Calendar No. 231

106TH CONGRESS

1ST SESSION S. 655

[Report No. 106–123]

A BILL

To establish nationally uniform requirements renonrepairable, and rebuilt vehicles. garding the titling and registration of salvage,

JULY 28, 1999

Reported without amendment
II

Calendar No. 231

106TH CONGRESS

1ST SESSION S. 655

[Report No. 106–123]

To establish nationally uniform requirements regarding the titling and

registration of salvage, nonrepairable, and rebuilt vehicles.

IN THE SENATE OF THE UNITED STATES

MARCH 17, 1999

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, Mr. GRAMS, Mr.

BREAUX, Mr. THOMAS, Mr. THOMPSON, Mr. ROBERTS, Mr. HATCH, and

Mr. ABRAHAM) introduced the following bill; which was read twice and

referred to the Committee on Commerce, Science, and Transportation

JULY 28, 1999

Reported by Mr. MCCAIN, without amendment

A BILL

To establish nationally uniform requirements regarding the

titling and registration of salvage, nonrepairable, and

rebuilt vehicles.

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

2 This Act may be cited as the ‘‘National Salvage

3 Motor Vehicle Consumer Protection Act of 1999’’.

4 SEC. 2. MOTOR VEHICLE TITLING AND DISCLOSURE RE5 QUIREMENTS.

6 (a) AMENDMENT TO TITLE 49, UNITED STATES

7 CODE.—Subtitle VI of title 49, United States Code, is

8 amended by inserting a new chapter at the end:

9 ‘‘CHAPTER 333—AUTOMOBILE SAFETY

10 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

11 ‘‘§ 33301. Definitions

12 ‘‘(a) DEFINITIONS.—For the purposes of this chap13 ter:

14 ‘‘(1) PASSENGER MOTOR VEHICLE.—The term

15 ‘passenger motor vehicle’ has the same meaning

16 given such term by section 32101(10), except, not17 withstanding section 32101(9), it includes a multi18 purpose passenger vehicle (constructed on a truck

19 chassis or with special features for occasional off20 road operation), a truck, other than a truck referred
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1 to in section 32101(10)(B), and a pickup truck

2 when that vehicle or truck is rated by the manufac3 turer of such vehicle or truck at not more than

4 10,000 pounds gross vehicle weight, and it only in5 cludes a vehicle manufactured primarily for use on

6 public streets, roads, and highways.

7 ‘‘(2) SALVAGE VEHICLE.—The term ‘salvage ve8 hicle’ means any passenger motor vehicle, other than

9 a flood vehicle or a nonrepairable vehicle, which—

10 ‘‘(A) is a late model vehicle which has been

11 wrecked, destroyed, or damaged, to the extent

12 that the total cost of repairs to rebuild or re13 construct the passenger motor vehicle to its

14 condition immediately before it was wrecked,

15 destroyed, or damaged, and for legal operation

16 on the roads or highways, exceeds 75 percent of

17 the retail value of the passenger motor vehicle

18 at the time it was wrecked, destroyed, or dam19 aged;

20 ‘‘(B) is a late model vehicle which has been

21 wrecked, destroyed, or damaged, and to which

22 an insurance company acquires ownership pur23 suant to a damage settlement (except in the

24 case of a settlement in connection with a recov25 ered stolen vehicle, unless such vehicle sus-
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1 tained damage sufficient to meet the damage

2 threshold prescribed by subparagraph (A)); or

3 ‘‘(C) the owner wishes to voluntarily des4 ignate as a salvage vehicle by obtaining a sal5 vage title, without regard to the level of dam6 age, age, or value of such vehicle or any other

7 factor, except that such designation by the

8 owner shall not impose on the insurer of the

9 passenger motor vehicle or on an insurer proc10 essing a claim made by or on behalf of the

11 owner of the passenger motor vehicle any obli12 gation or liability.

13 Notwithstanding any other provision of this chapter,

14 a State may use the term ‘older model salvage vehi15 cle’ to designate a wrecked, destroyed, or damaged

16 vehicle that does not meet the definition of a late

17 model vehicle in paragraph (9). If a State has estab18 lished or establishes a salvage definition at a lesser

19 percentage than provided under subparagraph (A),

20 then that definition shall not be considered to be in21 consistent with the provisions of this chapter.

22 ‘‘(3) SALVAGE TITLE.—The term ‘salvage title’

23 means a passenger motor vehicle ownership docu24 ment issued by the State to the owner of a salvage
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1 vehicle. A salvage title shall be conspicuously labeled

2 with the word ‘salvage’ across the front.

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

4 ‘rebuilt salvage vehicle’ means—

5 ‘‘(A) any passenger motor vehicle which

6 was previously issued a salvage title, has passed

7 State anti-theft inspection, has been issued a

8 certificate indicating that the passenger motor

9 vehicle has passed the required anti-theft in10 spection, has passed the State safety inspection

11 in those States requiring a safety inspection

12 pursuant to section 33302(b)(8), has been

13 issued a certificate indicating that the pas14 senger motor vehicle has passed the required

15 safety inspection in those States requiring such

16 a safety inspection pursuant to section

17 33302(b)(8), and has a decal stating ‘Rebuilt

18 Salvage Vehicle—Anti-theft and Safety Inspec19 tions Passed’ affixed to the driver’s door jamb;

20 or

21 ‘‘(B) any passenger motor vehicle which

22 was previously issued a salvage title, has passed

23 a State anti-theft inspection, has been issued a

24 certificate indicating that the passenger motor

25 vehicle has passed the required anti-theft in-
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1 spection, and has, affixed to the driver’s door

