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106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-954

======================================================================



 
 TRANSPORTATION RECALL ENHANCEMENT, ACCOUNTABILITY, AND DOCUMENTATION 
                              (TREAD) ACT

                                _______
                                

October 10, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                        [To accompany H.R. 5164]

  The Committee on Commerce, to whom was referred the bill 
(H.R. 5164) 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, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     7
Committee Consideration..........................................     8
Committee Votes..................................................     8
Committee Oversight Findings.....................................    11
Committee on Government Reform Oversight Findings................    12
New Budget Authority, Entitlement Authority, and Tax Expenditures    12
Committee Cost Estimate..........................................    12
Congressional Budget Office Estimate.............................    12
Federal Mandates Statement.......................................    12
Advisory Committee Statement.....................................    12
Constitutional Authority Statement...............................    12
Applicability to Legislative Branch..............................    12
Section-by-Section Analysis of the Legislation...................    13
Changes in Existing Law Made by the Bill, as Reported............    17

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

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 
        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 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; and
                          ``(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 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 permit 
                        such information to be reviewed and utilized; 
                        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 and 
                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 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 this subsection, 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 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. 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 follow:
  ``(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 
        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 grievous bodily harm 
        to an individual, shall be subject to criminal penalties 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 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 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.''.

SEC. 5. ACCELERATION OF MANUFACTURER 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.''.

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 prevent, to the extent reasonably within the 
control of the manufacturer, replaced tires from being resold for 
installation on a motor vehicle. The manufacturer shall include 
information 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 Equipment.--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 
otherwise 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 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.''.

SEC. 9. ENDURANCE AND RESISTANCE STANDARDS FOR TIRES.

  The Secretary of Transportation shall conduct a rulemaking 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 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 recall by the manufacturer. 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 to 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 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. 11. 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 
        enactment of this subsection, the Secretary of Transportation, 
        acting through the National Highway Traffic Safety 
        Administration, 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, acting through the National 
        Highway Traffic Safety Administration, shall conduct a 
        rulemaking to determine how best to disseminate test results to 
        the public.
          ``(3) Motor vehicles covered.--This subsection applies to 
        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.''.

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 warning system in a motor vehicle 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. 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, criteria, 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 Administration 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. 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 expenses of the 
Secretary or the Administration.

                          Purpose and Summary

    H.R. 5164, the Transportation Recall Enhancement, 
Accountability, and Documentation (TREAD) Act, is a bill to 
require reports concerning defects in motor vehicles or tires 
or other motor vehicle equipment, both domestically and in 
foreign countries.
    The bill requires that manufacturers report to the 
Secretary of Transportation regarding defects in foreign 
country, and certain other data. The legislation also lengthens 
the period in which a motor vehicle equipment or tire 
manufacturer must provide a defect remedy at no charge, 
strengthens the statute's civil penalty structure, imposes a 
criminal penalty for falsifying or withholding information, and 
requires the Secretary to update the motor vehicle safety 
standards applicable to tires and improve tire labeling 
standards. Further, the legislation addresses the availability 
of parts during a recall, reimbursement for parts replaced 
immediately prior to a recall, and the resale of replaced 
equipment. Finally, the legislation authorizes appropriations 
for the activities authorized by the bill and addresses a 
number of public information and standard setting rulemakings.

