[House Report 106-954]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-954
======================================================================
TRANSPORTATION RECALL ENHANCEMENT, ACCOUNTABILITY, AND DOCUMENTATION
(TREAD) ACT
_______
October 10, 2000.--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. 5164]
The Committee on Commerce, to whom was referred the bill
(H.R. 5164) to amend title 49, United States Code, to require
reports concerning defects in motor vehicles or tires or other
motor vehicle equipment in foreign countries, and for other
purposes, 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.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 7
Committee Consideration.......................................... 8
Committee Votes.................................................. 8
Committee Oversight Findings..................................... 11
Committee on Government Reform Oversight Findings................ 12
New Budget Authority, Entitlement Authority, and Tax Expenditures 12
Committee Cost Estimate.......................................... 12
Congressional Budget Office Estimate............................. 12
Federal Mandates Statement....................................... 12
Advisory Committee Statement..................................... 12
Constitutional Authority Statement............................... 12
Applicability to Legislative Branch.............................. 12
Section-by-Section Analysis of the Legislation................... 13
Changes in Existing Law Made by the Bill, as Reported............ 17
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Transportation Recall Enhancement,
Accountability, and Documentation (TREAD) Act''.
SEC. 2. REPORTING REQUIREMENTS.
(a) Defects in Foreign Countries.--Section 30166 of title 49, United
States Code, is amended by adding at the end the following:
``(l) Reporting of Defects in Motor Vehicles and Products in Foreign
Countries.--
``(1) Reporting of defects, manufacturer determination.--Not
later than 5 working days after determining to conduct a safety
recall or other safety campaign in a foreign country on a motor
vehicle or motor vehicle equipment that is identical or
substantially similar to a motor vehicle or motor vehicle
equipment offered for sale in the United States, the
manufacturer shall report the determination to the Secretary.
``(2) Reporting of defects, foreign government
determination.--Not later than 5 working days after receiving
notification that the government of a foreign country has
determined that a safety recall or other safety campaign must
be conducted in the foreign country on a motor vehicle or motor
vehicle equipment that is identical or substantially similar to
a motor vehicle or motor vehicle equipment offered for sale in
the United States, the manufacturer of the motor vehicle or
motor vehicle equipment shall report the determination to the
Secretary.
``(3) Reporting requirements.--The Secretary shall prescribe
the contents of the notification required by this
subsection.''.
(b) Early Warning Reporting Requirements.--Section 30166, of title
49, United States Code, is amended by adding at the end the following:
``(m) Early Warning Reporting Requirements.--
``(1) Rulemaking required.--Not later than 120 days after the
date of enactment of the Transportation Recall Enhancement,
Accountability, and Documentation (TREAD) Act, the Secretary
shall initiate a rulemaking proceeding to establish early
warning reporting requirements for manufacturers of motor
vehicles and motor vehicle equipment to enhance the Secretary's
ability to carry out the provisions of this chapter.
``(2) Deadline.--The Secretary shall issue a final rule under
paragraph (1) not later than June 30, 2002.
``(3) Reporting elements.--
``(A) Warranty and claims data.--As part of the final
rule promulgated under paragraph (1), the Secretary
shall require manufacturers of motor vehicles and motor
vehicle equipment to report, periodically or upon
request by the Secretary, information which is received
by the manufacturer derived from foreign and domestic
sources to the extent that such information may assist
in the identification of defects related to motor
vehicle safety in motor vehicles and motor vehicle
equipment in the United States and which concerns--
``(i) data on claims submitted to the
manufacturer for serious injuries (including
death) and aggregate statistical data on
property damage from alleged defects in a motor
vehicle or in motor vehicle equipment; and
``(ii) customer satisfaction campaigns,
consumer advisories, recalls, or other activity
involving the repair or replacement of motor
vehicles or items of motor vehicle equipment.
``(B) Other data.--As part of the final rule
promulgated under paragraph (1), the Secretary may, to
the extent that such information may assist in the
identification of defects related to motor vehicle
safety in motor vehicles and motor vehicle equipment in
the United States, require manufacturers of motor
vehicles or motor vehicle equipment to report,
periodically or upon request of the Secretary, such
information as the Secretary may request.
``(C) Reporting of possible defects.--The
manufacturer of a motor vehicle or motor vehicle
equipment shall report to the Secretary, in such manner
as the Secretary establishes by regulation, all
incidents of which the manufacturer receives actual
notice which involve fatalities or serious injuries
which are alleged or proven to have been caused by a
possible defect in such manufacturer's motor vehicle or
motor vehicle equipment in the United States or a
foreign country when the possible defect is in a motor
vehicle or motor vehicle equipment that is identical or
substantially similar to a motor vehicle or motor
vehicle equipment offered for sale in the United
States.
``(4) Handling and utilization of reporting elements.--
``(A) Secretary's specifications.--In requiring the
reporting of any information requested by the Secretary
under this subsection, the Secretary shall specify in
the final rule promulgated under paragraph (1)--
``(i) how such information will be reviewed
and utilized to assist in the identification of
defects related to motor vehicle safety;
``(ii) the systems and processes the
Secretary will employ or establish to permit
such information to be reviewed and utilized;
and
``(iii) the manner and form of reporting such
information, including in electronic form.
``(B) Information in possession of manufacturer.--The
regulations promulgated by the Secretary under
paragraph (1) may not require a manufacturer of a motor
vehicle or motor vehicle equipment to maintain and
submit records respecting information not in the
possession of the manufacturer.
``(C) Disclosure.--None of the information collected
pursuant to the final rule promulgated under paragraph
(1) shall be disclosed pursuant to section 30167(b)
unless the Secretary determines the disclosure of such
information will assist in carrying out sections
30117(b) and 30118 through 30121.
``(D) Burdensome requirements.--In promulgating the
final rule under paragraph (1), the Secretary shall not
impose requirements unduly burdensome to a manufacturer
of a motor vehicle or motor vehicle equipment, taking
into account the manufacturer's cost of complying with
such requirements and the Secretary's ability to use
the information in a meaningful manner to assist in the
identification of defects related to motor vehicle
safety.
``(5) Periodic review.--As part of the final rule promulgated
pursuant to paragraph (1), the Secretary shall specify
procedures for the periodic review and update of such rule.''.
