[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1839 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1839

To establish nationally uniform requirements regarding the titling and 
     registration of salvage, nonrepairable, and rebuilt vehicles.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 10, 1997

Mr. White (for himself, Mr. Towns, Mr. Horn, Mr. Norwood, and Ms. Dunn) 
 introduced the following bill; which was referred to the Committee on 
  Commerce, and in addition to the Committee on the Judiciary, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
To establish nationally uniform requirements regarding the titling and 
     registration of salvage, nonrepairable, and rebuilt vehicles.

    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 ``National Salvage Motor Vehicle 
Consumer Protection Act of 1997''.

SEC. 2. MOTOR VEHICLE TITLING AND DISCLOSURE REQUIREMENTS.

    Subtitle VI of title 49, United States Code, is amended by 
inserting a new chapter at the end:

   ``Chapter 333--Automobile Safety and Title Disclosure Requirements

``Sec.
``33301. Definitions.
``33302. Passenger motor vehicle titling.
``33303. Disclosure and label requirements on transfer of salvage 
                            vehicles.
``33304. Report on funding.
``33305. Petitions for extensions of time.
``33306. Effect on State law.
``33307. Civil and criminal penalties.
``33308. Actions by States.
``Sec. 33301. Definitions
    ``For the purposes of this chapter:
            ``(1) Passenger motor vehicle.--The term `passenger motor 
        vehicle' shall have the same meaning given such term by section 
        32101(10).
            ``(2) Salvage vehicle.--The term `salvage vehicle' means 
        any passenger motor vehicle which--
                    ``(A) is a late model vehicle which has been 
                wrecked, destroyed, or damaged, to the extent that the 
                total estimated or actual cost of repairs to rebuild or 
                reconstruct the passenger motor vehicle to its 
                condition immediately before it was wrecked, destroyed, 
                or damaged, and for legal operation on the roads or 
                highways, exceeds 80 percent of the retail value of the 
                passenger motor vehicle;
                    ``(B) is a late model vehicle which has been 
                wrecked, destroyed, or damaged, and to which an 
                insurance company acquires ownership pursuant to a 
                damage settlement (except in the case of a settlement 
                in connection with a recovered stolen vehicle, unless 
                such vehicle sustained damage sufficient to meet the 
                cost limit prescribed by subparagraph (A); or
                    ``(C) the owner wishes to voluntarily designate as 
                a salvage vehicle by obtaining a salvage title, without 
                regard to the level of damage, age, or value of such 
                vehicle or any other factor, except that such 
                designation by the owner shall not impose on the 
                insurer of the passenger motor vehicle or on an insurer 
                processing a claim made by or on behalf of the owner of 
                the passenger motor vehicle any obligation or 
                liability.
            ``(3) Salvage title.--The term `salvage title' means a 
        passenger motor vehicle ownership document issued by the State 
        to the owner of a salvage vehicle. A salvage title shall be 
        conspicuously labeled with the word `salvage' across the front.
            ``(4) Rebuilt salvage vehicle.--The term `rebuilt salvage 
        vehicle' means--
                    ``(A) any passenger motor vehicle which was 
                previously issued a salvage title, has passed State 
                anti-theft inspection, has been issued a certificate 
                indicating that the passenger motor vehicle has passed 
                the required anti-theft inspection, has passed the 
                State safety inspection in those States requiring a 
                safety inspection pursuant to section 33302(b)(7), has 
                been issued a certificate indicating that the passenger 
                motor vehicle has passed the required safety inspection 
                in those States requiring such a safety inspection 
                pursuant to section 33302(b)(7), and has a decal 
                stating `Rebuilt Salvage Vehicle--Anti-theft and Safety 
                Inspections Passed' affixed to the driver's door jamb; 
                or
                    ``(B) any passenger motor vehicle which was 
                previously issued a salvage title, has passed a State 
                anti-theft inspection, has been issued a certificate 
                indicating that the passenger motor vehicle has passed 
                the required anti-theft inspection, and has, affixed to 
                the driver's door jamb, a decal stating `Rebuilt 
                Salvage Vehicle--Anti-theft Inspection Passed/No Safety 
                Inspection Pursuant to National Criteria' in those 
                States not requiring a safety inspection pursuant to 
                section 33302(b)(7).