2 jamb, a decal stating ‘Rebuilt Salvage Vehicle—

3 Anti-theft Inspection Passed/No Safety Inspec4 tion Pursuant to National Criteria’ in those

5 States not requiring a safety inspection pursu6 ant to section 33302(b)(8).

7 ‘‘(5) REBUILT SALVAGE TITLE.—The term ‘re8 built salvage title’ means the passenger motor vehi9 cle ownership document issued by the State to the

10 owner of a rebuilt salvage vehicle. A rebuilt salvage

11 title shall be conspicuously labeled either with the

12 words ‘Rebuilt Salvage Vehicle—Anti-theft and

13 Safety Inspections Passed’ or ‘Rebuilt Salvage Vehi14 cle—Anti-theft Inspection Passed/No Safety Inspec15 tion Pursuant to National Criteria,’ as appropriate,

16 across the front.

17 ‘‘(6) NONREPAIRABLE VEHICLE.—The term

18 ‘nonrepairable vehicle’ means any passenger motor

19 vehicle, other than a flood vehicle, which is incapable

20 of safe operation for use on roads or highways and

21 which has no resale value except as a source of parts

22 or scrap only or which the owner irreversibly des23 ignates as a source of parts or scrap. Such pas24 senger motor vehicle shall be issued a nonrepairable
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1 vehicle certificate and shall never again be titled or

2 registered.

3 ‘‘(7) NONREPAIRABLE VEHICLE CERTIFI4 CATE.—The term ‘nonrepairable vehicle certificate’

5 means a passenger motor vehicle ownership docu6 ment issued by the State to the owner of a non7 repairable vehicle. A nonrepairable vehicle certificate

8 shall be conspicuously labeled with the word ‘Non9 repairable’ across the front.

10 ‘‘(8) SECRETARY.—The term ‘Secretary’ means

11 the Secretary of Transportation.

12 ‘‘(9) LATE MODEL VEHICLE.—The term ‘Late

13 Model Vehicle’ means any passenger motor vehicle

14 which—

15 ‘‘(A) has a manufacturer’s model year des16 ignation of or later than the year in which the

17 vehicle was wrecked, destroyed, or damaged, or

18 any of the six preceding years; or

19 ‘‘(B) has a retail value of more than

20 $7,500.

21 The Secretary shall adjust such retail value by $500

22 increments every 5 years beginning with an increase

23 to $8,000 on January 1, 2005.
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1 ‘‘(10) RETAIL VALUE.—The term ‘retail value’

2 means the actual cash value, fair market value, or

3 retail value of a passenger motor vehicle as—

4 ‘‘(A) set forth in a current edition of any

5 nationally recognized compilation (to include

6 automated databases) of retail values; or

7 ‘‘(B) determined pursuant to a market sur8 vey of comparable vehicles with regard to condi9 tion and equipment.

10 ‘‘(11) COST OF REPAIRS.—The term ‘cost of re11 pairs’ means the estimated retail cost of parts need12 ed to repair the vehicle or, if the vehicle has been

13 repaired, the actual retail cost of the parts used in

14 the repair, and the cost of labor computed by using

15 the hourly labor rate and time allocations that are

16 reasonable and customary in the automobile repair

17 industry in the community where the repairs are to

18 be performed.

19 ‘‘(12) FLOOD VEHICLE.—

20 ‘‘(A) IN GENERAL.—The term ‘flood vehi21 cle’ means any passenger motor vehicle that—

22 ‘‘(i) has been acquired by an insur23 ance company as part of a damage settle24 ment due to water damage; or
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1 ‘‘(ii) has been submerged in water to

2 the point that rising water has reached

3 over the door sill, has entered the pas4 senger or trunk compartment, and has ex5 posed any electrical, computerized, or me6 chanical component to water, except where

7 a passenger motor vehicle which, pursuant

8 to an inspection conducted by an insurance

9 adjuster or estimator, a motor vehicle re10 pairer or motor vehicle dealer in accord11 ance with inspection guidelines or proce12 dures established by the Secretary or the

13 State, is determined—

14 ‘‘(I) to have no electrical, com15 puterized, or mechanical components

16 which were damaged by water; or

17 ‘‘(II) to have one or more elec18 trical, computerized, or mechanical

19 components which were damaged by

20 water and where all such damaged

21 components have been repaired or re22 placed.

23 ‘‘(B) INSPECTION NOT REQUIRED FOR ALL

24 FLOOD VEHICLES.—No inspection under sub25 paragraph (A) shall be required unless the
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1 owner or insurer of the passenger motor vehicle

2 is seeking to avoid a brand of ‘Flood’ pursuant

3 to this chapter.

4 ‘‘(C) INSPECTION MUST BE BY

5 INDEPENDANT PARTY.—A motor vehicle re6 pairer or motor vehicle dealer may not carry

7 out an inspection under subparagraph (A) on a

8 passenger motor vehicle that has been repaired,

9 or is to be sold or leased, by that repairer or

10 dealer.

11 ‘‘(D) EFFECT OF DISCLOSURE.—Dis12 closing a passenger motor vehicle’s status as a

13 flood vehicle or conducting an inspection pursu14 ant to subparagraph (A) shall not impose on

15 any person any liability for damage to (except

16 in the case of damage caused by the inspector

17 at the time of the inspection) or reduced value

18 of a passenger motor vehicle.

