[Congressional Record Volume 144, Number 141 (Friday, October 9, 1998)]
[House]
[Pages H10295-H10302]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NATIONAL SALVAGE MOTOR VEHICLE CONSUMER PROTECTION ACT OF 1998
Mr. BLILEY. Mr. Speaker, I move to suspend the rules and pass the
Senate bill (S. 852) to establish nationally uniform requirements
regarding the titling and registration of salvage, nonrepairable, and
rebuilt vehicles, as amended.
The Clerk read 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
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) Salvage vehicle.--The term `salvage vehicle' means
any passenger motor vehicle, other than a flood vehicle or a
nonrepairable vehicle, which--
``(A) is a late model vehicle which has been wrecked,
destroyed, or damaged, to the extent that the total cost of
repairs to rebuild or reconstruct the passenger motor vehicle
to its condition immediately before it was wrecked,
destroyed, or damaged, and for legal operation on the roads
or highways, exceeds 75 percent of the retail value of the
passenger motor vehicle;
``(B) is a 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.
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 has established or establishes a salvage definition at
a lesser percentage than provided under subparagraph (A),
then that definition shall not be considered to be
inconsistent with the provisions of this chapter.
``(3) Salvage title.--The term `salvage title' means a
passenger motor vehicle ownership document issued by the
State to the owner of a salvage vehicle. A salvage title
shall be conspicuously labeled with the word `salvage' across
the front.
``(4) Rebuilt salvage vehicle.--The term `rebuilt salvage
vehicle' means--
``(A) any passenger motor vehicle which was previously
issued a salvage title, has passed State anti-theft
inspection, has been issued a certificate indicating that the
passenger motor vehicle has passed the required anti-theft
inspection, has passed the State safety inspection in those
States requiring a safety inspection pursuant to section
33302(b)(8), has been issued a certificate indicating that
the passenger motor vehicle has passed the required safety
inspection in those States requiring such a safety inspection
pursuant to section 33302(b)(8), and has a decal stating
`Rebuilt Salvage Vehicle--Anti-theft and Safety Inspections
Passed' affixed to the driver's door jamb; or
``(B) any passenger motor vehicle which was previously
issued a salvage title, has passed a State anti-theft
inspection, has been issued a certificate indicating that the
passenger motor vehicle has passed the required anti-theft
inspection, and has, affixed to the driver's door jamb, a
decal stating `Rebuilt Salvage Vehicle--Anti-theft Inspection
Passed/No Safety Inspection Pursuant to National Criteria' in
those States not requiring a safety inspection pursuant to
section 33302(b)(8).
``(5) Rebuilt salvage title.--The term `rebuilt salvage
title' means the passenger motor vehicle ownership document
issued by the State to the owner of a rebuilt salvage
vehicle. A rebuilt salvage title shall be conspicuously
labeled either with the words `Rebuilt Salvage Vehicle--Anti-
theft and Safety Inspections Passed' or `Rebuilt Salvage
Vehicle--Anti-theft Inspection Passed/No Safety Inspection
Pursuant to National Criteria,' as appropriate, across the
front.
``(6) Nonrepairable vehicle.--The term `nonrepairable
vehicle' means any passenger motor vehicle, other than a
flood vehicle, which is incapable of safe operation for use
on roads or highways and which has no resale value except as
a source of parts or scrap only or which the owner
irreversibly designates as a source of parts or scrap. Such
passenger motor vehicle shall be issued a nonrepairable
vehicle certificate and shall never again be titled or
registered.
``(7) Nonrepairable vehicle certificate.--The term
`nonrepairable vehicle certificate' means a passenger motor
vehicle ownership document issued by the State to the owner
of a nonrepairable vehicle. A nonrepairable vehicle
certificate shall be conspicuously labeled with the word
`Nonrepairable' across the front.
``(8) Secretary.--The term `Secretary' means the Secretary
of Transportation.
``(9) Late model vehicle.--The term `Late Model Vehicle'
means any passenger motor vehicle which--
``(A) has a manufacturer's model year designation of or
later than the year in which the vehicle was wrecked,
destroyed, or damaged, or any of the six preceding years; or
``(B) has a retail value of more than $7,500.
The Secretary shall adjust such retail value on an annual
basis in accordance with changes in the consumer price index.
``(10) Retail value.--The term `retail value' means the
actual cash value, fair market value, or retail value of a
passenger motor vehicle as--
``(A) set forth in a current edition of any nationally
recognized compilation (to include automated databases) of
retail values; or
``(B) determined pursuant to a market survey of comparable
vehicles with regard to condition and equipment.
``(11) Cost of repairs.--The term `cost of repairs' means
the estimated retail cost of parts needed to repair the
vehicle or, if the vehicle has been repaired, the actual
retail cost of the parts used in the repair, and the cost of
labor computed by using the hourly labor rate and time
allocations that are reasonable and customary in the
automobile repair industry in the community where the repairs
are to be performed.
``(12) Flood vehicle.--
``(A) In general.--The term `flood vehicle' means any
passenger motor vehicle that--
``(i) has been acquired by an insurance company as part of
a damage settlement due to water damage; or
``(ii) has been submerged in water to the point that rising
water has reached over the door sill, has entered the
passenger or trunk compartment, and has exposed any
electrical, computerized, or mechanical component to water,
except where a passenger motor vehicle which, pursuant to an
inspection conducted by an insurance adjuster or estimator, a
motor vehicle repairer or motor vehicle dealer in accordance
with inspection guidelines or procedures established by the
Secretary or the State, is determined--
``(I) to have no electrical, computerized or mechanical
components which were damaged by water; or
``(II) to have one or more electrical, computerized or
mechanical components which were damaged by water and where
all such damaged components have been repaired or replaced.
``(B) Inspection not required for all flood vehicles.--No
inspection under subparagraph (A) shall be required unless
the owner or insurer of the passenger motor vehicle is
seeking to avoid a brand of `Flood' pursuant to this chapter.
