice, shall--
       ``(1) as soon as practicable and not later than 24 hours 
     after acquiring such knowledge, verbally inform an 
     appropriate Federal agency of the serious danger, unless the 
     business entity or responsible corporate officer has actual 
     knowledge that an appropriate Federal agency has been so 
     informed;
       ``(2) not later than 15 days after acquiring such 
     knowledge, inform an appropriate Federal agency in writing of 
     the serious danger;
       ``(3) as soon as practicable, but not later than 30 days 
     after acquiring such knowledge, warn affected employees in 
     writing, unless the business entity or responsible corporate 
     officer has actual knowledge that affected employees have 
     been so warned; and
       ``(4) as soon as practicable, but not later than 30 days 
     after acquiring such knowledge, inform individuals, other 
     than affected employees, who may be exposed to the serious 
     danger of the serious danger if such individuals can 
     reasonably be identified.
       ``(b) Penalty.--
       ``(1) In general.--Whoever knowingly violates subsection 
     (a) shall be fined under this title, imprisoned for not more 
     than 5 years, or both.
       ``(2) Prohibition of payment by business entities.--If a 
     final judgment is rendered and a fine is imposed on an 
     individual under this subsection, the fine may not be paid, 
     directly or indirectly, out of the assets of any business 
     entity on behalf of the individual.
       ``(c) Civil Action To Protect Against Retaliation.--
       ``(1) Prohibition.--It shall be unlawful to knowingly 
     discriminate against any person in the terms or conditions of 
     employment, in retention in employment, or in hiring because 
     the person informed a Federal agency, warned employees, or 
     informed other individuals of a serious danger associated 
     with a covered product, covered service, or business 
     practice, as required under this section.
       ``(2) Enforcement action.--
       ``(A) In general.--A person who alleges discharge or other 
     discrimination by any person in violation of paragraph (1) 
     may seek relief under paragraph (3), by--
       ``(i) filing a complaint with the Secretary of Labor; or
       ``(ii) if the Secretary has not issued a final decision 
     within 180 days of the filing of the

[[Page 11243]]

     complaint and there is no showing that such delay is due to 
     the bad faith of the claimant, bringing an action at law or 
     equity for de novo review in the appropriate district court 
     of the United States, which shall have jurisdiction over such 
     an action without regard to the amount in controversy.
       ``(B) Procedure.--
       ``(i) In general.--An action under subparagraph (A)(i) 
     shall be governed under the rules and procedures set forth in 
     section 42121(b) of title 49.
       ``(ii) Exception.--Notification made under section 
     42121(b)(1) of title 49 shall be made to the person named in 
     the complaint and to the employer.
       ``(iii) Burdens of proof.--An action brought under 
     subparagraph (A)(ii) shall be governed by the legal burdens 
     of proof set forth in section 42121(b) of title 49.
       ``(iv) Statute of limitations.--An action under 
     subparagraph (A) shall be commenced not later than 180 days 
     after the date on which the violation occurs, or after the 
     date on which the employee became aware of the violation.
       ``(v) Jury trial.--A party to an action brought under 
     subparagraph (A)(ii) shall be entitled to trial by jury.
       ``(3) Remedies.--
       ``(A) In general.--An employee prevailing in any action 
     under paragraph (2)(A) shall be entitled to all relief 
     necessary to make the employee whole.
       ``(B) Compensatory damages.--Relief for any action under 
     subparagraph (A) shall include--
       ``(i) reinstatement with the same seniority status that the 
     employee would have had, but for the discrimination;
       ``(ii) the amount of back pay, with interest; and
       ``(iii) compensation for any special damages sustained as a 
     result of the discrimination, including litigation costs, 
     expert witness fees, and reasonable attorney fees.
       ``(4) Rights retained by employee.--Nothing in this 
     subsection shall be deemed to diminish the rights, 
     privileges, or remedies of any employee under any Federal or 
     State law, or under any collective bargaining agreement.
       ``(5) Nonenforceability of certain provisions waiving 
     rights and remedies or requiring arbitration of disputes.--
       ``(A) Waiver of rights and remedies.--The rights and 
     remedies provided for in this subsection may not be waived by 
     any agreement, policy form, or condition of employment, 
     including by a predispute arbitration agreement.
       ``(B) Predispute arbitration agreements.--No predispute 
     arbitration agreement shall be valid or enforceable, if the 
     agreement requires arbitration of a dispute arising under 
     this subsection.

