[Congressional Record Volume 143, Number 79 (Monday, June 9, 1997)]
[Senate]
[Pages S5414-S5417]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LOTT (for himself and Mr. Ford):
  S. 852. A bill to establish nationally uniform requirements regarding 
the titling and registration of salvage, nonrepairable, and rebuilt 
vehicles; to the Committee on Commerce, Science, and Transportation.


 NATIONAL MOTOR VEHICLE SAFETY, ANTI-THEFT, TITLE REFORM, AND CONSUMER 
                         PROTECTION ACT OF 1997

  Mr. LOTT. Mr. President, today I am here to talk to my colleagues 
about used cars. No, not to sell you one, but more importantly, to 
protect Americans who buy used cars. I am joined by my friend and 
colleague Senator Ford in introducing legislation which will require 
that the title of a vehicle, at the time of resale, indicate that it 
has been significantly damaged. This bill is about safety. This bill is 
about consumer protection.
  We believe America's policy must protect used car consumers from 
unknowingly purchasing automobiles which have been totaled and rebuilt, 
but sold as undamaged vehicles. Often these vehicles have serious 
safety problems. We want you to join us in helping to protect the 
public. In the last Congress, I worked with Senator Exon to advance 
similar legislation. We need to complete the job this Congress.
  According to the U.S. Department of Transportation's automobile 
auction figures, the practice of selling rebuilt salvage vehicles as 
undamaged used cars costs consumers and the auto industry nearly $4 
billion annually. In some States, as many as 70 percent of all totaled 
vehicles may return to the roads after being purchased by unsuspecting 
buyers. This is dangerous to everyone on America's highways.
  While most States require some type of disclosure on the title 
indicating a vehicle's history, the requirements vary from State to 
State. Some rebuilders take advantage of these inconsistencies in State 
titling procedures to obtain clean titles that bear no indication of 
previous vehicle damage. Not only does this type of fraud affect the 
consumer's wallet, it also threatens the consumer's safety.
  Several years ago, Congress established a Federal task force to study 
this issue. This consumer friendly bill stems from the recommendations 
of that task force.
  Our bill requires that any vehicle with damage exceeding 75 percent 
of its preaccident value be designated as a salvage vehicle. If the 
salvage vehicle is rebuilt and placed back on the road, the title to 
the vehicle must be branded as a rebuilt salvage vehicle and it must 
have an inspection to assure that stolen parts were not used in the 
repair. In addition, all rebuilt salvage vehicles must have a decal 
permanently affixed to the driver's side door jamb indicating that the 
vehicle has been rebuilt. It will also specify whether the vehicle has 
passed an approved safety inspection.
  Mr. President, the number of victims in the rebuilt salvage vehicle 
industry is growing, and it must be stopped. We need to establish 
policies to stop these illegal practices and protect American drivers. 
Along with Mr. Ford, I urge you to join us as a cosponsor of this 
common sense legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 852

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

     SECTION 1. SHORT TITLE.

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

     SEC. 2. 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 new 
     chapter:

  ``CHAPTER 333--AUTOMOBILE SAFETY, ANTI-THEFT, AND TITLE DISCLOSURE 
                              REQUIREMENTS

``Sec.
``33301. Definitions.
``33302. Passenger motor vehicle titling.
``33303. Label requirement.
``33304. Petition for extensions of time.
``33305. Effect on State law.
``33306. Civil and criminal penalties.

     ``Sec. 33301. Definitions

       ``For the purposes of this chapter the following 
     definitions and requirements shall apply:

[[Page S5415]]

       ``(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--
       ``(A) a passenger motor vehicle as defined in section 
     32101(10), including a multipurpose passenger vehicle as 
     defined in section 32101(9); or
       ``(B) a truck (other than a truck referred to in section 
     32101(10)(B)).
       ``(2) Salvage vehicle.--
       ``(A) In general.--Subjet to subparagraph (E), the term 
     `salvage vehicle' means any passenger motor vehicle that has 
     been wrecked, destroyed, or damaged to the extent that--
       ``(i) if the vehicle is not rebuilt or reconstructed, the 
     total estimated cost; or
       ``(ii) if the vehicle is rebuilt or reconstructed, the 
     total actual cost

