[Federal Register Volume 65, Number 248 (Tuesday, December 26, 2000)]
[Rules and Regulations]
[Pages 81414-81419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32527]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 578

[Docket No. NHTSA-2000-8510]

RIN 2127-AI24


Motor Vehicle Safety: Criminal Penalty Safe Harbor Provision

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

ACTION: Interim final rule; request for comments.

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SUMMARY: This Interim Final Rule implements Section 5(b) of the 
Transportation Recall Enhancement, Accountability, and Documentation 
(TREAD) Act by specifying the time period and manner for correction of 
improper reports and failures to report to the Secretary of 
Transportation (Secretary) relating to safety defects in motor vehicles 
and motor vehicle equipment. Section 5(b) adds a new section, which 
provides for criminal liability in circumstances where a person 
violated reporting requirements with the intention of misleading the 
Secretary with respect to safety-related defects in motor vehicles or 
motor vehicle equipment that have caused death or serious bodily 
injury. To encourage the correction of incorrect or incomplete 
information that was reported or should have been reported to the 
Secretary, Section 5 includes a ``safe harbor'' provision that offers 
protection from criminal prosecution to persons who meet certain 
criteria. To qualify for this protection, the person must have lacked 
knowledge at the time of the violation that the violation would result 
in an accident causing death or serious bodily injury and must correct 
any improper reports or failures to report to the Secretary within a 
reasonable time. Section 5 directs the Secretary to establish by 
regulation what constitutes a ``reasonable time'' and a sufficient 
manner of ``correction,'' within 90 days of the enactment of the TREAD 
Act, which occurred on November 1, 2000.

DATES: Effective date: This rule is effective January 25, 2001.
    Comments: Comments must be received on or before February 26, 2001.

ADDRESSES: You may submit your comments in writing to: Docket 
Management, Room PL-401, 400 Seventh Street, SW., Washington, DC, 
20590. You may also submit your comments electronically by logging onto 
the Dockets Management System website at http://dms.dot.gov. Click on 
``Help & Information'' or ``Help/Info'' to obtain instructions for 
filing the document electronically. Regardless of how you submit your 
comments, include the docket number of this document on your comments. 
You may call Docket Management at 202-366-9324. You may visit the 
Docket from 10:00 a.m. to 5:00 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Steven Cohen, Office of Chief Counsel, 
NCC-10, National Highway Traffic Safety Administration, 400 Seventh 
Street, SW., Washington, DC, 20590, Telephone (202) 366-5263, Fax: 202-
366-3820.

SUPPLEMENTARY INFORMATION:

I. Background

    On November 1, 2000, the TREAD Act, Public Law 106-414, was enacted 
in response, in part, to congressional concerns related to 
manufacturers' inadequate reporting to NHTSA of information regarding 
possible defects in motor vehicles and motor vehicle equipment, 
including tires. The TREAD Act expands 49 U.S.C. 30166, Inspections, 
investigations, and records, and provides for the Secretary to issue 
various rules thereunder. The authority to carry out Chapter 301 of 
Title 49 United States Code, under which the rules directed by the 
TREAD Act are to be issued, has been delegated to NHTSA's Administrator 
pursuant to 49 CFR 1.50.
    Section 5(b) of the TREAD Act, adds a new section, 49 U.S.C. 30170, 
to Chapter 301. Section 30170(a)(1) establishes criminal liability for 
a ``person who violates section 1001 of title 18 with respect to the 
reporting requirements of [49 U.S.C.] section 30166, with the specific 
intention of misleading the Secretary with respect to motor vehicle or 
motor vehicle equipment safety related defects that have caused death 
or serious bodily injury to an individual. . . .'' Section 1001 of 
title 18 provides that whoever ``. . . knowingly and willfully--(1) 
falsifies, conceals, or covers up by any trick, scheme, or device a 
material fact; (2) makes any materially false, fictitious, or 
fraudulent statement or representation; or (3) makes or uses any false 
writing or document knowing the same to contain any materially false, 
fictitious, or fraudulent statement or entry'' in a matter within the 
jurisdiction of the federal government is subject to a fine and 
imprisonment.
    Section 30170(a)(2)(A) contains a ``safe harbor'' provision, which 
states that a

    person described in paragraph (1) [of 49 U.S.C. 30170(a)] shall 
not be subject to criminal penalties * * * if (1) at the time of the 
violation, such person does not know that the violation would result 
in an accident causing death or serious bodily injury; and (2) the 
person corrects any improper reports or failure to report within a 
reasonable time.