     ``Sec. 2083. Relationship to existing law

       ``(a) Rights To Intervene.--Nothing in this chapter shall 
     be construed to limit the right of any individual or group of 
     individuals to initiate, intervene in, or otherwise 
     participate in any proceeding before a regulatory agency or 
     court, nor to relieve any regulatory agency, court, or other 
     public body of any obligation, or affect its discretion to 
     permit intervention or participation by an individual or a 
     group or class of consumers, employees, or citizens in any 
     proceeding or activity.
       ``(b) Rule of Construction.--Nothing in this chapter shall 
     be construed to--
       ``(1) increase the time period for informing of a serious 
     danger or other harm under any other provision of law; or
       ``(2) limit or otherwise reduce the penalties for any 
     violation of Federal or State law under any other provision 
     of law.''.
       (2) Technical and conforming amendment.--The table of 
     chapters for part I of title 18, United States Code, is 
     amended by inserting after the item relating to chapter 101 
     the following:

``101A.  Reporting standards................................2081''.....

       (3) Effective date.--The amendments made by paragraphs (1) 
     and (2) shall take effect on the date that is 1 year after 
     the date of enactment of this Act.
       (b) Prohibition on Rendering Safety Elements Inoperative.--
     Section 30122 is amended by amending subsection (b) to read 
     as follows:
       ``(b) Prohibition.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     person may not knowingly make inoperative any part of a 
     device or element of design installed on or in a motor 
     vehicle or motor vehicle equipment in compliance with an 
     applicable motor vehicle safety standard prescribed under 
     this chapter unless the person reasonably believes the 
     vehicle or equipment will not be used (except for testing or 
     a similar purpose during maintenance or repair) when the 
     device or element is inoperative.
       ``(2) Exception.--The prohibition under paragraph (1) does 
     not apply to a modification made by an individual to a motor 
     vehicle or item of equipment owned or leased by that 
     individual.''.
       (c) Criminal Liability.--Section 30170 is amended by adding 
     at the end the following;
       ``(c) Criminal Liability for Tampering With Motor Vehicle 
     Safety Elements.--Whoever knowing that he will endanger the 
     safety of any person on board a motor vehicle or anyone who 
     he believes will board the same, or with a reckless disregard 
     for the safety of human life, violates section 30122(b) under 
     this title shall be subject to criminal penalties under 
     section 33(a) of title 18.''.

     SEC. 203. COOPERATION WITH FOREIGN GOVERNMENTS.

       (a) Title 49 Amendment.--Section 30182(b) is amended--
       (1) in paragraph (4), by striking ``; and'' and inserting a 
     semicolon;
       (2) in paragraph (5), by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after paragraph (5) the following:
       ``(6) enter into cooperative agreements (in coordination 
     with the Department of State) and collaborative research and 
     development agreements with foreign governments.''.
       (b) Title 23 Amendment.--Section 403 of title 23, United 
     States Code, is amended--
       (1) in subsection (b)(2)(C), by inserting ``foreign 
     government (in coordination with the Department of State),'' 
     after ``institution,''; and
       (2) in subsection (c)(1)(A), by inserting ``foreign 
     governments,'' after ``local governments,''.

     SEC. 204. IMMINENT HAZARD AUTHORITY.

       Section 30118(b) is amended--
       (1) in paragraph (1), by striking ``(1) The Secretary may'' 
     and inserting ``(1) In general.--Except as provided under 
     paragraph (3), the Secretary may'';
       (2) in paragraph (2), by inserting ``Orders.--'' before 
     ``If the Secretary''; and
       (3) by adding after paragraph (2) the following:
       ``(3) Imminent hazards.--
       ``(A) Decisions and orders.--If the Secretary makes an 
     initial decision that a defect or noncompliance, or 
     combination of both, under subsection (a) presents an 
     imminent hazard, the Secretary--
       ``(i) shall notify the manufacturer of a motor vehicle or 
     replacement equipment immediately under subsection (a); and
       ``(ii) shall order the manufacturer of the motor vehicle or 
     replacement equipment to immediately--

       ``(I) give notification under section 30119 of this title 
     to the owners, purchasers, and dealers of the vehicle or 
     equipment of the imminent hazard; and
       ``(II) remedy the defect or noncompliance under section 
     30120 of this title;

