[Congressional Record Volume 144, Number 136 (Friday, October 2, 1998)]
[Senate]
[Pages S11353-S11357]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 NATIONAL MOTOR VEHICLE SAFETY, ANTI-THEFT, TITLE REFORM, AND CONSUMER 
                         PROTECTION ACT OF 1998

                                 ______
                                 

                       GORTON AMENDMENT NO. 3683

  Mr. SESSIONS (for Mr. Gorton) proposed an amendment to the bill (S. 
852) to establish nationally uniform requirements regarding the titling 
and registration of salvage, non-repairable, and rebuilt vehicles; as 
follows:

       Strike out all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Salvage Motor 
     Vehicle Consumer Protection Act of 1998''.

     SEC. 2. MOTOR VEHICLE TITLING AND DISCLOSURE REQUIREMENTS.

       (a) Amendment to Title 49, United States Code.--Subtitle VI 
     of title 49, United States Code, is amended by inserting a 
     new chapter at the end:

   ``CHAPTER 333--AUTOMOBILE SAFETY AND TITLE DISCLOSURE REQUIREMENTS

``Sec.
``33301. Definitions.
``33302. Passenger motor vehicle titling.
``33303. Disclosure and label requirements on transfer of rebuilt 
              salvage vehicles.
``33304. Report on funding.
``33305. Effect on State law.
``33306. Civil penalties.
``33307. Actions by States.

     ``Sec. 33301. Definitions

       ``(A) Definitions.--For the purposes of this chapter:
       ``(1) Passenger motor vehicle.--The term `passenger motor 
     vehicle' has the same meaning given such term by section 
     32101(10), except, notwithstanding section 32101(9), it 
     includes a multi-purpose passenger vehicle (constructed on a 
     truck chassis or with special features for occasional off-
     road operation), a truck, other than a truck referred to in 
     section 32101(10)(B), and a pickup truck when that vehicle or 
     truck is rated by the manufacturer of such vehicle or truck 
     at not more than 10,000 pounds gross vehicle weight, and it 
     only includes a vehicle manufactured primarily for use on 
     public streets, roads and highways.
       ``(2) 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 75 percent of the retail value of the 
     passenger motor vehicle;
       ``(B) is a later 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.

     Notwithstanding any other provision of this chapter, a State 
     may use the term `older model salvage vehicle' to designate a 
     wrecked, destroyed, or damaged vehicle that does not meet 
     the definition of a late model vehicle in paragraph (9). 
     If a State, as of the date of enactment of the National 
     Salvage Motor Vehicle Consumer Protection Act of 1998, has 
     established a salvage definition at a lesser percentage 
     than provided under subparagraph (A), then that definition 
     shall not be considered to be inconsistent with the 
     provisions of this chapter.
       ``(3) Salvage title.--The term `salvage title' means a 
     passenger motor vehicle ownership document issued by the 
     State to the owner of a salvage vehicle. A salvage title 
     shall be conspicuously labeled with the word `salvage' across 
     the front.
       ``(4) Rebuilt salvage vehicle.--The term `rebuilt salvage 
     vehicle' means--
       ``(A) any passenger motor vehicle which was previously 
     issued a salvage title, has passed State anti-theft 
     inspection, has been issued a certificate indicating that the 
     passenger motor vehicle has passed the required anti-theft 
     inspection, has passed the State safety inspection in those 
     States requiring a safety inspection pursuant to section 
     33302(b)(8), has been issued a certificate indicating that 
     the passenger motor vehicle has passed the required safety 
     inspection in those States requiring such a safety inspection 
     pursuant to section 33302(b)(8), and has a decal stating 
     `Rebuilt Salvage Vehicle--Anti-theft and Safety Inspections 
     Passed' affixed to the driver's door jamb; or
       ``(B) any passenger motor vehicle which was previously 
     issued a salvage title, has passed a State anti-theft 
     inspection, has been issued a certificate indicating that the 
     passenger motor vehicle has passed the required anti-theft 
     inspection, and has, affixed to the driver's door jamb, a 
     decal stating `Rebuilt Salvage Vehicle--Anti-theft Inspection 
     Passed/No Safety Inspection Pursuant to National Criteria' in 
     those States not requiring a safety inspection pursuant to 
     section 33302(b)(8).
       ``(5) Rebuilt salvage title.--The term `rebuilt salvage 
     title' means the passenger motor vehicle ownership document 
     issued by the State to the owner of a rebuilt salvage 
     vehicle. A rebuilt salvage title shall be conspicuously 
     labeled either with the words `Rebuilt Salvage Vehicle--Anti-
     theft and Safety Inspections Passed' or `Rebuilt Salvage 
     Vehicle--Anti-theft Inspection Passed/No Safety Inspection 
     Pursuant to National Criteria,' as appropriate, across the 
     front.
       ``(6) Nonrepairable vehicle.--The term `nonrepairable 
     vehicle' means any passenger motor vehicle, other than a 
     flood vehicle, which is incapable of safe operation for use 
     on roads or highways and which has no resale value except as 
     a source of parts or scrap only or which the owner 
     irreversibly designates as a source of parts or scrap. Such 
     passenger motor vehicle shall be issued a nonrepairable 
     vehicle certificate and shall never again be titled or 
     registered.
       ``(7) Nonrepairable vehicle certificate.--The term 
     `nonrepairable vehicle certificate' means a passenger motor 
     vehicle ownership document issued by the State to the owner 
     of a nonrepairable vehicle. A nonrepairable vehicle 
     certificate shall be conspicuously labeled with the word 
     `Nonrepairable' across the front.
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of Transportation.
       ``(9) Late model vehicle.--The term `Late Model Vehicle' 
     means any passenger motor vehicle which--
       ``(A) has a manufacturer's model year designation of or 
     later than the year in which the vehicle was wrecked, 
     destroyed, or damaged, or any of the six preceding years; or
       ``(B) has a retail value of more than $7,500.
       The Secretary shall adjust such retail value on an annual 
     basis in accordance with changes in the consumer price index.
       ``(10) Retail value.--The term `retail value' means the 
     actual cash value, fair market value, or retail value of a 
     passenger motor vehicle as--
       ``(A) set forth in a current edition of any nationally 
     recognized compilation (to include automated databases) of 
     retail values; or
       ``(B) determined pursuant to a market survey of comparable 
     vehicles with regard to condition and equipment.
       ``(11) Cost of repairs.--The term `cost of repairs' means 
     the estimated retail cost of parts needed to repair the 
     vehicle or, if the vehicle has been repaired, the actual 
     retail cost of the parts used in the repair, and the cost of 
     labor computed by using the hourly labor rate and time 
     allocations that are reasonable and customary in the 
     automobile repair industry in the community where the repairs 
     are to be performed.
       ``(12) Flood vehicle.--
       ``(A) In general.--The term `flood vehicle' means any 
     passenger motor vehicle that--
       ``(i) has been acquired by an insurance company as part of 
     a damage settlement due to water damage; or
       ``(ii) has been submerged in water to the point that rising 
     water has reached over the door sill, has entered the 
     passenger or trunk compartment, and has exposed any 
     electrical, computerized, or mechanical component to water, 
     except where a passenger motor vehicle which, pursuant to an 
     inspection conducted by an insurance adjuster or estimator, a 
     motor vehicle repairer or motor