                  Background and Need for Legislation

    In 1990, Firestone began production of a specially-designed 
15-inch ATX tire to be used as original equipment on the Ford 
Explorer, introduced by Ford in model year 1991. This tire was 
also sold directly to consumers as replacement equipment, and 
was used as original equipment on several other Ford models. A 
redesigned version of the tire was introduced both in 1995 and 
1996, when the tire was renamed as the ATX II and the 
Wilderness.
    Beginning in 1996, Firestone began receiving large numbers 
of claims relating to the 15-inch version of these tires, most 
involving claims of alleged tread separation--where the tread 
and one steel belt separate from the other steel belt--a 
condition considered to be major tire failure. Beginning in 
mid-1997, Ford dealers in the Middle East began to report 
similar problems with the 16-inch tires. Testing conducted by 
Ford and Firestone led to limited recall actions in the Middle 
East, Venezuela, Malaysia, and Thailand in 1999 and the spring 
of 2000.
    In March 2000, the National Highway Traffic Safety 
Administration (NHTSA) opened an initial inquiry into this 
matter, based upon 25 complaints received in 1999 and 2000. A 
formal investigation was opened in May 2000, and is ongoing. In 
August, Firestone agreed to a voluntary recall of all 15-inch 
ATX and ATX II tires, and those Wilderness tires produced at a 
Firestone plant in Decatur, Illinois. NHTSA also recently 
encouraged Firestone to expand its voluntary recall to include 
Wilderness tires produced at other plants, although Firestone 
has only agreed to examine and replace those tires on a case-
by-case basis. For more information about the subcommittees' 
investigation and the chronology of events, please see the 
Committee Counsel's memorandum dated September 5, 2000 in 
preparation for the September 6, 2000 hearing on this matter.
    On September 6 and 21, 2000, the Subcommittee on 
Telecommunications, Trade, and Consumer Protection held a joint 
hearing with the Subcommittee on Oversight and Investigations 
into the Firestone recall actions. From these hearings, it was 
apparent that NHTSA's reaction to these matters was lacking in 
several respects.
    First, it is clear that the data available to NHTSA 
regarding the problems with the Firestone tires was 
insufficient. While testimony showed that the agency had 
received some complaints about the tires, both from consumers 
and from an automobile insurance company, they did not receive 
data about Ford's foreign recall actions or the internal 
company data on claims related to this data. Second, it is 
clear that NHTSA did not effectively use the data it did have 
in its possession to spot the trends related to the failure of 
these tires. NHTSA faced repeated questioning regarding its 
failure to act on information provided by a major automobile 
insurance carrier and admitted that it needs to review its own 
policies for evaluating its own data.
    The Committee believes that the provisions of this 
legislation are an initial step toward correcting these 
problems. The bill maintains the existing relationship between 
NHTSA and the regulated community, but the Committee believes 
that this measure will create important incentives for 
manufacturers and others with important information about 
possible defects to come forward early.

                                Hearings

    While the Committee on Commerce has not held hearings on 
the legislation, the Subcommittee on Telecommunications, Trade, 
and Consumer Protection and the Subcommittee on Oversight and 
Investigations heard the testimony of the Honorable Rodney T. 
Slater, Secretary of Transportation, regarding the 
Administration's legislative request at their joint hearing on 
the Ford/Firestone matter.

                        Committee Consideration

    On September 21 and 26, 2000, the Subcommittee on 
Telecommunications, Trade, and Consumer Protection met in open 
markup session and approved H.R. 5164 for Full Committee 
consideration, as amended by a record vote of 23 yeas and no 
nays. On October 5, 2000, the Full Committee met in open markup 
session and ordered H.R. 5164 favorably reported to the House, 
with an amendment, by a record vote of 42 yeas and no nays.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. A 
motion by Mr. Bliley to report the bill, with an amendment, was 
agreed to by a record vote of 42 yeas and no nays. The names of 
Members voting for and against follow.
    The following amendments were agreed to by a voice vote:

          An amendment in the nature of a substitute by Mr. 
        Tauzin, No. 1, making technical changes to the bill;
          An amendment to the amendment in the nature of a 
        substitute by Mr. Markey, No. 1a, requiring that the 
        Secretary develop and carry out a program for the 
        dynamic testing motor vehicles for rollovers for 
        purposes of a consumer information program;
          An amendment to the amendment in the nature of a 
        substitute by Mr. Bryant, No. 1b, regulating the sale 
        or lease of defective or noncompliant tires;
          An amendment to the amendment in the nature of a 
        substitute by Mr. Green, No. 1c, addressing certain 
        motor vehicle safety standard certifications by 
        intermediate or final stage manufacturers;
          An amendment to the amendment in the nature of a 
        substitute by Mr. Markey, No. 1e, addressing the 
        reporting of possible defects;
          An amendment to the amendment in the nature of a 
        substitute by Mr. Upton, No. 1f, making technical 
        changes;
          An amendment to the amendment in the nature of a 
        substitute by Mr. Bilbray, No. 1h, requiring that the 
        Secretary report to Congress on the effectiveness of 
        the bill;
          An amendment to the amendment in the nature of a 
        substitute by Mr. Markey, No. 1i, requiring the 
        Secretary to complete a rulemaking for a regulation to 
        require a warning system in a motor vehicle to indicate 
        to the operator when the tire is significantly 
        underinflated; and
          An amendment to the amendment in the nature of a 
        substitute by Mr. Bryant, No. 1j, requiring 
        manufacturers to include a plan as part of a remedy 
        program to prevent replaced tires from being resold.

