[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 678 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 678

To establish certain safeguards for the protection of purchasers in the 
   sale of motor vehicles that are salvage or have been damaged, to 
   require certain safeguards concerning the handling of salvage and 
   nonrebuildable vehicles, to support the flow of important vehicle 
information to the National Motor Vehicle Title Information System, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 23, 1999

 Mrs. Feinstein (for herself, Mr. Levin, and Mr. Bryan) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To establish certain safeguards for the protection of purchasers in the 
   sale of motor vehicles that are salvage or have been damaged, to 
   require certain safeguards concerning the handling of salvage and 
   nonrebuildable vehicles, to support the flow of important vehicle 
information to the National Motor Vehicle Title Information System, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Salvaged and Damaged Motor Vehicle 
Information Disclosure Act''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) the salvage, flood, and damage history of a motor 
        vehicle is important in assisting a buyer to determine its 
        safety, value and reliability;
            (2) the rebuilding of salvage and flood vehicles bears 
        similarities to the manufacture of motor vehicles, and as such 
        requires safeguards to prevent the sale and operation on the 
        roadways of the United States of unsafe rebuilt motor vehicles;
            (3) the switching of parts and vehicle identification 
        numbers between salvage vehicles and stolen motor vehicles 
        facilitates the disposal of stolen motor vehicles for profit;
            (4) motor vehicle titles and accompanying documents are an 
        important source of information concerning the salvage, flood, 
        and damage history of motor vehicles;
            (5) the National Motor Vehicle Title Information System has 
        the potential to greatly enhance the availability of critical 
        information concerning motor vehicles for the buying public and 
        for auto theft investigators, if sufficient information is made 
        available to that system and through the system to vehicle 
        purchasers; and
            (6) motor vehicles move in, or affect, interstate and 
        foreign commerce.
    (b) Purposes.--The purposes of this Act are as follows:
            (1) To establish certain safeguards for the protection of--
                    (A) buyers in the sale of motor vehicles that are 
                salvage or flood vehicles or have suffered major 
                damage; and
                    (B) any other person whose safety may be affected 
                by such a vehicle.
            (2) To--
                    (A) preserve information provided on motor vehicle 
                titles and accompanying documents with respect to the 
                title and damage history of the vehicles;
                    (B) establish certain safeguards to ensure that, 
                with respect to a motor vehicle, the information 
                described in subparagraph (A) is passed on with all 
                subsequent title transfers; and
                    (C) promote the participation of the States in, and 
                the flow of important information concerning the title 
                and damage history of motor vehicles through, the 
                National Motor Vehicle Title Information System.

SEC. 3. MOTOR VEHICLE TITLING AND DISCLOSURE REQUIREMENTS.

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

 ``CHAPTER 333--SAFEGUARDS FOR PURCHASERS OF MOTOR VEHICLES CONCERNING 
          THE HANDLING OF SALVAGE AND NONREBUILDABLE VEHICLES.

``Sec.
``33301. Definitions.
``33302. Disclosure requirements on transfer of motor vehicles.
``33303. Certification of proper repair.
``33304. Transfer and operation of nonrepairable vehicles.
``33305. Conspiracy to violate this chapter.
``33306. General enforcement provisions.
``33307. Administrative warrants.
``33308. Confidentiality of information.
``33309. Penalties and enforcement.
``33310. Civil actions by private persons.
``33311. Relationship to State law.
``33312. State eligibility for funding.
``Sec. 33301. Definitions
    ``In this chapter:
            ``(1) Actual cost.--The term `actual cost', when used in 
        connection with a motor vehicle, means the price paid at retail 
        for repairs or the fair retail market value of the repairs 
        needed to return a motor vehicle to its undamaged condition, 
        whichever is greater.
            ``(2) Auction company.--The term `auction company' has the 
        meaning given that term in section 32702.
            ``(3) Automotive recycler or dismantler.--The term 
        `automotive recycler or dismantler' has the meaning given that 
        term in section 30501(a).
            ``(4) Cosmetic damage.--The term `cosmetic damage' means 
        damage to paint, glass, trim, tires, or any other component of 
        a motor vehicle that is purely cosmetic in nature.
            ``(5) Cost of repair.--The term `cost of repair' means the 
        estimated or actual cost of repair, whichever is greater.
            ``(6) Dealer.--The term `dealer' has the meaning given that 
        term in section 32702.
            ``(7) Distributor.--The term `distributor' has the meaning 
        given that term in section 32702.
            ``(8) Flood vehicle.--The term `flood vehicle' means a 
        motor vehicle that has--
                    ``(A) been submerged in water to the point that 
                rising water has reached over the door sill of the 
                motor vehicle or has entered the passenger or trunk 
                compartment; or
                    ``(B) had `flood' or a similar word or symbol 
                placed on its title.
            ``(9) Insurance carrier.--The term `insurance carrier' has 
        the meaning given that term in section 30501.
            ``(10) Leased motor vehicle.--The term `leased motor 
        vehicle' means a motor vehicle leased to a person for a period 
        of at least 4 months by a lessor that leased at least 5 
        vehicles during the preceding 12-month period.
            ``(11) Major damage.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term `major damage' means damages of any kind, suffered 
                in 1 incident, that have an aggregate cost of repair of 
                $3,000 or more.
                    ``(B) Inclusion of cosmetic damage.--If the full 
                cost of repair for damages suffered in 1 incident is 
                attributable only to cosmetic damages, those damages 
                shall not constitute major damage.
