National Salvage Motor Vehicle Consumer Protection Act of 1999 - Amends Federal transportation law to require States receiving Federal funds for the compilation of passenger motor vehicle titling information, in licensing a passenger motor vehicle whose ownership has been transferred, to disclose on the certificate of title whenever records indicate that such vehicle was previously issued a title that contained a word or symbol signifying that it was "salvage," "older model salvage," "unrebuildable," "parts only," "scrap," "junk," "nonrepairable," "reconstructed," "rebuilt," or that it has been damaged by flood, and the name of the State that issued the title.
(Sec. 2) Directs the Secretary of Transportation to issue regulations requiring each State in licensing such vehicles to apply specified uniform standards, procedures, and methods for the issuance and control of motor vehicle titles and for information to be contained on such titles.
Directs the Secretary to establish: (1) a record of the States which are in compliance with the uniform Federal title requirements; and (2) a mechanism to identify to interested parties which States are compliant.
Directs the Secretary to prescribe regulations requiring: (1) a person transferring ownership of a rebuilt salvage vehicle to disclose to the transferee, before the time of transfer, that the motor vehicle is a rebuilt salvage vehicle when such person has actual knowledge of such fact; and (2) that a label containing such information be affixed to the windshield or window of a rebuilt salvage vehicle before its first sale. Prohibits any person from willfully removing, altering, or rendering illegible such label before the vehicle is delivered to the first retail purchaser.
Directs the Secretary to report to appropriate congressional committees on whether the costs to States for compliance with the requirements of this Act can be met by user fees for titling, registration, inspection, or other services, or by earmarking moneys collected through law enforcement action to enforce such requirements.
Makes it unlawful for any person knowingly to: (1) make false statements on the application for a motor vehicle title or any disclosure with respect to a rebuilt salvage vehicle; (2) fail to apply for a salvage title when such application is required; (3) alter, forge, or counterfeit a certificate of title, a nonrepairable vehicle certificate, a certificate verifying an anti-theft inspection or an anti-theft and safety inspection, a required decal affixed to a passenger motor vehicle, or any disclosure with respect to a rebuilt salvage vehicle; (4) falsify the results of an inspection; (5) offer to sell any salvage vehicle or nonrepairable vehicle as a rebuilt salvage vehicle; (6) fail to give notice to a transferee of a motor vehicle that it has been damaged by flood; (7) fail to make any required disclosure with respect to a rebuilt salvage vehicle; (8) violate a regulation under this Act; (9) move a vehicle or a vehicle title in interstate commerce for the purpose of avoiding the titling requirements of this Act; or (10) conspire to commit any of these acts. Sets forth civil penalties for violations of this Act.
Authorizes the chief law enforcement officer of a State, whenever a person violates a requirement of this Act, to bring an action in district court to restrain the violation, or recover amounts for which a person is civilly liable, or recover the amount of damage suffered by a resident in the State as a result of the knowing commission of the unlawful act by another person.
Directs the Secretary to make a grant to each State that demonstrates that it is taking appropriate actions to implement this Act, including such conformance related activities as issuing titles, establishing and administering vehicle theft or salvage vehicles safety inspections, enforcement, and other related purposes.
Authorizes appropriations.
(Sec. 3) Requires the National Motor Vehicle Title Information System to permit a user to establish instantly and reliably, among other things, whether: (1) an automobile known to be titled in a particular State is or has been a nonrepairable vehicle, a rebuilt salvage vehicle, or a flood vehicle; and (2) an automobile bearing a known vehicle identification number has been reported as a nonrepairable vehicle, a rebuilt salvage vehicle, or a flood vehicle.
Limits to States receiving certain Federal grants for the compilation of passenger motor vehicle titling information the current requirement that every State make such information available for use in operating the System.
(Sec. 4) Amends Federal transportation law to direct the Secretary to develop and implement a program to notify U.S. dealers and distributors of the prohibition on the sale or delivery of any vehicle for use as a schoolbus that does not meet prescribed standards.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 655 Introduced in Senate (IS)]
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.
Be it enacted by the Senate and House of Representatives 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 1999''.
SEC. 2. MOTOR VEHICLE TITLING AND DISCLOSURE REQUIREMENTS.
(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. Effect on State law.
``33306. Civil penalties.
``33307. Actions by States.
``33308. Incentive Grants.
