II

104TH CONGRESS

2D SESSION S. 2030

To establish nationally uniform requirements regarding the titling and registration of salvage, nonrepairable, and rebuilt vehicles, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

AUGUST 2, 1996

Mr. LOTT (for himself and Mr. EXON) introduced the following bill; which was

read twice and referred to the Committee on Commerce, Science, and

Transportation

A BILL

To establish nationally uniform requirements regarding the

titling and registration of salvage, nonrepairable, and

rebuilt vehicles, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘National Motor Vehicle

5 Safety, Antitheft, Title Reform, and Consumer Protection

6 Act of 1996’’.

7 SEC. 2. FINDINGS.

8 The Congress finds that—
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1 (1) many States do not have specific require2 ments regarding the disclosure of the salvage history

3 of a motor vehicle and some States never require

4 that the title to a motor vehicle be stamped or

5 branded to indicate that the motor vehicle is, or has

6 been, a salvage vehicle;

7 (2) as of the date of enactment of this Act,

8 State disclosure requirements regarding the salvage

9 history of a motor vehicle—

10 (A) are inconsistent in scope and content;

11 (B) require the use of different forms and

12 administrative procedures;

13 (C) will undercut the effectiveness of the

14 National Automobile Title Information System

15 created by the Anti Car Theft Act of 1992;

16 (D) are burdensome on interstate com17 merce; and

18 (E) do not provide a significant deterrent

19 to unscrupulous sellers of rebuilt vehicles who

20 mislead potential wholesale and retail buyers

21 concerning the condition and value of such vehi22 cles;

23 (3) the fact that a motor vehicle is salvage,

24 nonrepairable, water damaged, or rebuilt after incur-
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1 ring substantial damage is material in any subse2 quent purchase or sale of that motor vehicle;

3 (4) some salvage and nonrepairable vehicles be4 come involved in illegal commerce in stolen vehicles

5 and parts;

6 (5) in some jurisdictions, the lack of theft in7 spections prior to allowing a rebuilt motor vehicle

8 back on the road provides an opportunity for an un9 scrupulous person to use stolen parts in the rebuild10 ing of motor vehicles;

11 (6) according to the National Highway Traffic

12 Safety Administration, rebuilt motor vehicles—

13 (A) may not have passed any safety inspec14 tion; and

15 (B) may pose a public safety risk and con16 sumers who unknowingly buy rebuilt motor ve17 hicles face an increased risk of death or serious

18 injury;

19 (7) statistics prepared by the American Associa20 tion of Motor Vehicle Administrators indicate that

21 71 percent of the States require some form of safety

22 inspection before a rebuilt salvage vehicle may be

23 registered for use on the road;

24 (8) the promulgation of a safety inspection pro25 gram by the Secretary of Transportation may assist
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1 the States in expanding and standardizing their in2 spection programs for rebuilt vehicles;

3 (9) duplicate or replacement titles play an im4 portant role in many vehicle thefts and various types

5 of vehicle fraud;

6 (10) State controls on the issuance of such ti7 tles must therefore be strengthened and made uni8 form across the United States;

9 (11) large quantities of motor vehicles are ex10 ported from United States ports to foreign countries

11 without proper documentation of ownership in viola12 tion of applicable law; and

13 (12) in view of the threats to public safety and

14 consumer interests described in paragraphs (1)

15 through (10), the Motor Vehicle Titling, Registra16 tion and Salvage Advisory Committee, which was

17 convened by the Secretary of Transportation under

18 section 140(a) of the Anti Car Theft Act of 1992

19 (15 U.S.C. 2041 note), recommended that—

20 (A) Federal laws be enacted to require cer21 tain definitions to be used nationwide to de22 scribe seriously damaged vehicles; and

23 (B) all States be required to—
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1 (i) use the definitions referred to in

2 subparagraph (A) in determining appro3 priate title designations;

4 (ii) use certain motor vehicle titling

5 and control methods; and

6 (iii) take certain other measures to

7 protect the integrity of the titling process.

8 SEC. 3. MOTOR VEHICLE TITLING AND DISCLOSURE RE9 QUIREMENTS.

10 (a) IN GENERAL.—Subtitle VI of title 49, United

11 States Code, is amended by adding at the end the follow12 ing new chapter:

13 ‘‘CHAPTER 333—AUTOMOBILE SAFETY,

14 ANTITHEFT, AND TITLE DISCLOSURE

15 REQUIREMENTS

‘‘Sec.

‘‘33301. Definitions.

‘‘33302. Passenger motor vehicle titling.

‘‘33303. Petitions for extensions of time.

