‘Flood’ shall be conspicuously labeled across the
front of the new title.
‘‘(12) 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.
‘‘(13) Ownership of a 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.
‘‘(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 is-
sued can never be titled or registered for use on
roads or highways.
‘‘(c) 
CONSUMER
NOTICE
IN
NONCOMPLIANT
STATES.—Any State receiving, either directly or indi-
rectly, funds appropriated under section 30503(c) of this
title after fiscal year 1998 and not complying with the re-
quirements of subsections (a) and (b) of this section, shall
conspicuously print the following notice on all titles or
ownership certificates issued for passenger motor vehicles
in such State until such time as such State is in compli-
ance with the requirements of subsections (a) and (b) of
this section: ‘NOTICE: This State does not conform to
the uniform Federal requirements of the National Salvage
Motor Vehicle Consumer Protection Act of 1997.’.
‘‘§ 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 pre-
scribed under paragraph (1) of this subsection may
not make a false statement in the disclosure.
‘‘(3) COMPLETENESS.—A person acquiring a
rebuilt salvage vehicle for resale may accept a disclo-
sure under paragraph (1) only if it is complete.
‘‘(4) 
REGULATIONS.—The 
regulations 
pre-
scribed by the Secretary shall provide the way in
which information is disclosed and retained under
paragraph (1).
‘‘(b) LABEL REQUIREMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall by reg-
ulation require that a label be affixed to the wind-
shield or window of a rebuilt salvage vehicle before
its first sale at retail containing such information re-
garding that vehicle as the Secretary may require.
The label shall be affixed by the individual who con-
ducts the applicable State antitheft inspection in a
participating 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.
‘‘(c) LIMITATION.—The requirements of subsections
(a) and (b) shall only apply to a transfer of ownership
of a rebuilt salvage vehicle where such transfer occurs in
a State which, at the time of the transfer, is complying
with subsections (a) and (b) of section 33302.
‘‘§ 33304. Report on funding
‘‘The Secretary shall, contemporaneously with the is-
suance 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 re-
quirements established by such rule.
‘‘§ 33305. Effect on State law
‘‘(a) IN GENERAL.—Unless a State is in compliance
with subsection (c) of section 33302, effective on the date
the rule promulgated pursuant to section 33302 becomes
effective, the provisions of this chapter shall preempt all
State laws in States receiving funds, either directly or in-
directly, appropriated under section 30503(c) of this title
after fiscal year 1998, 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); or
‘‘(3) set forth titling, recordkeeping, anti-theft
inspection, or control procedures in connection with
any salvage vehicle, rebuilt salvage vehicle, non-
repairable vehicle, or flood 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
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 chapter.
Such disclosures shall include disclosures made on a cer-
tificate 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 pas-
senger 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 incon-
sistent 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 promulgated pursuant to section
33302(b)(8).
‘‘§ 33306. 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 ve-
hicle certificate, a certificate verifying an anti-theft
inspection 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
pursuant to section 33303;
‘‘(4) falsify the results of, or provide false infor-
mation in the course of, an inspection conducted
pursuant 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
section 33303, except when the person lacks actual
knowledge of the status of the rebuilt salvage vehi-
cle;
‘‘(7) violate a regulation prescribed under this
chapter; or
‘‘(8) conspire to commit any of the acts enu-
merated in paragraph (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 vehi-
cle involved in the violation.
‘‘(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 to up to
3 years imprisonment or both, per offense.
‘‘§ 33307. Actions by States
‘‘(a) IN GENERAL.—Whenever an attorney general of
any State has reason to believe that the interests of the
residents of that State have been or are being threatened
or adversely affected because any person has violated or
is violating 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 appropriate State court to enjoin such violation or to
enforce the civil penalties under section 33306 or enforce
the criminal penalties under section 33306.
‘‘(b) NOTICE.—The State shall serve prior written
notice of any civil or criminal action under subsection (a)
or (e)(2) upon the Attorney General and provide the At-
torney General with a copy of its complaint, except that
if it is not feasible for the State to provide such prior no-
tice, the State shall serve such notice immediately upon
instituting 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
matters 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 evi-
dence.
‘‘(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 defend-
ant is an inhabitant or in which the defendant may be
found.
‘‘(e) ACTIONS BY STATE OFFICIALS.—
‘‘(1) Nothing contained in this section shall
prohibit an attorney general of a State or other au-
thorized State official from proceeding in State court
on the basis of an alleged violation of any civil or
criminal 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 chap-
ters for part C at the beginning of subtitle VI of title 49,
United States Code, is amended by inserting at the end
the following new item:
‘‘333. Automobile Safety and Title Disclosure Require-
ments ..........................................................................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) Amend section 30501(5) of title 49, United
States Code, by striking ‘‘junk automobiles’’ and in-
serting ‘‘nonrepairable vehicles’’.
(3) Amend section 30501(8) by striking ‘‘sal-
vage automobiles’’ and inserting ‘‘salvage vehicles’’.
(4) Strike paragraph (7) of section 30501 of
title 49, United States Code, and renumber the suc-
ceeding sections accordingly.
(b) NATIONAL MOTOR VEHICLE TITLE INFORMA-
TION SYSTEM.—
(1) Amend section 30502(d)(3) of title 49,
United States Code, to read as follows:
‘‘(3) whether an automobile known to be titled
in a particular State is or has been a nonrepairable
vehicle, a rebuilt salvage vehicle, or a salvage vehi-
cle;’’.
(2) Amend section 30502(d)(5) of title 49,
United States Code, to read as follows:
‘‘(5) whether an automobile bearing a known
vehicle identification number has been reported as a
nonrepairable vehicle, a rebuilt salvage vehicle, or a
salvage vehicle under section 30504 of this title.’’.
(c) STATE PARTICIPATION.—Amend section 30503 of
title 49, United States Code, to read as follows:
‘‘§ 30503. State participation
‘‘(a) STATE INFORMATION.—Each State receiving
funds appropriated under subsection (c) shall make titling
information maintained by that State available for use in
operating the National Motor Vehicle Title Information
System established or designated under section 30502 of
this title.
‘‘(b) VERIFICATION CHECKS.—Each State receiving
funds appropriated under subsection (c) shall establish a
practice of performing an instant title verification check
before issuing a certificate of title to an individual or en-
tity claiming to have purchased an automobile from an
individual or entity in another State. The check shall con-
sist 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 auto-
mobile; 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.
‘‘(c) 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 reason-
able and necessary grants to participating States to
be used in making titling information maintained by
those States available to the operator.
‘‘(d) REPORT TO CONGRESS.—Not later than Octo-
ber 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