            ``(12) Motor vehicle.--The term `motor vehicle' has the 
        meaning given that term in section 30102 of title 49, United 
        States Code.
            ``(13) Nonrepairable vehicle.--The term `nonrepairable 
        vehicle' means a motor vehicle that at any time--
                    ``(A) has had `nonrepairable' or a similar word or 
                symbol placed on its title;
                    ``(B) has been designated as a nonrepairable 
                vehicle by its owner; or
                    ``(C) has suffered major damage, in 1 incident, for 
                which the cost of repair exceeds 90 percent of the 
                vehicle's fair retail market before it was damaged.
            ``(14) Salvage vehicle.--The term `salvage vehicle' means a 
        motor vehicle that, at any time--
                    ``(A) has had `salvage' or a similar word or symbol 
                placed on its title;
                    ``(B) has been transferred to an insurance carrier 
                in connection with the resolution of a damage claim;
                    ``(C) has been designated as a salvage vehicle by 
                its owner; or
                    ``(D) has suffered major damage, in 1 incident, for 
                which the cost of repair exceeds 65 percent of the 
                vehicle's fair retail market value immediately before 
                it was damaged.
            ``(15) Secretary.--The term `Secretary' means the Secretary 
        of Transportation.
            ``(16) State.--The term `State' has the meaning given that 
        term in section 32101.
            ``(17) Title.--The term `title' means, with respect to a 
        motor vehicle, the certificate of title or other document 
        issued by a State indicating ownership, or the manufacturer's 
        certificate of origin if no document has been issued by the 
        State indicating ownership.
            ``(18) Transfer.--The term `transfer' has the meaning given 
        that term in section 32702.
``Sec. 33302. Disclosure requirements on transfer of motor vehicles
    ``(a) Disclosure Requirements.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the Salvaged and Damaged Motor Vehicle 
        Information Disclosure Act, the Secretary shall promulgate 
        regulations that--
                    ``(A) provide for the manner in which information 
                is disclosed and retained under this section;
                    ``(B) require that a person transferring ownership 
                of a motor vehicle give the transferee a written 
                disclosure, signed by the transferor and transferee, 
                that--
                            ``(i) states, to the best of the 
                        transferor's knowledge--
                                    ``(I) whether the vehicle at any 
                                time in its history has been a salvage, 
                                flood, or nonrepairable vehicle; and
                                    ``(II) whether the vehicle at any 
                                time in its history has suffered major 
                                damage; and
                            ``(ii) if a vehicle has suffered major 
                        damage or flood damage, includes a brief 
                        description of the nature and amount of each 
                        occurrence of that damage.
            ``(2) Additional requirements.--
                    ``(A) In general.--
                            ``(i) Attachment of form.--Except as 
                        provided in clause (ii), the regulations 
                        promulgated under paragraph (1) shall require 
                        that the original of the form containing the 
                        information described in paragraph (1)(B) be 
                        attached by the transferor to the title of the 
                        motor vehicle.
                            ``(ii) Exception.--If the title of a motor 
                        vehicle includes spaces for disclosures in a 
                        format that conforms with the regulations 
                        promulgated by the Secretary under this 
                        subsection, those disclosures on the title may 
                        constitute the original of the form, if the law 
                        of the State in which the transfer is executed 
                        provides that the disclosures constitute the 
                        original.
                    ``(B) Power of attorney.--
                            ``(i) In general.--The regulations 
                        promulgated under paragraph (1) shall provide 
                        that if the original of the form containing the 
                        information described in paragraph (1)(B) is on 
                        the title, and the title is in the possession 
                        of a lienholder when the transferor transfers 
                        the vehicle, the transferor may use a secure 
                        written power of attorney (if permitted under 
                        applicable State law) in making the disclosure 
                        required under paragraph (1)(B).
                            ``(ii) Procedures.--Any secure written 
                        power of attorney exercised under clause (i) 
                        shall be exercised in accordance with 
                        procedures that are similar to the procedures 
                        under the regulations issued under section 
                        32705(b)(2).
                    ``(C) Disclosure forms.--The regulations 
                promulgated under paragraph (1) shall require that--
                            ``(i) a copy of the form containing the 
                        information described in paragraph (1)(B), or a 
                        copy of the secure power of attorney (if such a 
                        form is used), shall be given to the transferee 
                        before the execution of any sale or transfer of 
                        ownership;
                            ``(ii) the disclosure form shall advise any 
                        transferor who lacks certainty about the 
                        history or scope of damage to the vehicle to 
                        give a full description of all facts known by 
                        the transferor bearing on possible major damage 
                        or flood, salvage, or nonrepairable history; 
                        and
                            ``(iii) the disclosure form shall be 
                        printed by means of a secure printing process 
                        (or other secure process).
                    ``(D) Retention of disclosure forms.--A dealer or 
                distributor that is required by this chapter to execute 
                a disclosure statement on a disclosure form shall 
                retain for at least 5 years a photostat, carbon, or 
                other facsimile copy of each disclosure form that the 
                dealer or distributor issues and receives.
            ``(3) Applicability of requirements.--A person transferring 
        ownership of a motor vehicle shall be subject to the 
        requirements of the regulations promulgated under this section. 
        That person may not give a false statement to the transferee in 
        making the disclosure required by such a regulation or 
        otherwise violate the requirements of those regulations.
            ``(4) Acquisitions for resale.--A person acquiring a motor 
        vehicle for resale may not accept a written disclosure under 
        this section unless the disclosure form is complete, as 
        determined under this section. Such a person may not accept a 
        title to the motor vehicle unless each assignment of the title 
        is accompanied by an attached disclosure form required under 
        this section.