    The following amendments were withdrawn:

          An amendment to the amendment in the nature of a 
        substitute by Mr. Shimkus, No. 1d, directing the 
        Secretary to improve child restraints; and
          An amendment to the amendment in the nature of a 
        substitute by Mr. Pallone, No. 1k, addressing the 
        disposal of replaced tires.

    The following amendment was not agreed to by a record vote 
of 14 yeas and 30 nays:

          An amendment to the amendment in the nature of a 
        substitute by Mr. Waxman, No. 1g, providing the 
        Secretary with administrative penalty authority.

    The names of Members voting for and against follow:
    
    
                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held oversight hearings 
and made findings that are reflected in this report.

           Committee on Government Reform Oversight Findings

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
5164, the Transportation Recall Enhancement, Accountability, 
and Documentation (TREAD) Act, would result in no new or 
increased budget authority, entitlement authority, or tax 
expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    The cost estimate provided by the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act 
of 1974 was not timely received by the Committee. The Committee 
will submit such cost estimate to the House when it is 
received.

                       Federal Mandates Statement

    The estimate of Federal mandates prepared by the Director 
of the Congressional Budget Office pursuant to section 423 of 
the Unfunded Mandates Reform Act was not timely received by the 
Committee. The Committee will transmit such estimate to the 
House when it is received by the Committee.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 provides the short title of the bill, the 
``Transportation Recall Enhancement, Accountability, and 
Documentation (TREAD) Act''.

Section 2. Reporting requirements

    Subsection (a) requires a manufacturer to notify NHTSA 
within five working days whenever the manufacturer determines 
to conduct a safety recall or other safety campaign in a 
foreign country with respect to motor vehicles and motor 
vehicle equipment that are identical or substantially similar 
to vehicles or equipment the manufacturer offers for sale in 
the United States. If a foreign government has officially made 
a determination that a safety recall or other safety campaign 
must be conducted within the country on a motor vehicle or 
motor vehicle equipment, then the manufacturer must notify 
NHTSA of such determination within five working days, where the 
manufacturer sells identical or similar vehicles or equipment 
in the United States. The Secretary is given regulatory 
authority to prescribe what information the manufacturer must 
provide in notifying NHTSA of the safety recall or campaign.
    Subsection (b) directs NHTSA to initiate a rulemaking 
within 120 days to establish early warning reporting 
requirements for manufacturers of motor vehicles and motor 
vehicle equipment to assist NHTSA in reducing traffic accidents 
and deaths and injuries resulting from traffic accidents. NHTSA 
must finalize its rule by June 20, 2002. The rule must include 
requirements for such manufacturers to report, periodically or 
upon request by NHTSA, information that the manufacturer has in 
its possession that would help identify defects in motor 
vehicle and motor vehicle equipment safety in the United 
States. Such reports are to be limited to claims data submitted 
to the manufacturer for serious injuries, aggregate statistical 
data possessed by the manufacturer on property damage from 
alleged vehicle or equipment defects, and information on the 
manufacturer's customer satisfaction campaigns, consumer 
advisories, recalls, and other programs for the repair or 
replacement of defective vehicles or equipment. NHTSA may 
include additional reporting requirements for manufacturers 
that it determines are necessary to identify defects related to 
vehicle and equipment safety in the United States.
    Manufacturers of motor vehicles and motor vehicle equipment 
are required to report to NHTSA any incidents of which the 
manufacturer receives actual notice involving serious injuries 
which are alleged to have been caused by a defect in the 
manufacturer's vehicle or equipment. If such injuries occur in 
a foreign country, then the manufacturer is required to report 
to NHTSA if the alleged defect is in a vehicle or equipment 
that is identical or substantially similar to that offered by 
the manufacturer for sale in the United States.
    Before requiring any reporting of the information addressed 
in this subsection, NHTSA must specify in its final rule how it 
will review and utilize such reports to help identify defects 
related to motor vehicle safety, what systems and processes it 
will employ or establish to review and utilize such 
information, and the manner and form in which manufacturers are 
required to report, including by electronic reporting. NHTSA 
may not require manufacturers of motor vehicles or motor 
vehicle equipment to maintain or submit records not in the 
manufacturer's possession. In addition, NHTSA may not impose 
requirements that are unduly burdensome to a manufacturer, 
taking into account the manufacturer's cost of complying with 
such requirements and NHTSA's ability to use the information it 
seeks in a meaningful manner to help identify motor vehicle 
safety defects. NHTSA must specify procedures for periodically 
reviewing and updating its information reporting requirements 
under this subsection.
    Subsection (c) directs NHTSA, within 90 days, to issue a 
rule requiring any person who knowingly and willfully sells or 
leases a defective or noncompliant tire for use on a motor 
vehicle to report such sale or lease to the Secretary if the 
person has actual knowledge that the manufacturer has notified 
its dealers of such defect or noncompliance as required under 
the recall provisions of subsections 30118(b) and (c) of title 
49 of the United States Code. The Committee intends the phrase 
``knowingly and willfully'', in all uses throughout this Act, 
to represent the common and traditional meaning of those words 
involving actual knowledge and willful action, as opposed to 
including any facet of reckless disregard. A person will not be 
required to report such sale if the defect or noncompliance is 
remedied before the sale or lease, or if the recall order is 
restrained or set aside in a civil action described in section 
30121(d) of Title 49 of the United States Code.
    Subsection (d) directs NHTSA to conduct a study within 120 
days to determine whether it is feasible and useful for 
Congress to authorize NHTSA to obtain aggregate information 
from automobile insurers regarding motor vehicle accident 
claims.

