II

Calendar No. 839

106TH CONGRESS

2D SESSION S. 3059

[Report No. 106–423]

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.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 15, 2000

Mr. MCCAIN (for himself, Mr. GORTON, and Mr. SPECTER) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

SEPTEMBER 27 (legislative day, SEPTEMBER 22), 2000

Reported by Mr. MCCAIN, with an amendment

[Strike all after the enacting clause and insert the part printed in italic]

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.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Motor Vehicle and

5 Motor Vehicle Equipment Defect Notification Improve6 ment Act’’.

7 SEC. 2. IMPROVED INTERNATIONAL COOPERATION CON8 CERNING SAFETY-RELATED DEFECTS.

9 (a) IN GENERAL.—Subchapter I of chapter 301 of

10 title 49, United States Code, is amended by adding at the

11 end the following:

12 ‘‘§ 30106. International cooperation

13 ‘‘(a) IN GENERAL.—The Secretary of Transportation

14 may cooperate with the transportation authorities of for15 eign countries to enhance motor vehicle and traffic safety

16 by exchanging information with those authorities related

17 to motor vehicle and motor vehicle equipment safety de18 fects, noncompliance with motor vehicle safety and motor

19 vehicle equipment standards and regulations.

20 ‘‘(b) CONFIDENTIAL INFORMATION.—The Secretary

21 may authorize the disclosure of confidential commercial

22 information submitted to the National Highway Traffic

23 Safety Administration, or incorporated in agency-prepared

24 records, to a foreign governmental agency that performs

25 functions similar to those performed by the National
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1 Highway Traffic Safety Administration as part of cooper2 ative law enforcement or regulatory efforts if—

3 ‘‘(1) the Secretary determines that disclosure

4 would be in the interest of improved motor vehicle

5 safety; and

6 ‘‘(2) the foreign governmental agency provides

7 a statement in writing to the Secretary that—

8 ‘‘(A) establishes the agency’s authority to

9 protect confidential commercial information

10 from public disclosure; and

11 ‘‘(B) commits the foreign governmental

12 agency not to disclose any such information

13 provided to it under this subsection without the

14 written permission of the person to whom the

15 information relates or a written confirmation

16 from the National Highway Traffic Safety Ad17 ministration that the information has ceased to

18 qualify as confidential commercial information

19 under United States law.

20 ‘‘(c) NONPUBLIC INFORMATION.—The Secretary may

21 authorize the disclosure of nonpublic, pre-decisional docu22 ments concerning regulations or other regulatory require23 ments of the National Highway Traffic Safety Administra24 tion or other Federal agencies, and other nonpublic infor25 mation relevant to agency activities, to a foreign govern-
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1 mental agency that performs functions similar to those

2 performed by the National Highway Traffic Safety Ad3 ministration as part of cooperative law enforcement or

4 regulatory activity if—

5 ‘‘(1) the Secretary determines that disclosure is

6 reasonably necessary to facilitate motor vehicle safe7 ty related cooperative law enforcement or regulatory

8 activity; and

9 ‘‘(2) the foreign governmental agency provides

10 a statement in writing to the Secretary that—

11 ‘‘(A) establishes the foreign governmental

12 agency’s authority to protect the document or

13 information from public disclosure; and

14 ‘‘(B) commits the foreign governmental

15 agency not to disclose any document or infor16 mation provided to it under this subsection

17 without a written confirmation from the Na18 tional Highway Traffic Safety Administration

19 that it has no objection to disclosure of the doc20 ument or that the information has ceased to

21 qualify as nonpublic information under United

22 States law.

23 ‘‘(d) LIMIT ON DISCLOSURE.—Notwithstanding any

24 other provision of law, a document or information dis25 closed under subsection (b) or (c) to a foreign govern-
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1 mental agency is not required to be disclosed to the public

2 under section 552 of title 5, United States Code, or any

3 other provision of law, unless the information has ceased

4 to qualify as confidential commercial information under

5 United States law.’’.

6 (b) CLERICAL AMENDMENT.—The chapter analysis

7 for subchapter I of chapter 301 of title 49, United States

8 Code, is amended by adding at the end the following:

‘‘30106. International cooperation’’.

9 SEC. 3. INTERNATIONAL AGREEMENT FOR RECALLS OF

10 MOTOR VEHICLES OR MOTOR VEHICLE

11 PARTS.

12 (a) INTERNATIONAL AGREEMENT.—The President is

13 authorized and requested to initiate, within 60 days after

14 the date of the enactment of this Act, negotiations for an

15 international agreement governing the recall by manufac16 turers of motor vehicles and motor vehicle equipment with

17 safety-related defects.

18 (b) PURPOSE.—The purpose of these negotiations

19 shall be to establish an international agreement under

20 which government officials agree to cooperate in fur21 thering global transparency with respect to motor vehicle

22 and motor vehicle equipment recalls so as to promote con23 sumer safety and to enhance consumer confidence.
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1 (c) GUIDELINES.—The international agreement ne2 gotiated under subsection (a) should incorporate the fol3 lowing provisions:

4 (1) Each signatory will designate a competent

5 authority within its national government as the re6 sponsible authority for disseminating, to the public

7 and to other foreign authorities, information about

8 recalls of motor vehicles or motor vehicle equipment.

9 (2) Each signatory will cooperate at the inter10 national level through its designated authorities

11 through information exchange, communication, and

12 joint action.

13 (3) Each signatory will make available, to the

14 public and to other governments, through an Inter15 net site, at a minimum, the following information:

16 (A) The name, title, and contact informa17 tion for the competent authority for motor vehi18 cle or motor vehicle equipment recalls.

19 (B) The names of any motor vehicle or

20 motor vehicle equipment manufacturer in its ju21 risdiction that has issued a recall, the com22 pany’s contact information, and the specific

23 motor vehicle or motor vehicle equipment that

24 is the subject of a recall.
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1 (C) The country in which the recall is in

2 effect, and the date of the recall.