    ``(b) Disclosure Statement Requirement for Licensing.--If the 
ownership of a motor vehicle is transferred, the motor vehicle may not 
be licensed for use in a State unless the transferee, in submitting an 
application to a State for the title on which the license will be 
issued, includes with the application--
            ``(1) the transferor's title; and
            ``(2) an attached disclosure statement on a disclosure form 
        that meets the requirements of this section for each assignment 
        of title that is, as required under subsection (a)--
                    ``(A) signed and dated by each transferor; and
                    ``(B) signed by each transferee.
    ``(c) Leased Motor Vehicles.--
            ``(1) In general.--For a leased motor vehicle, the 
        regulations promulgated under subsection (a) shall require 
        written disclosure concerning major damage, salvage, flood or 
        nonrepairable history to be made--
                    ``(A) by the lessor to the lessee before the 
                execution of any lease documents; and
                    ``(B) by the lessee to the lessor before the 
                lessor's transfer of ownership of the vehicle.
            ``(2) Notice.--Under the regulations described in paragraph 
        (1), the lessor shall provide written notice to the lessee of--
                    ``(A) the lessee's damage, salvage, flood and 
                nonrepairable disclosure requirements under paragraph 
                (1); and
                    ``(B) the penalties for failure to comply with the 
                requirements referred to in subparagraph (A).
            ``(3) Retention of disclosures.--The lessor shall retain 
        the disclosures made by a lessee under paragraph (1) for a 
        period of at least 5 years following the date the lessor 
        transfers the leased motor vehicle.
            ``(4) Transfer of ownership.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), if the lessor transfers ownership of 
                a leased motor vehicle without obtaining possession of 
                the vehicle, the lessor, in making the disclosure 
                required by subsection (a), may indicate on the 
                disclosure form the facts disclosed by the lessee under 
                paragraph (1).
                    ``(B) Exception.--If the lessor has reason to 
                believe that the disclosure by the lessee does not 
                reflect the complete major damage or flood, salvage, or 
                nonrepairable history of the vehicle, the disclosure of 
                the facts disclosed by the lessee shall not be 
                considered sufficient to meet the requirements of 
                subparagraph (A).
    ``(d) Auction Sales.--If any motor vehicle is sold at an auction, 
the auction company or other entity conducting the auction shall 
maintain the following records for at least 5 years after the date of 
the sale:
            ``(1) The name of the most recent owner of the motor 
        vehicle (except the auction company) and the name of the buyer 
        of the motor vehicle.
            ``(2) The vehicle identification number required under 
        chapter 301 or 331.
            ``(3) A statement indicating whether the disclosure given 
        by the most recent owner of the motor vehicle as required by 
        subsection (a) indicated that the vehicle had suffered major 
        damage or was a salvage, flood, or nonrepairable vehicle.
    ``(e) Settlements.--
            ``(1) In general.--In any case in which an insurance 
        carrier makes a settlement on a motor vehicle that is a 
        salvage, flood, or nonrepairable vehicle, or has suffered major 
        damage, and the vehicle is not transferred to the insurance 
        carrier in connection with the settlement, the carrier shall 
        deliver a written notice to the vehicle's owner at or before 
        the time of the settlement informing the owner of the 
        obligation to make disclosures upon transfer of the vehicle in 
        a manner consistent with this chapter.
            ``(2) Additional requirements.--If a vehicle referred to in 
        paragraph (1) is--
                    ``(A) a salvage or flood vehicle, the notice under 
                that paragraph shall inform the owner of the 
                requirements of section 33303; or
                    ``(B) a nonrepairable vehicle, in addition to 
                providing the notice under paragraph (1), the insurance 
                carrier shall notify the State agency responsible for 
                issuing titles to motor vehicles for the State in which 
                the motor vehicle is registered that the motor vehicle 
                is a nonrepairable vehicle.
            ``(3) Disclosure form.--The notice shall enclose a blank 
        disclosure form that meets the requirements of the regulations 
        promulgated under subsection (a) for use by the owner in any 
        transfer of the vehicle.
    ``(f) Nondestruction of Title Information.--
            ``(1) In general.--The regulations promulgated under 
        subsection (a) shall require that for any motor vehicle title 
        issued on or after the date that is 1 year after the date of 
        enactment of the Salvaged and Damaged Motor Vehicle Information 
        Disclosure Act, the issuing State shall conspicuously disclose 
        in writing on the new certificate of title in any case in which 
        the previous title or accompanying documents surrendered to the 
        State indicate that the motor vehicle--
                    ``(A) at any time has been a salvage, flood, 
                nonrepairable, or rebuilt salvage vehicle;
                    ``(B) has suffered major damage; or
                    ``(C) has been described by any other symbol or 
                word of like kind.
            ``(2) Identification of state.--The regulations promulgated 
        under subsection (a) shall require that the name of the State 
        that issued any title showing a description described in 
        subparagraph (A), (B), or (C) of paragraph (1) be conspicuously 
        disclosed in writing on the new certificate of title.
