National Motor Vehicle Title Information System (NMVTIS)

New! Notice of Proposed Rulemaking for the National Motor Vehicle Title Information System (NMVTIS) Open for Public Comment

The Bureau of Justice Assistance (BJA) and the Federal Bureau of Investigation's (FBI's) Criminal Investigative Division have partnered with other organizations in law enforcement and consumer protection to make the National Motor Vehicle Title Information System (NMVTIS) a reality, with all 50 states participating. NMVTIS is a DOJ information system designed to provide states with the ability to reliably verify the titling, theft, and damage history of a motor vehicle before a new title is issued.

Overview:
The National Motor Vehicle Title Information System (NMVTIS) is a system that allows an electronic means to verify and exchange titling, brand, and theft data among motor vehicle administrators, law enforcement officials, prospective purchasers, and insurance carriers. NMVTIS also allows state titling agencies to verify the validity of ownership documents before they issue new titles. NMVTIS also checks to see if the vehicle is reported "stolen"-if so, the states don't issue the new titles. Brands are not lost when the vehicle travels from state to state, because NMVTIS keeps a history of all brands ever applied by any state to the vehicle.

NMVTIS is a powerful tool that will allow for:

• State titling agencies to do their jobs to prevent fraudulent use of the title document by verifying the vehicle and title information, information on all brands ever applied to a vehicle, and information on whether the vehicle has been reported stolen-all prior to the titling jurisdiction issuing a new title. The vehicle identification number (VIN) is checked against a national pointer file, which provides the last jurisdiction that issued a title on the vehicle and requests details of the vehicle from that jurisdiction. The details include the latest odometer reading for the vehicle. Verification of this data will allow for a reduction in the issuance of fraudulent titles and a reduction in odometer fraud. Once the inquiring jurisdiction receives the information, it can decide whether to issue a title; if so, NMVTIS notifies the last titling jurisdiction that another jurisdiction has issued a title. The old jurisdiction can then inactivate its title record. This will allow jurisdictions to identify and purge inactive titles on a regular basis.
• Law enforcement to create lists of vehicles, by junk yard, salvage yard, or insurance carrier that are reported as junk or salvage. The Anti-Car Theft Improvements Act of 1996 requires junk yards, salvage yards, and insurance carriers to report monthly to NMVTIS on all junk and salvage vehicles obtained. Law enforcement's inquiries will allow it to use NMVTIS to further its investigations of vehicle theft and fraud.
• Consumers to access information on the vehicle's current title, including brands and odometer, prior to purchasing the vehicle. This allows the consumer to make a better-informed purchase.

Data supported by this system and available to its users include:

• Title data.
• Odometer data.
• Brand history, detailed vehicle, and theft data.

Download the NMVTIS Fact Sheet.

Why NMVTIS Is Needed:
Before NMVTIS, a thief could steal a car, then take it over the state line and get a valid title by presenting fraudulent ownership documentation. Or, the thief could steal a car, switch the VIN plate for one from a junked car, and get a valid title for the stolen car. These activities were possible because the states had no instant, reliable way of validating the information on the ownership documentation prior to issuing the new title.

These techniques, which exploit the fact that state title information systems are not connected to one another, pave the way for major crimes that can impact a state, a region, or the nation. Examples include:

• During Hurricane Katrina, thousands of motor vehicles were completely flooded and many remained under water for weeks before flood waters subsided. It was reported that in the weeks following Katrina, flooded vehicles had been seen being loaded onto car carriers to be taken to other states where they could be cleaned and sold as perfectly good used cars despite their obvious flood damage which jeopardizes the vehicles electrical and safety systems. This situation has serious consequences for not only commerce and law enforcement, but highway and citizen safety. For more information, read the National Insurance Crime Bureau's (NICB's) Flood Vehicles: Avoid Purchasing a Washed-Up Vehicle.
• The ability to disguise or clone a VIN number is particularly appealing to terrorist organizations. The first World Trade Center bombing, the Oklahoma City Murrah Federal Building bombing, and other incidents have been directly or indirectly solved by tracing VINs. Had these terrorists used a cloned VIN, the crimes may have been exponentially more difficult to solve or perhaps impossible. For more information on VIN cloning, view the FBI's Car Cloning: A New Twist on an Old Crime and NICB's It's Not a Feat of Science: Cloned Vehicles Are a Crime.
• In some states, the issue of methamphetamine contamination of vehicles has become a major concern. In fact, in at least one state, a vehicle title "brand" has been developed to label vehicles in which methamphetamine has been found to protect future owners from any residual contamination. If this state is not connected to NMVTIS, vehicles with this brand can have their titles washed of this brand and the vehicles can be retitled and resold in other states to unsuspecting consumers who could then be potentially exposed to residual methamphetamine contaminants. Other brands, including "flood vehicle" "salvage or total loss" or "damage/repair" could also be illegally "washed" from the titles.
• Vehicles that incur significant damage are considered "junk" or "salvage." Fraud occurs when junk or salvage vehicles are presented for sale to consumers without disclosure of their real condition. The unknowing consumers pay more than the vehicle is worth, and they don't know whether the vehicles have been adequately repaired and may be unsafe to drive.

