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[Senate Report 106-423]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 839
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-423
_______________________________________________________________________

    MOTOR VEHICLE AND MOTOR VEHICLE EQUIPMENT DEFECT NOTIFICATION 
                            IMPROVEMENT ACT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 3059

  September 27 (legislative day, September 22), 2000.--Ordered to be 
                                printed
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                       one hundred sixth congress
                             second session

                     JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington             JOHN D. ROCKEFELLER IV, West 
TRENT LOTT, Mississippi                  Virginia
KAY BAILEY HUTCHISON, Texas          JOHN F. KERRY, Massachusetts
OLYMPIA SNOWE, Maine                 JOHN B. BREAUX, Louisiana
JOHN ASHCROFT, Missouri              RICHARD H. BRYAN, Nevada
BILL FRIST, Tennessee                BYRON L. DORGAN, North Dakota
SPENCER ABRAHAM, Michigan            RON WYDEN, Oregon
SAM BROWNBACK, Kansas                MAX CLELAND, Georgia
                       Mark Buse, Staff Director
                   Ann H. Choiniere, General Counsel
               Kevin D. Kayes, Democratic Staff Director
                  Moses Boyd, Democratic Chief Counsel
                Gregg Elias, Democratic General Counsel

                                                       Calendar No. 839
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-423

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

 
     MOTOR VEHICLE AND MOTOR VEHICLE EQUIPMENT DEFECT NOTIFICATION 
                            IMPROVEMENT ACT

                                _______
                                

  September 27 (legislative day, September 22), 2000.--Ordered to be 
                                printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 3059]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 3059) ``A Bill to amend title 
49, United States Code, to require motor vehicle manufacturers 
and motor vehicle equipment manufacturers to obtain information 
and maintain records about potential safety defects in their 
foreign products that may affect the safety of vehicles and 
equipment in the United States, 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.

                          Background and Needs

  The recent events regarding the recall of Bridgestone 
Firestone (Firestone) Tires due to problems with tread 
separations has highlighted serious deficiencies with the 
ability of the Department of Transportation to adequately 
detect and investigate safety-related defects in motor vehicles 
and motor vehicle equipment. In response to the deficiencies 
highlighted by this incident, the Committee seeks to improve 
and strengthen the Secretary's ability to detect and 
investigate defects.
  On February 7, 2000, a Houston television station (KHOU) 
aired an exclusive report describing fatal motor vehicle 
accidents involving tread separations from certain Firestone 
tires. Prompted by evidence linking four deaths to the tires at 
issue, on May 2, the National Highway Traffic Safety 
Administration (NHTSA) commenced an investigation of the 
Firestone ATX, ATXII, and Wilderness AT tires manufactured by 
Firestone and used primarily as original equipment on Ford 
Explorers.
  On August 9, after meetings with NHTSA and Ford, Firestone 
announced the recall of 14.4 million of the tires under 
investigation. The recall included all Firestone ATX and ATXII 
tires of the P235/75R15 size manufactured since 1991, and all 
Wilderness AT tires of the same size manufactured by Firestone 
at its plant in Decatur, Illinois. At the time of the August 9 
recall announcement, Firestone estimated that 6.5 million of 
these tires were still in service.
  According to NHTSA, most of the injuries and fatalities 
caused by Firestone tire failures have occurred in warm-weather 
climates, such as Texas (88 injuries and 29 fatalities), 
Arizona (22 injuries and 6 fatalities), Louisiana (7 injuries), 
Nevada (5 injuries and 1 fatality), Georgia (3 injuries and 1 
fatality), and Tennessee (1 injury and 1 fatality).
  During a September 12, 2000, hearing held by this Committee 
regarding the tire recall, members of the Committee questioned 
NHTSA and manufacturers regarding the ongoing recall and 
potential reforms to prevent the recurrence of a similar 
safety-related situation. The Committee further discussed 
NHTSA's preparedness for handling information that contains 
early-warning signs of safety-related defects of motor vehicles 
in the field. The witnesses and members of the Committee 
expressed concern about the effectiveness and efficiency of 
NHTSA's process of gathering and analyzing data pertaining to 
vehicle defects, initiating investigations, and issuing 
recalls. Finally, the Committee discussed NHTSA's failure to 
update its safety standards, specifically the Federal Motor 
Vehicle Safety Standards (FMVSS) for tires.
  The circumstances surrounding the Ford and Firestone recall 
demonstrate several flaws in the current law. For example, 
NHTSA is not notified of recalls or safety-related actions 
taken in foreign markets that involve products sold in the 
United States. Ford replaced Firestone tires in 16 foreign 
countries beginning in August, 1999, but no notice was given, 
or required to be given, to NHTSA. If a similar action had 
taken place in the United States, the companies involved would 
have been required to report such actions to NHTSA under 49 
U.S.C. 30166(f).
  The Committee also heard testimony that, under the current 
system, NHTSA does not require manufacturers to report 
information relevant to defects that may indicate a safety 
problem with vehicles. For example, NHTSA does not collect 
claims data that may serve as an early indicator of a problem. 
As early as 1996, personal injury and property damage claims 
and lawsuits involving the recalled Firestone tires began to 
increase significantly and should have served notice that 
Firestone had a problem with the tires in question. A June 24, 
1998, report, which was provided to the Committee by Firestone, 
outlined 1997 claims demonstrating that the number of warranty 
claims on ATXII tires had jumped to 279 in 1997 from 42 in 
1995, more than a six-fold increase.
  During the hearing, the witnesses were questioned by members 
of the Committee concerning changes to the Federal Motor 
Vehicle Safety Act that would help NHTSA detect defects in a 
timely manner and respond effectively. Jacques Nasser, 
President and Chief Executive Officer of Ford, agreed to 
several reforms including requiring manufacturers to notify 
NHTSA of recalls in foreign countries involving motor vehicles 
and motor vehicle equipment sold and used in the United States; 
extension of the 5-year-record retention period; lengthening 
the statute of limitations period on reporting defects and 
recalls, and the need to require manufacturers to report 
lawsuits in which they are a defendant.
  The witnesses were also asked about increased civil and 
criminal penalties. Under current law, the maximum civil 
penalty for a related series of violations is merely $980,000 
and no criminal penalties exist. The Secretary of the 
Department of Transportation, the Administrator of NHTSA, 
Jacques Nasser, and consumer groups such as Public Citizen and 
the Center for Auto Safety, all agree that civil penalties 
should be increased and that criminal penalties should be 
imposed in cases of particularly egregious acts.
  Civil and criminal penalties are not uncommon for safety-
related Federal statutes. The Consumer Product Safety Act (15 
U.S.C. 2070) provides criminal penalties for a variety of 
violations of the Act including failing to manufacture a 
product in conformity with the Consumer Product Safety 
Commission standards. The Water Pollution Prevention and 
Control Act (33 U.S.C. 1319) provides criminal penalties for 
knowingly placing another person in imminent danger of death or 
serious bodily injury. Both a civil and a criminal penalty of 
imprisonment for a period of not more than 15 years is included 
as well. See also 29 U.S.C. 666 (Occupational Safety and Health 
Act) and 15 U.S.C. 1264 (Federal Hazardous Substances Act).
  Also contained within analogous agency statutes are maximum 
civil penalties with added discretionary authority granted to 
the Secretary to evaluate whether a violation of the statute is 
so egregious as to require a larger penalty. For example, 
pursuant to section 7413 of the Clean Air Act, the 
Administrator for the Environmental Protection Agency (EPA) may 
issue an administrative order for any person assessing a civil 
administrative penalty of up to $25,000 per day of violation, 
not to exceed $200,000, unless the Administrator and the 
Attorney General jointly determine that a matter involving a 
larger penalty is appropriate. See also 42 U.S.C. 7524.

