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





                                                       Calendar No. 495

105th CONGRESS

  2d Session

                                 S. 852

                          [Report No. 105-265]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             July 27, 1998

                       Reported with an amendment





                                                       Calendar No. 495
105th CONGRESS
  2d Session
                                 S. 852

                          [Report No. 105-265]

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 9, 1997

Mr. Lott (for himself, Mr. Ford, Mr. Warner, Mr. Shelby, Mr. Helms, Mr. 
 Inouye, Mr. Abraham, Mr. Faircloth, Mr. Domenici, Mr. Hutchinson, Mr. 
   Frist, Mr. Brownback, Mr. Cochran, Mr. McConnell, Mr. Breaux, Mr. 
 Rockefeller, Mr. Roberts, Mr. Bingaman, Mr. Jeffords, Mr. Leahy, Mr. 
Gregg, Mr. Daschle, Mr. Durbin, Mr. Thompson, Mr. Akaka, Mr. Hatch, Mr. 
   Dorgan, Mr. Sessions, Mr. Smith of New Hampshire, Mr. Conrad, Mr. 
 Johnson, Mr. Robb, Mr. Smith of Oregon, Mr. Reid, Mr. Murkowski, Mr. 
Enzi, Mr. Grams, Mr. Campbell, Mr. Stevens, Mr. Nickles, Mr. Hagel, Mr. 
Kempthorne, Mr. Burns, Mr. Kerrey, Mr. Inhofe, Mr. Craig, Mr. Bennett, 
     Mr. Coverdell, Mr. Thomas, Mr. McCain, Mr. Santorum, and Mrs. 
  Hutchison) introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

                             July 27, 1998

               Reported by Mr. McCain, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``National Motor Vehicle 
Safety, Anti-theft, Title Reform, and Consumer Protection Act of 
1997''.</DELETED>

<DELETED>SEC. 2. MOTOR VEHICLE TITLING AND DISCLOSURE 
              REQUIREMENTS.</DELETED>

<DELETED>    (a) In General.--Subtitle VI of title 49, United States 
Code, is amended by adding at the end the following new 
chapter:</DELETED>

                              <DELETED>``CHAPTER 333-AUTOMOBILE SAFETY, 
                                        ANTI-THEFT, AND TITLE 
                                        DISCLOSURE REQUIREMENTS
<DELETED>``Sec.
<DELETED>``33301. Definitions.
<DELETED>``33302. Passenger motor vehicle titling.
<DELETED>``33303. Label requirement.
<DELETED>``33304. Petition for extensions of time.
<DELETED>``33305. Effect on State law.
<DELETED>``33306. Civil and criminal penalties.

