[Federal Register Volume 65, Number 220 (Tuesday, November 14, 2000)]
[Rules and Regulations]
[Pages 68108-68110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29033]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Parts 578 and 592

[Docket No. NHTSA 2000-8253]
RIN 2127-AI18


Civil Penalties; Registered Importers of Vehicles Not Originally 
Manufactured to Conform to the Federal Motor Vehicle Safety Standards

AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.

ACTION: Final rule.

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SUMMARY: This document amends NHTSA's regulations on civil penalties 
and registered importers to reflect related amendments to 49 U.S.C. 
30165(a) and 30120(g)(1) made by sections of the Transportation Recall 
Enhancement, Accountability, and Documentation (TREAD) Act, signed by 
the president on November 1, 2000. Under these amendments, the civil 
penalty for a single violation of 49 U.S.C. Chapter 301--Motor Vehicle 
Safety is increased from $1,100 to $5,000, and the maximum civil 
penalty for a related series of violations is increased from $925,000 
to $15,000,000.

[[Page 68109]]

However, if 49 U.S.C. 30166 (inspections, investigations, and records) 
or a regulation thereunder has been violated, the maximum penalty is 
$5,000 per violation per day, and the maximum penalty for a related 
series of daily violations is $15,000,000.
    In addition, the TREAD Act extends from 8 to 10 years the period 
for which a manufacturer must remedy without charge a noncompliance or 
safety-related defect. This also requires conforming amendments to the 
remedial obligations of Registered Importers.

DATES: Effective date: November 1, 2000.

FOR FURTHER INFORMATION CONTACT: Taylor Vinson, Office of Chief 
Counsel, NHTSA, telephone (202) 366-5263, facsimile (202) 366-3820, 
electronic mail ``[email protected]'', 400 Seventh Street, SW, 
Washington, DC 20590.

SUPPLEMENTARY INFORMATION: 49 CFR Part 578 Civil Penalties is NHTSA's 
regulation setting forth the civil penalties authorized by each of the 
statutes that the agency enforces. It reflects adjustments to penalties 
in statutes that NHTSA administers, pursuant to the Federal Civil 
Penalty Monetary Penalty Inflation Adjustment Act of 1990 (Pub. L. 101-
410), as amended by the Debt Collection Improvement Act of 1996 (Pub. 
L. 104-134). The principal motor vehicle safety statute is 49 U.S.C. 
Chapter 301--Motor Vehicle Safety. The civil penalties that are have 
been adopted for each violation of Chapter 301, or a regulation 
promulgated under its authority, are a minimum of $1,100 for each 
violation, and a maximum of $925,000 for a related series of violations 
(49 CFR 578.6(a)). Penalties for violations of Chapter 301 are 
authorized by 49 U.S.C. 30165(a).
    On November 1, 2000, the Transportation Recall Enhancement, 
Accountability, and Documentation (TREAD) Act was signed into law (PL 
106-414). Section 5(a) of the TREAD Act amends Section 30165 to 
establish a new Section 30165(a)(1), which increases the maximum 
penalty to $5,000 for each violation and the maximum penalty to 
$15,000,000 for a related series of violations. These penalties are 
effective as of the date of enactment of the amendment. We are 
publishing a conforming amendment to 49 CFR 578.6(a) to reflect the 
statutory increase in these penalties. This amendment will redesignate 
Section 578.6(a) as 578.6(a)(1) in order to accommodate the separate 
civil penalty the TREAD Act establishes for violations of Section 
30166.
    Heretofore, Section 30165(a) has authorized the same penalties for 
violations of Section 30166 relating to investigations, inspections, 
and records, as for violations of other sections of Chapter 301. This 
has also been reflected in 49 CFR 578.6(a). However, Section 5(a)(2) of 
the TREAD Act amends Section 30165(a) to add a new section (a)(2), 
Section 30166. The new section provides that any person who violates 
Section 30166 or any regulation issued thereunder 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 for such violation has been set at $5,000 per violation 
per day. The maximum penalty for a related series of daily violations 
is $15,000,000. We are therefore amending Section 578.6(a) to add a new 
section (a)(2) implementing Section 5(a)(2) of the TREAD Act. These 
penalties apply as of the date of enactment to obligations existing 
under Section 30166 that were unchanged by the TREAD Act. They also 
apply to violations of new Sections added by TREAD. For example, this 
includes Reporting of Defects in Motor Vehicles and Products in Foreign 
Countries under 30166(l). They will also apply to violations of new 
rules to be published under TREAD such as Early Warning Reporting 
Requirements (30166(m)) Sale or Lease of Defective or Noncompliant Tire 
(30166(n)) upon promulgation of those regulations.
    Subsection (1) of section 4, Remedies Without Charge, of the TREAD 
Act amends 49 U.S.C. 30120(g)(1) by increasing from 8 to 10 calendar 
years the period for which the manufacturer of a motor vehicle or an 
item of motor vehicle equipment other than a tire must provide a remedy 
without charge of a noncompliance or safety-related defect. This 
requires a corresponding change in 49 CFR Part 592, Registered 
Importers of Vehicles Not Originally Manufactured to Conform to the 
Federal Motor Vehicle Safety Standards. Sec. 592.6(g)(2)(i) relieves a 
Registered Importer (RI) of the obligation to furnish a remedy without 
charge of a noncompliance or safety-related defect in a vehicle if the 
vehicle's first sale occurred more than 8 calendar years before the 
date of notification by the RI. Remedy without charge is also not 
required if notification is provided by the original manufacturer and 
the date of first purchase of the vehicle is more than 8 years from the 
date of notification. We are amending these provisions to change 8 
years to 10 years in accordance with Sec. 4(1) of the TREAD Act. The 
statutory amendment also has the effect of requiring RIs to ensure that 
the service insurance policies provided with each vehicle cover a 10-
year period.