                          Legislative History

  In the wake of the hearing, S. 3059 was introduced on 
September 15, 2000, by Chairman McCain, Senators Gorton and 
Specter. The Committee addressed S. 3059 as part of its 
September 20, 2000, executive session. During the session, 
Chairman McCain and Senator Hollings offered a substitute 
amendment, which was approved unanimously by voice vote.

                            Estimated Costs

  In accordance with paragraph 11(a)(3) of rule XXVI of the 
Standing Rules of the Senate, the Committee states that, in its 
opinion, it is necessary to dispense with the requirements of 
subsection (a)(1) of that paragraph in order to expedite the 
business of the Senate.

                      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) manufacturers of motor 
vehicles or motor vehicle equipment that are incorporated 
within or with their principal place of business in the United 
States and/or persons with their principal place of business in 
a foreign country, including their direct or indirect domestic 
and foreign subsidiaries and affiliates, any of which export 
vehicles or equipment to the United States. Also includes a 
person with its principal place of business in a foreign 
country, including its direct or indirect domestic and foreign 
subsidiaries and affiliates, any of which manufacturers or 
assembles vehicles or equipment in the United States; (2) 
dealers and distributors of manufacturers of motor vehicles or 
motor vehicle equipment within or outside of the United States; 
(3) insurers of motor vehicles or motor vehicle equipment of a 
``manufacturer'' as defined above; and (4) persons who operate 
motor vehicles as school buses or who lease or operate 
commercial passenger vehicles for the purpose of compensation.

                            economic impact

  This legislation would affect the nation's economy to the 
extent that it requires, for specific kinds of information, 
persons covered under the Act 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 of Transportation as a result of his 
or her authorized rulemaking authority, the economic impact of 
which cannot be defined until the rulemaking concludes. 
Furthermore, this legislation includes authorization to the 
Secretary to halt the operation of school buses or commercial 
passenger vehicles used for compensation should the Secretary 
identify the existence of an imminent hazard to passenger 
safety. The economic impact of this authorization would be 
minimal.

