documents in the last year, 69 Virginia's comments voiced the same concerns and observations raised by California and Florida while also noting the NPRM does not address how states deny accepting documents from other states. Use the PDF linked in the document sidebar for the official electronic format. 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. As noted above, NADA and NAAA, suggested NHTSA issue an SNPRM prior to issuing a final rule while NAMIC and Texas stated NHTSA might consider delaying this final rule. The whole procedure can take less than a minute. Voluntary consensus standards are technical standards (e.g., materials specifications, test methods, sampling procedures, and business practices) developed or adopted by voluntary consensus standards bodies, such as the SAE International. The rule is expected to break even if the rule can eliminate 3.6 percent of the annual fraud loss (or rollbacks). Certificate of Origin with forms and fees described below. Arguably, therefore, precedence has been set for permitting vehicle owners to obtain paper copies of e-titling documents, including odometer disclosures, in any state e-titling system. The proposed amendments sought to allow odometer disclosures in an electronic medium while maintaining accurate odometer disclosures and aiding law enforcement in prosecuting odometer fraud. The breakeven point is defined as the projected effectiveness of the final rule where the benefit is equal to the cost. NHTSA implemented changes to part 580 authorizing use of this power of attorney by an interim final rule published in the Federal Register on March 8, 1989. This final rule also amends former § 580.13(a) through (e), now redesignated as § 580.13(b) through (f) to make these sections consistent with changes implemented elsewhere. 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. Where NHTSA proposed in § 580.5(c) that an odometer disclosure be made an “electronic form incorporated into the electronic title,” the final rule now provides disclosures be made on an electronic title to clarify that electronic title systems are not, as many commenters noted, limited to systems where “forms” are scanned into an electronic format. This statement, in addition to the lessee acknowledging receiving notification of federal law and any applicable law of the jurisdiction as required by paragraph (a) of this section, shall also contain the following information: (1) The printed name of the person making the disclosure; (2) The current odometer reading (not to include tenths of miles); (4) The lessee's printed name and current address; (5) The lessor's printed name and current address; (6) The identity of the vehicle, including its make, model, year, and body type, and its vehicle identification number; (7) The date that the lessor notified the lessee of disclosure requirements; (8) The date that the completed disclosure statement was received by the lessor; and. ESRA stated NHTSA should take a technology and standard-neutral position and allow states to choose reasonable standards. The agency concurs in these assessments and believes this less restrictive approach is consistent with the brevity exhibited by Congress in directing the promulgation of this final rule. Amend § 580.5 by revising paragraphs (a) through (g) to read as follows: (a) At the time a physical or electronic title is issued or made available to the transferee, it must contain the mileage disclosed by the transferor when ownership of the vehicle was transferred and contain a space for the information required to be disclosed under paragraphs (c) through (f) of this section at the time of future transfer. Two commenters, PCI and ESRA, supported these proposals without substantive comment. Because § 580.5(f) also requires transferees to provide transferors with a copy of the executed disclosure statement, the agency also proposed electronic disclosure systems provide a means for parties involved with the transaction to access copies of the disclosure. AAMVA also stated that because states are currently required to perform a title check prior to title transactions to determine if they have the most current title issued, states already have a process in place to validate that they are not dealing with an out-of-date or superseding title. 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. 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. The final rule now provides that option. The Department of Transportation assigns a regulation identifier number (RIN) to each regulatory action listed in the Unified Agenda of Federal Regulations. edition of the Federal Register. NADA concurred with the proposal, recognizing that some dealership customers may wish to be provided with paper printouts. Executive Order 13211 applies to any rule that: (1) Is determined to be economically significant as defined under E.O. The proposed amendment eliminated the requirement for a printed name in electronic transactions and stated electronic disclosure systems must provide a copy to the parties. Other amendments proposed in the NPRM sought to correct a typographical error, update NHTSA's address, strike obsolete text in § 580.12 and extend the disclosure exemption in § 580.17 from 10 years to 25 years. L. 112-141; delegation of authority at 49 CFR 1.95. Comments directed toward this portion of the NPRM supported it, but two commenters, Arizona and Texas, respectively noted the proposed language conflicted or may conflict with other portions of the proposed rule. This, AAMVA noted, would leave no title available to carry the odometer disclosure. Start automating your e-signature workflows right now. Florida echoed this sentiment while opining that flexibility is needed as states first implement intrastate systems. on Get everything you need to configure and automate your company’s workflows. NHTSA has approved, in whole or in part, five of these six petitions and not taken final action on the Arizona petition, which was made moot by the passage of section 24111 of the FAST Act and Arizona's adoption of a disclosure system under that provision. Commenters submitting responses to this portion of the NPRM rejected any suggestion that states or other jurisdictions be required to make any accommodation for leased vehicle disclosures. That goes for agreements and contracts, tax forms and almost any other document that requires a signature. AIA urged NHTSA to require electronic titling and odometer disclosure and warned the co-existence of electronic and paper title and disclosure systems will inevitably lead to fraud, title washing, errors, the inability to find the owner for recalls, and a lack of consumer understanding of the process. 