[Senate Report 106-423]
[From the U.S. Government Publishing Office]
Calendar No. 839
106th Congress Report
SENATE
2d Session 106-423
_______________________________________________________________________
MOTOR VEHICLE AND MOTOR VEHICLE EQUIPMENT DEFECT NOTIFICATION
IMPROVEMENT ACT
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 3059
September 27 (legislative day, September 22), 2000.--Ordered to be
printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred sixth congress
second session
JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington JOHN D. ROCKEFELLER IV, West
TRENT LOTT, Mississippi Virginia
KAY BAILEY HUTCHISON, Texas JOHN F. KERRY, Massachusetts
OLYMPIA SNOWE, Maine JOHN B. BREAUX, Louisiana
JOHN ASHCROFT, Missouri RICHARD H. BRYAN, Nevada
BILL FRIST, Tennessee BYRON L. DORGAN, North Dakota
SPENCER ABRAHAM, Michigan RON WYDEN, Oregon
SAM BROWNBACK, Kansas MAX CLELAND, Georgia
Mark Buse, Staff Director
Ann H. Choiniere, General Counsel
Kevin D. Kayes, Democratic Staff Director
Moses Boyd, Democratic Chief Counsel
Gregg Elias, Democratic General Counsel
Calendar No. 839
106th Congress Report
SENATE
2d Session 106-423
======================================================================
MOTOR VEHICLE AND MOTOR VEHICLE EQUIPMENT DEFECT NOTIFICATION
IMPROVEMENT ACT
_______
September 27 (legislative day, September 22), 2000.--Ordered to be
printed
_______
Mr. McCain, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 3059]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 3059) ``A Bill to amend title
49, United States Code, to require motor vehicle manufacturers
and motor vehicle equipment manufacturers to obtain information
and maintain records about potential safety defects in their
foreign products that may affect the safety of vehicles and
equipment in the United States, and for other purposes'',
having considered the same, reports favorably thereon with an
amendment (in the nature of a substitute) and recommends that
the bill (as amended) do pass.
Background and Needs
The recent events regarding the recall of Bridgestone
Firestone (Firestone) Tires due to problems with tread
separations has highlighted serious deficiencies with the
ability of the Department of Transportation to adequately
detect and investigate safety-related defects in motor vehicles
and motor vehicle equipment. In response to the deficiencies
highlighted by this incident, the Committee seeks to improve
and strengthen the Secretary's ability to detect and
investigate defects.
On February 7, 2000, a Houston television station (KHOU)
aired an exclusive report describing fatal motor vehicle
accidents involving tread separations from certain Firestone
tires. Prompted by evidence linking four deaths to the tires at
issue, on May 2, the National Highway Traffic Safety
Administration (NHTSA) commenced an investigation of the
Firestone ATX, ATXII, and Wilderness AT tires manufactured by
Firestone and used primarily as original equipment on Ford
Explorers.
On August 9, after meetings with NHTSA and Ford, Firestone
announced the recall of 14.4 million of the tires under
investigation. The recall included all Firestone ATX and ATXII
tires of the P235/75R15 size manufactured since 1991, and all
Wilderness AT tires of the same size manufactured by Firestone
at its plant in Decatur, Illinois. At the time of the August 9
recall announcement, Firestone estimated that 6.5 million of
these tires were still in service.
According to NHTSA, most of the injuries and fatalities
caused by Firestone tire failures have occurred in warm-weather
climates, such as Texas (88 injuries and 29 fatalities),
Arizona (22 injuries and 6 fatalities), Louisiana (7 injuries),
Nevada (5 injuries and 1 fatality), Georgia (3 injuries and 1
fatality), and Tennessee (1 injury and 1 fatality).
During a September 12, 2000, hearing held by this Committee
regarding the tire recall, members of the Committee questioned
NHTSA and manufacturers regarding the ongoing recall and
potential reforms to prevent the recurrence of a similar
safety-related situation. The Committee further discussed
NHTSA's preparedness for handling information that contains
early-warning signs of safety-related defects of motor vehicles
in the field. The witnesses and members of the Committee
expressed concern about the effectiveness and efficiency of
NHTSA's process of gathering and analyzing data pertaining to
vehicle defects, initiating investigations, and issuing
recalls. Finally, the Committee discussed NHTSA's failure to
update its safety standards, specifically the Federal Motor
Vehicle Safety Standards (FMVSS) for tires.
The circumstances surrounding the Ford and Firestone recall
demonstrate several flaws in the current law. For example,
NHTSA is not notified of recalls or safety-related actions
taken in foreign markets that involve products sold in the
United States. Ford replaced Firestone tires in 16 foreign
countries beginning in August, 1999, but no notice was given,
or required to be given, to NHTSA. If a similar action had
taken place in the United States, the companies involved would
have been required to report such actions to NHTSA under 49
U.S.C. 30166(f).
The Committee also heard testimony that, under the current
system, NHTSA does not require manufacturers to report
information relevant to defects that may indicate a safety
problem with vehicles. For example, NHTSA does not collect
claims data that may serve as an early indicator of a problem.
As early as 1996, personal injury and property damage claims
and lawsuits involving the recalled Firestone tires began to
increase significantly and should have served notice that
Firestone had a problem with the tires in question. A June 24,
1998, report, which was provided to the Committee by Firestone,
outlined 1997 claims demonstrating that the number of warranty
claims on ATXII tires had jumped to 279 in 1997 from 42 in
1995, more than a six-fold increase.
During the hearing, the witnesses were questioned by members
of the Committee concerning changes to the Federal Motor
Vehicle Safety Act that would help NHTSA detect defects in a
timely manner and respond effectively. Jacques Nasser,
President and Chief Executive Officer of Ford, agreed to
several reforms including requiring manufacturers to notify
NHTSA of recalls in foreign countries involving motor vehicles
and motor vehicle equipment sold and used in the United States;
extension of the 5-year-record retention period; lengthening
the statute of limitations period on reporting defects and
recalls, and the need to require manufacturers to report
lawsuits in which they are a defendant.
The witnesses were also asked about increased civil and
criminal penalties. Under current law, the maximum civil
penalty for a related series of violations is merely $980,000
and no criminal penalties exist. The Secretary of the
Department of Transportation, the Administrator of NHTSA,
Jacques Nasser, and consumer groups such as Public Citizen and
the Center for Auto Safety, all agree that civil penalties
should be increased and that criminal penalties should be
imposed in cases of particularly egregious acts.
