Federal Motor Vehicle Theft Prevention Standard

DEPARTMENT OF TRANSPORTATION

49 CFR Part 541

[Docket No. 93-50; Notice 3]

RIN 2127-AE85

Federal Motor Vehicle Theft Prevention Standard

AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.

ACTION: Final rule.

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SUMMARY: In this final rule implementing the Anti Car Theft Act of

1992, NHTSA defines ``light duty truck'' (``LDT'') and ``multipurpose

passenger vehicle'' (``MPV'') for purposes of the Theft Prevention

Standard, specifies the LDT and MPV parts considered major parts for

the purpose of parts marking, and specifies the LDT and MPV lines that

are to be marked. NHTSA also specifies marking of selected lines with

below-median theft rates.

DATES: Effective date: This final rule takes effect on October 25,

1995. The changes made in this final rule apply beginning with model

year 1997.

Petitions for Reconsideration: Any petitions for reconsideration of

this rule must be received by NHTSA no later than January 12, 1995.

ADDRESSES: Petitions for reconsideration of this rule must refer to the

docket number and notice number cited in the heading of this final rule

and be submitted to: Administrator, National Highway Traffic Safety

Administration, 400 Seventh Street SW., Washington, D.C. 20590. It is

requested, but not required, that 10 copies be submitted.

FOR FURTHER INFORMATION CONTACT: Ms. Barbara A. Gray, Office of Market

Incentives, NHTSA, 400 Seventh Street SW., Washington, D.C. 20590. Ms.

Gray's telephone number is (202) 366-1740.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Anti Car Theft Act of 1992

II. Notice of Proposed Rulemaking

1. Definitions of ``Light Duty Truck'' and ``Multipurpose

Passenger Vehicle''

2. Specifying ``Major Parts''

3. Motor Vehicle Glazing as ``Major Parts''

4. Parts Marking for Non-High Theft Lines

III. Public Comments on the NPRM

1. Definitions of ``Light Duty Truck'' and ``Multipurpose

Passenger Vehicle''

2. Specifying ``Major Parts''

3. Marking of Motor Vehicle Glazing Parts

4. Parts Marking of Non-High-Theft Lines

5. Definition of ``1990/91 Median Theft Rate''

IV. Effective Date

V. Regulatory Impacts

1. E.O. 12866 and DOT Regulatory Policies and Procedures

2. Regulatory Flexibility Act

3. National Environmental Policy Act

4. Paperwork Reduction Act

5. Federalism

6. Civil Justice Reform

I. Anti Car Theft Act of 1992

The ``Anti Car Theft Act of 1992'' (ACTA) amended the law relating

to the labelling of major parts on high theft and other motor vehicles

that is now codified as 49 U.S.C. chapter 331 Theft Prevention. At 49

U.S.C. 33101(10), ``passenger motor vehicle'' is defined to include ``a

multipurpose passenger vehicle or light duty truck when that vehicle or

truck is rated at not more than 6,000 pounds gross vehicle weight.''

Since ``passenger motor vehicle'' was previously defined to include

passenger cars only, the effect of ACTA is that certain multipurpose

passenger vehicle (MPV) and light-duty truck (LDT) lines may be

determined to be high theft vehicles, subject to the Motor Vehicle

Theft Prevention Standard (49 CFR part 541).

The purpose of the Theft Prevention Standard is to reduce the

incidence of motor vehicle theft by facilitating the tracing and

recovery of parts from stolen vehicles. The standard seeks to

facilitate such tracing by requiring that vehicle identification

numbers (VINs), VIN derivative numbers, or other symbols be placed on

major motor vehicle parts. Each vehicle in a high theft line must have

its major parts and major replacement parts marked unless the line is

exempted from parts marking pursuant to 49 CFR part 543.

To conform the Theft Prevention Standard to ACTA, NHTSA issued on

July 7, 1993, an advance notice of proposed rulemaking (ANPRM) (58 FR

36376). NHTSA sought comments on definitions of multipurpose passenger

vehicles (MPVs) and light-duty trucks (LDTs) for the Theft Prevention

Standard, and on which parts of these vehicles should be considered

major parts and therefore subject to parts marking. After considering

the public comments on the ANPRM, NHTSA published a notice of proposed

rulemaking (NPRM) on July 8, 1994 (59 FR 35082), to amend the Theft

Prevention Standard. The issues that were raised in the NPRM, and the

public comments addressing them are discussed below.

