H. R. 5164
One Hundred Sixth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the twenty-fourth day of January, two thousand
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 Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Transportation Recall Enhance-
ment, 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and Related Agencies Appropriations Act, 2001 are repealed and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 adding at the end the
following:
‘‘(l) REPORTING OF DEFECTS IN MOTOR VEHICLES AND PRODUCTS
IN FOREIGN COUNTRIES.—
‘‘(1) REPORTING OF DEFECTS, MANUFACTURER DETERMINA-
TION.—Not later than 5 working days after determining to
conduct a safety recall or other safety campaign in a foreign
country on a motor vehicle or motor vehicle equipment that
is identical or substantially similar to a motor vehicle or motor
vehicle equipment offered for sale in the United States, the
manufacturer shall report the determination to the Secretary.
‘‘(2) REPORTING OF DEFECTS, FOREIGN GOVERNMENT DETER-
MINATION.—Not later than 5 working days after receiving
notification that the government of a foreign country has deter-
mined that a safety recall or other safety campaign must be
conducted in the foreign country on a motor vehicle or motor
vehicle equipment that is identical or substantially 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 Secretary.
‘‘(3) REPORTING REQUIREMENTS.—The Secretary shall pre-
scribe the contents of the notification required by this sub-
section.’’.
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(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 the enactment of the Transportation Recall Enhance-
ment, Accountability, and Documentation (TREAD) Act, the
Secretary shall initiate a rulemaking proceeding to establish
early warning reporting requirements for manufacturers of
motor vehicles and motor vehicle equipment to enhance the
Secretary’s ability to carry out the provisions of this chapter.
‘‘(2) DEADLINE.—The Secretary shall issue a final rule
under paragraph (1) not later than June 30, 2002.
‘‘(3) REPORTING ELEMENTS.—
‘‘(A) WARRANTY AND CLAIMS DATA.—As part of the final
rule promulgated under paragraph (1), the Secretary shall
require manufacturers of motor vehicles and motor vehicle
equipment to report, periodically or upon request by the
Secretary, information which is received by the manufac-
turer derived from foreign and domestic sources to the
extent that such information may assist in the identifica-
tion of defects 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 (including death) and aggregate
statistical data on property damage from alleged
defects in a motor vehicle or in motor vehicle equip-
ment; or
‘‘(ii) customer satisfaction campaigns, consumer
advisories, recalls, or other activity involving the repair
or replacement of motor vehicles or items of motor
vehicle equipment.
‘‘(B) OTHER DATA.—As part of the final rule promul-
gated under paragraph (1), the Secretary 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 equip-
ment to report, periodically or upon request of the Sec-
retary, such information as the Secretary may request.
‘‘(C) REPORTING OF POSSIBLE DEFECTS.—The manufac-
turer 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 manu-
facturer receives actual notice which involve fatalities or
serious injuries which are alleged or proven to have been
caused by a possible defect in such manufacturer’s motor
vehicle or motor vehicle equipment in the United States,
or in a foreign country when the possible defect is in
a motor vehicle or motor vehicle 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 REPORTING ELEMENTS.—
‘‘(A) SECRETARY’S
SPECIFICATIONS.—In requiring the
reporting of any information requested by the Secretary
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under this subsection, the Secretary shall specify in the
final rule promulgated under paragraph (1)—
‘‘(i) how such information will be reviewed and
utilized to assist in the identification of defects related
to motor vehicle safety;
‘‘(ii) the systems and processes the Secretary will
employ or establish to review and utilize such informa-
tion; and
‘‘(iii) the manner and form of reporting such
information, including in electronic form.
‘‘(B) INFORMATION IN POSSESSION OF MANUFACTURER.—
The regulations promulgated by the Secretary under para-
graph (1) may not require a manufacturer of a motor
vehicle or motor vehicle equipment to maintain or submit
records respecting information not in the possession of
the manufacturer.
