II

106TH CONGRESS

1ST SESSION S. 655

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, and Mr. GRAMS)

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.

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 Salvage

5 Motor Vehicle Consumer Protection Act of 1999’’.
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1 SEC. 2. MOTOR VEHICLE TITLING AND DISCLOSURE RE2 QUIREMENTS.

3 (a) AMENDMENT TO TITLE 49, UNITED STATES

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

5 amended by inserting a new chapter at the end:

6 ‘‘CHAPTER 333—AUTOMOBILE SAFETY

7 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.

8 ‘‘§ 33301. Definitions

9 ‘‘(a) DEFINITIONS.—For the purposes of this chap10 ter:

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

12 ‘passenger motor vehicle’ has the same meaning

13 given such term by section 32101(10), except, not14 withstanding section 32101(9), it includes a multi15 purpose passenger vehicle (constructed on a truck

16 chassis or with special features for occasional off17 road operation), a truck, other than a truck referred

18 to in section 32101(10)(B), and a pickup truck

19 when that vehicle or truck is rated by the manufac20 turer of such vehicle or truck at not more than
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1 10,000 pounds gross vehicle weight, and it only in2 cludes a vehicle manufactured primarily for use on

3 public streets, roads, and highways.

4 ‘‘(2) SALVAGE VEHICLE.—The term ‘salvage ve5 hicle’ means any passenger motor vehicle, other than

6 a flood vehicle or a nonrepairable vehicle, which—

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

8 wrecked, destroyed, or damaged, to the extent

9 that the total cost of repairs to rebuild or re10 construct the passenger motor vehicle to its

11 condition immediately before it was wrecked,

12 destroyed, or damaged, and for legal operation

13 on the roads or highways, exceeds 75 percent of

14 the retail value of the passenger motor vehicle

15 at the time it was wrecked, destroyed, or dam16 aged;

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

18 wrecked, destroyed, or damaged, and to which

19 an insurance company acquires ownership pur20 suant to a damage settlement (except in the

21 case of a settlement in connection with a recov22 ered stolen vehicle, unless such vehicle sus23 tained damage sufficient to meet the damage

24 threshold prescribed by subparagraph (A)); or
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1 ‘‘(C) the owner wishes to voluntarily des2 ignate as a salvage vehicle by obtaining a sal3 vage title, without regard to the level of dam4 age, age, or value of such vehicle or any other

5 factor, except that such designation by the

6 owner shall not impose on the insurer of the

7 passenger motor vehicle or on an insurer proc8 essing a claim made by or on behalf of the

9 owner of the passenger motor vehicle any obli10 gation or liability.

11 Notwithstanding any other provision of this chapter,

12 a State may use the term ‘older model salvage vehi13 cle’ to designate a wrecked, destroyed, or damaged

14 vehicle that does not meet the definition of a late

15 model vehicle in paragraph (9). If a State has estab16 lished or establishes a salvage definition at a lesser

17 percentage than provided under subparagraph (A),

18 then that definition shall not be considered to be in19 consistent with the provisions of this chapter.

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

21 means a passenger motor vehicle ownership docu22 ment issued by the State to the owner of a salvage

23 vehicle. A salvage title shall be conspicuously labeled

24 with the word ‘salvage’ across the front.
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1 ‘‘(4) REBUILT SALVAGE VEHICLE.—The term

2 ‘rebuilt salvage vehicle’ means—

3 ‘‘(A) any passenger motor vehicle which

4 was previously issued a salvage title, has passed

5 State anti-theft inspection, has been issued a

6 certificate indicating that the passenger motor

7 vehicle has passed the required anti-theft in8 spection, has passed the State safety inspection

9 in those States requiring a safety inspection

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

11 issued a certificate indicating that the pas12 senger motor vehicle has passed the required

13 safety inspection in those States requiring such

14 a safety inspection pursuant to section

15 33302(b)(8), and has a decal stating ‘Rebuilt

16 Salvage Vehicle—Anti-theft and Safety Inspec17 tions Passed’ affixed to the driver’s door jamb;

18 or

19 ‘‘(B) any passenger motor vehicle which

20 was previously issued a salvage title, has passed

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

22 certificate indicating that the passenger motor

23 vehicle has passed the required anti-theft in24 spection, and has, affixed to the driver’s door

25 jamb, a decal stating ‘Rebuilt Salvage Vehicle—
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1 Anti-theft Inspection Passed/No Safety Inspec2 tion Pursuant to National Criteria’ in those

3 States not requiring a safety inspection pursu4 ant to section 33302(b)(8).

5 ‘‘(5) REBUILT SALVAGE TITLE.—The term ‘re6 built salvage title’ means the passenger motor vehi7 cle ownership document issued by the State to the

8 owner of a rebuilt salvage vehicle. A rebuilt salvage

9 title shall be conspicuously labeled either with the

10 words ‘Rebuilt Salvage Vehicle—Anti-theft and

11 Safety Inspections Passed’ or ‘Rebuilt Salvage Vehi12 cle—Anti-theft Inspection Passed/No Safety Inspec13 tion Pursuant to National Criteria,’ as appropriate,

14 across the front.

