[Congressional Record Volume 145, Number 70 (Friday, May 14, 1999)]
[Senate]
[Pages S5367-S5369]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 ARLINGTON, VIRGINIA DMV DEMONSTRATES IMPORTANCE OF THE NATIONAL MOTOR 
                    VEHICLE TITLE INFORMATION SYSTEM

  Mr. LOTT. Mr. President, I rise to thank the Virginia Department of 
Motor Vehicles (DMV) and the American Association of Motor Vehicle 
Administrators for hosting a demonstration of the National Motor 
Vehicle Title Information System (NMVTIS) today in Arlington, Virginia.
  Staff representing Senators from both sides of the aisle were shown 
how the national titling information system will allow participating 
states to track a motor vehicle from essentially birth to death. NMVTIS 
will let DMVs and consumers know where a vehicle was previously titled 
and which, if any, brands have been associated with the vehicle. It 
will also let law enforcement know if a vehicle being registered or 
titled is stolen. Again, this is crucial disclosure information for 
states, car buyers, and police forces across the country.
  It is a system that is consistent with advances in technology. One 
that allows states to share information over the wire. NMVTIS makes a 
great deal of sense as state governments move to paperless systems and 
greater use of the Internet to share information with their citizenry.
  Mr. President, Congress directed the establishment of NMVTIS as part 
of the Anti-Car Theft Act of 1992. In part, to curtail motor vehicle 
theft, but also to allow states to share ``real time'' up-to-date 
vehicle information.
  It is clear though, that the effectiveness of a national titling 
information system depends on maximum state participation. Congress 
knew this when it authorized incentive grants to encourage states to 
use the system. A minimum of $300,000 is available to a state to offset 
its implementation costs.
  Virginia, often a technology leader, embraced NMVTIS early and agreed 
to be the first state to pilot test the system. It will have the system 
online at all DMVs this June. Indiana, Massachusetts, Florida, and 
Arizona are also in the process of implementing NMVTIS. Kentucky and 
New Hampshire are not far behind. Both states submitted formal grant 
applications to the Department of Justice which oversees NMVTIS. 
Additionally, a number of states have also sent letters of interest and 
are hopeful to obtain startup funding this year. These include: 
Alabama, District of Columbia, Georgia, Hawaii, Idaho, Illinois, 
Louisiana, Maryland, Missouri, Nebraska, Nevada, New Jersey, New 
Mexico, New York, North Dakota, Ohio, Pennsylvania, Tennessee, Texas, 
and West Virginia.
  It is expected that 21 states will be full partners in the national 
titling system by 2000 and that all states will choose to participate 
in the system by 2003.
  Mr. President, I congratulate Virginia and the other participating 
states for leading the way. NMVTIS is one significant tool that will be 
used to combat title fraud and vehicle theft. With NMVTIS, and 
appropriate and workable uniform salvage vehicle titling definitions 
and standards, consumers across the country will have the kind of 
disclosure detail they need to make informed purchase decisions.
  Somewhere down the road, consumers will be able to conduct vehicle 
queries and get ``real time'' vehicle history information from their 
home computers.
  Mr. President, the 106th Congress does not need to put roadblocks in 
the way. My colleagues must reject any proposal that would jeopardize 
full nationwide implementation of this much needed system. Instead, 
this Congress must do everything it can to maintain the vitality of 
NMVTIS. For America's motorists, for car purchasers, and for all 50 
states.
  Mr. President, I ask unanimous consent to have printed in the Record 
an

[[Page S5368]]

AAMVA news release and other background information on NMVTIS.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                           American Association of


                                 Motor Vehicle Administrators,

                                      Arlington, VA, May 14, 1999.

