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(1) Many States do not have specific require-
ments regarding the disclosure of a motor vehicle’s
salvage history and some States never require that
the motor vehicle’s title be stamped or branded to
indicate that it is, or has been, a salvage vehicle.
(2) Existing State disclosure requirements re-
garding a motor vehicle’s salvage history are incon-
sistent in scope and language, require the use of var-
ious and different forms and administrative proce-
dures, will undercut the effectiveness of the National
Automobile Title Information System created by the
Anti Car Theft Act of 1992, are burdensome on
interstate commerce, and make it easy for unscrupu-
lous sellers of rebuilt vehicles to mislead potential
wholesale and retail buyers about the condition and
value of such vehicles.
(3) The fact that a motor vehicle is salvage,
nonrepairable, flood damaged, or rebuilt after incur-
ring substantial damage is material in any subse-
quent purchase or sale of that motor vehicle.
(4) Some salvage and nonrepairable vehicles be-
come involved in illegal commerce in stolen vehicles
and parts. The lack of theft inspection in some juris-
dictions for rebuilt motor vehicles before allowing the
vehicles back on the road provides an opportunity
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for an unscrupulous person to use stolen parts in the
rebuilding of motor vehicles.
(5) According to the National Highway Traffic
Safety Administration, rebuilt motor vehicles may
not have passed any safety inspection and may pose
a public safety risk and consumers who unknowingly
buy these motor vehicles face an increased risk of
death or serious injury. Statistics prepared by the
American Association of Motor Vehicle Administra-
tors indicate that 71 percent of the States require
some form of safety inspection before a rebuilt sal-
vage vehicle may be registered for use on the road.
The promulgation of a safety inspection program by
the Secretary of Transportation may assist the
States in expanding and standardizing their inspec-
tion programs for rebuilt vehicles.
(6) Duplicate or replacement titles play an im-
portant role in many vehicle thefts and various types
of vehicle fraud. Accordingly, State controls on the
issuance of such titles must be strengthened and
made uniform across the country.
(7) Large numbers of motor vehicles are ex-
ported from United States ports to foreign countries
without proper documentation of ownership in viola-
tion of law.
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(8) In view of such threats to public safety and
consumer interests, the Motor Vehicle Titling, Reg-
istration and Salvage Advisory Committee, which
was convened under the auspices of the Secretary of
Transportation pursuant to section 140(a) of the
Anti Car Theft Act of 1992 (15 U.S.C. 2041 note),
recommended that Federal legislation be enacted to
require certain definitions to be used nationwide to
describe seriously damaged vehicles, that all States
be required to use these definitions in determining
appropriate title designations, and that all States be
required to use certain motor vehicle titling and con-
trol methods and to take certain other measures to
protect the integrity of the titling process.
SEC. 3. MOTOR VEHICLE TITLING AND DISCLOSURE RE-
QUIREMENTS.
Subtitle VI of title 49, United States Code, is amend-
ed by inserting a new chapter at the end:
‘‘CHAPTER 333—AUTOMOBILE SAFETY, ANTI-
THEFT, AND TITLE DISCLOSURE REQUIREMENTS
‘‘§ 33301. Definitions
‘‘For the purposes of this chapter:
‘‘(1) PASSENGER MOTOR VEHICLE.—The term
‘passenger motor vehicle’ means any vehicle driven
or drawn by mechanical power manufactured pri-
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marily for use on the public streets, roads, and high-
ways, including a multipurpose passenger vehicle or
light duty truck when that vehicle or truck is rated
at not more than 6,000 pounds gross vehicle weight,
except that such term does not include a motorcycle.