``(C) Effect of disclosure.--Disclosing a passenger motor
vehicle's status as a flood
[[Page H10296]]
vehicle or conducting an inspection pursuant to subparagraph
(A) shall not impose on any person any liability for damage
to (except in the case of damage caused by the inspector at
the time of the inspection) or reduced value of a passenger
motor vehicle.
``(b) Construction.--The definitions set forth in
subsection (a) only apply to vehicles in a State which are
wrecked, destroyed, or otherwise damaged on or after the date
on which such State complies with the requirements of this
chapter and the rule promulgated pursuant to section
33302(b).
``Sec. 33302. Passenger motor vehicle titling
``(a) Carry-Forward of State Information.--For any
passenger motor vehicle, the ownership of which is
transferred on or after the date that is 1 year after the
date of the enactment of the National Salvage Motor Vehicle
Consumer Protection Act of 1998, each State receiving funds,
either directly or indirectly, appropriated under section
30503(c) of this title after the date of the enactment of
that Act, in licensing such vehicle for use, shall disclose
in writing on the certificate of title whenever records
readily accessible to the State indicate that the passenger
motor vehicle was previously issued a title that bore any
word or symbol signifying that the vehicle was `salvage',
`older model salvage', `unrebuildable', `parts only',
`scrap', `junk', `nonrepairable', `reconstructed', `rebuilt',
or any other symbol or word of like kind, or that it has been
damaged by flood, and the name of the State that issued that
title.
``(b) Nationally Uniform Title Standards and Control
Methods.--Not later than 18 months after the date of the
enactment of the National Salvage Motor Vehicle Consumer
Protection Act of 1998, the Secretary shall by rule require
each State receiving funds, either directly or indirectly,
appropriated under section 30503(c) of this title after the
date of the enactment of that Act, in licensing any passenger
motor vehicle where ownership of such passenger motor vehicle
is transferred more than 2 years after publication of such
final rule, to apply uniform standards, procedures, and
methods for the issuance and control of titles for motor
vehicles and for information to be contained on such titles.
Such titling standards, control procedures, methods, and
information shall include the following requirements:
``(1) A State shall conspicuously indicate on the face of
the title or certificate for a passenger motor vehicle, as
applicable, if the passenger motor vehicle is a salvage
vehicle, a nonrepairable vehicle, a rebuilt salvage vehicle,
or a flood vehicle.
``(2) Such information concerning a passenger motor
vehicle's status shall be conveyed on any subsequent title,
including a duplicate or replacement title, for the passenger
motor vehicle issued by the original titling State or any
other State.
``(3) The title documents, the certificates, and decals
required by section 33301(4), and the issuing system shall
meet security standards minimizing the opportunities for
fraud.
``(4) The certificate of title shall include the passenger
motor vehicle make, model, body type, year, odometer
disclosure, and vehicle identification number.
``(5) The title documents shall maintain a uniform layout,
to be established in consultation with the States or an
organization representing them.
``(6) A passenger motor vehicle designated as nonrepairable
shall be issued a nonrepairable vehicle certificate and shall
not be retitled.
``(7) No rebuilt salvage title shall be issued to a salvage
vehicle unless, after the salvage vehicle is repaired or
rebuilt, it complies with the requirements for a rebuilt
salvage vehicle pursuant to section 33301(4). Any State
inspection program operating under this paragraph shall be
subject to continuing review by and approval of the
Secretary. Any such anti-theft inspection program shall
include the following:
``(A) A requirement that the owner of any passenger motor
vehicle submitting such vehicle for an anti-theft inspection
provide a completed document identifying the vehicle's damage
prior to being repaired, a list of replacement parts used to
repair the vehicle, and proof of ownership of such
replacement parts, as may be evidenced by bills of sale,
invoices, or, if such documents are not available, other
proof of ownership for the replacement parts. The owner shall
also include an affirmation that the information in the
declaration is complete and accurate and that, to the
knowledge of the declarant, no stolen parts were used during
the rebuilding.
``(B) A requirement to inspect the passenger motor vehicle
or any major part or any major replacement part required to
be marked under section 33102 for signs of such mark or
vehicle identification number being illegally altered,
defaced, or falsified. Any such passenger motor vehicle or
any such part having a mark or vehicle identification number
that has been illegally altered, defaced, or falsified, and
that cannot be identified as having been legally obtained
(through bills of sale, invoices, or other ownership
documentation), shall be contraband and subject to seizure.
The Secretary, in consultation with the Attorney General,
shall, as part of the rule required by this section,
establish procedures for dealing with those parts whose mark
or vehicle identification number is normally removed during
industry accepted remanufacturing or rebuilding practices,
which parts shall be deemed identified for purposes of this
section if they bear a conspicuous mark of a type, and
applied in such a manner, as designated by the Secretary,
indicating that they have been rebuilt or remanufactured.
With respect to any vehicle part, the Secretary's rule, as
required by this section, shall acknowledge that a mark or
vehicle identification number on such part may be legally
removed or altered as provided for in section 511 of title
18, United States Code, and shall direct inspectors to adopt
such procedures as may be necessary to prevent the seizure of
a part from which the mark or vehicle identification number
has been legally removed or altered.
``(8) Any safety inspection for a rebuilt salvage vehicle
performed pursuant to this chapter shall be performed in
accordance with nationally uniform safety inspection criteria
established by the Secretary. A State may determine whether
to conduct such safety inspection itself, contract with one
or more third parties, or permit self-inspection by a person
licensed by such State in an automotive-related business, all
subject to criteria promulgated by the Secretary hereunder.
Any State inspection program operating under this paragraph
shall be subject to continuing review by and approval of the
Secretary. A State requiring such safety inspection may
require the payment of a fee for the privilege of such
inspection or the processing thereof.
``(9) No duplicate or replacement title shall be issued
unless the word `duplicate' is clearly marked on the face
thereof and unless the procedures for such issuance are
substantially consistent with Recommendation three of the
Motor Vehicle Titling, Registration and Salvage Advisory
Committee.
