[House Report 111-536]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-536

======================================================================



 
                    MOTOR VEHICLE SAFETY ACT OF 2010

                                _______
                                

 July 14, 2010.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Waxman, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 5381]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 5381) to require motor vehicle safety standards 
relating to vehicle electronics and to reauthorize and provide 
greater transparency, accountability, and safety authority to 
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........................................................     2
Purpose and Summary..............................................    12
Background and Need for Legislation..............................    12
Committee Consideration..........................................    13
Committee Votes..................................................    13
Committee Oversight Findings and Recommendations.................    20
New Budget Authority, Entitlement Authority, and Tax Expenditures    20
Statement of General Performance Goals and Objectives............    20
Constitutional Authority Statement...............................    20
Earmarks and Tax and Tariff Benefits.............................    20
Federal Advisory Committee Statement.............................    20
Applicability of Law to the Legislative Branch...................    20
Federal Mandates Statement.......................................    20
Committee Cost Estimate..........................................    21
Congressional Budget Office Cost Estimate........................    21
Section-by-Section Analysis of the Legislation...................    26
Explanation of Amendments........................................    31
Changes in Existing Law Made by the Bill, as Reported............    31
Dissenting Views.................................................    38

                               Amendment

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Motor Vehicle Safety 
Act of 2010''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

           TITLE I--VEHICLE ELECTRONICS AND SAFETY STANDARDS

Sec. 101. Electronics and Engineering Expertise.
Sec. 102. Brake override standard.
Sec. 103. Accelerator control systems.
Sec. 104. Pedal placement standard.
Sec. 105. Electronic systems performance standard.
Sec. 106. Push-button ignition systems standard.
Sec. 107. Transmission configuration standard.
Sec. 108. Vehicle event data recorders.
Sec. 109. Commercial motor vehicle rollover prevention and crash 
mitigation.
Sec. 110. Minimum sound requirement.
Sec. 111. Driver alcohol detection system research.

               TITLE II--TRANSPARENCY AND ACCOUNTABILITY

Sec. 201. Public availability of early warning data.
Sec. 202. Improved NHTSA vehicle safety database.
Sec. 203. Promotion of vehicle defect reporting.
Sec. 204. NHTSA hotline for manufacturer, dealer, and mechanic 
personnel.
Sec. 205. Corporate responsibility for NHTSA reports.
Sec. 206. Appeal of defect petition rejection.
Sec. 207. Deadlines for rulemaking.
Sec. 208. Reports to Congress.
Sec. 209. Restriction on Covered Vehicle Safety Officials.

                           TITLE III--FUNDING

Sec. 301. Vehicle safety user fee.
Sec. 302. Authorization of appropriations.

                 TITLE IV--ENHANCED SAFETY AUTHORITIES

Sec. 401. Civil penalties.
Sec. 402. Imminent hazard authority.

                     TITLE V--ADDITIONAL PROVISIONS

Sec. 501. Preemption of State law.

SEC. 2. DEFINITIONS.

  As used in this Act, the following definitions apply:
          (1) The term ``passenger motor vehicle'' means a motor 
        vehicle (as defined in section 30102(a)(6) of title 49, United 
        States Code) that is rated at less than 10,000 pounds gross 
        vehicular weight. Such term does not include--
                  (A) a motorcycle;
                  (B) a trailer; or
                  (C) a low speed vehicle (as defined in section 571.3 
                in title 49, Code of Federal Regulations).
          (2) The term ``Secretary'' means the Secretary of 
        Transportation, acting through the Administrator of the 
        National Highway Traffic Safety Administration.

           TITLE I--VEHICLE ELECTRONICS AND SAFETY STANDARDS

SEC. 101. ELECTRONICS AND ENGINEERING EXPERTISE.

  (a) Center for Vehicle Electronics and Emerging Technologies.--
          (1) In general.--The Secretary shall establish, within the 
        National Highway Traffic Safety Administration, a Center for 
        Vehicle Electronics and Emerging Technologies. The Center 
        shall--
                  (A) build, integrate, and aggregate the agency's 
                expertise in vehicle electronics and other new and 
                emerging technologies;
                  (B) coordinate with all components of the agency 
                responsible for vehicle safety, including research and 
                development, rulemaking, and defects investigation; and
                  (C) conduct research into the use of lightweight 
                materials in vehicles, including through the 
                implementation of the Plastic and Composite Intensive 
                Vehicle Safety Roadmap (Report No. DOT HS 810 863).
          (2) Limitation.--Not more than 20 percent of the funds spent 
        by the Center in a given year may be spent for the purposes 
        described in paragraph (1)(C).
  (b) Honors Recruitment Program.--
          (1) Establishment.--The Secretary shall establish, within the 
        National Highway Traffic Safety Administration, an honors 
        program for engineering students and other students interested 
        in vehicle safety that will enable them to train with engineers 
        and other safety officials for a career in vehicle safety. The 
        Secretary is authorized to provide a stipend to students during 
        their participation in the program.
          (2) Targeted student.--The Secretary shall develop a plan to 
        target and make an aggressive outreach to recruit the top 10 
        percent of science, technology, engineering and mathematics 
        students attending--
                  (A) 1890 Land Grant Institutions (as defined in 
                section 2 of the Agricultural Research, Extension, and 
                Education Reform Act of 1998 (7 U.S.C. 7061));
                  (B) Predominantly Black Institutions (as defined in 
                section 318 of the Higher Education Act of 1965 (20 
                U.S.C. 1059e));
                  (C) Tribal Colleges or Universities (as defined in 
                section 316(b) of the Higher Education Act of 1965 (20 
                U.S.C. 1059c(b))); and
                  (D) Hispanic Serving Institutions (as defined in 
                section 318 of the Higher Education Act of 1965 (20 
                U.S.C. 059e)).

SEC. 102. BRAKE OVERRIDE STANDARD.

  (a) Unintended Acceleration.--The Secretary shall initiate a 
rulemaking proceeding pursuant to section 30111 of title 49, United 
States Code, to prescribe or amend a Federal motor vehicle safety 
standard that would mitigate unintended acceleration in passenger motor 
vehicles. The standard--
          (1) shall establish performance requirements that enable a 
        driver to bring a passenger motor vehicle safely to a full stop 
        by normal braking application even if the vehicle is 
        simultaneously receiving accelerator input signals;
          (2) may permit compliance with such requirements through a 
        smart pedal system that requires brake pedal application, after 
        a period of time determined by the Secretary, to override an 
        accelerator input signal in order to stop the vehicle; and
          (3) may permit vehicles to incorporate a means by which the 
        driver would be able to temporarily disengage the technology or 
        mechanism required under paragraph (1) to facilitate 
        operations, such as maneuvering trailers, or other operating 
        conditions, that may require the simultaneous operation of the 
        service brake and accelerator pedal.
  (b) Deadline.--The Secretary shall issue a final rule under 
subsection (a) within 1 year after the date of enactment of this Act.

SEC. 103. ACCELERATOR CONTROL SYSTEMS.

  (a) In General.--The Secretary shall initiate a rulemaking proceeding 
to amend Federal motor vehicle safety standard 124 to require that at 
least 1 redundant circuit or other mechanism be built into accelerator 
control systems, including systems controlled by electronic throttle, 
to maintain vehicle control in the event of failure or malfunction in 
the accelerator control system.
  (b) Deadline.--The Secretary shall issue a final rule under 
subsection (a) within 2 years after the date of enactment of this Act.
  (c) Combined.--If the Secretary considers it appropriate, the 
Secretary may combine the rulemaking proceeding required by subsection 
(a) with the rulemaking proceeding required by section 102.

SEC. 104. PEDAL PLACEMENT STANDARD.

  (a) Consideration of Rule.--Not later than 18 months after the date 
of the enactment of this Act, the Secretary shall initiate a rulemaking 
proceeding pursuant to section 30111 of title 49, United States Code, 
to consider prescribing or amending Federal motor vehicle safety 
standards to prevent the potential obstruction of pedal movement in 
passenger motor vehicles by establishing minimum clearances for 
passenger motor vehicle foot pedals with respect to other pedals and 
the vehicle floor (including aftermarket floor coverings), taking into 
account various pedal mounting configurations.
  (b) Deadline for Decision.--If the Secretary determines such safety 
standards are reasonable, practicable, and appropriate, the Secretary 
shall prescribe the safety standards described in subsection (a) not 
later than 4 years after the date of enactment of this Act. If the 
Secretary determines that no additional safety standards are 
reasonable, practicable, and appropriate the Secretary shall transmit a 
report to the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate describing the reasons such standards were 
not prescribed.

SEC. 105. ELECTRONIC SYSTEMS PERFORMANCE STANDARD.

  (a) In General.--Not later than 2 years after the enactment of this 
Act, the Secretary shall initiate a rulemaking proceeding pursuant to 
section 30111 of title 49, United States Code, to consider requiring 
electronic systems in passenger motor vehicles to meet minimum 
standards for performance. The Secretary shall consider the findings 
and recommendations of the National Academy of Sciences pursuant to its 
study of electronic vehicle controls and unintended acceleration. The 
standard may include requirements for electronic components, the 
interaction of those electronic components, or the effect of 
surrounding environments on those electronic systems.
  (b) Deadline for Decision.--If the Secretary determines such safety 
standards are reasonable, practicable, and appropriate, the Secretary 
shall prescribe the safety standards described in subsection (a) not 
later than 4 years after the date of enactment of this Act. If the 
Secretary determines that no additional safety standards are 
reasonable, practicable, and appropriate the Secretary shall transmit a 
report to the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate describing the reasons such standards were 
not prescribed.

SEC. 106. PUSH-BUTTON IGNITION SYSTEMS STANDARD.

  (a) In General.--The Secretary shall initiate a rulemaking proceeding 
pursuant to section 30111 of title 49, United States Code, to prescribe 
or amend a Federal motor vehicle safety standard for passenger motor 
vehicles equipped with push-button ignition systems, to establish the 
standard operation and function of such systems when used by drivers, 
including drivers unfamiliar with the vehicle, in an emergency 
situation when the vehicle is in motion.
  (b) Deadline.--The Secretary shall issue a final rule under 
subsection (a) within 2 years after the date of enactment of this Act.

SEC. 107. TRANSMISSION CONFIGURATION STANDARD.

  (a) In General.--The Secretary shall initiate a rulemaking proceeding 
pursuant to section 30111 of title 49, United States Code, to revise 
Federal motor vehicle safety standard 102, to improve the recognition 
of the gear selector positions for drivers, including drivers 
unfamiliar with the vehicle, and to improve the conspicuity of the 
neutral position.
  (b) Deadline.--The Secretary shall issue a final rule under 
subsection (a) within 1 year after the date of enactment of this Act.

SEC. 108. VEHICLE EVENT DATA RECORDERS.

  (a) Required Event Data Recorders.--Not later than 6 months after the 
date of the enactment of this section, the Secretary shall modify the 
regulation contained in part 563 of title 49, Code of Federal 
Regulations, to require that passenger motor vehicles sold in the 
United States be equipped with an event data recorder that meets the 
requirements for event data recorders set forth in such part. The 
Secretary shall require manufacturers to include such event data 
recorders in their entire fleet beginning in model year 2015.
  (b) Requirements for Event Data Recorders.--The Secretary shall 
initiate a rulemaking proceeding pursuant to section 30111 of title 49, 
United States Code, to require that the event data recorders required 
to be installed in passenger motor vehicles pursuant to subsection (a) 
continuously record vehicle operational data that can be stored and 
accessed for retrieval and analysis in accordance with subsections (c) 
and (d).
  (c) Specifications.--The rule--
          (1) shall require such recorders to store data covering a 
        reasonable time before, during, and after a crash or airbag 
        deployment, including information on engine performance, 
        steering, braking, acceleration, vehicle speed, seat belt use, 
        and airbag deployment level, deactivation status, deployment 
        time, and deployment stage, and may require such recorders to 
        store other data, such as data related to vehicle rollovers, as 
        the Secretary considers appropriate;
          (2) shall require such recorders to store data covering at 
        least a sufficient period of time to capture all relevant data 
        from a crash, including vehicle rollovers, and shall establish 
        appropriate recording times for capturing data prior to a crash 
        event;
          (3) may require such recorders to capture certain events such 
        as rapid deceleration and full braking lasting more than 10 
        seconds, even if there is not a crash or airbag deployment;
          (4) may not require information recorded or transmitted by 
        such data recorders to include the vehicle location, except for 
        the purposes of emergency response;
          (5) shall require that data stored on such recorders be 
        accessible, regardless of vehicle manufacturer or model, with 
        commercially available equipment;
          (6) shall specify any data format requirements or other 
        requirements, including a standardized data access port, the 
        Secretary determines appropriate to facilitate accessibility 
        and analysis; and
          (7) shall require that such recorders meet at least the 
        performance requirements for crash resistance included in part 
        563 of title 49, Code of Federal Regulations (as amended 
        January 14, 2008), and, if the Secretary determines that these 
        requirements do not provide adequate temperature, crash, or 
        water resistance, shall establish such additional standards.
  (d) Limitations on Information Retrieval.--
          (1) Ownership of data.--The rule issued under subsection (b) 
        shall provide that any data in a data recorder required under 
        the rule is the property of the owner or lessee of the motor 
        vehicle in which the data recorder is installed.
          (2) Privacy.--The rule issued under subsection (b) shall 
        provide that information recorded or transmitted by such a data 
        recorder may not be retrieved by a person other than the owner 
        or lessee of the motor vehicle in which the recorder is 
        installed unless--
                  (A) a court authorizes retrieval of the information 
                in furtherance of a legal proceeding;
                  (B) the owner or lessee consents to the retrieval of 
                the information for any purpose, including the purpose 
                of diagnosing, servicing, or repairing the motor 
                vehicle; or
                  (C) the information is retrieved by a government 
                motor vehicle safety agency for the purpose of 
                improving motor vehicle safety if the personally 
                identifiable information of the owner, lessee, or 
                driver of the vehicle and the vehicle identification 
                number is not disclosed in connection with the 
                retrieved information.
          (3) Tamper resistance.--The rule issued under subsection (b) 
        shall establish performance requirements for preventing 
        unauthorized access to the data stored on such event data 
        recorder in order to protect the security, integrity, and 
        authenticity of the data.
  (e) Disclosure of Existence and Purpose of Event Data Recorder.--The 
rule issued under subsection (a) shall provide that any owner's manual 
or similar documentation provided to the first purchaser of a passenger 
motor vehicle for purposes other than resale shall disclose that the 
vehicle is equipped with such a data recorder and explain the purpose 
of the recorder.
  (f) Access to Event Data Recorders in Defect Investigations.--Section 
30166(c)(3)(C) of title 49, United States Code, is amended by inserting 
``, including any electronic data contained within the vehicle's 
diagnostic system or event data recorder'' after ``equipment''.
  (g) Deadline for Rulemaking.--The Secretary shall issue a final rule 
under subsection (a) not later than 3 years after the date of enactment 
of this Act.

