This definition states “Access” is the authorized display and entry of information into an electronic title or power of attorney in a manner allowing modification of previously stored data. there are about 190,000 cases of odometer fraud (or rollbacks) with an annual loss of $761 million indicating an average of $4,000 loss per case. NHTSA did not propose eliminating the petition process in the NPRM, and this final rule does not make any changes to that process. NOTFEA also offered examples of similar cases involving exempt vehicles. The AIA contended allowing both paper and electronic disclosures complicated an already cumbersome process. NAAA stated an SNPRM might be required to explore the effect of any delays inherent in producing paper titles on exporting vehicles. NTSF stated the requirement to track when records are accessed seemed to be unduly burdensome given the nature of the records involved. (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. There is no separate form for DU CIC. I /WE STATE THAT THIS In other words, affected vehicles are MYs 2010-2019 for 2029, MYs 2011-2020 for 2030, and so on so forth. Section 580.6(a) of the final rule states electronic titles and power of attorney shall be retained in a format which cannot be altered unless such alterations are authorized and which indicates any unauthorized attempts to alter it (§ 580.6(a)(1)). 13563. In December 2009, Florida proposed a hybrid electronic disclosure system in December 2009 wherein the actual data entry into the state system would be made by authorized tag agents using data terminals. In California's view, prescribing a NIST Level 3 identity authentication, which, among other things, could entail verification of a government ID, such as a driver license, and a financial or utility account, is unnecessary. electronic version on GPO’s This new exemption will apply to vehicles manufactured in the 2010 model year and later and, unlike the remainder of the provisions of this final rule, will be applicable to all vehicle transfers and odometer disclosures regardless of whether the disclosures are made on paper or electronically. Florida, nonetheless, requested NHTSA not dictate that only states can print titles in the event future developments allow for other means of producing these secure documents. The agency also declines to require mileage disclosures to be transmitted electronically to lenders as such a requirement is inconsistent with the purposes of part 580. Moreover, in enacting section 24111 of the FAST Act authorizing states to create electronic odometer disclosure systems without NHTSA's approval until the effective date of this final rule, Congress also did not offer any indication it supported the creation of a national title system by expansion of NMVTIS or other means. Comments provided by the dealer and auctioneer communities supported the continued use of the power of attorney in electronic title and odometer disclosure jurisdictions as well as the availability of both electronic and Start Printed Page 52682secure paper versions of these documents. The NPRM proposed amending § 580.7(a) to allow lessors to provide notices to lessee electronically, proposed deletion of a printed name requirement for electronic odometer disclosures by lessees in § 580.7(b) and proposed adding a new § 580.7(e) stating an electronic system maintained by a lessor must meet the proposed security requirements in § 580.4(b). Similarly, the final rule amends § 580.8(c) to require dealers and distributors to retain paper or electronic copies of each power of attorney, executed pursuant to §§ 580.13 and 580.14, that they receive for five years and imposes the same storage requirements for electronic documents as found in § 580.8(a). Additionally, a physical power of attorney issued pursuant to §§ 580.13 and 580.14 and physical documents, which are used to reassign the title, shall be issued by the jurisdiction and shall be set forth by a secure printing process or other secure process. The NPRM proposed adding § 580.6(a)(1) requiring any electronic record be retained in a format that cannot be altered and, further, that indicates any attempts to alter it. The NPRM proposed amendments to § 580.7 allowing the required documents be in the form of “electronic documents.” Commenters generally supported the proposed amendments provided NHTSA did not extend the proposal to require states to play a role in facilitating lease vehicle disclosures. Most forms for The Nevada Department of Motor Vehicles are online in PDF format. The final rule's requirements for electronic titles and electronic powers of attorney also diverge from the NPRM in allowing authorized modifications to electronic records. Perhaps, but remember that the 1099 is what the IRS is going to receive. In such a case, the buyer and seller do not need to fill in the remainder of the disclosure form or sign it. The agency viewed this requirement as superfluous when identity authentication requirements should ensure the information would be available. Rather than have the transferor execute a power of attorney and then have the transferee obtain a physical title and then convert it to electronic form, the provision would allow use of a single power of attorney to complete the transaction and convert the title. Disclosure of odometer information for leased motor vehicles. 