19 ‘‘(b) CONSTRUCTION.—The definitions set forth in

20 subsection (a) only apply to vehicles in a State which are

21 wrecked, destroyed, or otherwise damaged on or after the

22 date on which such State complies with the requirements

23 of this chapter and the rule promulgated pursuant to sec24 tion 33302(b).
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1 ‘‘§ 33302. Passenger motor vehicle titling

2 ‘‘(a) CARRY-FORWARD OF STATE INFORMATION.—

3 For any passenger motor vehicle, the ownership of which

4 is transferred on or after the date that is 1 year after

5 the date of the enactment of the National Salvage Motor

6 Vehicle Consumer Protection Act of 1999, any State re7 ceiving funds under section 33308 of this chapter, in li8 censing such vehicle for use, shall disclose in writing on

9 the certificate of title whenever records readily accessible

10 to the State indicate that the passenger motor vehicle was

11 previously issued a title that bore any word or symbol sig12 nifying that the vehicle was ‘salvage’, ‘older model sal13 vage’, ‘unrebuildable’, ‘parts only’, ‘scrap’, ‘junk’, ‘non14 repairable’, ‘reconstructed’, ‘rebuilt’, or any other symbol

15 or word of like kind, or that it has been damaged by flood,

16 and the name of the State that issued that title.

17 ‘‘(b) NATIONALLY UNIFORM TITLE STANDARDS AND

18 CONTROL METHODS.—Not later than 18 months after the

19 date of the enactment of the National Salvage Motor Vehi20 cle Consumer Protection Act of 1999, the Secretary shall

21 by rule require any State receiving funds under section

22 33308 of this chapter, in licensing any passenger motor

23 vehicle where ownership of such passenger motor vehicle

24 is transferred more than 2 years after publication of such

25 final rule, to apply uniform standards, procedures, and

26 methods for the issuance and control of titles for motor
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1 vehicles and for information to be contained on such titles.

2 Such titling standards, control procedures, methods, and

3 information shall include the following requirements:

4 ‘‘(1) A State shall conspicuously indicate on the

5 face of the title or certificate for a passenger motor

6 vehicle, as applicable, if the passenger motor vehicle

7 is a salvage vehicle, a nonrepairable vehicle, a rebuilt

8 salvage vehicle, or a flood vehicle.

9 ‘‘(2) Such information concerning a passenger

10 motor vehicle’s status shall be conveyed on any sub11 sequent title, including a duplicate or replacement

12 title, for the passenger motor vehicle issued by the

13 original titling State or any other State.

14 ‘‘(3) The title documents, the certificates, and

15 decals required by section 33301(4), and the issuing

16 system shall meet security standards minimizing the

17 opportunities for fraud.

18 ‘‘(4) The certificate of title shall include the

19 passenger motor vehicle make, model, body type,

20 year, odometer disclosure, and vehicle identification

21 number.

22 ‘‘(5) The title documents shall maintain a uni23 form layout, to be established in consultation with

24 the States or an organization representing them.
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1 ‘‘(6) A passenger motor vehicle designated as

2 nonrepairable shall be issued a nonrepairable vehicle

3 certificate and shall not be retitled.

4 ‘‘(7) No rebuilt salvage title shall be issued to

5 a salvage vehicle unless, after the salvage vehicle is

6 repaired or rebuilt, it complies with the requirements

7 for a rebuilt salvage vehicle pursuant to section

8 33301(4). Any State inspection program operating

9 under this paragraph shall be subject to continuing

10 review by and approval of the Secretary. Any such

11 anti-theft inspection program shall include the fol12 lowing:

13 ‘‘(A) A requirement that the owner of any

14 passenger motor vehicle submitting such vehicle

15 for an anti-theft inspection provide a completed

16 document identifying the vehicle’s damage prior

17 to being repaired, a list of replacement parts

18 used to repair the vehicle, and proof of owner19 ship of such replacement parts, as may be evi20 denced by bills of sale, invoices, or, if such doc21 uments are not available, other proof of owner22 ship for the replacement parts. The owner shall

23 also include an affirmation that the information

24 in the declaration is complete and accurate and
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1 that, to the knowledge of the declarant, no sto2 len parts were used during the rebuilding.

3 ‘‘(B) A requirement to inspect the pas4 senger motor vehicle or any major part or any

5 major replacement part required to be marked

6 under section 33102 for signs of such mark or

7 vehicle identification number being illegally al8 tered, defaced, or falsified. Any such passenger

9 motor vehicle or any such part having a mark

10 or vehicle identification number that has been

11 illegally altered, defaced, or falsified, and that

12 cannot be identified as having been legally ob13 tained (through bills of sale, invoices, or other

14 ownership documentation), shall be contraband

15 and subject to seizure. The Secretary, in con16 sultation with the Attorney General, shall, as

17 part of the rule required by this section, estab18 lish procedures for dealing with those parts

19 whose mark or vehicle identification number is

20 normally removed during industry accepted re21 manufacturing or rebuilding practices, which

22 parts shall be deemed identified for purposes of

23 this section if they bear a conspicuous mark of

24 a type, and applied in such a manner, as des25 ignated by the Secretary, indicating that they
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1 have been rebuilt or remanufactured. With re2 spect to any vehicle part, the Secretary’s rule,

3 as required by this section, shall acknowledge

4 that a mark or vehicle identification number on

5 such part may be legally removed or altered as

6 provided for in section 511 of title 18, United

7 States Code, and shall direct inspectors to

8 adopt such procedures as may be necessary to

9 prevent the seizure of a part from which the

10 mark or vehicle identification number has been

11 legally removed or altered.