3 (4) Each signatory, in the interest of getting all

4 relevant information to its competent authority and

5 having the authority share it with the competent au6 thorities of other countries, will disseminate widely

7 the final guidelines negotiated to all relevant govern8 mental departments, agencies, and branches of gov9 ernment.

10 (5) Each signatory that is an advanced indus11 trialized country will seek to assist other countries

12 that are signatories to implement the agreement,

13 and to aid efforts by those countries to ensure com14 pliance with the agreement.

15 (6) Each signatory will establish a framework

16 to conduct regular oversight and review to assess the

17 operation and effectiveness of the agreement and to

18 create a forum in which each signatory can share

19 with other signatories the laws and regulations it

20 has adopted to implement the agreement.

21 (d) GUIDELINES FOR ENTERPRISES ENGAGED IN

22 TRADE.—The international agreement negotiated under

23 subsection (a) should incorporate the following guidelines

24 on recalls for manufacturers engaged in exporting motor

25 vehicles or motor vehicle equipment or manufacturing
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1 motor vehicle equipment for inclusion in motor vehicles to

2 be exported:

3 (1) TRANSPARENCY AND DISCLOSURE.—Each

4 such manufacturer should disclose all relevant infor5 mation regarding any recall it undertakes to the

6 competent authority in the country in which it initi7 ates the recall and to the competent authority in the

8 country in which it is incorporated. The information

9 should be extensive enough to facilitate public notice

10 described in subsection (c)(3).

11 (2) CONSUMER INTERESTS.—Each such manu12 facturer should be cognizant of the fact that con13 sumers cross international borders and often take

14 vehicles with them, and should, to the greatest ex15 tent practical, make consumers aware of recalls of

16 its motor vehicles or motor vehicle equipment, par17 ticularly in countries that border or are in proximity

18 to a country in which the recall was initiated.

19 (3) COOPERATION WITH REGULATORY AU20 THORITIES.—Each such manufacturer should co21 operate promptly with the national authorities in

22 any country that is requesting information about a

23 motor vehicle or motor vehicle equipment recall in

24 an effort to safeguard consumer safety.
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1 SEC. 4. COMPLIANCE REQUIRED FOR CERTIFICATION.

2 Section 30115 of title 49, United States Code, is

3 amended by adding at the end the following: ‘‘A person

4 may not affix a certification label or tag to a motor vehicle

5 or an item of motor vehicle equipment under this section

6 unless that person has established, through testing or en7 gineering analyses, that the vehicle or equipment complies

8 with all applicable motor vehicle safety standards pre9 scribed under this chapter.’’.

10 SEC. 5. DEFECT AND NONCOMPLIANCE NOTIFICATION FOR

11 OEM EQUIPMENT; ACCIDENT DATA.

12 (a) IN GENERAL.—Section 30118 of title 49, United

13 States Code, is amended—

14 (1) by striking ‘‘motor vehicle or replacement

15 equipment’’ in subsections (a), (b), and (c) and in16 serting ‘‘motor vehicle, original equipment, or re17 placement equipment’’;

18 (2) by redesignating subsections (d) and (e) as

19 subsections (e) and (f); and

20 (3) by inserting after subsection (c) the fol21 lowing:

22 ‘‘(d) REVIEW OF SAFETY-RELATED DATA.—A manu23 facturer of a motor vehicle, original equipment, or replace24 ment equipment shall review and consider information re25 garding accidents and incidents involving motor vehicles

26 or equipment manufactured by that manufacturer (or a
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1 related party) that resulted in fatalities, serious injuries,

2 or fires, including information about such accidents and

3 incidents outside the United States, and notify the Sec4 retary if the manufacturer has reason to believe that the

5 vehicle or equipment involved has a safety-related defect

6 or fails to comply with any motor vehicle safety standard

7 prescribed under this chapter.’’.

8 (b) EFFECTIVE DATE.—The amendments made by

9 subsection (a) take effect 180 days after the date of enact10 ment of this Act.

11 SEC. 6. EXTENSION OF TIME FOR NO-CHARGE REMEDIES.

12 Section 30120(g)(1) of title 49, United States Code,

13 is amended—

14 (1) by striking ‘‘8 calendar years,’’ and insert15 ing ‘‘10 calendar years,’’; and

16 (2) by striking ‘‘3 calendar years,’’ and insert17 ing ‘‘5 calendar years,’’.

18 SEC. 7. USED MOTOR VEHICLES.

19 Section 30126 of title 49, United States Code, is

20 amended—

21 (1) by inserting ‘‘(a) IN GENERAL.—’’ before

22 ‘‘To ensure’’; and

23 (2) by adding at the end the following:

24 ‘‘(b) SALES OF USED MOTOR VEHICLES FOR WHICH

25 NOTICE HAS ISSUED.—
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1 ‘‘(1) IN GENERAL.—A dealer may not sell a

2 used motor vehicle, except for purposes other than

3 resale, or lease a used motor vehicle to another, un4 less the dealer—

5 ‘‘(A) informs the purchaser or lessee of

6 any notification of a defect or noncompliance

7 under section 30118(b) or (c) with respect to

8 that vehicle that has not been remedied; and

9 ‘‘(B) either—

10 ‘‘(i) offers to remedy the defect or

11 noncompliance (within the meaning of such

12 term as used in section 30120); or

13 ‘‘(ii) obtains from the purchaser or

14 lessee a signed statement in writing ac15 knowledging receipt of a document that de16 scribes the defect or noncompliance (in17 cluding any relevant information from such

18 a notification) and the offer.

19 ‘‘(2) DEFINITIONS.—In this subsection:

20 ‘‘(A) DEALER.—Notwithstanding section

21 30102(a)(1), the term ‘dealer’ means a person

22 who sold at least 10 motor vehicles to pur23 chasers for purposes other than resale within

24 the 12 months preceding the sale of the vehicle

25 referred to in paragraph (1). For purposes of
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1 this subparagraph, the term motor vehicle does

2 not include a motor vehicle sold for parts or

3 scrap as a junk automobile (as defined in sec4 tion 30501(4)) or a motor vehicle that is a sal5 vage vehicle (as defined in section 30501(7)).