     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.
       ``(B) Vehicles excluded.--Such term does not include any 
     passenger motor vehicle that--
       ``(i) has a model year designation of the year in which the 
     vehicle was wrecked, destroyed, or damaged, or one of the 6 
     immediately preceding model years; or
       ``(ii) 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, Anti-
     theft, Title Reform, and Consumer Protection Act of 1997, the 
     Secretary shall adjust the dollar figure in clause (ii) of 
     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.
       ``(C) Determination of value of repair parts.--For purposes 
     of subparagraph (A), the value of repair parts shall be 
     determined by using--
       ``(i) the published retail cost of the original equipment 
     manufacturer parts; or
       ``(ii) the actual retail cost of the repair parts to be 
     used in the repair.
       ``(D) 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.
       ``(E) Certain vehicles included.--The term `salvage 
     vehicle' includes, without regard to whether the passenger 
     motor vehicle meets the 75 percent threshold specified in 
     subparagraph (A)--
       ``(i) any 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
       ``(ii) any 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.
       ``(F) Special rule.--A designation of a passenger motor 
     vehicle by an owner under subparagraph (E)(ii) shall not 
     impose any obligation on--
       ``(i) the insurer of the passenger motor vehicle; or
       ``(ii) an insurer processing a claim made by or on behalf 
     of the owner of the passenger motor vehicle.
       ``(3) Salvage title.--
       ``(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.
       ``(B) Transfer of ownership.--Ownership of a salvage 
     vehicle may be transferred on a salvage title.
       ``(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.
       ``(D) Requirement for a salvage title.--A salvage title 
     shall be conspicuously labeled with the word `salvage' across 
     the front of the document.
       ``(4) Rebuilt salvage vehicle.--The term `rebuilt salvage 
     vehicle' means--
       ``(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--
       ``(i) been issued previously a salvage title;
       ``(ii) passed applicable State antitheft inspection;
       ``(iii) been issued a certificate indicating that the 
     passenger motor vehicle has--
       ``(I) passed the antitheft inspection referred to in clause 
     (ii); and
       ``(II) been issued a certificate indicating that the 
     passenger motor vehicle has passed a required safety 
     inspection under section 33302(b)(2)(H); and
       ``(iv) affixed to the door jamb adjacent to the driver's 
     seat a decal stating `Rebuilt Salvage Vehicle--Antitheft and 
     Safety Inspections Passed'; or
       ``(B) for passenger motor vehicles in a State other than a 
     State referred to in subparagraph (A), any passenger motor 
     vehicle that has--
       ``(i) been issued previously a salvage title;
       ``(ii) passed an applicable State antitheft inspection;
       ``(iii) been issued a certificate indicating that the 
     passenger motor vehicle has passed the required antitheft 
     inspection referred to in clause (ii); and
       ``(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'.
       ``(5) Rebuilt salvage title.--
       ``(A) In general.--The term `rebuilt salvage title' means 
     the passanger motor vehicle ownership document issued by a 
     State to the owner of a rebuilt salvage vehicle.
       ``(B) Transfer of ownership.--Ownership of a rebuilt 
     salvage vehicle may be transferred on a rebuilt salvage 
     title.
       ``(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.
       ``(D) Requirement for 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.
       ``(6) Nonrepairable vehicle.--
       ``(A) In general.--The term `nonrepairable vehicle' means 
     any passenger motor vehicle that--
       ``(i)(I) is incapable of safe operation for use on roads or 
     highways; and
       ``(II) has no resale value, except as a source of parts or 
     scrap only; or
       ``(ii) the owner irreversibly designatges as a source of 
     parts or scrap.
       ``(B) Certificate.--Each nonrepairable vehicle shall be 
     issued a nonrepairable vehicle certificate.
       ``(7) Nonrepairable vehicle certificate.--
       ``(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.
       ``(B) Transfer of ownership.--Ownership of the passenger 
     motor vehicle may be transferred not more than 2 times on a 
     nonrepairable vehicle certificate.
       ``(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.
       ``(D) Requirement for nonrepairable vehicle certificate.--A 
     nonrepairable vehicle certificate shall be conspicuously 
     labeled with the term `nonrepairable' across the front of the 
     document.
       ``(8) Flood vehicle.--
       ``(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 truck 
     compartment.
       ``(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.
       ``(9) Secretary.--The term `Secretary' means the Secretary 
     of Transportation.