2004 Instructions For Form 1040 (ALL) P 72 I1040 - (1) (a) It is unlawful for any person knowingly to tamper with, adjust, alter, set back, disconnect, or fail to connect an odometer of a motor vehicle, or to cause any of the foregoing to occur to an odometer of a motor vehicle, so as to reflect a lower mileage than the motor vehicle has actually been driven, or to … As did California, Florida, and Texas, AAMVA stated the proposed requirements were unnecessary as states systems would provide the required security protocols and data. 13. Also for clarity and accuracy, § 580.2 is amended to better describe the status of a vehicle upon termination of a lease, and the term “purchasers” has been replaced with the more accurate and less restrictive term “transferees.” Consistent with the former amendment, the term “dealer” in § 508.13(g) has been changed to “transferee” to reflect that those receiving ownership are not just dealers. The agency observes that two commenters, Texas and California, indicated the five-year retention period was unnecessarily burdensome and suggested three and four years respectively. driver's license or passport). Id. Rather than attempt to specify security requirements, the NPRM explained the agency made a tentative determination that such an effort would be inappropriate given the comparatively slow pace of rulemaking in comparison to the rapidly evolving and changing landscape of cyber security. To provide background and context for the proposed rules, the NPRM examined the history and development of existing odometer statutes and regulations from their inception in the Cost Savings Act of 1972 (Pub. The proposed language would require electronic titles, powers of attorney, and reassignment documents to be maintained in a secure environment protecting the record for unauthorized modification. The final rule adopts these changes. See Public Law 99-579, 100 Stat. Texas suggested the term “purchasers” in § 580.2 be changed to “transferees” because not all transfers of ownership requiring an odometer disclosure are the result of a purchase and “purchaser” is not defined in part 580. Comments were also filed by insurance companies and insurance trade associations: Allstate Corporation (Allstate), the Property Casualty Insurers Association of America (PCIA), the American Insurance Association (AIA), Liberty Mutual (Liberty), and the National Association of Mutual Insurance Companies (NAMI). NADA opposed the proposed change as it would greatly increase disclosure and recordkeeping burdens for transferors, transferees, and states, with no demonstration by NHTSA that vehicles 11 to 25 years-old have become Start Printed Page 52683a “hot bed” for odometer fraud. According to Florida, if a jurisdiction maintains electronic title and odometer disclosure systems but the manufacturer has a paper MCO, the jurisdiction must have a way to capture signatures from this paper document into the electronic system. The written disclosure was to include the cumulative mileage registered on the odometer, or disclose the actual mileage is unknown, if the odometer reading is known to the transferor to be different from the number of miles the vehicle has traveled. The NPRM observed such systems must minimize or eliminate disclosures made on paper, provide adequate means for verifying identities, link or merge disclosures with the record title, and preclude duplicate electronic and paper titles. (f) A jurisdiction issuing an electronic title shall retain the capacity to issue physical titles meeting all the requirements of this part. Your best option would be to check your university website, financial services office or the Bursar office in your university. The OFR/GPO partnership is committed to presenting accurate and reliable ’ The answer is simple - use the signNow Chrome extension. NHTSA observes first that § 580.6 has been recast to focus on electronic odometer disclosures instead of transactions to correct the impression it applies to processes. Arizona stated specific security standards would be too inflexible. 319.35. They shall retain all powers of attorney at their primary place of business in an order that is appropriate to business requirements and that permits systematic retrieval. The proposed regulations address recordkeeping requirements, access to electronic documents, identification of participants, conversion of paper records to electronic records, the potential for simultaneous electronic and paper titles, and the character of any paper documents employed as part of an electronic title system. statement may result in fines and/or imprisonment. there were 41.4 million used cars sold in 2017. Texas proposed to eliminate paper titles (except as requested), create electronic titles and require in-state vehicle transfers to be made electronically. at 29472. The change in the exemption period made by this final rule will also impose some additional recordkeeping costs. Section 580.5(g) of part 580 addresses the situation in which a vehicle has not been titled or where the existing paper title does not have sufficient space for making an odometer disclosure. The first is when the electronic title is held or