``Sec. 33301. Definitions
``(a) Definitions.--For the purposes of this chapter:
``(1) Passenger motor vehicle.--The term `passenger motor
vehicle' has the same meaning given such term by section
32101(10), except, notwithstanding section 32101(9), it
includes a multipurpose passenger vehicle (constructed on a
truck chassis or with special features for occasional off-road
operation), a truck, other than a truck referred to in section
32101(10)(B), and a pickup truck 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 it only includes a
vehicle manufactured primarily for use on public streets,
roads, and highways.
``(2) Salvage vehicle.--The term `salvage vehicle' means
any passenger motor vehicle, other than a flood vehicle or a
nonrepairable 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 reconstruct the
passenger motor vehicle to its condition immediately
before it was wrecked, destroyed, or damaged, and for
legal operation on the roads or highways, exceeds 75
percent of the retail value of the passenger motor
vehicle at the time it was wrecked, destroyed, or
damaged;
``(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 sufficient to meet the
damage threshold prescribed by subparagraph (A)); or
``(C) the owner wishes to voluntarily designate as
a salvage vehicle by obtaining a salvage 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.
Notwithstanding any other provision of this chapter, a State
may use the term `older model salvage vehicle' to designate a
wrecked, destroyed, or damaged vehicle that does not meet the
definition of a late model vehicle in paragraph (9). If a State
has established or establishes a salvage definition at a lesser
percentage than provided under subparagraph (A), then that
definition shall not be considered to be inconsistent with the
provisions of this chapter.
``(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 `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 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
pursuant to section 33302(b)(8), and has a decal
stating `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 certificate
indicating that the passenger motor vehicle 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 `rebuilt 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
Inspections Passed' or `Rebuilt Salvage Vehicle--Anti-theft
Inspection Passed/No Safety Inspection Pursuant to National
Criteria,' as appropriate, across the front.
``(6) Nonrepairable vehicle.--The term `nonrepairable
vehicle' means any passenger motor vehicle, other than a flood
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 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 conspicuously 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 designation
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 by $500 increments
every 5 years beginning with an increase to $8,000 on January
1, 2005.
``(10) Retail value.--The term `retail value' means the
actual cash value, fair market value, or retail 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 survey of
comparable vehicles with regard to condition and
equipment.
``(11) Cost of repairs.--The term `cost of repairs' means
the estimated retail cost of parts needed to repair the vehicle
or, if the vehicle has been repaired, 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
reasonable and customary in the automobile repair industry in
the community where the repairs are to be performed.
``(12) Flood vehicle.--
``(A) In general.--The term `flood vehicle' means
any passenger motor vehicle that--
``(i) has been acquired by an insurance
company as part of a damage settlement due to
water damage; or
``(ii) has been submerged in water to the
point that rising water has reached over the
door sill, has entered the passenger or trunk
compartment, and has exposed any electrical,
computerized, or mechanical component to water,
except where a passenger motor vehicle which,
pursuant to an inspection conducted by an
insurance adjuster or estimator, a motor
vehicle repairer or motor vehicle dealer in
accordance with inspection guidelines or
procedures established by the Secretary or the
State, is determined--
``(I) to have no electrical,
computerized, or mechanical components
which were damaged by water; or
``(II) to have one or more
electrical, computerized, or mechanical
components which were damaged by water
and where all such damaged components
have been repaired or replaced.
``(B) Inspection not required for all flood
vehicles.--No inspection under subparagraph (A) shall
be required unless the owner or insurer of the
passenger motor vehicle is seeking to avoid a brand of
`Flood' pursuant to this chapter.
``(C) Inspection must be by independent party.--A
motor vehicle repairer or motor vehicle dealer may not
carry out an inspection under subparagraph (A) on a
passenger motor vehicle that has been repaired, or is
to be sold or leased, by that repairer or dealer.
``(D) Effect of disclosure.--Disclosing a passenger
motor vehicle's status as a flood vehicle or conducting
an inspection pursuant to subparagraph (A) shall not
impose on any person any liability for damage to
(except in the case of damage caused by the inspector
at the time of the inspection) or reduced value of a
passenger motor vehicle.
``(b) Construction.--The definitions set forth in subsection (a)
only apply to vehicles in a State which are wrecked, destroyed, or
otherwise damaged on or after the date on which such State complies
with the requirements of this chapter and the rule promulgated pursuant
to section 33302(b).
