[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 431 Reported in Senate (RS)]

                                                       Calendar No. 324

103d CONGRESS

  1st Session

                                 S. 431

                          [Report No. 103-197]

_______________________________________________________________________

                                 A BILL

      To amend the Motor Vehicle Information and Cost Savings Act.

_______________________________________________________________________

            November 20 (legislative day, November 2), 1993

                        Reported with amendments





                                                       Calendar No. 324
103d CONGRESS
  1st Session
                                 S. 431

                          [Report No. 103-197]

      To amend the Motor Vehicle Information and Cost Savings Act.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             February 24 (legislative day, January 5), 1993

    Mr. Exon (for himself, Mr. Lugar, Mr. Daschle, and Mr. Mathews) 
introduced the following bill; which was read twice and referred to the 
           Committee on Commerce, Science, and Transportation

            November 20 (legislative day, November 2), 1993

               Reported by Mr. Hollings, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL


 
      To amend the Motor Vehicle Information and Cost Savings Act.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

-S-E-C-T-I-O-N -1-. -S-H-O-R-T -T-I-T-L-E -A-N-D -R-E-F-E-R-E-N-C-E-.

    -(-a-) -S-h-o-r-t -T-i-t-l-e-.----T-h-i-s -A-c-t -m-a-y -b-e 
-c-i-t-e-d -a-s -t-h-e -`-`-V-e-h-i-c-l-e -D-a-m-a-g-e 
-D-i-s-c-l-o-s-u-r-e -A-c-t -o-f -1-9-9-3-'-'-.
    -(-b-) -R-e-f-e-r-e-n-c-e-.----W-h-e-n-e-v-e-r -i-n -t-h-i-s -A-c-t 
-a-n -a-m-e-n-d-m-e-n-t -o-r -r-e-p-e-a-l -i-s -e-x-p-r-e-s-s-e-d -i-n 
-t-e-r-m-s -o-f -a-n -a-m-e-n-d-m-e-n-t -t-o-, -o-r -r-e-p-e-a-l -o-f-, 
-a -s-e-c-t-i-o-n -o-r -o-t-h-e-r -p-r-o-v-i-s-i-o-n-, -t-h-e 
-r-e-f-e-r-e-n-c-e -s-h-a-l-l -b-e -c-o-n-s-i-d-e-r-e-d -t-o -b-e 
-m-a-d-e -t-o -a -s-e-c-t-i-o-n -o-r -o-t-h-e-r -p-r-o-v-i-s-i-o-n -o-f 
-t-h-e -M-o-t-o-r -V-e-h-i-c-l-e -I-n-f-o-r-m-a-t-i-o-n -a-n-d -C-o-s-t 
-S-a-v-i-n-g-s -A-c-t-.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Vehicle Damage Disclosure and 
Consumer Protection Act of 1993''.

-S-E-C-. -2-. -P-U-R-P-O-S-E-.

    -S-e-c-t-i-o-n -4-0-1 -(-4-9 -U-.-S-.-C-. -1-9-8-1-) -i-s 
-a-m-e-n-d-e-d---
            -(-1-) -b-y -i-n-s-e-r-t-i-n-g -a-f-t-e-r 
        -`-`-r-e-l-i-a-b-i-l-i-t-y-;-'-' -t-h-e -f-o-l-l-o-w-i-n-g-: 
        -`-`-t-h-a-t -a -d-e-s-i-g-n-a-t-i-o-n -b-y -a -S-t-a-t-e -o-n 
        -t-h-e -t-i-t-l-e -t-h-a-t -s-u-c-h -v-e-h-i-c-l-e -h-a-s 
        -p-r-e-v-i-o-u-s-l-y -s-u-s-t-a-i-n-e-d -m-a-j-o-r -d-a-m-a-g-e 
        -o-r -h-a-s -b-e-e-n -r-e-b-u-i-l-t -a-f-t-e-r -b-e-i-n-g 
        -d-e-c-l-a-r-e-d -`-j-u-n-k-' -o-r -`-s-a-l-v-a-g-e-' -i-s -a-n 
        -i-m-p-o-r-t-a-n-t -f-a-c-t-o-r -i-n -e-v-a-l-u-a-t-i-n-g 
        -t-h-e -v-a-l-u-e -a-n-d -s-a-f-e-t-y -o-f -s-u-c-h 
        -a-u-t-o-m-o-b-i-l-e-;-'-'-, -a-n-d
            -(-2-) -b-y -i-n-s-e-r-t-i-n-g -b-e-f-o-r-e -t-h-e 
        -p-e-r-i-o-d -t-h-e -f-o-l-l-o-w-i-n-g-: -`-`-o-r 
        -v-e-h-i-c-l-e-s -f-o-r -w-h-i-c-h -S-t-a-t-e-s -h-a-v-e 
        -p-r-e-v-i-o-u-s-l-y -i-s-s-u-e-d -a -t-i-t-l-e -b-r-a-n-d 
        -i-n-d-i-c-a-t-i-n-g -p-r-i-o-r -s-e-v-e-r-e -d-a-m-a-g-e-'-'-.