                         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 of Transportation's rulemaking proceedings 
authorized under the Act. The outcome of these rulemaking 
proceedings will also determine whether burdensome paperwork 
requirements will be necessary.

                      Summary of Major Provisions

   Enhances international cooperation with respect to 
motor vehicle safety and extends manufacturer notification 
requirements to include overseas actions involving equipment 
and vehicles sold in the United States.
   Directs the Secretary to collect additional 
information from manufacturers. Specifically, it would mandate 
that the Secretary require manufacturers to collect and report 
information related to motor vehicle accidents or incidents, 
claims data, warranty adjustment data, and other safety-related 
information. The method, manner and extent of the collection of 
this data would be determined through rulemaking by the 
Secretary.
   Increases the Motor Vehicle Safety Act's civil 
penalties from $1,000 to $5,000 for each violation and the 
maximum penalty from $800,000 to $15,000,000, with the ability 
to assess larger civil penalties for willful and intentional 
acts.
   Establishes criminal penalties for knowingly 
violating provisions of the Motor Vehicle Safety Act, which 
relate to compliance with Federal Motor Vehicle Safety 
Standards (FMVSS) and notification of defects where the 
violation results in a death or substantial injury. 
Specifically, the bill would allow criminal penalties when a 
manufacturer knowingly places into the stream of commerce a 
vehicle that fails to meet a FMVSS or if the manufacturer 
becomes aware of a defect and fails to report and a death or 
injury results. The bill would allow for imprisonment of up to 
5 years when the violation results in serious bodily injury, 
and 15 years for violations causing death.
   Requires NHTSA to upgrade the tire-safety standard 
for the first time in 30 years.
   Increases the time period during which manufacturers 
of motor vehicle equipment and tires are required to remedy 
safety-related defects without charge.
   Requires NHTSA to improve sidewall markings on tires 
to help consumers understand load limits and appropriate tire 
inflation levels.
   Allows the Secretary to halt the operation of school 
buses or commercial passenger vehicles if the Secretary 
determines that continued operation of the vehicle with the 
defect presents an imminent hazard to passengers.