``(10) A State shall employ the following titling and
control methods:
``(A) If an insurance company is not involved in a damage
settlement involving a salvage vehicle or a nonrepairable
vehicle, the passenger motor vehicle owner shall apply for a
salvage title or nonrepairable vehicle certificate, whichever
is applicable, before the passenger motor vehicle is repaired
or the ownership of the passenger motor vehicle is
transferred, but in any event within 30 days after the
passenger motor vehicle is damaged.
``(B) If an insurance company, pursuant to a damage
settlement, acquires ownership of a passenger motor vehicle
that has incurred damage requiring the vehicle to be titled
as a salvage vehicle or nonrepairable vehicle, the insurance
company or salvage facility or other agent on its behalf
shall apply for a salvage title or nonrepairable vehicle
certificate within 30 days after the title is properly
assigned by the owner to the insurance company and delivered
to the insurance company or salvage facility or other agent
on its behalf with all liens released.
``(C) If an insurance company does not assume ownership of
an insured's or claimant's passenger motor vehicle that has
incurred damage requiring the vehicle to be titled as a
salvage vehicle or nonrepairable vehicle, the insurance
company shall notify the owner of the owner's obligation to
apply for a salvage title or nonrepairable vehicle
certificate for the passenger motor vehicle and notify the
State passenger motor vehicle titling office that a salvage
title or nonrepairable vehicle certificate should be issued
for the vehicle, except to the extent such notification is
prohibited by State insurance law.
``(D) If a leased passenger motor vehicle incurs damage
requiring the vehicle to be titled as a salvage vehicle or
nonrepairable vehicle, the lessor shall apply for a salvage
title or nonrepairable vehicle certificate within 21 days
after being notified by the lessee that the vehicle has been
so damaged, except when an insurance company, pursuant to a
damage settlement, acquires ownership of the vehicle. The
lessee of such vehicle shall inform the lessor that the
leased vehicle has been so damaged within 30 days after the
occurrence of the damage.
``(E) Any person acquiring ownership of a damaged passenger
motor vehicle that meets the definition of a salvage or
nonrepairable vehicle for which a salvage title or
nonrepairable vehicle certificate has not been issued, shall
apply for a salvage title or nonrepairable vehicle
certificate, whichever is applicable. This application shall
be made before the vehicle is further transferred, but in any
event, within 30 days after ownership is acquired. The
requirements of this subparagraph shall not apply to any
scrap metal processor which acquires a passenger motor
vehicle for the sole purpose of processing it into prepared
grades of scrap and which so processes such vehicle.
``(F) State records shall note when a nonrepairable vehicle
certificate is issued. No State shall issue a nonrepairable
vehicle certificate after 2 transfers of ownership.
``(G) When a passenger motor vehicle has been flattened,
baled, or shredded, whichever 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
[[Page H10297]]
certificate, the State of surrender shall notify the State of
origin of the surrender of the title or nonrepairable vehicle
certificate and of the destruction of such vehicle.
``(H) When a salvage title is issued, the State records
shall so note. No State shall permit the retitling for
registration purposes or issuance of a rebuilt salvage title
for a passenger motor vehicle with a salvage title without a
certificate of inspection, which complies with the security
and guideline standards established by the Secretary pursuant
to paragraphs (3), (7), and (8), as applicable, indicating
that the vehicle has passed the inspections required by the
State. This subparagraph does not preclude the issuance of a
new salvage title for a salvage vehicle after a transfer of
ownership.
``(I) After a passenger motor vehicle titled with a salvage
title has passed the inspections required by the State, the
inspection official will affix the secure decal required
pursuant to section 33301(4) to the driver's door jamb of the
vehicle and issue to the owner of the vehicle a certificate
indicating that the passenger motor vehicle has passed the
inspections required by the State. The decal shall comply
with the permanency requirements established by the
Secretary.
``(J) The owner of a passenger motor vehicle titled with a
salvage title may obtain a rebuilt salvage title or vehicle
registration, or both, by presenting to the State the salvage
title, properly assigned, if applicable, along with the
certificate that the vehicle has passed the inspections
required by the State. With such proper documentation and
upon request, a rebuilt salvage title or registration, or
both, shall be issued to the owner. When a rebuilt salvage
title is issued, the State records shall so note.
``(11) A seller of a passenger motor vehicle that becomes a
flood vehicle shall, prior to the time of transfer of
ownership of the vehicle, give the transferee a written
notice that the vehicle has been damaged by flood, provided
such person has actual knowledge that such vehicle has been
damaged by flood. At the time of the next title application
for the vehicle, disclosure of the flood status shall be
provided to the applicable State with the properly assigned
title and the word `Flood' shall be conspicuously labeled
across the front of the new title.
``(12) In the case of a leased passenger motor vehicle, the
lessee, within 15 days of the occurrence of the event that
caused the vehicle to become a flood vehicle, shall give the
lessor written disclosure that the vehicle is a flood
vehicle.
``(13) Ownership of a passenger motor vehicle may be
transferred on a salvage title, however, a passenger motor
vehicle for which a salvage title has been issued shall not
be registered for use on the roads or highways unless it has
been issued a rebuilt salvage title.
``(14) Ownership of a passenger motor vehicle may be
transferred on a rebuilt salvage title, and a passenger motor
vehicle for which a rebuilt salvage title has been issued
may, if permitted by State law, be registered for use on the
roads and highways.
``(15) Ownership of a passenger motor vehicle may only be
transferred 2 times on a nonrepairable vehicle certificate. A
passenger motor vehicle 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 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 rebuilt salvage vehicles
``(a) Written Disclosure Requirements.--
``(1) General rule.--Under regulations prescribed by the
Secretary of Transportation, a person transferring ownership
of a rebuilt salvage vehicle shall, prior to the time of
transfer of ownership of the vehicle, give the transferee a
written disclosure that the vehicle is a rebuilt salvage
vehicle when such person has actual knowledge of the status
of such vehicle.
