```

[Senate Report 111-381]
[From the U.S. Government Publishing Office]

                                                      Calendar No. 653
111th Congress 
 2d Session                      SENATE                          Report
                                                                111-381
_______________________________________________________________________

                                     

                                                       

                    MOTOR VEHICLE SAFETY ACT OF 2010

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 3302

                                     

               December 21, 2010.--Ordered to be printed

                 U.S. GOVERNMENT PRINTING OFFICE
99-010                   WASHINGTON : 2010

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                     one hundred eleventh congress
                             second session

            JOHN D. ROCKEFELLER IV, West Virginia, Chairman
DANIEL K. INOUYE, Hawaii             KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts         OLYMPIA J. SNOWE, Maine
BYRON L. DORGAN, North Dakota        JOHN ENSIGN, Nevada
BARBARA BOXER, California            JIM DeMINT, South Carolina
BILL NELSON, Florida                 JOHN THUNE, South Dakota
MARIA CANTWELL, Washington           ROGER F. WICKER, Mississippi
FRANK R. LAUTENBERG, New Jersey      GEORGE S. LeMIEUX, Florida
MARK PRYOR, Arkansas                 JOHNNY ISAKSON, Georgia
CLAIRE McCASKILL, Missouri           DAVID VITTER, Louisiana
AMY KLOBUCHAR, Minnesota             SAM BROWNBACK, Kansas
TOM UDALL, New Mexico                MIKE JOHANNS, Nebraska
MARK WARNER, Virginia
MARK BEGICH, Alaska
                     Ellen Doneski, Staff Director
                   James Reid, Deputy Staff Director
                     Bruce Andrews, General Counsel
                 Ann Begeman, Republican Staff Director
              Brian Hendricks, Republican General Counsel
                Todd Bertoson, Republican Senior Counsel
                                                       Calendar No. 653

111th Congress                                                   Report
                                 SENATE
 2d Session                                                     111-381

======================================================================

 
                    MOTOR VEHICLE SAFETY ACT OF 2010

                                _______
                                

               December 21, 2010.--Ordered to be printed

                                _______
                                

     Mr. Rockefeller, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 3302]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 3302), to amend title 49, 
United States Code, to establish new automobile safety 
standards, make better motor vehicle safety information 
available to the National Highway Traffic Safety Administration 
and the public, and for other purposes, having considered the 
same, reports favorably thereon with an amendment (in the 
nature of a substitute) and recommends that the bill (as 
amended) do pass.

                          Purpose of the Bill

  The purpose of S. 3302, the Motor Vehicle Safety Act of 2010, 
is to improve automobile safety standards, make auto industry 
executives more accountable for safety information submitted to 
the Federal government, make vehicle safety information more 
transparent for consumers, reduce conflicts of interest between 
government agencies and the auto industry, and enhance 
authorities and funding levels of the National Highway Traffic 
Safety Administration (NHTSA) to address vehicle safety 
defects.

                          Background and Needs

  In 1970, Congress established NHTSA to administer safety 
programs previously handled by the National Highway Safety 
Bureau. Its mission is to save lives and prevent injuries due 
to road traffic accidents through education, safety standards, 
research, and enforcement activity. Among the broad areas of 
NHTSA's vehicle jurisdiction are safety standards, fuel economy 
standards, defect investigations, recalls, compliance testing, 
safety ratings, child restraints, tire standards, odometer 
fraud, theft deterrence through vehicle identification numbers 
(VINs), and international harmonization of vehicle standards.
  As of 2008, the Department of Transportation (DOT) estimates 
there are approximately 256 million vehicles on America's 
roads. In fiscal year (FY) 2010, General Fund appropriations 
for NHTSA's vehicle safety efforts totaled $140 million. NHTSA 
also received funding from The Highway Trust Fund in FY 2010, 
including $105 million to conduct highway safety research, and 
$619 million to administer safety grants for the States. In 
comparison, the Federal Aviation Administration's Safety 
Division was allocated approximately $1.2 billion in FY 2010 to 
oversee less than 250,000 commercial and general aviation 
aircraft.

VEHICLE DEFECT INVESTIGATION PROCESS

  NHTSA receives approximately 4,000 complaints each month from 
consumers regarding safety problems with vehicles. In addition, 
under the requirements of the TREAD Act of 2000 (P.L. 106-414), 
manufacturers are required to report to NHTSA on a quarterly 
basis aggregated data regarding consumer complaints submitted 
to the manufacturer, warranty claims related to certain vehicle 
components, as well as vehicle crashes that result in property 
damage, serious injury, or death that are alleged to have been 
caused by a safety defect. This ``Early Warning Reporting'' 
data is reviewed by the Defects Assessment Division at NHTSA in 
conjunction with the consumer complaints submitted directly to 
the agency. If the defects division notices a trend in vehicle 
problems reported, the issue is referred to NHTSA's Office of 
Defects Investigation (ODI), which may choose to open an 
investigation.
  Manufacturers are required to notify NHTSA within five days 
of finding a vehicle defect that jeopardizes safety. In many 
cases, the manufacturer moves directly to a recall without 
NHTSA's involvement. About 60 percent of all recalls are 
initiated in this manner. NHTSA has no jurisdiction over 
vehicle defects that are not safety-related. If a manufacturer 
finds a defect with the automobile, but determines it is not 
related to safety, there is no requirement that the 
manufacturer report it to NHTSA.
  If a consumer believes that NHTSA is not adequately 
investigating a safety concern, the consumer may submit a 
petition requesting NHTSA to open an official investigation 
into an alleged safety defect. If NHTSA determines the petition 
makes a plausible claim, a defect investigation is opened. If 
the petition is denied, NHTSA must publish the reasons for 
denial in the Federal Register.

SUDDEN UNINTENDED ACCELERATION INVESTIGATIONS

  In early 2010, auto safety entered the headlines due to 
concern about sudden unintended acceleration (SUA) in certain 
Toyota vehicles. In several widely reported incidents, Toyota 
vehicles sped out of control and drivers were unable to stop 
their vehicles. Toyota has conducted two separate recalls to 
address problems with acceleration and accelerator control in 
the past year. In a recall that was first announced in October 
2009 and widened a month later, Toyota recalled 4.6 million 
vehicles due to concerns that accelerator pedals could become 
trapped under floor mats. A January 2010 recall of ``sticky 
pedals'' in 2.3 million vehicles was conducted to resolve a 
defect in which accelerator pedals would be slow to return to 
idle. Although this problem did not lead to SUA, it had other 
safety implications.
  Investigations into SUA in Toyota vehicles have raised 
questions about whether the electronic throttle control systems 
that automakers first began installing in vehicles in the early 
2000s are responsible for these incidents. With electronic 
throttle control, instead of an accelerator pedal pulling a 
cable leading to the engine throttle, the new accelerator 
pedals have sensors that send electronic signals to the 
engine's computer for opening the throttle valve. The computer 
precisely calculates the correct air-to-fuel ratio, thus 
improving gas mileage and engine power. Some independent 
engineers and safety advocates have suggested that electronic 
failures could lead to incorrect information being sent to the 
throttle, causing unintended acceleration.
  After Toyota introduced electronic throttle controls in some 
of its model year 2002 vehicles, including the Camry, the 
company and NHTSA witnessed increases in driver complaints of 
SUA. Drivers reported that their vehicles unexpectedly lurched 
forward from a standstill, or accelerated at very high speeds, 
without the driver pressing the accelerator pedal. After safety 
complaints about SUA in Toyotas first arose in 2003, NHTSA 
investigated Lexus vehicles, which are made by Toyota. NHTSA 
did not find any safety defects.
  But, the persistently high level of complaints about SUA in 
Toyotas led NHTSA to open seven more investigations over the 
next six years. The next three investigations (2004, 2005, and 
2006) again found no safety defects. After the fifth 
investigation in 2007, and the eighth investigation in 2009, 
Toyota recalled vehicle floor mats that sometimes trapped 
accelerator pedals in place.
  Nearly every make and model of passenger vehicle has 
witnessed reports of SUA. Many of these have been blamed on 
driver error, with drivers stepping on the wrong pedal. While 
driver error can account for some of the reports of SUA, NHTSA 
data analyzed by Consumer Reports suggests that Toyota vehicles 
have a higher rate of such complaints than other vehicles, 
potentially indicating a problem with the vehicle, not the 
drivers. Consumer Reports' analysis of all 5,916 SUA complaints 
in NHTSA's database for 2008 model year vehicles found that 
Toyota had more such complaints than Chrysler, GM, Honda, and 
Nissan combined.\1\ The study also placed the SUA complaints in 
the context of market share as is demonstrated in the following 
chart: \2\
---------------------------------------------------------------------------
    \1\ ``Analysis shows over 40 percent of sudden-acceleration 
complaints involve Toyotas,'' Consumer Reports, December 7, 2009.
    \2\Complaints for 2008 model year vehicles submitted to NHTSA 
through August 28, 2009, prior to the media attention related to the 
Toyota SUA crashes.

----------------------------------------------------------------------------------------------------------------
                                        Number of SUA                                          Percentage of SUA
                                        Complaints for   Percentage of SUA     Automaker's      Complaints Above
              Automaker                 the 2008 Model       Complaints       Average Market    or Below Market
                                         Year                       Share 2007 & 2008        Share
----------------------------------------------------------------------------------------------------------------
Toyota..............................                 52                 41                 16                 25
Ford................................                 36                 28                 16                 12
Chrysler............................                 11                  9                 12                  3
GM..................................                  7                  5                 23                -18
Honda...............................                  5                  4                 10                 -6
Nissan..............................                  4                  3                  6                 -3
----------------------------------------------------------------------------------------------------------------

  According to this analysis, NHTSA received complaints of SUA 
for about one in every 50,000 Toyota vehicles made in model 
year 2008. In comparison, there was only one such complaint for 
every 500,000 GM vehicles from that same model year.\3\
---------------------------------------------------------------------------
    \3\ ``Analysis shows over 40 percent of sudden-acceleration 
complaints involve Toyotas,'' Consumer Reports, December 7, 2009.
---------------------------------------------------------------------------
  In addition, State Farm Mutual Automobile Insurance Company, 
the country's largest auto insurer, alerted NHTSA officials in 
2004 and 2007 that its claims data showed an unexpected jump in 
SUA incidents among Toyotas compared to other vehicles.\4\
---------------------------------------------------------------------------
    \4\ ``State Farm says it warned NHTSA on Toyota in 2007,'' The 
Washington Post, February 9, 2010.
---------------------------------------------------------------------------
  In December 2009, Toyota hired an independent firm, Exponent, 
to investigate its electronic throttle control system. After 
tests of six cars and more than 100 new and used engine parts, 
the firm said their investigators could not replicate SUA and 
had found no defect.\5\ However, engineers outside Toyota have 
pointed to several possible flaws in the Exponent study. Toyota 
states that it will continue hiring independent firms to 
research the problem; NHTSA officials also are taking a fresh 
look at the potential for software or electronics causing SUA. 
The agency has contracted with the National Aeronautics and 
Space Administration to examine the electronics in Toyota 
vehicles, and has contracted with the National Academy of 
Sciences to conduct a larger study of electronics in all 
vehicles.
---------------------------------------------------------------------------
    \5\ ``Suspicions linger over acceleration in Toyota Camrys,'' The 
Washington Post, February 20, 2010.
---------------------------------------------------------------------------

ADEQUACY OF NHTSA INVESTIGATIONS

  The issue of SUA has focused attention on the actions taken 
by NHTSA officials in the course of safety investigations and 
the relationship between the agency and the entities it 
regulates. Safety advocates complain that NHTSA officials 
failed to push Toyota to find the cause of SUA. The early NHTSA 
investigations into Toyota's SUA appear not to be as rigorous 
and thorough as merited.\6\
---------------------------------------------------------------------------
    \6\ ``Toyota Recall Shines Harsh Light On Safety Agency,'' National 
Public Radio, February 4, 2010.