‘‘33304. Effect on State law.

‘‘33305. Civil and criminal penalties.

16 ‘‘§ 33301. Definitions

17 ‘‘For the purposes of this chapter the following defi18 nitions and requirements shall apply:

19 ‘‘(1) PASSENGER MOTOR VEHICLE.—

20 ‘‘(A) IN GENERAL.—The term ‘passenger

21 motor vehicle’ means any vehicle driven or

22 drawn by mechanical power manufactured pri-
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1 marily for use on the public streets, roads, and

2 highways.

3 ‘‘(B) PASSENGER MOTOR VEHICLES AND

4 LIGHT TRUCKS INCLUDED.—Such term includes

5 a multipurpose passenger vehicle or light duty

6 truck if the vehicle or truck is rated at not

7 more than 7,500 pounds gross vehicle weight.

8 ‘‘(C) MOTORCYCLES NOT INCLUDED.—

9 Such term does not include a motorcycle.

10 ‘‘(2) SALVAGE VEHICLE.—

11 ‘‘(A) IN GENERAL.—Subject to subpara12 graph (E), the term ‘salvage vehicle’ means any

13 passenger motor vehicle that has been wrecked,

14 destroyed, or damaged to the extent that the

15 total estimated or actual cost of parts and labor

16 to rebuild or reconstruct the passenger motor

17 vehicle to its preaccident condition for legal op18 eration on the roads or highways exceeds 75

19 percent of the retail value of the passenger

20 motor vehicle, as set forth in the most recent

21 edition of any nationally recognized compilation

22 (including automated databases) of current re23 tail values that is approved by the Secretary.

24 ‘‘(B) VEHICLES EXCLUDED.—Such term

25 does not include any passenger motor vehicle
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1 that has a model year designation of a calendar

2 year that precedes that calendar year in which

3 the vehicle was wrecked, destroyed, or damaged

4 by 5 or more years.

5 ‘‘(C) DETERMINATION OF VALUE OF RE6 PAIR PARTS.—For purposes of subparagraph

7 (B), the value of repair parts shall be deter8 mined by using—

9 ‘‘(i) the published retail cost of the

10 original equipment manufacturer parts; or

11 ‘‘(ii) the actual retail cost of the re12 pair parts to be used in the repair.

13 ‘‘(D) DETERMINATION OF LABOR COSTS.—

14 For purposes of subparagraph (B), the labor

15 cost of repairs shall be computed by using the

16 hourly labor rate and time allocations that are

17 reasonable and customary in the automobile re18 pair industry in the community in which the re19 pairs are performed.

20 ‘‘(E) CERTAIN VEHICLES INCLUDED.—The

21 term ‘passenger vehicle’ includes, without re22 gard to whether the passenger motor vehicle

23 meets the 75 percent threshold specified in sub24 paragraph (B)—
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1 ‘‘(i) any passenger motor vehicle with

2 respect to which an insurance company ac3 quires ownership under a damage settle4 ment (except for a settlement in connection

5 with a recovered theft vehicle that did not

6 sustain a sufficient degree of damage to

7 meet the 75 percent threshold specified in

8 subparagraph (B)); or

9 ‘‘(ii) any passenger motor vehicle that

10 an owner may wish to designate as a sal11 vage vehicle by obtaining a salvage title,

12 without regard to the extent of the damage

13 and repairs.

14 ‘‘(F) SPECIAL RULE.—A designation of a

15 passenger motor vehicle by an owner under sub16 paragraph (E)(ii) shall not impose any obliga17 tion on—

18 ‘‘(i) the insurer of the passenger

19 motor vehicle; or

20 ‘‘(ii) an insurer processing a claim

21 made by or on behalf of the owner of the

22 passenger motor vehicle.

23 ‘‘(3) SALVAGE TITLE.—

24 ‘‘(A) IN GENERAL.—The term ‘salvage

25 title’ means a passenger motor vehicle owner-
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1 ship document issued by a State to the owner

2 of a salvage vehicle.

3 ‘‘(B) TRANSFER OF OWNERSHIP.—Owner4 ship of a salvage vehicle may be transferred on

5 a salvage title.

6 ‘‘(C) PROHIBITION.—The salvage vehicle

7 may not be registered for use on the roads or

8 highways unless the salvage vehicle has been is9 sued a rebuilt salvage title.

10 ‘‘(D) REQUIREMENT FOR A REBUILT SAL11 VAGE TITLE.—A salvage title shall be conspicu12 ously labeled with the word ‘salvage’ across the

13 front of the document.