Civil and criminal penalties are not uncommon for safety-
related Federal statutes. The Consumer Product Safety Act (15
U.S.C. 2070) provides criminal penalties for a variety of
violations of the Act including failing to manufacture a
product in conformity with the Consumer Product Safety
Commission standards. The Water Pollution Prevention and
Control Act (33 U.S.C. 1319) provides criminal penalties for
knowingly placing another person in imminent danger of death or
serious bodily injury. Both a civil and a criminal penalty of
imprisonment for a period of not more than 15 years is included
as well. See also 29 U.S.C. 666 (Occupational Safety and Health
Act) and 15 U.S.C. 1264 (Federal Hazardous Substances Act).
Also contained within analogous agency statutes are maximum
civil penalties with added discretionary authority granted to
the Secretary to evaluate whether a violation of the statute is
so egregious as to require a larger penalty. For example,
pursuant to section 7413 of the Clean Air Act, the
Administrator for the Environmental Protection Agency (EPA) may
issue an administrative order for any person assessing a civil
administrative penalty of up to $25,000 per day of violation,
not to exceed $200,000, unless the Administrator and the
Attorney General jointly determine that a matter involving a
larger penalty is appropriate. See also 42 U.S.C. 7524.
Legislative History
In the wake of the hearing, S. 3059 was introduced on
September 15, 2000, by Chairman McCain, Senators Gorton and
Specter. The Committee addressed S. 3059 as part of its
September 20, 2000, executive session. During the session,
Chairman McCain and Senator Hollings offered a substitute
amendment, which was approved unanimously by voice vote.
Estimated Costs
In accordance with paragraph 11(a)(3) of rule XXVI of the
Standing Rules of the Senate, the Committee states that, in its
opinion, it is necessary to dispense with the requirements of
subsection (a)(1) of that paragraph in order to expedite the
business of the Senate.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
number of persons covered
The legislation would apply to: (1) manufacturers of motor
vehicles or motor vehicle equipment that are incorporated
within or with their principal place of business in the United
States and/or persons with their principal place of business in
a foreign country, including their direct or indirect domestic
and foreign subsidiaries and affiliates, any of which export
vehicles or equipment to the United States. Also includes a
person with its principal place of business in a foreign
country, including its direct or indirect domestic and foreign
subsidiaries and affiliates, any of which manufacturers or
assembles vehicles or equipment in the United States; (2)
dealers and distributors of manufacturers of motor vehicles or
motor vehicle equipment within or outside of the United States;
(3) insurers of motor vehicles or motor vehicle equipment of a
``manufacturer'' as defined above; and (4) persons who operate
motor vehicles as school buses or who lease or operate
commercial passenger vehicles for the purpose of compensation.
economic impact
This legislation would affect the nation's economy to the
extent that it requires, for specific kinds of information,
persons covered under the Act to collect, retain, and report
safety-related information regarding motor vehicles or motor
vehicle equipment. Additional safety-related information may be
required by the Secretary of Transportation as a result of his
or her authorized rulemaking authority, the economic impact of
which cannot be defined until the rulemaking concludes.
Furthermore, this legislation includes authorization to the
Secretary to halt the operation of school buses or commercial
passenger vehicles used for compensation should the Secretary
identify the existence of an imminent hazard to passenger
safety. The economic impact of this authorization would be
minimal.
privacy and paperwork
The impact on the personal privacy of the persons covered by
this legislation is difficult to define prior to the completion
of the Secretary of Transportation's rulemaking proceedings
authorized under the Act. The outcome of these rulemaking
proceedings will also determine whether burdensome paperwork
requirements will be necessary.
Summary of Major Provisions
Enhances international cooperation with respect to
motor vehicle safety and extends manufacturer notification
requirements to include overseas actions involving equipment
and vehicles sold in the United States.
Directs the Secretary to collect additional
information from manufacturers. Specifically, it would mandate
that the Secretary require manufacturers to collect and report
information related to motor vehicle accidents or incidents,
claims data, warranty adjustment data, and other safety-related
information. The method, manner and extent of the collection of
this data would be determined through rulemaking by the
Secretary.
Increases the Motor Vehicle Safety Act's civil
penalties from $1,000 to $5,000 for each violation and the
maximum penalty from $800,000 to $15,000,000, with the ability
to assess larger civil penalties for willful and intentional
acts.
Establishes criminal penalties for knowingly
violating provisions of the Motor Vehicle Safety Act, which
relate to compliance with Federal Motor Vehicle Safety
Standards (FMVSS) and notification of defects where the
violation results in a death or substantial injury.
Specifically, the bill would allow criminal penalties when a
manufacturer knowingly places into the stream of commerce a
vehicle that fails to meet a FMVSS or if the manufacturer
becomes aware of a defect and fails to report and a death or
injury results. The bill would allow for imprisonment of up to
5 years when the violation results in serious bodily injury,
and 15 years for violations causing death.
Requires NHTSA to upgrade the tire-safety standard
for the first time in 30 years.
Increases the time period during which manufacturers
of motor vehicle equipment and tires are required to remedy
safety-related defects without charge.
Requires NHTSA to improve sidewall markings on tires
to help consumers understand load limits and appropriate tire
inflation levels.
Allows the Secretary to halt the operation of school
buses or commercial passenger vehicles if the Secretary
determines that continued operation of the vehicle with the
defect presents an imminent hazard to passengers.
Section-by-Section Analysis
Section 1. Short title
Section 1 of the bill identifies the Act as the ``Motor
Vehicle and Motor Vehicle Equipment Defect Notification
Improvement Act.''
Section 2. Improved international cooperation concerning safety-related
defects
Section 2 of the bill seeks to enhance the National Highway
Traffic Safety Administration's ability to cooperate with
similar safety agencies in foreign countries. The provision
adds section 30106 to chapter 301 of title 49, United States
Code.
Section 30106(a) of title 49, United States Code, would
permit the Secretary to cooperate with foreign transportation
authorities to ``enhance motor vehicle and traffic safety by
exchanging information with those authorities'' concerning
safety defects and noncompliance with safety standards.