``(2) False statement.--A person making a written
disclosure required by a regulation prescribed under
paragraph (1) of this subsection may not make a false
statement in the disclosure.
``(3) Completeness.--A person acquiring a rebuilt salvage
vehicle for resale may accept a disclosure under paragraph
(1) only if it is complete.
``(4) Regulations.--The regulations prescribed by the
Secretary shall provide the way in which information is
disclosed and retained under paragraph (1).
``(b) Label Requirements.--
``(1) In general.--The Secretary shall by regulation
require that a label be affixed to the windshield or window
of a rebuilt salvage vehicle before its first sale at retail
containing such information regarding that vehicle as the
Secretary may require. The label shall be affixed by the
individual who conducts the applicable State antitheft
inspection in a participating State.
``(2) Removal, alteration, or illegibility of required
label.--No person shall willfully remove, alter, or render
illegible any label required by paragraph (1) affixed to a
rebuilt salvage vehicle before the vehicle is delivered to
the actual custody and possession of the first retail
purchaser.
``(c) Limitation.--The requirements of subsections (a) and
(b) shall only apply to a transfer of ownership of a rebuilt
salvage vehicle where such transfer occurs in a State which,
at the time of the transfer, is complying with subsections
(a) and (b) of section 33302.
``Sec. 33304. Report on funding
``The Secretary shall, contemporaneously with the issuance
of a final rule pursuant to section 33302(b), report to
appropriate committees of Congress whether the costs to the
States of compliance with such rule can be met by user fees
for issuance of titles, issuance of registrations, issuance
of duplicate titles, inspection of rebuilt vehicles, or for
the State services, or by earmarking any moneys collected
through law enforcement action to enforce requirements
established by such rule.
``Sec. 33305. Effect on State law
``(a) In General.--Unless a State is in compliance with
subsection (c) of section 33302, effective on the date the
rule promulgated pursuant to section 33302 becomes effective,
the provisions of this chapter shall preempt all State laws
in States receiving funds, either directly or indirectly,
appropriated under section 30503(c) of this title after the
date of the enactment of the National Salvage Motor Vehicle
Consumer Protection Act of 1998, to the extent they are
inconsistent with the provisions of this chapter or the rule
promulgated pursuant to section 33302, which--
``(1) set forth the form of the passenger motor vehicle
title;
``(2) define, in connection with a passenger motor vehicle
(but not in connection with a passenger motor vehicle part or
part assembly separate from a passenger motor vehicle), any
term defined in section 33301 or the terms `salvage',
`nonrepairable', or `flood', or apply any of those terms to
any passenger motor vehicle (but not to a passenger motor
vehicle part or part assembly separate from a passenger motor
vehicle); or
``(3) set forth titling, recordkeeping, anti-theft
inspection, or control procedures in connection with any
salvage vehicle, rebuilt salvage vehicle, nonrepairable
vehicle, or flood vehicle.
``(b) Exceptions.--
``(1) Passenger motor vehicle; older model salvage.--
Subsection (a)(2) does not preempt State use of the term--
``(A) `passenger motor vehicle' in statutes not related to
titling, recordkeeping, anti-theft inspection, or control
procedures in connection with any salvage vehicle, rebuilt
salvage vehicle, nonrepairable vehicle, or flood vehicle ; or
``(B) `older model salvage' to designate a wrecked,
destroyed, or damaged vehicle that is older than a late model
vehicle.
``(2) Consumer law actions.--Nothing in this chapter may be
construed to affect any private right of action under State
law.
``(c) Construction.--Additional disclosures of a passenger
motor vehicle's title status or history, in addition to the
terms defined in section 33301, shall not be deemed
inconsistent with the provisions of this chapter. Such
disclosures shall include disclosures made on a certificate
of title. When used in connection with a passenger motor
vehicle (but not in connection with a passenger motor vehicle
part or part assembly separate from a passenger motor
vehicle), any definition of a term defined in section 33301
which is different than the definition in that section or any
use of any term listed in subsection (a), but not defined in
section 33301, shall be deemed inconsistent with the
provisions of this chapter. Nothing in this chapter shall
preclude a State from disclosing on a rebuilt national
salvage title that a rebuilt national salvage vehicle has
passed a State safety inspection which differed from the
nationally uniform criteria to be promulgated pursuant to
section 33302(b)(8).
``Sec. 33306. Civil penalties
``(a) Prohibited Acts.--It is unlawful for any person
knowingly to--
``(1) make or cause to be made any false statement on an
application for a title (or duplicate title) for a passenger
motor vehicle or any disclosure made pursuant to section
33303;
``(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;
[[Page H10298]]
``(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) `nonrepairable vehicle', `salvage vehicle', and
`rebuilt salvage vehicle' have the same meanings given those
terms in section 33301 of this title.''.
(2) Section 30501(5) of such title is amended by striking
``junk automobiles'' and inserting ``nonrepairable
vehicles''.
(3) Section 30501(8) of such title is amended by striking
``salvage automobiles'' and inserting ``salvage vehicles''.
(4) Section 30501 of such title is amended by striking
paragraph (7) and redesignating paragraphs (8) and (9) 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 is or has been a nonrepairable vehicle, a
rebuilt salvage vehicle, or a salvage vehicle;''.
(2) Section 30502(d)(5) of such title is amended to read as
follows:
``(5) whether an automobile bearing a known vehicle
identification number has been reported as a nonrepairable
vehicle, a rebuilt salvage vehicle, or a salvage vehicle
under section 30504 of this title.''.
(c) State Participation.--Section 30503 of title 49, United
States Code, is amended to read as follows:
``Sec. 30503. State participation
``(a) State Information.--Each State receiving funds
appropriated under subsection (c) shall make titling
information maintained by that State available for use in
operating the National Motor Vehicle Title Information System
established or designated under section 30502 of this title.