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

16 ‘nonrepairable vehicle’ means any passenger motor

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

18 of safe operation for use on roads or highways and

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

20 or scrap only or which the owner irreversibly des21 ignates as a source of parts or scrap. Such pas22 senger motor vehicle shall be issued a nonrepairable

23 vehicle certificate and shall never again be titled or

24 registered.
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1 ‘‘(7) NONREPAIRABLE VEHICLE CERTIFI2 CATE.—The term ‘nonrepairable vehicle certificate’

3 means a passenger motor vehicle ownership docu4 ment issued by the State to the owner of a non5 repairable vehicle. A nonrepairable vehicle certificate

6 shall be conspicuously labeled with the word ‘Non7 repairable’ across the front.

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

9 the Secretary of Transportation.

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

11 Model Vehicle’ means any passenger motor vehicle

12 which—

13 ‘‘(A) has a manufacturer’s model year des14 ignation of or later than the year in which the

15 vehicle was wrecked, destroyed, or damaged, or

16 any of the six preceding years; or

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

18 $7,500.

19 The Secretary shall adjust such retail value by $500

20 increments every 5 years beginning with an increase

21 to $8,000 on January 1, 2005.

22 ‘‘(10) RETAIL VALUE.—The term ‘retail value’

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

24 retail value of a passenger motor vehicle as—
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1 ‘‘(A) set forth in a current edition of any

2 nationally recognized compilation (to include

3 automated databases) of retail values; or

4 ‘‘(B) determined pursuant to a market sur5 vey of comparable vehicles with regard to condi6 tion and equipment.

7 ‘‘(11) COST OF REPAIRS.—The term ‘cost of re8 pairs’ means the estimated retail cost of parts need9 ed to repair the vehicle or, if the vehicle has been

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

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

12 the hourly labor rate and time allocations that are

13 reasonable and customary in the automobile repair

14 industry in the community where the repairs are to

15 be performed.

16 ‘‘(12) FLOOD VEHICLE.—

17 ‘‘(A) IN GENERAL.—The term ‘flood vehi18 cle’ means any passenger motor vehicle that—

19 ‘‘(i) has been acquired by an insur20 ance company as part of a damage settle21 ment due to water damage; or

22 ‘‘(ii) has been submerged in water to

23 the point that rising water has reached

24 over the door sill, has entered the pas25 senger or trunk compartment, and has ex-
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1 posed any electrical, computerized, or me2 chanical component to water, except where

3 a passenger motor vehicle which, pursuant

4 to an inspection conducted by an insurance

5 adjuster or estimator, a motor vehicle re6 pairer or motor vehicle dealer in accord7 ance with inspection guidelines or proce8 dures established by the Secretary or the

9 State, is determined—

10 ‘‘(I) to have no electrical, com11 puterized, or mechanical components

12 which were damaged by water; or

13 ‘‘(II) to have one or more elec14 trical, computerized, or mechanical

15 components which were damaged by

16 water and where all such damaged

17 components have been repaired or re18 placed.

19 ‘‘(B) INSPECTION NOT REQUIRED FOR ALL

20 FLOOD VEHICLES.—No inspection under sub21 paragraph (A) shall be required unless the

22 owner or insurer of the passenger motor vehicle

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

24 to this chapter.
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1 ‘‘(C) INSPECTION MUST BE BY INDE2 PENDENT PARTY.—A motor vehicle repairer or

3 motor vehicle dealer may not carry out an in4 spection under subparagraph (A) on a pas5 senger motor vehicle that has been repaired, or

6 is to be sold or leased, by that repairer or deal7 er.

8 ‘‘(D) EFFECT OF DISCLOSURE.—Dis9 closing a passenger motor vehicle’s status as a

10 flood vehicle or conducting an inspection pursu11 ant to subparagraph (A) shall not impose on

12 any person any liability for damage to (except

13 in the case of damage caused by the inspector

14 at the time of the inspection) or reduced value

15 of a passenger motor vehicle.