In addition to these serious crimes, NMVTIS participation has resulted in improved outcomes in several participating states, including:

• South Dakota and New Hampshire have saved time and money by no longer requiring the clerk to manually update a state record with returned title information since such updates are automatically included in NMVTIS.
• Arizona has realized a reduction in customer wait time and the ability to identify problems upfront due to online, accurate data.
• Virginia has seen a 17 percent decrease in motor vehicle thefts.
• Arizona has experienced a 99 percent recovery rate on vehicles identified as stolen.
• Arizona, Florida and Virginia identified cloned vehicles by working together, prior to issuing new titles.
• Florida cracked a car theft ring responsible for cloning more than 250 cars worth $8 million.
• All participating states have recaptured brands lost by non-participating states.
• Indiana has experienced a reduction in lawsuits by consumers who were given clear titles with missing brands.
• New Hampshire's Motor Vehicle Supervisor stated the amount of funds spent to implement NMVTIS "represents a small fee considering the savings on…insurance fraud, cloning vehicles, stolen vehicles, odometer fraud, preventing washed brands for consumer protection-all thanks to NMVTIS!"

According to a cost-benefit study conducted by the National Institute of Justice, "The way NMVTIS is implemented-piecemeal, regionally, or nationally-will affect how criminals respond. Criminals are highly mobile and may avoid NMVTIS states until most of the country is covered by the system. Criminals use technology to their advantage, both to identify potential theft targets and to camouflage stolen vehicles." Given this, those states not currently participating in NMVTIS and the citizens therein may be disproportionately targeted by criminals committing vehicle crimes.

History:
NMVTIS was authorized or created by the Anti Car Theft Act of 1992 (Public Law 102-519). The Anti-Car Theft Improvements Act of 1996 assigned responsibility for implementing NMVTIS to the U.S. Department of Justice.

Since FY 1997, the Department of Justice, through BJA has provided over $15 million to the American Association of Motor Vehicle Administrators (AAMVA) for NMVTIS implementation. Since the Anti-Car Theft Act was initially passed in 1992, AAMVA has served as the system operator for NMVTIS, a role authorized under the Act.

In 1999, the then General Accounting Office (GAO) conducted a review of NMVTIS. The GAO report found that a life-cycle cost and benefits analysis should be conducted to determine if further federal funding of NMVTIS was warranted.

In 2001, at the request of the Department of Justice, the Logistics Management Institute (LMI) submitted a report to DOJ's National Institute of Justice, found that: "…NMVTIS-if it is fully implemented in all 50 states and the District of Columbia, and if it is 100 percent effective-can achieve benefits in the range of $4 billion to $11.3 billion annually."

In 2006, the Integrated Justice Information Systems (IJIS) Institute, a nonprofit organization made up of technology companies and formed to provide a single voice of industry in the development of new standards and practices in the law enforcement and justice information technology world, was asked by BJA to conduct a full review of the NMVTIS system architecture to identify any technological barriers to NMVTIS implementation and to determine if any potential cost savings was available through emerging technology. The IJIS Institute report found that: "…the NMVTIS program provides an invaluable benefit to state vehicle administrators and the public community as a whole. Advantages of the program including improving the state titling process, as well as providing key information to consumers and law enforcement agencies."

What the Law Requires:
The Anti-Car Theft Improvements Act of 1996 (the Act) prescribes the ongoing responsibilities of DOJ in the operation and oversight of NMVTIS. 49 U.S.C. § 30502(a)(1) directs the Attorney General to establish NMVTIS to accomplish specific automobile titling information objectives set forth in subsections (d) and (e)(1), which specify what information is to be made available and to whom, and to designate "an existing information system as the National Motor Vehicle Title Information System."

Under subsection (a)(2), the Attorney General is responsible for determining whether the information provided is "adequate, timely, reliable, uniform, and capable of assisting in efforts to prevent the introduction or reintroduction of stolen vehicles and parts into interstate commerce."