Section 30106(b) of title 49, United States Code, would
authorize the Secretary to disclose confidential commercial
information to foreign governmental safety agencies if certain
conditions are met. The Secretary must determine that the
disclosure would be ``in the interest of improved motor vehicle
safety'' and the foreign governmental agency must indicate in
writing that it has the authority to protect from public
disclosure ``confidential commercial information'' and then
pledge to keep the information confidential. That foreign
governmental agency may make the information public if it
obtains written permission from the entity to whom the
information relates or NHTSA indicates in writing that the
information has ceased to qualify as confidential commercial
information under the law of the United States.
Section 30106(c) of title 49, United States Code, would
authorize the Secretary to disclose to similar foreign
governmental agencies ``nonpublic, pre-decisional documents
concerning regulations or other regulatory requirements,'' or
other ``nonpublic information relevant to agency activities.''
These disclosures would require the Secretary to obtain the
same written statements and commitments by the foreign
governmental agency as is demanded by subsection (b).
Section 30106(d) of title 49, United States Code, provides
assurance that the simple transmittal of information as
authorized by this section does not require that the
information be disclosed to the public under section 552 of
title 5, United States Code, the Freedom of Information Act
(FOIA).
Section 3. International agreement for recalls of motor vehicles or
motor vehicle parts
Section 3(a) of the bill would authorize and request the
President to initiate negotiations, within 60 days of the
enactment of this Act, for an international agreement governing
the recall by manufacturers of motor vehicles or motor vehicle
equipment with safety-related defects. This provision prohibits
any such agreement from entering into force in the United
States without ratification by the United States Senate.
Section 3(b) of the bill indicates that the purpose of the
international agreement would be to foster ``global
transparency'' with regard to recalls of motor vehicles or
motor vehicle equipment to promote ``consumer safety and to
enhance consumer confidence.''
Section 3(c) of the bill identifies the provisions that
should be incorporated into a negotiated agreement. Those
provisions would encourage nations that are signatories to
identify a responsible governmental authority for recalls,
foster communication, and establish a website in each nation to
convey information about recalls.
Section 3(d) of the bill identifies various guidelines for
manufacturers that engage in exporting motor vehicles or motor
vehicle equipment or the international trade of motor vehicles
or manufacturing motor vehicle equipment for inclusion in motor
vehicles to be exported. This subsection contains provisions
that would require such manufacturers to report relevant
information regarding any recall in the country in which it
initiates the recall and share recall information with foreign
countries that request it.
Section 3(e) of the bill would require the Secretary, acting
as competent authority, to coordinate with the Department of
State, the Office of the United States Trade Representative,
and the NHTSA, to establish an official website on the Internet
that would provide information involving recalls of motor
vehicles or motor vehicle equipment. This website would operate
until an international Internet database can be launched. This
subsection also would require the Secretary to coordinate with
United States embassies and consular offices abroad to
establish procedures to obtain information regarding recalls.
Section 3(f) of the bill ensures that no FMVSS or any other
provision of law would be weakened by the international
agreements authorized under this section.
Section 4. Defect and noncompliance notification for oem equipment
Section 4 of the bill would amend section 30118 of title 49,
United States Code, by striking ``motor vehicle or replacement
equipment'' in subsections (a), (b), and (c) of section 30118
and inserting ``motor vehicle, original equipment, or
replacement equipment.''
Section 5. Extension of time for no-charge remedies
Section 5 of the bill would lengthen the period of time for
no-charge remedies from 8 years to 10 for automobiles and from
3 years to 5 for tires.
Section 6. Enhanced information reporting
Section 6 of the bill amends section 30118 of title 49,
United States Code, by inserting a new subsection (d).
Section 30118(d) of title 49, United States Code, would
require the Secretary to initiate a rulemaking, within 120 days
of this Act, to establish increased reporting and record
retention requirements for manufacturers of motor vehicles or
motor vehicle equipment. This subsection mandates that the
Secretary require manufacturers to ``collect and report to the
Secretary periodically, or upon request by the Secretary,''
``accidents or incidents, or trends or patterns of accidents or
incidents'' involving motor vehicles or motor vehicle
equipment, ``[a]ny 3 or more lawsuits in which the manufacturer
is a defendant involving a substantially similar, alleged
defect,'' all information relating to recalls, and warranty
adjustment data received by the manufacturer. This subsection
would authorize the Secretary to consider requiring the
collection and reporting by manufacturers of any other safety-
related information deemed necessary. This subsection would
also authorize the Secretary to initiate a rulemaking to
establish ``enhanced aggregate information reporting
requirements'' for insurance companies.
Section 7. School buses
Section 7 of the bill would amend section 30125 of title 49,
United States Code, to include subsection (d), which authorizes
the Secretary to order any person that operates a school bus to
halt operation should the Secretary determine that there exists
a ``defect or noncompliance that presents an imminent hazard to
passenger safety if the school bus continues operation before
the defect or noncompliance is remedied.''
Section 8. Commercial passenger vehicles
Section 8 of the bill would add a new section to chapter 301
of title 49, United States Code.
Section 30128 of title 49, United States Code, would
authorize the Secretary to order ``any person that operates a
motor vehicle used to transport passengers for compensation to
suspend operation'' should the Secretary determine that there
exists a ``defect or noncompliance that presents an imminent
hazard to passenger safety if the vehicle continues such
operation before the defect or noncompliance is remedied.''
Section 9. Penalties
Section 9(a) of the bill would amend section 30165(a) of
title 49, United States Code, to increase the Motor Vehicle
Safety chapter's per-violation civil penalty from $1,000 to
$5,000 per day and the maximum penalty from $800,000 to
$15,000,000. This section also would authorize the Secretary to
assess larger civil penalties for intentional and willful acts.
Section 9(b) of the bill would add a new section to chapter
301 of title 49, United States Code.
Section 30170(a) of title 49, United States Code, would make
it unlawful for a director, officer, or agent of a manufacturer
to introduce into interstate commerce a motor vehicle or motor
vehicle equipment if that person knew of a defect or
noncompliance, the defect or noncompliance ``created an
imminent or serious danger of death or grievous bodily harm,''
and the defect or noncompliance caused death or grievous bodily
harm.
Section 30170(b) of title 49, United States Code, would
establish maximum penalties of a fine of $10,000 and 5 years
imprisonment for causing grievous bodily harm and a fine of
$50,000 and 15 years in prison for causing death.