---------------------------------------------------------------------------
  For example, in a 2004 investigation,\7\ NHTSA appears to 
have used a narrow definition of SUA which led to the under 
collection of data. Christopher Santucci, Toyota's manager of 
technical and regulatory affairs, who previously worked for 
NHTSA, said in a December 2009 court deposition that Toyota did 
not provide NHTSA with information about all SUA events because 
NHTSA wanted to limit the Toyota documents just to those 
involving unintended acceleration from a standstill.\8\ ``I 
recall [NHTSA] saying to us, Toyota, myself, that they were not 
interested in reports alleging uncontrolled acceleration that 
occurred for a long duration,'' Santucci testified.\9\ For that 
investigation, Toyota had identified 114 cases of potential 
SUA; but after NHTSA limited the investigation to SUA from a 
standstill, the inquiry was narrowed down to 11 incidents that 
resulted in five crashes, according to the deposition.\10\ 
Santucci testified that limiting the vehicles to short-duration 
incidents was beneficial for both Toyota and NHTSA. ``I think 
it worked out well for both the agency and Toyota, meaning 
Toyota provided what they were looking for,'' Santucci 
testified.\11\ The investigation was closed on July 22, 2004, 
when a NHTSA investigator concluded: ``A defect trend has not 
been identified at this time and further use of agency 
resources does not appear to be warranted. Accordingly, this 
investigation is closed.''\12\
---------------------------------------------------------------------------
    \7\ NHTSA PE04-021.
    \8\ ``Lawsuit Over a Crash Adds to Toyota's Difficulties,'' The New 
York Times, February 5, 2010.
    \9\ Id.
    \10\ ``U.S. Regulators Hired by Toyota Have Helped Deflect Past 
U.S. Car Safety Probes,'' Business Week, February 18, 2010.
    \11\ ``Lawsuit Over a Crash Adds to Toyota's Difficulties,'' The 
New York Times, February 5, 2010.
    \12\ NHTSA PE04-021.
---------------------------------------------------------------------------
  This limitation to SUA from a standstill may have 
inappropriately limited the investigation and biased the 
results. Complaints of SUA from a standstill have not created 
the most serious injuries and deaths, with the exception of a 
driver who was parked beside a cliff overlooking the Pacific 
Ocean.\13\ Instead, the most serious injuries and deaths have 
occurred when a car reportedly accelerated at full throttle to 
speeds of more than 80 mph over a long period of time after the 
car was already moving--incidents that fell outside NHTSA 
investigators' ``standstill'' definition of SUA.
---------------------------------------------------------------------------
    \13\ ``Toyota Recall Shines Harsh Light on Safety Agency,'' 
National Public Radio, February 4, 2010.
---------------------------------------------------------------------------
  NHTSA critics accuse the agency's investigators of having a 
bias toward mechanical rather than electronic explanations for 
defects. Because they could not find a mechanical explanation 
for SUA in many cases, critics assert that the investigators 
did not adequately search for other possible causes and were 
left with human error as an explanation. Allan Kam, a former 
NHTSA attorney who worked at the agency for 25 years said: 
``There tended to be sort of an institutional bias against 
sudden acceleration at [NHTSA]. This belief that, going back 
some years ago, that there's no such thing as sudden 
acceleration. It was just pedal misapplication.''\14\
---------------------------------------------------------------------------
    \14\ Id.
---------------------------------------------------------------------------
  Critics also have raised questions about whether NHTSA has 
adequate expertise and resources to investigate safety defects 
in a fleet of approximately 256 million vehicles in the United 
States. There is concern that NHTSA's limited staff must rely 
too heavily on automakers' explanations about whether a safety 
defect exists within engine computers and software.\15\ The 
Washington Post reported that 33 former NHTSA and DOT employees 
now work for automakers as lawyers, consultants, and lobbyists 
dealing with safety investigations, recalls, and 
regulations.\16\
---------------------------------------------------------------------------
    \15\ ``NHTSA overly reliant on carmakers' accounts during complaint 
review process,'' The Washington Post, February 5, 2010.
    \16\ ``Analysis finds uneasy mix in auto industry and regulation,'' 
The Washington Post, March 9, 2010.
---------------------------------------------------------------------------
  In addition, critics have raised concerns about the level of 
consideration provided to defect petitions filed by concerned 
individuals. Between 2003 and 2009, NHTSA received six 
petitions from consumers requesting that the agency open an 
investigation into Toyota SUA. Five of those petitions were 
rejected and the sixth was folded into an existing 
investigation. The Committee expects NHTSA to respond to defect 
petitions that present credible evidence that a defect or non-
compliance may exist. Where appropriate, NHTSA should consider 
the petition in context of other information and data provided 
to NHTSA by manufacturers and consumers.

                         Summary of Provisions

  As amended in Committee, the legislation would require NHTSA 
to issue new safety standards for passenger motor vehicles. The 
new standards would require that vehicles be able to stop 
within a certain distance even if the throttle is open; that 
vehicle electronics meet minimum safety standards; and that 
consumers have full access to event data recorders. The bill 
would raise the cap on civil penalties to better deter multi-
billion dollar multinational auto companies from violating 
safety regulations or withholding critical safety data from 
safety investigators. It would also grant the Secretary of 
Transportation (Secretary) authority to immediately stop the 
sale of vehicles with a defect that can cause death or serious 
bodily injury.
  To improve information for consumers, the bill would require 
more safety data submitted by manufacturers to NHTSA to be made 
available to the public. The bill would require NHTSA to update 
its consumer information website, and make it more user-
friendly. The bill would require manufactures to give consumers 
notice of software upgrades, which have become just as 
important to auto safety as mechanical parts. To encourage the 
reporting of vehicle defects, auto industry employees would 
receive the same whistleblower protections as airline workers.
  To promote corporate responsibility, the bill, as amended in 
Committee, would require the principal executive officer of a 
company residing in the U.S.--or a U.S.-based safety officer of 
the company who reports directly to the principal officer--to 
personally attest that information sent to NHTSA in response to 
a safety investigation is true and does not omit important 
information. The bill would prohibit NHTSA employees who work 
on vehicle safety issues from working for the auto industry for 
a period of three years in a position in which they advise the 
industry on vehicle safety regulation.
  To help NHTSA adequately enforce vehicle safety regulations, 
the bill would increase NHTSA's authorization levels. The 
initial increase would be weighted toward dramatically 
improving NHTSA's vehicle safety databases and public 
information, while also starting the process of hiring more 
vehicle safety engineers and inspectors. In later years, a 
greater share of the funding would be directed toward the 
steady hiring of additional safety personnel. The bill would 
also require NHTSA to establish a Council for Vehicle 
Electronics, Vehicle Software and Emerging Technologies to 
build, focus, and integrate expertise in vehicle electronics.
  To protect used car buyers, the bill would require auto 
dealers to determine if a used vehicle has any parts or other 
problems that have been recalled by the original manufacturer 
that have not been remedied. A dealer would then have the 
choice of having the recall work performed by a manufacturer's 
dealership, or providing conspicuous notice to the consumer 
that recalled parts or other problems with the used vehicle 
have not been remedied.
  During the Committee's Executive Session, amendments were 
adopted that would: (1) require NHTSA to issue a new safety 
standard requiring electric and hybrid vehicles to make a small 
amount of artificial noise at low speeds so that pedestrians--
especially blind pedestrians--can hear these cars approach; (2) 
authorize $12 million a year for fiscal years 2011 through 2015 
for NHTSA to research the potential of ``in-vehicle'' 
technology that would prevent a drunk driver from starting a 
vehicle; (3) require that all heavy- and medium-duty vehicles 
beginning in model year 2017 be equipped with event data 
recorders that meet requirements of the bill; (4) require the 
Council for Vehicle Electronics, Vehicle Software and Emerging 
Technologies to conduct research on the safety of using 
lightweight plastics as part of a vehicle's core structure; and 
(5) allow the Secretary to notify vehicle owners who fail to 
respond to a manufacturer's recall notice to remedy especially 
serious safety defects.

                          Legislative History

  On March 2, 2010, the Senate Committee on Commerce, Science, 
and Transportation held a hearing specifically on the issue of 
Toyota's recalls and NHTSA's response. To address the concerns 
raised during the hearing, on May 4, 2010, Chairman Rockefeller 
introduced S. 3302, the Motor Vehicle Safety Act of 2010, which 
was referred to the Committee for consideration. The Committee 
held a second hearing on May 19, 2010, to consider the 
legislation. The bill is co-sponsored by Senators Pryor, Snowe, 
Boxer, Cantwell, Lautenberg, McCaskill, Klobuchar, Udall, and 
Begich.
  On June 9, 2010, in an open Executive Session, the Committee 
considered the bill, which was modified by a substitute 
amendment. Senator Kerry offered an amendment to require NHTSA 
to issue a new safety standard requiring electric and hybrid 
vehicles to make a small amount of artificial noise at low 
speeds so that pedestrians--especially blind pedestrians--can 
hear these cars approach. Senator Udall offered an amendment to 
authorize $12 million a year for fiscal years 2011 through 2015 
for NHTSA to research the potential of ``in-vehicle'' 
technology that would prevent a drunk driver from starting a 
vehicle. Senator Udall also offered an amendment to require 
that all heavy- and medium-duty vehicles beginning in model 
year 2017 be equipped with event data recorders that meet 
requirements of the bill. Senator Warner offered an amendment 
to require the Council for Vehicle Electronics, Vehicle 
Software and Emerging Technologies to conduct research on the 
safety of using lightweight plastics as part of a vehicle's 
core structure. Senator Thune offered an amendment to allow the 
Secretary to notify vehicle owners who fail to respond to a 
manufacturer's recall notice to remedy especially serious 
safety defects. The Committee adopted these amendments as part 
of a managers' package and reported S. 3302 favorably by voice 
vote.
  Also during the Executive Session, Ranking Member Hutchison 
expressed an interest in revisiting the bill's authorization 
levels and new requirements for used car sales before 
consideration by the full Senate. Similarly, Senator McCaskill 
expressed the hope that the bill's corporate accountability 
requirements would be reviewed to ensure equal treatment of 
foreign and domestic manufacturers.
  In the House of Representatives, Representative Henry Waxman, 
Chairman of the House Committee on Energy and Commerce, 
introduced similar legislation on May 25, 2010, as H.R. 5381. 
On May 26, 2010, the House Committee ordered H.R. 5381 to be 
reported favorably with amendments.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

S. 3302--Motor Vehicle Safety Act of 2010

    Summary: S. 3302 would authorize the appropriation of an 
estimated $782 million over the 2011-2015 period for the 
National Highway Traffic Safety Administration (NHTSA) to 
establish new safety standards for certain vehicles, complete 
safety research, and make certain information more readily 
available to the public. Assuming appropriation of the 
specified amounts and the amounts estimated to be necessary, 
CBO estimates that implementing the bill would cost $761 
million over the 2011-2015 period.
    Pay-as-you-go procedures apply because enacting the 
legislation could affect revenues. The bill would increase 
certain civil penalties paid by vehicle manufacturers; such 
collections are classified as revenues in the budget. Based on 
information from NHTSA about historical penalty collections, 
CBO estimates that the expanded penalties would increase 
revenues by $1 million per year over the 2011-2020 period.
    S. 3302 contains an intergovernmental mandate as defined in 
the Unfunded Mandates Reform Act (UMRA) because it would 
preempt state laws relating to the safety standards for motor 
vehicles established by the bill. While that preemption would 
limit the application of state law, CBO estimates that it would 
impose no duty on state, local, or tribal governments that 
would result in additional spending.
    By placing new requirements on manufacturers of motor 
vehicles and used car dealerships, S. 3302 would impose 
private-sector mandates, as defined in UMRA. The cost of 
several of the mandates related to vehicle motor safety would 
depend on future regulations. However, because the requirements 
would apply to a large number of vehicles intended for sale in 
the United States each year, CBO estimates that the total cost 
of the mandates would probably exceed the annual threshold 
($141 million in 2010, adjusted annually for inflation) in at 
least one of the first five years the mandates are in effect.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 3302 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                                                                          2011-
                                                        2011      2012      2013      2014      2015      2015
----------------------------------------------------------------------------------------------------------------
                                 CHANGES IN SPENDING SUBJECT TO APPROPRIATION\a\

Estimated Authorization Level.......................       214       252       292        12        12       782
Estimated Outlays...................................       124       204       259       122        52       761
----------------------------------------------------------------------------------------------------------------
\a\CBO estimates that enacting S. 3302 also would increase revenues by $1 million a year over the 2011-2020
  period.

    Basis of estimate: For this estimate, CBO assumes that S. 
3302 will be enacted in 2010 and that the authorized amounts 
will be appropriated each year. Estimates of spending are based 
on historical spending patterns for similar programs.