``(b) Verification Checks.--Each State receiving funds
appropriated under subsection (c) shall establish a practice
of performing an instant title verification check before
issuing a certificate of title to an individual or entity
claiming to have purchased an automobile from an individual
or entity in another State. The check shall consist of--
``(1) communicating to the operator--
``(A) the vehicle identification number of the automobile
for which the certificate of title is sought;
``(B) the name of the State that issued the most recent
certificate of title for the automobile; and
``(C) the name of the individual or entity to whom the
certificate of title was issued; and
``(2) giving the operator an opportunity to communicate to
the participating State the results of a search of the
information.
``(c) Grants to States.--
``(1) In cooperation with the States and not later than
January 1, 1994, the Attorney General shall--
``(A) conduct a review of systems used by the States to
compile and maintain information about the titling of
automobiles; and
``(B) determine for each State the cost of making titling
information maintained by that State available to the
operator to meet the requirements of section 30502(d) of this
title.
``(2) The Attorney General may make reasonable and
necessary grants to participating States to be used in making
titling information maintained by those States available to
the operator.
``(d) Report to Congress.--Not later than October 1, 1998,
the Attorney General shall report to Congress on which States
have met the requirements of this section. If a State has not
met the requirements, the Attorney General shall describe the
impediments that have resulted in the State's failure to meet
the requirements.''.
(d) Reporting Requirements.--Section 30504 of title 49,
United States Code, is amended by striking ``junk automobiles
or salvage automobiles'' every place it appears and inserting
``nonrepairable vehicles, rebuilt salvage vehicles, or
salvage vehicles''.
SEC. 4. DEALER NOTIFICATION PROGRAM FOR PROHIBITED SALE OF
NONQUALIFYING VEHICLES FOR USE AS SCHOOLBUSES.
Section 30112 of title 49, United States Code, is amended
by adding at the end 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.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Virginia (Mr. Bliley) and the gentleman from Massachusetts (Mr. Markey)
each will control 20 minutes.
The Chair recognizes the gentleman from Virginia (Mr. Bliley).
General Leave
Mr. BLILEY. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
on the Senate bill, S. 852, and to include extraneous material.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Virginia?
There was no objection.
Mr. BLILEY. Mr. Speaker, I yield myself 5 minutes.
Today I rise in strong support of the bill S. 852, the National
Salvage Motor Vehicle Consumer Protection Act. As many of my colleagues
know, this bill is similar to legislation passed by the House at the
end of the first session of this Congress, H.R. 1839, introduced by the
gentleman from Washington (Mr. White), a member of the Committee on
Commerce.
As many of my colleagues know, I first became interested in this
subject when my constituent and longtime friend, Dick Strauss, brought
to my attention the problem of the hodgepodge of State definitions for
salvage and rebuilt automobiles. While most automobile dealers make
every effort to ensure that used cars on their lots are of the highest
quality, increasingly sophisticated scam artists are using the
differences in State automobile titling schemes to swindle consumers,
dealers and insurers alike.
Both H.R. 1839 and this bill would require that States receiving
certain Federal grants must either adopt uniform definitions and
procedures for titling and salvaging rebuilt automobiles
[[Page H10299]]
or must inform their consumers that they do not meet Federal standards.
Neither bill forces any State to change its standards, and the bill
before the House gives States even more protection for standards that
they view as more protective.
While the bill was in the Senate, Senator Lott and Senator Gorton
made a number of worthwhile changes to the bill. Among other
provisions, S. 852 lowers the threshold for ``salvage vehicles'' from
80 percent to 75 percent; it allows States to use the term ``older
model salvage vehicle'' to cover certain vehicles that might not be
covered by the Federal definition; and it permits the chief law
enforcement officer of a State to seek restitution for aggrieved
customers. All of these changes are improvements to the bill and are
contained in the legislation before the House today.
However, this legislation came back from the Senate with one
provision that we could not accept, because it would render the purpose
of the bill completely meaningless. In an amendment offered by several
Members of the other body, the system of uniform definitions proposed
by the bill was put aside, and the Federal definitions were designed as
an ``overlay'' on top of the already confusing system of State
definitions. Under the language that passed the Senate, the consumer
could be confronted with two definitions of ``salvage'' that contradict
one another, a Federal definition and a separate State definition.
That amendment represents a huge step backwards for consumers. The
bill, as it passed the Senate, would only result in more confusion for
consumers and a greater opportunity for criminals to further abuse the
system of titling salvage vehicles. In a recent letter from the State
motor vehicle officials, the officials charged with implementing the
law, they described this language as ``unworkable'' and ``serving no
useful purpose, while undercutting the important goals of the bill.''
We cannot, in good conscience, accept this language.
However, that amendment was rooted in a legitimate concern for
consumers in States that would otherwise have stricter standards for
defining salvage vehicles. In order to address this concern, we have
added language which will permit States to use any percentage
definition for salvage vehicle that the State deems appropriate. I
believe that this will go a long way in addressing the concerns raised
by critics of this legislation.
Mr. Speaker, this legislation protects consumers by striking a
balance. It vastly improves the status quo by giving consumers,
dealers, and State officials notice about the status of vehicles that
have been totaled by accident or flood. Today, the patchwork of 50
different State laws ensures that no State can adequately protect its
own citizens. This legislation changes that situation for the better,
and I strongly support its passage.
In closing, I want to recognize the gentleman from Washington (Mr.
White) for all his hard work in moving this legislation in both the
104th and the 105th Congresses. The majority leader of the other body
also deserves high praise for his dedication to this issue.
I urge all my colleagues to support this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise with significant concerns about the bill before
us this afternoon. S. 852, authored by Senator Lott, is the companion
bill to H.R. 1839, introduced by the gentleman from Washington (Mr.
White). I opposed this bill when it originally left the House, and I
oppose it again today.