‘‘(2) SALVAGE VEHICLE.—The term ‘salvage ve-
hicle’ means any passenger motor vehicle which has
been wrecked, destroyed, or damaged to the extent
that the total estimated or actual cost of parts and
labor to rebuild or reconstruct the passenger motor
vehicle to its pre-accident condition and for legal op-
eration on the roads or highways exceeds 75 percent
of the retail value of the passenger motor vehicle, as
set forth in a current edition of any nationally recog-
nized compilation (to include automated databases)
of retail values, as approved by the Secretary. Such
term shall not include any passenger motor vehicle
having a model year designation of a calendar year
which is at least 5 years prior to the calendar year
in which the vehicle was wrecked, destroyed, or dam-
aged. The value of repair parts for purposes of this
paragraph shall be determined by using the pub-
lished retail cost of the original equipment manufac-
turer parts or the actual retail cost of the repair
parts to be used in the repair. The labor cost of re-
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pairs for purposes of this paragraph shall be com-
puted by using the hourly labor rate and time alloca-
tions that are reasonable and customary in the auto-
mobile repair industry in the community where the
repairs are performed. Such term includes, without
regard to whether such passenger motor vehicle
meets the 75 percent threshold specified in the first
sentence—
‘‘(A) any passenger motor vehicle to which
an insurance company acquires ownership pur-
suant to a damage settlement (not to include a
settlement in connection with a recovered theft
vehicle unless such passenger motor vehicle sus-
tained sufficient damage to meet the 75 percent
threshold specified in the first sentence); or
‘‘(B) any passenger motor vehicle whose
owner may wish to designate as a salvage vehi-
cle by obtaining a salvage title, without regard
to the extent of the passenger motor vehicle’s
damage and repairs. Such designation by the
owner shall not impose on the insurer of the
passenger motor vehicle or on an insurer proc-
essing a claim made by or on behalf of the
owner of the passenger motor vehicle any obli-
gation or liability.
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‘‘(3) SALVAGE TITLE.—The term ‘salvage title’
means a passenger motor vehicle ownership docu-
ment issued by the State to the owner of a salvage
vehicle. Ownership of the passenger motor vehicle
may be transferred on a salvage title, however, a
passenger motor vehicle for which a salvage title has
been issued shall not be registered for use on the
roads or highways unless it has been issued a rebuilt
salvage title. A salvage title shall be conspicuously
labeled with the word ‘salvage’ across the front.
‘‘(4) REBUILT SALVAGE VEHICLE.—The term
‘rebuilt salvage vehicle’ means—
‘‘(A) any passenger motor vehicle which
was previously issued a salvage title, has passed
State anti-theft inspection, has been issued a
certificate indicating that the passenger motor
vehicle has passed the required anti-theft in-
spection, has passed the State safety inspection
in those States requiring a safety inspection
pursuant to section 33302(b)(7), has been is-
sued a certificate indicating that the passenger
motor vehicle has passed the required safety in-
spection in those States requiring such a safety
inspection pursuant to section 33302(b)(7), and
has a decal stating ‘‘Rebuilt Salvage Vehicle—
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Safety Inspection Pursuant to National Criteria,’’ as
appropriate, across the front.
‘‘(6) NONREPAIRABLE
VEHICLE.—The term
‘nonrepairable vehicle’ means any passenger motor
vehicle which is incapable of safe operation for use
on roads or highways and which has no resale value
except as a source of parts or scrap only or which
the owner irreversibly designates as a source of
parts or scrap. Such passenger motor vehicle shall
be issued a nonrepairable vehicle certificate and shall
never again be titled or registered.
‘‘(7) 
NONREPAIRABLE
VEHICLE
CERTIFI-
CATE.—The term ‘nonrepairable vehicle certificate’
means a passenger motor vehicle ownership docu-
ment issued by the State to the owner of a
nonrepairable vehicle. Ownership of the passenger
motor vehicle may only be transferred 2 times on a
nonrepairable vehicle certificate. A passenger motor
vehicle for which a nonrepairable vehicle certificate
has been issued can never be titled or registered for
use on roads or highways. A nonrepairable vehicle
certificate shall be conspicuously labeled with the
word ‘Nonrepairable’ across the front.
‘‘(8) FLOOD VEHICLE.—The term ‘flood vehicle’
means any passenger motor vehicle that has been
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submerged in water to the point that rising water
has reached over the door sill and has entered the
passenger or trunk compartment. Disclosure that a
passenger motor vehicle has become a ‘flood vehicle’
shall be made at the time of transfer of ownership
and the next certificate of title issued after such
transfer shall be conspicuously labeled with the word
‘flood’ across the front.
