IB
Union Calendar No. 571
106TH CONGRESS
2D SESSION
H. R. 5164
[Report No. 106–954]
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.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 13, 2000
Mr. UPTON (for himself, Mr. TAUZIN, Mr. MARKEY, Mrs. WILSON, Mr. BOU-
CHER, Mr. WHITFIELD, Mr. GREEN of Texas, Mr. ROGAN, Mr. WAXMAN,
Mr. BILBRAY, Mr. FOSSELLA, Mr. GORDON, Ms. DEGETTE, Mr. LU-
THER, Ms. ESHOO, and Ms. MCCARTHY of Missouri) introduced the fol-
lowing bill; which was referred to the Committee on Commerce
OCTOBER 10, 2000
Additional sponsors: Mr. DINGELL, Mrs. CUBIN, Mr. GREENWOOD, Mr. EHR-
LICH, Ms. SLAUGHTER, Mr. CAMP, Mr. PHELPS, Mr. REYNOLDS, Mr.
FROST, Mr. BARRETT of Wisconsin, Ms. RIVERS, Ms. BERKLEY, Mr.
BLUNT, Mr. BOEHLERT, Mr. GEORGE MILLER of California, Mr. LA-
FALCE, Mr. WYNN, Mrs. THURMAN, Mr. TERRY, Mrs. ROUKEMA, Mr.
MOORE, Mr. DEUTSCH, Mr. SHIMKUS, Mr. LATOURETTE, Mr. KLINK,
and Mr. GILLMOR
OCTOBER 10, 2000
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on September 13, 2000]
A BILL
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,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Transportation Recall
Enhancement, 
Accountability, 
and 
Documentation
(TREAD) Act’’.
SEC. 2. REPORTING REQUIREMENTS.
(a) DEFECTS
IN
FOREIGN
COUNTRIES.—Section
30166 of title 49, United States Code, is amended by adding
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 determination to
the Secretary.
‘‘(2) REPORTING OF DEFECTS, FOREIGN GOVERN-
MENT
DETERMINATION.—Not later than 5 working
days after receiving notification that the government
of a foreign country has determined that a safety re-
call or other safety campaign must be conducted in
the foreign country on a motor vehicle or motor vehi-
cle equipment that is identical or substantially simi-
lar to a motor vehicle or motor vehicle equipment of-
fered for sale in the United States, the manufacturer
of the motor vehicle or motor vehicle equipment shall
report the determination to the Secretary.
‘‘(3) REPORTING
REQUIREMENTS.—The 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 REQUIREMENTS.—
‘‘(1) RULEMAKING REQUIRED.—Not later than
120 days after the date of enactment of the Transpor-
tation Recall Enhancement, Accountability, and Doc-
umentation (TREAD) Act, the Secretary shall ini-
tiate a rulemaking proceeding to establish early
warning reporting requirements for manufacturers of
motor vehicles and motor vehicle equipment to en-
hance the Secretary’s ability to carry out the provi-
sions 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 equip-
ment to report, periodically or upon request by
the Secretary, information which is received by
the manufacturer derived from foreign and do-
mestic sources to the extent that such informa-
tion may assist in the identification of defects re-
lated to motor vehicle safety in motor vehicles
and motor vehicle equipment in the United
States and which concerns—
‘‘(i) data on claims submitted to the
manufacturer for serious injuries (including
death) and aggregate statistical data on
property damage from alleged defects in a
motor vehicle or in motor vehicle equip-
ment; and
‘‘(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 related
to motor vehicle safety in motor vehicles and
motor vehicle equipment in the United States,
require manufacturers of motor vehicles or motor
vehicle equipment to report, periodically or upon
request of the Secretary, such information as the
Secretary may request.
‘‘(C) REPORTING OF POSSIBLE DEFECTS.—
The manufacturer of a motor vehicle or motor
vehicle equipment shall report to the Secretary,
in such manner as the Secretary establishes by
regulation, all incidents of which the manufac-
turer receives actual notice which involve fatali-
ties or serious injuries which are alleged or prov-
en to have been caused by a possible defect in
such manufacturer’s motor vehicle or motor vehi-
cle equipment in the United States or a foreign
country when the possible defect is in a motor
vehicle or motor vehicle equipment that is iden-
tical or substantially similar to a motor vehicle
or motor vehicle equipment offered for sale in the
United States.
‘‘(4) HANDLING AND UTILIZATION OF REPORTING
ELEMENTS.—
‘‘(A) SECRETARY’S SPECIFICATIONS.—In re-
quiring 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 Sec-
retary will employ or establish to permit
such information to be reviewed and uti-
lized; and
‘‘(iii) the manner and form of report-
ing such information, including in elec-
tronic form.