This safe harbor applies only to criminal liability related to 49 
U.S.C. 30170(a)(1). Section 30170(a)(2)(B) requires the Secretary to 
``establish by regulation what constitutes a reasonable time for the 
purposes of [49 U.S.C. 30170(a)(2)(A)] and what manner of correction is 
sufficient for the purposes of [49 U.S.C. 30170(a)(2)(A)].''
    NHTSA is promulgating this regulation on a reasonable time and on 
the manner of correction as an interim final rule to comply with 49 
U.S.C. 30170(a)(2)(B)'s mandate that the final rule be issued ``within 
90 days of the date of the enactment of this section.'' In order to 
implement the statutorily-mandated final rule concerning the safe 
harbor from criminal penalties under 49 U.S.C. 30170, we are amending 
49 CFR

[[Page 81415]]

Part 578. As an interim final rule, the regulation will be effective 30 
days after the date of publication in the Federal Register. However, 
comments may be submitted for a period of 60 days from the date of 
publication in the Federal Register. NHTSA will review and respond to 
all timely comments.

II. Discussion

A. Violations

    49 U.S.C. 30170 creates a new criminal liability that is dependent 
on a violation of 18 U.S.C. 1001. The TREAD Act does not provide for 
the Secretary to engage in rulemaking with respect to the elements of 
18 U.S.C. 1001 or the elements of the new 49 U.S.C. 30170. Accordingly, 
this rule does not do so.