EFFECTIVE DATE: The amendments restate statutory terms that in effect 
modified certain regulations; the amendments became effective on 
November 1, 2000. Therefore, no prior notice and opportunity to comment 
are required. The penalties apply to violations of 49 U.S.C. Chapter 
301 occurring on and after the effective date of the statutory 
amendment.

Rulemaking Analyses and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

    We have considered the impact of this rulemaking action under E.O. 
12866 and the Department of Transportation's regulatory policies and 
procedures. This rulemaking document was not reviewed under E.O. 12866, 
``Regulatory Planning and Review.'' This action is limited to the 
restatement of statutory terms that increased civil penalties for 
violations of 49 U.S.C. Chapter 301 and extended the period of remedy 
without charge. It has been determined to be not ``significant'' under 
the Department of Transportation's regulatory policies and procedures.

Regulatory Flexibility Act

    We have also considered the impacts of this notice under the 
Regulatory Flexibility Act. I certify that this rule will have no 
significant economic impact on a substantial number of small entities. 
The following is my statement providing the factual basis for the 
certification (5 U.S.C. Sec. 605(b)). The restatement of statutory 
terms primarily affect manufacturers and Registered Importers of motor 
vehicles. Manufacturers of motor vehicles and motor vehicle equipment, 
and Registered Importers, are generally not small businesses within the 
meaning of the Regulatory Flexibility Act.
    Further, small organizations and governmental jurisdictions will 
not be significantly affected as the price of motor vehicles ought not 
to change as the result of this rule. As explained above, this action 
is limited to restating statutory terms in our regulations.
    Finally, this action will not affect our civil penalty policy under 
the Small Business Regulatory Enforcement Fairness Act (62 FR 37115, 
July 10, 1997). We shall continue to consider the appropriateness of 
the penalty to the size of the business charged.

[[Page 68110]]

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1980 (P.L. 96-
511), we state that there are no requirements for information 
collection associated with this rulemaking action.