Section 30170(c) of title 49, United States Code, would
authorize the United States Attorney to initiate an action or
grand jury proceedings for the violation of subsection (a).
Section 10. Records and reports
Section 10(a) of the bill would amend section 30166(e) of
title 49, United States Code.
Section 30166(e) of title 49, United States Code, would
authorize the Secretary to initiate a rulemaking to require a
manufacturer of a motor vehicle or motor vehicle equipment to
retain records, and a manufacturer, distributor, or dealer to
make reports, so that the Secretary may determine whether the
manufacturer, distributor, or dealer is complying with chapter
301 of title 49, United States Code.
Section 10(b) of the bill would amend section 30166(a) of
title 49, United States Code.
Section 30166(a) of title 49, United States Code, would
provide that, for the purposes of section 30166 the following
definitions, rather than those in section 30102 of title 49,
United States Code, apply:
(1) ``Motor Vehicle Accident'' is defined as an
occurrence associated with the maintenance or operation
of a motor vehicle equipment resulting in personal
injury, death, or property damage.
(2) ``Dealer'' means a seller or distributor of new
motor vehicles or equipment within or outside the
United States to purchasers who purchase for reasons
other than resale.
(3) ``Distributor'' means a person primarily selling
and distributing motor vehicles or equipment within or
outside the United States for resale.
(4) ``Manufacturer'' means a person (i) manufacturing
or assembling motor vehicles or equipment, or (ii)
importing vehicles or equipment for resale. The
definition includes a person incorporated within or
with its principal place of business in the United
States and/or a person with its principal place of
business in a foreign country, including its direct or
indirect domestic and foreign subsidiaries and
affiliates, any of which export vehicles or equipment
to the United States. It also includes a person with
its principal place of business in a foreign country,
including its direct or indirect domestic and foreign
subsidiaries and affiliates, any of which manufactures
or assembles vehicles or equipment in the United
States.
(5) ``Owner'' means an owner within or outside the
United States.
(6) ``Purchaser'' means a purchaser within or outside
the United States.
(7) ``Person'' means any manufacturer, distributor,
or dealer and any other person within the United States
that may have information related to chapter 301 of
title 49, United States Code.
Section 10(c) of the bill would make the amendments made by
this section effective 180 days after enactment of the Act.
Section 11. Increase in odometer penalties
Section 11(a) of the bill would amend section 32709(a)(1) of
title 49, United States Code, to increase the civil penalty for
violation of chapter 301 of title 49, United States Code, from
$2,000 to $5,000 and the maximum civil penalty from $100,000 to
1,000,000.
Section 11(b) of the bill would amend section 32710(a) of
title 49, United States Code, to increase the maximum private
action damage award for violations of chapter 301 of title 49,
United States Code, from $1,500 to $10,000.
Section 12. Revised tire safety standards
Section 12 of the bill would authorize the Secretary within
30 days of the enactment of the Act to initiate a rulemaking
proceeding to review and revise the FMVSS for pneumatic tires
prescribed under chapter 301 of title 49, United States Code,
and to complete the rulemaking no later than June 1, 2001.
Section 13. Improved tire sidewall markings
Section 13 of the bill would authorize the Secretary within
30 days of the enactment of the Act to initiate a rulemaking
proceeding to improve the labeling of tires required by section
30123 of title 49, United States Code, to facilitate improved
public understanding of load limits and appropriate tire
inflation levels.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, 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 material is printed
in italic, existing law in which no change is proposed is shown
in roman):
TITLE 49. TRANSPORTATION
SUBTITLE VI. MOTOR VEHICLE AND DRIVER PROGRAMS
PART A. GENERAL
CHAPTER 301
[Sec. 30104. Authorization of appropriations
[There is authorized to be appropriated to the Secretary
$98,313,500 for the National Highway Traffic Safety
Administration to carry out this part in each fiscal year
beginning in fiscal year 1999 and ending in fiscal year 2001.]
Sec. 30104. Authorization of appropriations
There are authorized to be appropriated to the Secretary of
Transportation, out of the Highway Account of the Highway Trust
fund, $115,954,000 for the National Highway Traffic Safety
Administration to carry out this chapter in fiscal year 2001.
* * * * * * *
Sec. 30106. International cooperation
(a) In General.--The Secretary of Transportation may
cooperate with the transportation authorities of foreign
countries to enhance motor vehicle and traffic safety by
exchanging information with those authorities related to motor
vehicle and motor vehicle equipment safety defects, and
noncompliance with motor vehicle safety and motor vehicle
equipment standards and enforcement of regulations.
(b) Confidential Information.--The Secretary may authorize
the disclosure of confidential commercial information submitted
to the National Highway Traffic Safety Administration, or
incorporated in agency-prepared records, to a foreign
governmental agency that performs functions similar to those
performed by the National Highway Traffic Safety Administration
as part of cooperative law enforcement or regulatory
enforcement efforts if--
(1) the Secretary determines that disclosure would be
in the interest of improved motor vehicle safety; and
(2) the foreign governmental agency provides a
statement in writing to the Secretary that--
(A) establishes the foreign governmental
agency's authority to protect confidential
commercial information from public disclosure;
and
(B) commits the foreign governmental agency
not to disclose any such information provided
to it under this subsection without the written
permission of the person to whom the
information relates or a written confirmation
from the National Highway Traffic Safety
Administration that the information has
otherwise been made available to the public in
the United States.
(c) Nonpublic Information.--The Secretary may authorize the
disclosure of nonpublic, pre-decisional documents concerning
regulations or other regulatory requirements of the National
Highway Traffic Safety Administration or other Federal
agencies, and other nonpublic information relevant to agency
activities, to a foreign governmental agency that performs
functions similar to those performed by the National Highway
Traffic Safety Administration as part of cooperative law
enforcement or regulatory activity if--
(1) the Secretary determines that disclosure is
reasonably necessary to facilitate motor vehicle safety
related cooperative law enforcement or regulatory
activity; and
(2) the foreign governmental agency provides a
statement in writing to the Secretary that--
(A) establishes the foreign governmental
agency's authority to protect the document or
information from public disclosure; and
(B) commits the foreign governmental agency
not to disclose any document or information
provided to it under this subsection without a
written confirmation from the National Highway
Traffic Safety Administration that it has no
objection to disclosure of the document or that
the information has otherwise been made
available to the public in the United States.
