[Congressional Record Volume 144, Number 136 (Friday, October 2, 1998)]
[Senate]
[Pages S11389-S11399]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     NATIONAL SALVAGE MOTOR VEHICLE CONSUMER PROTECTION ACT OF 1998

  Mr. SESSIONS. Mr. President, I ask unanimous consent that the Senate 
now proceed to the consideration of calendar No. 495, S. 852.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       A bill (S. 852) to establish nationally uniform 
     requirements regarding the titling and registration of 
     salvage, nonrepairable, and rebuilt vehicles.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the 
bill, which had been reported from the Committee on Commerce, Science, 
and Transportation, with an amendment to strike all after the enacting 
clause and inserting in lieu thereof the following:

     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

[[Page S11390]]

     Code, is amended by inserting a new chapter at the end:

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

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

     ``Sec. 33301. Definitions

       ``(a) Definitions.--For the purposes of this chapter:
       ``(1) Passenger motor vehicle.--The term `passenger motor 
     vehicle' shall have the same meaning given such term by 
     section 32101(10), except, notwithstanding section 32101(9), 
     it shall include a multipurpose passenger vehicle 
     (constructed on a truck chassis or with special features for 
     occasional off-road operation), or a truck, other than a 
     truck referred to in section 32101(10)(B), when that vehicle 
     or truck is rated by the manufacturer of such vehicle or 
     truck at not more than 10,000 pounds gross vehicle weight, 
     and except further, it shall only include a vehicle 
     manufactured primarily for use on public streets, roads, and 
     highways.
       ``(2) Salvage vehicle.--The term `salvage vehicle' means 
     any passenger motor vehicle, other than a flood vehicle or a 
     nonrepairable vehicle, which--
       ``(A) is a late model vehicle which has been wrecked, 
     destroyed, or damaged, to the extent that the total cost of 
     repairs to rebuild or reconstruct the passenger motor vehicle 
     to its condition immediately before it was wrecked, 
     destroyed, or damaged, and for legal operation on the roads 
     or highways, exceeds 80 percent of the retail value of the 
     passenger motor vehicle;
       ``(B) is a late model vehicle which has been wrecked, 
     destroyed, or damaged, and to which an insurance company 
     acquires ownership pursuant to a damage settlement (except in 
     the case of a settlement in connection with a recovered 
     stolen vehicle, unless such vehicle sustained damage 
     sufficient to meet the damage threshold prescribed by 
     subparagraph (A)); or
       ``(C) the owner wishes to voluntarily designate as a 
     salvage vehicle by obtaining a salvage title, without regard 
     to the level of damage, age, or value of such vehicle or any 
     other factor, except that such designation by the owner 
     shall not impose on the insurer of the passenger motor 
     vehicle or on an insurer processing a claim made by or on 
     behalf of the owner of the passenger motor vehicle any 
     obligation or liability.
       ``(3) Salvage title.--The term `salvage title' means a 
     passenger motor vehicle ownership document issued by the 
     State to the owner of a salvage vehicle. A salvage title 
     shall be conspicuously labeled with the word `salvage' across 
     the front.
       ``(4) Rebuilt salvage vehicle.--The term `rebuilt salvage 
     vehicle' means--
       ``(A) any passenger motor vehicle which was previously 
     issued a salvage title, has passed State anti-theft 
     inspection, has been issued a certificate indicating that the 
     passenger motor vehicle has passed the required anti-theft 
     inspection, has passed the State safety inspection in those 
     States requiring a safety inspection pursuant to section 
     33302(b)(8), has been issued a certificate indicating that 
     the passenger motor vehicle has passed the required safety 
     inspection in those States requiring such a safety inspection 
     pursuant to section 33302(b)(8), and has a decal stating 
     `Rebuilt Salvage Vehicle--Anti-theft and Safety Inspections 
     Passed' affixed to the driver's door jamb; or
       ``(B) any passenger motor vehicle which was previously 
     issued a salvage title, has passed a State anti-theft 
     inspection, has been issued a certificate indicating that the 
     passenger motor vehicle has passed the required anti-theft 
     inspection, and has, affixed to the driver's door jamb, a 
     decal stating `Rebuilt Salvage Vehicle--Anti-theft Inspection 
     Passed/No Safety Inspection Pursuant to National Criteria' in 
     those States not requiring a safety inspection pursuant to 
     section 33302(b)(8).
       ``(5) Rebuilt salvage title.--The term `rebuilt salvage 
     title' means the passenger motor vehicle ownership document 
     issued by the State to the owner of a rebuilt salvage 
     vehicle. A rebuilt salvage title shall be conspicuously 
     labeled either with the words `Rebuilt Salvage Vehicle--Anti-
     theft and Safety Inspections Passed' or `Rebuilt Salvage 
     Vehicle--Anti-theft Inspection Passed/No Safety Inspection 
     Pursuant to National Criteria,' as appropriate, across the 
     front.
       ``(6) Nonrepairable vehicle.--The term `nonrepairable 
     vehicle' means any passenger motor vehicle, other than a 
     flood vehicle, which is incapable of safe operation for use 
     on roads or highways and which has no resale value except as 
     a source of parts or scrap only or which the owner 
     irreversibly designates as a source of parts or scrap. Such 
     passenger motor vehicle shall be issued a nonrepairable 
     vehicle certificate and shall never again be titled or 
     registered.
       ``(7) Nonrepairable vehicle certificate.--The term 
     `nonrepairable vehicle certificate' means a passenger motor 
     vehicle ownership document issued by the State to the owner 
     of a nonrepairable vehicle. A nonrepairable vehicle 
     certificate shall be conspicuously labeled with the word 
     `Nonrepairable' across the front.
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of Transportation.
       ``(9) Late model vehicle.--The term `Late Model Vehicle' 
     means any passenger motor vehicle which--
       ``(A) has a manufacturer's model year designation of or 
     later than the year in which the vehicle was wrecked, 
     destroyed, or damaged, or any of the six preceding years; or
       ``(B) has a retail value of more than $7,500.

