II

106TH CONGRESS

2D SESSION S. 3059

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

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
2

•S 3059 IS

1 SECTION 1. SHORT TITLE.

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

3 Motor Vehicle Equipment Defect Notification Improve4 ment Act’’.

5 SEC. 2. IMPROVED INTERNATIONAL COOPERATION CON6 CERNING SAFETY-RELATED DEFECTS.

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

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

9 end the following:

10 ‘‘§ 30106. International cooperation

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

12 may cooperate with the transportation authorities of for13 eign countries to enhance motor vehicle and traffic safety

14 by exchanging information with those authorities related

15 to motor vehicle and motor vehicle equipment safety de16 fects, noncompliance with motor vehicle safety and motor

17 vehicle equipment standards and regulations.

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

19 may authorize the disclosure of confidential commercial

20 information submitted to the National Highway Traffic

21 Safety Administration, or incorporated in agency-prepared

22 records, to a foreign governmental agency that performs

23 functions similar to those performed by the National

24 Highway Traffic Safety Administration as part of cooper25 ative law enforcement or regulatory efforts if—
3

•S 3059 IS

1 ‘‘(1) the Secretary determines that disclosure

2 would be in the interest of improved motor vehicle

3 safety; and

4 ‘‘(2) the foreign governmental agency provides

5 a statement in writing to the Secretary that—

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

7 protect confidential commercial information

8 from public disclosure; and

9 ‘‘(B) commits the foreign governmental

10 agency not to disclose any such information

11 provided to it under this subsection without the

12 written permission of the person to whom the

13 information relates or a written confirmation

14 from the National Highway Traffic Safety Ad15 ministration that the information has ceased to

16 qualify as confidential commercial information

17 under United States law.

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

19 authorize the disclosure of nonpublic, pre-decisional docu20 ments concerning regulations or other regulatory require21 ments of the National Highway Traffic Safety Administra22 tion or other Federal agencies, and other nonpublic infor23 mation relevant to agency activities, to a foreign govern24 mental agency that performs functions similar to those

25 performed by the National Highway Traffic Safety Ad-
4

•S 3059 IS

1 ministration as part of cooperative law enforcement or

2 regulatory activity if—

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

4 reasonably necessary to facilitate motor vehicle safe5 ty related cooperative law enforcement or regulatory

6 activity; and

7 ‘‘(2) the foreign governmental agency provides

8 a statement in writing to the Secretary that—

9 ‘‘(A) establishes the foreign governmental

10 agency’s authority to protect the document or

11 information from public disclosure; and

12 ‘‘(B) commits the foreign governmental

13 agency not to disclose any document or infor14 mation provided to it under this subsection

15 without a written confirmation from the Na16 tional Highway Traffic Safety Administration

17 that it has no objection to disclosure of the doc18 ument or that the information has ceased to

19 qualify as nonpublic information under United

20 States law.

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

22 other provision of law, a document or information dis23 closed under subsection (b) or (c) to a foreign govern24 mental agency is not required to be disclosed to the public

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

•S 3059 IS

1 other provision of law, unless the information has ceased

2 to qualify as confidential commercial information under

3 United States law.’’.

4 (b) CLERICAL AMENDMENT.—The chapter analysis

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

6 Code, 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 recall by manufac14 turers of motor vehicles and motor vehicle equipment with

15 safety-related defects.

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

17 shall be to establish an international agreement under

18 which government officials agree to cooperate in fur19 thering global transparency with respect to motor vehicle

20 and motor vehicle equipment recalls so as to promote con21 sumer safety and to enhance consumer confidence.

22 (c) GUIDELINES.—The international agreement ne23 gotiated under subsection (a) should incorporate the fol24 lowing provisions:
6

•S 3059 IS

1 (1) Each signatory will designate a competent

2 authority within its national government as the re3 sponsible authority for disseminating, to the public

4 and to other foreign authorities, information about

5 recalls of motor vehicles or motor vehicle equipment.

6 (2) Each signatory will cooperate at the inter7 national level through its designated authorities

8 through information exchange, communication, and

9 joint action.

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

11 public and to other governments, through an Inter12 net site, at a minimum, the following information:

13 (A) The name, title, and contact informa14 tion for the competent authority for motor vehi15 cle or motor vehicle equipment recalls.

16 (B) The names of any motor vehicle or

17 motor vehicle equipment manufacturer in its ju18 risdiction that has issued a recall, the com19 pany’s contact information, and the specific

20 motor vehicle or motor vehicle equipment that

21 is the subject of a recall.

22 (C) The country in which the recall is in

23 effect, and the date of the recall.

