[106th Congress Public Law 414]
[From the U.S. Government Printing Office]
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TRANSPORTATION RECALL ENHANCEMENT, ACCOUNTABILITY, AND DOCUMENTATION
(TREAD) ACT
[[Page 114 STAT. 1800]]
Public Law 106-414
106th Congress
An Act
To amend title 49, United States <<NOTE: Nov. 1, 2000 - [H.R.
5164]>> Code, to require reports concerning defects in motor vehicles or
tires or other motor vehicle equipment in foreign countries, and for
other purposes.
Be it enacted by the Senate and House of <<NOTE: Transportation
Recall Enhancement, Accountability, and Documentation (TREAD)
Act.>> Representatives of the United States of America in Congress
assembled,
SECTION 1. <<NOTE: 49 USC 30101 note.>> SHORT TITLE.
This Act may be cited as the ``Transportation Recall Enhancement,
Accountability, and Documentation (TREAD) Act''.
SEC. 2. <<NOTE: 49 USC 30118 and note.>> PRESERVATION OF SECTION 30118.
The amendments made to section 30118 of title 49, United States
Code, by section 364 of the Department of Transportation and Related
Agencies Appropriations Act, 2001 are repealed and such section shall be
effective as if such amending section had not been enacted.
SEC. 3. <<NOTE: Deadlines.>> REPORTING REQUIREMENTS.
(a) Defects in Foreign Countries.--Section 30166 of title 49, United
States Code, is amended by adding at the end the following:
``(l) Reporting of Defects in Motor Vehicles and Products in Foreign
Countries.--
``(1) Reporting of defects, manufacturer determination.--Not
later than 5 working days after determining to conduct a safety
recall or other safety campaign in a foreign country on a motor
vehicle or motor vehicle equipment that is identical or
substantially similar to a motor vehicle or motor vehicle
equipment offered for sale in the United States, the
manufacturer shall report the determination to the Secretary.
``(2) Reporting of defects, foreign government
determination.--Not later than 5 working days after receiving
notification that the government of a foreign country has
determined that a safety recall or other safety campaign must be
conducted in the foreign country on a motor vehicle or motor
vehicle equipment that is identical or substantially similar to
a motor vehicle or motor vehicle equipment offered for sale in
the United States, the manufacturer of the motor vehicle or
motor vehicle equipment shall report the determination to the
Secretary.
``(3) Reporting requirements.--The Secretary shall prescribe
the contents of the notification required by this subsection.''.
[[Page 114 STAT. 1801]]
(b) Early Warning Reporting Requirements.--Section 30166 of title
49, United States Code, is amended by adding at the end the following:
``(m) Early Warning Reporting Requirements.--
``(1) Rulemaking required.--Not later than 120 days after
the date of the enactment of the Transportation Recall
Enhancement, Accountability, and Documentation (TREAD) Act, the
Secretary shall initiate a rulemaking proceeding to establish
early warning reporting requirements for manufacturers of motor
vehicles and motor vehicle equipment to enhance the Secretary's
ability to carry out the provisions of this chapter.
``(2) Deadline.--The Secretary shall issue a final rule
under paragraph (1) not later than June 30, 2002.
``(3) Reporting elements.--
``(A) Warranty and claims data.--As part of the
final rule promulgated under paragraph (1), the
Secretary shall require manufacturers of motor vehicles
and motor vehicle equipment to report, periodically or
upon request by the Secretary, information which is
received by the manufacturer derived from foreign and
domestic sources to the extent that such information may
assist in the identification of defects related to motor
vehicle safety in motor vehicles and motor vehicle
equipment in the United States and which concerns--
``(i) data on claims submitted to the
manufacturer for serious injuries (including
death) and aggregate statistical data on property
damage from alleged defects in a motor vehicle or
in motor vehicle equipment; or
``(ii) customer satisfaction campaigns,
consumer advisories, recalls, or other activity
involving the repair or replacement of motor
vehicles or items of motor vehicle equipment.