‘‘(C) DISCLOSURE.—None of the information collected
pursuant to the final rule promulgated under paragraph
(1) shall be disclosed pursuant to section 30167(b) unless
the Secretary determines the disclosure of such information
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 manufac-
turer of a motor vehicle or motor vehicle equipment, taking
into account the manufacturer’s cost of complying with
such requirements and the Secretary’s ability to use the
information sought in a meaningful manner to assist in
the identification of defects related to motor vehicle safety.
‘‘(5) PERIODIC REVIEW.—As part of the final rule promul-
gated 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 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 NONCOMPLIANT TIRE.—
‘‘(1) IN GENERAL.—The Secretary shall, within 90 days of
the date of the enactment of the Transportation Recall Enhance-
ment, Accountability, and Documentation (TREAD) Act, issue
a final rule requiring 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 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 paragraph (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 noncompliance is
required under section 30118(b) but enforcement of the
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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 Transportation 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 per-
sons 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 Representatives and the
Committee on Commerce, Science, and Transportation of the
Senate.
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 section
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 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 a civil penalty for failing or
refusing to allow or perform 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 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 intention of misleading the Secretary
with respect to motor vehicle or motor vehicle equipment safety
related defects that have caused death or serious bodily injury
to an individual (as defined in section 1365(g)(3) of title 18),
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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.—
‘‘(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 accident
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 SUFFICIENCY OF CORREC-
TION.—The Secretary shall establish by regulation what
constitutes a reasonable time for the purposes of subpara-
graph (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 the 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
JUSTICE.—The
Attorney General may bring an action, or initiate grand jury pro-
ceedings, 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. 6. ACCELERATION OF MANUFACTURER REMEDY PROGRAM.
(a) REMEDY PROGRAM.—Section 30120(c) of title 49, United
States Code, is amended by inserting at the end thereof the fol-
lowing:
‘‘(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 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 reason-
ably achieved by expanding the sources of replacement parts,
expanding the number of authorized repair facilities, or both.
The Secretary may prescribe regulations to carry out this para-
graph.’’.
(b) REIMBURSEMENT PRIOR
TO RECALL.—Section 30120(d) of
title 49, United States Code, is amended by inserting at the end
thereof the following: ‘‘A manufacturer’s remedy program shall
include a plan for reimbursing an owner or purchaser who incurred
the cost of the remedy within a reasonable time in advance of
the manufacturer’s notification under subsection (b) or (c) of section
30118. The Secretary may prescribe regulations establishing what
constitutes a reasonable time for purposes of the preceding sentence
and other reasonable conditions for the reimbursement plan.’’.
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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, the manufacturer shall
include a plan addressing how to prevent, to the extent reasonably
within the control of the manufacturer, replaced tires from being
resold for installation on a motor vehicle, and how to limit, to
the extent reasonably within the control of the manufacturer, the
disposal of replaced tires in landfills, particularly through shred-
ding, crumbling, recycling, recovery, and other alternative beneficial
non-vehicular uses. The manufacturer shall include information
about the implementation of such plan with each quarterly report
to the Secretary regarding the progress of any notification or remedy
campaigns.’’.
SEC. 8. SALES OF REPLACED EQUIPMENT.
Section 30120 of title 49, United States Code, is amended
by adding at the end the following:
‘‘( j) PROHIBITION ON SALES OF REPLACED EQUIPMENT.—No per-
son may sell or lease any 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) in a condition that it may be reasonably used for its
original purpose unless—
‘‘(1) the defect or noncompliance is remedied as required
by this section before delivery under the sale or lease; or
‘‘(2) notification of the defect or noncompliance is required
under section 30118(b) but enforcement of the order is set
aside in a civil action to which section 30121(d) applies.’’.
SEC. 9. CERTIFICATION LABEL.
Section 30115 of title 49, United States Code, is amended
by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘A manufacturer’’ and by
adding at the end the following:
‘‘(b) CERTIFICATION LABEL.—In the case of the certification label
affixed by an intermediate or final stage manufacturer 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 accordance with regulations pre-
scribed by the Secretary; or
‘‘(2) that it has elected to assume responsibility for compli-
ance with that standard.