[[Page S11354]]

     vehicle dealer in accordance with inspection guidelines or 
     procedures established by the Secretary or the State, is 
     determined--
       ``(I) to have no electrical, computerized or mechanical 
     components which were damaged by water; or
       ``(II) to have one or more electrical, computerized or 
     mechanical components which were damaged by water and where 
     all such damaged components have been repaired or replaced.
       ``(B) Inspection not required for all flood vehicles.--No 
     inspection under subparagraph (A) shall be required unless 
     the owner or insurer of the passenger motor vehicle is 
     seeking to avoid a brand of `Flood' pursuant to this chapter.
       ``(C) Effect of disclosure.--Disclosing a passenger motor 
     vehicle's status as a flood vehicle or conducting an 
     inspection pursuant to subparagraph (A) shall not impose on 
     any person any liability for damage to (except in the case of 
     damage caused by the inspector at the time of the inspection) 
     or reduced value of a passenger motor vehicle.
       ``(b) Construction.--The definitions set forth in 
     subsection (a) only apply to vehicles in a State which are 
     wrecked, destroyed, or otherwise damaged on or after the date 
     on which such State complies with the requirements of this 
     chapter and the rule promulgated pursuant to section 
     33302(b).

     ``Sec. 33302. Passenger motor vehicle titling

       ``(a) Carry-Forward of State Information.--For any 
     passenger motor vehicle, the ownership of which is 
     transferred on or after the date that is 1 year after the 
     date of the enactment of the National Salvage Motor Vehicle 
     Consumer Protection Act of 1998, each State receiving funds, 
     either directly or indirectly, appropriated under section 
     30503(c) of this title after the date of the enactment of 
     that Act, in licensing such vehicle for use, shall disclose 
     in writing on the certificate of title whenever records 
     readily accessible to the State indicate that the passenger 
     motor vehicle was previously issued a title that bore any 
     word or symbol signifying that the vehicle was `salvage', 
     `older model salvage', `unrebuildable', `parts only', 
     `scrap', `junk', `nonrepairable', `reconstructed', `rebuilt', 
     or any other symbol or word of like kind, or that it has been 
     damaged by flood, and the name of the State that issued that 
     title.
       ``(b) Nationally Uniform Title Standards and Control 
     Methods.--Not later than 18 months after the date of the 
     enactment of the National Salvage Motor Vehicle Consumer 
     Protection Act of 1998, the Secretary shall by rule require 
     each State receiving funds, either directly or indirectly, 
     appropriated under section 30503(c) of this title after the 
     date of the enactment of that Act, in licensing any passenger 
     motor vehicle where ownership of such passenger motor vehicle 
     is transferred more than 2 years after publication of such 
     final rule, to apply uniform standards, procedures, and 
     methods for the issuance and control of titles for motor 
     vehicles and for information to be contained on such titles. 
     Such titling standards, control procedures, methods, and 
     information shall include the following requirements:
       ``(1) A State shall conspicuously indicate on the face of 
     the title or certificate for a passenger motor vehicle, as 
     applicable, if the passenger motor vehicle is a salvage 
     vehicle, a nonrepairable vehicle, a rebuilt salvage vehicle, 
     or a flood vehicle.
       ``(2) Such information concerning a passenger motor 
     vehicle's status shall be conveyed on any subsequent title, 
     including a duplicate or replacement title, for the passenger 
     motor vehicle issued by the original titling State or any 
     other State.
       ``(3) The title documents, the certificates, and decals 
     required by section 33301(4), and the issuing system shall 
     meet security standards minimizing the opportunities for 
     fraud.
       ``(4) The certificate of title shall include the passenger 
     motor vehicle make, model, body type, year, odometer 
     disclosure, and vehicle identification number.
       ``(5) The title documents shall maintain a uniform layout, 
     to be established in consultation with the States or an 
     organization representing them.
       ``(6) A passenger motor vehicle designated as nonrepairable 
     shall be issued a nonrepairable vehicle certificate and shall 
     not be retitled.
       ``(7) No rebuilt salvage title shall be issued to a salvage 
     vehicle unless, after the salvage vehicle is repaired or 
     rebuilt, it complies with the requirements for a rebuilt 
     salvage vehicle pursuant to section 33301(4). Any State 
     inspection program operating under this paragraph shall be 
     subject to continuing review by and approval of the 
     Secretary. Any such anti-theft inspection program shall 
     include the following:
       ``(A) A requirement that the owner of any passenger motor 
     vehicle submitting such vehicle for an anti-theft inspection 
     provide a completed document identifying the vehicle's damage 
     prior to being repaired, a list of replacement parts used to 
     repair the vehicle, and proof of ownership of such 
     replacement parts, as may be evidenced by bills of sale, 
     invoices, or, if such documents are not available, other 
     proof of ownership for the replacement parts. The owner 
     shall also include an affirmation that the information in 
     the declaration is complete and accurate and that, to the 
     knowledge of the declarant, no stolen parts were used 
     during the rebuilding.
       ``(B) A requirement to inspect the passenger motor vehicle 
     or any major part or any major replacement part required to 
     be marked under section 33102 for signs of such mark or 
     vehicle identification number being illegally altered, 
