[Federal Register: January 24, 2008 (Volume 73, Number 16)]
[Proposed Rules]
[Page 4157-4171]
[DOCID:fr24ja08-46]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 574

[Docket No. NHTSA-2008-0014]
RIN 2127-AK11

Tire Registration and Recordkeeping

AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation (DOT).

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: Our regulation for tire identification and recordkeeping
requires manufacturer owned tire distributors and dealers to register
the names and addresses of the people to whom they sell or lease new
tires, and specifies the use of standardized paper forms for this
purpose. It also requires independent distributors and dealers to
provide purchasers with standardized registration forms they can
complete and mail to the manufacturer or its designee.
    We propose to amend the regulation by codifying existing
interpretations regarding opportunities under the regulation for
electronic registration of tire sales and leases and by creating new
opportunities. The names and addresses of purchasers and lessees are
used by a tire manufacturer to contact those people in the event that
the manufacturer must conduct a campaign to recall and remedy tires
that either fail to comply with an applicable Federal motor vehicle
safety standard or have a safety-related defect.

DATES: Comments must be received on or before March 24, 2008.

ADDRESSES: You may submit comments to the docket number identified in
the heading of this document by any of the following methods:
     Federal eRulemaking Portal: go to http://www.regulations.gov.
 Follow the online instructions for submitting

comments.
     Mail: DOT Docket Management Facility, M-30, U.S.
Department of Transportation, West Building, Ground Floor, Rm. W12-140,
1200 New Jersey Avenue, SE., Washington, DC 20590.
     Hand Delivery or Courier: West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue, SE., between 9 a.m. and 5 p.m. Eastern
time, Monday through Friday, except Federal holidays.
     Fax:<PHONE_NUMBER>.
    Regardless of how you submit your comments, you should mention the
docket number of this document.
    You may call the Docket Management Facility at<PHONE_NUMBER>.
    Privacy Act: Please see the Privacy Act heading under Rulemaking
Analyses and Notices.
    Instructions: For detailed instructions on submitting comments and
additional information on the rulemaking process, see the Public
Participation heading of the Supplementary Information section of this
document. Note that all comments received will be posted without change
to: http://www.regulations.gov, including any personal information

provided.

FOR FURTHER INFORMATION CONTACT: For non-legal issues, Mr. Jeff Woods,
Vehicle Dynamics Division, Office of Vehicle Safety Standards
(Telephone:<PHONE_NUMBER>) (Fax:<PHONE_NUMBER>). Mr. Woods' mailing
address is National Highway Traffic Safety Administration, NVS-122,
1200 New Jersey Avenue, SE., Washington, DC 20590.
    For legal issues, Ms. Dorothy Nakama, Office of the Chief Counsel
(Telephone:<PHONE_NUMBER>) (Fax:<PHONE_NUMBER>). Ms. Nakama's mailing
address is National Highway Traffic Safety Administration, NCC-112,
1200 New Jersey Avenue, SE., Washington, DC 20590.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background
    A. Tire Registration Requirements
    B. Rate of Tire Registration
    C. Increasing the Effectiveness and Reducing the Cost of Tire
Registration Through Electronic Registration
    1. 1984 Interpretation to Representative Wirth
    2. 2003 Interpretation to RMA
    3. 2005-2007 Issues Regarding Clearance of the Tire Registration
Requirements Under the Paperwork Reduction Act
II. Need for Rulemaking
III. Today's Notice of Proposed Rulemaking
    A. Tires Sold by Independent Tire Dealers--Alternative Means of
Tire Registration
    B. Tires Sold by Dealers Controlled by Tire Manufacturers--
Electronic Tire Registration
IV. Rulemaking Analyses and Notices
    A. Executive Order 12866 and DOT Regulatory Policies and
Procedures
    B. Regulatory Flexibility Act
    C. National Environmental Policy Act
    D. Executive Order 13132 (Federalism)
    E. Civil Justice Reform
    F. Paperwork Reduction Act
    G. National Technology Transfer and Advancement Act
    H. Unfunded Mandates Reform Act
    I. Plain Language
    J. Regulation Identifier Number (RIN)
    K. Privacy Act
V. Public Participation

I. Background

A. Tire Registration Requirements

    As originally enacted, the National Traffic and Motor Vehicle
Safety Act of 1966 (now codified at Title 49 U.S.C. Chapter 301 Motor
Vehicle Safety) did not include a requirement for tire registration.
However, in May 1970, Congress amended the law to mandate that every
tire manufacturer shall maintain records of the names and addresses of
the first purchaser of tires produced by that manufacturer.\1\ NHTSA
was given the authority to establish procedures to be followed by
manufacturers in establishing and maintaining such records, including

procedures to be followed by distributors and dealers to assist
manufacturers in securing the names and addresses of first purchasers.
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    \1\ Pub. L. 91-265.
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    Pursuant to this authority, in a final rule published in the
Federal Register (35 FR 17257) on November 10, 1970, NHTSA established
the initial tire identification and recordkeeping requirements of 49
CFR part 574. The rule required all tire dealers to record the name and
address of the purchaser to whom they sold the tire, along with the
dealer's name and address, and forward that information to the tire
manufacturer.
    However, under the Motor Vehicle Safety and Cost Savings
Authorization Act of 1982 (Pub. L. 97-331), Congress amended the Safety
Act to mandate that the obligations of independent distributors and
dealers be limited to giving ``a registration form (containing the tire
identification number) to the first purchaser.'' The tire purchaser
could then mail the form to the tire manufacturer. Congress also
mandated that NHTSA should prescribe a standardized registration form
and that tire manufacturers had to ensure that they gave sufficient
copies of these forms to their dealers.
    Congress adopted these amendments after the House Committee on
Energy and Commerce found in its report on the 1982 amendments that
tire dealers whose business was owned or controlled by a tire
manufacturer (these dealers accounted for just under 1/3 of tire sales)
registered between 80 and 90 percent of the tires they sold.\2\
However, independent tire dealers, which accounted for more than 2/3 of
tire sales, registered only 20 percent of the tires they sold.
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    \2\ H.R. Rep. No. 576, 97th Cong. 2d Sess. 8-9 (1982).
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    The changes mandated by the 1982 amendments were established in an
interim final rule published on May 19, 1983 (48 CFR 22572). The
regulation required tire manufacturers to provide both independent and
non-independent distributors and dealers with standardized tire
registration forms. The regulation specified the exact content of the
forms given to independent distributors and dealers. No other
information may appear on the forms.\3\ When an independent distributor
or dealer sells or leases a tire to a consumer, the distributor or
dealer must fill in the tire identification number and its name and
address on a registration form and give the form to the consumer. The
consumer may then fill in his or her name and address, add a stamp and
mail the form to the manufacturer or its designee. In a follow-up final
rule published on February 8, 1984 (49 FR 4755), the agency made slight
revisions to the tire registration form to improve its clarity and also
reduced the size of the form so that it could be mailed using post card
postage.
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    \3\ July 18, 2003 letter from Jacqueline Glassman to Ann Wilson
of RMA. Letter is available at: http://isearch.nhtsa.gov/files/onlinetireregistration.html
.

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    As part of the agency's implementation of the Transportation Recall
Enhancement, Accountability, and Documentation (TREAD) Act (Pub. L.
106-414) that was enacted on November 1, 2000, the agency increased the
tire registration record retention requirements for tire manufacturers
from three years to five years. The record retention period was
extended in a final rule published in theFederal Register (67 FR 45822)
on July 10, 2002.

B. Rate of Tire Registration

    In the Motor Vehicle Safety and Cost Savings Authorization Act of
1982, Congress directed NHTSA to conduct an evaluation after two years
of voluntary registration to determine the extent to which the
voluntary registration procedures for independent dealers were
successful in increasing the registration of tires.\4\ NHTSA was also
charged with determining the extent to which independent dealers have
encouraged purchasers to register their tires and the extent to which
independent dealers have complied with the new procedures. Finally,
NHTSA was charged with deciding whether to impose any additional
requirements to ``significantly increase'' registration of tires sold
by independent dealers.
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    \4\ See Motor Vehicle Safety and Cost Authorization Act of 1982,
Pub. L. 97-331.
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    Per that Congressional directive, NHTSA reported on its evaluation
of voluntary tire registration by independent dealers in 1985 and
1987.\5\ We found that:
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    \5\ For a discussion of NHTSA's Evaluation Reports on Voluntary
Tire Registration, see 53 FR 44632-33, November 4, 1988.
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    1. Registration rates for independent dealers declined by half,
from 18.1 percent under previous law to 9.3 percent under voluntary
registration.
    2. Registration rates for company stores had remained steady at 86
percent during this same period.
    3. Tire manufacturers had provided plenty of registration forms.
    4. There were no records of any tire registrations for more than 70
percent of the independent dealers.
    From this, NHTSA reached the conclusion that many independent
dealers did not routinely give registration forms to tire purchasers.
NHTSA stated that we did not think it would be the best use of our
enforcement resources to bring compliance actions against independent
tire dealers. Instead, NHTSA proposed in 1986 \6\ four potential steps
to improve tire registration by independent dealers:
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    \6\ Advance note of proposed rulemaking; 51 FR 45916; December
23, 1986.
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    1. Require prepaid postage on the registration form; and/or
    2. Undertake a public education campaign and a brief explanation of
the tire registration process in tire information pamphlets; and/or
    3. A central clearinghouse for all registration forms distributed
to consumers by independent dealers; or
    4. Rescind the tire registration requirements and allow tire
manufacturers to devise their own contractual ways of ensuring they
meet the statutory obligation for tire manufacturers to ``establish and
maintain records of the names and addresses of first purchasers.''
    After reviewing the pubic comments, NHTSA published a termination
of rulemaking notice in November 1988 \7\ announcing that none of the
four suggestions had been demonstrated to likely significantly increase
the level of tire registration by independent dealers under voluntary
registration. NHTSA also noted that the agency would continue to rely
on media and public announcements to alert the public of tire recalls,
so public safety would not be jeopardized by the low registration rate
for tires sold by independent dealers.
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    \7\ Termination of rulemaking; 53 FR 44621, November 4, 1988.
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    Although the agency has not conducted a subsequent evaluation, it
believes that the registration rate for tires sold or leased by
independent distributors and dealers remains largely unchanged. In a
submission sent to the agency earlier this year, the Rubber
Manufacturers Association (RMA) indicated that the return rate for the
mail-in registration cards is no more than 10 percent.\8\
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    \8\ Docket NHTSA-2006-26554-3.
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C. Increasing the Effectiveness and Reducing the Cost of Tire
Registration Through Electronic Registration

