119-s2956

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2956 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2956

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

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 September 30, 2025

Mr. Blumenthal introduced the following bill; which was read twice and 
 referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

 A BILL

 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
            (l) (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:
 ``
            (l) 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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