[Federal Register Volume 81, Number 228 (Monday, November 28, 2016)]
[Proposed Rules]
[Pages 85478-85488]
[FR Doc No: 2016-28125]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 575

[NHTSA-2015-0096]
RIN 2127-AL33

Vehicle Defect Reporting Requirements

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

ACTION: Notice of proposed rulemaking (NPRM).

-----------------------------------------------------------------------

SUMMARY: NHTSA is proposing to require placing a label on the passenger
side sun visor of light-duty vehicles that provides information about
how to submit a safety-related motor vehicle defect complaint to NHTSA.
This rulemaking also proposes updating the required information in 49
CFR 575.6 for defect reporting information in owner's manuals through
the addition of the text developed for this proposal. This proposal
responds to the mandate in the Moving Ahead for Progress in the 21st
Century Act of 2012 (MAP-21) that manufacturers be required to affix,
in the glove compartment or in another readily accessible location on
the vehicle, a sticker, decal, or other device that provides, in simple
and understandable language, information about how to submit a safety-
related motor vehicle defect complaint to NHTSA; and prominently print
the information described above within the owner's manual.

DATES: Comments must be received on or before January 27, 2017. See the
SUPPLEMENTARY INFORMATION section on ``Public Participation'' for more
information about written comments.

ADDRESSES: You may submit your comments, identified by Docket ID No.
NHTSA-2015-0096, by any of the following methods:
     http://www.regulations.gov: Follow the online instructions
for submitting comments.
     Fax: NHTSA:<PHONE_NUMBER>.
     Mail:
    [cir] Docket Management Facility, M-30, U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building, Ground
Floor, Rm. W12-140, Washington, DC 20590, Attention Docket ID No.
NHTSA-2015-0096.
     Hand Delivery:
    [cir] Department of Transportation, 1200 New Jersey Avenue SE.,
West Building, Ground Floor, Rm. W12-140, Washington, DC 20590,
Attention

Docket ID No. NHTSA-2015-0096 between 9 a.m. and 5 p.m. Eastern Time,
Monday through Friday, except federal holidays.
    Instructions: Regardless of how you submit comments, you should
mention Docket ID No. NHTSA-2015-0096 or the Regulatory Identification
Number (RIN) for this rulemaking. You may call the Docket Management
Facility at<PHONE_NUMBER>. 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,
except as noted below, without change to http://www.regulations.gov,
including any personal information provided.
    Docket: All documents in the dockets are listed in the http://www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., confidential business
information (CBI) or other information whose disclosure is restricted
by statute. Publicly available docket materials are available either
electronically in http://www.regulations.gov or in hard copy at the
Docket Management Facility, M-30, U.S. Department of Transportation,
1200 New Jersey Avenue SE., West Building, Ground Floor, Rm. W12-140,
Washington, DC 20590. The Docket Management Facility is open between 9
a.m. and 5 p.m. Eastern Time, Monday through Friday, except federal
holidays.
    Privacy Act: Anyone is able to search the electronic form of all
comments received in 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 19477-78) or you may visit http://www.dot.gov/privacy.html.

FOR FURTHER INFORMATION CONTACT: For technical issues: Hisham Mohamed,
National Highway Traffic Safety Administration, 1200 New Jersey Avenue
SE., Washington, DC 20590. Telephone:<PHONE_NUMBER>.
    For legal issues: Ryan Hagen, National Highway Traffic Safety
Administration, 1200 New Jersey Avenue SE., Washington, DC 20590.
Telephone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Executive Summary
II. Statutory Mandate
III. Background
IV. Alternatives Considered and Proposed for the Label
V. Alternatives Considered and Proposed for the Owner's Manual
Information
VI. Costs
VII. Benefits
VIII. Enforcement and Compliance
IX. Proposed Compliance Date
X. Public Participation
XI. Regulatory Notices and Analyses
XII. Proposed Regulatory Text

I. Executive Summary

    This rulemaking proposes to require placing a sticker, decal, or
other device that provides, in simple and understandable language,
information about how to submit a safety-related motor vehicle defect
complaint to NHTSA on the passenger side sun visor. The agency believes
that the sun visor is not only the most accessible of the locations
considered, but also it is the most prominent location, which would
allow for the most informational benefit to consumers. This rulemaking
also proposes updating the defect reporting information manufactures
are required to include in owner's manuals. This rulemaking proposes to
move the requirement to a different section of the CFR.
    The benefits of the proposed rule, although not quantifiable, are
anticipated to include: (1) improved messaging and information to
consumers on how to submit a safety-related motor vehicle defect
complaint to NHTSA; (2) increased consumer involvement in the motor
vehicle defect reporting process; (3) reduced time between consumer
awareness of a possible motor vehicle defect and industry response; (4)
cost savings to the consumer through improved and timely defect-related
response by the manufacturer; (5) reduction in the risk and incidence
of injuries and fatalities attendant with the possible safety-related
motor vehicle defect; (6) decreased motor vehicle property damage; (7)
improvement in agency data-collection on potential safety problems in
motor vehicles and motor vehicle equipment, and resultant decisions on
whether to open an investigation; and, (8) cost savings to the industry
by providing motor vehicle manufacturers with information that they may
not yet have identified and gathered. While NHTSA believes that the
benefits of this proposed rule would outweigh the costs, NHTSA notes
that this rulemaking is required by statute and the agency is not
required to determine that it is cost-beneficial.

II. Statutory Mandate

    The Moving Ahead for Progress in the 21st Century Act of 2012 (MAP-
21) \1\ requires that NHTSA develop a rule to provide consumers with
information, in simple and understandable language, on how to submit a
safety-related motor vehicle defect complaint to NHTSA. This
information is to be placed on a sticker, decal or other device affixed
to each new vehicle and printed within the owner's manual.
---------------------------------------------------------------------------

    \1\ Public Law 112-141.
---------------------------------------------------------------------------

    Section 31306 of MAP-21 amended section 32302(d) of Chapter 323,
Title 49, of the United States Code (U.S.C.). Chapter 323 codifies
consumer information requirements initially established by the Motor
Vehicle Information and Cost Savings Act of 1972 (Pub. L. 92-513).
Section 31306 of MAP-21 requires that NHTSA develop a rulemaking to
require passenger motor vehicle manufacturers (1) to affix, in the
glove compartment or in another readily accessible location on the
vehicle, a sticker, decal, or other device that provides, in simple and
understandable language, information about how to submit a safety-
related motor vehicle defect complaint to NHTSA; and (2) to prominently
print the information described above by placing the text in Bold
letters within the owner's manual. Section 31306 specifies that the
above information must not be placed on the label required under
section 3 of the Automobile Information Disclosure Act (15 U.S.C.
1232).
    The agency has interpreted Section 31306 as directing DOT (by
delegation, NHTSA) to determine a readily accessible location in a
passenger motor vehicle for the required information to be affixed
(considering the glove compartment as one option), and to ensure that
the information is conveyed in simple and understandable language via a
sticker, decal, or other device. NHTSA believes that the determinations
of whether to require (1) a particular location for the sticker, decal,
or other device, (2) specified language to be used by all
manufacturers, or (3) a particular location for the information in the
owner's manual, are left to the agency's discretion. We have
interpreted the terms ``sticker, decal, or other device,'' to be
various forms of the term ``label.'' Thus, we use the term ``label''
throughout this proposal to refer to the various ways a manufacturer
could place the required information on the vehicle. We believe this
could be fulfilled either through an adhesive method, such as a label
generally refers to, or through a printing method, where

text would be directly applied to a surface.
    This rulemaking satisfies this mandate by proposing to require
manufacturers to place a label on the passenger side sun visor that
provides concise information on how to submit a safety-related defect
complaint to NHTSA. This rulemaking also proposes to require
manufacturers to print the same information in the owner's manual.