``(B) Other data.--As part of the final rule
promulgated under paragraph (1), the Secretary may, to
the extent that such information may assist in the
identification of defects related to motor vehicle
safety in motor vehicles and motor vehicle equipment in
the United States, require manufacturers of motor
vehicles or motor vehicle equipment to report,
periodically or upon request of the Secretary, such
information as the Secretary may request.
``(C) <<NOTE: Rules and regulations.>> Reporting of
possible defects.--The manufacturer of a motor vehicle
or motor vehicle equipment shall report to the
Secretary, in such manner as the Secretary establishes
by regulation, all incidents of which the manufacturer
receives actual notice which involve fatalities or
serious injuries which are alleged or proven to have
been caused by a possible defect in such manufacturer's
motor vehicle or motor vehicle equipment in the United
States, or in a foreign country when the possible defect
is in a motor vehicle or motor vehicle equipment that is
identical or substantially similar to a motor vehicle or
motor vehicle equipment offered for sale in the United
States.
``(4) Handling and utilization of reporting elements.--
``(A) Secretary's specifications.--In requiring the
reporting of any information requested by the Secretary
[[Page 114 STAT. 1802]]
under this subsection, the Secretary shall specify in
the final rule promulgated under paragraph (1)--
``(i) how such information will be reviewed
and utilized to assist in the identification of
defects related to motor vehicle safety;
``(ii) the systems and processes the Secretary
will employ or establish to review and utilize
such information; and
``(iii) the manner and form of reporting such
information, including in electronic form.
``(B) Information in possession of manufacturer.--
The regulations promulgated by the Secretary under
paragraph (1) may not require a manufacturer of a motor
vehicle or motor vehicle equipment to maintain or submit
records respecting information not in the possession of
the manufacturer.
``(C) Disclosure.--None of the information collected
pursuant to the final rule promulgated under paragraph
(1) shall be disclosed pursuant to section 30167(b)
unless the Secretary determines the disclosure of such
information will assist in carrying out sections
30117(b) and 30118 through 30121.
``(D) Burdensome requirements.--In promulgating the
final rule under paragraph (1), the Secretary shall not
impose requirements unduly burdensome to a manufacturer
of a motor vehicle or motor vehicle equipment, taking
into account the manufacturer's cost of complying with
such requirements and the Secretary's ability to use the
information sought in a meaningful manner to assist in
the identification of defects related to motor vehicle
safety.
``(5) <<NOTE: Procedures.>> Periodic review.--As part of
the final rule promulgated pursuant to paragraph (1), the
Secretary shall specify procedures for the periodic review and
update of such rule.''.
(c) Sale or Lease of Defective or Noncompliant Tire.--Section 30166
of title 49, United States Code, as amended by subsection (b), is
amended by adding at the end the following:
``(n) Sale or Lease of Defective or Noncompliant Tire.--
``(1) <<NOTE: Rules and regulations.>> In general.--The
Secretary shall, within 90 days of the date of the enactment of
the Transportation Recall Enhancement, Accountability, and
Documentation (TREAD) Act, issue a final rule requiring any
person who knowingly and willfully sells or leases for use on a
motor vehicle a defective tire or a tire which is not compliant
with an applicable tire safety standard with actual knowledge
that the manufacturer of such tire has notified its dealers of
such defect or noncompliance as required under section 30118(c)
or as required by an order under section 30118(b) to report such
sale or lease to the Secretary.
``(2) Defect or noncompliance remedied or order not in
effect.--Regulations under paragraph (1) shall not require the
reporting described in paragraph (1) where before delivery under
a sale or lease of a tire--
``(A) the defect or noncompliance of the tire is
remedied as required by section 30120; or
``(B) notification of the defect or noncompliance is
required under section 30118(b) but enforcement of the
[[Page 114 STAT. 1803]]
order is restrained or the order is set aside in a civil
action to which section 30121(d) applies.''.
