[Federal Register Volume 66, Number 141 (Monday, July 23, 2001)]
[Proposed Rules]
[Pages 38247-38251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18249]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 573

[Docket No. NHTSA-2001-9599]
RIN 2127-AI30


Motor Vehicle Safety; Limitations on Sale and Lease of 
Noncompliant and Defective Motor Vehicles and Items of Motor Vehicle 
Equipment

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

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: NHTSA proposes to add regulations limiting the sale or lease 
of noncompliant and defective motor vehicles and items of motor vehicle 
equipment. The Intermodal Surface Transportation Efficiency Act (ISTEA) 
and the Transportation Recall Enhancement, Accountability, and 
Documentation (TREAD) Act amended federal motor vehicle safety laws by 
limiting the sale or lease of defective and noncompliant vehicles and 
equipment. The proposed rules would codify the limitations set forth in 
ISTEA and the TREAD Act and reduce questions relating to the meaning of 
those limitations.

DATES: Comment Closing: Comments must be received by September 21, 
2001. The effective date of a final rule based on this proposal would 
be 30 days after publication of the final rule.

ADDRESSES: You should mention the docket number of this document in 
your comments, and submit your comments in writing to: Docket 
Management, Room PL-401, 400 Seventh Street, SW., Washington, D.C. 
20590. Comments may also be submitted to the docket electronically by 
logging onto the Dockets Management System website at

[[Page 38248]]

http://dms.dot.gov. Click on ``Help and Information'' or ``Help/Info'' 
to obtain instructions for filing the document electronically.
    You may call Docket Management at 202-366-9324. You may visit the 
Docket from 9:00 a.m. to 5:00 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Lloyd S. Guerci, Office of Chief 
Counsel, NCC-10, National Highway Traffic Safety Administration, 400 
Seventh Street, SW., Washington, D.C. 20590. Telephone 202-366-5263.

SUPPLEMENTARY INFORMATION:

Background

    Since the enactment of the National Traffic and Motor Vehicle 
Safety Act in 1966, now codified as 49 U.S.C. Chapter 301 (Safety Act), 
Federal law has prohibited the sale of new motor vehicles and motor 
vehicle equipment that fail to comply with an applicable Federal motor 
vehicle safety standard (FMVSS). See section 108(a) of Pub. L. 89-563, 
80 Stat. 722, codified as 49 U.S.C. 30112(a). However, until 1991, the 
Safety Act did not contain specific provisions limiting the sale or 
lease of defective vehicles and equipment. On December 18, 1991, the 
Intermodal Surface Transportation Efficiency Act (``ISTEA''), Pub. L. 
102-240, 105 Stat. 2083, was enacted. Section 2504 of ISTEA amended 
Section 154 of the Safety Act, by adding a new subsection, (d), which 
is codified at 49 U.S.C. 30120(i).
    Section 30120(i) states:

[i]f notification is required by an order under section 30118(b) of 
this title or is required under section 30118(c) of this title and 
the manufacturer has provided to a dealer (including retailers of 
motor vehicle equipment) notification about a new motor vehicle or 
new item of replacement equipment in the dealer's possession at the 
time of notification that contains a defect related to motor vehicle 
safety or does not comply with an applicable motor vehicle safety 
standard prescribed under this chapter, the dealer may sell or lease 
the motor vehicle or item of replacement equipment only if--(A) the 
defect or noncompliance is remedied as required by this section 
before delivery under the sale or lease; or (B) when the 
notification is required by an order under section 30118(b) of this 
title, enforcement of the order is restrained or the order is set 
aside in a civil action to which section 30121(d) of this title 
applies.\1\

    \1\ Section 30118(c) requires manufacturers of motor vehicles or 
equipment to provide notification of safety-related defects or 
noncompliances with motor vehicle safety standards to NHTSA, as well 
as to the owners, purchasers and dealers of the vehicle or 
equipment.

