[Congressional Record Volume 143, Number 152 (Tuesday, November 4, 1997)]
[House]
[Pages H9907-H9914]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NATIONAL SALVAGE MOTOR VEHICLE CONSUMER PROTECTION ACT OF 1997
Mr. BLILEY. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 1839) to establish nationally uniform requirements regarding
the titling and registration of salvage, nonrepairable, and rebuilt
vehicles, as amended.
The Clerk read as follows:
H.R. 1839
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Salvage Motor
Vehicle Consumer Protection Act of 1997''.
SEC. 2. MOTOR VEHICLE TITLING AND DISCLOSURE REQUIREMENTS.
(a) Amendment to Title 49, United States Code.--Subtitle VI
of title 49, United States Code, is amended by inserting a
new chapter at the end:
``CHAPTER 333--AUTOMOBILE SAFETY AND TITLE DISCLOSURE REQUIREMENTS
``Sec.
``33301. Definitions.
``33302. Passenger motor vehicle titling.
``33303. Disclosure and label requirements on transfer of rebuilt
salvage vehicles.
``33304. Report on funding.
``33305. Effect on State law.
``33306. Civil and criminal penalties.
``33307. Actions by States.
``Sec. 33301. Definitions
``(a) Definitions.--For the purposes of this chapter:
``(1) Passenger motor vehicle.--The term `passenger motor
vehicle' shall have the same meaning given such term by
section 32101(10), except, notwithstanding section 32101(9),
it shall include a multipurpose passenger vehicle
(constructed on a truck chassis or with special features for
occasional off-road operation), or a truck, other than a
truck referred to in section 32101(10)(B), when that vehicle
or truck is rated by the manufacturer of such vehicle or
truck at not more than 10,000 pounds gross vehicle weight,
and except further, it shall only include a vehicle
manufactured primarily for use on public streets, roads, and
highways.
``(2) Salvage vehicle.--The term `salvage vehicle' means
any passenger motor vehicle, other than a flood vehicle or a
nonrepairable vehicle, which--
``(A) is a late model vehicle which has been wrecked,
destroyed, or damaged, to the extent that the total cost of
repairs to rebuild or reconstruct the passenger motor vehicle
to its condition immediately before it was wrecked,
destroyed, or damaged, and for legal operation on the roads
or highways, exceeds 80 percent of the retail value of the
passenger motor vehicle;
``(B) is a late model vehicle which has been wrecked,
destroyed, or damaged, and to which an insurance company
acquires ownership pursuant to a damage settlement (except in
the case of a settlement in connection with a recovered
stolen vehicle, unless such vehicle sustained damage
sufficient to meet the damage threshold prescribed by
subparagraph (A)); or
``(C) the owner wishes to voluntarily designate as a
salvage vehicle by obtaining a salvage title, without regard
to the level of damage, age, or value of such vehicle or any
other factor, except that such designation by the owner
shall not impose on the insurer of the passenger motor
vehicle or on an insurer processing a claim made by or on
behalf of the owner of the passenger motor vehicle any
obligation or liability.
``(3) Salvage title.--The term `salvage title' means a
passenger motor vehicle ownership document issued by the
State to the owner of a salvage vehicle. A salvage title
[[Page H9908]]
shall be conspicuously labeled with the word `salvage' across
the front.
``(4) Rebuilt salvage vehicle.--The term `rebuilt salvage
vehicle' means--
``(A) any passenger motor vehicle which was previously
issued a salvage title, has passed State anti-theft
inspection, has been issued a certificate indicating that the
passenger motor vehicle has passed the required anti-theft
inspection, has passed the State safety inspection in those
States requiring a safety inspection pursuant to section
33302(b)(8), has been issued a certificate indicating that
the passenger motor vehicle has passed the required safety
inspection in those States requiring such a safety inspection
pursuant to section 33302(b)(8), and has a decal stating
`Rebuilt Salvage Vehicle--Anti-theft and Safety Inspections
Passed' affixed to the driver's door jamb; or
``(B) any passenger motor vehicle which was previously
issued a salvage title, has passed a State anti-theft
inspection, has been issued a certificate indicating that the
passenger motor vehicle has passed the required anti-theft
inspection, and has, affixed to the driver's door jamb, a
decal stating `Rebuilt Salvage Vehicle--Anti-theft Inspection
Passed/No Safety Inspection Pursuant to National Criteria' in
those States not requiring a safety inspection pursuant to
section 33302(b)(8).
``(5) Rebuilt salvage title.--The term `rebuilt salvage
title' means the passenger motor vehicle ownership document
issued by the State to the owner of a rebuilt salvage
vehicle. A rebuilt salvage title shall be conspicuously
labeled either with the words `Rebuilt Salvage Vehicle--Anti-
theft and Safety Inspections Passed' or `Rebuilt Salvage
Vehicle--Anti-theft Inspection Passed/No Safety Inspection
Pursuant to National Criteria,' as appropriate, across the
front.
``(6) Nonrepairable vehicle.--The term `nonrepairable
vehicle' means any passenger motor vehicle, other than a
flood vehicle, which is incapable of safe operation for use
on roads or highways and which has no resale value except as
a source of parts or scrap only or which the owner
irreversibly designates as a source of parts or scrap. Such
passenger motor vehicle shall be issued a nonrepairable
vehicle certificate and shall never again be titled or
registered.
``(7) Nonrepairable vehicle certificate.--The term
`nonrepairable vehicle certificate' means a passenger motor
vehicle ownership document issued by the State to the owner
of a nonrepairable vehicle. A nonrepairable vehicle
certificate shall be conspicuously labeled with the word
`Nonrepairable' across the front.
``(8) Secretary.--The term `Secretary' means the Secretary
of Transportation.
``(9) Late model vehicle.--The term `Late Model Vehicle'
means any passenger motor vehicle which--
``(A) has a manufacturer's model year designation of or
later than the year in which the vehicle was wrecked,
destroyed, or damaged, or any of the six preceding years; or
``(B) has a retail value of more than $7,500.
The Secretary shall adjust such retail value on an annual
basis in accordance with changes in the consumer price index.
``(10) Retail value.--The term `retail value' means the
actual cash value, fair market value, or retail value of a
passenger motor vehicle as--
``(A) set forth in a current edition of any nationally
recognized compilation (to include automated databases) of
retail values; or
``(B) determined pursuant to a market survey of comparable
vehicles with regard to condition and equipment.
``(11) Cost of repairs.--The term `cost of repairs' means
the estimated retail cost of parts needed to repair the
vehicle or, if the vehicle has been repaired, the actual
retail cost of the parts used in the repair, and the cost of
labor computed by using the hourly labor rate and time
allocations that are reasonable and customary in the
automobile repair industry in the community where the repairs
are to be performed.