<DELETED>``Sec.  33301. DEFINITIONS</DELETED>

        <DELETED>    ``For the purposes of this chapter the following 
        definitions apply:</DELETED>
        <DELETED>    ``(1) Passenger Motor Vehicle.--The term 
        `passenger motor vehicle' means a motor vehicle as defined in 
        section 32101(7) that is rated by the manufacturer at not more 
        than 10,000 pounds gross vehicle weight and that is either--
        </DELETED>
                <DELETED>    ``(A) a passenger motor vehicle as defined 
                in section 32101(10), including a multipurpose 
                passenger vehicle as defined in section 32101(9); 
                or</DELETED>
                <DELETED>    ``(B) a truck (other than a truck referred 
                to in section 32101(10)(B).</DELETED>
        <DELETED>    ``(2) Salvage vehicle.--</DELETED>
                <DELETED>    ``(A) In general.--The term `salvage 
                vehicle' means any late model or valuable older 
                passenger motor vehicle that has been wrecked, 
                destroyed, or damaged to the extent that--</DELETED>
                        <DELETED>    ``(i) if the vehicle is not 
                        rebuilt or reconstructed, the total estimated 
                        cost; or</DELETED>
                        <DELETED>    ``(ii) if the vehicle is rebuilt 
                        or reconstructed, the total actual 
                        cost</DELETED>
                <DELETED>of parts and labor to rebuild or reconstruct 
                the passenger motor vehicle to its preaccident 
                condition for legal operation on the roads or highways 
                exceeds 75 percent of the retail value of the passenger 
                motor vehicle, immediately before it was wrecked, 
                damaged, or destroyed, as set forth in the most recent 
                edition of any nationally recognized compilation 
                (including automated databases) of current retail 
                values that is approved by the Secretary.</DELETED>
                <DELETED>    ``(B) Late model.--For purposes of 
                subparagraph (A), the term `late model passenger 
                vehicle' means any passenger motor vehicle that has a 
                model year designation of--</DELETED>
                        <DELETED>    ``(i) the year in which the 
                        vehicle was wrecked, destroyed, or damaged; 
                        or</DELETED>
                        <DELETED>    ``(ii) any of the 6 immediately 
                        preceding model years.</DELETED>
                <DELETED>    ``(C) Valuable older.--For purposes of 
                subparagraph (A), the term `valuable older passenger 
                motor vehicle' means any passenger motor vehicle that 
                had a retail value, immediately before it was wrecked, 
                destroyed, or damaged, of more than $10,000. Beginning 
                with the second calendar year beginning after the date 
                of enactment of the National Motor Vehicle Safety, 
                Antitheft, Title Reform, and Consumer Protection Act of 
                1997, the Secretary shall adjust the dollar figure in 
                this subparagraph to reflect the change, if any, in the 
                average consumer price index for the preceding year 
                from the average consumer price index for 
                1997.</DELETED>
                <DELETED>    ``(D) Determination of value of repair 
                parts.--For purposes of subparagraph (A), the value of 
                repair parts shall be determined by using--</DELETED>
                        <DELETED>    ``(i) the published retail cost of 
                        the original equipment manufacturer parts; 
                        or</DELETED>
                        <DELETED>    ``(ii) the actual retail cost of 
                        the repair parts to be used in the 
                        repair.</DELETED>
                <DELETED>    ``(E) Determination of labor costs.--For 
                purposes of subparagraph (A), the labor cost of repairs 
                shall be computed by using the hourly labor rate and 
                time allocations that are reasonable and customary in 
                the automobile repair industry in the community in 
                which the repairs are performed.</DELETED>
                <DELETED>    ``(F) Certain other vehicles included.--
                The term `salvage vehicle' also means--</DELETED>
                        <DELETED>    ``(i) a passenger motor vehicle 
                        with respect to which an insurance company 
                        acquires ownership under a damage settlement 
                        (except for a settlement in connection with a 
                        recovered theft vehicle that did not sustain a 
                        sufficient degree of damage to meet the 75 
                        percent threshold specified in subparagraph 
                        (A)); or</DELETED>
                        <DELETED>    ``(ii) a passenger motor vehicle 
                        that an owner may wish to designate as a 
                        salvage vehicle by obtaining a salvage title, 
                        without regard to the extent of the damage and 
                        repairs.</DELETED>
                <DELETED>    ``(G) Special Rule.--A designation of a 
                passenger motor vehicle by an owner under subparagraph 
                (F)(ii) shall not impose any obligation on--</DELETED>
                        <DELETED>    ``(i) the insurer of the passenger 
                        motor vehicle; or</DELETED>
                        <DELETED>    ``(ii) an insurer processing a 
                        claim made by or on behalf of the owner of the 
                        passenger motor vehicle.</DELETED>
        <DELETED>    ``(3) Salvage title.--</DELETED>
                <DELETED>    ``(A) In general.--The term `salvage 
                title' means a passenger motor vehicle ownership 
                document issued by a State to the owner of a salvage 
                vehicle.</DELETED>
                <DELETED>    ``(B) Transfer of ownership.--Ownership of 
                a salvage vehicle may be transferred on a salvage 
                title.</DELETED>
                <DELETED>    ``(C) Prohibition.--The salvage vehicle 
                may not be registered for use on the roads or highways 
                unless the salvage vehicle has been issued a rebuilt 
                salvage title.</DELETED>
        <DELETED>    ``(D) Requirement for a salvage title.--A salvage 
        title shall be conspicuously labeled with the word `salvage' 
        across the front of the document.</DELETED>
        <DELETED>    ``(4) Rebuilt salvage vehicle.--The term `rebuilt 
