Interpretation ID: nht93-6.31

DATE: September 3, 1993

FROM: Charles E. Schumer -- Chairman, Subcommittee on Crime and Criminal Justice, House of Representatives Committee on the Judiciary

TO: Barry Felrice -- Associate Administrator for Rulemaking, NHTSA

COPYEE: Barbara Gray -- Office of Market Incentives, NHTSA

TITLE: None

ATTACHMT: Attached to letter dated 9/21/93 from Howard M. Smolkin to Charles E. Schumer (A41; CSA S601)

TEXT:

Because my role in sponsoring the Anti Car Theft Act of 1992 (ACTA), interested parties often contact my office with questions about Department of Transportation rules implementing and interpreting ACTA. My practice is to refer such questions to you and your staff.

I want to draw your attention to one particular question that I have been asked and that I believe needs a clear answer. As you know, ACTA modified a statute which directs DOT to promulgate regulations requiring motor vehicle manufacturers to mark the major parts of the vehicles they produce with vehicle identification numbers (15 U.S.C. S 2021 et seq.). The statute constrains DOT's discretion by declaring that the DOT regulations may not impose on manufacturers costs of more than $15 per vehicle (with certain exceptions) (see 15 U.S.C. S 2024). The statute further provides that manufacturers may gain a partial exemption from the parts-marking requirement by installing anti-theft devices in some vehicle lines (see 15 U.S.C. S 2025). These anti-theft devices must be approved by DOT.

The question I want to bring to your attention is: Does the $15 per vehicle limitation in S 2024 also limit the cost of anti-theft devices approvable under S 2025? In other words, can a manufacturer gain an exemption from parts-making by installing an anti-theft device that costs more than $15 per vehicle? Providers of anti-theft devices have approached my office with this question.

I think it is clear from the statute that the S 2024 does not in any way limit anti-theft devices. Manufacturers are free if they wish to install anti-theft devices costing in excess of $15 per vehicle, and, if the device meets DOT standards, to gain thereby an exemption from parts-marking. Indeed, it is my understanding that the anti-theft devices currently being used by manufacturers to gain exemptions in fact cost considerably in excess of $15 per vehicle.

Although I believe this is the clear meaning of the statute, it is NHTSA's responsibility to interpret the statute for purposes of implementing it and I do not wish to opine about your views. Accordingly, I would like to know whether your understanding of this issue differs from mine.

Thank you very much for your attention to this matter.