Used Car Safety Recall Repair Act
Bill: S.1835 | Sponsor: Sen. Blumenthal, Richard (D-CT)
Policy area: Transportation and Public Works

Summary:
Used Car Safety Recall Repair Act
This bill prohibits a dealer from selling, leasing, or loaning a used motor vehicle until a defect of the motor vehicle or motor vehicle equipment or noncompliance with a federal motor vehicle safety standard has been remedied, with specified exceptions.
The prohibition does not apply if
If a vehicle manufacturer fails to provide the dealer with a remedy for a used vehicle's safety defect within 60 days, the manufacture must pay the dealer an amount that is not less than one percent of the fair-market value of the vehicle per month. The total payment amount may not exceed the fair-market value of the vehicle.

To prohibit the sale, lease, or loan of used motor vehicles with open 
                 recalls to consumers by auto dealers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Used Car Safety Recall Repair Act''.

SEC. 2. USED MOTOR VEHICLE CONSUMER PROTECTION.

    (a) Definitions.--Section 30102(a) of title 49, United States Code, 
is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``chapter--'' and inserting ``chapter:'';
            (2) in each of paragraphs (1) through (13)--
                    (A) by inserting ``The term'' after the paragraph 
                designation; and
                    (B) by inserting a paragraph heading, the text of 
                which is comprised of the term defined in the 
                paragraph; and
            (3) by adding at the end the following:
            ``(14) Used motor vehicle.--The term `used motor vehicle' 
        means a motor vehicle that has previously been purchased other 
        than for resale.''.
    (b) Dealer Reimbursement and Limitation on the Sale, Lease, or Loan 
of Used Motor Vehicles.--Section 30120 of title 49, United States Code, 
is amended--
            (1) in subsection (f)--
                    (A) by redesignating paragraphs (1) and (2) as 
                paragraphs (2) and (1), respectively, and moving the 
                paragraphs so as to appear in numerical order;
                    (B) in paragraph (2) (as so redesignated), in the 
                paragraph heading, by striking ``In general'' and 
                inserting ``Reimbursement for remedy provided''; and
                    (C) by adding at the end the following:
            ``(3) Unavailable remedy for a used motor vehicle.--
                    ``(A) Definition of dealer.--In this paragraph, the 
                term `dealer' has the meaning given the term in 
                subsection (k)(1).
                    ``(B) Reimbursement.--
                            ``(i) In general.--If a dealer is in 
                        possession of a used motor vehicle and the 
                        manufacturer of that used motor vehicle has 
                        failed to make a remedy available by the date 
                        described in clause (ii), the manufacturer 
                        shall reimburse the dealer at the rate 
                        described in clause (iii) until the earlier 
                        of--
                                    ``(I) the date on which a remedy is 
                                made available by the manufacturer; and
                                    ``(II) the date on which the total 
                                amount of payments to a dealer under 
                                this paragraph equals the fair market 
                                value of the used motor vehicle.
                            ``(ii) Date described.--The date referred 
                        to in clause (i) is the date that is 60 days 
                        after the date described in section 30119(b) 
                        and specified by the manufacturer--
                                    ``(I) in a notification under 
                                section 30119(a)(5); or
                                    ``(II) under section 30121(c)(2).
                            ``(iii) Rate described.--The rate referred 
                        to in clause (i) is a rate determined by the 
                        Secretary that is not less than 1 percent of 
                        the fair market value of the used motor vehicle 
                        per month, which shall be prorated on a daily 
                        basis for each day that the used motor vehicle 
                        is in the possession of the dealer--
                                    ``(I) after the date described in 
                                clause (ii); and
                                    ``(II) before the date on which a 
                                remedy is made available by the 
                                manufacturer.
                            ``(iv) Limitation.--The total amount of 
                        payments to a dealer under this paragraph with 
                        respect to a used motor vehicle shall not 
                        exceed the fair market value of that used motor 
                        vehicle.''; and
            (2) by adding at the end the following:
    ``(k) Limitation on the Sale, Lease, or Loan of Used Motor 
Vehicles.--
            ``(1) Definition of dealer.--In this subsection, the term 
        `dealer' means a person that, during the 1-year period ending 
        on the date of the sale, lease, or loan of a used motor 
        vehicle, has sold at least 5 motor vehicles to buyers that in 
        good faith purchased the vehicles other than for resale.
            ``(2) Limitation.--Except as provided under paragraph (3), 
        a dealer shall not sell, lease, or loan a used motor vehicle 
        until after any defect or noncompliance for which notification 
        is required under subsection (b)(2)(A) or (c) of section 30118 
        with respect to the vehicle has been remedied.
            ``(3) Exception.--Paragraph (2) shall not apply if--
                    ``(A) the recall information regarding the used 
                motor vehicle--
                            ``(i) was not available at the time of 
                        sale, lease, or loan using the means 
                        established by the Secretary under section 
                        31301 of the Moving Ahead for Progress in the 
                        21st Century Act (49 U.S.C. 30166 note; Public 
                        Law 112-141); and
                            ``(ii) was not available on the website of 
                        the manufacturer;
                    ``(B) notification of the defect or noncompliance 
                is required by an order issued by the Secretary under 
                section 30118(b)(2), but enforcement of the order is 
                set aside in a civil action to which section 30121(d) 
                applies;
                    ``(C) the used motor vehicle is sold at wholesale; 
                or
                    ``(D)(i) the used motor vehicle is a junk 
                automobile (as defined in section 30501); and
                    ``(ii) all required information with respect to the 
                used motor vehicle has been reported to the National 
                Motor Vehicle Title Information System under section 
                30504.''.

SEC. 3. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
the date that is 1 year after the date of enactment of this Act.
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