        salvage vehicle' means--</DELETED>
                <DELETED>    ``(A) For passenger motor vehicles subject 
                to a safety inspection in a State that requires such an 
                inspection under section 33302(b)(2)(H), any passenger 
                motor vehicle that has--</DELETED>
                        <DELETED>    ``(i) been issued previously a 
                        salvage title;</DELETED>
                        <DELETED>    ``(ii) passed applicable State 
                        antitheft inspection;</DELETED>
                        <DELETED>    ``(iii) been issued a certificate 
                        indicating that the passenger motor vehicle 
                        has--</DELETED>
                                <DELETED>    ``(I) passed the antitheft 
                                inspection referred to in clause (ii); 
                                and</DELETED>
                                <DELETED>    ``(II) been issued a 
                                certificate indicating that the 
                                passenger motor vehicle has passed a 
                                required safety inspection under 
                                section 33302(b)(2)(H); and</DELETED>
                        <DELETED>    ``(iv) affixed to the door jamb 
                        adjacent to the driver's seat a decal stating 
                        `Rebuilt Salvage Vehicle-Antitheft and Safety 
                        Inspections Passed'; or</DELETED>
                <DELETED>    ``(B) for passenger motor vehicles in a 
                State other than a State referred to in subparagraph 
                (A), any passenger motor vehicle that has--</DELETED>
                        <DELETED>    ``(i) been issued previously a 
                        salvage title;</DELETED>
                        <DELETED>    ``(ii) passed an applicable State 
                        antitheft inspection;</DELETED>
                        <DELETED>    ``(iii) been issued a certificate 
                        indicating that the passenger motor vehicle has 
                        passed the required antitheft inspection 
                        referred to in clause (ii); and</DELETED>
                        <DELETED>    ``(iv) affixed to the door jamb 
                        adjacent to the driver's seat, a decal stating 
                        `Rebuilt Salvage Vehicle-Antitheft Inspection 
                        Passed/No Safety Inspection Pursuant to 
                        National Criteria'.</DELETED>
        <DELETED>    ``(5) Rebuilt salvage title.--</DELETED>
                <DELETED>    ``(A) In general.--The term `rebuilt 
                salvage title' means the passenger motor vehicle 
                ownership document issued by a State to the owner of a 
                rebuilt salvage vehicle.</DELETED>
                <DELETED>    ``(B) Transfer of ownership.--Ownership of 
                a rebuilt salvage vehicle may be transferred on a 
                rebuilt salvage title.</DELETED>
                <DELETED>    ``(C) Registration for use.--A passenger 
                motor vehicle for which a rebuilt salvage title has 
                been issued may be registered for use on the roads and 
                highways.</DELETED>
                <DELETED>    ``(D) Requirement for a rebuilt a rebuilt 
                salvage title.--A rebuilt salvage title shall be 
                conspicuously labeled, either with `rebuilt salvage 
                vehicle-antitheft and safety inspections passed' or 
                `rebuilt salvage vehicle-antitheft inspection passed/no 
                safety inspection pursuant to national criteria', as 
                appropriate, across the front of the 
                document.</DELETED>
        <DELETED>    ``(6) Nonrepairable vehicle.--</DELETED>
                <DELETED>    ``(A) In general.--The term `nonrepairable 
                vehicle' means any passenger motor vehicle that--
                </DELETED>
                        <DELETED>    ``(i)(I) is incapable of safe 
                        operation for use on roads or highways; 
                        and</DELETED>
                        <DELETED>    ``(II) has no resale value, except 
                        as a source of parts or scrap only; 
                        or</DELETED>
                        <DELETED>    ``(ii) the owner irreversibly 
                        designates as a source of parts or 
                        scrap.</DELETED>
                <DELETED>    ``(B) Certificate.--Each nonrepairable 
                vehicle shall be issued a nonrepairable vehicle 
                certificate.</DELETED>
        <DELETED>    ``(7) Nonrepairable vehicle certificate.--
        </DELETED>
                <DELETED>    ``(A) In general.--The term `nonrepairable 
                vehicle certificate' means a passenger motor vehicle 
                ownership document issued by the State to the owner of 
                a nonrepairable vehicle.</DELETED>
                <DELETED>    ``(B) Transfer of ownership.--Ownership of 
                the passenger motor vehicle may be transferred not more 
                than 2 times on a nonrepairable vehicle 
                certificate.</DELETED>
                <DELETED>    ``(C) Prohibition.--A nonrepairable 
                vehicle that is issued a nonrepairable vehicle 
                certificate may not be titled or registered for use on 
                roads or highways at any time after the issuance of the 
                certificate.</DELETED>
                <DELETED>    ``(D) Requirement for nonrepairable 
                vehicle certificate.--A nonrepairable vehicle 
                certificate shall be conspicuously labeled with the 
                term `nonrepairable' across the front of the 
                document.</DELETED>
        <DELETED>    ``(8) Flood vehicle.--</DELETED>
                <DELETED>    ``(A) In general.--The term `flood 
                vehicle' means any passenger motor vehicle that has 
                been submerged in water to the point that rising water 
                has reached over the door sill of the motor vehicle and 
                has entered the passenger or trunk 
                compartment.</DELETED>
                <DELETED>    ``(B) Requirement for disclosure.--
                Disclosure that a passenger motor vehicle has become a 
                flood vehicle shall be made by the person transferring 
                ownership at the time of transfer of ownership. After 
                such transfer is completed, the certificate of title 
                shall be conspicuously labeled with the term `flood' 
                across the front of the document.</DELETED>
        <DELETED>    ``(9) Secretary.--The term `Secretary' means the 
        Secretary of Transportation.</DELETED>