SEC. 109. COMMERCIAL MOTOR VEHICLE ROLLOVER PREVENTION AND CRASH 
                    MITIGATION.

  (a) Rulemaking.--Not later than 6 months after the date of enactment 
of this Act, the Secretary shall initiate a rulemaking proceeding 
pursuant to section 30111 of title 49, United States Code, to prescribe 
or amend a Federal motor vehicle safety standard to reduce commercial 
motor vehicle rollover and loss of control crashes and mitigate deaths 
and injuries associated with such crashes for air-braked motor vehicles 
with a gross vehicle weight rating of more than 26,000 pounds.
  (b) Required Performance Standards.--The rulemaking proceeding 
initiated under subsection (a) shall establish standards to reduce the 
occurrence of rollovers consistent with stability enhancing 
technologies that address both rollovers and loss-of-control crashes.
  (c) Deadline.--The Secretary shall issue a final rule under 
subsection (a) not later than 18 months after the date of enactment of 
this Act.

SEC. 110. MINIMUM SOUND REQUIREMENT.

  (a) Rulemaking.--Not later than 18 months following the date of 
enactment of this Act the Secretary shall initiate a rulemaking 
proceeding under section 30111 of title 49, United States Code, to 
promulgate a motor vehicle safety standard to establish performance 
requirements for an alert sound that allows blind and other pedestrians 
to reasonably detect a nearby electric or hybrid vehicle operating 
below the cross-over speed, if any. Such standard--
          (1) shall require new electric or hybrid vehicles to provide 
        an alert sound conforming to the requirements of the motor 
        vehicle safety standard established under this subsection;
          (2) shall not require either driver or pedestrian activation 
        of the alert sound;
          (3) shall allow the pedestrian to reasonably detect a nearby 
        electric or hybrid vehicle in critical operating scenarios, 
        including but not limited to constant speed, accelerating, and 
        decelerating;
          (4) shall allow manufacturers to provide each vehicle with 1 
        or more alert sounds that comply with the motor vehicle safety 
        standard at the time of manufacture; and
          (5) shall require manufacturers to provide, within reasonable 
        manufacturing tolerances, the same alert sound or set of alert 
        sounds for all vehicles of the same make and model and shall 
        prohibit manufacturers from providing any mechanism for anyone 
        other than the manufacturer or the dealer to disable, alter, 
        replace, or modify the alert sound or set of alert sounds, 
        except that the manufacturer or dealer may alter, replace, or 
        modify the alert sound or set of alert sounds in order to 
        remedy a defect or non-compliance with the motor vehicle safety 
        standard.
  (b) Consideration.--When conducting the required rulemaking, the 
Secretary shall--
          (1) determine the minimum level of an alert sound emitted 
        from a motor vehicle that is necessary to provide blind and 
        other pedestrians with the information needed to reasonably 
        detect a nearby electric or hybrid vehicle operating at or 
        below the cross-over speed, if any;
          (2) determine the performance requirements for an alert sound 
        that is recognizable to a pedestrian as a motor vehicle in 
        operation; and
          (3) consider the overall noise impact to streets and 
        communities.
  (c) Phase-in Required.--The motor vehicle safety standard prescribed 
pursuant to subsection (a) shall establish a phase-in period for 
compliance, as determined by the Secretary, and shall require full 
compliance with the required motor vehicle safety standard for motor 
vehicles manufactured on or after September 1 of the calendar year that 
begins 3 years after the date on which the final rule is issued.
  (d) Consultation.--When conducting the required study and rulemaking, 
the Secretary shall consult with--
          (1) the Environmental Protection Agency to assure that the 
        motor vehicle safety standard is consistent with existing noise 
        requirements overseen by the Agency;
          (2) consumer groups representing individuals who are blind;
          (3) automobile manufacturers and professional organizations 
        representing them; and
          (4) technical standardization organizations responsible for 
        measurement methods such as the Society of Automotive 
        Engineers, the International Organization for Standardization, 
        and the United Nations Economic Commission for Europe, World 
        Forum for Harmonization of Vehicle Regulations.
  (e) Deadline.--The Secretary shall issue a final rule under 
subsection (a) not later than 36 months after the date of enactment of 
this Act.
  (f) Study and Report.--Not later than 4 years after the date of 
enactment of this Act, the Secretary shall complete a study and report 
to Congress as to whether there exists a safety need to apply the motor 
vehicle safety standard required by subsection (a) to conventional 
motor vehicles. In the event that the Secretary determines there exists 
a safety need, the Secretary shall initiate rulemaking under section 
30111 of title 49, United States Code to extend the standard to 
conventional motor vehicles.
  (g) Definitions.--For purposes of the motor vehicle safety standard 
required under this section--
          (1) the term ``alert sound'' means a vehicle-emitted sound 
        that enables pedestrians to discern vehicle presence, 
        direction, location, and operation;
          (2) the term ``cross-over speed'' means the speed at which 
        tire noise, wind resistance, or other factors eliminate the 
        need for a separate alert sound, as determined by the 
        Secretary;
          (3) the term ``conventional motor vehicle'' means a motor 
        vehicle powered by a gasoline, diesel, or alternative fueled 
        internal combustion engine as its sole means of propulsion;
          (4) the term ``electric vehicle'' means a motor vehicle with 
        an electric motor as its sole means of propulsion; and
          (5) the term ``hybrid vehicle'' means a motor vehicle which 
        has more than one means of propulsion.

SEC. 111. DRIVER ALCOHOL DETECTION SYSTEM RESEARCH.

  (a) Research.--The Secretary shall carry out a collaborative research 
effort to continue to explore the feasibility and the potential 
benefits of, and the public policy challenges associated with, more 
widespread deployment of in-vehicle technology to prevent alcohol-
impaired driving.
  (b) Report.--Not later than 1 year after the date of the enactment of 
this Act, the Secretary shall submit a report annually to the Committee 
on Energy and Commerce of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the Senate--
          (1) describing progress in carrying out the collaborative 
        research effort; and
          (2) including an accounting for the use of Federal funds 
        obligated or expended in carrying out that effort.
  (c) Authorization.--From amounts appropriated under section 30104 of 
title 49, United States Code, the Secretary is authorized to expend 
$8,000,000 during each of fiscal years 2011 through 2015 to conduct the 
research required under this section.

               TITLE II--TRANSPARENCY AND ACCOUNTABILITY

SEC. 201. PUBLIC AVAILABILITY OF EARLY WARNING DATA.

  (a) In General.--Section 30166(m) of title 49, United States Code, is 
amended by in paragraph (4), by striking subparagraph (C) and inserting 
the following:
                  ``(C) Disclosure.--The information provided to the 
                Secretary pursuant to this subsection shall be 
                disclosed publicly unless exempt from disclosure under 
                section 552(b) of title 5.''.
  (b) Regulations.--Not later than 2 years after the date of enactment 
of this Act, the Secretary shall issue regulations regarding public 
access to information submitted pursuant to section 30166(m). The 
Secretary may establish categories of information provided pursuant to 
such section that must be made available to the public and categories 
that are exempt from public disclosure under section 552(b) of title 5, 
United States Code.
  (c) Consultation.--In conducting the rulemaking required under 
subsection (a), the Secretary shall consult with the Director of the 
Office of Government Information Services within the National Archives 
and the Director of the Office of Information Policy of the Department 
of Justice.
  (d) Presumption and Limitation.--The Secretary shall issue the 
regulations with a presumption in favor of maximum public availability 
of information. The following types of information shall not be 
eligible for protection under section 552(b)(4) of title 5, United 
States Code, and shall not be withheld from public disclosure:
          (1) Production information regarding passenger motor 
        vehicles, information on incidents involving death or injury, 
        and numbers of property damage claims.
          (2) Aggregated numbers of consumer complaints.
  (e) Nullification of Prior Regulations.--Beginning 2 years after the 
date of the enactment of this Act, the regulations establishing early 
warning reporting class determinations in Appendix C of section 512 of 
title 49, Code of Federal Regulations, shall have no force or effect.

SEC. 202. IMPROVED NHTSA VEHICLE SAFETY DATABASE.

  (a) In General.--Not later than 2 years after the date of the 
enactment of this Act, the Secretary shall improve public accessibility 
to information on the National Highway Traffic Safety Administration's 
publicly accessible vehicle safety databases by--
          (1) improving organization and functionality, including 
        design features such as drop-down menus, and allowing for data 
        to be searched, aggregated, and downloaded;
          (2) providing greater consistency in presentation of vehicle 
        safety issues; and
          (3) improving searchability about specific vehicles and 
        issues through standardization of commonly used search terms.
  (b) Vehicle Recall Information.--The Secretary shall require that 
motor vehicle recall information be made available to consumers on the 
Internet, searchable by vehicle identification number in a format that 
preserves consumer privacy. The Secretary may initiate a rulemaking 
proceeding to require that such information be available on 
manufacturer websites or through other reasonable means.
  (c) Accessibility of Manufacturer Communications.--Section 30166(f) 
of title 49, United States Code, is amended by inserting ``, and make 
available on a publicly accessible Internet website,'' after 
``Secretary of Transportation''.

SEC. 203. PROMOTION OF VEHICLE DEFECT REPORTING.

  Section 32302 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(d) Motor Vehicle Defect Reporting Information.--
          ``(1) Rulemaking required.--Within 1 year after the date of 
        enactment of the Motor Vehicle Safety Act of 2010 the Secretary 
        shall prescribe regulations that require passenger motor 
        vehicle manufacturers to affix, in the glove compartment or in 
        another readily accessible location on the vehicle, a sticker, 
        decal, or other device that provides, in simple and 
        understandable language, information about how to submit a 
        safety-related motor vehicle defect complaint with the National 
        Highway Traffic Safety Administration. The information may not 
        be placed on the label required by section 3 of the Automobile 
        Information Disclosure Act (15 U.S.C. 1232).
          ``(2) Application.--The requirements established under 
        paragraph (1) shall apply to passenger motor vehicles 
        manufactured in model years beginning more than 1 year after 
        the date on which a final rule is published under that 
        paragraph.''.

SEC. 204. NHTSA HOTLINE FOR MANUFACTURER, DEALER, AND MECHANIC 
                    PERSONNEL.

  The Secretary shall--
          (1) establish a means by which mechanics, automobile 
        dealership personnel, and automobile manufacturer personnel may 
        contact the National Highway Traffic Safety Administration 
        directly and confidentially regarding potential passenger 
        automobile safety defects; and
          (2) publicize the means for contacting the National Highway 
        Traffic Safety Administration in a manner that targets 
        mechanics, automobile dealership personnel, and manufacturer 
        personnel.

SEC. 205. CORPORATE RESPONSIBILITY FOR NHTSA REPORTS.

  (a) In General.--Section 30166 of title 49, United States Code, is 
amended by adding at the end the following:
  ``(o) Corporate Responsibility for Reports.--The Secretary shall 
require, for each company submitting information to the Secretary in 
response to a request for information in a safety or compliance 
investigation under this chapter, that a senior official responsible 
for safety residing in the United States certify that--
          ``(1) the signing official has reviewed the submission; and
          ``(2) based on the official's knowledge, the submission does 
        not contain any untrue statement of a material fact or omit to 
        state a material fact necessary in order to make the statements 
        made, in light of the circumstances under which such statements 
        were made, not misleading.''.
  (b) Civil Penalty.--Section 30165(a) of title 49, United States Code, 
is amended--
          (1) by striking ``A person'' in paragraph (3) and inserting 
        ``Except as provided in paragraph (4), a person''; and
          (2) by adding at the end thereof the following:
          ``(4) False, misleading, or incomplete reports.--A person who 
        knowingly and willfully submits materially false, misleading, 
        or incomplete information to the Secretary, after certifying 
        the same information as accurate and complete under the 
        certification process established pursuant to section 30166(o), 
        shall be subject to a civil penalty of not more than $5,000 per 
        day. The maximum penalty under this paragraph for a related 
        series of daily violations is $5,000,000.''.

SEC. 206. APPEAL OF DEFECT PETITION REJECTION.