``Sec. 33303. Certification of proper repair
    ``(a) Requirement for Certification of Repaired Salvage or Flood 
Vehicles.--
            ``(1) In general.--
                    ``(A) Regulations.--Not later than 180 days after 
                the date of enactment of the Salvaged and Damaged Motor 
                Vehicle Information Disclosure Act, the Secretary shall 
                promulgate regulations that specify that, after the 
                date which is 1 year after the date of enactment of 
                that Act, no person may transfer any vehicle that 
                becomes a salvage or flood vehicle to any person other 
                than a person described in subparagraph (B), unless the 
                transferor gives to the transferee a copy of a 
                certificate of inspection prepared by a person who 
                rebuilt the vehicle (referred to in this subsection as 
                the `rebuilder') meeting the requirements of paragraph 
                (2)(C) that--
                            ``(i) is signed by the rebuilder; and
                            ``(ii) attests that the original recognized 
                        vehicle manufacturer's established repair 
                        procedures or specifications and allowable 
                        tolerances for the particular model and year 
                        were utilized and adhered to in the repair and 
                        inspection of the vehicle.
                    ``(B) Persons described.--A person described in 
                this subparagraph is--
                            ``(i) an insurance company;
                            ``(ii) a dealer;
                            ``(iii) a distributor; or
                            ``(iv) an automotive recycler or 
                        dismantler.
            ``(2) Additional requirements.--In addition to the 
        requirements under paragraph (1), the regulations promulgated 
        under this subsection shall--
                    ``(A) require that--
                            ``(i) the original of the certificate of 
                        inspection containing the information required 
                        under paragraph (1) be attached by the 
                        transferor to the title, unless the original of 
                        the form has previously been surrendered with a 
                        title to a State;
                            ``(ii) a copy of the certificate of 
                        inspection be given to the transferee before 
                        the execution of any sale or transfer of 
                        ownership documents;
                            ``(iii) the certificate of inspection be 
                        printed by means of a secure printing process 
                        (or other secure process); and
                            ``(iv) a decal or inscription that the 
                        Secretary considers to be permanent be affixed 
                        by the rebuilder on the door jamb or other 
                        prominent location on the vehicle, with the 
                        primary aim of alerting prospective future 
                        purchasers to the salvage or flood history and 
                        the damage to the vehicle;
                    ``(B) provide that, if a title that is issued after 
                the vehicle became a salvage or flood vehicle indicates 
                on its face that a certification from the rebuilder 
                required under this section was surrendered to the 
                State, the transferor shall not be required to provide 
                a certificate of inspection concerning that repair;
                    ``(C) describe the qualifications and equipment 
                required for any person to be permitted to execute a 
                certification described in paragraph (1)(A);
                    ``(D) establish the minimum steps and inquiry to be 
                undertaken during any inspection; and
                    ``(E) at the discretion of the Secretary, require 
                that the inspector shall post a bond, of an amount 
                determined by the Secretary, but not to exceed 
                $250,000, conditioned on terms designed to protect the 
                public against--
                            ``(i) unsafe or otherwise inadequate 
                        repairs; or
                            ``(ii) incorrect or otherwise improper 
                        inspection certifications.
    ``(b) Prohibition.--A person transferring ownership of a motor 
vehicle or making the certification may not violate a regulation 
promulgated under this section or make a false statement in making the 
certification.
``Sec. 33304. Transfer and operation of nonrepairable vehicles
    ``(a) In General.--With respect to any motor vehicle that is first 
determined to be nonrepairable later than 90 days after the date of 
enactment of the Salvaged and Damaged Motor Vehicle Information 
Disclosure Act, a person--
            ``(1) may not register the vehicle in any State for 
        operation on any street, road or highway, and may not operate 
        the vehicle on any street, road or highway, if the person knows 
        that the vehicle has been determined to be nonrepairable; and
            ``(2) may transfer the vehicle only to an insurance 
        company, automotive recycler or dismantler, and only for 
        dismantling into parts or for crushing.
    ``(b) Prohibition.--After a State receives a disclosure form under 
section 33302(a) or a title or title application indicating that a 
motor vehicle is a nonrepairable vehicle, the vehicle that is the 
subject of the form or application may not be licensed for use in that 
State.
``Sec. 33305. Conspiracy to violate this chapter
    ``A person may not conspire to violate section 33302, 33303, or 
33304.
``Sec. 33306. General enforcement provisions
    ``(a) Authority To Inspect and Investigate.--
            ``(1) In general.--Subject to section 33307, the Secretary 
        may conduct an inspection or investigation necessary to carry 
        out this chapter (including a regulation promulgated or order 
        issued under this chapter).
            ``(2) Cooperation.--In conducting an inspection or 
        investigation under this section, the Secretary shall cooperate 
        with State and local officials to the greatest extent 
        practicable.
            ``(3) Information.--The Secretary may provide to the 
        Attorney General information concerning a violation of this 
        chapter (including a regulation promulgated or order issued 
        under this chapter).
    ``(b) Entry, Inspection, and Impoundment.--
            ``(1) In general.--In carrying out subsection (a), an 
        officer or employee designated by the Secretary, on display of 
        proper credentials and written notice to the owner, operator, 
        or agent in charge, may--
                    ``(A) enter and inspect commercial premises in 
                which a motor vehicle or motor vehicle equipment is 
                manufactured, held for shipment or sale, maintained, or 
                repaired;
                    ``(B) enter and inspect noncommercial premises in 
                which the Secretary reasonably believes there is a 
                motor vehicle or motor vehicle equipment that is an 
                object of a violation of this chapter;
                    ``(C) inspect that motor vehicle or motor vehicle 
                equipment; and
                    ``(D) impound for a period of not more than 72 
                hours for inspection a motor vehicle or motor vehicle 
                equipment that the Secretary reasonably believes is an 
                object of a violation of this chapter.
            ``(2)(A) Inspection.--An inspection or impoundment under 
        this subsection shall be conducted at a reasonable time, in a 
        reasonable manner, and with reasonable promptness.