‘‘(B) INFORMATION IN POSSESSION OF MAN-
UFACTURER.—The regulations promulgated by
the Secretary under paragraph (1) may not re-
quire a manufacturer of a motor vehicle or motor
vehicle equipment to maintain and submit
records respecting information not in the posses-
sion 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 informa-
tion 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 requirements
unduly burdensome to a manufacturer of a
motor vehicle or motor vehicle equipment, taking
into account the manufacturer’s cost of com-
plying with such requirements and the Sec-
retary’s ability to use the information in a
meaningful manner to assist in the identifica-
tion of defects related to motor vehicle safety.
‘‘(5) PERIODIC REVIEW.—As part of the final
rule promulgated pursuant to paragraph (1), the Sec-
retary shall specify procedures for the periodic review
and update of such rule.’’.
(c) SALE OR LEASE OF DEFECTIVE OR NONCOMPLIANT
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 NONCOMPLI-
ANT TIRE.—
‘‘(1) IN GENERAL.—The Secretary shall, within
90 days of the date of this subsection, issue a final
rule requiring any person who knowingly and will-
fully sells or leases for use on a motor vehicle a defec-
tive tire or a tire which is not compliant with an ap-
plicable tire safety standard with actual knowledge
that the manufacturer of such tire has notified its
dealers of such defect or noncompliance as required
under section 30118(c) or as required by an order
under section 30118(b) to report such sale or lease to
the Secretary.
‘‘(2) DEFECT OR NONCOMPLIANCE REMEDIED OR
ORDER NOT IN EFFECT.—Regulations under para-
graph (1) shall not require the reporting described in
paragraph (1) where before delivery under a sale or
lease of a tire—
‘‘(A) the defect or noncompliance of the tire
is remedied as required by section 30120; or
‘‘(B) notification of the defect or noncompli-
ance is required under section 30118(b) but en-
forcement 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 passenger
automobile accidents from persons in the business of pro-
viding private passenger automobile insurance or of adjust-
ing insurance claims for such automobiles. Not later than
120 days after the date of enactment of this Act, the Sec-
retary shall transmit the results of such study to the Com-
mittee on Commerce of the House of Representatives and
the Committee on Commerce, Science, and Transportation
of the Senate.
SEC. 3. 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. 4. 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 liable to the
United States Government for a civil penalty of not
more than $5,000 for each violation. A separate viola-
tion occurs for each motor vehicle or item of motor ve-
hicle equipment and for each failure or refusal to
allow or perform an act required by any of those sec-
tions. The maximum penalty under this subsection for
a related series of violations is $15,000,000.
‘‘(2) SECTION 30166.—A person who violates sec-
tion 30166 or a regulation prescribed under that sec-
tion is liable to the United States Government for a
civil penalty for failing or refusing to allow or per-
form an act required under that section or regulation.
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 vio-
lations 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 WITH-
HOLDING 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 inten-
tion of misleading the Secretary with respect to motor
vehicle or motor vehicle equipment safety related de-
fects that have caused death or grievous bodily harm
to an individual, shall be subject to criminal pen-
alties of a fine under title 18, United States Code, or
imprisoned for not more than 15 years, or both.
‘‘(2) SAFE HARBOR TO ENCOURAGE REPORTING
AND FOR WHISTLE BLOWERS.—
‘‘(A) CORRECTION.—A person described in
paragraph (1) shall not be subject to criminal
penalties under this subsection if such person
corrects any improper reports or failure to re-
port within a reasonable time.
‘‘(B) REASONABLE TIME AND SUFFICIENCY
OF CORRECTION.—The Secretary shall establish
by regulation what constitutes a reasonable time
for the purposes of subparagraph (A) and what
manner of correction is sufficient for purposes of
subparagraph (A). The Secretary shall issue a
final rule under this subparagraph within 90
days of the date of enactment of this section.
‘‘(C) EFFECTIVE
DATE.—Subsection (a)
shall not take effect before the final rule under
subparagraph (B) takes effect.
‘‘(b) COORDINATION
WITH DEPARTMENT
OF 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 Transportation.’’.
(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. 5. 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 manufacturer’s
remedy program is not likely to be capable of completion
within a reasonable time, the Secretary may require the
manufacturer to accelerate the remedy program if the Sec-
retary 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. 6. 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 the
manufacturer shall include a plan addressing how to pre-
vent, to the extent reasonably within the control of the man-
ufacturer, replaced tires from being resold for installation
on a motor vehicle. The manufacturer shall include infor-
mation about the implementation of such plan with each
quarterly report to the Secretary about the progress about
the notification and remedy campaign.’’.
SEC. 7. SALES OF REPLACED EQUIPMENT.
Section 30112 of title 49, United States Code, is
amended by adding at the end the following:
‘‘(c) PROHIBITION ON SALES OF REPLACED EQUIP-
MENT.—No person may sell any item of motor vehicle
equipment (including a tire) for installation on a motor
vehicle that is the subject of a decision under section
30118(b) or a notice required under section 30118(c) or was
removed from a motor vehicle as part of an action taken
under section 30120(a) or 30120(b) in a condition that it
may be used for its original purpose unless the item of
motor vehicle equipment is no longer defective or is other-
wise free of the condition that was the subject of the action
taken under section 30120(a) or 30120(b).’’.