<DELETED>``Sec.  33302. PASSENGER MOTOR VEHICLE TITLING</DELETED>

<DELETED>    ``(a) Carryforward of Certain Title Information If a 
Previous Title Was Not Issued in Accordance with Certain Nationally 
Uniform Standards.--</DELETED>
        <DELETED>    ``(1) In general.--If--</DELETED>
                <DELETED>    ``(A) records that are readily accessible 
                to a State indicate that a passenger motor vehicle with 
                respect to which the ownership is transferred on or 
                after the date that is 1 year after the date of 
                enactment of the National Motor Vehicle Safety, 
                Antitheft, Title Reform, and Consumer Protection Act of 
                1997, has been issued previously a title that bore a 
                term or symbol described in paragraph (2); 
                and</DELETED>
                <DELETED>    ``(B) the State issues an ownership 
                document, the State shall disclose that fact on a 
                certificate of title or other ownership document issued 
                by the State.</DELETED>
        <DELETED>    ``(2) Terms and symbols.--</DELETED>
                <DELETED>``(A) In general.--A State shall be subject to 
                the requirements of paragraph (1) with respect to the 
                following terms on a title that has been issued 
                previously to a passenger motor vehicle (or symbols 
                indicating the meanings of those terms):</DELETED>
                        <DELETED>    ``(i) salvage.</DELETED>
                        <DELETED>    ``(ii) unrebuildable.</DELETED>
                        <DELETED>    ``(iii) parts only.</DELETED>
                        <DELETED>    ``(iv) scrap.</DELETED>
                        <DELETED>    ``(v) junk.</DELETED>
                        <DELETED>    ``(vi) nonrepairable.</DELETED>
                        <DELETED>    ``(vii) reconstructed.</DELETED>
                        <DELETED>    ``(viii) rebuilt.</DELETED>
                        <DELETED>    ``(ix) any other similar term, as 
                        determined by the Secretary.</DELETED>
                <DELETED>    ``(B) Flood damage.--A State shall be 
                subject to the requirements of paragraph (1) if a term 
                or symbol on a title issued previously for a passenger 
                vehicle indicates that the vehicle has been damaged by 
                flood.</DELETED>
<DELETED>    ``(b) Nationally Uniform Title Standards and Control 
Methods.--</DELETED>
        <DELETED>    ``(1) In general.--Not later than 18 months after 
        the date of the enactment of the National Motor Vehicle Safety, 
        Antitheft, Title Reform, and Consumer Protection Act of 1997, 
        the Secretary shall issue regulations that require each State 
        that licenses passenger motor vehicles with respect to which 
        the ownership is transferred on or after the date that is 2 
        years after the issuance of final regulations, to apply with 
        respect to the issuance of the title for any such motor vehicle 
        uniform standards, procedures, and methods for--</DELETED>
                <DELETED>    ``(A) the issuance and control of that 
                title; and</DELETED>
                <DELETED>    ``(B) information to be contained on such 
                title.</DELETED>
        <DELETED>    ``(2) Contents of regulations.--The titling 
        standards, control procedures, methods, and information covered 
        under the regulations issued under this subsection shall 
        include the following:</DELETED>
                <DELETED>    ``(A) Indication of status.--Each State 
                shall indicate on the face of a title or certificate 
                for a passenger motor vehicle, as applicable, if the 
                passenger motor vehicle is a salvage vehicle, a 
                nonrepairable vehicle, a rebuilt salvage vehicle, or a 
                flood vehicle.</DELETED>
                <DELETED>    ``(B) Subsequent titles.--The information 
                referred to in subparagraph (A) concerning the status 
                of the passenger vehicle 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.</DELETED>
                <DELETED>    ``(C) Security standards.--The title 
                documents, the certificates and decals required by 
                section 33301(4), and the system for issuing those 
                documents, certificates, and decals shall meet security 
                standards that minimize opportunities for 
                fraud.</DELETED>
                <DELETED>    ``(D) Identifying information.--Each 
                certificate of title referred to in subparagraph (A) 
                shall include the passenger motor vehicle make, model, 
                body type, year, odometer disclosure, and vehicle 
                identification number.</DELETED>
                <DELETED>    ``(E) Uniform layout.--The title documents 
                covered under the regulations shall maintain a uniform 
                layout, that shall be established by the Secretary, in 
                consultation with each State or an organization that 
                represents States.</DELETED>
                <DELETED>    ``(F) Nonrepairable vehicles.--A passenger 
                motor vehicle designated as nonrepairable--</DELETED>
                        <DELETED>    ``(i) shall be issued a 
                        nonrepairable vehicle certificate; 
                        and</DELETED>
                        <DELETED>    ``(ii) may not be 
                        retitled.</DELETED>
                <DELETED>    ``(G) Rebuilt salvage title.--No rebuilt 
                salvage title may be issued to a salvage vehicle 
                unless, after the salvage vehicle is repaired or 
                rebuilt, the salvage vehicle complies with the 
                requirements for a rebuilt salvage vehicle under 
                section 33301(4).</DELETED>
                <DELETED>    ``(H) Inspection programs.--Each State 
                inspection program shall be designed to comply with the 
                requirements of this subparagraph and shall be subject 
                to approval and periodic review by the Secretary. Each 
                such inspection program shall include the 
                following:</DELETED>
                        <DELETED>    ``(i) Each owner of a passenger 
                        motor vehicle that submits a vehicle for an 
                        antitheft inspection shall be required to 
                        provide--</DELETED>
                                <DELETED>    ``(I) a completed document 
                                identifying the damage that occurred to 
                                the vehicle before being 
                                repaired;</DELETED>
                                <DELETED>    ``(II) a list of 
                                replacement parts used to repair the 
                                vehicle;</DELETED>
                                <DELETED>    ``(III) proof of ownership 
                                of the replacement parts referred to in 
                                subclause (II) (as evidenced by bills 
                                of sale, invoices or, if such documents 
                                are not available, other proof of 
                                ownership for the replacement parts); 
                                and</DELETED>
                                <DELETED>    ``(IV) an affirmation by 
                                the owner that--</DELETED>
                                        <DELETED>    ``(a) the 
                                        information required to be 
                                        submitted under this 
                                        subparagraph is complete and 
                                        accurate; and</DELETED>
                                        <DELETED>    ``(<greek-b>) to 
                                        the knowledge of the declarant, 
                                        no stolen parts were used 
                                        during the rebuilding of the 
                                        repaired vehicle.</DELETED>
                        <DELETED>    ``(ii) Any passenger motor vehicle 
                        or any major part or major replacement part 
                        required to be marked under this section that--
