During the debate of the Anti-Car Theft Act of 1992, surely it was not the intent of Congress that the resolve for the national titling dilemma would be so difficult. Unfortunately, the establishment of the Motor Vehicle Titling, Registration and Salvage Federal Advisory Committee to pursue the issue is at the foundation of the lack of consensus we now face as an industry.

The industry classes encouraged by Congress to participate in the federal advisory process were weighted very heavily toward law enforcement, and state and federal regulators. Much of the data necessitated for this debate - and that has become central to Capitol Hill discussions - was not fully developed during the advisory committee deliberations. What was debated at remedial levels during the advisory committee process is again being addressed in Congress. Many of the same questions linger. Unfortunately, neither the report nor institutional memory resolves the ongoing consumer and industry concerns.

Late last year, in the 105th Congress, the National Uniform Titling legislation inched closer to becoming law. As the options opened for the legislation to permanently become part of the omnibus budget package, some consumer organizations and the National Association of Attorneys General (NAAG) advocated changes that were too extreme for many policymakers and the industry. The language was eventually dropped from the process.

The titling bill has been a top priority for several years for the National Automobile Dealers Association (NADA). Insurance interests have varied with a major carrier supporting U.S. Senate Majority Leader Trent Lott's efforts in the 105th Congress and other insurance entities being more comfortable with current law or states taking any reform initiatives on their own. The Automotive Service Association (ASA) supports national uniform titling. ASA is concerned that the definitions for salvage and non-repairable vehicles are moving in an impractical direction. Also, Congress has refused to address a major issue in this debate, post-repair inspection.

Although the Federal Advisory Committee reviewed and discussed post-repair inspection, Congress has been reluctant to pursue it due to reasons that should not surprise the citizenry: 1) cost, 2) Who performs the inspection?, 3) Is the regulatory arm reaching too far? For the titling debate to reach the right plain, it must address post-repair inspection in some form.

Where is the titling debate now? Sen. Lott has reintroduced his titling bill (S. 655), the National Salvage Motor Vehicle Consumer Protection Act of 1999. And Sen. Diana Feinstein has introduced the Salvaged and Damaged Motor Vehicle Information Disclosure Act (S. 678).

Sen. Lott's bill is similar to what has been debated for the last several years: a 75 percent salvage definition; a late model vehicle is defined as six years plus the year the vehicle was wrecked (seven years); and a late model vehicle can also be defined as having a retail value of more than $7,500. The U.S. Secretary of Transportation shall adjust this retail value by $500 increments every five years with an increase to $8,000 Jan. 1, 2005.

The S. 655 bill also contains the following definition of a 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."

The bill contains no post-repair inspection provision.

Sen. Feinstein's bill takes a very aggressive approach to the titling issue. The S. 678 bill is supported by various consumer organizations, recyclers and state attorneys general. Sen. Feinstein stated, "In California alone, the state's Department of Consumer Affairs found that more than 700,000 structurally damaged and 150,000 salvaged vehicles are returned to streets and highways every year without a safety inspection, and they pose a potential hazard to all of California's 20 million unsuspecting motorists."

This legislation defines a salvage vehicle as one that has suffered major damage, in one incident, for which the cost of repair exceeds 65 percent of the vehicle's fair retail market value immediately before it was damaged. This definition would apply to all vehicles regardless of their age or value.

The legislation defines a nonrepairable vehicle as having suffered major damage, in one incident, for which the cost of repair exceeds 90 percent of the vehicle's fair retail market value before it was damaged. For the first time, a percentage is tied to the nonrepairable definition.

The bill does contain a post-repair inspection system for repaired salvage and flood vehicles. The repairer will have the responsibility for inspecting the vehicle. The secretary of transportation will develop regulations and guidelines for the inspection. The bill does contain some general parameters for this process.

The national uniform titling debate has been in play for several years. What has been a key area of contention has now become part of Sen. Feinstein's legislation. Although the post-repair inspection concept is a good step, ASA does have concerns with the low percentage definition for salvage vehicles and the natural bias against older vehicles. ASA also supports the non-repairable definition contained in Sen. Lott's bill and is uncomfortable with a percentage definition for non-repairable vehicles as contained in Sen. Feinstein's initiative.

The 106th Congress should see resolution to the titling debate. Certainly, one option is that states continue with their individual jurisdiction over the issue and set their own policies. Sen. Feinstein's bill allows for some "state choice."

ASA will continue to work with Congress and other interested parties in the industry to develop the most effective titling system for our nation.

Bob Redding is the Automotive Service Association's Washington, D.C., representative. He is a member of several federal and state advisory committees involved in the automotive industry. For more information about the legislative activities of ASA, visit www.TakingTheHill.com.

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