Interpretation ID: nht90-3.7

TYPE: Interpretation-NHTSA

DATE: July 5, 1990

FROM: Robert H. Jones -- President, Triple J Motors Saipan, Inc.

TO: Director, Office of Vehicle Safety Compliance Enforcement, NHTSA

TITLE: Re REF: 2013-138

ATTACHMT: Attached to letter dated 3-11-91 from Paul Jackson Rice to Robert H. Jones (A37; VSA Sec. 103(8)); Also attached to letter dated 1-22-91 from Robert H. Jones to Clive Van Orden (OCC 5733); Also attached to letter dated 12-11-90 from Robert H. J ones to Clive Van Orden; Also attached to letter dated 10-11-90 from Robert H. Jones to Congressman Ben Blaz; Also attached to letter dated 7-6-89 from Bob Jones to Congressman Ben Blas

TEXT:

I have written letters to you in the past regarding the FMVSS compliance in the Commonwealth of the Northern Marianas Islands (CNMI), but have never seen any action.

It is my understanding that the FMVSS apply in full force to the CNMI. As such, I have dutifully refrained from bringing in nonconforming vehicles. Due to the apparent complete failure of any local enforcement (as admitted by local officials--see enclos ed letter), my competitors are not so constrained and are engaging in what seems like unfair competition by bringing in cheap nonconforming vehicles.

Now it is okay with me if you have no interest in "compliance enforcement" in the CNMI. Perhaps it's better for the people? I can get the cheap nonconforming cars too. All I want is a level playing field, and to know the rules. Will I get compliance enforcement? Or should I join the competition and bring in the vehicles that do not comply?

Attachment

Commonwealth of the Northern Mariana Islands Office of the Governor Capitol Hill, Saipan MP/USA 96950 The Honorable Ben Blaz Phone: (670) 322-5091/2/3 Member of Congress Telefax: (670) 322-5096/99 1130 Longworth House Office Building Telex: 783-622 Gov.NMIWashington, D.C. 20515

Dear Congressman Blaz:

Re: Triple J Motors - Bob Jones - Federal Motor Vehicle Safety Standards (FMVSS) Applicability to the CNMI

We reply to your letter to us of October 5, 1990. You explain that Mr.

Bob Jones, of Triple J Motors, has a problem. It goes like this. Triple J, apparently, makes sure all the vehicles it imports and registers in the Commonwealth are in compliance with the FMVSS. Triple J fears possible federal enforcement action or. po ssibly worse, a customer law suit arising

from an auto accident and grounded on the company's failure to sell cars safety equipped to federal standards.

Compliance with these standards raises Triple J's investment in the automobiles so equipped. This added investment must be taken into consideration when Triple J sets its retail prices. Triple J's competitors in the Commonwealth, by design or accident, don't uniformly follow the federal standards. The competitor's retail prices need not, therefore, include consideration of the added cost of equipping vehicles for compliance with the FMVSS. Because of this, Triple J feels at a competitive disadvantag e in the market place. Triple J seeks a level playing field: It wants all CNMI automobile dealers compelled to follow the federal safety rules or, alternatively, that none of them including itself, be compelled to follow the rules.

Mr. Jones asks you for help. What would he have you do? He wants you to see to it that the CNMI enforces the FMVSS or he wants you to obtain a declaration, preferably from the U.S. Attorney and the Department of Transportation, that the federal safety standards don't apply in the CNMI. Before taking action, you ask for our comments and views. Here they are.

We only enforce laws that apply in the CNMI. Do these federal safety standards apply in the CNMI? By our Covenant with the United States, we were obliged to except federal laws that applied to Guam and the several states as of January 9, 1978. Federal enabling legislation behind the FMVSS has been on the books since 1966. The legislation applied to Guam and the states on January 9, 1979. It looks like we get the law. But this is not the end of the analysis.

We would accept application of the FMVSS here only if such federal law did not deny us our guaranteed right of local self-government with respect to internal affairs. It is my view that automobile safety is an internal affair. It is the subject for sel f-government. The Federal Motor Vehicle Safety Standards do not apply in the CNMI.

These federal safety standards are imposed on the states by virtue of the Commerce clause of the Federal Constitution. The federal Commerce clause does not apply in the CNMI; it cannot carry the FMVSS into our islands. Besides, consider the practicality of the situation. We move slowly on two lanes roads up and down twelve and fourteen mile long islands. Our drivers aren't hooked into a vast system of U.S. interstate highways where uniform safety equipment might be necessary to protect highspeed free ways carrying commerce between the states. We can't even drive to Tinian. We're small, wind-swept islands out here without even a traffic light.

I will say this, however: If I find that our people need the protection of some or all of the motor vehicle safety standards included in the FMVSS program, I'll be the first to move for immediate adoption of those standards ... by local law. Until then , it is our position that the FMVSS does not apply here and will not be enforced by my Administration.

If you address this matter on a national level, Congressman, please take our views into consideration. Thank you so much for consulting us. You

are a true friend of the Northern Marianas.

Sincerely,

LORENZO I. DE LEON GUERRERO Governor

cc: Lt. Governor Resident Representative to the United States Director, Department of Public Safety Director, Department of Finance Triple J Motors