If the intermediate or final stage manufacturer elects to assume
responsibility for compliance with the standard covered by the
documentation provided by an incomplete motor vehicle manufac-
turer, the intermediate or final stage manufacturer shall notify
the incomplete motor vehicle manufacturer 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. 10. ENDURANCE AND RESISTANCE STANDARDS FOR TIRES.
The Secretary of Transportation shall conduct a rulemaking
to revise and update the tire standards published at 49 CFR 571.109
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and 49 CFR 571.119. The Secretary shall complete the rulemaking
under this section not later than June 1, 2002.
SEC. 11. IMPROVED TIRE INFORMATION.
(a) TIRE LABELING.—Within 30 days after the date of the enact-
ment of this Act, the Secretary of Transportation shall initiate
a rulemaking proceeding to improve the labeling of tires required
by section 30123 of title 49, United States Code to assist consumers
in identifying tires that may be the subject of a decision under
section 30118(b) or a notice required under section 30118(c). The
Secretary shall complete the rulemaking not later than June 1,
2002.
(b) INFLATION LEVELS AND LOAD LIMITS.—In the rulemaking
initiated under subsection (a), the Secretary may take whatever
additional action is appropriate to ensure that the public is aware
of the importance of observing motor vehicle tire load limits and
maintaining proper tire inflation levels for the safe operation of
a motor vehicle. Such additional action may include a requirement
that the manufacturer of motor vehicles provide the purchasers
of the motor vehicles information on appropriate tire inflation levels
and load limits if the Secretary determines that requiring such
manufacturers to provide such information is the most appropriate
way such information can be provided.
SEC. 12. ROLLOVER TESTS.
Section 30117 of title 49, United States Code, is amended
by adding at the end the following:
‘‘(c) ROLLOVER TESTS.—
‘‘(1) DEVELOPMENT.—Not later than 2 years from the date
of the enactment of this subsection, the Secretary shall—
‘‘(A) develop a dynamic test on rollovers by motor
vehicles for the purposes of a consumer information pro-
gram; 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 shall conduct a rulemaking
to determine how best to disseminate test results to the public.
‘‘(3) MOTOR VEHICLES COVERED.—This subsection applies
to motor vehicles, including passenger cars, multipurpose pas-
senger vehicles, and trucks, with a gross vehicle weight rating
of 10,000 pounds or less. A motor vehicle designed to provide
temporary residential accommodations is not covered.’’.
SEC. 13. TIRE PRESSURE WARNING.
Not later than 1 year after the date of the enactment of this
Act, the Secretary of Transportation shall complete a rulemaking
for a regulation to require a warning system in new motor vehicles
to indicate to the operator when a tire is significantly under inflated.
Such requirement shall become effective not later than 2 years
after the date of the completion of such rulemaking.
SEC. 14. IMPROVING THE SAFETY OF CHILD RESTRAINTS.
(a) IN GENERAL.—Not later than 12 months after the date
of the enactment of this Act, the Secretary of Transportation shall
initiate a rulemaking for the purpose of improving the safety of
child restraints, including minimizing head injuries from side
impact collisions.
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(b) 
ELEMENTS
FOR
CONSIDERATION.—In 
the 
rulemaking
required by subsection (a), the Secretary shall consider—
(1) whether to require more comprehensive tests for child
restraints than the current Federal motor vehicle safety stand-
ards requires, including the use of dynamic tests that—
(A) replicate an array of crash conditions, such as
side-impact crashes and rear-impact crashes; and
(B) reflect the designs of passenger motor vehicles as
of the date of the enactment of this Act;
(2) whether to require the use of anthropomorphic test
devices that—
(A) represent a greater range of sizes of children
including the need to require the use of an anthropomorphic
test device that is representative of a ten-year-old child;
and
(B) are Hybrid III anthropomorphic test devices;
(3) whether to require improved protection from head
injuries in side-impact and rear-impact crashes;
(4) how to provide consumer information on the physical
compatibility of child restraints and vehicle seats on a model-
by-model basis;
(5) whether to prescribe clearer and simpler labels and
instructions required to be placed on child restraints;
(6) whether to amend Federal Motor Vehicle Safety
Standard No. 213 (49 CFR 571.213) to cover restraints for
children weighing up to 80 pounds;
(7) whether to establish booster seat performance and struc-
tural integrity requirements to be dynamically tested in 3-
point lap and shoulder belts;
(8) whether to apply scaled injury criteria performance
levels, including neck injury, developed for Federal Motor
Vehicle Safety Standard No. 208 to child restraints and booster
seats covered by in Federal Motor Vehicle Safety Standard
No. 213; and
(9) whether to include child restraint in each vehicle crash
tested under the New Car Assessment Program.