Section 3. Remedies without charge

    This section lengthens the time period that consumers are 
able to have a defective or noncompliant motor vehicle or motor 
vehicle equipment remedied free of charge, measured from the 
time of the first sale to the determination by the manufacturer 
or NHTSA of such noncompliance or defect. For motor vehicles 
and replacement equipment other than tires, the time period 
from the first purchaser has been extended from eight to ten 
years, and for tires the period has been extended from three 
years to five years.

Section 4. Penalties

    Subsection (a) increases the civil penalties that NHTSA may 
assess for violations of certain provisions of title 49 of the 
United States Code from $1,000 for each violation to $5,000 for 
each violation, and from a maximum of $800,000 for a related 
series of violations to $15,000,000. New civil penalties are 
imposed for violating any of NHTSA's reporting requirements 
under section 30166 of title 49 of the United States Code, with 
maximum penalties of $5,000 per violation per day, with a 
maximum of $15,000,000 for a related series of daily 
violations.
    Subsection (b) imposes additional criminal penalties for 
egregious violations of the reporting requirements of section 
30166. Under current law, section 1001 of title 18 of the 
United States Code, it is a crime punishable by up to five 
years in jail and by fines (up to $250,000 for individuals and 
$500,000 for corporations) for any person to knowingly and 
willfully falsify, conceal, cover up by any trick, scheme, or 
device a material fact, make any materially false, fictitious, 
or fraudulent statement or representation, or make or use any 
false writing or document knowing the same to contain any 
materially false, fictitious, or fraudulent statement or entry. 
If a person in fact so acts, with the specific intention of 
misleading NHTSA with respect to motor vehicle or motor vehicle 
safety related defects that have caused death or grievous 
bodily harm to an individual, then that person is subject to 
criminal penalties as set forth under title 18, or imprisonment 
for not more than 15 years (10 years more than the maximum 
under section 1001 of title 18), or both. The Committee does 
not believe that the knowingly and willful requirement of 
section 1001 of title 18 could or should be construed to 
include reckless disregard. A safe harbor is provided from the 
additional criminal penalties where a person corrects any 
improper reports or failure to report within a reasonable time. 
NHTSA is directed to establish by regulation within 90 days 
what constitutes a reasonable time and what form of correction 
or reporting is sufficient to come within the coverage of the 
safe harbor. The Committee expects that NHTSA will construe a 
reasonable time to be at some point after the person is aware 
that a defect or noncompliance related to the falsified or 
concealed information exists and that the defect or 
noncompliance has caused serious bodily injury. The additional 
criminal penalties established by this subsection will not take 
effect until after NHTSA issues a final rule (within 90 days) 
establishing what constitutes a reasonable time and a 
reasonable manner for correction of misreported information. 
The additional criminal penalties will be charged against a 
person by the Attorney General only after a request by NHTSA.