     defaced, or falsified. Any such passenger motor vehicle or 
     any such part having a mark or vehicle identification number 
     that has been illegally altered, defaced, or falsified, and 
     that cannot be identified as having been legally obtained 
     (through bills of sale, invoices, or other ownership 
     documentation), shall be contraband and subject to seizure. 
     The Secretary, in consultation with the Attorney General, 
     shall, as part of the rule required by this section, 
     establish procedures for dealing with those parts whose mark 
     or vehicle identification number is normally removed during 
     industry accepted remanufacturing or rebuilding practices, 
     which parts shall be deemed identified for purposes of this 
     section if they bear a conspicuous mark of a type, and 
     applied in such a manner, as designated by the Secretary, 
     indicating that they have been rebuilt or remanufactured. 
     With respect to any vehicle part, the Secretary's rule, as 
     required by this section, shall acknowledge that a mark or 
     vehicle identification number on such part may be legally 
     removed or altered as provided for in section 511 of title 
     18, United States Code, and shall direct inspectors to adopt 
     such procedures as may be necessary to prevent the seizure of 
     a part from which the mark or vehicle identification number 
     has been legally removed or altered.
       ``(8) Any safety inspection for a rebuilt salvage vehicle 
     performed pursuant to this chapter shall be performed in 
     accordance with nationally uniform safety inspection criteria 
     established by the Secretary. A State may determine whether 
     to conduct such safety inspection itself, contract with one 
     or more third parties, or permit self-inspection by a person 
     licensed by such State in an automotive-related business, all 
     subject to criteria promulgated by the Secretary hereunder. 
     Any State inspection program operating under this paragraph 
     shall be subject to continuing review by and approval of the 
     Secretary. A State requiring such safety inspection may 
     require the payment of a fee for the privilege of such 
     inspection or the processing thereof.
       ``(9) No duplicate or replacement title shall be issued 
     unless the word `duplicate' is clearly marked on the face 
     thereof and unless the procedures for such issuance are 
     substantially consistent with Recommendation three of the 
     Motor Vehicle Titling, Registration and Salvage Advisory 
     Committee.
       ``(10) A State shall employ the following titling and 
     control methods:
       ``(A) If an insurance company is not involved in a damage 
     settlement involving a salvage vehicle or a nonrepairable 
     vehicle, the passenger motor vehicle owner shall apply for a 
     salvage title or nonrepairable vehicle certificate, whichever 
     is applicable, before the passenger motor vehicle is repaired 
     or the ownership of the passenger motor vehicle is 
     transferred, but in any event within 30 days after the 
     passenger motor vehicle is damaged.
       ``(B) If an insurance company, pursuant to a damage 
     settlement, acquires ownership of a passenger motor vehicle 
     that has incurred damage requiring the vehicle to be titled 
     as a salvage vehicle or nonrepairable vehicle, the insurance 
     company or salvage facility or other agent on its behalf 
     shall apply for a salvage title or nonrepairable vehicle 
     certificate within 30 days after the title is properly 
     assigned by the owner to the insurance company and delivered 
     to the insurance company or salvage facility or other agent 
     on its behalf with all liens released.
       ``(C) If an insurance company does not assume ownership of 
     an insured's or claimant's passenger motor vehicle that has 
     incurred damage requiring the vehicle to be titled as a 
     salvage vehicle or nonrepairable vehicle, the insurance 
     company shall notify the owner of the owner's obligation to 
     apply for a salvage title or nonrepairable vehicle 
     certificate for the passenger motor vehicle and notify the 
     State passenger motor vehicle titling office that a salvage 
     title or nonrepairable vehicle certificate should be issued 
     for the vehicle, except to the extent such notification is 
     prohibited by State insurance law.
       ``(D) If a leased passenger motor vehicle incurs damage 
     requiring the vehicle to be titled as a salvage vehicle or 
     nonrepairable vehicle, the lessor shall apply for a salvage 
     title or nonrepairable vehicle certificate within 21 days 
     after being notified by the lessee that the vehicle has been 
     so damaged, except when an insurance company, pursuant to a 
     damage settlement, acquires ownership of the vehicle. The 
     lessee of such vehicle shall inform the lessor that the 
     leased vehicle has been so damaged within 30 days after the 
     occurrence of the damage.
       ``(E) Any person acquiring ownership of a damaged passenger 
     motor vehicle that meets the definition of a salvage or 
     nonrepairable vehicle for which a salvage title or 
     nonrepairable vehicle certificate has not been issued, shall 
     apply for a salvage title or nonrepairable vehicle 
     certificate, whichever is applicable. This application shall 
     be made before the vehicle is further transferred, but in any 
     event, within 30 days after ownership is acquired. The 
     requirements of this subparagraph shall not apply to any 
     scrap metal processor which acquires a passenger motor 
     vehicle for the sole purpose of processing it into prepared 
     grades of scrap and which so processes such vehicle.
       ``(F) State records shall note when a nonrepairable vehicle 
     certificate is issued. No State shall issue a nonrepairable 
     vehicle certificate after 2 transfers of ownership.
       ``(G) When a passenger motor vehicle has been flattened, 
     baled, or shredded, whichever