II. Notice of Proposed Rulemaking

1. Definitions of ``Light Duty Truck'' and ``Multipurpose Passenger

Vehicle''

In the NPRM, NHTSA noted that since the statutory requirements for

``multipurpose passenger vehicles'' differ from those for ``light duty

trucks,'' these two terms must be clearly defined to make it possible

to determine whether a particular vehicle is an MPV or an LDT. Under

ACTA, since NHTSA must require some MPV's with below-median theft rates

to be marked, but the Act exempts LDTs with below-median theft rates

from coverage, NHTSA must ensure that a distinction between LDTs and

MPVs is made.

ACTA limits ``multipurpose passenger vehicles'' to those vehicles

rated at 6,000 pounds gross vehicle weight or less. Thus, NHTSA's

proposed definition of ``multipurpose passenger vehicle'' was:

A passenger motor vehicle which is constructed either on a truck

chassis or with special features for occasional off-road operation

and which is rated at 6,000 pounds gross vehicle weight or less.

ACTA does not define ``light-duty truck,'' and ACTA's legislative

history provided no guidance as to which vehicles to include in a

``light-duty truck'' definition for theft prevention purposes.

In the NPRM, NHTSA proposed to base its definition of ``light-duty

truck'' for Theft Prevention Standard purposes on NHTSA's definition of

``truck'' at 49 CFR 571.3: ``a motor vehicle with motive power, except

a trailer, designed primarily for the transportation of property or

special purpose equipment.'' After taking into account ACTA's 6,000

pound gross vehicle weight rating limitation, NHTSA proposed to define

``light-duty truck'' as:

A motor vehicle with motive power, except a trailer, designed

primarily for the transportation of property or special purpose

equipment, that is rated at 6,000 pounds gross vehicle weight or

less.

2. Specifying ``Major Parts''

NHTSA also sought public comments on major parts for MPVs and LDTs.

49 U.S.C. 33101(6)(A) through (K) specifies parts that are ``major

parts.'' Under section 33101(6)(L), NHTSA has authority to specify as

``major parts'' other parts that it specifies are ``comparable in

design or function to any of the parts listed.''

At 49 CFR 541.5, NHTSA has specified the major parts on high theft

passenger car lines that must be marked. With a few exceptions,

Sec. 541.5 lists all major parts specified in 49 U.S.C. 33101(6). The

agency did not use its authority to add additional parts to the list.

After passage of ACTA, there is no longer a statutory limit on the

number of parts per vehicle that may be marked. However, the costs of

marking a vehicle may not exceed $15 (in 1984 dollars).

In discussing the proposal for marking major parts for LDTs and/or

MPVs, NHTSA applied the same criteria used to select the current 14

major parts specified in the Theft Prevention Standard at

Sec. 541.5(a). The selection criteria are whether the parts are among

those most frequently repaired or most costly to replace. (See 50 FR

19728, at 19732; May 10, 1985.)

Relying on public comments in response to the ANPRM, NHTSA proposed

that parts listed in the Theft Prevention Standard at Sec. 541.5(a)(1)

through (11) should, if present on a vehicle, be treated as major parts

for MPVs and LDTs also. Since the 11 parts listed are among the most

frequently repaired and costly to replace, NHTSA tentatively found that

the parts, if present on MPVs and LDTs, should be major parts.

In the NPRM, NHTSA also proposed to designate additional parts as

major parts for MPVs and LDTs. Although right and left rear quarter

panels (designated as major parts in 49 CFR 541.5(a)(12) and (13)), are

not necessarily present on MPVs or LDTs, NHTSA proposed that for MPVs,

in lieu of quarter panels, side-panels should be designated as major

parts, and for LDTs, pickup boxes or cargo boxes should be designated

as major parts. NHTSA stated its belief that the side panels and pickup

or cargo boxes are among the parts most frequently repaired. NHTSA also

proposed to include cargo doors on an LDT or MPV, as major parts.

3. Motor Vehicle Glazing as ``Major Parts''

In response to the ANPRM, certain commenters recommended that

windows and other pieces of motor vehicle glazing be specified as major

parts for all high theft vehicles. One company, Prospective

Technologies, cited the relative ease with which vehicle glazing could

be marked, and the low cost of marking (which Prospective estimated to

be $5.00 per vehicle). Prospective also cited Nissan's success in

lowering theft rates of the Nissan 300ZX by as much as 26 per cent

after the windows of all 300ZX models were etched with the vehicle

identification number beginning in model year 1992.

Based in part on this favorable information, NHTSA proposed to

specify marking of passenger motor vehicle parts. NHTSA tentatively

agreed that specifying pieces of glazing as major parts to be marked

pursuant to the Theft Prevention Standard would further the statutory

purpose. Since the markings on glazing would be in plain view, all

types of motor vehicle theft, not just theft for the purposes of chop

shop operations or other trafficking in stolen motor vehicle parts,

might be deterred.