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

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

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

19 date on which such State complies with the requirements

20 of this chapter and the rule promulgated pursuant to sec21 tion 33302(b).

22 ‘‘§ 33302. Passenger motor vehicle titling

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

24 For any passenger motor vehicle, the ownership of which

25 is transferred on or after the date that is 1 year after
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1 the date of the enactment of the National Salvage Motor

2 Vehicle Consumer Protection Act of 1999, any State re3 ceiving funds under section 33308 of this chapter, in li4 censing such vehicle for use, shall disclose in writing on

5 the certificate of title whenever records readily accessible

6 to the State indicate that the passenger motor vehicle was

7 previously issued a title that bore any word or symbol sig8 nifying that the vehicle was ‘salvage’, ‘older model sal9 vage’, ‘unrebuildable’, ‘parts only’, ‘scrap’, ‘junk’, ‘non10 repairable’, ‘reconstructed’, ‘rebuilt’, or any other symbol

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

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

13 ‘‘(b) NATIONALLY UNIFORM TITLE STANDARDS AND

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

15 date of the enactment of the National Salvage Motor Vehi16 cle Consumer Protection Act of 1999, the Secretary shall

17 by rule require any State receiving funds under section

18 33308 of this chapter, in licensing any passenger motor

19 vehicle where ownership of such passenger motor vehicle

20 is transferred more than 2 years after publication of such

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

22 methods for the issuance and control of titles for motor

23 vehicles and for information to be contained on such titles.

24 Such titling standards, control procedures, methods, and

25 information shall include the following requirements:
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1 ‘‘(1) A State shall conspicuously indicate on the

2 face of the title or certificate for a passenger motor

3 vehicle, as applicable, if the passenger motor vehicle

4 is a salvage vehicle, a nonrepairable vehicle, a rebuilt

5 salvage vehicle, or a flood vehicle.

6 ‘‘(2) Such information concerning a passenger

7 motor vehicle’s status shall be conveyed on any sub8 sequent title, including a duplicate or replacement

9 title, for the passenger motor vehicle issued by the

10 original titling State or any other State.

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

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

13 system shall meet security standards minimizing the

14 opportunities for fraud.

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

16 passenger motor vehicle make, model, body type,

17 year, odometer disclosure, and vehicle identification

18 number.

19 ‘‘(5) The title documents shall maintain a uni20 form layout, to be established in consultation with

21 the States or an organization representing them.

22 ‘‘(6) A passenger motor vehicle designated as

23 nonrepairable shall be issued a nonrepairable vehicle

24 certificate and shall not be retitled.
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1 ‘‘(7) No rebuilt salvage title shall be issued to

2 a salvage vehicle unless, after the salvage vehicle is

3 repaired or rebuilt, it complies with the requirements

4 for a rebuilt salvage vehicle pursuant to section

5 33301(4). Any State inspection program operating

6 under this paragraph shall be subject to continuing

7 review by and approval of the Secretary. Any such

8 anti-theft inspection program shall include the fol9 lowing:

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

11 passenger motor vehicle submitting such vehicle

12 for an anti-theft inspection provide a completed

13 document identifying the vehicle’s damage prior

14 to being repaired, a list of replacement parts

15 used to repair the vehicle, and proof of owner16 ship of such replacement parts, as may be evi17 denced by bills of sale, invoices, or, if such doc18 uments are not available, other proof of owner19 ship for the replacement parts. The owner shall

20 also include an affirmation that the information

21 in the declaration is complete and accurate and

22 that, to the knowledge of the declarant, no sto23 len parts were used during the rebuilding.

24 ‘‘(B) A requirement to inspect the pas25 senger motor vehicle or any major part or any
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1 major replacement part required to be marked

2 under section 33102 for signs of such mark or

3 vehicle identification number being illegally al4 tered, defaced, or falsified. Any such passenger

5 motor vehicle or any such part having a mark

6 or vehicle identification number that has been

7 illegally altered, defaced, or falsified, and that

8 cannot be identified as having been legally ob9 tained (through bills of sale, invoices, or other

10 ownership documentation), shall be contraband

11 and subject to seizure. The Secretary, in con12 sultation with the Attorney General, shall, as

13 part of the rule required by this section, estab14 lish procedures for dealing with those parts

15 whose mark or vehicle identification number is

16 normally removed during industry accepted re17 manufacturing or rebuilding practices, which