  Section 30162 of title 49, United States Code, is amended by adding 
at the end the following:
  ``(f) Judicial Review.--A decision of the Secretary to deny a 
petition filed under subsection (a)(2) of this section is agency action 
subject to judicial review under chapter 7 of title 5, and such action 
shall not be considered committed to agency discretion within the 
meaning of section 701(a)(2) of such title. A person aggrieved by the 
denial of a petition may obtain judicial review by filing an action in 
the court of appeals of the United States for the circuit in which the 
person resides or has its principal place of business or the United 
States Court of Appeals for the District of Columbia Circuit not more 
than 180 days after notice of the denial of the petition is published 
in the Federal Register.''.

SEC. 207. DEADLINES FOR RULEMAKING.

  If the Secretary determines that a deadline for a final rule under 
this Act, or an amendment made by this Act, cannot be met, the 
Secretary shall--
          (1) notify the Committee on Energy and Commerce of the House 
        of Representatives and the Senate Committee on Commerce, 
        Science, and Transportation and explain why that deadline 
        cannot be met; and
          (2) establish a new deadline for that rule.

SEC. 208. REPORTS TO CONGRESS.

  (a) Study on Early Warning Data.--Not later than 3, 5, 7, and 9 years 
after the date of enactment of this Act, the Office of the Inspector 
General of the Department of Transportation shall complete a study of 
the utilization of Early Warning data by the National Highway Traffic 
Safety Administration (NHTSA). Each study shall evaluate the following:
          (1) The number and type of requests for information made by 
        the NHTSA based on data received in the Early Warning Reporting 
        system.
          (2) The number of safety defect investigations opened by 
        NHTSA using any information reported to the agency through the 
        Early Warning Reporting system.
          (3) The nature and vehicle defect category of all such safety 
        defect investigations.
          (4) The number of investigations described in paragraph (2) 
        that are subsequently closed without further action.
          (5) The duration of each investigation described in paragraph 
        (2)
          (6) The percentage of each investigation that result in a 
        finding of a safety defect or recall by the agency.
          (7) Other information the Office of the Inspector General 
        deems appropriate.
  (b) Report on Operations of the Center for Vehicle Electronics and 
Emerging Technologies.--Not later than 3 years after the date of 
enactment of this Act, the Secretary shall report to Congress regarding 
the operations of the Center for Vehicle Electronics and Emerging 
Technologies. Such report shall include information about the 
accomplishments of the Center, the role the Center plays in integrating 
and aggregating expertise across NHTSA, and priorities of the Center 
over the next 5 years.
  (c) Study of Crash Data Collection.--Not later than 1 year after the 
date of enactment of this Act, the Secretary shall issue a report 
regarding the quality of data collected through the National Automotive 
Sampling System, including the Special Crash Investigations, and 
recommendations for improvements to this data collection program. The 
report shall include information regarding--
          (1) the analysis and conclusions NHTSA can reach based on the 
        amount of data collected in a given year, and the additional 
        analysis and conclusions NHTSA could reach if more crash 
        investigations were conducted each year;
          (2) the number of investigations per year that would allow 
        for optimal data analysis and crash information;
          (3) the results of a comprehensive review of the data 
        elements collected from each crash to determine if additional 
        data should be collected; which review shall include input from 
        interested parties, such as suppliers, automakers, safety 
        advocates, the medical community and research organizations; 
        and
          (4) the resources that would be necessary for NHTSA to 
        implement these recommendations.
  (d) Submission of Reports.--Each report shall be submitted to the 
Committee on Energy and Commerce of the House of Representatives and to 
the Committee on Commerce, Science, and Transportation of the Senate 
upon completion.

SEC. 209. RESTRICTION ON COVERED VEHICLE SAFETY OFFICIALS.

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

``Sec. 30107. Restriction on covered vehicle safety officials

  ``(a) In General.--For a period of 1 year after the termination of 
his or her service or employment, a covered vehicle safety official 
shall not knowingly make, with the intent to influence, any 
communication to or appearance before any officer or employee of the 
National Highway Transportation Safety Administration on behalf of any 
manufacturer subject to regulation under this chapter in connection 
with any matter involving vehicle safety on which such person seeks 
official action by any officer or employee of the National Highway 
Transportation Safety Administration.
  ``(b) No Effect on Section 207.--This section does not expand, 
contract, or otherwise affect the application of any waiver or criminal 
penalties under section 207 of title 18, United States Code.
  ``(c) Effective Date.--This section shall apply to covered vehicle 
safety officials who terminate service or employment with the National 
Highway Transportation Safety Administration after the date of 
enactment of the Motor Vehicle Safety Act of 2010.
  ``(d) Definition.--In this section, the term `covered vehicle safety 
official' means any officer or employee of the National Highway 
Transportation Safety Administration who, within the final 12 months of 
his or her service or employment with the agency, serves or served in a 
technical or legal capacity, and whose job responsibilities include or 
included vehicle safety defect investigation, vehicle safety 
compliance, vehicle safety rulemaking, or vehicle safety research, and 
any officer or employee of the National Highway Transportation Safety 
Administration serving in a supervisory or management capacity over 
such officers or employees.
  ``(e) Special Rule for Detailees.--For purposes of this section, a 
person who is detailed from one department, agency, or other entity to 
another department, agency, or other entity shall, during the period 
such person is detailed, be deemed to be an officer or employee of both 
departments, agencies, or such entities.
  ``(f) Exception for Testimony.--Nothing in this section shall prevent 
an individual from giving testimony under oath, or from making 
statements required to be made under penalty of perjury.''.
  (b) Civil Penalty.--Section 30165(a) of title 49, United States Code, 
as amended by section 205, is further amended by adding at the end the 
following:
          ``(5) Section 30107.--A person who violates section 30107 
        shall be subject to a civil penalty of not more than 
        $55,000.''.
  (c) Conforming Amendment.--The table of contents for chapter 301 of 
title 49, United States Code, is amended by inserting after the item 
relating to section 30106 the following:

``30107. Restriction on covered vehicle safety officials.''.

                           TITLE III--FUNDING

SEC. 301. VEHICLE SAFETY USER FEE.

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

``Sec. 30108. Vehicle safety user fee

  ``(a) Establishment of Fund.--There is established in the Treasury of 
the United States a separate account for the deposit of fees under this 
section to be known as the Vehicle Safety Fund.
  ``(b) Assessment and Collection of Vehicle Safety Fees.--Beginning 1 
year after the date of enactment of the Motor Vehicle Safety Act of 
2010, the Secretary shall assess and collect, in accordance with this 
section, a vehicle safety user fee from the manufacturer for each motor 
vehicle that is certified as compliant with applicable motor vehicle 
safety standards pursuant to section 30115.
  ``(c) Deposit.--The Secretary shall deposit any fees collected 
pursuant to subsection (b) into the Vehicle Safety Fund established by 
subsection (a).
  ``(d) Use.--Amounts in the Vehicle Safety Fund shall be available to 
the Secretary, as provided in subsection (i), for making expenditures 
to meet the obligations of the United States to carry out vehicle 
safety programs of the National Highway Traffic Safety Administration.
  ``(e) Vehicle Safety User Fee.--
          ``(1) First, second, and third year fees.--The fee assessed 
        under this section for the first three years shall be as 
        follows:
                  ``(A) $3 for each vehicle certified during the first 
                year in which such fees are assessed.
                  ``(B) $6 for each vehicle certified during the second 
                year in which such fees are assessed.
                  ``(C) $9 for each vehicle certified during the third 
                year in which such fees are assessed.
          ``(2) Subsequent years.--The fee assessed under this section 
        for each vehicle certified after the third year in which such 
        fees are assessed shall be adjusted by the Secretary by notice 
        published in the Federal Register to reflect the total 
        percentage change that occurred in the Consumer Price Index for 
        all Urban Consumers for the 12 month period ending June 30 
        preceding the fiscal year for which fees are being established.
          ``(3) Payment.--The Secretary shall require payment of fees 
        under this section on a quarterly basis and not later than one 
        quarter after the date on which the fee was assessed.
  ``(f) Rulemaking.--Not later than 9 months after the date of 
enactment of the Motor Vehicle Safety Act of 2010, the Secretary shall 
promulgate rules governing the collection and payment of fees pursuant 
to this section.
  ``(g) Limitations.--
          ``(1) In general.--Fees under this section shall not be 
        collected for a fiscal year unless appropriations for vehicle 
        safety programs of the National Highway Traffic Safety 
        Administration for such fiscal year (excluding the amount of 
        fees appropriated for such fiscal year) are equal to or greater 
        than the amount of appropriations for vehicle safety programs 
        of the National Highway Traffic Safety Administration for 
        fiscal year 2010.
          ``(2) Authority.--If the Secretary does not assess fees under 
        this section during any portion of a fiscal year because of 
        paragraph (1), the Secretary may assess and collect such fees, 
        without any modification in the rate, at a later date in such 
        fiscal year notwithstanding the provisions of subsection (e)(3) 
        relating to the date fees are to be paid.
  ``(h) Collection of Unpaid Fees.--In any case where the Secretary 
does not receive payment of a fee assessed under this section within 30 
days after it is due, such fee shall be treated as a claim of the 
United States Government subject to subchapter II of chapter 37 of 
title 31.
  ``(i) Authorization of Appropriations.--In addition to funds 
appropriated under section 30104, there is authorized to be 
appropriated from the Vehicle Safety Fund to the Secretary for the 
National Highway Traffic Safety Administration for each fiscal year in 
which fees are collected under subsection (b) an amount equal to the 
total amount collected during the previous fiscal year from fees 
assessed pursuant to this section. Such amounts are authorized to 
remain available until expended.
  ``(j) Crediting and Availability of Fees.--Fees authorized under 
subsection (b) shall be collected and available for obligation only to 
the extent and in the amount provided in advance in appropriations 
Acts.''.
  (b) Clerical Amendment.--The analysis for such chapter is amended by 
inserting after the item relating to section 30106 the following:

``30108. Vehicle safety user fee.''.

SEC. 302. AUTHORIZATION OF APPROPRIATIONS.

  Section 30104 of title 49, United States Code, is amended--
          (1) by striking ``$98,313,500''; and
          (2) by striking ``in each fiscal year beginning'' and all 
        that follows and inserting ``and to carry out the Motor Vehicle 
        Safety Act of 2010--
          ``(1) $200,000,000 for fiscal year 2011;
          ``(2) $240,000,000 for fiscal year 2012; and
          ``(3) $280,000,000 for fiscal year 2013.''.

                 TITLE IV--ENHANCED SAFETY AUTHORITIES

SEC. 401. CIVIL PENALTIES.

  (a) In General.--Section 30165 of title 49, United States Code, is 
amended--
          (1) in subsection (a)(1)--
                  (A) in the first sentence by striking ``$5,000'' and 
                inserting ``$25,000''; and
                  (B) in the third sentence, by striking 
                ``$15,000,000'' and inserting ``$200,000,000'';
          (2) in subsection (a)(3)--
                  (A) in the second sentence by striking ``$5,000'' and 
                inserting ``$25,000'' ; and
                  (B) in the third sentence, by striking 
                ``$15,000,000'' and inserting ``$200,000,000''; and
          (3) by striking subsection (c) and inserting the following:
  ``(c) Relevant Factors in Determining Amount of Penalty or 
Compromise.--In determining the amount of a civil penalty or 
compromise, the nature, circumstances, extent, and gravity of the 
violation shall be considered. This shall include, where appropriate, 
the nature of the defect or noncompliance, the severity of the risk of 
injury, the occurrence or absence of injury, the number of motor 
vehicles or items of motor vehicle equipment distributed with the 
defect or noncompliance, the existence of an imminent hazard, the 
appropriateness of such penalty in relation to the size of the business 
of the person charged, recognizing the potential for undue adverse 
economic impacts on small businesses, and such other factors as 
appropriate.''.
  (b) Civil Penalty Criteria.--Not later than 1 year after the date of 
enactment of this Act, and in accordance with the procedures of section 
553 of title 5, United States Code, the Secretary shall issue a final 
regulation providing its interpretation of the penalty factors 
described in section 30165(c) of title 49, United States Code, as added 
by subsection (a).
  (c) Construction.--Nothing in this section shall be construed as 
preventing the imposition of penalties under section 30165 of title 49, 
United States Code, prior to the issuance of a final rule pursuant to 
subsection (b).

SEC. 402. IMMINENT HAZARD AUTHORITY.

  (a) In General.--Section 30118(b) of title 49, United States Code, is 
amended by adding at the end the following:
          ``(3) Imminent hazard orders.--If the Secretary of 
        Transportation in making a decision under subsection (a) also 
        initially decides that such defect or noncompliance presents a 
        substantial likelihood of death or serious injury to the 
        public, the Secretary shall notify such manufacturer. The 
        opportunity for the manufacturer to present information, views, 
        and arguments in accordance with paragraph (1) shall be 
        provided as soon as practicable but not later than 10 calendar 
        days after the initial decision. The Secretary shall expedite 
        proceedings for a decision and order under paragraph (1) and 
        shall, as appropriate, issue an imminent hazard order.''.
  (b) Procedures.--Not later than 2 years after the date of enactment 
of this Act, the Secretary shall issue procedures for the issuance and 
enforcement of imminent hazard orders under section 30118(b)(3) of 
title 49, United States Code (as added by subsection (a)), consistent 
with the provisions of chapter 301 of such title and the Administrative 
Procedures Act.

                     TITLE V--ADDITIONAL PROVISIONS

SEC. 501. PREEMPTION OF STATE LAW.

