As Enacted SEC. 110. (a) The United States district courts shall have jurisdiction, for cause shown and subject to the provisions of rule 65 (a) and (b) of the Federal Rules of Civil Procedure, to restrain violations of this title, or to restrain the sale, offer for sale, or the introduction or delivery for introduction, in interstate commerce, or the importation into the United States, of any motor vehicle or item of motor vehicle equipment which is determined, prior to the first purchase of such vehicle in good faith for purposes other than resale, not to conform to applicable Federal motor vehicle safety standards prescribed pursuant to this title, upon petition by the appropriate United States attorney or the Attorney General on behalf of the United States. Whenever practicable, the Secretary shall give notice to any person against whom an action for injunctive relief is contemplated and afford him an opportunity to present his views, and, except in the case of a knowing and willful violation, shall afford him reasonable opportunity to achieve compliance. The failure to give such notice and afford such opportunity shall not preclude the granting of appropriate relief. (b) In any proceeding for criminal contempt for violation of an injunction or restraining order issued under this section, which violation also constitutes a violation of this title, trial shall be by the court or, upon demand of the accused, by a jury. Such trial shall be conducted in accordance with the practice and procedure applicable in the case of proceedings subject to the provisions of rule 42(b) of the Federal Rules of Criminal Procedure. (c) Actions under subsection (a) of this section and section 109 (a) of this title may be brought in the district wherein any act or transaction constituting the violation occurred, or in the district wherein the defendant is found or is an inhabitant or transacts business, and process in such cases may be served in any other district of which the defendant is an inhabitant or wherever the defendant may be found. (d) In any actions brought under subsection (a) of this section and section 109 (a) of this title, subpoenas for witnesses who are required to attend a United States district court may run into any other district. (e) It shall be the duty of every manufacturer offering a motor vehicle or item of motor vehicle equipment for importation into the United States to designate in writing an agent upon whom service of all administrative and judicial processes, notices, orders, decisions and requirements may be made for and on behalf of said manufacturer, and to file such designation with the Secretary, which designation may from time to time be changed by like writing, similarly filed. Service of all administrative and judicial processes, notices, orders, decisions and requirements may be made upon said manufacturer by service upon such designated agent at his office or usual place of residence with like effect as if made personally upon said manufacturer, and in default of such designation of such agent, service of process, notice, order, requirement or decision in any proceeding before the Secretary or in any judicial proceeding for enforcement of this title or any standards prescribed pursuant to this title may be made by posting such process, notice, order, requirement or decision in the Office of the Secretary. Conference Report House Report 1919, Page 19 INJUNCTIONS Section 110(a) of the House amendment gives the U.S. district courts jurisdiction to enjoin violations of this title and requires a reasonable opportunity be given any person to comply before the Secreiary seeks an injunction. Section 110(a) of the proposed conference substitute is the same as the House provision except that the U.S. district courts are also given the authority granted them in section 111(a) of the Senate bill to restrain the sale, offer for sale or introduction or delivery for introduction into interstate commerce, or importation into the United States of any vehicle or item of equipment which it is determined prior to the first purchase in good faith for purposes other than resale does not conform to Federal safety standards. The House managers believe the addition of this language from the Senate bill will positively insure that an injunction can be obtained to restrain the sale, offer for sale, delivery into commerce or importation of a substandard vehicle or item of equipment in those cases where there is otherwise a defense to these acts so that no civil penalty can be imposed. House Passed Act Congressional Record-House "SEC. 110. (a) The United States district courts shall have jurisdiction, for cause shown and subject to the provisions of rule 65 (a) and (b) of the Federal Rules of Civil Procedure, to restrain violations of this title upon petition by the appropriate United States attorney or the Attorney General on behalf of the United States. Whenever practicable, the Secretary shall give notice to any person against whom an action for injunctive relief is contemplated and afford him an opportunity to present his views, and, except in the case of a knowing and willful violation, shall afford him reasonable opportunity to achieve compliance. The