1. 1984 Interpretation to Representative Wirth
    In 1984, Representatives Wirth and Rinaldo wrote a letter to the
agency expressing several concerns. First, they noted that the agency
had stated in a recent rulemaking that the Vehicle Safety Act did not
permit independent

dealers to return the mail-in registration cards directly to the
manufacturer without first providing the form to the purchaser with the
required information filled in by the dealer. Second, they expressed
support for computerized tire registration and argued that the 1982
amendments to the Vehicle Safety Act should be interpreted as
permitting independent dealers to give the purchaser a mail-in
registration form on which they had not filled in any of the required
information if they attached to the form a copy of the computerized
invoice bearing that information.
    In its response, the agency stated while a literal interpretation
of the 1982 amendments would not permit independent dealers to do that,
under an equitable interpretation, they would be.\9\ Under the
principles of equitable interpretation, a statutory requirement need
not be literally applied in instances in which the underlying
Congressional intent is otherwise satisfied. The agency stated:
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    \9\ February 1983 letter from Diane K. Steed to the Honorable
Timothy E. Wirth. Letter is available at: http://isearch.nhtsa.gov/gm/83/1983-1.12.html
.

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    Based on the principles of equitable interpretation, we believe
that an independent tire dealer or distributor who
    (1) Registers tires by computer;
    (2) Attaches a computer-printed invoice containing all of the
information necessary for registration to a blank standardized
registration form; and
    (3) Furnishes the two documents to the customer when the tires are
purchased;

fully satisfies the tire registration amendments.
2. 2003 Interpretation to RMA
    On July 18, 2003,\10\ the agency responded to a letter from RMA
asking whether Part 574 permits tire manufacturers to offer electronic
registration in addition to the required mail-in form. RMA stated that
it wanted to provide independent tire distributors and dealers with a
supplemental form that notifies consumers that they may also register
their tires by electronic means, e.g., by directing the consumer to a
Web site or a toll-free telephone registration line. In support of its
request, RMA noted that the agency had recently concluded that child
restraint manufacturers could provide consumers with a supplemental
form encouraging electronic registration.\11\ RMA said that no more
than 10 percent of tire registration cards were being returned to the
manufacturers and that the information was often incomplete or the
writing illegible. RMA expressed the belief that offering tire
registration via the internet, by telephone or other electronic means
would improve the registration rate and aid manufacturers in fulfilling
their notification obligations.
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    \10\ July 18, 2003 letter to Ann Wilson of RMA.
    \11\ Letter to John K. Stipancich, January 3, 2003; letter to
Mark A. Rosenbaum, Esq., April 12, 2001.
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    In its response, the agency said it agreed that the rationales in
its letters relating to child restraint registration were also
applicable to tire registration. The agency concluded that Part 574
permits the provision of information about electronic registration as a
supplement to the required mail-in form for independent distributors
and dealers.
    Likewise, as to non-independent distributors and dealers, the
agency said that electronic registration could be offered to them. The
agency cautioned, however:

    This interpretation does not relieve non-independent
distributors and dealers from the requirements of section 574.8(b)
that they themselves record the purchaser's name and address, the
tire identification number(s) of the tire(s) sold, and a suitable
identification of themselves as the selling dealer on a tire
registration form and return the completed forms to the tire
manufacturers or their designees. While we would interpret Part 574
to permit non-independent distributors and dealers to accomplish
these tasks by electronic means, they may not transfer this
responsibility to consumers.
3. 2005-2007 Issues Regarding Clearance of the Tire Registration
Requirements Under the Paperwork Reduction Act
    The information collected by tire dealers from tire purchasers and
retained by tire manufacturers is considered to be a ``collection of
information'' \12\ as defined by the Office of Management and Budget
(OMB). The significance of this definition is that approval of the
``collection of information'' is subject to OMB review. OMB has
promulgated 5 CFR Part 1320 ``Controlling Paperwork Burdens on the
Public.'' OMB states that the purpose of Part 1320 is to implement the
provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. chapter
35) (PRA) concerning collections of information. The procedures
established in Part 1320 are designed to ``reduce, minimize and control
burdens and maximize the practical utility and public benefit of the
information created, collected, disclosed, maintained, used, shared and
disseminated by or for the Federal government.''
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    \12\ See 5 CFR 1320.3(a)(3).
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    Before a Federal agency can collect certain information from the
public (which includes the Federal government's directing that the
information be collected from new tire purchasers by tire dealers to
give to tire manufacturers, also called third-party information), it
must receive approval from OMB. If OMB approves a collection of
information, it assigns an OMB control number and an expiration date.
OMB will not ``approve any collection of information for a period
longer than three years.'' (See 5 CFR section 1320.12(e)(1).) The OMB
control number assigned to the Part 574 collection of information is
2127-0050. The current status of OMB's approval is available online at
http://www.reginfo.gov/public/do/PRASearch.

    Because the Part 574 collection of information requirements are
longstanding, we have, for many years, asked for and been granted, OMB
approval to collect the information. As part of the periodic process to
request OMB to renew approval of an existing collection of information,
on December 28, 2005, we published in the Federal Register (70 FR
76909) an announcement that NHTSA planned to ask OMB for a renewal of
approval to collect the Part 574 information, and sought public comment
on the proposed renewal.
    We received two comments in response. The first was from the
National Automobile Dealers Association (NADA). NADA represents 20,000
franchised automobile and truck dealers that act as independent tire
dealers when they sell tires to consumers under differing situations.
The second comment was from Tire Recall Registry, Inc. (TRR). It raised
several issues, most of which were related to its advocating electronic
registration of tires. TRR cited the July 18, 2003 NHTSA interpretation
letter to RMA in which NHTSA stated that information about and
opportunities for electronic registration could be used to supplement
the paper form specified by Part 574. TRR stated its belief that
requiring paper forms resulted in an unnecessary burden under the OMB
regulations at 1320.3(b)(1), given that electronic means could be used
instead, thus reducing the collection of information burden.
    On August 31, 2006, OMB renewed the collection of information for
Part 574 for a period of six months, instead of three years due to its
concerns about the burdens associated with tire registration. OMB posed
several questions for the agency to answer regarding DOT's compliance
with PRA requirements, the effectiveness rates of

the tire registration requirements, possible means to reduce the
paperwork burden and encourage tire dealers and purchasers to register
tires by permitting electronic registration, and a discussion of
alternatives that might be permitted for electronic registration,
including the use of electronic registration in lieu of the paper mail-
in form. The questions were to be answered as part of NHTSA's next
request to renew the Part 574 collection of information. On December 8,
2006, NHTSA published a Federal Register document (71 FR 71238) \13\
seeking comments on the OMB questions and proposing to renew the Part
574 collection of information.
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    \13\ Docket No. NHTSA-06-26554.
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    In response to the December 2006 document, five organizations
submitted comments. In addition to comments from RMA and NADA, comments
were submitted by Computerized Information and Management Services,
Inc. (CIMS), National Tire Registry Recall.com (NTRR), and the Tire
Industry Association (TIA). Except for CIMS, all commenters supported
efforts to expand the methods of registering new tire purchaser
information to include Web site registration by the purchaser and
electronic registration performed by independent tire dealers.
    RMA stated that the continued registration of new tire purchasers
is a critically important safety issue so that purchasers can be
notified in the event of a product recall or other safety problem. It
urged NHTSA to either interpret or revise Part 574 to allow an
electronic alternative to the current paper card system. RMA said that
it has data showing that less than 10 percent of tire registration
cards [from independent tire dealers] are currently being returned to
the tire manufacturer and many of these cards are inaccurate,
incomplete, or illegible. RMA asked NHTSA to interpret or amend the
current regulations in the following areas:
    1. Modify Part 574 to permit tire distributor or dealer either (a)
to provide consumer with the paper registration form bearing
instructions about the opportunity to register the tires at the tire
manufacturer's Web site or (b), on a voluntary basis, to register the
tires electronically at point of sale (without having to provide any
type of registration form to the consumer).
    2. The current regulation only requires [independent] distributors
to provide the form to first purchasers with the tire identification
number and the dealer's name and address. Any revisions to the
regulations to permit electronic or point-of-sale registration should
not create any new or additional obligations for tire dealers or
distributors by requiring them to register the tires.
    3. The tire manufacturer's obligations should remain the same. They
should only be required to continue to provide the paper forms to tire
dealers and distributors and, upon receipt of the forms, retain the
purchaser information for five years.
    4. Through a NHTSA interpretation letter, a supplemental form
regarding electronic tire registration is permitted. However, the
agency should amend its regulations to permit information about such
registration to be placed directly on the existing paper registration
form.
    NADA generally supported the RMA comments regarding permitting Web
site registration of tires, and referred to the agency's provisions for
electronic registration of child safety seats in 49 CFR 571.213 as
being instructive in this regard. In addition to allowing registration
by Web site or fax, NADA stated that tire dealers should also be
permitted to register the tires for the purchaser, upon obtaining
permission or a release from the purchaser to do so.
    NADA noted that it has stated in the past that franchised
automobile and truck dealers act as independent tire dealers as well.
Commenting on past NHTSA announcements of intent to renew the Part 574
collection of information, NADA questioned in those prior renewals, and
also in the current one, NHTSA estimates of 12,000 new tire dealers and
distributors, when NADA stated that there are 20,000 franchised
automobile and truck dealers.
    CIMS stated that it provides tire registration services to over 80
percent of tire manufacturers/brand owners in the replacement tire
market and to over 12,000 tire dealers and distributors. CIMS is
opposed to making changes to the existing tire registration
regulations. CIMS stated that the current tire registration regulations
are working, and that independent tire dealers using the CIMS All Brand
Form can comply with the tire registration regulation for one penny or
less per tire. It stated that allowing electronic registration of tires
will only cause more confusion, will remove the tire purchasers' rights
and ability to ensure that their tires are registered, and will
increase the liability of independent tire dealers if the tire
registration information is not completely transmitted to the tire
manufacturer or if they jeopardize the privacy of tire purchaser
information.