(d) Limit on Disclosure.--Notwithstanding any other provision
of law, a document or information disclosed under subsection
(b) or (c) to a foreign governmental agency is not required to
be disclosed to the public under section 552 of title 5, United
States Code, or any other provision of law, unless the
information has otherwise been made available to the public in
the United States.
* * * * * * *
Sec. 30118. Notification of defects and noncompliance
(a) Notification by Secretary.--The Secretary of
Transportation shall notify the manufacturer of a [motor
vehicle or replacement equipment] motor vehicle, original
equipment, or replacement equipment immediately after making an
initial decision (through testing, inspection, investigation,
or research carried out under this chapter, examining
communications under section 30166(f) of this title, or
otherwise) that the vehicle or equipment contains a defect
related to motor vehicle safety or does not comply with an
applicable motor vehicle safety standard prescribed under this
chapter. The notification shall include the information on
which the decision is based. The Secretary shall publish a
notice of each decision under this subsection in the Federal
Register. Subject to section 30167(a) of this title, the
notification and information are available to any interested
person.
(b) Defect and Noncompliance Proceedings and Orders.--
(1) The Secretary may make a final decision that a
[motor vehicle or replacement equipment] motor vehicle,
original equipment, or replacement equipment contains a
defect related to motor vehicle safety or does not
comply with an applicable motor vehicle safety standard
prescribed under this chapter only after giving the
manufacturer an opportunity to present information,
views, and arguments showing that there is no defect or
noncompliance or that the defect does not affect motor
vehicle safety. Any interested person also shall be
given an opportunity to present information, views, and
arguments.
(2) If the Secretary decides under paragraph (1) of
this subsection that the vehicle or equipment contains
the defect or does not comply, the Secretary shall
order the manufacturer to--
(A) give notification under section 30119 of
this title to the owners, purchasers, and
dealers of the vehicle or equipment of the
defect or noncompliance; and
(B) remedy the defect or noncompliance under
section 30120 of this title.
(c) Notification by Manufacturer.--A manufacturer of a [motor
vehicle or replacement equipment] motor vehicle, original
equipment, or replacement equipment shall notify the Secretary
by certified mail, and the owners, purchasers, and dealers of
the vehicle or equipment as provided in section 30119(d) of
this section, if the manufacturer--
(1) learns the vehicle or equipment contains a defect
and decides in good faith that the defect is related to
motor vehicle safety; or
(2) decides in good faith that the vehicle or
equipment does not comply with an applicable motor
vehicle safety standard prescribed under this chapter.
(d) Enhanced Reporting of Information.--
(1) Rulemaking required.--No later than 120 days
after the date of enactment of the Motor Vehicle and
Motor Vehicle Equipment Defect Notification Improvement
Act, the Secretary of Transportation shall initiate a
rulemaking proceeding to establish increased reporting
requirements and record retention 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) Data covered.--
(A) Required data.--In carrying out this
subsection, the Secretary shall require
manufacturers to collect and report to the
Secretary periodically, or upon request by the
Secretary, the following information derived
from domestic and foreign sources:
(i) Accidents or incidents, or trends
or patterns of accidents or incidents,
involving motor vehicles, motor vehicle
equipment, or motor vehicle equipment
components or systems manufactured by
that manufacturer that result in
fatalities, serious injuries, or fires.
(ii) Any 3 or more lawsuits in which
the manufacturer is a defendant
involving the same, or a substantially
similar, alleged defect.
(iii) Customer satisfaction
campaigns, consumer advisories,
recalls, or other activity involving
the repair or replacement of motor
vehicles or items of motor vehicle
equipment.
(iv) Warranty or adjustment data
received by the manufacturer.
(B) Potential data.--In carrying out this
subsection, the Secretary shall consider
requiring manufacturers to collect and report
to the Secretary periodically, or upon request
by the Secretary, the following information
derived from domestic and foreign sources:
(i) Consumer complaints.
(ii) Safety-related information
relating to actual or potential defects
not otherwise collected or reported.
(iii) The number or other identifying
characteristic for motor vehicle
equipment sold by that manufacturer.
(iv) Communications between the
manufacturer and dealers, or other
information made available by the
manufacturer to dealers, relating to
motor vehicle or motor vehicle
equipment safety-related defects or
recalls.
(4) Insurance.--No later than 120 days after the date
of enactment of the Motor Vehicle and Motor Vehicle
Equipment Defect Notification Improvement Act, the
Secretary shall initiate a rulemaking proceeding to
establish enhanced aggregate information reporting
requirements under this chapter for persons in the
business of providing motor vehicle insurance or of
adjusting motor vehicle insurance claims. The Secretary
shall issue a final rule under this paragraph not later
than June 30, 2002.
(5) Confidentiality.--Nothing in this subsection
provides an exception from section 30167(a) for
information received by the Secretary under the
rulemaking required by this subsection.
[(d)] (e) Exemptions.--On application of a manufacturer, the
Secretary shall exempt the manufacturer from this section if
the Secretary decides a defect or noncompliance is
inconsequential to motor vehicle safety. The Secretary may take
action under this subsection only after notice in the Federal
Register and an opportunity for any interested person to
present information, views, and arguments.
[(e)] (f) Hearings About Meeting Notification Requirements.--
On the motion of the Secretary or on petition of any interested
person, the Secretary may conduct a hearing to decide whether
the manufacturer has reasonably met the notification
requirements under this section. Any interested person may make
written and oral presentations of information, views, and
arguments on whether the manufacturer has reasonably met the
notification requirements. If the Secretary decides that the
manufacturer has not reasonably met the notification
requirements, the Secretary shall order the manufacturer to
take specified action to meet those requirements and may take
any other action authorized under this chapter.
* * * * * * *
Sec. 30120. Remedies for defects and noncompliance
(a) Ways to Remedy.--
(1) Subject to subsections (f) and (g) of this
section, when notification of a defect or noncompliance
is required under section 30118(b) or (c) of this
title, the manufacturer of the defective or
noncomplying motor vehicle or replacement equipment
shall remedy the defect or noncompliance without charge
when the vehicle or equipment is presented for
remedy.--Subject to subsections (b) and (c) of this
section, the manufacturer shall remedy the defect or
noncompliance in any of the following ways the
manufacturer chooses:
(A) if a vehicle--
(i) by repairing the vehicle;
(ii) by replacing the vehicle with an
identical or reasonably equivalent
vehicle; or
(iii) by refunding the purchase
price, less a reasonable allowance for
depreciation.
