Source: https://www.federalregister.gov/documents/2015/09/14/2015-22922/defect-and-noncompliance-notification
Timestamp: 2018-03-20 20:00:13
Document Index: 395727018

Matched Legal Cases: ['art 577', '§\u2009577', 'art 577', 'art 577', 'art 577', 'art 577', 'art 577', '§\u2009577', '§\u2009577', 'art 1']

Federal Register :: Defect and Noncompliance Notification
A Rule by the National Highway Traffic Safety Administration on 09/14/2015
80 FR 55035
55035-55037 (3 pages)
2127-AL60
NHTSA-2015-0048
Final Rule; Defect and Noncomplaince Notification
https://www.federalregister.gov/d/2015-22922 https://www.federalregister.gov/d/2015-22922
This final rule amends NHTSA's regulation requiring motor vehicle manufacturers and replacement equipment manufacturers to notify owners and purchasers of a defect or noncompliance in vehicles or equipment that they produced. The amendments in this final rule will clarify that a manufacturer of replacement equipment providing a defect or noncompliance notification pursuant to this regulation can inform the purchaser of the replacement equipment of the manufacturer's intent to remedy the defect or noncompliance by refunding the purchase price of the replacement equipment. NHTSA is amending this regulation so that the regulation conforms to changes in the defect and noncompliance remedy provisions in the National Traffic and Motor Vehicle Safety Act (Safety Act) contained in the Moving Ahead for Progress in the 21st Century Act (MAP-21).
Effective date: This final rule is effective November 13, 2015.
Petitions for reconsideration: Petitions for reconsideration of this final rule must be received not later than October 29, 2015.
Thomas Healy, Office of Chief Counsel, NHTSA, 1200 New Jersey Avenue SE., Washington, DC 20590. Mr. Healy's telephone number is (202) 366-2992. His fax number is (202) 493-3820.
End Further Info End Preamble Start Supplemental Information Start Printed Page 55036
The Safety Act requires manufacturers of motor vehicles or items of replacement equipment to notify NHTSA and owners and purchasers of the vehicles or equipment if the manufacturer determines that a motor vehicle or item of motor vehicle equipment contains a defect related to motor vehicle safety or does not comply with an applicable motor vehicle safety standard and to remedy the defect or noncompliance without charge. 49 U.S.C. 30118(c), 30120. Manufacturers must provide notification pursuant to the procedures set forth in section 30119 of the Safety Act. Section 30119 sets forth the contents of the notification, which includes a clear description of the defect or noncompliance, the timing of the notification, means of providing notification and when a second notification is required. 49 U.S.C. 30119.
Section 30120 of the Safety Act provides a list of permissible remedies from which manufacturers must choose when determining how to remedy at defect. Section 30120 contains different remedy provisions for manufacturers of motor vehicles and manufacturers of replacement equipment. Section 30120 allows manufacturers of motor vehicles to remedy a defect or noncompliance “by repairing the vehicle; . . . by replacing the vehicle with an identical or reasonably equivalent vehicle; or . . . by refunding the purchase price, less a reasonable allowance for depreciation.” 49 U.S.C. 30120(a)(1)(A). Prior to MAP-21, Section 30120 allowed manufacturers of replacement equipment to remedy a defect or noncompliance by “repairing the equipment or replacing the equipment with identical or reasonable equivalent equipment.” 49 U.S.C. 30120(a)(1)(B) (2011). MAP-21 amended section 30120 by expanding the list of permissible remedies available to replacement equipment manufacturers to include refunding the purchase price of the equipment.[1]
The conduct of a recall notification campaign, including how and when owners, dealers, and distributors are notified, is addressed by regulation in 49 CFR part 577, Defect and Noncompliance Notification. Section 577.5 specifies the required content and structure of the owner notifications. Section 577.6 specifies the required content and structure of the notification if the owner notification is sent pursuant to an order by the NHTSA Administrator. Section 577.5 and 577.6 both specify that that the owner notification must include a statement notifying the owner of the vehicle or replacement equipment how the manufacturer intends to remedy the defect or noncompliance.
This final rule amends §§ 577.5 and 577.6 of 49 CFR part 577 so that the requirements for the statement notifying owners or purchasers of replacement equipment how the manufacturer intends to remedy a defect or noncompliance reflect the MAP-21 amendment allowing manufacturers of replacement equipment to remedy a defect or noncompliance by refunding the purchase price.