    CIMS indicated that tire registrations by year are as follows:

1997--37,000,000
2000--41,000,000 (Prior to Ford/Firestone recall)
2003--54,000,000 (Corresponds with NHTSA estimates, Docket No. 06-
26554)
2006--59,000,000

    CIMS stated that there will be added costs associated with
electronic tire registration including developmental costs, software
upgrades and employee training. CIMS did not provide any specific cost
estimates.
    NTRR stated its belief that changes are needed and that electronic
registration would enhance public safety, and would be consistent with
Paperwork Reduction Act priorities. NTRR stated that allowing
electronic registration as an alternative, not merely as a supplement,
would improve registration rates over the current methods. NTRR stated
that the July 18, 2003 interpretation letter from NHTSA to RMA leaves
unanswered the extent to which electronic registration and other
alternatives to paper forms can be used in compliance with 49 CFR part
574. NTRR also stated that the tire registration form specified in Part
574 does not display the required OMB control number, and suggested
that NHTSA does not adequately address privacy and confidentiality
concerns under the PRA.
    TIA stated that it has worked closely with the RMA in reviewing the
need to revise the current tire registration regulations in 49 CFR part
574, and that it agrees with the four principles identified by RMA for
revisions to the regulations. TIA stated that any revisions to the
regulations should not create any new or additional obligations for
tire dealers and thus should not require the tire dealers to register
the tires. TIA stated that many TIA member tire dealers endorse
electronic registration and are making electronic registration of new
tires possible. TIA recommended that NHTSA adopt the changes
recommended by RMA as quickly as possible.
    In an additional Federal Register document on March 21, 2007 (72 FR
1334) \14\ in which we asked that if the public had additional
comments, to provide the comments directly to OMB by April 20, 2007, we
provided a summary of the comments in response to the December 2006
document. In this March 2007 document, NHTSA specifically stated that
we are:

    \14\ Docket No. NHTSA-06-26554.

    * * * considering revisions to update 49 CFR part 574 to
provide, to the extent consistent with the agency's authority,
allowances for electronic and other possible means of registering
new tires at the point of

sale. First, the agency will consider the inclusion of Web site
registration information to be placed on the tire registration form
in 574.7. Second, the agency plans to update the registration form
to include the OMB control number. Third, the agency will fully
evaluate what appropriate regulations are permissible to allow
independent tire dealers to electronically register the tires on a
voluntary basis for the consumer, within the requirements specified
in Title 49, U.S.C. Chapter 301, Section 30117--providing
information to, and maintaining records on, purchaser.
    Therefore, the agency will undertake rulemaking in 2007 to
address these issues and provide the public with the opportunity to
comment on the proposed changes. (See 72 FR at page 13345)

As stated in the March 2007 notice, the agency is now proceeding with
rulemaking to consider allowing registration via the internet or other
electronic means for new tire purchasers.

II. Need for Rulemaking

    NHTSA is proposing to amend the Part 574 tire registration
procedures to facilitate internet and other electronic registration of
tires, including voluntary registration of tires by independent tire
dealers. We believe this rulemaking is needed to ensure that the
regulation permits, to the extent consistent with the agency's
authority, the use of new technologies in registering tires. In
addition to potentially reducing costs, the procedures could also
result in improved tire registration rates. A higher new tire
registration rate would help in the identification of first purchasers
of defective or nonconforming tires, so that the purchasers may take
appropriate action in the interest of motor vehicle safety. As
described below, NHTSA's most recent data on tire registration rates
were included in a termination of rulemaking notice published in the
Federal Register on November 4, 1988 (53 FR 44632).
    As discussed earlier, NHTSA found in a 1985 study that under the
mandatory tire registration program for independent tire dealers, the
registration rate was 18.1 percent. In 1987, NHTSA found that, under
the voluntary independent tire dealer registration program, the tire
registration rate among independent tire dealers had decreased to 9.5
percent. If the number of tires registered using computers is
subtracted from 9.5 percent, the return rate for paper tire
registration forms was only 8 percent. In 1987, the tire registration
rate for tires sold by company-controlled dealers was found to be
greater than 86 percent.
    We have not performed additional surveys on tire registration rates
since 1987. However, February 6, 2007 comments from RMA stated that
``no more than 10 percent of tire registration cards are currently
returned to manufacturers and a significant number of these cards are
inaccurate, incomplete or illegible.'' Thus, regarding the response
rate to paper forms for new tires sold through independent dealers, the
agency believes that tire registration rates have not changed
substantially for the past 20 years.
    For these reasons, the agency does not agree with those that
believe the current paper-form based tire registration program is
effective. Even if electronic registration does not result in
significantly more purchaser responses (for new tire sales through
independent dealers), NHTSA believes the overall effectiveness rate of
tire registration would improve, because voluntary electronic
registration would eliminate illegibility or other ambiguity caused by
hand-written information. For purchasers who do not like to fill in
information by hand, electronic registration could also reduce the
overall burden of registration.

III. Today's Notice of Proposed Rulemaking

    After carefully reviewing the public comments to NHTSA's December
2006 publication of the announcement of its request to OMB to extend
approval of the Part 574 tire registration collection of information,
we have concluded that Part 574 should be amended to facilitate
internet and other electronic registration of tires, including
voluntary registration of tires by independent tire dealers. Our
proposal follows an approach similar to the ones suggested by RMA and
NADA.
    Specifically, under our proposal:
     Independent tire dealers could, in lieu of providing a
paper registration form to the consumer, voluntarily register a tire by
internet or other electronic means, so long as such means were
authorized by the tire manufacturer. These dealers would also have the
option of providing to the consumer the mailable standardized paper
registration form that includes the tire identification number (TIN)
and the dealer's name and address (this is the current requirement set
forth in Part 574), or using the same standardized paper registration
form, but voluntarily completing the form and registering the tire by
sending the form to the tire manufacturer or its designee.
     The standardized paper registration form would be
permitted to identify a Web site authorized by the tire manufacturer at
which the consumer could register the tires instead of mailing in the
form.
     We are proposing to remove the figures showing the
standardized paper registration form from the CFR. Some requirements
that were expressed by referring to the forms in the regulatory text
would be added to the regulatory text, but the regulation would no
longer specify as many details concerning the format of the forms.
     We are also proposing regulatory text that would make it
clear that dealers owned or controlled by tire manufacturers may
register tires by electronic means, consistent with a past
interpretation. The figure showing the form used for these tires would
also be removed.
    Our proposal would not impose new obligations on tire dealers or
tire manufacturers. Instead, it would accommodate and facilitate
internet and other electronic registration of tires, including
voluntary registration of tires by independent dealers. We note that
are proposing a provision that would clarify that tire manufacturers
must meet requirements concerning retention of information for
registration information submitted to them by electronic or other means
they authorize, in addition to that submitted to them on the
standardized paper forms.
    The details of our proposal are discussed below.

A. Tires Sold by Independent Tire Dealers--Alternative Means of Tire
Registration

    As noted in our March 2007 document, we are considering revisions
to update 49 CFR part 574 to allow, to the extent consistent with the
agency's authority, for use of electronic and other possible means of
registering new tires at the point of sale.
    The statutory requirements relevant to independent tire dealers are
found at 49 U.S.C. 30117(b)(2)(B), which reads as follows:

    The Secretary shall require each distributor and dealer whose
business is not owned or controlled by a manufacturer of tires to
give a registration form (containing the tire identification number)
to the first purchaser of a tire. The Secretary shall prescribe the
form, which shall be standardized for all tires and designed to
allow the purchaser to complete and return it directly to the
manufacturer of the tire. The manufacturer shall give sufficient
copies of forms to distributors and dealers.

Not surprisingly, given the pre-internet date of enactment of the
statute, the statutory provision appears to contemplate a mail-in paper
form (``the

manufacturer shall give sufficient copies of forms to distributors and
dealers''). Also, the legislative history (House report) \15\ refers to
forms that are suitable for mailing and addressed to the manufacturer
or its designee.
---------------------------------------------------------------------------

    \15\ H.R. Rep. No. 97-576, p. 8.
---------------------------------------------------------------------------

    One relevant issue is the effect of voluntary tire registration by
independent tire dealers on their obligations under section
30117(b)(2)(B). While the statute provides for a program in which
purchasers of tires from independent tire dealers may register their
tires by returning a form to the tire manufacturer, NHTSA's letter to
Congressman Timothy Wirth \16\ addressed the situation in which
independent tire dealers may wish to register tires voluntarily for
consumers. Invoking the principles of equitable interpretation, the
agency concluded that voluntary registration would partially relieve
independent dealers of their statutory obligations. Under those
principles, a statutory requirement need not be literally applied in
instances in which the underlying Congressional intent is otherwise
satisfied. More specifically, the agency stated:
---------------------------------------------------------------------------

    \16\ February 1983 letter from Diane K. Steed to the Honorable
Timothy E. Wirth. Letter is available at: http://isearch.nhtsa.gov/gm/83/1983-1.12.html
.

