[House Report 105-477]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-477
_______________________________________________________________________


 
 NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION REAUTHORIZATION ACT OF 
                                  1998

                                _______
                                

 April 1, 1998.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                        [To accompany H.R. 2691]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, to whom was referred the bill 
(H.R. 2691) to reauthorize and improve the operations of the 
National Highway Traffic Safety Administration, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     5
Background and Need for Legislation..............................     5
Hearings.........................................................     9
Committee Consideration..........................................    10
Roll Call Votes..................................................    10
Committee Oversight Findings.....................................    13
Committee on Government Reform and Oversight.....................    13
New Budget Authority, Entitlement Authority, and Tax Expenditures    13
Committee Cost Estimate..........................................    13
Congressional Budget Office Estimate.............................    13
Federal Mandates Statement.......................................    15
Advisory Committee Statement.....................................    15
Constitutional Authority Statement...............................    15
Applicability to Legislative Branch..............................    15
Section-by-Section Analysis of the Legislation...................    16
Changes in Existing Law Made by the Bill, as Reported............    19

    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``National Highway Traffic Safety 
Administration Reauthorization Act of 1998''.

SEC. 2. AUTHORIZATIONS OF APPROPRIATIONS.

  (a) Motor Vehicle Safety Activities.--Section 30104 of title 49, 
United States Code, is amended to read as follows:

``Sec. 30104. Authorization of appropriations

  ``There is authorized to be appropriated to the Secretary $81,200,000 
for the National Highway Traffic Safety Administration to carry out 
this part in each fiscal year beginning in fiscal year 1999 and ending 
in fiscal year 2001.''.
  (b) Motor Vehicle Information Activities.--Section 32102 of title 49, 
United States Code, is amended to read as follows:

``Sec. 32102. Authorization of appropriations

  ``There is authorized to be appropriated to the Secretary $6,200,000 
for the National Highway Traffic Safety Administration to carry out 
this part in each fiscal year beginning in fiscal year 1999 and ending 
in fiscal year 2001.''.

SEC. 3. RESTRICTIONS ON LOBBYING ACTIVITIES.

  (a) Amendment.--Subchapter I of chapter 301 of title 49, United 
States Code, is amended by adding at the end the following:

``Sec. 30105. Restriction on lobbying activities

  ``No funds appropriated to the Secretary pursuant to section 30104 or 
32102 may be available for any activity specifically designed to urge a 
State or local legislator to favor or oppose the adoption of any 
specific legislative proposal pending before any State or local 
legislature.''.
  (b) Clerical Amendment.--The table of contents in subchapter I of 
chapter 301 of title 49, United States Code, is amended by adding at 
the end the following:

``30105.  Restriction on lobbying activities.''.

SEC. 4. RISK AND BENEFIT DISCLOSURE.

  (a) In General.--Within one year of the date of the enactment of this 
Act, the Secretary of Transportation shall communicate to the public 
information regarding the reasonable risks and benefits of any major 
device or element of design to be installed on or in a motor vehicle or 
motor vehicle equipment in compliance with a motor vehicle safety 
standard issued under section 30111 of title 49, United States Code, 
determined by the Secretary to be important to the protection of motor 
vehicle occupants.
  (b) Notice and Comment.--In carrying out subsection (a), the 
Secretary of Transportation shall provide notice that the Secretary is 
considering the means for carrying out subsection (a) and shall provide 
opportunity for comment on--
          (1) the extent to which the information to be communicated 
        under subsection (a) can be communicated in a manner which is 
        scientifically objective and which relies upon scientific 
        findings; and
          (2) the extent to which such information can be made 
        available to consumers in a clear and easily understandable 
        format through the Internet, public libraries, and such other 
        means as the Secretary may deem appropriate.
  (c) No Requirement.--Unless the Secretary of Transportation 
determines that it is essential to ensuring motor vehicle safety, the 
Secretary may not require a manufacturer or distributor to distribute 
any statement of reasonable risks and benefits which the Secretary is 
to communicate under subsection (a).

SEC. 5. OCCUPANT PROTECTION PREFERENCES.

  Section 30111 of title 49, United States Code is amended by inserting 
after subsection (e) the following:
  ``(f) Special Considerations Relating to Occupant Protection.--When 
prescribing or revising a motor vehicle safety standard under this 
section or section 30127 relating to the protection of motor vehicle 
occupants under this chapter, the Secretary shall, to the extent 
relevant and practicable, design such standard to protect improperly 
restrained and positioned occupants only to the extent that such a 
design would not substantially increase the risk of injury to properly 
restrained and positioned occupants.''.

SEC. 6. ODOMETERS.

  (a) Transfers of New Motor Vehicles.--Section 32705(a) of title 49, 
United States Code, is amended by adding at the end the following:
  ``(4)(A) This subsection shall apply to all transfers of motor 
vehicles (unless otherwise exempted by the Secretary by regulation), 
except in the case of transfers of new motor vehicles from a vehicle 
manufacturer jointly to a dealer and a person engaged in the business 
of renting or leasing vehicles for a period of 30 days or less.
  ``(B) For purposes of subparagraph (A), the term `new motor vehicle' 
means any motor vehicle driven with no more than the limited use 
necessary in moving, transporting, or road testing such vehicle prior 
to delivery from the vehicle manufacturer to a dealer, but in no event 
shall the odometer reading of such vehicle exceed 300 miles.''.
  (b) Exempted Vehicles.--Section 32705(a) of title 49, United States 
Code, as amended by subsection (a), is amended by adding at the end the 
following new paragraph:
  ``(5) The Secretary may exempt such classes or categories of vehicles 
as the Secretary deems appropriate from these requirements. Until such 
time as the Secretary amends or modifies the regulations set forth in 
49 CFR 580.6, such regulations shall have full force and effect.''.

SEC. 7. INTERNATIONAL HARMONIZATION.

  (a) Amendment.--Subchapter III of chapter 301 of title 49, United 
States Code, is amended by adding at the end the following:

``Sec. 30148. International motor vehicle safety outreach

  ``(a) Activities.--The Secretary is authorized, in consultation with 
the Secretaries of State and Commerce where appropriate, to engage in 
activities that improve worldwide motor vehicle safety through 
appropriate activities. Such activities may include--
          ``(1) promoting the adoption of international and national 
        vehicle standards that are harmonized with, functionally 
        equivalent to, or compatible with United States vehicle 
        standards;
          ``(2) participating in efforts to foster an international 
        acceptance of globally harmonized or functionally equivalent or 
        compatible motor vehicle regulations and standards to otherwise 
        improve international highway and motor vehicle safety;
          ``(3) promoting international cooperative programs for 
        conducting research, development, demonstration projects, 
        training, and other forms of technology transfer and exchange, 
        including safety conferences, seminars, and expositions to 
        enhance international motor vehicle safety; and
          ``(4) providing technical assistance to other countries 
        relating to their adoption of United States vehicle regulations 
        or standards functionally equivalent to United States vehicle 
        standards.
  ``(b) Cooperation.--The Secretary may carry out the authority granted 
by this section, in cooperation with appropriate United States 
Government agencies, any State or local agency, and any authority, 
association, institution, corporation (profit or nonprofit), foreign 
government, multinational institution, or any other organization or 
person.
  ``(c) Consideration.--When engaging in activities to improve 
worldwide motor vehicle safety, the Secretary shall ensure that these 
activities maintain or improve the level of safety of motor vehicles 
and motor vehicle equipment sold in the United States.
  ``(d) Public Meetings and Information.--To ensure public awareness 
of, and opportunity to comment on, decision-making meetings concerning 
the adoption of a globally harmonized motor vehicle regulation or 
standard, described in subsection (a)(2), by an international body or 
representatives of any foreign nation the Secretary shall--
          ``(1) not less than quarterly, provide notice of, and hold a 
        public meeting to receive comments on the subject matter of, 
        any decision-making meetings scheduled to be held with an 
        international body or representatives of any foreign nation 
        before the next public meeting required to be held under this 
        paragraph; and
          ``(2) make available to the public any relevant information 
        and records, including any proposed text, concerning the matter 
        of any decision-making meetings scheduled with an international 
        body or representatives of any foreign nation as those 
        materials become available.''.
  (b) Clerical Amendment.--The table of contents in subchapter III of 
chapter 301 of title 49, United States Code, is amended by adding at 
the end the following:

``30148.  International motor vehicle safety outreach.''.