failure to give such notice and afford such opportunity shall not preclude the granting of appropriate relief. "(b) In any proceeding for criminal contempt for violation of an injunction or restraining order issued under this section, which violation also constitutes a violation of this title, trial shall be by the court or, upon demand of the accused, by a jury. Such trial shall be conducted in accordance with the practice and procedure applicable in the case of proceedings subject to the provisions of rule 43(b) of the Federal Rules of Criminal Procedure. "(c) In all criminal or injunction proceed- 19672 ings for the enforcement or to restrain violations of this title, subpenas for witnesses who are required to attend a court of the United States in any district may run into any other district in any such proceeding. House Debate Contains nothing helpful. 214 House Committee Report House Report 1776, Page 25 INJUNCTIONS Section 110 of the reported bill provides that the U.S. district courts shall have jurisdiction, for cause shown and subject to the applicable Federal Rules of Civil Procedure, to restrain violations of this title upon petition by an appropriate U.S. attorney or the Attorney General of the United States. The Secretary is directed to give notice to any person against whom an action for an injunction is contemplated, whenever practicable, and afford him an opportunity to present his views. Except in the case of a knowing and willful violation, such person shall also be afforded a reasonable opportunity to achieve compliance. Failure on the part of the Secretary to give notice and afford such an opportunity for compliance shall not preclude the granting of appropriate relief. In any proceeding for criminal contempt for violation of an injunction or restraining order, which violation also constitutes a violation of this title, trial shall be by the court or, upon demand of the accused, by jury, and rule 42(b) of the Federal Rules of Criminal Procedure shall be applicable. In all criminal or injunction proceedings for enforcement or to restrain violations of this title, subpenas for witnesses requiring attendance in a court of the United States in any district may run into any other district. This section sets the guidelines for injunctive relief to restrain any violations of this title. This relief may be initiated by a U.S. attorney or the Attorney General of the United States. The Secretary is directed to give notice to any person against whom injunctive relief is contemplated and to receive his views, and except in the case of a knowing and willful violation, the Secretary is required to afford an opportunity for compliance. However, these requirements obtain only when practicable and failure to give notice and afford an opportunity for compliance does not preclude the granting of appropriate relief. In any proceeding for criminal contempt for violation of an injunction under this section, a defendant may elect trial by the court or trial by a jury. A subpena issued in one district court may be transferrable to any other district court in the same proceeding. This section, together with the civil penalties provided in section 109, should constitute sufficient enforcement authority to assure full adherence to Federal safety standards. The committee did not feel it necessary to provide authority to seize vehicles and equipment, and therefore deleted this provision which was contained in the introduced bill. Senate Passed Act Congressional Record-Senate Injunction SEC. 111. (a) The United States district courts shall have jurisdiction, for cause shown and subject to the provisions of rule 65 (a) and (b) of the Federal Rules of Civil Procedure, to restrain violations of this title, or to restrain the sale, offer for sale, or the introduction or delivery for introduction, in interstate commerce, or the importation into the United States, of any motor vehicle or item of motor vehicle equipment which is determined, prior to the first purchase of such vehicle in good faith for purposes other than resale, not to conform to applicable Federal motor vehicle safety standards prescribed pursuant to this title, upon petition by the Attorney General on behalf of the United States. Whenever practicable, the Secretary shall give notice to the contemplated defendant and afford him an opportunity to present his views, and, except in the case of a knowing and willful violation, shall afford him opportunity to achieve compliance. The failure to give such notice and afford such opportunity shall not preclude the granting of appropriate relief. (b) In any proceeding for criminal contempt for violation of an order, injunction, or restraining order issued under this section, which violation also constitutes a violation of this title, trial shall be by the court or, upon demand of the accused, by a jury. Such trial shall be conducted in accordance with the practice and procedure applicable in the case of proceedings subject to the provisions of rule 42(b) of the Federal Rules of Criminal Procedure. Jurisdiction and venue Sec. 112. (a) Actions under sections 110(a) and 111(a) may be brought in the district wherein any act or transaction constituting the