(f) A jurisdiction issuing an electronic title shall retain the capacity to issue physical titles meeting all the requirements of this part. Private used car sales accounted for approximately 28 percent of 2017 used car sales or slightly less than 11 million sales. Petitions for reconsideration of this final rule must refer to the docket and notice number set forth above and be submitted to the Administrator, National Highway Traffic Safety Administration, 1200 New Jersey Avenue SE, Washington, DC 20590. Therefore, NHTSA's view is that the increased age of vehicles, the changes in the used car market prompted by vehicle longevity, the relative ease with which modern odometers may be rolled back and the known trends in odometer fraud support extending the exemption to 20 years. Further, Texas observed electronic lien systems and electronic titles raise the question of whether the power of attorney can be used under the existing restriction that the power of attorney can be used only when a title is lost or physically held by the lienholder. Final rule § 580.6(a)(2) and (3) mirror provisions for electronic record retrieval and storage that were found in § 580.6(a)(4) of the NPRM's regulatory text. Six comments were filed by state motor vehicle departments: The Motor Vehicle Division of the Arizona Department of Transportation (Arizona), the California Department of Motor Vehicles (California), the Florida Department of Highway Safety and Motor Vehicles (Florida), the Oregon Driver and Motor Vehicle Services (Oregon), the Texas Department of Motor Vehicles (Texas), and the Virginia Department of Transportation (Virginia). Section 580.7(b) and (c) state lessees must execute an odometer disclosure statement with any transfer of ownership and provide this disclosure statement to the lessor. ORIGINAL. Effective odometer disclosure systems are essential to protecting consumers from odometer fraud and must reduce or eliminate opportunities for such fraud to the greatest practicable extent. Other terms used in this part are defined as follows: Access means the authorized entry to, and display of, an electronic title in a manner allowing modification of previously stored data, even if the stored data is not modified at the time it is accessed. Amend § 580.11 by revising paragraphs (a), (b)(2) through (4), and (c) to read as follows: (a) A state may petition NHTSA for approval of disclosure requirements which differ from the disclosure requirements of § 580.5, § 580.6, § 580.7, or § 580.13(f) of this part. These have been relocated as the focus of § 580.6, which has been narrowed to electronic odometer disclosures embedded in electronic titles and powers of attorney. The final rule further states electronic data shall be retained so it cannot be altered and which indicates any attempts to alter it. If you are using public inspection listings for legal research, you Copart also questioned the benefit to be realized in relation to costs imposed by the change on state title systems. (1) The transferor shall certify that to the best of their knowledge the odometer reading reflects the actual mileage; or, (2) If the transferor knows that the odometer reading reflects mileage in excess of the designed mechanical odometer limit, they shall include a statement to that the mileage exceeds mechanical limits; or. Prior to this final rule, part 580 contained secure paper power of attorney provisions in §§ 508.13, 508.14, and 580.15 facilitating transactions in cases where the title was lost or physically held by the lienholder. 12. Virginia petitioned NHTSA in December 2006 seeking approval of electronic odometer disclosure for intrastate transfers of vehicles not subject to liens. 01/14/2021, 42 Since the FAST Act's temporary suspension of the requirement that states must petition NHTSA for Start Printed Page 52666approval of alternative electronic odometer disclosure schemes ends on the effective date of this final rule, states seeking to adopt such schemes after that date must either comply with the provisions of this final rule or petition the agency for approval of alternative procedures. It really is at their discretion. Other comments addressed the restriction that the power of attorney could be used only when a title is lost or physically held by a lienholder in the context of contemporary electronic title and lien schemes. Each bank or credit union can have their own document requirements, however for each transaction. In 2017, the percentage increase to 26 percent.. Among other things, DOJ observed the increasing numbers of “exempt” titles increased opportunities for odometer fraud while the advent of mileage records in Carfax and similar venues made such titles more valuable for those engaging in odometer fraud. Far less consensus existed in consideration of the wisdom of changing the exemption. Texas questioned the need for any security requirements given the strong interest any jurisdiction would have in maintaining the security and integrity of public records. Section § 580.5(d) of this final rule specifies the warnings and notices present on paper odometer disclosures also be presented to parties executing an electronic disclosure. Executing odometer disclosures requires notices, warnings, and instructions to be read, information to be supplied by the transferor, acknowledgement and acceptance of the disclosure by the transferee, and, in paper transactions, a copy of the signed disclosure statement must be given to the transferor by the transferee. Florida echoed this sentiment while opining that flexibility is needed as states first implement intrastate systems. One association and one state opposed this proposal as imposing a requirement on states that more properly lies with the parties. Because electronic systems would require completeness and allow more frequent and accurate mileage reporting, Florida argued NHTSA should not adopt more stringent requirements in the Final Rule. Commenters voiced opposing views on this proposal. For