(B) if replacement equipment, by repairing
the equipment or replacing the equipment with
identical or reasonably equivalent equipment.
(2) The Secretary of Transportation may prescribe
regulations to allow the manufacturer to impose
conditions on the replacement of a motor vehicle or
refund of its price.
(b) Tire Remedies.--
(1) A manufacturer of a tire, including an original
equipment tire, shall remedy a defective or
noncomplying tire if the owner or purchaser presents
the tire for remedy not later than 60 days after the
later of--
(A) the day the owner or purchaser receives
notification under section 30119 of this title;
or
(B) if the manufacturer decides to replace
the tire, the day the owner or purchaser
receives notification that a replacement is
available.
(2) If the manufacturer decides to replace the tire
and the replacement is not available during the 60-day
period, the owner or purchaser must present the tire
for remedy during a subsequent 60-day period that
begins only after the owner or purchaser receives
notification that a replacement will be available
during the subsequent period. If tires are available
during the subsequent period, only a tire presented for
remedy during that period must be remedied.
(c) Adequacy of Repairs.--
(1) If a manufacturer decides to repair a defective
or noncomplying motor vehicle or replacement equipment
and the repair is not done adequately within a
reasonable time, the manufacturer shall--
(A) replace the vehicle or equipment without
charge with an identical or reasonably
equivalent vehicle or equipment; or
(B) for a vehicle, refund the purchase price,
less a reasonable allowance for depreciation.
(2) Failure to repair a motor vehicle or replacement
equipment adequately not later than 60 days after its
presentation is prima facie evidence of failure to
repair within a reasonable time. However, the Secretary
may extend, by order, the 60-day period if good cause
for an extension is shown and the reason is published
in the Federal Register before the period ends.
Presentation of a vehicle or equipment for repair
before the date specified by a manufacturer in a notice
under section 30119(a)(5) or 30121(c)(2) of this title
is not a presentation under this subsection.
(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.
(e) Hearings About Meeting Remedy Requirements.--On the
motion of the Secretary or on application by any interested
person, the Secretary may conduct a hearing to decide whether
the manufacturer has reasonably met the remedy requirements
under this section. Any interested person may make written and
oral presentations of information, views, and arguments on
whether the manufacturer has reasonably met the remedy
requirements. If the Secretary decides a manufacturer has not
reasonably met the remedy requirements, the Secretary shall
order the manufacturer to take specified action to meet those
requirements and may take any other action authorized under
this chapter.
(f) Fair Reimbursement to Dealers.--A manufacturer shall pay
fair reimbursement to a dealer providing a remedy without
charge under this section.
(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 calendar years,] 10 calendar years, or the
tire, including an original equipment tire, was bought
by the first purchaser more than [3 calendar years,] 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.--
(2) This section does not apply during any period in
which enforcement of an order under section 30118(b) of
this title is restrained or the order is set aside in a
civil action to which section 30121(d) of this title
applies.
(h) Exemptions.--On application of a manufacturer, the
Secretary shall exempt the manufacturer from this section if
the Secretary decides a defect or noncompliance is
inconsequential to motor vehicle safety. The Secretary may take
action under this subsection only after notice in the Federal
Register and an opportunity for any interested person to
present information, views, and arguments.
(i) Limitation on Sale or Lease.--
(1) If notification is required by an order under
section 30118(b) of this title or is required under
section 30118(c) of this title and the manufacturer has
provided to a dealer (including retailers of motor
vehicle equipment) notification about a new motor
vehicle or new item of replacement equipment in the
dealer's possession at the time of notification that
contains a defect related to motor vehicle safety or
does not comply with an applicable motor vehicle safety
standard prescribed under this chapter, the dealer may
sell or lease the motor vehicle or item of replacement
equipment only if--
(A) the defect or noncompliance is remedied
as required by this section before delivery
under the sale or lease; or
(B) when the notification is required by an
order under section 30118(b) of this title,
enforcement of the order is restrained or the
order is set aside in a civil action to which
section 30121(d) of this title applies.
(2) This subsection does not prohibit a dealer from
offering for sale or lease the vehicle or equipment.
* * * * * * *
Sec. 30125. Schoolbuses and schoolbus equipment
(a) Definitions.--In this section--
(1) ``schoolbus'' means a passenger motor vehicle
designed to carry a driver and more than 10 passengers,
that the Secretary of Transportation decides is likely
to be used significantly to transport preprimary,
primary, and secondary school students to or from
school or an event related to school.
(2) ``schoolbus equipment'' means equipment designed
primarily for a schoolbus or manufactured or sold to
replace or improve a system, part, or component of a
schoolbus or as an accessory or addition to a
schoolbus.
(b) Standards.--The Secretary shall prescribe motor vehicle
safety standards for schoolbuses and schoolbus equipment
manufactured in, or imported into, the United States. Standards
shall include minimum performance requirements for--
(1) emergency exits;
(2) interior protection for occupants;
(3) floor strength;
(4) seating systems;
(5) crashworthiness of body and frame (including
protection against rollover hazards);
(6) vehicle operating systems;
(7) windows and windshields; and
(8) fuel systems.
(c) Test Driving by Manufacturers.--The Secretary may require
by regulation a schoolbus to be test-driven by a manufacturer
before introduction in commerce.
(d) Suspension of Operations for Imminent Hazard.--The
Secretary may issue an order directing any person that operates
a school bus to suspend operation of the school bus as a school
bus if the Secretary determines that there is a defect or
noncompliance that presents an imminent hazard to passenger
safety if the school bus continues operation before the defect
or noncompliance is remedied.
* * * * * * *
Sec. 30128. Commercial passenger vehicles
The Secretary of Transportation may issue an order directing
any person that operates a motor vehicle used to transport
passengers for compensation to suspend operation of the vehicle
to transport passengers for compensation if the Secretary
determines that there is a defect or noncompliance that
presents an imminent hazard to passenger safety if the vehicle
continues such operation before the defect or noncompliance is
remedied.