SEC. 2. PURPOSE.

    Section 401 of the Motor Vehicle Information and Cost Savings Act 
(15 U.S.C. 1981) is amended by inserting after the second sentence the 
following new sentences: ``It is also the purpose of this title to 
protect purchasers with respect to motor vehicles for which States have 
previously issued a title brand indicating prior damage. It is further 
the purpose of this title to protect purchasers with respect to motor 
vehicles which have been repurchased, replaced, or reacquired under a 
State lemon law.''.

SEC. 3. DEFINITIONS.

    Sec. 402 of the Motor Vehicle Information and Cost Savings Act (15 
U.S.C. 1982) is amended by adding at the end the following new 
paragraphs:
            ``(9) The term `manufacturer buyback vehicle' means a motor 
        vehicle that has been repurchased, replaced, or reacquired 
        pursuant to a State lemon law.
            ``(10) The term `State lemon law' means a State law 
        requiring that a motor vehicle manufacturer, distributor, or 
        dealer repurchase, replace, or reacquire a new motor vehicle 
        due to a nonconformity in materials or workmanship that renders 
        the vehicle unfit for ordinary use or reasonably intended 
        purposes.''.

SEC. -3-. 4. DISCLOSURE REQUIREMENTS UPON TRANSFER OF OWNERSHIP OF A 
              MOTOR VEHICLE.

    -S-e-c-t-i-o-n -4-0-8 -(-4-9 -U-.-S-.-C-. -1-9-8-8-) -i-s 
-a-m-e-n-d-e-d---
            -(-1-) -i-n -s-u-b-s-e-c-t-i-o-n -(-a-) -b-y 
        -i-n-s-e-r-t-i-n-g -`-`-o-n -t-h-e -t-i-t-l-e-'-' -a-f-t-e-r 
        -`-`-d-i-s-c-l-o-s-u-r-e-'-'-, -a-n-d
            -(-2-) -b-y -a-d-d-i-n-g -a-t -t-h-e -e-n-d -t-h-e 
        -f-o-l-l-o-w-i-n-g-:
    Section 408 of the Motor Vehicle Information and Cost Savings Act 
(15 U.S.C. 1988) is amended by adding at the end the following new 
subsection:
    ``(h)(1) Any motor vehicle the ownership of which is transferred 
may not be licensed for use in any State unless the State discloses on 
the title whether records readily accessible to it indicate--
            ``(A) whether the vehicle was previously issued a title 
        that bore any word or symbol signifying that the vehicle was 
        `salvage', `junk', `reconstructed', or -`-r-e-b-u-i-l-t-' -o-r 
        `rebuilt', that it has been damaged by flood, or that it was a 
        manufacturer buyback vehicle, and
            ``(B) if it was issued such a title, which State first 
        issued such a title.
    -`-`-(-2-) -T-h-e -S-e-c-r-e-t-a-r-y -s-h-a-l-l---
            -`-`-(-A-) -n-o-t -l-a-t-e-r -t-h-a-n -n-i-n-e-t-y -d-a-y-s 
        -a-f-t-e-r -t-h-e -d-a-t-e -o-f -t-h-e -e-n-a-c-t-m-e-n-t -o-f 
        -t-h-e -V-e-h-i-c-l-e -D-a-m-a-g-e -D-i-s-c-l-o-s-u-r-e -A-c-t 
        -o-f -1-9-9-3-, -p-r-e-s-c-r-i-b-e -b-y -r-u-l-e -t-h-e 
        -m-a-n-n-e-r -i-n -w-h-i-c-h -a -S-t-a-t-e -s-h-a-l-l 
        -d-i-s-c-l-o-s-e -t-h-e -i-n-f-o-r-m-a-t-i-o-n 
        -d-e-s-c-r-i-b-e-d -i-n -p-a-r-a-g-r-a-p-h -(-1-)-(-A-) -a-n-d 
        -t-h-e -m-a-n-n-e-r -i-n -w-h-i-c-h -s-u-c-h 
        -i-n-f-o-r-m-a-t-i-o-n -s-h-a-l-l -b-e -r-e-t-a-i-n-e-d-, 
        -a-n-d
            -`-`-(-B-) -n-o-t -l-a-t-e-r -t-h-a-n -t-w-e-l-v-e 
        -m-o-n-t-h-s -a-f-t-e-r -t-h-e -d-a-t-e -o-f -t-h-e 
        -e-n-a-c-t-m-e-n-t -o-f -s-u-c-h -A-c-t-, -i-n 
        -c-o-n-s-u-l-t-a-t-i-o-n -w-i-t-h -t-h-e -t-a-s-k -f-o-r-c-e 
        -e-s-t-a-b-l-i-s-h-e-d -u-n-d-e-r -s-e-c-t-i-o-n -1-4-0-(-a-) 
        -o-f -t-h-e -A-n-t-i -C-a-r -T-h-e-f-t -A-c-t -o-f -1-9-9-2 
        -(-1-5 -U-.-S-.-C-. -2-4-0-1 -n-o-t-e-)-, -p-r-e-s-c-r-i-b-e 
        -t-h-e -m-a-n-n-e-r -i-n -w-h-i-c-h -a-n-d -t-h-e 
        -c-i-r-c-u-m-s-t-a-n-c-e-s -u-n-d-e-r -w-h-i-c-h -S-t-a-t-e-s 
        -s-h-a-l-l -s-i-g-n-i-f-y -t-h-a-t -a -v-e-h-i-c-l-e -h-a-s 
        -p-r-e-v-i-o-u-s-l-y -s-u-s-t-a-i-n-e-d -m-a-j-o-r 
        -d-a-m-a-g-e-.-'-'-.
    ``(2) The Secretary shall--
            ``(A) not later than 90 days after the date of enactment of 
        the Vehicle Damage Disclosure and Consumer Protection Act of 
        1993, prescribe by rule the manner in which, and the date by 
        which, a State shall disclose the information described in 
        paragraph (1)(A) and the manner in which such information shall 
        be retained,
            ``(B) not later than 12 months after such date of 
        enactment, in consultation with the task force established 
        under section 140(a) of the Anti Car Theft Act of 1992 (15 
        U.S.C. 2041 note), prescribe by rule uniform minimum standards 
        and procedures relating to the disclosure by a State on a 
        vehicle certificate of title that a vehicle has sustained 
        severe damage,
            ``(C) study and develop recommendations (in consultation, 
        to the extent practicable, with the task force described in 
        subparagraph (B)) concerning whether, in order to maximize 
        consumer protection, a disclosure of the dollar value of damage 
        to a motor vehicle should be included on all of its 
        certificates of title, at times of title transfer, in any case 
        in which the motor vehicle has neither been declared a total 
        loss by an insurer or vehicle owner nor had its title branded 
        with any word or symbol signifying that the vehicle was 
        `salvage', `junk', `reconstructed', or `rebuilt' or that it was 
        damaged by flood, and
            ``(D) not later than 12 months after the date of enactment 
        of the Vehicle Damage Disclosure and Consumer Protection Act of 
        1993, prescribe by rule the minimum requirements of form and 
        content for State certificates of title.''.