III. Background

    Motor vehicle safety is defined as ``the performance of a motor
vehicle or motor vehicle equipment in a way that protects the public
against unreasonable risk of accidents occurring because of the design,
construction, or performance of a motor vehicle, and against
unreasonable risk of death or injury in an accident, and includes non-
operational safety of a motor vehicle.'' \2\ A defect includes ``any
defect in performance, construction, a component, or material of a
motor vehicle or motor vehicle equipment.'' \3\ Generally, a safety
defect is defined as a problem that exists in a motor vehicle or item
of motor vehicle equipment that poses an unreasonable risk to motor
vehicle safety, and may exist in a group of vehicles of the same design
or manufacture, or items of equipment of the same type and manufacture.
---------------------------------------------------------------------------

    \2\ 49 U.S.C. 30101(a)(8).
    \3\ 49 U.S.C. 30101(a)(2).
---------------------------------------------------------------------------

    The National Traffic and Motor Vehicle Safety Act of 1966 \4\ (the
Vehicle Safety Act) granted NHTSA the authority to investigate defects
and to determine whether a defect exists. If a safety defect is
discovered, the manufacturer must notify NHTSA, as well as vehicle or
equipment owners, dealers, and distributors. If NHTSA determines that a
defect creates an unreasonable safety risk, the agency may require a
manufacturer to notify consumers, remedy a defect or issue a
recall.5 6 The manufacturer is then required to remedy the
problem at no charge to the owner. NHTSA monitors the manufacturer's
corrective action to ensure successful completion of the recall
campaign. Since the passage of the Vehicle Safety Act,\7\ 605 million
cars, trucks, buses, recreational vehicles, motorcycles, and mopeds, as
well as nearly 59 million tires, 91 million items of motor vehicle
equipment, and 60 million child safety seats have been recalled to
correct safety defects.\8\
---------------------------------------------------------------------------

    \4\ Codified at 15 U.S.C. 1381 et seq. and recodified in 1994 as
Chapter 30, Title 49, of the United States Code.
    \5\ A manufacturer of a motor vehicle or motor vehicle equipment
is required by 49 U.S.C. 30118(c) to notify the Secretary by
certified mail, and the owners, purchasers, and dealers of the
vehicle or equipment as provided in section 30119(d) of this
section, if the manufacturer--
    (1) learns the vehicle or equipment contains a defect and
decides in good faith that the defect is related to motor vehicle
safety; or
    (2) decides in good faith that the vehicle or equipment does not
comply with an applicable motor vehicle safety standard prescribed
under this chapter.
    Section 30119(d) provides notification procedures. Section
30120(a) of 49 U.S.C. provides that when notification is required
under section 30118(c), the remedy shall be without charge when the
vehicle or equipment is presented for remedy. NHTSA regulations at
49 CFR part 573 ``Defects and noncompliance responsibility and
reports,'' and Part 577 ``Defects and noncompliance notification''
implement these statutory requirements.
    Pursuant to 49 U.S.C. 30165, a manufacturer who violates any of
the above-mentioned statutory or regulatory provisions is liable to
the Government for a civil penalty. Until 1997 the maximum civil
penalty was $1,000 per violation up to a maximum of $800,000 for a
related series of violations. By a separate statutorily mandated
regulation, since 1997 NHTSA has adjusted the Sec.  30165 civil
penalties upward for inflation. 49 CFR part 578. The Transportation
Recall Enhancement, Accountability, and Documentation (TREAD) Act,
(Pub. L. 106-414), enacted in 2000 in light of the Firestone/Ford
controversy, amended the Safety Act by, inter alia, raising those
maximum civil penalties to $5,000 per violation and $15,000,000 for
a related series of violations, and added criminal penalties (49
U.S.C. 30170) for violations of reporting requirements. MAP-21,
enacted in 2012, increased the maximum civil penalty for a related
series of violations to $35,000,000. The Fixing America's Surface
Transportation Act (FAST Act), Public Law 114-94 (Dec. 4, 2015),
increased maximum civil penalties to $21,000 per violation and
$105,000,000 for a related series of violations. The increases in
maximum civil penalties in the FAST Act become effective on the date
on which the Secretary of Transportation certifies that NHTSA has
completed a rulemaking to provide an interpretation of the penalty
factors in 49 U.S.C. 30165. The higher civil penalty maximums in the
Part 578, MAP-21, and the FAST Act amendments are not retroactive to
violations that occurred before their enactments.
    \6\ Under the 1974 amendments to the Motor Vehicle Safety Act,
Congress gave NHTSA broad new power to enforce recall decisions.
These included new reporting requirements, increased penalties for
noncompliance, and subpoena and plant inspection authority.
    \7\ During the period 1966 to 2014.
    \8\ 2014 Recall Annual Report--NHTSA. See report at http://www.safercar.gov/staticfiles/safercar/pdf/2014-annual-recalls-report.pdf (last accessed September 18, 2015). This data includes
recalls that take place because the vehicles and equipment do not
meet the requirements of applicable safety standards set by NHTSA.
Manufacturers voluntarily initiate most recalls.
---------------------------------------------------------------------------

    To obtain information about potential safety defects in vehicles
and equipment, NHTSA's Office of Defects Investigation (ODI) receives
data from a variety of sources including vehicle and equipment
manufacturers, dealers, and consumer advocacy groups and forums.
However, ODI relies heavily on information received from consumers who
experience issues with their vehicles and equipment. ODI receives, on
average, between 40,000 and 50,000 complaints from consumers each year.
    If a consumer thinks that his/her vehicle or equipment may have a
safety-related defect, reporting it to NHTSA is an important first step
to take to get the situation remedied and help make the nation's roads
safer. If the agency receives similar reports from a number of
consumers about the same product, this could indicate that a safety-
related defect exists that could warrant the opening of an
investigation. However, an analysis of one complaint may also lead to
an investigation depending on the type of defect that is reported. In
order to make it convenient for consumers to report any suspected
safety-related defects to NHTSA, the agency offers three ways to file
such complaints.

Vehicle Safety Hotline

    NHTSA operates the United States Department of Transportation's
Vehicle Safety Hotline telephone service to collect accurate and timely
information from consumers on vehicle safety problems. Consumers can
call 1-888-327-4236 or 1-800-424-9393 toll-free from anywhere in the
United States, Puerto Rico, and the Virgin Islands to register
complaints or receive recall information about a vehicle. The Hotline
also has Spanish-speaking representatives and offers a dedicated
number, 1-800-424-9153, for use by persons with hearing impairments.
    When a consumer calls the Hotline to report a vehicle-related
safety issue, the consumer is asked to provide certain critical
information that NHTSA technical staff needs to evaluate the
problem.\9\ The information that the consumer provides is filed on a
Vehicle Owner's Questionnaire (VOQ) form, entered into the agency's
consumer-complaint database, and forwarded to NHTSA technical staff for
evaluation. VOQs filed through the Hotline are mailed to consumers for
verification of data. In addition, consumers receive an explanation of
how their questionnaire will be used. NHTSA may provide information
from the questionnaire to the vehicle manufacturer.
---------------------------------------------------------------------------

    \9\ The Privacy Act of 1974--Public Law 93-579, As Amended: This
information is requested pursuant to the authority vested in the
National Highway Traffic Safety Act and subsequent amendments.
Consumers are under no obligation to respond to this questionnaire.
Consumer response may be used to assist NHTSA in determining whether
a manufacturer should take appropriate action to correct a safety
defect. If NHTSA proceeds with administration enforcement or
litigation against a manufacturer, consumer response, or statistical
summary thereof, may be used in support of the agency's action.

---------------------------------------------------------------------------

Safercar.gov

    Consumers can also report a vehicle safety issue to NHTSA online at
its vehicle safety Web site: www.safercar.gov. The consumer can select
``Report Safety Problems'' within the Vehicle Owners section of the
home page. The information that a consumer submits via the Web site is
recorded in VOQ format, entered into NHTSA's consumer complaint
database, and provided to NHTSA technical staff for evaluation. NHTSA
may provide information from the questionnaire to the vehicle
manufacturer.

U.S. Mail

    A consumer can also report a defect by sending a letter to the
agency via U.S. mail.

SaferCar Mobile Application

    In March 2013, NHTSA launched its SaferCar mobile application that
allows consumers to access important vehicle safety information from
their mobile devices.\10\ To report a safety complaint to NHTSA through
the SaferCar mobile application, a consumer who has a smart phone or a
tablet can download the SaferCar application for free, scan in their
vehicle identification number, and follow instructions to submit their
complaint. The information collected through this mobile application is
similar to that which is collected online at SaferCar.gov.
---------------------------------------------------------------------------

    \10\ The current SaferCar mobile application is available for
the iOS and Android mobile operating systems.
---------------------------------------------------------------------------

    Manufacturers are currently required to include the following text
in all passenger vehicle owner's manuals: \11\
---------------------------------------------------------------------------

    \11\ 49 CFR 575.6.

