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





                                                 Union Calendar No. 161

105th CONGRESS

  1st Session

                               H. R. 1839

                      [Report No. 105-285, Part I]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                           September 30, 1997

Reported from the Committee on Commerce with an amendment; referral to 
 the Committee on the Judiciary extended for a period ending not later 
    than September 30, 1997; Committee on the Judiciary discharged; 
   committed to the Committee of the Whole House on the State of the 
                    Union; and ordered to be printed





                                                 Union Calendar No. 161
105th CONGRESS
  1st Session
                                H. R. 1839

                      [Report No. 105-285, Part I]

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

                           September 30, 1997

Additional sponsors: Mr. Oxley, Mr. Brown of Ohio, Mr. Nethercutt, Mr. 
     Shays, Mr. Moran of Virginia, Mr. Gillmor, Mr. Adam Smith of 
 Washington, Mr. Dan Schaefer of Colorado, Mr. Wynn, Mr. Largent, Mr. 
  Gordon, Mr. Taylor of Mississippi, Mr. Snowbarger, Mr. Hansen, Mr. 
Skeen, Mr. Callahan, Mr. Klug, Mr. Burr of North Carolina, Mr. Rahall, 
  Mrs. Cubin, Mr. Bachus, Mr. Pallone, Mr. LaTourette, Mr. Goode, Mr. 
 Coburn, Mr. Cox of California, Mr. Rush, Mr. Wise, Mr. Whitfield, Mr. 
 Peterson of Pennsylvania, Mr. Tanner, Mr. Dellums, Mr. Mollohan, Mr. 
 Price of North Carolina, Mr. Kleczka, Mr. Snyder, Mr. Pickering, Mr. 
Duncan, Mr. Roemer, Mr. Calvert, Mr. Redmond, Mr. Bryant, Mr. Hinchey, 
 Mrs. Smith of Washington, Mr. McCrery, Mr. Everett, Mr. Baesler, Mrs. 
  Thurman, Mr. Pomeroy, Mr. Lucas of Oklahoma, Mr. John, Mr. Lewis of 
   Kentucky, Mr. Clement, Mr. Jefferson, Mr. Wicker, Mr. Schiff, Mr. 
Hilleary, Mr. Stearns, Mr. Stump, Mr. Doyle, Mr. Davis of Virginia, Mr. 
Canady of Florida, Mr. Christensen, Mr. Hall of Ohio, Mr. Gibbons, Mr. 
  Bereuter, Mrs. Maloney of New York, Mr. Gutknecht, Mrs. Fowler, Mr. 
 Blunt, Mr. Ramstad, Mr. Neumann, Mr. Talent, Mr. Barrett of Nebraska, 
 Ms. Harman, Mr. Royce, Mr. Boehlert, Mr. Knollenberg, Mr. Bass, Mrs. 
   Lowey, Mr. Goodlatte, Mr. Etheridge, Mr. Edwards, Mr. Latham, Ms. 
   DeLauro, Mr. Oberstar, Mr. Kennedy of Rhode Island, Mr. Ford, Mr. 
   Bunning, Mr. Weller, Mr. Barrett of Wisconsin, Mr. Aderholt, Mr. 
Cunningham, Mr. Skelton, Mr. Mascara, Ms. Kilpatrick, Mr. Mica, and Mr. 
                                Baldacci

                           September 30, 1997

       Reported from the Committee on Commerce with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                           September 30, 1997

Referral to the Committee on the Judiciary extended for a period ending 
                   not later than September 30, 1997

                           September 30, 1997

 Committee on the Judiciary discharged; committed to the Committee of 
  the Whole House on the State of the Union and ordered to be printed
 [For text of introduced bill, see copy of bill as introduced on June 
                               10, 1997]

_______________________________________________________________________

                                 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.