       ``(iii) notwithstanding section 30119 or 30120, may order 
     the time for notification, means of providing notification, 
     earliest remedy date, and time the owner or purchaser has to 
     present the motor vehicle or equipment, including a tire, for 
     remedy; and
       ``(iv) may include in an order under this subparagraph any 
     other terms or conditions that the Secretary determines 
     necessary to abate the imminent hazard.
       ``(B) Opportunity for administrative review.--Subsequent to 
     the issuance of an order under subparagraph (A), opportunity 
     for administrative review shall be provided in accordance 
     with section 554 of title 5, except that such review shall 
     occur not later than 10 days after issuance of such order.
       ``(C) Definition of imminent hazard.--In this paragraph, 
     the term `imminent hazard' means any condition which 
     substantially increases the likelihood of serious injury or 
     death if not remedied immediately.''.

     SEC. 205. USED PASSENGER MOTOR VEHICLE CONSUMER PROTECTION.

       (a) In General.--Section 30120 is amended by adding at the 
     end the following:
       ``(k) Limitation on Sale or Lease of Used Passenger Motor 
     Vehicles.--(1) A dealer may not sell or lease a used 
     passenger motor vehicle until any defect or noncompliance 
     determined under section 30118 with respect to the vehicle 
     has been remedied.
       ``(2) Paragraph (1) shall not apply if--
       ``(A) the recall information regarding a used passenger 
     motor vehicle was not accessible at the time of sale or lease 
     using the means established by the Secretary under section 
     31301 of the Moving Ahead for Progress in the 21st Century 
     Act (49 U.S.C. 30166 note); or
       ``(B) 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 30121(d) applies.
       ``(3) Notwithstanding section 30102(a)(1), in this 
     subsection--
       ``(A) the term `dealer' means a person that has sold at 
     least 10 motor vehicles to 1 or more consumers during the 
     most recent 12-month period; and
       ``(B) the term `used passenger motor vehicle' means a motor 
     vehicle that has previously been purchased other than for 
     resale.
       ``(4) By rule, the Secretary may exempt the auctioning of a 
     used passenger motor vehicle from the requirements under 
     paragraph (1) to the extent that the exemption does not harm 
     public safety.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     of this section shall take effect on the date that is 18 
     months after the date of enactment of this Act.

     SEC. 206. UNATTENDED CHILDREN WARNING SYSTEM.

       (a) Safety Research Initiative.--Not later than 2 years 
     after the date of enactment of this Act, the Secretary shall 
     complete research into the development of performance 
     requirements to warn a driver that a child or other 
     unattended passenger remains in a rear seating position after 
     a vehicle motor is disengaged.

[[Page 11244]]

       (b) Specifications.--In completing the research under 
     subsection (a), the Secretary shall consider performance 
     requirements that--
       (1) sense weight, the presence of a buckled seat belt, or 
     other indications of the presence of a child or other 
     passenger; and
       (2) provide an alert to prevent hyperthermia and 
     hypothermia that can result in death or severe injuries.
       (c) Rulemaking or Report.--
       (1) Rulemaking.--Not later than 1 year after the date that 
     the research under subsection (a) is complete, the Secretary 
     shall initiate a rulemaking proceeding to issue a Federal 
     motor vehicle safety standard if the Secretary determines 
     that such a standard meets the requirements and 
     considerations set forth in subsections (a) and (b) of 
     section 30111 of title 49, United States Code. The Secretary 
     shall complete the rulemaking and issue a final rule not 
     later than 2 years after the date the rulemaking is 
     initiated.
       (2) Report.--If the Secretary determines that the standard 
     described in subsection (a) does not meet the requirements 
     and considerations set forth in subsections (a) and (b) of 
     section 30111 of title 49, United States Code, the Secretary 
     shall submit a report describing the reasons for not 
     prescribing such a standard to--
       (A) the Committee on Commerce, Science, and Transportation 
     of the Senate; and
       (B) the Committee on Energy and Commerce of the House of 
     Representatives.

     SEC. 207. COLLISION AVOIDANCE TECHNOLOGIES.

       (a) In General.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall initiate a 
     rulemaking to establish a Federal motor vehicle safety 
     standard requiring a motor vehicle with a gross vehicle 
     weight rating greater than 26,000 pounds be equipped with 
     crash avoidance and mitigation systems, such as forward 
     collision automatic braking systems and lane departure 
     warning systems.
       (b) Performance and Standards.--The regulations prescribed 
     under subsection (a) shall establish performance requirements 
     and standards to prevent collisions with moving vehicles, 
     stopped vehicles, pedestrians, cyclists, and other road 
     users.
       (c) Effective Date.--The regulations prescribed by the 
     Secretary under this section shall take effect 2 years after 
     the date of publication of the final rule.

