Union Calendar No. 161
105TH CONGRESS
1ST SESSION
H. R. 1839
[Report No. 105–285, Part I]
A BILL
To establish nationally uniform requirements re-
garding the titling and registration of salvage,
nonrepairable, and rebuilt vehicles.
SEPTEMBER 30, 1997
Reported from the Committee on Commerce with an
amendment; referral to the Committee on the Judici-
ary extended for a period ending not later than Sep-
tember 30, 1997; Committee on the Judiciary dis-
charged; committed to the Committee of the Whole
House on the State of the Union; and ordered to be
printed
IB
Union Calendar No. 161
105TH CONGRESS
1ST SESSION
H. R. 1839
[Report No. 105–285, Part I]
To establish nationally uniform requirements regarding the titling and
registration of salvage, nonrepairable, and rebuilt vehicles.
IN THE HOUSE OF REPRESENTATIVES
JUNE 10, 1997
Mr. WHITE (for himself, Mr. TOWNS, Mr. HORN, Mr. NORWOOD, and Ms.
DUNN) introduced the following bill; which was referred to the Committee
on Commerce, and in addition to the Committee on the Judiciary, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
SEPTEMBER 30, 1997
Additional sponsors: Mr. OXLEY, Mr. BROWN of Ohio, Mr. NETHERCUTT, Mr.
SHAYS, Mr. MORAN of Virginia, Mr. GILLMOR, Mr. ADAM SMITH of
Washington, Mr. DAN SCHAEFER of Colorado, Mr. WYNN, Mr. LARGENT,
Mr. GORDON, Mr. TAYLOR of Mississippi, Mr. SNOWBARGER, Mr. HAN-
SEN, Mr. SKEEN, Mr. CALLAHAN, Mr. KLUG, Mr. BURR of North Caro-
lina, Mr. RAHALL, Mrs. CUBIN, Mr. BACHUS, Mr. PALLONE, Mr.
LATOURETTE, Mr. GOODE, Mr. COBURN, Mr. COX of California, Mr.
RUSH, Mr. WISE, Mr. WHITFIELD, Mr. PETERSON of Pennsylvania, Mr.
TANNER, Mr. DELLUMS, Mr. MOLLOHAN, Mr. PRICE of North Carolina,
Mr. KLECZKA, Mr. SNYDER, Mr. PICKERING, Mr. DUNCAN, Mr. ROE-
MER, Mr. CALVERT, Mr. REDMOND, Mr. BRYANT, Mr. HINCHEY, Mrs.
SMITH of Washington, Mr. MCCRERY, Mr. EVERETT, Mr. BAESLER, Mrs.
THURMAN, Mr. POMEROY, Mr. LUCAS of Oklahoma, Mr. JOHN, Mr.
LEWIS of Kentucky, Mr. CLEMENT, Mr. JEFFERSON, Mr. WICKER, Mr.
SCHIFF, Mr. HILLEARY, Mr. STEARNS, Mr. STUMP, Mr. DOYLE, Mr.
DAVIS of Virginia, Mr. CANADY of Florida, Mr. CHRISTENSEN, Mr. HALL
of Ohio, Mr. GIBBONS, Mr. BEREUTER, Mrs. MALONEY of New York,
Mr. GUTKNECHT, Mrs. FOWLER, Mr. BLUNT, Mr. RAMSTAD, Mr. NEU-
MANN, Mr. TALENT, Mr. BARRETT of Nebraska, Ms. HARMAN, Mr.
ROYCE, Mr. BOEHLERT, Mr. KNOLLENBERG, Mr. BASS, Mrs. LOWEY,
Mr. GOODLATTE, Mr. ETHERIDGE, Mr. EDWARDS, Mr. LATHAM, Ms.
DELAURO, Mr. OBERSTAR, Mr. KENNEDY of Rhode Island, Mr. FORD,
Mr. BUNNING, Mr. WELLER, Mr. BARRETT
of Wisconsin, Mr.