            ``(B) Written notice.--The written notice under paragraph 
        (1) may consist of a warrant issued under section 33307.
    ``(c) Reasonable Compensation.--At such time as the Secretary 
impounds for inspection a motor vehicle (except a vehicle subject to an 
exemption under subchapter I of chapter 135) or motor vehicle equipment 
under subsection (b)(1)(D), the Secretary shall pay reasonable 
compensation to the owner of the vehicle or equipment if the inspection 
or impoundment results in denial of use, or reduction in value, of the 
vehicle or equipment.
    ``(d) Records and Information Requirements.--
            ``(1) In general.--To enable the Secretary to make a 
        determination whether a dealer or distributor is complying with 
        this chapter (including regulations promulgated and orders 
        issued under this chapter), the Secretary may require a dealer, 
        distributor, or automotive recycler or dismantler to--
                    ``(A) keep records;
                    ``(B) provide information from those records if the 
                Secretary states the purpose for requiring the 
                information and identifies the information to the 
                fullest extent practicable; and
                    ``(C) allow an officer or employee designated by 
                the Secretary to inspect relevant records of the dealer 
                or distributor.
            ``(2) Statutory construction.--This subsection and 
        subsection (e)(1)(B) shall not be construed to authorize the 
        Secretary to require a dealer, distributor, or automotive 
        recycler or dismantler to provide information to the Secretary 
        on a regular periodic basis.
    ``(e) Administrative Authority and Civil Actions To Enforce.--
            ``(1) In general.--In carrying out this chapter, the 
        Secretary may--
                    ``(A) inspect and copy records of any person at 
                reasonable times;
                    ``(B) order a person to file written reports or 
                answers to specific questions, including reports or 
                answers under oath; and
                    ``(C) conduct hearings, administer oaths, take 
                testimony, and require (by subpoena or otherwise) the 
                appearance and testimony of witnesses and the 
                production of records the Secretary considers 
                advisable.
            ``(2) Payment of witnesses.--A witness summoned under this 
        subsection may receive the same fee and mileage as that witness 
        would be paid in a court of the United States.
            ``(3) Actions.--
                    ``(A) In general.--A civil action to enforce a 
                subpoena or order of the Secretary under this 
                subsection may be brought in the United States district 
                court for any judicial district in which the proceeding 
                by the Secretary is conducted.
                    ``(B) Contempt of court.--The court may punish a 
                failure to obey an order of the court to comply with 
                the subpoena or order of the Secretary as a contempt of 
                court.
    ``(f) Prohibitions.--A person may not fail to--
            ``(1) keep records or provide access to or copying of 
        records, as required under this section;
            ``(2) make reports or provide information, as required 
        under this section;
            ``(3) allow entry or inspection, as required under this 
        section; or
            ``(4) permit impoundment, as required under this section.
``Sec. 33307. Administrative warrants
    ``(a) Definition.--In this section, the term `probable cause' means 
a valid public interest in the effective enforcement of this chapter 
(including a regulation promulgated under this chapter) that is 
sufficient to justify the inspection or impoundment in the 
circumstances stated in an application for a warrant under this 
section.
    ``(b) Warrant Requirement and Issuance.--
            ``(1) In general.--Except as provided in paragraph (4), an 
        inspection or impoundment under section 33306 may be carried 
        out only after a warrant is obtained.
            ``(2) Warrants.--
                    ``(A) In general.--A judge of a court of the United 
                States or a State court of record or a United States 
                magistrate may issue a warrant for an inspection or 
                impoundment under section 33306 within the territorial 
                jurisdiction of the court or magistrate.
                    ``(B) Requirements for affidavits.--A warrant under 
                subparagraph (A) shall be based on an affidavit that--
                            ``(i) establishes probable cause to issue 
                        the warrant; and
                            ``(ii) is sworn to before the judge or 
                        magistrate by an officer or employee who knows 
                        the facts alleged in the affidavit.
                    ``(C) Issuance of warrants.--The judge or 
                magistrate shall issue a warrant under subparagraph (A) 
                if the judge or magistrate determines there is a 
                reasonable basis for believing that probable cause 
                exists to issue the warrant.
                    ``(D) Requirements for warrants.--A warrant issued 
                under this paragraph shall--
                            ``(i) identify the premises, property, or 
                        motor vehicle to be inspected and the items or 
                        type of property to be impounded;
                            ``(ii) state the purpose of the inspection, 
                        the basis for issuing the warrant, and the name 
                        of the affidavit;
                            ``(iii) direct an individual authorized 
                        under section 33306 to inspect the premises, 
                        property, or vehicle for the purpose stated in 
                        the warrant and, if appropriate, to impound the 
                        property specified in the warrant;
                            ``(iv) direct that the warrant be served 
                        during the hours specified in the warrant; and
                            ``(v) name the judge or magistrate with 
                        whom proof of service is to be filed.
            ``(3) Exclusions.--A warrant is not required under this 
        section, if--
                    ``(A) the owner, operator, or agent in charge of 
                the premises consents to the inspection or impoundment;
                    ``(B) it is reasonable to believe that the mobility 
                of the motor vehicle to be inspected renders obtaining 
                a warrant impractical;
                    ``(C) an application for a warrant cannot be made 
                because of an emergency;
                    ``(D) records are to be inspected and copied under 
                section 33306(e)(1)(A); or
                    ``(E) a warrant is not required under the 
                Constitution of the United States.