    Section 30118(b) authorizes the Secretary to make a final decision 
that motor vehicles or equipment contain a safety-related defect and/or 
do not comply with an applicable motor vehicle safety standard and, in 
that event, order the manufacturer to give notification of the defect 
or noncompliance to owners, purchasers, and dealers of the vehicles or 
equipment, and order the manufacturer to remedy the defect or 
noncompliance without charge.
    Section 30120(i) does not prohibit a dealer from offering the 
vehicle or equipment for sale or lease. Thus, the dealer can offer the 
vehicle in the showroom but cannot sell or lease it. In the 1990s, 
NHTSA did not engage in rulemaking with regard to this statutory 
prohibition.
    On November 1, 2000, the TREAD Act, Pub. L. 106-414, was enacted. 
The statute was, in part, a response to congressional concerns 
regarding the manner in which various entities dealt with defective 
motor vehicles and motor vehicle equipment, including tires. During 
congressional consideration of the bill that eventually was adopted as 
the TREAD Act, there had been media reports that some persons were 
selling defective Firestone ATX or Wilderness tires that had been 
returned to dealers for replacement tires under an ongoing safety 
recall. The Safety Act did not expressly prohibit such actions, since 
section 30120(i) does not apply to the sale or lease of used vehicles 
or equipment. The TREAD Act added various provisions related to safety-
related defects and noncompliances with applicable Federal motor 
vehicle safety standards to the Safety Act.
    Section 8 of the TREAD Act added a new subsection (j), 
``Prohibition on sales of replaced equipment,'' to 49 U.S.C. 30120, 
effective November 1, 2000. This subsection provides that no person may 
sell or lease any motor vehicle equipment (including a tire), for 
installation on a motor vehicle, that is the subject of a decision 
under 49 U.S.C. 30118(b) or a notice required under 49 U.S.C. 30118(c) 
in a condition that it may be reasonably used for its original purpose. 
Under section 30120(j)(1) and (2), the foregoing prohibition does not 
apply if the defect or noncompliance is remedied as required by 49 
U.S.C. 30120, including implementing regulations, before delivery under 
the sale or lease; or notification of the defect or noncompliance is 
required under section 30118(b) but enforcement of the order is set 
aside in a civil action to which 49 U.S.C. 30121(d) applies.
    While sections 30120(i) and (j) do not require rulemaking for their 
effectuation, NHTSA believes that there will be two benefits to 
rulemaking. First, rules will largely reduce, if not eliminate, 
questions relating to the meaning of the prohibitions. Second, there 
are benefits to codifying the prohibitions, which complement other 
rules, in the Code of the Federal Regulations.
    In view of the TREAD Act, we are proposing to reorganize and amend 
49 CFR Part 573 to include the limitations established by sections 
30120 (i) and (j).

Section 30120(i): Limitation on Sale or Lease

Who Would Be Covered?

    Section 30120(i) applies to dealers, including retailers of motor 
vehicle equipment. Dealer is defined in 49 U.S.C. 30102(a)(1) as ``a 
person selling and distributing new motor vehicles or motor vehicle 
equipment primarily to purchasers that in good faith purchase the 
vehicles or equipment other than for resale.''

What Motor Vehicles and Equipment Would Be Covered?

    The section covers the sale and lease of new motor vehicles and 
motor vehicle equipment. It provides that a dealer may not sell or 
lease noncompliant or defective new motor vehicles or new items of 
replacement equipment. Section 30102(a)(6) defines the term, ``motor 
vehicle,'' as ``a vehicle driven or drawn by mechanical power and 
manufactured primarily for use on public streets, roads and highways, 
but does not include a vehicle operated only on a rail line.'' Section 
30102(b)(1)(D) defines replacement equipment as ``motor vehicle 
equipment (including a tire) that is not original equipment.'' By its 
terms, section 30120(i) applies to new motor vehicles and new items of 
replacement equipment. Thus, the proposed requirements relating to 
section 30120(i) would not apply to used motor vehicles and used 
replacement equipment.

Under What Circumstances Would the Limitation on the Sale or Lease of 
Motor Vehicles or Equipment Apply?

    In order for the limitation on the sale or lease of motor vehicles 
and equipment under section 30120(i) to apply, several things must 
occur. First, notification of a defect or noncompliance must have been 
required by an order under section 30118(b) or under section 30118(c). 
Second, a dealer must have been notified of the defect or noncompliance 
under section 30120(d)(4). Finally, the dealer must be in possession of 
the vehicle or equipment. This could include, for example, items in 
inventory and subsequently received items covered by the notification.
    Section 30120(i) also provides for two situations where the dealer 
may sell or

[[Page 38249]]

lease motor vehicles or equipment that have been determined to be 
defective or noncompliant. First, the dealer may sell or lease the 
motor vehicle or item of replacement equipment if the defect or 
noncompliance is remedied as required by section 30120 before delivery 
under the sale or lease. Second, the sale or lease is permissible when 
notification is required by an order under section 30118(b) but 
enforcement of the order is restrained or the order is set aside in a 
civil action to which section 30121(d) applies. Thus, if the order is 
set aside by a court, as stated above, the prohibition would not apply 
and the sale would be permissible. Finally, section 30120(i) states 
that it does not prohibit a dealer from simply offering the vehicle or 
equipment for sale or lease.