    Based on the principles of equitable interpretation, we believe
that an independent tire dealer or distributor who (1) registers
tires by computer; (2) attaches a computer-printed invoice
containing all of the information necessary for registration to a
blank standardized registration form; and (3) furnishes the two
documents to the customer when the tires are purchased; fully
---------------------------------------------------------------------------
satisfies the tire registration amendments. * * *

    While, as discussed below, we now believe that this interpretation
goes to some extent beyond what is necessary to satisfy Congressional
intent, we believe the basic principle is correct. In particular, if an
independent tire dealer voluntarily registers tires for the consumer,
it serves no purpose to require the full procedures necessary to enable
consumers to also register those tires.
    Several other issues are whether the statute can be interpreted to
permit the use of electronic forms in lieu of paper forms and, assuming
that the answer to that issue is ``yes,'' the meaning of the statutory
command to ``* * * give a registration form (containing the tire
identification number) to the first purchaser * * *'' in the context of
electronic forms. As to the term ``form,'' it could be interpreted
broadly enough to include electronic as well as paper forms,
notwithstanding the statutory language and legislative history
mentioned above that suggests the forms are to be paper ones.
    As to the term ``give,'' it could readily be interpreted in the
context of the statute to mean physically provide either ``take away''
means of registration (i.e., mailable form) or means of ``on-the-spot''
registration (i.e., an in-store computer terminal accessible to
purchaser). It is not apparent how the term could be further
interpreted to mean simply inform the purchaser about the opportunity
to use means not physically present in the dealer's store (e.g., use of
a computer terminal located at the purchaser's home or elsewhere.) It
is even less apparent how such further interpretation could be given
the term ``give'' given the additional requirement that the form given
the purchaser ``* * * contain the tire identification number * * *''
    A possible scenario that could be viewed as meeting all of the
statutory requirements would be one in which the purchaser was provided
access to a computer at the dealership where the screen showed the form
with the tire identification numbers already filled in, and the
purchaser could register the tires with the manufacturer by entering
his or her name and address and clicking on a button to register the
tires. We do not know whether manufacturers and dealerships would be
interested in an option along these lines, but note that we are
requesting comments below on this type of approach. We also note that a
number of approaches for electronic registration by purchasers would
appear not to meet these statutory requirements, but could be viewed as
supplemental means of transmitting tire registration to manufacturers.
    In light of the above discussion and in considering alternative
means for registration of tires sold by independent dealers, we
believe: (1) The regulation must include a basic procedure consistent
with the statutory requirement that enables purchasers of tires from
independent tire dealers to register their tires by returning a form
with the TIN already filled in to the tire manufacturer; (2) the
regulation may provide options under which an independent tire dealer
may voluntarily register tires for consumers, in which case the dealer
need not meet the full procedures necessary to enable consumers to
register those tires; and (3) the regulation may accommodate means that
tire manufacturers may provide for tire registration (e.g., internet
registration) that consumers may use instead of mailing in the form.
    Voluntary registration by independent dealers.
    As indicated above, after reviewing our 1984 interpretation to
Congressman Wirth, we now believe that it went to some extent beyond
what was necessary to satisfy Congressional intent. In particular, the
agency believes that electronic registration of the tires by
independent dealers would satisfy the statutory requirements, without
the need to provide an additional blank form to the purchaser. The
purpose of the statutory requirement is to enable the purchaser to
register the tire purchase with the manufacturer. As such, if the
dealer registers the tires electronically for the purchaser and
provides a blank form to the purchaser, confusion could result, since
the purchaser might think there was a need to submit the paper form to
the manufacturer.
    Regarding the statement in the interpretation that the purchaser be
given a computer-printed invoice with the information on the tire
registration paper form, the agency now believes that statement also
exceeds what is necessary. The tire registration information is kept by
the tire manufacturer (or its designee). There is no need for the
dealer or purchaser to retain that information, and NHTSA has no record
retention requirement for either tire dealers or tire purchasers.
Instead of duplicating the required information on the invoice given to
the purchaser, the agency believes that a written statement on the
invoice regarding the registration of the tires by the dealer would be
sufficient to inform the consumer that the tires have been registered.
    We are therefore proposing that independent tire dealers have the
option of voluntarily electronically registering tires with the tire
manufacturer. We note, however, that whether this option can be used
depends on the tire manufacturer's providing a means to receive this
information electronically, or designating an agent to do so for it.
The agency is not aware of what specific means might be used to provide
electronic registration, such as specific software that identifies tire
sales and then automatically uses the internet to transmit the
information to the tire manufacurer or its designee. However, the
agency believes that many company-controlled tire dealers have
autonomous systems in place to register the tires as part of the sale
transaction. Such systems do not require additional or separate actions
by sales personnel to register the tires. The agency welcomes
additional details on the methods that are currently in place and also
other

methods that might be used, including how independent tire dealers may
be able to register tires electronically.
    Our proposal also includes an option in which independent tire
dealers could use the standardized paper registration form, but
voluntarily complete the form and register the tires by sending the
form to the tire manufacturer or its designee.
    One issue that arises with independent dealers being permitted to
register tires voluntarily for consumers is whether they could charge a
separate registration fee. We have tentatively concluded that this
should not be permitted, as it could discourage registration and cause
confusion. We request comments on this issue.
    Another issue that arises with electronic registration of tires is
the security of the information being transmitted. The proposed
regulatory text would require that electronic registration be by secure
means, e.g., use of https on the web. We request comments on the need
for such a provision, and whether it should be more specific. We note
that in September 2005 we decided not to include an ``encryption''
requirement for electronic registration of child safety seats.\17\ We
may or may not adopt a requirement concerning secure means for
electronic registration of tires, but would like to have the benefit of
public comments before reaching a decision.
---------------------------------------------------------------------------

    \17\ 70 FR 53569, 53572-73, September 9, 2005.
---------------------------------------------------------------------------

    Regarding CIMS' comment that additional burden would shift to the
tire dealer if it decided to use electronic registration, NHTSA notes
that registration by independent tire dealers would be voluntary.
Nothing in this rulemaking would require independent tire dealers to
register tires for the purchaser.
    NADA's comments regarding an optional electronic registration
program stated that the tire dealer should obtain permission or a
release from the purchaser before being permitted to register the tires
on behalf of the purchaser. The agency believes that this would create
an additional collection of information or other burden that would not
be necessary if, instead, a registration statement is provided to the
purchaser indicating that the tire dealer is performing tire
registration for the purchaser. We also observe that such releases are
not required for tire dealers controlled by tire manufacturers, which
are required to register tires for consumers.
    For the new electronic registration requirements, NHTSA also
proposes to permit the tire manufacturer to designate a third party to
collect or store the tire registration information. Such third party
designation is currently allowed for the paper registration forms under
574.7, and NHTSA is not aware of any reason not to extend third party
designation to electronic tire registrations methods. Since we do not
have any detailed information on how designees would collect and retain
tire registration information, the agency welcomes additional details
that would assist the agency in establishing requirements.
    Alternative means of registration by tire purchasers.
    Consistent with our interpretation letter to RMA, we are including
in the proposed regulatory text a provision stating that tire
manufacturers may voluntarily provide means for tire registration via
the internet, by telephone or other electronic means.
    RMA and NADA commented that the tire registration paper form should
be allowed to include instructions for purchasers about registering
tires directly on the tire manufacturer's Web site. NADA stated that
the electronic registration provisions for child safety seats in FMVSS
No. 213 are instructive about the value of permitting this. TIA stated
that it agreed with the four principles for new tire registration
requirements described by RMA (one of which is to allow Web site
registration). NTRR's comments did not specifically address putting Web
site information on the paper form.
    The agency tentatively agrees that including, at the tire
manufacturer's option, a Web site address for purchasers to register
tires could facilitate registration for tire purchasers, and also
improve the quality of information received by the tire manufacturer.
As RMA stated, many of the paper registration forms that are received
by tire manufacturers are inaccurately filled out, incomplete, or
illegible. By allowing purchasers to type in the information directly
on the tire manufacturer's Web site, the issue of illegibility should
be eliminated.
    NHTSA checked several tire manufacturers' Web sites, for both
widely-known tire brands and lesser-known tire brands, and found in all
but one case that the tire manufacturers already have Web site-based
tire registration capability. Inclusion of Web site registration
information would be performed at the option of the tire manufacturer.
We are proposing simple text to keep information on the form to a
minimum: ``Instead of mailing this form, you can register online at
[insert tire manufacturer's Web site address]''. This proposed language
deviates slightly from the FMVSS No. 213 text that includes references
to registering online on both sides of the form, although the text on
the mailing label side of that form is on a part of the form that is
removed prior to mailing. However, the tire registration form is not of
that design, and much of the form space is needed for recording the
tire identification numbers. We welcome comments on the proposed text
and location of the optional Web site registration information.
    We request comments on whether information about other possible
means of supplemental registration should be permitted to be placed on
the tire registration paper form. We note, as indicated above, that the
available space on the form is limited.
    Other possible options for tire registration.
    We request comments on whether the regulation should specify
additional options for registering tires sold by independent tire
dealers that would be consistent with our statutory authority. We
intend for the scope of this proposal to be broad and, depending on the
comments, may adopt additional options in the final rule.
    We note that, as indicated above, it is our goal to accommodate and
facilitate internet and other electronic registration of tires,
including voluntary registration of tires by independent dealers. We
also note that since additional options would also be voluntary, there
is no reason to specify ones that would be unlikely to be used by
independent tire dealers, tire manufacturers, and/or consumers.
    We seek comment on whether there should be some type of option in
which independent tire dealers might be able to use electronic forms in
lieu of paper forms to enable consumers to register their tires. Such
an approach might, for example, involve independent tire dealers
setting up computer terminals at their dealerships in which tire
purchasers would see a form on the computer screen with the TIN and
possibly other information already filled in, which tire purchasers
could use to register their tires. We note that if such an approach
involved the consumer's being given the electronic form with the TIN
filled in, the approach could, consistent with the requirements of 49
U.S.C. 30117(b)(2)(B), be an option that independent tire dealers could
use in lieu of paper forms. We also note that if such an option were
permitted in lieu of paper forms instead of as a supplement, the
electronic form would need to be standardized.
    We specifically request that any commenters recommending additional
options for tire registration, beyond

those in the proposed regulatory text, provide specific recommended
regulatory text for those additional options.