6 ‘‘(B) USED MOTOR VEHICLE.—The term

7 ‘used motor vehicle’ means a motor vehicle that

8 has previously been purchased for purposes

9 other than resale.’’.

10 SEC. 8. SCHOOL BUSES.

11 Section 30125 of title 49, United States Code, is

12 amended by adding at the end the following:

13 ‘‘(d) OPERATION AFTER NOTIFICATION.—

14 ‘‘(1) In general.—A person who owns or leases

15 a school bus who receives a notice of a defect or

16 noncompliance for that school bus under section

17 30118(b) or (c) may not operate the school bus as

18 a school bus for more than 30 days after receipt of

19 the notice unless the defect or noncompliance is rem20 edied (within the meaning of that term as used in

21 section 30120) or the Secretary grants a waiver.

22 The Secretary may grant a waiver from the prohibi23 tion in the preceding sentence, or extend the 30-day

24 period, if the Secretary, in the Secretary’s sole dis-
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1 cretion, finds that the waiver or extension is in the

2 public interest.’’.

3 SEC. 9. COMMERCIAL PASSENGER VEHICLES.

4 (a) IN GENERAL.—Subchapter II of chapter 301 of

5 title 49, United States Code, is amended by adding at the

6 end thereof the following:

7 ‘‘§ 30128. Commercial passenger vehicles

8 ‘‘A person who owns or leases a motor vehicle used

9 to transport passengers for compensation who receives a

10 notice of a defect or noncompliance for that motor vehicle

11 under section 30118(b) or (c) may not operate the motor

12 vehicle for that purpose until the defect or noncompliance

13 is remedied (within the meaning of that term as used in

14 section 30120).’’.

15 (b) CLERICAL AMENDMENT.—The chapter analysis

16 for subchapter II of chapter 301 of title 49, United States

17 Code, is amended by adding at the end the following:

‘‘30128. Commercial passenger vehicles’’.

18 SEC. 10. PENALTIES.

19 (a) CIVIL PENALTIES.—Section 30165(a) of title 49,

20 United States Code, is amended to read as follows:

21 ‘‘(a) IN GENERAL.—A person that violates any of

22 sections 30112, 30115, 30117 through 30122, 30123(d),

23 30125(c) or (d), 30126(b), 30127, 30128, 30141 through

24 30147, or 30166, or a regulation prescribed thereunder,

25 is liable to the United States Government for a civil pen-
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1 alty of not more than $5,000 for each violation. A separate

2 violation occurs for each motor vehicle or item of motor

3 vehicle equipment and for each failure or refusal to allow

4 or perform an act required by any of those sections. The

5 maximum penalty under this paragraph for a related se6 ries of violations is $15,000,000, except that no such max7 imum applies in the case of a willful and intentional viola8 tion.’’.

9 (b) CRIMINAL PENALTIES.—

10 (1) IN GENERAL.—Subchapter IV of chapter

11 301 of title 49, United States Code, is amended by

12 adding at the end the following:

13 ‘‘§ 30170. Criminal penalties

14 ‘‘(a) DEFECTS THAT CAUSE GRIEVOUS BODILY

15 HARM.—It is unlawful for a manufacturer to introduce

16 a motor vehicle or motor vehicle equipment into interstate

17 commerce with a safety-related defect that causes grievous

18 bodily harm to an individual if the manufacturer knows

19 of the defect at the time the vehicle or equipment is intro20 duced into intrestate commerce.

21 ‘‘(b) DEFECTS THAT CAUSE FATALITIES.—It is un22 lawful for a manufacturer to introduce a motor vehicle or

23 motor vehicle equipment into interstate commerce with a

24 safety-related defect that causes the death of an individual

25 if the manufacturer knows of the defect at the time the
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1 vehicle or equipment is introduced into intrestate com2 merce.

3 ‘‘(c) PENALTIES.—Violation of subsection (a) is pun4 ishable by fine of not more than $10,000, imprisonment

5 for not more than 5 years, or both. Violation of subsection

6 (b) is punishable by a fine of not more than $50,000, im7 prisonment for not more than 15 years, or both.’’.

8 (2) CLERICAL AMENDMENT.—The subchapter

9 analysis for subchapter IV of chapter 301 of title

10 49, United States Code, is amended by adding at

11 the end the following:

‘‘30170. Criminal penalties’’.

12 SEC. 11. RECORDS AND REPORTS.

13 (a) RECORDKEEPING AND REPORTING REQUIRE14 MENTS.—Section 30166(e) of title 49, United States

15 Code, is amended to read as follows:

16 ‘‘(e) RECORDS AND REPORTS.—

17 ‘‘(1) IN GENERAL.—The Secretary of Transpor18 tation is authorized to require a manufacturer of a

19 motor vehicle or motor vehicle equipment to keep

20 records, and a manufacturer, distributor, or dealer

21 to make reports, to enable the Secretary to decide

22 whether the manufacturer, distributor, or dealer has

23 complied or is complying with this chapter or a regu24 lation prescribed or order issued under this chapter.

25 This subsection does not impose a recordkeeping re-
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1 quirement on a distributor or dealer in addition to

2 those imposed under subsection (f) of this section

3 and section 30117(b) or a regulation prescribed or

4 order issued under subsection (f) or section

5 30117(b).

6 ‘‘(2) ACCIDENTS AND INCIDENTS.—The Sec7 retary of Transportation shall require a manufac8 turer of a motor vehicle or motor vehicle equipment

9 to keep records and to make reports if the manufac10 turer has received information with regard to acci11 dents or other incidents involving motor vehicles or

12 equipment manufactured by that manufacturer (or a

13 related party) that resulted in fatalities, serious inju14 ries, or fires. The Secretary is authorized to require

15 that the reports be made when the information is re16 ceived by the manufacturer, periodically, or in re17 sponse to an order or request by the Secretary.