Spending subject to appropriation

    S. 3302 would authorize appropriations of $780 million over 
the 2011-2015 period for certain NHTSA operations. CBO 
estimates that an additional $2 million would be necessary to 
carry out a rulemaking to require hybrid and electric vehicles 
to generate sounds. The bill would require NHTSA to create new 
regulations and to update certain safety regulations that are 
applied to motor vehicles. The agency would be required to 
complete new research and expedite other research on several 
topics related to the safety of motor vehicles, including 
research on detecting alcohol use by drivers. NHTSA also would 
be required to make certain information more readily available 
to the public, expand the capabilities of an existing telephone 
call center, and submit several new reports to the Congress. 
Based on information from NHTSA and assuming appropriation of 
the amounts specified and estimated to be necessary, CBO 
estimates that implementing those provisions would cost about 
$761 million over the 2011-2015 period.

Revenues

    H.R. 5381 would increase civil penalties paid by vehicle 
manufacturers who violate certain regulations governing motor 
vehicle safety. Collections of civil fines are recorded as 
revenues and deposited in the Treasury. Based on information 
from NHTSA about historical penalty collections and the number 
of violations, CBO estimates that the expanded penalties would 
increase revenues by $1 million per year over the 2011-2020 
period.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in revenues that are subject to those 
pay-as-you-go procedures are shown in the following table.

 CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 3302 AS ORDERED REPORTED BY THE SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ON JUNE 9, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 By fiscal year, in millions of dollars--
                                                 -------------------------------------------------------------------------------------------------------
                                                                                                                                           2010-   2010-
                                                   2010    2011    2012    2013    2014    2015    2016    2017    2018    2019    2020    2015    2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact..................       0      -1      -1      -1      -1      -1      -1      -1      -1      -1      -1      -5     -10
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Estimated impact on state, local, and tribal governments: 
S. 3302 contains an intergovernmental mandate as defined in 
UMRA because it would preempt state laws relating to the safety 
standards for motor vehicles required by the bill. While that 
preemption would limit the application of state law, CBO 
estimates that it would impose no duty on state, local, or 
tribal governments that would result in additional spending.
    Estimated impact on the private sector: By placing new 
requirements on manufacturers of motor vehicles and used car 
dealerships, S. 3302 would impose private-sector mandates, as 
defined in UMRA. The cost of several of the mandates related to 
vehicle motor safety would depend on future regulations. 
However, because the requirements would apply to a large number 
of vehicles intended for sale in the United States per year, 
CBO estimates that the total cost of the mandates would 
probably exceed the annual threshold ($141 million in 2010, 
adjusted annually for inflation) in at least one of the first 
five years the mandates are in effect.

Safety standards for passenger motor vehicles

    The bill would direct NHTSA to establish safety standards 
for such things as the configuration and labeling of gear shift 
controls, the control of vehicles with push-button ignition 
systems, and fail-safe systems for accelerator control systems. 
NHTSA estimates that the safety standards would apply to 12 
million to 17 million passenger motor vehicles annually over 
the next five years. Based on information from NHTSA and 
industry sources about the cost of potential requirements, CBO 
estimates that the cost to the industry to comply with the new 
standards could be significant. Because the types of safety 
requirements implemented would be determined by future 
regulations, CBO cannot estimate the cost of the mandates.

Event data recorders

    The bill would require manufacturers to install event data 
recorders (EDRs) in all passenger vehicles sold in the United 
States beginning in model year 2015 and in all medium-duty and 
heavy-duty vehicles by model year 2017. EDRs record information 
from a vehicle before, during, and after a safety event such as 
when an air bag is deployed.
    Information from industry sources indicates that it would 
cost each passenger car manufacturer $6 million in development 
costs and $5.50 per vehicle to install EDRs that meet existing 
standards. Most passenger cars now produced already include 
EDRs. However, EDRs would have to meet new standards to be 
established by NHTSA related to the types of events recorded, 
the length of the recording for each event, and the types of 
data stored. Because such standards would be determined by 
future regulations, CBO cannot estimate the cost of this 
mandate to the manufacturers of passenger vehicles.
    According to information from NHTSA, a few hundred thousand 
medium-duty and heavy-duty vehicles are produced each year. 
Because the cost to install EDRs on medium-duty and heavy-duty 
vehicles would depend upon future rules and regulations, CBO 
has no basis for determining the cost of the mandate to the 
manufacturers of medium-duty and heavy-duty vehicles.

Hybrid and electric vehicle sounds

    S. 3302 would require hybrid and electric vehicles to 
generate sounds that alert blind pedestrians when such a 
vehicle is operating nearby in a quiet mode. Based on 
information from NHTSA and industry sources on the number of 
vehicles that could be affected and the potential cost of 
installing such devices, CBO estimates that the cost of this 
mandate would be small relative to the annual threshold.

Notification of recalls by used car dealers

    The bill would require used-car dealers to notify each 
customer in writing of any recalls on a vehicles that have not 
been remedied before completing a sale or lease transaction. 
According to industry sources, about 27 million used vehicles 
are sold or leased by dealers per year and it would take about 
15 minutes per vehicle to prepare the required paperwork and 
search for any outstanding recalls. The direct cost of the 
mandate would primarily be any additional staffing expenses 
dealers would incur. Based on information from industry 
sources, CBO estimates that the direct cost of the mandate 
would be small relative to the annual threshold.

Other mandates

    CBO estimates that the incremental costs of several other 
private-sector mandates imposed by the bill would be minimal. 
For example, the legislation would require manufacturers of 
motor vehicles to:
           Make information about recalls and notices 
        of software upgrades available to customers on the 
        Internet;
           Place information about submitting a safety 
        related complaint to NHTSA in each automobile;
           Have a senior official responsible for 
        safety residing in the United States who would certify 
        certain information submitted to the Department of 
        Transportation;
           Send a mailing list of current owners of a 
        recalled vehicle to the Department of Transportation, 
        upon request;
           Not hire certain former NHTSA employees for 
        a period of 36 months after the employee stops working 
        at NHTSA; and
           Comply with whistleblower protections for 
        employees.
    Previous CBO estimate: On June 25, 2010, CBO transmitted a 
cost estimate for H.R. 5381, the Motor Vehicle Safety Act of 
2010, as ordered reported by the House Committee on Energy and 
Commerce on May 25, 2010. That bill would authorize 
appropriations of $1.1 billion and would impose a user fee that 
would offset some of the costs of the authorized 
appropriations. In total, CBO estimated that H.R. 5381 would 
authorize net appropriations of $876 million over the 2010-2015 
period. Each bill also contains both intergovernmental and 
private-sector mandates.
    Estimate prepared by: Federal spending: Sarah Puro; Federal 
revenues: Mark Booth; Impact on state, local, and tribal 
governments: Ryan Miller; Impact on the private sector: Samuel 
Wice.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

  The legislation would apply to: (1) motor vehicle 
manufacturers or motor vehicle equipment manufacturers that 
sell vehicles and equipment in the United States; (2) dealers 
and distributors of motor vehicles or motor vehicle equipment 
within the United States; (3) motor vehicle mechanics, and (4) 
persons, including corporations with vehicle fleets, who 
operate motor vehicles.

                            ECONOMIC IMPACT

  The legislation would affect the nation's economy to the 
extent that it would require, for specific kinds of 
information, persons covered under the bill to collect, retain, 
and report safety-related information regarding motor vehicles 
or motor vehicle equipment. Additional safety-related 
information may be required by the Secretary as a result of his 
or her authorized rulemaking authority, the economic impact of 
which cannot be defined until the rulemaking concludes. The 
legislation also may require automakers to install some new 
safety features on passenger motor vehicles. CBO estimates that 
the cost to the industry to comply with the new standards could 
be significant, but cannot be calculated before the completion 
of required rulemakings.

                         PRIVACY AND PAPERWORK

  The impact on the personal privacy of the persons covered by 
this legislation is difficult to define prior to the completion 
of the Secretary's rulemaking proceedings authorized under the 
legislation. The required rulemaking on event data recorders 
may result in the collection of private information, but the 
bill clarifies that any such information would remain the 
property of the vehicle's owner or lessee. The outcome of these 
rulemaking proceedings will also determine whether paperwork 
requirements will be necessary.

                   Congressionally Directed Spending

  In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.

                      Section-by-Section Analysis

Section 1. Short Title

  Section 1 would establish the short title of the Act as the 
``Motor Vehicle Safety Act of 2010.'' The section also contains 
a Table of Contents.

Section 2. Definitions

  Section 2 would define ``passenger motor vehicle'' for 
purposes of the Act as a motor vehicle under 10,000 pounds 
gross vehicular weight, but not including a motorcycle, low 
speed vehicle or trailer. The section also would define 
``Secretary'' as the Secretary of Transportation, acting 
through the Administrator of NHTSA.

           Title I--Vehicle Electronics and Safety Standards.

Section 101. NHTSA Electronics, Software and Engineering Expertise

  Section 101 would establish within NHTSA a Council for 
Vehicle Electronics, Vehicle Software and Emerging Technologies 
(Council) to build, focus and integrate expertise in vehicle 
electronics. The section also would charge the Council with 
investigating the safety of lightweight plastics used in motor 
vehicles and assessing implications of emerging safety 
technologies in consultation with affected stakeholders, 
including safety advocacy groups. The section would establish 
an ``Honors Recruitment Program'' to train engineering students 
for a career in vehicle safety. During the Committee hearings, 
the Committee received testimony that NHTSA only had two 
electronics engineers to assess today's vehicles. NHTSA at the 
time had no software engineers, although computers now run many 
vehicle functions, including acceleration.

Section 102. Vehicle Stopping Distance and Brake Override Standard.

  Section 102 would require the Secretary to initiate a 
rulemaking to prescribe a motor vehicle safety standard by 
which every new passenger motor vehicle must be able to stop 
safely by normal brake application, even when the engine is 
receiving accelerator input signals. In issuing the rule, the 
Secretary would be permitted to allow vehicles to temporarily 
suspend the safety function for times when both brake and 
accelerator need to be applied together, such as on a steep 
hill or for maneuvering a trailer. The rule would require the 
installation of redundant circuits or mechanisms for the 
accelerator control system in the event that the primary 
circuit or mechanism fails. The section would require the 
Secretary to issue the final rule within one year after 
enactment. While the Secretary may permit compliance with the 
new standard through the incorporation of ``brake override'' 
technology that instructs engine computers to allow the brake 
to override the accelerator pedal, the section is technology 
neutral. If a better technology or mechanism emerges for 
stopping vehicles while the vehicle receives accelerator 
inputs, the automakers would be free to adopt it.

Section 103. Pedal Placement Standard.

  Section 103 would require the Secretary to consider issuing a 
rule to require minimum distances between floor pedals, minimum 
distances between foot pedals and the vehicle floor, and 
minimum distances to account for any other potential 
obstructions to pedal movement. The Secretary would be required 
to issue the rule within 3 years after enactment, or, if the 
Secretary determines that a standard is not warranted, transmit 
to Congress a report stating the reasons for not issuing a 
rule.

Section 104. Electronic Systems Performance Standard.

  Section 104 would require the Secretary to issue a rule 
requiring passenger vehicles to meet minimum performance 
standards for electronic systems, taking into account 
electronic components, the interaction of electronic 
components, or the effect of surrounding environments on the 
entire vehicle electronic systems. The Secretary would be 
required to issue the rule within 4 years after enactment. The 
Committee notes that while there already are several industry-
wide standards for electronics that most automakers meet, new 
entrants to the U.S. auto market and existing manufacturers are 
under no obligation to meet those industry standards. 
Therefore, a Federal regulation setting minimum electronics 
standard would help to ensure that all vehicles sold in the 
United States have safe electronics systems.

Section 105. Push-Button Ignition Systems Standard.

  Section 105 would require the Secretary to initiate a 
rulemaking to consider issuing a rule that establishes a 
uniform protocol by which a driver who may be unfamiliar with 
the vehicle uses a push-button ignition system during an 
emergency situation. The Secretary would be required to issue 
the rule within 2 years after enactment, or, if the Secretary 
determines that a standard is not warranted, transmit to 
Congress a report stating the reasons for not issuing a rule. 
The Committee expects that the Secretary would use discretion 
in determining which types of push-button systems would be 
required to have standardized operations pursuant to any rule 
issued under this section, and does not anticipate that systems 
that require the physical insertion of a tangible key device to 
start the ignition would necessitate such a rule.