``(12) Flood vehicle.--The term `flood vehicle' means any
passenger motor vehicle that--
``(A) has been acquired by an insurance company as part of
a damage settlement due to water damage; or
``(B) has been submerged in water to the point that rising
water has reached over the door sill, has entered the
passenger or trunk compartment, and has exposed any
electrical, computerized, or mechanical component to water,
except--
``(i) where a passenger motor vehicle which, pursuant to an
inspection conducted by an insurance adjuster or estimator, a
motor vehicle repairer or motor vehicle dealer in accordance
with inspection guidelines or procedures established by the
Secretary or the State, is determined to have no electrical,
computerized or mechanical components which were damaged by
water; or,
``(ii) where a passenger motor vehicle which, pursuant to
an inspection conducted by an insurance adjuster or
estimator, a motor vehicle repairer or motor vehicle dealer
in accordance with inspection guidelines or procedures
established by the Secretary or the State, is determined to
have one or more electrical, computerized or mechanical
components which were damaged by water and where all such
damaged components have been repaired or replaced.
Disclosure that a vehicle is a flood vehicle must be made at
the time of transfer of ownership and the brand `Flood' shall
be conspicuously marked on all subsequent titles for the
vehicle. No inspection shall be required unless the owner or
insurer of the passenger motor vehicle is seeking to avoid a
brand of `Flood' pursuant to subparagraph (B). Disclosing a
passenger motor vehicle's status as a flood vehicle or
conducting an inspection pursuant to subparagraph (B) shall
not impose on any person any liability for damage to (except
in the case of damage caused by the inspector at the time of
the inspection) or reduced value of a passenger motor
vehicle.
``(b) Construction.--The definitions set forth in
subsection (a) shall only apply to vehicles in a State which
are wrecked, destroyed, or otherwise damaged on or after the
date on which such State complies with the requirements of
this chapter and the rule promulgated pursuant to section
33302(b).
``Sec. 33302. Passenger motor vehicle titling
``(a) Carry-Forward of Information on a Newly Issued Title
Where the Previous Title for the Vehicle Was Not Issued
Pursuant to New Nationally Uniform Standards.--For any
passenger motor vehicle, the ownership of which is
transferred on or after the date that is 1 year from the date
of the enactment of this chapter, each State receiving funds,
either directly or indirectly, appropriated under section
30503(c) of this title after fiscal year 1998, in licensing
such vehicle for use, shall disclose in writing on the
certificate of title whenever records readily accessible to
the State indicate that the passenger motor vehicle was
previously issued a title that bore any word or symbol
signifying that the vehicle was `salvage', `unrebuildable',
`parts only', `scrap', `junk', `nonrepairable',
`reconstructed', `rebuilt', or any other symbol or word of
like kind, or that it has been damaged by flood.
``(b) Nationally Uniform Title Standards and Control
Methods.--Not later than 18 months after the date of the
enactment of this chapter, the Secretary shall by rule
require each State receiving funds, either directly or
indirectly, appropriated under section 30503(c) of this title
after fiscal year 1998, in licensing any passenger motor
vehicle where ownership of such passenger motor vehicle is
transferred more than 2 years after publication of such final
rule, to apply uniform standards, procedures, and methods for
the issuance and control of titles for motor vehicles and for
information to be contained on such titles. Such titling
standards, control procedures, methods, and information shall
include the following requirements:
``(1) A State shall conspicuously indicate on the face of
the title or certificate for a passenger motor vehicle, as
applicable, if the passenger motor vehicle is a salvage
vehicle, a nonrepairable vehicle, a rebuilt salvage vehicle,
or a flood vehicle.
``(2) Such information concerning a passenger motor
vehicle's status shall be conveyed on any subsequent title,
including a duplicate or replacement title, for the passenger
motor vehicle issued by the original titling State or any
other State.
``(3) The title documents, the certificates, and decals
required by section 33301(4), and the issuing system shall
meet security standards minimizing the opportunities for
fraud.
``(4) The certificate of title shall include the passenger
motor vehicle make, model, body type, year, odometer
disclosure, and vehicle identification number.
``(5) The title documents shall maintain a uniform layout,
to be established in consultation with the States or an
organization representing them.
``(6) A passenger motor vehicle designated as nonrepairable
shall be issued a nonrepairable vehicle certificate and shall
not be retitled.
``(7) No rebuilt salvage title shall be issued to a salvage
vehicle unless, after the salvage vehicle is repaired or
rebuilt, it complies with the requirements for a rebuilt
salvage vehicle pursuant to section 33301(4). Any State
inspection program operating under this paragraph shall be
subject to continuing review by and approval of the
Secretary. Any such anti-theft inspection program shall
include the following:
``(A) A requirement that the owner of any passenger motor
vehicle submitting such vehicle for an anti-theft inspection
provide a completed document identifying the vehicle's damage
prior to being repaired, a list of replacement parts used to
repair the vehicle, and proof of ownership of such
replacement parts, as may be evidenced by bills of sale,
invoices, or, if such documents are not available, other
proof of ownership for the replacement parts. The owner shall
also include an affirmation that the information in the
declaration is complete and accurate and that, to the
knowledge of the declarant, no stolen parts were used during
the rebuilding.
``(B) A requirement to inspect the passenger motor vehicle
or any major part or any major replacement part required to
be marked under section 33102 for signs of such mark or
vehicle identification number being illegally altered,
defaced, or falsified. Any such passenger motor vehicle or
any such part having a mark or vehicle identification number
that has been illegally altered, defaced, or falsified, and
that cannot be identified as having been legally obtained
(through bills of sale, invoices, or other ownership
documentation), shall be contraband and subject to seizure.
The Secretary, in consultation with the Attorney General,
shall, as part of the rule required by this section,
establish procedures for dealing with those parts whose mark
or vehicle identification number is normally removed during
industry
[[Page H9909]]
accepted remanufacturing or rebuilding practices, which parts
shall be deemed identified for purposes of this section if
they bear a conspicuous mark of a type, and applied in such a
manner, as designated by the Secretary, indicating that they
have been rebuilt or remanufactured. With respect to any
vehicle part, the Secretary's rule, as required by this
section, shall acknowledge that a mark or vehicle
identification number on such part may be legally removed or
altered as provided for in section 511 of title 18, United
States Code, and shall direct inspectors to adopt such
procedures as may be necessary to prevent the seizure of a
part from which the mark or vehicle identification number has
been legally removed or altered.
``(8) Any safety inspection for a rebuilt salvage vehicle
performed pursuant to this chapter shall be performed in
accordance with nationally uniform safety inspection criteria
established by the Secretary. A State may determine whether
to conduct such safety inspection itself, contract with one
or more third parties, or permit self-inspection by a person
licensed by such State in an automotive-related business, all
subject to criteria promulgated by the Secretary hereunder.
Any State inspection program operating under this paragraph
shall be subject to continuing review by and approval of the
Secretary. A State requiring such safety inspection may
require the payment of a fee for the privilege of such
inspection or the processing thereof.
``(9) No duplicate or replacement title shall be issued
unless the word `duplicate' is clearly marked on the face
thereof and unless the procedures for such issuance are
substantially consistent with Recommendation three of the
Motor Vehicle Titling, Registration and Salvage Advisory
Committee.