ADERHOLT, Mr. CUNNINGHAM, Mr. SKELTON, Mr. MASCARA, Ms. KIL-
PATRICK, Mr. MICA, and Mr. BALDACCI
SEPTEMBER 30, 1997
Reported from the Committee on Commerce with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
SEPTEMBER 30, 1997
Referral to the Committee on the Judiciary extended for a period ending not
later than September 30, 1997
SEPTEMBER 30, 1997
Committee on the Judiciary discharged; committed to the Committee of the
Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on June 10, 1997]
A BILL
To establish nationally uniform requirements regarding the
titling and registration of salvage, nonrepairable, and
rebuilt vehicles.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘National Salvage Motor
Vehicle Consumer Protection Act of 1997’’.
SEC. 2. MOTOR VEHICLE TITLING AND DISCLOSURE RE-
QUIREMENTS.
(a) AMENDMENT
TO TITLE 49, UNITED STATES
CODE.—Subtitle VI of title 49, United States Code, is
amended by inserting a new chapter at the end:
‘‘CHAPTER 333—AUTOMOBILE SAFETY 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. Petitions for extensions of time.
‘‘33306. Effect on State law.
‘‘33307. Civil and criminal penalties.
‘‘33308. Actions by States.
‘‘§ 33301. Definitions
‘‘For the purposes of this chapter:
‘‘(1) PASSENGER
MOTOR
VEHICLE.—The term
‘passenger motor vehicle’ shall have the same meaning
given such term by section 32101(10), except, notwith-
standing section 32101(9), it shall include a multi-
purpose passenger vehicle (constructed on a truck
chassis or with special features for occasional off-road
operation), or a truck, other than a truck referred to
in section 32101(10)(B), when that vehicle or truck is
rated by the manufacturer of such vehicle or truck at
not more than 10,000 pounds gross vehicle weight,
and except further, it shall only include a vehicle
manufactured primarily for use on public streets,
roads, and highways.
‘‘(2) SALVAGE VEHICLE.—The term ‘salvage ve-
hicle’ means any passenger motor vehicle which—
‘‘(A) is a late model vehicle which has been
wrecked, destroyed, or damaged, to the extent
that the total cost of repairs to rebuild or recon-
struct the passenger motor vehicle to its condi-
tion immediately before it was wrecked, de-
stroyed, or damaged, and for legal operation on
the roads or highways, exceeds 80 percent of the
retail value of the passenger motor vehicle;
‘‘(B) is a late model vehicle which has been
wrecked, destroyed, or damaged, and to which an
insurance company acquires ownership pursuant
to a damage settlement (except in the case of a
settlement in connection with a recovered stolen
vehicle, unless such vehicle sustained damage suf-
ficient to meet the damage threshold prescribed
by subparagraph (A)); or
‘‘(C) the owner wishes to voluntarily des-
ignate as a salvage vehicle by obtaining a sal-
vage title, without regard to the level of damage,
age, or value of such vehicle or any other factor,
except that such designation by the owner shall
not impose on the insurer of the passenger motor
vehicle or on an insurer processing a claim made
by or on behalf of the owner of the passenger
motor vehicle any obligation or liability.
‘‘(3) SALVAGE TITLE.—The term ‘salvage title’
means a passenger motor vehicle ownership document
issued by the State to the owner of a salvage vehicle.
A salvage title shall be conspicuously labeled with the
word ‘salvage’ across the front.
‘‘(4) REBUILT SALVAGE VEHICLE.—The term ‘re-
built 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 cer-
tificate indicating that the passenger motor vehi-
cle has passed the required anti-theft inspection,
has passed the State safety inspection in those
States requiring a safety inspection pursuant to
section 33302(b)(8), has been issued a certificate
indicating that the passenger motor vehicle has
passed the required safety inspection in those
States requiring such a safety inspection pursu-
ant to section 33302(b)(8), and has a decal stat-
ing ‘Rebuilt Salvage Vehicle—Anti-theft and
Safety Inspections Passed’ affixed to the driver’s
door jamb; or
‘‘(B) any passenger motor vehicle which was
previously issued a salvage title, has passed a
State anti-theft inspection, has been issued a cer-
tificate indicating that the passenger motor vehi-
cle has passed the required anti-theft inspection,
and has, affixed to the driver’s door jamb, a
decal stating ‘Rebuilt Salvage Vehicle—Anti-
theft Inspection Passed/No Safety Inspection
Pursuant to National Criteria’ in those States
not requiring a safety inspection pursuant to
section 33302(b)(8).