14 ‘‘(4) REBUILT SALVAGE VEHICLE.—The term

15 ‘rebuilt salvage vehicle’ means—

16 ‘‘(A) for passenger motor vehicles subject

17 to a safety inspection in a State that requires

18 such an inspection under section

19 33302(b)(2)(H), any passenger motor vehicle

20 that has—

21 ‘‘(i) been issued previously a salvage

22 title;

23 ‘‘(ii) passed applicable State antitheft

24 inspection;
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1 ‘‘(iii) been issued a certificate indicat2 ing that the passenger motor vehicle has—

3 ‘‘(I) passed the antitheft inspec4 tion referred to in clause (ii); and

5 ‘‘(II) been issued a certificate in6 dicating that the passenger motor ve7 hicle has passed a required safety in8 spection under section

9 33302(b)(2)(H); and

10 ‘‘(iv) affixed to the door jamb adja11 cent to the driver’s seat a decal stating

12 ‘Rebuilt Salvage Vehicle—Antitheft and

13 Safety Inspections Passed’; or

14 ‘‘(B) for passenger motor vehicles in a

15 State other than a State referred to in subpara16 graph (A), any passenger motor vehicle that

17 has—

18 ‘‘(i) been issued previously a salvage

19 title;

20 ‘‘(ii) passed an applicable State

21 antitheft inspection;

22 ‘‘(iii) been issued a certificate indicat23 ing that the passenger motor vehicle has

24 passed the required antitheft inspection re25 ferred to in clause (ii); and
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1 ‘‘(iv) affixed to the door jamb adja2 cent to the driver’s seat, a decal stating

3 ‘Rebuilt Salvage Vehicle—Antitheft Inspec4 tion Passed/No Safety Inspection Pursuant

5 to National Criteria’.

6 ‘‘(5) REBUILT SALVAGE TITLE.—

7 ‘‘(A) IN GENERAL.—The term ‘rebuilt sal8 vage title’ means the passenger motor vehicle

9 ownership document issued by a State to the

10 owner of a rebuilt salvage vehicle.

11 ‘‘(B) TRANSFER OF OWNERSHIP.—Owner12 ship of a rebuilt salvage vehicle may be trans13 ferred on a rebuilt salvage title.

14 ‘‘(C) REGISTRATION FOR USE.—A pas15 senger motor vehicle for which a rebuilt salvage

16 title has been issued may be registered for use

17 on the roads and highways.

18 ‘‘(D) REQUIREMENT FOR SALVAGE

19 TITLE.—A rebuilt salvage title shall be con20 spicuously labeled, either with ‘Rebuilt Salvage

21 Vehicle—Antitheft and Safety Inspections

22 Passed’ or ‘Rebuilt Salvage Vehicle—Antitheft

23 Inspection Passed/No Safety Inspection Pursu24 ant to National Criteria’, as appropriate, across

25 the front of the document.
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1 ‘‘(6) NONREPAIRABLE VEHICLE.—

2 ‘‘(A) IN GENERAL.—The term ‘nonrepair3 able vehicle’ means any passenger motor vehicle

4 that—

5 ‘‘(i)(I) is incapable of safe operation

6 for use on roads or highways; and

7 ‘‘(II) has no resale value, except as a

8 source of parts or scrap only; or

9 ‘‘(ii) the owner irreversibly designates

10 as a source of parts or scrap.

11 ‘‘(B) CERTIFICATE.—Each nonrepairable

12 vehicle shall be issued a nonrepairable vehicle

13 certificate.

14 ‘‘(7) NONREPAIRABLE VEHICLE CERTIFI15 CATE.—

16 ‘‘(A) IN GENERAL.—The term ‘nonrepair17 able vehicle certificate’ means a passenger

18 motor vehicle ownership document issued by the

19 State to the owner of a nonrepairable vehicle.

20 ‘‘(B) TRANSFER OF OWNERSHIP.—Owner21 ship of the passenger motor vehicle may be

22 transferred not more than 2 times on a non23 repairable vehicle certificate.

24 ‘‘(C) PROHIBITION.—A nonrepairable vehi25 cle that is issued a nonrepairable vehicle certifi-
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1 cate may not be titled or registered for use on

2 roads or highways at any time after the issu3 ance of the certificate.

4 ‘‘(D) REQUIREMENT FOR NONREPAIRABLE

5 VEHICLE CERTIFICATE.—A nonrepairable vehi6 cle certificate shall be conspicuously labeled

7 with the term ‘Nonrepairable’ across the front

8 of the document.