SEC. 8. MISCELLANEOUS AMENDMENTS.

  (a) Notification of Defects and Noncompliance.--Sections 30118(d) and 
30120(h) of title 49, United States Code, are each amended by striking 
the second sentence.
  (b) Remedies for Defects and Noncompliance.--Section 30120(i)(1) of 
title 49, United States Code, is amended by inserting ``(including 
retailers of motor vehicle equipment)'' after ``dealer'' the first time 
it appears.
  (c) Tires.--Section 30123 of title 49, United States Code, is amended 
by striking subsections (a), (b), and (c) and by redesignating 
subsections (d), (e), and (f), as subsections (a), (b), and (c), 
respectively.
  (d) Automatic Occupant Crash Protection and Seat Belt Use.--Section 
30127(g)(1) of title 49, United States Code, is amended by striking 
``every 6 months'' and inserting ``annually''.
  (e) Miscellaneous.--
          (1) Definitions.--
                  (A) Country of origin.--Section 32304(a)(3)(B) of 
                title 49, United States Code, is amended by inserting 
                before the period the following: ``, plus the assembly 
                and labor costs incurred for the final assembly of such 
                engines and transmissions''.
                  (B) Final assembly place.--Section 32304(a)(5) of 
                title 49, United States Code, is amended by adding at 
                the end the following: ``Such term does not include 
                facilities for engine and transmission fabrication and 
                assembly and the facilities for fabrication of motor 
                vehicle equipment component parts which are produced at 
                the same final assembly place using forming processes 
                such as stamping, machining, or molding processes.''.
                  (C) Outside supplier content reporting.--Section 
                32304(a)(9)(A) of title 49, United States Code, is 
                amended to read as follows:
                  ``(A) for an outside supplier--
                          ``(i) the full purchase price of passenger 
                        motor vehicle equipment whose purchase price 
                        contains at least 70 percent value added in the 
                        United States and Canada; or
                          ``(ii) that portion of the purchase price of 
                        passenger motor vehicle equipment containing 
                        less than 70 percent value added in the United 
                        States and Canada that is attributable to the 
                        percent value added in the United States and 
                        Canada when such percent is expressed to the 
                        nearest 5 percent; and''.
          (2) Country of assembly.--Section 32304(d) of title 49, 
        United States Code, is amended by adding at the end the 
        following; ``A manufacturer may add to the label required under 
        subsection (b) a line stating the country in which vehicle 
        assembly was completed.''.
          (3) Vehicle content percentage by assembly plant.--Section 
        32304 of title 49, United States Code, is amended by 
        redesignating subsections (c) through (f) as subsections (f) 
        through (i), respectively, and by adding after subsection (b) 
        the following:
  ``(c) Vehicle Content Percentage by Assembly Plant.--A manufacturer 
may display separately on the label required by subsection (b) the 
domestic content of a vehicle based on the country in which the 
assembly plant is located. Such display shall occur after the matter 
required to be in the label by subsection (b)(1)(A).''.
          (4) Suppliers failing to report.--Section 32304 of title 49, 
        United States Code, is amended by adding after subsection (c), 
        as added by paragraph (3), the following:
  ``(d) Value Added Determination.--If a manufacturer or allied 
supplier requests information in a timely manner from one or more of 
its outside suppliers concerning the U.S./Canadian content of 
particular equipment, but does not receive that information despite a 
good faith effort to obtain it, the manufacturer or allied supplier may 
make its own good faith value added determinations, subject to the 
following:
          ``(1) The manufacturer or allied supplier shall make the same 
        value added determinations as would be made by the outside 
        supplier, that is, whether 70 percent or more of the value of 
        equipment is added in the United States and/or Canada.
          ``(2) The manufacturer or allied supplier shall consider the 
        amount of value added and the location in which the value was 
        added for all of the stages that the outside supplier would be 
        required to consider.
          ``(3) The manufacturer or allied supplier may determine that 
        the value added in the United States and/or Canada is 70 
        percent or more only if it has a good faith basis to make that 
        determination.
          ``(4) A manufacturer and its allied suppliers may, on a 
        combined basis, make value added determinations for no more 
        than 10 percent, by value, of a carline's total parts content 
        from outside suppliers.
          ``(5) Value added determinations made by a manufacturer or 
        allied supplier under this paragraph shall have the same effect 
        as if they were made by the outside supplier.
          ``(6) This provision does not affect the obligation of 
        outside suppliers to provide the requested information.''.
          (5) Accounting for the value of small parts.--Section 32304 
        of title 49, United States Code, is amended by adding after 
        subsection (d), as added by paragraph (4), the following:
  ``(e) Small Parts.--The country of origin of nuts, bolts, clips, 
screws, pins, braces, gasoline, oil, blackout, phosphate rinse, 
windshield washer fluid, fasteners, tire assembly fluid, rivets, 
adhesives, grommets, and any system, subassembly, or component 
installed in a vehicle shall be considered to be the country in which 
such parts were included in the final assembly of such vehicle.''.
  (f) Study.--The National Highway Traffic Safety Administration shall 
conduct a study of the benefits to motor vehicle drivers of a 
regulation to require the installation in a motor vehicle of an 
interior device to release the trunk lid. Not later than 18 months 
after the date of the enactment of this Act, the Administration shall 
submit a report on the results of the study to the Committee on 
Commerce of the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate.

SEC. 9. IMPORTATION OF MOTOR VEHICLE FOR SHOW OR DISPLAY.

  (a) Importation of Noncomplying Motor Vehicles.--Section 30114 of 
title 49, United States Code, is amended by striking ``or competitive 
racing events'' and inserting ``competitive racing events, show, or 
display''.
  (b) Transition Rule.--A person who is the owner of a motor vehicle 
located in the United States on the date of enactment of this Act may 
seek an exemption under section 30114 of title 49, United States Code, 
as amended by subsection (a) of this section, for a period of 6 months 
after the date regulations of the Secretary of Transportation 
promulgated in response to such amendment take effect.

                          Purpose and Summary

    H.R. 2691, the National Highway Traffic Safety 
Administration Reauthorization Act of 1998, reauthorizes and 
improves the operations of the National Highway Traffic Safety 
Administration (NHTSA). The legislation authorizes 
appropriations, places a restriction on the ability of the 
Agency to lobby State and local legislators, directs the Agency 
to publicize information regarding the risks and benefits of 
safety equipment, provides decision criteria for occupant 
protection standards, authorizes certain activities to 
harmonize domestic and international motor vehicle safety 
standards, amends the American Automobile Labeling Act (49 
U.S.C. Sec. 32304), and also makes other miscellaneous and 
technical amendments to the NHTSA's authorizing statutes.