Section 106. Transmission Labeling Standard.

  Section 106 would require the Secretary to consider issuing a 
rule that requires accurate labeling for gear shifting 
controls, including for drivers not familiar with the vehicle. 
The Secretary would be required to issue the rule within 2 
years after enactment, or, if the Secretary determines that a 
standard is not warranted, transmit to Congress a report 
stating the reasons for not issuing a rule.

Section 107. Vehicle Event Data Recorders Standard.

  Subsection 107(a) would direct the Secretary to revise part 
563 of title 49 of the Code of Federal Regulations to require 
that new vehicles sold in the United States beginning with the 
2015 model year be equipped with event data recorders (EDRs) 
that meet the standards set forth in that part. Subsection (b) 
would establish that the data in an EDR is the property of the 
owner or lessee of the passenger vehicle. The subsection 
further provides that data from the EDR may not be retrieved by 
a third party without the consent of the owner or lessee, 
except pursuant to a court order, pursuant to an authorized 
NHTSA investigation and then only if personally identifiable 
information is not disclosed, or for the purpose of 
facilitating emergency medical response. Subsection (c) would 
require the Secretary to issue, within 3 years after enactment, 
a rule for new data requirements for passenger motor vehicle 
EDRs. Subsection (d) would establish specifications for the 
rule to be issued under subsection (c), including a requirement 
that the EDR store data covering a reasonable time before and 
after a triggering event, a requirement that data stored be 
accessible with commercially available equipment, a requirement 
for preventing unauthorized access to stored data, a direction 
that the Secretary consider requiring an interoperable data 
access port, and a prohibition on the EDR recording vehicle 
location information for purposes other than facilitating 
emergency medical response in the event of a crash. Subsection 
(e) would require manufacturers to disclose the existence and 
purpose of the EDR to purchasers of passenger motor vehicles. 
Subsection (f) would clarify that NHTSA would have access to 
EDR data pursuant to an investigation authorized by section 
30166(c)(3)(C) of title 49, subject to the privacy limitations 
of subsection (b). Subsection (g) would require the Secretary 
to require all new medium-duty and heavy-duty vehicles sold in 
the United States beginning with the 2017 model year to be 
equipped with an EDR.

                 Title II--Enhanced Safety Authorities

Section 201. Civil Penalties.

  Section 201(a) would increase the per-vehicle civil penalty 
from $5,000 to $25,000, and raise the overall cap on civil 
penalties from $15 million to $300 million for auto 
manufacturers that intentionally fail to report vehicle safety 
defects to NHTSA, or that intentionally provide misleading 
information to NHTSA. Before issuing a fine, the Secretary 
would be required to consider several relevant factors in 
setting the level of the fine, including the nature of the 
violation, the severity of the risk of injury, actions taken by 
the person charged to identify, investigate or mitigate the 
violation, the nature of the defect or noncompliance, and the 
size of the company. Subsection (b) would require the Secretary 
to issue a final regulation, within 1 year after enactment, 
providing the Secretary's interpretation of the penalty factors 
set forth in subsection (a).

Section 202. Imminent Hazard Authority.

  Section 202 would give the Secretary authority to expedite 
the process of a recall in the event that the vehicle defect 
``presents a substantial likelihood of death or serious injury 
to the public if not discontinued immediately.'' The Secretary 
would be required, within 2 years after enactment, to establish 
procedures and circumstances by which this extraordinary 
authority would be used.

               Title III--Transparency and Accountability

Section 301. Public Availability of Early Warning Data.

  Section 301 would reverse the presumption under the TREAD Act 
that none of the information submitted by manufacturers should 
be made public, unless the Secretary determines that it should, 
in favor of requiring the disclosure of the maximum amount of 
safety information to the public, while at the same time still 
giving the Secretary the authority to protect confidential, 
competitive business information from public disclosure. 
Section 301(a) would amend section 30166(m) of title 49 by 
codifying certain types of data that auto manufacturers would 
be required to submit to NHTSA. Subsection (b) would require 
the Secretary to issue regulations within 2 years after the 
date of enactment establishing categories of early warning data 
that must be made available to the public and categories that 
may be confidential and exempt from public disclosure. 
Subsection (c) would require the Secretary to consult with the 
Director of the Office of Government Information Services in 
the National Archives and the Director of the Office of 
Information Policy of the Department of Justice in conducting 
the rulemaking under this section. Subsection (d) would require 
the Secretary to favor maximum public availability of 
information in issuing a rule under subsection (b) and would 
provide that vehicle safety defect information related to 
incidents involving death or injury, aggregated numbers of 
property damage claims, and aggregated numbers of consumer 
complaints related to potential vehicle defects are 
presumptively not confidential information and eligible for 
protection under section 552(b) of title 5. Greater 
transparency and public disclosure is intended to facilitate 
the identification of potential safety defects by NHTSA, 
manufacturers, and safety advocates, and help consumers make 
informed decisions about passenger motor vehicles. The 
Committee expects the Secretary to expeditiously provide the 
public with access to nonconfidential data in a format that 
promotes ease of use and transparency.

Section 302. Improved NHTSA Vehicle Safety Database.

  Subsection 302(a) would require NHTSA to modernize its 
vehicle safety databases to facilitate public access by 
improving their organization and functionality, standardizing 
search terms, and posting aggregate data files for easy 
download. Subsection (b) would require the Secretary to 
establish a means by which an individual could search by 
vehicle identification number and determine whether a vehicle 
was subject to a safety recall and whether the safety issue 
related to such recall had been remedied. The subsection would 
allow the Secretary of Transportation to accomplish this by 
requiring automakers to provide such recall information at no 
cost on their own web sites.

Section 303. Consumer Notice of Software Updates and Other 
        Communications with Dealers.

  Section 303 would require manufacturers to notify the 
Secretary, and to publish on their web sites, notices to 
dealers and owner communications, including software updates, 
so that consumers will be better informed about potential 
safety issues affecting their vehicles. Many of the ``fixes'' 
for defective vehicles--such as the remedies for the Toyota 
Prius braking system and the Lexus GX stability control 
system--involve reprogramming the vehicle's software. Some 
software updates are done through recalls. However, some 
software updates are performed during routine maintenance at 
dealerships often without the knowledge of the vehicle owner. 
The section would require manufacturers to provide a plain 
language description of such communications that summarizes all 
the pertinent consumer information and to provide an index to 
each communication that identifies the make, model, and model 
year of the affected vehicles. The Secretary would be required 
to make the index and summary available to the public on the 
Internet in searchable format. The section is meant to 
facilitate, not supplant, public access to dealer and consumer 
communications submitted to NHTSA that may be sought through 
the Freedom of Information Act (FOIA). The Committee expects 
NHTSA to respond in a timely manner to all FOIA requests.

Section 304. Promotion of Vehicle Defect Reporting.

  Section 304 would require the placement of a sticker or other 
notification in the glove box or other location accessible by 
the consumer with plain language about how to contact NHTSA to 
report a potential vehicle safety defect.

Section 305. NHTSA Hotline for Manufacturer, Dealer, and Mechanic 
        Personnel.

  Section 305 would require NHTSA to establish a ``hotline'' 
for mechanics and other auto industry workers to confidentially 
report potential vehicle defects.

Section 306. Whistleblower Protections For Motor Vehicle Manufacturer, 
        Part Supplier and Dealership Employees.

  Section 306 would amend subchapter IV of chapter 301 of title 
49 to establish protections against retaliation for auto 
industry executives, production workers, dealership employees 
and mechanics who provide information related to a motor 
vehicle defect or violation of law. The whistleblower 
protections set forth in this section are consistent with the 
protection currently provided to airline employees.
  Specifically, the section would provide that no motor vehicle 
manufacturer, part supplier, or dealership may discharge or 
otherwise discriminate against an employee because the 
employee: provided or is about to provide to the employer or 
the Secretary information relating to a motor vehicle defect or 
violation of chapter 301 of title 49; has filed or is about to 
file a proceeding related to a violation of a motor vehicle 
safety defect or violation of the chapter; testified, assisted 
or is about to testify or assist in such a proceeding; or 
objected to, or refused to participate in, any activity that 
the employee reasonably believed to be in violation of any 
provision of any Act enforced by the Secretary. Under the 
section, a person who believes they have been discharged or 
discriminated against in violation of the above would be able 
to file a complaint with the Secretary of Labor within 180 days 
after the date of the violation. The complaint must make a 
prima facia showing.
  Within 60 days after receipt of the complaint and after 
affording opportunity for response from the person named in the 
complaint, the Secretary of Labor would be required to conduct 
an investigation. If the Secretary of Labor concluded that 
there is reasonable cause to believe a violation has occurred, 
the Secretary of Labor would issue a preliminary order with 
findings. The person named in the complaint would be able to 
object to the order and findings and seek a hearing. If a 
hearing is not requested in 30 days, the preliminary order 
would be deemed final.
  The section further provides that, after a hearing, the 
Secretary of Labor would be required to issue a final order 
within 120 days. Upon a finding of a violation, the Secretary 
of Labor in a final order would be able to require the person 
who committed the violation to take affirmative action to abate 
the violation, reinstate the complainant, and provide 
compensatory damages. If a complaint is determined to be 
frivolous, the Secretary of Labor would be able to award the 
prevailing employer a reasonable attorney's fee not to exceed 
$1,000. If the Secretary of Labor has not issued a final order 
within 210 days of the filing of a complaint, the complainant 
would be allowed to bring an action in the district court of 
the United States. Final orders would be appealable to the 
United States Circuit Court of Appeals. If an employer does not 
comply with a final order, the Secretary of Labor would be able 
to file a civil action in the United States District Court to 
enforce that order.

Section 307. Corporate Responsibility for NHTSA Reports.

  Subsection 307(a) would direct the Secretary to require, for 
each company submitting information in response to a request 
for information in a safety defect or compliance investigation, 
that a principal officer certify that the signing officer has 
reviewed the submission and, based on the officer's knowledge, 
the submission does not contain an untrue statement of a 
material fact or omit a material fact. For purposes of this 
section, a principal officer means an officer of the company 
who resides in the United States who is responsible for safety 
compliance under U.S. laws and who reports directly to the 
principal executive office of the company or the principal 
executive officer of the company residing in the United States.
  Subsection 307(b) would establish that a person who knowingly 
and willfully submits materially false, misleading, or 
incomplete information to the Secretary, after certifying the 
same pursuant to subsection (a), would be subject to a civil 
penalty of not more than $50,000 per day with a maximum penalty 
for a related series of violations of $10,000,000. The 
subsection further provides that a person who violates section 
1001 of title 18 with the specific intent of misleading the 
Secretary with respect to a motor vehicle safety defect would 
be subject to imprisonment for not more than 12 months in 
addition to the penalties set forth in section 1001 of title 
18.
  The certification process is similar to that established for 
executive officers under the Sarbanes-Oxley Act of 2002. On May 
18, 2010, Toyota paid a fine of $16.4 million, without 
admitting wrongdoing, after NHTSA found that it had failed to 
report a safety defect related to certain accelerator pedals in 
a timely manner. In addition to improving the accuracy of 
submissions to NHTSA, it is hoped that this section will reduce 
such failures to report defects to NHTSA by requiring a senior 
officer in the company to participate in the review of such 
filings.
  The section would seek to strike a balance between making 
sure a senior executive with authority to influence corporate 
policy is closely overseeing reporting to NHTSA with 
facilitating the flow of information to NHTSA. The Committee 
understands that NHTSA may seek information through a series of 
information requests and companies may wish to provide 
information to NHTSA as it becomes available. The Committee 
supports the free flow of information and application of this 
section to enable NHTSA to receive information as quickly as 
possible. The Committee notes that liability under the section 
applies only to a knowing and willful violation that is 
material and not to unintentional omissions and misstatements.

Section 308. Anti-Revolving Door.

  Subsection 308(a) would prohibit a covered NHTSA employee to 
commence employment with, or otherwise advise or represent, a 
manufacturer or other person subject to regulation under 
chapter 301 of title 49 during the 36-month period after 
leaving NHTSA, if such employment involves communicating with 
NHTSA with respect to compliance with safety regulations, 
representing or advising a manufacturer with respect to a motor 
vehicle safety or fuel economy issue, or assisting a 
manufacturer in responding to a request for information from 
NHTSA. Covered NHTSA employees would be defined as individuals 
to whom section 207 (c) or (d) of title 18 applies or whose 
responsibilities during their last 12 months of employment at 
NHTSA included administrative, managerial, supervisory, legal, 
or senior technical responsibility for any motor vehicle 
safety-related program or activity. The subsection would not 
apply to individuals employed by a manufacturer or other 
covered entity as of the date of enactment.