``Sec. 33302. Passenger motor vehicle titling
``(a) Carry-Forward of State Information.--For any passenger motor
vehicle, the ownership of which is transferred on or after the date
that is 1 year after the date of the enactment of the National Salvage
Motor Vehicle Consumer Protection Act of 1999, any State receiving
funds under section 33308 of this chapter, 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 vehicle was `salvage', `older model
salvage', `unrebuildable', `parts only', `scrap', `junk',
`nonrepairable', `reconstructed', `rebuilt', or any other symbol or
word of like kind, or that it has been damaged by flood, and the name
of the State that issued that title.
``(b) Nationally Uniform Title Standards and Control Methods.--Not
later than 18 months after the date of the enactment of the National
Salvage Motor Vehicle Consumer Protection Act of 1999, the Secretary
shall by rule require any State receiving funds under section 33308 of
this chapter, in licensing 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 requirements:
``(1) A State shall conspicuously indicate on the face of
the title or certificate for a passenger motor vehicle, as
applicable, if the passenger motor vehicle is a salvage
vehicle, a nonrepairable vehicle, a rebuilt salvage vehicle, or
a flood vehicle.
``(2) Such information concerning a passenger motor
vehicle's status shall be conveyed on any subsequent 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 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 uniform layout,
to be established in consultation with the States 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 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
following:
``(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 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 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, defaced, or
falsified. Any such passenger motor vehicle or any such part 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 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 vehicle identification number is
normally removed during industry accepted remanufacturing or rebuilding
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 remanufactured. With respect to any vehicle part, the
Secretary's rule, as required by this section, shall acknowledge that a
mark or vehicle identification number on such part may be legally
removed 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) Any safety inspection for a rebuilt salvage vehicle
performed pursuant to this chapter shall be performed in
accordance with nationally uniform safety inspection criteria
established by the Secretary. A State may determine whether to
conduct such safety inspection 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 paragraph 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 issued
unless the word `duplicate' is clearly marked on the face
thereof and unless the procedures for such issuance are
substantially consistent with Recommendation three of the Motor
Vehicle Titling, Registration and Salvage Advisory Committee.
``(10) A State shall employ the following titling and
control methods:
``(A) If an insurance company is not involved in a
damage settlement involving a salvage vehicle or a
nonrepairable vehicle, the passenger motor vehicle
owner shall 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 damage 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 nonrepairable vehicle
certificate within 30 days after the title is properly assigned by the
owner to the insurance company and delivered to the insurance company
or salvage facility or other agent on its behalf with all liens
released.
``(C) If an insurance company does not assume
ownership of an insured's or claimant's passenger motor
vehicle that has incurred damage requiring the vehicle
to be titled as a salvage vehicle or nonrepairable
vehicle, the insurance company shall notify--
``(i) the owner of the owner's obligation
to apply for a salvage title or nonrepairable
vehicle certificate for the passenger motor
vehicle; and
``(ii) 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 notification is prohibited by
State insurance law. The notices shall be made in
writing within 30 days after the insurance company
determines that the damage will require a salvage title
or a nonrepairable certificate and that the vehicle
will be left with the owner.
``(D) If a leased passenger motor vehicle incurs
damage requiring the vehicle to be titled as a salvage
vehicle or nonrepairable vehicle, the lessor shall
apply for a salvage title or nonrepairable vehicle
certificate within 21 days after being notified by the
lessee that the vehicle has been so damaged, except
when an insurance company, pursuant to a damage
settlement, 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 damage. Nothing in this
subparagraph requires that the requirements for
notification be contained in the lease itself, as long
as effective notice is provided by the lessor to the
lessee of the requirements.
``(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 nonrepairable
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 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 vehicle, such transferee shall, at the time
of final disposal of the vehicle, use the services of a
professional 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 certificate to the State on
behalf of such second transferee. State records shall
be updated to indicate 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
certificate, the State of surrender shall notify the
State of origin of the surrender of the title or
nonrepairable vehicle certificate and of the
destruction 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 Secretary
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 issuance 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 required by
the State, the inspection official will affix the
secure decal required pursuant to section 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 shall comply with the
permanency 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 required by the State. With
such proper documentation 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
flood vehicle shall, prior to the time of transfer of ownership
of the vehicle, give the transferee a written notice that the
vehicle has been damaged by flood, provided such person has
actual knowledge that such vehicle has been damaged by flood.