violation occurred, or in the district wherein the defendant is found or is an inhabitant or transacts business, and process in such cases may be served in any other district of which the defendant is an inhabitant or wherever the defendant may be found. (b) In any action brought under section 110(a) or section 111(a), subpoenas for witnesses who are required to attend a United States district court may run into any other district. (c) It shall be the duty of every manufacturer offering a motor vehicle or item of motor vehicle equipment for importation into the United States to designate in writing an agent upon whom service of all administrative and judicial processes, notices, orders, decisions and requirements may be made for and on behalf of said importer, and to file such designation with the Secretary, which designation may from time to time be changed by like writing, similarly filed. Service of all administrative and judicial processes, notices, orders, decisions and requirements may be made upon said importer by service upon such designated agent at his office or usual place of residence with like effect as if made personally upon said importer, and in default of such designation of such agent, service of process, notice, order, requirement or decision in any proceeding before the Secretary or in any judicial proceeding for enforcement of this title or any standards prescribed pursuant to this title may be made by posting such process, notice, order, requirement or decision in the Office of the Secretary. Senate Debate Congressional Record-Senate Mr. MAGNUSON. There is also a provision which provides for an injunction procedure, so that the Attorney General can go into court to obtain an injunction against a manufacturer for failure to comply with the standards. Of course, if that injunction were violated, the court could hold the persons or the corporation in contempt and could establish a criminal penalty, a civil penalty, or both. But there were three penalties in the bill. There was much argument in the committee and I guess there will be on the floor, because I understand that an amendment will be offered to restore the criminal penalty section. It is true that we have had few Federal laws which imposed both a civil penalty and a criminal penalty as well. The question was raised: Why was it put in the bill? Because we are dealing with human lives. We are dealing with the possibility that someone might willfully, knowingly, and deliberately violate the act and should therefore, be subject to criminal penalty. In the past, numerous laws have been passed by Congress which have dealt with safety and standard settings. Most of these laws have provided a criminal penalty for knowing and willful violations. Many of these laws came out of the Committee on Commerce. I am the author of some of them. We provided a criminal penalty in the safety field just 2 or 3 years ago when we passed the bill on the Hazardous Substances Labeling Act, the Truth in Fabric Act, the Drug Amendments of 1962, steam boilers on vessels, interference with navigation, and the brake fluid and seatbelt acts. Thus, there is precedent for criminal penalties. But the committee, after long deliberation on this matter, voted to retain the civil penalty, and take out the criminal penalty for willful and knowing violations, leaving in the injunction, which in itself can result in a criminal penalty. I do not believe that any of us are reluctant about expressing our views on it. I hope the criminal penalty will be put back in. I shall vote to restore it. Other members of the committee will doubtless have good reasons to vote not to do so when the amendment is presented. Congressional Record-Senate Mr. LAUSCHE. Am I correct in un- Mr. HARTKE. I do not. If a man derstanding that the bill also provides adulterates brake fluid, say, puts water that any person who has been offended in it-half water and half fluid-does by the acts of a manufacturer has a re- this knowingly and willfully and puts it lief through a court of equity in the ob- in a car, the net result of which would ̋ taining of injunctive relief against the make the brake fluid ineffective in an auviolator? tomobile going down the highway, does the Senator mean to say that this is not a culpable act and that such a man should not be subject to a criminal penalty? That would be ridiculous. Mr. HARTKE. The Senator is correct. Mr. LAUSCHE. The amendment of the Senator from Indiana [Mr. HARTKE), in addition to these two reliefs, would provide a third relief, making it a criminal offense to willfully and knowingly violate the act. Mr. HARTKE. That is correct. Mr. LAUSCHE. Does the Senator from Indiana feel that the two remedies here provided will be adequate? Mr. LAUSCHE. The Senators who have just spoken destroy their own objective when they state they do not expect that there will be any violations. I believe that the two remedies provided for are adequate. Senate Committee Report Senate Report 1301, Page 11 The Attorney General is also authorized to seek injunctions against the performance of any prohibited act and to enjoin the sale of any vehicle which fails to conform to applicable standards under the act (sec. 111). |