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tion 155(b) should be issued is intended to put the manufacturer on notice that a refusal to comply makes him liable for civil penalties whether or not the Secretary's original order under section 152 (b) is upheld.

Section 155 (d) of Part B gives the conditions and provisions for notification to owners and purchasers of the outcome of a section 155(a) proceeding in a United States district court. The Secretary is required to order a manufacturer to issue this notification if (i) a manufacturer fails within the specified period to comply with an order under section 152(b) to afford notification to owners and purchasers; (ii) a section 155(a) proceeding is commenced with respect to such order; and (iii) the Secretary prevails in such proceeding. Therefore, this final notification will be required whether or not a manufacturer affords notification to owners and purchasers pursuant to an order under section 152(b) after the commencement of a proceeding in a United States district court and whether or not a manufacturer is required to issue an additional notification under section 155 (b) during the pendency of the court proceeding. The expense to the manufacturer of sending notification pursuant to section 155 (d), which may or may not be the first notification actually mailed to owners and purchasers. is outweighed by the clear public interest in informing owners and purchasers of the outcome of the court proceeding if the Secretary prevails and of the availability of remedy without charge for the defect or failure to comply. Subsection (d)(1) of section 155 permits the combining of notification under this section with any notice required by an order under section 152(b), so that the manufacturer can be spared the expense of two notifications if the Secretary prevails in a civil action under section 155 (a). The notification under section 155 (d) may contain such information as required by the Secretary, for example, the items specified in section 153 (a), and must specify the earliest date on which such defect or failure to comply will be remedied without charge.

If the Secretary required the additional notification under section 155(b) during the pendency of a district court proceeding, then he shall order the manufacturer to reimburse the owner or purchaser for any reasonable and necessary expenses (not in excess of any amount specified in the order) which are incurred: (A) by such owner or purchaser; (B) for the purpose of repairing the defect or failure to comply to which the order relates; and (C) during the period beginning on the date such notification under section 155 (b) was required to be issued and ending on the date such owner or purchaser receives notification pursuant to this subsection. The Secretary will thus have the responsibility for deciding the amount of reimbursement to which owners and purchasers may be entitled and should consider carefully the nature of the defect or failure to comply to which his order under this section relates and the type of remedy necessary for such defect or failure to comply. A reasonable estimate of the average prevailing rates for this type of remedy work will be necessary to establish the amount of reimbursement.

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tion 152 in an enforcement action already commenced by the Secretary under section 110(a) or under section 109 of the act. Thus, if a court permits a manufacturer to bring a preenforcement judicial review action, the standard in section 155(e) (1) for issuing a stay would not apply when the court is considering a request by a manufacturer to restrain the Secretary from commencing an enforcement action.

With respect to the civil action in the forcement of the Secretary's order under secDistrict court regarding the Secretary's order, section 155(c) (1) would recognize that prompt notification to owners and purchasers in accordance with section 153 18 mandatory and that a failure or refusal to so notify would trigger the civil penalty and injunctive provisions of the act. If a manufacturer should fail or refuse to so notify and also seek to have the appropriate U.S. district court restrain the enforcement of the Secretary's order under section 182(b), the conferees agreed upon a standard to be For purposes of section 155 of this legislaapplied by a district court in deciding tion, "enforcement" means the assessment of whether or not to restrain such enforcement. civil penalties for fallure to comply with the This standard is not intended by the con- Secretary's order or an injunction ordering ferees to be applied by a district court except compliance. when considering whether to restrain en

Senate Committee Report-Section 155

Senate Report 93-150, Page 17

Subsection (g) (2) of the proposed section 113, provides that any person who is aggrieved by the decision in the proceeding before the Secretary may appeal the decision upon filing of a petition for review in the United States Court of Appeals for the District of Columbia Circuit. The petition must be filed within 20 days after the Secretary's decision. In any such review, the factual findings of the Secretary shall be sustained if supported by substantial evidence on the record considered as a whole. The

Secretary is directed to file the record upon which his findings are based within 20 days of the date the petition for review is filed. The court shall expedite the disposition of such petition for review. There is no appeal on the Secretary's determination that a defect or failure to comply is or is not de minimus in its impact.

The term "any person who is aggrieved by the decision" should be broadly interpreted and does not require specific injury to the individual himself. Rather, the individual can be a representative of consumers and be expressing their interests. The reason for this is quite clear: where a motor vehicle or item of motor vehicle equipment contains a safety related defect or failure to comply, the owner of such vehicle or equipment is not the only one who may be endangered. Passengers riding in that vehicle or other parties may be involved in an accident, the proximate cause of which was the defect or failure to comply.

