Senate Passes House’s Version Of Safety Bill

WASHINGTON--U.S. Senate has passed the House’s version of an auto safety bill, which now goes to President Bill Clinton for his signature. Sen. John McCain (R-Ariz.) , who was pushing his own bill that contained tougher sanctions, offered the House version as a compromise. McCain’s proposal had bogged-down following industry objections to the heftier criminal consequences it called for.

The measure, if signed-off upon by the President, would increase the flow of information to federal regulators from automotive industry suppliers regarding possible defects while increasing the penalties from current levels for those who disregard the law.

• To enforce the production of defect information, the legislation increases civil penalties to $15 million from the current $925,000 maximum.

• Executives could also go to prison for 15 years--up from five years under general federal law-- for deliberately misleading the National Highway Traffic Safety Administration about products that cause death or serious injury.

Internal documents obtained by Congressional investigators have shown both Ford and Firestone discussed problems with similar tires in foreign countries years before the U.S. recall. In future situations, overseas recalls and other product safety issued need to be reported to NHTSA.

The measure also:

• Prohibits recalled tires being resold to consumers.

• Directs NHTSA to update its 32-year-old tire standard.

• Requires NHTSA to develop a real-world rollover test rating system.

The Alliance of Automobile Manufacturers described the House-wriiten bill as “challenging legislation,” yet the organization says it is more workable than the now-defunct Senate version. The Senate’s criminal sanctions were driving the concerns.

“The good thing about the House bill is that it doesn’t turn safety engineers wearing white lab coats into hardened criminals,” said Alliance President and CEO Josephine S. Cooper.

“Though we continue to oppose the criminal penalties provision, the House bill as passed is more balanced than the current Senate version because the House bill provides an objective standard about what is and what is not a criminal act,” Cooper continued. “Auto engineers need that bright line,” she said. (Her comments were made prior to Wednesday’s Senate vote.)

“Real-world experience under other federal programs has pointedly illustrated the significant chilling effect that the prospect of criminal penalties can have on investigations. The House bill will allow automakers to maintain and enhance their working relationship with NHTSA,” Cooper said. “By providing more stringent penalties in egregious cases for a person already engaged in criminal deception of the government, and by providing that the offense must be intentional, the House approach allows a conscientious person to do what is necessary to avoid criminal liability, which should be the goal of all criminal statutes.”

Cooper added, “The industry is pleased that the reporting requirements will be developed through a rulemaking to ensure that NHTSA receives the appropriate and useful information to improve overall safety. This will enable us to continue to work in good faith with NHTSA, and will help to ensure that both NHTSA and the industry can identify safety-related defects sooner. Speedy information flow will help to enhance early detection and quick correction of safety-related defects on motor vehicles and motor vehicle equipment. Most important, NHTSA officials won’t be buried in mountains of paper.”