Subsection (b) provides that the Attorney General may authorize the operation of the system "by designating, after consultation with the States, a third party that represents the interest of the states."

Subsection (c) directs that the system shall be paid for by user fees, should be self-sufficient and not dependent on federal funding, and that the operator may not collect fees in excess of the costs of the operating the system.

49 U.S.C. § 30503 (a) directs each state to make its titling information available for use in operation of the NMVTIS "established or designated under section 30502," subsection (b) directs states to perform an instant title verification check before issuing a certificate of title, and subsection (c) authorizes grants to participating states to assist them in making titling information available to the operation.

49 U.S.C. § 30504 authorizes the Attorney General to establish, by regulation, detailed reporting requirements for both junk- and salvage-yard operators and insurance carriers. These reports would be filed "with the operator of the system" and used to meet the information requirements of 49 U.S.C. § 30502(d).

Current NMVTIS Implementation Status:
Currently, 25 states are involved in NMVTIS (60 percent of the U.S. vehicle population is represented), with an additional 11 states in development (see the NMVTIS Implementation Map) in 2008. States are involved with NMVTIS in one of two ways:

• Participating: Participating states provide files of all active titles and brands to the NMVTIS VIN pointer and brand files in real time or at least once every 24 hours, make inquiries into NMVTIS prior to issuing a new title, and provide updates as necessary to the NMVTIS files.
• Providing Data Only: Data only states provide files of all active titles and brands to the NMVTIS VIN pointer and brand files in real time or at least once every 24 hours.

States in development include those states that have a plan, timeline, and funding in place and are in the process of implementing the plan for some level of participation.

By the end of 2008, it is expected that NMVTIS will include information on more than 75 percent of the U.S. vehicle population.

NMVTIS Funding:
In FYs 2008 and 2007, BJA invited states to apply for funds to participate in NMVTIS. In both fiscal years, states were eligible to apply for funds to provide data or to fully participate in the system as is required by law. While FY 2008 award decisions have not yet been made, in FY 2007 BJA awarded funds to five states to begin their participation and awarded funds to AAMVA to assist with system administration and to supplement state participation fees received by AAMVA, as authorized under the Anti-Car Theft Act. Future awards will depend on funding availability.

Who Supports NMVTIS?:
Several major national, regional, and local organizations within and outside of the law enforcement community have endorsed NMVTIS and support DOJ's efforts to have states participate, including the:

• International Association of Chiefs of Police (IACP)
• International Association of Auto Theft Investigators (IAATI)
• National Insurance Crime Bureau (NICB)
• American Association of Motor Vehicle Administrators (AAMVA)
• North American Export Committee
• Consumers for Auto Reliability and Safety (CARS)
• Alliance of Automobile Manufacturers
• Automotive Recyclers Association
• Consumer Federation of America
• National Association of Consumer Advocates
• National Automobile Dealers Association
• National Consumers League
• National Sheriffs' Association

The Future of NMVTIS:
DOJ, primarily through the FBI and BJA, has developed a strategic approach to NMVTIS implementation, which includes the following:

• The development of proposed rules (regulations) by the FBI for NMVTIS implementation, which were issued for public comment in September 2008.
• The provision of seed funding for states to make connection with NMVTIS, is expected to be awarded again in FY 2008, depending on availability of funds. The system operator, AAMVA, received direct DOJ funding in FY 2007 as did several states.
• Establish immediate and direct access for state and local law enforcement to NMVTIS for law enforcement purposes, expected to be "live" in 2008.
• Continue to maintain a law enforcement working group consisting of local auto theft investigators from around the U.S. who can provide input into NMVTIS implementation.
• Support states through technical assistance available from BJA, including support from the IJIS Institute, which brings the expertise of the information technology industry to the table in a manner that does not burden the assistance recipient and does not require the adoption of proprietary solutions.
• Continue to make outreach to public and private organizations affected by NMVTIS and those who have a vested interest in ensuring state's participation.
• Implement a public access portal, as authorized under the Act, so that members of the public can, with a vehicle identification number, query NMVTIS for basic information including vehicle branding and other information.

Related Information:
National Motor Vehicle Title Information System (NMVTIS) Participation Program (FY 2008 Competitive Grant Announcement)
The application period is now closed.

Contact Information:
David P. Lewis, Senior Policy Advisor for Justice Information Systems
Bureau of Justice Assistance
810 Seventh Street NW.
Washington, DC 20531
202-616-7829
E-mail: david.p.lewis@usdoj.gov