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Reported to Senate (07/28/1999)

 
[Congressional Bills 106th Congress]
[From the U.S. Government Printing Office]
[S. 655 Reported in Senate (RS)]





                                                       Calendar No. 231

106th CONGRESS

  1st Session

                                 S. 655

                          [Report No. 106-123]

_______________________________________________________________________

                                 A BILL

To establish nationally uniform requirements regarding the titling and 
     registration of salvage, nonrepairable, and rebuilt vehicles.

_______________________________________________________________________

                             July 28, 1999

                       Reported without amendment
                                                       Calendar No. 231
106th CONGRESS
  1st Session
                                 S. 655

                          [Report No. 106-123]

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, Mr. Grams, Mr. Breaux, Mr. 
    Thomas, Mr. Thompson, Mr. Roberts, Mr. Hatch, and Mr. Abraham) 
introduced the following bill; which was read twice and referred to the 
           Committee on Commerce, Science, and Transportation

                             July 28, 1999

               Reported by Mr. McCain, without amendment

_______________________________________________________________________

                                 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 independant 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.''.