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way of injunction to force compliance and stop the violation.

Because an automobile is no more reliable than the equipment built into it or added to it, the bill provides for stand

ards in this area also. Things Uke seat belts and brake fluid which already have standards will continue, and other things will be included.

House Committee Report House Report 1776, Page 22

PROHIBITED ACTS AND EXEMPTIONS Prohibited acts.—Section 108(a) of the reported bill prohibits every person from manufacturing for sale, selling, offering for sale, or introducing or delivering for introduction in interstate commerce, or importing into the United States, any vehicle or item of equipment manufactured on or after the date a Federal safety standard applicable thereto takes effect unless it conforms with that standard, except as otherwise provided in subsection (b) of this section. This subsection also prohibits any person to fail to keep records, or refuse access to records, or to refuse to permit the copying of such records, or to fail to make reports, or to provide information required in section 112(b) and (c) of this title. It is further prohibited for any person to issue any certificate that a vehicle or item of equipment conforms to all of the Federal safety standards applicable to it if that person in the exercise of due care either knows or has reason to know that the certificate is false or misleading in any material respect. The purpose of this section is to prohibit the manufacture, sale, or importation into this country of vehicles or items of equipment that fail to meet the Federal safety standards. Sections 109 and 110 provide methods for enforcing these prohibitions, civil penalties, and injunctions. The principal addition made by the committee to this subsection is the provision prohibiting the issuance of a false or misleading certificate. (Section 114 imposes an affirmative duty on certain persons to issue these certificates.)

Senate Passed Act

Congressional Record-Senate
June 24, 1966, 14258

Prohibited acts Sec. 109. (a) No person shall(1) manufacture for sale, sell, offer for or after the date any applicable Federal sale, or introduce or deliver for introduction, motor vehicle safety standard takes effect in intorstato commerco, or import into the under this title unless it is in conformity United States, any motor vehicle or item of with such standard as prescribed or amended motor vehicle equipment manufactured on by the Secretary pursuant to this title except

As provided in subsection (b) of this section; as required by section 116, or furnish a cer

(2) fail or refuse access to or copying of Hication as required by such section 116 records, fall to make reports or provide infor which is false; or mation, or fall or refuse to permit entry or (4) fall or refuse to furnish notification inspection, as required under section 114; as required by section 116.

(3) fall or refuse to furnish a certifcation

Senate Debate

Congressional Record-Senate
June 24, 1966, 14231 and 14232

Mr. MAGNUSON.

I should like the Senator from Con- I mentioned that I hope the day will necticut to respond to this thought. I come soon when we will have a world share his view of the impact that this conference on automobile safety. MUlegislation might have, not only on the lions of lives could be saved If that were United States but worldwide. I falled done. to mention that we have provided in the Mr. RIBICOFF. There is no question bill for foreign cars, that they must com- that what the Senator says is absolutely ply with the standards; and we have true. I can tell from my mall, as I am even allowed them to come in under sure the Senator can from his mall, the something like a free-port arrangement, deep concern and the impact that this where, if they are not in compliance, legislation has had on foreign manufacdealers can bring them up to standard. turers, because they want a portion of

The Senator from Connecticut and I the American market, and they know have discussed the fact that we have that they will not be able to retain a world conferences on safety at sea, portion of the American market unless 14232 world conferences on safety in the air, they build safer cars. So unquestionably and world conferences on safety of ex- the work of the Senator and his complosives and hazardous substances, and mittee has had a worldwide impact.

Senate Committee Report

Senate Report 1301, Page 11

PROHIBITED ACTS

The bill makes it a prohibited act to manufacture, sell, or introduce in interstate commerce any motor vehicle or component which fails to conform to applicable Federal safety standard (§ 109(a)(1)). Similarly, the failure to furnish the certification of compliance and the furnishing of a false certification are made prohibited acts ($ 109(a)(3)).

It is also a prohibited act to obstruct enforcement of the act by failing to make reports or refusing access to or copying of records, or entry or inspection, or failing or refusing to furnish notification of defects, as required by other sections of the act (§ 109(a) (2) and (4)).

The prohibitions against the manufacture, shipment, or sale of substandard vehicles or equipment or issuance of a false certification of compliance do not apply

(1) To any sale or shipment after the first sale for purposes other than resale; or

(2) To any person who relies upon the certificate of compliance from the manufacturer or distributor and does not actually know of any failure to conform to standards; or

(3) To a manufacturer or other person who establishes that he did not know and did not have reason to know in the exercise of due care that such vehicle or item of motor vehicle equipment was not in conformity with such standards (sec. 109(b)). For example, a manufacturer could be relieved from liability upon a showing that he did not know of the failure to conform and that due care had been exercised in manufacturing, inspecting, and shipping the vehicle or item of equipment, in accordance with the manufacturer's obligation to produce vehicles conforming to the standards.

Executive Communications

Contains nothing helpful.