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

25 relevant information to its competent authority and
7

•S 3059 IS

1 having the authority share it with the competent au2 thorities of other countries, will disseminate widely

3 the final guidelines negotiated to all relevant govern4 mental departments, agencies, and branches of gov5 ernment.

6 (5) Each signatory that is an advanced indus7 trialized country will seek to assist other countries

8 that are signatories to implement the agreement,

9 and to aid efforts by those countries to ensure com10 pliance with the agreement.

11 (6) Each signatory will establish a framework

12 to conduct regular oversight and review to assess the

13 operation and effectiveness of the agreement and to

14 create a forum in which each signatory can share

15 with other signatories the laws and regulations it

16 has adopted to implement the agreement.

17 (d) GUIDELINES FOR ENTERPRISES ENGAGED IN

18 TRADE.—The international agreement negotiated under

19 subsection (a) should incorporate the following guidelines

20 on recalls for manufacturers engaged in exporting motor

21 vehicles or motor vehicle equipment or manufacturing

22 motor vehicle equipment for inclusion in motor vehicles to

23 be exported:

24 (1) TRANSPARENCY AND DISCLOSURE.—Each

25 such manufacturer should disclose all relevant infor-
8

•S 3059 IS

1 mation regarding any recall it undertakes to the

2 competent authority in the country in which it initi3 ates the recall and to the competent authority in the

4 country in which it is incorporated. The information

5 should be extensive enough to facilitate public notice

6 described in subsection (c)(3).

7 (2) CONSUMER INTERESTS.—Each such manu8 facturer should be cognizant of the fact that con9 sumers cross international borders and often take

10 vehicles with them, and should, to the greatest ex11 tent practical, make consumers aware of recalls of

12 its motor vehicles or motor vehicle equipment, par13 ticularly in countries that border or are in proximity

14 to a country in which the recall was initiated.

15 (3) COOPERATION WITH REGULATORY AU16 THORITIES.—Each such manufacturer should co17 operate promptly with the national authorities in

18 any country that is requesting information about a

19 motor vehicle or motor vehicle equipment recall in

20 an effort to safeguard consumer safety.

21 SEC. 4. COMPLIANCE REQUIRED FOR CERTIFICATION.

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

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

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

25 or an item of motor vehicle equipment under this section
9

•S 3059 IS

1 unless that person has established, through testing or en2 gineering analyses, that the vehicle or equipment complies

3 with all applicable motor vehicle safety standards pre4 scribed under this chapter.’’.

5 SEC. 5. DEFECT AND NONCOMPLIANCE NOTIFICATION FOR

6 OEM EQUIPMENT; ACCIDENT DATA.

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

8 States Code, is amended—

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

10 equipment’’ in subsections (a), (b), and (c) and in11 serting ‘‘motor vehicle, original equipment, or re12 placement equipment’’;

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

14 subsections (e) and (f); and

15 (3) by inserting after subsection (c) the fol16 lowing:

17 ‘‘(d) REVIEW OF SAFETY-RELATED DATA.—A manu18 facturer of a motor vehicle, original equipment, or replace19 ment equipment shall review and consider information re20 garding accidents and incidents involving motor vehicles

21 or equipment manufactured by that manufacturer (or a

22 related party) that resulted in fatalities, serious injuries,

23 or fires, including information about such accidents and

24 incidents outside the United States, and notify the Sec25 retary if the manufacturer has reason to believe that the
10

•S 3059 IS

1 vehicle or equipment involved has a safety-related defect

2 or fails to comply with any motor vehicle safety standard

3 prescribed under this chapter.’’.

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

5 subsection (a) take effect 180 days after the date of enact6 ment of this Act.

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

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

9 is amended—

10 (1) by striking ‘‘8 calendar years,’’ and insert11 ing ‘‘10 calendar years,’’; and

12 (2) by striking ‘‘3 calendar years,’’ and insert13 ing ‘‘5 calendar years,’’.

14 SEC. 7. USED MOTOR VEHICLES.

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

16 amended—

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

18 ‘‘To ensure’’; and

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

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

21 NOTICE HAS ISSUED.—

22 ‘‘(1) IN GENERAL.—A dealer may not sell a

23 used motor vehicle, except for purposes other than

24 resale, or lease a used motor vehicle to another, un25 less the dealer—
11

•S 3059 IS

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

2 any notification of a defect or noncompliance

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

4 that vehicle that has not been remedied; and

5 ‘‘(B) either—

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

7 noncompliance (within the meaning of such

8 term as used in section 30120); or

9 ‘‘(ii) obtains from the purchaser or

10 lessee a signed statement in writing ac11 knowledging receipt of a document that de12 scribes the defect or noncompliance (in13 cluding any relevant information from such

14 a notification) and the offer.

