II
106TH CONGRESS
2D SESSION
H. R. 5164
IN THE SENATE OF THE UNITED STATES
OCTOBER 11 (legislative day, SEPTEMBER 22), 2000
Received
AN ACT
To amend title 49, United States Code, to require reports
concerning defects in motor vehicles or tires or other
motor vehicle equipment in foreign countries, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Transportation Recall
Enhancement, 
Accountability, 
and 
Documentation
(TREAD) Act’’.
SEC. 2. PRESERVATION OF SECTION 30118.
The amendments made to section 30118 of title 49,
United States Code, by section 364 of the Department of
Transportation and Related Agencies Appropriations Act,
2001 are repealed and such section shall be effective as
if such amending section had not been enacted.
SEC. 3. REPORTING REQUIREMENTS.
(a) DEFECTS
IN FOREIGN COUNTRIES.—Section
30166 of title 49, United States Code, is amended by add-
ing at the end the following:
‘‘(l) REPORTING OF DEFECTS IN MOTOR VEHICLES
AND PRODUCTS IN FOREIGN COUNTRIES.—
‘‘(1) REPORTING OF DEFECTS, MANUFACTURER
DETERMINATION.—Not later than 5 working days
after determining to conduct a safety recall or other
safety campaign in a foreign country on a motor ve-
hicle or motor vehicle equipment that is identical or
substantially similar to a motor vehicle or motor ve-
hicle equipment offered for sale in the United
States, the manufacturer shall report the determina-
tion to the Secretary.
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‘‘(2) REPORTING OF DEFECTS, FOREIGN GOV-
ERNMENT DETERMINATION.—Not later than 5 work-
ing days after receiving notification that the govern-
ment of a foreign country has determined that a
safety recall or other safety campaign must be con-
ducted in the foreign country on a motor vehicle or
motor vehicle equipment that is identical or substan-
tially similar to a motor vehicle or motor vehicle
equipment offered for sale in the United States, the
manufacturer of the motor vehicle or motor vehicle
equipment shall report the determination to the Sec-
retary.
‘‘(3) REPORTING
REQUIREMENTS.—The Sec-
retary shall prescribe the contents of the notification
required by this subsection.’’.
(b) EARLY WARNING REPORTING REQUIREMENTS.—
Section 30166, of title 49, United States Code, is amended
by adding at the end the following:
‘‘(m) 
EARLY
WARNING
REPORTING
REQUIRE-
MENTS.—
‘‘(1) RULEMAKING REQUIRED.—Not later than
120 days after the date of the enactment of the
Transportation Recall Enhancement, Accountability,
and Documentation (TREAD) Act, the Secretary
shall initiate a rulemaking proceeding to establish
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early warning reporting requirements for manufac-
turers of motor vehicles and motor vehicle equipment
to enhance the Secretary’s ability to carry out the
provisions of this chapter.
‘‘(2) DEADLINE.—The Secretary shall issue a
final rule under paragraph (1) not later than June
30, 2002.
‘‘(3) REPORTING ELEMENTS.—
‘‘(A) WARRANTY AND CLAIMS DATA.—As
part of the final rule promulgated under para-
graph (1), the Secretary shall require manufac-
turers of motor vehicles and motor vehicle
equipment to report, periodically or upon re-
quest by the Secretary, information which is re-
ceived by the manufacturer derived from foreign
and domestic sources to the extent that such in-
formation may assist in the identification of de-
fects related to motor vehicle safety in motor
vehicles and motor vehicle equipment in the
United States and which concerns—
‘‘(i) data on claims submitted to the
manufacturer for serious injuries (includ-
ing death) and aggregate statistical data
on property damage from alleged defects in
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a motor vehicle or in motor vehicle equip-
ment; or
‘‘(ii) customer satisfaction campaigns,
consumer advisories, recalls, or other activ-
ity involving the repair or replacement of
motor vehicles or items of motor vehicle
equipment.
‘‘(B) OTHER DATA.—As part of the final
rule promulgated under paragraph (1), the Sec-
retary may, to the extent that such information
may assist in the identification of defects re-
lated to motor vehicle safety in motor vehicles
and motor vehicle equipment in the United
States, require manufacturers of motor vehicles
or motor vehicle equipment to report, periodi-
cally or upon request of the Secretary, such in-
formation as the Secretary may request.