(d) Insurance Study.--The Secretary of Transportation shall conduct
a study to determine the feasibility and utility of obtaining aggregate
information on a regular and periodic basis regarding claims made for
private passenger automobile accidents from persons in the business of
providing private passenger automobile insurance or of adjusting
insurance claims for such automobiles. Not later than 120 days after the
date of the enactment of this Act, the Secretary shall transmit the
results of such study to the Committee on Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate.
SEC. 4. REMEDIES WITHOUT CHARGE.
Section 30120(g)(1) of title 49, United States Code, is amended by--
(1) striking ``8 calendar years'' and inserting ``10
calendar years''; and
(2) striking ``3 calendar years'' and inserting ``5 calendar
years''.
SEC. 5. PENALTIES.
(a) Civil Penalties.--Section 30165(a) of title 49, United States
Code, is amended to read as follows:
``(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 for each violation. A separate violation
occurs for each motor vehicle or item of motor vehicle equipment
and for each failure or refusal to allow or perform an act
required by any of those sections. The maximum penalty under
this subsection for a related series of violations is
$15,000,000.
``(2) Section 30166.--A person who violates section 30166 or
a regulation prescribed under that section is liable to the
United States Government for a civil penalty for failing or
refusing to allow or perform an act required under that section
or regulation. The maximum penalty under this paragraph is
$5,000 per violation per day. The maximum penalty under this
paragraph for a related series of daily violations is
$15,000,000.''.
(b) Criminal Penalties.--
(1) In general.--Subchapter IV of chapter 301 of title 49,
United States Code, is amended by adding at the end the
following:
``Sec. 30170. Criminal Penalties
``(a) Criminal Liability for Falsifying or Withholding
Information.--
``(1) General rule.--A person who violates section 1001 of
title 18 with respect to the reporting requirements of section
30166, with the specific intention of misleading the Secretary
with respect to motor vehicle or motor vehicle equipment safety
related defects that have caused death or serious bodily injury
to an individual (as defined in section 1365(g)(3) of title 18),
[[Page 114 STAT. 1804]]
shall be subject to criminal penalties of a fine under title 18,
or imprisoned for not more than 15 years, or both.
``(2) Safe harbor to encourage reporting and for whistle
blowers.--
``(A) Correction.--A person described in paragraph
(1) shall not be subject to criminal penalties under
this subsection if: (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.
``(B) Reasonable time and sufficiency of
correction.--The Secretary shall establish
by <<NOTE: Rules and regulations.>> regulation what
constitutes a reasonable time for the purposes of
subparagraph (A) and what manner of correction is
sufficient for purposes of subparagraph (A).
The <<NOTE: Deadline.>> Secretary shall issue a final
rule under this subparagraph within 90 days of the date
of the enactment of this section.
``(C) Effective date.--Subsection (a) shall not take
effect before the final rule under subparagraph (B)
takes effect.
``(b) Coordination with Department of Justice.--The Attorney General
may bring an action, or initiate grand jury proceedings, for a violation
of subsection (a) only at the request of the Secretary of
Transportation.''.
(2) Clerical amendment.--The subchapter analysis for
subchapter IV of chapter 301 of title 49, United States Code, is
amended by adding at the end the following:
``30170. Criminal penalties.''.
SEC. 6. ACCELERATION OF MANUFACTURER REMEDY PROGRAM.
(a) Remedy Program.--Section 30120(c) of title 49, United States
Code, is amended by inserting at the end thereof the following:
``(3) If the Secretary determines that a manufacturer's remedy
program is not likely to be capable of completion within a reasonable
time, the Secretary may require the manufacturer to accelerate the
remedy program if the Secretary finds--
``(A) that there is a risk of serious injury or death if the
remedy program is not accelerated; and
``(B) that acceleration of the remedy program can be
reasonably achieved by expanding the sources of replacement
parts, expanding the number of authorized repair facilities, or
both.
The Secretary may prescribe regulations to carry out this paragraph.''.
