By Robert L. Redding, Jr.
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The U.S. Department of Justice has proposed a National Stolen Passenger Motor Vehicle Information System to verify the theft status of salvage or junk vehicles and major automotive parts. Much of the burden of this new system will fall on insurance companies and on those parties from whom repairers currently purchase parts. ASA will file formal comments on the proposed rule.
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The U.S. Department of Justice has proposed a National Stolen Passenger Motor Vehicle Information System (NSPMVIS) to verify the theft status of salvage or junk vehicles and major automotive parts. This rulemaking has its roots in legislation begun more than 10 years ago.
Congress included in the Anti Car Theft Act of 1992 the establishment of a National Stolen Auto Part Information System. This system would track and monitor stolen auto parts. The National Insurance Crime Bureau (NICB) estimated in 1994 that the cost of motor vehicle theft was $7.6 billion in the United States. This was a 134 percent increase over a cost of $3.2 billion in 1970.
A 1995 analysis by the NICB determined that the selling and disguising of stolen vehicles and parts was much more sophisticated than in the past. Congress established a federal advisory committee to pursue this new National Stolen Auto Part Information System. The name was changed to the National Stolen Passenger Motor Vehicle Information System by subsequent legislation in 1994. The NSPMVIS Federal Advisory Committee included representatives of the insurance, dismantling, recycling, repair and salvage industries. The Automotive Service Association was represented on the committee. Representatives from the National Highway Traffic Safety Administration, local law enforcement officials and consumer advocates were also included. The Federal Bureau of Investigation provided oversight for the committee.
The committee's recommendations, the results of a pilot project and legal analyses, represent the basis for the proposed regulation. ASA leaders participated in the pilot project, which was originally conducted in Texas and expanded to Illinois.
The Department of Justice proposes that the NICB serve as the NSPMVIS system administrator. Vehicle information number (VIN) data will be transmitted to the NICB via electronic tape, e-mail, electronic file transfer, fax or telephone. The system will then perform its primary function of checking the VINs against the "mirror image" of the NCIC Vehicle File maintained by NICB. Theft confirmations would then be identified prior to the sale to the consumer.
Two possible results after an inquiry:
- The system would simultaneously send a theft notice to law enforcement and the inquiring entity when there is an active theft record for a VIN, or
- Automatically send a unique authorization number to the system participant when there is no NCIC theft record, allowing for the sale or transfer of the vehicle or part.
The Department of Justice also seeks comment on proposed legislation that would be necessary for requiring insurers, salvagers, dismantlers, recyclers and repairers to inspect salvage and junk vehicles for “the purpose of collecting both the master VIN of the vehicle and the part numbers for any covered major parts that possess the VIN.” The Anti Car Theft Act did not include authority for requiring this inspection so the Department of Justice is seeking comment as to whether legislation requiring such would be supported by commenting organizations. The burden for much of this inspection would be on the insurer.
The proposed rule does not require the insurer to inspect or verify the theft status of covered major parts, only to inspect the master VIN on salvage and junk motor vehicles. The department encourages voluntary inspections and reporting of covered major parts.
The proposed rule does not apply to:
- New vehicles
- Manufacturer replacement parts
- New aftermarket parts
- Motor vehicles or major parts entered into the inventory of a system participant prior to the effective date of this system.
Insurance companies that obtain possession of and transfer a junk or salvage motor vehicle are:
- Required to verify through the system whether the salvage or junk motor vehicle is reported as stolen and not recovered.
- Required to provide to the purchaser or transferee of the vehicle from the insurance carrier a written response identifying the master VIN and verifying that the vehicle has not been reported as stolen or, if reported as stolen, that the carrier has recovered the vehicle and has proper legal title to the vehicle.
- Encouraged to report to the system all major parts identified as missing from recovered salvage and junk motor vehicles, that an insurance carrier obtains possession of and transfers to a purchaser or transferee.
- Encouraged to report to the system the results of any specific major parts inspected.
- Encouraged to provide to the purchaser or transferee of the vehicle identification of the specific major parts that were inspected and reported to the system, and to advise the purchaser or transferee whether the parts were reported as stolen.
Persons engaged in salvaging, dismantling, recycling and repairing vehicles may not knowingly sell, transfer or install a major part without:
- Verifying the major part has not been stolen.
- Providing the purchaser or transferee with a written response identifying the VIN of that major part and verifying the major part has not been reported stolen or that a proper legal title has been obtained.
- Providing the purchaser or transferee with a verification from an insurance carrier that the vehicle from which the major part was derived was not reported as stolen or that the insurance carrier has not established whether that vehicle has been stolen.
Much of the burden of this new system will fall on insurance companies and on those parties from whom repairers currently purchase parts. ASA will file formal comments on the proposed rule with the U.S. Department of Justice.