    If you believe that your vehicle has a defect which could cause
a crash or could cause injury or death, you should immediately
inform the National Highway Traffic Safety Administration (NHTSA) in
addition to notifying [INSERT NAME OF MANUFACTURER].
    If NHTSA receives similar complaints, it may open an
investigation, and if it finds that a safety defect exists in a
group of vehicles, it may order a recall and remedy campaign.
However, NHTSA cannot become involved in individual problems between
you, your dealer, or [INSERT NAME OF MANUFACTURER].
    To contact NHTSA, you may call the Vehicle Safety Hotline toll-
free at 1-888-327-4236 (TTY: 1-800-424-9153); go to http://www.safercar.gov; or write to: Administrator, NHTSA, 400 Seventh
Street, SW., Washington, DC 20590. You can also obtain other
information about motor vehicle safety from http://www.safercar.gov.

    NHTSA notes that this required text uses an outdated mailing
address. The correct mailing address is: U.S. Department of
Transportation, National Highway Traffic Safety Administration, Office
of Defects Investigation (NEF-100), 1200 New Jersey Avenue SE.,
Washington, DC 20590.
    The currently required text also does not advise vehicle users of
the ability to file a complaint on the safercar.org Web site, or
through the new safercar.gov mobile application.

IV. Alternatives Considered and Proposed for the Label

    NHTSA first considered whether to require a particular location for
the label containing defect reporting language, or whether to leave the
location up to the manufacturer's discretion. Section 31306 does not
specify whether the determination of location is to be made by the
agency or the manufacturer. NHTSA acknowledges that differing vehicles
designs may mean that the most accessible location for a label in a
particular vehicle also differs. We also considered that there may be
benefits to providing flexibility to manufacturers by allowing them to
make the location determination. The agency believes that increased
compliance flexibility often has the potential to lower costs while
preserving manufacturer ability to design to consumer preferences. In
this case, however, the benefits to increased manufacturer flexibility
are believed to be minimal. The base estimated costs of implementing
this proposal are believed to be low, and the agency does not believe
that additional flexibility would be able to provide any significant
further cost savings. In addition, the purpose of requiring such a
label is to ensure that consumers encounter the information; to the
extent that a manufacturer seeks to ``blend'' the label into
preexisting vehicle designs, we believe this may detract from the
purpose of the requirement.
    On the other hand, we believe a standardized location for defect
reporting information would best further the purpose of Section 31306
by increasing the accessibility of the information through repeat
consumer exposure and expectations. We anticipate that once the
consumer has encountered the information in a particular vehicle
location, he or she would be more likely to associate the information
with the location and be able to access it again at a point when it is
sought (such as after a safety incident has occurred or a defect
suspected). Therefore, we are proposing to require a particular
location for placement of the language by all manufacturers.
    NHTSA identified five locations on a vehicle where the placement of
a label is likely to be practicable and the information displayed
likely to be accessible to a consumer. The five options thus considered
in this proposal are: (1) the passenger's sun visor; (2) the glove
compartment; (3) the edge of the driver's door; (4) the driver's side
B-pillar, and (5) the headliner above the sun visor. Section 31306 of
MAP-21 (``. . . affix, in the glove compartment or in another readily
accessible location on the vehicle . . .'') appears to suggest that the
glove compartment may be the best location for the label, however, the
selection of the location is left to the agency's discretion.
    Merriam-Webster dictionary defines ``accessible'' as ``capable of
being reached, easy to communicate, capable of being influenced,
capable of being used or seen, or capable of being understood or
appreciated.'' \12\ NHTSA notes that while Section 31306 does not
mandate that the required location be determined to be the most
accessible of all the options, Congress appears to have given the
accessibility of the information the highest priority of potential
factors. The agency notes that in the context of placing displays of
information, the prominence of the placement directly influences the
degree to which the information can be seen, and thus the degree to
which the language can communicate and be understood. Prominence is
thus an important element of accessibility when considering where to
put a label. Therefore, NHTSA first focused its analysis on which
prominent locations inside the vehicle could display information that
would then be highly accessible to (i.e., reachable by) vehicle users.
---------------------------------------------------------------------------

    \12\ Merriam-Webster Online--http://www.merriam-webster.com/dictionary/accessible (last accessed January 23, 2013).
---------------------------------------------------------------------------

    First, NHTSA considered the glove compartment for prominence and
accessibility, as this location was specifically suggested by Congress.
We believe this location may have been suggested because of the common
practice of storing documents such as the vehicle owner's manual,
registration, and insurance information, which a driver is likely to
reference in the event of an accident or problem with the vehicle. In
addition, glove compartments face the vehicle occupants and are
generally within a few feet of eye level, which may make information
displayed within one more prominent than it would be in locations that
are behind or to side of occupants, or further from eye level.
    However, the agency believes that the variety in current designs of
glove

compartments may impact the degree of accessibility and prominence of
information displayed within them. For example, we are aware of some
designs that open on a simple hinge, similar to an envelope drop box,
and others that open on a hinge that drops the compartment down below
the dashboard. After consideration of the surface areas available for
placement of a label within different glove compartment designs, we are
concerned the variation in designs may make placement of a label inside
the glove compartment more visible on some vehicles than others. Not
all glove compartments appear to offer a prominent surface area on
which to place a label with detailed reporting information.
Additionally, we believe that consistency in visibility of the label
across model types may make it more accessible and prominent to
consumers through their past associations with labels in other
vehicles.
    Next, NHTSA considered the passenger's side sun visor. This
location was considered accessible and prominent, as it is situated in
front of vehicle occupants not far from eye level. The suitability of
this location for labels has previously been leveraged by the agency
for both air bag labels and vehicle rollover labels.
    The air bag label, established under FMVSS 208 (Occupant Crash
Protection), requires manufacturers to affix an air bag warning label
to the sun visor at each seating position that is equipped with an
inflatable restraint.\13\ 49 CFR part 575.105 (Vehicle Rollover) also
requires that a rollover warning label be affixed at the driver's sun
visor for utility vehicles.\14\ The rollover warning label may appear
on either side of the visor, but if it appears on the same side as the
air bag label, it must be separated from the air bag label by a certain
distance. The air bag label may be affixed to either side of the sun
visor. FMVSS 208 also specifies that no other information may appear on
the same side of the sun visor to which the air bag warning label is
affixed, except for the utility vehicle warning label, and no other
information about the air bags or the need to wear seat belts may
appear anywhere on sun visors.\15\
---------------------------------------------------------------------------

    \13\ Sec.  571.208, Standard No. 208; Occupant crash protection.
    S4.5.1(b) Sun visor air bag warning label. (1) Except as
provided in S4.5.1(b)(2), each vehicle shall have a label
permanently affixed to either side of the sun visor, at the
manufacturer's option, at each front outboard seating position that
is equipped with an inflatable restraint.
    \14\ Sec.  575.105 Vehicle rollover.
    c) Definitions. Utility vehicles means multipurpose passenger
vehicles (other than those which are passenger car derivatives)
which have a wheelbase of 110 inches or less and special features
for occasional off-road operation.
    \15\ Sec.  571.208.
    S4.5.1(b)(5) Limitations on additional labels. (i) Except for
the information on an air bag maintenance label placed on the sun
visor pursuant to S4.5.1(a) of this standard, or on a utility
vehicle warning label placed on the sun visor that conforms in
content, form, and sequence to the label shown in Figure 1 of 49 CFR
575.105, no other information shall appear on the same side of the
sun visor to which the sun visor air bag warning label is affixed.
    (ii) Except for the information in an air bag alert label placed
on the sun visor pursuant to S4.5.1(c) of this standard, or on a
utility vehicle warning label placed on the sun visor that conforms
in content, form, and sequence to the label shown in Figure 1 of 49
CFR 575.105, no other information about air bags or the need to wear
seat belts shall appear anywhere on the sun visor.
---------------------------------------------------------------------------