                  Background and Need for Legislation

    In 1966, Congress enacted the National Traffic and Motor 
Vehicle Safety Act (P.L. 89-563) to reduce traffic accidents, 
and the deaths and injuries resulting from those accidents. As 
part of that mission, the Secretary of Transportation was given 
authority to establish appropriate motor vehicle safety 
standards. In 1970, Congress enacted the Federal Highway Act of 
1970 (P.L. 91-605), which formally established the National 
Highway Traffic Safety Administration, the agency with the day-
to-day responsibility for reducing the deaths, injuries, and 
economic losses resulting from motor vehicle accidents.
    There continue to be an average of approximately 40,000 
fatalities each year involving motor vehicles. There are 
approximately another 1,650 injuries per 100,000 registered 
vehicles each year. These injuries and fatalities continue to 
place a strain on both public and private emergency and medical 
resources.
    NHTSA currently has 625 full-time equivalents (FTEs) and an 
annual budget for Fiscal Year 1997 of just over $300 million. 
NHTSA was last authorized in the 1991 Conference Report on the 
Intermodal Surface Transportation Efficiency Act (ISTEA) (H. 
Rpt. 102-404; P.L. 102-240). That authorization expired at the 
end of Fiscal Year 1995.
    Since 1991, motor vehicle safety has become an increasingly 
important issue to American consumers. The ability of vehicles 
to protect occupants in crashes--and to avoid crashes 
altogether--has become progressively more important to 
consumers as they make purchasing decisions about motor 
vehicles. Where once safety features were an afterthought, 
manufacturers are now actively competing on the basis of the 
ability of their cars to protect occupants from injury.
    One of the ways in which the 1991 ISTEA Conference Report 
attempted to address this desire for safety was a provision 
requiring that by September 1, 1997, all new passenger cars 
must be equipped with air bags on both the passenger and the 
driver side, and that by September 1, 1998, all new 
multipurpose passenger vehicles, such as sport utility vehicles 
and minivans, must be similarly equipped. As of February 1, 
1998, NHTSA estimates that 2,844 people have been saved by air 
bags in motor vehicle crashes. Tragically, however, there have 
also been 91 deaths associated with air bag deployments, 
including 51 children. Of the 40 adults killed by air bag 
deployments, only 12 were properly restrained. And of the 51 
children, 12 were in rear-facing child seats positioned in 
front of the passenger side air bag; of the other 39, not one 
was properly restrained by a seat belt or child seat.
    In response to the injuries attributed to air bags, the 
Committee on Commerce gathered information about air bag 
deployments and the potential for injury, as well as NHTSA's 
response to the problem. In doing so, the Committee received 
testimony from experts associated with the Administration, 
consumer groups, the insurance industry, and automobile 
manufacturers.
    The Committee found that the consensus among the experts is 
that the single best protection against injuries from air bags 
is a driver who ensures that he or she and all passengers are 
properly restrained and positioned. All vehicle occupants must 
wear seat belts and children must be secured in an appropriate 
child restraint. All children under 12 years of age should ride 
in the back of the vehicle, and a child in a rear-facing child 
restraint should never be placed in front of an active air bag. 
Front seat passengers and drivers should both sit at least 10 
inches back from an air bag. The evidence indicates that when 
these simple rules are followed, the risk of injury from an air 
bag deployment is minimal.
    However, there were two areas that the Committee found 
sufficiently troubling to warrant direct attention. The first 
is a widespread impression among the public that air bags 
deployed in a manner that posed no risk of injury to occupants. 
While the information regarding the risk of injury from an air 
bag deployment has been available for some time, it is clear 
that this information has not been readily accessible to 
consumers. In order to mitigate this problem in the future, 
particularly as NHTSA works with manufacturers to develop the 
next generation of passive restraint technology, the 
legislation directs NHTSA to begin disclosing to the public the 
reasonable risks and benefits of various major safety devices 
or systems intended to protect occupants.
    The second area of concern is the allegation that the motor 
vehicle safety standard (MVSS) governing air bags was 
unintentionally placing belted occupants at a greater risk of 
injury in order to protect unbelted occupants. The current 
testing standard contained in MVSS 208 requires that two tests 
be performed to ensure that air bag systems meet the 
performance standard. The first test requires that a dummy 
representing an average-sized male be protected while the dummy 
is restrained by a properly fastened seat belt. The second test 
requires that a dummy representing an average-sized male be 
protected in a crash while completely unrestrained. Some argued 
that the second test requires an air bag to deploy with such 
force that it inadvertently increases the risk of injury to 
some properly belted passengers.
    The Committee has consistently emphasized the importance of 
seat belts to the safety of motor vehicle occupants. The 
Committee was concerned that, in an effort to maximize 
protection for unrestrained occupants, the current standard had 
the unintentional effect of increasing the risk to occupants 
who took the affirmative step of wearing a seat belt. This is 
not an acceptable trade-off. Therefore, the Committee has 
included language directing the Secretary of Transportation 
(the Secretary) to maximize protection of unbelted occupants 
only to the extent that such protection would not substantially 
increase the risk of injury to belted occupants.
    In reviewing NHTSA's operations since the last time the 
Agency was reauthorized, the Committee also noted other areas 
of concern. For instance, the Committee obtained a copy of a 
contract from NHTSA which purchased services to ``produce a 
media package that presents the injury prevention and economic 
benefits of enacting mandatory motorcycle helmet laws for all 
riders, entitled `Motorcycle Helmet Legislative Technical 
Assistance' '' (Contract No. DTNH22-96-C-05128, dated Sep. 23, 
1996, issued by DOT/NHTSA). In Section C of the aforementioned 
contract, NHTSA stated that an objective of the contract was to 
develop information that would ``be used to provide technical 
assistance in order to defeat repeal efforts of existing 
laws.'' (emphasis added)
    Currently, 18 U.S.C. Sec. 1913 prohibits the use of

        money appropriated by any enactment of Congress * * * 
        to pay for [any activity] intended or designed to 
        influence in any manner any Member of Congress, to 
        favor or oppose, by vote or otherwise, any legislation 
        or appropriation by Congress. * * *

