tional Traffic and Motor Vehicle Safety Act of 1966, several would face financial difficulty and others would have to cease operations. These manufacturers usually purchase chassis and other components from the large established companies, which they then modify and assemble to produce a distinctive type special vehicle marketed under their own names Most duplicate very old models; others are sport cars or small special purpose cars. In order to reduce costs these small independents buy in quantity and often have in stock a sufficient quantity of a particular part to meet their production needs for several years. Unfortunately, some of these parts do not meet prescribed safety standards. For example, the producers of Avanti have on hand about 1,000 rigid steering columns which do not meet these standards. While any one of the major automobile manufacturers could absorb the loss involved in scrapping such parts, it is clear that this action would cause a small company substantial economic hardship. The most burdensome expense, however, for these manufacturers would be incurred in meeting those testing requirements of the act which are intended to insure that a motor vehicle meets standards designed to protect the occupants of the vehicle. The small manufacturer does not have the facilities to conduct these tests. Even more important, however, is the fact that compliance with these tests would require the destruction of from two to four vehicles in the testing process. It is quite likely that a manufacturer of a very limited number of vehicles which they sell for $12,000 and up could not absorb the additional costs which this would involve. S. 2029 was passed by the Senate November 6, 1967. The Department of Commerce recommends favorable action by the House of Representatives. We note that the Secretary of Transportation can prescribe the form and content of labels on exempt vehicles. We would assume that such labels would be fairly permanent in nature to assure that subsequent purchasers from the original purchaser would be apprised of the vehicle's nonconformance to generally applicable standards. We have been advised by the Bureau of the Budget that there would be no objection to the submission of our report to the Congress from the standpoint of the administration's program. Sincerely, Hon. HARLEY O. STAGGERS, BURT W. ROPER (For the General Counsel). DEPARTMENT OF STATE, Washington, D.C., January 31, 1968. Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. CHAIRMAN: The Department of State has learned that the Committee on Interstate and Foreign Commerce is considering S. 2029, a bill to amend the National Traffic and Motor Vehicle Safety Act of 1966 relating to the application of certain standards to motor vehicles produced in quantities of less than 500. The proposed bill would authorize the Secretary of Transportation to temporarily exempt certain motor vehicles from safety standards H.R. 1178 if compliance would cause substantial economic hardship to the manufacturer and the exemption would not result in undue hazard to the public. Only vehicles produced by a manufacturer with a total production of not more than 500 motor vehicles annually could be exempted. Thus foreign producers of more than 500 vehicles a year would not qualify for any relief, even though their exports to the United States might be less than 500 a year. Yet foreign companies with relatively few exports to the United States are those being hurt most by the safety standards. They must either go to great expense in order to make their relatively few exports conform to our standards, or be forced out of the U.S. market. Their problem is similar to that faced by small domestic manufacturers. If exceptions are to be allowed from safety standards in order to alleviate economic hardship faced by a small domestic manufacturer, the Department of State believe that consideration should be given to making small exporters to the United States eligible to apply for the same exemptions for the same reason. We defer to the judgment of the Department of Transportation as to the desirability and practicability of authorizing exemptions to Federal motor vehicle safety standards. The Bureau of the Budget advises that from the standpoint of the administration's program there is no objection to the submission of this report. Sincerely yours, WILLIAM B. MACOMBER, Jr., Assistant Secretary for CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows, new matter is printed in italic, existing law in which no change is proposed is shown in roman): TITLE I OF THE NATIONAL TRAFFIC AND MOTOR VEHICLE SAFETY ACT OF 1966 TITLE I-MOTOR VEHICLE SAFETY STANDARDS SEC. 101. This Act may be cited as the "National Traffic and Motor Vehicle Safety Act of 1966". SEC. 122. The provisions of this title for certification of motor vehicles and items of motor vehicle equipment shall take effect on the effective date of the first standard actually issued under section 103 of this title. SEC. 123. (a) Upon application made by a manufacturer at such time, in such manner, and containing such information as the Secretary shall prescribe, he shall temporarily exempt a limited production motor vehicle from any motor vehicle safety standard established under this title if he finds that compliance would cause such manufacturer substantial H.R. 1178 economic hardship or that such temporary exemption would facilitate the development of vehicles utilizing a propulsion system other than or supplementing an internal combustion engine and that such temporary exemption would be consistent with the public interest and the objectives of this Act. (b) The Secretary shall require in such manner as he deems appropriate, the notification of the dealer and of the first purchaser of a limited production motor vehicle (not including the dealer of such manufacturer) that such vehicle has been exempted from certain motor vehicle safety standards, and the standards from which it is exempted. (c) For the purposes of this section "limited production motor vehicle" means a motor vehicle, produced by a manufacturer whose total motor vehicle_production, as determined by the Secretary, does not exceed 500 annually. (d) The authority of the Secretary under this section shall terminate three years after the date of enactment of this section, and no exemption granted under this section shall remain in effect after three years after the date such exemption is originally granted. 90TH CONGRESS 2d Session } HOUSE OF REPRESENTATIVES { No. 1179 REPORT EXTENDING FOR 2 YEARS THE AUTHORITY OF FEDERAL RESERVE BANKS TO PURCHASE U.S. OBLIGATIONS DIRECTLY FROM THE TREASURY MARCH 14, 1968.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. PATMAN, from the Committee on Banking and Currency, submitted the following REPORT [To accompany H.R. 15344] The Committee on Banking and Currency, to whom was referred the bill (H.R. 15344) to amend section 14(b) of the Federal Reserve Act, as amended, to extend for 2 years the authority of Federal Reserve banks to purchase U.S. obligations directly from the Treasury, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. GENERAL STATEMENT H.R. 15344 would extend for an additional 2 years the present. authority under which the Federal Reserve banks may purchase, directly from the Treasury, obligations of the United States not to exceed $5 billion outstanding at any one time. The existing authority expires on June 30, 1968. This direct purchasing authority was originally provided in 1942 for a period of 2 years and has beer extended periodically since that time. Up until 1935 Federal Reserve banks could purchase Government obligations either directly from the Treasury or in the open market However, the Banking Act of 1935 required that all purchases of Government securities by Federal Reserve banks be made exclusively in the open market. In 1942 the authority of the Federal Reserve banks to purchase securities directly from the Treasury was restored A limit, however, of $5 billion was placed on the amount that could be outstanding at any one time. The present authority was granted for 2 years by the act of June 30, 1966. 85-081 O |