12 ‘‘(8) Any safety inspection for a rebuilt salvage

13 vehicle performed pursuant to this chapter shall be

14 performed in accordance with nationally uniform

15 safety inspection criteria established by the Sec16 retary. A State may determine whether to conduct

17 such safety inspection itself, contract with one or

18 more third parties, or permit self-inspection by a

19 person licensed by such State in an automotive-re20 lated business, all subject to criteria promulgated by

21 the Secretary hereunder. Any State inspection pro22 gram operating under this paragraph shall be sub23 ject to continuing review by and approval of the Sec24 retary. A State requiring such safety inspection may
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1 require the payment of a fee for the privilege of such

2 inspection or the processing thereof.

3 ‘‘(9) No duplicate or replacement title shall be

4 issued unless the word ‘duplicate’ is clearly marked

5 on the face thereof and unless the procedures for

6 such issuance are substantially consistent with Rec7 ommendation three of the Motor Vehicle Titling,

8 Registration and Salvage Advisory Committee.

9 ‘‘(10) A State shall employ the following titling

10 and control methods:

11 ‘‘(A) If an insurance company is not in12 volved in a damage settlement involving a sal13 vage vehicle or a nonrepairable vehicle, the pas14 senger motor vehicle owner shall apply for a

15 salvage title or nonrepairable vehicle certificate,

16 whichever is applicable, before the passenger

17 motor vehicle is repaired or the ownership of

18 the passenger motor vehicle is transferred, but

19 in any event within 30 days after the passenger

20 motor vehicle is damaged.

21 ‘‘(B) If an insurance company, pursuant to

22 a damage settlement, acquires ownership of a

23 passenger motor vehicle that has incurred dam24 age requiring the vehicle to be titled as a sal25 vage vehicle or nonrepairable vehicle, the insur-
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1 ance company or salvage facility or other agent

2 on its behalf shall apply for a salvage title or

3 nonrepairable vehicle certificate within 30 days

4 after the title is properly assigned by the owner

5 to the insurance company and delivered to the

6 insurance company or salvage facility or other

7 agent on its behalf with all liens released.

8 ‘‘(C) If an insurance company does not as9 sume ownership of an insured’s or claimant’s

10 passenger motor vehicle that has incurred dam11 age requiring the vehicle to be titled as a sal12 vage vehicle or nonrepairable vehicle, the insur13 ance company shall notify—

14 ‘‘(i) the owner of the owner’s obliga15 tion to apply for a salvage title or non16 repairable vehicle certificate for the pas17 senger motor vehicle; and

18 ‘‘(ii) the State passenger motor vehi19 cle titling office that a salvage title or non20 repairable vehicle certificate should be

21 issued for the vehicle,

22 except to the extent such notification is prohib23 ited by State insurance law. The notices shall

24 be made in writing within 30 days after the in25 surance company determines that the damage
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1 will require a salvage title or a nonrepairable

2 certificate and that the vehicle will be left with

3 the owner.

4 ‘‘(D) If a leased passenger motor vehicle

5 incurs damage requiring the vehicle to be titled

6 as a salvage vehicle or nonrepairable vehicle,

7 the lessor shall apply for a salvage title or non8 repairable vehicle certificate within 21 days

9 after being notified by the lessee that the vehi10 cle has been so damaged, except when an insur11 ance company, pursuant to a damage settle12 ment, acquires ownership of the vehicle. The

13 lessee of such vehicle shall inform the lessor

14 that the leased vehicle has been so damaged

15 within 30 days after the occurrence of the dam16 age. Nothing in this subparagraph requires that

17 the requirements for notification be contained

18 in the lease itself, as long as effective notice is

19 provided by the lessor to the lessee of the re20 quirements.

21 ‘‘(E) Any person acquiring ownership of a

22 damaged passenger motor vehicle that meets

23 the definition of a salvage or nonrepairable ve24 hicle for which a salvage title or nonrepairable

25 vehicle certificate has not been issued, shall
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1 apply for a salvage title or nonrepairable vehicle

2 certificate, whichever is applicable. This appli3 cation shall be made before the vehicle is fur4 ther transferred, but in any event, within 30

5 days after ownership is acquired. The require6 ments of this subparagraph shall not apply to

7 any scrap metal processor which acquires a pas8 senger motor vehicle for the sole purpose of

9 processing it into prepared grades of scrap and

10 which so processes such vehicle.

11 ‘‘(F) State records shall note when a non12 repairable vehicle certificate is issued. No State

13 shall issue a nonrepairable vehicle certificate

14 after 2 transfers of ownership.

15 ‘‘(G) When a passenger motor vehicle has

16 been flattened, baled, or shredded, whichever

17 comes first, the title or nonrepairable vehicle

18 certificate for the vehicle shall be surrendered

19 to the State within 30 days. If the second

20 transferee on a nonrepairable vehicle certificate

21 is unequipped to flatten, bale, or shred the vehi22 cle, such transferee shall, at the time of final

23 disposal of the vehicle, use the services of a pro24 fessional automotive recycler or professional

25 scrap processor who is hereby authorized to
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1 flatten, bale, or shred the vehicle and to effect

2 the surrender of the nonrepairable vehicle cer3 tificate to the State on behalf of such second

4 transferee. State records shall be updated to in5 dicate the destruction of such vehicle and no

6 further ownership transactions for the vehicle

7 will be permitted. If different than the State of

8 origin of the title or nonrepairable vehicle cer9 tificate, the State of surrender shall notify the

10 State of origin of the surrender of the title or

11 nonrepairable vehicle certificate and of the de12 struction of such vehicle.