‘‘(5) REBUILT SALVAGE TITLE.—The term ‘re-
built salvage title’ means the passenger motor vehicle
ownership document issued by the State to the owner
of a rebuilt salvage vehicle. A rebuilt salvage title
shall be conspicuously labeled either with the words
‘Rebuilt Salvage Vehicle—Anti-theft and Safety In-
spections Passed’ or ‘Rebuilt Salvage Vehicle—Anti-
theft Inspection Passed/No Safety Inspection Pursu-
ant to National Criteria,’ as appropriate, across the
front.
‘‘(6) NONREPAIRABLE VEHICLE.—The term ‘non-
repairable 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 non-
repairable vehicle certificate and shall never again be
titled or registered.
‘‘(7) NONREPAIRABLE VEHICLE CERTIFICATE.—
The term ‘nonrepairable vehicle certificate’ means a
passenger motor vehicle ownership document issued
by the State to the owner of a nonrepairable vehicle.
A nonrepairable vehicle certificate shall be conspicu-
ously labeled with the word ‘Nonrepairable’ across the
front.
‘‘(8) SECRETARY.—The term ‘Secretary’ means
the Secretary of Transportation.
‘‘(9) LATE
MODEL
VEHICLE.—The term ‘Late
Model Vehicle’ means any passenger motor vehicle
which—
‘‘(A) has a manufacturer’s model year des-
ignation of or later than the year in which the
vehicle was wrecked, destroyed, or damaged, or
any of the six preceding years; or
‘‘(B) has a retail value of more than $7,500.
The Secretary shall adjust such retail value on an an-
nual basis in accordance with changes in the
consumer price index.
‘‘(10) RETAIL VALUE.—The term ‘retail value’
means the actual cash value, fair market value, or re-
tail value of a passenger motor vehicle as—
‘‘(A) set forth in a current edition of any
nationally recognized compilation (to include
automated databases) of retail values; or
‘‘(B) determined pursuant to a market sur-
vey of comparable vehicles with regard to condi-
tion and equipment.
‘‘(11) COST OF REPAIRS.—The term ‘cost of re-
pairs’ means the estimated retail cost of parts needed
to repair the vehicle or, if the vehicle has been re-
paired, the actual retail cost of the parts used in the
repair, and the cost of labor computed by using the
hourly labor rate and time allocations that are rea-
sonable and customary in the automobile repair in-
dustry in the community where the repairs are to be
performed.
‘‘§ 33302. Passenger motor vehicle titling
‘‘(a) CARRY-FORWARD OF INFORMATION ON A NEWLY
ISSUED TITLE WHERE THE PREVIOUS TITLE FOR THE VE-
HICLE WAS NOT ISSUED PURSUANT TO NEW NATIONALLY
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 enactment of this chapter,
each State participating in the National Motor Vehicle
Title Information System established under chapter 305 of
subtitle VI of this title, 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 pas-
senger motor vehicle was previously issued a title that bore
any word or symbol signifying that the vehicle was ‘sal-
vage’, ‘unrebuildable’, ‘parts only’, ‘scrap’, ‘junk’, ‘non-
repairable’, ‘reconstructed’, ‘rebuilt’, or any other symbol or
word of like kind, or that it has been damaged by flood.
‘‘(b) NATIONALLY UNIFORM TITLE STANDARDS AND
CONTROL METHODS.—Not later than 18 months after the
date of the enactment of this chapter, the Secretary shall
by rule require each State participating in the National
Motor Vehicle Title Information System established under
chapter 305 of subtitle VI of this title, in licensing any pas-
senger motor vehicle where ownership of such passenger
motor vehicle is transferred more than 2 years after publi-
cation of such final rule, to apply uniform standards, proce-
dures, 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 re-
quirements:
‘‘(1) A State shall conspicuously indicate on the
face of the title or certificate for a passenger motor ve-
hicle, as applicable, if the passenger motor vehicle is
a salvage vehicle, a nonrepairable vehicle, or a rebuilt
salvage vehicle and whether such vehicle was damaged
by flood.
‘‘(2) Such information concerning a passenger
motor vehicle’s status shall be conveyed on any subse-
quent 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 de-
cals required by section 33301(4), and the issuing sys-
tem shall meet security standards minimizing the op-
portunities for fraud.
‘‘(4) The certificate of title shall include the pas-
senger motor vehicle make, model, body type, year,
odometer disclosure, and vehicle identification num-
ber.