9 ‘‘(8) FLOOD VEHICLE.—

10 ‘‘(A) IN GENERAL.—The term ‘flood vehi11 cle’ means any passenger motor vehicle that has

12 been submerged in water to the point that ris13 ing water has reached over the door sill of the

14 motor vehicle and has entered the passenger or

15 trunk compartment.

16 ‘‘(B) REQUIREMENT FOR DISCLOSURE.—

17 Disclosure that a passenger motor vehicle has

18 become a flood vehicle shall be made by the per19 son transferring ownership at the time of trans20 fer of ownership. After such transfer is com21 pleted, the certificate of title shall be conspicu22 ously labeled with the term ‘flood’ across the

23 front of the document.

24 ‘‘(9) SECRETARY.—The term ‘Secretary’ means

25 the Secretary of Transportation.
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1 ‘‘§ 33302. Passenger motor vehicle titling

2 ‘‘(a) CARRYFORWARD OF CERTAIN TITLE INFORMA3 TION IF A PREVIOUS TITLE WAS NOT ISSUED IN ACCORD4 ANCE WITH CERTAIN NATIONALLY UNIFORM STAND5 ARDS.—

6 ‘‘(1) IN GENERAL.—If—

7 ‘‘(A) records that are readily accessible to

8 a State indicate that a passenger motor vehicle

9 with respect to which the ownership is trans10 ferred on or after the date that is 1 year after

11 the date of enactment of the National Motor

12 Vehicle Safety, Antitheft, Title Reform, and

13 Consumer Protection Act of 1996, has been is14 sued previously a title that bore a term or sym15 bol described in paragraph (2); and

16 ‘‘(B) the State licenses that vehicle for use,

17 the State shall disclose that fact on a certificate of

18 title issued by the State.

19 ‘‘(2) TERMS AND SYMBOLS.—

20 ‘‘(A) IN GENERAL.—A State shall be sub21 ject to the requirements of paragraph (1) with

22 respect to the following terms on a title that

23 has been issued previously to a passenger motor

24 vehicle (or symbols indicating the meanings of

25 those terms):

26 ‘‘(i) ‘Salvage’.
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1 ‘‘(ii) ‘Unrebuildable’.

2 ‘‘(iii) ‘Parts only’.

3 ‘‘(iv) ‘Scrap’.

4 ‘‘(v) ‘Junk’.

5 ‘‘(vi) ‘Nonrepairable’.

6 ‘‘(vii) ‘Reconstructed’.

7 ‘‘(viii) ‘Rebuilt’.

8 ‘‘(ix) Any other similar term, as deter9 mined by the Secretary.

10 ‘‘(B) FLOOD DAMAGE.—A State shall be

11 subject to the requirements of paragraph (1) if

12 a term or symbol on a title issued previously for

13 a passenger vehicle indicates that the vehicle

14 has been damaged by flood.

15 ‘‘(b) NATIONALLY UNIFORM TITLE STANDARDS AND

16 CONTROL METHODS.—

17 ‘‘(1) IN GENERAL.—Not later than 18 months

18 after the date of the enactment of the National

19 Motor Vehicle Safety, Antitheft, Title Reform, and

20 Consumer Protection Act of 1996, the Secretary

21 shall issue regulations that require each State that

22 licenses passenger motor vehicles with respect to

23 which the ownership is transferred on or after the

24 date that is 2 years after the issuance of final regu25 lations, to apply with respect to the issuance of the
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1 title for any such motor vehicle uniform standards,

2 procedures, and methods for—

3 ‘‘(A) the issuance and control of that title;

4 and

5 ‘‘(B) information to be contained on such

6 title.

7 ‘‘(2) CONTENTS OF REGULATIONS.—The titling

8 standards, control procedures, methods, and infor9 mation covered under the regulations issued under

10 this subsection shall include the following:

11 ‘‘(A) INDICATION OF STATUS.—Each State

12 shall indicate on the face of a title or certificate

13 for a passenger motor vehicle, as applicable, if

14 the passenger motor vehicle is a salvage vehicle,

15 a nonrepairable vehicle, a rebuilt salvage vehi16 cle, or a flood vehicle.

17 ‘‘(B) SUBSEQUENT TITLES.—The informa18 tion referred to in subparagraph (A) concerning

19 the status of the passenger vehicle shall be con20 veyed on any subsequent title, including a du21 plicate or replacement title, for the passenger

22 motor vehicle issued by the original titling State

23 or any other State.

24 ‘‘(C) SECURITY STANDARDS.—The title

25 documents, the certificates and decals required
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1 by section 33301(4), and the system for issuing

2 those documents, certificates, and decals shall

3 meet security standards that minimize opportu4 nities for fraud.

