[Congressional Record Volume 145, Number 42 (Wednesday, March 17, 1999)]
[Senate]
[Pages S2859-S2865]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LOTT (for himself, Mr. McCain, Mr. Stevens, Mr. Burns, 
        Mrs. Hutchison, Mr. Frist, Mr. Mack, Mr. Murkowski, Mr. Warner, 
        Mr. Shelby, Mr. Bennett, Mr. Inhofe, Mr. Sessions, and Mr. 
        Grams):
  S. 655. A bill to establish nationally uniform requirements regarding 
the titling and registration of salvage, nonrepairable, and rebuilt 
vehicles; to the Committee on Commerce, Science, and Transportation.


     national salvage motor vehicle consumer protection act of 1999

  Mr. LOTT. Mr. President, today I am introducing legislation to combat 
the growing and costly fraud of title washing. Title fraud is a 
deceptive practice that costs consumers more than $4 billion dollars 
annually and places millions of structurally defective vehicles back on 
America's roads and highways. These are millions of unsafe cars and 
trucks sharing the roads with your loved ones.
  The National Salvage Motor Vehicle Consumer Protection Act encourages 
states to adopt uniform titling and registration standards to protect 
used car buyers from unknowingly purchasing totaled and subsequently 
rebuilt vehicles. It is a sound and reasonable measure that enhances 
consumer disclosure and aids state motor vehicle administrators 
throughout the nation by giving them identical points of reference to 
describe salvage vehicles.
  Let us be very clear on this, there are no uniform definitions and 
standards in place today and this leads to a hodgepodge of disclosure 
approaches throughout the country. Unscrupulous automobile rebuilders 
take advantage of inconsistencies in state titling definitions and 
procedures to purchase damaged vehicles at a low cost, rebuild them, 
oftentimes by welding the front and back of two different cars 
together, and then retitling the vehicle in another state. The new 
``clean'' title bears no indication of the vehicle's previous damage 
record. As a result, consumers in your states are being sold previously 
totaled cars and trucks without having any knowledge that the vehicle 
they purchased, sometimes at a very high price, was severely damaged. A 
vehicle where only minor damage could cause it to fall apart. The 
unwitting purchasers of these vehicles experience significant economic 
loss. They and other motorists may also suffer bodily harm from these 
wrecks on wheels.
  Mr. President, the title branding bill offered today will promote 
greater disclosure to potential used car buyers than occurs today. It 
establishes uniform definitions for salvage, rebuilt salvage, 
nonrepairable, and flood vehicles based upon the recommendations of the 
Motor Vehicle Titling, Registration and Salvage Advisory Committee. 
This congressionally mandated task force, overseen by the U.S. 
Department of Transportation, included the U.S. Attorney General's 
Criminal and Civil Justice Divisions, State motor vehicle officials, 
motor vehicle manufactures, auto dealers, recyclers, insurers, salvage 
yard operators, scrap processors, the U.S. Treasury Department, police 
chiefs and municipal auto theft investigators, and other interested and 
affected parties. The uniform definitions and standards contained in 
this bill are theirs, not mine. Their recommendations are based on a 
wealth of day-to-day experience dealing with consumer fraud, vehicle 
titling, and automobile theft. The Salvage Advisory Committee's 
recommendations struck an appropriate balance between consumers' 
economic interests and their personal safety.
  The National Salvage Motor Vehicle Consumer Protection Act requires 
rebuilt salvage vehicles to undergo a theft inspection in addition to 
any required state safety inspection. To further promote disclosure to 
potential used car buyers, the legislation also requires rebuilt 
salvage vehicles to have a decal permanently fastened to the driver's 
doorjamb and a sticker would be affixed to the windshield disclosing 
the vehicle's status. Additionally, a written disclosure statement must 
be provided to buyers and the vehicle's title would be branded with the 
statement ``rebuilt salvage.''
  The bill also requires that the brands included on state vehicle 
titles be carried forward to each state where the vehicle is retitled.
  So if your state wants to add additional requirements--they can. And 
these items will be a permanent part of the title.
  In an effort to take aim at automobile theft, the bill requires the 
tracking of Vehicle Identification Numbers (VIN) of irreparably damaged 
vehicles. This provision ensures that VINs are not simply swapped from 
damaged cars to stolen cars to mask their identity.
  Mr. President, Congress came very close to enacting title branding 
legislation last year. The original Senate measure received the formal 
bipartisan support of 57 Senators, and a similar bill passed the House 
of Representatives by a vote of 333 to 72. Throughout the legislative 
process, a number of significant changes were made to the bill to 
address the concerns expressed by consumer groups and some state 
attorneys general.
  The title branding bill before you today retains all of the changes 
approved by the House of Representatives last October and it includes 
additional pro-consumer, pro-states rights modifications received from 
states and the Administration.
  Under this revised bill, states are free to adopt disclosure 
standards beyond those provided for in the bill. Let me say again that 
nothing in this bill prohibits states from providing unlimited 
disclosure to their citizens. This important legislation merely creates 
a basic minimum national standard while giving participating states the 
flexibility to adopt more stringent provisions and additional 
disclosure requirements.
  The bill also does not create a federal mandate on the states as some 
big government advocates would have it. My colleagues are well aware 
that the Supreme Court ruled in New York v. United States [505 U.S. 144 
(1992)] that states cannot be forced by Congress to execute programs 
that should be administered by the U.S. government. In the New York 
decision, the Justices upheld ``access incentives'' which allow states 
to decide whether they want to use federal standards.
  This legislation follows the Supreme Court's ruling by offering 
incentive grants, as proposed by the U.S. Department of Transportation, 
to states that voluntarily choose to participate in the uniform titling 
regime for salvage vehicles. Thus, states that enact the bill's uniform 
titling definitions and procedures will be eligible for conformance 
funding. They can use the authorized funds to issue new titles, to 
establish and administer vehicle theft or safety inspections, for 
enforcement activities, and for other related purposes. While I believe 
most states will decide to participate in this completely voluntary 
program, rest assured no state will be penalized for choosing not to 
participate, or for adopting only some of the bill's provisions.
  I would also like to point out that the revised bill no longer links 
state adoption of uniform titling standards to the National Motor 
Vehicle Title Information System (NMVTIS) funding or participation. 
Again, there is no penalty for nonparticipation.