information on the availability of this material at NARA, email firstname.lastname@example.org or go to www.archives.gov/federal-register/cfr/ibr-locations.html; or. Texas also contended the requirements for auctioneers proposed by NHTSA were overbroad, particularly in requiring secure storage as auctions only need to log transactions and not store odometer disclosures. In contrast to our proposal, which was capable of being read as applying to all electronic transactions, the final rule requirement applies specifically to odometer disclosures. Texas stated the proposals put forward in the NPRM indicated an apparent misunderstanding of current title processes and urged the agency to work with stakeholders to draft clearer, more meaningful language. The definitions in this final rule differ significantly from those proposed in the NPRM and remedy some significant shortcomings in our earlier proposal. Highway Admin., available at https://www.fhwa.dot.gov/ohim/onh00/line3.htm (last visited Sept. 13, 2019). Comments also questioned the use of the term “electronic document” and “physical document” in the proposal given the definition proposed in § 580.3. These security features are intended to prevent modification of existing disclosures and deter the use of counterfeit documents. 40, 102 Stat. Two commenters addressed the petition process for approval of odometer disclosure schemes, expressing concern about the effect the NPRM would have on the continued existence of the petition process. HCUA also urged the agency to allow that a lienholder may serve as agent of both transferor and transferee and execute the statements on their behalf. Physical power of attorney means, for single copy forms, the paper document set forth by secure process which is issued by the jurisdiction, and, for multicopy forms, any and all copies set forth by a secure printing process or other secure process which are issued by the jurisdiction pursuant to § 580.13 or § 580.14. As did Texas, AAMVA observed the power of attorney regulations did not provide relief when an electronic title cannot be physically held, and there is no title available for the seller to sign. Register documents. (i) When a transferor's physical title is lost, a jurisdiction may facilitate the transfer of a physical title through an electronic process without issuing another physical title provided a physical or electronic power of attorney pursuant to § 580.13 is properly executed by the transferor. This final rule adopts these amendments as proposed in the final rule. E.O. Accordingly, § 580.5(g) of the final rule provides that an electronic reassignment shall be made before issuance of an electronic title where the transferee receives a paper title and no room exists on that title for the desired reassignment. In turn, § 580.13(f) requires the transferee, upon receipt of the transferor's title, to make on the title exactly the mileage disclosure as disclosed by the transferor on the power of attorney. We intend for this final rule to be technology neutral. Copart stated powers of attorney will continue to be necessary for intra-state transfers, particularly if the electronic system is not available during a catastrophic event. A variant of such a system might involve parties employing a pen pad to sign documents and enter information at a state or state-authorized facility after presenting identification. Other organizations, such as the Electronic Signature and Records Association (ESRA), the National Odometer and Title Fraud Enforcement Association (NOTFEA), and the National Salvage Vehicle Reporting Program (NSVRP) also filed comments. According to NSVRP, gaps in reported mileage occurring when reassignment documents or a power of attorney are used create opportunities for title skipping and false odometer disclosure statement. 962-63. Because NHTSA anticipated electronic title and odometer disclosure systems would rely on scanned documents at various times and under various conditions, including interstate transactions from paper jurisdictions to electronic jurisdictions, the NPRM proposed adding § 580.6(a)(7) specifying that any conversion of physical documents to electronic documents must preserve the security features of the physical document and be scanned at a resolution of not less than 600 dots per inch (dpi). Texas also recommended more generic language to require the jurisdiction to make it available. To address these problems, NAAA suggested NHTSA issue a second notice of proposed rulemaking incorporating comments from both industry stakeholders and states before proceeding to a final rule. The estimated annual costs of the final rule considers the total labor cost for filling the mileage in odometer disclosures when ownership is transferred for 11 to 19 years old used vehicles, the cost for computer storage for these disclosure records, and the processing time for filing these records. 10. Lessors of leased vehicles must retain the odometer statement they receive from their lessee for five years from the date they transfer ownership of the leased vehicle (§ 580.8(b)). More information and documentation can be found in our Executive Orders 12866 and 13563 and DOT Regulatory Policies and Procedures, H. National Technology Transfer and Advancement Act, PART 580—ODOMETER DISCLOSURE REQUIREMENTS, https://www.federalregister.gov/d/2019-20360, MODS: Government Publishing Office metadata, https://pages.nist.gov/800-63-3/sp800-63-3.html, www.archives.gov/federal-register/cfr/ibr-locations.html, https://www.fhwa.dot.gov/ohim/onh00/line3.htm, https://www.businessinsider.com/americas-cars-and-trucks-are-getting-older-2018-8, https://nhts.ornl.gov/assets/2017_nhts_summary_travel_trends.pdf, https://www.carfax.com/press/carfax-odometer-fraud-hits-nearly-200-000-cars-annually, https://dealers.edmunds.com/static/assets/articles/2017_Feb_Used_Market_Report.pdf, https://static.ed.edmunds-media.com/unversioned/img/industry-center/insights/2019-used-vehicle-outlook-report-final.pdf, https://www.niada.com/uploads/dynamic_areas/ei5l4ZznCkTc8GyrBKd6/34/UCIR_2018_Web.pdf, https://www.chicagofed.org/~/media/others/events/2017/automotive-outlook-symposium/chesbrough-06022017-pdf.pdf, https://www.naaa.com/pdfs/AuctionIndustrySurveySummary_2018.pdf, https://cfx-wp-images.s3.amazonaws.com/2017/11/odometer_fraud_infographic.jpg. ODOMETER