    NHTSA considered that the label for information on how to contact
NHTSA with a vehicle safety defect complaint could be affixed on the
passenger's sun visor on the opposite side from the air bag warning
label, which would allow for sufficient separation of the two labels.
As each label would contain concise information, we believe that such
separation from the pictogram of the air bag label would be sufficient
to ensure that both labels display information prominently. We note
that a similar setup exists on the driver side sun visor of utility
vehicles, which bears either the air bag label on one side and the
rollover warning label on the other side of the visor, or both labels
on the same side. The agency is not aware of any negative impacts from
the placement of two labels on one visor on those vehicles.
    NHTSA next considered the driver's side b-pillar or edge of the
driver's door. In its tire safety information final rule,\16\ the
agency agreed with manufacturers that there is a concern about the
sufficiency of the space for the placement of the vehicle placard and
tire inflation label in the door edge or B-pillar for some vehicles. As
a result, in that rule, NHTSA added other alternative requirements to
the requirement that the vehicle placard and tire inflation pressure
label be located on the driver's side B-pillar.\17\ The agency remains
concerned that the relatively limited space in these locations,
combined with design variations, may detract from the prominence of a
label with detailed reporting information. We also believe that the
current vehicle placard and tire inflation pressure label are
relatively technically specific, and by adding another label may crowd
the messaging on how to reach NHTSA with a potential vehicle safety
complaint.
---------------------------------------------------------------------------

    \16\ 67 FR 69600, at 69617-69618.
    \17\ Id. at 69617.
---------------------------------------------------------------------------

    Finally, NHTSA considered the headliner above the sun visor. Like
the sun visor, the headliner is a relatively accessible and prominent
location, being in front of the vehicle occupants and not far from eye
level. A label on either the headliner or the ``back'' side of the
visor would only be visible when the visor was in the ``open'' (not
stowed) position. As the headliner currently does not contain labels, a
potential benefit to using this space for the defect label would be to
avoid any confusion or crowding of information.\18\ The ability to
require the label on the driver's side headliner, as opposed to the
passenger's side sun visor may carry additional accessibility benefits
by bringing the information closer to the driver, who is more likely to
need or use the information.
---------------------------------------------------------------------------

    \18\ Related, the headliner may provide for more consistency in
label placement if manufacturers frequently vary whether to place
the air bag label on the front or back side of the label. However,
NHTSA believes that the variation in air bag label placement is
likely due to manufacturer desire to limit the label visibility to
when the visor is in the open position, and requiring a label on
each side of the visor would make that concern irrelevant.
---------------------------------------------------------------------------

    However, a label on the back side of the visor would appear closer
to eye level when the visor was in the open position. NHTSA is also
concerned that the potential use of the driver's side headliner may
introduce a crowding issue in utility vehicles, which would now have
three informational labels in the same area on the driver's side (this
could defeat any spacing benefit assumed for avoiding the use of the
sun visor). In addition, the use of the visor for existing label
requirements may make it more likely that a vehicle occupant would
associate the visor with vehicle safety-related reference information
and thus check it in the event of a safety problem. For these reasons,
the agency believes a label on the headliner may be less prominent than
one on the visor itself.
    For the above reasons, of the five locations considered, the
agency's preferred alternative for placement of the sticker, decal, or
other device is the passenger side sun visor. The agency also
recognizes that the headliner above the sun visor may have similar
benefits to the visor without some of the disadvantages of the visor.
Therefore, the headliner is currently considered a close second to the
preferred alternative.
    NHTSA invites comments on whether the passenger side sun visor is
indeed the best easily accessible location for a label, as well as
whether the agency should have considered additional locations within
the vehicle. Commenters should provide detail on

which location is best and why. If additional locations are suggested,
commenters are requested to provide information on the accessibility,
prominence, and practicability of the suggested location. NHTSA also
invites comments on whether its assumptions and assessment of the
preferred location are reasonable. Commenters are requested to provide
supporting information for their suggestions.
Specified Language
    NHTSA also considered whether to require specified language to be
printed on the label, or whether to leave the choice of language up to
the vehicle manufacturer. Section 31306 of MAP-21 does not specify
whether the choice of actual content is to be made by the agency or by
the manufacturer. Given that information on how to submit a safety-
related defect complaint is relatively straightforward, and does not
vary by vehicle type or design, we do not see a benefit to leaving the
choice of language up to the manufacturer. Conversely, we believe that
requiring standardized language could prevent confusion or inaccuracies
that customized language could produce. Further, standardized language
may have the benefit of creating a phrase association for vehicle users
that could help them remember which agency to contact with a safety-
related concern whether or not they remember where the contact
information is located within their vehicle. For these reasons, NHTSA
is proposing standardized language for the decal, label, or other
device.
    Next, NHTSA considered proposed content for the labels. Information
on how to reach NHTSA with potential vehicle safety defect complaints
is currently written in all passenger vehicle owner's manuals.
Manufacturers are currently required to include the following text in
all passenger vehicle owner's manuals: \19\
---------------------------------------------------------------------------

    \19\ 49 CFR 575.6.

    If you believe that your vehicle has a defect which could cause
a crash or could cause injury or death, you should immediately
inform the National Highway Traffic Safety Administration (NHTSA) in
addition to notifying [INSERT NAME OF MANUFACTURER].
    If NHTSA receives similar complaints, it may open an
investigation, and if it finds that a safety defect exists in a
group of vehicles, it may order a recall and remedy campaign.
However, NHTSA cannot become involved in individual problems between
you, your dealer, or [INSERT NAME OF MANUFACTURER].
    To contact NHTSA, you may call the Vehicle Safety Hotline toll-
free at 1-888-327-4236 (TTY: 1-800-424-9153); go to http://www.safercar.gov; or write to: Administrator, NHTSA, 400 Seventh
Street SW., Washington, DC 20590. You can also obtain other
information about motor vehicle safety from http://www.safercar.gov.

    Section 31306 of MAP-21 states that the label information must be
``in simple and understandable language.'' Given the currently required
language, NHTSA interprets one purpose of the new requirement as
relaying the same basic information to vehicle users in a more
straightforward and condensed manner appropriate for a sticker or
label. With that in mind, NHTSA developed the following proposed
language for the consumer information label:

Do you believe your vehicle has a safety-related problem?

    The National Highway Traffic Safety Administration (NHTSA) NEEDS to
know.
    File your complaint with NHTSA today! Filing a complaint is easy:

Online: http://www.safercar.gov
Toll-free Hotline: 1-888-327-4236 (TTY: 1-800-424-9153)
Mail: U.S. Department of Transportation, NHTSA, Office of Defects
Investigation, NEF-100, 1200 New Jersey Avenue SE., Washington, DC
20077-9382.

    Information about how to keep your vehicle safe can be found at
www.SaferCar.gov.

    NHTSA believes the above proposed language would be easily readable
and comprehensible, and that by sticking to brief, standardized
content, the proposed device would effectively inform consumers of how
to file a potential vehicle safety defect. The agency believes that
longer strings of information in this context are unnecessary, and may
detract from a vehicle user's ability to internalize the information
presented. The simple listing format above is intended to make it less
likely that a vehicle user would miss the key message of the label or
device.
    NHTSA requests comment on the language, including whether it
provides the necessary information on how to contact NHTSA with vehicle
safety-related complaints, and whether it is simple and understandable.
Should the commenter have additional or revised language to propose,
the agency requests detail as to what additional or revised language is
recommended and how it is likely to fulfill the statutory purpose
better than the proposed text.
Label Design
    NHTSA believes the intent of Section 31306 of MAP-21 was to provide
consumers with easily accessible and understandable information on how
to contact the agency with any vehicle safety-related defects and
complaints. NHTSA does not believe that the requirements under this
rule are intended to increase a manufacturer burden beyond
communicating the basic information on how to contact the agency with a
vehicle safety-related defect complaint.
    With that in mind, NHTSA is proposing the following simple design
requirements for the label, which are similar to the design
requirements of the air bag warning label and the rollover warning
label: \20\
---------------------------------------------------------------------------

    \20\ See 49 CFR part 571.208; 49 CFR part 575.105, Vehicle
Rollover.
---------------------------------------------------------------------------

     The title must be in a bold black text.
     The message area must be white with black text.
     The pictograms must be black with a white background.
     The label must be appropriately sized so that it is
legible, visible and prominent to the driver.
    NHTSA believes that these requirements communicate the information
as intended in the statute in an accessible, readable, and
comprehensive manner. NHTSA believes that a simple black and white
label would effectively communicate the necessary information, and that
requiring color on labels could create an unnecessary financial burden
to some manufacturers. In regard to the font for the label, NHTSA is
not proposing either a particular font face, font size, or case for the
label. In existing label requirements (e.g., tire, rollover, and air
bag), the agency has not encountered issues with leaving the font
specifications up to manufacturers. However, NHTSA is proposing to
specify that the text on the label be ``legible, visible, and
prominent'' to the driver.\21\ NHTSA is also not proposing to specify a
size, shape, or dimension for the label, in order to provide
manufacturers the flexibility to design the placard and label in a
manner that can be configured to each vehicle design. This flexibility
is similar to that provided in other label requirements.\22\ A sample
of the proposed label is as follows:
---------------------------------------------------------------------------

    \21\ See 67 FR 69617.
    \22\ Id.