                      Section-by-Section Analysis

Section 1. Short title
  Section 1 of the bill identifies the Act as the ``Motor 
Vehicle and Motor Vehicle Equipment Defect Notification 
Improvement Act.''
Section 2. Improved international cooperation concerning safety-related 
        defects
  Section 2 of the bill seeks to enhance the National Highway 
Traffic Safety Administration's ability to cooperate with 
similar safety agencies in foreign countries. The provision 
adds section 30106 to chapter 301 of title 49, United States 
Code.
  Section 30106(a) of title 49, United States Code, would 
permit the Secretary to cooperate with foreign transportation 
authorities to ``enhance motor vehicle and traffic safety by 
exchanging information with those authorities'' concerning 
safety defects and noncompliance with safety standards.
  Section 30106(b) of title 49, United States Code, would 
authorize the Secretary to disclose confidential commercial 
information to foreign governmental safety agencies if certain 
conditions are met. The Secretary must determine that the 
disclosure would be ``in the interest of improved motor vehicle 
safety'' and the foreign governmental agency must indicate in 
writing that it has the authority to protect from public 
disclosure ``confidential commercial information'' and then 
pledge to keep the information confidential. That foreign 
governmental agency may make the information public if it 
obtains written permission from the entity to whom the 
information relates or NHTSA indicates in writing that the 
information has ceased to qualify as confidential commercial 
information under the law of the United States.
  Section 30106(c) of title 49, United States Code, would 
authorize the Secretary to disclose to similar foreign 
governmental agencies ``nonpublic, pre-decisional documents 
concerning regulations or other regulatory requirements,'' or 
other ``nonpublic information relevant to agency activities.'' 
These disclosures would require the Secretary to obtain the 
same written statements and commitments by the foreign 
governmental agency as is demanded by subsection (b).
  Section 30106(d) of title 49, United States Code, provides 
assurance that the simple transmittal of information as 
authorized by this section does not require that the 
information be disclosed to the public under section 552 of 
title 5, United States Code, the Freedom of Information Act 
(FOIA).
Section 3. International agreement for recalls of motor vehicles or 
        motor vehicle parts
  Section 3(a) of the bill would authorize and request the 
President to initiate negotiations, within 60 days of the 
enactment of this Act, for an international agreement governing 
the recall by manufacturers of motor vehicles or motor vehicle 
equipment with safety-related defects. This provision prohibits 
any such agreement from entering into force in the United 
States without ratification by the United States Senate.
  Section 3(b) of the bill indicates that the purpose of the 
international agreement would be to foster ``global 
transparency'' with regard to recalls of motor vehicles or 
motor vehicle equipment to promote ``consumer safety and to 
enhance consumer confidence.''
  Section 3(c) of the bill identifies the provisions that 
should be incorporated into a negotiated agreement. Those 
provisions would encourage nations that are signatories to 
identify a responsible governmental authority for recalls, 
foster communication, and establish a website in each nation to 
convey information about recalls.
  Section 3(d) of the bill identifies various guidelines for 
manufacturers that engage in exporting motor vehicles or motor 
vehicle equipment or the international trade of motor vehicles 
or manufacturing motor vehicle equipment for inclusion in motor 
vehicles to be exported. This subsection contains provisions 
that would require such manufacturers to report relevant 
information regarding any recall in the country in which it 
initiates the recall and share recall information with foreign 
countries that request it.
  Section 3(e) of the bill would require the Secretary, acting 
as competent authority, to coordinate with the Department of 
State, the Office of the United States Trade Representative, 
and the NHTSA, to establish an official website on the Internet 
that would provide information involving recalls of motor 
vehicles or motor vehicle equipment. This website would operate 
until an international Internet database can be launched. This 
subsection also would require the Secretary to coordinate with 
United States embassies and consular offices abroad to 
establish procedures to obtain information regarding recalls.
  Section 3(f) of the bill ensures that no FMVSS or any other 
provision of law would be weakened by the international 
agreements authorized under this section.
Section 4. Defect and noncompliance notification for oem equipment
  Section 4 of the bill would amend section 30118 of title 49, 
United States Code, by striking ``motor vehicle or replacement 
equipment'' in subsections (a), (b), and (c) of section 30118 
and inserting ``motor vehicle, original equipment, or 
replacement equipment.''
Section 5. Extension of time for no-charge remedies
  Section 5 of the bill would lengthen the period of time for 
no-charge remedies from 8 years to 10 for automobiles and from 
3 years to 5 for tires.
Section 6. Enhanced information reporting
  Section 6 of the bill amends section 30118 of title 49, 
United States Code, by inserting a new subsection (d).
  Section 30118(d) of title 49, United States Code, would 
require the Secretary to initiate a rulemaking, within 120 days 
of this Act, to establish increased reporting and record 
retention requirements for manufacturers of motor vehicles or 
motor vehicle equipment. This subsection mandates that the 
Secretary require manufacturers to ``collect and report to the 
Secretary periodically, or upon request by the Secretary,'' 
``accidents or incidents, or trends or patterns of accidents or 
incidents'' involving motor vehicles or motor vehicle 
equipment, ``[a]ny 3 or more lawsuits in which the manufacturer 
is a defendant involving a substantially similar, alleged 
defect,'' all information relating to recalls, and warranty 
adjustment data received by the manufacturer. This subsection 
would authorize the Secretary to consider requiring the 
collection and reporting by manufacturers of any other safety-
related information deemed necessary. This subsection would 