  Salvage Legislation Kills Title Washing Rids Road of Unsafe Vehicles

       Arlington, VA.--Senate staffers tomorrow at 10:30 a.m., get 
     a first hand, real-time look at what could signal the end of 
     automobile title theft and help rid our highways of unsafe 
     vehicles.
       At the Virginia Department of Motor Vehicles (DMV), 4150 
     South Four Mile Run Drive, Arlington, Virginia, members of 
     the Committee on Commerce, Science, and Transportation will 
     peek at the technology serving as the backbone for Senator 
     Lott's S. 655.
       This bill encourages the standardization of title laws 
     combating the fraudulent resale of damaged and stolen 
     vehicles. Under Lott's bill, federal incentives would be 
     provided to those states enacting uniform state title 
     branding laws. An opposing bill circulating through committee 
     doesn't provide the federal incentives and increases the 
     paper trail with salvaged vehicles.
       ``We support S. 655 and the standardization of title laws 
     to combat fraud,'' said Kenneth M. Beam, president, American 
     Association of Motor Vehicle Administrators (AAMVA). 
     ``Ridding our highways of unsafe vehicles and eliminating 
     `title washing' is of eminent importance to highway safety.''
       The Anti-Car Theft Act of 1992 required the U.S. Department 
     of Transportation (DOT) to implement a National Motor Vehicle 
     Title Information System (NMVTIS pronounced min-veet-us). The 
     American Association of Motor Vehicle Administrators (AAMVA) 
     undertook the responsibility of assisting states in complying 
     with the new legislation. And in 1996, Congress mandated 
     responsibility of the system to the U.S. Department of 
     Justice (DOJ).
       Currently five states are online with NMVTIS including; 
     Virginia, Indiana, Massachusetts, Florida and Arizona. Lott's 
     bill will reinforce the effort to implement NMVTIS 
     nationwide.
                                  ____

                                          Public Relations Office,


                                 Department of Motor Vehicles,

                                       Richmond, VA, May 14, 1999.

        National Motor Vehicle Title Information System (NMVTIS)


                              Introduction

       NMVTIS is required by the Anti Car Theft Act of 1992, which 
     was enacted to deter trafficking of stolen vehicles by 
     strengthening law enforcement, combating automobile title 
     fraud, preventing ``chop shop'' related thefts, and 
     inspecting exports for stolen vehicles. Approximately 
     $800,000 was appropriated to the National Highway 
     Transportation Safety Administration (NHTSA) to develop a 
     prototype system for a national clearinghouse of vehicle 
     title information. The idea is to have a central file which, 
     when polled, would tell a state where the vehicle is 
     currently titled and verify the validity before a new title 
     is issued. NHTSA allocated the funds to the American 
     Association of Motor Vehicle Administrators (AAMVA) for 
     AAMVAnet, the AAMVA non-profit entity that manages the 
     network, to coordinate the project and to run a pilot of the 
     program. Virginia developed a system design for the pilot 
     program and was the first state to place all NMVTIS 
     transactions into production. The other states participating 
     in the pilot are Arizona, Florida, Indiana, Kentucky, 
     Massachusetts, and New Hampshire.
       AAMVA has contracted with the Polk Company to provide the 
     Central File Operator (CFO) services for Manufacturer's 
     Statement of Origin (MSO), VIN and State of Title (SOT) 
     information. They have also contracted with NICB-Facta to 
     provide similar services for the Brand and Theft files (to 
     advise the inquiring state of any reported thefts and any 
     brands on the vehicle). Also, Congress provided an additional 
     $1,000,000 for the project to the Department of Justice, 
     Federal Bureau of Investigation (FBI) and moved the project 
     responsibility from NHTSA to the FBI.
       This online, real-time system currently includes vehicle 
     information from both pilot and non-pilot states. Non-
     repairable and salvage vehicle information from junkyards, 
     salvage yards, and insurance carriers is also included. 
     Manufacturers also enter Manufacturer's Certificate of Origin 
     (MCO) information into the system.
       The following types of data are exchanged between states, 
     private sector service providers (i.e. salvage yards), and 
     users:
       Title
       Registration
       Brand
       Theft
       Detailed vehicle information
       Vehicle information is also provided to:
       Other states
       Federal, state, and local law enforcement
       Insurance carriers
       Prospective purchasers
       States use the system to determine:
       Validity and status of a Manufacturers Certificate of 
     Origin (MCO)
       Validity and status of a title document
       Current State of Title (SOT)
       Title and registration history
       If a vehicle is non-repairable, salvage, or otherwise 
     branded
       A vehicle's last recorded odometer reading
       If a vehicle has been reported stolen
       Detailed vehicle data from manufacturer and/or SOT
       States update the system when:
       A vehicle has been titled from an MCO or issued from an MCO 
     in error
       A vehicle has been re-titled from another state or re-
     titled from another state in error
       Title data has changed
       A title record has been deleted from a state's files
       A vehicle has been registered or registered in error
       A brand has been recorded on a title or has been recorded 
     in error
       The system notifies the states when another state has:
       Titled a vehicle or titled a vehicle in error
       Registered a vehicle or registered a vehicle in error
       Examples of vehicle information maintained on NMVTIS are:
       VIN
       Make
       Year
       Model
       Body type
       Color
       GVW (Gross Vehicle Weight)
       The following information is not included in NMVTIS:
       An individual's Social Security Number (SSN) or address
       Non-electronic updates of brand data from junk yards, 
     salvage yard, or insurance carriers
       Pointers to the State of Registration (SOR)
       Any guarantee that brand history is complete at the time of 
     inquiry (Junkyards, salvage yards, and insurance carriers 
     report monthly.)
       The following vehicles (based on body type) are currently 
     excluded from NMVTIS:
       All trailers
       Mopeds
       Motor bikes
       Manufactured homes
       Equipment
       NMVTIS will benefit states by allowing for:
       A framework to promote uniformity in titling procedures 
     among U.S. jurisdictions.
       Titling jurisdictions to verify the vehicle and title 
     information, obtain information on all brands ever applied to 
     a vehicle, and obtain information on whether the vehicle has 
     been reported stolen, prior to issuing a title.
       The VIN to be checked against a national pointer file, 
     which provides the last jurisdiction that issued a title on a 
     vehicle and requests detail of the vehicle from the 
     jurisdiction.
       Law enforcement to create lists of vehicles, by junkyard, 
     salvage yard, or insurance carrier that are reported as junk 
     or salvage. The Act requires junkyard, salvage yards, and 
     insurance carriers to report monthly to NMVTIS on all junk 
     and salvage vehicles obtained. Law enforcement's inquiries to 
     NMVTIS will further assist its investigations of vehicle 
     theft and fraud.
       Manufacturers to dramatically reduce the use of paper 
     Manufacturer's Certificate of Origin. NMVTIS will incorporate 
     the functionality of the AAMV Anet Paperless MCO application, 
     which allows jurisdictions to inquire on an electronic MCO 
     file for data necessary to create the vehicle's first title. 
     The manufacturers reduce their use of the paper MCO, and the 
     jurisdictions build their initial title records from the 
     electronic data created by manufacturers, which will 
     significantly reduce data entry errors.
       The consumer, through a Prospective Purchaser Inquiry 
     (PPI), to have access to any current or former title brands 
     that relate to the value and condition of a particular 
     vehicle. This allows consumers to make better-informed 
     decisions on whether to buy a vehicle and at what purchase 
     price.
                                  ____