  Subsection 308(a) would also prohibit a manufacturer or other 
covered entity from employing or contracting for the services 
of a covered individual during the 36 month period following 
his or her departure from NHTSA. The subsection would establish 
that persons violating the provision would be subject to civil 
penalties as set forth in section 216(b) of title 18, and 
manufacturers or other covered entities who violate the 
provision would be subject to a penalty of not less than 
$100,000 and an amount equal to 90 percent of the annual 
compensation or fee paid to the individual with respect to whom 
the violation occurred.
  Subsection 308(b) would direct the DOT Inspector General to 
review the Department's policies and procedures applicable to 
official communications with former employees concerning motor 
vehicle safety compliance matters for which they had 
responsibility during the last 12 months of their employment 
and submit a report containing his findings, conclusions, and 
recommendations, within 1 year, to the Committee and the House 
of Representatives Committee on Energy and Commerce.
  Subsection 308(c) would direct the DOT Inspector General to 
study the Department's policies relating to post-employment 
restrictions on employees who perform functions related to 
transportation safety and submit, within 1 year, to the 
Committee and the House of Representatives Committee on Energy 
and Commerce, a report containing his findings, conclusions, 
and recommendations.

Section 309. Deadlines for Rulemaking.

  Section 309 would require the Secretary to notify Congress if 
a rulemaking deadline will not be met, explain the reason for 
the delay, and establish a new deadline.

Section 310. Used Passenger Motor Vehicle Consumer Protection.

  Section 310 would prohibit a dealer from selling or leasing a 
used passenger motor vehicle until the dealer clearly and 
conspicuously notifies the purchaser or lessee of any 
outstanding notifications of safety defects with respect to a 
vehicle that have not been remedied and the purchaser or lessee 
acknowledges such notification in writing. The requirement 
would not apply to a dealer to the extent that recall 
information regarding a vehicle was not accessible at the time 
of the sale or lease through the search function established by 
NHTSA under section 302(b) of the Act. The section further 
provides that the Secretary may exempt by rule vehicles that 
are auctioned. The Committee notes that many used vehicles are 
sold at auction to dealers and not directly to consumers. The 
section would provide the Secretary with flexibility to exempt 
such business to business transactions. The section would be 
effective 18 months after enactment.

Section 311. Use of Existing Regulatory Framework.

  Section 311 would provide that, in conducting a rulemaking 
required by this Act, the Secretary would, where appropriate, 
amend or modify existing regulations or standards pertaining to 
the same or similar subject matter. However, the Secretary 
would not be required to amend or modify existing regulations 
or standards for any rulemaking, if the Secretary determines 
that such a change does not further the goal of safety.

Section 312. Recalled Vehicles and Replacement Equipment.

  Section 312 would authorize the Secretary to have the DOT 
individually notify vehicle owners of the importance of a 
particular safety recall, if the Secretary determines that the 
first and second recall notices of a manufacturer have failed 
to result in an adequate number of recall remedies. The section 
would authorize the Secretary to use government databases, or 
require manufacturers to provide vehicle owner information, to 
enable the Secretary to locate and notify vehicle owners of the 
recall.

                           Title IV--Funding

Section 401. Authorization of Appropriations.

  Section 401 would increase authorizations for NHTSA's vehicle 
safety functions to $200 million in FY 2011, $240 million in FY 
2012, and $280 million in FY 2013. In FY 2010, Congress 
allocated NHTSA $140 million for vehicle safety operations, 
including rulemakings, investigations, and enforcement. 
Testimony before Congress during the Toyota hearings 
illustrated that NHTSA does not have enough people or resources 
to adequately enforce vehicle safety regulations for 
approximately 256 million vehicles on American roads. NHTSA 
also lacks the expertise to investigate automobile software 
that now controls many vehicle safety functions. The Committee 
expects the initial increase would be weighted toward improving 
NHTSA's vehicle safety databases and information collection, 
while also starting the process of hiring additional personnel. 
In FY 2012 and FY 2013, an increasingly greater share of the 
funding would be directed toward the steady hiring of more auto 
safety engineers, vehicle inspectors, and enforcement 
personnel.

                 Title V--Pedestrian Safety Enhancement

Section 501. Short Title.

  This section would provide that the title may be cited as the 
``Pedestrian Safety Enhancement Act of 2010.''

Section 502. Definitions.

  Section 502 would set forth the definitions used in the 
title.

Section 503. Minimum Sound Requirement for Motor Vehicles.

  Subsection 503(a) would require the Secretary, within 18 
months after enactment, to initiate a rulemaking to promulgate 
a motor vehicle safety standard to establish performance 
requirements for an alert sound that allows blind and other 
pedestrians to reasonably detect a nearby electric or hybrid 
vehicle operating below a cross-over speed and require new 
electric or hybrid vehicles to provide an alert sound 
conforming to the standard. Subsection (b) would require the 
Secretary to determine the minimum level of sound emitted from 
a motor vehicle that is necessary to provide pedestrians with 
the information needed to reasonably detect a nearby electric 
or hybrid vehicle, determine the performance requirements for 
an alert sound that is recognizable, and consider the overall 
community noise impact. Subsection (c) would establish a phase-
in period of 3 years after the date on which the final rule is 
issued. Subsection (d) would require the Secretary, in 
conducting the study and rulemaking, to consult with various 
entities including automobile manufacturers, the Environmental 
Protection Agency, and consumer groups. Subsection (e) would 
require the Secretary within 48 months of the date after 
enactment to study and report to Congress whether there exists 
a safety need to apply the motor vehicle safety standard 
required by subsection (a) to conventional motor vehicles.

Section 504. Authorization of Appropriations.

  Section 504 would authorize such sums as may be necessary to 
carry out this title.

         Title VI--In-vehicle Alcohol Detection Device Research

Section 601. Short Title.

  This section would provide that the title may be cited as the 
``Research of Alcohol Detection Systems for Stopping Alcohol-
related Fatalities Everywhere Act of 2010,'' or the ``ROADS 
SAFE Act of 2010.''

Section 602. Findings.

  Section 602 would set forth findings by Congress about the 
need for alcohol detection technologies in motor vehicles.

Section 603. Driver Alcohol Detection System For Safety Research.

  Subsection 603(a) would direct the Administrator of NHTSA to 
carry out a collaborative research effort to continue to 
explore the feasibility and the potential benefits of 
widespread deployment of in vehicle technology to prevent 
alcohol-impaired driving. Subsection (b) would require the 
Administrator to submit a report to the Committee and the House 
of Representatives Committee on Energy and Commerce describing 
progress in the research effort and including an accounting for 
the use of Federal funds expanded in carrying out the effort.

Section 604. Definitions.

  Section 604 would set forth the definitions used in the 
title.

Section 605. Application With Other Laws.

  Section 605 would provide that nothing in this title would be 
construed to modify or otherwise affect any Federal, State, or 
local government law, civil or criminal, with respect to the 
operation of a motor vehicle.

Section 606. Authorization of Appropriations.

  Section 606 would authorize to be appropriated $12,000,000 
for each of FYs 2011 through 2015 to carry out subsection (a). 
The section would further provide that any amounts appropriated 
that are not needed to carry out the research may be used by 
the Secretary for highway safety research in accordance with 
chapter 301 of title 49.

                      Rollcall Votes in Committee

  Senator Hutchison made a motion to report S. 3302 out of the 
Committee, and to incorporate amendments by Sen. Kerry (Title 
V), Sen. Udall (Title VI, and electronic data recorders for 
commercial vehicles in section 107), Sen. Thune (section 312), 
and Sen. Warner (lightweight plastics research in section 101). 
The motion was seconded, and Chairman Rockefeller called for 
the yeas and nays. The Chairman ruled that S. 3302 was reported 
out of Committee by voice vote.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                        TITLE 49. TRANSPORTATION

             SUBTITLE VI. MOTOR VEHICLE AND DRIVER PROGRAMS

                            PART A. GENERAL

                   CHAPTER 301. MOTOR VEHICLE SAFETY

                         SUBCHAPTER I. GENERAL

Sec. 30104. Authorization of appropriations

  There is authorized to be appropriated to the Secretary 
[$98,313,500] for the National Highway Traffic Safety 
Administration to carry out this part [in each fiscal year 
beginning in fiscal year 1999 and ending in fiscal year 2001.] 
and to carry out the Motor Vehicle Safety Act of 2010--
          (1) $200,000,000 for fiscal year 2011;
          (2) $240,000,000 for fiscal year 2012; and
          (3) $280,000,000 for fiscal year 2013.

           *       *       *       *       *       *       *

Sec. 30107. Restriction on certain employment activities

  (a) NHTSA Employees.--
          (1) In general.--A individual to whom this subsection 
        applies who is employed by the National Highway Traffic 
        Safety Administration may not commence employment with, 
        or otherwise advise, provide assistance to, or 
        represent for compensation, a manufacturer or other 
        person subject to regulation under this chapter during 
        the 36-month period commencing upon that individual's 
        termination of employment with the National Highway 
        Traffic Safety Administration if such employment, 
        advice, assistance, or representation involves--
                  (A) written or oral communication with the 
                National Highway Traffic Safety Administration 
                on any matter relating to compliance with the 
                requirements of this chapter on behalf of the 
                manufacturer or person;
                  (B) representing or advising a manufacturer 
                with respect to a motor vehicle safety or fuel 
                economy issue, including any defect related to 
                motor vehicle safety, compliance with a motor 
                vehicle safety standard, or compliance with an 
                average fuel economy standard prescribed under 
                chapter 329 of this title; or
                  (C) assisting a manufacturer in responding to 
                a request for information from the National 
                Highway Traffic Safety Administration.
          (2) Application.--
                  (A) In general.--This subsection applies to 
                any individual--
                          (i) to whom section 207 (c) or (d) of 
                        title 18 applies; or
                          (ii) whose responsibilities during 
                        his or her last 12 months of employment 
                        at the National Highway Traffic Safety 
                        Administration included administrative, 
                        managerial, supervisory, legal, or 
                        senior technical responsibility for any 
                        motor vehicle safety-related program or 
                        activity.
          (3) Safe harbor.--This subsection does not apply to 
        any individual employed by a manufacturer or other 
        person subject to regulation under this chapter as of 
        the date of enactment of the Motor Vehicle Safety Act 
        of 2010.
  (b) Manufacturers.--It is unlawful for any manufacturer or 
other person subject to regulation under this chapter to employ 
or contract for the services of an individual to whom 
subsection (a) applies during the 36-month period commencing on 
the individual's termination of employment with the National 
Highway Traffic Safety Administration in a capacity in which 
the individual is prohibited from serving during that period.

                   CHAPTER 301. MOTOR VEHICLE SAFETY

                SUBCHAPTER II. STANDARDS AND COMPLIANCE

Sec. 30118. Notification of defects and noncompliance

  (a) Notification by Secretary.--The Secretary of 
Transportation shall notify the manufacturer of a motor vehicle 
or replacement equipment immediately after making an initial 
decision (through testing, inspection, investigation, or 
research carried out under this chapter, examining 
communications under section 30166(f) of this title, or 
otherwise) that the vehicle or equipment contains a defect 
related to motor vehicle safety or does not comply with an 
applicable motor vehicle safety standard prescribed under this 
chapter. The notification shall include the information on 
which the decision is based. The Secretary shall publish a 
notice of each decision under this subsection in the Federal 
Register. Subject to section 30167(a) of this title, the 
notification and information are available to any interested 
person.
  (b) Defect and Noncompliance Proceedings and Orders.--
          (1) The Secretary may make a final decision 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 
        prescribed under this chapter only after giving the 
        manufacturer an opportunity to present information, 
        views, and arguments showing that there is no defect or 
        noncompliance or that the defect does not affect motor 
        vehicle safety. Any interested person also shall be 
        given an opportunity to present information, views, and 
        arguments.