[[Page S11355]]

     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, prior to the time of transfer of 
     ownership of the vehicle, give the transferee a written 
     notice that the vehicle has been damaged by flood, provided 
     such person has actual knowledge that such vehicle has been 
     damaged by flood. At the time of the next title application 
     for the vehicle, disclosure of the flood status shall be 
     provided to the applicable State with the properly assigned 
     title and the 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, if permitted by State law, be registered for use on the 
     roads and highways.
       ``(15) Ownership of a passenger motor vehicle may only be 
     transferred 2 times on a nonrepairable vehicle certificate. A 
     passenger motor vehicle which a nonrepairable vehicle 
     certificate has been issued can never be titled or registered 
     for use on roads or highways.
       ``(c) Consumer Notice in Noncompliant States.--Any State 
     receiving, either directly or indirectly, funds appropriated 
     under section 30503(c) of this title after the date of 
     enactment of the National Salvage Motor Vehicle Consumer 
     Protection Act of 1998 and not complying with the 
     requirements of subjections (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 subjections (a) and (b) of this 
     section: `NOTICE: This State does not conform to the uniform 
     Federal requirements of the National Salvage Motor Vehicle 
     Consumer Protection Act of 1998.'.
       ``(d) Electronic Procedures.--A State may employ electronic 
     procedures in lieu of paper documents whenever such 
     electronic procedures provide the same information, function, 
     and security otherwise required by this section.

     ``Sec. 33303. Disclosure and label requirements on transfer 
       of 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, prior to the time of 
     transfer of ownership of the vehicle, give the transferee a 
     written disclosure that the vehicle is a rebuilt salvage 
     vehicle when such person has actual knowledge of the status 
     of such vehicle.
       ``(2) False statement.--A person making a written 
     disclosure required by a regulation prescribed under 
     paragraph (1) of this subsection may not make a false 
     statement in the disclosure.
       ``(3) Completeness.--A person acquiring a rebuilt salvage 
     vehicle for resale may accept a disclosure under paragraph 
     (1) only if it is complete.
       ``(4) Regulations.--The regulations prescribed by the 
     Secretary shall provide the way in which information is 
     disclosed and retained under paragraph (1).
       ``(b) Label Requirements.--
       ``(1) In general.--The Secretary shall by regulation 
     require that a label be affixed to the windshield or window 
     of a rebuilt salvage vehicle before its first sale at retail 
     containing such information regarding that vehicle as the 
     Secretary may require. The label shall be affixed by the 
     individual who conducts the applicable State antitheft 
     inspection in a participating State.
       ``(2) Removal, alteration, or illegibility of required 
     label.--No person shall willfully remove, alter, or render 
     illegible any label required by paragraph (1) affixed to a 
     rebuilt salvage vehicle before the vehicle is delivered to 
     the actual custody and possession of the first retail 
     purchaser.
       ``(c) Limitation.--The requirements of subsections (a) and 
     (b) shall only apply to a transfer of ownership of a rebuilt 
     salvage vehicle where such transfer occurs in a State which, 
     at the time of the transfer, is complying with subsections 
     (a) and (b) of section 33302.