Registration forms.

    As discussed above, for tires sold by independent tire dealers,
NHTSA is required by statute to prescribe a standardized tire
registration form for all tires. Specifically, 49 U.S.C. 30117(b)(2)(B)
provides ``(t)he Secretary shall prescribe the form, which shall be
standardized for all tires * * *''
    The statute provides that tire manufacturers must give sufficient
copies of the registration forms to distributors and dealers. Also,
Part 574.8 permits distributors and dealers to use registration forms
obtained from other sources.
    Pursuant to the requirement to prescribe a standardized tire
registration form, NHTSA has adopted requirements through rulemaking
and placed them in Part 574. The details of some of the requirements,
including size and data elements, are set in the regulatory text. The
details of certain other requirements are not set out in the regulatory
text. Instead, the regulatory text requires that forms conform in
content and format to the forms depicted in the figures included in
Part 574. See 574.7(a)(2).
    To promote flexibility, we are proposing to remove the figures
showing the forms in Part 574. To ensure that the forms remain
standardized, we are proposing to add some requirements to the
regulatory text that are currently expressed by referring to the
figures, but with fewer details concerning format. We are also
proposing to update the size standards to reflect the current U.S.
Postal Service's ``Domestic Mail Manual'' (Updated 12-6-07) at Section
6.3 ``Cards Claimed at Card Rates'' that specifies physical standards
that postcards must meet in order to be eligible for mailing at card
rates.
    Under our proposal, on the address side of the form, the following
would continue to be required to be provided: The name and address of
the manufacturer or its designee, and, in the upper right hand corner,
the statement: ``Affix a postcard stamp.''
    The other side of the form would continue to include the tire
manufacturer's name (unless it already appears on the address side),
and the statement: ``IMPORTANT, In case of a recall, we can reach you
only if we have your name and address.'' There would also continue to
be a statement indicating that sending in the card will add a person to
the manufacturer's recall list. However, the regulation would no longer
specify that the statement indicate that a person ``must'' send in the
card to be on the recall list, since manufacturers may provide
alternative means of registering tires.
    Under our proposal, if a tire manufacturer provides a Web site
where its tires can be registered, it may (but is not required to)
include the following sentences: ``Instead of mailing this form, you
can register online at [insert tire manufacturer's registration web
site address]''.
    The form would also include the admonition: ``Do it today.''
    The form would also continue to include space for recording the
tire identification numbers for six tires. There would also continue to
be shading to distinguish between areas of the form to be filled in by
sellers and customers.
    As indicated above, under our proposal, the regulation would no
longer specify as many details concerning the format of the form.
    We request comments on the removal of these figures and on what
requirements expressed by reference to the figures should be added to
the regulatory text.
    Registration rates.
    We request comments on the current registration rates of tires sold
by independent tire dealers. Commenters are asked to provide
information concerning the total number of such tires that are sold and
the number of those tires that are currently being registered by each
alternative means, e.g., the number of tires registered by returning
the paper form, the number registered using the tire manufacturer's Web
site, etc. The agency requests that commenters provide the specific
basis for any numbers or rates that are provided. We also request
comments on how and why these registration rates may change if the
agency adopts this proposed rule.
    Other issues.
    We request comments on other issues related to our proposal. As
indicated above, we intend the scope of this proposal to be broad.
    We specifically invite comments related to NHTSA's provisions for
electronic registration of child safety seats in S5.8.2 of FMVSS No.
213. See final rule published in the Federal Register (70 FR 53569) on
September 9, 2005.\18\ The agency considered a number of issues related
to electronic registration and electronic registration forms in that
rulemaking. To what extent should the requirements we adopt related to
electronic registration of tires be similar/different from the ones we
adopted for child safety seats, and why?
---------------------------------------------------------------------------

    \18\ Docket NHTSA-2005-22324.
---------------------------------------------------------------------------

B. Tires Sold by Dealers Controlled by Tire Manufacturers--Electronic
Tire Registration

    The tire registration form in Figure 4 of Part 574 is the form that
is to be filled out by company-controlled tire dealers and returned to
the manufacturer upon the sale of new tires. We note that we have no
data on the continued use of this form, or what percentage of company-
controlled dealers continue to use this form versus submit the
registration information to the tire manufacturer using electronic
means.
    As noted above, the agency has previously provided an
interpretation letter to the RMA (July 18, 2003 agency letter) stating
that while company-controlled dealers are permitted to register tires
electronically:

    This interpretation does not relieve non-independent distributors
and dealers from the requirements of section 574.8(b) that they
themselves record the purchaser's name and address, the tire
identification number(s) of the tire(s) sold, and a suitable
identification of themselves as the selling dealer on a tire
registration form and return the completed forms to the tire
manufacturers or their designees. While we would interpret Part 574 to
permit non-independent distributors and dealers to accomplish these
tasks by electronic means, they may not transfer this responsibility to
consumers.

    In this NPRM, NHTSA is proposing to include a provision expressly
reflecting this existing option in the Part 574 requirements.
Specifically, NHTSA proposes that electronic means be permitted as an
alternative to the paper registration forms specified in S574.7(b). As
earlier stated, we have little information on how these systems are
configured, so we are proposing simple language and we welcome comments
on alternative language.
    As to Part 574's requirements for these forms, requirements
concerning data elements are set forth in the regulatory text, and the
regulatory text also specifies that the forms must be similar in format
and size to that in Figure 4. We note that the statutory requirement
that NHTSA prescribe a standardized tire registration form does not
apply to ones for tires sold by dealers controlled by tire
manufacturers.
    To promote flexibility, we are proposing to remove Figure 4 showing
the registration forms to be used. We are proposing to add several
requirements

currently expressed by reference to the figure, and otherwise leave all
other details to the tire manufacturer. Under our proposal, the form
would continue to be required to include:
     A statement indicating where the form should be returned,
including the name and mailing address of the manufacturer or its
designee.
     The tire manufacturers' logo or other identification, if
the manufacturer is not identified as part of the statement indicating
where the form should be returned.
     The statement: ``IMPORTANT; FEDERAL LAW REQUIRES TIRE
IDENTIFICATION NUMBERS MUST BE REGISTERED.''
    We request comments on the removal of this figure and on what
requirements expressed by reference to the figure should be added to
the regulatory text.

VI. Rulemaking Analyses and Notices

A. Executive Order 12866 and DOT Regulatory Policies and Procedures

    NHTSA has considered the impact of this rulemaking action under
Executive Order 12866 and the Department of Transportation's regulatory
policies and procedures. The Office of Management and Budget reviewed
this rulemaking document under E.O. 12866, ``Regulatory Planning and
Review.'' This rulemaking action has been determined to be significant
under the DOT Policies and Procedures because of public interest.
    In this document, NHTSA is proposing to amend Part 574 by
permitting collection of the names and addresses of first purchasers of
new tires by internet and other computerized means. Nothing in the
proposed rule, if made final, would require any tire dealer to use
these new procedures. All collection of the names and addresses of
first purchasers of new tires may continue to be collected as at
present. However, we believe that permitting electronic means of tire
registration will increase the rate of registrations, which will in
turn increase the effectiveness of future tire recalls and thus improve
motor vehicle safety.
    There would be some cost impacts, in terms of time and/or money,
associated with increased registrations of tires by electronic means.
Since the options we are proposing are voluntary, we do not know to
what extent they will be utilized by independent tire dealers and tire
manufacturers. However, we are providing analysis to show the potential
cost impacts.
    Increased registrations by consumers using the internet.
    Under the proposed rule, tire manufacturers can provide, on a
voluntary basis, internet registration information on the tire
registration form that is given to purchasers by independent tire
dealers. Consumers could then register their tires online instead of
filling out the paper form and mailing it to the tire manufacturer or
its designee. The cost of printing this information on the form is
negligible, and therefore there would be no cost increase to tire
manufacturers that are responsible for printing the forms and providing
them to independent tire dealers. However, the tire manufacturers
offering the option of internet-based tire registration on their Web
sites would incur some cost to include a registration site. The agency
has found that most tire manufacturers already have tire registration
sites included on their Web sites. This method of registration would
save consumers the cost of a postcard postage stamp, and it would save
costs for tire manufacturers because they (or their designee) would not
have to transcribe the information on the paper forms into a tire
registration data base.
    In the table which follows, we are providing estimates of the
monetized costs associated with various rates of increased tire
registration using the internet. Under this scenario, paper forms would
continue to be provided to purchasers, but the additional registrations
would occur via the internet rather than by the forms being mailed in.
Therefore, although tire registrations would increase, mailing and
other paperwork costs would remain the same. We are assuming, for
purposes of these estimates, that the costs associated with the current
level of tire registration would not change. The additional costs
associated with this scenario would be the time consumers spent
registering tires via the internet that they otherwise would not
register. We also assume that because the tire registration information
is collected using purely electronic means, there would be no
additional labor burden for the tire manufacturer for recordkeeping
associated with these additional registrations. To monetize the costs
of consumers filling out paper forms or using the internet, a labor
rate of $14.61 per hour is used.\19\
---------------------------------------------------------------------------

    \19\ The median hourly rate among all occupations, May 2006,
according to the Bureau of Labor Statistics; see http://www.bls.gov/oes/current/oes_nat.htm#b00-0000
.

