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