As Introduced

As H.R. 13228 in the House and S. 3005 in the Senate:

PROHIBITED ACTS

SEC. 107. (a) No person shall

(1) manufacture for sale, sell, offer for sale, or introduce or deliver for introduction in interstate commerce, or import into the United States, any motor vehicle or item of motor vehicle equipment manufactured on or after the date any applicable Federal motor

vehicle safety standard takes effect under this title unless

it is in conformity with such standard as prescribed or

amended by the Secretary pursuant to section 102

except as provided in subsection (b) of this section; or

(2) fail or refuse access to or copying of records, or fail to make reports or provide information, as required under section 111 (b).

Subsection 108(b) — As Enacted

Used motor vehicles, state inspection.

Report to
Congress.

(b) (1) Pammanh (1) of subsection (a) shall not apply to the 5 sale, the ouer for sale, or the introduction or delivery for introduction in interstate commerce of any motor vehicle or motor vehicle equipment after the first purchase of it in good faith for purposes other than resale. In order to assure a continuing and effective national traffic safety program, it is the policy of Congress to encourage and strengthen the entorcement of State inspection of used motor vehicles. Therefore to that end the Secretary shall conduct a thorough study and investigation to determine the adequacy of motor vehicle safety standards and motor vehicle inspection requirements and procedures applicable to used motor vehicles in ench State, and the effect of programs authorized by this title upon such standards, require ments, and procedures for used motor vehicles, and report to Congress as soon as practicable but not later than one year after the date of enactment of this title, the results of such study, and recommendations for such additional legislation as he deems necessary to carry out the purposes of this Act. As soon as practicable after the submission of such report, but no later than one year from the date of submission of such report, the Secretary, after consultation with the Council and such interested public and private Agencies and groups as he deems advisable, shall establish uniform Federal motor vehicle safety standards applicable to all used motor vehicles. Such standards shall be expressed in terms of motor vehicle safety performance. The Secretary is authorized to amend or revoke such standards pursuant to this Act.

(2) Paragraph (1) of subjection (a) shall not apply to any person Who establishes that he did not have reason to know in the exercise of due care that such vehicle or item of motor vehicle equipment is not in conformity with applicablo Federal motor vehicle safety standards, or to any person who, prior to such first purchase, holds a certificate issued by the manufacturer or importer of such motor vehicle or motor vehicle equipment, to the effect that such vehicle or equipment conforms to all applicable Federal motor vehicle safety standards, unless such person knows that such vehicle or equipment does not so conform.

(3) A motor vehicle or item of motor vehicle equipment offered for importation in violation of paragraph (1) of subsection (a) shall be refused admission into the United States under joint regulations issued by the Socretary of the Treasury and tho Secretary; except that the Secretary of the Treasury and the Secretary may, by such regulations, provide for authorizing the importation of such motor vehicle or item of motor vehicle equipment into the United States upon such terms 6 and conditions (including the furnishing of a bond) as may appear to them appropriate to insure that any such motor vehicle or item of motor vehicle equipment will be brought into conformity with any applicable Federal motor vehicle safety standard prescribed under this title, or will be exported or abandoned to the United States.

Importation.

(4) The Secretary of the Treasury and the Secretary may, by joint regulations, permit the temporary importation of any motor vehicle or item of motor vehicle equipment after the first purchase of it in good faith for purposes other than resale.

(5) Paragraph (1) of subsection (a) shall not apply in the case of a motor vehicle or item of motor vehicle equipment intended solely for export, and so labeled or tagged on the vehicle or item itself and on the outside of the container, if any, which is exported.

Conference Report

House Report 1919, Page 18

EXEMPTIONS

Section 108(a)(3) of the House amendment makes it a prohibited act to fail to issue a certificate required by section 114 that the vehicle or item of equipment conforms to all applicable Federal safety standards or to issue such a certificate that the vehicle or item of equipment conforms if the person issuing the certificate in the exercise of due care knows or has reason to know that the certificate is false or misleading in a material respect. ! Section 108(b)(2) of the House amendment exempts from paragraph (1) of subsection (a) (the prohibition against manufacturing for sale, selling, offering for sale, or introducing or delivering for introduction in interstate commerce or importing into the United States a vehicle or item of equipment which does not meet the Federal safety standards) (A) any person who establishes that he did not know or have reason to know in the exercise of due care that the vehicle or item of equipment is not in conformity with the Federal safety standards, and (B) any person who prior to the first purchase in good faith for purposes other than resale, holds a certificate of conformance issued by the manufacturer or importer unless such person knows that the vehicle or item of equipment does not in fact conform.

Sections 108(a)(3) and 108(b)(2) of the proposed conference substitute are the same as the House amendment except that in each provision the words "know or” have been deleted so that a person must establish that he did not have reason to know in the exercise of due care either that the certificate was false or misleading or that the vehicle or item of equipment was not in conformity with the Federal safety standards.

Both the House and Senate managers agree that by this deletion it becomes clear that actual knowledge will remove the defense the provisions give. Thus to avail himself of this defense a person would be required to prove both that he had no knowledge of these faets and that he had no reason to know of these facts in the exercise of due care.

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