[Congressional Bills 105th Congress]
[From the U.S. Government Printing Office]
[H.R. 1839 Engrossed in House (EH)]
1st Session
H. R. 1839
_______________________________________________________________________
AN ACT
To establish nationally uniform requirements regarding the titling and
registration of salvage, nonrepairable, and rebuilt vehicles.
105th CONGRESS
1st Session
H. R. 1839
_______________________________________________________________________
AN ACT
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 1997''.
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 and criminal penalties.
``33307. Actions by States.
``Sec. 33301. Definitions
``(a) 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, notwithstanding section 32101(9), it shall
include a multipurpose 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 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 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 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.
``(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 on an annual 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 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.--The term `flood vehicle' means any
passenger motor vehicle that--
``(A) has been acquired by an insurance company as
part of a damage settlement due to water damage; or
``(B) 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--
``(i) 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 to have no electrical,
computerized or mechanical components which
were damaged by water; or
``(ii) 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 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.
Disclosure that a vehicle is a flood vehicle must be made at
the time of transfer of ownership and the brand `Flood' shall
be conspicuously marked on all subsequent titles for the
vehicle. No inspection shall be required unless the owner or
insurer of the passenger motor vehicle is seeking to avoid a
brand of `Flood' pursuant to subparagraph (B). Disclosing a
passenger motor vehicle's status as a flood vehicle or
conducting an inspection pursuant to subparagraph (B) 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)
shall 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 Information on a Newly Issued Title Where
the Previous Title for the Vehicle 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 receiving
funds, either directly or indirectly, appropriated under section
30503(c) of this title after fiscal year 1998, 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',
`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.
``(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 receiving funds, either
directly or indirectly, appropriated under section 30503(c) of this
title after fiscal year 1998, 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 the owner
of the owner's obligation to apply for a salvage title
or nonrepairable 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 notification is
prohibited by State insurance law.
``(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.
``(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, at or prior to the time of transfer of
ownership, give the buyer 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
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) Consumer Notice in Noncompliant States.--Any State receiving,
either directly or indirectly, funds appropriated under section
30503(c) of this title after fiscal year 1998 and not complying with
the requirements 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 compliance 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.'.
``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 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 in States receiving funds, either
directly or indirectly, 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 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
inspection, or control procedures in connection with any
salvage vehicle, rebuilt salvage vehicle, nonrepairable
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 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 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 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
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 enumerated 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 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.
``Sec. 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 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 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
witnesses 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 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.
``(e) 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.
``(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.''.
(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) 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 inserting ``nonrepairable
vehicles''.
(3) Amend section 30501(8) by striking ``salvage
automobiles'' and inserting ``salvage vehicles''.
(4) Strike paragraph (7) of section 30501 of title 49,
United States Code, and renumber the succeeding sections
accordingly.
(b) National Motor Vehicle Title Information 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 vehicle;''.
(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:
``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, 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 vehicles, or salvage vehicles''.
Passed the House of Representatives November 4, 1997.
Attest:
Clerk.