‘‘(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 re-
paired or rebuilt, it complies with the requirements
for a rebuilt salvage vehicle pursuant to section
33301(4). Any State inspection program operating
under this paragraph shall be subject to continuing
review by and approval of the Secretary. Any such
anti-theft inspection program shall include the follow-
ing:
‘‘(A) A requirement that the owner of any
passenger motor vehicle submitting such vehicle
for an anti-theft inspection provide a completed
document identifying the vehicle’s damage prior
to being repaired, a list of replacement parts
used to repair the vehicle, and proof of owner-
ship of such replacement parts, as may be evi-
denced by bills of sale, invoices, or, if such docu-
ments are not available, other proof of ownership
for the replacement parts. The owner shall also
include an affirmation that the information in
the declaration is complete and accurate and
that, to the knowledge of the declarant, no stolen
parts were used during the rebuilding.
‘‘(B) A requirement to inspect the passenger
motor vehicle or any major part or any major
replacement part required to be marked under
section 33102 for signs of such mark or vehicle
identification number being illegally altered, de-
faced, or falsified. Any such passenger motor ve-
hicle or any such part having a mark or vehicle
identification number that has been illegally al-
tered, defaced, or falsified, and that cannot be
identified as having been legally obtained
(through bills of sale, invoices, or other owner-
ship documentation), shall be contraband and
subject to seizure. The Secretary, in consultation
with the Attorney General, shall, as part of the
rule required by this section, establish procedures
for dealing with those parts whose mark or vehi-
cle identification number is normally removed
during industry accepted remanufacturing or re-
building practices, which parts shall be deemed
identified 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
indicating that they have been rebuilt or re-
manufactured. 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.
‘‘(8) The Secretary shall establish nationally
uniform safety inspection criteria to be used in those
States requiring such a safety inspection. A State
may determine whether to conduct such safety inspec-
tion itself, contract with one or more third parties, or
permit self-inspection by a person licensed by such
State in an automotive-related business, all subject to
criteria promulgated by the Secretary hereunder. Any
State inspection program operating under this para-
graph shall be subject to continuing review by and
approval of the Secretary. A State requiring such
safety inspection may require the payment of a fee for
the privilege of such inspection or the processing
thereof.
‘‘(9) No duplicate or replacement title shall be is-
sued unless the word ‘duplicate’ is clearly marked on
the face thereof and unless the procedures for such is-
suance 
are 
substantially 
consistent 
with 
Rec-
ommendation three of the Motor Vehicle Titling, Reg-
istration and Salvage Advisory Committee.
‘‘(10) 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 shall apply for a sal-
vage 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 salvage
vehicle or nonrepairable vehicle, the insurance
company or salvage facility or other agent on its
behalf shall apply for a salvage title or non-
repairable vehicle certificate within 30 days after
the title is properly assigned by the owner to the
insurance company and delivered to the insur-
ance company or salvage facility or other agent
on its behalf 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 salvage
vehicle or nonrepairable vehicle, the insurance
company shall notify the owner of the owner’s
obligation to apply for a salvage title or non-
repairable vehicle certificate for the passenger
motor vehicle and notify the State passenger
motor vehicle titling office that a salvage title or
nonrepairable vehicle certificate should be issued
for the vehicle, except to the extent such notifica-
tion is prohibited by State insurance law.
‘‘(D) If a leased passenger motor vehicle in-
curs damage requiring the vehicle to be titled as
a salvage vehicle or nonrepairable vehicle, the
lessor shall apply for a salvage title or non-
repairable vehicle certificate within 21 days after
being notified by the lessee that the vehicle has
been so damaged, except when an insurance com-
pany, pursuant to a damage settlement, acquires
ownership of the vehicle. The lessee of such vehi-
cle shall inform the lessor that the leased vehicle
has been so damaged within 30 days after the oc-
currence of the damage.