B. Reasonable Time for Correction

    The TREAD Act requires NHTSA to establish by regulation what 
constitutes a ``reasonable time'' for a person to correct any improper 
reports or failure to report. To delineate what constitutes a 
reasonable time, NHTSA considered its own rules and experiences with 
the current motor vehicle and motor vehicle equipment defects program. 
NHTSA also inquired about potentially comparable safe harbor rules and 
policies used by other federal agencies. NHTSA considered the 
Environmental Protection Agency's (EPA) evaluation of its Audit Policy, 
64 FR 26745 (May 17, 1999), and the Final Policy Statement for its 
Audit Policy: ``Incentives for Self-policing: Discovery, Disclosure, 
Correction and Prevention of Violation,'' 65 FR 19618 (April 11, 2000); 
the Internal Revenue Service Chief Counsel's Directives Manual: 
Voluntary Disclosure, CCDM 31.3.3; and the Federal Aviation 
Administration's (FAA) Advisory Circulars on Aviation Safety Action 
Programs, AC120-66A, the Voluntary Disclosure Reporting Program, AC00-
58, and the Aviation Safety Reporting Program, AC00-46D.
    In considering the number of days available for compliance with the 
reasonable time requirement by a person seeking protection under the 
safe harbor provision, NHTSA considered various factors. First, the 
agency's mission under Chapter 301 is motor vehicle safety. Consistent 
with its mission, the agency needs to collect complete and accurate 
information in order to decide whether to open investigations of 
potential defects, to conduct those investigations efficiently and 
expeditiously, and to assure appropriate oversight of ongoing recalls. 
The reasonable time period should minimize the time that NHTSA is 
performing its safety responsibilities using an incorrect or incomplete 
factual record. Similarly, the time period must generate an urgency 
that will compel potential correctors to come forward before it 
expires. NHTSA has determined that this is best done by offering the 
protection of the safe harbor provision for a period that is not longer 
than reasonably necessary for such a person to decide to come forward 
and to do so.
    Second, NHTSA does not intend to discourage the submission of 
corrected reports and reports that should have been submitted but were 
not submitted. This is not a new concept. Historically, NHTSA has 
allowed late submissions of information required under section 30166 
where a late submission is justified. In order to encourage the use of 
the safe harbor provision, the time period must be long enough for the 
provision to be usable in real world situations. This includes allowing 
enough time for persons who would be willing to take corrective actions 
under the safe harbor provision to accept the responsibility associated 
with it and to come forward. We are mindful that the correction of a 
false report may involve complexities that do not arise in the instance 
of the initial report. There may be some contentious review and 
consultation within the company and/or with counsel, which may be 
compounded where a person may have to obtain or check information 
maintained by various corporate organizations and possibly contractors, 
and additional time may be required to prepare fully correct statements 
that conflict with the manufacturer's statement of record.
    NHTSA has concluded that, in order to satisfy the ``reasonable 
time'' element of the safe harbor provision, the person seeking 
protection from criminal liability must correct each improper (i.e., 
incorrect, incomplete, or misleading) report required by 49 U.S.C. 
30166, or a regulation, requirement, request or order issued 
thereunder, not more than twenty-one (21) calendar days after the date 
of the report to the agency and must correct each failure to report not 
more than twenty-one (21) calendar days after the information or 
documents were due to be sent to or received by the agency, as the case 
may be, pursuant to 49 U.S.C. 30166 or a regulation, requirement, 
request or order issued thereunder. These reports include, for example, 
answers and documents submitted in response to information requests 
propounded by NHTSA's Office of Defects Investigation or Special Orders 
issued by NHTSA's Chief Counsel, as well as information required to be 
submitted under the ``early warning'' provisions of the TREAD Act and 
the regulations to be issued thereunder.
    The time period of ``not more than 21 days'' is similar to the 
window of opportunity of ``within 21 days (or within such shorter time 
as may be required by law)'' offered by the EPA in Section D(3) of its 
recently amended Audit Policy, which the EPA published as a Final 
Policy Statement at 65 FR 19618 (April 11, 2000). Under its Audit 
Policy, the EPA will waive or substantially reduce the ``gravity'' 
based component of civil penalties for violators of environmental 
requirements who discover, disclose, and correct these violations (the 
EPA's Audit Policy provides no basis for waiving civil liability 
associated with the ``economic benefits'' of an environmental violation 
or for any criminal liability). NHTSA did not include any language 
referring to shorter time periods from other legal requirements in this 
rule because Chapter 301 does not contain shorter periods that are 
applicable.
    The time period of 21 days in the final Audit Policy, as published 
at 65 FR 19618 (April 11, 2000), is different from the original time 
period of 10 days used by the EPA in the previous version of its Audit 
Policy, as published at 60 FR 66705 (December 22, 1995). The EPA's 
recent changes to Audit Policy were based on its evaluation of the 
Audit Policy in use for the preceding three years, which the EPA 
published at 64 FR 26745 (May 17, 1999). One result of this evaluation 
was that the EPA increased the time period for coming forward to report 
violations from 10 days to 21 days after discovery of the violation 
because it found that ``the 10-day time frame [was] a common reason for 
ineligibility under the [initial] Policy'' and thus that ``the 10-day 
disclosure period may be a significant impediment to increased use of 
the Audit Policy'' by violators who otherwise would have come forward 
or did come forward soon after the 10 day period expired. The EPA's 
study of its Audit Policy concluded the ``10 days is not sufficient 
time to analyze and decide whether to disclose potential violations, 
especially for larger corporations with several layers of management.'' 
NHTSA believes that the EPA's appraisal of what time period constitutes 
a ``reasonable time'' for correction is reasonably applicable to the 
safe harbor provision of Section 30170(a)(2).
    Finally, NHTSA believes that the starting point for calculating the 
21-day period should be consistent with the underlying predicate crime. 
The predicate crime involves a violation of 18 U.S.C. 1001. As noted 
above, the