          (2) If the Secretary of Transportation in making a 
        decision under subsection (a) initially decides that 
        such defect or noncompliance presents a substantial 
        likelihood of death or serious injury to the public if 
        not discontinued immediately, the Secretary shall 
        notify the manufacturer of the decision that the 
        vehicle or replacement equipment poses an imminent 
        safety hazard to the public and the basis for that 
        decision. Not later than 10 days after the initial 
        decision, the manufacturer and interested persons shall 
        be given an opportunity to present information, views, 
        and arguments to the Secretary. The Secretary shall 
        consider such information, views and arguments and may 
        make a final decision as to whether 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 prescribed 
        under this chapter.
          [(2)] (3) If the Secretary decides under paragraph 
        (1) or (2) of this subsection that the vehicle or 
        equipment contains the defect or does not comply, the 
        Secretary shall order the manufacturer to--
                  (A) give notification under section 30119 of 
                this title to the owners, purchasers, and 
                dealers of the vehicle or equipment of the 
                defect or noncompliance; and
                  (B) remedy the defect or noncompliance under 
                section 30120 of this title.
  (c) Notification by Manufacturer.--A manufacturer of a motor 
vehicle or replacement equipment shall notify the Secretary by 
certified mail, and the owners, purchasers, and dealers of the 
vehicle or equipment as provided in section 30119(d) of this 
section, if the manufacturer--
          (1) learns the vehicle or equipment contains a defect 
        and decides in good faith that the defect is related to 
        motor vehicle safety; or
          (2) decides in good faith that the vehicle or 
        equipment does not comply with an applicable motor 
        vehicle safety standard prescribed under this chapter.
  (d) Exemptions.--On application of a manufacturer, the 
Secretary shall exempt the manufacturer from this section if 
the Secretary decides a defect or noncompliance is 
inconsequential to motor vehicle safety. The Secretary may take 
action under this subsection only after notice in the Federal 
Register and an opportunity for any interested person to 
present information, views, and arguments.
  (e) Hearings About Meeting Notification Requirements.--On the 
motion of the Secretary or on petition of any interested 
person, the Secretary may conduct a hearing to decide whether 
the manufacturer has reasonably met the notification 
requirements under this section. Any interested person may make 
written and oral presentations of information, views, and 
arguments on whether the manufacturer has reasonably met the 
notification requirements. If the Secretary decides that the 
manufacturer has not reasonably met the notification 
requirements, the Secretary shall order the manufacturer to 
take specified action to meet those requirements and may take 
any other action authorized under this chapter.

Sec. 30119. Notification procedures

  (a) Contents of Notification.--Notification by a manufacturer 
required under section 30118 of this title of a defect or 
noncompliance shall contain--
          (1) a clear description of the defect or 
        noncompliance;
          (2) an evaluation of the risk to motor vehicle safety 
        reasonably related to the defect or noncompliance;
          (3) the measures to be taken to obtain a remedy of 
        the defect or noncompliance;
          (4) a statement that the manufacturer giving notice 
        will remedy the defect or noncompliance without charge 
        under section 30120 of this title;
          (5) the earliest date on which the defect or 
        noncompliance will be remedied without charge, and for 
        tires, the period during which the defect or 
        noncompliance will be remedied without charge under 
        section 30120 of this title;
          (6) the procedure the recipient of a notice is to 
        follow to inform the Secretary of Transportation when a 
        manufacturer, distributor, or dealer does not remedy 
        the defect or noncompliance without charge under 
        section 30120 of this title; and
          (7) other information the Secretary prescribes by 
        regulation.
  (b) Earliest Remedy Date.--The date specified by a 
manufacturer in a notification under subsection (a)(5) of this 
section or section 30121(c)(2) of this title is the earliest 
date that parts and facilities reasonably can be expected to be 
available to remedy the defect or noncompliance. The Secretary 
may disapprove the date.
  (c) Time for Notification.--Notification required under 
section 30118 of this title shall be given within a reasonable 
time--
          (1) prescribed by the Secretary, after the 
        manufacturer receives notice of a final decision under 
        section 30118(b) of this title; or
          (2) after the manufacturer first decides that a 
        safety-related defect or noncompliance exists under 
        section 30118(c) of this title.
  (d) Means of Providing Notification.--
          (1) Notification required under section 30118 of this 
        title about a motor vehicle shall be sent by first 
        class mail--
                  (A) to each person registered under State law 
                as the owner and whose name and address are 
                reasonably ascertainable by the manufacturer 
                through State records or other available 
                sources; or
                  (B) if a registered owner is not notified 
                under clause (A) of this paragraph, to the most 
                recent purchaser known to the manufacturer.
          (2) Notification required under section 30118 of this 
        title about replacement equipment (except a tire) shall 
        be sent by first class mail to the most recent 
        purchaser known to the manufacturer. In addition, if 
        the Secretary decides that public notice is required 
        for motor vehicle safety, public notice shall be given 
        in the way required by the Secretary after consulting 
        with the manufacturer.
          (3) Notification required under section 30118 of this 
        title about a tire shall be sent by first class mail 
        (or, if the manufacturer prefers, by certified mail) to 
        the most recent purchaser known to the manufacturer. In 
        addition, if the Secretary decides that public notice 
        is required for motor vehicle safety, public notice 
        shall be given in the way required by the Secretary 
        after consulting with the manufacturer. In deciding 
        whether public notice is required, the Secretary shall 
        consider--
                  (A) the magnitude of the risk to motor 
                vehicle safety caused by the defect or 
                noncompliance; and
                  (B) the cost of public notice compared to the 
                additional number of owners the notice may 
                reach.
          (4) A dealer to whom a motor vehicle or replacement 
        equipment was delivered shall be notified by certified 
        mail or quicker means if available.
  (e) Second Notification.--If the Secretary decides that a 
notification sent by a manufacturer under this section has not 
resulted in an adequate number of motor vehicles or items of 
replacement equipment being returned for remedy, the Secretary 
may order the manufacturer to send a 2d notification in the way 
the Secretary prescribes by regulation. If, in the Secretary's 
judgment, depending on the severity of the defect or 
noncompliance, the second notification by a manufacturer does 
not result in an adequate number of passenger motor vehicles or 
items of replacement equipment being returned for remedy, the 
Secretary may--
          (1) attempt to notify the registered owner of the 
        recalled vehicle via first class mail or electronic 
        means; and
          (2) explain in writing to the registered owner the 
        safety risk posed by the defect or noncompliance.
  (f) Notification by Lessor to Lessee.--
          (1) In this subsection, ``leased motor vehicle'' 
        means a motor vehicle that is leased to a person for at 
        least 4 months by a lessor that has leased at least 5 
        motor vehicles in the 12 months before the date of the 
        notification.
          (2) A lessor that receives a notification required by 
        section 30118 of this title about a leased motor 
        vehicle shall provide a copy of the notification to the 
        lessee in the way the Secretary prescribes by 
        regulation.
  (g) Locating Owners or Lessees.--Depending on the magnitude 
of the risk to passenger motor vehicle safety, in the case of 
severe and life-threatening defects the Secretary may utilize, 
as appropriate, governmental motor vehicle databases or require 
manufacturers to provide sufficient information to enable the 
Secretary to locate and notify the owner or lessee of the 
defective or noncompliant vehicle or replacement equipment.

Sec.  30120. Remedies for defects and noncompliance

  (a) Ways to Remedy.--
          (1) Subject to subsections (f) and (g) of this 
        section, when notification of a defect or noncompliance 
        is required under section 80118(b) or (c) of this 
        title, the manufacturer of the defective or 
        noncomplying motor vehicle or replacement equipment 
        shall remedy the defect or noncompliance without charge 
        when the vehicle or equipment is presented for remedy. 
        Subject to subsections (b) and (c) of this section, the 
        manufacturer shall remedy the defect or noncompliance 
        in any of the following ways the manufacturer chooses:
                  (A) if a vehicle--
                          (i) by repairing the vehicle;
                          (ii) by replacing the vehicle with an 
                        identical or reasonably equivalent 
                        vehicle; or
                          (iii) by refunding the purchase 
                        price, less a reasonable allowance for 
                        depreciation.
                  (B) if replacement equipment, by repairing 
                the equipment or replacing the equipment with 
                identical or reasonably equivalent equipment.
          (2) The Secretary of Transportation may prescribe 
        regulations to allow the manufacturer to impose 
        conditions on the replacement of a motor vehicle or 
        refund of its price.
  (b) Tire Remedies.--
          (1) A manufacturer of a tire, including an original 
        equipment tire, shall remedy a defective or 
        noncomplying tire if the owner or purchaser presents 
        the tire for remedy not later than 60 days after the 
        later of--
                  (A) the day the owner or purchaser receives 
                notification under section 30119 of this title; 
                or
                  (B) if the manufacturer decides to replace 
                the tire, the day the owner or purchaser 
                receives notification that a replacement is 
                available.
          (2) If the manufacturer decides to replace the tire 
        and the replacement is not available during the 60-day 
        period, the owner or purchaser must present the tire 
        for remedy during a subsequent 60-day period that 
        begins only after the owner or purchaser receives 
        notification that a replacement will be available 
        during the subsequent period. If tires are available 
        during the subsequent period, only a tire presented for 
        remedy during that period must be remedied.
  (c) Adequacy of Repairs.--
          (1) If a manufacturer decides to repair a defective 
        or noncomplying motor vehicle or replacement equipment 
        and the repair is not done adequately within a 
        reasonable time, the manufacturer shall--
                  (A) replace the vehicle or equipment without 
                charge with an identical or reasonably 
                equivalent vehicle or equipment; or
                  (B) for a vehicle, refund the purchase price, 
                less a reasonable allowance for depreciation.
          (2) Failure to repair a motor vehicle or replacement 
        equipment adequately not later than 60 days after its 
        presentation is prima facie evidence of failure to 
        repair within a reasonable time. However, the Secretary 
        may extend, by order, the 60-day period if good cause 
        for an extension is shown and the reason is published 
        in the Federal Register before the period ends. 
        Presentation of a vehicle or equipment for repair 
        before the date specified by a manufacturer in a notice 
        under section 30119(a)(5) or 30121(c)(2) of this title 
        is not a presentation under this subsection.
          (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.
  (d) Filing Manufacturer's Remedy Program.--A manufacturer 
shall file with the Secretary a copy of the manufacturer's 
program under this section for remedying a defect or 
noncompliance. The Secretary shall make the program available 
to the public and publish a notice of availability in the 
Federal Register. 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. 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.
  (e) Hearings About Meeting Remedy Requirements.--On the 
motion of the Secretary or on application by any interested 
person, the Secretary may conduct a hearing to decide whether 
the manufacturer has reasonably met the remedy requirements 
under this section. Any interested person may make written and 
oral presentations of information, views, and arguments on 
whether the manufacturer has reasonably met the remedy 
requirements. If the Secretary decides a manufacturer has not 
reasonably met the remedy requirements, the Secretary shall 
order the manufacturer to take specified action to meet those 
requirements and may take any other action authorized under 
this chapter.
  (f) Fair Reimbursement to Dealers.--A manufacturer shall pay 
fair reimbursement to a dealer providing a remedy without 
charge under this section.
  (g) Nonapplication.--
          (1) The requirement that a remedy be provided without 
        charge does not apply if the motor vehicle or 
        replacement equipment was bought by the first purchaser 
        more than 10 calendar years, or the tire, including an 
        original equipment tire, was bought by the first 
        purchaser more than 5 calendar years, before notice is 
        given under section 30118(c) of this title or an order 
        is issued under section 30118(b) of this title, 
        whichever is earlier.
          (2) This section does not apply during any period in 
        which enforcement of an order under section 30118(b) of 
        this title is restrained or the order is set aside in a 
        civil action to which section 30121(d) of this title 
        applies.
  (h) Exemptions.--On application of a manufacturer, the 
Secretary shall exempt the manufacturer from this section if 
the Secretary decides a defect or noncompliance is 
inconsequential to motor vehicle safety. The Secretary may take 
action under this subsection only after notice in the Federal 
Register and an opportunity for any interested person to 
present information, views, and arguments.
  (i) Limitation on Sale or Lease.--
          (1) If 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.
          (2) This subsection does not prohibit a dealer from 
        offering for sale or lease the vehicle or equipment.
  (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.
  (k) Limitation on Sale or Lease of Used Motor Vehicles.--
          (1) A dealer may not sell or lease a used passenger 
        motor vehicle until--
                  (A) the dealer clearly and conspicuously 
                notifies the purchaser or lessee, in writing, 
                of any notifications of a defect or 
                noncompliance pursuant to section 30118(b) or 
                section 30118(c) of this title with respect to 
                the vehicle that have not been remedied; and
                  (B) the purchaser or lessee acknowledges, in 
                writing, the receipt of such notification.