                        </DELETED>
                                <DELETED>    ``(I) has a mark or 
                                vehicle identification number that has 
                                been illegally altered, defaced, or 
                                falsified; and</DELETED>
                                <DELETED>    ``(II) cannot be 
                                identified as having been legally 
                                obtained (through evidence described in 
                                clause (i)(III)),</DELETED>
                        <DELETED>shall be contraband and subject to 
                        seizure.</DELETED>
                        <DELETED>    ``(iii) To avoid confiscation of 
                        parts that have been legally rebuilt or 
                        remanufactured, the regulations issued under 
                        this subsection shall include procedures that 
                        the Secretary, in consultation with the 
                        Attorney General of the United States, shall 
                        establish--</DELETED>
                                <DELETED>    ``(I) for dealing with 
                                parts with a mark or vehicle 
                                identification number that is normally 
                                removed during remanufacturing or 
                                rebuilding practices that are 
                                considered acceptable by the automotive 
                                industry; and</DELETED>
                                <DELETED>    ``(II) deeming any part 
                                referred to in subclause (I) to meet 
                                the identification requirements under 
                                the regulations if the part bears a 
                                conspicuous mark of such type, and is 
                                applied in such manner, as may be 
                                determined by the Secretary to indicate 
                                that the part has been rebuilt or 
                                remanufactured.</DELETED>
                        <DELETED>    ``(iv) With respect to any vehicle 
                        part, the regulations issued under this 
                        subsection shall--</DELETED>
                                <DELETED>    ``(I) acknowledge that a 
                                mark or vehicle identification number 
                                on such part may be legally removed or 
                                altered, as provided under section 511 
                                of title 18, United States code; 
                                and</DELETED>
                                <DELETED>    ``(II) 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.</DELETED>
                        <DELETED>    ``(v) The Secretary shall 
                        establish nationally uniform safety inspection 
                        criteria to be used in States that require such 
                        a safety inspection. A State may determine 
                        whether to conduct such safety inspection, 
                        contract with a third party, or permit self-
                        inspection. Any inspection conducted under this 
                        clause shall be subject to criteria established 
                        by the Secretary. A State that requires a 
                        safety inspection under this clause may require 
                        the payment of a fee for such inspection or the 
                        processing of such inspection.</DELETED>
                <DELETED>    ``(I) Duplicate titles.--No duplicate or 
                replacement title may be issued by a State unless--
                </DELETED>
                        <DELETED>    ``(i) the term `duplicate' is 
                        clearly marked on the face of the duplicate or 
                        replacement title; and</DELETED>
                        <DELETED>    ``(ii) the procedures issued are 
                        substantially consistent with the 
                        recommendation designated as recommendation 3 
                        in the report issued on February 10, 1994, 
                        under section 140 of the Anti Car Theft Act of 
                        1992 (15 U.S.C. 2041 note) by the task force 
                        established under such section.</DELETED>
                <DELETED>    ``(J) Titling and control methods.--Each 
                State shall employ the following titling and control 
                methods:</DELETED>
                        <DELETED>    ``(i) 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 be required 
                        to apply for a salvage title or nonrepairable 
                        vehicle certificate, whichever is applicable, 
                        before the earlier of the date--</DELETED>
                                <DELETED>    ``(I) on which the 
                                passenger motor vehicle is repaired or 
                                the ownership of the passenger motor 
                                vehicle is transferred; or</DELETED>
                                <DELETED>    ``(II) that is 30 days 
                                after the passenger motor vehicle is 
                                damaged.</DELETED>
                        <DELETED>    ``(ii) If an insurance company, 
                        under 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 shall be required to apply 
                        for a salvage title or nonrepairable vehicle 
                        certificate not later than 15 days after the 
                        title to the motor vehicle is--</DELETED>
                                <DELETED>    ``(I) properly assigned by 
                                the owner to the insurance company; 
                                and</DELETED>
                                <DELETED>    ``(II) delivered to the 
                                insurance company with all liens 
                                released.</DELETED>
                        <DELETED>    ``(iii) If an insurance company 
                        does not assume ownership of an insured 
                        person'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--</DELETED>
                                        <DELETED>    ``(I) the owner of 
                                        the owner's obligation to apply 
                                        for a salvage title or 
                                        nonrepairable vehicle 
                                        certificate for the passenger 
                                        motor vehicle; and</DELETED>
                                        <DELETED>    ``(II) the State 
                                        passenger motor vehicle titling 
                                        office that a salvage title or 
                                        nonrepairable vehicle 
                                        certificate should be issued 
                                        for the vehicle.</DELETED>
                        <DELETED>    ``(iv) If a leased passenger motor 
                        vehicle incurs damage requiring the vehicle to 
                        be titled as a salvage vehicle or nonrepairable 
                        vehicle, the lessor shall be required to apply 
                        for a salvage title or nonrepairable vehicle 
                        certificate not later than 21 days after being 
                        notified by the lessee that the vehicle has 
                        been so damaged, except in any case in which an 
                        insurance company, under a damage settlement, 
                        acquires ownership of the vehicle. The lessee 
                        of such vehicle shall be required to inform the 
                        lessor that the leased vehicle has been so 
                        damaged not later than 30 days after the 
                        occurrence of the damage.</DELETED>
                        <DELETED>    ``(v)(I) any person who acquires 
                        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 be required to apply for a 
                        salvage title or nonrepairable vehicle 