NHTSA sought comment whether lower theft rates would result if only

some glazing parts were specified for marking and if so, which parts

could be excluded. NHTSA also sought comment on three additional issues

arising from the proposal to require marking of glazing parts.

4. Parts Marking for Non-High Theft Lines

49 U.S.C. 33103 requires NHTSA, by October 25, 1994, to promulgate

a parts marking standard applicable to major parts installed by

manufacturers of ``passenger motor vehicles (other than light duty

trucks) in not to exceed one-half of the lines not designated under

section 33104 as high theft lines.'' In carrying out section 33103,

NHTSA began by reviewing theft rates of the 231 vehicle lines that were

listed in the 1990/91 theft data. (See 59 FR 12400, March 16, 1994) A

total of 116 vehicle lines (any line rated at number 116 or lower) was

in the eligible pool of lines potentially subject to parts marking

pursuant to section 33103.

Pursuant to the statutory mandate, NHTSA removed all light duty

truck lines from the eligible pool. Section 33103(a) further directs

NHTSA to select only lines ``not designated under section 33104 of this

title as high theft lines.'' Thus, NHTSA removed any passenger motor

vehicle line that NHTSA had previously determined to be high theft.

NHTSA tentatively applied the definition of ``light duty truck''

proposed in the NPRM, and stated it would make appropriate changes if a

different definition were adopted in the final rule.

After removing the ineligible lines, NHTSA determined that there

were 57 below-median lines still eligible for selection under section

33103. Out of the 57 below-median lines left, NHTSA designated the 28

lines with the highest theft rates to be marked pursuant to section

33103.

NHTSA proposed to list each of the selected lines in appendix B to

part 541. Pursuant to section 33103, NHTSA proposed that parts marking

for these below-median lines begin with MY 1996, the first model year

that begins at least six months after October 1994. Since section 33103

did not specify marking of replacement parts for below-median lines,

NHTSA did not propose to require marking for replacement parts.

III. Public Comments on the NPRM

In response to the NPRM, NHTSA received comments from 15

commenters: Advocates for Highway and Auto Safety (Advocates), the

American Automobile Manufacturers' Association (AAMA), Automark,

Chrysler, Ford, Honda, General Motors (GM), the International

Association of Auto Theft Investigators (IAATI), Isuzu, the National

Automobile Dealers Association (NADA), Nissan, Prospective

Technologies, Toyota, and Volkswagen. The commenters discussed the

issues raised in the NPRM as follows:

1. Definitions of ``Light Duty Truck'' and ``Multipurpose Passenger

Vehicle''

NHTSA received five comments on the definition of ``light duty

truck'' (LDT). Four commenters stated that NHTSA's proposed definition

of LDT was consistent with the Anti Car Theft Act of 1992, and should

not be changed. Advocates for Highway and Auto Safety, on the other

hand, stated that since ACTA was intended to expand the number and

types of vehicles subject to parts marking, the LDT definition should

be ``drawn as narrowly as reasonable under the circumstances.''

Advocates recommended that LDTs be defined as those vehicles: ``built

and intended for use exclusively for the transportation of property or

special purpose equipment.'' Thus, Advocates appears to urge that LDT

be defined to make as many low theft vehicle lines as possible subject

to parts marking.

In the agency's view, this outcome would be inconsistent with

Congress's action in exempting low-theft LDTs from the requirement.

Moreover, after reviewing the 1990/91 final theft data for LDT lines,

NHTSA found few LDT lines with below-median theft rates. If NHTSA

included all below-median LDT lines, only four additional vehicle lines

(the Nissan, Toyota, Isuzu, and Ford Ranger pick ups) would be added to

the 28 lines that were proposed for inclusion in appendix B.

Furthermore, since Advocates' definition would result in vehicles

being classified as MPVs for theft purposes that are classified as

trucks for vehicle identification number (VIN) purposes under the

vehicle safety standards, adopting Advocates' definition of LDT would

make it difficult for NHTSA to track and monitor the theft history of

these LDT lines through the use of VINs.

Since there were no other comments addressing the definition of

LDT, this final rule adopts the definition of ``light-duty truck''

proposed in the NPRM.

Since only Ford addressed the definition of ``multipurpose

passenger vehicle'' and it concurred with the definition discussed in

the NPRM, NHTSA is adopting the NPRM's definition of ``multipurpose

passenger vehicle.''

2. Specifying ``Major Parts''

Two commenters suggested specifying additional parts as ``major

parts.'' Advocates recommended the addition of airbag modules. IAATI

recommended that for LDTs and MPVs, the vehicle frame and radiator

support assemblies be added. NHTSA will not adopt these recommendations

because it does not determine that at present, airbag modules, frames,

and radiator support assemblies are among those parts most frequently

repaired or most costly to replace, the criteria NHTSA has used to

determine whether a part should be specified a ``major part.'' However,

since air bags will be mandatory for all passenger motor vehicles by

model year 1999, the determination for airbag modules may be changed.

