[Congressional Bills 105th Congress]
[From the U.S. Government Printing Office]
[H.R. 1839 Introduced in House (IH)]
105th CONGRESS
1st Session
H. R. 1839
To establish nationally uniform requirements regarding the titling and
registration of salvage, nonrepairable, and rebuilt vehicles.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 10, 1997
Mr. White (for himself, Mr. Towns, Mr. Horn, Mr. Norwood, and Ms. Dunn)
introduced the following bill; which was referred to the Committee on
Commerce, and in addition to the Committee on the Judiciary, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
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 1997''.
SEC. 2. MOTOR VEHICLE TITLING AND DISCLOSURE REQUIREMENTS.
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 salvage
vehicles.
``33304. Report on funding.
``33305. Petitions for extensions of time.
``33306. Effect on State law.
``33307. Civil and criminal penalties.
``33308. Actions by States.
``Sec. 33301. Definitions
``For the purposes of this chapter:
``(1) Passenger motor vehicle.--The term `passenger motor
vehicle' shall have the same meaning given such term by section
32101(10).
``(2) Salvage vehicle.--The term `salvage vehicle' means
any passenger motor vehicle which--
``(A) is a late model vehicle which has been
wrecked, destroyed, or damaged, to the extent that the
total estimated or actual 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
cost limit 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)(7), 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)(7), 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)(7).
``(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 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 $10,000.
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, as approved by the
Secretary; or
``(B) determined pursuant to a market survey of
comparable vehicles with regard to condition and
equipment, in a manner approved by the Secretary.
``(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.
``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, 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, 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:
``(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, or a rebuilt salvage vehicle
and whether such vehicle was damaged by flood.
``(2) Such information concerning a passenger motor
vehicle's status shall be conveyed on any 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 State or an
organization representing them.
``(6) A passenger motor vehicle designated as nonrepairable
shall be issued a nonrepairable vehicle certificate and shall
not be retitled.
``(7) No rebuilt salvage title shall be issued to a salvage
vehicle unless, after the salvage vehicle is repaired or
rebuilt, it complies with the requirements for a rebuilt
salvage vehicle pursuant to section 33301(4). Any State
inspection program designed to comply with this paragraph shall
be subject to continuing review by and approval of the
Secretary. Such inspection program shall include the following:
``(A) A passenger motor vehicle owner submitting a
vehicle for an anti-theft inspection shall be required
to 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, to the knowledge of the
declarant, no stolen parts were used during the
rebuilding.
``(B) Any passenger motor vehicle or any major part
or major replacement part required to be marked under
section 33102 having a mark or vehicle identification
number that has been illegally altered, defaced, or
falsified, and that cannot be identified as having been
legally obtained (through bills of sale, invoices, or
other ownership documentation), shall be 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.
``(C) The Secretary shall establish nationally
uniform safety inspection criteria to be used in those
States requiring such a safety inspection. A State may
determine whether to conduct such safety inspection
itself, contract with a third party, or permit self-
inspection, all subject to criteria promulgated by the
Secretary hereunder. A State requiring such safety
inspection may require the payment of a fee for the
privilege of such inspection or the processing thereof.
``(8) No duplicate or replacement title shall be issued
unless the word `duplicate' is clearly marked on the face
thereof and unless the procedures for such issuance are
substantially consistent with Recommendation three (3) of the
Motor Vehicle Titling, Registration and Salvage Advisory
Committee.
``(9) A State shall employ the following titling and
control methods:
``(A) If an insurance company is not 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 15
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, as required by
the applicable State, 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.
``(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) and (7), as applicable,
indicating that the vehicle has passed the inspections
required by the State. This subparagraph does not
preclude the issuance of a new salvage title for a
salvage 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
and vehicle registration 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
and registration shall be issued to the owner. When a
rebuilt salvage title is issued, the State records
shall so note.
``(10) A seller of a passenger motor vehicle that becomes a
salvage vehicle due to damage by flood shall, at or prior to
the time of transfer of ownership, give the buyer a written
notice that the vehicle has been damaged by flood. At the time
of the next title application for the vehicle, disclosure of
the flood status shall be provided to the applicable State with
the properly assigned title and the word `Flood' shall be
conspicuously labeled across the front of the new title.