  (a) Congressional Authorization Required.--Notwithstanding any other 
provision of law, the Secretary shall not publish a rule pursuant to 
section 30111 of title 49, United States Code, that addresses the issue 
of preemption of State law seeking damages for personal injury, death, 
or property damage unless Congress expressly authorizes the Secretary 
to address such preemption.
  (b) Preemption Language.--Any language addressing the issue of 
preemption contained within regulations issued by the Secretary 
pursuant to section 30111 of title 49, United States Code, during the 
years 2005 through 2008 shall not be considered in determining whether 
any such rule preempts any action under State law seeking damages for 
personal injury, death, or property damage unless Congress expressly 
authorizes the Secretary to address such preemption.

                          Purpose and Summary

    H.R. 5381, the ``Motor Vehicle Safety Act of 2010'', was 
introduced on May 25, 2010, by Reps. Henry A. Waxman (D-CA), 
Bobby L. Rush (D-IL), John D. Dingell (D-MI), Bart Stupak (D-
MI), and Bruce Braley (D-IA), and referred to the Committee on 
Energy and Commerce.
    The goal of H.R. 5381 is to improve auto safety and 
strengthen the vehicle safety programs at the National Highway 
Traffic Safety Administration (NHTSA). The bill has four key 
objectives: (1) improve electronics expertise at NHTSA and 
develop new vehicle safety standards; (2) increase transparency 
and accountability in auto safety; (3) provide additional 
resources to NHTSA; and (4) improve the enforcement authorities 
of NHTSA.

                  Background and Need for Legislation

    NHTSA has broad jurisdiction relating to motor vehicles. 
The agency was established in 1970 with a mission to save 
lives, prevent injuries, and reduce the economic cost of 
crashes through education, research, safety standards, and 
enforcement of laws, regulations, and standards. NHTSA conducts 
crash data analysis, research, and rulemaking for vehicle 
safety, and is responsible for overseeing issues related to 
fuel economy, child car seat performance, and tire safety. 
NHTSA is also responsible for collecting consumer complaint 
data, investigating potential vehicle defects, and overseeing 
recalls of vehicles with safety defects. In addition, the 
agency administers grants to states to enforce laws requiring 
seat belts and prohibiting drunk driving.
    During the first half of 2010, increased public attention 
has focused on NHTSA's enforcement role. Following several 
recalls of Toyota vehicles due to concerns about unintended 
acceleration, the Committee on Energy and Commerce's 
Subcommittee on Oversight and Investigations and Subcommittee 
on Commerce, Trade, and Consumer Protection held hearings.\1\ 
During these hearings, concerns were raised about whether NHTSA 
has the resources and the capability to conduct in-depth 
investigations into new and complex systems in vehicles, and to 
evaluate manufacturers' claims about the operations of their 
vehicles. The Motor Vehicle Safety Act of 2010 was drafted to 
address these and other concerns about the ability of NHTSA to 
ensure the safety of vehicles on the road.
---------------------------------------------------------------------------
    \1\Hearings held by the Committee on Energy and Commerce since the 
Toyota recalls began include: Subcommittee on Oversight and 
Investigations, Hearing on Response by Toyota and NHTSA to Incidents of 
Sudden Unintended Acceleration (Feb. 23, 2010); Subcommittee on 
Commerce, Trade, and Consumer Protection, Hearing on NHTSA Oversight: 
The Road Ahead (Mar. 11, 2010); Subcommittee on Commerce, Trade, and 
Consumer Protection, Legislative Hearing on H.R. __, the Motor Vehicle 
Safety Act (May 6, 2010); Subcommittee on Oversight and Investigations, 
Hearing on Update on Toyota and NHTSA's Response to the Problem of 
Sudden Unintended Acceleration (May 20, 2010). In addition, the 
Subcommittee on Commerce, Trade, and Consumer Protection held a hearing 
on auto safety in 2009. Subcommittee on Commerce, Trade, and Consumer 
Protection, Auto Safety: Existing Mandates and Emerging Issues (May 18, 
2009).
---------------------------------------------------------------------------

                        Committee Consideration

    On April 29, 2010, Reps. Waxman and Rush released a 
discussion draft of the Motor Vehicle Safety Act of 2010. A 
hearing on the discussion draft was held by the Subcommittee on 
Commerce, Trade, and Consumer Protection on May 6, 2010. On May 
20, 2010, the Subcommittee on Commerce, Trade, and Consumer 
Protection met in open markup session to consider a Committee 
print of the Motor Vehicle Safety Act of 2010. The Committee 
print was approved and forwarded favorably to the full 
Committee by a voice vote.
    On May 25, 2010, H.R. 5381, the ``Motor Vehicle Safety Act 
of 2010'', was introduced in the House by Reps. Waxman, Rush, 
Dingell, Stupak, and Braley of Iowa. The full Committee met in 
open markup session on May 25, 2010, to consider the 
legislation. Subsequently, the Committee agreed to order H.R. 
5381 favorably reported to the House, amended, by a roll call 
vote of 31 yeas and 21 nays.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list each record vote 
on the motion to report legislation and amendments thereto. A 
motion by Mr. Waxman ordering H.R. 5381 reported to the House, 
amended, was approved by a record vote of 31 yeas and 21 nays. 
The following are the recorded votes taken during Committee 
consideration, including the names of those members voting for 
and against:


            Committee Oversight Findings and Recommendations

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the oversight findings and recommendations of 
the Committee are reflected in the descriptive portions of this 
report, including the need to improve auto safety and 
strengthen vehicle safety programs.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Regarding compliance with clause 3(c)(2) of rule XIII of 
the Rules of the House of Representatives, the Committee adopts 
as its own the estimate on H.R. 5381 prepared by the Director 
of the Congressional Budget Office pursuant to section 402 of 
the Congressional Budget Act of 1974.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the performance goals and 
objectives of H.R. 5381 are reflected in the descriptive 
portions of this report, including to improve auto safety and 
strengthen vehicle safety programs.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee must include a 
statement citing the specific powers granted to Congress to 
enact the law proposed by H.R. 5381. Article I, section 8, 
clauses 3 and 18 of the Constitution of the United States 
grants the Congress the power to enact this law.

                  Earmarks and Tax and Tariff Benefits

    H.R. 5381 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI of the Rules of the House of 
Representatives.

                  Federal Advisory Committee Statement

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., section 5(b) of the Federal 
Advisory Committee Act.

             Applicability of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to terms and conditions of 
employment or access to public services and accommodations. 
H.R. 5381 contains no such provisions.

                       Federal Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act of 1974 (as amended by section 101(a)(2) of the 
Unfunded Mandates Reform Act, P.L. 104-4) requires a statement 
on whether the provisions of the report include unfunded 
mandates. In compliance with this requirement the Committee 
adopts as its own the estimates of federal mandates prepared by 
the Director of the Congressional Budget Office.

                        Committee Cost Estimate

    Pursuant to clause 3(d)(2) of rule XIII of the Rules of the 
House of Representatives, the Committee adopts as its own the 
cost estimate of H.R. 5381 prepared by the Director of the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974.

               Congressional Budget Office Cost Estimate

    With respect to the requirements of clause (3)(c)(3) of 
rule XIII of the Rules of the House of Representatives and 
section 402 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
5381 from the Director of the Congressional Budget Office:

                                                     June 25, 2010.
Hon. Henry A. Waxman,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5381, the Motor 
Vehicle Safety Act of 2010.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sarah Puro.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 5381--Motor Vehicle Safety Act of 2010

    Summary: CBO estimates that H.R. 5381 would authorize net 
appropriations of $1.1 billion over the 2011-2015 period for 
the National Highway Traffic Safety Administration (NHTSA) to 
establish new safety standards for certain vehicles, to 
complete safety research, and to make certain information more 
readily available to the public. The bill would authorize fees 
to be levied on new vehicles offered for sale in the United 
States. Under the bill, those fees would be collected only if 
provided for in appropriation acts, and any collections would 
be credited to those appropriation acts. On balance, CBO 
estimates that implementing the bill would cost $876 million 
over the 2010-2015 period, assuming appropriation of the 
necessary amounts.
    Pay-as-you-go procedures apply because enacting the 
legislation could affect revenues. The bill would increase 
certain civil penalties paid by vehicle manufacturers; such 
collections are classified as revenues in the budget. Based on 
information from NHTSA about historical penalty collections, 
CBO estimates that the expanded penalties would increase 
revenues by $1 million per year over the 2011-2020 period.
    H.R. 5381 contains an intergovernmental mandate as defined 
in the Unfunded Mandates Reform Act (UMRA) because it would 
preempt state laws relating to the safety standards for motor 
vehicles established in the bill. While that preemption would 
limit the application of state law, CBO estimates that it would 
impose no duty on state, local, or tribal governments that 
would result in additional spending.
    By placing new requirements on manufacturers of motor 
vehicles, H.R. 5381 would impose private-sector mandates as 
defined in UMRA. Based on information from NHTSA and industry 
sources, CBO estimates that the aggregate cost of the mandates 
on private-sector entities would exceed the annual threshold 
established in UMRA for such mandates ($141 million in 2010, 
adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 5381 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                        --------------------------------------------------------
                                                           2011     2012     2013     2014     2015   2011- 2015
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION1

NHTSA Motor Safety Operations:
    Estimated Authorization Level......................      200      240      280      285      291       1,296
    Estimated Outlays..................................      116      193      247      275      286       1,117
Vehicle Safety Fees (Offsetting Collections):
    Estimated Authorization Level......................      -21      -81     -134     -149     -153        -538
    Estimated Outlays..................................      -21      -81     -134     -149     -153        -538
Vehicle Safety Fees (Spending):
    Estimated Authorization Level......................        0       21       81      134      149         385
    Estimated Outlays..................................        0       12       52      101      132         297
    Total Changes:
        Estimated Authorization Level..................      179      180      227      270      287       1,143
        Estimated Outlays..............................       95      124      165      227      265        876
----------------------------------------------------------------------------------------------------------------
Note: NHTSA = National Highway Traffic Safety Administration.
1CBO estimates that enacting H.R. 5831 also would increase revenues by $1 million a year over the 2011-2020
  period.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
5381 will be enacted in 2010 and that the authorized and 
estimated amounts will be appropriated each year. Estimates of 
spending are based on historical spending patterns for similar 
programs.

Spending subject to appropriation

    CBO estimates that H.R. 5381 would authorize appropriations 
of about $1.1 billion over the 2011-2015 period for certain 
NHTSA operations. The bill also would establish fees levied on 
new vehicles offered for sale in the United States. Those fees 
would be credited against appropriations. As a result, assuming 
appropriation of the specified and estimated amounts, CBO 
estimates that implementing the bill would cost $876 million 
over the 2010-2015 period.
    NHTSA Motor Safety Operations. H.R. 5381 would require 
NHTSA to create new and update existing safety regulations that 
apply to motor vehicles. The agency would be required to 
complete new research or speed up other research on several 
topics related to the safety of motor vehicles. NHTSA would 
also be required to make certain information more readily 
available to the public, expand the capabilities of its 
existing telephone call center, and submit several new reports 
to the Congress. The bill would specifically authorize the 
appropriation of $720 million over the 2011-2013 period. 
Because the legislation would authorize appropriation of 
amounts collected from the vehicle safety user fees over the 
2012-2015 period, CBO assumes that NHTSA's motor safety 
operations would continue after 2013. Based on information from 
NHTSA and assuming appropriation of the specified amounts and 
the amounts estimated to be necessary, CBO estimates that those 
operations would cost about $1.1 billion over the 2010-2015 
period.
    Vehicle Safety User Fee. The bill would establish a 
``vehicle safety user fee'' that would be imposed on 
manufacturers of new vehicles certified to meet safety 
standards for sale in the United States. The bill specifies 
that the fee would be $3 per vehicle in 2011, increasing to $9 
per vehicle in 2013. After 2013, the amount of the fee would be 
determined by the Department of Transportation. Because the fee 
would be collected and available for obligation only to the 
extent and in the amount provided in advance in appropriation 
acts, these fees would be treated as offsetting collections (a 
credit against discretionary spending).
    Starting in 2012, the bill would authorize the 
appropriation of the amounts collected from fees in the prior 
fiscal year. Based on industry forecasts, CBO estimates that 
the number of vehicles offered for sale in the United States 
will be about 12 million in 2010 and grow to about 17 million 
by 2015. Based on this information and assuming appropriation 
of the estimated amounts, CBO estimates that the fee 
collections would total $538 million over the 2011-2015 period. 
Of those amounts, we estimate that $385 million would be 
authorized to be appropriated over the 2012-2015 period. Based 
on the historical spending pattern for NHTSA programs, CBO 
estimates that implementing those provisions would result in 
net discretionary savings of $241 million over the 2010-2015 
period because spending would lag behind the expected fee 
collections (as shown in the table above).

Revenues

    H.R. 5381 would increase civil penalties paid by vehicle 
manufacturers who violate certain regulations governing motor 
vehicle safety. Collections of civil fines are recorded as 
revenues and deposited in the Treasury. Based on information 
from NHTSA about historical penalty collections and the number 
and type of violations of safety regulations, CBO estimates 
that the expanded penalties would increase revenues by $1 
million per year over the 2011-2020 period.
    Pay-as-you-go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in revenues that are subject to those 
pay-as-you-go procedures are shown in the following table.

          CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 5381 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON ENERGY AND COMMERCE ON MAY 25, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      By fiscal year, in millions of dollars--
                                                          ----------------------------------------------------------------------------------------------
                                                                                                                                         2010-    2010-
                                                            2010   2011   2012   2013   2014   2015   2016   2017   2018   2019   2020    2015     2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             NET DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact...........................      0     -1     -1     -1     -1     -1     -1     -1     -1     -1     -1       -5      -10
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Estimated impact on state, local, and tribal governments: 
H.R. 5381 contains an intergovernmental mandate as defined in 
UMRA because it would preempt state laws relating to the safety 
standards for motor vehicles established in the bill. While 
that preemption would limit the application of state law, CBO 
estimates that it would impose no duty on state, local, or 
tribal governments that would result in additional spending.
    Estimated impact on the private sector: By placing new 
requirements on manufacturers of motor vehicles, H.R. 5381 
would impose private-sector mandates as defined in UMRA. CBO 
estimates that the aggregate cost of the mandates on private-
sector entities would exceed the annual threshold established 
in UMRA for such mandates ($141 million in 2010, adjusted 
annually for inflation) in at least one of the first five years 
after the bill is enacted.

Safety user fees

    The bill would require manufacturers to pay a user fee for 
each motor vehicle certified and delivered for sale in the 
United States. The user fee would be set at $3 per vehicle in 
2011, increasing to $9 per vehicle in 2013, and subsequently 
would be adjusted for inflation as determined by the Department 
of Transportation. CBO estimates that the fees paid by 
manufacturers would amount to $538 million over the first five 
years the mandate is in effect.

Stability control systems

    H.R. 5381 would require manufacturers of large commercial 
motor vehicles to comply with new performance standards that 
are consistent with stability-enhancing technologies that 
address rollovers and loss-of-control crashes. Based on 
information from NHTSA, CBO expects that manufacturers would 
probably have to install stability control systems in new 
tractor trailers and motorcoaches to comply with the new 
standard.
    Based on information from NHTSA and industry sources on the 
number of tractor trailers produced per year, the costs of 
stability-enhancing technology, and the proportion of vehicles 
that already include such technology, CBO estimates that the 
cost of the mandate for manufacturers of tractor-trailers could 
amount to at least $100 million per year.
    According to information from industry sources, all new 
motorcoaches already include stability-enhancing technology. 
Thus, CBO expects that the incremental cost to motorcoach 
manufacturers would be minimal, if any.

Passenger motor vehicle safety standards

    The bill would direct NHTSA to establish safety standards 
for such things as configuring and labeling gear-shift 
controls, controlling vehicles with push-button ignition 
systems, and fail-safe systems for accelerator control systems. 
NHTSA estimates that 12 million to 17 million passenger motor 
vehicles will be offered for sale annually over the next five 
years. Based on information from NHTSA and industry sources 
about the cost of potential requirements, CBO estimates that 
the cost to the industry to comply with the new standards could 
be significant. Because the types of safety requirements 
implemented would be determined by future regulations, CBO 
cannot estimate the cost of the mandates.

Event data recorders

    The bill would require manufacturers to install event data 
recorders (EDRs) in all passenger vehicles sold in the United 
States beginning in model year 2015. EDRs record information 
from a vehicle before, during, and after a safety event such as 
when an air bag is deployed. Information from industry sources 
indicates that it would cost each manufacturer $6 million in 
development costs and $5.50 per car to install EDRs that meet 
existing standards. However, EDRs would have to meet standards 
to be established by NHTSA related to the types of events 
recorded, the length of the recording for each event, and the 
types of data stored. Because such standards would be 
determined by future regulations, CBO cannot estimate the cost 
of this mandate.

Hybrid or electric vehicle sounds

    H.R. 5381 would require hybrid and electric vehicles to 
generate sounds that alert blind pedestrians when such a 
vehicle is operating nearby. Based on information from NHTSA 
and industry sources on the number of vehicles that could be 
affected and the potential cost of installing such devices, CBO 
estimates that the cost of this mandate would be small relative 
to the annual threshold.

Other mandates

    CBO estimates that the costs of several private-sector 
mandates imposed by the bill would be minimal. For example, the 
legislation would require manufacturers of motor vehicles to:
           Make information about recalls available to 
        customers on the internet;
           Place information about submitting a safety-
        related complaint to NHTSA in each automobile; and
           Have a senior official responsible for 
        safety residing in the United States who would certify 
        certain information submitted to the Department of 
        Transportation.
    Estimate prepared by: Federal Spending: Sarah Puro; Federal 
Revenues: Zachary Epstein; Impact on State, Local, and Tribal 
Governments: Ryan Miller; Impact on the Private Sector: Samuel 
Wice.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

             Section-by-Section Analysis of the Legislation


Section 1. Short title; table of contents

    Section 1 designates that the short title may be cited as 
the ``Motor Vehicle Safety Act of 2010''. The section also 
provides the table of contents for the Act.

Section 2. Definitions

    Section 2 defines ``passenger motor vehicle'' for purposes 
of the bill. The term is defined to mean a motor vehicle that 
is less than 10,000 pounds gross vehicular weight, and 
specifically excludes motorcycles, trailers, and low speed 
vehicles. The term ``Secretary'' means the Secretary of 
Transportation, acting through the Administrator of the 
National Highway Traffic Safety Administration (NHTSA).

           TITLE I--VEHICLE ELECTRONICS AND SAFETY STANDARDS


Section 101. Electronics and engineering expertise

    Section 101 establishes a new Center for Vehicle 
Electronics and Emerging Technologies within NHTSA to 
strengthen expertise in new technologies across all of the 
agency's vehicle safety components, and to study the use of 
lightweight materials in vehicles. In addition, the section 
creates an honors recruitment program at NHTSA for engineers 
with an interest in vehicle safety. The Secretary is authorized 
to provide stipends for fellowships, and is directed to develop 
a plan to target recruitment at colleges and universities that 
have historically served minority populations.

Section 102. Brake override standard

    Section 102 requires NHTSA to issue a federal motor vehicle 
safety standard to mitigate unintended acceleration by 
requiring that all vehicles be equipped with a technology that 
would allow a vehicle to come to a full stop with normal 
braking pressure even if the accelerator is in operation.

Section 103. Accelerator control systems

    Section 103 requires NHTSA to update its federal motor 
vehicle safety standard governing accelerator control systems 
to require that redundancies be built into electronic throttle 
control systems to enable a driver to maintain control in the 
event that there is a failure or malfunction in the system.

Section 104. Pedal placement standard

    Section 104 directs NHTSA to consider issuing a federal 
motor vehicle safety standard to prevent pedal entrapment as a 
source of unintended acceleration by establishing minimum 
clearances for foot pedals with respect to other pedals, the 
vehicle floor, and any other potential obstructions. If NHTSA 
determines that a new rule would not be reasonable, practical, 
or appropriate, the agency must submit a report to the 
appropriate congressional committees.

Section 105. Electronic systems performance standard

    Section 105 directs NHTSA to consider issuing a federal 
motor vehicle safety standard establishing minimum performance 
standards for electronic systems in passenger vehicles. The 
section directs NHTSA to consider the findings of a study of 
electronic vehicle controls currently being undertaken by the 
National Academy of Sciences at the request of NHTSA. The 
section gives NHTSA discretion to consider rules relating to 
electronic components, the interaction of electronic 
components, or the effects of the surrounding environment on 
electronic systems. If NHTSA determines that a new rule would 
not be reasonable, practical, or appropriate, the agency must 
submit a report to the appropriate congressional committees.

Section 106. Push-button ignition systems standard

    Section 106 requires NHTSA to issue a federal motor vehicle 
safety standard to establish the standard operation and 
performance of push-button ignition systems when used by 
drivers in an emergency situation when the vehicle is in 
motion.

Section 107. Transmission configuration standard

    Section 107 requires NHTSA to update its federal motor 
vehicle safety standard for transmission configuration to 
improve the recognition of the gear selector position for 
drivers, including drivers unfamiliar with the vehicle.

Section 108. Vehicle event data recorders

    Subsection 108(a) requires NHTSA issue a rule requiring 
that all vehicles be equipped with an event data recorder by 
model year 2015 that meets the requirements of the existing 
voluntary standard issued by NHTSA. Subsection (b) requires 
that NHTSA issue a federal motor vehicle safety standard for 
the performance of event data recorders required to be 
installed in new vehicles. Subsection (c) establishes 
specifications for the rule to be issued under (b), including a 
requirement that the event data recorders store information for 
a sufficient period to cover an entire crash, including vehicle 
rollovers, a requirement that the data be accessible with 
commercially available equipment in a specified format and 
available through a standardized data access port; and a 
direction that NHTSA consider requiring such event data 
recorders to store additional data elements beyond those 
required under its existing voluntary standard. Subsection (d) 
establishes limitations on the retrieval of data collected by 
event data recorders with regard to ownership, privacy, and 
tamper resistance. The subsection provides that the data in a 
data recorder is the property of the owner or lessee of the 
motor vehicle. Subsection (e) calls on NHTSA to require that 
manufacturers disclose to the first purchaser of a vehicle, the 
existence and purpose of the event data recorder. Subsection 
(f) ensures that NHTSA has access to data contained in vehicle 
diagnostic systems and event data recorders in the course of an 
inspection conducted during an investigation pursuant to 
section 30166(c) of Title 49, United States Code.

Section 109. Commercial motor vehicle rollover prevention and crash 
        mitigation

    Section 109 directs NHTSA to initiate a rulemaking, within 
six months of enactment of the bill, to establish a federal 
motor vehicle safety standard for rollover prevention in heavy 
vehicles.

Section 110. Minimum sound requirements

    Section 110 directs NHTSA to issue a federal motor vehicle 
safety standard establishing a minimum sound that hybrid and 
electric vehicles must emit in order to enable blind and other 
pedestrians to detect a moving vehicle.

Section 111. Driver alcohol detection system research

    Section 111 authorizes $8 million per year for five years 
to support research on advanced alcohol detection technology as 
part of the Driver Alcohol Detection System for Safety (DADSS), 
a program that is currently being run by NHTSA in collaboration 
with outside organizations. The Committee recognizes the 
lifesaving potential of equipping vehicles with technology to 
detect whether a driver is at or above the legal limit of .08 
Blood Alcohol Content (BAC), and, if so, prevent the car from 
starting. The legislation only relates to the research and 
development of this technology. It is the Committee's intent 
that such technology must be developed to accurately detect the 
statutory .08 BAC limit and must be non-intrusive, fast, 
reliable, repeatable, and cost effective before its voluntary 
deployment can be considered for the general public. The 
Committee believes this research will determine whether or not 
such technology is feasible.

               TITLE II--TRANSPARENCY AND ACCOUNTABILITY


Section 201. Public availability of early warning data

    Section 201 changes the presumption of disclosure under the 
TREAD Act\2\ to require that information submitted to NHTSA by 
manufacturers through the Early Warning Reporting system be 
disclosed unless it is exempt from disclosure under the Freedom 
of Information Act. The provision further requires NHTSA to 
rewrite the agency's rule on ``Confidential Business 
Information'' with a presumption in favor of maximum public 
availability of Early Warning Reporting information. It is the 
Committee's intent to increase public access to information 
that NHTSA has improperly designated as confidential business 
information pursuant to section 553(b)(4) of title 5, U.S. Code 
in the past. Information that meets the definition of 
confidential business information under that section would 
continue to be eligible for withholding.
---------------------------------------------------------------------------
    \2\The Transportation Recall Enhancement, Accountability, and 
Documentation (TREAD) Act of 2000, Pub. L. 106-414.
---------------------------------------------------------------------------

Section 202. Improved NHTSA vehicle safety database

    Section 202(a) requires NHTSA to improve public 
accessibility of information posted to its website, including 
by ensuring that all data is searchable and can be aggregated 
and downloaded. Section 202(b) calls on NHTSA to require that 
vehicle recall information be made available to consumers on 
the Internet, searchable by vehicle identification number in a 
format that preserves consumer privacy. The subsection allows 
NHTSA to require that this information be posted on 
manufacturer websites or through other reasonable means. 
Recognizing the legitimate use of a complete Vehicle 
Identification Number (VIN) for vehicle history research, it is 
the Committee's intent that the format ensures consumer privacy 
by not posting complete VIN numbers on a public website. 
Section 202(c) requires that manufacturers make available to 
the public the copies of communications about defects and 
noncompliance that they provide to NHTSA pursuant to section 
30166(f) of title 49, U.S. Code.

Section 203. Promotion of vehicle defect reporting

    Section 203 requires that all manufacturers affix, in the 
glove compartment or in another readily accessible location in 
the car, a sticker or other means that provides information 
about how to submit a safety-related complaint to NHTSA.

Section 204. NHTSA hotline for manufacturer, dealer, and mechanic 
        personnel

    Section 204 requires that NHTSA establish a hotline by 
which manufacturer, dealer, and mechanic personnel can directly 
report potential safety defects on a confidential basis.

Section 205. Corporate responsibility for NHTSA reports

    Section 205 requires that a manufacturer have a senior 
official in the United States who is responsible for safety 
certify the accuracy and completeness of all responses to 
NHTSA's requests for information relating to safety 
investigations. This section augments the existing criminal 
penalties for making false statements by establishing civil 
penalties for knowingly providing false, misleading, or 
incomplete reports.

Section 206. Appeal of defect petition rejection

    Section 206 allows an individual whose petition for an 
investigation into a potential defect is denied to obtain 
judicial review of that decision in the appropriate court of 
appeals.

Section 207. Deadlines for rulemaking

    Section 207 establishes procedures for NHTSA to notify 
Congress if any deadline for a rulemaking provided in the bill 
cannot be met.