Toyota stated that no additional parts should be specified until

there are ``positive results'' from a Justice Department study on the

efficacy of parts marking. This study is mandated at 49 U.S.C.

33103(d). NHTSA is not adopting Toyota's recommendation because the

Justice Department's findings are not due until December 1999. The ACTA

directs NHTSA, well before 1999, to extend coverage of the parts

marking requirements of the Theft Prevention Standard to LDTs and MPVs.

In order to effectively extend parts marking requirements to LDTs and

MPVs, NHTSA must specify parts unique to LDTS or MPVs that must be

marked.

For these reasons, NHTSA adopts as final the following as major

parts for passenger cars, LDTs, and MPVs: engine, transmission, right

and left front fenders, hood, right and left front doors, right and

left rear doors, sliding or cargo door(s), front and rear bumpers, and

the rear door (both doors in case of double doors), decklid, tailgate,

or hatchback (whichever is present). In addition, for passenger cars,

the right and rear quarter panels are major parts. For MPVs, the right-

side and left-side assemblies are major parts. For LDTs, the pickup

box, and/or cargo box are major parts.

3. Marking of Motor Vehicle Glazing Parts

Although NHTSA proposed specifying vehicle glazing parts as major

parts, the final rule does not specify any vehicle glazing parts as

major parts. Except for the Advocates and IAATI, all other commenters

opposed specifying glazing parts as major parts, and thus making

glazing subject to parts marking. Among the reasons cited was that

NHTSA does not have authority to require marking of parts that are not

among the ``major parts'' specified in 49 U.S.C. 33101(6) (A) through

(K), or are (under (L)) ``comparable in design or function to any of

the parts listed in subparagraphs (A) through (K).''

While NHTSA believes the statute gives the agency ample discretion

to determine that glazing parts are ``major parts,'' it has concluded

that the cost of such marking would make the cost per vehicle of

marking parts likely to exceed the statutory maximum. An important

rationale for NHTSA's proposal in the NPRM to require marking of

glazing parts was that it perceived the cost of marking glazing as

relatively low, when considering the lower theft rates shown in certain

vehicles with marked glazing. 49 U.S.C. 33105(a) limits the per vehicle

cost of parts marking to $15 (in 1984 dollars). In 1993 dollars, the

per vehicle costs of marking may not exceed $20.86 (see 59 FR 8021,

February 17, 1994). Since the experience of Prospective Technologies

appeared to show that marking of glazing would cost about $5.00 per

vehicle, NHTSA believed that even if it specified marking of glazing

parts, the per vehicle cost of marking would not exceed $20.86.

The public comments, however, questioned whether marking of glazing

could be done for as little as $5.00 per vehicle. GM noted that marking

glazing would add approximately $6.25 to the cost of marking each GM

vehicle, ``nearly doubling'' the per vehicle costs of parts marking. GM

further noted that the $6.25 costs do not include items such as

accidental glass breakage or glass replacement due to inadvertent VIN

error, or the costs of stencil cutter maintenance or stencil cutter

replacement. Although Toyota did not provide specific dollar figures,

it stated the $5.00 per vehicle cost of marking glazing was not

feasible, and that ``it is certain'' that the cost increase to mark

Toyota lines would be more than $15.00.

Nissan, the company which manufactures the Nissan 300ZX, whose

windows were marked by Prospective Technologies, estimated that the

current costs of marking vehicle parts (not including glazing) is

between $14 to $20. In contrast to Prospective's figure of $5.00 per

vehicle, Nissan estimated that the present cost of marking glazing on

its 300ZX line (at the port of entry, and using a chemical treatment

process) is $25.00 per vehicle.

Volkswagen stated that the 1990 cost of marking a Volkswagen

vehicle was 25.02 Deutsche marks, or approximately $15.77, to label all

parts, except for the engine and transmission. NHTSA notes that if the

cost of inflation since 1990, the cost of marking the engine and

transmission, and (using Prospective Technologies' figure of $5.00 per

vehicle) the cost to mark glazing were all added to the $15.77 figure,

Volkswagen's cost of marking a vehicle would exceed the $20.86 limit

specified in section 33105(a).

Based on the public comments received, NHTSA believes specifying

glazing parts as major parts, may make the costs of parts marking for

some manufacturers exceed the $20.86 limit specified in section

33105(a). Additionally, Ford noted that windows are rarely stolen as

replacement parts. NADA stated there is no evidence in the record

suggesting that vehicles are stolen for their glazing materials. Thus,

in this final rule, NHTSA is not specifying any glazing as a ``major

part'' under 49 CFR 541.5(a).