Section 30120(j): Limitation on Sale or Lease of Equipment \2\
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    \2\ We recognize that the title of section 30120(j) refers to a 
``prohibition'' on the sale of equipment. However, we have used the 
word ``limitation'' consistently throughout this document.
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Who Would Be Covered?

    Section 30120(j) provides that ``no person may sell or lease any 
motor vehicle equipment (including a tire) for installation on a motor 
vehicle, that is the subject of a decision under section 30118(b) or a 
notice required under section 30118(c) in a condition that it may be 
reasonably used for its original purpose.'' (Emphasis added). In this 
section, Congress chose to use the general terms ``no person'' as 
opposed to the more restricted categories of ``manufacturer'' and 
``dealer'' used elsewhere within section 30120 and Chapter 301. In view 
of the breadth of the term ``no person,'' the section is not limited to 
persons in particular classes or categories. Thus, the proposed rule's 
prohibition would apply to the actions of all persons, including 
individuals and entities such as corporations.

What Activities Would Be Covered?

    The activities that are covered by section 30120(j) and the 
proposed rule are selling or leasing, ``for installation on a motor 
vehicle,'' any motor vehicle equipment (including a tire), that is the 
subject of a decision under section 30118(b) or a notice required under 
section 30118(c) (emphasis added). Accordingly, the rule would apply to 
businesses and individuals that sell used automobile parts, including 
tires. While this proposed rule would prohibit the sale or lease of 
equipment including tires for installation on a motor vehicle, it would 
not prohibit a person from selling or leasing a new or used vehicle 
with defective or noncompliant equipment or tires.\3\ For example, a 
motor vehicle dealer is not subject to the prohibition of this proposed 
rule except with respect to equipment and tires that the dealer sells 
or leases separately from a vehicle. Similarly, motor vehicle lessors 
and motor vehicle rental companies would not be subject to the rule 
because these groups are selling and leasing vehicles, not equipment or 
tires for use on motor vehicles. Thus, the rule would generally apply 
to equipment and tire retailers, including individuals.
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    \3\ As discussed above, the sale or lease of a new vehicle with 
defective or noncompliant equipment or tires is already prohibited 
by 49 U.S.C. 30120(i).
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What Motor Vehicle Equipment Would Be Covered?

    Section 30120(j) prohibits the selling or leasing of any motor 
vehicle equipment (including a tire), for installation on a motor 
vehicle, that is the subject of a decision under section 30118(b) or a 
notice required under section 30118(c). Section 30102(a)(7) defines 
``motor vehicle equipment'' as:

(A) any system, part, or component of a motor vehicle as originally 
manufactured; (B) any similar part or component manufactured or sold 
for replacement or improvement of a system, part, or component, or 
as an accessory or addition to a motor vehicle; or (C) any device or 
an article or apparel (except medicine or eyeglasses prescribed by a 
licensed practitioner) that is not a system, part, or component of a 
motor vehicle and is manufactured, sold, delivered, offered, or 
intended to be used only to safeguard motor vehicles and highway 
users against risk of accident, injury, or death.

    In section 30120(j), Congress chose to restrict the sale of 
equipment, without limitation. Thus, the prohibition includes all 
equipment, including used equipment as well as new equipment.\4\
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    \4\ We recognize that the title of section 30120(j) refers to 
``replaced equipment.'' The U.S. Supreme Court has long held that a 
subtitle of an act cannot overcome the plain and unambiguous meaning 
of the words used in the text of the statute. See Knowlton v. Moore, 
178 U.S. 41 (1900). Thus, since the language of section 30120(j) is 
not limited, its reach extends to all equipment that has been found 
to be defective or noncompliant.
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    Section 30120(j) prohibits the sale of equipment in a condition 
that it may be reasonably used for its original purpose (emphasis 
added). Accordingly, the rule would only prohibit the sale of equipment 
and tires that are still in a condition in which they can be used for 
the purpose for which they were originally intended. Thus, the rule 
would not apply to equipment and tires that have been altered in a way 
that they can no longer be reasonably used for their original purpose. 
For example, a tire that is drilled with holes for eye-bolts may be 
sold for use as part of a playground swing.
    Section 30120(j)(1) provides that the prohibition on the sale of 
equipment applies unless ``the defect or noncompliance is remedied as 
required by this section before delivery under the sale or lease.'' 
Therefore, the equipment could be sold if it has been repaired so that 
it is no longer defective or noncompliant.
    The sale of the equipment would also be allowed if ``notification 
of the defect or noncompliance is required under section 30118(b) but 
enforcement of the order is set aside in a civil action to which 
section 30121(d) applies.'' Under 30118(b), if it is determined that a 
motor vehicle or replacement equipment contains a defect related to 
motor vehicle safety or does not comply with an applicable motor 
vehicle safety standard, the manufacturer is ordered to give 
notification of the defect or noncompliance under section 30119 to 
owners, purchasers and dealers of the vehicle or equipment.\5\ However, 
if this order is set aside by a court, the prohibition in section 
30120(j) would not apply, and, therefore, the sale would be permissible 
during the period when the order was not effective.
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    \5\ Section 30119 sets out the notification procedures the 
manufacturer must follow.
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Regulatory Analyses and Notices