Section 208. Reports to Congress

    Section 208 directs the Secretary to prepare reports to 
Congress regarding the use of Early Warning Reporting data and 
regarding the quality and quantity of data collected through 
the National Automotive Sampling System. The section further 
directs the Inspector General to report to Congress on the 
operations of the Center for Vehicle Electronics and Emerging 
Technologies.

Section 209. Restriction on covered vehicle safety officials

    Section 209 limits the revolving door between NHTSA and the 
auto industry by restricting certain post-employment activities 
of NHTSA employees responsible for vehicle safety. The section 
defines ``covered vehicle safety official'' to mean any officer 
or employee of NHTSA who, within the final 12 months of his or 
her service or employment with the agency, serves or served in 
a technical or legal capacity, and whose job responsibilities 
include or included vehicle safety defect investigation, 
vehicle safety compliance, vehicle safety rulemaking, or 
vehicle safety research, and any officer or employee of NHTSA 
serving in a supervisory or management capacity over such 
officers or employees. Such officials are prevented from 
making, for one year following the end of their employment, any 
communication to or appearance before NHTSA on behalf of a 
manufacturer subject to regulation by NHTSA in connection with 
any matter involving vehicle safety on which such person seeks 
official action by any officer or employee of NHTSA.

                           TITLE III--FUNDING


Section 301. Vehicle safety user fee

    Section 301 establishes a vehicle safety user fee paid by 
the vehicle manufacturer for each vehicle certified to meet the 
federal motor vehicle safety standards for sale in the United 
States. This fee begins at $3 per vehicle and increases to $9 
per vehicle after three years. The fee would supplement 
existing appropriations and support NHTSA's vehicle safety 
programs.

Section 302. Authorization of appropriations

    Section 302 authorizes appropriations for NHTSA's vehicle 
safety programs. The authorization would provide $200 million 
in FY2011, $240 million in FY2012, and $280 million in FY2013.

                 TITLE IV--ENHANCED SAFETY AUTHORITIES


Section 401. Civil penalties

    Section 401 increases the civil penalty NHTSA can seek per 
violation from the current $5,000 to $25,000, and sets a 
maximum civil penalty of $200 million.

Section 402. Imminent hazard authority

    Section 402 provides NHTSA with the authority to expedite a 
recall order in the case of an imminent hazard of death or 
serious injury. Independent experts consulted by the Committee 
have expressed the view that judicial review of an order under 
49 U.S.C. Sec. 30118(b), including an imminent hazard order 
under new paragraph (3), would occur under 5 U.S.C. Sec. 706 of 
the Administrative Procedure Act, which has an arbitrary and 
capricious standard of review. In litigation that occurred more 
than 35 years ago, U.S. v. General Motors Corp., 518 F.2d 420 
(D.C. Cir. 1975), the D.C. Circuit appears to have taken the 
position that enforcement of section 30118 orders under 49 
U.S.C. Sec. 30163 would be in a de novo enforcement proceeding, 
rather than in a challenge to the agency's order based upon a 
review of the agency's administrative record underlying the 
order. The agency, for reasons that are not stated, did not 
challenge the Court's approach. Given developments in 
administrative law since that decision, there is uncertainty 
about the appropriate procedures the agency should follow in 
issuing imminent hazard orders and the standard of review that 
courts should apply in enforcement actions. New subparagraph 
(B) of section 30118(b)(3) is intended to provide the agency an 
opportunity to take a fresh look at this issue. The procedures 
that the agency promulgates must be consistent with both the 
requirements of the bill and the Administrative Procedure Act.

                     TITLE V--ADDITIONAL PROVISIONS


Section 501. Preemption of State law

    Section 501 overturns preemption provisions in NHTSA 
regulations promulgated during the years 2005 through 2008 and 
prevents NHTSA from explicitly preempting state tort law 
without congressional direction.

                       Explanation of Amendments

    The following amendments were adopted by the full Committee 
during consideration of H.R. 5381 and are also described in the 
section-by-section analysis of the legislation. Each amendment 
was approved by a voice vote of the Committee:
    Mr. Waxman offered an amendment that contained four 
provisions. The amendment directs the newly established Center 
for Electronics and Emerging Technologies to study lightweight 
materials, including by implementing the Plastic and Composite 
Intensive Vehicle Safety Roadmap. The amendment limits the 
Center to spending 20% or less of its budget on this aspect of 
its work. The amendment inserts a new section 109 into the bill 
that directs NHTSA to issue safety standards for rollover 
prevention in heavy vehicles in a timely manner. The amendment 
inserts a new section 209 into the bill that limits the 
revolving door between NHTSA and the auto industry by 
restricting certain post-employment activities of NHTSA 
employees responsible for vehicle safety. And the amendment 
inserts a new section 501 into the bill that overturns 
preemption provisions in NHTSA regulations during the years 
2005-2008 and prevents NHTSA from explicitly preempting state 
tort law without congressional direction.
    Mr. Stearns offered an amendment that directs the Secretary 
to issue a standard establishing a minimum sound that hybrid 
and electric vehicles must emit in order to enable blind and 
other pedestrians to detect a moving vehicle.
    Mr. Sarbanes offered an amendment to fund research into the 
feasibility and potential benefits of in-vehicle technology to 
prevent alcohol impaired driving.

         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 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.
     * * * * * * *
30107. Restriction on covered vehicle safety officials.
30108. Vehicle safety user fee.

           *       *       *       *       *       *       *


SUBCHAPTER I--GENERAL

           *       *       *       *       *       *       *


Sec. 30104. Authorization of appropriations

  There is authorized to be appropriated to the Secretary 
[$98,313,500] 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.] 
and to carry out the Motor Vehicle Safety Act of 2010--
          (1) $200,000,000 for fiscal year 2011; 
          (2) $240,000,000 for fiscal year 2012; and 
          (3) $280,000,000 for fiscal year 2013.

           *       *       *       *       *       *       *


Sec. 30107. Restriction on covered vehicle safety officials

  (a) In General.--For a period of 1 year after the termination 
of his or her service or employment, a covered vehicle safety 
official shall not knowingly make, with the intent to 
influence, any communication to or appearance before any 
officer or employee of the National Highway Transportation 
Safety Administration on behalf of any manufacturer subject to 
regulation under this chapter in connection with any matter 
involving vehicle safety on which such person seeks official 
action by any officer or employee of the National Highway 
Transportation Safety Administration.
  (b) No Effect on Section 207.--This section does not expand, 
contract, or otherwise affect the application of any waiver or 
criminal penalties under section 207 of title 18, United States 
Code.
  (c) Effective Date.--This section shall apply to covered 
vehicle safety officials who terminate service or employment 
with the National Highway Transportation Safety Administration 
after the date of enactment of the Motor Vehicle Safety Act of 
2010.
  (d) Definition.--In this section, the term ``covered vehicle 
safety official'' means any officer or employee of the National 
Highway Transportation Safety Administration who, within the 
final 12 months of his or her service or employment with the 
agency, serves or served in a technical or legal capacity, and 
whose job responsibilities include or included vehicle safety 
defect investigation, vehicle safety compliance, vehicle safety 
rulemaking, or vehicle safety research, and any officer or 
employee of the National Highway Transportation Safety 
Administration serving in a supervisory or management capacity 
over such officers or employees.
  (e) Special Rule for Detailees.--For purposes of this 
section, a person who is detailed from one department, agency, 
or other entity to another department, agency, or other entity 
shall, during the period such person is detailed, be deemed to 
be an officer or employee of both departments, agencies, or 
such entities.
  (f) Exception for Testimony.--Nothing in this section shall 
prevent an individual from giving testimony under oath, or from 
making statements required to be made under penalty of perjury.

Sec. 30108. Vehicle safety user fee

  (a) Establishment of Fund.--There is established in the 
Treasury of the United States a separate account for the 
deposit of fees under this section to be known as the Vehicle 
Safety Fund.
  (b) Assessment and Collection of Vehicle Safety Fees.--
Beginning 1 year after the date of enactment of the Motor 
Vehicle Safety Act of 2010, the Secretary shall assess and 
collect, in accordance with this section, a vehicle safety user 
fee from the manufacturer for each motor vehicle that is 
certified as compliant with applicable motor vehicle safety 
standards pursuant to section 30115.
  (c) Deposit.--The Secretary shall deposit any fees collected 
pursuant to subsection (b) into the Vehicle Safety Fund 
established by subsection (a).
  (d) Use.--Amounts in the Vehicle Safety Fund shall be 
available to the Secretary, as provided in subsection (i), for 
making expenditures to meet the obligations of the United 
States to carry out vehicle safety programs of the National 
Highway Traffic Safety Administration.
  (e) Vehicle Safety User Fee.--
          (1) First, second, and third year fees.--The fee 
        assessed under this section for the first three years 
        shall be as follows:
                  (A) $3 for each vehicle certified during the 
                first year in which such fees are assessed.
                  (B) $6 for each vehicle certified during the 
                second year in which such fees are assessed.
                  (C) $9 for each vehicle certified during the 
                third year in which such fees are assessed.
          (2) Subsequent years.--The fee assessed under this 
        section for each vehicle certified after the third year 
        in which such fees are assessed shall be adjusted by 
        the Secretary by notice published in the Federal 
        Register to reflect the total percentage change that 
        occurred in the Consumer Price Index for all Urban 
        Consumers for the 12 month period ending June 30 
        preceding the fiscal year for which fees are being 
        established.
          (3) Payment.--The Secretary shall require payment of 
        fees under this section on a quarterly basis and not 
        later than one quarter after the date on which the fee 
        was assessed.
  (f) Rulemaking.--Not later than 9 months after the date of 
enactment of the Motor Vehicle Safety Act of 2010, the 
Secretary shall promulgate rules governing the collection and 
payment of fees pursuant to this section.
  (g) Limitations.--
          (1) In general.--Fees under this section shall not be 
        collected for a fiscal year unless appropriations for 
        vehicle safety programs of the National Highway Traffic 
        Safety Administration for such fiscal year (excluding 
        the amount of fees appropriated for such fiscal year) 
        are equal to or greater than the amount of 
        appropriations for vehicle safety programs of the 
        National Highway Traffic Safety Administration for 
        fiscal year 2010.
          (2) Authority.--If the Secretary does not assess fees 
        under this section during any portion of a fiscal year 
        because of paragraph (1), the Secretary may assess and 
        collect such fees, without any modification in the 
        rate, at a later date in such fiscal year 
        notwithstanding the provisions of subsection (e)(3) 
        relating to the date fees are to be paid.
  (h) Collection of Unpaid Fees.--In any case where the 
Secretary does not receive payment of a fee assessed under this 
section within 30 days after it is due, such fee shall be 
treated as a claim of the United States Government subject to 
subchapter II of chapter 37 of title 31.
  (i) Authorization of Appropriations.--In addition to funds 
appropriated under section 30104, there is authorized to be 
appropriated from the Vehicle Safety Fund to the Secretary for 
the National Highway Traffic Safety Administration for each 
fiscal year in which fees are collected under subsection (b) an 
amount equal to the total amount collected during the previous 
fiscal year from fees assessed pursuant to this section. Such 
amounts are authorized to remain available until expended.
  (j) Crediting and Availability of Fees.--Fees authorized 
under subsection (b) shall be collected and available for 
obligation only to the extent and in the amount provided in 
advance in appropriations Acts.

SUBCHAPTER II--STANDARDS AND COMPLIANCE

           *       *       *       *       *       *       *


Sec. 30118. Notification of defects and noncompliance

  (a) * * *
  (b) Defect and Noncompliance Proceedings and Orders.--(1) * * 
*

           *       *       *       *       *       *       *

          (3) Imminent hazard orders.--If the Secretary of 
        Transportation in making a decision under subsection 
        (a) also initially decides that such defect or 
        noncompliance presents a substantial likelihood of 
        death or serious injury to the public, the Secretary 
        shall notify such manufacturer. The opportunity for the 
        manufacturer to present information, views, and 
        arguments in accordance with paragraph (1) shall be 
        provided as soon as practicable but not later than 10 
        calendar days after the initial decision. The Secretary 
        shall expedite proceedings for a decision and order 
        under paragraph (1) and shall, as appropriate, issue an 
        imminent hazard order.

           *       *       *       *       *       *       *


SUBCHAPTER IV--ENFORCEMENT AND ADMINISTRATIVE

           *       *       *       *       *       *       *


Sec. 30162. Petitions by interested persons for standards and 
                    enforcement

  (a) * * *

           *       *       *       *       *       *       *

  (f) Judicial Review.--A decision of the Secretary to deny a 
petition filed under subsection (a)(2) of this section is 
agency action subject to judicial review under chapter 7 of 
title 5, and such action shall not be considered committed to 
agency discretion within the meaning of section 701(a)(2) of 
such title. A person aggrieved by the denial of a petition may 
obtain judicial review by filing an action in the court of 
appeals of the United States for the circuit in which the 
person resides or has its principal place of business or the 
United States Court of Appeals for the District of Columbia 
Circuit not more than 180 days after notice of the denial of 
the petition is published in the Federal Register.

           *       *       *       *       *       *       *


Sec. 30165. Civil penalty

  (a) Civil Penalties.--
          (1) In general.--A person that violates any of 
        section 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] $25,000 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] $200,000,000.

           *       *       *       *       *       *       *

          (3) Section 30166.--[A person] Except as provided in 
        paragraph (4), 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] $25,000 per violation 
        per day. The maximum penalty under this paragraph for a 
        related series of daily violations is [$15,000,000] 
        $200,000,000.
          (4) False, misleading, or incomplete reports.--A 
        person who knowingly and willfully submits materially 
        false, misleading, or incomplete information to the 
        Secretary, after certifying the same information as 
        accurate and complete under the certification process 
        established pursuant to section 30166(o), shall be 
        subject to a civil penalty of not more than $5,000 per 
        day. The maximum penalty under this paragraph for a 
        related series of daily violations is $5,000,000.
          (5) Section 30107.--A person who violates section 
        30107 shall be subject to a civil penalty of not more 
        than $55,000.