(b) Reimbursement Prior to Recall.--Section 30120(d) of title 49,
United States Code, is amended by inserting at the end thereof the
following: ``A manufacturer's remedy program shall include a plan for
reimbursing an owner or purchaser who incurred the cost of the remedy
within a reasonable time in advance of the manufacturer's notification
under subsection (b) or (c) of section 30118. The Secretary may
prescribe regulations establishing what constitutes a reasonable time
for purposes of the preceding sentence and other reasonable conditions
for the reimbursement plan.''.
[[Page 114 STAT. 1805]]
SEC. 7. SALES OF REPLACED TIRES.
Section 30120(d) of title 49, United States Code, is amended by
adding at the end the following: ``In the case of a remedy program
involving the replacement of tires, the manufacturer shall include a
plan addressing how to prevent, to the extent reasonably within the
control of the manufacturer, replaced tires from being resold for
installation on a motor vehicle, and how to limit, to the extent
reasonably within the control of the manufacturer, the disposal of
replaced tires in landfills, particularly through shredding, crumbling,
recycling, recovery, and other alternative beneficial non-vehicular
uses. The manufacturer shall include information about the
implementation of such plan with each quarterly report to the Secretary
regarding the progress of any notification or remedy campaigns.''.
SEC. 8. SALES OF REPLACED EQUIPMENT.
Section 30120 of title 49, United States Code, is amended by adding
at the end the following:
``( j) Prohibition on Sales of Replaced Equipment.--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
unless--
``(1) the defect or noncompliance is remedied as required by
this section before delivery under the sale or lease; or
``(2) 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.''.
SEC. 9. CERTIFICATION LABEL.
Section 30115 of title 49, United States Code, is amended by
inserting ``(a) In General.--'' before ``A manufacturer'' and by adding
at the end the following:
``(b) Certification Label.--In the case of the certification label
affixed by an intermediate or final stage manufacturer of a motor
vehicle built in more than 1 stage, each intermediate or final stage
manufacturer shall certify with respect to each applicable Federal motor
vehicle safety standard--
``(1) that it has complied with the specifications set forth
in the compliance documentation provided by the incomplete motor
vehicle manufacturer in accordance with regulations prescribed
by the Secretary; or
``(2) that it has elected to assume responsibility for
compliance with that standard.
If the intermediate or final stage manufacturer elects to assume
responsibility for compliance with the standard covered by the
documentation provided by an incomplete motor vehicle manufacturer, the
intermediate or final stage manufacturer shall notify the incomplete
motor vehicle manufacturer in writing within a reasonable time of
affixing the certification label. A violation of this subsection shall
not be subject to a civil penalty under section 30165.''.
SEC. 10. ENDURANCE AND RESISTANCE STANDARDS FOR TIRES.
The <<NOTE: Rules and regulations.>> Secretary of Transportation
shall conduct a rulemaking to revise and update the tire standards
published at 49 CFR 571.109
[[Page 114 STAT. 1806]]
and 49 CFR 571.119. The <<NOTE: Deadline.>> Secretary shall complete the
rulemaking under this section not later than June 1, 2002.
SEC. 11. <<NOTE: 49 USC 30123 note.>> IMPROVED TIRE INFORMATION.
(a) Tire Labeling.--Within <<NOTE: Deadlines.>> 30 days after the
date of the enactment of this Act, the Secretary of <<NOTE: Rules and
regulations.>> Transportation shall initiate a rulemaking proceeding to
improve the labeling of tires required by section 30123 of title 49,
United States Code to assist consumers in identifying tires that may be
the subject of a decision under section 30118(b) or a notice required
under section 30118(c). The Secretary shall complete the rulemaking not
later than June 1, 2002.
(b) Inflation Levels and Load Limits.--In the rulemaking initiated
under subsection (a), the Secretary may take whatever additional action
is appropriate to ensure that the public is aware of the importance of
observing motor vehicle tire load limits and maintaining proper tire
inflation levels for the safe operation of a motor vehicle. Such
additional action may include a requirement that the manufacturer of
motor vehicles provide the purchasers of the motor vehicles information
on appropriate tire inflation levels and load limits if the Secretary
determines that requiring such manufacturers to provide such information
is the most appropriate way such information can be provided.