13 ‘‘(H) When a salvage title is issued, the

14 State records shall so note. No State shall per15 mit the retitling for registration purposes or

16 issuance of a rebuilt salvage title for a pas17 senger motor vehicle with a salvage title without

18 a certificate of inspection, which complies with

19 the security and guideline standards established

20 by the Secretary pursuant to paragraphs (3),

21 (7), and (8), as applicable, indicating that the

22 vehicle has passed the inspections required by

23 the State. This subparagraph does not preclude

24 the issuance of a new salvage title for a salvage

25 vehicle after a transfer of ownership.
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1 ‘‘(I) After a passenger motor vehicle titled

2 with a salvage title has passed the inspections

3 required by the State, the inspection official will

4 affix the secure decal required pursuant to sec5 tion 33301(4) to the driver’s door jamb of the

6 vehicle and issue to the owner of the vehicle a

7 certificate indicating that the passenger motor

8 vehicle has passed the inspections required by

9 the State. The decal shall comply with the per10 manency requirements established by the Sec11 retary.

12 ‘‘(J) The owner of a passenger motor vehi13 cle titled with a salvage title may obtain a re14 built salvage title or vehicle registration, or

15 both, by presenting to the State the salvage

16 title, properly assigned, if applicable, along with

17 the certificate that the vehicle has passed the

18 inspections required by the State. With such

19 proper documentation and upon request, a re20 built salvage title or registration, or both, shall

21 be issued to the owner. When a rebuilt salvage

22 title is issued, the State records shall so note.

23 ‘‘(11) A seller of a passenger motor vehicle that

24 becomes a flood vehicle shall, prior to the time of

25 transfer of ownership of the vehicle, give the trans-
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1 feree a written notice that the vehicle has been dam2 aged by flood, provided such person has actual

3 knowledge that such vehicle has been damaged by

4 flood. At the time of the next title application for

5 the vehicle, disclosure of the flood status shall be

6 provided to the applicable State with the properly

7 assigned title and the word ‘Flood’ shall be conspicu8 ously labeled across the front of the new title.

9 ‘‘(12) In the case of a leased passenger motor

10 vehicle, the lessee, within 15 days of the occurrence

11 of the event that caused the vehicle to become a

12 flood vehicle, shall give the lessor written disclosure

13 that the vehicle is a flood vehicle.

14 ‘‘(13) Ownership of a passenger motor vehicle

15 may be transferred on a salvage title, however, a

16 passenger motor vehicle for which a salvage title has

17 been issued shall not be registered for use on the

18 roads or highways unless it has been issued a rebuilt

19 salvage title.

20 ‘‘(14) Ownership of a passenger motor vehicle

21 may be transferred on a rebuilt salvage title, and a

22 passenger motor vehicle for which a rebuilt salvage

23 title has been issued may, if permitted by State law,

24 be registered for use on the roads and highways.
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1 ‘‘(15) Ownership of a passenger motor vehicle

2 may only be transferred 2 times on a nonrepairable

3 vehicle certificate. A passenger motor vehicle for

4 which a nonrepairable vehicle certificate has been

5 issued can never be titled or registered for use on

6 roads or highways.

7 ‘‘(c) ELECTRONIC PROCEDURES.—A State may em8 ploy electronic procedures in lieu of paper documents

9 whenever such electronic procedures provide the same in10 formation, function, and security otherwise required by

11 this section.

12 ‘‘(d) NATIONAL RECORD OF COMPLIANT STATES.—

13 The Secretary shall establish a record of the States which

14 are in compliance with the requirements of subsections (a)

15 and (b) of this section. The Secretary shall work with

16 States to update this record upon the enactment of a State

17 law which causes a State to come into compliance or be18 come noncompliant with the requirements of subsections

19 (a) and (b) of this section. Not later than 18 months after

20 the enactment of the National Salvage Motor Vehicle Con21 sumer Protection Act of 1999, the Secretary shall estab22 lish a mechanism or mechanisms to identify to interested

23 parties whether a State is in compliance with the require24 ments of subsections (a) and (b) of this section.
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1 ‘‘§ 33303. Disclosure and label requirements on trans2 fer of rebuilt salvage vehicles

3 ‘‘(a) WRITTEN DISCLOSURE REQUIREMENTS.—

4 ‘‘(1) GENERAL RULE.—Under regulations pre5 scribed by the Secretary of Transportation, a person

6 transferring ownership of a rebuilt salvage vehicle

7 shall, prior to the time of transfer of ownership of

8 the vehicle, give the transferee a written disclosure

9 that the vehicle is a rebuilt salvage vehicle when

10 such person has actual knowledge of the status of

11 such vehicle.

12 ‘‘(2) FALSE STATEMENT.—A person making a

13 written disclosure required by a regulation pre14 scribed under paragraph (1) of this subsection may

15 not make a false statement in the disclosure.