     SEC. 208. MOTOR VEHICLE PEDESTRIAN PROTECTION.

       Not later than 2 years after the date of the enactment of 
     this Act, the Secretary, through the Administrator of the 
     National Highway Traffic Safety Administration, shall issue a 
     final rule that--
       (1) establishes standards for the hood and bumper areas of 
     motor vehicles, including passenger cars, multipurpose 
     passenger vehicles, trucks, and buses with a gross vehicle 
     weight rating of 4,536 kilograms (10,000 pounds) or less, in 
     order to reduce the number of injuries and fatalities 
     suffered by pedestrians who are struck by such vehicles; and
       (2) considers the protection of vulnerable pedestrian 
     populations, including children and older adults.

                           TITLE III--FUNDING

     SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

       Section 30104 is amended--
       (1) by striking ``$98,313,500''; and
       (2) by striking ``this part in each fiscal year beginning 
     in fiscal year 1999 and ending in fiscal year 2001.'' and 
     inserting the following: ``this chapter and to carry out the 
     Motor Vehicle Safety Act of 2015--
       ``(1) $179,000,000 for fiscal year 2016;
       ``(2) $187,055,000 for fiscal year 2017;
       ``(3) $195,659,530 for fiscal year 2018;
       ``(4) $204,268,549 for fiscal year 2019;
       ``(5) $214,073,440 for fiscal year 2020; and
       ``(6) $223,920,818 for fiscal year 2021.''.

                 TITLE IV--RECALL PROCESS IMPROVEMENTS

     SEC. 401. RECALL OBLIGATIONS UNDER BANKRUPTCY.

       Section 30120A is amended to read as follows:

     ``Sec. 30120A. Recall obligations and bankruptcy of a 
       manufacturer

       ``Notwithstanding any provision of title 11, United States 
     Code, a manufacturer's duty to comply with section 30112, 
     sections 30115 through 30121, and section 30166 of this title 
     shall be enforceable against a manufacturer or a 
     manufacturer's successors-in-interest whether accomplished by 
     merger or by acquisition of the manufacturer's stock, the 
     acquisition of all or substantially all of the manufacturer's 
     assets or a discrete product line, or confirmation of any 
     plan of reorganization under section 1129 of title 11.''.

     SEC. 402. DEALER REQUIREMENT TO CHECK FOR AND REMEDY RECALL.

       Section 30120(f) is amended to read as follows:
       ``(f) Dealers.--
       ``(1) Fair reimbursement to dealers.--A manufacturer shall 
     pay fair reimbursement to a dealer providing a remedy without 
     charge under this section.
       ``(2) Requirements.--Each time a defective or noncomplying 
     motor vehicle is presented to a dealer by the owner of that 
     motor vehicle for any service on that motor vehicle, the 
     dealer shall--
       ``(A) inform the owner of the defect or noncompliance; and
       ``(B) with consent from the owner, remedy the defect or 
     noncompliance without charge under this section.''.

     SEC. 403. APPLICATION OF REMEDIES FOR DEFECTS AND 
                   NONCOMPLIANCE.

       Section 30120(g)(1) is amended by striking ``the motor 
     vehicle or replacement equipment was bought by the first 
     purchaser more than 10 calendar years, or''.

     SEC. 404. DIRECT VEHICLE NOTIFICATION OF RECALLS.

       (a) Rulemaking.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall initiate a 
     rulemaking for a regulation to require a warning system in 
     each new motor vehicle to indicate to the operator in a 
     conspicuous manner when the vehicle is subject to an open 
     recall.
       (b) Final Rule.--The Secretary shall prescribe final 
     standards not later than 3 years after the date of enactment 
     of this Act.

     SEC. 405. STATE NOTIFICATION OF OPEN SAFETY RECALLS.