            ``(5) Rebuilt salvage title.--The term `rebuilt salvage 
        title' means the passenger motor vehicle ownership document 
        issued by the State to the owner of a rebuilt salvage vehicle. 
        A rebuilt salvage title shall be conspicuously labeled either 
        with the words `Rebuilt Salvage Vehicle--Anti-theft and Safety 
        Inspections Passed' or `Rebuilt Salvage Vehicle--Anti-theft 
        Inspection Passed/No Safety Inspection Pursuant to National 
        Criteria,' as appropriate, across the front.
            ``(6) Nonrepairable vehicle.--The term `nonrepairable 
        vehicle' means any passenger motor vehicle which is incapable 
        of safe operation for use on roads or highways and which has no 
        resale value except as a source of parts or scrap only or which 
        the owner irreversibly designates as a source of parts or 
        scrap. Such passenger motor vehicle shall be issued a 
        nonrepairable vehicle certificate and shall never again be 
        titled or registered.
            ``(7) Nonrepairable vehicle certificate.--The term 
        `nonrepairable vehicle certificate' means a passenger motor 
        vehicle ownership document issued by the State to the owner of 
        a nonrepairable vehicle. A nonrepairable vehicle certificate 
        shall be conspicuously labeled with the word `Nonrepairable' 
        across the front.
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of Transportation.
            ``(9) Late model vehicle.--The term `Late Model Vehicle' 
        means any passenger motor vehicle which--
                    ``(A) has a manufacturer's model year designation 
                of or later than the year in which the vehicle was 
                wrecked, destroyed, or damaged, or any of the six 
                preceding years; or
                    ``(B) has a retail value of more than $10,000.
        The Secretary shall adjust such retail value on an annual basis 
        in accordance with changes in the consumer price index.
            ``(10) Retail value.--The term `retail value' means the 
        actual cash value, fair market value, or retail value of a 
        passenger motor vehicle as--
                    ``(A) set forth in a current edition of any 
                nationally recognized compilation (to include automated 
                databases) of retail values, as approved by the 
                Secretary; or
                    ``(B) determined pursuant to a market survey of 
                comparable vehicles with regard to condition and 
                equipment, in a manner approved by the Secretary.
            ``(11) Cost of repairs.--The term `cost of repairs' means 
        the estimated retail cost of parts needed to repair the vehicle 
        or, if the vehicle has been repaired, the actual retail cost of 
        the parts used in the repair, and the cost of labor computed by 
        using the hourly labor rate and time allocations that are 
        reasonable and customary in the automobile repair industry in 
        the community where the repairs are to be performed.
``Sec. 33302. Passenger motor vehicle titling
    ``(a) Carry-Forward of Information on a Newly Issued Title Where 
the Previous Title for the Vehicle Was Not Issued Pursuant to New 
Nationally Uniform Standards.--For any passenger motor vehicle, the 
ownership of which is transferred on or after the date that is 1 year 
from the date of the enactment of this chapter, each State, in 
licensing such vehicle for use, shall disclose in writing on the 
certificate of title whenever records readily accessible to the State 
indicate that the passenger motor vehicle was previously issued a title 
that bore any word or symbol signifying that the vehicle was `salvage', 
`unrebuildable', `parts only', `scrap', `junk', `nonrepairable', 
`reconstructed', `rebuilt', or any other symbol or word of like kind, 
or that it has been damaged by flood.