[[Page 81416]]

standard under 18 U.S.C. 1001 is knowingly and willfully. Also, 49 
U.S.C. 30170 applies to a person who acts ``with the specific intention 
of misleading the Secretary.'' Thus, any person subject to possible 
criminal liability under 49 U.S.C. 30170 would have known of the 
impropriety at the time that the person executed the improper report or 
failed to report to NHTSA. In light of this knowledge, the time period 
will run from date of the report to NHTSA or the date of the failure to 
report to NHTSA.
    In order for the correction to be timely, it must be received by 
NHTSA on or before the 21st day, not merely mailed or otherwise sent 
before that day. NHTSA has also determined that the integrity of the 
process and the 21-day due date requires that submissions be made by a 
means which permits the sender to verify promptly that the correction 
was in fact received by NHTSA and the day it was received by NHTSA. 
These means include certified mail, an overnight delivery service, or 
delivery by hand.

C. Sufficient Manner of Correction

    The TREAD Act requires NHTSA to establish by regulation what 
constitutes a ``correction'' for a person to obtain protection under 
the safe harbor provision. To delineate what constitutes a correction, 
NHTSA considered its own rules and experiences with the current motor 
vehicle and motor vehicle equipment defects program. NHTSA has 
concluded that, in order for a correction of improper reports or a 
failure to report to be sufficient under the safe harbor provision's 
protections from criminal penalties, it must accomplish the following: 
(1) Identify with specificity all items of information and documents 
that were improper or were not provided and (2) correct all reporting 
improprieties and/or failures for which the protections of the safe 
harbor provision are sought, including providing NHTSA with all missing 
or corrected documents and information. Therefore, each person seeking 
protection from criminal penalties under 49 U.S.C. 30170 must sign and 
submit to NHTSA one or more reports identifying each previous item of 
information and/or document that was improper or not provided to NHTSA 
and is related to a required submission under 49 U.S.C. 30166, or a 
regulation, requirement, request or order issued thereunder, for which 
protection is sought. This report must also identify the specific 
predicate under which the missing or improper report should have been 
submitted (e.g., the report was required by a specific regulation, a 
NHTSA Information Request, a NHTSA Special Order, etc.). Further, the 
report must include or be accompanied by the complete and correct 
information and documents that should have been submitted.
    Because NHTSA collects a range of information under 49 U.S.C. 
30166, corrections could be made by a wide range of persons. For a 
corporation to make a correction, it must be signed by an authorized 
person (ordinarily the individual officer or employee who submitted the 
information and/or who should have provided missing information, or 
someone in the company with authority to make such a submission). If 
the person making the correction cannot submit the correct information, 
the individual must provide a full detailed description of that 
information or of the content of those documents and the reason why he 
or she cannot provide them to NHTSA (e.g., the information or documents 
are not in the individual's possession or control).

Regulatory Analyses and Notices

1. 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 was not reviewed under E.O. 12866, 
``Regulatory Planning and Review.'' This rulemaking is not considered 
``significant'' under the Department of Transportation's regulatory 
policies and procedures. The impacts of this rule are expected to be so 
minimal as not to warrant preparation of a full regulatory evaluation 
because this provision only involves a safe harbor for criminal 
sanctions associated with a criminal provision that NHTSA does not 
expect to be invoked often.

2. Regulatory Flexibility Act

    We have also considered the impact 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. 
As stated above, this provision only involves a safe harbor for 
criminal penalties which NHTSA does not expect to be invoked often.

3. National Environmental Policy Act

    We have analyzed this proposal for the National Environmental 
Policy Act and determined that it would not have any significant impact 
on the quality of the human environment.