16 ‘‘(3) COMPLETENESS.—A person acquiring a

17 rebuilt salvage vehicle for resale may accept a disclo18 sure under paragraph (1) only if it is complete.

19 ‘‘(4) REGULATIONS.—The regulations pre20 scribed by the Secretary shall provide the way in

21 which information is disclosed and retained under

22 paragraph (1).

23 ‘‘(b) LABEL REQUIREMENTS.—

24 ‘‘(1) IN GENERAL.—The Secretary shall by reg25 ulation require that a label be affixed to the wind26 shield or window of a rebuilt salvage vehicle before
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1 its first sale at retail containing such information re2 garding that vehicle as the Secretary may require.

3 The label shall be affixed by the individual who con4 ducts the applicable State antitheft inspection in a

5 participating State.

6 ‘‘(2) REMOVAL, ALTERATION, OR ILLEGIBILITY

7 OF REQUIRED LABEL.—No person shall willfully re8 move, alter, or render illegible any label required by

9 paragraph (1) affixed to a rebuilt salvage vehicle be10 fore the vehicle is delivered to the actual custody

11 and possession of the first retail purchaser.

12 ‘‘(c) LIMITATION.—The requirements of subsections

13 (a) and (b) shall only apply to a transfer of ownership

14 of a rebuilt salvage vehicle where such transfer occurs in

15 a State which, at the time of the transfer, is complying

16 with subsections (a) and (b) of section 33302.

17 ‘‘§ 33304. Report on funding

18 ‘‘The Secretary shall, contemporaneously with the

19 issuance of a final rule pursuant to section 33302(b), re20 port to appropriate committees of Congress whether the

21 costs to the States of compliance with such rule can be

22 met by user fees for issuance of titles, issuance of registra23 tions, issuance of duplicate titles, inspection of rebuilt ve24 hicles, or for the State services, or by earmarking any
26

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1 moneys collected through law enforcement action to en2 force requirements established by such rule.

3 ‘‘§ 33305. Effect on State law

4 ‘‘(a) IN GENERAL.—Unless a State is in compliance

5 with subsection (c) of section 33302, effective on the date

6 the rule promulgated pursuant to section 33302 becomes

7 effective, the provisions of this chapter shall preempt all

8 State laws such a State that receives funds under section

9 33308 of this chapter, to the extent they are inconsistent

10 with the provisions of this chapter or the rule promulgated

11 pursuant to section 33302, which—

12 ‘‘(1) set forth the form of the passenger motor

13 vehicle title;

14 ‘‘(2) define, in connection with a passenger

15 motor vehicle (but not in connection with a pas16 senger motor vehicle part or part assembly separate

17 from a passenger motor vehicle), any term defined

18 in section 33301 or the terms ‘salvage’, ‘nonrepair19 able’, or ‘flood’, or apply any of those terms to any

20 passenger motor vehicle (but not to a passenger

21 motor vehicle part or part assembly separate from a

22 passenger motor vehicle); or

23 ‘‘(3) set forth titling, recordkeeping, anti-theft

24 inspection, or control procedures in connection with
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1 any salvage vehicle, rebuilt salvage vehicle, non2 repairable vehicle, or flood vehicle.

3 ‘‘(b) EXCEPTIONS.—

4 ‘‘(1) PASSENGER MOTOR VEHICLE; OLDER

5 MODEL SALVAGE.—Subsection (a)(2) does not pre6 empt State use of the term—

7 ‘‘(A) ‘passenger motor vehicle’ in statutes

8 not related to titling, recordkeeping, anti-theft

9 inspection, or control procedures in connection

10 with any salvage vehicle, rebuilt salvage vehicle,

11 nonrepairable vehicle, or flood vehicle ; or

12 ‘‘(B) ‘older model salvage’ to designate a

13 wrecked, destroyed, or damaged vehicle that is

14 older than a late model vehicle.

15 ‘‘(2) PRIVATE LAW ACTIONS.—Nothing in this

16 chapter may be construed to affect any private right

17 of action under State law.

18 ‘‘(c) CONSTRUCTION.—Additional disclosures of a

19 passenger motor vehicle’s title status or history, in addi20 tion to the terms defined in section 33301, shall not be

21 deemed inconsistent with the provisions of this chapter.

22 Such disclosures shall include disclosures made on a cer23 tificate of title. When used in connection with a passenger

24 motor vehicle (but not in connection with a passenger

25 motor vehicle part or part assembly separate from a pas-
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1 senger motor vehicle), any definition of a term defined in

2 section 33301 which is different than the definition in that

3 section or any use of any term listed in subsection (a),

4 but not defined in section 33301, shall be deemed incon5 sistent with the provisions of this chapter. Nothing in this

6 chapter shall preclude a State from disclosing on a rebuilt

7 salvage title that a rebuilt salvage vehicle has passed a

8 State safety inspection which differed from the nationally

9 uniform criteria to be promulgated pursuant to section

10 33302(b)(8).