    ``(b) Nationally Uniform Title Standards and Control Methods.--Not 
later than 18 months after the date of the enactment of this chapter, 
the Secretary shall by rule require each State, in licensing any 
passenger motor vehicle where ownership of such passenger motor vehicle 
is transferred more than 2 years after publication of such final rule, 
to apply uniform standards, procedures, and methods for the issuance 
and control of titles for motor vehicles and for information to be 
contained on such titles. Such titling standards, control procedures, 
methods, and information shall include the following:
            ``(1) A State shall conspicuously indicate on the face of 
        the title or certificate for a passenger motor vehicle, as 
        applicable, if the passenger motor vehicle is a salvage 
        vehicle, a nonrepairable vehicle, or a rebuilt salvage vehicle 
        and whether such vehicle was damaged by flood.
            ``(2) Such information concerning a passenger motor 
        vehicle's status shall be conveyed on any subsequent title, 
        including a duplicate or replacement title, for the passenger 
        motor vehicle issued by the original titling State or any other 
        State.
            ``(3) The title documents, the certificates and, decals 
        required by section 33301(4), and the issuing system shall meet 
        security standards minimizing the opportunities for fraud.
            ``(4) The certificate of title shall include the passenger 
        motor vehicle make, model, body type, year, odometer 
        disclosure, and vehicle identification number.
            ``(5) The title documents shall maintain a uniform layout, 
        to be established in consultation with the State or an 
        organization representing them.
            ``(6) A passenger motor vehicle designated as nonrepairable 
        shall be issued a nonrepairable vehicle certificate and shall 
        not be retitled.
            ``(7) No rebuilt salvage title shall be issued to a salvage 
        vehicle unless, after the salvage vehicle is repaired or 
        rebuilt, it complies with the requirements for a rebuilt 
        salvage vehicle pursuant to section 33301(4). Any State 
        inspection program designed to comply with this paragraph shall 
        be subject to continuing review by and approval of the 
        Secretary. Such inspection program shall include the following:
                    ``(A) A passenger motor vehicle owner submitting a 
                vehicle for an anti-theft inspection shall be required 
                to provide a completed document identifying the 
                vehicle's damage prior to being repaired, a list of 
                replacement parts used to repair the vehicle, and proof 
                of ownership of such replacement parts, as may be 
                evidenced by bills of sale, invoices or, if such 
                documents are not available, other proof of ownership 
                for the replacement parts. The owner shall also include 
                an affirmation that the information in the declaration 
                is complete and accurate and, to the knowledge of the 
                declarant, no stolen parts were used during the 
                rebuilding.
                    ``(B) Any passenger motor vehicle or any major part 
                or major replacement part required to be marked under 
                section 33102 having a mark or vehicle identification 
                number that has been illegally altered, defaced, or 
                falsified, and that cannot be identified as having been 
                legally obtained (through bills of sale, invoices, or 
                other ownership documentation), shall be contraband and 
                subject to seizure. The Secretary, in consultation with 
                the Attorney General, shall, as part of the rule 
                required by this section, establish procedures for 
                dealing with those parts whose mark or vehicle 
                identification number is normally removed during 
                industry accepted remanufacturing or rebuilding 
                practices, which parts shall be deemed identified for 
                purposes of this section if they bear a conspicuous 
                mark of a type, and applied in such a manner, as 
                designated by the Secretary indicating that they have 
                been rebuilt or remanufactured. With respect to any 
                vehicle part, the Secretary's rule, as required by this 
                section, shall acknowledge that a mark or vehicle 
                identification number on such part may be legally 
                removed or altered as provided for in section 511 of 
                title 18, United States Code, and shall direct 
                inspectors to adopt such procedures as may be necessary 
                to prevent the seizure of a part from which the mark or 
                vehicle identification number has been legally removed 
                or altered.