18 ‘‘(3) WARRANTY, CLAIM, AND OTHER INFORMA19 TION.—The Secretary of Transportation is author20 ized to require a manufacturer of a motor vehicle or

21 motor vehicle equipment to keep records and to

22 make reports with regard to warranty or adjustment

23 information, consumer complaints, consumer satis24 faction campaigns, lawsuits (but only with respect to

25 lawsuits for which the manufacturer has been named
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1 as a defendant in 3 or more lawsuits with respect to

2 the same defect), personal injury claims, and other

3 safety-related information relating to actual or po4 tential defects. The Secretary is authorized to re5 quire a manufacturer of motor vehicle equipment to

6 provide information to the Secretary related to the

7 number, or other identifying characteristic, of equip8 ment made or sold by that manufacturer. The Sec9 retary is authorized to require that the reports be

10 made when the information is received by the manu11 facturer, periodically, or in response to an order or

12 request by the Secretary.

13 ‘‘(4) ACCESS TO DEFECT AND RECALL DEALER

14 COMMUNICATIONS.—The Secretary of Transpor15 tation is authorized to require a manufacturer of a

16 motor vehicle or motor vehicle equipment to provide

17 reasonable access to the manufacturer’s communica18 tions related to defects and recalls to the same ex19 tent and in the same manner as provided to the

20 manufacturer’s dealers.

21 ‘‘(5) INSURORS.—The Secretary of Transpor22 tation is authorized to require a person in the busi23 ness of providing automobile insurance or resolving

24 claims under insurance policies to keep records or to

25 make reports, upon receiving information, periodi-
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1 cally, or in response to an order or specific request

2 to make a report regarding accidents or incidents in

3 vehicles and equipment that result in fatalities, seri4 ous injuries, or fires. The information required may

5 include the vehicle identification number, the in6 sured’s name, address, and telephone number. The

7 Secretary shall treat any such information with re8 spect to an insured person as confidential informa9 tion.’’.

10 (b) COMMUNICATIONS ABOUT DEFECTS AND NON11 COMPLIANCE.—Section 30166(f) of title 49, United States

12 Code, is amended by striking ‘‘communication to’’ and in13 serting ‘‘communication to, or made available to,’’.

14 (c) DEFINITIONS.—Section 30166(a) of title 49,

15 United States Code, is amended to read as follows:

16 ‘‘(a) DEFINITIONS.—Notwithstanding section

17 30102(a), in this section:

18 ‘‘(1) MOTOR VEHICLE ACCIDENT.—The term

19 ‘motor vehicle accident’ means an occurrence associ20 ated with the maintenance or operation of a motor

21 vehicle or motor vehicle equipment resulting in per22 sonal injury, death, or property damage.

23 ‘‘(2) DEALER.—The term ‘dealer’ means a per24 son selling and distributing new motor vehicles or

25 motor vehicle equipment, inside or outside the
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1 United States, primarily to purchasers that in good

2 faith purchase the vehicles or equipment other than

3 for resale.

4 ‘‘(3) DISTRIBUTOR.—The term ‘distributor’

5 means a person primarily selling and distributing

6 motor vehicles or motor vehicle equipment, inside or

7 outside the United States, for resale.

8 ‘‘(4) MANUFACTURER.—The term

9 ‘manufacturer’—

10 ‘‘(A) means a person—

11 ‘‘(i) manufacturing or assembling

12 motor vehicles or motor vehicle equipment;

13 or

14 ‘‘(ii) importing motor vehicles or

15 motor vehicle equipment for resale; and

16 ‘‘(B) includes—

17 ‘‘(i) a person incorporated within or

18 with its principal place of business in the

19 United States and its direct and indirect

20 domestic and foreign subsidiaries and af21 filiates;

22 ‘‘(ii) a person with its principal place

23 of business in a foreign country, including

24 its direct or indirect domestic and foreign

25 subsidiaries and affiliates, any of which ex-
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1 ports motor vehicles or motor vehicle

2 equipment into the United States; and

3 ‘‘(iii) a person with its principal place

4 of business in a foreign country, including

5 its direct or indirect domestic and foreign

6 subsidiaries and affiliates, any of which

7 manufactures or assembles motor vehicles

8 or motor vehicle equipment in the United

9 States.

10 ‘‘(5) OWNER.—The term ‘owner’ means an

11 owner inside or outside the United States.

12 ‘‘(6) PURCHASER.—The term ‘purchaser’

13 means a purchaser inside or outside the United

14 States.

15 ‘‘(7) PERSON.—The term ‘person’ means any

16 manufacturer, distributor, or dealer and any other

17 person within the United States that may have in18 formation related to this chapter.’’.

19 (d) EFFECTIVE DATE.—The amendments made by

20 this section take effect 180 days after the date of enact21 ment of this Act.

22 SEC. 12. INCREASE IN ODOMETER PENALTIES.

23 (a) CIVIL PENALTY.—Section 32709(a)(1) of title

24 49, United States Code, is amended—
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1 (1) by striking ‘‘$2,000’’ and inserting

2 ‘‘$5,000’’; and

3 (2) by striking ‘‘$100,000.’’ and inserting

4 ‘‘$1,000,000.’’.

5 (b) PRIVATE CIVIL ACTIONS.—Section 32710(a) of

6 title 49, United States Code, is amended by striking

7 ‘‘$1,500,’’ and inserting ‘‘$10,000,’’.

8 SEC. 13. REVISED TIRE SAFETY STANDARDS.

9 Within 30 days after the date of enactment of this

10 Act, the Secretary of Transportation shall initiate a rule11 making proceeding to review and revise as necessary the

12 motor vehicle safety standards for pneumatic tires pre13 scribed under chapter 301 of title 49, United States Code.

14 The Secretary shall complete the rulemaking no later than

15 June 1, 2001.

16 SEC. 14. IMPROVED TIRE SIDEWALL MARKINGS.

17 Within 30 days after the date of enactment of this

18 Act, the Secretary of Transportation shall initiate a rule19 making proceeding to improve the labelling of tires re20 quired by section 30123 of title 49, United States Code,

21 to facilitate improved public understanding of load limits

22 and appropriate tire inflation levels. The Secretary shall

23 also take whatever additional action is appropriate to en24 sure that the public is aware of the importance of observ-
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1 ing motor vehicle tire load limits and maintaining proper

2 tire inflation levels to the safe operation of a motor vehicle.

