[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 852 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
105th CONGRESS
  2d Session
                                 S. 852

_______________________________________________________________________

                                 AN ACT


 
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 1998''.

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 
                            Federal salvage vehicles.
``33304. Report on funding.
``33305. Effect on State law.
``33306. Civil penalties.
``33307. Actions by States.
``Sec. 33301. Definitions
    ``(a) Definitions.--For the purposes of this chapter:
            ``(1) Passenger motor vehicle.--The term `passenger motor 
        vehicle' has the same meaning given such term by section 
        32101(10), except, notwithstanding section 32101(9), it 
        includes a multipurpose passenger vehicle (constructed on a 
        truck chassis or with special features for occasional off-road 
        operation), a truck, other than a truck referred to in section 
        32101(10)(B), and a pickup truck 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 it only includes a 
        vehicle manufactured primarily for use on public streets, 
        roads, and highways.
            ``(2) Federal salvage vehicle.--The term `Federal salvage 
        vehicle' means any passenger motor vehicle, other than a flood 
        vehicle or a nonrepairable 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 75 
                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 Federal 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.
        Notwithstanding any other provision of this chapter, a State 
        may use the term `older model salvage vehicle' to designate a 
        wrecked, destroyed, or damaged vehicle that does not meet the 
        definition of a late model vehicle in paragraph (9). If a 
        State, as of the date of enactment of the National Salvage 
        Motor Vehicle Consumer Protection Act of 1998, has established 
        a salvage definition at a lesser percentage than provided under 
        subparagraph (A), then that definition shall not be considered 
        to be inconsistent with the provisions of this chapter.
            ``(3) Federal salvage title.--The term `Federal salvage 
        title' means a passenger motor vehicle ownership document 
        issued by the State to the owner of a Federal salvage vehicle. 
        A Federal salvage title shall be conspicuously labeled with the 
        words `Federal salvage' across the front.
            ``(4) Federal rebuilt salvage vehicle.--The term `Federal 
        rebuilt salvage vehicle' means--
                    ``(A) any passenger motor vehicle which was 
                previously issued a Federal 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 `Federal 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 Federal 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 
                `Federal 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) Federal rebuilt salvage title.--The term `Federal 
        rebuilt salvage title' means the passenger motor vehicle 
        ownership document issued by the State to the owner of a 
        Federal rebuilt salvage vehicle. A Federal rebuilt salvage 
        title shall be conspicuously labeled either with the words 
        `Federal Rebuilt Salvage Vehicle--Anti-theft and Safety 
        Inspections Passed' or `Federal Rebuilt Salvage Vehicle--Anti-
        theft Inspection Passed/No Safety Inspection Pursuant to 
        National Criteria', as appropriate, across the front.
            ``(6) Federal nonrepairable vehicle.--The term `Federal 
        nonrepairable vehicle' means any passenger motor vehicle, other 
        than a Federal flood 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 Federal 
        nonrepairable vehicle certificate and shall never again be 
        titled or registered.
            ``(7) Federal nonrepairable vehicle certificate.--The term 
        `Federal nonrepairable vehicle certificate' means a passenger 
        motor vehicle ownership document issued by the State to the 
        owner of a Federal nonrepairable vehicle. A Federal 
        nonrepairable vehicle certificate shall be conspicuously 
        labeled with the words `Federal 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.
            ``(12) Federal flood vehicle.--
                    ``(A) In general.--The term `flood vehicle' means 
                any passenger motor vehicle that--
                            ``(i) has been acquired by an insurance 
                        company as part of a damage settlement due to 
                        water damage; or
                            ``(ii) has been submerged in water to the 
                        point that rising water has reached over the 
                        door sill, has entered the passenger or trunk 
                        compartment, and has exposed any electrical, 
                        computerized, or mechanical component to water, 
                        except where a passenger motor vehicle which, 
                        pursuant to an inspection conducted by an 
                        insurance adjuster or estimator, a motor 
                        vehicle repairer or motor vehicle dealer in 
                        accordance with inspection guidelines or 
                        procedures established by the Secretary or the 
                        State, is determined--
                                    ``(I) to have no electrical, 
                                computerized or mechanical components 
                                which were damaged by water; or
                                    ``(II) to have one or more 
                                electrical, computerized or mechanical 
                                components which were damaged by water 
                                and where all such damaged components 
                                have been repaired or replaced.
                    ``(B) Inspection not required for all federal flood 
                vehicles.--No inspection under subparagraph (A) shall 