also authorize the Secretary to initiate a rulemaking to 
establish ``enhanced aggregate information reporting 
requirements'' for insurance companies.
Section 7. School buses
  Section 7 of the bill would amend section 30125 of title 49, 
United States Code, to include subsection (d), which authorizes 
the Secretary to order any person that operates a school bus to 
halt operation should the Secretary determine that there exists 
a ``defect or noncompliance that presents an imminent hazard to 
passenger safety if the school bus continues operation before 
the defect or noncompliance is remedied.''
Section 8. Commercial passenger vehicles
  Section 8 of the bill would add a new section to chapter 301 
of title 49, United States Code.
  Section 30128 of title 49, United States Code, would 
authorize the Secretary to order ``any person that operates a 
motor vehicle used to transport passengers for compensation to 
suspend operation'' should the Secretary determine that there 
exists a ``defect or noncompliance that presents an imminent 
hazard to passenger safety if the vehicle continues such 
operation before the defect or noncompliance is remedied.''
Section 9. Penalties
  Section 9(a) of the bill would amend section 30165(a) of 
title 49, United States Code, to increase the Motor Vehicle 
Safety chapter's per-violation civil penalty from $1,000 to 
$5,000 per day and the maximum penalty from $800,000 to 
$15,000,000. This section also would authorize the Secretary to 
assess larger civil penalties for intentional and willful acts.
  Section 9(b) of the bill would add a new section to chapter 
301 of title 49, United States Code.
  Section 30170(a) of title 49, United States Code, would make 
it unlawful for a director, officer, or agent of a manufacturer 
to introduce into interstate commerce a motor vehicle or motor 
vehicle equipment if that person knew of a defect or 
noncompliance, the defect or noncompliance ``created an 
imminent or serious danger of death or grievous bodily harm,'' 
and the defect or noncompliance caused death or grievous bodily 
harm.
  Section 30170(b) of title 49, United States Code, would 
establish maximum penalties of a fine of $10,000 and 5 years 
imprisonment for causing grievous bodily harm and a fine of 
$50,000 and 15 years in prison for causing death.
  Section 30170(c) of title 49, United States Code, would 
authorize the United States Attorney to initiate an action or 
grand jury proceedings for the violation of subsection (a).
Section 10. Records and reports
  Section 10(a) of the bill would amend section 30166(e) of 
title 49, United States Code.
  Section 30166(e) of title 49, United States Code, would 
authorize the Secretary to initiate a rulemaking to require a 
manufacturer of a motor vehicle or motor vehicle equipment to 
retain records, and a manufacturer, distributor, or dealer to 
make reports, so that the Secretary may determine whether the 
manufacturer, distributor, or dealer is complying with chapter 
301 of title 49, United States Code.
  Section 10(b) of the bill would amend section 30166(a) of 
title 49, United States Code.
  Section 30166(a) of title 49, United States Code, would 
provide that, for the purposes of section 30166 the following 
definitions, rather than those in section 30102 of title 49, 
United States Code, apply:
          (1) ``Motor Vehicle Accident'' is defined as an 
        occurrence associated with the maintenance or operation 
        of a motor vehicle equipment resulting in personal 
        injury, death, or property damage.
          (2) ``Dealer'' means a seller or distributor of new 
        motor vehicles or equipment within or outside the 
        United States to purchasers who purchase for reasons 
        other than resale.
          (3) ``Distributor'' means a person primarily selling 
        and distributing motor vehicles or equipment within or 
        outside the United States for resale.
          (4) ``Manufacturer'' means a person (i) manufacturing 
        or assembling motor vehicles or equipment, or (ii) 
        importing vehicles or equipment for resale. The 
        definition includes a person incorporated within or 
        with its principal place of business in the United 
        States and/or a person with its principal place of 
        business in a foreign country, including its direct or 
        indirect domestic and foreign subsidiaries and 
        affiliates, any of which export vehicles or equipment 
        to the United States. It also includes a person with 
        its principal place of business in a foreign country, 
        including its direct or indirect domestic and foreign 
        subsidiaries and affiliates, any of which manufactures 
        or assembles vehicles or equipment in the United 
        States.
          (5) ``Owner'' means an owner within or outside the 
        United States.
          (6) ``Purchaser'' means a purchaser within or outside 
        the United States.
          (7) ``Person'' means any manufacturer, distributor, 
        or dealer and any other person within the United States 
        that may have information related to chapter 301 of 
        title 49, United States Code.
  Section 10(c) of the bill would make the amendments made by 
this section effective 180 days after enactment of the Act.
Section 11. Increase in odometer penalties
  Section 11(a) of the bill would amend section 32709(a)(1) of 
title 49, United States Code, to increase the civil penalty for 
violation of chapter 301 of title 49, United States Code, from 
$2,000 to $5,000 and the maximum civil penalty from $100,000 to 
1,000,000.
  Section 11(b) of the bill would amend section 32710(a) of 
title 49, United States Code, to increase the maximum private 
action damage award for violations of chapter 301 of title 49, 
United States Code, from $1,500 to $10,000.
Section 12. Revised tire safety standards
  Section 12 of the bill would authorize the Secretary within 
30 days of the enactment of the Act to initiate a rulemaking 
proceeding to review and revise the FMVSS for pneumatic tires 
prescribed under chapter 301 of title 49, United States Code, 
and to complete the rulemaking no later than June 1, 2001.
Section 13. Improved tire sidewall markings
  Section 13 of the bill would authorize the Secretary within 
30 days of the enactment of the Act to initiate a rulemaking 
proceeding to improve the labeling of tires required by section 
30123 of title 49, United States Code, to facilitate improved 
public understanding of load limits and appropriate tire 
inflation levels.