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Motor Vehicle and Motor

5 Vehicle Equipment Defect Notification Improvement Act’’.

6 SEC. 2. IMPROVED INTERNATIONAL COOPERATION CON7 CERNING SAFETY-RELATED DEFECTS.

8 (a) IN GENERAL.—Subchapter I of chapter 301 of title

9 49, United States Code, is amended by adding at the end

10 the following:

11 ‘‘§ 30106. International cooperation

12 ‘‘(a) IN GENERAL.—The Secretary of Transportation

13 may cooperate with the transportation authorities of foreign

14 countries to enhance motor vehicle and traffic safety by ex15 changing information with those authorities related to

16 motor vehicle and motor vehicle equipment safety defects,

17 and noncompliance with motor vehicle safety and motor ve18 hicle equipment standards and enforcement of regulations.

19 ‘‘(b) CONFIDENTIAL INFORMATION.—The Secretary

20 may authorize the disclosure of confidential commercial in21 formation submitted to the National Highway Traffic Safe22 ty Administration, or incorporated in agency-prepared

23 records, to a foreign governmental agency that performs

24 functions similar to those performed by the National High-
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1 way Traffic Safety Administration as part of cooperative

2 law enforcement or regulatory enforcement efforts if—

3 ‘‘(1) the Secretary determines that disclosure

4 would be in the interest of improved motor vehicle

5 safety; and

6 ‘‘(2) the foreign governmental agency provides a

7 statement in writing to the Secretary that—

8 ‘‘(A) establishes the foreign governmental

9 agency’s authority to protect confidential com10 mercial information from public disclosure; and

11 ‘‘(B) commits the foreign governmental

12 agency not to disclose any such information pro13 vided to it under this subsection without the

14 written permission of the person to whom the in15 formation relates or a written confirmation from

16 the National Highway Traffic Safety Adminis17 tration that the information has otherwise been

18 made available to the public in the United

19 States.

20 ‘‘(c) NONPUBLIC INFORMATION.—The Secretary may

21 authorize the disclosure of nonpublic, pre-decisional docu22 ments concerning regulations or other regulatory require23 ments of the National Highway Traffic Safety Administra24 tion or other Federal agencies, and other nonpublic infor25 mation relevant to agency activities, to a foreign govern-
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1 mental agency that performs functions similar to those per2 formed by the National Highway Traffic Safety Adminis3 tration as part of cooperative law enforcement or regulatory

4 activity if—

5 ‘‘(1) the Secretary determines that disclosure is

6 reasonably necessary to facilitate motor vehicle safety

7 related cooperative law enforcement or regulatory ac8 tivity; and

9 ‘‘(2) the foreign governmental agency provides a

10 statement in writing to the Secretary that—

11 ‘‘(A) establishes the foreign governmental

12 agency’s authority to protect the document or in13 formation from public disclosure; and

14 ‘‘(B) commits the foreign governmental

15 agency not to disclose any document or informa16 tion provided to it under this subsection without

17 a written confirmation from the National High18 way Traffic Safety Administration that it has

19 no objection to disclosure of the document or that

20 the information has otherwise been made avail21 able to the public in the United States.

22 ‘‘(d) LIMIT ON DISCLOSURE.—Notwithstanding any

23 other provision of law, a document or information disclosed

24 under subsection (b) or (c) to a foreign governmental agency

25 is not required to be disclosed to the public under section
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1 552 of title 5, United States Code, or any other provision

2 of law, unless the information has otherwise been made

3 available to the public in the United States.’’.

4 (b) CLERICAL AMENDMENT.—The chapter analysis for

5 subchapter I of chapter 301 of title 49, United States Code,

6 is amended by adding at the end the following:

‘‘30106. International cooperation’’.

7 SEC. 3. INTERNATIONAL AGREEMENT FOR RECALLS OF

8 MOTOR VEHICLES OR MOTOR VEHICLE

9 PARTS.

10 (a) INTERNATIONAL AGREEMENT.—The President is

11 authorized and requested to initiate, within 60 days after

12 the date of the enactment of this Act, negotiations for an

13 international agreement governing the dissemination of in14 formation about the recall by manufacturers of motor vehi15 cles and motor vehicle equipment with safety-related defects.

16 Any such agreement may not enter into force with respect

17 to the United States unless it has been ratified by the

18 United States Senate.

19 (b) PURPOSE.—The purpose of these negotiations shall

20 be to establish an international agreement under which gov21 ernment officials agree to cooperate in furthering global

22 transparency with respect to motor vehicle and motor vehi23 cle equipment recalls so as to promote consumer safety and

24 to enhance consumer confidence.
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1 (c) GUIDELINES.—The international agreement nego2 tiated under subsection (a) should incorporate the following

3 provisions:

4 (1) Each signatory will designate a competent

5 authority within its national government as the re6 sponsible authority for disseminating, to the public

7 and to other foreign authorities, information about re8 calls of motor vehicles or motor vehicle equipment.

9 (2) Each signatory will cooperate at the inter10 national level through its designated authorities

11 through information exchange, communication, and

12 joint action.

13 (3) Each signatory will make available, to the

14 public and to other governments, through an Internet

15 site, at a minimum, the following information:

16 (A) The name, title, and contact informa17 tion for the competent authority for motor vehi18 cle or motor vehicle equipment recalls.

19 (B) The names of any motor vehicle or

20 motor vehicle equipment manufacturer in its ju21 risdiction that has issued a recall, the company’s

22 contact information, and the specific motor vehi23 cle or motor vehicle equipment that is the subject

24 of a recall.
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1 (C) The country in which the recall is in ef2 fect, and the date of the recall.

3 (4) Each signatory, in the interest of getting all

4 relevant information to its competent authority and

5 having the authority share it with the competent au6 thorities of other countries, will disseminate widely

7 the final guidelines negotiated to all relevant govern8 mental departments, agencies, and branches of gov9 ernment.