(c) Sale or Lease of Defective or Noncompliant Tire.--Section 30166
of title 49, United States Code, as amended by subsection (b), is
amended by adding at the end the following:
``(n) Sale or Lease of Defective or Noncompliant Tire.--
``(1) In general.--The Secretary shall, within 90 days of the
date of this subsection, issue a final rule requiring any
person who knowingly and willfully sells or leases for use on a
motor vehicle a defective tire or a tire which is not compliant
with an applicable tire safety standard with actual knowledge
that the manufacturer of such tire has notified its dealers of
such defect or noncompliance as required under section 30118(c)
or as required by an order under section 30118(b) to report
such sale or lease to the Secretary.
``(2) Defect or Noncompliance Remedied or Order Not in
Effect.--Regulations under paragraph (1) shall not require the
reporting described in paragraph (1) where before delivery
under a sale or lease of a tire--
``(A) the defect or noncompliance of the tire is
remedied as required by section 30120; or
``(B) notification of the defect or noncompliance is
required under section 30118(b) but enforcement of the
order is restrained or the order is set aside in a
civil action to which section 30121(d) applies.''.
(d) Insurance Study.--The Secretary of Transportation shall conduct a
study to determine the feasibility and utility of obtaining aggregate
information on a regular and periodic basis regarding claims made for
private passenger automobile accidents from persons in the business of
providing private passenger automobile insurance or of adjusting
insurance claims for such automobiles. Not later than 120 days after
the date of enactment of this Act, the Secretary shall transmit the
results of such study to the Committee on Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate.
SEC. 3. REMEDIES WITHOUT CHARGE.
Section 30120(g)(1) of title 49, United States Code, is amended by--
(1) striking ``8 calendar years'' and inserting ``10 calendar
years''; and
(2) striking ``3 calendar years'' and inserting ``5 calendar
years''.
SEC. 4. PENALTIES.
(a) Civil Penalties.--Section 30165(a) of title 49, United States
Code, is amended to read as follow:
``(a) Civil Penalties.--
``(1) In general.--A person that violates any of sections
30112, 30115, 30117 through 30122, 30123(d), 30125(c), 30127,
or 30141 through 30147, or a regulation prescribed thereunder,
is liable to the United States Government for a civil penalty
of not more than $5,000 for each violation. A separate
violation occurs for each motor vehicle or item of motor
vehicle equipment and for each failure or refusal to allow or
perform an act required by any of those sections. The maximum
penalty under this subsection for a related series of
violations is $15,000,000.
``(2) Section 30166.--A person who violates section 30166 or
a regulation prescribed under that section is liable to the
United States Government for a civil penalty for failing or
refusing to allow or perform an act required under that section
or regulation. The maximum penalty under this paragraph is
$5,000 per violation per day. The maximum penalty under this
paragraph for a related series of daily violations is
$15,000,000.''.
(b) Criminal Penalties.--
(1) In General.--Subchapter IV of chapter 301 of title 49,
United States Code, is amended by adding at the end the
following:
``Sec. 30170. Criminal Penalties.
``(a) Criminal Liability for Falsifying or Withholding Information.--
``(1) General rule.--A person who violates section 1001 of
title 18 with respect to the reporting requirements of section
30166, with the specific intention of misleading the Secretary
with respect to motor vehicle or motor vehicle equipment safety
related defects that have caused death or grievous bodily harm
to an individual, shall be subject to criminal penalties of a
fine under title 18, United States Code, or imprisoned for not
more than 15 years, or both.
``(2) Safe harbor to encourage reporting and for whistle
blowers.--
``(A) Correction.--A person described in paragraph
(1) shall not be subject to criminal penalties under
this subsection if such person corrects any improper
reports or failure to report within a reasonable time.
``(B) Reasonable time and sufficiency of
correction.--The Secretary shall establish by
regulation what constitutes a reasonable time for the
purposes of subparagraph (A) and what manner of
correction is sufficient for purposes of subparagraph
(A). The Secretary shall issue a final rule under this
subparagraph within 90 days of the date of enactment of
this section.
``(C) Effective date.--Subsection (a) shall not take
effect before the final rule under subparagraph (B)
takes effect.
``(b) Coordination With Department of Justice.--The Attorney General
may bring an action, or initiate grand jury proceedings, for a
violation of subsection (a) only at the request of the Secretary of
Transportation.''.
(2) Clerical amendment.--The subchapter analysis for
subchapter IV of chapter 301 of title 49, United States Code,
is amended by adding at the end the following:
``30170. Criminal penalties.''.
SEC. 5. ACCELERATION OF MANUFACTURER REMEDY PROGRAM.
Section 30120(c) of title 49, United States Code, is amended by
inserting at the end thereof the following:
``(3) If the Secretary determines that a manufacturer's remedy
program is not likely to be capable of completion within a reasonable
time, the Secretary may require the manufacturer to accelerate the
remedy program if the Secretary finds--
``(A) that there is a risk of serious injury or death if the
remedy program is not accelerated; and
``(B) that acceleration of the remedy program can be
reasonably achieved by expanding the sources of replacement
parts, expanding the number of authorized repair facilities, or
both.
The Secretary may prescribe regulations to carry out this paragraph.''.
SEC. 6. SALES OF REPLACED TIRES.
Section 30120(d) of title 49, United States Code, is amended by
adding at the end the following: ``In the case of a remedy program
involving the replacement of tires the manufacturer shall include a
plan addressing how to prevent, to the extent reasonably within the
control of the manufacturer, replaced tires from being resold for
installation on a motor vehicle. The manufacturer shall include
information about the implementation of such plan with each quarterly
report to the Secretary about the progress about the notification and
remedy campaign.''.
SEC. 7. SALES OF REPLACED EQUIPMENT.
Section 30112 of title 49, United States Code, is amended by adding
at the end the following:
``(c) Prohibition on Sales of Replaced Equipment.--No person may sell
any item of motor vehicle equipment (including a tire) for installation
on a motor vehicle that is the subject of a decision under section
30118(b) or a notice required under section 30118(c) or was removed
from a motor vehicle as part of an action taken under section 30120(a)
or 30120(b) in a condition that it may be used for its original purpose
unless the item of motor vehicle equipment is no longer defective or is
otherwise free of the condition that was the subject of the action
taken under section 30120(a) or 30120(b).''.