     The Secretary shall adjust such retail value on an annual 
     basis in accordance with changes in the consumer price index.
       ``(10) Retail value.--The term `retail value' means the 
     actual cash value, fair market value, or retail value of a 
     passenger motor vehicle as--
       ``(A) set forth in a current edition of any nationally 
     recognized compilation (to include automated databases) of 
     retail values; or
       ``(B) determined pursuant to a market survey of comparable 
     vehicles with regard to condition and equipment.
       ``(11) Cost of repairs.--The term `cost of repairs' means 
     the estimated retail cost of parts needed to repair the 
     vehicle or, if the vehicle has been repaired, the actual 
     retail cost of the parts used in the repair, and the cost of 
     labor computed by using the hourly labor rate and time 
     allocations that are reasonable and customary in the 
     automobile repair industry in the community where the repairs 
     are to be performed.
       ``(12) Flood vehicle.--The term `flood vehicle' means any 
     passenger motor vehicle that--
       ``(A) has been acquired by an insurance company as part of 
     a damage settlement due to water damage; or
       ``(B) has been submerged in water to the point that rising 
     water has reached over the door sill, has entered the 
     passenger or trunk compartment, and has exposed any 
     electrical, computerized, or mechanical component to water, 
     except--
       ``(i) where a passenger motor vehicle which, pursuant to an 
     inspection conducted by an insurance adjuster or estimator, a 
     motor vehicle repairer or motor vehicle dealer in accordance 
     with inspection guidelines or procedures established by the 
     Secretary or the State, is determined to have no electrical, 
     computerized or mechanical components which were damaged by 
     water; or,
       ``(ii) where a passenger motor vehicle which, pursuant to 
     an inspection conducted by an insurance adjuster or 
     estimator, a motor vehicle repairer or motor vehicle dealer 
     in accordance with inspection guidelines or procedures 
     established by the Secretary or the State, is determined to 
     have one or more electrical, computerized or mechanical 
     components which were damaged by water and where all such 
     damaged components have been repaired or replaced.

     Disclosure that a vehicle is a flood vehicle must be made at 
     the time of transfer of ownership and the brand `Flood' shall 
     be conspicuously marked on all subsequent titles for the 
     vehicle. No inspection shall be required unless the owner or 
     insurer of the passenger motor vehicle is seeking to avoid a 
     brand of `Flood' pursuant to subparagraph (B). Disclosing a 
     passenger motor vehicle's status as a flood vehicle or 
     conducting an inspection pursuant to subparagraph (B) shall 
     not impose on any person any liability for damage to 
     (except in the case of damage caused by the inspector at 
     the time of the inspection) or reduced value of a 
     passenger motor vehicle.
       ``(b) Construction.--The definitions set forth in 
     subsection (a) shall only apply to vehicles in a State which 
     are wrecked, destroyed, or otherwise damaged on or after the 
     date on which such State complies with the requirements of 
     this chapter and the rule promulgated pursuant to section 
     33302(b).

     ``Sec. 33302. Passenger motor vehicle titling

       ``(a) Carry-Forward of Information on a Newly Issued Title 
     Where the Previous Title for the Vehicle Was Not Issued 
     Pursuant to New Nationally Uniform Standards.--For any 
     passenger motor vehicle, the ownership of which is 
     transferred on or after the date that is 1 year from the date 
     of the enactment of this chapter, each State receiving funds, 
     either directly or indirectly, appropriated under section 
     30503(c) of this title after the date of the enactment of 
     this chapter, in licensing such vehicle for use, shall 
     disclose in writing on the certificate of title whenever 
     records readily accessible to the State indicate that the 
     passenger motor vehicle was previously issued a title that 
     bore any word or symbol signifying that the vehicle was 
     `salvage', `unrebuildable', `parts only', `scrap', `junk', 
     `nonrepairable', `reconstructed', `rebuilt', or any other 
     symbol or word of like kind, or that it has been damaged by 
     flood.
       ``(b) Nationally Uniform Title Standards and Control 
     Methods.--Not later than 18 months after the date of the 
     enactment of this chapter, the Secretary shall by rule 
     require each State receiving funds, either directly or 
     indirectly, appropriated under section 30503(c) of this title 
     after the date of the enactment of this chapter, in licensing 
     any passenger motor vehicle where ownership of such passenger 
     motor vehicle is transferred more than 2 years after 
     publication of such final rule, to apply uniform standards, 
     procedures, and methods for the issuance and control of 
     titles for motor vehicles and for information to be contained 
     on such titles. Such titling standards, control procedures, 
     methods, and information shall include the following 
     requirements:
       ``(1) A State shall conspicuously indicate on the face of 
     the title or certificate for a passenger motor vehicle, as 
     applicable, if the passenger motor vehicle is a salvage 
     vehicle, a nonrepairable vehicle, a rebuilt salvage vehicle, 
     or a flood vehicle.
       ``(2) Such information concerning a passenger motor 
     vehicle's status shall be conveyed on any subsequent title, 
     including a duplicate or replacement title, for the passenger 
     motor vehicle issued by the original titling State or any 
     other State.
       ``(3) The title documents, the certificates, and decals 
     required by section 33301(4), and the issuing system shall 
     meet security standards minimizing the opportunities for 
     fraud.
       ``(4) The certificate of title shall include the passenger 
     motor vehicle make, model, body type,