5 ‘‘(D) IDENTIFYING INFORMATION.—Each

6 certificate of title referred to in subparagraph

7 (A) shall include the passenger motor vehicle

8 make, model, body type, year, odometer disclo9 sure, and vehicle identification number.

10 ‘‘(E) UNIFORM LAYOUT.—The title docu11 ments covered under the regulations shall main12 tain a uniform layout, that shall be established

13 by the Secretary, in consultation with each

14 State or an organization that represents States.

15 ‘‘(F) NONREPAIRABLE VEHICLES.—A pas16 senger motor vehicle designated as nonrepair17 able—

18 ‘‘(i) shall be issued a nonrepairable

19 vehicle certificate; and

20 ‘‘(ii) may not be retitled.

21 ‘‘(G) REBUILT SALVAGE TITLE.—No re22 built salvage title may be issued to a salvage ve23 hicle unless, after the salvage vehicle is repaired

24 or rebuilt, the salvage vehicle complies with the
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1 requirements for a rebuilt salvage vehicle under

2 section 33301(4).

3 ‘‘(H) INSPECTION PROGRAMS.—Each State

4 inspection program shall be designed to comply

5 with the requirements of this subparagraph and

6 shall be subject to approval and periodic review

7 by the Secretary. Each such inspection program

8 shall include the following:

9 ‘‘(i) Each owner of a passenger motor

10 vehicle that submits a vehicle for an

11 antitheft inspection shall be required to

12 provide—

13 ‘‘(I) a completed document iden14 tifying the damage that occurred to

15 the vehicle before being repaired;

16 ‘‘(II) a list of replacement parts

17 used to repair the vehicle;

18 ‘‘(III) proof of ownership of the

19 replacement parts referred to in sub20 clause (II) (as evidenced by bills of

21 sale, invoices or, if such documents

22 are not available, other proof of own23 ership for the replacement parts); and

24 ‘‘(IV) an affirmation by the

25 owner that—
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1 ‘‘(aa) the information re2 quired to be submitted under this

3 subparagraph is complete and ac4 curate; and

5 ‘‘(bb) to the knowledge of

6 the declarant, no stolen parts

7 were used during the rebuilding

8 of the repaired vehicle.

9 ‘‘(ii) Any passenger motor vehicle or

10 any major part or major replacement part

11 required to be marked under this section

12 or the regulations issued under this section

13 that—

14 ‘‘(I) has a mark or vehicle identi15 fication number that has been illegally

16 altered, defaced, or falsified; or

17 ‘‘(II) cannot be identified as hav18 ing been legally obtained (through evi19 dence described in clause (i)(III)),

20 shall be contraband and subject to seizure.

21 ‘‘(iii) To avoid confiscation of parts

22 that have been legally rebuilt or manufac23 tured, the regulations issued under this

24 subsection shall include procedures that

25 the Secretary, in consultation with the At-
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1 torney General of the United States, shall

2 establish—

3 ‘‘(I) for dealing with parts with a

4 mark or vehicle identification number

5 that is normally removed during re6 manufacturing or rebuilding practices

7 that are considered acceptable by the

8 automotive industry; and

9 ‘‘(II) deeming any part referred

10 to in clause (i) to meet the identifica11 tion requirements under the regula12 tions if the part bears a conspicuous

13 mark of such type, and is applied in

14 such manner, as may be determined

15 by the Secretary to indicate that the

16 part has been rebuilt or remanufac17 tured.

18 ‘‘(iv) With respect to any vehicle part,

19 the regulations issued under this sub20 section shall—

21 ‘‘(I) acknowledge that a mark or

22 vehicle identification number on such

23 part may be legally removed or al24 tered, as provided under section 511

25 of title 18, United States Code; and
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1 ‘‘(II) direct inspectors to adopt

2 such procedures as may be necessary

3 to prevent the seizure of a part from

4 which the mark or vehicle identifica5 tion number has been legally removed

6 or altered.

7 ‘‘(v) The Secretary shall establish na8 tionally uniform safety inspection criteria

9 to be used in States that require such a

10 safety inspection. A State may determine

11 whether to conduct such safety inspection,

12 contract with a third party, or permit self13 inspection. Any inspection conducted under

14 this clause shall be subject to criteria es15 tablished by the Secretary. A State that re16 quires a safety inspection under this clause

17 may require the payment of a fee for such

18 inspection or the processing of such inspec19 tion.