SEC. 8. CERTIFICATION LABEL.
Section 30115 of title 49, United States Code, is amended by
inserting ``(a) In General.--'' before ``A manufacturer'' and by adding
at the end the following:
``(b) Certification Label.--In the case of the certification label
affixed by an intermediate or final stage manufacturer of a motor
vehicle built in more than 1 stage, each intermediate or final stage
manufacturer shall certify with respect to each applicable Federal
motor vehicle safety standard--
``(1) that it has complied with the specifications set forth
in the compliance documentation provided by the incomplete
motor vehicle manufacturer in accordance with regulations
prescribed by the Secretary; or
``(2) that it has elected to assume responsibility for
compliance with that standard.
If the intermediate or final stage manufacturer elects to assume
responsibility for compliance with the standard covered by the
documentation provided by an incomplete motor vehicle manufacturer, the
intermediate or final stage manufacturer shall notify the incomplete
motor vehicle manufacturer in writing within a reasonable time of
affixing the certification label. A violation of this subsection shall
not be subject to a civil penalty under section 30165.''.
SEC. 9. ENDURANCE AND RESISTANCE STANDARDS FOR TIRES.
The Secretary of Transportation shall conduct a rulemaking to revise
and update the tire standards published at 49 C.F.R. 571.109 and 49
C.F.R. 571.119. The Secretary shall complete the rulemaking under this
section not later than June 1, 2002.
SEC. 10. IMPROVED TIRE INFORMATION.
(a) Tire Labeling.--Within 30 days after the date of enactment of
this Act, the Secretary of Transportation shall initiate a rulemaking
proceeding to improve the labeling of tires required by section 30123
of title 49, United States Code to assist consumers in identifying
tires that may be the subject of a recall by the manufacturer. The
Secretary shall complete the rulemaking not later than June 1, 2002.
(b) Inflation Levels and Load Limits.--In the rulemaking initiated
under subsection (a), the Secretary may take whatever additional action
is appropriate to ensure that the public is aware of the importance of
observing motor vehicle tire load limits and maintaining proper tire
inflation levels to the safe operation of a motor vehicle. Such
additional action may include a requirement that the manufacturer of
motor vehicles provide the purchasers of the motor vehicles information
on tire inflation levels and load limits if the Secretary determines
that requiring such manufacturers to provide such information is the
most appropriate way such information can be provided.
SEC. 11. ROLLOVER TESTS.
Section 30117 of title 49, United States Code, is amended by adding
at the end the following:
``(c) Rollover Tests.--
``(1) Development.--Not later than 2 years from the date of
enactment of this subsection, the Secretary of Transportation,
acting through the National Highway Traffic Safety
Administration, shall--
``(A) develop a dynamic test on rollovers by motor
vehicles for the purposes of a consumer information
program; and
``(B) carry out a program of conducting such tests.
``(2) Test results.--As the Secretary develops a test under
paragraph (1)(A), the Secretary, acting through the National
Highway Traffic Safety Administration, shall conduct a
rulemaking to determine how best to disseminate test results to
the public.
``(3) Motor vehicles covered.--This subsection applies to
passenger cars, multipurpose passenger vehicles, and trucks
with a gross vehicle weight rating of 10,000 pounds or less. A
motor vehicle designed to provide temporary residential
accommodations is not covered.''.
SEC. 12. TIRE PRESSURE WARNING.
Not later than one year after the date of enactment of this Act, the
Secretary of Transportation, acting through the National Highway
Traffic Safety Administration, shall complete a rulemaking for a
regulation to require a warning system in a motor vehicle to indicate
to the operator when a tire is significantly under inflated. Such
requirement shall become effective not later than 2 years after the
date of the completion of such rulemaking.
SEC. 13. IMPROVING CRITERIA USED IN A RECALL.
(a) Review of Standards and Criteria Used in Opening a Defect
Investigation.--The Secretary shall, not later than 30 days after the
date of enactment of this Act, undertake a comprehensive review of all
standards, criteria, procedures, and methods, including data management
and analytical capabilities, used by the National Highway Traffic
Safety Administration in determining whether to open a defect
investigation pursuant to subchapter II or IV of chapter 301 of title
49, United States Code, and shall undertake such steps as may be
necessary to update and improve such standards, criteria, procedures,
or methods, including data management and analytical capabilities.
(b) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall transmit to the Committee on
Commerce of the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report describing the
Secretary's findings and actions under subsection (a).
SEC. 14. FOLLOW-UP REPORT.
One year after the date of enactment of this Act, the Administrator
of the National Highway Traffic Safety Administration shall report to
the Congress on the implementation of the amendments made by this Act
and any recommendations for additional amendments for consumer safety.
SEC. 15. AUTHORIZATION OF APPROPRIATIONS.
In addition to any sums authorized to be appropriated by sections
30104 or 32102 of title 49, United States Code, there is authorized to
be appropriated to the Secretary of Transportation for the National
Highway Traffic Safety Administration for fiscal year 2001 $9,100,000
to carry out this Act and the amendments made by this Act. Such funds
shall not be available for the general administrative expenses of the
Secretary or the Administration.
Purpose and Summary
H.R. 5164, the Transportation Recall Enhancement,
Accountability, and Documentation (TREAD) Act, is a bill to
require reports concerning defects in motor vehicles or tires
or other motor vehicle equipment, both domestically and in
foreign countries.
The bill requires that manufacturers report to the
Secretary of Transportation regarding defects in foreign
country, and certain other data. The legislation also lengthens
the period in which a motor vehicle equipment or tire
manufacturer must provide a defect remedy at no charge,
strengthens the statute's civil penalty structure, imposes a
criminal penalty for falsifying or withholding information, and
requires the Secretary to update the motor vehicle safety
standards applicable to tires and improve tire labeling
standards. Further, the legislation addresses the availability
of parts during a recall, reimbursement for parts replaced
immediately prior to a recall, and the resale of replaced
equipment. Finally, the legislation authorizes appropriations
for the activities authorized by the bill and addresses a
number of public information and standard setting rulemakings.