     ``Sec. 33304. Report on funding

       ``The Secretary shall, contemporaneously with the issuance 
     of a final rule pursuant to section 33302(b), report to 
     appropriate committees of Congress whether the costs to the 
     States of compliance with such rule can be met by user fees 
     for issuance of titles, issuance of registrations, issuance 
     of duplicate titles, inspection of rebuilt vehicles, or for 
     the State services, or by earmarking any moneys collected 
     through law enforcement action to enforce requirements 
     established by such rule.

     ``Sec. 33305. Effect on State law

       ``(a) In General.--Unless a State is in compliance with 
     subsection (c) of section 33302, effective on the date the 
     rule promulgated pursuant to section 33302 becomes effective, 
     the provisions of this chapter shall preempt all State 
     laws in States receiving funds, either directly or 
     indirectly, appropriated under section 30503(c) of this 
     title after the date of the enactment of the National 
     Salvage Motor Vehicle Consumer Protection Act of 1998, to 
     the extent they are inconsistent with the provisions of 
     this chapter or the rule promulgated pursuant to section 
     33302, which--
       ``(1) set forth the form of the passenger motor vehicle 
     title;
       ``(2) define, in connection with a passenger motor vehicle 
     (but not in connection with a passenger motor vehicle part or 
     part assembly separate from a passenger motor vehicle), any 
     term defined in section 33301 or the terms `salvage', 
     `nonrepairable', or `flood', or apply any of those terms to 
     any passenger motor vehicle (but not to a passenger motor 
     vehicle part or part assembly separate from a passenger motor 
     vehicle); or
       ``(3) set forth titling, recordkeeping, anti-theft 
     inspection, or control procedures in connection with any 
     salvage vehicle, rebuilt salvage vehicle, non-repairable 
     vehicle, or flood vehicle.
       ``(b) Exceptions.--
       ``(1) Passenger motor vehicle; older model salvage.--
     Subsection (a)(2) does not preempt State use of the term--
       ``(A) `passenger motor vehicle' in statutes not related to 
     titling, recordkeeping, anti-theft inspection, or control 
     procedures in connection with any salvage vehicle, rebuilt 
     salvage vehicle, nonrepairable vehicle, or flood vehicle; or
       ``(B) `older model salvage' to designate a wrecked, 
     destroyed, or damaged vehicle that is older than a late model 
     vehicle.
       ``(2) Consumer law actions.--Nothing in this chapter may be 
     construed to affect any private right of action under State 
     law.
       ``(c) Construction.--Additional disclosures of a passenger 
     motor vehicle's title status or history, in addition to the 
     terms defined in section 33301, shall not be deemed 
     inconsistent with the provisions of this chapter. Such 
     disclosures shall include disclosures made on a certificate 
     of title. When used in connection with a passenger motor 
     vehicle (but not in connection with a passenger motor vehicle 
     part or part assembly separate from a passenger motor 
     vehicle), any definition of a term defined in section 33301 
     which is different than the definition in that section or any 
     use of any term listed in subsection (a), but not defined in 
     section 33301, shall be deemed inconsistent with the 
     provisions of this chapter. Nothing in this chapter shall 
     preclude a State from disclosing on a rebuilt national 
     salvage title that a rebuilt national salvage vehicle has 
     passed a State safety inspection which differed from the 
     nationally uniform criteria to be promulgated pursuant to 
     section 33302(b)(8).

     ``Sec. 33306. Civil penalties

       ``(a) Prohibited Acts.--It is unlawful for any person 
     knowingly to--
       ``(1) make or cause to be made any false statement on an 
     application for a title (or duplicate title) for a passenger 
     motor vehicle or any disclosure made pursuant to section 
     33303;

[[Page S11356]]

       ``(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 non-repairable 
     vehicle as a rebuild salvage vehicle;
       ``(6) fail to make any disclosure required by section 
     33302(b)(11);
       ``(7) fail to make any disclosure required by section 
     33303;
       ``(8) violate a regulation prescribed under this chapter;
       ``(9) move a vehicle or a vehicle title in interstate 
     commerce for the purpose of avoiding the titling requirements 
     of this chapter; or
       ``(10) conspire to commit any of the acts enumerated in 
     paragraph (1), (2), (3), (4), (5), (6), (7), (8), or (9.,
       ``(b) Civil Penalty.--Any person who commits an unlawful 
     act as provided in subsection (a) of this section shall be 
     fined a civil penalty of up to $2,000 per offense. A separate 
     violation occurs for each passenger motor vehicle involved in 
     the violation.