‘‘(E) Any person acquiring ownership of a
damaged passenger motor vehicle that meets the
definition of a salvage or nonrepairable vehicle
for which a salvage title or nonrepairable vehicle
certificate has not been issued, shall apply for a
salvage title or nonrepairable vehicle certificate,
whichever is applicable. This application shall be
made before the vehicle is further transferred, but
in any event, within 30 days after ownership is
acquired. The requirements of this subparagraph
shall not apply to any scrap metal processor
which acquires a passenger 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 non-
repairable vehicle certificate is issued. No State
shall issue a nonrepairable vehicle certificate
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 cer-
tificate 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 vehicle, such trans-
feree shall, at the time of final disposal of the ve-
hicle, use the services of a professional auto-
motive recycler or professional scrap processor
who is hereby authorized to flatten, bale, or shred
the vehicle and to effect the surrender of the non-
repairable vehicle certificate to the State on be-
half of such second transferee. State records shall
be updated to indicate the destruction of such ve-
hicle and no further ownership transactions for
the vehicle will be permitted. If different than the
State of origin of the title or nonrepairable vehi-
cle certificate, 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.
‘‘(H) When a salvage title is issued, the
State records shall so note. No State shall permit
the retitling for registration purposes or issuance
of a rebuilt salvage title for a passenger motor
vehicle with a salvage title without a certificate
of inspection, which complies with the security
and guideline standards established by the Sec-
retary pursuant to paragraphs (3), (7), and (8),
as applicable, indicating that the vehicle has
passed the inspections required by the State.
This subparagraph does not preclude the issu-
ance of a new salvage title for a salvage vehicle
after a transfer of ownership.
‘‘(I) After a passenger motor vehicle titled
with a salvage title has passed the inspections re-
quired 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 ve-
hicle and issue to the owner of the vehicle a cer-
tificate indicating that the passenger motor vehi-
cle has passed the inspections required by the
State. The decal shall comply with the perma-
nency requirements established by the Secretary.
‘‘(J) The owner of a passenger motor vehicle
titled with a salvage title may obtain a rebuilt
salvage title or vehicle registration, or both, by
presenting to the State the salvage title, properly
assigned, if applicable, along with the certificate
that the vehicle has passed the inspections re-
quired by the State. With such proper docu-
mentation and upon request, a rebuilt salvage
title or registration, or both, shall be issued to
the owner. When a rebuilt salvage title is issued,
the State records shall so note.
‘‘(11) A seller of a passenger motor vehicle that
becomes a salvage vehicle due to damage by flood
shall, at or prior to the time of transfer of ownership,
give the buyer a written notice that the vehicle has
been damaged by flood.
‘‘(12) In the case of a leased passenger motor ve-
hicle, the lessee, within 15 days of the occurrence of
the event that caused the vehicle to become a salvage
vehicle due to damage by flood, shall give the lessor
written disclosure that the vehicle is a salvage vehicle
due to damage by flood.
‘‘(13) Ownership of a passenger motor vehicle
may be transferred on a salvage title, however, a pas-
senger 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.
‘‘(14) Ownership of a passenger motor vehicle
may be transferred on a rebuilt salvage title, and a
passenger motor vehicle for which a rebuilt salvage
title has been issued may be registered for use on the
roads and highways.
‘‘(15) Ownership of a 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 high-
ways.
‘‘§ 33303. Disclosure and label requirements on trans-
fer of rebuilt salvage vehicles
‘‘(a) WRITTEN DISCLOSURE REQUIREMENTS.—
‘‘(1) GENERAL
RULE.—Under regulations pre-
scribed by the Secretary of Transportation, a person
transferring ownership of a rebuilt salvage vehicle
shall give the transferee a written disclosure that the
vehicle is a rebuilt salvage vehicle when such person
has actual knowledge of the status of such vehicle.
‘‘(2) FALSE STATEMENT.—A person making a
written disclosure required by a regulation prescribed
under paragraph (1) of this subsection may not make
a false statement in the disclosure.
‘‘(3) COMPLETENESS.—A person acquiring a re-
built salvage vehicle for resale may accept a disclosure
under paragraph (1) only if it is complete.
‘‘(4) REGULATIONS.—The regulations prescribed
by the Secretary shall provide the way in which in-
formation is disclosed and retained under paragraph
(1).
‘‘(b) LABEL REQUIREMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall by regu-
lation require that a label be affixed to the windshield
or window of a rebuilt salvage vehicle before its first
sale at retail containing such information regarding
that vehicle as the Secretary may require. The label
shall be affixed by the individual who conducts the
applicable State antitheft inspection in a participat-
ing State.