---------------------------------------------------------------------------

[GRAPHIC] [TIFF OMITTED] TP28NO16.007

    NHTSA seeks comments on the proposed design of the label, including
the current recommendation to keep the label in black and white without
additional colors. If a comment requests that the labels have color,
either on the background and/or in the content including text, the
commenter should provide a detailed explanation as to the benefit such
changes would provide to the consumer. NHTSA also seeks comment on the
proposed content, as to whether the information is adequate to inform
consumers on what actions to take should they feel they have a safety-
related problem with their vehicle, and whether there is any undue
burden that vehicle manufacturers may face under this proposal that the
agency should consider.

V. Alternatives Considered and Proposal for the Owner's Manual
Information

    NHTSA considered whether to develop unique language for owner's
manuals on how to submit a defect complaint, whether to use the same
language in the manual as is required for the label, or whether to
simply update the currently required owner's manual information with
NHTSA's new address and SaferCar mobile application.
    NHTSA believes that the clearest way to read Section 31306(d)(1)(B)
of MAP-21 (``prominently print the information described in [the label
requirement] within the owner's manual'') is that Congress intended for
the same essential information displayed in the label to be available
in the owner's manual, but not necessarily that the label be exactly
reproduced in the owner's manual. If Congress had intended for the
label to be printed in both places, we believe it would have indicated
so more directly by combining the two requirements, rather than refer
to the required information more broadly as that ``described in'' the
label requirement. Further, we believe that the greater space offered
in owner's manuals allows for additional explanatory statements that
may be useful to a consumer seeking more information on the defects
reporting process.
    For the above reasons, NHTSA is proposing the following language
for the owner's manual requirement:

    If you believe that your vehicle has a defect which could cause
a crash or could cause injury or death, you should immediately
inform the National Highway Traffic Safety Administration (NHTSA) in
addition to notifying [INSERT NAME OF MANUFACTURER].
    If NHTSA receives similar complaints, it may open an
investigation, and if it finds that a safety defect exists in a
group of vehicles, it may order a recall and remedy campaign.
However, NHTSA cannot become involved in individual problems between
you, your dealer, or [INSERT NAME OF MANUFACTURER].
    To contact NHTSA, you may call the Vehicle Safety Hotline toll-
free at 1-888-327-4236 (TTY: 1-800-424-9153); go to http://www.safercar.gov; download the SaferCar mobile application; or write
to: Administrator, NHTSA, 1200 New Jersey Ave. SE., Washington, DC
20590. You can also obtain other information about motor vehicle
safety from http://www.safercar.gov.

    NHTSA is not proposing design requirements for the owner's manual
information, beyond that it must be printed in a font size no smaller
than 10 point type. NHTSA is also not proposing to require the owner's
manual information to be printed in a particular section of the manual.
We recognize that there may be some increased consumer exposure benefit
to requiring the information to be printed in a standard design, and/or
on a particular page of the manual. However, in the event of a safety-
related issue with their vehicle, we believe it is common for a vehicle
user to consult the table of contents within the manual for direction
on their particular issue, and thus would be informed of where to find
the information on how to submit a defect complaint. We also believe
that manufacturers would be capable of fulfilling the statutory
requirement to print the information prominently without the potential
burden of redesigning their manual layouts to incorporate a
standardized placement.
    NHTSA is also proposing to move the required language currently
located in 49 CFR part 575.6 to 49 CFR 575.501 in order keep these like
requirements in the same place. This section will provide manufacturers
with the required safety-related defect reporting information in the
owner's manual. As noted above, the current requirement does not
include the most up-to-date reporting information, including the
Safercar mobile application, and we believe that Congress developed the
new owner's manual requirement with the intent that it would subsume
the existing regulation.
    NHTSA requests comment on the proposal to use an updated version of
the currently required owner's manual information, including whether
this

would fulfill the statutory requirement. NHTSA also requests comment on
whether to require specific design requirements and whether to require
the owner's manual information in a particular section of the manual,
and whether our assessment of the limited benefits of such additional
requirements is accurate. Commenters are requested to provide detailed
explanations for any recommendations.

VI. Costs

    In determining estimated industry costs associated with this
proposal, the agency investigated potential ``ball-park'' production
cost and labor cost for labels and owner's manual information.
    For purposes of the label cost estimate, NHTSA estimates the one-
time cost and recurring annual cost associated with producing a new,
adhesive-type label that is separate from existing labels. NHTSA
estimates that the one-time cost per manufacturer for development of
the label is $22.67, assuming one hour of labor. The labor cost
estimate is based on the Bureau of Labor Statistics Motor Vehicle
Manufacturing average hourly wage of production workers.\23\ See Table
1. The total one-time industry cost to 22 manufacturers of passenger
cars and light trucks is estimated at $586.74.
---------------------------------------------------------------------------

    \23\ http://www.bls.gov/oes/current/oes519199.htm.

                             Table 1--Estimated One-Time Manufacturer Cost for Label
                                                 [2012 Dollars]
----------------------------------------------------------------------------------------------------------------
                                                               Estimated labor  Estimated labor      Cost per
                    One-time startup costs                         rate/hour          hours        manufacturer
----------------------------------------------------------------------------------------------------------------
Motor Vehicle Manufacturing Production Worker................          $26.67                1           $26.67
----------------------------------------------------------------------------------------------------------------

    We estimate the annual costs for producing the label as follows.
NHTSA assumes a per-label cost of $0.04 and a labor value of $0.09 per
label. To arrive at a labor value of $0.09, we estimate the average
assembly line worker salary \24\ ($21.14) divided by 60 minutes,
divided by 60 seconds = $0.0059 per second. We estimate that affixing
the label on the sun visor would take approximately 15 seconds, based
on the amount of time we assumed the average worker would take to open
the vehicle door, position the sun visor, and affix the label. This
also assumes that, like the VIN numbers, the label would be affixed to
the vehicle after it is assembled. We assume that 16.5 million
passenger vehicles will be sold per year.\25\ Based on the above, we
estimate that the total annual industry cost for the label, including
printing and labor, is $2.15 million. See Table 2.
---------------------------------------------------------------------------

    \24\ http://www.bls.gov/oes/current/oes512099.htm.
    \25\ See 78 FR 55138.

                               Table 2--Estimated Total Label Annual Industry Cost
                                                 [2012 Dollars]
----------------------------------------------------------------------------------------------------------------
                                                    Labor value     Cost w/out                       Industry
       Number of vehicles          Cost of label     per label         labor          $ Labor       annual cost
----------------------------------------------------------------------------------------------------------------
16.5 million....................           $0.04           $0.09        $660,000      $1,485,000  ..............
                                 -------------------------------------------------------------------------------
    Total cost..................  ..............  ..............  ..............  ..............      $2,145,000
----------------------------------------------------------------------------------------------------------------

    NHTSA developed the following cost estimates for the development
and printing in simple and understandable language within the owner's
manual, information about how to submit a safety-related motor vehicle
defect complaint to the National Highway Traffic Safety Administration.
See Table 3. The cost of printing the page the size of the required
text is estimated at $0.04. Multiplying $0.04 by 16.5 million vehicles
results in an estimated annual cost to vehicle manufacturers of
$660,000 for printing the page in the owner's manual. The one-time cost
to manufacturers for the information in the owner's manual is
negligible.

                           Table 3--Estimated Owner's Manual Information Printing Cost
                                                 [2012 Dollars]
----------------------------------------------------------------------------------------------------------------
                          Annual costs                                 Rate            Pages           Cost
----------------------------------------------------------------------------------------------------------------
Printing--per page..............................................           $0.04               1           $0.04
16.5 million number of vehicles.................................  ..............  ..............         660,000
----------------------------------------------------------------------------------------------------------------

    The estimated total annual recurring cost to vehicle manufacturers
is $2.8 million ($2.15 million label cost + $0.66 million owner's
manual cost).