20 ‘‘(I) DUPLICATE TITLES.—No duplicate or

21 replacement title may be issued by a State un22 less—

23 ‘‘(i) the term ‘duplicate’ is clearly

24 marked on the face of the duplicate or re25 placement title; and
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1 ‘‘(ii) the procedures issued are sub2 stantially consistent with the recommenda3 tion designated as recommendation 3 in

4 the report issued on February 10, 1994,

5 under section 140 of the Anti Car Theft

6 Act of 1992 (15 U.S.C. 2041 note) by the

7 task force established under such section.

8 ‘‘(J) TITLING AND CONTROL METHODS.—

9 Each State shall employ the following titling

10 and control methods:

11 ‘‘(i) If an insurance company is not

12 involved in a damage settlement involving

13 a salvage vehicle or a nonrepairable vehi14 cle, the passenger motor vehicle owner

15 shall be required to apply for a salvage

16 title or nonrepairable vehicle certificate,

17 whichever is applicable, before the earlier

18 of the date—

19 ‘‘(I) on which the passenger

20 motor vehicle is repaired or the own21 ership of the passenger motor vehicle

22 is transferred; or

23 ‘‘(II) that is 30 days after the

24 passenger motor vehicle is damaged.
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1 ‘‘(ii) If an insurance company, under

2 a damage settlement, acquires ownership

3 of a passenger motor vehicle that has in4 curred damage requiring the vehicle to be

5 titled as a salvage vehicle or nonrepairable

6 vehicle, the insurance company shall be re7 quired to apply for a salvage title or non8 repairable vehicle certificate not later than

9 15 days after the title to the motor vehicle

10 is—

11 ‘‘(I) properly assigned by the

12 owner to the insurance company; and

13 ‘‘(II) delivered to the insurance

14 company with all liens released.

15 ‘‘(iii) If an insurance company does

16 not assume ownership of a passenger

17 motor vehicle of an insured person or

18 claimant that has incurred damage requir19 ing the vehicle to be titled as a salvage ve20 hicle or nonrepairable vehicle, the insur21 ance company shall, as required by the ap22 plicable State—

23 ‘‘(I) notify—

24 ‘‘(aa) the owner of the own25 er’s obligation to apply for a sal-
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1 vage title or nonrepairable vehicle

2 certificate for the passenger

3 motor vehicle; and

4 ‘‘(bb) the State passenger

5 motor vehicle titling office that a

6 salvage title or nonrepairable ve7 hicle certificate should be issued

8 for the vehicle; or

9 ‘‘(II) withhold payment of the

10 claim until the owner applies for a

11 salvage title or nonrepairable vehicle

12 certificate.

13 ‘‘(iv) If a leased passenger motor vehi14 cle incurs damage requiring the vehicle to

15 be titled as a salvage vehicle or nonrepair16 able vehicle, the lessor shall be required to

17 apply for a salvage title or nonrepairable

18 vehicle certificate not later than 21 days

19 after being notified by the lessee that the

20 vehicle has been so damaged, except in any

21 case in which an insurance company, under

22 a damage settlement, acquires ownership

23 of the vehicle. The lessee of such vehicle

24 shall be required to inform the lessor that

25 the leased vehicle has been so damaged not
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1 later than 30 days after the occurrence of

2 the damage.

3 ‘‘(v)(I) Any person who acquires own4 ership of a damaged passenger motor vehi5 cle that meets the definition of a salvage or

6 nonrepairable vehicle for which a salvage

7 title or nonrepairable vehicle certificate has

8 not been issued, shall be required to apply

9 for a salvage title or nonrepairable vehicle

10 certificate, whichever is applicable.

11 ‘‘(II) An application under subclause

12 (I) shall be made the earlier of—

13 ‘‘(aa) the date on which the vehi14 cle is further transferred; or

15 ‘‘(bb) 30 days after ownership is

16 acquired.

17 ‘‘(III) The requirements of this clause

18 shall not apply to any scrap metal proc19 essor that—

20 ‘‘(aa) acquires a passenger motor

21 vehicle for the sole purpose of process22 ing the motor vehicle into prepared

23 grades of scrap; and

24 ‘‘(bb) carries out that processing.
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1 ‘‘(vi) State records shall note when a

2 nonrepairable vehicle certificate is issued.

3 No State shall issue a nonrepairable vehi4 cle certificate after 2 transfers of owner5 ship in violation of section 33301(b)(7)(B).