[[Page S11391]]

     year, odometer disclosure, and vehicle identification number.
       ``(5) The title documents shall maintain a uniform layout, 
     to be established in consultation with the States or an 
     organization representing them.
       ``(6) A passenger motor vehicle designated as nonrepairable 
     shall be issued a nonrepairable vehicle certificate and shall 
     not be retitled.
       ``(7) No rebuilt salvage title shall be issued to a salvage 
     vehicle unless, after the salvage vehicle is repaired or 
     rebuilt, it complies with the requirements for a rebuilt 
     salvage vehicle pursuant to section 33301(4). Any State 
     inspection program operating under this paragraph shall be 
     subject to continuing review by and approval of the 
     Secretary. Any such anti-theft inspection program shall 
     include the following:
       ``(A) A requirement that the owner of any passenger motor 
     vehicle submitting such vehicle for an anti-theft inspection 
     provide a completed document identifying the vehicle's damage 
     prior to being repaired, a list of replacement parts used to 
     repair the vehicle, and proof of ownership of such 
     replacement parts, as may be evidenced by bills of sale, 
     invoices, or, if such documents are not available, other 
     proof of ownership for the replacement parts. The owner shall 
     also include an affirmation that the information in the 
     declaration is complete and accurate and that, to the 
     knowledge of the declarant, no stolen parts were used during 
     the rebuilding.
       ``(B) A requirement to inspect the passenger motor vehicle 
     or any major part or any major replacement part required to 
     be marked under section 33102 for signs of such mark or 
     vehicle identification number being illegally altered, 
     defaced, or falsified. Any such passenger motor vehicle or 
     any such part having a mark or vehicle identification number 
     that has been illegally altered, defaced, or falsified, and 
     that cannot be identified as having been legally obtained 
     (through bills of sale, invoices, or other ownership 
     documentation), shall be contraband and subject to 
     seizure. The Secretary, in consultation with the Attorney 
     General, shall, as part of the rule required by this 
     section, establish procedures for dealing with those parts 
     whose mark or vehicle identification number is normally 
     removed during industry accepted remanufacturing or 
     rebuilding practices, which parts shall be deemed 
     identified for purposes of this section if they bear a 
     conspicuous mark of a type, and applied in such a manner, 
     as designated by the Secretary, indicating that they have 
     been rebuilt or remanufactured. With respect to any 
     vehicle part, the Secretary's rule, as required by this 
     section, shall acknowledge that a mark or vehicle 
     identification number on such part may be legally removed 
     or altered as provided for in section 511 of title 18, 
     United States Code, and shall direct inspectors to adopt 
     such procedures as may be necessary to prevent the seizure 
     of a part from which the mark or vehicle identification 
     number has been legally removed or altered.
       ``(8) Any safety inspection for a rebuilt salvage vehicle 
     performed pursuant to this chapter shall be performed in 
     accordance with nationally uniform safety inspection criteria 
     established by the Secretary. A State may determine whether 
     to conduct such safety inspection itself, contract with one 
     or more third parties, or permit self-inspection by a person 
     licensed by such State in an automotive-related business, all 
     subject to criteria promulgated by the Secretary hereunder. 
     Any State inspection program operating under this paragraph 
     shall be subject to continuing review by and approval of the 
     Secretary. A State requiring such safety inspection may 
     require the payment of a fee for the privilege of such 
     inspection or the processing thereof.
       ``(9) No duplicate or replacement title shall be issued 
     unless the word `duplicate' is clearly marked on the face 
     thereof and unless the procedures for such issuance are 
     substantially consistent with Recommendation three of the 
     Motor Vehicle Titling, Registration and Salvage Advisory 
     Committee.
       ``(10) A State shall employ the following titling and 
     control methods:
       ``(A) If an insurance company is not involved in a damage 
     settlement involving a salvage vehicle or a nonrepairable 
     vehicle, the passenger motor vehicle owner shall apply for a 
     salvage title or nonrepairable vehicle certificate, 
     whichever is applicable, before the passenger motor 
     vehicle is repaired or the ownership of the passenger 
     motor vehicle is transferred, but in any event within 30 
     days after the passenger motor vehicle is damaged.
       ``(B) If an insurance company, pursuant to a damage 
     settlement, acquires ownership of a passenger motor vehicle 
     that has incurred damage requiring the vehicle to be titled 
     as a salvage vehicle or nonrepairable vehicle, the insurance 
     company or salvage facility or other agent on its behalf 
     shall apply for a salvage title or nonrepairable vehicle 
     certificate within 30 days after the title is properly 
     assigned by the owner to the insurance company and delivered 
     to the insurance company or salvage facility or other agent 
     on its behalf with all liens released.
       ``(C) If an insurance company does not assume ownership of 
     an insured's or claimant's passenger motor vehicle that has 
     incurred damage requiring the vehicle to be titled as a 
     salvage vehicle or nonrepairable vehicle, the insurance 
     company shall notify the owner of the owner's obligation to 
     apply for a salvage title or nonrepairable vehicle 
     certificate for the passenger motor vehicle and notify the 
     State passenger motor vehicle titling office that a salvage 
     title or nonrepairable vehicle certificate should be issued 
     for the vehicle, except to the extent such notification is 
     prohibited by State insurance law.
       ``(D) If a leased passenger motor vehicle incurs damage 
     requiring the vehicle to be titled as a salvage vehicle or 
     nonrepairable vehicle, the lessor shall apply for a salvage 
     title or nonrepairable vehicle certificate within 21 days 
     after being notified by the lessee that the vehicle has been 