Background and Need for Legislation
In 1990, Firestone began production of a specially-designed
15-inch ATX tire to be used as original equipment on the Ford
Explorer, introduced by Ford in model year 1991. This tire was
also sold directly to consumers as replacement equipment, and
was used as original equipment on several other Ford models. A
redesigned version of the tire was introduced both in 1995 and
1996, when the tire was renamed as the ATX II and the
Wilderness.
Beginning in 1996, Firestone began receiving large numbers
of claims relating to the 15-inch version of these tires, most
involving claims of alleged tread separation--where the tread
and one steel belt separate from the other steel belt--a
condition considered to be major tire failure. Beginning in
mid-1997, Ford dealers in the Middle East began to report
similar problems with the 16-inch tires. Testing conducted by
Ford and Firestone led to limited recall actions in the Middle
East, Venezuela, Malaysia, and Thailand in 1999 and the spring
of 2000.
In March 2000, the National Highway Traffic Safety
Administration (NHTSA) opened an initial inquiry into this
matter, based upon 25 complaints received in 1999 and 2000. A
formal investigation was opened in May 2000, and is ongoing. In
August, Firestone agreed to a voluntary recall of all 15-inch
ATX and ATX II tires, and those Wilderness tires produced at a
Firestone plant in Decatur, Illinois. NHTSA also recently
encouraged Firestone to expand its voluntary recall to include
Wilderness tires produced at other plants, although Firestone
has only agreed to examine and replace those tires on a case-
by-case basis. For more information about the subcommittees'
investigation and the chronology of events, please see the
Committee Counsel's memorandum dated September 5, 2000 in
preparation for the September 6, 2000 hearing on this matter.
On September 6 and 21, 2000, the Subcommittee on
Telecommunications, Trade, and Consumer Protection held a joint
hearing with the Subcommittee on Oversight and Investigations
into the Firestone recall actions. From these hearings, it was
apparent that NHTSA's reaction to these matters was lacking in
several respects.
First, it is clear that the data available to NHTSA
regarding the problems with the Firestone tires was
insufficient. While testimony showed that the agency had
received some complaints about the tires, both from consumers
and from an automobile insurance company, they did not receive
data about Ford's foreign recall actions or the internal
company data on claims related to this data. Second, it is
clear that NHTSA did not effectively use the data it did have
in its possession to spot the trends related to the failure of
these tires. NHTSA faced repeated questioning regarding its
failure to act on information provided by a major automobile
insurance carrier and admitted that it needs to review its own
policies for evaluating its own data.
The Committee believes that the provisions of this
legislation are an initial step toward correcting these
problems. The bill maintains the existing relationship between
NHTSA and the regulated community, but the Committee believes
that this measure will create important incentives for
manufacturers and others with important information about
possible defects to come forward early.
Hearings
While the Committee on Commerce has not held hearings on
the legislation, the Subcommittee on Telecommunications, Trade,
and Consumer Protection and the Subcommittee on Oversight and
Investigations heard the testimony of the Honorable Rodney T.
Slater, Secretary of Transportation, regarding the
Administration's legislative request at their joint hearing on
the Ford/Firestone matter.
Committee Consideration
On September 21 and 26, 2000, the Subcommittee on
Telecommunications, Trade, and Consumer Protection met in open
markup session and approved H.R. 5164 for Full Committee
consideration, as amended by a record vote of 23 yeas and no
nays. On October 5, 2000, the Full Committee met in open markup
session and ordered H.R. 5164 favorably reported to the House,
with an amendment, by a record vote of 42 yeas and no nays.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. A
motion by Mr. Bliley to report the bill, with an amendment, was
agreed to by a record vote of 42 yeas and no nays. The names of
Members voting for and against follow.
The following amendments were agreed to by a voice vote:
An amendment in the nature of a substitute by Mr.
Tauzin, No. 1, making technical changes to the bill;
An amendment to the amendment in the nature of a
substitute by Mr. Markey, No. 1a, requiring that the
Secretary develop and carry out a program for the
dynamic testing motor vehicles for rollovers for
purposes of a consumer information program;
An amendment to the amendment in the nature of a
substitute by Mr. Bryant, No. 1b, regulating the sale
or lease of defective or noncompliant tires;
An amendment to the amendment in the nature of a
substitute by Mr. Green, No. 1c, addressing certain
motor vehicle safety standard certifications by
intermediate or final stage manufacturers;
An amendment to the amendment in the nature of a
substitute by Mr. Markey, No. 1e, addressing the
reporting of possible defects;
An amendment to the amendment in the nature of a
substitute by Mr. Upton, No. 1f, making technical
changes;
An amendment to the amendment in the nature of a
substitute by Mr. Bilbray, No. 1h, requiring that the
Secretary report to Congress on the effectiveness of
the bill;
An amendment to the amendment in the nature of a
substitute by Mr. Markey, No. 1i, requiring the
Secretary to complete a rulemaking for a regulation to
require a warning system in a motor vehicle to indicate
to the operator when the tire is significantly
underinflated; and
An amendment to the amendment in the nature of a
substitute by Mr. Bryant, No. 1j, requiring
manufacturers to include a plan as part of a remedy
program to prevent replaced tires from being resold.
The following amendments were withdrawn:
An amendment to the amendment in the nature of a
substitute by Mr. Shimkus, No. 1d, directing the
Secretary to improve child restraints; and
An amendment to the amendment in the nature of a
substitute by Mr. Pallone, No. 1k, addressing the
disposal of replaced tires.
The following amendment was not agreed to by a record vote
of 14 yeas and 30 nays:
An amendment to the amendment in the nature of a
substitute by Mr. Waxman, No. 1g, providing the
Secretary with administrative penalty authority.
The names of Members voting for and against follow:
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee held oversight hearings
and made findings that are reflected in this report.
Committee on Government Reform Oversight Findings
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, no oversight findings have been
submitted to the Committee by the Committee on Government
Reform.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
5164, the Transportation Recall Enhancement, Accountability,
and Documentation (TREAD) Act, 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
The cost estimate provided by the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974 was not timely received by the Committee. The Committee
will submit such cost estimate to the House when it is
received.