VII. Benefits

    As information on the effects of making defect reporting
information more accessible to vehicle users is not available, the
benefits of this proposed rule are not quantifiable. However, NHTSA
believes that there would be several qualitative benefits of this
action. Some of the anticipated benefits would fall to vehicle users.
These benefits could be direct (improved consumer awareness and
involvement) or indirect (fewer vehicle safety incidents or accidents
across particular model types on account of an expanded or quickened
defect reporting and response process). Other anticipated benefits
would fall to agency and the industry in the form of efficiencies
gained by closing information gaps. The anticipated benefits of this
proposal include:

    (1) Improved messaging and information to consumers on how to
submit a safety-related motor vehicle defect complaint to NHTSA;
    (2) increased consumer involvement in the motor vehicle defect
reporting process;
    (3) reduced time between consumer awareness of a possible motor
vehicle defect and industry response;
    (4) cost savings to the consumer through improved and timely
defect-related response by the manufacturer;
    (5) reduction in the risk and incident of injuries and fatalities
attendant with the possible safety-related motor vehicle defect;
    (6) decrease in motor vehicle property damage;
    (7) improvement in agency data-collection on potential safety
problems in motor vehicles and motor vehicle equipment, and resultant
decisions on whether to open an investigation; and,
    (8) cost savings to the industry by providing motor vehicle
manufacturers with information that they may not yet have identified
and gathered.
    The agency believes that the benefits of this proposal would be
higher than the costs. NHTSA requests comment on the benefits described
here, and on any additional benefits and/or ways to quantify benefits.

VIII. Compliance and Penalties

    In adding the 32302(d) requirements under MAP-21, Congress did not
amend the existing compliance and civil penalty provisions in 49 U.S.C.
Chapter 323; therefore, NHTSA tentatively concludes that those
provisions apply for regulations promulgated under 32302(d).
    49 U.S.C. 32308(a) states, in relevant part, that a person commits
a violation of Chapter 323 if that person fails to provide the
Secretary of Transportation (by delegation, the Administrator of NHTSA)
with information requested in carrying out Chapter 323, or fails to
comply with the applicable regulations prescribed under Chapter 323.
32308(b) prescribes a civil penalty of not more than $1,000 for each
violation of 32308(a).

IX. Proposed Compliance Date

    The proposed compliance date for label and owner's manual
requirements is the first model year that occurs more than one year
following the publication date of a final rule implementing this
proposal. The compliance date adheres to the provision in Section
31306(d)(2) of MAP-21, which states that the above requirements ``shall
apply to passenger motor vehicles manufactured in any model year
beginning more than 1 year after the date on which a final rule is
published.'' NHTSA believes the lead time proposed for the label may be
necessary; however, early compliance would be encouraged. With regard
to owner's manual information, NHTSA believes this amount of lead time
is more than necessary. First, the agency is proposing standardized
language. Additionally, in most cases, owner's manual information is
developed, reviewed, and approved in an entirely digital environment,
which significantly reduces lead time. Moreover, the agency is aware
that some manufacturers have moved, or are in the process of moving, to
full digital delivery of owner's manual information, where owner's
manual information is delivered via a digital video disc (DVD) or some
other digital format.\26\ In some of these cases, official vehicle
manufacturer owner's manual information is available via the internet
for reference; one manufacturer currently provides vehicle owners
information via an electronic tablet device as the primary information
source, with a more traditional paper version as a secondary
method.\27\
---------------------------------------------------------------------------

    \26\ ``Chrysler Phases Out Paper Owner's Manual'' http://wheels.blogs.nytimes.com/2009/09/23/chrysler-does-away-with-paper-owners-manual/ (last accessed June 17, 2015).
    \27\ ``2012 Hyundai Equus Continues To Redefine Intelligent
Luxury,'' http://www.hyundainews.com/us/en-us/Media/PressRelease.aspx?mediaid=32732&title=2012-hyundai-equus-continues-to-redefine-intelligent-luxury (last accessed February 5, 2016).
---------------------------------------------------------------------------

    NHTSA seeks comment on whether the proposed lead time is
reasonable. If a commenter wishes the agency to provide additional lead
time, NHTSA requests that the commenter provide specific explanations
for why more lead time might be needed for which elements of the
proposal. For example, if a commenter sought more lead time for the
owner's manual requirements, NHTSA seeks any relevant details of the
owner's manual publication process and associated timing, along with
current and future media that would be used for the owner's manual
information.

X. Public Participation

    NHTSA requests comment on all aspects of this proposed rule. This
section describes how you can participate in this process.

A. How do I prepare and submit comments?

1. Further instructions for submitting comments to the NHTSA docket are
described below:
    Your comments must be written and in English. To ensure that your
comments are correctly filed in the docket, please include the Docket
Number NHTSA-2015-0096 in your comments. Your comments must not be more
than 15 pages long.\28\ NHTSA established this limit to encourage you
to write your primary comments in a concise fashion. However, you may
attach necessary additional documents, which are not subject to the
page limit, to your comments.
---------------------------------------------------------------------------

    \28\ 49 CFR 553.21.
---------------------------------------------------------------------------

    If you are submitting comments electronically as a PDF (Adobe)
file, we ask that the documents submitted be scanned using the Optical
Character Recognition (OCR) process, thus allowing the agency to search
and copy certain portions of your submissions.\29\ Please note that
pursuant to the Data Quality Act, in order for the substantive data to
be relied upon and used by the agencies, it must meet the information
quality standards set forth in the OMB and DOT Data Quality Act
guidelines.
---------------------------------------------------------------------------

    \29\ 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.
---------------------------------------------------------------------------

    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 (last accessed January 2,
2014), and DOT's guidelines may be accessed at http://regs.dot.gov
(last accessed January 2, 2014).
2. Tips for Preparing Your Comments
    When submitting comments, please remember to:
     Identify the rulemaking by docket numbers and other
identifying information (subject heading, Federal Register date and
page number).
     Follow directions--the agencies may ask you to respond to
specific questions or organize comments by referencing a Code of
Federal Regulations (CFR) part or section number.
     Explain why you agree or disagree, suggest alternatives,
and substitute language for your requested changes.
     Describe any assumptions and provide any technical
information and/or data that you used.
     If you estimate potential costs or burdens, explain how
you arrived at your estimate in sufficient detail to allow for it to be
reproduced.
     Provide specific examples to illustrate your concerns and
suggest alternatives.
     Explain your views as clearly as possible, avoiding the
use of profanity or personal threats.
    Make sure to submit your comments by the comment period deadline
identified in the DATES section above.

XI. Regulatory Notices and Analyses

A. Executive Orders 12866 and 13563

    NHTSA has considered the impact of this rulemaking action under
Executive Orders 12866 and 13563 and the Department of Transportation's
regulatory policies and procedures. This action is not significant and
therefore was not subject to review by OMB under Executive Order 12866.
The benefits and costs of this proposal are described above. Because
the proposed rule would, if adopted, would not be economically
significant, the agency has not prepared a separate Preliminary
Regulatory Evaluation.

B. Regulatory Flexibility Act

    We estimate these proposed requirements would cost each small
vehicle manufacturer approximately $0.13 per vehicle, or far less than
1% of the cost of one of these vehicles, and would therefore not appear
to constitute a significant economic impact. Thus, NHTSA certifies that
this rule, if adopted, would not have a significant impact on a
substantial number of small entities.

C. Executive Order 13132

    NHTSA does not believe that there would be sufficient federalism
implications to warrant the preparation of a federalism assessment.

D. Executive Order 12988 (Civil Justice Reform)

    Pursuant to Executive Order 12988, ``Civil Justice Reform,'' \30\
NHTSA has considered whether this rulemaking would have any retroactive
effect. This proposed rule does not have any retroactive effect.
---------------------------------------------------------------------------

    \30\ 61 FR 4729 (Feb. 7, 1996).
---------------------------------------------------------------------------

E. National Environmental Policy Act (NEPA)

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

F. Paperwork Reduction Act

    The proposed rule does not implicate any information collection
requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520).

G. Unfunded Mandates Reform Act of 1995

    NHTSA has determined that the requirements of Title II of the
Unfunded Mandates Reform Act of 1995 do not apply to this rulemaking.

H. National Technology Transfer Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement
Act (NTTAA) requires NHTSA to evaluate and use existing voluntary
consensus standards in its regulatory activities unless doing so would
be inconsistent with applicable law (e.g., the statutory provisions
regarding NHTSA's vehicle safety authority) or otherwise impractical.
NHTSA has not identified any existing voluntary consensus standards
that could be used for this proposal.

I. Plain Language

    Executive Orders 12866 and 13563 require 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 the rule easier to
understand?

