STATE PARTICIPATION IN THE NATIONAL MOTOR VEHICLE TITLE INFORMATION SYSTEM.

SEC. 203. STATE PARTICIPATION IN THE NATIONAL MOTOR VEHICLE TITLE INFORMATION SYSTEM. (a) Requirements.— (1) Information sharing.— Each State shall make titling information maintained by such State available for use in establishing the National Motor Vehicle Title Information System established under section 202. (2) Title verification.— Each State shall establish a practice of performing an instant title verification check before issuing a certificate of title to an individual or entity claiming to have purchased an automobile from an individual or entity in another State. Such instant title verification check shall consist of— 106 STAT. 3392 (A) communicating to the operator the vehicle identification number of the vehicle for which the certificate of title is sought, the name of the State which issued the most recent certificate of title pertaining to the vehicle, and the name of the individual or entity to whom such certificate was issued; and (B) affording the operator an opportunity to communicate to the participating State the results of a search of the information. (b) Grants to States.— (1) Review of state systems.— Not later than January 1, 1994, the Secretary, in cooperation with the States, shall— (A) conduct a review of systems used by the States to compile and maintain information concerning the titling of automobiles, and (B) determine, for each State, the cost of making titling information maintained by such State available to the operator of the National Motor Vehicle Title Information System for the purpose of meeting the requirements of subsection (b). (2) Award of grants.— The Secretary may award grants to participating States to be used in making titling information maintained by such States available to the operator of the National Motor Vehicle Title Information System if— (A) for any State that is a recipient of such a grant, the grant does not exceed— (i) 25 percent of the cost of making titling information maintained by such State available to the operator of the National Motor Vehicle Title Information System as determined by the Secretary under subsection (d)(1)(B); or (ii) $300,000; whichever is lower; and (B) the Secretary determined that such grants are fair, reasonable, and necessary for the establishment of the National Motor Vehicle Title Information System under section 202(a)(1). (c) Report to Congress.—No later than January 1, 1997, the Secretary shall report to Congress which States have met the requirements imposed by section 203. If any State has not met these requirements, the Secretary shall describe the impediments that have resulted in the State's failure to meet the requirements.