     ``Sec. 33302. Passenger motor vehicle titling

       ``(a) Carryforward of Certain Title Information If a 
     Previous Title Was Not Issued in Accordance with Certain 
     Nationally Uniform Standards.--
       ``(1) In general.--If--
       ``(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, Anti-theft, 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
       ``(B) the State licenses that vehicle for use, the State 
     shall disclose that fact on a certificate of title issued by 
     the State.
       ``(2) Terms and symbols.--
       ``(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):
       ``(i) salvage.
       ``(ii) unrebuildable.
       ``(iii) parts only.
       ``(iv) scrap.
       ``(v) junk.
       ``(vi) nonrepairable.
       ``(vii) reconstructed.
       ``(viii) rebuilt.
       ``(ix) any other similar term, as determined by the 
     Secretary.
       ``(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.
       ``(b) Nationally Uniform Title Standards and Control 
     Methods.--
       ``(1) In general.--Not later than 18 months after the date 
     of the enactment of the National Motor Vehicle Safety, Anti-
     theft,

[[Page S5416]]

     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--
       ``(A) the issuance and control of that title; and
       ``(B) information to be contained on such title.
       ``(2) Contents of regulations.--The titling standards, 
     control procedures, methods, and information covered under 
     the regulations issued under this subsection shall include 
     the following:
       ``(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.
       ``(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.
       ``(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.
       ``(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.
       ``(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.
       ``(F) Nonrepairable vehicles.--A passenger motor vehicle 
     designated as nonrepairable--
       ``(i) shall be issued a nonrepairable vehicle certificate; 
     and
       ``(ii) may not be retitled.
       ``(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).
       ``(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:
       ``(i) Each owner of a passenger motor vehicle that submits 
     a vehicle for an antitheft inspection shall be required to 
     provide--
       ``(I) a completed document identifying the damage that 
     occurred to the vehicle before being repaired;
       ``(II) a list of replacement parts used to repair the 
     vehicle;
       ``(III) proof of ownership of the replacement parts 
     referred to in subclause (II) (as evidenced by bills of 
     sales, invoices or, if such documents are not available, 
     other proof of ownership for the replacement parts); and
       ``(IV) an affirmation by the owner that--
       ``(a) the information required to be submitted under this 
     subparagraph is complete and accurate; and
       ``(b) to the knowledge of the declarant, no stolen parts 
     were used during the rebuilding of the repaired vehicle.
       ``(ii) Any passenger motor vehicle or any major part or 
     major replacement part required to be marked under this 
     section that--
       ``(I) has a mark or vehicle identification number that has 
     been illegally altered, defaced, or falsified; and
       ``(II) cannot be identified as having been legally obtained 
     (through evidence described in clause (i)(III)),

     shall be contraband and subject to seizure.
       ``(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--
       ``(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
       ``(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.
       ``(iv) With respect to any vehicle part, the regulations 
     issued under this subsection shall--
       ``(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
       ``(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.
       ``(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.
       ``(I) Duplicate titles.--No duplicate or replacement title 
     may be issued by a State unless--
       ``(i) the term `duplicate' is clearly marked on the face of 
     the duplicate or replacement title; and
       ``(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.
       ``(J) Titling and control methods.--Each State shall employ 
     the following titling and control methods:
       ``(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--
       ``(I) on which the passenger motor vehicle is repaired or 
     the ownership of the passenger motor vehicle is transferred; 
     or
       ``(II) that is 30 days after the passenger motor vehicle is 
     damaged.
       ``(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--
       ``(I) properly assigned by the owner to the insurance 
     company; and
       ``(II) delivered to the insurance company with all liens 
     released.
       ``(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, as required by the applicable State--
       ``(I) notify--
       ``(I) the owner of the owner's obligation to apply for a 
     salvage title or nonrepairable vehicle certificate for the 
     passenger motor vehicle; and
       ``(II) the State passenger motor vehicle titling office 
     that a salvage title or nonrepairable vehicle certificate 
     should be issued for the vehicle.
       ``(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.
       ``(v)(I) any person who requires 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.
       ``(II) An application under subclause (I) shall be made the 
     earlier of--
       ``(a) the date on which the vehicle is further transferred; 
     or
       ``(b) 30 days after ownership is acquired.
       ``(III) The requirements of this clause shall not apply to 
     any scrap metal processor that--
       ``(a) acquires a passenger motor vehicle for the sole 
     purpose of processing the motor vehicle into prepared grades 
     of scrap; and
       ``(b) carries out that processing.
       ``(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(b)(7)(B).
       ``(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.
       ``(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--
       ``(a) flatten, bale, or shred the vehicle; and
       ``(b) effect the surrender of the nonrepairable vehicle 
     certificate to the State on behalf of the second transferee.
       ``(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.
       ``(IV) If different from the State of origin of the title 
     or nonrepairable vehicle certificate, the State of surrender 
     shall notify the