controlled by a lienholder. Proposed § 580.6(a)(1) is now redesignated as § 580.6(a) and, also for clarity, § 580.6(a)(2) through (8) are re-designated as § 580.6(b) through (h). The benefit of the final rule as stated earlier is measured by the consumer cost from odometer fraud that can be eliminated due to the final rule. DO NOT WRITE BELOW THIS LINE Model. For those States with existing electronic title and odometer disclosure systems, the agency believes that changes required to meet the new rule will not be burdensome. Similarly, the status of an electronic title made unavailable because of technical failures led others to advocate expansion of the power of attorney provision in such an instance. Where paper transactions required participants to provide a printed name, the NPRM proposed the printed name was not needed in electronic transactions and sought to delete that requirement. Finally, Texas requested § 580.16 be amended to specify that a copy of a power of attorney be made available upon request rather than returned and that NHTSA replace the term “purchaser” with “transferee” for consistency. Supplemental Notice of Proposed Rulemaking, E. Identity of Parties to a Motor Vehicle Transfer and Security of Signatures, F. Document or Record Security and System Security, H. Requirements for Electronic Transactions. (c) Dealers and distributors of motor vehicles who are granted a power of attorney, except as noted in paragraph (d) of this section, by their transferor pursuant to § 580.13, or by their transferee pursuant to § 580.14, shall retain for five years a photostat, carbon, or other facsimile copy, or electronic copy of each power of attorney they receive. This final rule also substantially relaxes the proposed requirements for scanning documents to allow document conversion in black and white at a resolution of 200 dot per inch (dpi) and recordkeeping requirements in §§ 580.8 and 580.9 provide more options for dealers and relax the rules for auctions. 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. better and aid in comparing the online edition to the print edition. While jurisdictions should be accorded a degree of flexibility in designing and executing electronic titling and odometer disclosure schemes, an electronic odometer disclosure system should minimize or eliminate odometer disclosures on documents other than the title. The proposal, found in § 580.6(a)(8), also required that scanning be made in color at a resolution of 600 dpi. One commenter, Virginia, objected to the requirement that unauthorized attempts to alter or modify records be tracked as the proper response in that event is to deny access and not create a record. Virginia asked if use of pen pad for electronic transactions done in person before a state employee or agent—essentially replicating the present paper process—met NIST Level 2 requirements. This forms package contains a Bill of Sale, Odometer Statement and Promissory Note. Thus, in 2020, there are about 15,700 rollbacks in vehicles 10-19 years old, representing a minimum annual impact. Draw your signature or initials, place it in the corresponding field and save the changes. If, however, that agent is representing an owner in a situation where the special power of attorney set forth in § 580.13 may be used, that agent must make the odometer disclosure on the secure special power of attorney specified in that section. In the case of a transferor in whose name the vehicle is titled, the transferor shall disclose the mileage on the electronic title or the physical title, and not on a reassignment document. Despite these protections, there were shortcomings in odometer provisions of the Cost Savings Act. Please do not strike through any information, use white-out, or check any incorrect boxes. Virginia noted the proposal did not separate legitimate corrections from unauthorized alterations but supported security measures, record retention requirements, and audit and review. Approximately 40 million used car sales occurred in the United States in 2018. Reference may also be made to applicable law of the jurisdiction. The statute subjected violators to civil and criminal penalties and provided for federal injunctive relief, state enforcement, and a private right of action. The first will be instances where the vehicle has never been titled and neither an electronic or a physical title is available for recording reassignments. Federal Register provide legal notice to the public and judicial notice Just register on the admission portal and during registration you will get an option for the entrance based course. ESRA stated NHTSA should take a technology and standard-neutral position and allow states to choose reasonable standards. When a certificate of title or a manufacturer’s statement of origin does not meet the federal requirements for a proper odometer disclosure, a separate odometer disclosure statement must be issued by the seller and attached to the certificate of ownership at the time of transfer of a motor vehicle. In posing the terms “Electronic Document” and “Physical Document” our proposal apparently created an impression that NHTSA's vision of permissible electronic odometer disclosure schemes was limited to instances where the electronic record was nothing more than a scanned or imaged conversion of a paper document. Then, make sure you understand the purpose of an odometer disclosure statement. The NPRM discussed the Moving Ahead for Progress in the 21st Century Act of 2012's (MAP-21, or Pub. A separate physical reassignment document may be used for a subsequent reassignment only after a transferor holding title has made the mileage disclosure in conformance with paragraphs (c), (e), and (f) of this section on the title and assigned the physical title to their transferee. However, Texas also noted jurisdictions cannot control the submission of physical documents and would have to prevent issuance of title until such time the documents were surrendered to comply with the proposals. 