                be required unless the owner or insurer of the 
                passenger motor vehicle is seeking to avoid a brand of 
                `Federal Flood' pursuant to this chapter.
                    ``(C) Effect of disclosure.--Disclosing a passenger 
                motor vehicle's status as a Federal flood vehicle or 
                conducting an inspection pursuant to subparagraph (A) 
                shall not impose on any person any liability for damage 
                to (except in the case of damage caused by the 
                inspector at the time of the inspection) or reduced 
                value of a passenger motor vehicle.
    ``(b) Construction.--The definitions set forth in subsection (a) 
only apply to vehicles in a State which are wrecked, destroyed, or 
otherwise damaged on or after the date on which such State complies 
with the requirements of this chapter and the rule promulgated pursuant 
to section 33302(b).
``Sec. 33302. Passenger motor vehicle titling
    ``(a) Carry-Forward of State Information.--For any passenger motor 
vehicle, the ownership of which is transferred on or after the date 
that is 1 year after the date of the enactment of the National Salvage 
Motor Vehicle Consumer Protection Act of 1998, each State receiving 
funds, either directly or indirectly, appropriated under section 
30503(c) of this title after the date of the enactment of that Act, 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', 
`older model 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, and the name 
of the State that issued that title, or that the vehicle was a `Federal 
salvage vehicle', `Federal rebuilt salvage vehicle', `Federal flood 
vehicle', or `Federal nonrepairable vehicle'.
    ``(b) Nationally Uniform Title Standards and Control Methods.--Not 
later than 18 months after the date of the enactment of the National 
Salvage Motor Vehicle Consumer Protection Act of 1998, the Secretary 
shall by rule require each State receiving funds, either directly or 
indirectly, appropriated under section 30503(c) of this title after the 
date of the enactment of that Act, 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 Federal salvage 
        vehicle, a Federal nonrepairable vehicle, a Federal rebuilt 
        salvage vehicle, or a Federal flood vehicle, or if records 
        readily available to the State indicate that the passenger 
        motor vehicle was previously issued a title that bore any word 
        or symbol referred to in subsection (a).
            ``(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 States or an 
        organization representing them.
            ``(6) A passenger motor vehicle designated as Federal 
        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 Federal 
        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) Any safety inspection for a Federal rebuilt salvage 
        vehicle performed pursuant to this chapter shall be performed 
        in accordance with nationally uniform safety inspection 
        criteria established by the Secretary. 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 Federal salvage vehicle 
                or a Federal nonrepairable vehicle, the passenger motor 
                vehicle owner shall apply for a Federal salvage title 
                or Federal 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 Federal 
                nonrepairable vehicle, the insurance company or salvage 
                facility or other agent on its behalf shall apply for a 
                Federal salvage title or Federal 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 Federal 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 Federal salvage vehicle or Federal 
                nonrepairable vehicle, the insurance company shall 
                notify the owner of the owner's obligation to apply for 
                a Federal salvage title or Federal nonrepairable 
                vehicle certificate for the passenger motor vehicle and 
                notify the State passenger motor vehicle titling office 
                that a Federal salvage title or Federal 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 Federal 
                salvage vehicle or Federal nonrepairable vehicle, the 
                lessor shall apply for a Federal salvage title or 
                Federal 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 
                Federal salvage or Federal nonrepairable vehicle for 
                which a Federal salvage title or Federal nonrepairable 
                vehicle certificate has not been issued, shall apply 
                for a Federal salvage title or Federal 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 
                Federal 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 Federal nonrepairable vehicle certificate 
                for the vehicle shall be surrendered to the State 
                within 30 days. If the second transferee on a Federal 
                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 Federal 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 Federal nonrepairable vehicle certificate, the 
                State of surrender shall notify the State of origin of 
                the surrender of the title or Federal nonrepairable 
                vehicle certificate and of the destruction of such 
                vehicle.
                    ``(H) When a Federal salvage title is issued, the 
                State records shall so note. No State shall permit the 
                retitling for registration purposes or issuance of a 
                rebuilt Federal salvage title for a passenger motor 
                vehicle with a Federal 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 Federal salvage 
                title for a Federal salvage vehicle after a transfer of 
                ownership.
                    ``(I) After a passenger motor vehicle titled with a 
                Federal 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 Federal rebuilt 
                salvage title or vehicle registration, or both, by 
                presenting to the State the Federal 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 Federal rebuilt salvage title or 