``(10) A State shall employ the following titling and
control methods:
``(A) If an insurance company is not involved in a damage
settlement involving a salvage vehicle or a nonrepairable
vehicle, the passenger motor vehicle owner shall apply for a
salvage title or nonrepairable vehicle certificate, whichever
is applicable, before the passenger motor vehicle is repaired
or the ownership of the passenger motor vehicle is
transferred, but in any event within 30 days after the
passenger motor vehicle is damaged.
``(B) If an insurance company, pursuant to a damage
settlement, acquires ownership of a passenger motor vehicle
that has incurred damage requiring the vehicle to be titled
as a salvage vehicle or nonrepairable vehicle, the insurance
company or salvage facility or other agent on its behalf
shall apply for a salvage title or nonrepairable vehicle
certificate within 30 days after the title is properly
assigned by the owner to the insurance company and delivered
to the insurance company or salvage facility or other agent
on its behalf with all liens released.
``(C) If an insurance company does not assume ownership of
an insured's or claimant's passenger motor vehicle that has
incurred damage requiring the vehicle to be titled as a
salvage vehicle or nonrepairable vehicle, the insurance
company shall notify the owner of the owner's obligation to
apply for a salvage title or nonrepairable vehicle
certificate for the passenger motor vehicle and notify the
State passenger motor vehicle titling office that a salvage
title or nonrepairable vehicle certificate should be issued
for the vehicle, except to the extent such notification is
prohibited by State insurance law.
``(D) If a leased passenger motor vehicle incurs damage
requiring the vehicle to be titled as a salvage vehicle or
nonrepairable vehicle, the lessor shall apply for a salvage
title or nonrepairable vehicle certificate within 21 days
after being notified by the lessee that the vehicle has been
so damaged, except when an insurance company, pursuant to a
damage settlement, acquires ownership of the vehicle. The
lessee of such vehicle shall inform the lessor that the
leased vehicle has been so damaged within 30 days after the
occurrence of the damage.
``(E) Any person acquiring ownership of a damaged passenger
motor vehicle that meets the definition of a salvage or
nonrepairable vehicle for which a salvage title or
nonrepairable vehicle certificate has not been issued, shall
apply for a salvage title or nonrepairable vehicle
certificate, whichever is applicable. This application shall
be made before the vehicle is further transferred, but in any
event, within 30 days after ownership is acquired. The
requirements of this subparagraph shall not apply to any
scrap metal processor which acquires a passenger motor
vehicle for the sole purpose of processing it into prepared
grades of scrap and which so processes such vehicle.
``(F) State records shall note when a nonrepairable vehicle
certificate is issued. No State shall issue a nonrepairable
vehicle certificate after 2 transfers of ownership.
``(G) When a passenger motor vehicle has been flattened,
baled, or shredded, whichever comes first, the title or
nonrepairable vehicle certificate for the vehicle shall be
surrendered to the State within 30 days. If the second
transferee on a nonrepairable vehicle certificate is
unequipped to flatten, bale, or shred the vehicle, such
transferee shall, at the time of final disposal of the
vehicle, use the services of a professional automotive
recycler or professional scrap processor who is hereby
authorized to flatten, bale, or shred the vehicle and to
effect the surrender of the nonrepairable vehicle certificate
to the State on behalf of such second transferee. State
records shall be updated to indicate the destruction of such
vehicle and no further ownership transactions for the vehicle
will be permitted. If different than the State of origin of
the title or nonrepairable vehicle certificate, the State of
surrender shall notify the State of origin of the surrender
of the title or nonrepairable vehicle certificate and of the
destruction of such vehicle.
``(H) When a salvage title is issued, the State records
shall so note. No State shall permit the retitling for
registration purposes or issuance of a rebuilt salvage title
for a passenger motor vehicle with a salvage title without a
certificate of inspection, which complies with the security
and guideline standards established by the Secretary pursuant
to paragraphs (3), (7), and (8), as applicable, indicating
that the vehicle has passed the inspections required by the
State. This subparagraph does not preclude the issuance of a
new salvage title for a salvage vehicle after a transfer of
ownership.
``(I) After a passenger motor vehicle titled with a salvage
title has passed the inspections required by the State, the
inspection official will affix the secure decal required
pursuant to section 33301(4) to the driver's door jamb of the
vehicle and issue to the owner of the vehicle a certificate
indicating that the passenger motor vehicle has passed the
inspections required by the State. The decal shall comply
with the permanency requirements established by the
Secretary.
``(J) The owner of a passenger motor vehicle titled with a
salvage title may obtain a rebuilt salvage title or vehicle
registration, or both, by presenting to the State the salvage
title, properly assigned, if applicable, along with the
certificate that the vehicle has passed the inspections
required by the State. With such proper documentation and
upon request, a rebuilt salvage title or registration, or
both, shall be issued to the owner. When a rebuilt salvage
title is issued, the State records shall so note.
``(11) A seller of a passenger motor vehicle that becomes a
flood vehicle shall, at or prior to the time of transfer of
ownership, give the buyer a written notice that the vehicle
has been damaged by flood, provided such person has actual
knowledge that such vehicle has been damaged by flood. At the
time of the next title application for the vehicle,
disclosure of the flood status shall be provided to the
applicable State with the properly assigned title and the
word `Flood' shall be conspicuously labeled across the front
of the new title.
``(12) In the case of a leased passenger motor vehicle, the
lessee, within 15 days of the occurrence of the event that
caused the vehicle to become a flood vehicle, shall give the
lessor written disclosure that the vehicle is a flood
vehicle.
``(13) Ownership of a passenger motor vehicle may be
transferred on a salvage title, however, a passenger motor
vehicle for which a salvage title has been issued shall not
be registered for use on the roads or highways unless it has
been issued a rebuilt salvage title.
``(14) Ownership of a passenger motor vehicle may be
transferred on a rebuilt salvage title, and a passenger motor
vehicle for which a rebuilt salvage title has been issued may
be registered for use on the roads and highways.
``(15) Ownership of a passenger motor vehicle may only be
transferred 2 times on a nonrepairable vehicle certificate. A
passenger motor vehicle for which a nonrepairable vehicle
certificate has been issued can never be titled or registered
for use on roads or highways.
``(c) Consumer Notice in Noncompliant States.--Any State
receiving, either directly or indirectly, funds appropriated
under section 30503(c) of this title after fiscal year 1998
and not complying with the requirements of subsections (a)
and (b) of this section, shall conspicuously print the
following notice on all titles or ownership certificates
issued for passenger motor vehicles in such State until such
time as such State is in compliance with the requirements of
subsections (a) and (b) of this section: `NOTICE: This State
does not conform to the uniform Federal requirements of the
National Salvage Motor Vehicle Consumer Protection Act of
1997.'.
``Sec. 33303. Disclosure and label requirements on transfer
of rebuilt salvage vehicles
``(a) Written Disclosure Requirements.--
``(1) General rule.--Under regulations prescribed by the
Secretary of Transportation, a person transferring ownership
of a rebuilt salvage vehicle shall give the transferee a
written disclosure that the vehicle is a rebuilt salvage
vehicle when such person has actual knowledge of the status
of such vehicle.