‘‘(C) 
REPORTING
OF
POSSIBLE
DE-
FECTS.—The manufacturer of a motor vehicle
or motor vehicle equipment shall report to the
Secretary, in such manner as the Secretary es-
tablishes by regulation, all incidents of which
the manufacturer receives actual notice which
involve fatalities or serious injuries which are
alleged or proven to have been caused by a pos-
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sible defect in such manufacturer’s motor vehi-
cle or motor vehicle equipment in the United
States, or in a foreign country when the pos-
sible defect is in a motor vehicle or motor vehi-
cle equipment that is identical or substantially
similar to a motor vehicle or motor vehicle
equipment offered for sale in the United States.
‘‘(4) HANDLING AND UTILIZATION OF REPORT-
ING ELEMENTS.—
‘‘(A) SECRETARY’S
SPECIFICATIONS.—In
requiring the reporting of any information re-
quested by the Secretary under this subsection,
the Secretary shall specify in the final rule pro-
mulgated under paragraph (1)—
‘‘(i) how such information will be re-
viewed and utilized to assist in the identi-
fication of defects related to motor vehicle
safety;
‘‘(ii) the systems and processes the
Secretary will employ or establish to review
and utilize such information; and
‘‘(iii) the manner and form of report-
ing such information, including in elec-
tronic form.
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‘‘(B) INFORMATION
IN
POSSESSION
OF
MANUFACTURER.—The regulations promulgated
by the Secretary under paragraph (1) may not
require a manufacturer of a motor vehicle or
motor vehicle equipment to maintain or submit
records respecting information not in the pos-
session of the manufacturer.
‘‘(C) DISCLOSURE.—None of the informa-
tion collected pursuant to the final rule promul-
gated under paragraph (1) shall be disclosed
pursuant to section 30167(b) unless the Sec-
retary determines the disclosure of such infor-
mation will assist in carrying out sections
30117(b) and 30118 through 30121.
‘‘(D) BURDENSOME
REQUIREMENTS.—In
promulgating the final rule under paragraph
(1), the Secretary shall not impose require-
ments unduly burdensome to a manufacturer of
a motor vehicle or motor vehicle equipment,
taking into account the manufacturer’s cost of
complying with such requirements and the Sec-
retary’s ability to use the information sought in
a meaningful manner to assist in the identifica-
tion of defects related to motor vehicle safety.
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‘‘(5) PERIODIC REVIEW.—As part of the final
rule promulgated pursuant to paragraph (1), the
Secretary shall specify procedures for the periodic
review and update of such rule.’’.
(c) SALE OR LEASE OF DEFECTIVE OR NONCOMPLI-
ANT TIRE.—Section 30166 of title 49, United States
Code, as amended by subsection (b), is amended by adding
at the end the following:
‘‘(n) SALE
OR LEASE
OF DEFECTIVE
OR NON-
COMPLIANT TIRE.—
‘‘(1) IN GENERAL.—The Secretary shall, within
90 days of the date of the enactment of the Trans-
portation Recall Enhancement, Accountability, and
Documentation (TREAD) Act, issue a final rule re-
quiring any person who knowingly and willfully sells
or leases for use on a motor vehicle a defective tire
or a tire which is not compliant with an applicable
tire safety standard with actual knowledge that the
manufacturer of such tire has notified its dealers of
such defect or noncompliance as required under sec-
tion 30118(c) or as required by an order under sec-
tion 30118(b) to report such sale or lease to the
Secretary.
‘‘(2) DEFECT OR NONCOMPLIANCE REMEDIED
OR ORDER NOT
IN EFFECT.—Regulations under
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paragraph (1) shall not require the reporting de-
scribed in paragraph (1) where before delivery under
a sale or lease of a tire—
‘‘(A) the defect or noncompliance of the
tire is remedied as required by section 30120;
or
‘‘(B) notification of the defect or non-
compliance is required under section 30118(b)
but enforcement of the order is restrained or
the order is set aside in a civil action to which
section 30121(d) applies.’’.
(d) INSURANCE STUDY.—The Secretary of Transpor-
tation shall conduct a study to determine the feasibility
and utility of obtaining aggregate information on a regular
and periodic basis regarding claims made for private pas-
senger automobile accidents from persons in the business
of providing private passenger automobile insurance or of
adjusting insurance claims for such automobiles. Not later
than 120 days after the date of the enactment of this Act,
the Secretary shall transmit the results of such study to
the Committee on Commerce of the House of Representa-
tives and the Committee on Commerce, Science, and
Transportation of the Senate.
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SEC. 4. REMEDIES WITHOUT CHARGE.