1. E.O. 12866 and DOT Regulatory Policies and Procedures

    This notice has not been reviewed under E.O. 12866, ``Regulatory 
Planning and Review.'' After considering the impacts of this proposed 
rulemaking action, we have determined that the action is not 
``significant'' within the meaning of the Department of the 
Transportation regulatory policies and procedures. There are statutory 
provisions in place and these proposed rules would not increase the 
burdens on those covered by the prohibitions. The impact of this 
proposed rule would be so minimal as not to warrant preparation of a 
full regulatory evaluation because these provisions only involve 
prohibitions on sales of defective and noncompliant vehicles and 
equipment, which are rare even absent the rule. In light of the 
statutory provisions, this action does not involve a substantial public 
interest or controversy. The rulemaking action would not have a 
substantial impact on any transportation safety program or on state and 
local governments.

2. Regulatory Flexibility Act

    We have also considered the effects of this action in relation to 
the Regulatory

[[Page 38250]]

Flexibility Act (5 U.S.C. 601 et seq.). I certify that this proposed 
rule would have no significant economic impact on a substantial number 
of small entities. The impact of this proposed rule would be expected 
to be so minimal as not to warrant preparation of a full regulatory 
flexibility analysis because this provision only involves the 
prohibition on sales or leases of vehicles or equipment that have been 
determined to be defective or noncompliant, and the incidence of 
covered sales and leases would have been small even absent this rule. 
Governmental jurisdictions will not be affected.

3. E.O. 13132 (Federalism)

    E.O. 13132 (64 FR 43255, August 10, 1999), revokes and replaces 
E.O.s 12612 ``Federalism'' and 12875 ``Enhancing the Intergovernmental 
partnership.'' E.O. 13132 requires NHTSA 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.'' E.O. 13132 defines the term ``policies that 
have federalism implications'' 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.'' Under 
E.O. 13132, NHTSA may not issue a regulation that has federalism 
implications, that imposes substantial direct compliance costs, and 
that is not required by statute, unless the Federal Government provides 
the funds necessary to pay the direct compliance costs incurred by 
State and local governments, or NHTSA consults with State and local 
officials early in the process of developing the proposed regulation.
    The proposed rule would not 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 as specified in E.O. 13132. Thus, the 
requirements of section 6 of the E.O. do not apply to this proposed 
rule.

4. National Environmental Policy Act

    We have analyzed this proposed action for purposes of the National 
Environmental Policy Act. The action would not have a significant 
effect upon the environment.

5. Civil Justice Reform

    This proposed rule does not have a retroactive or preemptive 
effect. Judicial review of a rule based on this proposal 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.

6. Paperwork Reduction Act

    NHTSA has determined that this notice will not impose a new 
collection of information burden within the meaning of the Paperwork 
Reduction Act of 1995 (PRA).

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 tribal 
governments, in the aggregate, or by the private sector, of more that 
$100 million annually. Because a final rule based on this proposal 
would not have an effect of $100 million, no Unfunded Mandates 
assessment has been prepared.

8. Plain Language

    E.O. 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 include consideration of the following 
questions:
    --Have we organized the material to suit the public's needs?
    --Are the requirement in the proposed rule clearly stated?
    --Does the proposed rule contain technical language or jargon that 
is unclear?
    --Would a different format (grouping and order of sections, use of 
heading, paragraphing) make the rule easier to understand?
    --Would more (but shorter) sections be better?
    --Could we improve clarity by adding tables, lists, or diagrams?
    --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 on this document.

Request for Comments

How Can I Influence NHTSA's Thinking on This Rule?

    In developing this notice of proposed rulemaking, we tried to 
address the anticipated concerns of all our stakeholders. Your comments 
will help us improve this rule. We invite you to provide different 
views, new approaches we have not considered, new data, how this rule 
may affect you, or other relevant information. 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 or 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 
attachment, to Docket Management at the beginning of this document, 
under ADDRESSES.

