Interpretation ID: aiam4267
Executive Vice President
Washington State Auto Dealers Association
P.O. Box 58170
Seattle
WA 98188;
Dear Ms. Cunningham: This is in response to your letter of November 5, 1986, concerning th new Federal odometer law and the Washington Attorney General's proposed legislation.; As you know, on October 28, 1986, President Reagan signed into law th Truth in Mileage Act of 1986, P.L. 99-579, which amends Title IV of the Motor Vehicle Information and Cost Savings Act, 15 U.S.C. S 1981 *et seq*. Beginning April 29, 1989, a motor vehicle may not be licensed in a State unless the transferee includes with the application for title the transferor's title. If the transferor's title contains the space for the transferor to disclose the mileage as required by Federal regulation, the mileage disclosure must be included on the title and it must be signed and dated by the transferor. If the transferor's title does not contain a space for the transferor to disclose the mileage, the transferor must issue a separate odometer disclosure statement. In addition, the law provides that, beginning April 29, 1989, all motor vehicle titles issued must meet the following requirements.; >>>1. Titles must be set forth by means of a secure printing process o other secure process.; 2. Titles must indicate required mileage disclosure information. 3. Titles must contain space for the transferee to disclose, in th event of future transfer, the mileage at the time of such future transfer and to sign and date such disclosure.<<<; A copy of the Act is enclosed for your reference. We are aware that the titling and disclosure provision of the new Ac will require changes in many state motor vehicle titling laws and title forms. For that reason, the Act authorizes the National Highway Traffic Safety Administration (NHTSA) to provide assistance to any State in revising its laws to meet the new Federal criteria. It is our desire to cooperate with the states to the maximum extent possible, to assure a smooth and timely transition to the new Act.; NHTSA intends to conduct a rulemaking proceeding to implement the ne Act and resolve technical issues. Because that process will take several months, we recommended to the States through the American Association of Motor Vehicle Administrators that they may wish to defer changes to their vehicle title forms and titling procedures until the rulemaking has been completed. In that way, they will be in a better position to assure full compliance with the new Act and implementing regulations.; We have been advised by the Washington Attorney General's Office however, that the State law which local prosecutors currently enforce is a relatively weak statute and that strong State odometer laws are needed as expeditiously as possible. Therefore, in an effort to assist the State in combatting odometer fraud, I offer the following comments to point out inconsistencies between portions of the proposed State legislation and the new Federal law.; Section 3 of the proposed legislation concerns the issuance of odomete disclosure statements by owners, lessees and lessors. While Section 3 does not apply to vehicles leased for a period of less than six months, Section 2(e) of the Truth in Mileage Act of 1986 defines a leased motor vehicles as 'any motor vehicle which is leased to a person for a term of at least 4 months by a lessor who has leased 5 or more motor vehicles in the past 12 months.' Furthermore, under Section 2(e) of the Truth in Mileage Act of 1986, lessors are required to provide lessees written notice regarding mileage disclosure requirements and penalties for failure to comply with them. The proposed legislation includes no analogous provision.; In addition to the above comments that pertain to the new Federal law I also offer the following comments regarding differences between the proposed State law and the Federal law and regulations now in effect.; Section 7 of the proposed legislation states as follows: >>>(1) The department shall adopt an odometer disclosure statement tha complies with the federal motor vehicle information and cost savings act of 1972, P.L. No. 12-513, as amended.<<<; However, the minimum requirements contained in Section 7 of th proposed legislation vary from the requirements of the regulation promulgated under the statute. Federal regulation, 49 C.F.R. S 580.4(a)(3), requires the disclosure of the transferor's current address. In addition, 49 C.F.R. S580.4(b) requires that the odometer disclosure statement refer to the Motor Vehicle Information and Cost Savings Act and shall state that incorrect information may result in civil liability and civil or criminal penalties. (Reference to State law is acceptable in lieu of a reference to Federal law.) Furthermore, 49 C.F.R. S580.4(e) states that 'The transferee shall acknowledge receipt of the disclosure statement by signing it.' Neither the transferor's current address nor a penalty notice and signature are required by the proposed legislation.; Section 7(k) of the proposed legislation requires the disclosure o both miles and kilometers when the odometer is 'altered to reflect miles instead of 'kilometers.' This Agency has not required any similar type of disclosure. We have determined that 15 U.S.C. S1987 could be relied upon to lawfully replace odometers which register kilometers travelled with those that register miles travelled. (To convert the odometer reading from kilometers to miles, multiple (sic) the kilometer reading by .62.) It is NHTSA's position that transferors who convert the odometers from kilometers to miles should check the first box of the first set of certifications which reads:; >>>I hereby certify that to the best of my knowledge the odomete reading as stated above reflects the actual mileage of the vehicle described below.<<<; Furthermore, these transferors should check the second box in th second set of certifications which reads:; >>>I hereby certify that the odometer was altered for repair o replacement purposes while in my possession, and that the mileage registered on the repaired or replacement odometer was identical to that before such service.<<<; With regard to Section 4 and the question you raised in your letter, understand that the Section has been amended so that the dealer's disclosure will be included on the assignment and title.; I hope these comments assist you in your efforts to ensure th coordination of Federal and State odometer laws so that no undue burden is placed upon your members.; Sincerely, Erika Z. Jones, Chief Counsel