On December 4, 2015, President Obama signed H.R. 22, Fixing
America's Surface Transportation (FAST) Act, into law. The new law reauthorizes
federal highway and transit programs for five years. While most of the
attention on the legislation has focused on the new funding for transportation
infrastructure, the measure also includes significant policy changes related to
motor vehicle safety and enforcement actions by the National Highway Transit
Safety Administration (NHTSA). All automotive manufacturers and suppliers
should be aware of the following provisions included in the FAST Act. Among
other provisions, the new law will:
·Triple the maximum cap on civil
penalties for violations of motor vehicle safety standards and laws from $35
million to $105 million upon NHTSA’s certification that its final rule on civil
penalty factors has been completed.
·Pay 10% to 30% of the collected
monetary sanctions to whistleblowers for original information about possible
motor vehicle safety violations.
·Extend the time period that
automakers and tire manufacturers must pay for defect remedies for motor
vehicles and tires from 10 years to 15 years. It also extends the period
companies must retain safety records from five years to 10 years.
·Require a senior official responsible for
safety to sign and certify that submissions in response to a request for
information in a safety defect or compliance investigation do not contain any
untrue statements or omit a material fact that could make the statement
misleading.
·Increase the availability and
accessibility of safety recall information to consumers, including a
requirement that manufacturers identify and include applicable part numbers
when notifying NHTSA of safety defects or failures to comply with safety
standards.
·Incentivize dealers to check
for open recalls at the time of service for all patrons and require rental car
companies to ground vehicles that are subject to an open safety recall until
they are fixed.
·Broaden a company’s recall obligations
in the event of bankruptcy.
For more information, please contact Andrew Buczek at 202-906-8655 or
[email protected], Brendan Cahill, Director of Dykema’s Automotive Industry
Group, at 248-203-0721 or [email protected], any of the lawyers listed to the
left, or your Dykema relationship attorney. |