``(2) False statement.--A person making a written
disclosure required by a regulation prescribed under
paragraph (1) of this subsection may not make a false
statement in the disclosure.
``(3) Completeness.--A person acquiring a rebuilt salvage
vehicle for resale may accept a disclosure under paragraph
(1) only if it is complete.
``(4) Regulations.--The regulations prescribed by the
Secretary shall provide the way in which information is
disclosed and retained under paragraph (1).
``(b) Label Requirements.--
``(1) In general.--The Secretary shall by regulation
require that a label be affixed to the windshield or window
of a rebuilt salvage vehicle before its first sale at retail
containing such information regarding that vehicle as the
Secretary may require. The label shall be affixed by the
individual who conducts the
[[Page H9910]]
applicable State antitheft inspection in a participating
State.
``(2) Removal, alteration, or illegibility of required
label.--No person shall willfully remove, alter, or render
illegible any label required by paragraph (1) affixed to a
rebuilt salvage vehicle before the vehicle is delivered to
the actual custody and possession of the first retail
purchaser.
``(c) Limitation.--The requirements of subsections (a) and
(b) shall only apply to a transfer of ownership of a rebuilt
salvage vehicle where such transfer occurs in a State which,
at the time of the transfer, is complying with subsections
(a) and (b) of section 33302.
``Sec. 33304. Report on funding
``The Secretary shall, contemporaneously with the issuance
of a final rule pursuant to section 33302(b), report to
appropriate committees of Congress whether the costs to the
States of compliance with such rule can be met by user fees
for issuance of titles, issuance of registrations, issuance
of duplicate titles, inspection of rebuilt vehicles, or for
the State services, or by earmarking any moneys collected
through law enforcement action to enforce requirements
established by such rule.
``Sec. 33305. Effect on State law
``(a) In General.--Unless a State is in compliance with
subsection (c) of section 33302, effective on the date the
rule promulgated pursuant to section 33302 becomes effective,
the provisions of this chapter shall preempt all State laws
in States receiving funds, either directly or indirectly,
appropriated under section 30503(c) of this title after
fiscal year 1998, to the extent they are inconsistent with
the provisions of this chapter or the rule promulgated
pursuant to section 33302, which--
``(1) set forth the form of the passenger motor vehicle
title;
``(2) define, in connection with a passenger motor vehicle
(but not in connection with a passenger motor vehicle part or
part assembly separate from a passenger motor vehicle), any
term defined in section 33301 or the terms `salvage', `junk',
`reconstructed', `nonrepairable', `unrebuildable', `scrap',
`parts only', `rebuilt', `flood', or any other symbol or word
of like kind, or apply any of those terms to any passenger
motor vehicle (but not to a passenger motor vehicle part or
part assembly separate from a passenger motor vehicle); or
``(3) set forth titling, recordkeeping, anti-theft
inspection, or control procedures in connection with any
salvage vehicle, rebuilt salvage vehicle, nonrepairable
vehicle, or flood vehicle.
The requirements described in paragraph (3) shall not be
construed to affect any State consumer law actions that may
be available to residents of the State for violations of this
chapter.
``(b) Construction.--Additional disclosures of a passenger
motor vehicle's title status or history, in addition to the
terms defined in section 33301, shall not be deemed
inconsistent with the provisions of this chapter. Such
disclosures shall include disclosures made on a certificate
of title. When used in connection with a passenger motor
vehicle (but not in connection with a passenger motor vehicle
part or part assembly separate from a passenger motor
vehicle), any definition of a term defined in section 33301
which is different than the definition in that section or any
use of any term listed in subsection (a), but not defined in
section 33301, shall be deemed inconsistent with the
provisions of this chapter. Nothing in this chapter shall
preclude a State from disclosing on a rebuilt salvage title
that a rebuilt salvage vehicle has passed a State safety
inspection which differed from the nationally uniform
criteria to be promulgated pursuant to section 33302(b)(8).
``Sec. 33306. Civil and criminal penalties
``(a) Prohibited Acts.--It shall be unlawful for any person
knowingly and willfully to--
``(1) make or cause to be made any false statement on an
application for a title (or duplicate title) for a passenger
motor vehicle or any disclosure made pursuant to section
33303;
``(2) fail to apply for a salvage title when such an
application is required;
``(3) alter, forge, or counterfeit a certificate of title
(or an assignment thereof), a nonrepairable vehicle
certificate, a certificate verifying an anti-theft inspection
or an anti-theft and safety inspection, a decal affixed to a
passenger motor vehicle pursuant to section 33302(b)(10)(I),
or any disclosure made pursuant to section 33303;
``(4) falsify the results of, or provide false information
in the course of, an inspection conducted pursuant to section
33302(b)(7) or (8);
``(5) offer to sell any salvage vehicle or nonrepairable
vehicle as a rebuilt salvage vehicle;
``(6) fail to make any disclosure required by section
33303, except when the person lacks actual knowledge of the
status of the rebuilt salvage vehicle;
``(7) violate a regulation prescribed under this chapter;
or
``(8) conspire to commit any of the acts enumerated in
paragraph (1), (2), (3), (4), (5), (6), or (7).
``(b) Civil Penalty.--Any person who commits an unlawful
act as provided in subsection (a) of this section shall be
fined a civil penalty of up to $2,000 per offense. A separate
violation occurs for each passenger motor vehicle involved in
the violation.
``(c) Criminal Penalty.--Any person who commits an unlawful
act as provided in subsection (a) of this section shall be
fined up to $50,000 or sentenced to up to 3 years
imprisonment or both, per offense.
``Sec. 33307. Actions by States
``(a) In General.--Whenever an attorney general of any
State has reason to believe that the interests of the
residents of that State have been or are being threatened or
adversely affected because any person has violated or is
violating section 33302 or 33303, the State, as parens
patriae, may bring a civil action on behalf of its residents
in an appropriate district court of the United States or the
appropriate State court to enjoin such violation or to
enforce the civil penalties under section 33306 or enforce
the criminal penalties under section 33306.
``(b) Notice.--The State shall serve prior written notice
of any civil or criminal action under subsection (a) or
(e)(2) upon the Attorney General and provide the Attorney
General with a copy of its complaint, except that if it is
not feasible for the State to provide such prior notice, the
State shall serve such notice immediately upon instituting
such action. Upon receiving a notice respecting a civil or
criminal action, the Attorney General shall have the right--
``(1) to intervene in such action;
``(2) upon so intervening, to be heard on all matters
arising therein; and
``(3) to file petitions for appeal.
``(c) Construction.--For purposes of bringing any civil or
criminal action under subsection (a), nothing in this Act
shall prevent an attorney general from exercising the powers
conferred on the attorney general by the laws of such State
to conduct investigations or to administer oaths or
affirmations or to compel the attendance of witnesses or
the production of documentary and other evidence.
``(d) Venue; Service of Process.--Any civil or criminal
action brought under subsection (a) in a district court of
the United States may be brought in the district in which the
defendant is found, is an inhabitant, or transacts business
or wherever venue is proper under section 1391 of title 28,
United States Code. Process in such an action may be served
in any district in which the defendant is an inhabitant or in
which the defendant may be found.