    (a) Amendment to Title 49, United States Code.--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 rebuilt 
                            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), except, notwithstanding section 32101(9), it shall 
        include a multipurpose passenger vehicle (constructed on a 
        truck chassis or with special features for occasional off-road 
        operation), or a truck, other than a truck referred to in 
        section 32101(10)(B), when that vehicle or truck is rated by 
        the manufacturer of such vehicle or truck at not more than 
        10,000 pounds gross vehicle weight, and except further, it 
        shall only include a vehicle manufactured primarily for use on 
        public streets, roads, and highways.
            ``(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 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 
                damage threshold 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)(8), 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)(8), 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)(8).
            ``(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 $7,500.
        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; or
                    ``(B) determined pursuant to a market survey of 
                comparable vehicles with regard to condition and 
                equipment.
            ``(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 
participating in the National Motor Vehicle Title Information System 
established under chapter 305 of subtitle VI of this title, 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 participating in the 
National Motor Vehicle Title Information System established under 
chapter 305 of subtitle VI of this title, 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 requirements:
            ``(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 operating under this paragraph shall be 
        subject to continuing review by and approval of the Secretary. 
        Any such anti-theft inspection program shall include the 
        following:
                    ``(A) A requirement that the owner of any passenger 
                motor vehicle submitting such vehicle for an anti-theft 
                inspection 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 that, to the knowledge of 
                the declarant, no stolen parts were used during the 
                rebuilding.
                    ``(B) A requirement to inspect the passenger motor 
                vehicle or any major part or any major replacement part 
                required to be marked under section 33102 for signs of 
                such mark or vehicle identification number being 
                illegally altered, defaced, or falsified. Any such 
                passenger motor vehicle or any such part 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.
            ``(8) 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 one or 
        more third parties, or permit self-inspection by a person 
        licensed by such State in an automotive-related business, all 
        subject to criteria promulgated by the Secretary hereunder. Any 
        State inspection program operating under this paragraph shall 
        be subject to continuing review by and approval of the 
        Secretary. A State requiring such safety inspection may require 
        the payment of a fee for the privilege of such inspection or 
        the processing thereof.
            ``(9) 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 of the Motor 
        Vehicle Titling, Registration and Salvage Advisory Committee.
            ``(10) 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 30 
                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 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, except to the extent such notification is 
                prohibited by State insurance law.
                    ``(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), (7), and (8), 
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 
                or vehicle registration, or both, 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 or registration, or both, shall be issued 
                to the owner. When a rebuilt salvage title is issued, 
                the State records shall so note.
            ``(11) 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.
            ``(12) 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 salvage vehicle due to damage by 
        flood, shall give the lessor written disclosure that the 
        vehicle is a salvage vehicle due to damage by flood.
            ``(13) 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.
            ``(14) 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.
            ``(15) 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 rebuilt 
              salvage vehicles
    ``(a) Written Disclosure Requirements.--
            ``(1) General rule.--Under regulations prescribed by the 
        Secretary of Transportation, a person transferring ownership of 
        a rebuilt salvage vehicle shall give the transferee a written 
        disclosure that the vehicle is a rebuilt salvage vehicle when 
        such person has actual knowledge of the status of such 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 rebuilt salvage 
        vehicle for resale may accept a disclosure under paragraph (1) 
        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 paragraph (1).
    ``(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 salvage vehicle before its first sale at retail 
        containing such information regarding that vehicle as the 
        Secretary may require. The label shall be affixed by the 
        individual who conducts the applicable State antitheft 
        inspection in a participating State.
            ``(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 salvage vehicle before the vehicle is delivered to the 
        actual custody and possession of the first retail purchaser.
``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 in States participating in the 
National Motor Vehicle Title Information System established under 
chapter 305 of subtitle VI of this title, 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); or
            ``(3) set forth titling, recordkeeping, anti-theft 
        inspection, or control procedures in connection with any 
        salvage vehicle, rebuilt salvage vehicle, or nonrepairable 
        vehicle.
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. Such disclosures shall include disclosures made on a 
certificate of title. 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)(8).
``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 or any disclosure made pursuant to section 33303;
            ``(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, a decal affixed to a 
        passenger motor vehicle pursuant to section 33302(b)(10)(I), or 
        any disclosure made pursuant to section 33303;
            ``(4) falsify the results of, or provide false information 
        in the course of, an inspection conducted pursuant to section 
        33302(b)(7) or (8);
            ``(5) offer to sell any salvage vehicle or nonrepairable 
        vehicle as a rebuilt salvage vehicle;
            ``(6) fail to make any disclosure required by section 
        33303, except when the person lacks actual knowledge of the 
        status of the rebuilt salvage vehicle;
            ``(7) violate a regulation prescribed under this chapter; 
        or
            ``(8) conspire to commit any of the acts enumerated in 
        paragraphs (1), (2), (3), (4), (5), (6), or (7).
    ``(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. A separate violation occurs for 
each passenger motor vehicle involved in the violation.
    ``(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 to 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 violated or is violating section 33302 or 33303, the State, 
as parens patriae, may bring a civil action on behalf of its residents 
in an appropriate district court of the United States or the 
appropriate State court 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 State Officials.--
            ``(1) Nothing contained in this section shall prohibit an 
        attorney general of a State or other 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.''.
    (b) Conforming Amendment.--The table of chapters for part C at the 
beginning of subtitle VI of title 49, United States Code, is amended by 
inserting at the end the following new item:

