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CIVIL PENALTY

Section 109(b) of the House amendment permits the Secretary to compromise any civil penalty imposed for violations of this act.

Section 109(b) of the proposed conference substitute is the same as the House amendment with the addition of a sentence from section 110(b) of the Senate bill making it explicit that in determining the amount of any civil penalty or the amount agreed on in compromise the Secretary shall consider both the size of the business of the person charged and the gravity of the violation.

INJUNCTIONS

Seccion 110(at) of ihe House amendment gives ihe U.S. district couris jurisdiccion io enjoin violations of this iiile and requires a rensonable opportunity be given any person in comply before ihe Secreiary seeks an injunction.

Section 110(a) of the proposed conference substitute is the same is ihe House provision except ihni ihe U.S. districi courts are also given The allthority granied them in seciion 111(11) of the Senaie bill in restrain ihe sale, offer for sale or introduction or delivery for introduction into iniersinie commerce, or impuriation into the United Stries of any vehicle or item of equipmeni which it is determined prior in ihe first purchase in good fuiih for purposes wiher than resale dues noi conform in Federal safety standards.

The House managers believe ihe addition of ihis language from the Senaie bill will posiïively insure thai an injunction can be obtained to resirain ihe sale, offer for sale, delivery into conimerce or imporiation of it subsiandurd vehicle or lem of equipment in those c'ilses where there is otherwise i defense io ihese acts so that 110 ivil penalty can be imposed.

JURISDICTION AND VENUE Section 112 of the Senate bill provides generally in subsection (a) that actions to impose civil penalties or to obtain injunctions to carry out this act may be brought in the district where the violation occurred, where the defendant is found, is an inhabitant or transacts business, und process may be served in these cases in any other district in which the defendant may be found. Subsection (b) generally provides that subpenas for witnesses may run into any other district. Subsection (c) makes it the duty of every manufacturer offering vehicles or equipment for importation into the United States to designate an agent for service of process or in default thereof provides that service may be had by posting the process in the office of the Secretary.

Section 110(c) of the House amnendment provides that in all criininal or injunction proceedings to enforce, or to restrain violation of, this title, subpenas for witnesses may run into any other district.

Subsections (c), (d), and (e) of section 110 of the proposed conference substitute replace subsection (c) of section 110 of the House amendment and, except for technical and conforming changes, are the same as section 112 of the Senate bill.

INSPECTION AND INVESTIGATION

Section 114(a) of the Senate bill authorizes the Secretary to conduct such testing, inspection, and investigation as he deems necessary to aid in the enforcement of Federal safety standards.

Section 112(a) of the House amendment authorizes the Secretary to conduct such inspection as may be necessary to carry out the Federal safety standards.

Section 112(a) of the proposed conference substitute is the same ils the House bill except that the Secretary is also given authority to conduct such investigations as may be necessary to enforce Federal safety standards.

PERFORMANCE DATA Section 112(d) of the House amendment and section 112(d) of the proposed conference substitute are identical. It is understood that in the administration of this provision the Secretary is required to treat as confidential performance and technical data which include trade secrets which he obtains unless and until notification of such data is required in the interests of safety as provided in this subsection.

NOTIFICATION

Sections 116 (a), (b), and (c) of the Senate bill require the manafacturer of motor vehicles to furnish notification of any defect in any Vehicle or equipment produced by him which he determines relles 10 motor vehicle safety to the purchaser (where known) within it leas011able time after discovery of such defect by the manufacturer. This notification is required to be accomplished by certified mail to the first purchaser and to the dealer or dealers to whom such vehicle or equipment wils delivered. The notification shall contain it clar description of the defect and evaluation of the risk of traffic safety related thereto and a statement of the measures to be taken to repair the desert.

Sections 113 (11), (b), and (c) of the House amendment are the same is the Senate bill with the exception that notification is required to be accomplished by certified mail not only to the first purchaser buit 10 any subsequent purchaser to whom has been transferred any warranty on such vehicle or equipment.