This provision was enacted in 1919 to prohibit the use of 
taxpayer dollars for lobbying elected Federal officials. While 
NHTSA has an important responsibility to ensure that 
legislators at the Federal, State, and local levels all have 
complete information about the benefits of particular safety 
policies, the Committee believes that taxpayers are no more 
inclined to permit Federal agencies to lobby independently 
elected State and local officials than they are to permit those 
same agencies to lobby Members of Congress.
    Given the language contained in the aforementioned 
contract, the Committee believed that it was necessary to 
clearly delineate acceptable and unacceptable activities for 
NHTSA. To that end, the Committee included language in H.R. 
2691 which restricts the use of funds authorized by the 
legislation for activities intended to urge a State or local 
legislator to vote one way or another. The Committee intends 
that NHTSA apply the same standards to its dealings with State 
and local legislators that it currently must follow in its 
dealings with the Congress.
    The Committee granted the Administration authority it 
requested to engage in activities to harmonize U.S. motor 
vehicle safety standards with safety standards established by 
other countries and international bodies. The Committee intends 
that this authority be used both to improve the level of motor 
vehicle safety in the United States and the competitiveness of 
U.S. manufacturers abroad, two goals which are not mutually 
exclusive. The Committee notes that this process should be 
carried out in conjunction with manufacturers, consumer groups, 
and others who have a stake in the safety of U.S. motor 
vehicles. The Committee included language to ensure that the 
Agency conducts this process in an open and transparent manner.
    The Committee also considered the performance of the 
American Automobile Labeling Act (AALA; 49 U.S.C. Sec. 32304), 
a measure adopted in 1992 without any formal action on the part 
of this Committee.1 Originally intended to provide 
consumers with accurate information about the domestic content 
used in the production of new cars, flaws in the AALA formula 
produced results which may not have accurately reflected the 
domestic content in the car.
---------------------------------------------------------------------------
    \1\ The AALA was adopted by the Senate as an amendment to H.R. 
5518, the Department of Transportation and Related Agencies 
Appropriations Act for Fiscal Year 1993 (P.L. 102-388) by voice vote. 
The House never held a hearing or a markup on this provision.
---------------------------------------------------------------------------
    Under the AALA, the label must list the following: (1) the 
U.S. and Canadian parts content of the vehicle; (2) the top two 
source countries of origin for the vehicle parts in a car line 
where 15 percent or more of the vehicle's parts content comes 
from a country other than the U.S. or Canada; (3) the location 
of assembly; and (4) the country of origin of the engine and 
transmission parts. While the categories of information 
required on the label are straightforward, the manner in which 
that information is determined is not. For instance, the 
current AALA formula used a ``roll-up/roll-down'' formula for 
computing the domestic content of parts produced by suppliers 
which were not wholly owned subsidiaries of the manufacturer, 
while suppliers owned by the manufacturer were permitted to use 
the actual value of the domestic content in the AALA 
calculation. This ``roll-up/roll-down'' formula requires that 
any part manufactured by such a supplier where the U.S./
Canadian content of a part was less than 70 percent be counted 
as having zero percent domestic content for purposes of the 
AALA calculation. Likewise, if a part manufactured by an 
outside supplier had 70 percent or more domestic content, it is 
counted as having 100 percent U.S./Canadian content for 
purposes of the AALA calculation. This led NHTSA to conclude 
that ``The same car, with identical parts, could have a U.S./
Canadian parts content as high as 53% or as low as 11% * * *'' 
(92 Fed. Reg. 54353).
    The Committee also found that the AALA discriminated 
against certain suppliers and manufacturers in other ways. It 
computes U.S./Canadian parts value for an entire carline 
regardless of country of assembly, so that the domestic content 
of cars manufactured in the United States is averaged with cars 
in the same carline which are manufactured overseas. It 
excludes final assembly labor and the value of numerous parts 
produced in-house by manufacturers. Further, the AALA 
represents a third, separate calculation of domestic content 
bearing no resemblance to either the existing domestic content 
formulas required under the Combined Average Fuel Economy 
(CAFE) standards or the North American Free Trade Agreement 
(NAFTA), which results in increased costs to manufacturers and 
further confusion for consumers. The language adopted by the 
Committee addresses some of these concerns and mitigates some 
of the negative effects of the original AALA formula.
    The Committee also addressed a number of other 
miscellaneous problems which had become apparent since the last 
time the Agency was authorized. The legislation makes certain 
changes to the odometer disclosure statute; restores a 
provision relating to the importation of certain limited-
production vehicles for show or display that was accidentally 
deleted during the recodification of title 49, United States 
Code; and eliminates or reduces certain statutory notice and 
reporting requirements which were of limited usefulness.
    Finally, the Committee would like to note the importance of 
NHTSA's ongoing research activities. Work on the development of 
more life-like crash test dummies, including dummies which 
better measure the effects of crashes on children and adults of 
differing stature, should continue. Likewise, the Agency should 
continue to investigate ways in which mobile phones and vehicle 
crash sensors might be better integrated to ensure that 
authorities are able to appropriately respond to injuries in 
motor vehicle crashes.
    The Committee believes that enactment H.R. 2691 will 
improve the operations of NHTSA, reduce injuries resulting from 
motor vehicle crashes, and improve motor vehicle safety in 
general.

                                Hearings

    The Subcommittee on Telecommunications, Trade, and Consumer 
Protection held a hearing on H.R. 2691, the National Highway 
Traffic Safety Administration Reauthorization Act, on October 
29, 1997 (Serial No. 105-52). The Subcommittee received 
testimony from the following witnesses: The Honorable Philip R. 
Recht, Deputy Administrator, National HighwayTraffic Safety 
Administration; Mr. Barry Felrice, Director, Regulatory Affairs 
Department, American Automobile Manufacturers Association; Mr. George 
Parker, Vice-President, Engineering Affairs, Association of 
International Automobile Manufacturers; and The Honorable Joan 
Claybrook, Program Co-Chair, Advocates for Highway and Auto Safety.
    The Subcommittee also held two oversight hearings in 
preparation for the legislation. On April 28, 1997, the 
Subcommittee held a hearing on Air Bags, Car Seats, and Child 
Safety (Serial No. 105-16) at which the Subcommittee received 
testimony from the following witnesses: The Honorable Ricardo 
Martinez, Administrator, National Highway Traffic Safety 
Administration accompanied by Mr. James Hedlund, Associate 
Administrator, Traffic Safety Programs, National Highway 
Traffic Safety Administration and Mr. Robert Shelton, Associate 
Administrator, Safety Performance Standards, National Highway 
Traffic Safety Administration; The Honorable Philip R. Recht, 
Deputy Administrator, National Highway Traffic Safety 
Administration; Mr. Ralph Hitchcock, Acting Associate 
Administrator, Research and Development, National Highway 
Traffic Safety Administration; Ms. Susan M. Cischke, Executive 
Director, Vehicle Certification, Compliance and Safety Affairs, 
Chrysler Corporation; Mr. Bob Lange, Engineering Director, 
Vehicle Methodology, Development and Labs, General Motors 
Corporation; Mr. Lou W. Camp, Executive Director, Automotive 
Safety and Engineering Standards Office, Ford Motor Company; 
Mr. Philip A. Hutchinson, Jr., President and CEO, Association 
of International Automobile Manufacturers accompanied by Mr. 
George Parker, Vice President, Engineering Affairs, Association 
of International Automobile Manufacturers; Mr. Ramsay Gillman, 
President, National Automobile Dealers Association; Ms. Heather 
Paul, Executive Director, Safe Kids Campaign accompanied by Ms. 
Angela Mickalide, Program Director, Safe Kids Campaign; and Ms. 
Janet Dewey, Executive Director, Air Bag Safety Campaign.
    On May 22, 1997, the Subcommittee held a hearing on the 
Reauthorization of the National Highway Traffic Safety 
Administration (Serial No. 105-30). The Subcommittee received 
testimony from the following witnesses: The Honorable Andrew H. 
Card, Jr., President, American Automobile Manufacturers 
Association; Mr. George Parker, Vice President, Engineering 
Affairs, Association of International Automobile Manufacturers; 
Mr. Stephen L. Oesch, Senior Vice President, Insurance 
Institute for Highway Safety; Mr. Sam Kazman, Competitive 
Enterprise Institute; The Honorable Joan Claybrook, Program Co-
Chair, Advocates for Highway and Auto Safety; The Honorable 
Ricardo Martinez, Administrator, National Highway Traffic 
Safety Administration accompanied by The Honorable Philip R. 
Recht, Deputy Administrator, National Highway Traffic Safety 
Administration.

                        Committee Consideration

    On October 29, 1997, the Subcommittee on 
Telecommunications, Trade, and Consumer Protection met in open 
markup session and approved H.R. 2691 for Full Committee 
consideration, amended, by a voice vote. On March 25, 1998, the 
Full Committee met in open markup session and ordered H.R. 2691 
reported to the House, amended, by a voice vote, a quorum being 
present.

                            Roll Call Votes

    Clause 2(l)(2)(B) of rule XI of the Rules of the House 
requires the Committee to list the recorded votes on the motion 
to report legislation and amendments thereto. A motion by Mr. 
Bliley to order H.R. 2691 reported to the House, amended, was 
agreed to by a voice vote, a quorum being present. The 
following is the recorded vote, including the names of those 
Members voting for and against, and the voice votes taken on 
amendments offered to H.R. 2691.




                              voice votes

    Bill: H.R. 2691, National Highway Traffic Safety 
Administration Reauthorization Act of 1998.
    Amendment: Amendment in the Nature of a Substitute by Mr. 
Bliley.
    Disposition: Agreed to, amended, by a voice vote.

    Amendment: Amendment to the Bliley Amendment in the Nature 
of a Substitute by Ms. Furse re: permit the importation of 
motor vehicles for show or display.
    Disposition: Agreed to by a voice vote.

    Amendment: Amendment to the Bliley Amendment in the Nature 
of a Substitute by Mr. Stupak re: require the National Highway 
Traffic Safety Administration to complete a study of interior 
trunk latch releases.
    Disposition: Agreed to by a voice vote.

    Motion: Motion by Mr. Bliley to order H.R. 2691 reported to 
the House, amended.
    Disposition: Agreed to by a voice vote, a quorum being 
present.

                      Committee Oversight Findings

    Pursuant to clause 2(l)(3)(A) of rule XI of the Rules of 
the House of Representatives, the Committee held both 
legislative and oversight hearings and made findings that are 
reflected in this report.