          (2) Paragraph (1) shall not apply if--
                  (A) the defect or noncompliance is remedied 
                as required by this section before delivery 
                under the sale or lease; or
                  (B) 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 30121(d) 
                applies.
          (3) This subsection does not apply to a dealer, if 
        the recall information regarding a used passenger motor 
        vehicle was not accessible at the time of sale or lease 
        using the means established by the Secretary in section 
        302(b) of the Motor Vehicle Safety Act of 2010.
          (4) In this subsection, notwithstanding section 
        30102(a)(1) of this title--
                  (A) the term ``dealer'' means a person who 
                sold at least 10 motor vehicles to consumers 
                during the prior 12 months; and
                  (B) the term ``used motor vehicle'' means a 
                motor vehicle that has previously been 
                purchased other than for resale.
          (5) By rule, the Secretary may exempt the auctioning 
        of used motor vehicles from the requirements of this 
        section to the extent that the exemption does not harm 
        public safety.

                   CHAPTER 301. MOTOR VEHICLE SAFETY

             SUBCHAPTER IV. ENFORCEMENT AND ADMINISTRATIVE

Sec. 30165. Civil penalty

  (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] $25,000 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.] $300,000,000.
          (2) School buses.--
                  (A) In general.--Notwithstanding paragraph 
                (1), the maximum amount of a civil penalty 
                under this paragraph shall be $10,000 in the 
                case of--
                          (i) the manufacture, sale, offer for 
                        sale, introduction or delivery for 
                        introduction into interstate commerce, 
                        or importation of a school bus or 
                        school bus equipment (as those terms 
                        are defined in section 30125(a) of this 
                        title) in violation of section 
                        30112(a)(1) of this title; or
                          (ii) a violation of section 
                        30112(a)(2) of this title.
                  (B) Related series of violations. 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 that section. The maximum penalty under this 
                paragraph for a related series of violations is 
                $15,000,000.
          (3) Section 30166.--[A person] Except as provided in 
        paragraph (4), 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] $25,000 per violation 
        per day. The maximum penalty under this paragraph for a 
        related series of daily violations is [$15,000,000.] 
        $300,000,000.
          (4) False, misleading or incomplete reports.--A 
        person who knowingly and willfully submits materially 
        false, misleading, or incomplete information to the 
        Secretary, after certifying the same information as 
        accurate and complete under the certification process 
        established pursuant to section 30166(o), shall be 
        subject to a civil penalty of not more than $50,000 per 
        day. The maximum penalty under this paragraph for a 
        related series of daily violations is $10,000,000.
          (5) Section 30107.--An individual who violates 
        section 30107(a) is liable to the United States 
        Government for a civil penalty as determined under 
        section 216(b) of title 18 for an offense under section 
        207 of that title. A manufacturer or other person 
        subject to regulation under this chapter who violates 
        section 30107(b) is liable to the United States 
        Government for a civil penalty of the sum of--
                  (A) an amount equal to not less than 
                $100,000; and
                  (B) an amount equal to 90 percent of the 
                annual compensation or fee paid or payable to 
                the individual with respect to whom the 
                violation occurred.
  (b) Compromise and Setoff.--
          (1) The Secretary of Transportation may compromise 
        the amount of a civil penalty imposed under this 
        section.
          (2) The Government may deduct the amount of a civil 
        penalty imposed or compromised under this section from 
        amounts it owes the person liable for the penalty.
  [(c) Considerations.--In determining the amount of a civil 
penalty or compromise, the appropriateness of the penalty or 
compromise to the size of the business of the person charged 
and the gravity of the violation shall be considered.]
  (c) Relevant Factors in Determining Amount of Penalty or 
Compromise.--In determining the amount of a civil penalty or 
compromise, the nature, circumstances, extent, and gravity of 
the violation shall be considered. The determination shall 
include, where appropriate, the nature of the defect or 
noncompliance, knowledge by the person charged of its 
obligation to recall or notify the public, the severity of the 
risk of injury, the occurrence or absence of injury, the number 
of motor vehicles or items of motor vehicle equipment 
distributed with the defect or noncompliance, the existence of 
an imminent hazard, actions taken by the person charged to 
identify, investigate, or mitigate the condition, the 
appropriateness of such penalty in relation to the size of the 
business of the person charged, including the potential for 
undue adverse economic impacts on small business, and such 
other factors as appropriate.
  (d) Subpenas for Witnesses.--In a civil action brought under 
this section, a subpena for a witness may be served in any 
judicial district.

Sec. 30166. Inspections, investigations, and records

  (a) Definition.--In this section, ``motor vehicle accident'' 
means an occurrence associated with the maintenance or 
operation of a motor vehicle or motor vehicle equipment 
resulting in personal injury, death, or property damage.
  (b) Authority To Inspect and Investigate.--
          (1) The Secretary of Transportation may conduct an 
        inspection or investigation--
                  (A) that may be necessary to enforce this 
                chapter or a regulation prescribed or order 
                issued under this chapter; or
                  (B) related to a motor vehicle accident and 
                designed to carry out this chapter.
          (2) The Secretary of Transportation shall cooperate 
        with State and local officials to the greatest extent 
        possible in an inspection or investigation under 
        paragraph (1)(B) of this subsection.
  (c) Matters That Can Be Inspected and Impoundment.--In 
carrying out this chapter, an officer or employee designated by 
the Secretary of Transportation--
          (1) at reasonable times, may inspect and copy any 
        record related to this chapter;
          (2) on request, may inspect records of a 
        manufacturer, distributor, or dealer to decide whether 
        the manufacturer, distributor, or dealer has complied 
        or is complying with this chapter or a regulation 
        prescribed or order issued under this chapter; and
          (3) at reasonable times, in a reasonable way, and on 
        display of proper credentials and written notice to an 
        owner, operator, or agent in charge, may--
                  (A) enter and inspect with reasonable 
                promptness premises in which a motor vehicle or 
                motor vehicle equipment is manufactured, held 
                for introduction in interstate commerce, or 
                held for sale after introduction in interstate 
                commerce;
                  (B) enter and inspect with reasonable 
                promptness premises at which a vehicle or 
                equipment involved in a motor vehicle accident 
                is located;
                  (C) inspect with reasonable promptness that 
                vehicle or equipment; and
                  (D) impound for not more than 72 hours a 
                vehicle or equipment involved in a motor 
                vehicle accident.
  (d) Reasonable Compensation.--When a motor vehicle (except a 
vehicle subject to subchapter I of chapter 135 of this title) 
or motor vehicle equipment is inspected or temporarily 
impounded under subsection (c)(3) of this section, the 
Secretary of Transportation shall pay reasonable compensation 
to the owner of the vehicle if the inspection or impoundment 
results in denial of use, or reduction in value, of the 
vehicle.
  (e) Records and Making Reports.--The Secretary of 
Transportation reasonably may require a manufacturer of a motor 
vehicle or motor vehicle equipment to keep records, and a 
manufacturer, distributor, or dealer to make reports, to enable 
the Secretary to decide whether the manufacturer, distributor, 
or dealer has complied or is complying with this chapter or a 
regulation prescribed or order issued under this chapter. This 
subsection does not impose a recordkeeping requirement on a 
distributor or dealer in addition to those imposed under 
subsection (f) of this section and section 30117(b) of this 
title or a regulation prescribed or order issued under 
subsection (f) or section 30117(b).
  (f) Providing Copies of Communications About Defects and 
Noncompliance.--A manufacturer shall give the Secretary of 
[Transportation] Transportation, and make available on a 
publicly accessible Internet website, a true or representative 
copy of each communication to the manufacturer's dealers or to 
owners or purchasers of a motor vehicle or replacement 
equipment produced by the manufacturer about a defect or 
noncompliance with a motor vehicle safety standard prescribed 
under this chapter in a vehicle or equipment that is sold or 
serviced. Communications submitted to the Secretary and 
required to be published on a manufacturer's Internet website 
shall include all notices to dealerships of software upgrades 
and modifications recommended by a manufacturer for all 
previously sold vehicles. Notice is required even if the 
software upgrade or modification is not related to a safety 
defect or noncompliance with a motor vehicle safety standard. 
The notice shall include a plain language description of the 
purpose of the update and that description shall be prominently 
placed at the beginning of the notice. Communications required 
to be submitted to the Secretary under this subsection shall be 
accompanied by an index to each communication which identifies 
the make, model, and model year of the affected vehicles and a 
concise summary of the subject matter of the communication. The 
index shall be made available by the Secretary to the public on 
the Internet in a searchable format.
  (g) Administrative Authority on Reports, Answers, and 
Hearings.--
          (1) In carrying out this chapter, the Secretary of 
        Transportation may--
                  (A) require, by general or special order, any 
                person to file reports or answers to specific 
                questions, including reports or answers under 
                oath; and
                  (B) conduct hearings, administer oaths, take 
                testimony, and require (by subpena or 
                otherwise) the appearance and testimony of 
                witnesses and the production of records the 
                Secretary considers advisable.
          (2) A witness summoned under this subsection is 
        entitled to the same fee and mileage the witness would 
        have been paid in a court of the United States.
  (h) Civil Actions To Enforce and Venue.--A civil action to 
enforce a subpena or order under subsection (g) of this section 
may be brought in the United States district court for any 
judicial district in which the proceeding is conducted. The 
court may punish a failure to obey an order of the court to 
comply with a subpena or order as a contempt of court.
  (i) Governmental Cooperation.--The Secretary of 
Transportation may request a department, agency, or 
instrumentality of the United States Government to provide 
records the Secretary considers necessary to carry out this 
chapter. The head of the department, agency, or instrumentality 
shall provide the record on request, may detail personnel on a 
reimbursable basis, and otherwise shall cooperate with the 
Secretary. This subsection does not affect a law limiting the 
authority of a department, agency, or instrumentality to 
provide information to another department, agency, or 
instrumentality.
  (j) Cooperation of Secretary.--The Secretary of 
Transportation may advise, assist, and cooperate with 
departments, agencies, and instrumentalities of the Government, 
States, and other public and private agencies in developing a 
method for inspecting and testing to determine compliance with 
a motor vehicle safety standard.
  (k) Providing Information.--The Secretary of Transportation 
shall provide the Attorney General and, when appropriate, the 
Secretary of the Treasury, information obtained that indicates 
a violation of this chapter or a regulation prescribed or order 
issued under this chapter.
  (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.
  (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.]
                          (ii) customer satisfaction campaigns, 
                        customer advisories, recalls, consumer 
                        complaints, warranty claims, field 
                        reports, technical service bulletins, 
                        or other activity involving the repair 
                        or replacement of motor vehicles or 
                        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 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.]
                  (C) Disclosure.--The information provided to 
                the Secretary pursuant to this subsection shall 
                be disclosed publicly unless exempt from 
                disclosure under section 552(b) of title 5.
                  (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.
  (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 order is 
                restrained or the order is set aside in a civil 
                action to which section 30121(d) applies.
  (o) Corporate Responsibility for Reports.--
          (1) In general.--The Secretary shall require for each 
        company submitting information to the Secretary in 
        response to a request for information in a safety 
        defect or compliance investigation under this chapter, 
        that a principal officer certify that--
                  (A) the signing officer has reviewed the 
                submission; and
                  (B) based on the officer's knowledge, the 
                submission does not contain any untrue 
                statement of a material fact or omit to state a 
                material fact necessary in order to make the 
                statements made, in light of the circumstances 
                under which such statements were made, not 
                misleading.
          (2) Notice.--The certification requirements of this 
        section shall be clearly stated on any request for 
        information under paragraph (1).
          (3) Definition of principal officer.--In this 
        section, the term ``principal officer'' means--
                  (A) an officer of the company who resides in 
                the United States who is responsible for safety 
                compliance under United States laws and reports 
                directly to the principal executive officer of 
                the company; or
                  (B) the principal executive officer residing 
                in the United States.

Sec. 30170. Criminal Penalties

  (a) Criminal Liability for Falsifying or Withholding 
Information.--
          (1) Submitting misleading information to the 
        secretary.--A person who violates section 1001 of title 
        18 with respect to the reporting requirements of 
        section 30118, 30119, or 30166 with the specific intent 
        of misleading the Secretary with respect to motor 
        vehicle or motor vehicle equipment safety related 
        defects shall, in addition to the penalties imposed 
        under title 18, be subject to imprisonment for not more 
        than an additional 12 months.