11 ‘‘§ 33306. Civil penalties

12 ‘‘(a) PROHIBITED ACTS.—It is unlawful for any per13 son knowingly to—

14 ‘‘(1) make or cause to be made any false state15 ment on an application for a title (or duplicate title)

16 for a passenger motor vehicle or any disclosure made

17 pursuant to section 33303;

18 ‘‘(2) fail to apply for a salvage title when such

19 an application is required;

20 ‘‘(3) alter, forge, or counterfeit a certificate of

21 title (or an assignment thereof), a nonrepairable ve22 hicle certificate, a certificate verifying an anti-theft

23 inspection or an anti-theft and safety inspection, a

24 decal affixed to a passenger motor vehicle pursuant
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1 to section 33302(b)(10)(I), or any disclosure made

2 pursuant to section 33303;

3 ‘‘(4) falsify the results of, or provide false infor4 mation in the course of, an inspection conducted

5 pursuant to section 33302(b)(7) or (8);

6 ‘‘(5) offer to sell any salvage vehicle or non7 repairable vehicle as a rebuilt salvage vehicle;

8 ‘‘(6) fail to make any disclosure required by

9 section 33302(b)(11);

10 ‘‘(7) fail to make any disclosure required by

11 section 33303;

12 ‘‘(8) violate a regulation prescribed under this

13 chapter;

14 ‘‘(9) move a vehicle or a vehicle title in inter15 state commerce for the purpose of avoiding the ti16 tling requirements of this chapter; or

17 ‘‘(10) conspire to commit any of the acts enu18 merated in paragraph (1), (2), (3), (4), (5), (6), (7),

19 (8), or (9).

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

21 unlawful act as provided in subsection (a) of this section

22 shall be fined a civil penalty of up to $2,000 per offense.

23 A separate violation occurs for each passenger motor vehi24 cle involved in the violation.
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1 ‘‘§ 33307. Actions by States

2 ‘‘(a) IN GENERAL.—When a person violates any pro3 vision of this chapter, the chief law enforcement officer

4 of the State in which the violation occurred may bring an

5 action—

6 ‘‘(1) to restrain the violation;

7 ‘‘(2) recover amounts for which a person is lia8 ble under section 33306; or

9 ‘‘(3) to recover the amount of damage suffered

10 by any resident in that State who suffered damage

11 as a result of the knowing commission of an unlaw12 ful act under section 33306(a) by another person.

13 ‘‘(b) STATUTE OF LIMITATIONS.—An action under

14 subsection (a) shall be brought in any court of competent

15 jurisdiction within 2 years after the date on which the vio16 lation occurs.

17 ‘‘(c) NOTICE.—The State shall serve prior written no18 tice of any action under subsection (a) or (f)(2) upon the

19 Attorney General of the United States and provide the At20 torney General with a copy of its complaint, except that

21 if it is not feasible for the State to provide such prior no22 tice, the State shall serve such notice immediately upon

23 instituting such action. Upon receiving a notice respecting

24 an action, the Attorney General shall have the right—

25 ‘‘(1) to intervene in such action;
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1 ‘‘(2) upon so intervening, to be heard on all

2 matters arising therein; and

3 ‘‘(3) to file petitions for appeal.

4 ‘‘(d) CONSTRUCTION.—For purposes of bringing any

5 action under subsection (a), nothing in this Act shall pre6 vent an attorney general from exercising the powers con7 ferred on the attorney general by the laws of such State

8 to conduct investigations or to administer oaths or affir9 mations or to compel the attendance of witnesses or the

10 production of documentary and other evidence.

11 ‘‘(e) VENUE; SERVICE OF PROCESS.—Any action

12 brought under subsection (a) in a district court of the

13 United States may be brought in the district in which the

14 defendant is found, is an inhabitant, or transacts business

15 or wherever venue is proper under section 1391 of title

16 28, United States Code. Process in such an action may

17 be served in any district in which the defendant is an in18 habitant or in which the defendant may be found.

19 ‘‘(f) ACTIONS BY STATE OFFICIALS.—

20 ‘‘(1) Nothing contained in this section shall

21 prohibit an attorney general of a State or other au22 thorized State official from proceeding in State court

23 on the basis of an alleged violation of any civil or

24 criminal statute of such State, including those re25 lated to consumer protection.
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1 ‘‘(2) In addition to actions brought by an attor2 ney general of a State under subsection (a), such an

3 action may be brought by officers of such State who

4 are authorized by the State to bring actions in such

5 State on behalf of its residents.

6 ‘‘§ 33308. Incentive Grants

7 ‘‘(a) GENERAL AUTHORITY.—The Secretary of

8 Transportation shall make a grant to each State that dem9 onstrates to the satisfaction of the Secretary that it is tak10 ing appropriate actions to implement the provisions of this

11 chapter.

12 ‘‘(b) GRANTS.—Pursuant to subsection (a), a grant

13 to carry out this chapter in a fiscal year shall be provided

14 to each qualifying State in an amount determined by

15 multiplying—

16 ‘‘(1) the amount authorized for the fiscal year

17 to carry out this chapter, by

18 ‘‘(2) the ratio that the amount of funds appor19 tioned to each qualifying State under section 402 of

20 title 23, United States Code, for the fiscal year

21 bears to the total amount of funds apportioned to all

22 qualifying States under section 402 of title 23,

23 United States Code, for such fiscal year, except that

24 no State eligible for a grant under this paragraph

25 shall receive less than $250,000.
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1 ‘‘(c) USE OF GRANTS.—Any State that receives a

2 grant under this section shall use the funds to carry out

3 the provisions of this chapter, including such conformance

4 related activities as issuing titles, establishing and admin5 istering vehicle theft or salvage vehicles safety inspections,

6 enforcement, and other related purposes.

7 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—

8 ‘‘(1) IN GENERAL.—There is authorized to be

9 appropriated to carry out this chapter $16,000,000

10 for fiscal year 2000.