                registration, or both, shall be issued to the owner. 
                When a Federal rebuilt salvage title is issued, the 
                State records shall so note.
            ``(11) A seller of a passenger motor vehicle that becomes a 
        flood vehicle shall, prior to the time of transfer of ownership 
        of the vehicle, give the transferee a written notice that the 
        vehicle has been damaged by flood, provided such person has 
        actual knowledge that such 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 words 
        `Federal Flood' shall be conspicuously labeled across the front 
        of the new title.
            ``(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 flood vehicle, shall give the 
        lessor written disclosure that the vehicle is a Federal flood 
        vehicle.
            ``(13) Ownership of a passenger motor vehicle may be 
        transferred on a Federal salvage title, however, a passenger 
        motor vehicle for which a Federal 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 Federal rebuilt salvage title, and a passenger 
        motor vehicle for which a Federal rebuilt salvage title has 
        been issued may, if permitted by State law, be registered for 
        use on the roads and highways.
            ``(15) Ownership of a passenger motor vehicle may only be 
        transferred 2 times on a Federal nonrepairable vehicle 
        certificate. A passenger motor vehicle for which a Federal 
        nonrepairable vehicle certificate has been issued can never be 
        titled or registered for use on roads or highways.
    ``(c) Consumer Notice in Noncompliant States.--Any State receiving, 
either directly or indirectly, funds appropriated under section 
30503(c) of this title after the date of enactment of the National 
Salvage Motor Vehicle Consumer Protection Act of 1998 and not complying 
with the requirements of subsections (a) and (b) of this section, shall 
conspicuously print the following notice on all titles or ownership 
certificates issued for passenger motor vehicles in such State until 
such time as such State is in compliance with the requirements of 
subsections (a) and (b) of this section: `NOTICE: This State does not 
conform to the uniform Federal requirements of the National Salvage 
Motor Vehicle Consumer Protection Act of 1998.'.
    ``(d) Electronic Procedures.--A State may employ electronic 
procedures in lieu of paper documents whenever such electronic 
procedures provide the same information, function, and security 
otherwise required by this section.
``Sec. 33303. Disclosure and label requirements on transfer of Federal 
              rebuilt salvage vehicles
    ``(a) Written Disclosure Requirements.--
            ``(1) General rule.--Under regulations prescribed by the 
        Secretary of Transportation, a person transferring ownership of 
        a Federal rebuilt salvage vehicle shall, prior to the time of 
        transfer of ownership of the vehicle, give the transferee a 
        written disclosure that the vehicle is a Federal 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 Federal 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 Federal 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 anti-theft 
        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 
        Federal rebuilt salvage vehicle before the vehicle is delivered 
        to the actual custody and possession of the first retail 
        purchaser.
    ``(c) Limitation.--The requirements of subsections (a) and (b) 
shall only apply to a transfer of ownership of a Federal rebuilt 
salvage vehicle where such transfer occurs in a State which, at the 
time of the transfer, is complying with subsections (a) and (b) of 
section 33302.
``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. Effect on State law
    ``(a) In General.--Unless a State is in compliance with subsection 
(c) of section 33302, 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 receiving funds, either 
directly or indirectly, appropriated under section 30503(c) of this 
title after the date of the enactment of the National Salvage Motor 
Vehicle Consumer Protection Act of 1998, 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 `Federal salvage', 
        `Federal nonrepairable', or `Federal flood', 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 
        Federal salvage vehicle, Federal rebuilt salvage vehicle, 
        Federal nonrepairable vehicle, or Federal flood vehicle.
    ``(b) Exceptions.--
            ``(1) Passenger motor vehicle; older model salvage.--
        Subsection (a)(2) does not preempt State use of the term--
                    ``(A) `passenger motor vehicle' in statutes not 
                related to titling, recordkeeping, anti-theft 
                inspection, or control procedures in connection with 
                any salvage vehicle, rebuilt salvage vehicle, 
                nonrepairable vehicle, or flood vehicle; or
                    ``(B) `older model salvage' to designate a wrecked, 
                destroyed, or damaged vehicle that is older than a late 
                model vehicle.
            ``(2) Consumer law actions.--Nothing in this chapter may be 
        construed to affect any private right of action under State 
        law.
    ``(c) 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 national salvage title 
that a Federal rebuilt national salvage vehicle has passed a State 
safety inspection which differed from the nationally uniform criteria 
to be promulgated pursuant to section 33302(b)(8).
    ``(d) Statutory Construction.--Except as specifically provided in 
this chapter, nothing in this chapter is intended to affect any State 
law--
            ``(1) relating to the inspection or titling of, disclosure, 
        or other action concerning salvage, rebuilt salvage, flood, or 
        nonrepairable motor vehicles; or
            ``(2) that provides for more stringent protection of a 
        purchaser of a used motor vehicle.
``Sec. 33306. Civil penalties
    ``(a) Prohibited Acts.--It is unlawful for any person knowingly 
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 Federal salvage title when such 
        an application is required;
            ``(3) alter, forge, or counterfeit a certificate of title 