  Consumer Cost Projections Associated With Increased Tire Registrations With Consumers Registering Tires Using
                                                  the Internet
----------------------------------------------------------------------------------------------------------------
                                                                  Future tire registrations using internet-based
                                                                             registration by consumers
                                                   Current tire  -----------------------------------------------
                                                   registrations    10 percent      15 percent      20 percent
                                                                     increase        increase        increase
----------------------------------------------------------------------------------------------------------------
Consumer Hour Burden Estimates:
    Number of Consumers.........................      10,000,000      11,000,000      11,500,000      12,000,000
    Total Tire Registrations....................      54,000,000      59,400,000      62,100,000      64,800,000
    Tire Registration Hours.....................         225,000         247,500         258,750         270,000
     $14.61/Hour................................
----------------------------------------------------------------------------------------------------------------

    Voluntary registration by independent tire dealers.
    Under the proposed rule, independent tire dealers could voluntarily
register tires for consumers, if this was authorized by the tire
manufacturer. Dealers that did this would incur additional costs to
upgrade their computer systems, with both initial startup costs and
then costs for periodic maintenance of the systems. We assume that many
independent tire dealers, especially the larger ones, already collect
tire purchaser information as part of the sales process. For these
manufacturers, we believe it may be possible to upgrade the sales
system to include automatic electronic registration on behalf of the
purchaser. We do not know the details of how this process may work,
which would be up to the

tire manufacturer and the independent tire dealers. The process might
also include companies designated by the tire manufacturers to provide
services in this area. We also do not know what actual startup and
annual costs might be to independent tire dealers. However, once these
systems are installed, tire registration rates would be 100 percent for
tires sold through these dealers. This compares with overall current
registration rates of 10 percent for tires sold through independent
dealers.
    The costs associated with voluntary tire registration by
independent tire dealers would be offset, or partially offset, by the
fact that these dealers would no longer need to provide paper forms to
consumers, or fill out these forms with tire identification numbers.
    The agency has estimated that there are a total of 59,000 tire
dealers in the U.S., including 13,000 that are company-controlled
dealers. The remaining 46,000 tire dealers include 20,000 car and truck
dealers and 26,000 independent tire dealers.
    There are two unknowns for estimating the cost impacts on
independent tire dealers--how many independent dealers would
voluntarily upgrade computer systems to register tires, and what the
cost of these computer systems would be in terms of initial cost and
annual maintenance. Each year, a number of independent dealers will
install or upgrade computer systems, and they continue to maintain
their systems in subsequent years. We will assume that an initial
installation cost of providing an upgraded system is $750 and that
annual maintenance thereafter is $200. We do not know whether each tire
manufacturer would work directly with each independent tire dealer, or
whether third party designees would provide an interface service for
all tire manufacturers and independent tire dealers. We note that third
party designees could provide efficiencies of having a single contact
company that could be the interface for an independent tire dealer and
multiple tire manufacturers.
    We are providing cost estimates assuming that 30 percent of
independent tire dealers would participate in such a voluntary program,
with 10 percent beginning the first year (4,600 dealers), an additional
10 percent beginning the second year, and the third 10 percent
beginning the third year. These costs can be summarized as follows:

----------------------------------------------------------------------------------------------------------------
                                          Startup costs for       Annual  maintenance
                Year                      computer systems               costs                  Total cost
----------------------------------------------------------------------------------------------------------------
2009................................  $3.45 M.................  0......................  $3.45 M
2010................................  3.45 M..................  $0.92 M................  4.37 M
2011................................  3.45 M..................  1.84 M.................  5.29 M
2012 and Beyond.....................  0.......................  2.76 M.................  2.76 M
----------------------------------------------------------------------------------------------------------------

    Since the proposed rule, if made final, would establish collection
of information procedures that would be used entirely at the discretion
of the tire dealer, and the estimated paperwork burdens of tire dealers
electing to use these procedures are not expected to exceed $100
million annually, the agency does not consider this rulemaking to be
``economically significant,'' as defined by E.O. 12866. Thus, it has
not prepared a full regulatory evaluation.

B. Regulatory Flexibility Act

    Pursuant to the Regulatory Flexibility Act (5 U.S.C. 601, et seq.,
as amended by the Small Business Regulatory Enforcement Fairness Act
(SBREFA) of 1996), whenever an agency is required to publish a notice
of rulemaking for any proposed or final rule, it must prepare and make
available for public comment a regulatory flexibility analysis that
describes the effect of the rule on small entities (i.e., small
businesses, small organizations, and small governmental jurisdictions).
The Small Business Administration's regulations at 13 CFR part 121
define a small business, in part, as a business entity ``which operates
primarily within the United States.'' (13 CFR Sec.  121.105(a)). No
regulatory flexibility analysis is required if the head of an agency
certifies that the rule will not have a significant economic impact on
a substantial number of small entities. The SBREFA amended the
Regulatory Flexibility Act to require Federal agencies to provide a
statement of the factual basis for certifying that a rule will not have
a significant economic impact on a substantial number of small
entities.
    NHTSA has considered the effects of this rulemaking action under
the Regulatory Flexibility Act. As explained above, NHTSA is proposing
to amend Part 574 by permitting collection of the names and addresses
of first purchasers of new tires by internet and other computerized
means. Electronic collection would be permitted in place of paper
forms. This regulatory flexibility analysis does not apply to
manufacturer-owned tire dealers, because they are not considered small
businesses under SBA's affiliation rule at 5 CFR section 121.103(a)(1)
which states in part: ``Concerns and entities are affiliates of each
other when one controls or has the power to control the other * * *''
The tire manufacturer either ``controls or has the power to control''
dealerships that it owns.
    Under SBA's size standard regulations (at 5 CFR Part 121), ``tire
dealers'' are classified under North American Industry Classification
System (NAICS) Code 441320 with a size standard of average yearly sales
of $6 million. ``New car dealers'' are classified under NAICS Code
441110 with a size standard of average yearly sales of $24.5 million.
``Used car dealers'' are classified under NAICS Code 441120 with a size
standard of average yearly sales of $19.5 million.
    In its February 27, 2006 comments to NHTSA, NADA stated that of its
``20,000 franchised automobile and truck dealers who sell new and used
motor vehicles,'' a ``significant number are small businesses as
defined by the SBA.'' NADA did not specify the number that would be
considered ``small businesses.'' In the Federal Register of March 21,
2007 (54 FR 133440), we estimated the number of independent tire
dealers to be 26,000. Assuming all NADA members are small businesses,
the total number of independent tire dealers that are small businesses
would be 46,000.
    I hereby certify that if made final, this proposed rule would not
have a significant economic impact on a substantial number of small
entities. The factual basis for the certification is that if made
final, this proposed rule would not substantively change existing 49
CFR Part 574 requirements for small businesses that are independent
tire dealers. The electronic collection of information procedures would
be voluntary for independent tire dealers. The statement on the paper
form giving

Web site information about online registration of new tires (and the
paper form itself) would be provided by the tire manufacturer. If it
chooses not to adopt electronic tire registration procedures, the
responsibilities of the independent dealer would remain the same, to
pass out the paper forms to first purchasers of new tires.

C. National Environmental Policy Act

    NHTSA has analyzed this rulemaking action for the purposes of the
National Environmental Policy Act. The agency has determined that
implementation of this action would not have any significant impact on
the quality of the human environment.

D. Executive Order 13132 (Federalism)

    NHTSA has examined today's proposal pursuant to Executive Order
13132 (64 FR 43255, August 10, 1999) and concluded that no additional
consultation with States, local governments or their representatives is
mandated beyond the rulemaking process. The agency has concluded that
the proposal does not have federalism implications because, if made
final, the rule would not have ``substantial direct effects on the
States, on the relationship between the national government and the
States, or on the distribution of power and responsibilities among the
various levels of government.''
    If the proposed rule is made final, a State requirement would be
preempted if it conflicted with the rule.

E. Civil Justice Reform

    With respect to the review of the promulgation of a new regulation,
section 3(b) of Executive Order 12988, ``Civil Justice Reform'' (61 FR
4729, February 7, 1996) requires that Executive agencies make every
reasonable effort to ensure that the regulation: (1) Clearly specifies
the preemptive effect; (2) clearly specifies the effect on existing
Federal law or regulation; (3) provides a clear legal standard for
affected conduct, while promoting simplification and burden reduction;
(4) clearly specifies the retroactive effect, if any; (5) adequately
defines key terms; and (7) addresses other important issues affecting
clarity and general draftsmanship under any guidelines issued by the
Attorney General. This document is consistent with that requirement.
    Pursuant to this Order, NHTSA notes as follows. The preemptive
effect of this proposed rule is discussed above. NHTSA notes further
that there is no requirement that individuals submit a petition for
reconsideration or pursue other administrative proceeding before they
may file suit in court.

F. Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995, a person is not required
to respond to a collection of information by a Federal agency unless
the collection displays a valid Office of Management and Budget (OMB)
control number. The proposed changes to the tire registration and
recordkeeping rule, if made final, would be ``collections of
information,'' as that term is defined by OMB at 5 CFR 1320. Before an
agency submits a proposed collection of information to OMB for
approval, it must publish a document in the Federal Register providing
a 60-day comment period and otherwise consult with members of the
public and affected agencies concerning each proposed collection of
information. The OMB has promulgated regulations describing what must
be included in such a document. Under OMB's regulations (at 5 CFR
1320.8(d)), an agency must ask for public comment on the following:
    (i) Whether the proposed collection of information is necessary for
the proper performance of the functions of the agency, including
whether the information will have practical utility;
    (ii) The accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used;
    (iii) How to enhance the quality, utility, and clarity of the
information to be collected; and
    (iv) How to minimize the burden of the collection of information on
those who are to respond, including the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses.