Section 5. Acceleration of manufacturer remedy program

    This section allows NHTSA to require a manufacturer to 
accelerate a remedy program if NHTSA determines that a 
manufacturer's remedy program will not be completed within a 
reasonable time, that a serious injury is likely to result if 
the program is not accelerated, and that acceleration of the 
program can be reasonably achieved by expanding the sources of 
replacement parts, expanding the number of authorized repair 
facilities, or both.

Section 6. Sale of replaced tires

    The manufacturer of a tire that is the subject of a recall 
for a defect or noncompliance will include in its remedy 
program a plan for ensuring that any replaced tires are not 
resold for installation on a motor vehicle (unless remedied), 
to the extent that the manufacturer can reasonably control such 
resales. The manufacturer must, in its regular reports to 
NHTSA, include information in the reports about its 
implementation of such plan.

Section 7. Sales of replaced equipment

    This section makes it illegal to sell for installation on a 
motor vehicle any motor vehicle equipment (including a tire) 
that is the continued subject of a recall program. Such sale is 
allowed only if the equipment is not sold in a condition that 
it may be used for its original purpose, unless the equipment 
is made no longer defective or noncompliant, such as by 
modification, repair, or an injunction of the recall.

Section 8. Certification label

    Current law requires a manufacturer or distributor of a 
motor vehicle or motor vehicle equipment to certify with a 
label fixed to a vehicle or attached to a container of motor 
vehicle equipment that the vehicle or equipment complies with 
applicable Federal vehicle safety standards. This section 
requires an intermediate or final stage manufacturer of a motor 
vehicle built in more than 1 stage to certify with respect to 
such standards that it has either assumed responsibility for 
compliance with the standards, or that it has complied with the 
specifications set forth in the compliance documentation 
provided by the incomplete motor vehicle manufacturer. If the 
intermediate or final stage manufacturer chooses to assume 
responsibility for compliance with the standard covered by the 
documentation provided by an incomplete manufacturer, then the 
manufacturer must notify such incomplete manufacturer within a 
reasonable time of affixing the certification label. This 
provision will not be subject to civil penalties by NHTSA.

Section 9. Endurance and resistance standards for tires

    NHTSA is directed to complete a rulemaking to revise and 
update its tire standards by June 1, 2002.

Section 10. Improved tire information

    Within 30 days, NHTSA will begin a rulemaking to improve 
the labeling of tires to help consumers identify whether such 
tires are the subject of a recall. NHTSA is directed to 
complete its rulemaking by June 1, 2002. The rulemaking will 
also include whatever action the Secretary determines is 
necessary to make the public aware of the importance of 
observing motor vehicle tire load limits and maintaining proper 
tire inflation levels to ensure the safe operation of motor 
vehicles. Such action may include a requirement that the 
manufacturer provide consumers with information on appropriate 
tire inflation levels and load limits if the Secretary 
determines that requiring the manufacturers to provide such 
information is the most efficient way to educate consumers.

Section 11. Rollover tests

    Within two years, NHTSA must develop a dynamic test on 
motor vehicle rollovers for the purposes of a consumer 
information program and must carry out a program of conducting 
such tests. NHTSA must also conduct a rulemaking to determine 
how to best disseminate the results of such tests to the 
public. The rollover tests must be designed for new motor 
vehicles, including passenger cars and multipurpose passenger 
vehicles, and trucks, that have a gross vehicle weight rating 
of 10,000 pounds or less. The tests will not be applied to 
motor-homes.

Section 12. Tire pressure warning

    Within one year, NHTSA must complete a rule to require 
within two years that newly manufactured motor vehicles to 
contain a warning system that signals to the vehicle operator 
when a tire is significantly under-inflated.

Section 13. Improving criteria used in a recall

    Within 30 days, the Secretary of Transportation is directed 
to undertake a comprehensive review of, and undertake any 
necessary steps to improve, all standards, criteria, 
procedures, and methods, including data management and 
analysis, used by NHTSA in determining whether to open a defect 
or noncompliance investigation. The Secretary must report to 
Congress on its findings and actions undertaken after such 
review.

Section 14. Follow-up report

    NHTSA must report to Congress within one year on the 
implementation of this Act, as well as any additional 
recommendations for consumer safety.