              Committee on Government Reform and Oversight

    Pursuant to clause 2(l)(3)(D) of rule XI of the Rules of 
the House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform and Oversight.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 2(l)(3)(B) of rule XI of the 
Rules of the House of Representatives, the Committee finds that 
H.R. 2691, the National Highway Traffic Safety Administration 
Reauthorization Act of 1998, would result in no new or 
increased budget authority, entitlement authority, or tax 
expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 2(l)(3)(C) of rule XI of the Rules of 
the House of Representatives, the following is the cost 
estimate provided by the Congressional Budget Office pursuant 
to section 402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 30, 1998.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2691, the National 
Highway Traffic Safety Administration Reauthorization Act of 
1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Clare 
Doherty (for federal costs), and Jean Wooster (for the private-
sector impact).
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 2691--National Highway Traffic Safety Administration 
        Reauthorization Act of 1998

    Summary: H.R. 2691 would authorize appropriations totaling 
$262 million over fiscal years 1999 through 2001 for the 
National Highway Traffic Safety Administration's (NHTSA's) 
operations and research program. Because the bill would not 
affect direct spending or receipts, pay-as-you-go procedures 
would not apply. H.R. 2691 contains no intergovernmental 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
(UMRA) and would impose no costs on state, local, or tribal 
governments. H.R. 2691 would impose new private-sector 
mandates, as defined by UMRA. CBO is unable to determine 
whether the costs of those mandates would exceed the statutory 
threshold.
    Estimated cost to the Federal Government: H.R. 2691 would 
authorize the appropriation of $87.4 million each year from 
1999 through 2001 for the NHTSA operations and research 
program. For purposes of this estimate, CBO assumes that the 
entire amounts authorized in the bill will be appropriated by 
the start of each fiscal year. Outlay estimates are based on 
historical spending rates for NHTSA.
    The bill would require NHTSA to complete a rulemaking on 
publicizing information on the risks and benefits of motor 
vehicle equipment and conduct a study of the benefits of a 
device inside the trunk to release the lid. Funding for these 
activities would come from amounts authorized in H.R. 2691.
    The estimated budgetary impact of H.R. 2691 is shown in the 
following table. The costs of this legislation fall within 
budget function 400 (transportation).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal years, in millions of dollars--  
                                                                 -----------------------------------------------
                                                                   1998    1999    2000    2001    2002    2003 
----------------------------------------------------------------------------------------------------------------
                                        Spending Subject to Appropriation                                       
                                                                                                                
Spending Under Current Law:                                                                                     
    Budget Authority \1\........................................      75       0       0       0       0       0
    Estimated Outlays...........................................      91      45      23      13       6       5
Proposed Changes:                                                                                               
    Authorization Level.........................................       0      87      87      87       0       0
    Estimated Outlays...........................................       0      51      74      83      37      13
Spending Under H.R. 2691:                                                                                       
    Authorization Level \1\.....................................      75      87      87      87       0       0
    Estimated Outlays...........................................      91      96      97      96      43      18
----------------------------------------------------------------------------------------------------------------
\1\ The 1998 level is the amount appropriated for that year.                                                    

    Pay-as-you-go considerations: None.
    Estimated impact on State, local, and tribal governments: 
H.R. 2691 contains no intergovernmental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments.
    Estimated impact on the private sector: H.R. 2691 would 
impose new private-sector mandates, as defined by UMRA, on 
manufacturers and retailers of motor vehicle equipment and on 
domestic and foreign automobile manufacturers.
    The bill would prohibit retailers of motor vehicle 
equipment from selling or leasing a product when a manufacturer 
has sent them a defect notice related to motor vehicle safety. 
Motor vehicle equipment includes a variety of products, ranging 
from child safety seats to car jacks and brake fluid. Retailers 
include any seller who sells such products, ranging from toy 
stores to auto parts stores. Because of the lack of reliable 
information on current retail practices, CBO is unable to 
estimate the direct cost of complying with this mandate.
    The bill would also change the formula that is used to 
determine the domestic content of automobiles. That content 
must be shown on a label attached to the automobile. Based on 
information from both domestic and foreign automobile 
manufacturers, CBO estimates that this mandate would not impose 
any additional costs.
    Estimate prepared by: Federal costs: Clare Doherty; impact 
on the private sector: Jean Wooster.
    Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    This section provides the short title for the legislation, 
the ``National Highway Traffic Safety Administration 
Reauthorization Act of 1998.''

Section 2. Authorization of appropriations

    This section authorizes funds for those NHTSA functions 
within the jurisdiction of the Committee on Commerce. For 
Fiscal Years 1999 through 2001, the legislation authorizes 
$81.2 million each year for motor vehicle safety activities, 
and $6.2 million for motor vehicle information activities. 
These amounts are equivalent to the Administration's budget 
request.

Section 3. Restriction on lobbying activities

    This section prohibits the use of funds authorized by the 
legislation for the purpose of urging a State or local 
legislator to favor or oppose the adoption of any specific 
legislative proposal pending before any State or local 
legislature. The provision is not intended to prohibit the 
Agency from informing State or local legislators about the 
prudence of a particular policy choice, but rather is intended 
to limit the Agency's ability to endorse or oppose a particular 
piece of legislation before a State or local legislature. Thus, 
under this provision, NHTSA could continue to testify before 
any State or local legislative body and inform State and local 
officials about the merits of a particular course of action. A 
NHTSA official could even appear before a committee of a State 
legislature to testify that NHTSA believes that enactment of 
primary enforcement seat belt laws results in fewer highway 
fatalities. NHTSA could, in fact, testify that it favors 
general efforts to enact primary enforcement seat belt laws and 
opposes general efforts to repeal such laws. However, a NHTSA 
official could not ask an individual State or local legislator, 
or any group of State or local legislators, to vote for or 
against a particular pending measure.
    The language in section 3 is patterned after the Federal 
criminal statute prohibiting the use of appropriated funds for 
the purpose of lobbying Congress (18 U.S.C. Sec. 1913). The 
Committee intends that the Agency and its officials follow the 
same criteria in dealing with State and local legislators as 
the Agency would apply under 18 U.S.C. Sec. 1913 in its 
dealings with the United States Congress.

Section 4. Risk and benefit disclosure

    Section 4 directs the Secretary, within one year of the 
date of enactment, to begin communicating to the public 
information regarding the reasonable risks and benefits of any 
major device or element of design to be installed in a motor 
vehicle pursuant to a MVSS and which is important to the 
protection of motor vehicle occupants. Subsection (b) requires 
that the Secretary conduct a rulemaking to determine the extent 
to which such information can be communicated in a manner which 
is scientifically objective and relies to the extent possible 
on scientific findings, and the extent to which such 
information may be communicated in a clear and easily 
understandable format through such methods as the Internet and 
public libraries. Subsection (c) prohibits the Secretary from 
requiring any manufacturer or dealer to provide such 
information directly to the consumer, unless the Secretary 
first determines that doing so is essential to ensuring motor 
vehicle safety.
    In determining the extent to which any major device or 
element of design is ``important to the protection of motor 
vehicle occupants,'' the Committee intends that the Secretary 
consider the degree to which such device or element is directly 
related to occupant protection. For instance, the Committee 
intends such devices as seat belts and air bags to be 
considered important to the protection of motor vehicle 
occupants. However, the Committee does not consider devices 
such as headlamps and windshield wipers to fall within the same 
category.

Section 5. Occupant protection preferences

    Section 5 requires that the Secretary, when prescribing a 
new MVSS relating to motor vehicle occupant protection or 
revising an existing standard, design that standard in such a 
way as to protect improperly restrained and positioned 
occupants only to the extent that doing sowould not 
substantially increase the risk of injury to occupants who are properly 
restrained and positioned. This provision is intended to maximize the 
protection for improperly restrained and positioned occupants, but only 
to the extent that doing so does not substantially increase the risk of 
injury to properly restrained and positioned occupants.