                    ``(C) The Secretary shall establish nationally 
                uniform safety inspection criteria to be used in those 
                States requiring such a safety inspection. A State may 
                determine whether to conduct such safety inspection 
                itself, contract with a third party, or permit self-
                inspection, all subject to criteria promulgated by the 
                Secretary hereunder. A State requiring such safety 
                inspection may require the payment of a fee for the 
                privilege of such inspection or the processing thereof.
            ``(8) No duplicate or replacement title shall be issued 
        unless the word `duplicate' is clearly marked on the face 
        thereof and unless the procedures for such issuance are 
        substantially consistent with Recommendation three (3) of the 
        Motor Vehicle Titling, Registration and Salvage Advisory 
        Committee.
            ``(9) A State shall employ the following titling and 
        control methods:
                    ``(A) If an insurance company is not involved in a 
                damage settlement involving a salvage vehicle or a 
                nonrepairable vehicle, the passenger motor vehicle 
                owner shall apply for a salvage title or nonrepairable 
                vehicle certificate, whichever is applicable, before 
                the passenger motor vehicle is repaired or the 
                ownership of the passenger motor vehicle is 
                transferred, but in any event within 30 days after the 
                passenger motor vehicle is damaged.
                    ``(B) If an insurance company, pursuant to a damage 
                settlement, acquires ownership of a passenger motor 
                vehicle that has incurred damage requiring the vehicle 
                to be titled as a salvage vehicle or nonrepairable 
                vehicle, the insurance company or salvage facility or 
                other agent on its behalf shall apply for a salvage 
                title or nonrepairable vehicle certificate within 15 
                days after the title is properly assigned by the owner 
                to the insurance company and delivered to the insurance 
                company or salvage facility or other agent on its 
                behalf with all liens released.
                    ``(C) If an insurance company does not assume 
                ownership of an insured's or claimant's passenger motor 
                vehicle that has incurred damage requiring the vehicle 
                to be titled as a salvage vehicle or nonrepairable 
                vehicle, the insurance company shall, as required by 
                the applicable State, notify the owner of the owner's 
                obligation to apply for a salvage title or 
                nonrepairable vehicle certificate for the passenger 
                motor vehicle and notify the State passenger motor 
                vehicle titling office that a salvage title or 
                nonrepairable vehicle certificate should be issued for 
                the vehicle.
                    ``(D) If a leased passenger motor vehicle incurs 
                damage requiring the vehicle to be titled as a salvage 
vehicle or nonrepairable vehicle, the lessor shall apply for a salvage 
title or nonrepairable vehicle certificate within 21 days after being 
notified by the lessee that the vehicle has been so damaged, except 
when an insurance company, pursuant to a damage settlement, acquires 
ownership of the vehicle. The lessee of such vehicle shall inform the 
lessor that the leased vehicle has been so damaged within 30 days after 
the occurrence of the damage.
                    ``(E) Any person acquiring ownership of a damaged 
                passenger motor vehicle that meets the definition of a 
                salvage or nonrepairable vehicle for which a salvage 
                title or nonrepairable vehicle certificate has not been 
                issued, shall apply for a salvage title or 
                nonrepairable vehicle certificate, whichever is 
                applicable. This application shall be made before the 
                vehicle is further transferred, but in any event, 
                within 30 days after ownership is acquired. The 
                requirements of this subparagraph shall not apply to 
                any scrap metal processor which acquires a passenger 
                motor vehicle for the sole purpose of processing it 
                into prepared grades of scrap and which so processes 
                such vehicle.
                    ``(F) State records shall note when a nonrepairable 
                vehicle certificate is issued. No State shall issue a 
                nonrepairable vehicle certificate after 2 transfers of 
                ownership.