     so damaged, except when an insurance company, pursuant to a 
     damage settlement, acquires ownership of the vehicle. The 
     lessee of such vehicle shall inform the lessor that the 
     leased vehicle has been so damaged within 30 days after the 
     occurrence of the damage.
       ``(E) Any person acquiring ownership of a damaged passenger 
     motor vehicle that meets the definition of a salvage or 
     nonrepairable vehicle for which a salvage title or 
     nonrepairable vehicle certificate has not been issued, shall 
     apply for a salvage title or nonrepairable vehicle 
     certificate, whichever is applicable. This application shall 
     be made before the vehicle is further transferred, but in any 
     event, within 30 days after ownership is acquired. The 
     requirements of this subparagraph shall not apply to any 
     scrap metal processor which acquires a passenger motor 
     vehicle for the sole purpose of processing it into prepared 
     grades of scrap and which so processes such vehicle.
       ``(F) State records shall note when a nonrepairable vehicle 
     certificate is issued. No State shall issue a nonrepairable 
     vehicle certificate after 2 transfers of ownership.
       ``(G) When a passenger motor vehicle has been flattened, 
     baled, or shredded, whichever comes first, the title or 
     nonrepairable vehicle certificate for the vehicle shall be 
     surrendered to the State within 30 days. If the second 
     transferee on a nonrepairable vehicle certificate is 
     unequipped to flatten, bale, or shred the vehicle, such 
     transferee shall, at the time of final disposal of the 
     vehicle, use the services of a professional automotive 
     recycler or professional scrap processor who is hereby 
     authorized to flatten, bale, or shred the vehicle and to 
     effect the surrender of the nonrepairable vehicle certificate 
     to the State on behalf of such second transferee. State 
     records shall be updated to indicate the destruction of such 
     vehicle and no further ownership transactions for the vehicle 
     will be permitted. If different than the State of origin of 
     the title or nonrepairable vehicle certificate, the State of 
     surrender shall notify the State of origin of the surrender 
     of the title or nonrepairable vehicle certificate and of the 
     destruction of such vehicle.
       ``(H) When a salvage title is issued, the State records 
     shall so note. No State shall permit the retitling for 
     registration purposes or issuance of a rebuilt salvage title 
     for a passenger motor vehicle with a salvage title without a 
     certificate of inspection, which complies with the security 
     and guideline standards established by the Secretary pursuant 
     to paragraphs (3), (7), and (8), as applicable, indicating 
     that the vehicle has passed the inspections required by the 
     State. This subparagraph does not preclude the issuance of a 
     new salvage title for a salvage vehicle after a transfer of 
     ownership.
       ``(I) After a passenger motor vehicle titled with a salvage 
     title has passed the inspections required by the State, the 
     inspection official will affix the secure decal required 
     pursuant to section 33301(4) to the driver's door jamb of the 
     vehicle and issue to the owner of the vehicle a certificate 
     indicating that the passenger motor vehicle has passed the 
     inspections required by the State. The decal shall comply 
     with the permanency requirements established by the 
     Secretary.
       ``(J) The owner of a passenger motor vehicle titled with a 
     salvage title may obtain a rebuilt salvage title or vehicle 
     registration, or both, by presenting to the State the salvage 
     title, properly assigned, if applicable, along with the 
     certificate that the vehicle has passed the inspections 
     required by the State. With such proper documentation and 
     upon request, a rebuilt salvage title or registration, or 
     both, shall be issued to the owner. When a rebuilt salvage 
     title is issued, the State records shall so note.
       ``(11) A seller of a passenger motor vehicle that becomes a 
     flood vehicle shall, at or prior to the time of transfer of 
     ownership, give the buyer a written notice that the vehicle 
     has been damaged by flood, provided such person has actual 
     knowledge that such vehicle has been damaged by flood. At the 
     time of the next title application for the vehicle, 
     disclosure of the flood status shall be provided to the 
     applicable State with the properly assigned title and the 
     word `Flood' shall be conspicuously labeled across the front 
     of the new title.
       ``(12) In the case of a leased passenger motor vehicle, the 
     lessee, within 15 days of the occurrence of the event that 
     caused the vehicle to become a flood vehicle, shall give the 
     lessor written disclosure that the vehicle is a flood 
     vehicle.
       ``(13) Ownership of a passenger motor vehicle may be 
     transferred on a salvage title, however, a passenger motor 
     vehicle for which a salvage title has been issued shall not 
     be registered for use on the roads or highways unless it has 
     been issued a rebuilt salvage title.
       ``(14) Ownership of a passenger motor vehicle may be 
     transferred on a rebuilt salvage title, and a passenger motor 
     vehicle for which a rebuilt salvage title has been issued may 
     be registered for use on the roads and highways.
       ``(15) Ownership of a passenger motor vehicle may only be 
     transferred 2 times on a nonrepairable vehicle certificate. A 
     passenger motor vehicle for which a nonrepairable vehicle 
     certificate has been issued can never be titled or registered 
     for use on roads or highways.
       ``(c) Consumer Notice in Noncompliant States.--Any State 
     receiving, either directly or indirectly, funds appropriated 
     under section 30503(c) of this title after the date of 
     enactment of this chapter and not complying with the 
     requirements of subsections (a) and (b) of this section, 
     shall conspicuously print the following notice on all titles 
     or ownership certificates issued for passenger motor vehicles 
     in such State until such time as such State is in compliance 
     with the requirements of subsections (a) and (b) of this 
     section: `NOTICE: This State does not conform to the uniform 
     Federal requirements of the National Salvage Motor Vehicle 
     Consumer Protection Act of 1997.'.