``(e) Actions by State Officials.--
``(1) Nothing contained in this section shall prohibit an
attorney general of a State or other authorized State
official from proceeding in State court on the basis of an
alleged violation of any civil or criminal statute of such
State.
``(2) In addition to actions brought by an attorney general
of a State under subsection (a), such an action may be
brought by officers of such State who are authorized by the
State to bring actions in such State on behalf of its
residents.''.
(b) Conforming Amendment.--The table of chapters for part C
at the beginning of subtitle VI of title 49, United States
Code, is amended by inserting at the end the following new
item:
``333. AUTOMOBILE SAFETY AND TITLE DISCLOSURE REQUIREMENTS.....33301''.
SEC. 3. AMENDMENTS TO CHAPTER 305.
(a) Definitions.--
(1) Amend section 30501(4) of title 49, United States Code,
to read as follows:
``(4) `nonrepairable vehicle', `salvage vehicle', and
`rebuilt salvage vehicle' shall have the same meanings given
those terms in section 33301 of this title.''.
(2) Amend section 30501(5) of title 49, United States Code,
by striking ``junk automobiles'' and inserting
``nonrepairable vehicles''.
(3) Amend section 30501(8) by striking ``salvage
automobiles'' and inserting ``salvage vehicles''.
(4) Strike paragraph (7) of section 30501 of title 49,
United States Code, and renumber the succeeding sections
accordingly.
(b) National Motor Vehicle Title Information System.--
(1) Amend section 30502(d)(3) of title 49, United States
Code, to read as follows:
``(3) whether an automobile known to be titled in a
particular State is or has been a nonrepairable vehicle, a
rebuilt salvage vehicle, or a salvage vehicle;''.
(2) Amend section 30502(d)(5) of title 49, United States
Code, to read as follows:
``(5) whether an automobile bearing a known vehicle
identification number has been reported as a nonrepairable
vehicle, a rebuilt salvage vehicle, or a salvage vehicle
under section 30504 of this title.''.
(c) State Participation.--Amend section 30503 of title 49,
United States Code, to read as follows:
``Sec. 30503. State participation
``(a) State Information.--Each State receiving funds
appropriated under subsection (c) shall make titling
information maintained by that State available for use in
operating the National Motor Vehicle Title Information System
established or designated under section 30502 of this title.
``(b) Verification Checks.--Each State receiving funds
appropriated under subsection (c) shall establish a practice
of performing an instant title verification check before
issuing a certificate of title to an individual or entity
claiming to have purchased an automobile from an individual
or entity in another State. The check shall consist of--
``(1) communicating to the operator--
``(A) the vehicle identification number of the automobile
for which the certificate of title is sought;
[[Page H9911]]
``(B) the name of the State that issued the most recent
certificate of title for the automobile; and
``(C) the name of the individual or entity to whom the
certificate of title was issued; and
``(2) giving the operator an opportunity to communicate to
the participating State the results of a search of the
information.
``(c) Grants to States.--
``(1) In cooperation with the States and not later than
January 1, 1994, the Attorney General shall--
``(A) conduct a review of systems used by the States to
compile and maintain information about the titling of
automobiles; and
``(B) determine for each State the cost of making titling
information maintained by that State available to the
operator to meet the requirements of section 30502(d) of this
title.
``(2) The Attorney General may make reasonable and
necessary grants to participating States to be used in making
titling information maintained by those States available to
the operator.
``(d) Report to Congress.--Not later than October 1, 1998,
the Attorney General shall report to Congress on which States
have met the requirements of this section. If a State has not
met the requirements, the Attorney General shall describe the
impediments that have resulted in the State's failure to meet
the requirements.''.
(d) Reporting Requirements.--Section 30504 of title 49,
United States Code, is amended by striking ``junk automobiles
or salvage automobiles'' every place it appears and inserting
``nonrepairable vehicles, rebuilt salvage vehicles, or
salvage vehicles''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Virginia [Mr. Bliley] and the gentleman from Massachusetts [Mr. Markey]
each will control 20 minutes.
The Chair recognizes the gentleman from Virginia [Mr. Bliley].
General Leave
Mr. BLILEY. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
and include extraneous material on H.R. 1839.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Virginia?
There was no objection.
Mr. BLILEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, today I rise in strong support of H.R. 1839, the
National Salvage Motor Vehicle Consumer Protection Act. Ever since my
constituent Dick Strauss, a car dealer in Richmond, VA, first came to
me to describe this problem several years ago, I have consistently
supported the adoption of uniform definitions for salvage automobiles.
It is an important protection for consumers, dealers, and insurers
alike to prevent theft and to protect used car customers.
Frequently auto dealers will make every effort to ensure that the
used cars on their lots are of the highest quality. Unfortunately,
increasingly sophisticated scam artists are using the differences in
State automobile titling schemes to swindle both consumers and
legitimate businesspeople. We read about the problem in our local
papers, even in the comics. I am reminded of a recent series in the
Judge Parker comic strip about a young lady who discovered she had
unknowingly purchased a vehicle that had been totaled in an accident.
We have an obligation to protect real consumers from the same fate.
H.R. 1839 goes a long way toward achieving that goal. Supported by a
coalition of business groups and the States, this bill implements many
of the recommendations of a national panel of experts representing the
States, law enforcement and business asking for Federal legislation to
establish uniform definitions and procedures for the titling and
registration of vehicles totaled by accident or flood. When enacted,
H.R. 1839 will ensure that consumers have better access to information
about the cars that they intend to purchase and that honest dealers can
sell used cars without the worry that they may unwittingly be selling a
stolen or totaled car.
The bill before the House today makes several changes to the bill
reported by the Committee on Commerce. At the request of the States and
the Committee on the Judiciary, we reexamined a provision in the
committee reported bill which tied participation in the National Motor
Vehicle Title Information System to the adoption of the standards in
H.R. 1839. After extensive discussions with State motor vehicle
administrators and others, we agreed that an approach using the
incentive of an existing Federal grant program would address the
concerns of State motor vehicle and law enforcement officials while at
the same time significantly improving participation in the program.
The bill as amended eliminates the prohibition on participation in
the National Motor Vehicle Title Information System which concerns
State and Federal officials. However, the bill stipulates that if a
State receives grant funding to upgrade its motor vehicle titling
systems, it must either adopt the standards and procedures described in
H.R. 1839 or print a notice on the face of each of its titles that it
does not comply with the consumer protections required by this
legislation. We believe that this change will encourage even more
States to participate than CBO originally projected.
The legislation before the House today also improves the definition
of ``flood vehicle'' provided in the bill as introduced. After the
Midwest floods over the past few years, it was clear that a more
precise definition of this term is needed. I was happy to see that the
salvage operators, insurers, and automobile dealers worked together to
address this problem.