    ``(c) Service and Impoundment of Property.--
            ``(1) In general.--
                    ``(A) Period for service.--A warrant issued under 
                this section shall be served and proof of service filed 
                not later than 10 days after its issuance date.
                    ``(B) Extension.--The judge or magistrate may 
                extend the period of time specified in subparagraph (A) 
                in the warrant if the Secretary demonstrates a need for 
                additional time.
                    ``(C) Proof of service.--Proof of service shall be 
                filed promptly after a warrant is executed, with a 
                written inventory of the property impounded under the 
                warrant.
                    ``(D) Inventories.--An inventory under subparagraph 
                (B) shall be made in the presence of--
                            ``(i) the individual serving the warrant 
                        and the individual from whose possession or 
                        premises the property was impounded; or
                            ``(ii) if that individual is not present, a 
                        credible individual, except the individual 
                        making the inventory.
                    ``(E) Verification.--The individual serving the 
                warrant shall verify the inventory.
                    ``(F) Copies of inventories.--On request, the judge 
                or magistrate shall send a copy of the inventory to the 
                individual from whose possession or premises the 
                property was impounded and to the applicant for the 
                warrant.
            ``(2) Impoundment.--When property is impounded under a 
        warrant under this section, the individual serving the warrant 
        shall--
                    ``(A) give the person from whose possession or 
                premises the property was impounded a copy of the 
                warrant and a receipt for the property; or
                    ``(B) leave the copy and receipt at the place from 
                which the property was impounded.
            ``(3) Filing.--A judge or magistrate shall file a warrant, 
        proof of service, and all documents filed about the warrant 
        with the clerk of the United States district court for the 
        judicial district in which an inspection is made.
``Sec. 33308. Confidentiality of information
    ``(a) General.--Information obtained by the Secretary under this 
chapter related to a confidential matter referred to in section 1905 of 
title 18 may be disclosed only--
            ``(1) to another officer or employee of the United States 
        Government for use in carrying out this chapter; or
            ``(2) in a proceeding under this chapter.
    ``(b) Withholding Information From Congress.--This section does not 
authorize information to be withheld from a committee of Congress 
authorized to have the information.
``Sec. 33309. Penalties and enforcement
    ``(a) Civil Penalties.--
            ``(1) In general.--
                    ``(A) Liability.--A person that violates this 
                chapter (including a regulation prescribed or order 
                issued under this chapter) is liable to the United 
                States Government for a civil penalty of not more than 
                $2,000 for each violation.
                    ``(B) Separate violations.--A separate violation 
                occurs for each motor vehicle involved in the 
                violation.
                    ``(C) Maximum penalty.--The maximum penalty under 
                this subsection for a related series of violations is 
                $100,000.
            ``(2) Procedures for imposing civil penalties.--
                    ``(A) Civil penalties.--The Secretary shall impose 
                a civil penalty pursuant to this subsection.
                    ``(B) Civil actions.--The Attorney General shall 
                bring a civil action to collect the penalty.
                    ``(C) Compromise.--Before referring a penalty claim 
                to the Attorney General, the Secretary may compromise 
                the amount of the penalty. Before compromising the 
                amount of the penalty, the Secretary shall give the 
                person charged with a violation an opportunity to 
                establish that the violation did not occur.
            ``(3) Factors for consideration.--In determining the amount 
        of a civil penalty under this subsection, the Secretary shall 
        consider--
                    ``(A) the nature, circumstances, extent, and 
                gravity of the violation;
                    ``(B) with respect to the violator, the degree of 
                culpability, any history of prior violations, the 
                ability to pay, and any effect on the ability or the 
                violator to continue conducting business; and
                    ``(C) such other matters as justice requires.
    ``(b) Criminal Penalties.--
            ``(1) In general.--A person who knowingly and willfully 
        violates this chapter (including a regulation promulgated or 
        order issued under this chapter) shall be fined under title 18, 
        imprisoned for not more than 3 years, or both.
            ``(2) Officers and agents of corporations.--If a person 
        subject to a criminal penalty under paragraph (1) is a 
        corporation, the penalties under this subsection shall also 
        apply to any director, officer, or individual agent of that 
        corporation who knowingly and willfully authorizes, orders, or 
        performs an act in violation of this chapter (including a 
        regulation promulgated or order issued under this chapter) 
        without regard to penalties imposed on the corporation.
    ``(c) Civil Actions Brought by Attorney General.--
            ``(1) In general.--The Attorney General may bring a civil 
        action to enjoin a violation of this chapter or a regulation 
        prescribed or order issued under this chapter. The action may 
        be brought in the United States district court for the judicial 
        district in which the violation occurred or the defendant is 
        found, resides, or does business.
            ``(2) Service of process.--Process in the action may be 
        served in any other judicial district in which the defendant 
        resides or is found. A subpoena for a witness in the action may 
        be served in any judicial district.
    ``(d) Civil Actions by States.--
            ``(1) In general.--In any case in which a person violates 
        this chapter (including a regulation promulgated or order 
        issued under this chapter), the chief law enforcement officer 
        of the State in which the violation occurs may bring a civil 
        action--
                    ``(A) to enjoin the violation; or
                    ``(B) to recover amounts for which the person is 
                liable under section 33310 for each person on whose 
                behalf the action is brought.
            ``(2) Venue; statute of limitations.--
                    ``(A) Venue.--An action under this subsection may 
                be brought in an appropriate United States district 
                court or in a State court of competent jurisdiction.
                    ``(B) Statute of limitations.--An action may be 
                brought under this section not later than 2 years after 
                the date on which the claim accrues.