Section 6. Odometers

    Subsection (a) is intended to eliminate the need for two 
odometer disclosures in certain transactions involving rental 
car companies, dealers, and automobile manufacturers by 
exempting the transfer of new motor vehicles from a 
manufacturer jointly to a dealer and a rental car company. 
Subsection (b) responds to several recent Federal District 
Court decisions holding that NHTSA does not have authority to 
exempt vehicles from the odometer disclosure requirements, even 
when the purchasers of such vehicles rely on service records 
rather than odometers to indicate wear and tear, such as in the 
case of heavy trucks. This subsection specifically grants NHTSA 
such authority.

Section 7. International harmonization

    This provision, requested by the Administration, creates a 
new section in title 49, United States Code, giving the 
Secretary the authority to engage in activities designed to 
encourage harmonization of motor vehicle safety standards 
globally. Subsection (a), ``Activities,'' would authorize the 
Secretary, in consultation with the Secretaries of State and 
Commerce where appropriate, to engage in activities that 
improve worldwide motor vehicle safety through various 
activities. Such activities would include: (1) promoting the 
adoption of international and national vehicle standards that 
are harmonized with, functionally equivalent to, or compatible 
with United States vehicle standards; (2) participating in 
efforts to foster an international acceptance of globally 
harmonized and/or functionally equivalent or compatible motor 
vehicle regulations and standards to otherwise improve 
international highway and motor vehicle safety; (3) promoting 
international cooperative programs for conducting research, 
development, demonstration projects, training, and other forms 
of technology transfer and exchange, including safety 
conferences, seminars, and/or expositions to enhance 
international motor vehicle safety; and (4) providing technical 
assistance to other countries relating to their adoption of 
United States vehicle regulations or standards functionally 
equivalent to U.S. vehicle standards.
    Subsection (b), ``Cooperation,'' would authorize the 
Secretary, in carrying out the activities described in 
subsection (a), to cooperate with appropriate United States 
government agencies, any State or local agency, and any 
authority, association, institution, corporation (profit or 
nonprofit), foreign government, multinational institution, or 
any other organization or person.
    Subsection (c), ``Consideration,'' would direct the 
Secretary, in carrying out the activities described in 
subsection (a), to ensure that these activities maintain or 
improve the level of safety of motor vehicles and motor vehicle 
equipment sold in the United States. Accordingly, the 
Secretary's harmonization activities would be pursued without 
any diminution of U.S. safety performance standards.
    Subsection (d), ``Public Meetings and Information,'' 
requires that the Secretary hold public meetings at least 
quarterly to receive comments on pending international 
harmonization matters and make available to the public any 
relevant documents to pending international harmonization 
matters.

Section 8. Miscellaneous amendments

    This section makes several miscellaneous changes to title 
49, United States Code, with respect to NHTSA's authorizing 
statutes. These changes in subsections (a) through (d) were 
requested by the Administration. Subsection (a) permits the 
Secretary to streamline the regulatory process and reduce 
paperwork by granting the Secretary discretion in requiring 
notice and comment when (1) deciding that a defect or 
noncompliance is inconsequential to motor vehicle safety, or 
(2) granting a manufacturer's exemption from section 30118's 
notification requirements.
    Subsection (b) closes a loophole which allows auto parts 
stores and retailers to continue to sell defective equipment 
even though motor vehicle dealers would be prohibited from 
selling the same item. This provision includes retailers of 
motor vehicle equipment in the prohibition on selling defective 
items of equipment.
    Subsection (c) amends 49 U.S.C. 30123 (``Tires''), to 
repeal subsections (a) (``Labeling Requirement''), (b) 
(``Contents of Label''), and (c) (``Additional Information''). 
Under section 30123(a), the Secretary must require 
manufacturers of pneumatic tires to ``permanently and 
conspicuously'' label their tires with specified information 
under section 30123(b) about the construction of the tires and 
the identity of the manufacturer. Section 30123(c) gives the 
Secretary discretionary authority to require that additional 
safety information be disclosed to a purchaser when a tire is 
sold.
    Subsection (d) amends 49 U.S.C. 30127(g) to increase the 
reporting interval on the effectiveness of occupant restraint 
systems from every six months to annually. The Administration 
expressed concern that the six-month interval was too short a 
time frame in which to provide meaningful data to Congress.
    Subsection (e) amends the American Automobile Labeling Act 
(49 U.S.C. Sec. 30204) to make certain changes in the labeling 
requirement and the domestic content calculations. Subparagraph 
(1)(A) provides that the labor value of engine and transmission 
production is also included in the engine and transmission 
origin determination and subparagraph (1)(B) codifies certain 
regulations which permit labor costs of parts manufactured at 
the same location as final vehicle assembly to be included in 
the vehicle's overall content calculation, provided it does not 
occur during vehicle assembly. Subparagraph (1)(C) institutes a 
tiered system for accounting for the domestic content of parts 
manufactured by outside suppliers. Under this subparagraph, 
suppliers would report content to the nearest five percent. For 
instance, 38 percent would be reported to the manufacturer as 
40 percent, rather than zero as under current law.
    Paragraph (2) permits vehicle manufacturers to voluntarily 
add a line to the label stating the country in which vehicle 
final assembly took place. Paragraph (3) permits manufacturers, 
on a voluntary basis, to separately display the domestic 
content of a particular vehicle, based on its assembly plant. 
This information must be reported in addition to the carline 
average percentage. Paragraph (4) codifies existing regulations 
permitting manufacturers to estimate, based upon best available 
information, the content of no more than 10 percent of the 
vehicle's parts, when suppliers fail to report such 
information. Paragraph (5) permits manufacturers to default the 
value of certain small parts, such as nuts, bolts, clips, 
screws, and pins, to the country of manufacture.
    Subsection (f) directs NHTSA to conduct a study of the 
benefits to motor vehicle drivers of a regulation to require 
the installation of a device in the trunk compartment to 
release the trunk lid.

Section 9. Importation of motor vehicle for show or display

    Section 9 reinstates NHTSA's authority to exempt certain 
motor vehicles imported for the purpose of show or display from 
certain applicable motor vehicle safety standards. Such 
authority was deleted when title 49, United States Code was 
recodified in 1988.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

TITLE 49, UNITED STATES CODE

           *       *       *       *       *       *       *


SUBTITLE VI--MOTOR VEHICLE AND DRIVER PROGRAMS

           *       *       *       *       *       *       *


                            PART A--GENERAL

                   CHAPTER 301--MOTOR VEHICLE SAFETY

                          SUBCHAPTER I--GENERAL

Sec.
30101.  Purpose and policy.
     * * * * * * *
30105.  Restriction on lobbying activities.
     * * * * * * *

   SUBCHAPTER III--IMPORTING NONCOMPLYING MOTOR VEHICLES AND EQUIPMENT

     * * * * * * *
30148.  International motor vehicle safety outreach.

           *       *       *       *       *       *       *


SUBCHAPTER I--GENERAL

           *       *       *       *       *       *       *


[Sec. 30104. Authorization of appropriations

  [The following amounts may be appropriated to the Secretary 
of Transportation for the National Highway Traffic Safety 
Administration to carry out this chapter:
          [(1) $71,333,436 for the fiscal year ending September 
        30, 1993.
          [(2) $74,044,106 for the fiscal year ending September 
        30, 1994.
          [(3) $76,857,782 for the fiscal year ending September 
        30, 1995.]

Sec. 30104. Authorization of appropriations

  There is authorized to be appropriated to the Secretary 
$81,200,000 for the National Highway Traffic Safety 
Administration to carry out this part in each fiscal year 
beginning in fiscal year 1999 and ending in fiscal year 2001.

Sec. 30105. Restriction on lobbying activities

  No funds appropriated to the Secretary pursuant to section 
30104 or 32102 may be available for any activity specifically 
designed to urge a State or local legislator to favor or oppose 
the adoption of any specific legislative proposal pending 
before any State or local legislature.