Federal Mandates Statement
The estimate of Federal mandates prepared by the Director
of the Congressional Budget Office pursuant to section 423 of
the Unfunded Mandates Reform Act was not timely received by the
Committee. The Committee will transmit such estimate to the
House when it is received by the Committee.
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 3(d)(1) of rule XIII 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
Section 1 provides the short title of the bill, the
``Transportation Recall Enhancement, Accountability, and
Documentation (TREAD) Act''.
Section 2. Reporting requirements
Subsection (a) requires a manufacturer to notify NHTSA
within five working days whenever the manufacturer determines
to conduct a safety recall or other safety campaign in a
foreign country with respect to motor vehicles and motor
vehicle equipment that are identical or substantially similar
to vehicles or equipment the manufacturer offers for sale in
the United States. If a foreign government has officially made
a determination that a safety recall or other safety campaign
must be conducted within the country on a motor vehicle or
motor vehicle equipment, then the manufacturer must notify
NHTSA of such determination within five working days, where the
manufacturer sells identical or similar vehicles or equipment
in the United States. The Secretary is given regulatory
authority to prescribe what information the manufacturer must
provide in notifying NHTSA of the safety recall or campaign.
Subsection (b) directs NHTSA to initiate a rulemaking
within 120 days to establish early warning reporting
requirements for manufacturers of motor vehicles and motor
vehicle equipment to assist NHTSA in reducing traffic accidents
and deaths and injuries resulting from traffic accidents. NHTSA
must finalize its rule by June 20, 2002. The rule must include
requirements for such manufacturers to report, periodically or
upon request by NHTSA, information that the manufacturer has in
its possession that would help identify defects in motor
vehicle and motor vehicle equipment safety in the United
States. Such reports are to be limited to claims data submitted
to the manufacturer for serious injuries, aggregate statistical
data possessed by the manufacturer on property damage from
alleged vehicle or equipment defects, and information on the
manufacturer's customer satisfaction campaigns, consumer
advisories, recalls, and other programs for the repair or
replacement of defective vehicles or equipment. NHTSA may
include additional reporting requirements for manufacturers
that it determines are necessary to identify defects related to
vehicle and equipment safety in the United States.
Manufacturers of motor vehicles and motor vehicle equipment
are required to report to NHTSA any incidents of which the
manufacturer receives actual notice involving serious injuries
which are alleged to have been caused by a defect in the
manufacturer's vehicle or equipment. If such injuries occur in
a foreign country, then the manufacturer is required to report
to NHTSA if the alleged defect is in a vehicle or equipment
that is identical or substantially similar to that offered by
the manufacturer for sale in the United States.
Before requiring any reporting of the information addressed
in this subsection, NHTSA must specify in its final rule how it
will review and utilize such reports to help identify defects
related to motor vehicle safety, what systems and processes it
will employ or establish to review and utilize such
information, and the manner and form in which manufacturers are
required to report, including by electronic reporting. NHTSA
may not require manufacturers of motor vehicles or motor
vehicle equipment to maintain or submit records not in the
manufacturer's possession. In addition, NHTSA may not impose
requirements that are unduly burdensome to a manufacturer,
taking into account the manufacturer's cost of complying with
such requirements and NHTSA's ability to use the information it
seeks in a meaningful manner to help identify motor vehicle
safety defects. NHTSA must specify procedures for periodically
reviewing and updating its information reporting requirements
under this subsection.
Subsection (c) directs NHTSA, within 90 days, to issue a
rule requiring any person who knowingly and willfully sells or
leases a defective or noncompliant tire for use on a motor
vehicle to report such sale or lease to the Secretary if the
person has actual knowledge that the manufacturer has notified
its dealers of such defect or noncompliance as required under
the recall provisions of subsections 30118(b) and (c) of title
49 of the United States Code. The Committee intends the phrase
``knowingly and willfully'', in all uses throughout this Act,
to represent the common and traditional meaning of those words
involving actual knowledge and willful action, as opposed to
including any facet of reckless disregard. A person will not be
required to report such sale if the defect or noncompliance is
remedied before the sale or lease, or if the recall order is
restrained or set aside in a civil action described in section
30121(d) of Title 49 of the United States Code.
Subsection (d) directs NHTSA to conduct a study within 120
days to determine whether it is feasible and useful for
Congress to authorize NHTSA to obtain aggregate information
from automobile insurers regarding motor vehicle accident
claims.
Section 3. Remedies without charge
This section lengthens the time period that consumers are
able to have a defective or noncompliant motor vehicle or motor
vehicle equipment remedied free of charge, measured from the
time of the first sale to the determination by the manufacturer
or NHTSA of such noncompliance or defect. For motor vehicles
and replacement equipment other than tires, the time period
from the first purchaser has been extended from eight to ten
years, and for tires the period has been extended from three
years to five years.
Section 4. Penalties
Subsection (a) increases the civil penalties that NHTSA may
assess for violations of certain provisions of title 49 of the
United States Code from $1,000 for each violation to $5,000 for
each violation, and from a maximum of $800,000 for a related
series of violations to $15,000,000. New civil penalties are
imposed for violating any of NHTSA's reporting requirements
under section 30166 of title 49 of the United States Code, with
maximum penalties of $5,000 per violation per day, with a
maximum of $15,000,000 for a related series of daily
violations.
Subsection (b) imposes additional criminal penalties for
egregious violations of the reporting requirements of section
30166. Under current law, section 1001 of title 18 of the
United States Code, it is a crime punishable by up to five
years in jail and by fines (up to $250,000 for individuals and
$500,000 for corporations) for any person to knowingly and
willfully falsify, conceal, cover up by any trick, scheme, or
device a material fact, make any materially false, fictitious,
or fraudulent statement or representation, or make or use any
false writing or document knowing the same to contain any
materially false, fictitious, or fraudulent statement or entry.
If a person in fact so acts, with the specific intention of
misleading NHTSA with respect to motor vehicle or motor vehicle
safety related defects that have caused death or grievous
bodily harm to an individual, then that person is subject to
criminal penalties as set forth under title 18, or imprisonment
for not more than 15 years (10 years more than the maximum
under section 1001 of title 18), or both. The Committee does
not believe that the knowingly and willful requirement of
section 1001 of title 18 could or should be construed to
include reckless disregard. A safe harbor is provided from the
additional criminal penalties where a person corrects any
improper reports or failure to report within a reasonable time.