MILEAGE STATEMENT AFFIDAVIT Best Pixel Repair INC, 1544 Prickly Ln, Waxhaw, NC 28173 (please hand write the information clearly!) They shall retain all odometer disclosure statements at their primary place of business in an order that is appropriate to business requirements and that permits systematic retrieval. The first is when the electronic title is held or controlled by a lienholder. If the transaction at issue is electronic, the information specified in this paragraph shall be displayed, prior to the execution of any electronic signatures. In a matter of seconds, receive an electronic document with a legally-binding e-signature. Indeed, one individual commenter suggested individuals could print their own titles. (g) Upon receipt of the transferor's physical or electronic title, the transferee shall complete the space for mileage disclosure on the title exactly as the mileage was disclosed by the transferor on the physical or electronic power of attorney. This final rule, except for the amendment modifying the exemption for vehicles of a certain age from the odometer disclosure requirements, establishes rules intended to accommodate electronic odometer disclosures in the event states or other jurisdictions seek to adopt such systems. In AAMVA's view, the NHTSA proposal would impose additional technology requirements on states. Other interested parties in the rulemaking process beyond the class affected by the regulation include members of the public, vehicle dealers, law enforcement agencies, consumer protection groups, etc. These can be useful In addition, the final rule also explains the requirement to identify both an individual and the entity that individual represents is, for auctions and dealers, limited to identifying the individual and the dealer or auction firm. In NADA's view, this proposal runs contrary to NHTSA's time-honored and well-deserved reputation for being a data driven agency. Finally, the use of a power of attorney, where the lessor had access to the title, was inconsistent with TIMA. Review of the systems proposed in these petitions and the terms of NHTSA's actions in response to them, illustrates the variations in schemes between jurisdictions and the concerns raised by electronic odometer disclosure. on NARA's archives.gov. The AIA contended allowing both paper and electronic disclosures complicated an already cumbersome process. In California's view, states should have the option of choosing whether to make copies available. documents in the last year, by the Land Management Bureau Once a physical title is created by a state with an electronic title and odometer disclosure statement system, the electronic record must indicate a physical title has been issued and the electronic title and disclosure statement have been superseded by the physical title as the official title. In 1990, Congress amended section 408(d)(2)(C) of the Cost Savings Act. The transferee is required to sign the power of attorney form part A and print his/her name. Find a suitable template on the Internet. Your best option would be to check your university website, financial services office or the Bursar office in your university. Moreover, NADA noted the proposal fails to provide for any transition period to account for currently exempt vehicles. The final rule similarly changes the heading for § 580.6 to “Additional Requirements for Electronic Odometer Disclosures” to add clarity and precision. (g) If the vehicle has not been titled the written disclosure shall be executed on a separate physical document or by electronic means and incorporated into the electronic title record. Auction Industry Survey For the Year Ended Dec. 31, 2018, available at https://www.naaa.com/pdfs/AuctionIndustrySurveySummary_2018.pdf (last visited Sept. 13, 2019). Prior to the issuance of this final rule, § 580.4 set forth the requirements for security features incorporated into paper documents employed to perform odometer disclosures. Physical when referring to a document means a manufacturer's certificate of origin, title, reassignment document, or power of attorney printed on paper by a secure printing process or other secure process that meets all the requirements of this part. However, either an electronic power of attorney or an original power of attorney may be used when a paper title is lost or held by a lienholder. After careful consideration of all available information, including public comments submitted in response to the NPRM, the agency decided to adopt amendments proposed by the NPRM for §§ 580.1, 580.10, 580.11 and 580.12 without substantive change. NHTSA is also adopting the language proposed in the NPRM for § 580.5(f), with some modifications. 761, Pub.  Lender associations and other entities also opposed the proposal to require Level 3 authentication. Allstate's comments stated record retention requirements are needed to support the detection and prosecution of odometer fraud but did not elaborate further. If the mileage disclosed on the physical or electronic power of attorney is lower than the mileage appearing on the physical or electronic title, the power of attorney is void and the transferee shall not complete the mileage disclosure on the title unless: (1) The transferor has included a statement that the mileage exceeds mechanical limits; or. Start automating your e-signature workflows right now. Given the low incidence of odometer tampering and substantial evidence that buyers in 1988 were not relying on mileage as the primary indicator of condition in vehicles 10 year old and older than 10 years, NHTSA adopted an exemption that applied to vehicles 10 years old and older.