Mr. Speaker, H.R. 1839 is legislation which protects consumers by
striking a balance. It vastly improves the status quo by giving
consumers, dealers and State officials notice about the status of
vehicles that have been totaled by accident or flood. Today the
patchwork of 50 different State laws ensures that no State can
adequately protect its own citizens. This bill changes that situation.
For that reason I strongly support its passage.
In closing, I want to recognize the gentleman from Washington [Mr.
White] for all the hard work and his willingness to try to work with
the interested groups for a solution to the problem. I would also like
to thank the gentleman from Illinois [Mr. Hyde] and the gentleman from
Florida [Mr. McCollum] for their willingness to work with the Committee
on Commerce to bring this legislation forward. I urge all my colleagues
to support the bill.
Mr. Speaker, I reserve the balance of my time.
Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise with significant concerns about the bill before
us this afternoon. This legislation is opposed by the Center for Auto
Safety, the Consumer Federation of America, the Consumers for Auto
Reliability and Safety, U.S. PIRG, the National Association of Consumer
Advocates, Public Citizen and the Consumers Union.
I believe the author of this legislation commenced with very noble
intentions, but was forced into a rather elliptical legislative scheme
to induce State actions for fear of triggering an unfunded mandates
claim. As a result, this legislation ultimately does not require States
to do much of anything to protect consumer safety. There are no
mandatory safety inspections in the bill. Safety inspections are
optional.
Moreover, this bill may unwittingly lead to greater consumer
confusion about the condition of used cars because States will
undoubtedly have various requirements for consumer disclosure from
coast to coast.
In addition, the bill may force States to rewrite better consumer
protection laws in which the terms ``rebuilt salvage vehicle'' or
``salvage vehicle'' now appear. It would prevent States from using a
damage threshold of under 80 percent, which is higher than a number of
States' laws, and higher than the recommendations from the Nation's
attorneys general and a special task force that delved into these
issues in depth.
Second, I continue to have concerns that the definition in the bill
of a ``late model vehicle'' is overly narrow. This legislation would
exempt sellers of cars over 6 model years old and worth less than
$7,500 from having to disclose any accident damage. My car, my
beautiful Buick Park Avenue, is 7 years old. It only has 42,000 miles
on it. If I had a major accident, I would not have to disclose that,
even though I could represent that it only had 42,000 miles, looked
like it was in good condition. The average car on the road these days
is close to 8 years old. The Department of Transportation tells us
that. So we are potentially exempting a very large fleet of automobiles
from the provisions in the bill.
[[Page H9912]]
Third, the legislation does not include a private right of action for
aggrieved consumers. I believe that a private right of action ought to
be included in the bill so that individuals can act without having to
wait for a State attorney general to take action.
Again, this legislation is opposed by the Center for Auto Safety, the
Consumer Federation of America, and all the rest of the groups that I
mentioned. I would hope that before the legislative process is over,
the bill will be adjusted so that consumer groups will support what is
ostensibly being done on their behalf.
I do believe that we will still have an opportunity in the other body
and in conference with the Senate to further improve the bill. I want
to thank the gentleman from Virginia [Mr. Bliley] for the way in which
he has conducted proceedings on this bill, and I want to thank the
gentleman from Louisiana [Mr. Tauzin] and the gentleman from Washington
[Mr. White] for their willingness to work with people on this side of
the aisle and to listen to our concerns and those of national consumer
organizations.
The gentleman from Washington [Mr. White] has made some adjustments
in this legislation, and I thank him for that, but I continue to feel
that this bill needs further adjustment and hope that we can continue
to improve upon the language before the House this afternoon or when we
reach conference committee with the Senate.
Mr. Speaker, I reserve the balance of my time.
Mr. BLILEY. Mr. Speaker, I yield such time as he may consume to the
gentleman from Washington [Mr. White], a member of the committee.
{time} 1445
Mr. WHITE. Mr. Speaker, I thank the gentleman from Virginia for his
excellent work in helping on this bill and yielding me this time today.
Mr. Speaker, we have a bill here that in the last Congress had well
over 200 cosponsors. In this Congress, we also have numerous cosponsors
going all the way from the minority leader, the gentleman from Missouri
[Mr. Gephardt] to many, many Republicans. That usually means one or two
things; either it is a bill that is a really good idea and a lot of
people support it, or it is a bill that does not do very much so people
do not have to worry about it too much. I would respectfully suggest
that in this case we are in the former situation, and I think all my
colleagues should think very seriously about passing this bill.
This bill addresses a very simple problem, the fact that consumers
now do not know, when they buy a used car, whether the car has been
damaged and totaled and then reconstructed or not, and that can lead to
a number of safety problems. The problem is, we do not have a uniform
system among our States to title these vehicles, and the bill is
designed to solve that problem.
Although it does seem like a simple problem, nothing is never quite
as simple as we think when we start drafting a Federal bill, and we
have spent 3 years, Mr. Speaker, talking to every single group we could
find, from the State motor vehicle departments, the consumer groups,
auto dealers, everybody we could come up with, to try to come up with a
bill that solves this problem in a reasonable way, and I think the bill
we have does that in a very good way.
I would say to my friend from Massachusetts that there are some
groups who oppose this bill, but there are far more groups who support
the bill, groups ranging from the motor vehicle administrators
representing all the State and motor vehicle departments, certain
consumer groups, new car dealers, and most of the people who have been
involved in this process right from the beginning.
I would also say that while there are some groups who support it,
many of them, the groups who oppose this bill, do so because it omits a
private right of action, does not allow people to sue under a Federal
statute in order to enforce certain parts of the bill. That is exactly
what we tried to avoid in drafting this bill, was a process that would
lead to a lot of litigation. We would like to have a simple rule that
can be easily administered without a whole bunch of Federal preemptions
of States rights.
I would also say to the gentleman that we have spent hours and hours
and hours trying to figure out a definition that achieves a balance
between protecting as many people as possible but not being absurd at
the end of the day.
The gentleman may have an automobile that is more than 6 years old. I
have to tell him that my automobile is 13 years old. My automobile has
120,000 miles on it, and I can tell my colleague that if I have a flat
tire on my automobile, the value of the automobile is such that it
might well trigger the 80-percent threshold for saying that my car has
been totaled. And what we have tried to do in coming up with a
definition is find a balance where we protect as many cars as possible
but we do not bring into the definition of a car that has been totaled
cars as old as mine and as worthless as mine that still work but might
be considered totaled because they have a flat tire.
So we really have tried very hard to address the gentleman's
concerns. I would say that we would like to continue to try to address
the gentleman's concerns, and if this bill does pass today, as we hope,
we would be happy to talk to him in the conference and see if we cannot
make some additional adjustments that move things in the right
direction, but we have worked very hard on this bill with all the
groups who are interested, and I think it is time to pass it in this
House today.
Mr. MARKEY. Mr. Speaker, I yield myself as much time as I may
consume.
Mr. Speaker, again, I want to compliment the gentleman from
Washington State, and the gentleman from Virginia, and the gentleman
from Louisiana for their work on this legislation. It is a complicated
piece of legislation, and where we draw the line is, of course, one
that is, as my colleagues know, a judgment that is quite subjective.