Mr. Speaker, this legislation ought to be crafted in a way that
establishes a high level of consumer protection, while allowing States
to provide additional protections for their citizens. This bill does
not achieve that goal, and it has a number of problems.
The sale of rebuilt, wrecked or totaled vehicles, and just so those
who may be watching or listening to this debate understand what we are
talking about, it is that category of cars that have been totaled. That
is what we call it in Boston. I do not know what other parts of the
country may call it when a car is in such a wreck that it essentially
costs more money to repair it than it does to junk it, but in Boston we
call it a totaled car. Well, that is what this legislation deals with,
that category of cars that have been totaled.
We believe that there is substantial risk of death, or disability, or
personal injury or financial ruin to large numbers of people, and that
this bill ought not to pass. It is not that an effort has not been
undertaken or that has not consumed a huge amount of time. It has. It
is that, at the end of the day, the bill does not achieve the goal
which was sought.
For example, I continue to have concerns that the different
definition in the bill of a late-model vehicle is overly narrow. This
legislation would exempt sellers of cars of models over 6 years old and
worth less than $7,500 from having to disclose accident damage. The
Department of Transportation tells us that the average car in America
is 8 years old. And so the fleet of automobiles that is going to be
potentially exempted under the provision of this bill is huge.
It would seem to me that even if one wanted to preempt the States,
that one would at least want to cover the average car on the road, at
least cars that are 8 years old. Now, it seems, I think to a lot of
people, somewhat of a surprise that the average car is 8 years of age,
but that is the reality. These cars are the ones most likely to be
those on used car lots and most likely to be safety threats to our
citizens.
Although this legislation gives States some flexibility in limited
fashion to change the percentage, I am still concerned about it,
because it would have the effect of preempting vital consumer
protection laws for all used car buyers at each State that opts into
the Federal titling plan.
The bill also requests the Department of Transportation to issue
national regulations and standards relating to title granting, but it
does not contain any money to help the States to implement it. There is
no adequate enforcement provision. No private right of action is
contained in the bill. An individual cannot sue themselves. With all
the pressing cases that they have, relying upon United States attorneys
to take a used car dealer to court for allegedly misbranding a title of
any car is a false hope for any consumer in our country.
{time} 1530
We need a private right of action, so that if someone misbrands a
title or omits vital information, a consumer can then take them to
court to seek redress.
When this motor vehicle salvage bill passed the House earlier in this
Congress, I expressed the hope that we could improve the bill authored
by the gentleman from Washington (Mr. White) to make it satisfactory
from a consumer perspective as the process moved forward in the Senate
and in our conversations with the other body, and the Senate actually
approved this motor vehicle salvage bill recently, adopting a pro-
consumer amendment offered by Senators Levin and Feinstein. This
amendment ensures that States could go further and protect consumers
even more. Unfortunately, the very changes that improved the bill in
the Senate and started to make it consumer friendly are being deleted
from the bill before us today. Rather than working with those of us who
had problems with the bill, this bill is being brought to the floor
with these consumer protections and State authority provisions being
summarily dropped. In short, Members are being asked to pass a bill to
protect consumers that lacks the support of the national consumer
groups and the State attorneys general.
In its current form, this bill is opposed by the Consumer Federation
of America, opposed by the Center for Auto Safety, opposed by Public
Citizen, opposed by the National Association of Consumer Advocates,
opposed by U.S. PIRG, opposed by the Consumers Union. How on earth can
this bill be characterized as a pro-consumer bill if all the large,
national consumer groups strongly oppose its passage? I urge Members to
oppose this bill, Mr. Speaker.
Mr. Speaker, I reserve the balance of my time.
Mr. BLILEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the gentleman from Virginia would like to ask the
gentleman from Massachusetts if totaled,
[[Page H10300]]
is that what happened to the BC Eagles last night against the Virginia
Tech Gobblers?
Mr. MARKEY. If the gentleman will yield, Mr. Speaker, exactly. The
Virginia Tech football team totaled the BC football team, in the same
way that the Cleveland Indians totaled the Red Sox last week. I do not
think either a football team or a baseball team ought to be allowed
back out on the field without some kind of warning to fans in Boston
that they could be engaging in activity very dangerous to their psychic
health.
Mr. BLILEY. I thank the gentleman for his response.
Mr. Speaker, I yield 2 minutes to the gentleman from Washington (Mr.
White), the chief author of this bill.
Mr. WHITE. Mr. Speaker, I thank the gentleman for yielding time, and
I am happy to know that the gentleman from Massachusetts, even if he
does not support this bill for a totaled car, he would support it for a
totaled athletic team. I appreciate that very much.
Mr. Speaker, this is a good bill that does a very simple thing. It
simply requires the States to disclose to consumers if the car they are
buying has been totaled. Now, this bill is also proof that nothing is
easy to get done in this particular institution, because with massive
support from the House, we had a vote of 336-72 when this was passed
almost a year ago, and with massive support even 2 years prior to that
in the last Congress, this bill has still been tied up in the Senate
until just recently, for almost a 3-year period of time.
They finally sent it back to us just this week with some minor
changes except in one case. As the chairman described to us earlier,
they added an amendment that would allow for dual definitions of what a
salvage vehicle is. I agree with the chairman wholeheartedly that that
would just lead to confusion, it would be a big mistake, and so I
totally support his amendment to take those dual definitions out and
simplify this bill so that it accomplishes the purpose that we were
trying to accomplish. But with the manager's amendment, this is a good
bill. It deserves our support, just as it did before.
If I might just respond to a couple of quick things that the
gentleman from Massachusetts said.
Number one, I want to assure him that in Seattle we refer to these
cars in a very similar way that he does. We refer to them as a totaled
car. I understand in Boston they are referred to as a totaled ``caah''
but it is a very similar thing. I think we are dealing with the same
issue.
