Vehicle Damage Disclosure and Consumer Protection Act of 1993

Summary: Vehicle Damage Disclosure and Consumer Protection Act of 1993 - Amends the Motor Vehicle Information and Cost Savings Act to prohibit a State from licensing a motor vehicle upon the transfer of its ownership unless the title discloses:  (1) whether the vehicle was previously issued a title indicating the car had been "rebuilt" or was "salvage" or "junk," was a manufacturer buyback vehicle, or had sustained flood damage; and (2) the State which issued the previous title. 
Directs the Secretary of Transportation to study the various means that may be required by Federal law for disclosing to purchasers that a motor vehicle is a manufacturer buyback vehicle.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Vehicle Damage Disclosure and 
Consumer Protection Act of 1993''.

SEC. 2. PURPOSE.

    Section 401 of the Motor Vehicle Information and Cost Savings Act 
(15 U.S.C. 1981) is amended by inserting after the second sentence the 
following new sentences: ``It is also the purpose of this title to 
protect purchasers with respect to motor vehicles for which States have 
previously issued a title brand indicating prior damage. It is further 
the purpose of this title to protect purchasers with respect to motor 
vehicles which have been repurchased, replaced, or reacquired under a 
State lemon law.''.

SEC. 3. DEFINITIONS.

    Section 402 of the Motor Vehicle Information and Cost Savings Act 
(15 U.S.C. 1982) is amended by adding at the end the following new 
paragraphs:
            ``(9) The term `manufacturer buyback vehicle' means a motor 
        vehicle that has been repurchased, replaced, or reacquired 
        pursuant to a State lemon law.
            ``(10) The term `State lemon law' means a State law 
        requiring that a motor vehicle manufacturer, distributor, or 
        dealer repurchase, replace, or reacquire a new motor vehicle 
        due to a nonconformity in materials or workmanship that renders 
        the vehicle unfit for ordinary use or reasonably intended 
        purposes.''.

SEC. 4. DISCLOSURE REQUIREMENTS UPON TRANSFER OF OWNERSHIP OF A MOTOR 
              VEHICLE.

    Section 408 of the Motor Vehicle Information and Cost Savings Act 
(15 U.S.C. 1988) is amended by adding at the end the following new 
subsection:
    ``(h)(1) Any motor vehicle the ownership of which is transferred 
may not be licensed for use in any State unless the State discloses on 
the title whether records readily accessible to it indicate--
            ``(A) whether the vehicle was previously issued a title 
        that bore any word or symbol signifying that the vehicle was 
        `salvage', `junk', `reconstructed', or `rebuilt', that it has 
        been damaged by flood, or that it was a manufacturer buyback 
        vehicle, and
            ``(B) if it was issued such a title, which State first 
        issued such a title.
    ``(2) The Secretary shall--
            ``(A) not later than 90 days after the date of enactment of 
        the Vehicle Damage Disclosure and Consumer Protection Act of 
        1993, prescribe by rule the manner in which, and the date by 
        which, a State shall disclose the information described in 
        paragraph (1)(A) and the manner in which such information shall 
        be retained.
            ``(B) not later than 12 months after such date of 
        enactment, in consultation with the task force established 
        under section 140(a) of the Anti Car Theft Act of 1992 (15 
        U.S.C. 2041 note), prescribe by rule uniform minimum standards 
        and procedures relating to the disclosure by a State on a 
        vehicle certificate of title that a vehicle has sustained 
        severe damage,
            ``(C) study and develop recommendations (in consultation, 
        to the extent practicable, with the task force described in 
        subparagraph (B)) concerning whether, in order to maximize 
        consumer protection, a disclosure of the dollar value of damage 
        to a motor vehicle should be included on all of its 
        certificates of title, at times of title transfer, in any case 
        in which the motor vehicle has neither been declared a total 
        loss by an insurer or vehicle owner nor had its title branded 
        with any word or symbol signifying that the vehicle was 
        `salvage', `junk', `reconstructed', or `rebuilt' or that it was 
        damaged by flood, and
            ``(D) not later than 12 months after the date of enactment 
        of the Vehicle Damage Disclosure and Consumer Protection Act of 
        1993, prescribe by rule the minimum requirements of form and 
        content for State certificates of title.''.

SEC. 5. DISCLOSURE OF MANUFACTURER BUYBACK VEHICLES.

    (a) Study.--The Secretary of Transportation shall conduct a study 
of the various means that may be required by Federal law for disclosing 
to prospective purchasers that a motor vehicle is a manufacturer 
buyback vehicle. The study shall include a consideration of the 
advantages and disadvantages of each alternative, taking into account 
the cost to the vehicle manufacturer, distributor, or dealer of 
complying with such requirement and the effectiveness of the 
requirement in informing purchasers.
    (b) Means for Disclosure.--Among the means for disclosure that 
shall be the subject of the study required by this section are the 
following:
            (1) A national uniform sticker, affixed to the windshield 
        of a motor vehicle prior to a purchaser's agreement to purchase 
        the vehicle, that States that the vehicle is a manufacturer 
        buyback vehicle.
            (2) A national uniform consumer disclosure statement, 
        provided to any prospective purchaser before the purchase 
        agreement occurs, that--
            (A) includes the motor vehicle make, model, year, vehicle 
        identification number, and any prior title numbers and prior 
        States of title; and
            (B) discloses that the motor vehicle is (according to 
        records available to the State issuing the certificate of 
        title, including records from any State in which a certificate 
        of title has previously been issued for such motor vehicle) a 
        manufacturer buyback vehicle.
    (c) Report to Congress.--The Secretary of Transportation shall, not 
later than 6 months after the date of enactment of this Act, report to 
the Committee on Commerce, Science, and Transportation of the Senate 
and the Committee on Energy and Commerce of the House of 
Representatives on the results of the study required by this section.
    (d) Definitions.--The terms ``manufacturer buyback vehicle'', 
``dealer'', and ``distributor'' have the meanings those terms have 
under section 402 of the Motor Vehicle Information and Cost Savings Act 
(15 U.S.C. 1988), as amended by this Act.

            Passed the Senate November 20 (legislative day, November 
      2), 1993.

            Attest:

                                             WALTER J. STEWART,

                                                             Secretary.