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Public Statements

House Passes Bipartisan Legislation to Remove Red Tape Burdening American Auto Dealers

Press Release

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Date:
Location: Washington, DC

To help cut bureaucratic red tape and remove regulatory burdens on American businesses, the U.S. House of Representatives today approved H.R. 5859, a bipartisan bill to repeal an obsolete mandate requiring motor vehicle insurance cost reporting.

Reps. Gregg Harper (R-MS) and Bill Owens (D-NY) introduced the bipartisan measure to remove a costly and unnecessary reporting requirement that is burdening job-creators across the country. Specifically, the legislation eliminates a requirement for the National Highway Traffic Safety Administration to develop information on how damage susceptibility affects insurance rates for different makes and models of passenger vehicles and NHTSA's rule requiring car dealers to make such information available to prospective buyers. Research shows consumers rarely seek this information and other factors such as driver history, locale, and vehicle use have much greater influence on insurance rates than damage susceptibility.

"Today, we had the opportunity to slam the car door on an obsolete provision in the United States Code, requiring motor vehicle insurance cost reporting which is of little or no use to American consumers," said Commerce, Manufacturing, and Trade Subcommittee Chairman Mary Bono Mack (R-CA). "The requirement is simply not working as intended and has become a needless cost and burden to automobile dealers nationwide."

"This simple and bipartisan bill shows that Congress is serious about efforts to alleviate burdensome and unneeded regulations on businesses across the country," said Harper.

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