4. Parts Marking of Non-High-Theft Lines

Ford disagreed with the agency over how to distribute vehicle lines

between appendix A (high-theft lines) and the new appendix B (non-high-

theft lines that must now be marked). In Ford's view, appendix B should

include up to half of the vehicle lines that fall below the median,

regardless of whether such lines had previously been listed in appendix

A. The agency had proposed to exclude from appendix B any below-median

vehicle line that had been previously listed in appendix A, and to base

appendix B on up to half of the remaining below-median vehicle lines.

Under Ford's proposed method, up to 54 car lines would be listed in

appendix B, but many of these would be lines already included in

appendix A and therefore already required to have their parts marked.

Under the agency's method, 28 vehicle lines were proposed to be listed

in appendix B, none of which had previously had their parts marked.

After considering Ford's comment, NHTSA has concluded that the

agency's proposed method carries out ACTA's purpose more faithfully

than does Ford's method. As codified, section 33103(a) directs the

marking of parts on ``not more than 50 percent of the lines not

designated under section 33104 of this title as high theft lines.''

Section 33104, in turn, states that vehicle lines that were subject to

marking under the pre-ACTA law (i.e., the lines listed in appendix A)

continue to be subject to the requirements of the section. Read

together, the provisions support the agency's view that vehicle lines

previously listed in appendix A should continue to be listed in that

appendix and not in appendix B. The agency has adopted the procedure as

proposed and has determined the vehicle lines in appendix B

accordingly. However, Ford's comments have caused NHTSA to reexamine

the lines it proposed for inclusion in appendix B. The agency found 6

vehicle lines placed in the bottom quartile of the 1990/91 final theft

data. The 6 lines, the Ford Aerostar and Explorer, the General Motors

Oldsmobile Cutlass Cruiser, the Volvo 240 and 940, and the Volkswagen

Audi 80/90, will be removed from appendix B. NHTSA will also remove the

Daihatsu Rocky MPV from appendix B, since the Rocky is no longer sold

in the United States. The final rule lists the 21 remaining vehicle

lines.

5. Definition of ``1990/91 Median Theft Rate''

In addition to the foregoing, NHTSA proposed to include a

definition of ``1990/91 median theft rate.'' Based on 231 vehicle

lines, the 1990/91 median theft rate was 3.5826 thefts per thousand

vehicles produced. Since NHTSA received no comments on ``1990/91 median

theft rate,'' it is adopting the definition proposed in the NPRM.

In determining high or low theft lines, pursuant to 49 CFR part

542, Procedure for Selecting Lines to be Covered by the Theft

Prevention Standard, NHTSA proposed to apply the 1990/91 median theft

rate to passenger motor vehicle lines to be introduced for model year

(MY) 1996 and thereafter. However, as explained below, since this final

rule does not begin to apply to affected vehicle lines until MY 1997,

NHTSA will continue to apply the 1983/84 median theft rate to passenger

car lines introduced before MY 1997.

IV. Effective Date

In the NPRM, NHTSA proposed that the changes described in the NPRM,

if made final, would take effect beginning with model year 1996. With

the possible exception of Honda, all commenters requested a longer

leadtime than the April 25, 1995 proposed in the NPRM. The longer

leadtimes requested ranged from a year after publication of the final

rule (Mazda and Nissan) to September 1, 1996, almost two years after

publication of the final rule (Chrysler and General Motors).

As reasons for requesting the longer leadtime, the commenters

stated that extra time was needed to buy new equipment or to change

manufacturing processes. In particular, Chrysler stated that production

of its ``pull-ahead'' MY 1996 Chrysler Town and Country MPVs (already

selected by NHTSA as a high theft line) will begin in January 1995,

only two months after publication of the final rule. Since the changes

prescribed in this final rule take effect ``at least 6 months after the

date the standard is prescribed'' (49 U.S.C. 33103(e)), if the final

rule were to take effect on April 25, 1995, NHTSA could not require

marking of the Town and Country line.

After considering the comments, NHTSA has decided the new parts

marking procedures for LDTs, MPVs, and vehicle lines listed in appendix

B will take effect with MY 1997. NHTSA decided the extra lead time is

necessary because manufacturers are being required to mark new vehicle

types (MPVs and LDTs) and to mark low theft lines never before subject

to parts marking. Extra time is needed for manufacturers to buy

equipment, determine vehicles' target areas for parts marking, and to

decide whether to submit a petition for exemption from parts marking.

NHTSA also believes that all manufacturers should begin the new

procedures in the same model year. MY 1997 is the earliest model year

for which all manufacturers can ensure that their lines comply.