SEC. 5. DISCLOSURE OF MANUFACTURER BUYBACK VEHICLES.

    (a) Study.--The Secretary of Transportation shall conduct a study 
of the various means that may be required by Federal law for disclosing 
to prospective purchasers that a motor vehicle is a manufacturer 
buyback vehicle. The study shall include a consideration of the 
advantages and disadvantages of such alternative, taking into account 
the cost to the vehicle manufacturer, distributor, or dealer of 
complying with such requirement and the effectiveness of the 
requirement in informing purchasers.
    (b) Means For Disclosure.--Among the means for disclosure that 
shall be the subject of the study required by this section are the 
following:
            (1) A national uniform sticker, affixed to the windshield 
        of a motor vehicle prior to a purchaser's agreement to purchase 
        the vehicle, that states that the vehicle is a manufacturer 
        buyback vehicle.
            (2) A national uniform consumer disclosure statement, 
        provided to any prospective purchaser before the purchase 
        agreement occurs, that--
                    (A) includes the motor vehicle make, model, year, 
                vehicle identification number, and any prior title 
                numbers and prior States of title; and
                    (B) discloses that the motor vehicle is (according 
                to records available to the State issuing the 
                certificate of title, including records from any State 
                in which a certificate of title has previously been 
                issued for such motor vehicle) a manufacturer buyback 
                vehicle.
    (c) Report to Congress.--The Secretary of Transportation shall, not 
later than 6 months after the date of enactment of this Act, report to 
the Committee on Commerce, Science, and Transportation of the Senate 
and the Committee on Energy and Commerce of the House of 
Representatives on the results of the study required by this section.
    (d) Definitions.--The terms ``manufacturer buyback vehicle'', 
``dealer'', and ``distributor'' have the meanings those terms have 
under section 402 of the Motor Vehicle Information and Cost Savings Act 
(15 U.S.C. 1988), as amended by this Act.
            Amend the title so as to read: ``A bill to amend the Motor 
        Vehicle Information and Cost Savings Act to provide for vehicle 
        damage disclosure and consumer protection.''.