``Sec. 33310. Civil actions by private persons
    ``(a) Violation and Amount of Damages.--
            ``(1) In general.--A person that violates this chapter or a 
        regulation promulgated or order issued under this chapter, with 
        intent to defraud, is liable for a civil penalty in an amount 
        equal to the greater of--
                    ``(A)(i) the amount of actual damages; multiplied 
                by
                    ``(ii) 3; or
                    ``(B) $5,000.
            ``(2) Motor vehicles used for personal, family, or 
        household use.--A person who owns, leases, or operates a motor 
        vehicle for personal, family, or household use shall not be 
        liable for--
                    ``(A) failure to provide a disclosure or 
                certificate under section 33302(a) or 33303(a) unless 
                the person has actual knowledge of the requirement to 
                provide the disclosure or certificate; and
                    ``(B) any other violation under section 33302 or 
                33303 unless the person has actual knowledge of the 
                facts at issue in the violation.
    ``(b) Civil Actions.--
            ``(1) Venue.--A person may bring a civil action to enforce 
        a claim under this section--
                    ``(A) in any court of competent jurisdiction in any 
                State or the District of Columbia; or
                    ``(B) in an appropriate district court of the 
                United States, if the amount in controversy is greater 
                than $50,000 (exclusive of interest and costs) computed 
                on the basis of all claims to be determined in the 
                action.
            ``(2) Statute of limitations.--An action may be brought 
        under this section not later than 2 years after the date on 
        which the claim accrues.
            ``(3) Attorney's fees.--In an action brought under 
        paragraph (1), the court shall award costs and a reasonable 
        attorney's fees to a person if a judgment is entered for that 
        person.
``Sec. 33311. Relationship to State law
    ``Except to the extent that State law is inconsistent with this 
chapter, nothing in this chapter may be construed to--
            ``(1) affect a State law on titling, disclosures, 
        inspections, or any other matters relating to salvage, flood, 
        damaged, or nonrepairable motor vehicles; or
            ``(2) exempt a person from complying with that law.
``Sec. 33312. State eligibility for funding
    ``(a) In General.--After the date of enactment of the Salvaged and 
Damaged Motor Vehicle Information Disclosure Act, a State that fails to 
comply with section 33302(b), 33302(f), or 33304(b) may not receive 
grant funds under section 30503(c).
    ``(b) List.--The Secretary shall--
            ``(1) maintain a list of States that are in compliance with 
        the requirements of the provisions listed in subsection (a); 
        and
            ``(2) update the list not less frequently than annually, 
        and in any case in which a State becomes a State described in 
        paragraph (1).''.
            (2) Clerical amendment.--The table of chapters for title 
        49, United States Code, is amended by inserting after the item 
        relating to chapter 331 the following:

``333. Safeguards for Purchasers of Motor Vehicles             33301''.
                            Concerning the Handing of 
                            Salvage and Nonrebuildable 
                            Vehicles.

SEC. 4. AMENDMENTS TO CHAPTER 305 OF TITLE 49, UNITED STATES CODE.

    (a) Definitions.--Strike section 30501 of title 49, United States 
Code, and insert the following:
``Sec. 30501. Definitions
    ``In this chapter:
            ``(1) Automotive recycler or dismantler.--The term 
        `automotive recycler or dismantler' means an individual or 
        entity engaged in the business of acquiring or owning salvage 
        or nonrepairable vehicles for--
                    ``(A) resale in their entirety or as spare parts; 
                or
                    ``(B) rebuilding, restoration, or crushing.
            ``(2) Flood vehicle.--The term `flood vehicle' has the 
        meaning given that term in section 33301.
            ``(3) Insurance carrier.--The term `insurance carrier' 
        means an individual or entity engaged in the business of 
        underwriting motor vehicle insurance.
            ``(4) Insurer.--The term `insurer' has the meaning given 
        that term in section 32101.
            ``(5) Major damage.--The term `major damage' has the 
        meaning given that term in section 33301.
            ``(6) Nonrepairable vehicle.--The term `nonrepairable 
        vehicle' has the meaning given that term in section 33301.
            ``(7) Operator.--The term `operator' means the individual 
        or entity authorized or designated as the operator of the 
        National Motor Vehicle Title Information System under section 
        30502(b), or the Attorney General, if there is no such 
        authorized or designated individual or entity.
            ``(8) Salvage vehicle.--The term `salvage vehicle' has the 
        meaning given that term in section 33301.
            ``(9) Self-insured leasing or rental business.--The term 
        `self-insured leasing or rental business' means a business 
        that, during the preceding 12-month period, has leased or 
        rented at least 25 vehicles that were not covered by insurance 
        for claims of damage to those vehicles.
            ``(10) State.--The term `State' means a State of the United 
        States or the District of Columbia.
            ``(11) Title.--With respect to a motor vehicle, the term 
        `title' has the meaning given that term in section 33301.''.