‘‘§ 33302. Passenger motor vehicle titling
‘‘(a) CARRY-FORWARD
OF
INFORMATION
ON
A
NEWLY ISSUED TITLE WHERE THE PREVIOUS TITLE FOR
THE VEHICLE WAS NOT ISSUED PURSUANT TO NEW NA-
TIONALLY UNIFORM STANDARDS.—For any passenger
motor vehicle, the ownership of which is transferred on
or after the date that is 1 year from the date of the enact-
ment of this chapter, each State, in licensing such vehicle
for use, shall disclose in writing on the certificate of title
whenever records readily accessible to the State indicate
that the passenger motor vehicle was previously issued a
title that bore any word or symbol signifying that the vehi-
cle was ‘salvage’, ‘unrebuildable’, ‘parts only’, ‘scrap’,
‘junk’, ‘nonrepairable’, ‘reconstructed’, ‘rebuilt’, or any
other symbol or word of like kind, or that it has been dam-
aged by flood.
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‘‘(b) NATIONALLY UNIFORM TITLE STANDARDS AND
CONTROL METHODS.—Not later than 18 months after the
date of the enactment of this chapter, the Secretary of
Transportation shall by rule require each State, in licens-
ing any passenger motor vehicle where ownership of such
passenger motor vehicle is transferred more than 2 years
after publication of such final rule, to apply uniform
standards, procedures, and methods for the issuance and
control of titles for motor vehicles and for information to
be contained on such titles. Such titling standards, control
procedures, methods, and information shall include the
following:
‘‘(1) A State shall indicate on the face of the
title or certificate for a passenger motor vehicle, as
applicable, if the passenger motor vehicle is a sal-
vage vehicle, a nonrepairable vehicle, a rebuilt sal-
vage vehicle, or a flood vehicle.
‘‘(2) Such information concerning a passenger
motor vehicle’s status shall be conveyed on any sub-
sequent title, including a duplicate or replacement
title, for the passenger motor vehicle issued by the
original titling State or any other State.
‘‘(3) The title documents, the certificates and,
decals required by section 33301(4), and the issuing
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system shall meet security standards minimizing the
opportunities for fraud.
‘‘(4) The certificate of title shall include the
passenger motor vehicle make, model, body type,
year, odometer disclosure, and vehicle identification
number.
‘‘(5) The title documents shall maintain a uni-
form layout, to be established in consultation with
the State or an organization representing them.
‘‘(6) A passenger motor vehicle designated as
nonrepairable shall be issued a nonrepairable vehicle
certificate and shall not be retitled.
‘‘(7) No rebuilt salvage title shall be issued to
a salvage vehicle unless, after the salvage vehicle is
repaired or rebuilt, it complies with the requirements
for a rebuilt salvage vehicle pursuant to section
33301(4). Any State inspection program designed to
comply with this paragraph shall be subject to con-
tinuing review by and approval of the Secretary.
Such inspection program shall include the following:
‘‘(A) A passenger motor vehicle owner sub-
mitting a vehicle for an anti-theft inspection
shall be required to provide a completed docu-
ment identifying the vehicle’s damage prior to
being repaired, a list of replacement parts used
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to repair the vehicle, and proof of ownership of
such replacement parts, as may be evidenced by
bills of sale, invoices or, if such documents are
not available, other proof of ownership for the
replacement parts. The owner must also include
an affirmation that the information in the dec-
laration is complete and accurate and, to the
knowledge of the declarant, no stolen parts
were used during the rebuilding.
‘‘(B) Any passenger motor vehicle or any
major part or major replacement part required
to be marked under section 33102 having a
mark or vehicle identification number that has
been illegally altered, defaced, or falsified, and
that cannot be identified as having been legally
obtained (through bills of sale, invoices, or
other ownership documentation), shall be con-
traband and subject to seizure. To avoid
confiscation of parts which have been legally re-
built or remanufactured, the Secretary of
Transportation, in consultation with the Attor-
ney General, shall, as part of the rule required
by this section, establish procedures for dealing
with those parts whose mark or vehicle identi-
fication number is normally removed during in-
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dustry accepted remanufacturing or rebuilding
practices, which parts shall be deemed identi-
fied for purposes of this section if they bear a
conspicuous mark of a type, and applied in such
a manner, as designated by the Secretary indi-
cating that they have been rebuilt or remanu-
factured. With respect to any vehicle part, the
Secretary’s rule, as required by this section,
shall acknowledge that a mark or vehicle identi-
fication number on such part may be legally re-
moved or altered as provided for in section 511
of title 18, United States Code, and shall direct
inspectors to adopt such procedures as may be
necessary to prevent the seizure of a part from
which the mark or vehicle identification number
has been legally removed or altered.