10 (5) Each signatory that is an advanced industri11 alized country will seek to assist other countries that

12 are signatories to implement the agreement, and to

13 aid efforts by those countries to ensure compliance

14 with the agreement.

15 (6) Each signatory will establish a framework to

16 conduct regular oversight and review to assess the op17 eration and effectiveness of the agreement and to cre18 ate a forum in which each signatory can share with

19 other signatories the laws and regulations it has

20 adopted to implement the agreement.

21 (d) GUIDELINES FOR ENTERPRISES ENGAGED IN

22 TRADE.—The international agreement negotiated under

23 subsection (a) should incorporate the following guidelines

24 on recalls for manufacturers engaged in exporting motor

25 vehicles or motor vehicle equipment or manufacturing
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1 motor vehicle equipment for inclusion in motor vehicles to

2 be exported:

3 (1) TRANSPARENCY AND DISCLOSURE.—Each

4 such manufacturer should disclose all relevant infor5 mation regarding any recall it undertakes to the com6 petent authority in the country in which it initiates

7 the recall and to the competent authority in the coun8 try in which it is incorporated. The information

9 should be extensive enough to facilitate public notice

10 described in subsection (c)(3).

11 (2) CONSUMER INTERESTS.—Each such manu12 facturer should, to the greatest extent practical, make

13 consumers aware of recalls of its motor vehicles or

14 motor vehicle equipment.

15 (3) COOPERATION WITH REGULATORY AUTHORI16 TIES.—Each such manufacturer should cooperate

17 promptly with the national authorities in any coun18 try that is requesting information about a motor vehi19 cle or motor vehicle equipment recall in an effort to

20 safeguard consumer safety.

21 (e) PROVISIONS RELATED TO THE UNITED STATES.—

22 (1) IN GENERAL.—The Secretary of Transpor23 tation shall be the competent authority for the United

24 States.
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1 (2) COORDINATION.—In carrying out the role of

2 competent authority, the Secretary shall coordinate

3 with and draw on the expertise of the Department of

4 State, the Office of the United States Trade Rep5 resentative, and the National Highway Traffic Safety

6 Administration.

7 (3) INTERNET AVAILABILITY.—Until the Presi8 dent concludes the negotiations authorized by this sec9 tion and there is an international Internet database

10 that contains the information described in subsection

11 (c)(3), the Secretary shall establish an official Depart12 ment of Transportation website on the Internet pro13 viding that information to the greatest extent possible

14 when a recall involves motor vehicles or motor vehicle

15 equipment that is offered for sale inside and outside

16 the United States, and shall post information pro17 vided to the Secretary by United States embassies

18 about recalls of motor vehicles or motor vehicle equip19 ment in the country in which the embassy is located

20 that is offered for sale in the United States.

21 (4) COORDINATED FEDERAL STRATEGY.—The

22 Secretary of State shall establish procedures by which

23 United States embassies and consular offices abroad

24 will inform the Secretary of Transportation whenever

25 the Ambassador, commercial attache, or other rep-
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1 resentative of the United States receives information

2 about an impending or announced recall of motor ve3 hicles or motor vehicle equipment. The Secretary of

4 Transportation shall notify the Senate Committee on

5 Commerce, Science, and Transportation and the

6 House or Representatives Committee on Commerce

7 whenever the Secretary receives such information.

8 (f) NO DIMINUTION OF UNITED STATES STAND9 ARDS.—Nothing in this section authorizes any diminution

10 or weakening of any Federal Motor Vehicle Safety Standard

11 under chapter 301 of title 49, United States Code, or any

12 other provision of law, whether in effect on the date of enact13 ment of this Act or promulgated after that date.

14 SEC. 4. DEFECT AND NONCOMPLIANCE NOTIFICATION FOR

15 OEM EQUIPMENT.

16 Section 30118 of title 49, United States Code, is

17 amended by striking ‘‘motor vehicle or replacement equip18 ment’’ in subsections (a), (b), and (c) and inserting ‘‘motor

19 vehicle, original equipment, or replacement equipment’’.

20 SEC. 5. EXTENSION OF TIME FOR NO-CHARGE REMEDIES.

21 Section 30120(g)(1) of title 49, United States Code, is

22 amended—

23 (1) by striking ‘‘8 calendar years,’’ and inserting

24 ‘‘10 calendar years,’’; and
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1 (2) by striking ‘‘3 calendar years,’’ and inserting

2 ‘‘5 calendar years,’’.

3 SEC. 6. ENHANCED INFORMATION REPORTING.

4 Section 30118 of title 49, United States Code, is

5 amended—

6 (1) by redesignating subsections (d) and (e) as

7 subsections (e) and (f); and

8 (2) by inserting after subsection (c) the fol9 lowing:

10 ‘‘(d) ENHANCED REPORTING OF INFORMATION.—

11 ‘‘(1) RULEMAKING REQUIRED.—No later than

12 120 days after the date of enactment of the Motor Ve13 hicle and Motor Vehicle Equipment Defect Notifica14 tion Improvement Act, the Secretary of Transpor15 tation shall initiate a rulemaking proceeding to estab16 lish increased reporting requirements and record re17 tention for manufacturers of motor vehicles and motor

18 vehicle equipment to enhance the Secretary’s ability

19 to carry out the provisions of this chapter.

20 ‘‘(2) DEADLINE.—The Secretary shall issue a

21 final rule under paragraph (1) not later than June

22 30, 2002.

23 ‘‘(3) DATA COVERED.—

24 ‘‘(A) REQUIRED DATA.—In carrying out

25 this subsection, the Secretary shall require man-
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1 ufacturers to collect and report to the Secretary

2 periodically, or upon request by the Secretary,

3 the following information derived from domestic

4 and foreign sources:

5 ‘‘(i) Accidents or incidents, or trends

6 or patterns of accidents or incidents, involv7 ing motor vehicles, motor vehicle equipment,

8 or motor vehicle equipment components or

9 systems manufactured by that manufacturer

10 that result in fatalities, serious injuries, or

11 fires.

12 ‘‘(ii) Any 3 or more lawsuits in which

13 the manufacturer is a defendant involving

14 the same, or a substantially similar, alleged

15 defect.

