News in 2012

The Department of Justice has published enforcement information on how the National Motor Vehicle Title Information System (NMVTIS) penalty process will work. Under the NMVTIS regulations, failure to report junk, salvage and total loss vehicles as required may result in an assessment of a civil penalty of $1,000 per violation.

DOJ has released more information about how the fines will be decided, and it comes down to three factors – the size of the business, how large the violation was, and whether or not the business has at least tried to comply with the regulations. It also appears that cooperation will play a role, along with a business’ openness in responding to DOJ requests for information,the length of time vehicles have been unreported and whether or not the non- reporting was caused by “intentional inaction.”

NMVTIS Final Penalty Decision Considerations1

Size of the Business: Accounts for up to 25% of maximum penalty2

Generally determined by ascertaining the business gross profit.

• Level 1 (under $1,000,000 gross profits): 0 - 5% of maximum penalty

• Level 2 ($1,000,000 to $5,000,000 gross profits): 0 - 10% of maximum penalty

• Level 3 (over $5,000,000 to $10,000,000 gross profits): 0 - 20% of maximum penalty

• Level 4 (over $10,000,000 gross profits): 0 - 25% of maximum penalty

Gravity of Violation: Accounts for up to 50% of maximum penalty

Generally determined by the total number of unreported automobiles.

• Level 1 (under 100 unreported automobiles): 0 - 5% of maximum penalty

• Level 2 (100 to 500 unreported automobiles): 0 - 10% of maximum penalty

• Level 3 (over 500 to 2500 unreported automobiles): 0 - 25% of maximum penalty

• Level 4 (over 2500 unreported automobiles): 0 - 50% of maximum penalty

Demonstrated Willingness to Comply: Accounts for up to 25% of maximum

penalty

Generally determined by the number of automobiles identified in the Notice of Civil Penalty which have subsequently been reported to NMVTIS, as well as the ongoing reporting compliance of the business.

The following factors may, at the discretion of the Director of the

Bureau of Justice Assistance, aggravate or mitigate any penalty:

• The length of time that automobiles have gone unreported

• Whether non-reporting was due to negligent or intentional action/inaction

• Whether the business was forthcoming in responding to DOJ requests for information

• Whether automobiles were used in the commission of a crime or resulted in a purchaser’s being defrauded or injured

• Whether the business has been the subject of other proposed or final NMVTIS enforcement action by DOJ

• Other appropriate factors worthy of consideration to further the interests of justice

1For use in deciding the penalty subsequent to issuance of a Notice of Civil Penalty letter. 2The “maximum penalty” is $1,000 per automobile that is not reported to NMVTIS.

When it comes to proof of compliance, ADD has you covered. We’ve got NMVTIS reporting tools for every size business, and best of all – ADD provides NMVTIS record receipts and a reporting archive (for Full Service account) that give you proof of compliance, by listing each record reported, and when it was accepted by the national database.

Questions about NMVTIS compliance? [Email us](mailto:info@add123.com?subject=NMVTIS Penalty e-News Article) or call one of our live customer service representatives at 850-877-8804.