           *       *       *       *       *       *       *

  [(c) Considerations.--In determining the amount of a civil 
penalty or compromise, the appropriateness of the penalty or 
compromise to the size of the business of the person charged 
and the gravity of the violation shall be considered.]
  (c) Relevant Factors in Determining Amount of Penalty or 
Compromise.--In determining the amount of a civil penalty or 
compromise, the nature, circumstances, extent, and gravity of 
the violation shall be considered. This shall include, where 
appropriate, the nature of the defect or noncompliance, the 
severity of the risk of injury, the occurrence or absence of 
injury, the number of motor vehicles or items of motor vehicle 
equipment distributed with the defect or noncompliance, the 
existence of an imminent hazard, the appropriateness of such 
penalty in relation to the size of the business of the person 
charged, recognizing the potential for undue adverse economic 
impacts on small businesses, and such other factors as 
appropriate.

           *       *       *       *       *       *       *


Sec. 30166. Inspections, investigations, and records

  (a) * * *

           *       *       *       *       *       *       *

  (c) Matters That Can Be Inspected and Impoundment.--In 
carrying out this chapter, an officer or employee designated by 
the Secretary of Transportation--
          (1) * * *

           *       *       *       *       *       *       *

          (3) at reasonable times, in a reasonable way, and on 
        display of proper credentials and written notice to an 
        owner, operator, or agent in charge, may--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) inspect with reasonable promptness that 
                vehicle or equipment, including any electronic 
                data contained within the vehicle's diagnostic 
                system or event data recorder; and

           *       *       *       *       *       *       *

  (f) Providing Copies of Communications About Defects and 
Noncompliance.--A manufacturer shall give the Secretary of 
Transportation, and make available on a publicly accessible 
Internet website, a true or representative copy of each 
communication to the manufacturer's dealers or to owners or 
purchasers of a motor vehicle or replacement equipment produced 
by the manufacturer about a defect or noncompliance with a 
motor vehicle safety standard prescribed under this chapter in 
a vehicle or equipment that is sold or serviced.

           *       *       *       *       *       *       *

  (m) Early Warning Reporting Requirements.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Handling and utilization of reporting elements.--
                  (A) * * *

           *       *       *       *       *       *       *

                  [(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.]
                  (C) Disclosure.--The information provided to 
                the Secretary pursuant to this subsection shall 
                be disclosed publicly unless exempt from 
                disclosure under section 552(b) of title 5.

           *       *       *       *       *       *       *

  (o) Corporate Responsibility for Reports.--The Secretary 
shall require, for each company submitting information to the 
Secretary in response to a request for information in a safety 
or compliance investigation under this chapter, that a senior 
official responsible for safety residing in the United States 
certify that--
          (1) the signing official has reviewed the submission; 
        and
          (2) based on the official's knowledge, the submission 
        does not contain any untrue statement of a material 
        fact or omit to state a material fact necessary in 
        order to make the statements made, in light of the 
        circumstances under which such statements were made, 
        not misleading.

           *       *       *       *       *       *       *


PART C--INFORMATION, STANDARDS, AND REQUIREMENTS

           *       *       *       *       *       *       *


CHAPTER 323--CONSUMER INFORMATION

           *       *       *       *       *       *       *


Sec. 32302. Passenger motor vehicle information

  (a) * * *

           *       *       *       *       *       *       *

  (d) Motor Vehicle Defect Reporting Information.--
          (1) Rulemaking required.--Within 1 year after the 
        date of enactment of the Motor Vehicle Safety Act of 
        2010 the Secretary shall prescribe regulations that 
        require passenger motor vehicle manufacturers to affix, 
        in the glove compartment or in another readily 
        accessible location on the vehicle, a sticker, decal, 
        or other device that provides, in simple and 
        understandable language, information about how to 
        submit a safety-related motor vehicle defect complaint 
        with the National Highway Traffic Safety 
        Administration. The information may not be placed on 
        the label required by section 3 of the Automobile 
        Information Disclosure Act (15 U.S.C. 1232).
          (2) Application.--The requirements established under 
        paragraph (1) shall apply to passenger motor vehicles 
        manufactured in model years beginning more than 1 year 
        after the date on which a final rule is published under 
        that paragraph.

           *       *       *       *       *       *       *


                            DISSENTING VIEWS

                                Summary

    We, the undersigned Members of the Committee on Energy and 
Commerce, offer the following comments on H.R. 5381, the Motor 
Vehicle Safety Act of 2010. The version adopted by the 
Committee is an improvement over the original draft and there 
are several provisions we support. We nonetheless oppose H.R. 
5381 first, on process grounds, and second, based on 
insurmountable policy differences on key provisions. These 
disagreements stem from our philosophically different 
approaches on how to improve automobile safety that will result 
in significant savings of lives as well as our difference of 
opinion regarding the appropriate size and scope of the Federal 
government.
    The process was less than ideal. The original draft of this 
legislation was written without Republican input, nor were 
Republicans invited to participate in any stakeholder meetings 
as the legislation was drafted. We are confident that, had our 
participation been sought from the onset, some of the 
improvements included in the final draft would have been 
resolved earlier and we could have focused solely on our policy 
differences.
    In the end, we did not receive final text of H.R. 5381 
until 12 hours prior to Committee consideration. We also 
received neither notice nor text of the ``manager's amendment'' 
until less than 10 hours before the markup. Moreover, the 
manager's amendment contained controversial provisions the 
Committee never examined or debated, and the Committee was not 
provided the benefit of technical analysis.
    Among the unvetted provisions is a prohibition on NHTSA 
employees working for an automobile manufacturer after leaving 
the Agency's employment. This provision, as drafted, is a much 
broader prohibition than current NHTSA policy and will 
potentially apply to all employees--even the most clerical of 
positions. While we disagree on the policy of limiting free 
choice in employment, if the provision is meant to preemptively 
avoid undue influence by former employees on NHTSA, it is not 
clear why the prohibition should not also apply to post-NHTSA 
employment with any entity involving the automobile industry, 
including the plaintiff's bar or automobile advocacy groups. 
Another unvetted provision requires electronic stability 
control for commercial vehicles, a requirement that may not be 
feasible. Finally, the manager's amendment inserted a provision 
repealing preambles issued by the Agency (pursuant to Executive 
Order) under the previous Administration regarding the Agency's 
view on the preemptive effect of its regulations on State tort 
claims. This provision is discussed in more detail below.
    The Majority's desire to expedite the legislation through 
Committee precluded Committee Members receiving the 
Administration's views, technical comments, or analysis of the 
legislation. With only one legislative hearing, many provisions 
were never discussed, including provisions that fundamentally 
change or reverse existing rules and regulations.

                             Title by Title

    Our primary policy differences and objections concern three 
issues: (1) eliminating agency discretion to determine the most 
appropriate motor vehicle safety standards and replacing it 
with Congressional mandates, (2) funding authorization levels 
and associated revenue-raising taxes, and (3) fundamentally 
changing the manner in which the Freedom of Information Act 
(FOIA) operates with respect to the automobile industry.

                                TITLE I

    We support the creation of the Center for Vehicle 
Electronics and Emerging Technologies to coordinate and further 
develop the Agency's internal expertise in these areas. 
However, the Honors Recruitment Program includes an 
objectionable provision directing NHTSA to recruit based on 
preferred educational institutions. The Federal government 
should seek the best qualified candidates, regardless of the 
candidate's alma mater.
    Additionally, we support the mandate for research into the 
use of lightweight materials in vehicles including plastics and 
composites. However, we note the Subcommittee on Commerce, 
Trade, and Consumer Protection--the same subcommittee that 
considered the discussion draft preceding H.R. 5381--
distributed for consideration a discussion draft of legislation 
that would rewrite Federal chemical regulation under the Toxic 
Substances Control Act (TSCA). Under that draft, it is unclear 
whether the end uses of the chemicals used in lightweight 
materials for vehicles would be permissible without EPA 
approval. If such changes to TSCA are enacted, the 
authorization and any appropriation for the program mandated by 
H.R. 5381 should be evaluated in that context. Taxpayers should 
not fund research for vehicle products that may not be 
permissible for use in vehicles.
    As a general matter, the mandated rulemakings and reviews 
in Title I raise serious concerns about Congress substituting 
its judgment and priorities for those of the Federal automobile 
safety agency--NHTSA--on how best to improve vehicle safety. 
NHTSA has proven its ability to prioritize and issue vehicle 
safety rules that save the most lives. Our primary concern is 
that burdening the Agency with Congressional priorities to 
issue rules and standards that will result in limited or no 
safety improvement will likely result in the delay of NHTSA's 
own priorities to issue rules and standards that would save 
more lives. That is not an improvement in safety.
    Given that the Committee has not received any analysis from 
NHTSA on the probable cost of the legislative mandates and any 
related calculations of future lives saved, any notion that the 
mandates of H.R. 5381 are good policy rests on the belief these 
mandates will have greater proven safety benefits than any 
rules and changes NHTSA and the industry would adopt on their 
own. That may not be the case. As the law of economics dictate, 
if these mandates increase the cost of cars substantially--as 
many experts believe they will--cars will be less affordable 
and consumers will delay their purchase of new vehicles. When 
consumers delay purchases of new cars and newer used cars, they 
forego the benefit of the safety features available in newer 
model cars. Consequently they drive older, less safe cars. 
Ensuring safer cars are affordable will reduce deaths and 
should be the policy goal.
    Regarding the mandates to promulgate specific standards, we 
note that vehicle safety defects account for less than five 
percent of all vehicular fatalities. Driver behavior and driver 
error are the overwhelming causes of all highway deaths and 
should be addressed accordingly. That is not to say we object 
to improving vehicle safety, but as noted above, mandates 
should be commensurate with the costs and benefits of adopting 
them, and public resources should be directed to the most 
effective methods to reduce fatalities. The Administration 
understands this and has proposed to redirect $50 million from 
the State seatbelt grants program towards a new program 
combating distracted driving, which causes an estimated 6,000 
unnecessary deaths per year. This will undoubtedly be more 
effective at saving lives than the mandated standards this 
legislation requires.
    Of the particular mandates, Section 108 is most 
troublesome. Aside from the fact that mandating installation of 
event data recorders (EDRs) is unnecessary because of the 
widespread adoption by automobile manufacturers, the 
requirement raises serious privacy concerns, particularly in 
combination with the government access rights also mandated 
herein.
    The initial question is whether a need for this requirement 
exists. Approximately 80 to 85 percent of all passenger 
vehicles in the U.S. market have these devices already 
installed (more than a statistically relevant portion) and 
manufacturers have indicated they will continue to expand their 
deployment of EDR technology.
    There is a rational argument that the data, in order to be 
meaningful, should be consistent with regard to the type of 
information collected, and that the information should be 
easily retrievable. NHTSA in fact has addressed these issues. 
In 2006, NHTSA promulgated a final rule specifying ``uniform 
requirements for the accuracy, collection, storage, 
survivability, and retrievability'' of EDR data for 
manufacturers that voluntarily choose to adopt the use of EDRs. 
The purpose of these standards was to enhance the analytical 
properties of EDR data and thus ``contribute to safer vehicle 
designs and a better understanding of the circumstances and 
causation of crashes and injuries.'' Given that NHTSA is both 
capable of identifying what data collection elements should be 
included in EDR designs as well as promulgating mandatory 
safety standards, we believe NHTSA--the relevant safety 
experts--are fully capable of making such EDR elements 
mandatory if a need exists. There is no legitimate reason we 
see that Congress should overrule the judgment of the relevant 
safety experts and mandate these devices on all vehicles.
    Coupled with a mandatory government access provision, this 
mandate is yet another intrusion into the lives of private 
citizens. While the bill specifically states the information 
recorded on an EDR is the property of the consumer, that 
ownership is rendered meaningless by the provisions granting 
NHTSA access to redacted information in the vague case of 
``improving motor vehicle safety,'' or full access to all data 
(including personally identifiable information) if retrieved in 
connection with a defect investigation--without the owner's 
consent in either case. Making this more worrisome is that such 
information may be released under a FOIA request. Consequently, 
the proponents of this bill make all citizens subjects of 
Federal government data collection regardless of whether they 
consent or not. Citizens will have no choice under this 
government edict but to purchase a vehicle with a compulsory 
recording device.
    Compounding these privacy concerns is the open-ended nature 
of the directed rulemaking. In particular, we are concerned the 
legislative language permits NHTSA to require the capturing of 
location information on EDRs.
    There are certainly safety benefits to be derived from 
EDRs, but it is our strong belief that it is not the Federal 
government's place to mandate both the installation and, more 
importantly, unfettered access to information ``owned'' by the 
consumer.
    In a similar privacy concern, the mandate of section 109 
nudges closely to the Big Brother style of government. The 
provision would transfer $40 million over 5 years from NHTSA's 
general budget to fund research into the ``more widespread 
deployment of in-vehicle technology to prevent alcohol-impaired 
driving.'' While the purpose of the program is a noble goal--
reducing the occurrence of drunk driving, it raises a number of 
broader public policy concerns.
    The most prevalent in-vehicle anti-drunk-driving technology 
is the breathalyzer ignition lock. These devices prevent 
individuals from operating a vehicle if their blood alcohol 
content (BAC) exceeds 0.08 percent. Mandating such a technology 
in the vehicle of every citizen may reduce both accidents 
related to and the incidence of drunk-driving behavior, but it 
would also be a significant step toward an Orwellian 
government. Additionally, furthering such a policy would be an 
infringement on States' rights. At this time there is not a 
Federal standard on legal blood alcohol content. Each State is 
rightfully empowered to determine such limits, and most States 
have adopted the Federal recommendation tied to Highway Trust 
Fund grants. Allocating $40 million dollars to researching 
federally-mandated breathalyzer ignition locks or similar 
technology would be a move toward a de facto Federal standard 
aimed at driver behavior but disguised as a safety mandate. The 
possibility of requiring every American to blow into a device 
every time they start their cars is a policy debate that should 
be settled by the States.

