Interpretation ID: aiam4268
Esq.
Executive Assistant and Legislative Counsel to the Attorney General
Temple of Justice
Olympia
WA 98504-0521;
Dear Ms. Daniel: Thank you for the opportunity to assist the Washington Attorney Genera in his attempt to enact legislation intended to combat odometer fraud. I am in receipt of the second draft of the proposed legislation, a section-by-section analysis of the bill and your letter outlining the need for passage of state odometer 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.; After reviewing the materials you submitted, I can understand the nee to enact odometer legislation in Washington as expeditiously as possible. The enforcement of strong State odometer laws serves as a deterrent to odometer fraud. At this time, due to our rulemaking action, I cannot make a determination that the proposed legislation meets the requirements of the new law. However, I am offering 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 vehicle 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.; While you assert that Section 7 of the proposed legislation 'provide for content of odometer disclosure statement, mirroring federal requirements,' there are some major variances. 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.<<<; I would also like to clarify a point you made in your letter to Donn Stringer, Deputy Director, Department of Licensing. On page 2 of that letter, you state that the failure to 'make' an odometer disclosure or to 'submit' a false one would be a Class C felony and that there 'is no analogous provision in the Federal law.' This is incorrect. Section 408 of the Motor Vehicle Information and Cost Savings Act, 15 U.S.C. S 1988(b) states:; >>>No transferor shall violate any rule prescribed under this sectio or give a false statement to a transferee in making any disclosure required by such rule.<<<; The phrase 'any rule prescribed under this section' refers to th Federal regulation, 49 C.F.R. Part 580, which requires the issuance of an odometer disclosure statement containing specific information. Therefore, the transferor's knowing and willful failure to issue an odometer disclosure statement required by the regulation is a felony under 15 U.S.C. S 1990c, as amended by Section 3(b) of the Truth in Mileage Act of 1986.; I hope these comments assist you in your efforts to enact legislatio to combat odometer fraud.; Sincerely, Erika Z. Jones, Chief Counsel