                        certificate, whichever is applicable.</DELETED>
                        <DELETED>    ``(II) An application under 
                        subclause (I) shall be made the earlier of--
                        </DELETED>
                                <DELETED>    ``(a) the date on which 
                                the vehicle is further transferred; 
                                or</DELETED>
                                <DELETED>    ``(<greek-b>) 30 days 
                                after ownership is acquired.</DELETED>
                        <DELETED>    ``(III) The requirements of this 
                        clause shall not apply to any scrap metal 
                        processor that--</DELETED>
                                        <DELETED>    ``(a) acquires a 
                                        passenger motor vehicle for the 
                                        sole purpose of processing the 
                                        motor vehicle into prepared 
                                        grades of scrap; and</DELETED>
                                <DELETED>    ``(<greek-b>) carries out 
                                that processing.</DELETED>
                        <DELETED>    ``(vi) State records shall note 
                        when a nonrepairable vehicle certificate is 
                        issued. No State shall issue a nonrepairable 
                        vehicle certificate after 2 transfers of 
                        ownership in violation of section 
                        33301(7)(B).</DELETED>
                        <DELETED>    ``(vii)(I) In any case in which a 
                        passenger motor vehicle has been flattened, 
                        baled, or shredded, whichever occurs first, the 
                        title or nonrepairable vehicle certificate for 
                        the vehicle shall be surrendered to the State 
                        not later than 30 days after that 
                        occurrence.</DELETED>
                        <DELETED>    ``(II) If the second transferee on 
                        a nonrepairable vehicle certificate is 
                        unequipped to flatten, bale, or shred the 
                        vehicle, such transferee shall be required, at 
                        the time of final disposal of the vehicle, to 
                        use the services of a professional automotive 
                        recycler or professional scrap processor. That 
                        recycler or reprocessor shall have the 
                        authority to--</DELETED>
                                <DELETED>    ``(a) flatten, bale, or 
                                shred the vehicle; and</DELETED>
                                <DELETED>    ``(<greek-b>) effect the 
                                surrender of the nonrepairable vehicle 
                                certificate to the State on behalf of 
                                the second transferee.</DELETED>
                        <DELETED>    ``(III) State records shall be 
                        updated to indicate the destruction of a 
                        vehicle under this clause and no further 
                        ownership transactions for the vehicle shall be 
                        permitted after the vehicle is so 
                        destroyed.</DELETED>
                        <DELETED>    ``(IV) If different from 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.</DELETED>
                        <DELETED>    ``(viii)(I) In any case in which a 
                        salvage title is issued, the State records 
                        shall note that issuance. No State may 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 that-
                        </DELETED>
                                <DELETED>    ``(a) complies with the 
                                security and guideline standards 
                                established by the Secretary under 
                                subparagraphs (C) and (G), as 
                                applicable; and</DELETED>
                                <DELETED>    ``(<greek-b>) indicates 
                                that the vehicle has passed the 
                                inspections required by the State under 
                                subparagraph (H).</DELETED>
                        <DELETED>    ``(II) Nothing in this clause 
                        shall preclude the issuance of a new salvage 
                        title for a salvage vehicle after a transfer of 
                        ownership.</DELETED>
                        <DELETED>    ``(ix) After a passenger motor 
                        vehicle titled with a salvage title has passed 
                        the inspections required by the State, the 
                        inspection official shall--</DELETED>
                                <DELETED>    ``(I) affix a secure decal 
                                required under section 33301(4) (that 
                                meets permanency requirements that the 
                                Secretary shall establish by 
                                regulation) to the door jamb on the 
                                driver's side of the vehicle; 
                                and</DELETED>
                                <DELETED>    ``(II) issue to the owner 
                                of the vehicle a certificate indicating 
                                that the passenger motor vehicle has 
                                passed the inspections required by the 
                                State.</DELETED>
                        <DELETED>    ``(x)(I) The owner of a passenger 
                        motor vehicle titled with a salvage title may 
                        obtain a rebuilt salvage title and vehicle 
                        registration by presenting to the State the 
                        salvage title, properly assigned, if 
                        applicable, along with the certificate that the 
                        vehicle has passed the inspections required by 
                        the State.</DELETED>
                        <DELETED>    ``(II) If the owner of a rebuilt 
                        salvage vehicle submits the documentation 
                        referred to in subclause (I), the State shall 
                        issue upon the request of the owner a rebuilt 
                        salvage title and registration to the owner. 
                        When a rebuilt salvage title is issued, the 
                        State records shall so note.</DELETED>
                <DELETED>    ``(K) Flood vehicles.--</DELETED>
                        <DELETED>    ``(i) In general.--A seller of a 
                        passenger motor vehicle that becomes a flood 
                        vehicle shall, at or before the time of 
                        transfer of ownership, provide a written notice 
                        to the purchaser that the vehicle is a flood 
                        vehicle. At the time of the next title 
                        application for the vehicle--</DELETED>
                                <DELETED>    ``(I) the applicant shall 
                                disclose the flood status to the 
                                applicable State with the properly 
                                assigned title; and</DELETED>
                                <DELETED>    ``(II) the term `flood' 
                                shall be conspicuously labeled across 
                                the front of the new title 
                                document.</DELETED>
                        <DELETED>    ``(ii) Leased vehicles.--In the 
                        case of a leased passenger motor vehicle, the 
                        lessee, within 15 days after the occurrence of 
                        the event that caused the vehicle to become a 
                        flood vehicle, shall give the lessor written 
                        disclosure that the vehicle is a flood 
                        vehicle.</DELETED>
<DELETED>    ``(c) Electronic Procedures.--A State may employ 
electronic procedures in lieu of paper documents in any case in which 
such electronic procedures provide levels of information, function, and 
security required by this section that are at least equivalent to the 
levels otherwise provided by paper documents.</DELETED>

