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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,
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