``(11) In the case of a leased passenger motor vehicle, the
lessee, within 15 days of the occurrence of the event that
caused the vehicle to become a flood vehicle, shall give the
lessor written disclosure that the vehicle is a flood vehicle.
``(c) Salvage Title.--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.
``(d) Rebuilt Salvage Title.--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.
``(e) Nonrepairable Vehicle Certificate.--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.
``Sec. 33303. Disclosure and label requirements on transfer of salvage
vehicles
``(a) Written Disclosure Requirements.--
``(1) General rule.--Under regulations prescribed by the
Secretary of Transportation, a person transferring ownership of
a salvage vehicle shall give the transferee a written
disclosure that the vehicle is a salvage 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 salvage vehicle
for resale may accept a disclosure under subsection (a) 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 subsection (a).
``(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 or remanufactured salvage vehicle before its first
sale at retail containing such information regarding that
vehicle as the Secretary may require. The requirements
prescribed by the Secretary under this paragraph shall be
similar to the requirements of section 3 of the Automobile
Information Disclosure Act (15 U.S.C. 1232). The label shall be
affixed by the individual who conducts the applicable State
antitheft inspection.
``(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 or remanufactured salvage vehicle before the vehicle is
delivered to the actual custody and possession of the ultimate
purchaser of the vehicle.
``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. Petitions for extensions of time
``The Secretary may grant a State, for good cause shown, an
extension of time to comply with the requirements established in
section 33302(a). No such extension shall remain in effect on or after
the compliance date established pursuant to section 33302(b).
``Sec. 33306. Effect on State law
``(a) In General.--Effective on the date the rule promulgated
pursuant to section 33302 becomes effective, the provisions of this
chapter shall preempt all State laws, to the extent they are
inconsistent with the provisions of this chapter or the rule
promulgated pursuant to section 33302, which--
``(1) set forth the form of the passenger motor vehicle
title;
``(2) define, in connection with a passenger motor vehicle
(but not in connection with a 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); and
``(3) set forth titling, recordkeeping, anti-theft
inspection, or control procedures in connection with any
salvage vehicle, rebuilt salvage vehicle, nonrepairable
vehicle, or flood vehicle defined in section 33301.
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. 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)(7).
``Sec. 33307. Civil and criminal penalties
``(a) Prohibited Acts.--It shall be unlawful for any person
knowingly and willfully to--
``(1) make or cause to be made any false statement on an
application for a title (or duplicate title) for a passenger
motor vehicle;
``(2) fail to apply for a salvage title when such an
application is required;
``(3) alter, forge, or counterfeit a certificate of title
(or an assignment thereof), a nonrepairable vehicle
certificate, a certificate verifying an anti-theft inspection
or an anti-theft and safety inspection, or a decal affixed to a
passenger motor vehicle pursuant to section 33302(b)(9)(I);
``(4) falsify the results of, or provide false information
in the course of, an inspection conducted pursuant to section
33302(b)(7);
``(5) offer to sell any salvage vehicle or nonrepairable
vehicle as a rebuilt salvage vehicle; or
``(6) conspire to commit any of the acts enumerated in
paragraphs (1), (2), (3), (4), and (5).
``(b) Civil Penalty.--Any person who commits an unlawful act as
provided in subsection (a) of this section shall be fined a civil
penalty of up to $2,000 per offense.
``(c) Criminal Penalty.--Any person who commits an unlawful act as
provided in subsection (a) of this section shall be fined up to $50,000
or sentenced up to 3 years imprisonment or both, per offense.
``Sec. 33308. 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 engaged or is engaging in a pattern or practice of violating
section 33306, the State, as parens patriae, may bring a civil action
on behalf of its residents in an appropriate district court of the
United States to enjoin such violation or to enforce the civil
penalties under section 33307 or may enforce the criminal penalties
under section 33307.
``(b) Notice.--The State shall serve prior written 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 Other State Officials.--
``(1) Nothing contained in this section shall prohibit an
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.''.
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