[[Page S2860]]

  The bill merely identifies and defines the minimum number of terms 
that should be used by states to characterize damaged vehicles. The use 
of nationally and consistently recognized terms will help consumers 
make informed decisions wherever they purchase a used vehicle. Whether 
in Mississippi, Utah, Florida, Montana, Texas, Virginia or any other 
participating state.
  Mr. President, let me tell our colleagues this bill is about a 
commission's recommendations. Quite frankly, I took the recommendations 
from a commission created by Congress and codified their ideas. The 
ideas of the experts. The ideas of all the stakeholders. As we all 
know, many commission reports gather dust. I do not want this one to 
gather dust because motorists could be driving used cars which are 
literally wrecks. This is the commission's bill and I am proud to be 
associated with its sponsorship.
  The bill fully adopts the federal task force's ``salvage'' vehicle 
definition as a vehicle that sustains damage in excess of 75% of its 
pre-accident value. This figure is lower than the House's proposal 
during the 105th Congress which would have set the uniform salvage 
threshold at 80%. The revised bill also gives states the flexibility to 
establish an even lower threshold if they choose. A state may set its 
salvage threshold at 70%, for example. The bill does not, however, set 
the uniform standard at an arbitrarily low minimum salvage threshold, 
such as 65%, when no state in the union currently has such a standard. 
No state. Not one.
  The bill defines a flood vehicle as one that suffers water damage 
that inhibits the electrical, computerized, or mechanical functions of 
the vehicle. This definition expands upon the recommendation of the 
Advisory Committee by taking into account real world experience. 
State's found that merely being exposed to water alone does not in and 
of itself threaten the structural integrity, safety, or value of a 
vehicle. A car or truck should not be branded a flood vehicle just 
because its carpeting and floor mats are wet. If it were the case, none 
of us would drive our cars through the rain or snow. It is only when 
water damage impairs a vehicle's operating functions and the 
electrical, mechanical or computerized components have not been 
repaired or replaced, that the vehicle should be classified as a flood 
vehicle. The revised bill also goes beyond the task force's 
recommendations by including any vehicle acquired by an insurer as part 
of a water damage settlement.
  A nonrepairable vehicle is one that is incapable of being driven 
safely and has no resale value except as a source for parts or scrap. 
This is similar to the nonrepairable definition used by California, our 
nation's largest state. This is also the common sense definition the 
Advisory Committee wisely chose in lieu of an arbitrary percentage 
based definition that would force otherwise repairable vehicles into 
the scrap heap. It should be noted that only five states have a 
percentage based nonrepairable definition. I find it troubling that 
these same five states have been far less successful in reducing 
automobile thefts than the nation as a whole and accident related 
deaths higher than the forty five states that do not have a percentage 
based nonrepairable definition. Coupled with the negative economic 
effects on consumers, these are additional reasons not to adopt a 
percentage based definition for nonrepairable vehicles.
  Mr. President, my colleagues should also be aware that this 
legislation allows states to use additional terms in their titling 
regimes such as ``reconstructed'', ``unrebuildable'', and ``junk 
vehicles'' in addition to the terms defined in this measure. If a state 
that chooses to conform to the federal standard also wants to use a 
percentage based definition to describe a ``parts only'' vehicle, it 
can use a term synonymous to nonrepairable.
  The National Salvage Motor Vehicle Consumer Protection Act also 
allows states to cover any vehicle, regardless of age. It allows older 
vehicles to be designated as a ``older model salvage vehicle.'' This is 
a change recommended by a state attorneys general representative to 
provide states with even more flexibility. Again, the age of a vehicle 
is no longer an issue under this revised title branding bill.