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 three copies of your complete 
submission, including the information you claim to be confidential 
business information, to the Chief Counsel, NHTSA, at the address given 
at the beginning of this document 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

[[Page 38251]]

the address given at the beginning of this document 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 at 
the beginning of this notice 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 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?

    You may read the comments received by Docket management at the 
address and times given near the beginning of this document under 
ADDRESSES.
    You may also see the comments on the internet. To read the comments 
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 heading of this document. 
Example: if the docket number were NHTSA-2000-1234, ``you would type 
A1234.''
    (4) After typing the docket number, click on ``search.''
    (5) The next page contains docket summary information for the 
docket you selected. Click on the comments you wish to see.
    You may download the comments. Although the comments are imaged 
documents, instead of the word processing documents, the ``pdf'' 
versions of the documents are word searchable.
    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 search the Docket for new material.

List of Subjects in 49 CFR Part 573

    Defects, Motor vehicle safety, Noncompliance, Reporting and 
recordkeeping requirements, Tires.
    In consideration of the foregoing, NHTSA proposes to amend 49 CFR 
Part 573 as set forth below.

PART 573--REQUIREMENTS AND PROHIBITIONS APPLICABLE TO SAFETY DEFECT 
AND NONCOMPLIANCE RECALLS

    1. The authority citation for Part 573 continues to read as 
follows:

    Authority: 49 U.S.C. 30102-103, 30112, 30117-121, 30166-167; 
delegation of authority at 49 CFR 1.50.

    2. Revise the heading of part 573 to read as set forth above.
    3. In Sec. 573.3, revise paragraph (a) and add paragraphs (h) and 
(i) to read as follows:


Sec. 573.3  Application.

    (a) Except as provided in Secs. 573.3(g), 573.3(h) and 573.3(i), 
this part applies to manufacturers of complete motor vehicles, 
incomplete motor vehicles, and motor vehicle original and replacement 
equipment, with respect to all vehicles and equipment that have been 
transported beyond the direct control of the manufacturer.
* * * * *
    (h) The provisions of Sec. 573.11 apply to dealers.
    (i) The provisions of Sec. 573.12 apply to all persons.
* * * * *
    4. Add Sec. 573.11 to read as follows:


Sec. 573.11  Limitation on sale or lease of new motor vehicles and new 
items of replacement equipment.

    (a) If notification is required by an order under 49 U.S.C. 
30118(b) or is required under 49 U.S.C. 30118(c) and the manufacturer 
has provided to a dealer (including retailers of motor vehicle 
equipment) notification about a new motor vehicle or new item of 
replacement equipment in the dealer's possession at the time of 
notification that contains a defect related to motor vehicle safety or 
does not comply with an applicable motor vehicle safety standard issued 
under 49 CFR part 571, the dealer may sell or lease the motor vehicle 
or item of replacement equipment only if:
    (1) The defect or noncompliance is remedied as required by 49 
U.S.C. 30120 before delivery under the sale or lease; or
    (2) When the notification is required by an order under 49 U.S.C. 
30118(b), enforcement of the order is restrained or the order is set 
aside in a civil action to which 49 U.S.C. 30121(d) applies.
    (b) Paragraph (a) of this section does not prohibit a dealer from 
offering the vehicle or equipment for sale or lease, provided that the 
dealer does not sell or lease it.
    5. Add Sec. 573.12 to read as follows:


Sec. 573.12  Limitation on sale or lease of new and used defective and 
noncompliant motor vehicle equipment.

    (a) Subject to Sec. 573.12(b), no person may sell or lease any new 
or used item of motor vehicle equipment (including a tire) as defined 
by 49 U.S.C. 30102(a)(7), for installation on a motor vehicle, that is 
the subject of a decision under 49 U.S.C. 30118(b) or a notice required 
under 49 U.S.C. 30118(c) in a condition that it may be reasonably used 
for its original purpose.
    (b) Paragraph (a) of this section is not applicable where:
    (1) The defect or noncompliance is remedied as required under 49 
U.S.C. 30120 before delivery under the sale or lease; or
    (2) Notification of the defect or noncompliance is required by an 
order under 49 U.S.C. 30118(b), but enforcement of the order is 
restrained or the order is set aside in a civil action to which 49 
U.S.C. 30121(d) applies.

    Issued on: July 17, 2001.
Kenneth N. Weinstein,
Associate Administrator for Safety Assurance.
[FR Doc. 01-18249 Filed 7-20-01; 8:45 am]
BILLING CODE 4910-59-P