            National Motor Vehicle Title Information System


                           executive summary

     Background: Anti Car Theft Act of 1992
       The Anti Car Theft Act of 1992 (the Act) was enacted to 
     deter trafficking in stolen vehicles by strengthening law 
     enforcement against auto theft (Title I), combating 
     automobile title fraud (Title II), preventing ``chop shop'' 
     related thefts (Title III), and inspecting exports for stolen 
     vehicles (Title IV). Title II of the Act required the 
     Department of Transportation (DOT) to implement a National 
     Motor Vehicle Title Information System (NMVTIS).
     Title II intent
       The intent of Title II is to make it as difficult as 
     possible for automobile thieves to obtain legitimate vehicle 
     ownership documentation. Also, consumers will have ready 
     access to vehicle information.
     System capabilities
       NMVTIS will allow jurisdictions to verify the validity of 
     titles prior to issuing new titles. This will inhibit title 
     fraud and auto theft by making it harder to title stolen 
     vehicles. Law enforcement officials will be provided access 
     to junk yard and salvage yard information, allowing them to 
     identify illegal activities. The consumer will have access to 
     the latest odometer reading and any current or former title 
     brands that relate to the value and condition of a particular 
     vehicle. This allows consumers to make better-informed 
     decisions on whether to buy a vehicle and at what purchase 
     price.