Executive Communications-Section 155

Contains nothing helpful.

As Introduced-Section 155

S. 355 contains no corresponding provision.

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As Enacted-Section 156

"REASONABLENESS OF NOTIFICATION AND REMEDY

"SEC. 156. Upon petition of any interested person or on his own motion, the Secretary may hold a hearing in which any interested person (including a manufacturer) may make oral (as well as written) presentations of data, views, and arguments on the question of whether a manufacturer has reasonably met his obligation to notify under section 151 or 152, and to remedy a defect or failure to comply under section 154. If the Secretary determines the manufacturer has not reasonably met such obligation, he shall order the manufacturer to take specified action to comply with such obligation; and, in addition, the Secretary may take any other action authorized by this title.

15 USC 1416. Hearing.

Conference Report-Section 156

House Report 93-1452, Pages 32 and 33

Senate bill

REASONABLENESS OF REMEDY

The Senate bill provided that the Secretary would approve with or without modification after consultation with the manufacturer of a motor vehicle or tire, such manufacturer's remedy plan. The review included the date when and the method by which the notification and remedy would be effectuated. The Senate bill further provided that the date would be the earliest practicable one, but would not exceed sixty days from the date of discovery or determination of the defect or failure to comply. The Secretary was empowered to grant an extension of this period for good cause and to publish notice of such extension in the Federal Register.

The manufacturer was bound to implement the remedy plan as approved by the Secretary. However, the manufacturer could apply to the Secretary to approve any amendment or modification of the plan for good cause shown, provided notice of such modification was reasonably publicized by the manufacturer. The application and the decision rendered on the application would be published in the Federal Register within five days after receipt or issuance. Good cause was defined to mean "unavoidable delay due to strikes, catastrophe, or natural disaster."

House amendment

As indicated previously, section 154 (c) as added by the House amendment required the manufacturer to file with the Secretary a copy of his program to remedy a defect or failure to comply, and the program would be available to the public. Section 156 of the House amendment further provided that upon petition of any interested person, or on his own motion, the Secretary could hold a hearing in which any interested person (including a manufacturer) could make oral (as well as written) presentations of data, views, and arguments on the question of whether a manufacturer has reasonably met his obligation to remedy a defect or failure to comply under section 154. If the Secretary determined that a manufacturer did not reasonably meet the obligation, he would order the manufacturer to take specified action to comply with such obligation.

Conference substitute

The conference substitute adopts the provisions of the House amendment with two clarifying amendments. First, the Secretary is authorized under section 156 as added by the conference substitute to consider whether the manufacturer has reasonably met his obligation not only to remedy a defect or failure to comply, but also to provide notification pursuant to section 151 or 152.

Second, section 156 now states that if the Secretary determines the manufacturer has no reasonably met his obligation to notify and remedy, the Secretary shall order the manufacturer to take the specified

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action to comply and the Secretary may also take any other action authorized by Title I of the National Traffic and Motor Vehicle Safety Act. Thus, for example, the Secretary may assess a civil penalty for a failure of the manufacturer to meet his obligation to notify and remedy.

House Passed Bill-Section 156

Congressional Record-House

August 12, 1974, 27811

"REASONABLENESS OF REMEDY

"Szc. 156. Upon petition of any interested ably met his obligation to remedy a defect person or on his own motion, the Secretary or failure to comply under section 154. If may hold a hearing in which any interested person (including a manufacturer) may make oral (as well as written) presentations of data, views, and arguments on the question of whether a manufacturer has reason

the Secretary determines the manufacturer has not reasonably met such obligation, he shall order the manufacturer to take specifed action to comply with such obligation.

House Debate-Section 156

Contains nothing helpful.

House Committee Report-Section 156

House Report 93-1191, Pages 18 and 31

This bill also authorizes the Secretary to conduct informational hearings and to obtain evidence from any person who has any information relevant to the implementation of the Act. Despite the vital importance of information gathering to successful implementation of the Act, the Secretary does possess general authority for this purpose. This lack is anomalous in view of the extensive information gathering authority in the property damage reduction provisions of the Motor Vehicle Information and Cost Savings Act. This paragraph would give the Secretary similar authority in the more important pursuit of preventing traffic deaths and injuries.

SECTION 156. REASONABLENESS OF REMEDY

This section provides that upon petition of any interested person or on his own motion, the Secretary may hold a hearing in which any interested person (including a manufacturer) may make oral, as well

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