     ``Sec. 33307. Actions by States

       ``(a) In General.--When a person violates any provision of 
     this chapter, the chief law enforcement officer of the State 
     in which the violation occurred may bring an action--
       ``(1) to restrain the violation;
       ``(2) recover amounts for which a person is liable under 
     section 33306; or
       ``(3) to recover the amount of damage suffered by any 
     resident in that State who suffered damage as a result of the 
     knowing commission of an unlawful act under section 33306(a) 
     by another person.
       ``(b) Statute of Limitations.--An action under subsection 
     (a) shall be brought in any court of competent jurisdiction 
     within 2 years after the date on which the violation occurs.
       ``(c) Notice.--The State shall serve prior written notice 
     of any action under subsection (a) or (f)(2) upon the 
     Attorney General of the United States and provide the 
     Attorney General with a copy of its complaint, except that if 
     it is not feasible for the State to provide such prior 
     notice, the State shall serve such notice immediately upon 
     instituting such action. Upon receiving a notice respecting 
     an action, the Attorney General shall have the right--
       ``(1) to intervene in such action;
       ``(2) upon so intervening, to be heard on all matters 
     arising therein; and
       ``(3) to file petitions for appeal.
       ``(d) Construction.--For purposes of bring any action under 
     subsection (a), nothing in this Act shall prevent an attorney 
     general from exercising the powers conferred on the attorney 
     general by the laws of such State to conduct investigations 
     or to administer oaths or affirmations or to compel the 
     attendance of witnesses or the production of documentary and 
     other evidence.
       ``(e) Venue; Service of Process.--Any action brought under 
     subsection (a) in a district court of the United States may 
     be brought in the district in which the defendant is found, 
     is an inhabitant, or transacts business or wherever venue is 
     proper under section 1391 of title 28, United States Code. 
     Process in such an action may be served in any district in 
     which the defendant is an inhabitant or in which the 
     defendant may be found.
       ``(f) Actions by State Officials.--
       ``(1) Nothing contained in this section shall prohibit an 
     attorney general of a State or other authorized State 
     official from proceeding in State court on the basis of an 
     alleged violation of any civil or criminal statute of such 
     State.
       ``(2) In addition to actions brought by an attorney general 
     of a State under subsection (a), such an action may be 
     brought by officers of such State who are authorized by the 
     State to bring actions in such State or behalf of its 
     residents.''.
       (b) Conforming Amendment.--The table of chapters for part C 
     at the beginning of subtitle VI of title 49, United States 
     Code, is amended by inserting at the end the following new 
     item:

``333. AUTOMOBILE SAFETY AND TITLE DISCLOSURE REQUIREMENTS.33301''.....

     SEC. 3. AMENDMENTS TO CHAPTER 305.

       (a) Definitions.--
       (1) Section 30501(4) of title 49, United States Code, is 
     amended to read as follows:
       ``(4) `nonrepairable vehicle', `salvage vehicle', and 
     `rebuilt salvage vehicle' have the same meanings given those 
     terms in section 33301 of this title.''.
       (2) Section 30501(5) of such title is amended by striking 
     ``junk automobiles'' and insert ``non-repairable vehicles''.
       (3) Section 30501(8) of such title is amended by striking 
     ``salvage automobiles'' and inserting ``salvage vehicles''.
       (4) Section 30501 of such title is amended by striking 
     paragraph (7) and redesignating paragraphs (8) and (9) or 
     paragraph (7) and (8), respectively.
       (b) National Motor Vehicle Title Information System.--
       (1) Section 30502(d)(3) of title 49, United States Code, is 
     amended to read as follows:
       ``(3) whether an automobile known to be titled in a 
     particular State is or has been a nonrepairable vehicle, a 
     rebuilt salvage vehicle, or a salvage vehicle;''.
       (2) Section 30502(d)(5) of such title is amended 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.--Section 30503 of title 49, United 
     States Code, is amended to read as follows:

     ``Sec. 30503. State participation

       ``(a) State Information.--Each State receiving funds 
     appropriated under subsection (c) shall make titling 
     information maintained by that State available for use in 
     operating the National Motor Vehicle Title Information System 
     established or designated under section 30502 of this title.
       ``(b) Verification Checks.--Each State receiving funds 
     appropriated under subsection (c) shall establish a practice 
     of performing an instant title verification check before 
     issuing a certificate of title to an individual or entity 
     claiming to have purchased an automobile from an individual 
     or entity in another State. The check shall consist of--
       ``(1) communicating to the operator--
       ``(A) the vehicle identification number of the automobile 
     for which the certificate of title is sought;
       ``(B) the name of the State that issued the most recent 
     certificate of title for the automobile; and
       ``(C) the name of the individual or entity to whom the 
     certificate of title was issued; and
       ``(2) giving the operator an opportunity to communicate to 
     the participating State the results of a search of the 
     information.
       ``(c) Grants to States.--
       ``(1) In cooperation with the States and not later than 
     January 1, 1994, the Attorney General shall--
       ``(A) conduct a review of systems used by the States to 
     compile and maintain information about the titling of 
     automobiles; and
       ``(B) determine for each State the cost of making titling 
     information maintained by that State available to the 
     operator to meet the requirements of section 30502(d) of 
     this title.
       ``(2) The Attorney General may make reasonable and 
     necessary grants to participating States to be used in making 
     titling information maintained by those States available to 
     the operator.
       ``(d) Report to Congress.--Not later than October 1, 1998, 
     the Attorney General shall report to Congress on which States 
     have met the requirements of this section. If a State has not 
     met the requirements, the Attorney General shall describe the 
     impediments that have resulted in the State's failure to meet 
     the requirements.''.
       (d) Reporting Requirements.--Section 30504 of title 49, 
     United States Code, is amended by striking ``junk automobiles 
     or salvage automobiles'' every place it appears and inserting 
     ``nonrepairable vehicles, rebuilt salvage vehicles or salvage 
     vehicles''.

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

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

                 LEVIN (AND OTHERS) AMENDMENT NO. 3684

  Mr. SESSIONS (for Mr. Levin for himself, Ms. Feinstein, and Mr. 
Bryan) proposed an amendment to amendment No. 3683 proposed by Mr. 
Gorton to the bill, S. 852, supra; as follows:

       On page 2, before line 1, strike the item relating to 
     section 33303 and insert the following:

``33303. Disclosure and label requirements on transfer of rebuilt 
              Federal salvage vehicles.

       On page 2, lines 17 and 18, strike ``Salvage vehicle.--The 
     term `salvage vehicle' '' and insert ``Federal salvage 
     vehicle.--The term `Federal salvage vehicle' ''.
       On page 4, line 10, strike ``Salvage title.--The term 
     `salvage title' '' and insert ``Federal salvage title.--The 
     term `Federal salvage title' ''.
       On page 4, lines 15 and 16, strike ``Rebuilt salvage 
     vehicle.--The term `rebuilt salvage vehicle' '' and insert 
     ``Federal rebuilt salvage vehicle.--The term `Federal rebuilt 
     salvage vehicle' ''.
       On page 5, line 4, strike ``Rebuilt'' and insert ``Federal 
     Rebuilt''.
       On page 5, line 14, strike ``Rebuilt'' and insert ``Federal 
     Rebuilt''.
       On page 5, beginning on line 19, strike ``Rebuilt salvage 
     title.--The term `rebuilt salvage title' '' and insert 
     ``Federal rebuilt salvage title.--The term `Federal rebuilt 
     salvage title' ''.

[[Page S11357]]

       On page 5, line 22, strike ``rebuilt salvage'' and insert 
     ``Federal rebuilt salvage''.
       On page 5, line 22, strike ``a rebuilt salvage'' and insert 
     ``a Federal rebuilt salvage''.
       On page 5, lines 24 and 25, strike ``Rebuilt Salvage'' each 
     place that term appears and insert ``Federal Rebuilt 
     Salvage''.
       On page 6, lines 4 and 5, strike ``Nonrepairable vehicle.--
     The term `nonrepairable vehicle' '' and insert ``Federal 
     nonrepairable vehicle.--The term `Federal nonrepairable 
     vehicle' ''.
       On page 6, line 11, strike ``nonrepairable'' and insert 
     ``Federal nonrepairable''.
       On page 6, lines 14 and 15, strike ``Nonrepairable vehicle 
     certificate.--The term `nonrepairable vehicle certificate' '' 
     and insert ``Federal nonrepairable vehicle certificate.--The 
     term `Federal nonrepairable vehicle certificate' ''.
       On page 6, lines 17 through 18, strike ``nonrepairable'' 
     and insert ``Federal nonrepairable.
       On page 6, line 18, strike ``nonrepairable'' and insert 
     ``Federal nonrepairable''.
       On page 6, line 19, strike ``word'' and insert ``words''.
       On page 6, lines 19 and 20, strike ``Nonrepairable'' and 
     insert ``Federal nonrepairable''.
       On page 8, line 3, strike ``Flood vehicle.--'' and insert 
     ``Federal flood vehicle.--''.
       On page 9, line 8, strike ``flood'' and insert ``federal 
     flood''.
       On page 9, line 11, strike ``Flood'' and insert ``Federal 
     Flood''.
       On page 22, strike lines 20 and 21 and insert the 
     following:

     ``Sec.  33303. Disclosure and label requirements on transfer 
       of Federal rebuilt salvage vehicles''

