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S. 852 (es) To establish nationally uniform requirements regarding the titling and registration of salvage, nonrepairable, and rebuilt vehicles. ...
105th CONGRESS 2d Session S. 852 _______________________________________________________________________ AMENDMENT In the House of Representatives, U. S., October 10, 1998. Resolved, That the bill from the Senate (S. 852) entitled ``An Act to establish nationally uniform requirements regarding the titling and registration of salvage, nonrepairable, and rebuilt vehicles'', do pass with the following AMENDMENT: Strike out all after the enacting clause and insert: SECTION 1. SHORT TITLE. This Act may be cited as the ``National Salvage Motor Vehicle Consumer Protection Act of 1998''. 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. ``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; ``(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 on an annual basis in accordance with changes in the consumer price index. ``(10) Retail value.--The term `retail value' means the actual cash value, fair market value, or retail value of a passenger motor vehicle as-- ``(A) set forth in a current edition of any nationally recognized compilation (to include automated databases) of retail values; or ``(B) determined pursuant to a market survey of comparable vehicles with regard to condition and equipment. ``(11) Cost of repairs.--The term `cost of repairs' means the estimated retail cost of parts needed to repair the vehicle or, if the vehicle has been repaired, the actual retail cost of the parts used in the repair, and the cost of labor computed by using the hourly labor rate and time allocations that are reasonable and customary in the automobile repair industry in the community where the repairs are to be performed. ``(12) Flood vehicle.-- ``(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) 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 1998, each State receiving funds, either directly or indirectly, appropriated under section 30503(c) of this title after the date of the enactment of that Act, 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 1998, the Secretary shall by rule require each State receiving funds, either directly or indirectly, appropriated under section 30503(c) of this title after the date of the enactment of that Act, 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
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