National Environmental Policy Act

    We have also analyzed this rulemaking action under the National 
Environmental Policy Act and determined that it has no significant 
impact on the human environment.

Executive Order 13132 (Federalism)

    Executive Order 13132 on ``Federalism'' requires us to develop an 
accountable process to ensure ``meaningful and timely input'' by State 
and local officials in the development of ``regulatory policies that 
have federalism implications.'' The E.O. defines this phrase to include 
regulations ``that have substantial direct effects on the States, on 
the relationship between the national government and the States, or on 
the distribution of power and responsibilities among the various levels 
of government.'' This final rule, which increases permissible civil 
penalties and the length of the period for which remedy must be 
provided without charge, will not have substantial direct effect on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, as specified in E.O. 13132.

Civil Justice Reform

    This rule does not have a retroactive or preemptive effect. 
Judicial review of the rule may be obtained pursuant to 5 U.S.C. 702. 
That section does not require that a petition for reconsideration be 
filed prior to seeking judicial review.

Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (P.L. 104-4) requires 
agencies to prepare a written assessment of the cost, benefits and 
other effects of proposed or final rules that include a Federal mandate 
likely to result in the expenditure by State, local, or tribal 
governments, in the aggregate, or by the private sector, of more than 
$100 million annually. Because this rule will not have a $100 million 
effect, no Unfunded Mandates assessment will be prepared.

List of Subjects in 49 CFR Parts 578 and 592

    Imports, Motor vehicle safety, Motor vehicles, Rubber and rubber 
products, Tires, Penalties.

    Accordingly, 49 CFR chapter V is amended as follows:

PART 578--CIVIL PENALTIES

    1. The authority citation for 49 CFR part 578 is revised to read as 
follows:

    Authority: Pub. L. 106-414, 114 Stat. 1800 (49 U.S.C. 30165); 
delegation of authority at 49 CFR 1.50.

    2. Section 578.6 is amended by revising paragraph (a) to read as 
follows:


Sec. 578.6  Civil penalties for violations of specified provisions of 
Title 49 of the United States Code.

    (a)(1) Motor vehicle safety. A person who violates any of sections 
30112, 30115, 30117 through 30122, 30123(d), 30125(c), 30127, or 30141 
through 30147 of Title 49 of the United States Code or a regulation 
prescribed under any of those sections is liable to the United States 
Government for a civil penalty of not more than $5,000 for each 
violation. A separate violation occurs for each motor vehicle or item 
of motor vehicle equipment and for each failure or refusal to allow or 
perform an act required by any of those sections. The maximum civil 
penalty under this paragraph for a related series of violations is 
$15,000,000.
    (2) Section 30166. A person who violates section 30166 of Title 49 
of the United States Code or a regulation prescribed under that section 
is liable to the United States Government for a civil penalty for 
failing or refusing to allow or perform an act required under that 
section or regulation. The maximum penalty under this paragraph is 
$5,000 per violation per day. The maximum penalty under this paragraph 
for a related series of daily violations is $15,000,000.
* * * * *

PART 592--REGISTERED IMPORTERS OF VEHICLES NOT ORIGINALLY 
MANUFACTURED TO CONFORM TO THE FEDERAL MOTOR VEHICLE SAFETY 
STANDARDS

    1. The authority citation for 49 CFR part 592 is revised to to read 
as follows:

    Authority: Pub. L. 106-414, 114 Stat. 1800 (49 U.S.C. 322(a), 49 
U.S.C. 30141-47); delegation of authority at 49 CFR 1.50.


Sec. 592.6  [Amended]

    2. In 49 CFR 592.6(g)(2)(i), remove the words ``8 calendar years'' 
and ``8 years'' and add, in their place, the words ``10 calendar 
years.''

    Issued on: November 8, 2000.
Sue Bailey,
Administrator.
[FR Doc. 00-29033 Filed 11-13-00; 8:45 am]
BILLING CODE 4910-59-P