<DELETED>``Sec.  33303. LABEL REQUIREMENT</DELETED>

<DELETED>    ``(a) 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 
requirements prescribed by the Secretary under this subsection shall be 
similar to the requirements of section 3 of the Automobile Information 
Disclosure Act (15 U.S.C. 1232). The label shall be affixed by the 
individual who conducts the applicable State antitheft 
inspection.</DELETED>
<DELETED>    ``(b) Removal, alteration, or illegibility of required 
label.--No person shall willfully remove, alter, or render illegible 
any label required by subsection (a) affixed to a rebuilt salvage 
vehicle before the vehicle is delivered to the actual custody and 
possession of the first retail purchaser of the vehicle.</DELETED>

<DELETED>``Sec.  33304. PETITION FOR EXTENSIONS OF TIME</DELETED>

<DELETED>    ``(a) In General.--Subject to subsection (b), if a State 
demonstrates to the satisfaction of the Secretary, a valid reason for 
needing an extension of a deadline for compliance with requirements 
under section 33302(a), the Secretary may extend, for a period 
determined by the Secretary, an otherwise applicable deadline with 
respect to that State.</DELETED>
<DELETED>    ``(b) Limitation.--No extension made under subsection (a) 
shall remain in effect on or after the applicable compliance date 
established under section 33302(b).</DELETED>

<DELETED>``Sec.  33305. EFFECT ON STATE LAW</DELETED>

<DELETED>    ``(a) In General.--Beginning on the effective date of the 
regulations issued under section 33302, this chapter shall preempt any 
State law, to the extent that State law is inconsistent with this 
chapter or the regulations issued under this chapter that--</DELETED>
        <DELETED>    ``(1) establish the form of the passenger motor 
        vehicle title;</DELETED>
        <DELETED>    ``(2)(A) 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)--</DELETED>
                <DELETED>    ``(i) any term defined in section 
                33301;</DELETED>
                <DELETED>    ``(ii) the term `salvage', `junk', 
                `reconstructed', `nonrepairable', `unrebuildable', 
                `scrap', `parts only', `rebuilt', `flood', or any other 
                similar symbol or term; or</DELETED>
        <DELETED>    ``(B) apply any of the terms referred to in 
        subparagraph (A) to any passenger motor vehicle (but not in 
        connection with a passenger motor vehicle part or part assembly 
        separate from a passenger motor vehicle); or</DELETED>
        <DELETED>    ``(3) establish titling, recordkeeping, antitheft 
        inspection, or control procedures in connection with any 
        salvage vehicle, rebuilt salvage vehicle, nonrepairable 
        vehicle, or flood vehicle.</DELETED>
<DELETED>    ``(b) Additional disclosures.--Additional disclosures of 
the title status or history of a motor vehicle, in addition to 
disclosures made concerning the applicability of terms defined in 
section 33301, may not be considered to be inconsistent with this 
chapter.</DELETED>
<DELETED>    ``(c) Disclosure of Safety Inspection.--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 that differed from the nationally uniform criteria 
promulgated under section 33302(b)(2)(H)(v).</DELETED>
<DELETED>    ``(d) State Enforcement.--Subsection (a) does not preclude 
a State from enforcing the provisions of this chapter by injunction or 
otherwise, or by establishing State civil or criminal penalties for 
violations of the provisions of this chapter.</DELETED>