[[Page S5417]]

     State of origin of the surrender of the title or 
     nonrepairable vehicle certificate and of the destruction of 
     such vehicle.
       ``(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--
       ``(a) complies with the security and guideline standards 
     established by the Secretary under subparagraphs (C) and (G), 
     as applicable; and
       ``(b) indicates that the vehicle has passed the inspections 
     required by the State under subparagraph (H).
       ``(II) Nothing is this clause shall preclude the issuance 
     of a new salvage title for a salvage vehicle after a transfer 
     of ownership.
       ``(ix) After a passenger motor vehicle titled with a 
     salvage title has passed the inspections required by the 
     State, the inspection official shall--
       ``(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
       ``(II) issue to the owner of the vehicle a certificate 
     indicating that the passenger motor vehicle has passed the 
     inspections required by the State.
       ``(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.
       ``(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.
       ``(K) Flood vehicles.--
       ``(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--
       ``(I) the applicant shall disclose the flood status to the 
     applicable State with the properly assigned title; and
       ``(II) the term `flood' shall be conspicuously labeled 
     across the front of the new title document.
       ``(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.
       ``(c) Electronic Procedures.--A State may employ electronic 
     procedures in lieu of paper documents in any case in which 
     such electronic procedures provided levels of information, 
     function, and security required by this section that are at 
     least equivalent to the levels otherwise provided by paper 
     documents.

     ``Sec. 33303. Label requirement

       ``(a) In General.--The Secretary shall by regulation 
     require that a label be affixed to the windshield or window 
     of a rebuilt or remanufactured salvage vehicle before its 
     first sale at retail containing such information regarding 
     that vehicle as the Secretary may require. The requirements 
     prescribed by the Secretary under this 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.
       ``(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 or remanufactured salvage vehicle before the vehicle 
     is delivered to the actual custody and possession of the 
     ultimate purchaser of the vehicle.

     ``Sec. 33304. Petition for extensions of time

       ``(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.
       ``(b) Limitation.--No extension made under subsection (a) 
     shall remain in effect on or after the applicable compliance 
     date established under section 33302(b).

     ``Sec. 33305. Effect on State law

       ``(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--
       ``(1) establish the form of the passenger motor vehicle 
     title;
       ``(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)--
       ``(i) any term defined in section 33301;
       ``(ii) the term `salvage', `junk', `reconstructed', 
     `nonrepairable', `unrebuildable', `scrap', `parts only', 
     `rebuilt', `flood', or any other similar symbol or term; or
       ``(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
       ``(3) establish titling, recordkeeping, antitheft 
     inspection, or control procedures in connection with any 
     salvage vehicle, rebuilt salvage vehicle, nonrepairable 
     vehicle, or flood vehicle.
       ``(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.
       ``(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).
       ``(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.

     ``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;
       ``(2) fail to apply for a salvage title in any case in 
     which such an application is required;
       ``(3) alter, forge, or counterfeit--
       ``(A) A certificate of title (or an assignment thereof);
       ``(B) a nonrepairable vehicle certificate;
       ``(C) a certificate verifying an antitheft inspection or an 
     antitheft and safety inspection; or
       ``(D) a decal affixed to a passenger motor vehicle under 
     section 33302(b)(2)(J)(ix);
       ``(4) falsify the results of, or provide false information 
     in the course of, an inspection conducted under section 
     33302(b)(2)(H);
       ``(5) offer to sell any salvage vehicle or non-repairable 
     vehicle as a rebuilt salvage vehicle; or
       ``(6) conspire to commit any act under paragraph (1), (2), 
     (3), (4), or (5).
       ``(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.
       ``(c) Criminal Penalty.--Any person who knowingly commits 
     an unlawful act under subsection (a) shall, upon conviction, 
     be--
       ``(1) subject to a fine in an amount not to exceed $50,000;
       ``(2) imprisoned for a term not to exceed 3 years; or
       ``(3) subject to both fine under paragraph (1) and 
     imprisonment under paragraph (2).''.
       (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:

``Automobile safety, antitheft, and title disclosure requirements 
              33301''.
                                 ______