Major component parts of designated passenger motor vehicles are to be marked with identification numbers so that stolen parts can be identified. National Motor Vehicle Title Information System

The 1992 Act required Transportation to, among other things establish a task force by April 25, 1993, to study problems related to motor vehicle titling, registration, and salvage, which may affect motor vehicle theft, and to recommend (1) ways to solve these problems, including obtaining any national uniformity that it determines is necessary in these areas and related resources and (2) other needed legislative or administrative actions; review by January 1, 1994, state systems for motor vehicle titling and determine each state’s costs for providing a titling information system; and establish the title information system by January 31, 1996, unless Transportation determines that an existing system meets the statute’s requirement, and by January 1, 1997, report to Congress on those states that elected to participate in the information system and on those states not participating, including the reasons for nonparticipation. Implementation Status of the 1992 Act’s Requirements

The task force, established in April 1993, reported in February 1994 its recommendations on the legislative and administrative actions needed to address problems in the areas of titling, registration, and controls over salvage to deter motor vehicle theft. In March 1996, AAMVA officials estimated that about $19 million in federal grants would be needed to fund states’ implementation costs. Potential Issues Affecting the 1992 Act’s Implementation or Effectiveness

On the basis of discussions with NHTSA and AAMVA officials, issues that may affect the 1992 Act’s implementation or effectiveness are concerns about the size and scope of the pilot study, uniformity, funding for the states, responsibility for the titling system, and other factors, including states’ willingness to participate and the complexity of the titling system. According to an NHTSA official, local law enforcement officials look for markings when investigating stolen vehicles and parts. The Institute expects work to begin on this study in May 1996. Potential Issues Affecting the 1992 Act’s Effectiveness

A determination of the effectiveness of the marking of major components of passenger motor vehicles is not expected to be made until the Justice and Transportation reports are completed. Also, according to FBI officials, the implementation of NSPMVIS might have an adverse economic impact on insurance companies and smaller businesses involved in vehicle parts.
Why GAO Did This Study

Pursuant to a congressional request, GAO provided information on the implementation of the Anti-Car Theft Act, focusing on the: (1) status of national information systems on motor vehicle titles and stolen passenger cars and parts; (2) marking of major component parts of passenger cars with identification numbers; and (3) issues that may impede the act's implementation.

What GAO Found

GAO found that: (1) the Department of Justice (DOJ) and the Department of Transportation (DOT) have begun developing information systems and DOT has issued initial parts-marking regulations; (2) a DOT task force has made recommendations on the legislative and administrative actions needed to address problems in titling, registration, and controls over salvage to deter motor vehicle theft; (3) states need about $19 million in federal grants to implement their part of the titling system; (4) the National Highway Traffic Safety Administration has proposed legislation to implement the task force's recommendations; (5) issues affecting the implementation or effectiveness of the proposed titling information system include prosecution immunity, major vehicle damage disclosure, the system's complexity, and state participation, funding, and responsibility; (6) the association that DOJ authorized to set up the stolen vehicle and parts database and complete a pilot study on the database's concept and maintenance feasibility expects to begin studying parts-marking effectiveness in May 1996; and (7) potential barriers to the implementation or effectiveness of the act's parts marking provisions include state funding for the database, confusion over what vehicles and parts are to be marked, whether local law enforcement agencies have the resources necessary to follow up on identified stolen vehicles and parts, and the potential adverse economic impact on insurance companies and small businesses.