4. Paperwork Reduction Act

    NHTSA has determined that this interim final rule will impose new 
collection of information burdens within meaning of the Paperwork 
Reduction Act of 1995 (PRA). Pursuant to 5 CFR 1320.13, Emergency 
processing, NHTSA is asking OMB for a temporary emergency clearance for 
this collection. In this interim final rule, NHTSA begins the process 
of requesting a 3-year clearance for this collection.
    Under the PRA, before an agency submits a proposed collection of 
information to OMB for approval, it must publish a document in the 
Federal Register providing a 60-day comment period and otherwise 
consult with members of the public and affected agencies concerning 
each proposed collection of information. The OMB has promulgated 
regulations describing what must be included in such a document. Under 
OMB's regulations (5 CFR 1320.8(d)), an agency must ask for public 
comment on the following:
    (i.) Whether the proposed collection of information is necessary 
for the proper performance of the functions of the agency, including 
whether the information will have practical utility;
    (ii.) The accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used;
    (iii.) How to enhance the quality, utility, and clarity of the 
information to be collected; and
    (iv.) How to minimize the burden of the collection of information 
on those who are to respond, including the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of responses.
    In compliance with these requirements, NHTSA asks public comment on 
the collection of information in this interim final rule.
Reporting an improper Report or a Failure to Report.
    Type of Request--New.
    OMB Clearance Number--None assigned.
    Form Number--This proposed collection of information would not use 
any standard forms.
    Requested Expiration Date of Approval--Three years from the date of 
the approval of the collection.
    Summary of the Collection of Information--Any person seeking 
protection from criminal liability under 49 U.S.C. 30170 related to an 
improper report or failure to report pursuant to 49

[[Page 81417]]

U.S.C. 30166, or a regulation, requirement, request or order issued 
thereunder, will be required to report the following information to 
NHTSA: (1) Each improper item of information or document and each 
failure to report an item of information or document that was required 
under 49 U.S.C. 30166, or a regulation, requirement, request or order 
issued thereunder, (2) the specific predicate under which the missing 
or improper report should have been provided, and (3) complete and 
correct reports that include all information that should have been 
submitted, including relevant documents that were not previously 
submitted to NHTSA or, if the person cannot do so, provide a full 
detailed description of that information or of the content of those 
documents and the reason why the individual cannot provide them to 
NHTSA.
    Description of the Need for the Information and Use of the 
Information--This information collection was mandated by Section 5 of 
the TREAD Act. The information collected will provide NHTSA with 
information the agency should have received previously and will also 
promptly provide the agency with correct information to do its 
analyses, such as, for example, conducting tests or drawing conclusions 
about possible safety-related defects. NHTSA anticipates using this 
information to help it to accomplish its statutory assignment of 
identifying safety-related defects in motor vehicles and motor vehicle 
equipment and, when appropriate, seeking safety recalls.
    Description of the Likely Respondents, Including Estimated Number 
and Proposed Frequency of Response to the Collection of Information--
This new collection of information would apply to any person who seeks 
a ``safe harbor'' from potential criminal liability for knowingly and 
willfully acting with the specific intention of misleading the 
Secretary by an act or omission that violates section 1001 of title 18 
with respect to the reporting requirements of 49 U.S.C. 30166, 
regarding a safety-related defect in motor vehicles or motor vehicle 
equipment that caused death or serious bodily injury to an individual. 
Thus, the collection of information could apply to the manufacturers, 
and any officers or employees thereof, who respond or have a duty to 
respond to an information provision requirement pursuant to 49 U.S.C. 
30166 or a regulation, requirement, request or order issued thereunder.
    We believe that there will be very few criminal prosecutions under 
section 30170, given its elements. Accordingly, it is not likely to be 
a substantial motivating force for a submission of a proper report. We 
estimate that no more than nine such persons a year would invoke this 
new collection of information, and we do not anticipate receiving more 
that one report a year from any particular person.
    Estimate of the Total Annual Reporting and Recordkeeping Burdens 
Resulting From the Collection of Information--As stated before, we 
estimate that no more than nine persons a year would be subject to this 
new collection of information. Incrementally, we estimate that on 
average it will take no longer than two hours for a person to compile 
and submit the information we are requiring to be reported. Therefore, 
the total burden hours on the public per year is estimated to be a 
maximum of 18 hours.
    Since nothing in this rule would require those persons who submit 
reports pursuant to this rule to keep copies of any records or reports 
submitted to us, recordkeeping costs imposed would be zero hours and 
zero costs.