Sections 113 (a), (b), and (c) of the proposed conference substitute iure the same as the House annend:nent.

Subsection (d) of section 116 of the Senate bill requires the multifacturer of motor vehicles to furnish the Secretary a true or representiltive copy of all notices, bulletins, and other communications to thin dealers or purchasers of such vehicles or cquipment regarding any defect therein. The Secretary shall disclose so much of the informittion contained in such notice or other information obtained inder section 114(n) (his authority to conduct independent inspection and investigation) to the public as he deems will assist in carrying out the purposes of this act. He is required not to disclose any information which contains or relates to a trade secret unless he determines that it is necessary to carry out the purposes of this act.

Section 113(d) of the House amendment requires every manufacturer of motor vehicles to furnish the Secretary promptly a true and

representative copy of any notice, bulletin, or like written communication to the dealers of such manufacturer or purchasers and users of such manufacturer's products regarding the existence or correction of any defect in vehicles or equipment as delivered by that manufacturer. If the Secretary determines the defect is a safety defect he is required to review with the inanufacturer the action taken and proposed to be taken to accomplish effective notification to purchasers and users. If the inanufacturer's action is inadequate to accomplish effective notification the Secretary shall order him to take further measures that are reasonable and necessary to accomplish such notice. If the manufacturer fails to promptly comply, an injunction to compel compliance may be sought. The Secretary, if he determines after review that publication by him will result in effecting a substantial additional number of corrections, shall disclose to the public so much of the information contained in the notice or other information obtained linder section 112(a) (his authority to conduct independent inspection) as he deems necessary for this purpose. The Secretary is precluded from disclosing information which contains or relates to a trade secret unless he determines that this disclosure is necessary to carry out this uct.

Subsection (d) of section 113 of the proposed conference substitute is the same as subsection (d) of section 116 of the Senate bill, with the exception of a minor conforming change.

Subsection (e) of section 116 of the Senate bill provides that if the Secretary determines that any vehicle or item of equipment does not comply with the Federal safety standards or contains a defect relating to motor vehicle safety as a result either of testing, inspections, investigations, or research carried out by him pursuant to this title or through an examination of the reports which manufacturers are required to file with him under subsection (d) of this section (relating to notification of defects to dealers) he is required to notify the manufacturer of such defect or failure to comply. The notice is required to contain the Secretary's findings and all information on which such findings are based. He then is required to afford the manufacturer an opportunity to be heard and to establish that there is no failure to comply or that the alleged defect does not affect motor vehicle safety. Thereafter, if the Secretary determines there is not compliance or there is a defect relating to motor vehicle safety he is required to direct the manufacturer to furnish the notification specified in subsection (c) of this section to the purchaser as provided in subsections (a) and (b) of this section.

The House amendment contains no corresponding provision. Subsection (e) of section 113 of the proposed conference substitute is the same as section 116(e) of the Senate bill with the exception of a minor conforming change.

CERTIFICATION Section 114 of the House amendment and section 114 of the proposed conference substitute are identical. It is intended that the permanent certification of a motor vehicle required under this section will be expressed as compliance with all applicable Federal safety standards at the time of manufacture of such vehicle.

NATIONAL TRAFFIC SAFETY AGENCY Section 115 of the House amendment requires the Secretary to carry out this act through a National Traffic Safety Agency which he is required to establish in the Department of Commerce. This agency is to be headed by a Traffic Safety Administrator appointed by the President, by und with the advice and consent of the Senate, who will be paid at the rate of level V of the Federal executive salary schedule. He is to be a citizen of the United States, appointed with due regard to his fitness to carry out his duties and powers delegated to him, and he is required to have no pecuniary interest in or to own) any stock in or bonds of any enterprise involved in manufacturing motor vehicles or motor vehicle equipment, or constructing highways, nor is he to engage in any other business, vocation, or employment. The Administrator is to perform such duties as are delegated to him by the Secretary.