(c) REPORT TO CONGRESS.—If the Secretary does not incorporate
any element described in subsection (b) in the final rule, the Sec-
retary shall explain, in a report to the Senate Committee on Com-
merce, Science, and Transportation and the House of Representa-
tives Committee on Commerce submitted within 30 days after
issuing the final rule, specifically why the Secretary did not incor-
porate any such element in the final rule.
(d) COMPLETION.—Notwithstanding any other provision of law,
the Secretary shall complete the rulemaking required by subsection
(a) not later than 24 months after the date of the enactment
of this Act.
(e) CHILD RESTRAINT DEFINED.—In this section, the term ‘‘child
restraint’’ has the meaning given the term ‘‘Child restraint system’’
in section 571.213 of title 49, Code of Federal Regulations (as
in effect on the date of the enactment of this Act).
(f ) FUNDING.—For each fiscal year, of the funds made available
to the Secretary for activities relating to safety, not less than
$750,000 shall be made available to carry out crash testing of
child restraints.
(g) CHILD RESTRAINT SAFETY RATINGS PROGRAM.—No later than
12 months after the date of the enactment of this Act, the Secretary
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of Transportation shall issue a notice of proposed rulemaking to
establish a child restraint safety rating consumer information pro-
gram to provide practicable, readily understandable, and timely
information to consumers for use in making informed decisions
in the purchase of child restraints. No later than 24 months after
the date of the enactment of this Act the Secretary shall issue
a final rule establishing a child restraint safety rating program
and providing other consumer information which the Secretary
determines would be useful consumers who purchase child restraint
systems.
(h) BOOSTER SEAT STUDY.—In addition to consideration of
booster seat performance and structural integrity contained in sub-
section (b)(7), not later than 12 months after the date of the enact-
ment of this Act, the Secretary of Transportation shall initiate
and complete a study, taking into account the views of the public,
on the use and effectiveness of automobile booster seats for children,
compiling information on the advantages and disadvantages of using
booster seats and determining the benefits, if any, to children
from use of booster with lap and shoulder belts compared to children
using lap and shoulder belts alone, and submit a report on the
results of that study to the Congress.
(i) BOOSTER SEAT EDUCATION PROGRAM.—The Secretary of
Transportation within 1 year after the date of the enactment of
this Act shall develop 5 year strategic plan to reduce deaths and
injuries caused by failure to use the appropriate booster seat in
the 4 to 8 year old age group by 25 percent.
SEC. 15. IMPROVING CRITERIA USED IN A RECALL.
(a) REVIEW OF STANDARDS AND CRITERIA USED IN OPENING
A DEFECT OR NONCOMPLIANCE INVESTIGATION.—The Secretary shall,
not later than 30 days after the date of the enactment of this
Act, undertake a comprehensive review of all standards, criteria,
procedures, and methods, including data management and analysis
used by the National Highway Traffic Safety Administration in
determining whether to open a defect or noncompliance investiga-
tion 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, proce-
dures, or methods, including data management and analysis.
(b) REPORT TO CONGRESS.—Not later than 1 year after the
date of the 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. 16. FOLLOW-UP REPORT.
One year after the date of the enactment of this Act, the
Secretary of Transportation shall report to the Congress on the
implementation of the amendments made by this Act and any
recommendations for additional amendments for consumer safety.
SEC. 17. AUTHORIZATION OF APPROPRIATIONS.
In addition to any sums authorized to be appropriated by
section 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
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made by this Act. Such funds shall not be available for the general
administrative expenses of the Secretary or the Administration.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.