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Interpretation ID: nht93-6.41

DATE: September 21, 1993

FROM: Howard M. Smolkin -- Acting Administrator, NHTSA

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

TITLE: None

ATTACHMT: Attached to letter dated 9/3/93 from Charles E. Schumer to Barry Felrice

TEXT:

Thank you for your letter requesting NHTSA's views on whether Title VI "Theft Prevention" of the Motor Vehicle Information and Cost Savings Act (15 U.S.C. 1901 et seq., Cost Savings Act) places a limit of $15 on the cost of an antitheft device to be installed in a high theft vehicle pursuant to an exemption from the parts marking standard. You believe the answer is no. As explained below, we agree.

The $15 limitation applies only to the cost of complying with the parts marking standard. The cost limitation appears in S2024(a), which provides that "The standard under section 602 (section 2022) may not (1) impose costs upon any manufacturer of motor vehicles to comply with such standard in excess of $15 per motor vehicle..." (Emphasis added.) Further, S2024(a) makes no reference to S2025 or to the costs of installing antitheft devices pursuant to exemptions issued under that section.

Thus, unless the costs of an antitheft device installed in lieu of compliance with the standard can be regarded as costs imposed by the standard, the $15 maximum does not apply to the costs of those devices. We do not regard the costs of those devices to be costs imposed by the standard. Instead, they are costs which the manufacturer has chosen to bear by voluntarily seeking an exemption from the standard. Further, we note that S2025 does not itself contain any cost limitation.

Although the foregoing analysis of the statutory language is sufficient to answer your question, we note that the legislative history of the 1984 Theft Act speaks directly to that question. Chairman John Dingell of the House Committee on Energy and Commerce commented on concerns that the costs for antitheft devices will be far greater than the costs of parts marking. He believed that manufacturers will not install devices that add a substantial cost to a vehicle and indicated that, regardless of the potential costs, Title VI "does not provide for consideration of costs by DOT." (See, Congressional Record-House October 1, 1984, p. H 10462, at 10472.)

Based on the foregoing, we conclude that the Cost Savings Act does not limit the cost of an antitheft device that is installed pursuant to the issuance under S2025 of an exemption from the standard. Please note that the passage of the Anti Car Theft Act of 1992 (ACTA) did not amend, in any way relevant to our conclusions, the provisions limiting costs of parts marking and authorizing the installation of antitheft devices in lieu of parts marking.

I hope this satisfactorily responds to your concerns. If you have any further questions, please let us know.