SEC. 12. ROLLOVER TESTS.
Section 30117 of title 49, United States Code, is amended by adding
at the end the following:
``(c) Rollover Tests.--
``(1) <<NOTE: Deadline.>> Development.--Not later than 2
years from the date of the enactment of this subsection, the
Secretary shall--
``(A) develop a dynamic test on rollovers by motor
vehicles for the purposes of a consumer information
program; and
``(B) carry out a program of conducting such tests.
``(2) <<NOTE: Rules and regulations.>> Test results.--As
the Secretary develops a test under paragraph (1)(A), the
Secretary shall conduct a rulemaking to determine how best to
disseminate test results to the public.
``(3) <<NOTE: Applicability.>> Motor vehicles covered.--
This subsection applies to motor vehicles, including passenger
cars, multipurpose passenger vehicles, and trucks, with a gross
vehicle weight rating of 10,000 pounds or less. A motor vehicle
designed to provide temporary residential accommodations is not
covered.''.
SEC. 13. <<NOTE: Deadlines. Rules and regulations. 49 USC 30123
note.>> TIRE PRESSURE WARNING.
Not later than 1 year after the date of the enactment of this Act,
the Secretary of Transportation shall complete a rulemaking for a
regulation to require a warning system in new motor vehicles to indicate
to the operator when a tire is significantly under inflated.
Such <<NOTE: Effective date.>> requirement shall become effective not
later than 2 years after the date of the completion of such rulemaking.
SEC. 14. <<NOTE: Deadlines. 49 USC 30127 note.>> IMPROVING THE SAFETY OF
CHILD RESTRAINTS.
(a) <<NOTE: Rules and regulations.>> In General.--Not later than 12
months after the date of the enactment of this Act, the Secretary of
Transportation shall initiate a rulemaking for the purpose of improving
the safety of child restraints, including minimizing head injuries from
side impact collisions.
[[Page 114 STAT. 1807]]
(b) Elements for Consideration.--In the rulemaking required by
subsection (a), the Secretary shall consider--
(1) whether to require more comprehensive tests for child
restraints than the current Federal motor vehicle safety
standards requires, including the use of dynamic tests that--
(A) replicate an array of crash conditions, such as
side-impact crashes and rear-impact crashes; and
(B) reflect the designs of passenger motor vehicles
as of the date of the enactment of this Act;
(2) whether to require the use of anthropomorphic test
devices that--
(A) represent a greater range of sizes of children
including the need to require the use of an
anthropomorphic test device that is representative of a
ten-year-old child; and
(B) are Hybrid III anthropomorphic test devices;
(3) whether to require improved protection from head
injuries in side-impact and rear-impact crashes;
(4) how to provide consumer information on the physical
compatibility of child restraints and vehicle seats on a model-
by-model basis;
(5) whether to prescribe clearer and simpler labels and
instructions required to be placed on child restraints;
(6) whether to amend Federal Motor Vehicle Safety Standard
No. 213 (49 CFR 571.213) to cover restraints for children
weighing up to 80 pounds;
(7) whether to establish booster seat performance and
structural integrity requirements to be dynamically tested in 3-
point lap and shoulder belts;
(8) whether to apply scaled injury criteria performance
levels, including neck injury, developed for Federal Motor
Vehicle Safety Standard No. 208 to child restraints and booster
seats covered by in Federal Motor Vehicle Safety Standard No.
213; and
(9) whether to include child restraint in each vehicle crash
tested under the New Car Assessment Program.
(c) Report to Congress.--If the Secretary does not incorporate any
element described in subsection (b) in the final rule, the Secretary
shall explain, in a report to the Senate Committee on Commerce, Science,
and Transportation and the House of Representatives Committee on
Commerce submitted within 30 days after issuing the final rule,
specifically why the Secretary did not incorporate any such element in
the final rule.
(d) Completion.--Notwithstanding any other provision of law, the
Secretary shall complete the rulemaking required by subsection (a) not
later than 24 months after the date of the enactment of this Act.