18 parts shall be deemed identified for purposes of

19 this section if they bear a conspicuous mark of

20 a type, and applied in such a manner, as des21 ignated by the Secretary, indicating that they

22 have been rebuilt or remanufactured. With re23 spect to any vehicle part, the Secretary’s rule,

24 as required by this section, shall acknowledge

25 that a mark or vehicle identification number on
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1 such part may be legally removed or altered as

2 provided for in section 511 of title 18, United

3 States Code, and shall direct inspectors to

4 adopt such procedures as may be necessary to

5 prevent the seizure of a part from which the

6 mark or vehicle identification number has been

7 legally removed or altered.

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

9 vehicle performed pursuant to this chapter shall be

10 performed in accordance with nationally uniform

11 safety inspection criteria established by the Sec12 retary. A State may determine whether to conduct

13 such safety inspection itself, contract with one or

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

15 person licensed by such State in an automotive-re16 lated business, all subject to criteria promulgated by

17 the Secretary hereunder. Any State inspection pro18 gram operating under this paragraph shall be sub19 ject to continuing review by and approval of the Sec20 retary. A State requiring such safety inspection may

21 require the payment of a fee for the privilege of such

22 inspection or the processing thereof.

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

24 issued unless the word ‘duplicate’ is clearly marked

25 on the face thereof and unless the procedures for
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1 such issuance are substantially consistent with Rec2 ommendation three of the Motor Vehicle Titling,

3 Registration and Salvage Advisory Committee.

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

5 and control methods:

6 ‘‘(A) If an insurance company is not in7 volved in a damage settlement involving a sal8 vage vehicle or a nonrepairable vehicle, the pas9 senger motor vehicle owner shall apply for a

10 salvage title or nonrepairable vehicle certificate,

11 whichever is applicable, before the passenger

12 motor vehicle is repaired or the ownership of

13 the passenger motor vehicle is transferred, but

14 in any event within 30 days after the passenger

15 motor vehicle is damaged.

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

17 a damage settlement, acquires ownership of a

18 passenger motor vehicle that has incurred dam19 age requiring the vehicle to be titled as a sal20 vage vehicle or nonrepairable vehicle, the insur21 ance company or salvage facility or other agent

22 on its behalf shall apply for a salvage title or

23 nonrepairable vehicle certificate within 30 days

24 after the title is properly assigned by the owner

25 to the insurance company and delivered to the
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1 insurance company or salvage facility or other

2 agent on its behalf with all liens released.

3 ‘‘(C) If an insurance company does not as4 sume ownership of an insured’s or claimant’s

5 passenger motor vehicle that has incurred dam6 age requiring the vehicle to be titled as a sal7 vage vehicle or nonrepairable vehicle, the insur8 ance company shall notify—

9 ‘‘(i) the owner of the owner’s obliga10 tion to apply for a salvage title or non11 repairable vehicle certificate for the pas12 senger motor vehicle; and

13 ‘‘(ii) the State passenger motor vehi14 cle titling office that a salvage title or non15 repairable vehicle certificate should be

16 issued for the vehicle,

17 except to the extent such notification is prohib18 ited by State insurance law. The notices shall

19 be made in writing within 30 days after the in20 surance company determines that the damage

21 will require a salvage title or a nonrepairable

22 certificate and that the vehicle will be left with

23 the owner.

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

25 incurs damage requiring the vehicle to be titled
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1 as a salvage vehicle or nonrepairable vehicle,

2 the lessor shall apply for a salvage title or non3 repairable vehicle certificate within 21 days

4 after being notified by the lessee that the vehi5 cle has been so damaged, except when an insur6 ance company, pursuant to a damage settle7 ment, acquires ownership of the vehicle. The

8 lessee of such vehicle shall inform the lessor

9 that the leased vehicle has been so damaged

10 within 30 days after the occurrence of the dam11 age. Nothing in this subparagraph requires that

12 the requirements for notification be contained

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

14 provided by the lessor to the lessee of the re15 quirements.

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

17 damaged passenger motor vehicle that meets

18 the definition of a salvage or nonrepairable ve19 hicle for which a salvage title or nonrepairable

20 vehicle certificate has not been issued, shall

21 apply for a salvage title or nonrepairable vehicle

22 certificate, whichever is applicable. This appli23 cation shall be made before the vehicle is fur24 ther transferred, but in any event, within 30

25 days after ownership is acquired. The require-
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1 ments of this subparagraph shall not apply to

2 any scrap metal processor which acquires a pas3 senger motor vehicle for the sole purpose of

4 processing it into prepared grades of scrap and

5 which so processes such vehicle.