NHTSA is directed to establish by regulation within 90 days
what constitutes a reasonable time and what form of correction
or reporting is sufficient to come within the coverage of the
safe harbor. The Committee expects that NHTSA will construe a
reasonable time to be at some point after the person is aware
that a defect or noncompliance related to the falsified or
concealed information exists and that the defect or
noncompliance has caused serious bodily injury. The additional
criminal penalties established by this subsection will not take
effect until after NHTSA issues a final rule (within 90 days)
establishing what constitutes a reasonable time and a
reasonable manner for correction of misreported information.
The additional criminal penalties will be charged against a
person by the Attorney General only after a request by NHTSA.
Section 5. Acceleration of manufacturer remedy program
This section allows NHTSA to require a manufacturer to
accelerate a remedy program if NHTSA determines that a
manufacturer's remedy program will not be completed within a
reasonable time, that a serious injury is likely to result if
the program is not accelerated, and that acceleration of the
program can be reasonably achieved by expanding the sources of
replacement parts, expanding the number of authorized repair
facilities, or both.
Section 6. Sale of replaced tires
The manufacturer of a tire that is the subject of a recall
for a defect or noncompliance will include in its remedy
program a plan for ensuring that any replaced tires are not
resold for installation on a motor vehicle (unless remedied),
to the extent that the manufacturer can reasonably control such
resales. The manufacturer must, in its regular reports to
NHTSA, include information in the reports about its
implementation of such plan.
Section 7. Sales of replaced equipment
This section makes it illegal to sell for installation on a
motor vehicle any motor vehicle equipment (including a tire)
that is the continued subject of a recall program. Such sale is
allowed only if the equipment is not sold in a condition that
it may be used for its original purpose, unless the equipment
is made no longer defective or noncompliant, such as by
modification, repair, or an injunction of the recall.
Section 8. Certification label
Current law requires a manufacturer or distributor of a
motor vehicle or motor vehicle equipment to certify with a
label fixed to a vehicle or attached to a container of motor
vehicle equipment that the vehicle or equipment complies with
applicable Federal vehicle safety standards. This section
requires an intermediate or final stage manufacturer of a motor
vehicle built in more than 1 stage to certify with respect to
such standards that it has either assumed responsibility for
compliance with the standards, or that it has complied with the
specifications set forth in the compliance documentation
provided by the incomplete motor vehicle manufacturer. If the
intermediate or final stage manufacturer chooses to assume
responsibility for compliance with the standard covered by the
documentation provided by an incomplete manufacturer, then the
manufacturer must notify such incomplete manufacturer within a
reasonable time of affixing the certification label. This
provision will not be subject to civil penalties by NHTSA.
Section 9. Endurance and resistance standards for tires
NHTSA is directed to complete a rulemaking to revise and
update its tire standards by June 1, 2002.
Section 10. Improved tire information
Within 30 days, NHTSA will begin a rulemaking to improve
the labeling of tires to help consumers identify whether such
tires are the subject of a recall. NHTSA is directed to
complete its rulemaking by June 1, 2002. The rulemaking will
also include whatever action the Secretary determines is
necessary to make the public aware of the importance of
observing motor vehicle tire load limits and maintaining proper
tire inflation levels to ensure the safe operation of motor
vehicles. Such action may include a requirement that the
manufacturer provide consumers with information on appropriate
tire inflation levels and load limits if the Secretary
determines that requiring the manufacturers to provide such
information is the most efficient way to educate consumers.
Section 11. Rollover tests
Within two years, NHTSA must develop a dynamic test on
motor vehicle rollovers for the purposes of a consumer
information program and must carry out a program of conducting
such tests. NHTSA must also conduct a rulemaking to determine
how to best disseminate the results of such tests to the
public. The rollover tests must be designed for new motor
vehicles, including passenger cars and multipurpose passenger
vehicles, and trucks, that have a gross vehicle weight rating
of 10,000 pounds or less. The tests will not be applied to
motor-homes.
Section 12. Tire pressure warning
Within one year, NHTSA must complete a rule to require
within two years that newly manufactured motor vehicles to
contain a warning system that signals to the vehicle operator
when a tire is significantly under-inflated.
Section 13. Improving criteria used in a recall
Within 30 days, the Secretary of Transportation is directed
to undertake a comprehensive review of, and undertake any
necessary steps to improve, all standards, criteria,
procedures, and methods, including data management and
analysis, used by NHTSA in determining whether to open a defect
or noncompliance investigation. The Secretary must report to
Congress on its findings and actions undertaken after such
review.
Section 14. Follow-up report
NHTSA must report to Congress within one year on the
implementation of this Act, as well as any additional
recommendations for consumer safety.
Section 15. Authorization of appropriations
An additional $9.1 million is authorized to be appropriated
for the Secretary and NHTSA to carry out this Act, although
such funds are not to be used for general administrative
expenses of the Secretary or NHTSA.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) 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 italics, 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 IV--ENFORCEMENT AND ADMINISTRATIVE
30161. Judicial review of standards.
* * * * * * *
30170. Criminal penalties.
* * * * * * *
SUBCHAPTER II--STANDARDS AND COMPLIANCE
* * * * * * *
Sec. 30112. Prohibitions on manufacturing, selling, and importing
noncomplying motor vehicles and equipment
(a) * * *
* * * * * * *
(c) Prohibition on Sales of Replaced Equipment.--No person
may sell any item of motor vehicle equipment (including a tire)
for installation on a motor vehicle that is the subject of a
decision under section 30118(b) or a notice required under
section 30118(c) or was removed from a motor vehicle as part of
an action taken under section 30120(a) or 30120(b) in a
condition that it may be used for its original purpose unless
the item of motor vehicle equipment is no longer defective or
is otherwise free of the condition that was the subject of the
action taken under section 30120(a) or 30120(b).