    (b) National Motor Vehicle Information System.--Section 30502 of 
title 49, United States Code, is amended--
            (1) in subsection (d)--
                    (A) by striking ``an automobile'' each place that 
                term appears and inserting ``a motor vehicle'';
                    (B) in paragraph (1), by striking ``certificate of 
                title'' and inserting ``title'';
                    (C) by striking paragraph (3) and inserting the 
                following:
            ``(3) whether a motor vehicle known to be titled in a 
        particular State is or has been a salvage, flood, or 
        nonrepairable vehicle, or has suffered major damage'';
                    (D) in paragraph (4)--
                            (i) by striking ``that automobile'' each 
                        place that term occurs and inserting ``that 
                        motor vehicle''; and
                            (ii) by striking ``certificate of title'' 
                        and inserting ``title''; and
                    (E) by striking paragraph (5) and inserting the 
                following;
            ``(5) whether a motor vehicle bearing a known vehicle 
        identification number has been reported as a salvage, flood, or 
        nonrepairable vehicle''; and
            (2) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``any 
                        automobile'' and inserting ``any motor 
                        vehicle'';
                            (ii) in subparagraph (B), by striking ``a 
                        particular automobile, junk yard, or salvage 
                        yard'' and inserting ``a particular motor 
                        vehicle or automotive recycler or dismantler'';
                            (iii) in subparagraph (C)--
                                    (I) by striking ``an automobile'' 
                                and inserting ``a motor vehicle'';
                                    (II) by striking ``used 
                                automobiles'' and inserting ``used 
                                motor vehicles''; and
                                    (III) by striking ``that 
                                automobile'' and inserting ``that motor 
                                vehicle''; and
                            (iv) in subparagraph (D)--
                                    (I) by striking ``an automobile'' 
                                and inserting ``a motor vehicle''; and
                                    (II) by striking ``that 
                                automobile'' and inserting ``that motor 
                                vehicle''; and
                    (B) in paragraph (2), by striking the second 
                sentence and inserting the following: ``The operator 
                may not collect the social security account number of 
                an individual or permit any user of the System to 
                obtain the address or social security account number of 
                an individual, except that the operator shall permit an 
                owner of a motor vehicle to obtain the name and address 
                of a previous owner of that vehicle, if available, upon 
                receipt of a written certification by the owner that 
                the information is sought only for use in investigating 
                facts about the prior history of the vehicle.''.
    (c) State Participation.--Section 30503 of title 49, United States 
Code, is amended--
            (1) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``an automobile'' and inserting ``the 
                automobile''; and
                    (B) in paragraph (1)--
                            (i) by striking ``automobile'' each place 
                        that term appears and inserting ``motor 
                        vehicle''; and
                            (ii) by striking ``certificate of title'' 
                        each place that term appears and inserting 
                        ``title''; and
            (2) in subsection (c), by striking ``automobiles'' and 
        inserting ``motor vehicles''.
    (d) Reporting Requirements.--Section 30504 of title 49, United 
States Code, is amended--
            (1) by striking ``the automobile'' each place that term 
        appears and inserting ``the motor vehicle'';
            (2) in subsection (a)--
                    (A) by striking the subsection heading and all that 
                follows through ``at a time'' and inserting the 
                following:
    ``(a) Automotive Recyclers or Dismantlers.--Beginning at a time'';
                    (B) in the first sentence, by striking ``junk yard 
                or salvage yard'' and inserting ``automotive recycler 
                or dismantler''; and
                    (C) by striking the second sentence and inserting 
                the following: ``The report shall contain an inventory 
                of all salvage, flood, or nonrepairable vehicles, and 
                all vehicles that have suffered major damage, obtained 
                by the automotive recycler or dismantler during the 
                preceding month.'';
                    (D) by striking paragraph (2);
                    (E) by striking ``(A)'' and inserting ``(1)'';
                    (F) by striking ``(B)'' and inserting ``(2)'';
                    (G) by striking ``(C)'' and inserting ``(3)''; and
                    (H) by striking ``(D)'' and inserting ``(4)''; and
            (3) by striking subsection (b) and inserting the following:
    ``(b) Insurance Carriers and Self-Insured Leasing or Rental 
Businesses.--
            ``(1) In general.--Beginning on a date established by the 
        Attorney General, but not earlier than the third month before 
        the establishment or designation of the System, an individual 
        or entity engaged in business as an insurance carrier or self-
        insured leasing or rental business shall file--
                    ``(A) an initial report with the operator; and
                    ``(B) a monthly report thereafter.
            ``(2) Filing.--A report under paragraph (1) may be filed 
        directly or through a designated agent.
            ``(3) Reports filed by insurance carriers.--A report filed 
        under paragraph (1) by an insurance carrier shall contain an 
        inventory of all motor vehicles with respect to which the 
        insurance carrier, during the preceding month--
                    ``(A) has settled claims; and
                    ``(B) has determined to--
                            ``(i) have suffered major damage or flood 
                        damage; or
                            ``(ii) have become a salvage or 
                        nonrepairable vehicle.
            ``(4) Reports filed by self-insured leasing or rental 
        businesses.--A report filed under paragraph (1) by a self-
        insured leasing or rental business shall contain an inventory 
        of all motor vehicles leased or rented by the business with 
        respect to which the business, during the preceding month, has 
        determined to have--
                    ``(A) suffered major damage or flood damage; or
                    ``(B) become a salvage or nonrepairable vehicle.
            ``(5) Inventories.--An inventory in a report filed under 
        this subsection by an insurance carrier or self-insured leasing 
        or rental business under this subsection shall contain--
                    ``(A) the vehicle identification number of each 
                such motor vehicle;
                    ``(B) the date and description of the damage to the 
                vehicle;
                    ``(C)(i) the name of the individual or entity who 
                owned the vehicle; and
                    ``(ii) if the vehicle was leased or rented--
                            ``(I) the date on which the vehicle was 
                        damaged; and
                            ``(II) the name of the individual or entity 
                        who leased or rented the vehicle; and
                    ``(D) the name of the owner of the vehicle at the 
                time of the filing of the report.''.
                                 <all>