6 ‘‘(F) State records shall note when a non7 repairable vehicle certificate is issued. No State

8 shall issue a nonrepairable vehicle certificate

9 after 2 transfers of ownership.

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

11 been flattened, baled, or shredded, whichever

12 comes first, the title or nonrepairable vehicle

13 certificate for the vehicle shall be surrendered

14 to the State within 30 days. If the second

15 transferee on a nonrepairable vehicle certificate

16 is unequipped to flatten, bale, or shred the vehi17 cle, such transferee shall, at the time of final

18 disposal of the vehicle, use the services of a pro19 fessional automotive recycler or professional

20 scrap processor who is hereby authorized to

21 flatten, bale, or shred the vehicle and to effect

22 the surrender of the nonrepairable vehicle cer23 tificate to the State on behalf of such second

24 transferee. State records shall be updated to in25 dicate the destruction of such vehicle and no
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1 further ownership transactions for the vehicle

2 will be permitted. If different than the State of

3 origin of the title or nonrepairable vehicle cer4 tificate, the State of surrender shall notify the

5 State of origin of the surrender of the title or

6 nonrepairable vehicle certificate and of the de7 struction of such vehicle.

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

9 State records shall so note. No State shall per10 mit the retitling for registration purposes or

11 issuance of a rebuilt salvage title for a pas12 senger motor vehicle with a salvage title without

13 a certificate of inspection, which complies with

14 the security and guideline standards established

15 by the Secretary pursuant to paragraphs (3),

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

17 vehicle has passed the inspections required by

18 the State. This subparagraph does not preclude

19 the issuance of a new salvage title for a salvage

20 vehicle after a transfer of ownership.

21 ‘‘(I) After a passenger motor vehicle titled

22 with a salvage title has passed the inspections

23 required by the State, the inspection official will

24 affix the secure decal required pursuant to sec25 tion 33301(4) to the driver’s door jamb of the
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1 vehicle and issue to the owner of the vehicle a

2 certificate indicating that the passenger motor

3 vehicle has passed the inspections required by

4 the State. The decal shall comply with the per5 manency requirements established by the Sec6 retary.

7 ‘‘(J) The owner of a passenger motor vehi8 cle titled with a salvage title may obtain a re9 built salvage title or vehicle registration, or

10 both, by presenting to the State the salvage

11 title, properly assigned, if applicable, along with

12 the certificate that the vehicle has passed the

13 inspections required by the State. With such

14 proper documentation and upon request, a re15 built salvage title or registration, or both, shall

16 be issued to the owner. When a rebuilt salvage

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

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

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

20 transfer of ownership of the vehicle, give the trans21 feree a written notice that the vehicle has been dam22 aged by flood, provided such person has actual

23 knowledge that such vehicle has been damaged by

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

25 the vehicle, disclosure of the flood status shall be
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1 provided to the applicable State with the properly

2 assigned title and the word ‘Flood’ shall be conspicu3 ously labeled across the front of the new title.

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

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

6 of the event that caused the vehicle to become a

7 flood vehicle, shall give the lessor written disclosure

8 that the vehicle is a flood vehicle.

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

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

11 passenger motor vehicle for which a salvage title has

12 been issued shall not be registered for use on the

13 roads or highways unless it has been issued a rebuilt

14 salvage title.

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

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

17 passenger motor vehicle for which a rebuilt salvage

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

19 be registered for use on the roads and highways.

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

21 may only be transferred 2 times on a nonrepairable

22 vehicle certificate. A passenger motor vehicle for

23 which a nonrepairable vehicle certificate has been

24 issued can never be titled or registered for use on

25 roads or highways.
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1 ‘‘(c) ELECTRONIC PROCEDURES.—A State may em2 ploy electronic procedures in lieu of paper documents

3 whenever such electronic procedures provide the same in4 formation, function, and security otherwise required by

5 this section.

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

7 The Secretary shall establish a record of the States which

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

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

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

11 law which causes a State to come into compliance or be12 come noncompliant with the requirements of subsections

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

14 the enactment of the National Salvage Motor Vehicle Con15 sumer Protection Act of 1999, the Secretary shall estab16 lish a mechanism or mechanisms to identify to interested

17 parties whether a State is in compliance with the require18 ments of subsections (a) and (b) of this section.