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

16 ‘‘(A) DEALER.—Notwithstanding section

17 30102(a)(1), the term ‘dealer’ means a person

18 who sold at least 10 motor vehicles to pur19 chasers for purposes other than resale within

20 the 12 months preceding the sale of the vehicle

21 referred to in paragraph (1). For purposes of

22 this subparagraph, the term motor vehicle does

23 not include a motor vehicle sold for parts or

24 scrap as a junk automobile (as defined in sec-
12

•S 3059 IS

1 tion 30501(4)) or a motor vehicle that is a sal2 vage vehicle (as defined in section 30501(7)).

3 ‘‘(B) USED MOTOR VEHICLE.—The term

4 ‘used motor vehicle’ means a motor vehicle that

5 has previously been purchased for purposes

6 other than resale.’’.

7 SEC. 8. SCHOOL BUSES.

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

9 amended by adding at the end the following:

10 ‘‘(d) OPERATION AFTER NOTIFICATION.—

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

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

13 noncompliance for that school bus under section

14 30118(b) or (c) may not operate the school bus as

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

16 the notice unless the defect or noncompliance is rem17 edied (within the meaning of that term as used in

18 section 30120) or the Secretary grants a waiver.

19 The Secretary may grant a waiver from the prohibi20 tion in the preceding sentence, or extend the 30-day

21 period, if the Secretary, in the Secretary’s sole dis22 cretion, finds that the waiver or extension is in the

23 public interest.’’.
13

•S 3059 IS

1 SEC. 9. COMMERCIAL PASSENGER VEHICLES.

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

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

4 end thereof the following:

5 ‘‘§ 30128. Commercial passenger vehicles

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

7 to transport passengers for compensation who receives a

8 notice of a defect or noncompliance for that motor vehicle

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

10 vehicle for that purpose until the defect or noncompliance

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

12 section 30120).’’.

13 (b) CLERICAL AMENDMENT.—The chapter analysis

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

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

‘‘30128. Commercial passenger vehicles’’.

16 SEC. 10. PENALTIES.

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

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

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

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

21 30125(c) or (d), 30126(b), 30127, 30128, 30141 through

22 30147, or 30166, or a regulation prescribed thereunder,

23 is liable to the United States Government for a civil pen24 alty of not more than $5,000 for each violation. A separate

25 violation occurs for each motor vehicle or item of motor
14

•S 3059 IS

1 vehicle equipment and for each failure or refusal to allow

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

3 maximum penalty under this paragraph for a related se4 ries of violations is $15,000,000, except that no such max5 imum applies in the case of a willful and intentional viola6 tion.’’.

7 (b) CRIMINAL PENALTIES.—

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

9 301 of title 49, United States Code, is amended by

10 adding at the end the following:

11 ‘‘§ 30170. Criminal penalties

12 ‘‘(a) DEFECTS THAT CAUSE GRIEVOUS BODILY

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

14 a motor vehicle or motor vehicle equipment into interstate

15 commerce with a safety-related defect that causes grievous

16 bodily harm to an individual if the manufacturer knows

17 of the defect at the time the vehicle or equipment is intro18 duced into intrestate commerce.

19 ‘‘(b) DEFECTS THAT CAUSE FATALITIES.—It is un20 lawful for a manufacturer to introduce a motor vehicle or

21 motor vehicle equipment into interstate commerce with a

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

23 if the manufacturer knows of the defect at the time the

24 vehicle or equipment is introduced into intrestate com25 merce.
15

•S 3059 IS

1 ‘‘(c) PENALTIES.—Violation of subsection (a) is pun2 ishable by fine of not more than $10,000, imprisonment

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

4 (b) is punishable by a fine of not more than $50,000, im5 prisonment for not more than 15 years, or both.’’.

6 (2) CLERICAL AMENDMENT.—The subchapter

7 analysis for subchapter IV of chapter 301 of title

8 49, United States Code, is amended by adding at

9 the end the following:

‘‘30170. Criminal penalties’’.

10 SEC. 11. RECORDS AND REPORTS.

11 (a) RECORDKEEPING AND REPORTING REQUIRE12 MENTS.—Section 30166(e) of title 49, United States

13 Code, is amended to read as follows:

14 ‘‘(e) RECORDS AND REPORTS.—

15 ‘‘(1) IN GENERAL.—The Secretary of Transpor16 tation is authorized to require a manufacturer of a

17 motor vehicle or motor vehicle equipment to keep

18 records, and a manufacturer, distributor, or dealer

19 to make reports, to enable the Secretary to decide

20 whether the manufacturer, distributor, or dealer has

21 complied or is complying with this chapter or a regu22 lation prescribed or order issued under this chapter.