NHTSA did not issue an NPRM prior to this final rule. While the Administrative Procedure Act (APA) requires that agencies publish a general NPRM in the Federal Register prior to issuing a final rule, an agency is not required to publish an NPRM if the agency is able to make and makes a good cause finding that notice and public comment is “impracticable, unnecessary, or contrary to the public interest.” [2]
NHTSA finds that notice and public comment prior to issuing this final rule is unnecessary. The DC Circuit has held that the notice and public comment requirements of APA are unnecessary when the “rule is a routine determination, insignificant in nature and impact, and inconsequential to the industry and to the public.” [3] The amendments in this final rule do not create any new rights or obligations not already present in 49 U.S.C. 30120. The amendments in this final rule update the notification requirements in 49 CFR 577.5 and 577.6 to reflect that the option to refund the purchase price of the replacement equipment is available to manufacturers as a remedy for a defect or noncompliance. Furthermore, these changes were made by statutory amendment. Therefore, the amendments contained in this final rule do not involve the exercise of discretion on the part of the agency. Because this final rule does not create any rights or obligations not already present in 49 U.S.C. 30120 or involve the exercise of discretion by the agency, the impacts of this rule are insignificant and inconsequential to industry and the public making notice and public comment unnecessary.
This regulation amends 49 CFR part 577 to include refund of the purchase price of replacement equipment as a remedy available to replacement equipment manufacturers remedying a defect or noncompliance. This final rule does not require replacement equipment manufacturers to take any actions that they are not otherwise already required to take. Because there are not any costs or savings associated with this rulemaking, we have not prepared a separate economic analysis for this rulemaking.
In compliance with the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., NHTSA has evaluated the effects of this action on small entities. I hereby certify that this rule would not have a significant impact on a substantial number of small entities. The final rule affects manufacturers of motor vehicle replacement equipment some of which qualify as small businesses. However, this final rule does not significantly affect these entities because it does not require any additional actions on the part of equipment manufacturers not already required by 49 CFR part 577.
NHTSA has examined this rule pursuant to Executive Order 13132 (64 FR 43255, August 10, 1999) and concluded that no additional consultation with States, local governments or their representatives is mandated beyond the rulemaking process. The agency has concluded that the rulemaking would not have sufficient federalism implications to warrant consultation with State and local officials or the preparation of a federalism summary impact statement. The final rule would not have “substantial direct effects on the States, on the relationship between the national government and the States, or on the Start Printed Page 55037distribution of power and responsibilities among the various levels of government.” This final rule also will not preempt any state law.
Under the procedures established by the Paperwork Reduction Act of 1995, a person is not required to respond to a collection of information by a Federal agency unless the collection displays a valid OMB control number. The information collection requirements for 49 CFR part 577, Defect and Noncompliance Notification, are covered by OMB control number 2127-0004. The amendments in this final rule have no impact on the burden associated with this information collection.
Under the National Technology Transfer and Advancement Act of 1995 (NTTAA) (Pub. L. 104-113), “all Federal agencies and departments shall use technical standards that are developed or adopted by voluntary consensus standards bodies, using such technical standards as a means to carry out policy objectives or activities determined by the agencies and departments.” The amendments in this final rule consist of minor revisions to the required content of letters that manufacturers of replacement equipment for motor vehicles must sent to purchasers and owners to notify them of a defect or noncompliance and do not involve any voluntary consensus standards.
In consideration of the foregoing, NHTSA amends 49 CFR part 577 as follows:
2. Section 577.5 is amended by revising paragraphs (g)(1)(i) and (vi) to read as follows:
§ 577.5
Notification pursuant to a manufacturer's decision.
3. Section 577.6 is amended by revising paragraph (b)(9)(i)(B) to read as follows:
§ 577.6
Notification pursuant to Administrator's decision.
Issued in Washington, DC, on September 2, 2015 under authority delegated in 49 CFR part 1.95.
1. Public Law 112-141, 126 Stat. 771 (2012), Section 31311.
3. Mack Trucks, Inc. v. E.P.A. 682 F.3d 87, 92 (D.C. Cir. 2012) (quoting Util. Solid Waste Activities Grp. v. E.P.A., 236 F.3d 749, 754 (D.C. Cir. 2001).
[FR Doc. 2015-22922 Filed 9-11-15; 8:45 am]