  This legislation even grants state attorneys general the ability to 
sue on behalf of consumers victimized by rebuilt salvage fraud and to 
recover monetary judgments for damages that citizens may have suffered.
  Two new prohibited acts are included in the bill--one related to 
failure to make a flood disclosure and the other related to moving a 
vehicle or title across state lines for the purpose of avoiding the 
bill's requirements.
  Mr. President, I have just gone over a number of changes that I 
incorporated into the bill. I have reached out to accommodate a number 
of issues, but there is a point where making changes defeats the 
purpose of the bill which is to promote consumer disclosure through 
uniformity.
  Mr. President, this bill does nothing to inhibit a consumers ability 
to pursue private rights of actions available under state law. 
Moreover, states are free to continue or adopt new civil and criminal 
penalties against individuals or companies that defraud consumers. The 
bill does not, however, negatively impact the already overburdened 
Federal courts. This bill is about disclosure. If your son or daughter 
is buying a used car, you want them to know right up front whether the 
vehicle they are about to purchase has been severely damaged. Getting 
relief after several years of litigating in a U.S. Court does not 
protect consumers. It does not turn the clock back for someone who has 
been killed or seriously injured in a structurally unsafe vehicle.
  Mr. President, I would also like to reiterate some key points 
concerning The National Salvage Motor Vehicle Consumer Protection Act:
  State participation is completely voluntary. V-O-L-U-N-T-A-R-Y.
  There is no preemption of state law. None whatsoever. None. None. 
None. State legislatures can fully enact the bill's provisions, enact 
only some of the uniform definitions and standards, or take no action 
whatsoever.
  States that choose to participate in the minimal uniform definitions 
and standards identified in this bill will be entitled to conformance 
funding.
  There is no penalty for non-participation by a state. None 
whatsoever. None. None. None. And, no linkage to state National Motor 
Vehicle Title Information System (NMVTIS) funding or participation.
  It mirrors recommendations of the Motor Vehicle Titling, Registration 
and Salvage Advisory Committee.
  The bill's definitions and standards are the minimum necessary for a 
voluntary uniform salvage titling framework. M-I-N-I-M-U-M.
  This legislation does not force states to adopt standards or 
definitions that not even one state currently has in place.
  The bill does not unnecessarily devalue vehicles or cause otherwise 
repairable automobiles to be junked. This is key because some will talk 
about greater protection, but these proposals threaten the car's value 
for no good reason and this makes no sense
  The revised bill includes many additional technical corrections 
provided to me by the U.S. Department of Transportation, the National 
Association of Attorney's General, and others. I want to personally 
thank them for their time and effort in going over the bill with me--
line by line. Their thoughts were invaluable and helpful. Throughout 
the legislative process, I have made several good faith efforts to 
reach out to all groups interested in this legislation and where 
possible, I included reasonable changes in the bill.
  It is widely supported by state motor vehicle administrators, law 
enforcement agencies, state legislators, consumers, and the automobile 
and insurance industries. Widely supported.
  Experts on the front lines, those who deal with titling issues 
everyday, have described other proposals that have been floated 
recently as confusing, or overly complex, or unworkable, or unwise, or 
counter productive. In many instances, these proposals have been flatly 
rejected by state legislatures.
  The National Salvage Motor Vehicle Consumer Protection Act represents 
a fair, balanced, and workable approach to dealing with the issue of 
title fraud. It provides a voluntary framework for states to provide 
much needed disclosure to potential used-car purchasers. It would help 
close the many loopholes that exist in state titling rules. This 
measure maintains a state's ability to provide more disclosure, to take 
direct

