[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.

[[Page H10302]]

  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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