19 ‘‘§ 33303. Disclosure and label requirements on trans20 fer of rebuilt salvage vehicles

21 ‘‘(a) WRITTEN DISCLOSURE REQUIREMENTS.—

22 ‘‘(1) GENERAL RULE.—Under regulations pre23 scribed by the Secretary of Transportation, a person

24 transferring ownership of a rebuilt salvage vehicle

25 shall, prior to the time of transfer of ownership of
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1 the vehicle, give the transferee a written disclosure

2 that the vehicle is a rebuilt salvage vehicle when

3 such person has actual knowledge of the status of

4 such vehicle.

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

6 written disclosure required by a regulation pre7 scribed under paragraph (1) of this subsection may

8 not make a false statement in the disclosure.

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

10 rebuilt salvage vehicle for resale may accept a disclo11 sure under paragraph (1) only if it is complete.

12 ‘‘(4) REGULATIONS.—The regulations pre13 scribed by the Secretary shall provide the way in

14 which information is disclosed and retained under

15 paragraph (1).

16 ‘‘(b) LABEL REQUIREMENTS.—

17 ‘‘(1) IN GENERAL.—The Secretary shall by reg18 ulation require that a label be affixed to the wind19 shield or window of a rebuilt salvage vehicle before

20 its first sale at retail containing such information re21 garding that vehicle as the Secretary may require.

22 The label shall be affixed by the individual who con23 ducts the applicable State antitheft inspection in a

24 participating State.
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1 ‘‘(2) REMOVAL, ALTERATION, OR ILLEGIBILITY

2 OF REQUIRED LABEL.—No person shall willfully re3 move, alter, or render illegible any label required by

4 paragraph (1) affixed to a rebuilt salvage vehicle be5 fore the vehicle is delivered to the actual custody

6 and possession of the first retail purchaser.

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

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

9 of a rebuilt salvage vehicle where such transfer occurs in

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

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

12 ‘‘§ 33304. Report on funding

13 ‘‘The Secretary shall, contemporaneously with the

14 issuance of a final rule pursuant to section 33302(b), re15 port to appropriate committees of Congress whether the

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

17 met by user fees for issuance of titles, issuance of registra18 tions, issuance of duplicate titles, inspection of rebuilt ve19 hicles, or for the State services, or by earmarking any

20 moneys collected through law enforcement action to en21 force requirements established by such rule.

22 ‘‘§ 33305. Effect on State law

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

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

25 the rule promulgated pursuant to section 33302 becomes
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1 effective, the provisions of this chapter shall preempt all

2 State laws such a State that receives funds under section

3 33308 of this chapter, to the extent they are inconsistent

4 with the provisions of this chapter or the rule promulgated

5 pursuant to section 33302, which—

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

7 vehicle title;

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

9 motor vehicle (but not in connection with a pas10 senger motor vehicle part or part assembly separate

11 from a passenger motor vehicle), any term defined

12 in section 33301 or the terms ‘salvage’, ‘nonrepair13 able’, or ‘flood’, or apply any of those terms to any

14 passenger motor vehicle (but not to a passenger

15 motor vehicle part or part assembly separate from a

16 passenger motor vehicle); or

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

18 inspection, or control procedures in connection with

19 any salvage vehicle, rebuilt salvage vehicle, non20 repairable vehicle, or flood vehicle.

21 ‘‘(b) EXCEPTIONS.—

22 ‘‘(1) PASSENGER MOTOR VEHICLE; OLDER

23 MODEL SALVAGE.—Subsection (a)(2) does not pre24 empt State use of the term—
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1 ‘‘(A) ‘passenger motor vehicle’ in statutes

2 not related to titling, recordkeeping, anti-theft

3 inspection, or control procedures in connection

4 with any salvage vehicle, rebuilt salvage vehicle,

5 nonrepairable vehicle, or flood vehicle ; or

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

7 wrecked, destroyed, or damaged vehicle that is

8 older than a late model vehicle.

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

10 chapter may be construed to affect any private right

11 of action under State law.

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

13 passenger motor vehicle’s title status or history, in addi14 tion to the terms defined in section 33301, shall not be

15 deemed inconsistent with the provisions of this chapter.

16 Such disclosures shall include disclosures made on a cer17 tificate of title. When used in connection with a passenger

18 motor vehicle (but not in connection with a passenger

19 motor vehicle part or part assembly separate from a pas20 senger motor vehicle), any definition of a term defined in

21 section 33301 which is different than the definition in that

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

23 but not defined in section 33301, shall be deemed incon24 sistent with the provisions of this chapter. Nothing in this

25 chapter shall preclude a State from disclosing on a rebuilt
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1 salvage title that a rebuilt salvage vehicle has passed a

2 State safety inspection which differed from the nationally

3 uniform criteria to be promulgated pursuant to section

4 33302(b)(8).

