The U.S. Senate has unanimously passed bipartisan legislation originally introduced by U.S. Reps. Bill Owens (D-Plattsburgh) and Gregg Harper (R-Miss.) that removes what they describe as an obsolete federal mandate.
The old rule required the distribution each year of a booklet on motor vehicle insurance costs.
“There are bipartisan changes we can enact right away to lower costs, reduce burdens on small businesses and make government work better. This is one of them.” said Owens.
“I am pleased our legislation was agreed upon in the Senate and I look forward to seeing the process move forward.”
Under current law, the National Highway Traffic Safety Administration’s (NHTSA) is required each year to print a booklet entitled, “Relative Collision Insurance Cost Information.” They are then required to send this information in hardcopy to auto dealers around the country, who in turn are required to make it available to consumers or face penalties of $1,000 per violation.
According to NHTSA, the information is “rarely used” and “not useful.”
At the same time, a survey conducted by the National Association of Auto Dealers found that for 96 percent of dealers no customer had ever asked to see the information.
H.R. 5859 also requires the Department of Transportation to reconsider what data should be made available, and how best to do so.
“It is incumbent upon government to act efficiently and root out standing regulations or requirements that just don’t make sense,” Owens says. “This is a step in the right direction.”
The legislation, which passed in the House in July, was approved by the Senate last week.