[[Page S5369]]

     Authorized users of NMVTIS
       The Act specifies that the information within NMVTIS shall 
     be available to jurisdictions; federal, state and local law 
     enforcement officials; insurance carriers and other 
     prospective purchasers (e.g., individuals, auction companies, 
     and used car dealers).
     The NMVTIS pilot
       AAMVA has developed a pilot NMVTIS. The design of the 
     system was selected by the U.S. jurisdictions as one that 
     posed the least burden on the states for creating, 
     maintaining, and operating a system for the exchange of 
     vehicle titling and brand data. The purpose of the pilot is 
     to confirm the feasibility and benefits of the system's 
     technical design and operational procedures. The pilot will 
     allow for a fine-tuning of the technical and procedural 
     issues prior to the national rollout of NMVTIS.
       Pilot participants are Kentucky, Massachusetts, Indiana, 
     Virginia, Florida, and Arizona.
     The Anti Car Theft Improvements Act
       To implement the National Motor Vehicle Title Information 
     System (NMVTIS) nationwide (i.e., post-pilot), the states 
     need Congressional authorization of funds for grants. The 
     Anti Car Theft Improvements Act of 1996 was signed into law 
     on July 2, 1996. It amends the Anti Car Theft Act of 1992 to:
       authorize funding for states' development of NMVTIS,
       remove the cap previously placed on state grant funding,
       give the Department of Justice the responsibility for the 
     information system, and
       move the date of implementation of NMVTIS to December 1997.
     Data available
       Data supported by this system and available to its users 
     include:
       registration and title data,
       brand history data,
       detailed vehicle data.
     Benefits of the system
       NMVTIS will allow for:
       Titling jurisdictions to verify the vehicle and title 
     information, obtain information on all brands ever applied to 
     a vehicle, and obtain information on whether the vehicle has 
     been reported stolen. This information can be received prior 
     to issuing a title, which allows the title jurisdiction to 
     verify the data before creating the title.
       The VIN is checked against a national pointer file, which 
     provides the last jurisdiction that issued a title on a 
     vehicle and requests details of the vehicle from that 
     jurisdiction. The details include the latest odometer reading 
     for the vehicle. This verification of title, brand, theft, 
     and odometer data will allow for a reduction in the issuance 
     of fraudulent titles and a reduction in odometer fraud. Once 
     the inquiring jurisdiction receives the information, it can 
     decide whether to issue a title; if so, NMVTIS notifies the 
     last titling jurisdiction that another jurisdiction has 
     issued a title. The old jurisdiction can then inactivate its 
     title record. This will allow jurisdictions to identify and 
     purge inactive titles on a regular basis.
       Law enforcement to create lists of vehicles, by junk yard, 
     salvage yard, or insurance carrier, that are reported as junk 
     or salvage. The Act requires junk yards, salvage yards, and 
     insurance carriers to report monthly to NMVTIS on all junk 
     and salvage vehicles obtained. Law enforcement's inquiries 
     will allow it to use NMVTIS to further its investigations of 
     vehicle theft and fraud.
       Manufacturers to dramatically reduce the use of paper 
     Manufacturer's Certificate of Origin. NMVTIS will incorporate 
     the functionality of the AAMVAnet Paperless MCO application, 
     which allows jurisdictions to inquire on an electronic MCO 
     file for data necessary to create the vehicle's first title. 
     The manufacturers reduce their use of the paper MCO, and the 
     jurisdictions build their initial title records from the 
     electronic data created by the manufacturers, which will 
     significantly reduce data entry errors.


                       THE VERY BAD DEBT BOXSCORE

  Mr. HELMS. Mr. President, at the close of business yesterday, 
Thursday, May 13, 1999, the federal debt stood at $5,579,720,008,674.59 
(Five trillion, five hundred seventy-nine billion, seven hundred twenty 
million, eight thousand, six hundred seventy-four dollars and fifty-
nine cents).
  One year ago, May 13, 1998, the federal debt stood at 
$5,492,157,000,000 (Five trillion, four hundred ninety-two billion, one 
hundred fifty-seven million).
  Five years ago, May 13, 1994, the federal debt stood at 
$4,579,502,000,000 (Four trillion, five hundred seventy-nine billion, 
five hundred two million).
  Twenty-five years ago, May 13, 1974, the federal debt stood at 
$469,298,000,000 (Four hundred sixty-nine billion, two hundred ninety-
eight million) which reflects a debt increase of more than $5 
trillion--$5,110,422,008,674.59 (Five trillion, one hundred ten 
billion, four hundred twenty-two million, eight thousand, six hundred 
seventy-four dollars and fifty-nine cents) during the past 25 years.

                          ____________________