[[Page S2861]]

and timely action against dishonest parties, and to adopt more 
stringent rules and procedures should they decide to do so. It is both 
pro-consumer and pro-states rights. This bill protects the safety and 
well-being of consumers and motorists across America.
  I urge the more than fifty of my colleagues from both sides of the 
aisle who formally supported this title branding legislation during the 
last Congress to cosponsor this important bill again. I ask the rest of 
my colleagues also to protect their constituents by lending their 
support to this much needed consumer protection measure.
  The time has come for Congressional action. Repeated hearings have 
been held on this issue in both chambers over several years. The record 
is clear. Title fraud is a significant problem across the country. It 
continues unabated. The solution is more consumer disclosure based on 
the use of appropriate and rational national standards. This 
legislation is a win-win solution for consumers, states, and industry.
  You know the time has come for Congressional action when the 
Department of Transportation's crash test cars are rebuilt, title 
washed, and back on America's roads and highways. Remember, these are 
deliberately wrecked vehicles. Yes, the time has come for action.
  Let us work together to move this measure forward. To keep dishonest 
rebuilders from taking advantage of even one more used car purchaser in 
your state.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 655

       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 1999''.

     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.
``33308. Incentive Grants.

     ``Sec. 33301. Definitions

       ``(a) Definitions.--For the purposes of this chapter:
       ``(1) Passenger motor vehicle.--The term `passenger motor 
     vehicle' has the same meaning given such term by section 
     32101(10), except, notwithstanding section 32101(9), it 
     includes a multi-purpose passenger vehicle (constructed on a 
     truck chassis or with special features for occasional off-
     road operation), a truck, other than a truck referred to in 
     section 32101(10)(B), and a pickup truck when that vehicle or 
     truck is rated by the manufacturer of such vehicle or truck 
     at not more than 10,000 pounds gross vehicle weight, and it 
     only includes a vehicle manufactured primarily for use on 
     public streets, roads, and highways.
       ``(2) Salvage vehicle.--The term `salvage vehicle' means 
     any passenger motor vehicle, other than a flood vehicle or a 
     nonrepairable vehicle, which--
       ``(A) is a late model vehicle which has been wrecked, 
     destroyed, or damaged, to the extent that the total cost of 
     repairs to rebuild or reconstruct the passenger motor vehicle 
     to its condition immediately before it was wrecked, 
     destroyed, or damaged, and for legal operation on the roads 
     or highways, exceeds 75 percent of the retail value of the 
     passenger motor vehicle at the time it was wrecked, 
     destroyed, or damaged;
       ``(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, had 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, had 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 by $500 increments every 5 
     years beginning with an increase to $8,000 on January 1, 
     2005.
       ``(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--

[[Page S2862]]

       ``(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) Inspection must be by independent party.--A motor 
     vehicle repairer or motor vehicle dealer may not carry out an 
     inspection under subparagraph (A) on a passenger motor 
     vehicle that has been repaired, or is to be sold or leased, 
     by that repairer or dealer.
       ``(D) Effect of disclosure.--Disclosing a passenger motor 
     vehicle's status as a flood vehicle or conducting an 
     inspection pursuant to subparagraph (A) shall not impose on 
     any person any liability for damage to (except in the case of 
     damage caused by the inspector at the time of the inspection) 
     or reduced value of a passenger motor vehicle.
       ``(b) Construction.--The definitions set forth in 
     subsection (a) only apply to vehicles in a State which are 
     wrecked, destroyed, or otherwise damaged on or after the date 
     on which such State complies with the requirements of this 
     chapter and the rule promulgated pursuant to section 
     33302(b).