SEC. 8. CERTIFICATION LABEL.
Section 30115 of title 49, United States Code, is
amended by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘A man-
ufacturer’’ and by adding at the end the following:
‘‘(b) CERTIFICATION LABEL.—In the case of the certifi-
cation label affixed by an intermediate or final stage manu-
facturer of a motor vehicle built in more than 1 stage, each
intermediate or final stage manufacturer shall certify with
respect to each applicable Federal motor vehicle safety
standard—
‘‘(1) that it has complied with the specifications
set forth in the compliance documentation provided
by the incomplete motor vehicle manufacturer in ac-
cordance with regulations prescribed by the Secretary;
or
‘‘(2) that it has elected to assume responsibility
for compliance with that standard.
If the intermediate or final stage manufacturer elects to as-
sume responsibility for compliance with the standard cov-
ered by the documentation provided by an incomplete motor
vehicle manufacturer, the intermediate or final stage manu-
facturer shall notify the incomplete motor vehicle manufac-
turer in writing within a reasonable time of affixing the
certification label. A violation of this subsection shall not
be subject to a civil penalty under section 30165.’’.
SEC. 9. ENDURANCE AND RESISTANCE STANDARDS FOR
TIRES.
The Secretary of Transportation shall conduct a rule-
making to revise and update the tire standards published
at 49 C.F.R. 571.109 and 49 C.F.R. 571.119. The Secretary
shall complete the rulemaking under this section not later
than June 1, 2002.
SEC. 10. IMPROVED TIRE INFORMATION.
(a) TIRE LABELING.—Within 30 days after the date
of enactment of this Act, the Secretary of Transportation
shall initiate a rulemaking proceeding to improve the label-
ing of tires required by section 30123 of title 49, United
‘‘(A) develop a dynamic test on rollovers by
motor vehicles for the purposes of a consumer in-
formation program; and
‘‘(B) carry out a program of conducting
such tests.
‘‘(2) TEST RESULTS.—As the Secretary develops
a test under paragraph (1)(A), the Secretary, acting
through the National Highway Traffic Safety Admin-
istration, shall conduct a rulemaking to determine
how best to disseminate test results to the public.
‘‘(3) MOTOR
VEHICLES
COVERED.—This sub-
section applies to passenger cars, multipurpose pas-
senger vehicles, and trucks with a gross vehicle weight
rating of 10,000 pounds or less. A motor vehicle de-
signed to provide temporary residential accommoda-
tions is not covered.’’.
SEC. 12. TIRE PRESSURE WARNING.
Not later than one year after the date of enactment
of this Act, the Secretary of Transportation, acting through
the National Highway Traffic Safety Administration, shall
complete a rulemaking for a regulation to require a warn-
ing system in a motor vehicle to indicate to the operator
when a tire is significantly under inflated. Such require-
ment shall become effective not later than 2 years after the
date of the completion of such rulemaking.
SEC. 13. IMPROVING CRITERIA USED IN A RECALL.
(a) REVIEW OF STANDARDS AND CRITERIA USED IN
OPENING A DEFECT INVESTIGATION.—The Secretary shall,
not later than 30 days after the date of enactment of this
Act, undertake a comprehensive review of all standards, cri-
teria, procedures, and methods, including data management
and analytical capabilities, used by the National Highway
Traffic Safety Administration in determining whether to
open a defect investigation pursuant to subchapter II or
IV of chapter 301 of title 49, United States Code, and shall
undertake such steps as may be necessary to update and
improve such standards, criteria, procedures, or methods,
including data management and analytical capabilities.
(b) REPORT TO CONGRESS.—Not later than 1 year
after the date of enactment of this Act, the Secretary shall
transmit to the Committee on Commerce of the House of
Representatives and the Committee on Commerce, Science,
and Transportation of the Senate a report describing the
Secretary’s findings and actions under subsection (a).
SEC. 14. FOLLOW-UP REPORT.
One year after the date of enactment of this Act, the
Administrator of the National Highway Traffic Safety Ad-
ministration shall report to the Congress on the implemen-
tation of the amendments made by this Act and any rec-
ommendations for additional amendments for consumer
safety.
SEC. 15. AUTHORIZATION OF APPROPRIATIONS.
In addition to any sums authorized to be appropriated
by sections 30104 or 32102 of title 49, United States Code,
there is authorized to be appropriated to the Secretary of
Transportation for the National Highway Traffic Safety
Administration for fiscal year 2001 $9,100,000 to carry out
this Act and the amendments made by this Act. Such funds
shall not be available for the general administrative ex-
penses of the Secretary or the Administration.
Union Calendar No. 571
106TH CONGRESS
2D SESSION
H. R. 5164
[Report No. 106–954]
A BILL
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.
OCTOBER 10, 2000
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed