New Bill Could Impose New-Car Fee to Raise Money for Oversight

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The recent Toyota recalls have spurred Congress to draft new legislation to address federal oversight of auto safety, which could include a fee on new-car sales to pay for additional resources at oversight agencies.

The main aims of the bill — although separate versions are being drafted in the Senate and House — are to require automakers to install brake override systems, stop-start technology and black boxes. Lawmakers are also considering to impose a “small fee” on new-car sales that would provide additional funding to the National Highway Traffic Safety Administration.

Proponents of the bill point out that in 1980, NHTSA had 119 people working on enforcement, but due to budget cuts in the ensuing years, the agency now has roughly half that number. California Democratic Rep. Henry Waxman, the author of the House version of the bill, said the recent recalls show that NHTSA needs the proper “resources, expertise and authority” to oversee consumer safety.

The legislation also aims to raise the maximum fine for automaker misdeeds from the current $16.4 million, which is what Toyota will pay for its delay in ordering the recall of 2.3 million vehicles for sticking accelerator pedals. NHTSA chief David Strickland said he’d like to raise the maximum fine to more than $100 million.

Recalls Spur Congress to Act on Auto Safety (Detroit News)