[[Page S11392]]

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

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

     ``Sec. 33304. Report on funding

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

     ``Sec. 33305. Effect on State law

       ``(a) In General.--Unless a State is in compliance with 
     subsection (c) of section 33302, effective on the date the 
     rule promulgated pursuant to section 33302 becomes effective, 
     the provisions of this chapter shall preempt all State laws 
     in States receiving funds, either directly or indirectly, 
     appropriated under section 30503(c) of this title after the 
     date of the enactment of this chapter, to the extent they are 
     inconsistent with the provisions of this chapter or the rule 
     promulgated pursuant to section 33302, which--
       ``(1) set forth the form of the passenger motor vehicle 
     title;
       ``(2) define, in connection with a passenger motor vehicle 
     (but not in connection with a passenger motor vehicle part or 
     part assembly separate from a passenger motor vehicle), any 
     term defined in section 33301 or the terms `salvage', 
     `nonrepairable', or `flood', or apply any of those terms to 
     any passenger motor vehicle (but not to a passenger motor 
     vehicle part or part assembly separate from a passenger motor 
     vehicle); or
       ``(3) set forth titling, recordkeeping, anti-theft 
     inspection, or control procedures in connection with any 
     salvage vehicle, rebuilt salvage vehicle, nonrepairable 
     vehicle, or flood vehicle.
     The requirements described in paragraph (3) shall not be 
     construed to affect any State consumer law actions that may 
     be available to residents of the State for violations of this 
     chapter.
       ``(b) Construction.--Additional disclosures of a passenger 
     motor vehicle's title status or history, in addition to the 
     terms defined in section 33301, shall not be deemed 
     inconsistent with the provisions of this chapter. Such 
     disclosures shall include disclosures made on a certificate 
     of title. When used in connection with a passenger motor 
     vehicle (but not in connection with a passenger motor vehicle 
     part or part assembly separate from a passenger motor 
     vehicle), any definition of a term defined in section 33301 
     which is different than the definition in that section or any 
     use of any term listed in subsection (a), but not defined in 
     section 33301, shall be deemed inconsistent with the 
     provisions of this chapter. Nothing in this chapter shall 
     preclude a State from disclosing on a rebuilt salvage title 
     that a rebuilt salvage vehicle has passed a State safety 
     inspection which differed from the nationally uniform 
     criteria to be promulgated pursuant to section 33302(b)(8).

     ``Sec. 33306. Civil and criminal penalties

       ``(a) Prohibited Acts.--It shall be unlawful for any person 
     knowingly and willfully to--
       ``(1) make or cause to be made any false statement on an 
     application for a title (or duplicate title) for a passenger 
     motor vehicle or any disclosure made pursuant to section 
     33303;
       ``(2) fail to apply for a salvage title when such an 
     application is required;
       ``(3) alter, forge, or counterfeit a certificate of title 
     (or an assignment thereof), a nonrepairable vehicle 
     certificate, a certificate verifying an anti-theft inspection 
     or an anti-theft and safety inspection, a decal affixed to a 
     passenger motor vehicle pursuant to section 33302(b)(10)(I), 
     or any disclosure made pursuant to section 33303;
       ``(4) falsify the results of, or provide false information 
     in the course of, an inspection conducted pursuant to section 
     33302(b)(7) or (8);
       ``(5) offer to sell any salvage vehicle or nonrepairable 
     vehicle as a rebuilt salvage vehicle;
       ``(6) fail to make any disclosure required by section 
     33303, except when the person lacks actual knowledge of the 
     status of the rebuilt salvage vehicle;
       ``(7) violate a regulation prescribed under this chapter; 
     or
       ``(8) conspire to commit any of the acts enumerated in 
     paragraph (1), (2), (3), (4), (5), (6), or (7).
       ``(b) Civil Penalty.--Any person who commits an unlawful 
     act as provided in subsection (a) of this section shall be 
     fined a civil penalty of up to $2,000 per offense. A separate 
     violation occurs for each passenger motor vehicle involved in 
     the violation.
       ``(c) Criminal Penalty.--Any person who commits an unlawful 
     act as provided in subsection (a) of this section shall be 
     fined up to $50,000 or sentenced to up to 3 years 
     imprisonment or both, per offense.

     ``Sec. 33307. Actions by States

       ``(a) In General.--Whenever an attorney general of any 
     State has reason to believe that the interests of the 
     residents of that State have been or are being threatened or 
     adversely affected because any person has violated or is 
     violating section 33302 or 33303, the State, as parens 
     patriae, may bring a civil action on behalf of its residents 
     in an appropriate district court of the United States or the 
     appropriate State court to enjoin such violation or to 
     enforce the civil penalties under section 33306 or enforce 
     the criminal penalties under section 33306.
       ``(b) Notice.--The State shall serve prior written notice 
     of any civil or criminal action under subsection (a) or 
     (e)(2) upon the Attorney General and provide the Attorney 
     General with a copy of its complaint, except that if it is 
     not feasible for the State to provide such prior notice, the 
     State shall serve such notice immediately upon instituting 
     such action. Upon receiving a notice respecting a civil or 
     criminal action, the Attorney General shall have the right--
       ``(1) to intervene in such action;
       ``(2) upon so intervening, to be heard on all matters 
     arising therein; and
       ``(3) to file petitions for appeal.
       ``(c) Construction.--For purposes of bringing any civil or 
     criminal action under subsection (a), nothing in this Act 
     shall prevent an attorney general from exercising the powers 
     conferred on the attorney general by the laws of such State 
     to conduct investigations or to administer oaths or 
     affirmations or to compel the attendance of witnesses or 
     the production of documentary and other evidence.
       ``(d) Venue; Service of Process.--Any civil or criminal 
     action brought under subsection (a) in a district court of 
     the United States may be brought in the district in which the 
     defendant is found, is an inhabitant, or transacts business 
     or wherever venue is proper under section 1391 of title 28, 
     United States Code. Process in such an action may be served 
     in any district in which the defendant is an inhabitant or in 
     which the defendant may be found.
       ``(e) Actions by State Officials.--
       ``(1) Nothing contained in this section shall prohibit an 
     attorney general of a State or other authorized State 
     official from proceeding in State court on the basis of an 
     alleged violation of any civil or criminal statute of such 
     State.
       ``(2) In addition to actions brought by an attorney general 
     of a State under subsection (a), such an action may be 
     brought by officers of such State who are authorized by the 
     State to bring actions in such State on behalf of its 
     residents.''.
       (b) Conforming Amendment.--The table of chapters for part C 
     at the beginning of subtitle VI of title 49, United States 
     Code, is amended by inserting at the end the following new 
     item:

``333. Automobile safety and title disclosure requirements.....33301''.