                SUBCHAPTER II--STANDARDS AND COMPLIANCE

Sec. 30111. Standards

  (a) * * *

           *       *       *       *       *       *       *

  (f) Special Considerations Relating to Occupant Protection.--
When prescribing or revising a motor vehicle safety standard 
under this section or section 30127 relating to the protection 
of motor vehicle occupants under this chapter, the Secretary 
shall, to the extent relevant and practicable, design such 
standard to protect improperly restrained and positioned 
occupants only to the extent that such a design would not 
substantially increase the risk of injury to properly 
restrained and positioned occupants.

           *       *       *       *       *       *       *


Sec. 30114. Special exemptions

  The Secretary of Transportation may exempt a motor vehicle or 
item of motor vehicle equipment from section 30112(a) of this 
title on terms the Secretary decides are necessary for 
research, investigations, demonstrations, training, [or 
competitive racing events] competitive racing events, show, or 
display.

           *       *       *       *       *       *       *


Sec. 30118. Notification of defects and noncompliance

  (a) * * *

           *       *       *       *       *       *       *

  (d) Exemptions.--On application of a manufacturer, the 
Secretary shall exempt the manufacturer from this section if 
the Secretary decides a defect or noncompliance is 
inconsequential to motor vehicle safety. [The Secretary may 
take action under this subsection only after notice in the 
Federal Register and an opportunity for any interested person 
to present information, views, and arguments.]

           *       *       *       *       *       *       *


Sec. 30120. Remedies for defects and noncompliance

  (a) * * *

           *       *       *       *       *       *       *

  (h) Exemptions.--On application of a manufacturer, the 
Secretary shall exempt the manufacturer from this section if 
the Secretary decides a defect or noncompliance is 
inconsequential to motor vehicle safety. [The Secretary may 
take action under this subsection only after notice in the 
Federal Register and an opportunity for any interested person 
to present information, views, and arguments.]
  (i) Limitation on Sale or Lease.--(1) If notification is 
required by an order under section 30118(b) of this title or is 
required under section 30118(c) of this title and the 
manufacturer has provided to a dealer (including retailers of 
motor vehicle equipment) notification about a new motor vehicle 
or new item of replacement equipment in the dealer's possession 
at the time of notification that contains a defect related to 
motor vehicle safety or does not comply with an applicable 
motor vehicle safety standard prescribed under this chapter, 
the dealer may sell or lease the motor vehicle or item of 
replacement equipment only if--
          (A) * * *

           *       *       *       *       *       *       *


Sec. 30123. Tires

  [(a) Labeling Requirement.--The Secretary of Transportation 
shall require that a pneumatic tire subject to a motor vehicle 
safety standard prescribed under this chapter be labeled 
permanently and conspicuously with safety information the 
Secretary decides is necessary to carry out section 30101 of 
this title.
  [(b) Contents of Label.--Labeling required on a tire under 
subsection (a) of this section shall include--
          [(1)(A) identification of the manufacturer;
          [(B) for a retreaded tire, identification of the 
        retreader; or
          [(C) for a tire containing a brand name (other than 
        the name of the manufacturer), a code mark allowing a 
        seller to identify the manufacturer to the purchaser;
          [(2) the composition of material used in the ply of 
        the tire;
          [(3) the number of plies in the tire;
          [(4) the maximum allowable load for the tire; and
          [(5)(A) a statement that the tire complies with 
        minimum safe performance standards prescribed under 
        this chapter; or
          [(B) a mark or symbol the Secretary prescribes for 
        use by a manufacturer or retreader complying with those 
        standards.
  [(c) Additional Information.--The Secretary may require that 
additional safety information be disclosed to a purchaser when 
a tire is sold.]
  [(d)] (a) Regrooved Tire Limitations.--(1) In this 
subsection, ``regrooved tire'' means a tire with a new tread 
produced by cutting into the tread of a worn tire.

           *       *       *       *       *       *       *

  [(e)] (b) Uniform Quality Grading System, Nomenclature, and 
Marketing Practices.--The Secretary shall prescribe through 
standards a uniform quality grading system for motor vehicle 
tires to help consumers make an informed choice when purchasing 
tires. The Secretary also shall cooperate with industry and the 
Federal Trade Commission to the greatest extent practicable to 
eliminate deceptive and confusing tire nomenclature and 
marketing practices. A tire standard or regulation prescribed 
under this chapter supersedes an order or administrative 
interpretation of the Commission.
  [(f)] (c) Maximum Load Standards.--The Secretary shall 
require a motor vehicle to be equipped with tires that meet 
maximum load standards when the vehicle is loaded with a 
reasonable amount of luggage and the total number of passengers 
the vehicle is designed to carry. The vehicle shall be equipped 
with those tires by the manufacturer or by the first purchaser 
when the vehicle is first bought in good faith other than for 
resale.

           *       *       *       *       *       *       *


Sec. 30127. Automatic occupant crash protection and seat belt use

  (a) * * *

           *       *       *       *       *       *       *

  (g) Report.--(1) On October 1, 1992, and [every 6 months] 
annually after that date through October 1, 2000, the Secretary 
of Transportation shall submit reports on the effectiveness of 
occupant restraint systems expressed as a percentage reduction 
in fatalities or injuries of restrained occupants compared to 
unrestrained occupants for--
          (A) * * *

           *       *       *       *       *       *       *


SUBCHAPTER III--IMPORTING NONCOMPLYING MOTOR VEHICLES AND EQUIPMENT

           *       *       *       *       *       *       *


Sec. 30148. International motor vehicle safety outreach

  (a) Activities.--The Secretary is authorized, in consultation 
with the Secretaries of State and Commerce where appropriate, 
to engage in activities that improve worldwide motor vehicle 
safety through appropriate activities. Such activities may 
include--
          (1) promoting the adoption of international and 
        national vehicle standards that are harmonized with, 
        functionally equivalent to, or compatible with United 
        States vehicle standards;
          (2) participating in efforts to foster an 
        international acceptance of globally harmonized or 
        functionally equivalent or compatible motor vehicle 
        regulations and standards to otherwise improve 
        international highway and motor vehicle safety;
          (3) promoting international cooperative programs for 
        conducting research, development, demonstration 
        projects, training, and other forms of technology 
        transfer and exchange, including safety conferences, 
        seminars, and expositions to enhance international 
        motor vehicle safety; and
          (4) providing technical assistance to other countries 
        relating to their adoption of United States vehicle 
        regulations or standards functionally equivalent to 
        United States vehicle standards.
  (b) Cooperation.--The Secretary may carry out the authority 
granted by this section, in cooperation with appropriate United 
States Government agencies, any State or local agency, and any 
authority, association, institution, corporation (profit or 
nonprofit), foreign government, multinational institution, or 
any other organization or person.
  (c) Consideration.--When engaging in activities to improve 
worldwide motor vehicle safety, the Secretary shall ensure that 
these activities maintain or improve the level of safety of 
motor vehicles and motor vehicle equipment sold in the United 
States.
  (d) Public Meetings and Information.--To ensure public 
awareness of, and opportunity to comment on, decision-making 
meetings concerning the adoption of a globally harmonized motor 
vehicle regulation or standard, described in subsection (a)(2), 
by an international body or representatives of any foreign 
nation the Secretary shall--
          (1) not less than quarterly, provide notice of, and 
        hold a public meeting to receive comments on the 
        subject matter of, any decision-making meetings 
        scheduled to be held with an international body or 
        representatives of any foreign nation before the next 
        public meeting required to be held under this 
        paragraph; and
          (2) make available to the public any relevant 
        information and records, including any proposed text, 
        concerning the matter of any decision-making meetings 
        scheduled with an international body or representatives 
        of any foreign nation as those materials become 
        available.

