H. R. 5164

One Hundred Sixth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Monday,

the twenty-fourth day of January, two thousand

An Act

To amend title 49, United States 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 Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act’’.

SEC. 2. 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and Related Agencies Appropriations Act, 2001 are repealed and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. 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.’’.
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(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) 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
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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) 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) 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
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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:

‘‘§ 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),
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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 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 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.’’.
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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 Secretary of Transportation shall conduct a rulemaking

to revise and update the tire standards published at 49 CFR 571.109
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and 49 CFR 571.119. The Secretary shall complete the rulemaking

under this section not later than June 1, 2002.

SEC. 11. IMPROVED TIRE INFORMATION.

(a) TIRE LABELING.—Within 30 days after the date of the enactment of this Act, the Secretary of 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) 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) 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) 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. 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 requirement shall become effective not later than 2 years

after the date of the completion of such rulemaking.

SEC. 14. IMPROVING THE SAFETY OF CHILD RESTRAINTS.

(a) 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.
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(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 modelby-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) CHILD RESTRAINT SAFETY RATINGS PROGRAM.—No later than

12 months after the date of the enactment of this Act, the Secretary
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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 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. 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. 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
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made by this Act. Such funds shall not be available for the general

administrative expenses of the Secretary or the Administration.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.