1. Part B of the secure power of attorney form allows a subsequent transferee to give a power of attorney to his transferor to review the title and any reassignment documents for mileage discrepancies, and if no discrepancies are found, to acknowledge disclosure on the title, while maintaining the integrity of the first seller's disclosure. These paper titles can be invalidated and the record superseded (as is current practice), but the new jurisdiction of record has no control over whether a transferor or transferee destroys the document. We invite you to try out our new beta eCFR site at This is most likely to arise when a consumer transfers a vehicle to a dealer either as a trade-in or in an outright sale. The agency has determined this final rule does not have sufficient federalism implications to warrant the preparation of a Federalism Assessment. The final rule also is not expected to increase the record processing burden to states and car dealerships. NIADA offered similar comments and supported continued availability of the power of attorney as well as electronic versions of the document. The definition further differentiates “Access” from the mere ability to view information without being able to modify it and distinguishes “Access” from the modification of a record resulting in creation of a new title. The Unfunded Mandates Reform Act of 1995 requires agencies to prepare a written assessment of the costs, benefits, and other effects of proposed or final rules that include a federal mandate likely to result in the expenditure by state, local, or tribal governments, in the aggregate, or by the private sector, of more than $100 million annually (adjusted for inflation with base year of 1995). This proposal amends existing requirements to allow States a new alternative means of complying with those requirements and changes the terms of an existing exemption from mileage disclosure. Get everything you need to configure and automate your company’s workflows. Certificate of Origin with forms and fees described below. Identity of Parties to a Motor Vehicle Transfer and Security of Signatures, 4. This final rule and NHTSA's prior responses to state petitions for approval of alternative disclosure schemes (discussed below) contain guidance on potential strengths and weaknesses of electronic odometer disclosure schemes. The NPRM explained NHTSA might consider specifying security standards for these systems and requested comment on doing so. ODOMETER DISCLOSURE STATEMENT. Create Document. The proposal also added a requirement in 580.8 that dealer electronic records must be retained in a format which cannot be altered and which indicates any attempts to alter it. The NPRM proposed adding a provision in § 580.6(a)(5) permitting jurisdictions to issue such a document if they chose to do so. For clarity and Start Printed Page 52690to eliminate conflicts with other provisions, the final rule paragraph states any document used to make odometer disclosures into an electronic system must be set forth by means of a secure printing process or other secure process. Odometer mileage disclosures would be made by requiring both parties to separately log into a secure website, make required disclosures and verification of the mileage, and accept or reject the transaction. This final rule adopts these amendments as proposed in the final rule. While the concept of “receipt” is arguably more ephemeral in an electronic transaction when no physical document is present, the agency believes that “receipt” in that context occurs when a system provides a display confirming the transferor's signature and all the required elements of the disclosure itself. Dealer and auctioneer concerns were voiced by comments from the National Automobile Dealers Association (NADA), the National Independent Automobile Dealers Association (NIADA), the National Auto Auction Association (NAAA), the Ohio Automobile Dealers Association (OADA), Copart Inc. (Copart), Dealertrack Inc. (Dealertrack), and Insurance Auto Auctions Inc. (IAA). AAMVA asked that the final rule ensure the petition process remains available while Texas requested § 580.12, which the NPRM proposed to remove and reserve, be used to provide the parameters for rescinding a grant of approval. the official SGML-based PDF version on, those relying on it for In AIA's view, the age of vehicles is simply not reason enough to change the existing exemption without a thoughtful discussion of the underlying need to do so. Id. (d) In addition to the information provided