[House Report 112-591]
[From the U.S. Government Publishing Office]


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     112-591

======================================================================



 
   TO REPEAL AN OBSOLETE PROVISION IN TITLE 49, UNITED STATES CODE, 
            REQUIRING MOTOR VEHICLE INSURANCE COST REPORTING

                                _______
                                

 July 10, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Upton, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5859]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 5859) to repeal an obsolete provision in title 
49, United States Code, requiring motor vehicle insurance cost 
reporting, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
Statement of General Performance Goals and Objectives............     4
New Budget Authority, Entitlement Authority and Tax Expenditures.     4
Earmarks and Tax and Tariff Benefits.............................     4
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     5
Advisory Committee Statement.....................................     5
Applicability to Legislative Branch..............................     5
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     6

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. REPEAL.

  Subsection (c) of section 32302 of title 49, United States Code, is 
repealed, and any regulations promulgated under such subsection shall 
have no force or effect.

SEC. 2. DETERMINATION REGARDING PROVISION OF DAMAGE SUSCEPTIBILITY 
                    INFORMATION TO CONSUMERS.

  (a) In General.--Section 32302(b) of title 49, United States Code, is 
amended by adding at the end the following: ``The Secretary, after 
providing an opportunity for public comment, shall study and report to 
Congress the most useful data, format, and method for providing simple 
and understandable damage susceptibility information to consumers.''.
  (b) Deadline.--The Secretary of Transportation shall carry out the 
last sentence of section 32302(b) of title 49, United States Code, as 
added by subsection (a), not later than the date that is 2 years after 
the date of the enactment of this Act.

                          Purpose and Summary

    H.R. 5859 is bipartisan legislation to repeal an outdated 
provision of law that imposes unnecessary burdens on the 
Federal government and the private sector. Consistent with the 
goals of Executive Order 13563 to identify the least burdensome 
tools to achieve regulatory ends and to consider the costs and 
benefits of regulations, H.R. 5859 repeals an obsolete 
provision in Title 49 requiring the National Highway Traffic 
Safety Administration (NHTSA) to produce, and automobile 
dealers to provide a booklet of collision cost information.

                  Background and Need for Legislation

    The Chairman of the Subcommittee on Commerce, 
Manufacturing, and Trade convened a legislative hearing on H.R. 
5859 on June 1, 2012. The Subcommittee received testimony from 
private-sector and consumer advocate witnesses. The 
Subcommittee also received testimony from the Honorable Mike 
Kelly, Member of Congress.
    The 1972 Motor Vehicle Information and Cost Savings Act 
directed NHTSA to promulgate regulations requiring new-car 
dealers to give prospective buyers information comparing 
insurance rates for different makes and models of passenger 
motor vehicles based on their differences in damage 
susceptibility and crashworthiness. NHTSA issued a final rule 
on April 5, 1993. The rule requires new-car dealers to make 
available to buyers, upon request, a booklet containing the 
latest information on insurance costs. NHTSA annually updates 
the information based on data from the Highway Loss Data 
Institute.
    The information required by the regulation is rarely sought 
by consumers and its value to consumers in estimating insurance 
premiums is questionable. The insurance cost data is general, 
averaging repair costs from incidents ranging from a low-speed 
fender collision to a vehicle rollover. Insurance premiums are 
based on a number of factors that are unrelated to a vehicle's 
damage susceptibility, including the driver's age, driving 
record, location, and miles driven.
    New car dealers face civil penalties if they do not provide 
the booklet to consumers upon request. The Subcommittee 
received testimony from two experienced car dealers, 
Representative Mike Kelly from Pennsylvania and Mr. Jack 
Fitzgerald of Maryland, recalling no customer requesting a copy 
of the collision information document in all their years as 
either salesmen or dealership owners. Mr. Kelly also testified 
that in the combined 250-plus years of his sales staff, none 
recalled a single customer, out of the 10,000 car buyers 
visiting his showroom floor annually, requesting the document. 
Mr. Fitzgerald further testified that a recent survey of 815 
members of the National Automobile Dealers Association reported 
96 percent of its dealers had never been asked by a customer to 
see the insurance cost booklet.
    In addition to testimony that consumers rarely request the 
document, the Administration also determined the information is 
not useful to consumers in accurately determining insurance 
premiums. In its proposal to Congress, the ``Transportation 
Opportunities Act,'' the Administration recommended that 
subsection (c) of Section 32302, among others, be repealed:

          The publication of the insurance information obtained 
        under section 32303 consists of data generated by the 
        Highway Loss Data Institute, which ranks new cars by 
        their relative collision loss payments by insurance 
        companies. This information is provided to each new car 
        dealer for customer reference in making purchase 
        decisions. However, the data are rarely used and not 
        useful because the differences in rates due to loss 
        payments are overshadowed by differences in premiums 
        due to driver demographics, geographic location and the 
        relative prices of the vehicles. Though these rankings 
        provide an indication that one model will have a higher 
        collision insurance premium than another, a prospective 
        buyer still must consult an insurance agent to 
        determine how much the premium will differ according to 
        that person's specific personal information (e.g., age, 
        driving record, miles driven, home location). A 
        prospective buyer does not need a brochure from the 
        Federal government to obtain this information, since 
        insurance agents are trained to provide advice on how 
        model selection affects insurance premiums.

    The Committee finds the continued requirement to provide 
the collision information booklet to automobile dealers, and 
the continuing threat of civil penalties to dealers that fail 
to produce the document upon request, to be outdated, 
unjustified and a waste of resources. The Committee finds H.R. 
5859 reduces unnecessary burdens on both the Federal government 
and the private sector without harming consumers.