* * * * * * *
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) In General.--A person that violates any of sections
30112, 30115, 30117 through 30122, 30123(d), 30125(c) or (d),
30126(b), 30127, 30128, 30141 through 30147, or 30166, or a
regulation prescribed thereunder, is liable to the United
States Government for a civil penalty of not more than $5,000
per day 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 paragraph
for a related series of violations is $15,000,000, except that
no such maximum applies in the case of a willful and
intentional violation.
(b) Compromise and Setoff.--
(1) The Secretary of Transportation may compromise
the amount of a civil penalty imposed under this
section.
(2) The Government may deduct the amount of a civil
penalty imposed or compromised under this section from
amounts it owes the person liable for the penalty.
(c) Considerations.--In determining the amount of a civil
penalty or compromise, the appropriateness of the penalty or
compromise to the size of the business of the person charged
and the gravity of the violation shall be considered.
(d) Subpenas for Witnesses.--In a civil action brought under
this section, a subpena for a witness may be served in any
judicial district.
Sec. 30166. Inspections, investigations, and records
[(a) Definition.--In this section, ``motor vehicle accident''
means an occurrence associated with the maintenance or
operation of a motor vehicle or motor vehicle equipment
resulting in personal injury, death, or property damage.]
(a) Definitions.--Notwithstanding section 30102(a), in this
section:
(1) Motor vehicle accident.--The term ``motor vehicle
accident'' means an occurrence associated with the
maintenance or operation of a motor vehicle or motor
vehicle equipment resulting in personal injury, death,
or property damage.
(2) Dealer.--The term ``dealer'' means a person
selling and distributing new motor vehicles or motor
vehicle equipment, inside or outside the United States,
primarily to purchasers that in good faith purchase the
vehicles or equipment other than for resale.
(3) Distributor.--The term ``distributor'' means a
person primarily selling and distributing motor
vehicles or motor vehicle equipment, inside or outside
the United States, for resale.
(4) Manufacturer.--The term ``manufacturer''--
(A) means a person--
(i) manufacturing or assembling motor
vehicles or motor vehicle equipment; or
(ii) importing motor vehicles or
motor vehicle equipment for resale; and
(B) includes--
(i) a person incorporated within or
with its principal place of business in
the United States and its direct and
indirect domestic and foreign
subsidiaries and affiliates;
(ii) a person with its principal
place of business in a foreign country,
including its direct or indirect
domestic and foreign subsidiaries and
affiliates, any of which exports motor
vehicles or motor vehicle equipment
into the United States; and
(iii) a person with its principal
place of business in a foreign country,
including its direct or indirect
domestic and foreign subsidiaries and
affiliates, any of which manufactures
or assembles motor vehicles or motor
vehicle equipment in the United States.
(5) Owner.--The term ``owner'' means an owner inside
or outside the United States.
(6) Purchaser.--The term ``purchaser'' means a
purchaser inside or outside the United States.
(7) Person.--The term ``person'' means any
manufacturer, distributor, or dealer and any other
person within the United States that may have
information related to this chapter.
(b) Authority to Inspect and Investigate.--
(1) The Secretary of Transportation may conduct an
inspection or investigation--
(A) that may be necessary to enforce this
chapter or a regulation prescribed or order
issued under this chapter; or
(B) related to a motor vehicle accident and
designed to carry out this chapter.
(2) The Secretary of Transportation shall cooperate
with State and local officials to the greatest extent
possible in an inspection or investigation under
paragraph (1)(B) of this subsection.
(c) Matters That Can Be Inspected and Impoundment.--In
carrying out this chapter, an officer or employee designated by
the Secretary of Transportation--
(1) at reasonable times, may inspect and copy any
record related to this chapter;
(2) on request, may inspect records of a
manufacturer, distributor, or dealer to decide whether
the manufacturer, distributor, or dealer has complied
or is complying with this chapter or a regulation
prescribed or order issued under this chapter; and
(3) at reasonable times, in a reasonable way, and on
display of proper credentials and written notice to an
owner, operator, or agent in charge, may--
(A) enter and inspect with reasonable
promptness premises in which a motor vehicle or
motor vehicle equipment is manufactured, held
for introduction in interstate commerce, or
held for sale after introduction in interstate
commerce;
(B) enter and inspect with reasonable
promptness premises at which a vehicle or
equipment involved in a motor vehicle accident
is located;
(C) inspect with reasonable promptness that
vehicle or equipment; and
(D) impound for not more than 72 hours a
vehicle or equipment involved in a motor
vehicle accident.
(d) Reasonable Compensation.--When a motor vehicle (except a
vehicle subject to subchapter I of chapter 135 of this title)
or motor vehicle equipment is inspected or temporarily
impounded under subsection (c)(3) of this section, the
Secretary of Transportation shall pay reasonable compensation
to the owner of the vehicle if the inspection or impoundment
results in denial of use, or reduction in value, of the
vehicle.
[(e) Records and Making Reports.--The Secretary of
Transportation reasonably may require a manufacturer of a motor
vehicle or motor vehicle equipment to keep records, and a
manufacturer, distributor, or dealer to make reports, to enable
the Secretary to decide whether the manufacturer, distributor,
or dealer has complied or is complying with this chapter or a
regulation prescribed or order issued under this chapter. This
subsection does not impose a recordkeeping requirement on a
distributor or dealer in addition to those imposed under
subsection (f) of this section and section 30117(b) of this
title or a regulation prescribed or order issued under
subsection (f) or section 30117(b).]
(e) Records and Reports.--The Secretary of Transportation is
authorized to require a manufacturer of a motor vehicle or
motor vehicle equipment to keep records, and a manufacturer,
distributor, or dealer to make reports, to enable the Secretary
to decide whether the manufacturer, distributor, or dealer has
complied or is complying with this chapter or a regulation
prescribed or order issued under this chapter. This subsection
does not impose a recordkeeping requirement on a distributor or
dealer in addition to those imposed under subsection (f) of
this section and section 30117(b) or a regulation prescribed or
order issued under subsection (f) or section 30117(b).
(f) Providing Copies of Communications About Defects and
Noncompliance.--A manufacturer shall give the Secretary of
Transportation a true or representative copy of each
communication to the manufacturer's dealers or to owners or
purchasers of a motor vehicle or replacement equipment produced
by the manufacturer about a defect or noncompliance with a
motor vehicle safety standard prescribed under this chapter in
a vehicle or equipment that is sold or serviced.