  333.  AUTOMOBILE SAFETY AND TITLE DISCLOSURE REQUIREMENTS       33301

SEC. 3. AMENDMENTS TO CHAPTER 305.

    (a) Definitions.--
            (1) Amend section 30501(4) of title 49, United States Code, 
        to read as follows:
            ``(4) `nonrepairable vehicle', `salvage vehicle', and 
        `rebuilt salvage vehicle' shall have the same meanings given 
        those terms in section 33301 of this title.''.
            (2) Strike paragraph (7) of section 30501 of title 49, 
        United States Code, and renumber the succeeding sections 
        accordingly.
    (b) National Motor Vehicle Title Information System.--
            (1) Amend section 30502(d)(3) of title 49, United States 
        Code, to read as follows:
            ``(3) whether an automobile known to be titled in a 
        particular State is or has been a nonrepairable vehicle, a 
        rebuilt salvage vehicle, or a salvage vehicle;''.
            (2) Amend section 30502(d)(5) of title 49, United States 
        Code, to read as follows:
            ``(5) whether an automobile bearing a known vehicle 
        identification number has been reported as a nonrepairable 
        vehicle, a rebuilt salvage vehicle, or a salvage vehicle under 
        section 30504 of this title.''.
    (c) State Participation.--Amend section 30503 of title 49, United 
States Code, to read as follows:
``Sec. 30503. State participation
    ``(a) State Participation.--No State may participate in the 
National Motor Vehicle Title Information System established under 
section 30502 of this title unless such State complies with the 
requirements of chapter 333 of this subtitle and the rule promulgated 
pursuant to section 33302 of this title.
    ``(b) State Information.--Each participating State shall make 
titling information maintained by that State available for use in 
operating the National Motor Vehicle Title Information System 
established or designated under section 30502 of this title.
    ``(c) Verification Checks.--Each participating 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. The check shall consist of--
            ``(1) communicating to the operator--
                    ``(A) the vehicle identification number of the 
                automobile for which the certificate of title is 
                sought;
                    ``(B) the name of the State that issued the most 
                recent certificate of title for the automobile; and
                    ``(C) the name of the individual or entity to whom 
                the certificate of title was issued; and
            ``(2) giving the operator an opportunity to communicate to 
        the participating State the results of a search of the 
        information.
    ``(d) Grants to States.--
            ``(1) In cooperation with the States and not later than 
        January 1, 1994, the Attorney General shall--
                    ``(A) conduct a review of systems used by the 
                States to compile and maintain information about the 
                titling of automobiles; and
                    ``(B) determine for each State the cost of making 
                titling information maintained by that State available 
                to the operator to meet the requirements of section 
                30502(d) of this title.
            ``(2) The Attorney General may make reasonable and 
        necessary grants to participating States to be used in making 
        titling information maintained by those States available to the 
        operator.
    ``(e) Report to Congress.--Not later than October 1, 1998, the 
Attorney General shall report to Congress on which States have met the 
requirements of this section. If a State has not met the requirements, 
the Attorney General shall describe the impediments that have resulted 
in the State's failure to meet the requirements.''.
    (d) Reporting Requirements.--Section 30504 of title 49, United 
States Code, is amended by striking ``junk automobiles or salvage 
automobiles'' every place it appears and inserting ``nonrepairable 
vehicles, rebuilt salvage vehicles, or salvage vehicles''.