5 ‘‘§ 33306. Civil penalties

6 ‘‘(a) PROHIBITED ACTS.—It is unlawful for any per7 son knowingly to—

8 ‘‘(1) make or cause to be made any false state9 ment on an application for a title (or duplicate title)

10 for a passenger motor vehicle or any disclosure made

11 pursuant to section 33303;

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

13 an application is required;

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

15 title (or an assignment thereof), a nonrepairable ve16 hicle certificate, a certificate verifying an anti-theft

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

18 decal affixed to a passenger motor vehicle pursuant

19 to section 33302(b)(10)(I), or any disclosure made

20 pursuant to section 33303;

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

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

24 ‘‘(5) offer to sell any salvage vehicle or non25 repairable vehicle as a rebuilt salvage vehicle;
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1 ‘‘(6) fail to make any disclosure required by

2 section 33302(b)(11);

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

4 section 33303;

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

6 chapter;

7 ‘‘(9) move a vehicle or a vehicle title in inter8 state commerce for the purpose of avoiding the ti9 tling requirements of this chapter; or

10 ‘‘(10) conspire to commit any of the acts enu11 merated in paragraph (1), (2), (3), (4), (5), (6), (7),

12 (8), or (9).

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

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

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

16 A separate violation occurs for each passenger motor vehi17 cle involved in the violation.

18 ‘‘§ 33307. Actions by States

19 ‘‘(a) IN GENERAL.—When a person violates any pro20 vision of this chapter, the chief law enforcement officer

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

22 action—

23 ‘‘(1) to restrain the violation;

24 ‘‘(2) recover amounts for which a person is lia25 ble under section 33306; or
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1 ‘‘(3) to recover the amount of damage suffered

2 by any resident in that State who suffered damage

3 as a result of the knowing commission of an unlaw4 ful act under section 33306(a) by another person.

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

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

7 jurisdiction within 2 years after the date on which the vio8 lation occurs.

9 ‘‘(c) NOTICE.—The State shall serve prior written no10 tice of any action under subsection (a) or (f)(2) upon the

11 Attorney General of the United States and provide the At12 torney General with a copy of its complaint, except that

13 if it is not feasible for the State to provide such prior no14 tice, the State shall serve such notice immediately upon

15 instituting such action. Upon receiving a notice respecting

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

17 ‘‘(1) to intervene in such action;

18 ‘‘(2) upon so intervening, to be heard on all

19 matters arising therein; and

20 ‘‘(3) to file petitions for appeal.

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

22 action under subsection (a), nothing in this Act shall pre23 vent an attorney general from exercising the powers con24 ferred on the attorney general by the laws of such State

25 to conduct investigations or to administer oaths or affir-
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1 mations or to compel the attendance of witnesses or the

2 production of documentary and other evidence.

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

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

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

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

7 or wherever venue is proper under section 1391 of title

8 28, United States Code. Process in such an action may

9 be served in any district in which the defendant is an in10 habitant or in which the defendant may be found.

11 ‘‘(f) ACTIONS BY STATE OFFICIALS.—

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

13 prohibit an attorney general of a State or other au14 thorized State official from proceeding in State court

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

16 criminal statute of such State, including those re17 lated to consumer protection.

18 ‘‘(2) In addition to actions brought by an attor19 ney general of a State under subsection (a), such an

20 action may be brought by officers of such State who

21 are authorized by the State to bring actions in such

22 State on behalf of its residents.

23 ‘‘§ 33308. Incentive Grants

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

25 Transportation shall make a grant to each State that dem-
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1 onstrates to the satisfaction of the Secretary that it is tak2 ing appropriate actions to implement the provisions of this

3 chapter.

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

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

6 to each qualifying State in an amount determined by

7 multiplying—

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

9 to carry out this chapter, by

10 ‘‘(2) the ratio that the amount of funds appor11 tioned to each qualifying State under section 402 of

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

13 bears to the total amount of funds apportioned to all

14 qualifying States under section 402 of title 23,

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

16 no State eligible for a grant under this paragraph

17 shall receive less than $250,000.