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

J. Privacy Act

    Anyone is able to search the electronic form for all comments
received into any of our dockets by the name of the individual
submitting the comments (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). For more information
on DOT's implementation of the Privacy Act, please visit: http://www.dot.gov/privacy. You may review DOT's complete Privacy Act
statement in the Federal Register published on April 11, 2000 (Volume
65, Number 70; Pages 19477-78).

List of Subjects in 49 CFR Part 575

    Consumer protection, Motor vehicle safety, Reporting and
recordkeeping requirements, Tires.

Proposed Regulatory Text

    For the foregoing reasons, NHTSA proposes to amend 49 CFR part 575
as follows:

PART 575--CONSUMER INFORMATION

0
1. The authority citation for part 575 is revised to read as follows:

    Authority:  49 U.S.C. 32302, 32304A, 30111, 30115, 30117, 30123,
30166, 30181, 30182, 30183, and 32908, Pub. L. 104-414, 114 Stat.
1800, Pub. L. 109-59, 119 Stat. 1144, Pub. L. 110-140, 121 Stat.
1492, Pub. L. 112-141, 126 Stat. 405, 15 U.S.C. 1232(g); delegation
of authority at 49 CFR 1.95.
0
2. Amend Sec.  575.6 by removing paragraph (a)(2) and redesignating
paragraphs (a)(3) through (5) as paragraphs (a)(2) through (4).
0
3. Add Subpart F to read as follows:

Subpart F--Moving Ahead for Progress in the 21st Century Act;
Consumer Information

    Authority:  49 U.S.C. 30101 et. seq., Sec. 31306, Pub. L. 112-
141, 126 Stat. 405, delegation of authority at 49 CFR 1.95.

Sec.  575.501   Safety defect reporting

    (a) Purpose and scope. This section requires manufacturers of
passenger motor vehicles to affix a label that describes the process
for submitting a complaint about a safety-related motor vehicle defect
to the National Highway Traffic Safety Administration. This section
also requires manufacturers to include the same information in the
owner's manual.
    (b) Application. This section applies to passenger motor vehicles
under 10,000 lbs GVWR.
    (c) Required information-- (1) Label. (i) Each passenger motor
vehicle must have a label permanently affixed to the passenger's sun
visor. The label must not appear on the same side of the sun visor to
which the sun visor air bag warning label is affixed, as required by
S4.5.1(b)(5) of 49 CFR 571.208. The label must conform in content,
form, and sequence to the label shown in Figure 1 of this section, and
must comply with the following requirements:
    (A) The title must be in a bold black text.
    (B) The message area must have a white background and black text.
    (C) The pictograms must be black with a white background.
    (D) The label must be appropriately sized so that it is legible,
visible, and prominent to the driver.
    (ii) When the safety defect reporting label required by paragraph
(c)(1)(i) of this section and the air bag alert label required by
S4.5.1(c) of 49 CFR 571.208 are affixed to the same side of the
passenger's sun visor, the pictogram of the air bag alert label must be
separated

from the pictograms of the safety defect reporting label by text and:
    (A) The labels must be located such that the shortest distance from
any of the lettering or graphics on the safety defect reporting label
to any of the lettering or graphics on the air bag alert label is not
less than 3 cm, or
    (B) If the safety defect reporting and air bag alert labels are
each surrounded by a continuous solid-lined border, the shortest
distance from the border of the safety defect reporting label to the
border of the air bag alert label must be not less than 1 cm.
    (iii) At the option of the manufacturer, the requirement in
paragraph (c)(1)(i) of this section for a permanently affixed label may
instead be met by permanent marking and molding of the required
information onto the specified location.
    (2) Owner's Manual. (i) The manufacturer of each passenger motor
vehicle must provide to the purchaser, in writing in the English
language and not less than 10 point type, the following statement in
the owner's manual, or, if there is no owner's manual or the owner's
manual is electronic, on a one-page document:
    If you believe that your vehicle has a defect which could cause a
crash or could cause injury or death, you should immediately inform the
National Highway Traffic Safety Administration (NHTSA) in addition to
notifying [INSERT NAME OF MANUFACTURER]. To contact NHTSA, you may call
the Vehicle Safety Hotline toll-free at 1-888-327-4236 (TTY: 1-800-424-
9153); go to http://www.safercar.gov; download the SaferCar mobile
application; or write to: Administrator, NHTSA, 1200 New Jersey Ave.
SE., Washington, DC 20590. You can also obtain other information about
motor vehicle safety from http://www.safercar.gov.
    If NHTSA receives similar complaints, it may open an investigation,
and if it finds that a safety defect exists in a group of vehicles, it
may order a recall and remedy campaign. However, NHTSA cannot become
involved in individual problems between you, your dealer, or [INSERT
NAME OF MANUFACTURER].
    (ii) The manufacturer must specify in the table of contents of the
owner's manual the location of the statement required in paragraph
(c)(2)(i). The heading in the table of contents must state ``Reporting
Safety Defects.''
[GRAPHIC] [TIFF OMITTED] TP28NO16.008

    Issued in Washington, DC.
Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2016-28125 Filed 11-25-16; 8:45 am]
 BILLING CODE 4910-59-P


[Federal Register Volume 85, Number 33 (Wednesday, February 19, 2020)]
[Notices]
[Pages 9504-9505]
[FR Doc No: 2020-03181]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88179; File No. SR-CboeBYX-2019-012]

Self-Regulatory Organizations; Cboe BYX Exchange, Inc.; Notice of
Designation of a Longer Period for Commission Action on Proceedings To
Determine Whether To Approve or Disapprove a Proposed Rule Change To
Introduce the Small Retail Broker Distribution Program

February 12, 2020.
    On August 1, 2019, Cboe BYX Exchange, Inc. (the ``Exchange'' or
``BYX'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to amend the BYX fee schedule to introduce a Small
Retail Broker Distribution Program (the ``Program''). The proposed rule
change was immediately effective upon filing with the Commission
pursuant to Section 19(b)(3)(A) of the Act.\3\ The proposed rule change
was published for comment in the Federal Register on August 20,
2019.\4\ The Commission received no comment letters regarding the
proposed rule change. On September 30, 2019, under Sections 19(b)(2)
and (b)(3)(C) of the Act,\5\ the Commission temporarily suspended the
proposed rule change and instituted proceedings to determine whether to
approve or disapprove the proposed rule change (``OIP'').\6\ The
Commission has received no comment letters in response to the OIP.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(2) and (b)(3)(A).
    \4\ See Securities Exchange Act Release No. 86670 (August 14,
2019), 84 FR 43207 (``Notice'').
    \5\ 15 U.S.C. 78s(b)(3)(C).
    \6\ See Securities Exchange Act Release No. 87166 (September 30,
2019), 84 FR 53197 (October 4, 2019).
---------------------------------------------------------------------------

    Section 19(b)(2) of the Act \7\ provides that, after initiating
disapproval proceedings, the Commission shall issue an order approving
or disapproving the proposed rule change not later than 180 days after
the date of publication of notice of filing of the proposed rule
change. The Commission may extend the period for issuing an order
approving or disapproving the proposed rule change, however, by not
more than 60 days if the Commission determines that a longer period is
appropriate and publishes the reasons for such determination. The
proposed rule change was published for notice and

comment in the Federal Register on August 20, 2019. The 180th day after
publication of the Notice is February 16, 2020, and April 16, 2020 is
an additional 60 days from that date.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    The Commission finds it appropriate to designate a longer period
within which to issue an order approving or disapproving the proposed
rule change so that it has sufficient time to consider the proposed
rule change. Accordingly, the Commission, pursuant to Section 19(b)(2)
of the Act,\8\ designates April 16, 2020 as the date by which the
Commission shall either approve or disapprove the proposed rule change
(File No. SR-CboeBYX-2019-012).
---------------------------------------------------------------------------

    \8\ Id.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(57).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-03181 Filed 2-18-20; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: June 2, 2010 (Volume 75, Number 105)]
[Notices]
[Page 30890-30892]
[DOCID:fr02jn10-143]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62159; File No. SR-NYSE-2010-36]

Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Exchange Price List

May 24, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 7, 2010, New York Stock Exchange LLC (``NYSE'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend its 2010 Price List to delete
references to two fees that are no longer applicable. The text of the
proposed rule change is available on the Exchange's Web site at http://
www.nyse.com, on the Commission's Web site at http://www.sec.gov, and
at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The NYSE has prepared summaries,
set forth in Sections A, B and C below, of the most significant aspects
of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange's 2010 Price List includes (i) a fee of $5,000 payable
in connection with a new application for NYSE membership by a limited
liability

company (``LLC'') and (ii) an application fee of $1,000 payable in
connection with the movement of existing members to non-public
organizations. The Exchange proposes to delete these fees from the 2010
Price List as they are no longer applicable. These fees related only to
circumstances that arose when NYSE membership was required to be held
by individuals, as opposed to the current structure which is based on
member organizations. The Exchange ceased to be a member-owned
organization in 2006 at the time of its merger with Archipelago
Holdings, Inc. In connection with the merger, NYSE members received
shares in the new publicly-traded parent company (NYSE Group, Inc., the
predecessor to the NYSE's current publicly-traded parent company, NYSE
Euronext). Since this demutualization, member organizations obtain the
right to have their employees on the NYSE trading floor by purchasing
trading licenses.
    As a consequence of the demutualization, the categories of
membership contemplated by the above-described fees no longer exist.
The LLC category of membership was created in 2005 to enable an
individual member who was retiring to retain an ownership interest in
the Exchange for estate planning purposes.\3\ The $5,000 application
fee was instituted because the Exchange believed that there were
additional costs to the Exchange in connection with memberships held by
LLCs rather than individuals, so the Exchange believed that it was
appropriate to charge a higher application fee than the $2,500 fee that
would have otherwise applied.\4\ The existing members to non-public
organizations fee of $1,000 was adopted in 1990 and was applied to an
individual member who was associated with a member organization and who
left that member organization to become an independent floor broker
without a public business or to become associated with a new member
organization without a public business that was comprised of existing
members.\5\ It also applied to an application for membership by any new
floor brokerage entity without a public business that consisted of
existing individual members. All NYSE members are now corporations or
other legal entities and are subject to the applicable application fees
for the various categories of new members: $20,000 for carrying firms,
$7,500 for introducing firms, and $2,500 for non-public organizations
(i.e., floor broker member organizations that do not have a public
business). Consequently, it is the admission of a corporate entity as a
member organization which gives rise to a registration fee under
current NYSE rules and the movement of floor personnel from one member
organization to another is not subject to registration fees, as those
individuals are not members in their own right. The reference to
individuals in the line of the 2010 Price List with respect to non-
public organizations will be deleted, as it is also inapplicable under
the current NYSE membership structure.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 52891 (December 5,
2005), 70 FR 73503 (December 12, 2005) (SR-NYSE-2005-83).
    \4\ See note 1 [sic] supra.
    \5\ See Securities Exchange Act Release No. 28129 (June 19,
1990) (SR-NYSE-90-27).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 \6\ of the Act in general and furthers
the objectives of Section 6(b)(4) \7\ in particular, in that it is
designed provide for the equitable allocation of reasonable dues, fees
and other charges among its members and other persons using its
facilities. The Exchange believes that the proposal does not constitute
an inequitable allocation of dues, fees and other charges, as the fees
being eliminated related to categories of NYSE members that no longer
exist under the current membership structure.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purpose of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(2) \9\ thereunder.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission may summarily abrogate such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NYSE-2010-36 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSE-2010-36. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro/
shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing will also be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-NYSE-2010-36 and should be
submitted on or before June 23, 2010.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Florence E. Harmon,
Deputy Secretary.
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

[FR Doc. 2010-13161 Filed 6-1-10; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: August 7, 2009 (Volume 74, Number 151)]
[Notices]
[Page 39725-39726]
[DOCID:fr07au09-112]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60422; File No. SR-FINRA-2009-048]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing of Proposed Rule Change to Adopt
FINRA Rule 5230 (Payments Involving Publications that Influence the
Market Price of a Security) in the Consolidated FINRA Rulebook

August 3, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on July 21, 2009, Financial Industry Regulatory Authority, Inc.
(``FINRA'') (f/k/a National Association of Securities Dealers, Inc.
(``NASD'')) filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by FINRA. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    FINRA is proposing to adopt NASD Rule 3330 (Payment Designed to
Influence Market Prices, Other than Paid Advertising) as FINRA Rule
5230 in the consolidated FINRA rulebook, with several changes to
clarify the scope of the rule.
    The text of the proposed rule change is available on FINRA's Web
site at http://www.finra.org, at the principal office of FINRA and at
the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    As part of the process of developing a new consolidated rulebook
(``Consolidated FINRA Rulebook''),\3\ FINRA is proposing to adopt NASD
Rule 3330 into the Consolidated FINRA Rulebook as FINRA Rule 5230 with

several changes, which are described below.\4\
---------------------------------------------------------------------------

    \3\ The current FINRA rulebook consists of (1) FINRA Rules; (2)
NASD Rules; and (3) rules incorporated from NYSE (``Incorporated
NYSE Rules'') (together, the NASD Rules and Incorporated NYSE Rules
are referred to as the ``Transitional Rulebook''). While the NASD
Rules generally apply to all FINRA members, the Incorporated NYSE
Rules apply only to those members of FINRA that are also members of
the NYSE (``Dual Members''). The FINRA Rules apply to all FINRA
members, unless such rules have a more limited application by their
terms. For more information about the rulebook consolidation
process, see FINRA Information Notice, March 12, 2008 (Rulebook
Consolidation Process).
    \4\ The proposed rule change also changes the title of the rule
to ``Payments Involving Publications that Influence the Market Price
of a Security.''
---------------------------------------------------------------------------

    NASD Rule 3330 provides that no member may, ``directly or
indirectly, give, permit to be given, or offer to give, anything of
value to any person for the purpose of influencing or rewarding the
action of such person in connection with the publication or circulation
in any newspaper, investment service, or similar publication, of any
matter which has, or is intended to have, an effect upon the market
price of any security.* * *'' The rule includes an exception for any
matter that is ``clearly distinguishable as paid advertising.''
    As part of transferring NASD Rule 3330 into the Consolidated FINRA
Rulebook, FINRA is proposing two changes to the rule to modernize its
terms and clarify its scope. First, the proposed rule change updates
the list of media to which the rule refers. Because NASD Rule 3330 has
not been amended for over 60 years, it refers only to matters published
or circulated in any ``newspaper, investment service, or similar
publication.'' The proposed rule change updates this language to
include electronic and other types of media, including magazines, Web
sites, and television programs.
    Second, the proposed rule change expands the exceptions in the rule
beyond paid advertising to also include compensation paid in connection
with research reports and communications published in reliance on
Section 17(b) of the Securities Act of 1933.\5\ FINRA is proposing
these changes to clarify that the prohibitions in the rule are not
intended to cover compensation paid for publications that are
explicitly permitted pursuant to other rules. For example, NASD Rule
3330 could be read to prohibit a member from paying for a third-party
research report if the report affected the market price of a security;
however, NASD Rule 2711(h)(13) contemplates that members might pay for
and distribute third-party research reports.\6\ In addition, FINRA does
not believe that the rule should be read to prohibit compensation paid
in connection with the publication of information that is specifically
permitted pursuant to Section 17(b) of the Securities Act, provided the
required disclosures are made.
---------------------------------------------------------------------------

    \5\ Section 17(b) of the Securities Act of 1933 provides that no
person may ``publish, give publicity to, or circulate any * * *
communication which, though not purporting to offer a security for
sale, describes such security for a consideration received or to be
received, directly or indirectly, from an issuer, underwriter, or
dealer, without fully disclosing the receipt, whether past or
prospective, of such consideration and the amount thereof.'' 15
U.S.C. 77q(b).
    \6\ Although the proposed rule change would exempt research
reports from FINRA Rule 5230, research reports would still be
subject to applicable FINRA rules and guidance governing research
reports and other communications with the public. See NASD Rules
2711, 2210(d), IM-2210-1. Among other things, these rules require
that research reports include certain disclosures, be fair and
balanced, and not be misleading.
---------------------------------------------------------------------------

    FINRA will announce the implementation date of the proposed rule
change in a Regulatory Notice to be published no later than 90 days
following Commission approval.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\7\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes that the proposed rule change will
clarify the scope of the rule in the new Consolidated FINRA Rulebook.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-FINRA-2009-048 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
    All submissions should refer to File Number SR-FINRA-2009-048. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of FINRA. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-FINRA-2009-048 and should be
submitted on or before August 28, 2009.
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-18978 Filed 8-6-09; 8:45 am]

BILLING CODE 8010-01-P