Bill proposes $105 million fine for recall violations

The legislation would also reform recall notifications and provide more funding for the NHTSA.

US legislators have proposed a five-year highway funding bill that includes several reform provisions for the National Highway Traffic Safety Administration.

If the legislation passes as written (full PDF), it will increase potential penalties for recall-related violations to $105 million. The figure appears to be a compromise between the current cap and the $300 million limit favored by the Obama administration.

Companies currently face a maximum fine of just $35 million for failing to comply with certain guidelines, representing just a few days of profits for many major automakers.

The bill attempts to modernize and improve recall notices, allowing companies to send notification via e-mail. A trial program would also test the feasibility of alerting new or existing owners of unfixed defects during initial vehicle registration or renewals, while rental car companies would be prohibited from offering unfixed vehicles to clients.

Rep. Candice Miller (R-MI), a senior member of the House Transportation and Infrastructure Committee, pushed to include funding for vehicle-to-infrastructure technology.

"V2I technologies are undoubtedly the future of automotive safety, as evidenced by the automotive industry's rapid development and incorporation of such safety features," she said in a statement. "This final bill provides states with the adequate, consistent funding they need to not only improve, but modernize our nation's highway system."

The bill must pass votes in both the House and Senate before heading to President Barack Obama's desk for a final signature.