* * * * * * *
Sec. 30115. Certification of compliance
(a) In General.--A manufacturer or distributor of a motor
vehicle or motor vehicle equipment shall certify to the
distributor or dealer at delivery that the vehicle or equipment
complies with applicable motor vehicle safety standards
prescribed under this chapter. A person may not issue the
certificate if, in exercising reasonable care, the person has
reason to know the certificate is false or misleading in a
material respect. Certification of a vehicle must be shown by a
label or tag permanently fixed to the vehicle. Certification of
equipment may be shown by a label or tag on the equipment or on
the outside of the container in which the equipment is
delivered.
(b) Certification Label.--In the case of the certification
label affixed by an intermediate or final stage manufacturer of
a motor vehicle built in more than 1 stage, each intermediate
or final stage manufacturer shall certify with respect to each
applicable Federal motor vehicle safety standard--
(1) that it has complied with the specifications set
forth in the compliance documentation provided by the
incomplete motor vehicle manufacturer in accordance
with regulations prescribed by the Secretary; or
(2) that it has elected to assume responsibility for
compliance with that standard.
If the intermediate or final stage manufacturer elects to
assume responsibility for compliance with the standard covered
by the documentation provided by an incomplete motor vehicle
manufacturer, the intermediate or final stage manufacturer
shall notify the incomplete motor vehicle manufacturer in
writing within a reasonable time of affixing the certification
label. A violation of this subsection shall not be subject to a
civil penalty under section 30165.
* * * * * * *
Sec. 30117. Providing information to, and maintaining records on,
purchasers
(a) * * *
* * * * * * *
(c) Rollover Tests.--
(1) Development.--Not later than 2 years from the
date of enactment of this subsection, the Secretary of
Transportation, acting through the National Highway
Traffic Safety Administration, shall--
(A) develop a dynamic test on rollovers by
motor vehicles for the purposes of a consumer
information program; and
(B) carry out a program of conducting such
tests.
(2) Test results.--As the Secretary develops a test
under paragraph (1)(A), the Secretary, acting through
the National Highway Traffic Safety Administration,
shall conduct a rulemaking to determine how best to
disseminate test results to the public.
(3) Motor vehicles covered.--This subsection applies
to passenger cars, multipurpose passenger vehicles, and
trucks with a gross vehicle weight rating of 10,000
pounds or less. A motor vehicle designed to provide
temporary residential accommodations is not covered.
* * * * * * *
Sec. 30120. Remedies for defects and noncompliance
(a) * * *
* * * * * * *
(c) Adequacy of Repairs.--(1) * * *
* * * * * * *
(3) If the Secretary determines that a manufacturer's remedy
program is not likely to be capable of completion within a
reasonable time, the Secretary may require the manufacturer to
accelerate the remedy program if the Secretary finds--
(A) that there is a risk of serious injury or death
if the remedy program is not accelerated; and
(B) that acceleration of the remedy program can be
reasonably achieved by expanding the sources of
replacement parts, expanding the number of authorized
repair facilities, or both.
The Secretary may prescribe regulations to carry out this
paragraph.
(d) Filing Manufacturer's Remedy Program.--A manufacturer
shall file with the Secretary a copy of the manufacturer's
program under this section for remedying a defect or
noncompliance. The Secretary shall make the program available
to the public and publish a notice of availability in the
Federal Register. In the case of a remedy program involving the
replacement of tires the manufacturer shall include a plan
addressing how to prevent, to the extent reasonably within the
control of the manufacturer, replaced tires from being resold
for installation on a motor vehicle. The manufacturer shall
include information about the implementation of such plan with
each quarterly report to the Secretary about the progress about
the notification and remedy campaign.
* * * * * * *
(g) Nonapplication.--(1) The requirement that a remedy be
provided without charge does not apply if the motor vehicle or
replacement equipment was bought by the first purchaser more
than [8] 10 calendar years, or the tire, including an original
equipment tire, was bought by the first purchaser more than [3]
5 calendar years, before notice is given under section 30118(c)
of this title or an order is issued under section 30118(b) of
this title, whichever is earlier.
* * * * * * *
SUBCHAPTER IV--ENFORCEMENT AND ADMINISTRATIVE
* * * * * * *
Sec. 30165. Civil penalty
[(a) Penalty.--A person that violates any of sections 30112,
30115, 30117-30122, 30123(d), 30125(c), 30127, 30141-30147, or
30166 of this title or a regulation prescribed under any of
those sections is liable to the United States Government for a
civil penalty of not more than $1,000 for each violation. A
separate violation occurs for each motor vehicle or item of
motor vehicle equipment and for each failure or refusal to
allow or perform an act required by any of those sections. The
maximum penalty under this subsection for a related series of
violations is $800,000.]
(a) Civil Penalties.--
(1) In general.--A person that violates any of
sections 30112, 30115, 30117 through 30122, 30123(d),
30125(c), 30127, or 30141 through 30147, or a
regulation prescribed thereunder, is liable to the
United States Government for a civil penalty of not
more than $5,000 for each violation. A separate
violation occurs for each motor vehicle or item of
motor vehicle equipment and for each failure or refusal
to allow or perform an act required by any of those
sections. The maximum penalty under this subsection for
a related series of violations is $15,000,000.
(2) Section 30166.--A person who violates section
30166 or a regulation prescribed under that section is
liable to the United States Government for a civil
penalty for failing or refusing to allow or perform an
act required under that section or regulation. The
maximum penalty under this paragraph is $5,000 per
violation per day. The maximum penalty under this
paragraph for a related series of daily violations is
$15,000,000.
* * * * * * *
Sec. 30166. Inspections, investigations, and records
(a) * * *
* * * * * * *
(l) Reporting of Defects in Motor Vehicles and Products in
Foreign Countries.--
(1) Reporting of defects, manufacturer
determination.--Not later than 5 working days after
determining to conduct a safety recall or other safety
campaign in a foreign country on a motor vehicle or
motor vehicle equipment that is identical or
substantially similar to a motor vehicle or motor
vehicle equipment offered for sale in the United
States, the manufacturer shall report the determination
to the Secretary.
(2) Reporting of defects, foreign government
determination.--Not later than 5 working days after
receiving notification that the government of a foreign
country has determined that a safety recall or other
safety campaign must be conducted in the foreign
country on a motor vehicle or motor vehicle equipment
that is identical or substantially similar to a motor
vehicle or motor vehicle equipment offered for sale in
the United States, the manufacturer of the motor
vehicle or motor vehicle equipment shall report the
determination to the Secretary.