     ``Sec. 33302. Passenger motor vehicle titling

       ``(a) Carry-Forward of State Information.--For any 
     passenger motor vehicle, the ownership of which is 
     transferred on or after the date that is 1 year after the 
     date of the enactment of the National Salvage Motor 
     Vehicle Consumer Protection Act of 1999, any State 
     receiving funds under section 33308 of this chapter, in 
     licensing such vehicle for use, shall disclose in writing 
     on the certificate of title whenever records readily 
     accessible to the State indicate that the passenger motor 
     vehicle was previously issued a title that bore any word 
     or symbol signifying that the vehicle was `salvage', 
     `older model salvage', `unrebuildable', `parts only', 
     `scrap', `junk', `nonrepairable', `reconstructed', 
     `rebuilt', or any other symbol or work 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 1999, the Secretary shall by rule require 
     any State receiving funds under section 33308 of this 
     chapter, in licensing any passenger motor vehicle where 
     ownership of such passenger motor vehicle is transferred more 
     than 2 years after publication of such final rule, to apply 
     uniform standards, procedures, and methods for the issuance 
     and control of titles for motor vehicles and for information 
     to be contained on such titles. Such titling standards, 
     control procedures, methods, and information shall include 
     the following requirements:
       ``(1) A State shall conspicuously indicate on the face of 
     the title or certificate for a passenger motor vehicle, as 
     applicable, if the passenger motor vehicle is a salvage 
     vehicle, a nonrepairable vehicle, a rebuilt salvage vehicle, 
     or a flood vehicle.
       ``(2) Such information concerning a passenger motor 
     vehicle's status shall be conveyed on any subsequent title, 
     including a duplicate or replacement title, for the passenger 
     motor vehicle issued by the original titling State or any 
     other State.
       ``(3) The title documents, the certificates, and decals 
     required by section 33301(4), and the issuing system shall 
     meet security standards minimizing the opportunities for 
     fraud.
       ``(4) The certificate of title shall include the passenger 
     motor vehicle make, model, body type, 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 of 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--
       ``(i) the owner of the owner's obligation to apply for a 
     salvage title or nonrepairable vehicle certificate for the 
     passenger motor vehicle; and
       ``(ii) 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. The notices shall be made in writing within 30 
     days after the insurance company determines that the damage 
     will require a salvage title or a nonrepairable certificate 
     and that the vehicle will be left with the owner.
       ``(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. Nothing in this subparagraph 
     requires that the requirements for notification be contained 
     in the lease itself, as long as effective notice is provided 
     by the lessor to the lessee of the requirements.
       ``(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

[[Page S2863]]

     in any event, within 30 days after ownership is acquired. The 
     requirements of this subparagraph shall not apply to any 
     scrap metal processor which acquires a passenger motor 
     vehicle for the sole purpose of processing it into prepared 
     grades of scrap and which so processes such vehicle.
       ``(F) State records shall note when a nonrepairable vehicle 
     certificate is issued. No State shall issue a nonrepairable 
     vehicle certificate after 2 transfers of ownership.
       ``(G) When a passenger motor vehicle has been flattened, 
     baled, or shredded, whichever comes first, the title or 
     nonrepairable vehicle certificate for the vehicle shall be 
     surrendered to the state within 30 days. If the second 
     transferee on a nonrepairable vehicle certificate is 
     unequipped to flatten, bale, or shred the vehicle, such 
     transferee shall, at the time of final disposal of the 
     vehicle, use the services of a professional automotive 
     recycler or professional scrap processor who is hereby 
     authorized to flatten, bale, or shred the vehicle and to 
     effect the surrender of the nonrepairable vehicle certificate 
     to the State on behalf of such second transferee. State 
     records shall be updated to indicate the destruction of such 
     vehicle and no further ownership transactions for the vehicle 
     will be permitted. If different than the State of origin 
     of the title or nonrepairable vehicle certificate, the 
     State of surrender shall notify the State of origin of the 
     surrender of the title or nonrepairable vehicle 
     certificate and of the destruction of such vehicle.
       ``(H) When a salvage title is issued, the State records 
     shall so note. No State shall permit the retitling for 
     registration purposes or issuance of a rebuilt salvage title 
     for a passenger motor vehicle with a salvage title without a 
     certificate of inspection, which complies with the security 
     and guideline standards established by the Secretary pursuant 
     to paragraphs (3), (7), and (8), as applicable, indicating 
     that the vehicle has passed the inspections required by the 
     State. This subparagraph does not preclude the issuance of a 
     new salvage title for a salvage vehicle after a transfer of 
     ownership.
       ``(I) After a passenger motor vehicle titled with a salvage 
     title has passed the inspections required by the State, the 
     inspection official will affix the secure decal required 
     pursuant to section 33301(4) to the driver's door jamb of the 
     vehicle and issue to the owner of the vehicle a certificate 
     indicating that the passenger motor vehicle has passed the 
     inspections required by the State. The decal shall comply 
     with the permanency requirements established by the 
     Secretary.
       ``(J) The owner of a passenger motor vehicle titled with a 
     salvage title may obtain a rebuilt salvage title or vehicle 
     registration, or both, by presenting to the State the salvage 
     title, properly assigned, if applicable, along with the 
     certificate that the vehicle has passed the inspections 
     required by the State. With such proper documentation and 
     upon request, a rebuilt salvage title or registration, or 
     both, shall be issued to the owner. When a rebuilt salvage 
     title is issued, the State records shall so note.
       ``(11) A seller of a passenger motor vehicle that becomes a 
     flood vehicle shall, 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 by title or registered 
     for use on roads or highways.
       ``(c) 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.
       ``(d) National Record of Compliant States.--The Secretary 
     shall establish a record of the States which are in 
     compliance with the requirements of subsections (a) and (b) 
     of this section. The Secretary shall work with States to 
     update this record upon the enactment of a State law which 
     causes a State to come into compliance or become noncompliant 
     with the requirements of subsections (a) and (b) of this 
     section. Not later than 18 months after the enactment of the 
     National Salvage Motor Vehicles Consumer Protection Act of 
     1999, the Secretary shall establish a mechanism or mechanisms 
     to identify to interested parties whether a State is in 
     compliance with the requirements of subsections (a) and (b) 
     of 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 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 such a State that receives funds under section 33308 
     of this chapter, to the extent they are inconsistent with 
     the provisions of this chapter or the rule promulgated 
     pursuant to section 33302, which--
       ``(1) set forth the form of the passenger motor vehicle 
     title;
       ``(2) define, in connection with a passenger motor vehicle 
     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) Private 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 salvage title 
     that a rebuilt salvage vehicle has passed a State safety 
     inspection which differed from the nationally uniform 
     criteria to be promulgated pursuant to section 33302(b)(8).

[[Page S2864]]

     ``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;
       ``(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, including those related to consumer protection.
       ``(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.

     ``Sec. 33308. Incentive Grants

       ``(a) General Authority.--The Secretary of Transportation 
     shall make a grant to each State that demonstrates to the 
     satisfaction of the Secretary that it is taking appropriate 
     actions to implement the provisions of this chapter.
       ``(b) Grants.--Pursuant to subsection (a), a grant to carry 
     out this chapter in a fiscal year shall be provided to each 
     qualifying State in an amount determined by multiplying--
       ``(1) the amount authorized for the fiscal year to carry 
     out this chapter, by
       ``(2) the ratio that the amount of funds apportioned to 
     each qualifying State under section 402 of title 23, United 
     States Code, for the fiscal year bears to the total amount of 
     funds apportioned to all qualifying States under section 402 
     of title 23, United States Code, for such fiscal year, except 
     that no State eligible for a grant under this paragraph shall 
     receive less than $250,000.
       ``(c) Use of Grants.--Any State that receives a grant under 
     this section shall use the funds to carry out the provisions 
     of this chapter, including such conformance related 
     activities as issuing titles, establishing and administering 
     vehicle theft or salvage vehicles safety inspections, 
     enforcement, and other related purposes.
       ``(d) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this chapter $16,000,000 for fiscal year 2000.
       ``(2) Availability of funds.--Funds authorized by this 
     section shall remain available until expended.''.
       (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', `flood 
     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, a flood 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, a flood 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 maintain 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, 1999, 
     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, flood 
     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

[[Page S2865]]

     Schoolbuses.--Not later than September 1, 1999, 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.''.
                                 ______