Section 115 of the proposed conference substitute is the same as the House amendment except for the deletion of the prohibition with respect to pecuniary interest in businesses manufacturing vehicles or equipment or constructing highways.

The deletion of this specific prohibition results in the Administrator being subject to the general provisions of law applicable to all other Federal officers with respect to conflict of interest.

AVOIDANCE OF DUPLICATION

Section 118 of the House amendment requires the Secretary to utilize the services, research and testing facilities of other Federal departments and agencies in carrying out his duties under this title to the maximum extent practicable in order to avoid duplication.

Section 118 of the proposed conference substitute is the same as the House amendment except that the Secretary is required to utilize the services, research and testing facilities of public agencies generally in order to avoid duplication. This change would permit the utilization of facilities of State and local governmenis as well as those of the Federal Government.

AUTHORIZATION OF APPROPRIATIONS

Section 121(a) of the House amendment authorizes appropriations for carrying out this title (other than provisions relating to tire safety) of not to exceed $11 million for fiscal 1967, $17 million for fiscal 1968, and $23 million for fiscal 1969, and provides that funds appropriated shall remain available until expended.

Section 121(a) of the proposed conference substitute is the same us the House amendment except for the deletion of the provision that "funds appropriated under this authority shall remain available until expended”.

GRADING SYSTEM FOR TIRES Section 203 of the House amendment requires the Secretary, through standards established under title I, to prescribe a uniform quality grading system for motor vehicle tires. This system is to take effect no sooner than 180 days nor later than one year from the date the order is issued. The Secretary is required to cooperate with industry and the Federal Trade Commission to the maximum

extent practicable in efforts to eliminate deceptive and confusing tire nomenclature and marketing practices.

Section 203 of the proposed conference substitute is the same as the House amendment with the exception that the minimum and maximum effective dates are permitted to be lengthened or shortened in the same manner as provided in section 103(c) for all other safety standards.

REGROOVED TIRES Section 204 of the proposed conference substitute prohibits any person from selling, offering for sale, or introducing for sale or delivering for introduction in interstate commerce any tire, or any motor vehicle equipped with any tire, which has been regrooved. The Secretary may, by order, however, permit the sale of regrooved tires and vehicles equipped with such tires if he finds they are designed and constructed in a manner consistent with the purposes of this act. Violations of this section are to be subject to the same civil penalties and injunction procedures as are provided in sections 109 and 110 of this act. The term “regrooved tire” is defined to mean one on which a new tread has been produced by cutting into the tread of a worn tire. The House amendment contains no comparable provision.

AGENCY CONFLICTS Section 205 of the proposed conference substitute provides that in the event of any conflict between orders or regulations issued by the Secretary under this act which are applicable to motor vehicle tires, and orders or administrative interpretations issued by the Federa) Trade Commission, the provisions of the orders or regulations issued by the Secretary shall prevail. The House amendment contained no comparable provision.

RESEARCH AND TEST FACILITY Section 301 of the House amendment authorizes the Secretary of Commerce to make a complete investigation and study of the need for a facility or facilities to conduct research, development, and testing (A) in traffic safety and (B) relating to the safety of agricultural machinery used on highways or in connection with the maintenance of highways (with particular emphasis on tractor safety) as he deems appropriate und necessary.

Section 301 of the proposed conference substitute is the same as the House amendment except for the deletion of the word "ugricultural”. Thus, all machinery lised on highways or in connection with the maintenance of highways may be subject to research, development, and testing

HARLEY O. STAGGERS,
SAMUEL N. FRIEDEL,
TORBERT H. Macdonald,
John E. Moss,
John D. DINGELL,
PAUL G. ROGERS,
WILLIAM L. SPRINGER,
J. ARTHUR YOUNGER,

SAMUEL L. DEVINE,
Managers on the Part of the House.

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