I also want to remind the gentleman, as we discussed when we talked
about this bill earlier, the problem with older cars is one of striking
a balance. If a car is too old and it sustains damage, for example, to
the sunroof, you might find yourself in a situation where a damaged
sunroof totals more than 75 percent of the value of the car. We do not
want a car with a damaged sunroof to be considered totaled. So we tried
to find a balance where older cars were included but only to a point
where minor cosmetic damage would not require them to be considered a
salvage vehicle.
With that, Mr. Speaker, I would simply urge my colleagues to vote in
favor of this bill.
Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, in Boston when a car has been totaled we assume that car
is not going to go back out on the road again. Now, in Washington State
they have a different relationship with these vehicles. They try to
rehabilitate them, put that chassis back on top of the wheels again and
get it back out on the road. We appreciate that. It is something that
would not raise that big of an issue if all we were talking about is
the sunroof that was being repaired, or if it was the internal
upholstery that needed to be redone. But while it may include those
repairs in the definition of being totaled, meaning that it would cost
that much money in order to repair something and it exceeded the cost
of the vehicle in its present condition, it could also include the fact
that the steering wheel had come off in someone's hands as they were
trying to turn left and the vehicle went right. It could mean that the
entire chassis had been knocked off of the wheels, the axles of the
car. It could mean a lot of other things. And under this legislation,
the consumer would not be told that the wheel had come off in the last
owner's hands, that the chassis had been knocked off of the axles and
now been put back on, very carefully, but without notifying the
subsequent purchaser that there might have been a problem.
Now, you say what are we talking about? Well, since the average car
is 8 years old, I went to Kelley's blue book on the Internet to find
some cars that will not get any protection at all. Let us look at what
we can find in the blue book of Kelley's on the Internet.
Here we go. We got a 1990 Ford Escort LX hatchback, 2D, only 20,000
miles, air conditioning, power steering, only cost you $2125. You can
buy this car right now, a 1990 car. Anyone interested? No warning. We
do not know what has ever happened to that car, if it was totaled.
How about a 1990 Chevrolet Camaro RS, convertible, 2D. If Congress
does not get a raise, a lot of Members are going to be looking at cars
like this. 75,000 miles, air conditioning, power steering, power
windows, tilt wheel, AM-FM stereo/cassette, $5280. Do not know where it
has been, do not know if it got totaled and if it did get totaled, they
are not telling you. They are going to tell you that they just put in
some nice upholstery. ``Doesn't it look nice? We got a nice shine on
the outside of the car.''
How about this one: 1990 BMW. Always wanted to get one of those
foreign jobs? Here it is. A 325I sedan, 2D, air conditioning, power
steering; $7,075. Been totaled, but you are not going to be told that
when you buy it. You buy it as is. They are not even going to tell you
it was totaled.
How about a 1990 Cadillac De Ville, in the mind's eye of every
American the dream car. It is $6825, air conditioning, power steering,
consumer-rated, condition excellent. Excellent. Who rated it? Have they
been told that it was totaled? Do not have to tell anyone it has been
totaled.
I could go on and on, right down to I am sure a car that a lot of
people would be interested in, the 1990 Jaguar XJ6 sedan, $5675. 1990.
Air conditioning, power steering. Totaled. But they do not have to tell
you that when you buy it. They are telling you this is a beauty. ``Want
to take it for a spin around the block? Great. No, you don't have to
take it out on the highway. I promise you. Great car.''
Well, ladies and gentlemen, this bill does not give the consumer the
information, the knowledge which they need. I think we should reject it
at this time and try to improve it next year. We are going to be trying
to do a lot of that in the next session of Congress. I would hope at
this point that all Members listening understand the real danger to
consumers, to drivers on the road, not only those in the car but those
in other cars on the road that the driver of the vehicle does not
understand the potentially dangerous conditions under which he is
operating.
Mr. Speaker, I reserve the balance of my time.
Mr. BLILEY. Mr. Speaker, I yield 3 minutes to the gentleman from
California (Mr. Thomas).
Mr. THOMAS. I thank the gentleman for yielding time.
Actually, I was off doing other work; but in listening to this debate
on the floor, I thought that perhaps someone ought to come to the floor
who as an avocation understands something about cars, since this
discussion was fairly obvious to anyone who understands anything about
cars that some of the folks who were carrying on the discussion knew
nothing about them.
First of all, in today's passenger market if, in fact, you have a
separate chassis you are almost always talking about a truck, you are
not talking about a car. Cars tend to be unibody or just have a
subassembly which is up front. The gentleman used an example of a 1990
BMW 325. That is probably a 325-I, which is their small car, that at
7,075 is a typical price for that car.
I would tell the gentleman if that car, according to an insurance
company, was totaled, if you wanted to talk about the front end, your
radiator would be about $300, your subsuspension, just the lower A arm
is $194. I know. I just bought one about 2 months ago for my daughter's
car. You begin adding up the bumper pieces and the rest, you will have
spent $3,000 to $4,000 on a relatively minor 20-mile-per-hour wreck.
[[Page H10301]]
The description of the gentleman on the automobiles, and I will tell
you, on an XJ6 1990, one of the problems with those automobiles,
Jaguars, was that you would almost spend that much tuning the car up,
let alone dealing with any of the mechanical problems with the car.
The point is, the gentleman's examples simply do not exist in the
real world where economics control what you do and what you do not do.
I am sympathetic with the gentleman indicating that when a car has been
totaled, people ought to be notified. We need to deal with a
reasonableness notification. I believe that the current limits of
$7,500 and the model year makes some sense.
However, in the bill on page 10, if, in fact, the State wants to go
beyond that and deal with an older model that has been salvaged, you
can certainly do that. But if we are going to debate this, one of the
things we ought not to do is to, with a considerable amount of time
being consumed, let other people know exactly what we do not know about
the subject matter that we are discussing.
Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume. I
appreciate the comments of the gentleman from California. He is without
question a quintessential used car salesman.
I appreciate the knowledge that he has about this subject, but the
lecturing tone that he gives on this subject, well, is one where every
American feels as though they are an expert on automobiles, and the
younger you are, the more you feel as though you are an expert on used
cars.