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.
``(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,
if permitted by State law, 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 highways.
``(c) Electronic Procedures.--A State may employ electronic
procedures in lieu of paper documents whenever such electronic
procedures provide the same information, function, and security
otherwise required by this section.
``(d) National Record of Compliant States.--The Secretary shall
establish a record of the States which are in compliance with the
requirements of subsections (a) and (b) of this section. The Secretary
shall work with States to update this record upon the enactment of a
State law which causes a State to come into compliance or become
noncompliant with the requirements of subsections (a) and (b) of this
section. Not later than 18 months after the enactment of the National
Salvage Motor Vehicle Consumer Protection Act of 1999, the Secretary
shall establish a mechanism or mechanisms to identify to interested
parties whether a State is in compliance with the requirements of
subsections (a) and (b) of this section.
``Sec. 33303. Disclosure and label requirements on transfer of rebuilt
salvage vehicles
``(a) Written Disclosure Requirements.--
``(1) General rule.--Under regulations prescribed by the
Secretary of Transportation, a person transferring ownership of
a rebuilt salvage vehicle shall, prior to the time of transfer
of ownership of the vehicle, 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 rebuilt 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 information is
disclosed and retained under paragraph (1).
``(b) Label Requirements.--
``(1) In general.--The Secretary shall by regulation
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 participating State.
``(2) Removal, alteration, or illegibility of required
label.--No person shall willfully remove, alter, or render
illegible any label required by paragraph (1) affixed to a
rebuilt salvage vehicle before 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.
``Sec. 33304. Report on funding
``The Secretary shall, contemporaneously with the issuance 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
established by such rule.
``Sec. 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 such a State that receives funds
under section 33308 of this chapter, 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 passenger motor vehicle part or
part assembly separate from a passenger motor vehicle), any
term defined in section 33301 or the terms `salvage',
`nonrepairable', or `flood', 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, nonrepairable
vehicle, or flood vehicle.
``(b) Exceptions.--
``(1) Passenger motor vehicle; older model salvage.--
Subsection (a)(2) does not preempt State use of the term--
``(A) `passenger motor vehicle' in statutes not
related to titling, recordkeeping, anti-theft
inspection, or control procedures in connection with
any salvage vehicle, rebuilt salvage vehicle,
nonrepairable vehicle, or flood vehicle ; or
``(B) `older model salvage' to designate a wrecked,
destroyed, or damaged vehicle that is older than a late
model vehicle.
``(2) Private law actions.--Nothing in this chapter may be
construed to affect any private right of action under State
law.
``(c) Construction.--Additional disclosures of a passenger 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 disclosures 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 section 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 promulgated
pursuant to section 33302(b)(8).
``Sec. 33306. Civil penalties
``(a) Prohibited Acts.--It is unlawful for any person knowingly
to--
``(1) make or cause to be made any false statement 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 vehicle
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 information
in the course of, an inspection conducted pursuant to section
33302(b)(7) or (8);
``(5) offer to sell any salvage vehicle or nonrepairable
vehicle as a rebuilt salvage vehicle;
``(6) fail to make any disclosure required by section
33302(b)(11);
``(7) fail to make any disclosure required by section
33303;
``(8) violate a regulation prescribed under this chapter;
``(9) move a vehicle or a vehicle title in interstate
commerce for the purpose of avoiding the titling requirements
of this chapter; or
``(10) conspire to commit any of the acts enumerated in
paragraph (1), (2), (3), (4), (5), (6), (7), (8), or (9).
``(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.
``Sec. 33307. Actions by States
``(a) In General.--When a person violates any provision of this
chapter, the chief law enforcement officer of the State in which the
violation occurred may bring an action--
``(1) to restrain the violation;
``(2) recover amounts for which a person is liable under
section 33306; or
``(3) to recover the amount of damage suffered by any
resident in that State who suffered damage as a result of the
knowing commission of an unlawful act under section 33306(a) by
another person.
``(b) Statute of Limitations.--An action under subsection (a) shall
be brought in any court of competent jurisdiction within 2 years after
the date on which the violation occurs.
``(c) Notice.--The State shall serve prior written notice of any
action under subsection (a) or (f)(2) upon the Attorney General of the
United States and provide the Attorney 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
instituting such action. Upon receiving a notice respecting an 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.