(3) Reporting requirements.--The Secretary shall
prescribe the contents of the notification required by
this subsection.
(m) Early Warning Reporting Requirements.--
(1) Rulemaking required.--Not later than 120 days
after the date of enactment of the Transportation
Recall Enhancement, Accountability, and Documentation
(TREAD) Act, the Secretary shall initiate a rulemaking
proceeding to establish early warning reporting
requirements for manufacturers of motor vehicles and
motor vehicle equipment to enhance the Secretary's
ability to carry out the provisions of this chapter.
(2) Deadline.--The Secretary shall issue a final rule
under paragraph (1) not later than June 30, 2002.
(3) Reporting elements.--
(A) Warranty and claims data.--As part of the
final rule promulgated under paragraph (1), the
Secretary shall require manufacturers of motor
vehicles and motor vehicle equipment to report,
periodically or upon request by the Secretary,
information which is received by the
manufacturer derived from foreign and domestic
sources to the extent that such information may
assist in the identification of defects related
to motor vehicle safety in motor vehicles and
motor vehicle equipment in the United States
and which concerns--
(i) data on claims submitted to the
manufacturer for serious injuries
(including death) and aggregate
statistical data on property damage
from alleged defects in a motor vehicle
or in motor vehicle equipment; and
(ii) customer satisfaction campaigns,
consumer advisories, recalls, or other
activity involving the repair or
replacement of motor vehicles or items
of motor vehicle equipment.
(B) Other data.--As part of the final rule
promulgated under paragraph (1), the Secretary
may, to the extent that such information may
assist in the identification of defects related
to motor vehicle safety in motor vehicles and
motor vehicle equipment in the United States,
require manufacturers of motor vehicles or
motor vehicle equipment to report, periodically
or upon request of the Secretary, such
information as the Secretary may request.
(C) Reporting of possible defects.--The
manufacturer of a motor vehicle or motor
vehicle equipment shall report to the
Secretary, in such manner as the Secretary
establishes by regulation, all incidents of
which the manufacturer receives actual notice
which involve fatalities or serious injuries
which are alleged or proven to have been caused
by a possible defect in such manufacturer's
motor vehicle or motor vehicle equipment in the
United States or a foreign country when the
possible defect is in a motor vehicle or motor
vehicle equipment that is identical or
substantially similar to a motor vehicle or
motor vehicle equipment offered for sale in the
United States.
(4) Handling and utilization of reporting elements.--
(A) Secretary's specifications.--In requiring
the reporting of any information requested by
the Secretary under this subsection, the
Secretary shall specify in the final rule
promulgated under paragraph (1)--
(i) how such information will be
reviewed and utilized to assist in the
identification of defects related to
motor vehicle safety;
(ii) the systems and processes the
Secretary will employ or establish to
permit such information to be reviewed
and utilized; and
(iii) the manner and form of
reporting such information, including
in electronic form.
(B) Information in possession of
manufacturer.--The regulations promulgated by
the Secretary under paragraph (1) may not
require a manufacturer of a motor vehicle or
motor vehicle equipment to maintain and submit
records respecting information not in the
possession of the manufacturer.
(C) Disclosure.--None of the information
collected pursuant to the final rule
promulgated under paragraph (1) shall be
disclosed pursuant to section 30167(b) unless
the Secretary determines the disclosure of such
information will assist in carrying out
sections 30117(b) and 30118 through 30121.
(D) Burdensome requirements.--In promulgating
the final rule under paragraph (1), the
Secretary shall not impose requirements unduly
burdensome to a manufacturer of a motor vehicle
or motor vehicle equipment, taking into account
the manufacturer's cost of complying with such
requirements and the Secretary's ability to use
the information in a meaningful manner to
assist in the identification of defects related
to motor vehicle safety.
(5) Periodic review.--As part of the final rule
promulgated pursuant to paragraph (1), the Secretary
shall specify procedures for the periodic review and
update of such rule.
(n) Sale or Lease of Defective or Noncompliant Tire.--
(1) In general.--The Secretary shall, within 90 days
of the date of this subsection, issue a final rule
requiring any person who knowingly and willfully sells
or leases for use on a motor vehicle a defective tire
or a tire which is not compliant with an applicable
tire safety standard with actual knowledge that the
manufacturer of such tire has notified its dealers of
such defect or noncompliance as required under section
30118(c) or as required by an order under section
30118(b) to report such sale or lease to the Secretary.
(2) Defect or noncompliance remedied or order not in
effect.--Regulations under paragraph (1) shall not
require the reporting described in paragraph (1) where
before delivery under a sale or lease of a tire--
(A) the defect or noncompliance of the tire
is remedied as required by section 30120; or
(B) notification of the defect or
noncompliance is required under section
30118(b) but enforcement of the order is
restrained or the order is set aside in a civil
action to which section 30121(d) applies.
* * * * * * *
Sec. 30170. Criminal Penalties.
(a) Criminal Liability for Falsifying or Withholding
Information.--
(1) General rule.--A person who violates section 1001
of title 18 with respect to the reporting requirements
of section 30166, with the specific intention of
misleading the Secretary with respect to motor vehicle
or motor vehicle equipment safety related defects that
have caused death or grievous bodily harm to an
individual, shall be subject to criminal penalties of a
fine under title 18, United States Code, or imprisoned
for not more than 15 years, or both.
(2) Safe harbor to encourage reporting and for
whistle blowers.--
(A) Correction.--A person described in
paragraph (1) shall not be subject to criminal
penalties under this subsection if such person
corrects any improper reports or failure to
report within a reasonable time.
(B) Reasonable time and sufficiency of
correction.--The Secretary shall establish by
regulation what constitutes a reasonable time
for the purposes of subparagraph (A) and what
manner of correction is sufficient for purposes
of subparagraph (A). The Secretary shall issue
a final rule under this subparagraph within 90
days of the date of enactment of this section.
(C) Effective date.--Subsection (a) shall not
take effect before the final rule under
subparagraph (B) takes effect.
(b) Coordination with Department of Justice.--The Attorney
General may bring an action, or initiate grand jury
proceedings, for a violation of subsection (a) only at the
request of the Secretary of Transportation.
* * * * * * *