In compliance with the requirements of 5 CFR part 1320, NHTSA requests
comment on the collection of information that would be revised if this
NPRM were made final.
    Title: 49 CFR part 574, Tire Identification and Recordkeeping.
    OMB Control Number: 2127-0050.
    Requested Expiration Date of Approval: Three years from date of
last approval.
    Type of Request: Extension of a currently approved collection, with
changes.
    Summary of the Collection of Information: 49 U.S.C. 30117(b)
requires each tire manufacturer to collect and maintain records of the
first purchasers of new tires. To carry out this mandate, 49 CFR part
574 requires tire dealers and distributors owned or controlled by a
tire manufacturer to record the names and addresses of retail
purchasers of new tires and the identification number(s) of the tires
sold. A specific form is provided to tire dealers and distributors by
tire manufacturers for recording this information. The completed forms
are returned to the tire manufacturers where they are retained for not
less than five years. Part 574 requires independent tire dealers and
distributors to provide a registration form to consumers with the tire
identification number already recorded and information identifying the
dealer/distributor. The consumer can then record his/her name and
address and return the form to the tire manufacturer. These forms are
also provided to tire dealers and distributors by tire manufacturers.
Additionally, motor vehicle manufacturers are required to record the
names and addresses of the first purchasers (for purposes other than
resale), together with the identification numbers of the tires on the
new vehicles, and retain this information for not less than five years.
    Description of the Need for the Information and the Proposed Use of
the Information: The information is used by a tire manufacturer after
it or the agency determines that some of its tires either fail to
comply with an applicable safety standard or contain a safety related
defect. With the information, the tire manufacturer can notify the
first purchaser of the tires and provide them with any necessary
information or instructions or remedy.
    Without this information, efforts to identify the first purchaser
of tires that have been determined to be defective or nonconforming
pursuant to Sections 30118 and 30119 of Title 49 U.S.C. would be
impeded. Further, the ability of the purchasers to take appropriate
action in the interest of motor vehicle safety may be compromised.
    Description of the Likely Respondents (Including Estimated Number
and Proposed Frequency of Response to the Collection of Information):
    March 21, 2007 Federal Register Notice--In the 30-day notice
announcing NHTSA's request for an extension to collect the tire
registration and recordkeeping information had been forwarded to OMB,
we estimated that the collection of information affects 10 million
respondents annually. This group consists of approximately 20 tire
manufacturers, 59,000 new tire dealers and distributors, and 10 million
consumers who choose to register their tire purchases with tire
manufacturers. A response is required by motor vehicle manufacturers
upon each sale of a new

vehicle and by non-independent tire dealers with each sale of a new
tire. A consumer may elect to respond when purchasing a new tire from
an independent dealer.
    Today's Estimate Resulting From the Proposed Collection of
Information Including Electronic Reporting--If made final, today's NPRM
would affect the tire registration and recordkeeping collection of
information as follows: The publication ``Modern Tire Dealer'' reports
that the tire industry's annual unit sales of new tires in the United
States for the past three years were as follows: 2004--319 million;
2005--326 million; 2006--313 million. Thus, over the past three years,
the average sales of tires per year in the U.S. were roughly 320
million.
    Estimate of the Total Annual Reporting and Recordkeeping Burden
Resulting from the Collection of Information:
    March 21, 2007 Federal Register Notice--In the March 21, 2007
notice, we provided the following estimated burden:

New tire dealers and distributors......  59,000.
Consumers..............................  10,000,000.
Total tire registrations (manually)....  54,000,000.
Total tire registration hours            225,000 hours.
 (manually).
Recordkeeping hours (manually).........  25,000 hours.
Total annual tire registration and       250,000 hours.
 recordkeeping hours.

    We note that with today's proposed rule, tire registration by
purchasers would be facilitated by accommodating electronic means. We
believe that if electronic registration were accommodated, the response
rate for purchasers may increase. Moreover, some independent tire
dealers may voluntarily register tires for consumers, thereby resulting
in a higher registration rate.
    Given that the various options we are proposing would be voluntary,
we do not know to what extent they would be utilized by independent
tire dealers, tire manufacturers and consumers. Therefore, based on the
information that is available, these are our estimates of burden.
    The same information (name and address of the purchaser) would be
collected regardless of the format, paper form, or typing in
information on a company Web site. Because some people type faster and
some people write faster, NHTSA believes that the amount of time it
will take to provide information about the name and address of the
purchaser would be very roughly the same, regardless of the format. To
the extent more consumers registered their tires, actual burdens
realized could thus increase concomitantly with the higher registration
rates. On the other hand, it may be possible for tire manufacturers and
independent tire dealers to develop electronic systems, tied in with
the systems used for monitoring inventory and recording sales
information, that could automatically register the tires with the tire
manufacturer at little additional cost.
    NHTSA believes that virtually all recordkeeping by tire
manufacturers is already done electronically. NHTSA estimates that it
takes roughly 25,000 hours to transfer handwritten data to an
electronic format for storage. Because, with Web site-based
information, there would be no change in format (i.e., going from
electronic reporting to electronic storage), NHTSA believes there would
be virtually no burden hours imposed in transferring information
provided on a tire manufacturer's Web site to a recordkeeping site. For
these reasons, NHTSA believes the recordkeeping burden hours would
remain at 25,000 hours.
    NHTSA solicits comments on the proposed changes in the collection
of information associated with part 574 and on NHTSA's analysis of how
the changes will affect the number of burden hours affecting the
public. Comments must refer to the docket and notice numbers cited at
the beginning of this NPRM and be submitted to: Docket Operations, M-
30, U.S. Department of Transportation, West Building, Ground Floor, Rm.
W12-140, 1200 New Jersey Avenue, SE., Washington, DC 20590.

G. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (NTTAA), Public Law 104-113, section 12(d) (15 U.S.C. 272)
directs NHTSA to use voluntary consensus standards in its regulatory
activities unless doing so would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., materials specifications, test methods, sampling
procedures, and business practices) that are developed or adopted by
voluntary consensus standards bodies, such as the Society of Automotive
Engineers (SAE). The NTTAA directs the agency to provide Congress,
through the OMB, explanations when we decide not to use available and
applicable voluntary consensus standards.
    After carefully reviewing the available information, NHTSA has
determined that there are no voluntary consensus standards relevant to
this rulemaking, as the information to be collected and sent to tire
manufacturers is needed only in the event of a tire recall.
Accordingly, this proposed rule is in compliance with Section 12(d) of
NTTAA.

H. Unfunded Mandates Reform Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA)
requires Federal agencies to prepare a written assessment of the costs,
benefits, and other effects of proposed or final rules that include a
Federal mandate likely to result in the expenditure by State, local or
tribal governments, in the aggregate, or by the private sector, of more
than $100 million in any one year (adjusted for inflation with base
year of 1995). Before promulgating a rule for which a written statement
is needed, section 205 of the UMRA generally requires NHTSA to identify
and consider a reasonable number of regulatory alternatives and adopt
the least costly, most cost-effective, or least burdensome alternative
that achieves the objectives of the rule. The provisions of section 205
do not apply when they are inconsistent with applicable law. Moreover,
section 205 allows NHTSA to adopt an alternative other than the least
costly, most cost-effective or least burdensome alternative if the
agency publishes with the final rule an explanation why that
alternative was not adopted.
    This proposed rule would not result in the expenditure by State,
local, or tribal governments, in the aggregate, or by the private
sector of more than $100 million annually. Accordingly, the agency has
not prepared an Unfunded Mandates assessment.

I. Plain Language

    Executive Order 12866 requires each agency to write all rules in
plain language. Application of the principles

of plain language includes consideration of the following questions:

--Have we organized the material to suit the public's needs?
--Are the requirements in the rule clearly stated?
--Does the rule contain technical language or jargon that is not clear?
--Would a different format (grouping and order of sections, use of
headings, paragraphing) make the rule easier to understand?
--Would more (but shorter) sections be better?
--Could we improve clarity by adding tables, lists, or diagrams?
--What else could we do to make this rulemaking easier to understand?

    If you have any responses to these questions, please include them
in your comments on this NPRM.

J. Regulation Identifier Number (RIN)

    The Department of Transportation assigns a regulation identifier
number (RIN) to each regulatory action listed in the Unified Agenda of
Federal Regulations. The Regulatory Information Service Center
publishes the Unified Agenda in April and October of each year. You may
use the RIN contained in the heading at the beginning of this document
to find this action in the Unified Agenda.

K. Privacy Act

    Anyone is able to search the electronic form of all comments
received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review DOT's
complete Privacy Act Statement in the Federal Register published on
April 11, 2000 (65 FR 19477 at 19478) or you may visit http://docketsinfo.dot.gov/
.

V. Public Participation

How Do I Prepare and Submit Comments?

    Your comments must be written and in English. To ensure that your
comments are correctly filed in the Docket, please include the docket
number of this document in your comments. Your comments must not be
more than 15 pages long.\20\ We established this limit to encourage you
to write your primary comments in a concise fashion. However, you may
attach necessary additional documents to your comments. There is no
limit on the length of the attachments.
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    \20\ See 49 CFR Sec.  553.21.
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    Please submit your comments by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov.
 Follow the online instructions for submitting

comments.
     Mail: Docket Management Facility, M-30, U.S. Department of
Transportation, West Building, Ground Floor, Rm. W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
     Hand Delivery or Courier: West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue, SE., between 9 a.m. and 5 p.m. Eastern
Time, Monday through Friday, except Federal holidays.
     Fax:<PHONE_NUMBER>.
    If you are submitting comments electronically as a PDF (Adobe)
file, we ask that the documents submitted be scanned using Optical
Character Recognition (OCR) process, thus allowing the agency to search
and copy certain portions of your submissions.\21\
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    \21\ Optical character recognition (OCR) is the process of
converting an image of text, such as a scanned paper document or
electronic fax file, into computer-editable text.
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    Please note that pursuant to the Data Quality Act, in order for
substantive data to be relied upon and used by the agency, it must meet
the information quality standards set forth in the OMB and DOT Data
Quality Act guidelines. Accordingly, we encourage you to consult the
guidelines in preparing your comments. OMB's guidelines may be accessed
at http://www.whitehouse.gov/omb/fedreg/reproducible.html DOT's guidelines may be accessed at http://dmses.dot.gov/submit/.

mit/.