Section 30120(g)(1) of title 49, United States Code,
is amended by—
(1) striking ‘‘8 calendar years’’ and inserting
‘‘10 calendar years’’; and
(2) striking ‘‘3 calendar years’’ and inserting
‘‘5 calendar years’’.
SEC. 5. PENALTIES.
(a) CIVIL PENALTIES.—Section 30165(a) of title 49,
United States Code, is amended to read as follows:
‘‘(a) CIVIL PENALTIES.—
‘‘(1) IN GENERAL.—A person that violates any
of sections 30112, 30115, 30117 through 30122,
30123(d), 30125(c), 30127, or 30141 through
30147, or a regulation prescribed thereunder, is lia-
ble to the United States Government for a civil pen-
alty of not more than $5,000 for each violation. A
separate violation occurs for each motor vehicle or
item of motor vehicle equipment and for each failure
or refusal to allow or perform an act required by any
of those sections. The maximum penalty under this
subsection for a related series of violations is
$15,000,000.
‘‘(2) SECTION
30166.—A person who violates
section 30166 or a regulation prescribed under that
section is liable to the United States Government for
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a civil penalty for failing or refusing to allow or per-
form an act required under that section or regula-
tion. The maximum penalty under this paragraph is
$5,000 per violation per day. The maximum penalty
under this paragraph for a related series of daily
violations is $15,000,000.’’.
(b) CRIMINAL PENALTIES.—
(1) IN GENERAL.—Subchapter IV of chapter
301 of title 49, United States Code, is amended by
adding at the end the following:
‘‘§ 30170. Criminal Penalties
‘‘(a) CRIMINAL
LIABILITY
FOR
FALSIFYING
OR
WITHHOLDING INFORMATION.—
‘‘(1) GENERAL RULE.—A person who violates
section 1001 of title 18 with respect to the reporting
requirements of section 30166, with the specific in-
tention of misleading the Secretary with respect to
motor vehicle or motor vehicle equipment safety re-
lated defects that have caused death or serious bod-
ily injury to an individual, (as defined in section
1365(g)(3) of title 18), shall be subject to criminal
penalties of a fine under title 18, or imprisoned for
not more than 15 years, or both.
‘‘(2) SAFE HARBOR TO ENCOURAGE REPORTING
AND FOR WHISTLE BLOWERS.—
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‘‘(A) CORRECTION.—A person described in
paragraph (1) shall not be subject to criminal
penalties under this subsection if: (1) at the
time of the violation, such person does not
know that the violation would result in an acci-
dent causing death or serious bodily injury; and
(2) the person corrects any improper reports or
failure to report within a reasonable time.
‘‘(B) REASONABLE
TIME
AND
SUFFI-
CIENCY OF CORRECTION.—The Secretary shall
establish by regulation what constitutes a rea-
sonable time for the purposes of subparagraph
(A) and what manner of correction is sufficient
for purposes of subparagraph (A). The Sec-
retary shall issue a final rule under this sub-
paragraph within 90 days of the date of the en-
actment of this section.
‘‘(C) EFFECTIVE
DATE.—Subsection (a)
shall not take effect before the final rule under
subparagraph (B) takes effect.
‘‘(b) COORDINATION WITH DEPARTMENT OF JUS-
TICE.—The Attorney General may bring an action, or ini-
tiate grand jury proceedings, for a violation of subsection
(a) only at the request of the Secretary of Transpor-
tation.’’.
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(2) CLERICAL
AMENDMENT.—The subchapter
analysis for subchapter IV of chapter 301 of title
49, United States Code, is amended by adding at
the end the following:
‘‘30170. Criminal penalties.’’.
SEC. 6. ACCELERATION OF MANUFACTURER REMEDY PRO-
GRAM.
Section 30120(c) of title 49, United States Code, is
amended by inserting at the end thereof the following:
‘‘(3) If the Secretary determines that a manufactur-
er’s remedy program is not likely to be capable of comple-
tion within a reasonable time, the Secretary may require
the manufacturer to accelerate the remedy program if the
Secretary finds—
‘‘(A) that there is a risk of serious injury or
death if the remedy program is not accelerated; and
‘‘(B) that acceleration of the remedy program
can be reasonably achieved by expanding the sources
of replacement parts, expanding the number of au-
thorized repair facilities, or both.
The Secretary may prescribe regulations to carry out this
paragraph.’’.
SEC. 7. SALES OF REPLACED TIRES.
Section 30120(d) of title 49, United States Code, is
amended by adding at the end the following: ‘‘In the case
of a remedy program involving the replacement of tires,