                                TITLE II

    Section 201 of the Motor Vehicle Safety Act of 2010 imposes 
unprecedented new disclosure requirements on private automobile 
companies while eliminating the functioning reporting system 
already in place. This section is a cause for concern because 
of the massive potential for waste it will create. Current 
regulatory protections for confidential business information 
(CBI) are well established and have been thoroughly litigated. 
This legislation statutorily nullifies these protections 
because certain petitioners were denied changes during the 
previous Administration and in court. Requiring NHTSA to issue 
new regulations regarding CBI--in accordance with the views of 
those previously denied litigants--is an abuse of legislative 
power and creates a waste of taxpayer resources in rulemakings 
and legal proceedings.
    Under current regulations, confidential information sent to 
NHTSA by manufacturers can only be revealed to the public if 
the confidentiality of that information is preserved, or if it 
is necessary to carry out needed safety research and 
development. Section 201 eliminates these basic protections of 
proprietary information, stating that all information currently 
sent to NHTSA must be publicly disclosed. This includes items 
such as aggregated warranty claims data, field reports, and 
production information. The NHTSA Chief Counsel previously 
stated in regulation that disclosing such proprietary 
information ``is likely to cause substantial harm to the 
competitive position of the manufacturer . . . [and] likely to 
impair the government's ability to obtain necessary information 
in the future'' (49 C.F.R. 512 Appendix C)(2009).
    If publicly disclosed, this data can be used to discern 
proprietary information such as a company's corporate 
structure, product operability, products lines, or product 
marketability. Publicly disclosing such proprietary information 
could easily place a company at a competitive disadvantage, 
misrepresent a product's risk, or generate frivolous and 
wasteful lawsuits.
    Section 201 further strips away CBI protections in 
subsection (d), where the bill specifically restricts 
production information from the FOIA common sense protections 
for CBI. Nothing in FOIA authorizes an Agency to create a 
category of information that must be disclosed to the public; 
in other words, a category of information that is exempt from 
the FOIA disclosure exemptions. This is a fundamental change to 
the manner in which FOIA operates and should not be rewritten 
on an ad hoc basis. We believe that this conflict in statutes 
will breed wasteful litigation and further limit fair 
competition in the U.S. automobile industry.
    It should also be noted that these provisions will damage 
automobile safety. Now that NHTSA is directed to abolish most 
of its protections on CBI, companies will show far less 
initiative in providing NHTSA data that may not be required if 
such information will be disclosed publicly. These provisions 
could deprive NHTSA of information once shared freely and 
confidentially with it by the private sector.
    In a time when two out of the three U.S. automobile 
manufacturers had to be ``bailed out'' by the Government, 
legislation should focus on enhancing the competitiveness of 
these industries while enhancing their safety. Section 201 
fulfills neither goal, and instead will result in the opposite.
    Section 202 of the bill requires NHTSA to update the 
functionality of its publicly-accessible database for vehicle 
safety complaints. While we support an increase in 
functionality to the database, the effectiveness of the 
database could be further improved by adding provisions that 
increase both coordination with industry and database accuracy. 
Notifying manufacturers when a defect is reported would enhance 
a manufacturer's ability to respond swiftly to potential safety 
hazards if they have not already been alerted to the potential 
problem. However, information is only an asset to consumers 
when it is accurate and legitimate; including knowingly false 
or incorrect information in the database undermines the goal of 
improving consumer knowledge. Allowing manufacturers the 
ability to seek correction or elimination of inaccurate reports 
would increase the reliability and usefulness of the database, 
as well as discourage use of the public database as an anti-
competitive tool. NHTSA should be required to establish a 
process for the removal of claims proven to be erroneous or 
fraudulent. This is not a novel approach as the Subcommittee, 
the Committee, and the House and Senate approved a similar 
function in the Consumer Product Safety Commission's consumer 
complaint database in the Consumer Product Safety Improvement 
Act of 2008.
    Section 202(b) also raises a number of concerns. The 
provision requires NHTSA to make vehicle recall information 
available to the public on the Internet and searchable by 
vehicle identification number (VIN). While this could be a 
useful tool to consumers, there is little consideration given 
to the cost-benefit of the broad approach used in H.R. 5381. 
There are no boundaries on the length of time manufacturers 
must store recall data, potentially requiring manufacturers to 
store recall data indefinitely. This could result in an 
unwieldy and less useful database while simply wasting 
resources--costs that will inevitably be passed along to 
consumers. This type of broad data retention will not improve 
safety. Similarly, as the broader goal of this legislation is 
purportedly improved safety, storing and publishing recall data 
for non-safety-related defects adds no safety value. Just as 
storing antiquated safety recall data will muddle the 
database's functional purpose, so too will the inclusion of 
non-safety-related recall data.

                               TITLE III

    While our objections to provisions in Titles I and II are 
strong, our strongest objections to H.R. 5381 are based in 
Title III.
    H.R. 5381 imposes a new tax (misleadingly labeled as a 
``user fee'') on manufacturers for each vehicle certified for 
sale in America--a tax that will undoubtedly be passed on to 
the consumer. Although misleadingly labeled a ``user fee,'' 
this assessment of $3 per vehicle (rising to $9 per vehicle in 
three years and adjusted to inflation thereafter) is a tax 
because manufacturers do not receive any services from NHTSA in 
return for this payment. While this user tax may appear modest, 
it increases the tax burden in a manner that would not help the 
automobile industry or consumers. Consumers and shareholders 
will end up paying the tax, and together with the bill's other 
costly mandates, will unnecessarily increase the cost of 
vehicles. This would likely diminish sales, thereby depriving 
some consumers of newer, safer vehicles and dampen the 
prospects that GM and Chrysler will repay the funds used to 
bail them out. Further, once imposed, the government can easily 
increase the per car tax to the detriment of industry and 
consumers alike. History indicates that Congress never 
decreases ``user fees'' but instead treats them as a new 
funding mechanism to offset increased spending.
    If Congress insists on paying for the excessive new funding 
levels in this legislation with a user fee, a more appropriate 
``user fee'' would be assessed on public access to the consumer 
database. This type of fee would more appropriately align costs 
with benefit derived from access to the information.
    In addition to imposing an unjustified tax, H.R. 5381 
dramatically increases NHTSA's funding level by $150 million 
over 3 years to a total of $280 million without any explanation 
or direction regarding how the Agency should spend the 
additional funding. We cannot support this wasteful and bloated 
spending, especially given that the bill increases the Agency's 
funding far beyond what even the Administration has requested. 
The Secretary of Transportation and the Administrator of NHTSA 
testified that under the President's budget NHTSA would have 
the resources necessary to fulfill its mission. NHTSA seeks 
authorization to hire 66 additional employees, a 10 percent 
increase in the employment level at the Agency, including 22 
new employees for vehicle safety. Not only will it be difficult 
to grow the staff by 22 additional employees in one year, but 
the Administration has yet to determine how these 22 new 
vehicle safety employees will be utilized. We see no evidence 
that NHTSA needs more staff, or that it would wisely and 
effectively spend the massive increase in funding this bill 
provides.\1\
---------------------------------------------------------------------------
    \1\The one potential budgetary savings could come from the mandated 
EDR provision we oppose. With unfettered government access to EDR data, 
it is reasonable to question the ongoing need to fund the National 
Automotive Sampling Survey (NASS) NHTSA uses to analyze crash data.
---------------------------------------------------------------------------
    We see no justification for the new tax or the excessive 
funding levels mandated by this bill, particularly given the 
high tax burden on the American people and the government's 
massive spending binge and enormous deficits. We find ironic 
the arguments justifying this giant leap in NHTSA funding. We 
frequently heard our counterparts describe NHTSA as lacking 
resources because it is overburdened and is therefore often 
unable to finish rulemakings in a timely fashion, yet this 
legislation--similar to previous Congressional mandates--will 
force NHTSA to set aside its priorities in favor of 
Congressional projects. This legislation will consume NHTSA 
resources for the next 3 years as it requires no less than 10 
rulemakings, reports, and studies--several of which are 
rewrites of existing law. We question the wisdom of devoting a 
disproportionate amount of resources to issue new or amend 
existing standards for acceleration-related problems that are 
extremely rare and are addressed by voluntary initiatives.

                                TITLE IV

    We oppose the bill's excessive increase in civil penalty 
liability. It would increase the maximum penalty per violation 
from $5,000 to $25,000 and the overall penalty cap from $16.4 
million to $200 million. Although we would support modest 
increases in both the maximum per-violation penalty and the 
cap, the bill increases these amounts far more than necessary 
to deter violations. Like other components of this bill, the 
penalty increases seem designed to punish the industry rather 
than to ensure compliance with the law.
    The new penalty amount seems disproportionate given the 
average cost of a vehicle and the profit margin per vehicle. 
When TREAD became law in 2000, it provided for a maximum 
penalty per violation of $5,000. The average cost of a new car 
at the time was just under $25,000, making the maximum penalty 
about one-fifth the cost of a new car. Today the average cost 
of a new car is about $30,000, making the new maximum penalty 
nearly as high as the cost of a new car. This five-fold 
increase in the maximum penalty is excessive, especially given 
that the profit margin on the average vehicle is significantly 
lower than the current maximum penalty of $5,000.
    The bill increases the penalty cap even more dramatically 
than it increases the maximum penalty per violation. We do not 
see any justification for a more than twelve-fold increase in 
the cap. The bill would provide for adequate deterrence with a 
significantly lower cap, especially in light of the damage to a 
manufacturer's reputation, market share, profitability, and 
stock price that would surely accompany any violation arguably 
warranting such a severe total penalty.
    We also note that the cap applies to all businesses, 
regardless of size. Many small businesses would find a $200 
million penalty impossible to pay, and would face the prospect 
of closing or filing for bankruptcy if required to pay. 
Although the bill's new provision setting forth relevant 
factors in determining the penalty helps to alleviate some of 
our concerns regarding the size of the cap, the cap as proposed 
is punitive and potentially crippling to small businesses.
    Finally, the new maximum penalty amounts and cap are 
particularly harsh for reporting violations. Reporting 
violations that do not involve defects warranting a recall and 
clearly do not call for such high penalties. We are not aware 
of any evidence that untimely reporting is a widespread problem 
warranting a massive increase in the maximum penalty per 
reporting violation or the cap applicable to such penalties.

                                TITLE V

    Perhaps the single most objectionable provision added to 
this legislation at markup was inserted in the manager's 
amendment. Section 501 can be characterized as nothing other 
than a gift to trial lawyers across America. It negates all 
preambles stating an intent to preempt State tort law issued by 
NHTSA under the Bush Administration pursuant to Executive 
Order. It further bars NHTSA from issuing future statements of 
preemptive intent unless specifically authorized by Congress. 
In sum, it eliminates defenses based on conflict preemption--a 
principle of the Supremacy Clause of the U.S. Constitution 
(Article VI, Clause 2). As such, it is effectively an end-run 
around both prior regulations and, more importantly, around the 
Constitution.
    Placing aside any discussion of whether this is an 
appropriate use of Congressional authority, this provision 
creates a mind-boggling litigation scenario. For instance, 
under 49 C.F.R. Sec. 571.202 (FMVSS 202), a head restraint must 
be installed at a minimum height of 700mm from the seat. As a 
result of this amendment, a plaintiff could file suit against a 
manufacturer for installing the head restraint too high. 
Without State tort preemption, such a suit would be permitted 
to move forward even though it is impossible to comply with 
both the Federal mandatory safety standard (head restraint 
installed at 700mm) and the plaintiff's tort theory of 
liability (head restraint too high).
    In an ironic twist, the amendment may actually clash with 
the safety requirements legislated elsewhere in this bill. If 
NHTSA mandates brake override, and that mandatory safety 
standard is not declared preemptive of State tort laws, auto 
manufacturers may be sued for personal injury if the vehicle 
abruptly stops because the driver accidently hit both pedals at 
the same time (the exact need stated for the brake override).
    This is both fundamentally unfair and a waste of judicial 
resources in requiring a court to spend time hearing a case 
based on such a theory. Manufacturers that are required to 
comply with Federal safety standards must be shielded from 
liability for such compliance.
    For the reasons discussed herein, we, the undersigned, do 
not support H.R. 5381, the Motor Vehicle Safety Act, as 
amended.

                                   Joe Barton, Ranking Member.
                                   John Shimkus.
                                   Cliff Stearns.
                                   George Radanovich.
                                   Steve Buyer.
                                   Roy Blunt.
                                   Robert E. Latta.
                                   Phil Gingrey.
                                   Marsha Blackburn.
                                   Steve Scalise.
                                   Sue Myrick.
                                   Joseph R. Pitts.
                                   John Sullivan.
                                   Ed Whitfield.
                                   Lee Terry.

                                  
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