5. 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 rule, which defines terms in a safe harbor 
provision for criminal penalties for a person who acts with the 
specific intention of misleading the Secretary regarding safety defects 
in motor vehicles or motor vehicle equipment, 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. This rule making does not have those implications 
because it applies to those persons who are required by 49 U.S.C. 30166 
to provide information to NHTSA.

6. 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.

7. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (Pub. 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 tribunal 
governments, in the aggregate, or by the private sector, of more than 
$100 million annually. Because this rule will not have a $100 million 
annual effect, no Unfunded Mandates assessment is necessary and one 
will not be prepared.

Plain Language

    Executive Order 12866 and the President's memorandum of June 1, 
1998, require each agency to write all rules in plain language. 
Application of the principles of plain language includes consideration 
of the following questions:

--Have we organized the material to suit the public's needs?
--Are the requirements in the rule clearly stated?
--Does the rule contain technical language or jargon that is not clear?
--Would a different format (grouping and order of sections, use of 
headings, paragraphing) make the rule easier to understand?
--Would more (but shorter) sections be better?
--What else could we do to make the rule easier to understand?

    If you have any responses to these questions, please include them 
in your comments.

Interim Final Rule

    NHTSA is promulgating this regulation on a reasonable time and on 
the manner of correction as an interim final rule to comply with 
Section 5(b)'s mandate that the final rule be issued ``within 90 days 
of the enactment of the [TREAD Act].'' As an interim final rule, the 
regulation contained herein will be effective 30 days after the date of 
publication in the Federal Register. However, as described below, 
comments may be submitted for a period of 60 days from the date of 
publication in the Federal Register. NHTSA will review and respond to 
all timely comments, as appropriate.

Submission of Comments

How Can I Influence NHTSA's Thinking on This Rule?
    In developing this interim final rule, we tried to address the 
anticipated

[[Page 81418]]