16 ‘‘(iii) Customer satisfaction cam17 paigns, consumer advisories, recalls, or

18 other activity involving the repair or re19 placement of motor vehicles or items of

20 motor vehicle equipment.

21 ‘‘(iv) Warranty or adjustment data re22 ceived by the manufacturer.

23 ‘‘(B) POTENTIAL DATA.—In carrying out

24 this subsection, the Secretary shall consider re25 quiring manufacturers to collect and report to
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1 the Secretary periodically, or upon request by

2 the Secretary, the following information derived

3 from domestic and foreign sources:

4 ‘‘(i) Consumer complaints.

5 ‘‘(ii) Safety-related information relat6 ing to actual or potential defects not other7 wise collected or reported.

8 ‘‘(iii) The number or other identifying

9 characteristic for motor vehicle equipment

10 sold by that manufacturer.

11 ‘‘(iv) Communications between the

12 manufacturer and dealers, or other informa13 tion made available by the manufacturer to

14 dealers, relating to motor vehicle or motor

15 vehicle equipment safety-related defects or

16 recalls.

17 ‘‘(4) INSURANCE.—No later than 120 days after

18 the date of enactment of the Motor Vehicle and Motor

19 Vehicle Equipment Defect Notification Improvement

20 Act, the Secretary shall initiate a rulemaking pro21 ceeding to establish enhanced aggregate information

22 reporting requirements under this chapter for persons

23 in the business of providing motor vehicle insurance

24 or of adjusting motor vehicle insurance claims. The
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1 Secretary shall issue a final rule under this para2 graph not later than June 30, 2002.

3 ‘‘(5) CONFIDENTIALITY.—Nothing in this sub4 section provides an exception from section 30167(a)

5 for information received by the Secretary under the

6 rulemaking required by this subsection.’’.

7 SEC. 7. SCHOOL BUSES.

8 Section 30125 of title 49, United States Code, is

9 amended by adding at the end the following:

10 ‘‘(d) SUSPENSION OF OPERATIONS FOR IMMINENT

11 HAZARD.—The Secretary may issue an order directing any

12 person that operates a school bus to suspend operation of

13 the school bus as a school bus if the Secretary determines

14 that there is a defect or noncompliance that presents an

15 imminent hazard to passenger safety if the school bus con16 tinues operation before the defect or noncompliance is rem17 edied.’’.

18 SEC. 8. COMMERCIAL PASSENGER VEHICLES.

19 (a) IN GENERAL.—Subchapter II of chapter 301 of

20 title 49, United States Code, is amended by adding at the

21 end thereof the following:

22 ‘‘§ 30128. Commercial passenger vehicles

23 ‘‘The Secretary of Transportation may issue an order

24 directing any person that operates a motor vehicle used to

25 transport passengers for compensation to suspend operation
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1 of the vehicle to transport passengers for compensation if

2 the Secretary determines that there is a defect or noncompli3 ance that presents an imminent hazard to passenger safety

4 if the vehicle continues such operation before the defect or

5 noncompliance is remedied.’’.

6 (b) CLERICAL AMENDMENT.—The chapter analysis for

7 subchapter II of chapter 301 of title 49, United States Code,

8 is amended by adding at the end the following:

‘‘30128. Commercial passenger vehicles’’.

9 SEC. 9. PENALTIES.

10 (a) CIVIL PENALTIES.—Section 30165(a) of title 49,

11 United States Code, is amended to read as follows:

12 ‘‘(a) IN GENERAL.—A person that violates any of sec13 tions 30112, 30115, 30117 through 30122, 30123(d),

14 30125(c) or (d), 30126(b), 30127, 30128, 30141 through

15 30147, or 30166, or a regulation prescribed thereunder, is

16 liable to the United States Government for a civil penalty

17 of not more than $5,000 per day for each violation. A sepa18 rate violation occurs for each motor vehicle or item of motor

19 vehicle equipment and for each failure or refusal to allow

20 or perform an act required by any of those sections. The

21 maximum penalty under this paragraph for a related series

22 of violations is $15,000,000, except that no such maximum

23 applies in the case of a willful and intentional violation.’’.

24 (b) CRIMINAL PENALTIES.—
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1 (1) IN GENERAL.—Subchapter IV of chapter 301

2 of title 49, United States Code, is amended by adding

3 at the end the following:

4 ‘‘§ 30170. Criminal penalties

5 ‘‘(a) ACTS PROHIBITED.—It is unlawful for a director,

6 officer, or agent of a manufacturer that introduces a motor

7 vehicle or motor vehicle equipment into interstate commerce

8 to authorize, order, or ratify the introduction if the director,

9 officer, or agent knew that—

10 ‘‘(1) at the time of introduction the manufac11 turer was in violation of section 30112(a) or 30118(c)

12 with respect to that motor vehicle or motor vehicle

13 equipment;

14 ‘‘(2) the condition of the motor vehicle or motor

15 vehicle equipment that is the subject of that violation

16 created a serious danger of death or grievous bodily

17 harm; and

18 ‘‘(3) the condition described in paragraph (2)

19 caused death or grievous bodily harm.

20 ‘‘(b) PENALTIES.—Violation of subsection (a) is pun21 ishable by—

22 ‘‘(1) a fine of not more than $10,000, imprison23 ment for not more than 5 years, or both, if the viola24 tion resulted in grievous bodily harm; and
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1 ‘‘(2) a fine of not more than $50,000, imprison2 ment for not more than 15 years, or both, if the viola3 tion resulted in death.

4 ‘‘(c) COORDINATION WITH DOJ.—Before authorizing

5 a United States Attorney to bring an action, or initiate

6 grand jury proceedings, for a violation of subsection (a) or

7 (b), the Attorney General shall consult with the Secretary

8 of Transportation.’’.

9 (2) CLERICAL AMENDMENT.—The subchapter

10 analysis for subchapter IV of chapter 301 of title 49,

11 United States Code, is amended by adding at the end

12 the following:

‘‘30170. Criminal penalties’’.