23 This subsection does not impose a recordkeeping re24 quirement on a distributor or dealer in addition to

25 those imposed under subsection (f) of this section
16

•S 3059 IS

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

2 order issued under subsection (f) or section

3 30117(b).

4 ‘‘(2) ACCIDENTS AND INCIDENTS.—The Sec5 retary of Transportation shall require a manufac6 turer of a motor vehicle or motor vehicle equipment

7 to keep records and to make reports if the manufac8 turer has received information with regard to acci9 dents or other incidents involving motor vehicles or

10 equipment manufactured by that manufacturer (or a

11 related party) that resulted in fatalities, serious inju12 ries, or fires. The Secretary is authorized to require

13 that the reports be made when the information is re14 ceived by the manufacturer, periodically, or in re15 sponse to an order or request by the Secretary.

16 ‘‘(3) WARRANTY, CLAIM, AND OTHER INFORMA17 TION.—The Secretary of Transportation is author18 ized to require a manufacturer of a motor vehicle or

19 motor vehicle equipment to keep records and to

20 make reports with regard to warranty or adjustment

21 information, consumer complaints, consumer satis22 faction campaigns, lawsuits (but only with respect to

23 lawsuits for which the manufacturer has been named

24 as a defendant in 3 or more lawsuits with respect to

25 the same defect), personal injury claims, and other
17

•S 3059 IS

1 safety-related information relating to actual or po2 tential defects. The Secretary is authorized to re3 quire a manufacturer of motor vehicle equipment to

4 provide information to the Secretary related to the

5 number, or other identifying characteristic, of equip6 ment made or sold by that manufacturer. The Sec7 retary is authorized to require that the reports be

8 made when the information is received by the manu9 facturer, periodically, or in response to an order or

10 request by the Secretary.

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

12 COMMUNICATIONS.—The Secretary of Transpor13 tation is authorized to require a manufacturer of a

14 motor vehicle or motor vehicle equipment to provide

15 reasonable access to the manufacturer’s communica16 tions related to defects and recalls to the same ex17 tent and in the same manner as provided to the

18 manufacturer’s dealers.

19 ‘‘(5) INSURORS.—The Secretary of Transpor20 tation is authorized to require a person in the busi21 ness of providing automobile insurance or resolving

22 claims under insurance policies to keep records or to

23 make reports, upon receiving information, periodi24 cally, or in response to an order or specific request

25 to make a report regarding accidents or incidents in
18

•S 3059 IS

1 vehicles and equipment that result in fatalities, seri2 ous injuries, or fires. The information required may

3 include the vehicle identification number, the in4 sured’s name, address, and telephone number. The

5 Secretary shall treat any such information with re6 spect to an insured person as confidential informa7 tion.’’.

8 (b) COMMUNICATIONS ABOUT DEFECTS AND NON9 COMPLIANCE.—Section 30166(f) of title 49, United States

10 Code, is amended by striking ‘‘communication to’’ and in11 serting ‘‘communication to, or made available to,’’.

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

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

14 ‘‘(a) DEFINITIONS.—Notwithstanding section

15 30102(a), in this section:

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

17 ‘motor vehicle accident’ means an occurrence associ18 ated with the maintenance or operation of a motor

19 vehicle or motor vehicle equipment resulting in per20 sonal injury, death, or property damage.

21 ‘‘(2) DEALER.—The term ‘dealer’ means a per22 son selling and distributing new motor vehicles or

23 motor vehicle equipment, inside or outside the

24 United States, primarily to purchasers that in good
19

•S 3059 IS

1 faith purchase the vehicles or equipment other than

2 for resale.

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

4 means a person primarily selling and distributing

5 motor vehicles or motor vehicle equipment, inside or

6 outside the United States, for resale.

7 ‘‘(4) MANUFACTURER.—The term

8 ‘manufacturer’—

9 ‘‘(A) means a person—

10 ‘‘(i) manufacturing or assembling

11 motor vehicles or motor vehicle equipment;

12 or

13 ‘‘(ii) importing motor vehicles or

14 motor vehicle equipment for resale; and

15 ‘‘(B) includes—

16 ‘‘(i) a person incorporated within or

17 with its principal place of business in the

18 United States and its direct and indirect

19 domestic and foreign subsidiaries and af20 filiates;

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

22 of business in a foreign country, including

23 its direct or indirect domestic and foreign

24 subsidiaries and affiliates, any of which ex-
20

•S 3059 IS

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—
21

•S 3059 IS

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-
22

•S 3059 IS

1 ing motor vehicle tire load limits and maintaining proper

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

Æ