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September 2, 2011
To: NIADA
From: Federal Advocates
Subject: August 2011 Monthly Report
“Motor Vehicle and Highway Safety Improvement Act”
Federal Advocates met with staff of the Senate Commerce Committee for a briefing on a draft of the “Motor Vehicle and Highway Safety Improvement Act” (the National Highway Traffic Safety Administration reauthorization bill). Of particular interest is Section 411, Used Passenger Motor Vehicle Consumer Protection. That section comes from the so-called “Toyota Bill” of last Congress. It focuses on limiting the sale or lease of used motor vehicles with respect to notification of defects, etc. The Commerce staff has asked for NIADA’s comments in writing in September. NADA opposes the bill.
The White House
On January 18, the President issued Executive Order 13563, “Improving Regulation and Regulatory Review.” The purpose of the Order, as stated by the President, was to “strike the right balance” between health, safety and environmental regulations and economic growth. Section 6 of the Order required all Executive Branch agencies to review their existing significant regulations to determine whether any such regulations should be modified, streamlined, expanded, or repealed so as to make the agencies’ regulatory program more effective or less burdensome. Pursuant to that section and at the request of Steve Croley, Special Assistant to the President for Justice and Regulatory Policy, Office of Domestic Policy, NIADA has been asked to submit comments regarding the current motor vehicle regulatory scheme and the Association’s experiences to date. Keith Whann has already provided informal views to Croley. Recently, the Department of Transportation submitted its review and analysis of existing rules under its jurisdiction. Other agencies are to follow suit.
Consumer Financial Protection Bureau (CFPB)
Per request of Holly Petraeus, Director, Office of Servicemember Affairs, materials are made available to the CFPB on an ongoing basis regarding NIADA’s treatment of, and programs focused on, servicemembers. Via Federal Advocates, CFPB is briefed on ongoing activities of the Association, both general and those that relate to the “servicemember issue” (example, educational programs Keith Whann has/is developing).
Department of Defense (DOD)
Following up on initial meetings with DOD, Pam McClelland, Senior Program Analyst, Office of Military Community and Family Planning, Office of the Undersecretary of Defense, has asked for additional materials/thoughts on how NIADA could be of assistance to DOD in its development/pursuit of programs to assist servicemembers in dealing with various motor vehicle sale issues. Keith Whann has provided initial information. He is developing the follow-up information per coordination with Federal Advocates.
Small Business Administration (SBA) Floor Plan Financing Program
Following up on meetings and phone conversations with Steve Smits, Associate Administrator, and Patrick Kelley, Senior Advisor, Keith Whann, per coordination with Federal Advocates, is in the process of arranging a workshop of motor vehicle financing entities for a presentation by, and discussion with, Smits/Kelley regarding implementation of SBA’s revised Floor Plan Financing Program, which based upon NIADA’s past experiences, raises some concerns.
Other Legislation of Interest
S.474, the Small Business Regulatory Freedom Act of 2011
Reforms the regulatory process to ensure that small businesses are free to compete and to create jobs, and for other purposes.
S.330, the Consumer Recall Protection Act of 2011
Prohibits a person from selling to consumers any covered product that is subject to a recall. Exempts from such prohibition the sale of a covered product that was subject to a recall because of a defect in such product if: (1) such defect was remedied prior to such sale; and (2) the seller of such product notifies such consumer of such recall, defect, and remedy. Defines a "covered product" to include a motor vehicle or replacement equipment, food, drugs, devices, cosmetics, a biological product, a consumer product, a meat or meat food product, a poultry or poultry product, and an egg or egg product. Defines "recall" for each type of covered product. Treats a violation of such prohibition as a violation of a rule defining an unfair or deceptive act or practice described under the Federal Trade Commission Act. Requires the Consumer Product Safety Commission (CPSC) to establish, maintain, and make available to the public a searchable list of covered products that are subject to a recall.