           *       *       *       *       *       *       *


            PART C--INFORMATION, STANDARDS, AND REQUIREMENTS

CHAPTER 321--GENERAL

           *       *       *       *       *       *       *


[Sec. 32102. Authorization of appropriations

  [The following amounts may be appropriated to the Secretary 
of Transportation for the National Highway Traffic Safety 
Administration to carry out this part:
          [(1) $6,731,430 for the fiscal year ending September 
        30, 1993.
          [(2) $6,987,224 for the fiscal year ending September 
        30, 1994.
          [(3) $7,252,739 for the fiscal year ending September 
        30, 1995.]

Sec. 32102. Authorization of appropriations

  There is authorized to be appropriated to the Secretary 
$6,200,000 for the National Highway Traffic Safety 
Administration to carry out this part in each fiscal year 
beginning in fiscal year 1999 and ending in fiscal year 2001.

CHAPTER 323--CONSUMER INFORMATION

           *       *       *       *       *       *       *


Sec. 32304. Passenger motor vehicle country of origin labeling

  (a) Definitions.--In this section--
          (1) * * *

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          (3) ``country of origin'', when referring to the 
        origin of an engine or transmission, means the country 
        from which the largest share of the dollar value added 
        to an engine or transmission has originated--
                  (A) * * *
                  (B) the estimate of the percentage of the 
                dollar value shall be based on the purchase 
                price of direct materials, as received at 
                individual engine or transmission plants, of 
                engines of the same displacement and 
                transmissions of the same transmission type, 
                plus the assembly and labor costs incurred for 
                the final assembly of such engines and 
                transmissions.

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          (5) ``final assembly place'' means the plant, 
        factory, or other place at which a new passenger motor 
        vehicle is produced or assembled by a manufacturer, and 
        from which the vehicle is delivered to a dealer or 
        importer with all component parts necessary for the 
        mechanical operation of the vehicle included with the 
        vehicle, whether or not the component parts are 
        permanently installed in or on the vehicle. Such term 
        does not include facilities for engine and transmission 
        fabrication and assembly and the facilities for 
        fabrication of motor vehicle equipment component parts 
        which are produced at the same final assembly place 
        using forming processes such as stamping, machining, or 
        molding processes.

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          (9) ``of United States/Canadian origin'', when 
        referring to passenger motor vehicle equipment, means--
                  [(A) for an outside supplier, passenger motor 
                vehicle equipment whose purchase price contains 
                at least 70 percent value added in the United 
                States and Canada; and]
                  (A) for an outside supplier--
                          (i) the full purchase price of 
                        passenger motor vehicle equipment whose 
                        purchase price contains at least 70 
                        percent value added in the United 
                        States and Canada; or
                          (ii) that portion of the purchase 
                        price of passenger motor vehicle 
                        equipment containing less than 70 
                        percent value added in the United 
                        States and Canada that is attributable 
                        to the percent value added in the 
                        United States and Canada when such 
                        percent is expressed to the nearest 5 
                        percent; and

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  (c) Vehicle Content Percentage by Assembly Plant.--A 
manufacturer may display separately on the label required by 
subsection (b) the domestic content of a vehicle based on the 
country inwhich the assembly plant is located. Such display 
shall occur after the matter required to be in the label by subsection 
(b)(1)(A).
  (d) Value Added Determination.--If a manufacturer or allied 
supplier requests information in a timely manner from one or 
more of its outside suppliers concerning the U.S./Canadian 
content of particular equipment, but does not receive that 
information despite a good faith effort to obtain it, the 
manufacturer or allied supplier may make its own good faith 
value added determinations, subject to the following:
          (1) The manufacturer or allied supplier shall make 
        the same value added determinations as would be made by 
        the outside supplier, that is, whether 70 percent or 
        more of the value of equipment is added in the United 
        States and/or Canada.
          (2) The manufacturer or allied supplier shall 
        consider the amount of value added and the location in 
        which the value was added for all of the stages that 
        the outside supplier would be required to consider.
          (3) The manufacturer or allied supplier may determine 
        that the value added in the United States and/or Canada 
        is 70 percent or more only if it has a good faith basis 
        to make that determination.
          (4) A manufacturer and its allied suppliers may, on a 
        combined basis, make value added determinations for no 
        more than 10 percent, by value, of a carline's total 
        parts content from outside suppliers.
          (5) Value added determinations made by a manufacturer 
        or allied supplier under this paragraph shall have the 
        same effect as if they were made by the outside 
        supplier.
          (6) This provision does not affect the obligation of 
        outside suppliers to provide the requested information.
  (e) Small Parts.--The country of origin of nuts, bolts, 
clips, screws, pins, braces, gasoline, oil, blackout, phosphate 
rinse, windshield washer fluid, fasteners, tire assembly fluid, 
rivets, adhesives, grommets, and any system, subassembly, or 
component installed in a vehicle shall be considered to be the 
country in which such parts were included in the final assembly 
of such vehicle.
  [(c)] (f) Dealer Requirement.--Each dealer engaged in the 
sale or distribution of a new passenger motor vehicle 
manufactured after September 30, 1994, shall cause to be 
maintained on that vehicle the label required to be attached to 
that vehicle under subsection (b) of this section.
  [(d)] (g) Form and Content of Label.--The Secretary of 
Transportation shall prescribe by regulation the form and 
content of the label required under subsection (b) of this 
section and the manner and location in which the label is 
attached. The Secretary shall permit a manufacturer to comply 
with this section by allowing the manufacturer to disclose the 
information required under subsection (b)(1) on the label 
required by section 3 of the Automobile Information Disclosure 
Act (15 U.S.C. 1232), on the label required by section 32908 of 
this title, or on a separate label that is readily visible. A 
manufacturer may add to the label required under subsection (b) 
a line stating the country in which vehicle assembly was 
completed.
  [(e)] (h) Regulations.--In consultation with the Secretaries 
of Commerce and the Treasury, the Secretary of Transportation 
shall prescribe regulations necessary to carry out this 
section, including regulations establishing a procedure to 
verify the label information required under subsection (b)(1) 
of this section. Those regulations shall provide the ultimate 
purchaser of a new passenger motor vehicle with the best and 
most understandable information possible about the foreign 
content and United States/Canadian origin of the equipment of 
the vehicles without imposing costly and unnecessary burdens on 
the manufacturers. The Secretary of Transportation shall 
prescribe the regulations promptly to provide adequate lead 
time for each manufacturer to comply with this section. The 
regulations shall include provisions applicable to outside 
suppliers and allied suppliers to require those suppliers to 
certify whether passenger motor vehicle equipment provided by 
those suppliers is of United States origin, of United States/
Canadian origin, or of foreign content and to provide other 
information the Secretary of Transportation decides is 
necessary to allow each manufacturer to comply reasonably with 
this section and to rely on that certification and information.
  [(f)] (i) Preemption.--(1) When a label content requirement 
prescribed under this section is in effect, a State or a 
political subdivision of a State may not adopt or enforce a law 
or regulation related to the content of vehicles covered by a 
requirement under this section.

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CHAPTER 327--ODOMETERS

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Sec. 32705. Disclosure requirements on transfer of motor vehicles

  (a)(1) * * *

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  (4)(A) This subsection shall apply to all transfers of motor 
vehicles (unless otherwise exempted by the Secretary by 
regulation), except in the case of transfers of new motor 
vehicles from a vehicle manufacturer jointly to a dealer and a 
person engaged in the business of renting or leasing vehicles 
for a period of 30 days or less.
  (B) For purposes of subparagraph (A), the term ``new motor 
vehicle'' means any motor vehicle driven with no more than the 
limited use necessary in moving, transporting, or road testing 
such vehicle prior to delivery from the vehicle manufacturer to 
a dealer, but in no event shall the odometer reading of such 
vehicle exceed 300 miles.
  (5) The Secretary may exempt such classes or categories of 
vehicles as the Secretary deems appropriate from these 
requirements. Until such time as the Secretary amends or 
modifies the regulations set forth in 49 CFR 580.6, such 
regulations shall have full force and effect.

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