                        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

[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.]

Sec.  30104. Authorization of appropriations

  There are authorized to be appropriated to the Secretary of 
Transportation, out of the Highway Account of the Highway Trust 
fund, $115,954,000 for the National Highway Traffic Safety 
Administration to carry out this chapter in fiscal year 2001.

           *       *       *       *       *       *       *

Sec.  30106. International cooperation

  (a) In General.--The Secretary of Transportation may 
cooperate with the transportation authorities of foreign 
countries to enhance motor vehicle and traffic safety by 
exchanging information with those authorities related to motor 
vehicle and motor vehicle equipment safety defects, and 
noncompliance with motor vehicle safety and motor vehicle 
equipment standards and enforcement of regulations.
  (b) Confidential Information.--The Secretary may authorize 
the disclosure of confidential commercial information submitted 
to the National Highway Traffic Safety Administration, or 
incorporated in agency-prepared records, to a foreign 
governmental agency that performs functions similar to those 
performed by the National Highway Traffic Safety Administration 
as part of cooperative law enforcement or regulatory 
enforcement efforts if--
          (1) the Secretary determines that disclosure would be 
        in the interest of improved motor vehicle safety; and
          (2) the foreign governmental agency provides a 
        statement in writing to the Secretary that--
                  (A) establishes the foreign governmental 
                agency's authority to protect confidential 
                commercial information from public disclosure; 
                and
                  (B) commits the foreign governmental agency 
                not to disclose any such information provided 
                to it under this subsection without the written 
                permission of the person to whom the 
                information relates or a written confirmation 
                from the National Highway Traffic Safety 
                Administration that the information has 
                otherwise been made available to the public in 
                the United States.
  (c) Nonpublic Information.--The Secretary may authorize the 
disclosure of nonpublic, pre-decisional documents concerning 
regulations or other regulatory requirements of the National 
Highway Traffic Safety Administration or other Federal 
agencies, and other nonpublic information relevant to agency 
activities, to a foreign governmental agency that performs 
functions similar to those performed by the National Highway 
Traffic Safety Administration as part of cooperative law 
enforcement or regulatory activity if--
          (1) the Secretary determines that disclosure is 
        reasonably necessary to facilitate motor vehicle safety 
        related cooperative law enforcement or regulatory 
        activity; and
          (2) the foreign governmental agency provides a 
        statement in writing to the Secretary that--
                  (A) establishes the foreign governmental 
                agency's authority to protect the document or 
                information from public disclosure; and
                  (B) commits the foreign governmental agency 
                not to disclose any document or information 
                provided to it under this subsection without a 
                written confirmation from the National Highway 
                Traffic Safety Administration that it has no 
                objection to disclosure of the document or that 
                the information has otherwise been made 
                available to the public in the United States.
  (d) Limit on Disclosure.--Notwithstanding any other provision 
of law, a document or information disclosed under subsection 
(b) or (c) to a foreign governmental agency is not required to 
be disclosed to the public under section 552 of title 5, United 
States Code, or any other provision of law, unless the 
information has otherwise been made available to the public in 
the United States.

           *       *       *       *       *       *       *

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] motor vehicle, original 
equipment, 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] motor vehicle, 
        original equipment, 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 decides under paragraph (1) 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] motor vehicle, original 
equipment, 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) Enhanced Reporting of Information.--
          (1) Rulemaking required.--No later than 120 days 
        after the date of enactment of the Motor Vehicle and 
        Motor Vehicle Equipment Defect Notification Improvement 
        Act, the Secretary of Transportation shall initiate a 
        rulemaking proceeding to establish increased reporting 
        requirements and record retention 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) Data covered.--
                  (A) Required data.--In carrying out this 
                subsection, the Secretary shall require 
                manufacturers to collect and report to the 
                Secretary periodically, or upon request by the 
                Secretary, the following information derived 
                from domestic and foreign sources:
                          (i) Accidents or incidents, or trends 
                        or patterns of accidents or incidents, 
                        involving motor vehicles, motor vehicle 
                        equipment, or motor vehicle equipment 
                        components or systems manufactured by 
                        that manufacturer that result in 
                        fatalities, serious injuries, or fires.
                          (ii) Any 3 or more lawsuits in which 
                        the manufacturer is a defendant 
                        involving the same, or a substantially 
                        similar, alleged defect.
                          (iii) Customer satisfaction 
                        campaigns, consumer advisories, 
                        recalls, or other activity involving 
                        the repair or replacement of motor 
                        vehicles or items of motor vehicle 
                        equipment.
                          (iv) Warranty or adjustment data 
                        received by the manufacturer.
                  (B) Potential data.--In carrying out this 
                subsection, the Secretary shall consider 
                requiring manufacturers to collect and report 
                to the Secretary periodically, or upon request 
                by the Secretary, the following information 
                derived from domestic and foreign sources:
                          (i) Consumer complaints.
                          (ii) Safety-related information 
                        relating to actual or potential defects 
                        not otherwise collected or reported.
                          (iii) The number or other identifying 
                        characteristic for motor vehicle 
                        equipment sold by that manufacturer.
                          (iv) Communications between the 
                        manufacturer and dealers, or other 
                        information made available by the 
                        manufacturer to dealers, relating to 
                        motor vehicle or motor vehicle 
                        equipment safety-related defects or 
                        recalls.
          (4) Insurance.--No later than 120 days after the date 
        of enactment of the Motor Vehicle and Motor Vehicle 
        Equipment Defect Notification Improvement Act, the 
        Secretary shall initiate a rulemaking proceeding to 
        establish enhanced aggregate information reporting 
        requirements under this chapter for persons in the 
        business of providing motor vehicle insurance or of 
        adjusting motor vehicle insurance claims. The Secretary 
        shall issue a final rule under this paragraph not later 
        than June 30, 2002.
          (5) Confidentiality.--Nothing in this subsection 
        provides an exception from section 30167(a) for 
        information received by the Secretary under the 
        rulemaking required by this subsection.
  [(d)] (e) 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)] (f) 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.  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 30118(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.
  (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.
  (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 [8 calendar years,] 10 calendar years, or the 
        tire, including an original equipment tire, was bought 
        by the first purchaser more than [3 calendar years,] 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.