‘‘(2) REMOVAL, ALTERATION, OR
ILLEGIBILITY
OF REQUIRED LABEL.—No person shall willfully re-
move, alter, or render illegible any label required by
paragraph (1) affixed to a rebuilt salvage vehicle be-
fore the vehicle is delivered to the actual custody and
possession of the first retail purchaser.
‘‘§ 33304. Report on funding
‘‘The Secretary shall, contemporaneously with the issu-
ance of a final rule pursuant to section 33302(b), report
to appropriate committees of Congress whether the costs to
the States of compliance with such rule can be met by user
fees for issuance of titles, issuance of registrations, issuance
of duplicate titles, inspection of rebuilt vehicles, or for the
State services, or by earmarking any moneys collected
through law enforcement action to enforce requirements es-
tablished by such rule.
‘‘§ 33305. 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 estab-
lished pursuant to section 33302(b).
‘‘§ 33306. Effect on State law
‘‘(a) IN GENERAL.—Effective on the date the rule pro-
mulgated pursuant to section 33302 becomes effective, the
provisions of this chapter shall preempt all State laws in
States participating in the National Motor Vehicle Title In-
formation System established under chapter 305 of subtitle
VI of this title, 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 ve-
hicle title;
‘‘(2) define, 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 term defined in section
33301 or the terms ‘salvage’, ‘junk’, ‘reconstructed’,
‘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); or
‘‘(3) set forth titling, recordkeeping, anti-theft in-
spection, or control procedures in connection with any
salvage vehicle, rebuilt salvage vehicle, or nonrepair-
able vehicle.
The requirements described in paragraph (3) shall not be
construed to affect any State consumer law actions that
may be available to residents of the State for violations of
this chapter.
‘‘(b) CONSTRUCTION.—Additional disclosures of a pas-
senger motor vehicle’s title status or history, in addition
to the terms defined in section 33301, shall not be deemed
inconsistent with the provisions of this chapter. Such disclo-
sures shall include disclosures made on a certificate of 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 sec-
tion 33301, shall be deemed inconsistent with the provisions
of this chapter. Nothing in this chapter shall preclude a
State from disclosing on a rebuilt salvage title that a rebuilt
salvage vehicle has passed a State safety inspection which
differed from the nationally uniform criteria to be promul-
gated pursuant to section 33302(b)(8).
‘‘§ 33307. Civil and criminal penalties
‘‘(a) PROHIBITED ACTS.—It shall be unlawful for any
person knowingly and willfully to—
‘‘(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 or any disclosure made
pursuant to section 33303;
‘‘(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 vehi-
cle certificate, a certificate verifying an anti-theft in-
spection or an anti-theft and safety inspection, a
decal affixed to a passenger motor vehicle pursuant to
section 33302(b)(10)(I), or any disclosure made pur-
suant to section 33303;
‘‘(4) falsify the results of, or provide false infor-
mation in the course of, an inspection conducted pur-
suant to section 33302(b)(7) or (8);
‘‘(5) offer to sell any salvage vehicle or non-
repairable vehicle as a rebuilt salvage vehicle;
‘‘(6) fail to make any disclosure required by sec-
tion 33303, except when the person lacks actual
knowledge of the status of the rebuilt salvage vehicle;
‘‘(7) violate a regulation prescribed under this
chapter; or
‘‘(8) conspire to commit any of the acts enumer-
ated in paragraphs (1), (2), (3), (4), (5), (6), or (7).
‘‘(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.
A separate violation occurs for each passenger motor vehicle
involved in the violation.
‘‘(c) CRIMINAL PENALTY.—Any person who commits
an unlawful act as provided in subsection (a) of this section
shall be fined up to $50,000 or sentenced to up to 3 years
imprisonment or both, per offense.
‘‘§ 33308. Actions by States
‘‘(a) IN GENERAL.—Whenever an attorney general of
any State has reason to believe that the interests of the resi-
dents of that State have been or are being threatened or
adversely affected because any person has violated or is vio-
lating section 33302 or 33303, the State, as parens patriae,
may bring a civil action on behalf of its residents in an
appropriate district court of the United States or the appro-
priate State court to enjoin such violation or to enforce the
civil penalties under section 33307 or may enforce the
criminal penalties under section 33307.