V. Regulatory Impacts

1. Executive Order 12866 and DOT Regulatory Policies and Procedures

This notice has not been reviewed under Executive Order 12866.

NHTSA has considered the impact of this rulemaking action and has

determined the action not to be ``significant'' under the Department of

Transportation's regulatory policies and procedures. This action

defines ``light-duty truck'' (LDT) and ``multipurpose passenger

vehicle'' (MPV) and specifies LDT and MPV parts that should be

considered ``major parts.'' As a result of defining LDT and MPV, those

lines are now included as ``passenger motor vehicle'' lines subject to

the Theft Prevention Standard. In this final rule, the definition of

LDT affects low theft lines that are selected for parts marking,

pursuant to 49 U.S.C. section 33103. Since section 33103(a) excludes

LDTs from its coverage, any passenger motor vehicle with a low theft

rate (other than an LDT) would be subject to parts marking. The

definition clarifies which vehicles Congress intended to be subject, as

LDTs, to the marking of high theft passenger motor vehicle lines, but

excluded from the potential rules for marking of low theft passenger

motor vehicle lines.

Similarly, the selection of the MPV and LDT parts to be marked is

already, in large part, decided by Congress in 49 U.S.C. 33101, since

the term ``major parts'' is defined at 49 U.S.C. 33101(6). However, the

agency has authority under section 33101(6)(L) to make modifications to

the statutory list, and for major parts of LDTs and MPVs, has exercised

this authority. The overall cost of marking the MPVs and LDTs would, in

any event, be limited to the $15 (in 1984 dollars), or $20.86 (in 1993

dollars, based on the U.S. Department of Labor's United States City

Average All Items Consumer Price Index for All Urban Consumers (See 59

FR 8021, February 17, 1994)) per vehicle maximum specified in section

33105(a).

In this final rule, high theft MPVs and LDTs, and lines listed in

Appendix B must add parts marking for a total of $5.06 per vehicle.

Based on 1991 production figures, an additional 7.4 million would need

to be marked, making the approximate cost of marking high theft MPVs,

LDTs, and lines listed in Appendix B, $37 million. However, NHTSA

believes the $37 million estimate is high because many manufacturers

will petition for approval to use an antitheft device, in lieu of parts

marking.

Thus, NHTSA estimates that the total cost of this final rule would

be approximately $37 million, considerably less than the $89 million

estimated in the NPRM, which included costs to mark glazing.

NHTSA cannot estimate the benefits of this final rule. The average

value of a stolen vehicle is approximately $6,100. Thus, this final

rule would have to result in the prevention of about 6,100 vehicle

thefts ($37 million divided by $6,100) to break even with the costs

imposed.

2. Regulatory Flexibility Act

The agency has also considered the effects of this rulemaking

action under the Regulatory Flexibility Act. I certify that this

proposed rule, if made final, will not have a significant economic

impact on a substantial number of small entities. As already noted,

this final rule defines ``light duty truck'' and ``multipurpose

passenger vehicle,'' and specifies parts for MPVs and LDTs that should

be designated as ``major parts.'' The final rule itself will have

minimal effects on small manufacturers of passenger motor vehicles, as

almost none of the manufacturers of passenger motor vehicles that may

be subject to this rule is considered a small business. This final rule

will have no effect on small organizations or governmental units that

purchase passenger motor vehicles. Accordingly, the agency has not

prepared a regulatory flexibility analysis.

3. National Environmental Policy Act

In accordance with the National Environmental Policy Act of 1969,

the agency has considered the environmental impacts of this proposed

rule and determined that if made final, it will not have a significant

impact on the quality of the human environment.

4. Paperwork Reduction Act

The procedures in this rule for manufacturers to mark vehicle

identification numbers on specified parts of high theft passenger motor

vehicle lines, are considered to be information collection requirements

as that term is defined by the Office of Management and Budget (OMB) in

5 CFR part 1320. The information collection requirements for part 541

have been submitted to and approved by the OMB, pursuant to the

requirements of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.).

This collection of information has been assigned OMB Control No. 2127-

0510, (Consolidated Vehicle Identification Number Requirements) and has

been approved for use through June 30, 1996.

5. Federalism

This action has been analyzed in accordance with the principles and

criteria contained in Executive Order 12612, and it has been determined

that the rule does not have sufficient federalism implications to

warrant the preparation of a Federalism Assessment.

6. Civil Justice Reform

This final rule would not have any retroactive effect, and it does

not preempt any State law. 49 U.S.C. 33117 provides that judicial

review of this rule may be obtained pursuant to 49 U.S.C. 32909.

Section 33117 does not require submission of a petition for

reconsideration or other administrative proceedings before parties may

file suit in court.