           *       *       *       *       *       *       *

Sec.  30125. Schoolbuses and schoolbus equipment

  (a) Definitions.--In this section--
          (1) ``schoolbus'' means a passenger motor vehicle 
        designed to carry a driver and more than 10 passengers, 
        that the Secretary of Transportation decides is likely 
        to be used significantly to transport preprimary, 
        primary, and secondary school students to or from 
        school or an event related to school.
          (2) ``schoolbus equipment'' means equipment designed 
        primarily for a schoolbus or manufactured or sold to 
        replace or improve a system, part, or component of a 
        schoolbus or as an accessory or addition to a 
        schoolbus.
  (b) Standards.--The Secretary shall prescribe motor vehicle 
safety standards for schoolbuses and schoolbus equipment 
manufactured in, or imported into, the United States. Standards 
shall include minimum performance requirements for--
          (1) emergency exits;
          (2) interior protection for occupants;
          (3) floor strength;
          (4) seating systems;
          (5) crashworthiness of body and frame (including 
        protection against rollover hazards);
          (6) vehicle operating systems;
          (7) windows and windshields; and
          (8) fuel systems.
  (c) Test Driving by Manufacturers.--The Secretary may require 
by regulation a schoolbus to be test-driven by a manufacturer 
before introduction in commerce.
  (d) Suspension of Operations for Imminent Hazard.--The 
Secretary may issue an order directing any person that operates 
a school bus to suspend operation of the school bus as a school 
bus if the Secretary determines that there is a defect or 
noncompliance that presents an imminent hazard to passenger 
safety if the school bus continues operation before the defect 
or noncompliance is remedied.

           *       *       *       *       *       *       *

Sec.  30128. Commercial passenger vehicles

  The Secretary of Transportation may issue an order directing 
any person that operates a motor vehicle used to transport 
passengers for compensation to suspend operation of the vehicle 
to transport passengers for compensation if the Secretary 
determines that there is a defect or noncompliance that 
presents an imminent hazard to passenger safety if the vehicle 
continues such operation before the defect or noncompliance is 
remedied.

           *       *       *       *       *       *       *

Sec.  30165. Civil penalty

  [(a) Penalty.--A person that violates any of sections 30112, 
30115, 30117-30122, 30123(d), 30125(c), 30127, 30141-30147, or 
30166 of this title or a regulation prescribed under any of 
those sections is liable to the United States Government for a 
civil penalty of not more than $1,000 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 $800,000.]
  (a) In General.--A person that violates any of sections 
30112, 30115, 30117 through 30122, 30123(d), 30125(c) or (d), 
30126(b), 30127, 30128, 30141 through 30147, or 30166, or a 
regulation prescribed thereunder, is liable to the United 
States Government for a civil penalty of not more than $5,000 
per day 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 paragraph 
for a related series of violations is $15,000,000, except that 
no such maximum applies in the case of a willful and 
intentional violation.
  (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.
  (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.]
  (a) Definitions.--Notwithstanding section 30102(a), in this 
section:
          (1) Motor vehicle accident.--The term ``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.
          (2) Dealer.--The term ``dealer'' means a person 
        selling and distributing new motor vehicles or motor 
        vehicle equipment, inside or outside the United States, 
        primarily to purchasers that in good faith purchase the 
        vehicles or equipment other than for resale.
          (3) Distributor.--The term ``distributor'' means a 
        person primarily selling and distributing motor 
        vehicles or motor vehicle equipment, inside or outside 
        the United States, for resale.
          (4) Manufacturer.--The term ``manufacturer''--
                  (A) means a person--
                          (i) manufacturing or assembling motor 
                        vehicles or motor vehicle equipment; or
                          (ii) importing motor vehicles or 
                        motor vehicle equipment for resale; and
                  (B) includes--
                          (i) a person incorporated within or 
                        with its principal place of business in 
                        the United States and its direct and 
                        indirect domestic and foreign 
                        subsidiaries and affiliates;
                          (ii) a person with its principal 
                        place of business in a foreign country, 
                        including its direct or indirect 
                        domestic and foreign subsidiaries and 
                        affiliates, any of which exports motor 
                        vehicles or motor vehicle equipment 
                        into the United States; and
                          (iii) a person with its principal 
                        place of business in a foreign country, 
                        including its direct or indirect 
                        domestic and foreign subsidiaries and 
                        affiliates, any of which manufactures 
                        or assembles motor vehicles or motor 
                        vehicle equipment in the United States.
          (5) Owner.--The term ``owner'' means an owner inside 
        or outside the United States.
          (6) Purchaser.--The term ``purchaser'' means a 
        purchaser inside or outside the United States.
          (7) Person.--The term ``person'' means any 
        manufacturer, distributor, or dealer and any other 
        person within the United States that may have 
        information related to this chapter.
  (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).]
  (e) Records and Reports.--The Secretary of Transportation is 
authorized to 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) 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 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.
  (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.