        (or an assignment thereof), a Federal 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 Federal salvage vehicle or Federal 
        nonrepairable vehicle as a Federal rebuilt salvage vehicle;
            ``(6) fail to make any disclosure required by section 
        33302(b)(11);
            ``(7) fail to make any disclosure required by section 
        33303;
            ``(8) violate a regulation prescribed under this chapter;
            ``(9) move a vehicle or a vehicle title in interstate 
        commerce for the purpose of avoiding the titling requirements 
        of this chapter; or
            ``(10) conspire to commit any of the acts enumerated in 
        paragraph (1), (2), (3), (4), (5), (6), (7), (8), or (9).
    ``(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.
``Sec. 33307. Actions by States
    ``(a) In General.--When a person violates any provision of this 
chapter, the chief law enforcement officer of the State in which the 
violation occurred may bring an action--
            ``(1) to restrain the violation;
            ``(2) recover amounts for which a person is liable under 
        section 33306; or
            ``(3) to recover the amount of damage suffered by any 
        resident in that State who suffered damage as a result of the 
        knowing commission of an unlawful act under section 33306(a) by 
        another person.
    ``(b) Statute of Limitations.--An action under subsection (a) shall 
be brought in any court of competent jurisdiction within 2 years after 
the date on which the violation occurs.
    ``(c) Notice.--The State shall serve prior written notice of any 
action under subsection (a) or (f)(2) upon the Attorney General of the 
United States 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 an 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.
    ``(d) Construction.--For purposes of bringing any 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.
    ``(e) Venue; Service of Process.--Any 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.
    ``(f) 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) Section 30501(4) of title 49, United States Code, is 
        amended to read as follows:
            ``(4) `Federal nonrepairable vehicle', `Federal salvage 
        vehicle', and `Federal rebuilt salvage vehicle' have the same 
        meanings given those terms in section 33301 of this title.''.
            (2) Section 30501(5) of such title is amended by striking 
        ``junk automobiles'' and inserting ``Federal nonrepairable 
        vehicles''.
            (3) Section 30501(8) of such title is amended by striking 
        ``salvage automobiles'' and inserting ``Federal salvage 
        vehicles''.
            (4) Section 30501 of such title is amended by striking 
        paragraph (7) and redesignating paragraphs (8) and (9) as 
        paragraphs (7) and (8), respectively.
    (b) National Motor Vehicle Title Information System.--
            (1) Section 30502(d)(3) of title 49, United States Code, is 
        amended to read as follows:
            ``(3) whether an automobile known to be titled in a 
        particular State--
                    ``(A) is or has been a Federal nonrepairable 
                vehicle, a Federal rebuilt salvage vehicle, or a 
                Federal salvage vehicle; or
                    ``(B) was previously issued a title that bore any 
                word or symbol signifying that the vehicle was 
                `salvage', `unrebuildable', `parts only', `scrap', 
                `junk', or any other symbol or word of like kind, or 
                that the vehicle has been damaged by flood.''.
            (2) Section 30502(d)(5) of title 49, United States Code, is 
        amended to read as follows:
            ``(5) whether--
                    ``(A) an automobile bearing a known vehicle 
                identification number has been reported as a Federal 
                nonrepairable vehicle, a Federal rebuilt salvage 
                vehicle, or a Federal salvage vehicle under section 
                30504 of this title; or
                    ``(B) the vehicle was previously issued a title 
                that bore any word or symbol signifying that the 
                vehicle was `salvage', `unrebuildable', `parts only', 
                `scrap', `junk', or any other symbol or word of like 
                kind, or that the vehicle has been damaged by flood.''.
    (c) State Participation.--Section 30503 of title 49, United States 
Code, is amended to read as follows:
``Sec. 30503. State participation
    ``(a) State Information.--Each State receiving funds appropriated 
under subsection (c) 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.
    ``(b) Verification Checks.--Each State receiving funds appropriated 
under subsection (c) 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.
    ``(c) 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.
    ``(d) 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 ``Federal 
nonrepairable vehicles, Federal rebuilt salvage vehicles, or Federal 
salvage vehicles''.

SEC. 4. DEALER NOTIFICATION PROGRAM FOR PROHIBITED SALE OF 
              NONQUALIFYING VEHICLES FOR USE AS SCHOOLBUSES.

    Section 30112 of title 49, United States Code, is amended by adding 
at the end thereof the following:
    ``(c) Notification Program for Dealers Concerning Sales of Vehicles 
as Schoolbuses.--Not later than September 1, 1998, the Secretary shall 
develop and implement a program to notify dealers and distributors in 
the United States that subsection (a) prohibits the sale or delivery of 
any vehicle for use as a schoolbus (as that term is defined in section 
30125(a)(1) of this title) that does not meet the standards prescribed 
under section 30125(b) of this title.''.

            Passed the Senate October 2, 1998.

            Attest:

                                                             Secretary.
105th CONGRESS

  2d Session

                                 S. 852

_______________________________________________________________________

                                 AN ACT

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

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