6 ‘‘(vii)(I) In any case in which a pas7 senger motor vehicle has been flattened,

8 baled, or shredded, whichever occurs first,

9 the title or nonrepairable vehicle certificate

10 for the vehicle shall be surrendered to the

11 State not later than 30 days after that oc12 currence.

13 ‘‘(II) If the second transferee on a

14 nonrepairable vehicle certificate is

15 unequipped to flatten, bale, or shred the

16 vehicle, such transferee shall be required,

17 at the time of final disposal of the vehicle,

18 to use the services of a professional auto19 motive recycler or professional scrap proc20 essor. That recycler or reprocessor shall

21 have the authority to—

22 ‘‘(aa) flatten, bale, or shred the

23 vehicle; and

24 ‘‘(bb) effect the surrender of the

25 nonrepairable vehicle certificate to the
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1 State on behalf of the second trans2 feree.

3 ‘‘(III) State records shall be updated

4 to indicate the destruction of a vehicle

5 under this clause and no further ownership

6 transactions for the vehicle shall be per7 mitted after the vehicle is so destroyed.

8 ‘‘(IV) If different from the State of

9 origin of the title or nonrepairable vehicle

10 certificate, the State of surrender shall no11 tify the State of origin of the surrender of

12 the title or nonrepairable vehicle certificate

13 and of the destruction of such vehicle.

14 ‘‘(viii)(I) In any case in which a sal15 vage title is issued, the State records shall

16 note that issuance. No State may permit

17 the retitling for registration purposes or is18 suance of a rebuilt salvage title for a pas19 senger motor vehicle with a salvage title

20 without a certificate of inspection that—

21 ‘‘(aa) complies with the security

22 and guideline standards established by

23 the Secretary under subparagraphs

24 (C) and (G), as applicable; and
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1 ‘‘(bb) indicates that the vehicle

2 has passed the inspections required by

3 the State under subparagraph (H).

4 ‘‘(II) Nothing in this clause shall pre5 clude the issuance of a new salvage title

6 for a salvage vehicle after a transfer of

7 ownership.

8 ‘‘(ix) After a passenger motor vehicle

9 titled with a salvage title has passed the

10 inspections required by the State, the in11 spection official shall—

12 ‘‘(I) affix a secure decal required

13 under section 33301(4) (that meets

14 permanency requirements that the

15 Secretary shall establish by regula16 tion) to the door jamb on the driver’s

17 side of the vehicle; and

18 ‘‘(II) issue to the owner of the

19 vehicle a certificate indicating that the

20 passenger motor vehicle has passed

21 the inspections required by the State.

22 ‘‘(x)(I) The owner of a passenger

23 motor vehicle titled with a salvage title

24 may obtain a rebuilt salvage title and vehi25 cle registration by presenting to the State
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1 the salvage title, properly assigned, if ap2 plicable, along with the certificate that the

3 vehicle has passed the inspections required

4 by the State.

5 ‘‘(II) If the owner of a rebuilt salvage

6 vehicle submits the documentation referred

7 to in subclause (I), the State shall issue

8 upon the request of the owner a rebuilt

9 salvage title and registration to the owner.

10 When a rebuilt salvage title is issued, the

11 State records shall so note.

12 ‘‘(K) FLOOD VEHICLES.—

13 ‘‘(i) IN GENERAL.—A seller of a pas14 senger motor vehicle that becomes a flood

15 vehicle shall, at or before the time of trans16 fer of ownership, provide a written notice

17 to the purchaser that the vehicle is a flood

18 vehicle. At the time of the next title appli19 cation for the vehicle—

20 ‘‘(I) the applicant shall disclose

21 the flood status to the applicable

22 State with the properly assigned title;

23 and
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•S 2030 IS

1 ‘‘(II) the term ‘Flood’ shall be

2 conspicuously labeled across the front

3 of the new title document.

4 ‘‘(ii) LEASED VEHICLES.—In the case

5 of a leased passenger motor vehicle, the

6 lessee, within 15 days after the occurrence

7 of the event that caused the vehicle to be8 come a flood vehicle, shall give the lessor

9 written disclosure that the vehicle is a

10 flood vehicle.

11 ‘‘(c) ELECTRONIC PROCEDURES.—A State may em12 ploy electronic procedures in lieu of paper documents in

13 any case in which such electronic procedures provide levels

14 of information, function, and security required by this sec15 tion that are at least equivalent to the levels otherwise pro16 vided by paper documents.

17 ‘‘§ 33303. Petitions for extensions of time

18 ‘‘(a) IN GENERAL.—Subject to subsection (b), if a

19 State demonstrates to the satisfaction of the Secretary,

20 a valid reason for needing an extension of a deadline for

21 compliance with requirements under section 33302(a), the

22 Secretary may extend, for a period determined by the Sec23 retary, an otherwise applicable deadline with respect to

24 that State.
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1 ‘‘(b) LIMITATION.—No extension made under sub2 section (a) shall remain in effect on or after the applicable

3 compliance date established under section 33302(b).