(g) Administrative Authority on Reports, Answers, and
Hearings.--
(1) In carrying out this chapter, the Secretary of
Transportation may--
(A) require, by general or special order, any
person to file reports or answers to specific
questions, including reports or answers under
oath; and
(B) conduct hearings, administer oaths, take
testimony, and require (by subpena or
otherwise) the appearance and testimony of
witnesses and the production of records the
Secretary considers advisable.
(2) A witness summoned under this subsection is
entitled to the same fee and mileage the witness would
have been paid in a court of the United States.
(h) Civil Actions to Enforce and Venue.--A civil action to
enforce a subpena or order under subsection (g) of this section
may be brought in the United States district court for any
judicial district in which the proceeding is conducted. The
court may punish a failure to obey an order of the court to
comply with a subpena or order as a contempt of court.
(i) Governmental Cooperation.--The Secretary of
Transportation may request a department, agency, or
instrumentality of the United States Government to provide
records the Secretary considers necessary to carry out this
chapter. The head of the department, agency, or instrumentality
shall provide the record on request, may detail personnel on a
reimbursable basis, and otherwise shall cooperate with the
Secretary. This subsection does not affect a law limiting the
authority of a department, agency, or instrumentality to
provide information to another department, agency, or
instrumentality.
(j) Cooperation of Secretary.--The Secretary of
Transportation may advise, assist, and cooperate with
departments, agencies, and instrumentalities of the Government,
States, and other public and private agencies in developing a
method for inspecting and testing to determine compliance with
a motor vehicle safety standard.
(k) Providing Information.--The Secretary of Transportation
shall provide the Attorney General and, when appropriate, the
Secretary of the Treasury, information obtained that indicates
a violation of this chapter or a regulation prescribed or order
issued under this chapter.
* * * * * * *
Sec. 30170. Criminal penalties
(a) Acts Prohibited.--It is unlawful for a director, officer,
or agent of a manufacturer that introduces a motor vehicle or
motor vehicle equipment into interstate commerce to authorize,
order, or ratify the introduction if the director, officer, or
agent knew that--
(1) at the time of introduction the manufacturer was
in violation of section of section 30112(a) or 30118(c)
with respect to that motor vehicle or motor vehicle
equipment;
(2) the condition of the motor vehicle or motor
vehicle equipment that is the subject of that violation
created a serious danger of death or grievous bodily
harm; and
(3) the condition described in paragraph (2) caused
death or grievous bodily harm.
(b) Penalties.--Violation of subsection (a) is punishable
by--
(1) a fine of not more than $10,000, imprisonment for
not more than 5 years, or both, if the violation
resulted in grievous bodily harm; and
(2) a fine of not more than $50,000, imprisonment for
not more than 15 years, or both, if the violation
resulted in death.
(c) Coordination with DOJ.--Before authorizing a United
States Attorney to bring an action, or initiate grand jury
proceedings, for a violation of subsection (a) or (b), the
Attorney General shall consult with the Secretary of
Transportation.
TITLE 49. TRANSPORTATION
SUBTITLE VI. MOTOR VEHICLE AND DRIVER PROGRAMS
PART C. INFORMATION, STANDARDS, AND REQUIREMENTS
CHAPTER 327
Sec. 32709. Penalties and enforcement
(a) Civil Penalty.--
(1) A person that violates this chapter or a
regulation prescribed or order issued under this
chapter is liable to the United States Government for a
civil penalty of not more than [$2,000] $5,000 for each
violation.--A separate violation occurs for each motor
vehicle or device involved in the violation. The
maximum penalty under this subsection for a related
series of violations is [$100,000.] $1,000,000.
(2) The Secretary of Transportation shall impose a
civil penalty under this subsection. The Attorney
General shall bring a civil action to collect the
penalty. Before referring a penalty claim to the
Attorney General, the Secretary may compromise the
amount of the penalty. Before compromising the amount
of the penalty, the Secretary shall give the person
charged with a violation an opportunity to establish
that the violation did not occur.
(3) In determining the amount of a civil penalty
under this subsection, the Secretary shall consider--
(A) the nature, circumstances, extent, and
gravity of the violation;
(B) with respect to the violator, the degree
of culpability, any history of prior
violations, the ability to pay, and any effect
on the ability to continue doing business; and
(C) other matters that justice requires.
(b) Criminal Penalty.--A person that knowingly and willfully
violates this chapter or a regulation prescribed or order
issued under this chapter shall be fined under title 18,
imprisoned for not more than 3 years, or both. If the person is
a corporation, the penalties of this subsection also apply to a
director, officer, or individual agent of a corporation who
knowingly and willfully authorizes, orders, or performs an act
in violation of this chapter or a regulation prescribed or
order issued under this chapter without regard to penalties
imposed on the corporation.
(c) Civil Actions by Attorney General.--The Attorney General
may bring a civil action to enjoin a violation of this chapter
or a regulation prescribed or order issued under this chapter.
The action may be brought in the United States district court
for the judicial district in which the violation occurred or
the defendant is found, resides, or does business. Process in
the action may be served in any other judicial district in
which the defendant resides or is found. A subpena for a
witness in the action may be served in any judicial district.
(d) Civil Actions by States.--
(1) When a person violates this chapter or a
regulation prescribed or order issued under this
chapter, the chief law enforcement officer of the State
in which the violation occurs may bring a civil
action--
(A) to enjoin the violation; or
(B) to recover amounts for which the person
is liable under section 32710 of this title for
each person on whose behalf the action is
brought.
(2) An action under this subsection may be brought in
an appropriate United States district court or in a
State court of competent jurisdiction. The action must
be brought not later than 2 years after the claim
accrues.
Sec. 32710. Civil actions by private persons
(a) Violation and Amount of Damages.--A person that violates
this chapter or a regulation prescribed or order issued under
this chapter, with intent to defraud, is liable for 3 times the
actual damages or [$1,500,] $10,000, whichever is greater.
(b) Civil Actions.--A person may bring a civil action to
enforce a claim under this section in an appropriate United
States district court or in another court of competent
jurisdiction. The action must be brought not later than 2 years
after the claim accrues. The court shall award costs and a
reasonable attorney's fee to the person when a judgment is
entered for that person.