Motor Vehicle Safety Authorization Act of 1986

Motor Vehicle Safety Authorization Act of 1985 - Amends the following Acts to authorize appropriations for FY 1986 and 1987: (1) the National Traffic and Motor Vehicle Safety Act of 1966; and (2) the Motor Vehicle Information and Cost Savings Act with respect to bumper standards, automobile consumer information and odometer requirements.

Prohibits the licensing of motor vehicles when the ownership is transferred unless: (1) the application for a new certificate of title is accompanied by the prior owner's title; and (2) the new certificate of title is printed in a specified manner indicating the odometer mileage.

Authorizes States to submit alternative mileage disclosure requirements for the approval of the Secretary of Transportation.

Provides that auction companies selling motor vehicles must maintain records showing: (1) the name of the most recent owner; (2) the vehicle identification number; and (3) the odometer reading on the date the auction company took possession of the vehicle.

Requires such mileage information to be disclosed by the lessee of a leased motor vehicle when the lease ends or is transferred.

Increases the civil penalty for violations of the odometer requirements from $1,000 to $2,000, and increases the criminal penalty for such violations from one to three years maximum imprisonment.

Amends the National Traffic and Motor Vehicle Safety Act of 1966 to authorize a tire dealer or distributor whose business is not owned or controlled by a tire manufacturer to elect to be subject to tire registration requirements.

Revises the restrictions on certain imported vehicles that do not conform to Federal standards. Authorizes the Secretary of Transportation to exempt certain motor vehicles or equipment from such restrictions for purposes of: (1) research, investigation, study, demonstration, training, or national security; (2) completion in the United States of an incomplete foreign-built vehicle or equipment item; or (3) importation by certain uniformed service members for personal use.

Requires motor vehicle distributors to furnish dealers with the manufacturer's certification previously furnished to the distributor.

Prohibits dealers from selling defective motor vehicles or motor vehicle equipment. Imposes criminal penalties upon manufacturers who knowingly and willfully fail to notify owners or purchasers of motor vehicle safety defects or of failures to comply with motor vehicle safety standards.

Amends the Motor Vehicle Information and Cost Savings Act to direct the Secretary to promulgate Federal motor vehicle safety standards, establishing passenger motor vehicle bumper system rating and labeling requirements. Requires that comparative information regarding bumper system impact speed rating be distributed to the public.

Directs the Secretary to arrange with the National Academy of Sciences to conduct a study of the effectiveness of State motor vehicle safety inspection programs in reducing highway accidents and limiting the number of defective or unsafe motor vehicles on the highways. Requires completion of the study and transmittal to the Congress by September 1, 1985.