concerns of all our stakeholders. Your comments will help us improve 
this rule. We invite you to provide different views on it, new 
approaches we have not considered, new data, how this rule may affect 
you, or other relevant information. We welcome your views on all 
aspects of this rule, but request comments on specific issues 
throughout this document. We grouped these specific requests near the 
end of the sections in which we discuss the relevant issues. Your 
comments will be most effective if you follow the suggestions below:
    Explain your views and reasoning as clearly as possible.
     Provide solid information to support your views.
     If you estimate potential numbers of reports or costs, 
explain how you arrived at the estimate.
     Tell us which parts of the rule you support, as well as 
those with which you disagree.
     Provide specific examples to illustrate your concerns.
     Offer specific alternatives.
     Refer your comments to specific sections of the rule, such 
as the units or page numbers of the preamble, or the regulatory 
sections.
     Be sure to include the name, date, and docket number with 
your comments.
How Do I Prepare and Submit Comments?
    Your comments must be written and in English. To ensure that your 
comments are correctly filed in the Docket, please include the docket 
number of this document in your comments.
    Your comments must not be more than 15 pages long. (49 CFR 553.21). 
We established this limit to encourage you to write your primary 
comments in a concise fashion. However, you may attach necessary 
additional documents to your comments. There is no limit on the length 
of the attachments.
    Please submit two copies of your comments, including the 
attachments, to Docket Management at the address given above under 
ADDRESSES.
    Comments may also be submitted to the docket electronically by 
logging onto the Dockets Management System website at http://dms.dot.gov. Click on ``Help & Information'' or ``Help/Info'' to obtain 
instructions for filing the document electronically.
How Can I Be Sure That My Comments Were Received?
    If you wish Docket Management to notify you upon its receipt of 
your comments, enclose a self-addressed, stamped postcard in the 
envelope containing your comments. Upon receiving your comments, Docket 
Management will return the postcard by mail.
How Do I Submit Confidential Business Information?
    If you wish to submit any information under a claim of 
confidentiality, you should submit copies of your complete submission, 
including the information you claim to be confidential business 
information, to the Chief Counsel (NCC-30), NHTSA, at the address given 
above under FOR FURTHER INFORMATION CONTACT. In addition, you should 
submit two copies, from which you have deleted the claimed confidential 
business information, to Docket Management at the address given above 
under ADDRESSES. When you send a comment containing information claimed 
to be confidential business information, you should include a cover 
letter setting forth the information specified in our confidential 
business information regulation. (49 CFR Part 512.)
Will the Agency Consider Late Comments?
    We will consider all comments that Docket Management receives 
before the close of business on the comment closing date indicated 
above under DATES. To the extent possible, we will also consider 
comments that Docket Management receives after that date. If Docket 
Management receives a comment too late for us to consider it in 
developing a final rule (assuming that one is issued), we will consider 
that comment as an informal suggestion for future rulemaking action.
How Can I Read the Comments Submitted by Other People and Other 
Materials Relevant to This Rulemaking?
    You may view the materials in the docket for this rulemaking on the 
Internet. These materials include the written comments submitted by 
other interested persons and the preliminary regulatory evaluation 
prepared by this agency. You may read them at the address given above 
under ADDRESSES. The hours of the Docket are indicated above in the 
same location.
    You may also see the comments and materials on the Internet. To 
read them on the Internet, take the following steps:
    (1) Go to the Docket Management System (DMS) Web page of the 
Department of Transportation (http://dms.dot.gov/).
    (2) On that page, click on ``search.''
    (3) On the next page (http://dms.dot.gov/search/), type in the 
four-digit docket number shown at the beginning of this document. 
Example: If the docket number were ``NHTSA-2000-1234,'' you would type 
``1234.'' After typing the docket number, click on ``search.''
    (4) On the next page, which contains docket summary information for 
the materials in the docket you selected, click on the desired 
comments. You may download the comments.
    Please note that even after the comment closing date, we will 
continue to file relevant information in the Docket as it becomes 
available. Further, some people may submit late comments. Accordingly, 
we recommend that you periodically check the Docket for new material.

List of Subjects in 49 CFR Part 578

    Imports, Motor vehicle safety, Motor vehicles, Civil and criminal 
penalties, Rubber and rubber products, Tires.


    In consideration of the foregoing, 49 CFR part 578 is amended as 
follows:
    1. The authority citation for Part 578 of Title 49 is revised to 
read as follows:

    Authority: Pub. L. 101-410, Pub. L. 104-134, Pub. L. 106-414, 49 
U.S.C. 30165, 49 U.S.C. 30170, 30505, 32308, 32309, 32507, 32709, 
32710, 32912, and 33115; delegation of authority at 49 CFR 1.50.

    2. The heading of Part 578 is revised to read as follows:

PART 578--CIVIL AND CRIMINAL PENALTIES

    3. Section 578.1 is revised to read as follows:


Sec. 578.1  Scope.

    This part specifies the civil penalties for violations of statutes 
administered by the National Highway Traffic Safety Administration, as 
adjusted for inflation. This part also sets forth the requirements 
regarding the reasonable time and the manner of correction for a person 
seeking safe harbor protection from criminal liability under 49 U.S.C. 
30170(a).

    4. Section 578.2 is revised to read as follows:


Sec. 578.2  Purpose.

    One purpose of this part is to preserve the remedial impact of 
civil penalties and to foster compliance with the law by specifying the 
civil penalties for statutory violations, as adjusted for inflation. 
The other purpose of this part is to set forth the requirements 
regarding the reasonable time and the manner of correction for a person 
seeking safe harbor protection from criminal liability under 49 U.S.C. 
30170(a).