     SEC. 3. AMENDMENTS TO CHAPTER 305.

       (a) Definitions.--
       (1) Amend section 30501(4) of title 49, United States Code, 
     to read as follows:
       ``(4) `nonrepairable vehicle', `salvage vehicle', and 
     `rebuilt salvage vehicle' have the same meanings given those 
     terms in section 33301 of this title.''.
       (2) Amend section 30501(5) of title 49, United States Code, 
     by striking ``junk automobiles'' and inserting 
     ``nonrepairable vehicles''.
       (3) Amend section 30501(8) by striking ``salvage 
     automobiles'' and inserting ``salvage vehicles''.
       (4) Strike paragraph (7) of section 30501 of title 49, 
     United States Code, and renumber the succeeding sections 
     accordingly.
       (b) National Motor Vehicle Title Information System.--
       (1) Amend section 30502(d)(3) of title 49, United States 
     Code, to read as follows:
       ``(3) whether an automobile known to be titled in a 
     particular State is or has been a nonrepairable vehicle, a 
     rebuilt salvage vehicle, or a salvage vehicle;''.
       (2) Amend section 30502(d)(5) of title 49, United States 
     Code, to read as follows:
       ``(5) whether an automobile bearing a known vehicle 
     identification number has been reported as a nonrepairable 
     vehicle, a rebuilt salvage vehicle, or a salvage vehicle 
     under section 30504 of this title.''.
       (c) State Participation.--Amend section 30503 of title 49, 
     United States Code, to read as follows:

     ``Sec. 30503. State participation

       ``(a) State Information.--Each State receiving funds 
     appropriated under subsection (c) shall make titling 
     information maintained by that State available for use in 
     operating the National Motor Vehicle Title Information System 
     established or designated under section 30502 of this title.
       ``(b) Verification Checks.--Each State receiving funds 
     appropriated under subsection (c) shall establish a practice 
     of performing an instant title verification check before 
     issuing a

[[Page S11393]]

     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''.


                           Amendment No. 3683

  (Purpose: To establish a uniform system for titling and registering 
      vehicles that are salvaged, irreparably damaged, or rebuilt)

  Mr. SESSIONS. Mr. President, Senator Gorton has a substitute 
amendment at the desk, and I ask for its consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Alabama [Mr. Sessions], for Mr. Gorton, 
     proposes an amendment numbered 3683.

  Mr. SESSIONS. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (The text of the amendment is printed in today's Record under 
``Amendments Submitted.'')


                Amendment No. 3684 To Amendment No. 3683

(Purpose: To modify certain terms to clarify that certain Federal laws 
requiring labeling and titling of salvage vehicles do not preempt more 
                         stringent State laws)

  Mr. SESSIONS. Mr. President, Senators Levin and Feinstein have an 
amendment to the amendment at the desk, and I ask for its 
consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Alabama [Mr. Sessions] for Mr. Levin, for 
     himself, Mrs. Feinstein and Mr. Bryan, proposes an amendment 
     numbered 3684 to amendment No. 3683.

  Mr. SESSIONS. I ask unanimous consent that reading of the amendment 
be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is 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' ''.
       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--

[[Page S11394]]

       ``(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.''.

  Mr. SESSIONS. Mr. President, I ask unanimous consent that the 
amendments be agreed to.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3684 and No. 3683, as amended) was agreed to.
  Mr. SESSIONS. I ask unanimous consent that the substitute amendment, 
as amended, be agreed to.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The substitute amendment, as amended, was agreed to.
  Mr. SESSIONS. I ask unanimous consent that the bill be considered 
read a third time and passed, as amended, the motion to reconsider be 
laid upon the table, and that any statements relating to the bill 
appear at the appropriate place in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 852), as amended, was considered read the third time and 
passed, as follows:

                                 S. 852

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National 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 
              Federal 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 multipurpose 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) Federal salvage vehicle.--The term `Federal 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 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 
     Federal 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) Federal salvage title.--The term `Federal salvage 
     title' means a passenger motor vehicle ownership document 
     issued by the State to the owner of a Federal salvage 
     vehicle. A Federal salvage title shall be conspicuously 
     labeled with the words `Federal salvage' across the front.
       ``(4) Federal rebuilt salvage vehicle.--The term `Federal 
     rebuilt salvage vehicle' means--
       ``(A) any passenger motor vehicle which was previously 
     issued a Federal 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 
     `Federal 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 Federal 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 `Federal 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) Federal rebuilt salvage title.--The term `Federal 
     rebuilt salvage title' means the passenger motor vehicle 
     ownership document issued by the State to the owner of a 
     Federal rebuilt salvage vehicle. A Federal rebuilt salvage 
     title shall be conspicuously labeled either with the words 
     `Federal Rebuilt Salvage Vehicle--Anti-theft and Safety 
     Inspections Passed' or `Federal Rebuilt Salvage Vehicle--
     Anti-theft Inspection Passed/No Safety Inspection Pursuant to 
     National Criteria', as appropriate, across the front.
       ``(6) Federal nonrepairable vehicle.--The term `Federal 
     nonrepairable vehicle' means any passenger motor vehicle, 
     other than a Federal 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 
     Federal nonrepairable vehicle certificate and shall never 
     again be titled or registered.
       ``(7) Federal nonrepairable vehicle certificate.--The term 
     `Federal nonrepairable vehicle certificate' means a passenger 
     motor vehicle ownership document issued by the State to the 
     owner of a Federal nonrepairable vehicle. A Federal 
     nonrepairable vehicle certificate shall be conspicuously 
     labeled with the words `Federal 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) Federal 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

[[Page S11395]]