List of Subjects in 49 CFR Part 541

Administrative practice and procedure, Labeling, Motor vehicles,

Reporting and recordkeeping requirements.

In consideration of the foregoing, 49 CFR part 541 is amended as

follows:

PART 541--FEDERAL MOTOR VEHICLE THEFT PREVENTION STANDARD

1. The authority citation for part 541 is revised to read as

follows:

Authority: 49 U.S.C. 33101, 33102, 33103, 33105; delegation of

authority at 49 CFR 1.50.

2. Section 541.3 is revised to read as follows:

Sec. 541.3. Application.

This standard applies to the following:

(a) Passenger motor vehicle parts identified in Sec. 541.5(a) that

are present:

(1) In the passenger motor vehicle lines listed in Appendix A of

this part;

(2) Beginning with model year 1997, in passenger motor vehicle

lines which NHTSA has finally determined, pursuant to 49 CFR part 542,

to be high theft based on the 1990/91 median theft rate; and

(3) Beginning with model year 1997, in passenger motor vehicle

lines listed in Appendix B of this part.

(b) Replacement parts for passenger motor vehicle lines described

in Sec. 541.3(a) (1) and (2), if the part is identified in

Sec. 541.5(a).

3. Section 541.4 is revised to read as follows:

Sec. 541.4. Definitions.

(a) Statutory terms. All terms defined in 49 U.S.C. chapter 331 are

used in accordance with their statutory meanings unless otherwise

defined in paragraph (b) of this section.

(b) Other definitions. (1) Interior surface means, with respect to

a vehicle part, a surface that is not directly exposed to sun and

precipitation.

(2) Light-duty truck (LDT) means a motor vehicle, with motive

power, except a trailer, designed primarily for the transportation of

property or special purpose equipment, that is rated at 6,000 pounds

gross vehicle weight or less.

(3) Line means a name which a manufacturer applies to a group of

motor vehicles of the same make which have the same body or chassis, or

otherwise are similar in construction or design. A ``line'' may, for

example, include 2-door, 4-door, station wagon, and hatchback vehicles

of the same make.

(4) 1990/91 median theft rate means 3.5826 thefts per thousand

vehicles produced.

(5) Multipurpose passenger vehicle (MPV) means a passenger motor

vehicle which is constructed either on a truck chassis or with special

features for occasional off-road operation and which is rated at 6,000

pounds gross vehicle weight or less.

(6) Passenger car is used as defined in Sec. 571.3 of this chapter.

(7) VIN means the vehicle identification number required by part

565 and Sec. 571.115 of this chapter.

4. Section 541.5 is revised to read as follows:

Sec. 541.5 Requirements for passenger motor vehicles.

(a) Each passenger motor vehicle subject to this standard must have

an identifying number affixed or inscribed on each of the parts

specified in paragraphs (a)(1) through (a)(18) inclusive, if the part

is present on the passenger motor vehicle. In the case of passenger

motor vehicles not originally manufactured to comply with applicable

U.S. vehicle safety and bumper standards, each such motor vehicle

subject to this standard must have an identifying number inscribed in a

manner which conforms to paragraph (d)(2) of this section, on each of

the parts specified in paragraphs (a)(1) through (a)(18), inclusive, if

the part is present on the motor vehicle.

(1) Engine.

(2) Transmission.

(3) Right front fender.

(4) Left front fender.

(5) Hood.

(6) Right front door.

(7) Left front door.

(8) Right rear door.

(9) Left rear door.

(10) Sliding or cargo door(s).

(11) Front bumper.

(12) Rear bumper.

(13) Right rear quarter panel (passenger cars).

(14) Left rear quarter panel (passenger cars).

(15) Right-side assembly (MPVs).

(16) Left-side assembly (MPVs).

(17) Pickup box, and/or cargo box (LDTs).

(18) Rear door(s) (both doors in case of double doors), decklid,

tailgate, or hatchback (whichever is present).

(b) (1) Except as provided in paragraphs (b)(2) and (b)(3) of this

section, the number required to be inscribed or affixed by paragraph

(a) shall be the VIN of the passenger motor vehicle.

(2) In place of the VIN, manufacturers who were marking engines

and/or transmissions with a VIN derivative consisting of at least the

last eight characters of the VIN on October 24, 1984, may continue to

mark engines and/or transmissions with such VIN derivative.

(3) In the case of passenger motor vehicles not originally

manufactured to comply with U.S. vehicle safety and bumper standards,

the number required to be inscribed by paragraph (a) of this section

shall be the original vehicle identification number assigned to the

motor vehicle by its original manufacturer in the country where the

motor vehicle was originally produced or assembled.

(c) The characteristics of the number required to be affixed or

inscribed by paragraph (a) of this section shall satisfy the size and

style requirements set forth for vehicle certification labels in

Sec. 567.4(g) of this chapter.