(e) Child Restraint Defined.--In this section, the term ``child
restraint'' has the meaning given the term ``Child restraint system'' in
section 571.213 of title 49, Code of Federal Regulations (as in effect
on the date of the enactment of this Act).
(f ) Funding.--For each fiscal year, of the funds made available to
the Secretary for activities relating to safety, not less than $750,000
shall be made available to carry out crash testing of child restraints.
(g) <<NOTE: Notice.>> Child Restraint Safety Ratings Program.--No
later than 12 months after the date of the enactment of this Act, the
Secretary
[[Page 114 STAT. 1808]]
of Transportation shall issue a notice of proposed rulemaking to
establish a child restraint safety rating consumer information program
to provide practicable, readily understandable, and timely information
to consumers for use in making informed decisions in the purchase of
child restraints. No later than <<NOTE: Rules and regulations.>> 24
months after the date of the enactment of this Act the Secretary shall
issue a final rule establishing a child restraint safety rating program
and providing other consumer information which the Secretary determines
would be useful consumers who purchase child restraint systems.
(h) Booster Seat Study.--In addition to consideration of booster
seat performance and structural integrity contained in subsection
(b)(7), not later than 12 months after the date of the enactment of this
Act, the Secretary of Transportation shall initiate and complete a
study, taking into account the views of the public, on the use and
effectiveness of automobile booster seats for children, compiling
information on the advantages and disadvantages of using booster seats
and determining the benefits, if any, to children from use of booster
with lap and shoulder belts compared to children using lap and shoulder
belts alone, and submit a report on the results of that study to the
Congress.
(i) Booster Seat Education Program.--The Secretary of Transportation
within 1 year after the date of the enactment of this Act shall develop
5 year strategic plan to reduce deaths and injuries caused by failure to
use the appropriate booster seat in the 4 to 8 year old age group by 25
percent.
SEC. 15. <<NOTE: Deadlines. 49 USC 30111 note.>> IMPROVING CRITERIA USED
IN A RECALL.
(a) Review of Standards and Criteria Used in Opening a Defect or
Noncompliance Investigation.--The Secretary shall, not later than 30
days after the date of the enactment of this Act, undertake a
comprehensive review of all standards, criteria, procedures, and
methods, including data management and analysis used by the National
Highway Traffic Safety Administration in determining whether to open a
defect or noncompliance investigation pursuant to subchapter II or IV of
chapter 301 of title 49, United States Code, and shall undertake such
steps as may be necessary to update and improve such standards,
criteria, procedures, or methods, including data management and
analysis.
(b) Report to Congress.--Not later than 1 year after the date of the
enactment of this Act, the Secretary shall transmit to the Committee on
Commerce of the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate a report describing the
Secretary's findings and actions under subsection (a).
SEC. 16. <<NOTE: Deadline. 49 USC 30115 note.>> FOLLOW-UP REPORT.
One year after the date of the enactment of this Act, the Secretary
of Transportation shall report to the Congress on the implementation of
the amendments made by this Act and any recommendations for additional
amendments for consumer safety.
SEC. 17. AUTHORIZATION OF APPROPRIATIONS.
In addition to any sums authorized to be appropriated by section
30104 or 32102 of title 49, United States Code, there is authorized to
be appropriated to the Secretary of Transportation for the National
Highway Traffic Safety Administration for fiscal year 2001 $9,100,000 to
carry out this Act and the amendments
[[Page 114 STAT. 1809]]
made by this Act. Such funds shall not be available for the general
administrative expenses of the Secretary or the Administration.
Approved November 1, 2000.
LEGISLATIVE HISTORY--H.R. 5164 (S. 3059):
---------------------------------------------------------------------------
HOUSE REPORTS: No. 106-954 (Comm. on Commerce).
SENATE REPORTS: No. 106-423 accompanying S. 3059 (Comm. on Commerce,
Science, and Transportation).
CONGRESSIONAL RECORD, Vol. 146 (2000):
Oct. 10, considered and passed House.
Oct. 11, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000):
Nov. 1, Presidential statement.
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