     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--

       ``(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 federal 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 `Federal Flood' 
     pursuant to this chapter.
       ``(C) Effect of disclosure.--Disclosing a passenger motor 
     vehicle's status as a Federal 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, or that the vehicle was a `Federal salvage vehicle', 
     `Federal rebuilt salvage vehicle', `Federal flood vehicle', 
     or `Federal nonrepairable vehicle'.
       ``(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 Federal 
     salvage vehicle, a Federal nonrepairable vehicle, a Federal 
     rebuilt salvage vehicle, or a Federal flood 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).
       ``(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 Federal 
     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 Federal 
     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 Federal 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 Federal salvage vehicle or a Federal 
     nonrepairable vehicle, the passenger motor vehicle owner 
     shall apply for a Federal salvage title or Federal 
     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 Federal nonrepairable vehicle, the 
     insurance company or salvage facility or other agent on its 
     behalf shall apply for a Federal salvage title or Federal 
     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 Federal 
     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 
     Federal salvage vehicle or Federal nonrepairable vehicle, the 
     insurance company shall notify the owner of the owner's 
     obligation to apply for a Federal salvage title or Federal 
     nonrepairable vehicle certificate for the passenger motor 
     vehicle and notify the State passenger motor vehicle titling 
     office that a Federal salvage title or Federal 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 Federal salvage 
     vehicle or Federal nonrepairable vehicle, the lessor shall 
     apply for a Federal salvage title or Federal 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 Federal salvage 
     or Federal

[[Page S11396]]

     nonrepairable vehicle for which a Federal salvage title or 
     Federal nonrepairable vehicle certificate has not been 
     issued, shall apply for a Federal salvage title or Federal 
     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 Federal 
     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 
     Federal nonrepairable vehicle certificate for the vehicle 
     shall be surrendered to the State within 30 days. If the 
     second transferee on a Federal 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 Federal 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 Federal nonrepairable vehicle 
     certificate, the State of surrender shall notify the State of 
     origin of the surrender of the title or Federal nonrepairable 
     vehicle certificate and of the destruction of such vehicle.
       ``(H) When a Federal salvage title is issued, the State 
     records shall so note. No State shall permit the retitling 
     for registration purposes or issuance of a rebuilt Federal 
     salvage title for a passenger motor vehicle with a Federal 
     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 Federal 
     salvage title for a Federal salvage vehicle after a transfer 
     of ownership.
       ``(I) After a passenger motor vehicle titled with a Federal 
     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 Federal rebuilt salvage title or 
     vehicle registration, or both, by presenting to the State the 
     Federal 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 Federal rebuilt salvage 
     title or registration, or both, shall be issued to the owner. 
     When a Federal 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 words `Federal 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 Federal flood 
     vehicle.
       ``(13) Ownership of a passenger motor vehicle may be 
     transferred on a Federal salvage title, however, a passenger 
     motor vehicle for which a Federal 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 Federal rebuilt salvage title, and a 
     passenger motor vehicle for which a Federal 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 Federal nonrepairable vehicle 
     certificate. A passenger motor vehicle for which a Federal 
     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 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 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 Federal rebuilt salvage vehicles

       ``(a) Written Disclosure Requirements.--
       ``(1) General rule.--Under regulations prescribed by the 
     Secretary of Transportation, a person transferring ownership 
     of a Federal 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 Federal 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 Federal 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 Federal 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 anti-theft 
     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 
     Federal 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 Federal 
     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 `Federal salvage', 
     `Federal nonrepairable', or `Federal 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 
     Federal salvage vehicle, Federal rebuilt salvage vehicle, 
     Federal nonrepairable vehicle, or Federal 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

[[Page S11397]]

     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 Federal 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).
       ``(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.

     ``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;
       ``(2) fail to apply for a Federal salvage title when such 
     an application is required;
       ``(3) alter, forge, or counterfeit a certificate of title 
     (or an assignment thereof), a Federal 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 Federal salvage vehicle or Federal 
     nonrepairable vehicle as a Federal rebuilt 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 bringing 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 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) Section 30501(4) of title 49, United States Code, is 
     amended to read as follows:
       ``(4) `Federal nonrepairable vehicle', `Federal salvage 
     vehicle', and `Federal 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 inserting ``Federal nonrepairable 
     vehicles''.
       (3) Section 30501(8) of such title is amended by striking 
     ``salvage automobiles'' and inserting ``Federal salvage 
     vehicles''.
       (4) Section 30501 of such title is amended by striking 
     paragraph (7) and redesignating paragraphs (8) and (9) as 
     paragraphs (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--
       ``(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.''.
       (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 
     ``Federal nonrepairable vehicles, Federal rebuilt salvage 
     vehicles, or Federal salvage vehicles''.

[[Page S11398]]

     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 thereof 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.''.
       Passed the Senate October 2, 1998.