‘‘(C) The Secretary shall establish nation-
ally uniform safety inspection criteria to be
used in those States requiring such a safety in-
spection. A State may determine whether to
conduct such safety inspection itself, contract
with a third party, or permit self-inspection, all
subject to criteria promulgated by the Secretary
hereunder. A State requiring such safety in-
spection may require the payment of a fee for
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the privilege of such inspection or the process-
ing thereof.
‘‘(8) No duplicate or replacement title shall be
issued unless the word ‘duplicate’ is clearly marked
on the face thereof and unless the procedures for
such issuance are substantially consistent with Rec-
ommendation three (3) of the Motor Vehicle Titling,
Registration and Salvage Advisory Committee.
‘‘(9) A State shall employ the following titling
and control methods:
‘‘(A) If an insurance company is not in-
volved in a damage settlement involving a sal-
vage vehicle or a nonrepairable vehicle, the pas-
senger motor vehicle owner must apply for a
salvage title or nonrepairable vehicle certificate,
whichever is applicable, before the passenger
motor vehicle is repaired or the ownership of
the passenger motor vehicle is transferred, but
in any event within 30 days after the passenger
motor vehicle is damaged.
‘‘(B) If an insurance company, pursuant to
a damage settlement, acquires ownership of a
passenger motor vehicle that has incurred dam-
age requiring the vehicle to be titled as a sal-
vage vehicle or nonrepairable vehicle, the insur-
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ance company must apply for a salvage title or
nonrepairable vehicle certificate within 15 days
after the title is properly assigned by the owner
to the insurance company and delivered to the
insurance company with all liens released.
‘‘(C) If an insurance company does not as-
sume ownership of an insured’s or claimant’s
passenger motor vehicle that has incurred dam-
age requiring the vehicle to be titled as a sal-
vage vehicle or nonrepairable vehicle, the insur-
ance company shall, as required by the applica-
ble State, either (i) notify the owner of the own-
er’s obligation to apply for a salvage title or
nonrepairable vehicle certificate for the pas-
senger motor vehicle and notify the State pas-
senger motor vehicle titling office that a salvage
title or nonrepairable vehicle certificate should
be issued for the vehicle, or (ii) withhold pay-
ment of the claim until the owner applies for a
salvage title or nonrepairable vehicle certificate.
‘‘(D) If a leased passenger motor vehicle
incurs damage requiring the vehicle to be titled
as a salvage vehicle or nonrepairable vehicle,
the lessor must apply for a salvage title or
nonrepairable vehicle certificate within 21 days
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after being notified by the lessee that the vehi-
cle has been so damaged, except when an insur-
ance company, pursuant to a damage settle-
ment, acquires ownership of the vehicle. The
lessee of such vehicle shall inform the lessor
that the leased vehicle has been so damaged
within 30 days after the occurrence of the dam-
age.
‘‘(E) Any person acquiring ownership of a
damaged passenger motor vehicle that meets
the definition of a salvage or nonrepairable ve-
hicle for which a salvage title or nonrepairable
vehicle certificate has not been issued, must
apply for a salvage title or nonrepairable vehicle
certificate, whichever is applicable. This appli-
cation must be made before the vehicle is fur-
ther transferred, but in any event, within 30
days after ownership is acquired. The require-
ments of this subparagraph shall not apply to
any scrap metal processor which acquires a pas-
senger motor vehicle for the sole purpose of
processing it into prepared grades of scrap and
which so processes such vehicle.
‘‘(F) State records shall note when a
nonrepairable vehicle certificate is issued. No
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State shall issue a nonrepairable vehicle certifi-
cate after 2 transfers of ownership.