4 ‘‘§ 33304. Effect on State law

5 ‘‘(a) IN GENERAL.—Beginning on the effective date

6 of the regulations issued under section 33302, this chapter

7 shall preempt any State law, to the extent that State law

8 is inconsistent with this chapter or the regulations issued

9 under this chapter (including the regulations issued under

10 section 33302), that—

11 ‘‘(1) establish the form of the passenger motor

12 vehicle title;

13 ‘‘(2)(A) define, in connection with a passenger

14 motor vehicle (but not in connection with a pas15 senger motor vehicle part or part assembly separate

16 from a passenger motor vehicle)—

17 ‘‘(i) any term defined in section 33301;

18 ‘‘(ii) the term ‘salvage’, ‘junk’, ‘recon19 structed’, ‘nonrepairable’, ‘unrebuildable’,

20 ‘scrap’, ‘parts only’, ‘rebuilt’, ‘flood’, or any

21 other similar symbol or term; or

22 ‘‘(B) apply any of the terms referred to in sub23 paragraph (A) to any passenger motor vehicle (but

24 not in connection with a passenger motor vehicle
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1 part or part assembly separate from a passenger

2 motor vehicle); and

3 ‘‘(3) establish titling, recordkeeping, antitheft

4 inspection, or control procedures in connection with

5 any salvage vehicle, rebuilt salvage vehicle, non6 repairable vehicle, or flood vehicle.

7 ‘‘(b) RULE OF CONSTRUCTION.—

8 ‘‘(1) ADDITIONAL DISCLOSURES.—Additional

9 disclosures of the title status or history of a motor

10 vehicle, in addition to disclosures made concerning

11 the applicability of terms defined in section 33301,

12 may not be considered to be inconsistent with this

13 chapter.

14 ‘‘(2) INCONSISTENT TERMS.—When used in

15 connection with a passenger motor vehicle (but not

16 in connection with a passenger motor vehicle part or

17 part assembly separate from a passenger motor vehi18 cle), any definition under Federal or State law of a

19 term defined in section 33301 that is different from

20 the definition provided for in that section or any use

21 of any other term listed in subsection (a), shall be

22 considered to be inconsistent with this chapter.

23 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in

24 this chapter shall preclude a State from disclosing

25 on a rebuilt salvage title that a rebuilt salvage vehi-
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1 cle has passed a State safety inspection that differed

2 from the nationally uniform criteria promulgated

3 under section 33302(b)(2)(H)(v).

4 ‘‘§ 33305. Civil and criminal penalties

5 ‘‘(a) PROHIBITED ACTS.—It shall be unlawful for any

6 person knowingly and willfully to—

7 ‘‘(1) make or cause to be made any false state8 ment on an application for a title (or duplicate title)

9 for a passenger motor vehicle;

10 ‘‘(2) fail to apply for a salvage title in any case

11 in which such an application is required;

12 ‘‘(3) alter, forge, or counterfeit—

13 ‘‘(A) a certificate of title (or an assignment

14 thereof);

15 ‘‘(B) a nonrepairable vehicle certificate;

16 ‘‘(C) a certificate verifying an antitheft in17 spection or an antitheft and safety inspection;

18 or

19 ‘‘(D) a decal affixed to a passenger motor

20 vehicle under section 33302(b)(2)(J)(ix);

21 ‘‘(4) falsify the results of, or provide false infor22 mation in the course of, an inspection conducted

23 under section 33302(b)(2)(H);

24 ‘‘(5) offer to sell any salvage vehicle or non25 repairable vehicle as a rebuilt salvage vehicle; or
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1 ‘‘(6) conspire to commit any act under para2 graph (1), (2), (3), (4), or (5).

3 ‘‘(b) CIVIL PENALTY.—Any person who commits an

4 unlawful act under subsection (a) shall be subject to a civil

5 penalty in an amount not to exceed $2,000.

6 ‘‘(c) CRIMINAL PENALTY.—Any person who know7 ingly commits an unlawful act under subsection (a) shall,

8 upon conviction, be—

9 ‘‘(1) subject to a fine in an amount not to ex10 ceed $50,000;

11 ‘‘(2) imprisoned for a term not to exceed 3

12 years; or

13 ‘‘(3) subject to both fine under paragraph (1)

14 and imprisonment under paragraph (2).’’.

15 (b) CONFORMING AMENDMENT.—The analysis for

16 subtitle VI of title 49, United States Code, is amended

17 by adding at the end the following new item:

‘‘333. Automobile Safety, Antitheft, and Title Disclosure

Requirements ..........................................................33301’’.

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