       (a) Grant Program.--Not later than 2 years after the date 
     of enactment of this Act, the Secretary shall establish a 
     grant program for States to notify registered motor vehicle 
     owners of safety recalls issued by the manufacturers of those 
     motor vehicles.
       (b) Eligibility.--To be eligible for a grant, a State 
     shall--
       (1) submit an application in such form and manner as the 
     Secretary prescribes;
       (2) agree that when a motor vehicle owner registers the 
     motor vehicle for use in that State, the State will--
       (A) search the recall database maintained by the National 
     Highway Traffic Safety Administration using the motor vehicle 
     identification number;
       (B) determine all safety recalls issued by the manufacturer 
     of that motor vehicle that have not been completed; and
       (C) notify the motor vehicle owner of the safety recalls 
     described in subparagraph (B); and
       (3) provide such other information or notification as the 
     Secretary may require.

     SEC. 406. RECALL COMPLETION PILOT GRANT PROGRAM.

       (a) In General.--The Secretary shall conduct a pilot 
     program to evaluate the feasibility and effectiveness of a 
     State process for increasing the recall completion rate for 
     motor vehicles by requiring each owner or lessee of a motor 
     vehicle to have repaired any open recall on that motor 
     vehicle.
       (b) Grants.--To carry out this program, the Secretary shall 
     make a grant to a State to be used to implement the pilot 
     program described in subsection (a) in accordance with the 
     requirements under subsection (c).
       (c) Eligibility.--To be eligible for a grant under this 
     section, a State shall--
       (1) submit an application in such form and manner as the 
     Secretary prescribes;
       (2) meet the requirements and provide notification of 
     safety recalls to registered motor vehicle owners under the 
     grant program described in section 405 of this Act;
       (3) except as provided in subsection (d), agree to require, 
     as a condition of motor vehicle registration, including 
     renewal, that the motor vehicle owner or lessee complete all 
     remedies for defects and noncompliance offered without charge 
     by the manufacturer or a dealer under section 30120 of title 
     49, United States Code; and
       (4) provide such other information or notification as the 
     Secretary may require.
       (d) Exception.--A State may exempt a motor vehicle owner or 
     lessee from the requirement under subsection (c)(3) if--
       (1) the recall occurred not earlier than 75 days prior to 
     the registration or renewal date;
       (2) the manufacturer, through a local dealership, has not 
     provided the motor vehicle owner or lessee with a reasonable 
     opportunity to complete any applicable safety recall remedy 
     due to a shortage of necessary parts or qualified labor; or
       (3) the motor vehicle owner or lessee states that the owner 
     or lessee has had no reasonable opportunity to complete all 
     applicable safety recall remedies, in which case the State 
     may grant a temporary registration, of not more than 90 days, 
     during which time the motor vehicle owner or lessee shall 
     complete all applicable safety recall remedies for which the 
     necessary parts and qualified labor are available.
       (e) Award.--In selecting an applicant for award under this 
     section, the Secretary shall consider the State's methodology 
     for--
       (1) determining safety recalls on a motor vehicle;
       (2) informing the owner or lessee of a motor vehicle of the 
     safety recalls;
       (3) requiring the owner or lessee of a motor vehicle to 
     repair any safety recall prior to issuing any registration, 
     approval, document, or certificate related to a motor vehicle 
     registration renewal; and
       (4) determining performance in increasing the safety recall 
     completion rate.
       (f) Performance Period.--A grant awarded under this section 
     shall require a performance period for at least 2 years.
       (g) Report.--Not later than 90 days after the completion of 
     the performance period under subsection (f) and the 
     obligations under the pilot program, the grantee shall

[[Page 11245]]

     provide to the Secretary a report of performance containing 
     such information as the Secretary considers necessary to 
     evaluate the extent to which safety recalls have been 
     remedied.
       (h) Evaluation.--Not later than 1 year after the date the 
     Secretary receives the report under subsection (g), the 
     Secretary shall evaluate the extent to which safety recalls 
     identified under subsection (c) have been remedied.

     SEC. 407. IMPROVEMENTS TO NOTIFICATION OF DEFECT OR 
                   NONCOMPLIANCE.

       (a) Improvements to Notification.--
       (1) In general.--Not later than 270 days after the date of 
     enactment of this Act, the Secretary shall prescribe a final 
     rule revising the regulations under section 577.7 of title 
     49, Code of Federal Regulations, to include notification by 
     electronic means in addition to notification by first class 
     mail.
       (2) Definition of electronic means.--In this subsection, 
     the term ``electronic means'' includes electronic mail and 
     may include such other means of electronic notification, such 
     as social media or targeted online campaigns, as determined 
     by the Secretary.
       (b) Notification by Electronic Mail.--Section 30118(c) is 
     amended by inserting ``or electronic mail'' after ``certified 
     mail''.

                          ____________________