          [(1) General rule.--] (2) Submitting misleading 
        information to the secretary that leads to death or 
        serious injury._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), shall be subject to criminal penalties of a fine 
        under title 18, or imprisoned for not more than 15 
        years, or both.
          [(2)] (3) 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.]
                  (A) Correction.--A person described in 
                paragraph (1) or (2) shall not be subject to 
                criminal penalties under this subsection if--
                          (i) the person corrects any improper 
                        reports or failure to report within a 
                        reasonable time; and
                          (ii) in the case of a person 
                        described in paragraph (2), 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.
                  (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.

Sec. 30171. Protection of employees providing motor vehicle safety 
                    information

  (a) Discrimination Against Employees of Manufacturers, Part 
Suppliers, and Dealerships.--No motor vehicle manufacturer, 
part supplier, or dealership may discharge an employee or 
otherwise discriminate against an employee with respect to 
compensation, terms, conditions, or privileges of employment 
because the employee (or any person acting pursuant to a 
request of the employee)--
          (1) provided, caused to be provided, or is about to 
        provide (with any knowledge of the employer) or cause 
        to be provided to the employer or the Secretary 
        information relating to any motor vehicle defect or any 
        violation or alleged violation of any notification or 
        reporting requirement of this chapter;
          (3) has filed, caused to be filed, or is about to 
        file (with any knowledge of the employer) or cause to 
        be filed a proceeding relating to any violation or 
        alleged violation of any motor vehicle defect or any 
        violation or alleged violation of any notification or 
        reporting requirement of this chapter;
          (3) testified or is about to testify in such a 
        proceeding;
          (4) assisted or participated or is about to assist or 
        participate in such a proceeding; or
          (5) objected to, or refused to participate in, any 
        activity that the employee reasonably believed to be in 
        violation of any provision of any Act enforced by the 
        Secretary of Transportation, or any order, rule, 
        regulation, standard, or ban under any such Act.
  (b) Complaint Procedure.--
          (1) Filing and notification.--A person who believes 
        that he or she has been discharged or otherwise 
        discriminated against by any person in violation of 
        subsection (a) may, not later than 180 days after the 
        date on which such violation occurs, file (or have any 
        person file on his or her behalf) a complaint with the 
        Secretary of Labor alleging such discharge or 
        discrimination. Upon receipt of such a complaint, the 
        Secretary shall notify, in writing, the person named in 
        the complaint of the filing of the complaint, of the 
        allegations contained in the complaint, of the 
        substance of evidence supporting the complaint, and of 
        the opportunities that will be afforded to such person 
        under paragraph (2).
          (2) Investigation; preliminary order.--
                  (A) In general.--Not later than 60 days after 
                the date of receipt of a complaint filed under 
                paragraph (1) and after affording the person 
                named in the complaint an opportunity to submit 
                to the Secretary a written response to the 
                complaint and an opportunity to meet with a 
                representative of the Secretary to present 
                statements from witnesses, the Secretary shall 
                conduct an investigation and determine whether 
                there is reasonable cause to believe that the 
                complaint has merit and notify, in writing, the 
                complainant and the person alleged to have 
                committed a violation of subsection (a) of the 
                Secretary's findings. If the Secretary 
                concludes that there is a reasonable cause to 
                believe that a violation of subsection (a) has 
                occurred, the Secretary shall accompany the 
                Secretary's findings with a preliminary order 
                providing the relief prescribed by paragraph 
                (3)(B). Not later than 30 days after the date 
                of notification of findings under this 
                paragraph, either the person alleged to have 
                committed the violation or the complainant may 
                file objections to the findings or preliminary 
                order, or both, and request a hearing on the 
                record. The filing of such objections shall not 
                operate to stay any reinstatement remedy 
                contained in the preliminary order. Such 
                hearings shall be conducted expeditiously. If a 
                hearing is not requested in such 30-day period, 
                the preliminary order shall be deemed a final 
                order that is not subject to judicial review.
                  (B) Requirements.--
                          (i) Required showing by 
                        complainant.--The Secretary shall 
                        dismiss a complaint filed under this 
                        subsection and shall not conduct an 
                        investigation otherwise required under 
                        subparagraph (A) unless the complainant 
                        makes a prima facie showing that any 
                        behavior described in paragraphs (1) 
                        through (4) of subsection (a) was a 
                        contributing factor in the unfavorable 
                        personnel action alleged in the 
                        complaint.
                          (ii) Showing by employer.--
                        Notwithstanding a finding by the 
                        Secretary that the complainant has made 
                        the showing required under clause (i), 
                        no investigation otherwise required 
                        under subparagraph (A) shall be 
                        conducted if the employer demonstrates, 
                        by clear and convincing evidence, that 
                        the employer would have taken the same 
                        unfavorable personnel action in the 
                        absence of that behavior.
                          (iii) Criteria for determination by 
                        secretary.--The Secretary may determine 
                        that a violation of subsection (a) has 
                        occurred only if the complainant 
                        demonstrates that any behavior 
                        described in paragraphs (1) through (4) 
                        of subsection (a) was a contributing 
                        factor in the unfavorable personnel 
                        action alleged in the complaint.
                          (iv) Prohibition.--Relief may not be 
                        ordered under subparagraph (A) if the 
                        employer demonstrates by clear and 
                        convincing evidence that the employer 
                        would have taken the same unfavorable 
                        personnel action in the absence of that 
                        behavior.
          (3) Final order.--
                  (A) Deadline for issuance; settlement 
                agreements.--Not later than 120 days after the 
                date of conclusion of a hearing under paragraph 
                (2), the Secretary shall issue a final order 
                providing the relief prescribed by this 
                paragraph or denying the complaint. At any time 
                before issuance of a final order, a proceeding 
                under this subsection may be terminated on the 
                basis of a settlement agreement entered into by 
                the Secretary, the complainant, and the person 
                alleged to have committed the violation.
                  (B) Remedy.--If, in response to a complaint 
                filed under paragraph (1), the Secretary 
                determines that a violation of subsection (a) 
                has occurred, the Secretary shall order the 
                person who committed such violation--
                          (i) to take affirmative action to 
                        abate the violation;
                          (ii) to reinstate the complainant to 
                        his or her former position together 
                        with the compensation (including back 
                        pay) and restore the terms, conditions, 
                        and privileges associated with his or 
                        her employment; and
                          (iii) to provide compensatory damages 
                        to the complainant.
                If such an order is issued under this 
                paragraph, the Secretary, at the request of the 
                complainant, shall assess against the person 
                against whom the order is issued a sum equal to 
                the aggregate amount of all costs and expenses 
                (including attorneys' and expert witness fees) 
                reasonably incurred, as determined by the 
                Secretary, by the complainant for, or in 
                connection with, the bringing the complaint 
                upon which the order was issued.
                  (C) Frivolous complaints.--If the Secretary 
                finds that a complaint under paragraph (1) is 
                frivolous or has been brought in bad faith, the 
                Secretary may award to the prevailing employer 
                a reasonable attorney's fee not exceeding 
                $1,000.
                  (D) De novo review.--With respect to a 
                complaint under paragraph (1), if the Secretary 
                of Labor has not issued a final decision within 
                210 days after the filing of the complaint and 
                if the delay is not due to the bad faith of the 
                employee, the employee may bring an original 
                action at law or equity for de novo review in 
                the appropriate district court of the United 
                States, which shall have jurisdiction over such 
                an action without regard to the amount in 
                controversy, and which action shall, at the 
                request of either party to the action, be tried 
                by the court with a jury. The Action shall be 
                governed by the same legal burdens of proof 
                specified in paragraph (2)(B) for review by the 
                Secretary of Labor.
          (4) Review.--
                  (A) Appeal to court of appeals.--Any person 
                adversely affected or aggrieved by an order 
                issued under paragraph (3) may obtain review of 
                the order in the United States Court of Appeals 
                for the circuit in which the violation, with 
                respect to which the order was issued, 
                allegedly occurred or the circuit in which the 
                complainant resided on the date of such 
                violation. The petition for review shall be 
                filed not later than 60 days after the date of 
                the issuance of the final order of the 
                Secretary. Review shall conform to chapter 7 of 
                title 5. The commencement of proceedings under 
                this subparagraph shall not, unless ordered by 
                the court, operate as a stay of the order.
                  (B) Limitation on collateral attack.--An 
                order of the Secretary with respect to which 
                review could have been obtained under 
                subparagraph (A) shall not be subject to 
                judicial review in any criminal or other civil 
                proceeding.
          (5) Enforcement of order by secretary.--Whenever any 
        person has failed to comply with an order issued under 
        paragraph (3), the Secretary may file a civil action in 
        the United States district court for the district in 
        which the violation was found to occur to enforce such 
        order. In actions brought under this paragraph, the 
        district courts shall have jurisdiction to grant all 
        appropriate relief including, but not limited to, 
        injunctive relief and compensatory damages.
          (6) Enforcement of order by parties.--
                  (A) Commencement of action.--A person on 
                whose behalf an order was issued under 
                paragraph (3) may commence a civil action 
                against the person to whom such order was 
                issued to require compliance with such order. 
                The appropriate United States district court 
                shall have jurisdiction, without regard to the 
                amount in controversy or the citizenship of the 
                parties, to enforce such order.
                  (B) Attorney fees.--The court, in issuing any 
                final order under this paragraph, may award 
                costs of litigation (including reasonable 
                attorney and expert witness fees) to any party 
                whenever the court determines such award is 
                appropriate.
  (c) Mandamus.--Any nondiscretionary duty imposed by this 
section shall be enforceable in a mandamus proceeding brought 
under section 1361 of title 28.
  (d) Nonapplicability to Deliberate Violations.--Subsection 
(a) shall not apply with respect to an employee of a motor 
vehicle manufacturer, part supplier, or dealership who, acting 
without direction from such motor vehicle manufacturer, part 
supplier, or dealership (or such person's agent), deliberately 
causes a violation of any requirement relating to motor vehicle 
safety under this chapter.

                   CHAPTER 323. CONSUMER INFORMATION

            PART C. INFORMATION, STANDARDS, AND REQUIREMENTS

Sec. 32302. Passenger motor vehicle information

  (a) Information Program.--The Secretary of Transportation 
shall maintain a program for developing the following 
information on passenger motor vehicles:
          (1) damage susceptibility.
          (2) crashworthiness.
          (3) the degree of difficulty of diagnosis and repair 
        of damage to, or failure of, mechanical and electrical 
        systems.
          (4) vehicle operating costs dependent on the 
        characteristics referred to in clauses (1)-(3) of this 
        subsection, including insurance information obtained 
        under section 32303 of this title.
  (b) Motor Vehicle Information.--To assist a consumer in 
buying a passenger motor vehicle, the Secretary shall provide 
to the public information developed under subsection (a) of 
this section. The information shall be in a simple and 
understandable form that allows comparison of the 
characteristics referred to in subsection (a)(1)-(3) of this 
section among the makes and models of passenger motor vehicles. 
The Secretary may require passenger motor vehicle dealers to 
distribute the information to prospective buyers.
  (c) Insurance Cost Information.--The Secretary shall 
prescribe regulations that require passenger motor vehicle 
dealers to distribute to prospective buyers information the 
Secretary develops and provides to the dealers that compares 
insurance costs for different makes and models of passenger 
motor vehicles based on damage susceptibility and 
crashworthiness.
  (d) Motor Vehicle Defect Reporting Information.--
          (1) Rulemaking required.--Within 1 year after the 
        date of enactment of the Motor Vehicle Safety Act of 
        2010 the Secretary shall prescribe regulations that 
        require passenger motor vehicle manufacturers to affix, 
        in the glove compartment or in another readily 
        accessible location on the vehicle, a sticker, decal, 
        or other device that provides, in simple and 
        understandable language, information about how to 
        submit a safety-related motor vehicle defect complaint 
        to the National Highway Traffic Safety Administration. 
        The Secretary shall require the same information to be 
        prominently printed on a separate page within the 
        owner's manual. The information may not be placed on 
        the label required by section 3 of the Automobile 
        Information Disclosure Act (15 U.S.C. 1232).
          (2) Application.--The requirements established under 
        paragraph (1) shall apply to passenger motor vehicles 
        manufactured in model years beginning more than 1 year 
        after the date on which a final rule is published under 
        that paragraph.

                                  
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