                    ``(G) When a passenger motor vehicle has been 
                flattened, baled, or shredded, whichever comes first, 
                the title or nonrepairable vehicle certificate for the 
                vehicle shall be surrendered to the State within 30 
                days. If the second transferee on a nonrepairable 
                vehicle certificate is unequipped to flatten, bale, or 
                shred the vehicle, such transferee shall, at the time 
                of final disposal of the vehicle, use the services of a 
                professional automotive recycler or professional scrap 
                processor who is hereby authorized to flatten, bale, or 
                shred the vehicle and to effect the surrender of the 
                nonrepairable vehicle certificate to the State on 
                behalf of such second transferee. State records shall 
                be updated to indicate the destruction of such vehicle 
                and no further ownership transactions for the vehicle 
                will be permitted. If different than the State of 
                origin of the title or nonrepairable vehicle 
                certificate, the State of surrender shall notify the 
                State of origin of the surrender of the title or 
                nonrepairable vehicle certificate and of the 
                destruction of such vehicle.
                    ``(H) When a salvage title is issued, the State 
                records shall so note. No State shall permit the 
                retitling for registration purposes or issuance of a 
                rebuilt salvage title for a passenger motor vehicle 
                with a salvage title without a certificate of 
                inspection, which complies with the security and 
                guideline standards established by the Secretary 
                pursuant to paragraphs (3) and (7), as applicable, 
                indicating that the vehicle has passed the inspections 
                required by the State. This subparagraph does not 
                preclude the issuance of a new salvage title for a 
                salvage vehicle after a transfer of ownership.
                    ``(I) After a passenger motor vehicle titled with a 
                salvage title has passed the inspections required by 
                the State, the inspection official will affix the 
                secure decal required pursuant to section 33301(4) to 
                the driver's door jamb of the vehicle and issue to the 
                owner of the vehicle a certificate indicating that the 
                passenger motor vehicle has passed the inspections 
                required by the State. The decal shall comply with the 
                permanency requirements established by the Secretary.
                    ``(J) The owner of a passenger motor vehicle titled 
                with a salvage title may obtain a rebuilt salvage title 
                and vehicle registration by presenting to the State the 
                salvage title, properly assigned, if applicable, along 
                with the certificate that the vehicle has passed the 
                inspections required by the State. With such proper 
                documentation and upon request, a rebuilt salvage title 
                and registration shall be issued to the owner. When a 
                rebuilt salvage title is issued, the State records 
                shall so note.
            ``(10) A seller of a passenger motor vehicle that becomes a 
        salvage vehicle due to damage by flood shall, at or prior to 
        the time of transfer of ownership, give the buyer a written 
        notice that the vehicle has been damaged by flood. At the time 
        of the next title application for the vehicle, disclosure of 
        the flood status shall be provided to the applicable State with 
        the properly assigned title and the word `Flood' shall be 
        conspicuously labeled across the front of the new title.
            ``(11) In the case of a leased passenger motor vehicle, the 
        lessee, within 15 days of the occurrence of the event that 
        caused the vehicle to become a flood vehicle, shall give the 
        lessor written disclosure that the vehicle is a flood vehicle.
    ``(c) Salvage Title.--Ownership of a passenger motor vehicle may be 
transferred on a salvage title, however, a passenger motor vehicle for 
which a salvage title has been issued shall not be registered for use 
on the roads or highways unless it has been issued a rebuilt salvage 
title.
    ``(d) Rebuilt Salvage Title.--Ownership of a passenger motor 
vehicle may be transferred on a rebuilt salvage title, and a passenger 
motor vehicle for which a rebuilt salvage title has been issued may be 
registered for use on the roads and highways.
    ``(e) Nonrepairable Vehicle Certificate.--Ownership of a passenger 
motor vehicle may only be transferred 2 times on a nonrepairable 
vehicle certificate. A passenger motor vehicle for which a 
nonrepairable vehicle certificate has been issued can never be titled 
or registered for use on roads or highways.
``Sec. 33303. Disclosure and label requirements on transfer of salvage 
              vehicles
    ``(a) Written Disclosure Requirements.--
            ``(1) General rule.--Under regulations prescribed by the 
        Secretary of Transportation, a person transferring ownership of 
        a salvage vehicle shall give the transferee a written 
        disclosure that the vehicle is a salvage vehicle.