I personally as a former owner of at least eight or 10 used cars
stand here as much of an expert as anyone may in terms of the
representations that were made by the previous owner to me. Now, you
might say that it was kind of foolish of me to put down money for cars
that ultimately I wound up paying in repair bills at least triple the
cost of that car, but I think many Americans share the same
circumstances that I have.
{time} 1545
I know it is not rational, I know that is not the way the real world
should work, and I wish I did not meet some of the people from whom I
got their used cars, but nonetheless they are out there, and these used
car salesmen with a straight face try to convince people that they are
doing them a favor. And all we are saying here is that there is a
certain caveat emptor that should exist in the marketplace when it
comes to cars that have not been totaled, but if they have been
totaled, then there is an additional safety risk. And to the extent
that public health and safety is at risk, then people should be told
that that additional component is included in the price of the
automobile. That is all we are really saying.
Mr. Speaker, I again reserve the balance of my time.
Mr. BLILEY. Mr. Speaker, I yield such time as he may consume to the
gentleman from Louisiana (Mr. Tauzin).
Mr. TAUZIN. Mr. Speaker, I want to thank the chairman of our
committee, the gentleman from Virginia (Mr. Bliley), who has led us so
well this season, and to commend my friend, the gentleman from
Washington (Mr. White), for this legislation. I must tell my friend
from Massachusetts that whenever we mix politicians and used car
salesmen, we are certainly begging for a lot of trouble here. It is
like Thunderbirds of a feather flying together, I suppose.
But this is a good bill. This bill, the National Salvage Motor
Vehicle Consumer Protection Act, may not indeed rise to the level of
importance of health care or telecommunications policy, but it is very
important legislation. The bill simply protects consumers, and it
protects legitimate automobile dealers, and it protects others from the
fraud artists who would try to pawn off stolen or unsafe cars on those
who have no way of knowing better. For the first time it will close the
numerous loopholes created by 50 separate State salvage laws that have
literally permitted car thieves to get away with murder.
This legislation is just as important to the used car consumer as the
Telecommunications Act was important to consumers of phone service, and
like the Telecommunications Act, we needed to carefully balance the
needs of consumers and the needs of people in the business. We had to
balance greater consumer disclosure against the effect their title
brand might have both on the value of a vehicle and the cost to insure
that vehicle, and we had to balance the need for consistent terms and
procedures in titling vehicles against the State's right to maintain
its sovereignty, and we needed to balance the need to maintain current
business practices against the benefits of improved consumer
disclosure.
As we passed the bill at the end of last session, Congress attempted
to strike that balance, and the gentleman from Washington spent 2 years
working with our committee and all the interested outside groups to
address all the issues raised in our many hearings and discussions, and
while I am proud of our work then, the bill before the House today
actually reflects additional efforts made to accommodate the critics of
the legislation.
For example, legislation before the House today tells States that if
they accept Federal funds to upgrade the computer systems in their
DMVs, that they are under an obligation to either adopt the uniform
procedures in this bill or to tell their consumers that they may be
purchasing a car with a checkered past. Either way the present
situation is improved because consumers are on notice that there may be
a potential problem.
If a State adopts all of the procedures outlined in the legislation,
a consumer is notified in no fewer than four differ ways as to the
status of the vehicle. And even more importantly, consumers in other
States have notice about the vehicle's status as well. This is a vast
improvement over the status quo.
Now, some of the critics of the legislation will argue that the
thresholds of the bill are too high or they do not include enough cars
in the definitions, so this bill addresses those concerns. It allows
the States to set whatever percentage threshold they deem appropriate
for defining a salvaged vehicle and allows our States to provide
greater disclosures by allowing them to brand certain vehicles as,
quote, older model salvaged vehicles, unquote. It even struck the
prohibition on the use of certain other terms to describe salvaged
vehicles. This bill represents a significant effort to address the
concerns of the critics of the House-passed proposal.
So I would like to take this opportunity again to commend the
gentleman from Washington and the Majority Leader of the Senate for
their hard work on this legislation. They have both labored to try and
include the suggestions of as many parties as possible and to even
accommodate the interests of some who may not be squarely in favor of
this approach, including some consumer advocates and some of our
friends in the minority. They both deserve to be commended for their
efforts.
In closing, Mr. Speaker, the bill of the gentleman from Washington
(Mr. White) represents a strong step forward for used car consumers. I
strongly support the bill and urge our colleagues to do likewise.
Mr. MARKEY. Mr. Speaker, I yield myself as much time as I may consume
just to conclude by saying that if the bill does not cover the average
car on the road, then the bill simply does not go far enough.
Again, it cannot be a consumer bill if every major consumer group in
America is opposed to the bill.
In conclusion, the gentleman from Michigan (Mr. Dingell) would like
it to be noted that he is against this bill, and I do not think there
is anyone who has ever served in this House who knows more about
automobiles than Mr. Dingell. And Mr. Dingell, if my colleagues look up
the word ``automobile'' in the dictionary, Mr. Dingell's picture is
next to it. I do not think anybody in this body questions that. He
thinks this is a bad bill, and I am relying upon the good sense and
good judgment of Mr. Dingell on this issue, hoping that the Members
will also vote no.
Mr. Speaker, I yield back the balance of my time.
Mr. BLILEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I would just say to my friend from Boston, if the
Massachusetts Motor Vehicle Department and the Massachusetts
Legislature wants to extend this to older vehicles, they have every
right to do so.
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I would also say that with the objection of the gentleman from
Massachusetts (Mr. Markey) and the gentleman from Michigan (Mr.
Dingell), the bill passed pretty much as is 336 to 72 the last time
around.
With that I urge adoption of the bill.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Sununu). The question is on the motion
offered by the gentleman from Virginia (Mr. Bliley) that the House
suspend the rules and pass the Senate bill, S. 852, as amended.
The question was taken.
Mr. MARKEY. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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