under paragraphs (b) and (c) of this section: (3) If the transferor knows that the odometer reading differs from the mileage and the difference is greater than that caused by a calibration error or does not reflect a valid mileage display, they shall include a statement that the odometer reading does not reflect the actual mileage and should not be relied upon. In this case, those directly affected by incorporated Start Printed Page 52699provisions are states and vehicle lessors choosing to adopt electronic systems for odometer disclosures. CUCTX requested § 580.13 be amended to permit the use of an electronic power of attorney, even when the title is still a physical document. documents in the last year, 988 Similarly, the agency believes NAAA's concerns would not be addressed by issuing an SNPRM. Compared to the existing paper signature process, AAMVA stated NIST Level 2 would be achievable and provide suitable assurance of identity. As noted above, this may either involve retaining a copy of the executed odometer disclosure on the back of a title or a copy of both the power of attorney form and the odometer disclosure on the back of the title made under the authority given by the power of attorney. Other sections of part 580 establish a petition process by which states may seek assistance in revising their odometer laws (§ 580.10), may seek approval of alternative odometer disclosure schemes (§ 580.11), and establish exemptions from the disclosure requirements of §§ 580.5 and 580.7 (§ 580.17). Email: Id. The purpose of this part is to provide transferees of motor vehicles with odometer information to assist them in determining a vehicle's condition and value by making the disclosure of a vehicle's mileage a condition of title and by requiring lessees to disclose to their lessors the vehicle's mileage at the time the lessee returns the vehicle to the lessor. A requirement that a printed name be affixed to the disclosure on a paper title in § 580.5(f) was not carried forward into the agency proposal for electronic transactions as sufficient means independent of a hand-written signature should be available to identify individuals executing electronic disclosures. As explained in the NPRM, the agency believed this requirement is needed both to facilitate identity authentication and to create a record of the individual executing an electronic signature. Instead, AAMVA noted, an electronic disclosure and title record would be data fields making up an electronic record. The final rule makes another revision for consistency by replacing the term “purchaser” with “transferee” in § 580.16(b). In connection with the transfer of ownership of a motor vehicle in which more than one person is a transferor, only one transferor need sign the disclosure. documents in the last year, 658 Due to its universal nature, signNow is compatible with any gadget and any operating system. AAMVA agreed to the extent that continued use of physical documents is necessary in an electronic system, any physical documents used must comply with regulatory requirements. States have an interest in meeting the needs of citizens and resident businesses and will likely develop methods for providing paper titles efficiently. 947, 961-63 (1972)) through the Truth in Mileage Act (TIMA) and subsequent amendments. NHTSA acknowledges the desirability of streamlining the process of transferring vehicles to recyclers as well as transfers for vehicles that have been declared to be a total loss. An odometer disclosure is one of many steps involved in transferring ownership of a vehicle. 12866, and (2) concerns an environmental, health or safety risk that NHTSA has reason to believe may have a disproportionate effect on children. Florida and Virginia simply stated they supported the agency proposal to incorporate the odometer disclosure into the electronic title. The agency thought any electronic titling system would have the capability to accept disclosures for multiple transactions and could be configured to accept an odometer disclosure immediately prior to creation of the first electronic title. Consistent with increases in vehicle age since 1988, the age of vehicles that have their mileage altered has also increased. Register documents. PCI argued against the proposed change stating the value of older vehicles is driven primarily by the appearance and condition of the vehicle, not its mileage. As NHTSA remained concerned document conversion presented opportunities for fraud, § 580.6(a)(8) of the NPRM proposed processes for converting titles and other secure documents to electronic copies maintain security features and that scanning be made in color at a resolution of 600 dpi. California argued states should not be required to provide the access described, and Virginia stated it had no objections. Oregon noted there is still an issue with state-to-state transactions and will continue to be until all states implement an electronic process and asked if the proposal eliminated the use of the power of attorney with electronic titles. Part 580's document retention requirements provide for the maintenance of records essential to establishing the paper trail used to detect and prove cases of odometer fraud. 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