            ``(2) False statement.--A person making a written 
        disclosure required by a regulation prescribed under paragraph 
        (1) of this subsection may not make a false statement in the 
        disclosure.
            ``(3) Completeness.--A person acquiring a salvage vehicle 
        for resale may accept a disclosure under subsection (a) only if 
        it is complete.
            ``(4) Regulations.--The regulations prescribed by the 
        Secretary shall provide the way in which information is 
        disclosed and retained under subsection (a).
    ``(b) Label Requirements.--
            ``(1) In general.--The Secretary shall by regulation 
        require that a label be affixed to the windshield or window of 
        a rebuilt or remanufactured salvage vehicle before its first 
        sale at retail containing such information regarding that 
        vehicle as the Secretary may require. The requirements 
        prescribed by the Secretary under this paragraph shall be 
        similar to the requirements of section 3 of the Automobile 
        Information Disclosure Act (15 U.S.C. 1232). The label shall be 
        affixed by the individual who conducts the applicable State 
        antitheft inspection.
            ``(2) Removal, alteration, or illegibility of required 
        label.--No person shall willfully remove, alter, or render 
        illegible any label required by paragraph (1) affixed to a 
        rebuilt or remanufactured salvage vehicle before the vehicle is 
        delivered to the actual custody and possession of the ultimate 
        purchaser of the vehicle.
``Sec. 33304. Report on funding
    ``The Secretary shall, contemporaneously with the issuance of a 
final rule pursuant to section 33302(b), report to appropriate 
committees of Congress whether the costs to the States of compliance 
with such rule can be met by user fees for issuance of titles, issuance 
of registrations, issuance of duplicate titles, inspection of rebuilt 
vehicles, or for the State services, or by earmarking any moneys 
collected through law enforcement action to enforce requirements 
established by such rule.
``Sec. 33305. Petitions for extensions of time
    ``The Secretary may grant a State, for good cause shown, an 
extension of time to comply with the requirements established in 
section 33302(a). No such extension shall remain in effect on or after 
the compliance date established pursuant to section 33302(b).
``Sec. 33306. Effect on State law
    ``(a) In General.--Effective on the date the rule promulgated 
pursuant to section 33302 becomes effective, the provisions of this 
chapter shall preempt all State laws, to the extent they are 
inconsistent with the provisions of this chapter or the rule 
promulgated pursuant to section 33302, which--
            ``(1) set forth the form of the passenger motor vehicle 
        title;
            ``(2) define, in connection with a passenger motor vehicle 
        (but not in connection with a passenger motor vehicle part or 
        part assembly separate from a passenger motor vehicle), any 
        term defined in section 33301 or the terms `salvage', `junk', 
        `reconstructed', `nonrepairable', `unrebuildable', `scrap', 
        `parts only', `rebuilt', `flood', or any other symbol or word 
        of like kind, or apply any of those terms to any passenger 
        motor vehicle (but not to a passenger motor vehicle part or 
        part assembly separate from a passenger motor vehicle); and
            ``(3) set forth titling, recordkeeping, anti-theft 
        inspection, or control procedures in connection with any 
        salvage vehicle, rebuilt salvage vehicle, nonrepairable 
vehicle, or flood vehicle defined in section 33301.
The requirements described in paragraph (3) shall not be construed to 
affect any State consumer law actions that may be available to 
residents of the State for violations of this chapter.
    ``(b) Construction.--Additional disclosures of a passenger motor 
vehicle's title status or history, in addition to the terms defined in 
section 33301, shall not be deemed inconsistent with the provisions of 
this chapter. When used in connection with a passenger motor vehicle 
(but not in connection with a passenger motor vehicle part or part 
assembly separate from a passenger motor vehicle), any definition of a 
term defined in section 33301 which is different than the definition in 
that section or any use of any term listed in subsection (a), but not 
defined in section 33301, shall be deemed inconsistent with the 
provisions of this chapter. Nothing in this chapter shall preclude a 
State from disclosing on a rebuilt salvage title that a rebuilt salvage 
vehicle has passed a State safety inspection which differed from the 
nationally uniform criteria to be promulgated pursuant to section 
33302(b)(7).