11 ‘‘(2) AVAILABILITY OF FUNDS.—Funds author12 ized by this section shall remain available until ex13 pended.’’.

14 (b) CONFORMING AMENDMENT.—The table of chap15 ters for part C at the beginning of subtitle VI of title 49,

16 United States Code, is amended by inserting at the end

17 the following new item:

‘‘333. AUTOMOBILE SAFETY AND TITLE DISCLOSURE REQUIREMENTS ............................................................................... 33301’’.

18 SEC. 3. AMENDMENTS TO CHAPTER 305.

19 (a) DEFINITIONS.—

20 (1) Section 30501(4) of title 49, United States

21 Code, is amended to read as follows:

22 ‘‘(4) ‘nonrepairable vehicle’, ‘salvage vehicle’,

23 ‘flood vehicle’, and ‘rebuilt salvage vehicle’ have the
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1 same meanings given those terms in section 33301

2 of this title.’’.

3 (2) Section 30501(5) of such title is amended

4 by striking ‘‘junk automobiles’’ and inserting ‘‘non5 repairable vehicles’’.

6 (3) Section 30501(8) of such title is amended

7 by striking ‘‘salvage automobiles’’ and inserting

8 ‘‘salvage vehicles’’.

9 (4) Section 30501 of such title is amended by

10 striking paragraph (7) and redesignating paragraphs

11 (8) and (9) as paragraphs (7) and (8), respectively.

12 (b) NATIONAL MOTOR VEHICLE TITLE INFORMA13 TION SYSTEM.—

14 (1) Section 30502(d)(3) of title 49, United

15 States Code, is amended to read as follows:

16 ‘‘(3) whether an automobile known to be titled

17 in a particular State is or has been a nonrepairable

18 vehicle, a rebuilt salvage vehicle, a flood vehicle, or

19 a salvage vehicle;’’.

20 (2) Section 30502(d)(5) of such title is amend21 ed to read as follows:

22 ‘‘(5) whether an automobile bearing a known

23 vehicle identification number has been reported as a

24 nonrepairable vehicle, a rebuilt salvage vehicle, a
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1 flood vehicle, or a salvage vehicle under section

2 30504 of this title.’’.

3 (c) STATE PARTICIPATION.—Section 30503 of title

4 49, United States Code, is amended to read as follows:

5 ‘‘§ 30503. State participation

6 ‘‘(a) STATE INFORMATION.—Each State receiving

7 funds appropriated under subsection (c) shall make titling

8 information maintained by that State available for use in

9 operating the National Motor Vehicle Title Information

10 System established or designated under section 30502 of

11 this title.

12 ‘‘(b) VERIFICATION CHECKS.—Each State receiving

13 funds appropriated under subsection (c) shall establish a

14 practice of performing an instant title verification check

15 before issuing a certificate of title to an individual or enti16 ty claiming to have purchased an automobile from an indi17 vidual or entity in another State. The check shall consist

18 of—

19 ‘‘(1) communicating to the operator—

20 ‘‘(A) the vehicle identification number of

21 the automobile for which the certificate of title

22 is sought;

23 ‘‘(B) the name of the State that issued the

24 most recent certificate of title for the auto25 mobile; and
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1 ‘‘(C) the name of the individual or entity

2 to whom the certificate of title was issued; and

3 ‘‘(2) giving the operator an opportunity to com4 municate to the participating State the results of a

5 search of the information.

6 ‘‘(c) GRANTS TO STATES.—

7 ‘‘(1) In cooperation with the States and not

8 later than January 1, 1994, the Attorney General

9 shall—

10 ‘‘(A) conduct a review of systems used by

11 the States to compile and maintain information

12 about the titling of automobiles; and

13 ‘‘(B) determine for each State the cost of

14 making titling information maintained by that

15 State available to the operator to meet the re16 quirements of section 30502(d) of this title.

17 ‘‘(2) The Attorney General may make reason18 able and necessary grants to participating States to

19 be used in making titling information maintained by

20 those States available to the operator.

21 ‘‘(d) REPORT TO CONGRESS.—Not later than Octo22 ber 1, 1999, the Attorney General shall report to Congress

23 on which States have met the requirements of this section.

24 If a State has not met the requirements, the Attorney
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1 General shall describe the impediments that have resulted

2 in the State’s failure to meet the requirements.’’.

3 (d) REPORTING REQUIREMENTS.—Section 30504 of

4 title 49, United States Code, is amended by striking ‘‘junk

5 automobiles or salvage automobiles’’ every place it appears

6 and inserting ‘‘nonrepairable vehicles, rebuilt salvage vehi7 cles, flood vehicles, or salvage vehicles’’.

8 SEC. 4. DEALER NOTIFICATION PROGRAM FOR PROHIB9 ITED SALE OF NONQUALIFYING VEHICLES

10 FOR USE AS SCHOOLBUSES.

11 Section 30112 of title 49, United States Code, is

12 amended by adding at the end thereof the following:

13 ‘‘(c) NOTIFICATION PROGRAM FOR DEALERS CON14 CERNING SALES OF VEHICLES AS SCHOOLBUSES.—Not

15 later than September 1, 1999, the Secretary shall develop

16 and implement a program to notify dealers and distribu17 tors in the United States that subsection (a) prohibits the

18 sale or delivery of any vehicle for use as a schoolbus (as

19 that term is defined in section 30125(a)(1) of this title)

20 that does not meet the standards prescribed under section

21 30125(b) of this title.’’.