       On page 21, line 2, strike ``word'' and insert ``words''.
       On page 21, line 2, strike ``Flood'' and insert ``Federal 
     Flood''.
       Strike ``salvage'' and insert ``Federal salvage'' on the 
     following pages and in or beginning on the following lines:
       (1) Page 3, line 15.
       (2) Page 4, lines 12, 13, 14, and 18.
       (3) Page 5, line 9.
       (4) Page 11, line 14.
       (5) Page 15, lines 17, 18, and 20.
       (6) Page 16, lines 7, 11, 16, 19, and 22.
       (7) Page 17, lines 5, 6, 18, 19, and 21.
       (8) Page 19, lines 8, 11, 12, 19, and 22.
       (9) Page 20, line 10.
       (10) Page 21, lines 10 and 11.
       (11) Page 25, lines 15 and 22.
       (12) Page 27, line 15.
       (13) Page 28, line 4.
       (14) Page 31, lines 11 and 19.
       (15) Page 32, line 12.
       (16) Page 34, line 17.
       Strike ``flood'' and insert ``Federal flood'' on the 
     following pages and in or beginning on the following lines:
       (1) Page 6, line 6.
       (2) Page 9, line 14.
       (3) Page 11, line 15.
       (4) Page 21, line 8.
       (5) Page 25, lines 16 and 23.
       Strike ``rebuilt salvage'' and insert ``Federal rebuilt 
     salvage'' on the following pages and in or beginning on the 
     following lines:
       (1) Page 5, line 22 (each place it appears).
       (2) Page 11, lines 14 and 15.
       (3) Page 12, line 14.
       (4) Page 14, line 18.
       (5) Page 20, lines 8 through 9, 16, and 14.
       (6) Page 21, lines 16 and 17.
       (7) Page 22, line 25.
       (8) Page 23, lines 3, 11, and 20.
       (9) Page 24, lines 4 and 9.
       (10) Page 25, line 22.
       (11) Page 27, line 4.
       (12) Page 28, line 5.
       (13) Page 31, line 12.
       (14) Page 32, lines 5 and 11.
       (15) Page 34, line 16.
       Strike ``nonrepairable'' and insert ``Federal 
     nonrepairable'' on the following pages and in or beginning on 
     the following lines:
       (1) Page 11, line 14.
       (2) Page 12, line 9.
       (3) Page 15, lines 18 and 20.
       (4) Page 16, lines 5, 8, 17, 20, and 23.
       (5) Page 17, lines 5, 6 through 7, 18, 19, and 21.
       (6) Page 18, lines 8, 12, 15, and 22.
       (7) Page 19, lines 3 and 6.
       (8) Page 21, lines 21 and 23.
       (9) Page 25, lines 15 through 16.
       (10) Page 25, lines 22 through 23.
       (11) Page 27, line 18.
       (12) Page 28, lines 4 and 5.
       (13) Page 31, lines 11 and 15 through 16.
       (14) Page 32, lines 4 and 11.
       (15) Page 34, line 16.
       On page 10, line 20, strike ``title.'' and insert ``title, 
     or that the vehicle was a `Federal salvage vehicle', `Federal 
     rebuilt salvage vehicle', `Federal flood vehicle', or 
     `Federal nonrepairable vehicle' .''.
       On page 11, line 15, strike ``vehicle.'' and insert 
     ``vehicle, or if records readily available to the State 
     indicate that the passenger motor vehicle was previously 
     issued a title that bore any word or symbol referred to in 
     subsection (a).''.
       On page 27, between lines 7 and 8, insert the following:
       ``(d) Statutory Construction.--Except as specifically 
     provided in this chapter, nothing in this chapter is intended 
     to affect any State law--
       ``(1) relating to the inspection or titling of, disclosure, 
     or other action concerning salvage, rebuilt salvage, flood, 
     or nonrepairable motor vehicles; or
       ``(2) that provides for more stringent protection of a 
     purchaser of a used motor vehicle.
       On page 32, strike lines 1 through 12 and insert the 
     following:
       (1) Section 30502(d)(3) of title 49, United States Code, is 
     amended to read as follows:
       ``(3) whether an automobile known to be titled in a 
     particular State--
       ``(A) is or has been a Federal nonrepairable vehicle, a 
     Federal rebuilt salvage vehicle, or a Federal salvage 
     vehicle; or
       ``(B) was previously issued a title that bore any word or 
     symbol signifying that the vehicle was `salvage', 
     `unrebuildable', `parts only', `scrap', `junk', or any other 
     symbol or word of like kind, or that the vehicle has been 
     damaged by flood.''.
       (2) Section 30502(d)(5) of title 49, United States Code, is 
     amended to read as follows:
       ``(5) whether--
       ``(A) an automobile bearing a known vehicle identification 
     number has been reported as a Federal nonrepairable vehicle, 
     a Federal rebuilt salvage vehicle, or a Federal salvage 
     vehicle under section 30504 of this title; or
       ``(B) the vehicle was previously issued a title that bore 
     any word or symbol signifying that the vehicle was `salvage', 
     `unrebuildable', `parts only', `scrap', `junk', or any other 
     symbol or word of like kind, or that the vehicle has been 
     damaged by flood.''.

                          ____________________