‘‘(G) When a passenger motor vehicle has
been flattened, baled, or shredded, whichever
comes first, the title or nonrepairable vehicle
certificate for the vehicle shall be surrendered
to the State within 30 days. If the second
transferee on a nonrepairable vehicle certificate
is unequipped to flatten, bale, or shred the vehi-
cle, such transferee must, at the time of final
disposal of the vehicle, use the services of a pro-
fessional automotive recycler or professional
scrap processor who is hereby authorized to
flatten, bale, or shred the vehicle and to effect
the surrender of the nonrepairable vehicle cer-
tificate to the State on behalf of such second
transferee. State records shall be updated to in-
dicate the destruction of such vehicle and no
further ownership transactions for the vehicle
will be permitted. If different than the State of
origin of the title or nonrepairable vehicle cer-
tificate, the State of surrender shall notify the
State of origin of the surrender of the title or
nonrepairable vehicle certificate and of the de-
struction of such vehicle.
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‘‘(H) When a salvage title is issued, the
State records shall so note. No State shall per-
mit the retitling for registration purposes or is-
suance of a rebuilt salvage title for a passenger
motor vehicle with a salvage title without a cer-
tificate of inspection, which complies with the
security and guideline standards established by
the Secretary pursuant to paragraphs (3) and
(7), as applicable, indicating that the vehicle
has passed the inspections required by the
State. This subparagraph does not preclude the
issuance of a new salvage title for a salvage ve-
hicle after a transfer of ownership.
‘‘(I) After a passenger motor vehicle titled
with a salvage title has passed the inspections
required by the State, the inspection official will
affix the secure decal required pursuant to sec-
tion 33301(4) to the driver’s door jamb of the
vehicle and issue to the owner of the vehicle a
certificate indicating that the passenger motor
vehicle has passed the inspections required by
the State. The decal must comply with the per-
manency requirements established by the Sec-
retary.
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‘‘(J) The owner of a passenger motor vehi-
cle titled with a salvage title may obtain a re-
built salvage title and vehicle registration by
presenting to the State the salvage title, prop-
erly assigned, if applicable, along with the cer-
tificate that the vehicle has passed the inspec-
tions required by the State. With such proper
documentation and upon request, a rebuilt sal-
vage title and registration shall be issued to the
owner. When a rebuilt salvage title is issued,
the State records shall so note.
‘‘(10) A seller of a passenger motor vehicle that
becomes a flood vehicle shall, at or prior to the time
of transfer of ownership, give the buyer a written
notice that the vehicle is a flood vehicle. At the time
of the next title application for the vehicle, disclosure
of the flood status shall be provided to the applicable
State with the properly assigned title and the word
‘‘Flood’’ shall be conspicuously labeled across the
front of the new title.
‘‘(11) In the case of a leased passenger motor
vehicle, the lessee, within 15 days of the occurrence
of the event that caused the vehicle to become a
flood vehicle, shall give the lessor written disclosure
that the vehicle is a flood vehicle.
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‘‘(c) ELECTRONIC PROCEDURES.—A State may em-
ploy electronic procedures in lieu of paper documents
whenever such electronic procedures provide the same in-
formation, function, and security otherwise required by
this section.
‘‘§ 33303. Funding
‘‘(a) IN GENERAL.—Funds otherwise made available
to the States for the promotion of highway safety may be
used to defray the direct costs of establishing new proce-
dures for compliance with section 33302.
‘‘(b) REPORT.—The Secretary shall, contempora-
neously with the issuance of a final rule pursuant to sec-
tion 33302(b), report to the President of the Senate and
the Speaker of the House of Representatives whether the
costs to the States of compliance with such rule can be
met by user fees for issuance of titles, issuance of registra-
tions, issuance of duplicate titles, inspection of rebuilt ve-
hicles, or for the State services, or by earmarking any
moneys collected through law enforcement action to en-
force requirements established by such rule. If such costs
cannot be so met, user fees should be mandated at the
Federal level but retained by the States to cover the direct
costs to comply with such rule.
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‘‘§ 33304. Petitions for extensions of time
‘‘The Secretary may grant a State, for good cause
shown, an extension of time to comply with the require-
ments established in section 33302(a). No such extension
shall remain in effect on or after the compliance date es-
tablished pursuant to section 33302(b).