[[Page 81419]]


    5. Section 578.3 is revised to read as follows:


Sec. 578.3  Applicability.

    This part applies to civil penalties for violations of Chapters 
301, 305, 323, 325, 327, 329, and 331 of Title 49 of the United States 
Code. This part also applies to the criminal penalty safe harbor 
provision of section 30170 of Title 49 of the United States Code.

    6. Section 578.4 is amended by revising the definition of ``civil 
penalty'' to read as follows:


Sec. 578.4  Definitions.

* * * * *
    Civil penalty means any non-criminal penalty, fine, or other 
sanction that:
    (1) Is for a specific monetary amount as provided by Federal law, 
or has a maximum amount provided for by Federal law; and
    (2) Is assessed, compromised, collected, or enforced by NHTSA 
pursuant to Federal law.
* * * * *

    7. A new section 578.7 is added to read as follows:


Sec. 578.7  Criminal Safe Harbor Provision.

    (a) Scope. This section sets forth the requirements regarding the 
reasonable time and the manner of correction for a person seeking safe 
harbor protection from criminal liability under 49 U.S.C. 30170(a)(2), 
which provides that a person described in 49 U.S.C. 30170(a)(1) is not 
subject to criminal penalties thereunder if:
    (1) At the time of the violation, such person does not know that 
the violation would result in an accident causing death or serious 
bodily injury; and
    (2) The person corrects any improper reports or failure to report, 
with respect to reporting requirements of 49 U.S.C. 30166, within a 
reasonable time.
    (b) Reasonable time. A correction is considered to have been 
performed within a reasonable time if the person seeking protection 
from criminal liability makes the correction to any improper (i.e., 
incorrect, incomplete, or misleading) report not more than twenty-one 
(21) calendar days after the date of the report to the agency and 
corrects any failure to report not more than twenty-one (21) calendar 
days after the report was due to be sent to or received by the agency, 
as the case may be, pursuant to 49 U.S.C. 30166, including a 
regulation, requirement, request or order issued thereunder. In order 
to meet these reasonable time requirements, all submissions required by 
this section must be received by NHTSA within the time period specified 
in this paragraph, and not merely mailed or otherwise sent within that 
time period.
    (c) Sufficient manner of correction. Each person seeking safe 
harbor protection from criminal penalties under 49 U.S.C. 30170(a)(2) 
must comply with the following with respect to each improper report and 
failure to report for which safe harbor protection is sought:
    (1) Sign and submit to NHTSA a dated document identifying:
    (i) Each previous improper report (e.g., informational statement 
and document submission), and each failure to report as required under 
49 U.S.C. 30166, including a regulation, requirement, request or order 
issued thereunder, for which protection is sought, and
    (ii) The specific predicate under which the improper or omitted 
report should have been provided (e.g., the report was required by a 
specified regulation, NHTSA Information Request, or NHTSA Special 
Order).
    (2) Submit the complete and correct information that was required 
to be submitted but was improperly submitted or was not previously 
submitted, including relevant documents that were not previously 
submitted, or, if the person cannot do so, provide a detailed 
description of that information and/or the content of those documents 
and the reason why the individual cannot provide them to NHTSA (e.g., 
the information or documents are not in the individual's possession or 
control).
    (3) For a corporation, the submission must be signed by an 
authorized person (ordinarily, the individual officer or employee who 
submitted the improper report or who should have provided the report 
that the corporation failed to submit on behalf of the company, or 
someone in the company with authority to make such a submission).
    (4) Submissions must be made by a means which permits the sender to 
verify promptly that the report was in fact received by NHTSA and the 
day it was received by NHTSA.
    (5) Submit the report to Chief Counsel (NCC-10), National Highway 
Traffic Safety Administration, Room 5219, 400 Seventh Street, SW., 
Washington, DC 20590.

    Issued on: December 15, 2000.
Sue Bailey,
Administrator.
[FR Doc. 00-32527 Filed 12-22-00; 8:45 am]
BILLING CODE 4910-59-P