(d) The number required by paragraph (a) of this section must be

affixed by means that comply with paragraph (d)(1) of this section or

inscribed by means that comply with paragraph (d)(2) of this section.

(1) Labels. (i) The number must be printed indelibly on a label,

and the label must be permanently affixed to the passenger motor

vehicle's part.

(ii) The number must be placed on each part specified in paragraph

(a) of this section in a location such that the number is, if

practicable, on an interior surface of the part as installed on the

vehicle and in a location where it:

(A) Will not be damaged by the use of any tools necessary to

install, adjust, or remove the part and any adjoining parts, or any

portions thereof;

(B) Is on a portion of the part not likely to be damaged in a

collision; and

(C) Will not be damaged or obscured during normal dealer

preparation operations (including rustproofing and undercoating).

(iii) The number must be placed on each part specified in paragraph

(a) of this section in a location that is visible without further

disassembly once the part has been removed from the vehicle.

(iv) The number must be placed entirely within the target area

specified by the original manufacturer for that part, pursuant to

paragraph (e) of this section, on each part specified in paragraph (a)

of this section.

(v) Removal of the label must--

(A) Cause the label to self-destruct by tearing or rendering the

number on the label illegible, and

(B) Discernibly alter the appearance of that area of the part where

the label was affixed by leaving residual parts of the label or

adhesive in that area, so that investigators will have evidence that a

label was originally present.

(vi) Alteration of the number on the label must leave traces of the

original number or otherwise visibly alter the appearance of the label

material.

(vii) The label and the number shall be resistant to

counterfeiting.

(viii) The logo or some other unique identifier of the vehicle

manufacturer must be placed in the material of the label in a manner

such that alteration or removal of the logo visibly alters the

appearance of the label.

(2) Other means of identification. (i) Removal or alteration of any

portion of the number must visibly alter the appearance of the section

of the vehicle part on which the identification is marked.

(ii) The number must be placed on each part specified in paragraph

(a) of this section in a location that is visible without further

disassembly once the part has been removed from the vehicle.

(iii) The number must be placed entirely within the target area

specified by the original manufacturer for that part, pursuant to

paragraph (e) of this section, on each part specified in paragraph (a)

of this section.

(e) Target areas. (1) Each manufacturer that is the original

producer who installs or assembles the covered major parts on a line

shall designate a target area for the identifying numbers to be marked

on each part specified in paragraph (a) of this section for each of its

lines subject to this standard. The target area shall not exceed 50

percent of the surface area on the surface of the part on which the

target area is located.

(2) Each manufacturer subject to paragraph (e)(1) of this section

shall, not later than 30 days before the line is introduced into

commerce, inform NHTSA in writing of the target areas designated for

each line listed in Appendix A. The information should be submitted to:

Administrator, National Highway Traffic Safety Administration, 400

Seventh Street, SW, Washington, DC 20590.

(3) The target areas designated by the original vehicle

manufacturer for a part on a line shall be maintained for the duration

of the production of such line, unless a restyling of the part makes it

no longer practicable to mark the part within the original target area.

If there is such a restyling, the original vehicle manufacturer shall

inform NHTSA of that fact and the new target area, in accordance with

the requirements of paragraph (e)(2) of this section.

5. The heading of appendix A to part 541 is revised to read as

follows:

Appendix A--High Theft Passenger Motor Vehicles Lines Subject to the

Requirements of This Standard

6. Appendix B to part 541 is revised to read as follows:

Appendix B--Passenger Motor Vehicle Lines (Except Light Duty Trucks)

With Theft Rates Below the 1990/91 Median Theft Rate, Subject to the

Requirements of This Standard

------------------------------------------------------------------------

Manufacturer Subject lines

------------------------------------------------------------------------

Chrysler............ Dodge Ramcharger (MPV).

Dodge Ram Wagon/Van B150.

Ferrari............. Testarossa.

Ford................ Crown Victoria.

Festiva.

Mercury Grand Marquis.

Mercury Sable.

Taurus.

General Motors...... Chevrolet Astro (MPV).

Chevrolet Celebrity.

Chevrolet Sprint.

GMC Safari (MPV).

Oldsmobile Custom Cruiser.

Honda............... Civic.

Mazda............... Navajo.

Nissan.............. Axxess.

Porsche............. 944.

Rover Group......... Range Rover (MPV).

Volvo............... 760.

Volkswagen.......... Fox.

Passat.

------------------------------------------------------------------------

Issued on: December 6, 1994.

Ricardo Martinez,

Administrator.

[FR Doc. 94-30588 Filed 12-12-94; 8:45 am]

BILLING CODE 4910-59-P