           *       *       *       *       *       *       *

Sec.  30170. Criminal penalties

  (a) Acts Prohibited.--It is unlawful for a director, officer, 
or agent of a manufacturer that introduces a motor vehicle or 
motor vehicle equipment into interstate commerce to authorize, 
order, or ratify the introduction if the director, officer, or 
agent knew that--
          (1) at the time of introduction the manufacturer was 
        in violation of section of section 30112(a) or 30118(c) 
        with respect to that motor vehicle or motor vehicle 
        equipment;
          (2) the condition of the motor vehicle or motor 
        vehicle equipment that is the subject of that violation 
        created a serious danger of death or grievous bodily 
        harm; and
          (3) the condition described in paragraph (2) caused 
        death or grievous bodily harm.
  (b) Penalties.--Violation of subsection (a) is punishable 
by--
          (1) a fine of not more than $10,000, imprisonment for 
        not more than 5 years, or both, if the violation 
        resulted in grievous bodily harm; and
          (2) a fine of not more than $50,000, imprisonment for 
        not more than 15 years, or both, if the violation 
        resulted in death.
  (c) Coordination with DOJ.--Before authorizing a United 
States Attorney to bring an action, or initiate grand jury 
proceedings, for a violation of subsection (a) or (b), the 
Attorney General shall consult with the Secretary of 
Transportation.

                        TITLE 49. TRANSPORTATION

             SUBTITLE VI. MOTOR VEHICLE AND DRIVER PROGRAMS

            PART C. INFORMATION, STANDARDS, AND REQUIREMENTS

                              CHAPTER 327

Sec.  32709. Penalties and enforcement

  (a) Civil Penalty.--
          (1) A person that violates this chapter or a 
        regulation prescribed or order issued under this 
        chapter is liable to the United States Government for a 
        civil penalty of not more than [$2,000] $5,000 for each 
        violation.--A separate violation occurs for each motor 
        vehicle or device involved in the violation. The 
        maximum penalty under this subsection for a related 
        series of violations is [$100,000.] $1,000,000.
          (2) The Secretary of Transportation shall impose a 
        civil penalty under this subsection. The Attorney 
        General shall bring a civil action to collect the 
        penalty. Before referring a penalty claim to the 
        Attorney General, the Secretary may compromise the 
        amount of the penalty. Before compromising the amount 
        of the penalty, the Secretary shall give the person 
        charged with a violation an opportunity to establish 
        that the violation did not occur.
          (3) In determining the amount of a civil penalty 
        under this subsection, the Secretary shall consider--
                  (A) the nature, circumstances, extent, and 
                gravity of the violation;
                  (B) with respect to the violator, the degree 
                of culpability, any history of prior 
                violations, the ability to pay, and any effect 
                on the ability to continue doing business; and
                  (C) other matters that justice requires.
  (b) Criminal Penalty.--A person that knowingly and willfully 
violates this chapter or a regulation prescribed or order 
issued under this chapter shall be fined under title 18, 
imprisoned for not more than 3 years, or both. If the person is 
a corporation, the penalties of this subsection also apply to a 
director, officer, or individual agent of a corporation who 
knowingly and willfully authorizes, orders, or performs an act 
in violation of this chapter or a regulation prescribed or 
order issued under this chapter without regard to penalties 
imposed on the corporation.
  (c) Civil Actions by Attorney General.--The Attorney General 
may bring a civil action to enjoin a violation of this chapter 
or a regulation prescribed or order issued under this chapter. 
The action may be brought in the United States district court 
for the judicial district in which the violation occurred or 
the defendant is found, resides, or does business. Process in 
the action may be served in any other judicial district in 
which the defendant resides or is found. A subpena for a 
witness in the action may be served in any judicial district.
  (d) Civil Actions by States.--
          (1) When a person violates this chapter or a 
        regulation prescribed or order issued under this 
        chapter, the chief law enforcement officer of the State 
        in which the violation occurs may bring a civil 
        action--
                  (A) to enjoin the violation; or
                  (B) to recover amounts for which the person 
                is liable under section 32710 of this title for 
                each person on whose behalf the action is 
                brought.
          (2) An action under this subsection may be brought in 
        an appropriate United States district court or in a 
        State court of competent jurisdiction. The action must 
        be brought not later than 2 years after the claim 
        accrues.

Sec.  32710. Civil actions by private persons

  (a) Violation and Amount of Damages.--A person that violates 
this chapter or a regulation prescribed or order issued under 
this chapter, with intent to defraud, is liable for 3 times the 
actual damages or [$1,500,] $10,000, whichever is greater.
  (b) Civil Actions.--A person may bring a civil action to 
enforce a claim under this section in an appropriate United 
States district court or in another court of competent 
jurisdiction. The action must be brought not later than 2 years 
after the claim accrues. The court shall award costs and a 
reasonable attorney's fee to the person when a judgment is 
entered for that person.

                                  
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