Section 15. Authorization of appropriations

    An additional $9.1 million is authorized to be appropriated 
for the Secretary and NHTSA to carry out this Act, although 
such funds are not to be used for general administrative 
expenses of the Secretary or NHTSA.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                     TITLE 49, UNITED STATES CODE

           *       *       *       *       *       *       *



            SUBTITLE VI--MOTOR VEHICLE AND DRIVER PROGRAMS

           *       *       *       *       *       *       *


                            PART A--GENERAL

                   CHAPTER 301--MOTOR VEHICLE SAFETY

           *       *       *       *       *       *       *



              SUBCHAPTER IV--ENFORCEMENT AND ADMINISTRATIVE

30161.  Judicial review of standards.
     * * * * * * *
30170.  Criminal penalties.
     * * * * * * *

               SUBCHAPTER II--STANDARDS AND COMPLIANCE

           *       *       *       *       *       *       *


Sec. 30112. Prohibitions on manufacturing, selling, and importing 
                    noncomplying motor vehicles and equipment

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Prohibition on Sales of Replaced Equipment.--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 otherwise free of the condition that was the subject of the 
action taken under section 30120(a) or 30120(b).

           *       *       *       *       *       *       *


Sec. 30115. Certification of compliance

  (a) In General.--A manufacturer or distributor of a motor 
vehicle or motor vehicle equipment shall certify to the 
distributor or dealer at delivery that the vehicle or equipment 
complies with applicable motor vehicle safety standards 
prescribed under this chapter. A person may not issue the 
certificate if, in exercising reasonable care, the person has 
reason to know the certificate is false or misleading in a 
material respect. Certification of a vehicle must be shown by a 
label or tag permanently fixed to the vehicle. Certification of 
equipment may be shown by a label or tag on the equipment or on 
the outside of the container in which the equipment is 
delivered.
  (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.

           *       *       *       *       *       *       *


Sec. 30117. Providing information to, and maintaining records on, 
                    purchasers

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Rollover Tests.--
          (1) Development.--Not later than 2 years from the 
        date of enactment of this subsection, the Secretary of 
        Transportation, acting through the National Highway 
        Traffic Safety Administration, 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, acting through 
        the National Highway Traffic Safety Administration, 
        shall conduct a rulemaking to determine how best to 
        disseminate test results to the public.
          (3) Motor vehicles covered.--This subsection applies 
        to 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.

           *       *       *       *       *       *       *


Sec. 30120. Remedies for defects and noncompliance

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Adequacy of Repairs.--(1)  * * *

           *       *       *       *       *       *       *

  (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.
  (d) Filing Manufacturer's Remedy Program.--A manufacturer 
shall file with the Secretary a copy of the manufacturer's 
program under this section for remedying a defect or 
noncompliance. The Secretary shall make the program available 
to the public and publish a notice of availability in the 
Federal Register. 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. The manufacturer shall 
include information about the implementation of such plan with 
each quarterly report to the Secretary about the progress about 
the notification and remedy campaign.

           *       *       *       *       *       *       *

  (g) Nonapplication.--(1) The requirement that a remedy be 
provided without charge does not apply if the motor vehicle or 
replacement equipment was bought by the first purchaser more 
than [8] 10 calendar years, or the tire, including an original 
equipment tire, was bought by the first purchaser more than [3] 
5 calendar years, before notice is given under section 30118(c) 
of this title or an order is issued under section 30118(b) of 
this title, whichever is earlier.

           *       *       *       *       *       *       *


             SUBCHAPTER IV--ENFORCEMENT AND ADMINISTRATIVE

           *       *       *       *       *       *       *


Sec. 30165. Civil penalty

  [(a) Penalty.--A person that violates any of sections 30112, 
30115, 30117-30122, 30123(d), 30125(c), 30127, 30141-30147, or 
30166 of this title or a regulation prescribed under any of 
those sections is liable to the United States Government for a 
civil penalty of not more than $1,000 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 $800,000.]
  (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 
        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.

           *       *       *       *       *       *       *


Sec. 30166. Inspections, investigations, and records

  (a)  * * *

           *       *       *       *       *       *       *

  (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.
  (m) Early Warning Reporting Requirements.--
          (1) Rulemaking required.--Not later than 120 days 
        after the date of 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; and
                          (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 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 
                        permit such information to be reviewed 
                        and utilized; 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 and 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 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.
  (n) Sale or Lease of Defective or Noncompliant 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 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.

           *       *       *       *       *       *       *


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 grievous bodily harm to an 
        individual, shall be subject to criminal penalties 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 
                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 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.

           *       *       *       *       *       *       *