  Mr. LOTT. Mr. President, today, I want to talk to my colleagues about 
used cars. No, I don't want to sell one, I want to talk about how my 
colleagues have worked to protect every American who purchases a used 
car.
  Mr. President, the Title Branding Bill that I co-authored with 
Senator Ford passed this chamber by unanimous consent. This significant 
consumer protection legislation is long overdue. It will protect you 
and other consumers from unknowingly buying a severely damaged auto 
from dishonest rebuilders.
  Our bill will help eliminate the growing fraud of selling rebuilt 
vehicles that have been ``totaled'' and then sold to consumers who are 
never informed of the vehicle's damage history. This deceptive practice 
costs Americans nearly $4 billion annually. Today, Congress has helped 
solve this $4 billion problem.
  Mr. President, here is another statistic that scares me, and should 
also scare our colleagues. It is estimated that each year, one million 
cars are totaled, rebuilt, and put back on the roads. As you go home 
tonight try to imagine which car around you is one of the million put 
back this year.
  Clearly Senator Ford and I have addressed an issue that affects 
everyone--those who buy and drive used cars and those who share the 
roads with them. Remember, that's one million totaled cars per year 
that are structurally unsafe to drive. These previously totaled cars 
and trucks are put back on our roads here in DC, in my home state of 
Mississippi, and all across the nation.
  Mr. President, I am pleased that some states require disclosure on a 
vehicle's title to indicate its damage history, however, these 
requirements vary from state to state. As a result, unscrupulous re-
builders can take advantage of the inconsistencies in state titling 
procedures to obtain what are known as ``clean or washed'' titles. 
Adopting a uniform federal standard will eliminate this problem by 
closing the loopholes.
  In 1992, Congress directed the Secretary of Transportation to 
establish a taskforce to study the problems related to motor vehicle 
titling, and more importantly, the specific problems that have 
contributed to this serious consumer fraud. The taskforce included all 
stakeholders representing a wide array of interests. This diverse group 
provided specific recommendations that became the foundation upon which 
Senator Ford and I built S. 852, the National Salvage Motor Vehicle 
Consumer Protection Act. Mr. President, our goal is simple and direct--
to protect Americans on our roads with a uniform disclosure standard.
  Mr. President, contrary to what some people believe, our bill is not 
a federal mandate on the states. The bill does not restrict the ability 
of states to adopt higher ``damage disclosure'' requirements. Rather 
this bill provides the basic minimum federal standard while giving 
states the necessary flexibility to adopt more regulations if they so 
choose.
  As a result of our bipartisan effort, we have a bill that I firmly 
believe will benefit individuals, state motor vehicle administrators, 
automobile dealers, insurance companies and policy holders, consumer 
groups, salvage yards and many others involved in used car commerce.
  Our bill requires that if a salvage vehicle is rebuilt, it must have 
a theft inspection, as well as any required state safety inspection, 
and a branded title must be obtained before the vehicle is considered 
road-worthy. In addition, all rebuilt salvage vehicles must have a 
decal permanently affixed to the driver's door jamb, and its window, 
indicating that the vehicle has been rebuilt and specifying whether the 
vehicle has passed an approved safety inspection.
  In the future, a vehicle's title will disclose the damage history 
with a uniform minimum standard. A brand from one state will be carried 
forward to any new state in which the vehicle is registered. And, 
irreparably damaged vehicles' Vehicle Identification Numbers (VIN) will 
be tracked to help address automobile theft. I would also like to point 
out that while civil damages may be recovered by those who are victims 
of these fraudulent schemes, this bill will not prohibit currently 
permitted private rights of action.
  Mr. President, this legislation is a major step toward reducing motor 
vehicle titling fraud, improving consumer protection and disclosing 
valuable information to every American, their families and friends 
about a vehicle's damage history.
  Mr. President, as I mentioned earlier, this bill has been crafted in 
a bipartisan fashion. I want to thank my Commerce Committee colleague 
from Kentucky, the Minority Whip, Senator Ford, for co-authoring this 
legislation with me. This bill is a fitting tribute to protect 
consumers as my friend retires from the Senate this year.
  I also greatly appreciate the support and cosponsorship of 57 of my 
colleagues in the Senate, including the distinguished Minority Leader, 
Senator Daschle. I also appreciate the efforts of Senator McCain for 
his stewardship as Chairman of the Senate Commerce Committee. 
Additionally, I want to thank Senator Hollings for his input and 
contributions to this legislative approach. I also want to commend my 
friend and colleague from Washington State, Senator Gorton, for his 
diligent work over the past several months to improve this bill. 
Senators Levin and Feinstein also deserve recognition for their efforts 
to provide states with maximum flexibility.
  Mr. President, I also want to take this opportunity to congratulate 
all of my colleagues for passing this important nonpartisan measure by 
unanimous consent. It is another example of how this Congress can put 
aside partisan differences and deliver significant legislation for the 
American people.
  In this particular case, it demonstrates that my colleagues are 
serious about protecting American consumers from fraud. By promoting 
the use of a uniform disclosure standard, Congress will help put 
dishonest rebuilders out of business, save consumers and automobile 
dealers as much as $4 billion annually, and keep 1 million totaled 
vehicles from being put back on the road each year.
  I would like to take a moment and recognize a few people who made 
this legislative effort successful. The first is Mr. Al East of East 
Ford in Jackson, Mississippi. Mr. East, a past president of the 
Mississippi National Automobile Dealers Association, identified the 
problem facing consumers and dealers in my home state and across the 
country
  As an automobile dealer himself, Mr. East knows first hand the 
tremendous cost that title washing has on the used car industry. Al 
East's dedication to his clients, his community and to American 
automobile industry, and his work on the Board of Directors for the 
National Automobile Dealers Association has positively effected this 
much needed legislation.
  I also want to recognize Ruddy Dossett, of Dossett Big Four in 
Tupelo, Mississippi for his testimony before the Commerce Committee.
  Additionally, I would like to acknowledge the Congressional staff who 
labored on the details. They include Clay Williams and Steven Apicella 
from my office, Lance Bultena, Jim Drewery and Moses Boyd from the 
Commerce Committee, David Regan from Senator Ford's office, and Jeanne 
Bumpus, from Senator Gorton's office. Each made a significant and 
tangible contribution to the bill. Each had the used car consumer in 
mind as they dotted the i's and the t's.
  As you are aware Mr. President, the House of Representatives took up 
a different companion bill last year that passed by an overwhelming 
majority. I call upon the House to complete the legislative process by 
working with the Senate's conferees and by ultimately passing this 
important automobile titling legislation.
  Mr. President, I am very proud that members from both sides of the 
aisle are continuing to fulfill the peoples' business.

[[Page S11399]]

  By passing this title branding bill today, the Senate has taken an 
important step toward removing structurally unsafe cars and trucks that 
would otherwise share the roads with our friends, neighbors, and loved 
ones. On behalf of all American motorists, I thank all my colleagues 
for voting in favor of this important pro-consumer, anti-fraud, anti-
criminal legislation.
  Mr. SESSIONS. Mr. President, I yield the floor.

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