<DELETED>``Sec.  33306. CIVIL AND CRIMINAL PENALTIES</DELETED>

<DELETED>    ``(a) Prohibited Acts.--It shall be unlawful for any 
person knowingly and willfully to--</DELETED>
        <DELETED>    ``(1) make or cause to be made any false statement 
        on an application for a title (or duplicate title) for a 
        passenger motor vehicle;</DELETED>
        <DELETED>    ``(2) fail to apply for a salvage title in any 
        case in which such an application is required;</DELETED>
        <DELETED>    ``(3) alter, forge, or counterfeit--</DELETED>
                <DELETED>    ``(A) a certificate of title (or an 
                assignment thereof);</DELETED>
                <DELETED>    ``(B) a nonrepairable vehicle 
                certificate;</DELETED>
                <DELETED>    ``(C) a certificate verifying an antitheft 
                inspection or an antitheft and safety inspection; 
                or</DELETED>
                <DELETED>    ``(D) a decal affixed to a passenger motor 
                vehicle under section 33302(b)(2)(J)(ix);</DELETED>
        <DELETED>    ``(4) falsify the results of, or provide false 
        information in the course of, an inspection conducted under 
        section 33302(b)(2)(H);</DELETED>
        <DELETED>    ``(5) offer to sell any salvage vehicle or 
        nonrepairable vehicle as a rebuilt salvage vehicle; 
        or</DELETED>
        <DELETED>    ``(6) conspire to commit any act under paragraph 
        (1), (2), (3), (4), or (5).</DELETED>
<DELETED>    ``(b) Civil Penalty.--Any person who commits an unlawful 
act under subsection (a) shall be subject to a civil penalty in an 
amount not to exceed $2,000.</DELETED>
<DELETED>    ``(c) Criminal Penalty.--Any person who knowingly commits 
an unlawful act under subsection (a) shall, upon conviction, be--
</DELETED>
        <DELETED>    ``(1) subject to a fine in an amount not to exceed 
        $50,000;</DELETED>
        <DELETED>    ``(2) imprisoned for a term not to exceed 3 years; 
        or</DELETED>
        <DELETED>    ``(3) subject to both fine under paragraph (1) and 
        imprisonment under paragraph (2).''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The analysis for subtitle VI of 
Title 49, United States Code, is amended by adding at the end the 
following new item:</DELETED>

<DELETED>``Automobile safety, antitheft, and title             33301''.
                            disclosure requirements.

</DELETED>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. Effect on State law.
``33306. Civil and criminal 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' 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, 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 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, other than a 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 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.
            ``(12) Flood vehicle.--The term `flood vehicle' means any 
        passenger motor vehicle that--
                    ``(A) has been acquired by an insurance company as 
                part of a damage settlement due to water damage; or
                    ``(B) 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--
                            ``(i) 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 to have no electrical, 
                        computerized or mechanical components which 
                        were damaged by water; or,
                            ``(ii) 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 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.
        Disclosure that a vehicle is a flood vehicle must be made at 
        the time of transfer of ownership and the brand `Flood' shall 
        be conspicuously marked on all subsequent titles for the 
        vehicle. No inspection shall be required unless the owner or 
        insurer of the passenger motor vehicle is seeking to avoid a 
        brand of `Flood' pursuant to subparagraph (B). Disclosing a 
        passenger motor vehicle's status as a flood vehicle or 
        conducting an inspection pursuant to subparagraph (B) 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) 
shall 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 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 receiving 
funds, either directly or indirectly, appropriated under section 
30503(c) of this title after the date of the enactment of this chapter, 
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 receiving funds, either 
directly or indirectly, appropriated under section 30503(c) of this 
title after the date of the enactment of this chapter, 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, a rebuilt salvage vehicle, or 
        a flood vehicle.
            ``(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 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) Any safety inspection for a 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 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 
        flood vehicle 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, 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 word `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 flood vehicle.
            ``(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.
    ``(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 this chapter 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 1997.'.
``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.
    ``(c) Limitation.--The requirements of subsections (a) and (b) 
shall only apply to a transfer of ownership of a 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 this chapter, 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', 
        `nonrepairable', or `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 
        salvage vehicle, rebuilt salvage vehicle, nonrepairable 
        vehicle, or flood 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. 33306. 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 
        paragraph (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. 33307. 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 33306 or enforce the criminal penalties 
under section 33306.
    ``(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' have the same meanings given those 
        terms in section 33301 of this title.''.
            (2) Amend section 30501(5) of title 49, United States Code, 
        by striking ``junk automobiles'' and inserting ``nonrepairable 
        vehicles''.
            (3) Amend section 30501(8) by striking ``salvage 
        automobiles'' and inserting ``salvage vehicles''.
            (4) 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 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 ``nonrepairable 
vehicles, rebuilt salvage vehicles, or salvage vehicles''.