18 ‘‘(c) USE OF GRANTS.—Any State that receives a

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

20 the provisions of this chapter, including such conformance

21 related activities as issuing titles, establishing and admin22 istering vehicle theft or salvage vehicles safety inspections,

23 enforcement, and other related purposes.

24 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—
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1 ‘‘(1) IN GENERAL.—There is authorized to be

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

3 for fiscal year 2000.

4 ‘‘(2) AVAILABILITY OF FUNDS.—Funds author5 ized by this section shall remain available until ex6 pended.’’.

7 (b) CONFORMING AMENDMENT.—The table of chap8 ters for part C at the beginning of subtitle VI of title 49,

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

10 the following new item:

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

11 SEC. 3. AMENDMENTS TO CHAPTER 305.

12 (a) DEFINITIONS.—

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

14 Code, is amended to read as follows:

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

16 ‘flood vehicle’, and ‘rebuilt salvage vehicle’ have the

17 same meanings given those terms in section 33301

18 of this title.’’.

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

20 by striking ‘‘junk automobiles’’ and inserting ‘‘non21 repairable vehicles’’.

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

23 by striking ‘‘salvage automobiles’’ and inserting

24 ‘‘salvage vehicles’’.
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1 (4) Section 30501 of such title is amended by

2 striking paragraph (7) and redesignating paragraphs

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

4 (b) NATIONAL MOTOR VEHICLE TITLE INFORMA5 TION SYSTEM.—

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

7 States Code, is amended to read as follows:

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

9 in a particular State is or has been a nonrepairable

10 vehicle, a rebuilt salvage vehicle, a flood vehicle, or

11 a salvage vehicle;’’.

12 (2) Section 30502(d)(5) of such title is amend13 ed to read as follows:

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

15 vehicle identification number has been reported as a

16 nonrepairable vehicle, a rebuilt salvage vehicle, a

17 flood vehicle, or a salvage vehicle under section

18 30504 of this title.’’.

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

20 49, United States Code, is amended to read as follows:

21 ‘‘§ 30503. State participation

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

23 funds appropriated under subsection (c) shall make titling

24 information maintained by that State available for use in

25 operating the National Motor Vehicle Title Information
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1 System established or designated under section 30502 of

2 this title.

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

4 funds appropriated under subsection (c) shall establish a

5 practice of performing an instant title verification check

6 before issuing a certificate of title to an individual or enti7 ty claiming to have purchased an automobile from an indi8 vidual or entity in another State. The check shall consist

9 of—

10 ‘‘(1) communicating to the operator—

11 ‘‘(A) the vehicle identification number of

12 the automobile for which the certificate of title

13 is sought;

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

15 most recent certificate of title for the auto16 mobile; and

17 ‘‘(C) the name of the individual or entity

18 to whom the certificate of title was issued; and

19 ‘‘(2) giving the operator an opportunity to com20 municate to the participating State the results of a

21 search of the information.

22 ‘‘(c) GRANTS TO STATES.—

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

24 later than January 1, 1994, the Attorney General

25 shall—
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1 ‘‘(A) conduct a review of systems used by

2 the States to compile and maintain information

3 about the titling of automobiles; and

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

5 making titling information maintained by that

6 State available to the operator to meet the re7 quirements of section 30502(d) of this title.

8 ‘‘(2) The Attorney General may make reason9 able and necessary grants to participating States to

10 be used in making titling information maintained by

11 those States available to the operator.

12 ‘‘(d) REPORT TO CONGRESS.—Not later than Octo13 ber 1, 1999, the Attorney General shall report to Congress

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

15 If a State has not met the requirements, the Attorney

16 General shall describe the impediments that have resulted

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

18 (d) REPORTING REQUIREMENTS.—Section 30504 of

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

20 automobiles or salvage automobiles’’ every place it appears

21 and inserting ‘‘nonrepairable vehicles, rebuilt salvage vehi22 cles, flood vehicles, or salvage vehicles’’.
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1 SEC. 4. DEALER NOTIFICATION PROGRAM FOR PROHIB2 ITED SALE OF NONQUALIFYING VEHICLES

3 FOR USE AS SCHOOLBUSES.

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

5 amended by adding at the end thereof the following:

6 ‘‘(c) NOTIFICATION PROGRAM FOR DEALERS CON7 CERNING SALES OF VEHICLES AS SCHOOLBUSES.—Not

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

9 and implement a program to notify dealers and distribu10 tors in the United States that subsection (a) prohibits the

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

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

13 that does not meet the standards prescribed under section

14 30125(b) of this title.’’.

Æ