How Can I Be Sure That My Comments Were Received?

    If you submit your comments by mail and wish Docket Management to
notify you upon its receipt of your comments, enclose a self-addressed,
stamped postcard in the envelope containing your comments. Upon
receiving your comments, Docket Management will return the postcard by
mail.

How Do I Submit Confidential Business Information?

    If you wish to submit any information under a claim of
confidentiality, you should submit three copies of your complete
submission, including the information you claim to be confidential
business information, to the Chief Counsel, NHTSA, at the address given
above under FOR FURTHER INFORMATION CONTACT. When you send a comment
containing information claimed to be confidential business information,
you should include a cover letter setting forth the information
specified in our confidential business information regulation.\22\
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    \22\ See 49 CFR 512.
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    In addition, you should submit a copy, from which you have deleted
the claimed confidential business information, to the Docket by one of
the methods set forth above.

Will the Agency Consider Late Comments?

    We will consider all comments received before the close of business
on the comment closing date indicated above under DATES. To the extent
possible, we will also consider comments received after that date.
Therefore, if interested persons believe that any new information the
agency places in the docket affects their comments, they may submit
comments after the closing date concerning how the agency should
consider that information for the final rule.
    If a comment is received too late for us to consider in developing
a final rule (assuming that one is issued), we will consider that
comment as an informal suggestion for future rulemaking action.

How Can I Read the Comments Submitted By Other People?

    You may read the materials placed in the docket for this document
(e.g., the comments submitted in response to this document by other
interested persons) at any time by going to http://www.regulations.gov.

Follow the online instructions for accessing the dockets. You may also
read the materials at the Docket Management Facility by going to the
street address given above under ADDRESSES. The Docket Management
Facility is open between 9 a.m. and 5 p.m. Eastern Time, Monday through
Friday, except Federal holidays.

List of Subjects in 49 CFR Part 574

    Labeling, Motor vehicle safety, Reporting and recordkeeping
requirements, and Tires.
    In consideration of the foregoing, NHTSA proposes to amend 49 CFR
part 574 as follows:

PART 574--TIRE IDENTIFICATION AND RECORDKEEPING

    1. The authority for part 574 continues to read as follows:

    Authority: 49 U.S.C. 322, 30111, 30115, 30117 and 30166;
delegation of authority at 49 CFR 1.50.

    2. Section 574.7 is amended by revising paragraphs (a)(2) and
(a)(3) and adding new paragraphs (e) and (f) to read as follows:

Sec.  574.7  Information requirements--tire manufacturers, new tire
brand name owners.

    (a)(1) * * *
    (2) Each tire registration form provided to independent
distributors and dealers pursuant to paragraph (a)(1) of this section
shall contain space for recording the information specified in
paragraphs (a)(4)(i) through (a)(4)(iii) of this section. Each form
shall:
    (i) Have the following physical characteristics:
    (A) Be rectangular;
    (B) Be not less than 3\1/2\ inches high, 5 inches long, and 0.007
inches thick;
    (C) Be not more than 4\1/4\ inches high, or more than 6 inches
long, or greater than 0.016 inch thick.
    (ii) On the address side of the form, be addressed with the name
and address of the manufacturer or its designee, and include, in the
upper right hand corner, the statement ``Affix a postcard stamp.''
    (iii) On the other side of the form:
    (A) Include the tire manufacturer's name, unless it appears on the
address side of the form;
    (B) Include a statement explaining the purpose of the form and how
a consumer may register tires. The statement shall:
    (1) Include the heading ``IMPORTANT''.
    (2) Include the sentence: ``In case of a recall, we can reach you
only if we have your name and address.''
    (3) Indicate that sending in the card will add a person to the
manufacturer's recall list.
    (4) If a tire manufacturer provides a Web site where its tires can
be registered, it may (but is not required to) include the following
sentence: ``Instead of mailing this form, you can register online at
[insert tire manufacturer's registration Web site address].''
    (5) Include the sentence: ``Do it today.''
    (C) Include space for recording tire identification numbers for six
tires.
    (D) Use shading to distinguish between areas of the form to be
filled in by sellers and customers.
    (1) Include the statement: ``Shaded areas must be filled in by
seller.''
    (2) The areas of the form for recording tire identification numbers
and information about the seller of the tires must be shaded.
    (3) The area of the form for recording the customer name and
address must not be shaded.
    (D) Include, in the top right corner, the phrase ``OMB Control No.
2127-0050''.
    (3) Each tire registration form provided to distributors and
dealers that are not independent distributors or dealers pursuant to
paragraph (a)(1) of this section must contain space for recording the
information specified in paragraphs (a)(4)(i) through (a)(4)(iii) of
this section. Each form must include:
    (A) A statement indicating where the form should be returned,
including the name and mailing address of the manufacturer or its
designee.
    (B) The tire manufacturers' logo or other identification, if the
manufacturer is not identified as part of the statement indicating
where the form should be returned.
    (C) The statement: ``IMPORTANT: FEDERAL LAW REQUIRES TIRE
IDENTIFICATION NUMBERS MUST BE REGISTERED''.
    (D) In the top right corner, the phrase ``OMB Control No. 2127-
0050''.
* * * * *
    (e) Tire manufacturers may voluntarily provide means for tire
registration via the internet, by telephone or other electronic means.
    (f) Each tire manufacturer shall meet the requirements of
paragraphs (b), (c) and (d) of this section with respect to tire
registration information submitted to it or its designee by any means
authorized by the manufacturer in addition to the use of registration
forms.
    3. Section 574.8 is revised to read as follows:

Sec.  574.8  Information requirements--tire distributors and dealers.

    (a) Independent distributors and dealers.
    (1) Each independent distributor and each independent dealer
selling or leasing new tires to tire purchasers or lessors (hereinafter
referred to in this section as ``tire purchasers'') shall comply with
paragraph (a)(1)(i), (a)(1)(ii) or (a)(1)(iii) of this section:
    (i) At the time of sale or lease of the tire, provide each tire
purchaser with a paper tire registration form on which the distributor
or dealer has recorded the following information:
    (A) The entire tire identification number of the tire(s) sold or
leased to the tire purchaser, and
    (B) The distributor's or dealer's name and street address. In lieu
of the street address, and if one is available, the distributor or
dealer's e-mail address or Web site may be recorded. Other means of
identifying the distributor or dealer known to the manufacturer may
also be used.
    (ii) Record the following information on a paper tire registration
form and return it to the tire manufacturer, or its designee, on behalf
of the tire purchaser, at no charge to the tire purchaser and within 30
days of the date of sale or lease:
    (A) The purchaser's name and address,
    (B) The entire tire identification number of the tire(s) sold or
leased to the tire purchaser, and
    (C) The distributor's or dealer's name and street address. In lieu
of the street address, and if one is available, the distributor or
dealer's e-mail address or Web site may be recorded. Other means of
identifying the distributor or dealer known to the manufacturer may
also be used.
    (iii) If authorized by the tire manufacturer, electronically
transmit the following information on the tire registration form to the
tire manufacturer, or its designee, using secure means (e.g., https on
the web), at no charge to the tire purchaser and within 30 days of the
date of sale or lease:
    (A) The purchaser's name and address,
    (B) The entire tire identification number of the tire(s) sold or
leased to the tire purchaser, and
    (C) The distributor's or dealer's name and street address. In lieu
of the street address, and if one is available, the distributor or
dealer's e-mail address or Web site may be recorded. Other means of
identifying the distributor or dealer known to the manufacturer may
also be used.
    (2) Each independent distributor or dealer that complies with
paragraph (a)(1)(i) or (ii) of this section shall use either the tire
registration forms provided by the tire manufacturers pursuant to Sec.
574.7(a) or registration forms obtained from another source. Paper
forms obtained from other sources must comply with the requirements
specified in Sec.  574.7(a) for forms provided by tire manufacturers to
independent distributors and dealers.
    (3) Multiple tire sales or leases by the same tire purchaser may be
recorded on a single paper registration form or in a single Web site
transaction.
    (4) Each independent distributor or dealer that is complying with
paragraph (a)(1)(iii) with respect to a sale or lease shall include a
statement to that effect on the invoice for that sale or lease and
provide the invoice to the tire purchaser.
    (b) Other distributors and dealers.
    (1) Each distributor and each dealer, other than an independent
distributor or dealer, selling new tires to tire purchasers:
    (i) shall submit, using paper registration forms or, if authorized
by the tire manufacturer, secure electronic means, the information
specified in Sec.  574.7(a)(4) to the manufacturer of the

tires sold, or to the manufacturer's designee.
    (ii) shall submit the information specified in Sec.  574.7(a)(4) to
the tire manufacturer or the manufacturer's designee, not less often
than every 30 days. A distributor or dealer selling fewer than 40 tires
of all makes, types and sizes during a 30 day period may wait until a
total of 40 new tires is sold. In no event may more than six months
elapse before the Sec.  574.7(a)(4) information is forwarded to the
respective tire manufacturers or their designees.
    (c) Each distributor and each dealer selling new tires to other
tire distributors or dealers shall supply to the distributor or dealer
a means to record the information specified in Sec.  574.7(a)(4),
unless such means has been provided to that distributor or dealer by
another person or by a manufacturer.
    (d) Each distributor and each dealer shall immediately stop selling
any group of tires when so directed by a notification issued pursuant
to 49 U.S.C. Section 30118,
    Notification of defects and noncompliance.
    4. In Part 574, Figures 3a, 3b and 4 are removed.

    Issued on: January 16, 2008.
Stephen R. Kratzke,
Associate Administrator for Rulemaking.
 [FR Doc. E8-1099 Filed 1-23-08; 8:45 am]

BILLING CODE 4910-59-P