The bill that is before us today exempts sellers of cars where the
automobile is 6 years, 6 model years, or older and worth less than
$7,500. Now that is just a judgment call, but we are told that the
average, the average automobile in the United States is 8 years old or
older. So if the average car is 8 years old and we are picking 6 years,
what are we talking about?
So what I did was, I had Kelly's Blue Book site on the Internet
pulled up so we can take a look at some of the cars that one might be
able to purchase that would not be covered, one would not get any
warning that the car had had serious damage to it. Here are just a few
of the 1989 model cars that the bill exempts in the Blue book:
A 1989 Chrysler Le Baron premium convertible 2-D, 100,000 miles;
1989; one could get it for $1,310; but they do not have to say if it
has had a major collision, they do not have to give any information
about it.
How about a 1989--would my colleague be interested in this: A 1989
Oldsmobile Cutlass Supreme coupe, 110,000 miles, cruise control, AM/FM
stereo cassette, compact disk, CD changer, premium sound, sliding sun
roof, and get it for 1,900 bucks? But my colleague is not going to get
any information about whether or not it was in a crash.
How about this one? See if my colleague is interested. A 1989 Alfa
Romeo Spyder convertible, compact disk, CD changer, premium sound, air-
conditioning, power steering, the works, 4,470 bucks. 1989. But it is
exempt; they do not have to pass on this information about whether or
not it had a major accident.
Now how about this one if my colleague is not interested in the
others? A 1989 Porsche 944 turbo coupe with air-conditioning, power
steering, power windows, power door locks, tilt wheel, cruise control,
premium sound, sliding sun roof, alloy rear wheels, excellent trade-in
value, 7,455 bucks. This is a 1989 Porsche, no information about
whether or not it had accidents.
I am almost done. As my colleague knows, I have got to go through the
entire inventory in the store, and then I will be more than willing to
yield to the gentleman.
Mr. WHITE. I have got my eye on one right now. I would be happy to
buy it from the gentleman.
Mr. MARKEY. All right. Well, listen to this one. This might have been
something that has been in the back of my colleague's mind over the
years. I bet we all had a little bit of a fantasy
[[Page H9913]]
about this car, a 1989 Jaguar XJS convertible, beautiful car, really a
beautiful car, air-conditioning, power steering, power windows, power
door locks, tilt wheel, AM/FM cassette, leather, alloy wheels, 7,125
bucks, 1989, 8 years old, the average age of a car in the United
States.
I think that we at least should have the average car. Now we all know
that an automobile that is older than this, as my colleagues know, is
not going to be worth, on average, 7,500 bucks. It is tough to find a
car that is 8, 9, 10 years old that is worth 7,500 bucks, but yet that
is the average age of the cars on the road, and millions and millions
of Americans every single year purchase a car in that age category
because they cannot afford to buy a brand new car. Are not they
entitled to some minimal amount of information about whether or not the
previous owner had a major crack-up with the car?
Mr. Speaker, I yield to the gentleman from Washington [Mr. White].
Mr. WHITE. Mr. Speaker, I appreciate it very much, and I know it is a
mistake to buy a used car from the gentleman from Massachusetts, but,
nevertheless, I am intrigued by the Oldsmobile that he talked about,
the 1989 Oldsmobile, I believe the gentleman said it had a sun roof,
for $1,900; is that right?
Mr. MARKEY. That is correct.
Mr. WHITE. And if I bought that car from the gentleman, and the sun
roof had a malfunction, it could easily cost me $1,000, $1,300, maybe
even $1,600 to fix that sun roof, and if it did cost me $1,600 to fix
that sun roof, the bill would be considered totaled under the 80
percent definition, which is why it would not make sense to include
that car in this particular bill.
The whole thing is about coming up with a balance. We do not want a
situation where a perfectly serviceable car, no structural damage, has
a damaged sun roof and then all of a sudden has to be classified as a
salvaged vehicle under this title, and that is the balance we are
trying to strike. I know the gentleman wants to strike the balance too.
I know he suggested that we use a definition of 8 years. We actually
have 6 model years, which is actually 7 years, so we are very close.
Mr. MARKEY. If I may reclaim my time, what if, rather than the case
the gentleman singles out, what if it was the axle of the car that was
damaged? What if it was that the steering wheel, in fact, had been
coming off in the hands of the previous owner? What if, in fact, the
engine on a frequent basis had been exploding into flames in the
driveway of the previous owner and he had been trying to unload it on
some unsuspecting consumer looking for a bargain?
So, yes, the sun roof answer is an interesting one and kind of a cute
one, but it does not get to the core of our concern, which is the
safety-related issues that could be covered up.
Mr. Speaker, I yield to the gentleman from Washington [Mr. White].
Mr. WHITE. All I want to point out is, the gentleman is absolutely
right, if a car has an axle problem, that is something someone would
like to know about, but under his bill a car, or his suggestion, a car
that is older than 8 years, one still would not know about the axle.
So it is all a question of just where we draw the line to try to
capture the most cars in a reasonable way.
Mr. MARKEY. Let me reclaim my time one more time to say I agree with
the gentleman, it is where we draw the line. But if the average age of
the average automobile on the American highway is 8 years of age, then
at least let us give that protection. We can decide that in 10 years,
in 12 years it is caveat emptor, but, my God, most of us, when and if
we buy a used car, we are going to be buying it in the sixth to eighth
year category. So that is the only point I am trying to make here.
The gentleman has moved the bill in the correct direction. I just
think it stops short of capturing that group of automobiles which
really is the most desirable used car that is being sold in America but
with representations that may not fully reflect the safety of the car.
Mr. Speaker, I reserve the balance of my time at this point.
Mr. BLILEY. Mr. Speaker, I do not have any more speakers, so I would
reserve the balance of my time.
Mr. MARKEY. May I ask, Mr. Speaker, how much time I have remaining?
The SPEAKER pro tempore [Mr. Packard]. The gentleman from
Massachusetts has 9 minutes remaining.
Mr. MARKEY. Mr. Speaker, I yield 5 minutes to the gentleman from
Pennsylvania [Mr. Klink].
Mr. KLINK. Mr. Speaker, I thank the gentleman for yielding this time
to me. He is gracious. I may not use all 5 minutes, and I would be
happy to yield that time back if I do not.
I just want to say, Mr. Speaker, along with my colleague from
Massachusetts, I rise today to inform my colleagues that, in fact, this
bill might not be what they think it is, and I want to first of all
start off by giving great praise to my colleague, the gentleman from
Washington [Mr. White], who has worked very hard on this piece of
legislation, and the fact that we disagree on this piece of legislation
does not mean that he has not worked with all great intention and he
has moved the bill the right way, but I think that if this bill is to
pass, that we are going to be making an already bad situation all the
more confusing for the consumers across this Nation.
And I would agree that the national uniformity for auto salvage laws
is a very good idea. In fact, VIN switching and title washing are
definitely a problem that national uniformity would help. But as it has
developed, this bill does not provide that uniformity.