13 SEC. 10. RECORDS AND REPORTS.

14 (a) RECORDKEEPING AND REPORTING REQUIRE15 MENTS.—Section 30166(e) of title 49, United States Code,

16 is amended to read as follows:

17 ‘‘(e) RECORDS AND REPORTS.—The Secretary of

18 Transportation is authorized to require a manufacturer of

19 a motor vehicle or motor vehicle equipment to keep records,

20 and a manufacturer, distributor, or dealer to make reports,

21 to enable the Secretary to decide whether the manufacturer,

22 distributor, or dealer has complied or is complying with

23 this chapter or a regulation prescribed or order issued under

24 this chapter. This subsection does not impose a record25 keeping requirement on a distributor or dealer in addition
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1 to those imposed under subsection (f) of this section and

2 section 30117(b) or a regulation prescribed or order issued

3 under subsection (f) or section 30117(b).’’.

4 (b) DEFINITIONS.—Section 30166(a) of title 49,

5 United States Code, is amended to read as follows:

6 ‘‘(a) DEFINITIONS.—Notwithstanding section

7 30102(a), in this section:

8 ‘‘(1) MOTOR VEHICLE ACCIDENT.—The term

9 ‘motor vehicle accident’ means an occurrence associ10 ated with the maintenance or operation of a motor

11 vehicle or motor vehicle equipment resulting in per12 sonal injury, death, or property damage.

13 ‘‘(2) DEALER.—The term ‘dealer’ means a per14 son selling and distributing new motor vehicles or

15 motor vehicle equipment, inside or outside the United

16 States, primarily to purchasers that in good faith

17 purchase the vehicles or equipment other than for re18 sale.

19 ‘‘(3) DISTRIBUTOR.—The term ‘distributor’

20 means a person primarily selling and distributing

21 motor vehicles or motor vehicle equipment, inside or

22 outside the United States, for resale.

23 ‘‘(4) MANUFACTURER.—The term

24 ‘manufacturer’—

25 ‘‘(A) means a person—
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1 ‘‘(i) manufacturing or assembling

2 motor vehicles or motor vehicle equipment;

3 or

4 ‘‘(ii) importing motor vehicles or

5 motor vehicle equipment for resale; and

6 ‘‘(B) includes—

7 ‘‘(i) a person incorporated within or

8 with its principal place of business in the

9 United States and its direct and indirect

10 domestic and foreign subsidiaries and affili11 ates;

12 ‘‘(ii) a person with its principal place

13 of business in a foreign country, including

14 its direct or indirect domestic and foreign

15 subsidiaries and affiliates, any of which ex16 ports motor vehicles or motor vehicle equip17 ment into the United States; and

18 ‘‘(iii) a person with its principal place

19 of business in a foreign country, including

20 its direct or indirect domestic and foreign

21 subsidiaries and affiliates, any of which

22 manufactures or assembles motor vehicles or

23 motor vehicle equipment in the United

24 States.
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1 ‘‘(5) OWNER.—The term ‘owner’ means an owner

2 inside or outside the United States.

3 ‘‘(6) PURCHASER.—The term ‘purchaser’ means

4 a purchaser inside or outside the United States.

5 ‘‘(7) PERSON.—The term ‘person’ means any

6 manufacturer, distributor, or dealer and any other

7 person within the United States that may have infor8 mation related to this chapter.’’.

9 (c) EFFECTIVE DATE.—The amendments made by this

10 section take effect 180 days after the date of enactment of

11 this Act.

12 SEC. 11. INCREASE IN ODOMETER PENALTIES.

13 (a) CIVIL PENALTY.—Section 32709(a)(1) of title 49,

14 United States Code, is amended—

15 (1) by striking ‘‘$2,000’’ and inserting ‘‘$5,000’’;

16 and

17 (2) by striking ‘‘$100,000.’’ and inserting

18 ‘‘$1,000,000.’’.

19 (b) PRIVATE CIVIL ACTIONS.—Section 32710(a) of

20 title 49, United States Code, is amended by striking

21 ‘‘$1,500,’’ and inserting ‘‘$10,000,’’.

22 SEC. 12. REVISED TIRE SAFETY STANDARDS.

23 Within 30 days after the date of enactment of this Act,

24 the Secretary of Transportation shall initiate a rulemaking

25 proceeding to review and revise as necessary the motor vehi-
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1 cle safety standards for pneumatic tires prescribed under

2 chapter 301 of title 49, United States Code. The Secretary

3 shall complete the rulemaking no later than June 1, 2002.

4 SEC. 13. IMPROVED TIRE SIDEWALL MARKINGS.

5 Within 30 days after the date of enactment of this Act,

6 the Secretary of Transportation shall initiate a rulemaking

7 proceeding to improve the labelling of tires required by sec8 tion 30123 of title 49, United States Code, to facilitate im9 proved public understanding of load limits and appropriate

10 tire inflation levels. The Secretary shall complete the rule11 making not later than June 1, 2002. The Secretary shall

12 also take whatever additional action is appropriate to en13 sure that the public is aware of the importance of observing

14 motor vehicle tire load limits and maintaining proper tire

15 inflation levels to the safe operation of a motor vehicle.

16 SEC. 14. AUTHORIZATION OF APPROPRIATIONS.

17 Section 30104 of title 49, United States Code, is

18 amended to read as follows:

19 ‘‘§ 30104. Authorization of appropriations

20 ‘‘There are authorized to be appropriated to the Sec21 retary of Transportation, out of the Highway Account of

22 the Highway Trust fund, $115,954,000 for the National

23 Highway Traffic Safety Administration to carry out this

24 chapter in fiscal year 2001.’’.
Calendar No. 839

106TH CONGRESS

2D SESSION S. 3059

[Report No. 106–423]

A BILL

To amend title 49, United States Code, to require

motor vehicle manufacturers and motor vehicleequipment manufacturers to obtain informationand maintain records about potential safety defects in their foreign products that may affectthe safety of vehicles and equipment in theUnited States, and for other purposes.

SEPTEMBER 27 (legislative day, SEPTEMBER 22), 2000

Reported with an amendment