‘‘(b) NOTICE.—The State shall serve prior written no-
tice of any civil or criminal action under subsection (a)
or (e)(2) upon the Attorney General and provide the Attor-
ney General with a copy of its complaint, except that if
it is not feasible for the State to provide such prior notice,
the State shall serve such notice immediately upon institut-
ing such action. Upon receiving a notice respecting a civil
or criminal action, the Attorney General shall have the
right—
‘‘(1) to intervene in such action;
‘‘(2) upon so intervening, to be heard on all mat-
ters arising therein; and
‘‘(3) to file petitions for appeal.
‘‘(c) CONSTRUCTION.—For purposes of bringing any
civil or criminal action under subsection (a), nothing in
this Act shall prevent an attorney general from exercising
the powers conferred on the attorney general by the laws
of such State to conduct investigations or to administer
oaths or affirmations or to compel the attendance of wit-
nesses or the production of documentary and other evidence.
‘‘(d) VENUE; SERVICE OF PROCESS.—Any civil or
criminal action brought under subsection (a) in a district
court of the United States may be brought in the district
in which the defendant is found, is an inhabitant, or trans-
acts business or wherever venue is proper under section
1391 of title 28, United States Code. Process in such an
action may be served in any district in which the defendant
is an inhabitant or in which the defendant may be found.
‘‘(e) ACTIONS BY STATE OFFICIALS.—
‘‘(1) Nothing contained in this section shall pro-
hibit an attorney general of a State or other author-
ized State official from proceeding in State court on
the basis of an alleged violation of any civil or crimi-
nal statute of such State.
‘‘(2) In addition to actions brought by an attor-
ney general of a State under subsection (a), such an
action may be brought by officers of such State who
are authorized by the State to bring actions in such
State on behalf of its residents.’’.
(b) CONFORMING AMENDMENT.—The table of chapters
for part C at the beginning of subtitle VI of title 49, United
States Code, is amended by inserting at the end the follow-
ing new item:
333.
AUTOMOBILE SAFETY AND TITLE DISCLOSURE RE-
QUIREMENTS.
33301
SEC. 3. AMENDMENTS TO CHAPTER 305.
(a) DEFINITIONS.—
(1) Amend section 30501(4) of title 49, United
States Code, to read as follows:
‘‘(4) ‘nonrepairable vehicle’, ‘salvage vehicle’, and
‘rebuilt salvage vehicle’ shall have the same meanings
given those terms in section 33301 of this title.’’.
(2) Strike paragraph (7) of section 30501 of title
49, United States Code, and renumber the succeeding
sections accordingly.
Title Information System established or designated under
section 30502 of this title.
‘‘(c) VERIFICATION
CHECKS.—Each participating
State shall establish a practice of performing an instant
title verification check before issuing a certificate of title
to an individual or entity claiming to have purchased an
automobile from an individual or entity in another State.
The check shall consist of—
‘‘(1) communicating to the operator—
‘‘(A) the vehicle identification number of the
automobile for which the certificate of title is
sought;
‘‘(B) the name of the State that issued the
most recent certificate of title for the automobile;
and
‘‘(C) the name of the individual or entity to
whom the certificate of title was issued; and
‘‘(2) giving the operator an opportunity to com-
municate to the participating State the results of a
search of the information.
‘‘(d) GRANTS TO STATES.—
‘‘(1) In cooperation with the States and not later
than January 1, 1994, the Attorney General shall—
‘‘(A) conduct a review of systems used by
the States to compile and maintain information
about the titling of automobiles; and
‘‘(B) determine for each State the cost of
making titling information maintained by that
State available to the operator to meet the re-
quirements of section 30502(d) of this title.
‘‘(2) The Attorney General may make reasonable
and necessary grants to participating States to be
used in making titling information maintained by
those States available to the operator.
‘‘(e) REPORT TO CONGRESS.—Not later than October
1, 1998, the Attorney General shall report to Congress on
which States have met the requirements of this section. If
a State has not met the requirements, the Attorney General
shall describe the impediments that have resulted in the
State’s failure to meet the requirements.’’.
(d) REPORTING REQUIREMENTS.—Section 30504 of
title 49, United States Code, is amended by striking ‘‘junk
automobiles or salvage automobiles’’ every place it appears
and inserting ‘‘nonrepairable vehicles, rebuilt salvage vehi-
cles, or salvage vehicles’’.