                                Hearings

    The Subcommittee on Commerce, Manufacturing, and Trade held 
a legislative hearing on Friday, June 1, 2012, entitled ``H.R. 
5865, the American Manufacturing Competitiveness Act of 2012, 
and H.R. 5859, a Bill to Repeal an Obsolete Provision in Title 
49, United States Code, Requiring Motor Vehicle Insurance Cost 
Reporting.'' Testimony regarding H.R. 5859 was received from 
the Honorable Mike Kelly, Member of Congress; the Honorable 
Joan Claybrook, President Emeritus, Public Citizen; and Mr. 
Jack Fitzgerald, Fitzgerald Auto Mall.

                        Committee Consideration

    On Thursday, June 7, 2012, the Subcommittee on Commerce, 
Manufacturing, and Trade met in open markup session and 
favorably forwarded H.R. 5859 to the full Committee by a voice 
vote. On Tuesday, June 19, 2012, the full Committee met in open 
markup session and considered H.R. 5859. The Committee 
reconvened on Wednesday, June 20, 2012, to continue 
consideration of H.R. 5859. The Committee ordered H.R. 5859, as 
amended, favorably reported to the House by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. No 
recorded votes were requested.

                      Committee Oversight Findings

    Regarding clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the oversight findings of the 
Committee regarding H.R. 5859 are reflected in this report.

         Statement of General Performance Goals and Objectives

    The purpose of H.R. 5859 is to repeal an outdated provision 
of law that imposes unnecessary burdens on the Federal 
government and the private sector.

    New Budget Authority, Entitlement Authority and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of budget authority and revenues prepared by 
the Director of the Congressional Budget Office pursuant to 
section 308(a) of the Congressional Budget Act of 1974. The 
Committee finds that H.R. 5859 would result in no new or 
increased entitlement authority or tax expenditures.

                  Earmarks and Tax and Tariff Benefits

    Regarding compliance with clause 9 of rule XXI of the Rules 
of the House of Representatives, H.R. 5859 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate on H.R. 
5859 prepared by the Director of the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act 
of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

H.R. 5859--A bill to repeal an obsolete provision in title 49, United 
        States Code, requiring motor vehicle insurance cost reporting

    CBO estimates that implementing H.R. 5859 would have no 
significant effect on the federal budget. Enacting the bill 
would not affect direct spending or revenues; therefore, pay-
as-you-go procedures do not apply.
    Under current law, the National Highway Traffic Safety 
Administration (NHTSA) requires dealers of motor vehicles to 
make available to prospective buyers information it prepares 
that compares the cost to insure different makes and models, 
based on a number of characteristics. H.R. 5859 would repeal 
that requirement. The bill also would require NHTSA to complete 
a study about the best way to get information to consumers 
about the likelihood of a vehicle being damaged in an accident. 
Based on information from the agency, CBO estimates that NHTSA 
spends less than $100,000 annually to prepare and distribute 
insurance information to dealers and that the costs to complete 
the study would also be small.
    H.R. 5859 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Sarah Puro. The 
estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates regarding H.R. 5859 prepared by the Director of the 
Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
5859.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act of 1995.

             Section-by-Section Analysis of the Legislation


Section 1. Repeal

    Section 1 repeals subsection (c) of section 32302 of title 
49, United States Code, and nullifies its implementing 
regulations. Section 32302 required the Secretary of 
Transportation to issue rules requiring motor vehicle dealers 
to distribute information on damage susceptibility and 
crashworthiness of new passenger motor vehicles upon the 
request of prospective buyers.

Section 2. Study regarding provision of damage susceptibility 
        information to consumers

    Section 2 calls for the Secretary of Transportation to 
study and, after public comment, to report to Congress his 
findings regarding the most useful data, format, and method for 
providing damage susceptibility information to consumers. The 
language of this provision is intended to leave open the 
possibility that the Secretary will find no damage 
susceptibility data that he regards as useful to consumers or 
that no useful format or method exists for providing damage 
susceptibility information to consumers. The section sets a 
deadline for completion at 2 years after the date of enactment 
of the Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                      TITLE 49, UNITED STATES CODE





           *       *       *       *       *       *       *
SUBTITLE VI--MOTOR VEHICLE AND DRIVER PROGRAMS

           *       *       *       *       *       *       *


PART C--INFORMATION, STANDARDS, AND REQUIREMENTS

           *       *       *       *       *       *       *


CHAPTER 323--CONSUMER INFORMATION

           *       *       *       *       *       *       *



Sec. 32302. Passenger motor vehicle information

  (a) * * *
  (b) Motor Vehicle Information.--To assist a consumer in 
buying a passenger motor vehicle, the Secretary shall provide 
to the public information developed under subsection (a) of 
this section. The information shall be in a simple and 
understandable form that allows comparison of the 
characteristics referred to in subsection (a)(1)-(3) of this 
section among the makes and models of passenger motor vehicles. 
The Secretary may require passenger motor vehicle dealers to 
distribute the information to prospective buyers. The 
Secretary, after providing an opportunity for public comment, 
shall study and report to Congress the most useful data, 
format, and method for providing simple and understandable 
damage susceptibility information to consumers.
  [(c) Insurance Cost Information.--The Secretary shall 
prescribe regulations that require passenger motor vehicle 
dealers to distribute to prospective buyers information the 
Secretary develops and provides to the dealers that compares 
insurance costs for different makes and models of passenger 
motor vehicles based on damage susceptibility and 
crashworthiness.]

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