``(d) Construction.--For purposes of bringing any 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 witnesses or the production
of documentary and other evidence.
``(e) Venue; Service of Process.--Any 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
transacts 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.
``(f) Actions by State Officials.--
``(1) Nothing contained in this section shall prohibit an
attorney general of a State or other authorized State official
from proceeding in State court on the basis of an alleged
violation of any civil or criminal statute of such State,
including those related to consumer protection.
``(2) In addition to actions brought by an attorney 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.
``Sec. 33308. Incentive Grants
``(a) General Authority.--The Secretary of Transportation shall
make a grant to each State that demonstrates to the satisfaction of the
Secretary that it is taking appropriate actions to implement the
provisions of this chapter.
``(b) Grants.--Pursuant to subsection (a), a grant to carry out
this chapter in a fiscal year shall be provided to each qualifying
State in an amount determined by multiplying--
``(1) the amount authorized for the fiscal year to carry
out this chapter, by
``(2) the ratio that the amount of funds apportioned to
each qualifying State under section 402 of title 23, United
States Code, for the fiscal year bears to the total amount of
funds apportioned to all qualifying States under section 402 of
title 23, United States Code, for such fiscal year, except that
no State eligible for a grant under this paragraph shall
receive less than $250,000.
``(c) Use of Grants.--Any State that receives a grant under this
section shall use the funds to carry out the provisions of this
chapter, including such conformance related activities as issuing
titles, establishing and administering vehicle theft or salvage
vehicles safety inspections, enforcement, and other related purposes.
``(d) Authorization of Appropriations.--
``(1) In general.--There is authorized to be appropriated
to carry out this chapter $16,000,000 for fiscal year 2000.
``(2) Availability of funds.--Funds authorized by this
section shall remain available until expended.''.
(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 following new item:
``333. AUTOMOBILE SAFETY AND TITLE DISCLOSURE REQUIREMENTS. 33301''.
SEC. 3. AMENDMENTS TO CHAPTER 305.
(a) Definitions.--
(1) Section 30501(4) of title 49, United States Code, is
amended to read as follows:
``(4) `nonrepairable vehicle', `salvage vehicle', `flood
vehicle', and `rebuilt salvage vehicle' have the same meanings
given those terms in section 33301 of this title.''.
(2) Section 30501(5) of such title is amended by striking
``junk automobiles'' and inserting ``nonrepairable vehicles''.
(3) Section 30501(8) of such title is amended by striking
``salvage automobiles'' and inserting ``salvage vehicles''.
(4) Section 30501 of such title is amended by striking
paragraph (7) and redesignating paragraphs (8) and (9) as
paragraphs (7) and (8), respectively.
(b) National Motor Vehicle Title Information System.--
(1) Section 30502(d)(3) of title 49, United States Code, is
amended 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, a flood vehicle, or a salvage
vehicle;''.
(2) Section 30502(d)(5) of such title is amended 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, a flood vehicle, or a
salvage vehicle under section 30504 of this title.''.
(c) State Participation.--Section 30503 of title 49, United States
Code, is amended to read as follows:
``Sec. 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 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 communicate 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 requirements 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.
``(d) Report to Congress.--Not later than October 1, 1999, 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 vehicles, flood vehicles, or salvage
vehicles''.
SEC. 4. DEALER NOTIFICATION PROGRAM FOR PROHIBITED SALE OF
NONQUALIFYING VEHICLES FOR USE AS SCHOOLBUSES.
Section 30112 of title 49, United States Code, is amended by adding
at the end thereof the following:
``(c) Notification Program for Dealers Concerning Sales of Vehicles
as Schoolbuses.--Not later than September 1, 1999, the Secretary shall
develop and implement a program to notify dealers and distributors in
the United States that subsection (a) prohibits the sale or delivery of
any vehicle for use as a schoolbus (as that term is defined in section
30125(a)(1) of this title) that does not meet the standards prescribed
under section 30125(b) of this title.''.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S2859-2861)
Read twice and referred to the Committee on Commerce.
Sponsor introductory remarks on measure. (CR S5021-5025)
Sponsor introductory remarks on measure. (CR S5732)
Committee on Commerce. Ordered to be reported without amendment favorably.
Committee on Commerce. Reported to Senate by Senator McCain without amendment. With written report No. 106-123.
Committee on Commerce. Reported to Senate by Senator McCain without amendment. With written report No. 106-123.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 231.
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