``Sec. 33307. Civil and criminal penalties
    ``(a) Prohibited Acts.--It shall be unlawful for any person 
knowingly and willfully to--
            ``(1) make or cause to be made any false statement on an 
        application for a title (or duplicate title) for a passenger 
        motor vehicle;
            ``(2) fail to apply for a salvage title when such an 
        application is required;
            ``(3) alter, forge, or counterfeit a certificate of title 
        (or an assignment thereof), a nonrepairable vehicle 
        certificate, a certificate verifying an anti-theft inspection 
        or an anti-theft and safety inspection, or a decal affixed to a 
        passenger motor vehicle pursuant to section 33302(b)(9)(I);
            ``(4) falsify the results of, or provide false information 
        in the course of, an inspection conducted pursuant to section 
        33302(b)(7);
            ``(5) offer to sell any salvage vehicle or nonrepairable 
        vehicle as a rebuilt salvage vehicle; or
            ``(6) conspire to commit any of the acts enumerated in 
        paragraphs (1), (2), (3), (4), and (5).
    ``(b) Civil Penalty.--Any person who commits an unlawful act as 
provided in subsection (a) of this section shall be fined a civil 
penalty of up to $2,000 per offense.
    ``(c) Criminal Penalty.--Any person who commits an unlawful act as 
provided in subsection (a) of this section shall be fined up to $50,000 
or sentenced up to 3 years imprisonment or both, per offense.
``Sec. 33308. Actions by States
    ``(a) In General.--Whenever an attorney general of any State has 
reason to believe that the interests of the residents of that State 
have been or are being threatened or adversely affected because any 
person has engaged or is engaging in a pattern or practice of violating 
section 33306, the State, as parens patriae, may bring a civil action 
on behalf of its residents in an appropriate district court of the 
United States to enjoin such violation or to enforce the civil 
penalties under section 33307 or may enforce the criminal penalties 
under section 33307.
    ``(b) Notice.--The State shall serve prior written notice of any 
civil or criminal action under subsection (a) or (e)(2) upon the 
Attorney General and provide the Attorney General with a copy of its 
complaint, except that if it is not feasible for the State to provide 
such prior notice, the State shall serve such notice immediately upon 
instituting such action. Upon receiving a notice respecting a civil or 
criminal action, the Attorney General shall have the right--
            ``(1) to intervene in such action;
            ``(2) upon so intervening, to be heard on all matters 
        arising therein; and
            ``(3) to file petitions for appeal.
    ``(c) Construction.--For purposes of bringing any civil or criminal 
action under subsection (a), nothing in this Act shall prevent an 
attorney general from exercising the powers conferred on the attorney 
general by the laws of such State to conduct investigations or to 
administer oaths or affirmations or to compel the attendance of 
witnesses or the production of documentary and other evidence.
    ``(d) Venue; Service of Process.--Any civil or criminal action 
brought under subsection (a) in a district court of the United States 
may be brought in the district in which the defendant is found, is an 
inhabitant, or transacts business or wherever venue is proper under 
section 1391 of title 28, United States Code. Process in such an action 
may be served in any district in which the defendant is an inhabitant 
or in which the defendant may be found.
    ``(e) Actions by Other State Officials.--
            ``(1) Nothing contained in this section shall prohibit an 
        authorized State official from proceeding in State court on the 
        basis of an alleged violation of any civil or criminal statute 
        of such State.
            ``(2) In addition to actions brought by an attorney general 
        of a State under subsection (a), such an action may be brought 
        by officers of such State who are authorized by the State to 
        bring actions in such State on behalf of its residents.''.
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