‘‘§ 33305. Effect on state law
‘‘(a) IN GENERAL.—Effective on the date the rule
promulgated pursuant to section 33302 becomes effective,
the provisions of this chapter shall preempt all State laws,
to the extent they are inconsistent with the provisions of
this chapter or the rule promulgated pursuant to section
33302, which—
‘‘(1) set forth the form of the passenger motor
vehicle title;
‘‘(2) define, in connection with a passenger
motor vehicle (but not in connection with a pas-
senger motor vehicle part or part assembly separate
from a passenger motor vehicle), any term defined
in section 33301 or the terms ‘salvage’, ‘junk’, ‘re-
constructed’, ‘nonrepairable’, ‘unrebuildable’, ‘scrap’,
‘parts only’, ‘rebuilt’, ‘flood’, or any other symbol or
word of like kind, or apply any of those terms to any
passenger motor vehicle (but not to a passenger
motor vehicle part or part assembly separate from a
passenger motor vehicle); and
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‘‘(3) set forth titling, recordkeeping, anti-theft
inspection, or control procedures in connection with
any 
salvage 
vehicle, 
rebuilt 
salvage 
vehicle,
nonrepairable vehicle, or flood vehicle defined in sec-
tion 33301.
‘‘(b) CONSTRUCTION.—Additional disclosures of a
passenger motor vehicle’s title status or history, in addi-
tion to the terms defined in section 33301, shall not be
deemed inconsistent with the provisions of this title. When
used in connection with a passenger motor vehicle (but
not in connection with a passenger motor vehicle part or
part assembly separate from a passenger motor vehicle),
any definition of a term defined in section 33301 which
is different than the definition in that section or any use
of any term listed in subsection (a), but not defined in
section 33301, shall be deemed inconsistent with the provi-
sions of this chapter. Nothing in this chapter shall pre-
clude a State from disclosing on a rebuilt salvage title that
a rebuilt salvage vehicle has passed a State safety inspec-
tion which differed from the nationally uniform criteria
to be promulgated pursuant to section 33302(b)(7).
‘‘§ 33306. Civil and criminal penalties
‘‘(a) PROHIBITED ACTS.—It shall be unlawful for any
person knowingly and willfully to—
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‘‘(1) make or cause to be made any false state-
ment on an application for a title (or duplicate title)
for a passenger motor vehicle;
‘‘(2) fail to apply for a salvage title when such
an application is required;
‘‘(3) alter, forge, or counterfeit a certificate of
title (or an assignment thereof), a nonrepairable ve-
hicle certificate, a certificate verifying an anti-theft
inspection or an anti-theft and safety inspection, or
a decal affixed to a passenger motor vehicle pursu-
ant to section 33302(b)(9)(I);
‘‘(4) falsify the results of, or provide false infor-
mation in the course of, an inspection conducted
pursuant to section 33302(b)(7);
‘‘(5) offer to sell any salvage vehicle or
nonrepairable vehicle as a rebuilt salvage vehicle; or
‘‘(6) conspire to commit any of the acts enu-
merated in paragraphs (1), (2), (3), (4), and (5).
‘‘(b) CIVIL PENALTY.—Any person who commits an
unlawful act as provided in subsection (a) of this section
shall be fined a civil penalty of up to $2,000 per offense.
‘‘(c) CRIMINAL PENALTY.—Any person who commits
an unlawful act as provided in subsection (a) of this sec-
tion shall be fined up to $50,000 or sentenced up to 3
years imprisonment or both, per offense.’’.
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SEC. 4. DOCUMENTATION REQUIRED TO EXPORT CERTAIN
VEHICLES.
Section 627(b) of the Tariff Act of 1930 (19 U.S.C.
1627a(b)) is amended to read as follows:
‘‘(b)(1) Customs officers shall not allow the export
of a self-propelled vehicle from the United States by trans-
port, unless the exporter presents proof of ownership to
a Customs officer. Proof of ownership shall be limited to
an unencumbered title or nonrepairable vehicle certificate
issued by a governmental jurisdiction or to a manufactur-
er’s statement of origin. If the self-propelled vehicle title
is encumbered, the exporter must also present written per-
mission from the lienholder to export the self-propelled ve-
hicle. Customs officers shall not allow export of any self-
propelled vehicle prior to verifying that the self-propelled
vehicle has not been reported stolen. Customs officers will
provide the vehicle identification number for all self-pro-
pelled vehicles that are exported to the National Crime
Information Center and the National Automobile Title In-
formation System.
‘‘(2) Failure of a person attempting to export a self-
propelled vehicle to comply with this subsection shall sub-
ject such person to a civil penalty of not more than $500
for each violation.’’.
Æ
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