H.R. 183 (ih) ...

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                                                 Union Calendar No. 161

105th CONGRESS

  1st Session

                               H. R. 1839

                      [Report No. 105-285, Part I]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                           September 30, 1997

Reported from the Committee on Commerce with an amendment; referral to 
 the Committee on the Judiciary extended for a period ending not later 
    than September 30, 1997; Committee on the Judiciary discharged; 
   committed to the Committee of the Whole House on the State of the 
                    Union; and ordered to be printed





                                                 Union Calendar No. 161
105th CONGRESS
  1st Session
                                H. R. 1839

                      [Report No. 105-285, Part I]

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

                           September 30, 1997

Additional sponsors: Mr. Oxley, Mr. Brown of Ohio, Mr. Nethercutt, Mr. 
     Shays, Mr. Moran of Virginia, Mr. Gillmor, Mr. Adam Smith of 
 Washington, Mr. Dan Schaefer of Colorado, Mr. Wynn, Mr. Largent, Mr. 
  Gordon, Mr. Taylor of Mississippi, Mr. Snowbarger, Mr. Hansen, Mr. 
Skeen, Mr. Callahan, Mr. Klug, Mr. Burr of North Carolina, Mr. Rahall, 
  Mrs. Cubin, Mr. Bachus, Mr. Pallone, Mr. LaTourette, Mr. Goode, Mr. 
 Coburn, Mr. Cox of California, Mr. Rush, Mr. Wise, Mr. Whitfield, Mr. 
 Peterson of Pennsylvania, Mr. Tanner, Mr. Dellums, Mr. Mollohan, Mr. 
 Price of North Carolina, Mr. Kleczka, Mr. Snyder, Mr. Pickering, Mr. 
Duncan, Mr. Roemer, Mr. Calvert, Mr. Redmond, Mr. Bryant, Mr. Hinchey, 
 Mrs. Smith of Washington, Mr. McCrery, Mr. Everett, Mr. Baesler, Mrs. 
  Thurman, Mr. Pomeroy, Mr. Lucas of Oklahoma, Mr. John, Mr. Lewis of 
   Kentucky, Mr. Clement, Mr. Jefferson, Mr. Wicker, Mr. Schiff, Mr. 
Hilleary, Mr. Stearns, Mr. Stump, Mr. Doyle, Mr. Davis of Virginia, Mr. 
Canady of Florida, Mr. Christensen, Mr. Hall of Ohio, Mr. Gibbons, Mr. 
  Bereuter, Mrs. Maloney of New York, Mr. Gutknecht, Mrs. Fowler, Mr. 
 Blunt, Mr. Ramstad, Mr. Neumann, Mr. Talent, Mr. Barrett of Nebraska, 
 Ms. Harman, Mr. Royce, Mr. Boehlert, Mr. Knollenberg, Mr. Bass, Mrs. 
   Lowey, Mr. Goodlatte, Mr. Etheridge, Mr. Edwards, Mr. Latham, Ms. 
   DeLauro, Mr. Oberstar, Mr. Kennedy of Rhode Island, Mr. Ford, Mr. 
   Bunning, Mr. Weller, Mr. Barrett of Wisconsin, Mr. Aderholt, Mr. 
Cunningham, Mr. Skelton, Mr. Mascara, Ms. Kilpatrick, Mr. Mica, and Mr. 
                                Baldacci

                           September 30, 1997

       Reported from the Committee on Commerce with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                           September 30, 1997

Referral to the Committee on the Judiciary extended for a period ending 
                   not later than September 30, 1997

                           September 30, 1997

 Committee on the Judiciary discharged; committed to the Committee of 
  the Whole House on the State of the Union and ordered to be printed
 [For text of introduced bill, see copy of bill as introduced on June 
                               10, 1997]

_______________________________________________________________________

                                 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.

    (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. 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), 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 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 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.
``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 
participating in the National Motor Vehicle Title Information System 
established under chapter 305 of subtitle VI of this title, 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 participating in the 
National Motor Vehicle Title Information System established under 
chapter 305 of subtitle VI of this title, 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, 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 

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