H.R.860 and S.110, Amends the Internal Revenue Code – Charitable Tax Deduction
Amends the Internal Revenue Code with respect to the charitable tax deduction for contributions of qualified vehicles (i.e., highway motor vehicles, boats, or airplanes) to: (1) set forth revised acknowledgment requirements for vehicles valued at $2,500 or less and vehicles valued at more than $2,500; and (2) revise the penalty for submitting a fraudulent acknowledgment.
H.R.1449, the Motor Vehicle Owners Right to Repair Act of 2011
Requires the manufacturer of a motor vehicle sold, leased, or otherwise introduced into U.S. commerce to: (1) provide to the vehicle owner and service providers all information necessary to diagnose, service, maintain, or repair the vehicle; (2) offer for sale to the vehicle owner and service providers any related tool or equipment; and (3) provide the information that enables aftermarket tool companies to manufacture tools with the same functional characteristics. Exempts trade secrets, so long as the information is not disclosed to authorized dealers or service providers. Authorizes enforcement of this Act by the Federal Trade Commission (FTC) and civil actions by state attorneys general.
H.R.527, the Regulatory Flexibility Improvements Act of 2011
Amends the Regulatory Flexibility Act of 1980 (RFA) to revise the definition of "rule" under such Act to exclude a rule of particular (and not general) applicability relating to rates, wages, and other financial indicators and to define "economic impact" with respect to a proposed or final rule as any direct economic effect on small entities from such rule and any indirect economic effect on small entities that is reasonably foreseeable and that results from such rule. Includes tribal organizations within the definition of "small governmental jurisdictions" for purposes of such Act. Requires initial and final regulatory flexibility analyses to: (1) describe alternatives to a proposed rule that minimize any adverse significant economic impact or maximize the beneficial significant economic impact on small entities, and (2) include revisions or amendments to a land management plan developed by the Secretary of Agriculture or the Secretary of the Interior under specified Acts. Expands elements of initial and final regulatory flexibility analyses under RFA to include estimates and descriptions of the cumulative economic impact of a proposed rule on a small entity. Repeals provisions allowing a waiver or delay of the completion of an initial regulatory flexibility analysis. Requires the Chief Counsel for Advocacy of the Small Business Administration (SBA) to issue rules governing federal agency compliance with RFA requirements. Authorizes the Chief Counsel to modify or amend such rules, to intervene in agency adjudication relating to such rules, and to inform an agency of the impact of its rulemaking on small entities. Revises requirements for agency notification of the SBA Chief Counsel for Advocacy prior to the publication of any proposed rule. Requires agencies to provide the Chief Counsel with: (1) all materials prepared or utilized in making the proposed rule, and (2) information on the potential adverse and beneficial economic impacts of the proposed rule on small entities. Requires each agency to publish in the Federal Register a plan for the periodic review of existing and new rules that have a significant impact on a substantial number of small entities to determine whether such rules should be continued, changed, or rescinded. Provides for judicial review of an agency final rule for compliance with RFA requirements after the publication of such rule. Grants federal courts of appeal jurisdiction to review all final rules issued in accordance with RFA.
H.R.229, the Michael Jon Newkirk Transportation Safety Enhancement Act of 2011
Directs the Secretary of Transportation (DOT) to withhold a graduated percentage of federal-aid highway funds of states for FY2014 and thereafter that do not enact or enforce a law that requires the annual inspection of registered motor vehicles so that they meet or exceed state motor vehicle standards (including the operability of vehicle seatbelts and speedometers).
H.R.164, the Damaged Vehicle Information Act
Directs the Secretary of Transportation (DOT), through the National Highway Traffic Safety Administration (NHTSA), to issue a regulation to require persons who terminate a motor vehicle contract due to flood or water damage, collision, fire damage, theft and recovery, or any circumstance that adversely affects the fair market value of the vehicle to disclose information of such vehicle damage to the public.
