Panel approves bill to protect auto whistleblowers

The Senate Commerce, Science and Transportation Committee approved a bill to protect whistleblowers who alert federal regulators about automobile mechanical issues. 

The bipartisan measure, which has been dubbed the Motor Vehicle Safety Whistleblower Act, was filed in response to widespread recalls at auto companies like General Motors and Japanese part manufacturer Takata last year. 

The sponsors of the legislation said Thursday that the measure would make it easier for employees in the auto industry to volunteer information about defective auto parts early to help prevent accidents. 

{mosads}“While I believe most manufacturers are dedicated to putting vehicle safety first, there have been disappointing examples where that did not happen and Americans died and sustained serious injuries,” said Sen. John Thune (R-S.D), who is the panel’s chairman. 

“This legislation will be a powerful tool to help ensure that problems regarding known safety defects are promptly reported to safety regulators,” Thune continued. 

The whistleblower protection legislation would allow auto industry employees who provide unknown information about auto defects to federal regulators to keep 30 percent of the money that is collected by fines greater than $1 million levied by the Department of Transportation. 

The whistleblower protections were patterned after existing regulations that are applied to individuals who report financial irregularities to the Internal Revenue Service and the Securities and Exchange Commission, Commerce committee officials said. 

Sen. Bill Nelson (D-Fla.), who co-sponsored the legislation, said Thursday he agreed with Thune that boosting federal whistleblower protections would help protect the nation’s motorists. 

“The auto industry needs to be held accountable if it makes decisions that result in serious injuries or deaths. And, one way to do that is to encourage insiders to come forward and tell the truth,” said Nelson, the top ranking Democrat on the committee.