As introduced, H.R. 1839 did require national uniformity even though,
and I may have disagreed with how it would have preempted the State
laws, at least it would have created a uniform system so that consumers
would know exactly what it was they were buying, regardless of the
State that they lived in.
But, Mr. Speaker, I have to point out to my colleagues that the bill
that they will be voting on today, as changed by the manager's
amendment, will not get us uniformity, and in fact it now runs the risk
of being worse than us doing nothing at all.
In 1992, Members of Congress passed the Anti-Car Theft Act which,
among other things, made carjacking a Federal crime. Also included in
that act was the authorization of the National Motor Vehicle Title
Information System to be a national data base of information on State
and motor vehicle titles that would allow States to do an instant check
on vehicles titled in another State.
The way this bill works is to require States that want to participate
in the National Motor Vehicle Title Information System to either adopt
the new Federal standards or include a new notice on the certificate of
title that discloses that their State does not comply with the new
Federal standards or stay exactly the way they are right now and not
participate in the National Motor Vehicle Title Information System.
So, again, Mr. Speaker, I want to point out that making the adoption
of the new Federal standards completely optional directly contradicts
the bill's intended purpose to establish national uniformity and
definitions and procedures regarding the titling of severely damaged
motor vehicles.
If this act passes, we will have three kinds of States; we will have
States that can opt into the Federal standards and can take Federal
grant money to participate in a yet to be developed national motor
vehicle titling information system at the cost of having their salvage
laws preempted by the national law. If a State does not want to do
that, they would fall perhaps in the second category, and that is
States that opt out of the Federal standards but they still want to
take Federal grant money to participate in the national motor vehicle
titling information system, but they would then decide to disclose the
fact that they do not comply with Federal standards on each certificate
of title that they issue. Or we could have a third kind of State,
States that completely opt out and keep their current law.
Now I am in favor of national uniformity, but, as my colleagues can
see, we have some States adopting a Federal standard, some States that
have to disclose that they are not going to adopt the Federal standards
but that they still want to take Federal grant money to participate in
a national motor vehicle titling information system, and some States
that could say the heck with it all, we are going to stand pat on what
we are doing now, we are going to keep our local standards, our current
State law, that afford more
[[Page H9914]]
disclosure to consumers than the proposed Federal standard.
{time} 1500
Now, I have to say again, this does not help us to achieve the stated
goal of uniformity. In fact, I think it is going to worsen the current
hodgepodge of State laws, while potentially undermining the
effectiveness of the national motor vehicle tight link information
system at the same time. In addition to having various State laws, we
are now going to add to that another level of Federal law that
consumers will assume is national uniformity, but, in fact, will not
be.
Mr. Speaker, I remain very happy to work with my colleagues if this
bill does not pass so that we can achieve our goals, but as of right
now this is a bill that badly needs to be improved.
Mr. BLILEY. Mr. Speaker, I yield such time as he may consume to the
gentleman from Washington [Mr. White].
Mr. WHITE. Mr. Speaker, I thank the gentleman for yielding me this
time.
I just wanted to say in response to the gentleman from Pennsylvania,
I appreciate his work on this bill too, and I know he has worked with
us long and hard in a sincere effort in trying to improve this bill.
The same is certainly true for the gentleman from Massachusetts.
If I could characterize what the gentleman from Pennsylvania has
said, he is essentially saying this bill is not quite perfect, it does
not quite establish a national uniform standard, and I would say to him
that that is essentially true. It would be nice to have a uniform
national standard, but we also have a Constitution that we have to deal
with here and we can only do so much as the Constitution permits us.
I think it would be a mistake to make the perfect bill here be the
enemy of a good bill. We have a good bill that takes us a long way in
the right direction. We have heard from most of the States, and our
sense is that virtually all of them will participate in this program.
So I think it is a good bill and one that is worth voting for.
Mr. MARKEY. Mr. Speaker, I have no remaining speakers on my side, so
I would urge a ``no'' vote on this bill.
Mr. Speaker, I yield back the balance of my time.
Mr. BLILEY. Mr. Speaker, I yield myself such time as I may consume
just to say this, and I will be very brief. The National Automobile
Dealers support this bill; the American Association of Motor Vehicle
Administrators, and a wide array of associations, industries, and law
enforcement groups all support this bill.
Yes, I would like to have a national standard, but because of the
Supreme Court Brady decision, we could not do that. I would also like
to point out, there were some statements made today that perhaps 1839
would overrule existing State safety inspections. That is not the case.
Mr. Speaker, 1839 specifically leaves intact existing State safety
inspections of rebuilt and salvage vehicles. Mr. Speaker, I urge the
adoption of the legislation.
Mr. POMEROY. Mr. Speaker, I rise today in support of H.R. 1839, the
National Salvage Motor Vehicle Consumer Protection Act of 1997. The
bill would remedy a situation where salvage vehicles that have been
rebuilt are sold as undamaged used cars. This fraud occurs at the
expense of $4 billion to consumers and business people each year.
Currently, there is no uniformity in how States define and report
whether a vehicle has been damaged and if the level of damage warrants
the vehicle to be deemed salvage. Some States require that this
information appear on vehicle titles. However, even the States that
require this disclosure record the information differently on vehicle
titles. These discrepancies leave the door open for consumers to be
defrauded. With each State having different guidelines, a car may be
considered junked in one State and yet could cross State lines and
obtain a clear title in another State. This problem becomes an issue of
consumer rights. Car owners and the auto dealers who sell the cars have
the right to know the history of their cars, and the rest of the public
has the right to know that cars on the road are safe.
Under H.R. 1839, States involved in uniform titling and registering
of salvage, rebuilt salvage and nonrepairable vehicles would have
access to a Federal computer system that would assist in locating
information about vehicle documents issued by other States. In an age
when we attempt to track vehicles on Mars, why wouldn't we track our
vehicles from one State to the next under a uniform system of titling
procedures and definitions? It makes sense to use technology to guard
consumers against theft and fraud of automobiles.
This legislation would set a definition of salvage vehicle to mean
any damage that exceeds 80 percent of the retail value on a car up to 7
years old or newer. Once a car is designated as such, the car owner
must get a salvage title. This sets the wheels in motion to ensure that
a salvaged vehicle in North Dakota is a salvaged vehicle in New Mexico.
You may hear the argument that States aren't able to set their own
guidelines under this bill. As a former State insurance commissioner, I
firmly believe in States rights and the need for States to tailor laws
for their respective residents. But this is a case where uniformity
across State lines improves the overall safety of people in communities
across the country.
The Motor Vehicle Titling, Registration and Salvage Advisory
Committee, known simply as the Salvage Committee, that was formed as a
result of the Anti-Car Theft Act of 1992 recommended many of the
provisions of H.R. 1839. These provisions result in better information
for consumers and dealers, and increased safety for the general public.
With that in mind, I urge the Members to support the bill.
Mr. BLILEY. Mr. Speaker, having no further requests for time, I yield
back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Virginia [Mr. Bliley] that the House suspend the rules
and pass the bill, H.R. 1839, as amended.
The question was taken.
Mr. MARKEY. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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