[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5164 Enrolled Bill (ENR)]
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,

4e1768a805a5ca93b094e6b98e6ed4f5b4c72dbf0c606090a7a0714e1ac1311e

This Act may be cited as the ``Transportation Recall Enhancement,
Accountability, and Documentation (TREAD) Act''.

b162bb886b647ed46a67f412c4dc8afdfcdd2ba8995688f1314de1c42c4c5237

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Agencies Appropriations Act, 2001 are repealed and such section shall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.

3771d1ba0981524cd67a791dc9d9b8e540eaa16df40586602a21b4e8f50e57b9

(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
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 determination.--
Not later than 5 working days after receiving notification that the
government of a foreign country has determined 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 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 the enactment of the Transportation Recall Enhancement,
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 manufacturer derived from
foreign and domestic sources 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 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 equipment; 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 promulgated
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 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 manufacturer 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 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 information;
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 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 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 manufacturer 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 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 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 Enhancement,
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 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 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
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate.

aec4f4d09ab88d8bdd6967e4d8f0d2cd2baff3c85713ceb3faf6a6599043cd76

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''.

a541acd8ead86c0b8e71bbbd711cdd9b2f8b33b31bb5d8c5bfa95eeebd2471ec

(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:
``Sec. 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), 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 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 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 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.''.

2450b2b9e12ca536875ed95cf85beebaeee32f5f761a427219a699fd78e7e699

(a) Remedy Program.--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 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 authorized repair facilities, or both.
The Secretary may prescribe regulations to carry out this paragraph.''.
(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.''.

bab6296f03a890268eb0dc33fe7ba2f6650bb445c91081b3cc6eed89e0a27f6d

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 shredding, 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.''.

bad87a65e6aaa9888b65a71e7d7a3661144e8f1df92d713c1f843afb0a5600ab

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 person 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.''.

8f9d92bab8d2dc1498618f934addc74c8894134d1ffd9ed94a8218d4706b6187

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 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 assume
responsibility for compliance with the standard covered by the
documentation provided by an incomplete motor vehicle manufacturer, 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.''.

ae21bf67c5b98a19f45eccd16f1e8ded5e6a542a9227e1cb6e7828569ed45670

The Secretary of Transportation shall conduct a rulemaking to
revise and update the tire standards published at 49 CFR 571.109 and 49
CFR 571.119. The Secretary shall complete the rulemaking under this
section not later than June 1, 2002.

fc960f84f17deea1ad3cae57b05192fe5a043e4a1b35f1916edb90d85253a32d

(a) Tire Labeling.--Within 30 days after the date of the enactment
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.

cf9491de4295300ade466d76c42fa318f8a6f548145e46b2d3f806a5a28d7552

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 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 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 passenger
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.''.

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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.

465d4ba598425caacff0a2d3ada8f0f03ca35f209611728e22f14493bc8d1155

(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.
(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 standards
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
structural 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 Secretary
shall explain, in a report to the Senate Committee on Commerce,
Science, and Transportation and the House of Representatives Committee
on Commerce submitted within 30 days after issuing the final rule,
specifically why the Secretary did not incorporate 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 of
Transportation shall issue a notice of proposed rulemaking to establish
a child restraint safety rating consumer information program 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 subsection
(b)(7), not later than 12 months after the date of the enactment 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.

ba481b189cbf39d2328912ce503c349f63c845ee90416ea5cf1c6a1cb809049e

(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 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
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).

60a304ec90b7546243ab06d9aab87e1a402f025cdf131784f3d3eb307db73024

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.

b8daaff77c9e7dc7efa1f22bf44f5a3d5a6d201a6ddbcac925d03ee012264bcc

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 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.

9a075d92f071c2ad671f5f48f5113b2e4ab19c3ba9568addfe4fa58146eb7ced

Tire Recall bill — HR. 5164

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