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. by the Federal Reserve System  While some commenters urged NHTSA to leave as much as possible to the discretion of individual states, others felt the agency should compel creation of a national electronic title and odometer disclosure system by a specified date and impose penalties for non-compliance. As presented in the NPRM, the amendment stated, “the information specified in this paragraph shall be displayed, and acknowledged as understood by the party, prior to the execution of any electronic signatures.” Texas supported including the proposed statements and warnings but contended the electronic signature should be sufficient acknowledgement that statements were read and understood. (2) For an electronic odometer disclosure incorporated in an electronic title or power of attorney, an electronic sound, symbol, or process: (i) Using a secure authentication system identifying a specific individual with a degree of certainty equivalent to or greater than Level 2 as described in NIST Special Publication 800-63-3, Revision 3, Digital Identity Guidelines (including sub-parts 800-63-3A, 800-63-3B and 800-63-3C), June 2017. As NHTSA explained in the NPRM, NHTSA is not aware of any reason why electronic disclosures could not be made for leased vehicles, and the NPRM proposed revisions which would allow lease disclosures to be made on paper documents or electronically. The transferor must also, under § 580.5(e), certify whether the odometer reading reflects the vehicle's actual mileage, disclose whether the odometer reading reflects mileage in excess of the odometer's mechanical limit or, if the odometer does not reflect the actual mileage, must state the odometer reading should not be relied on. You may use the RIN contained in the heading at the beginning of this document to find this action in the Unified Agenda. Odometer Disclosure Statement . While states and some associations supported it, dealers and vehicle auction organizations were strongly against it. 01/14/2021, 392 For in-person registration the applicant must be in possession of a primary government photo ID (such as a driver's license or passport). Some commenters suggested states have the option of employing either a paper or an electronic system for these transactions, even where the jurisdiction provided an electronic title and odometer disclosure system. (b) Any physical documents which are used to reassign a title shall contain a space for the information required to be disclosed under paragraphs (c) through (f) of this section at the time of transfer of ownership. Double check all the fillable fields to ensure total accuracy. The number of odometer disclosures for the affected vehicles would depend on the retained sources. Executive Order 13045 applies to any rule that: (1) Is determined to be economically significant as defined under E.O. (3) If the transferor knows that the odometer reading does not reflect a valid mileage display or differs from the mileage and that the difference is greater than that caused by odometer calibration error, they shall include a statement that the odometer reading does not reflect the actual mileage, and should not be relied upon. Start filling out the blanks according to the instructions: in this video we will be discussing how to begin the transfer of an Ohio certificate title as son by the seller in Lorain County this presentation will provide you with the knowledge to properly complete all of the paperwork that is required any resources mentions will be linked in the description the certificate of title is commonly known simply as the title of your vehicle this important document is what signifies ownership of a motor vehicle or watercraft vessel to legally own a vehicle or boat in Ohio you must have custody of a title that is entirely legible completely free of alterations and erasers you should stir this document in a safe place like in a records box at home do not keep this in your vehicle should your vehicle ever be stolen thieves would have all the information needed to sell your vehicle any watercraft that is 14 feet in length or longer has an outboard motor or any craft of 10 horsepower Gator mice has a 12-digit hole identification number in order to be titled. Security of physical documents, electronic titles and electronic powers of attorney. The jurisdiction shall retain the physical or electronic power of attorney form and physical or electronic title for a minimum of three years or a period equal to the state titling record retention period, whichever is shorter. The organization contended the proposed rules wrongly indicated title and disclosure documents must exist as embedded replicas of the corresponding paper documents when the actual electronic record would be an actual secure electronic database record of the transaction, including the metadata supporting the authentication of the individual executing the signature, as well as a full audit trail of transactional data. Problems were compounded by title washing through jurisdictions with ineffective controls. 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. Open the email you received with the documents that need signing. (54 FR 35879). If the regulatory action meets both criteria, NHTSA must evaluate the environmental health or safety effects of the proposed rule on children, and explain why the proposed regulation is preferable to other potentially effective and reasonably feasible alternatives considered by us. Odometer Fraud 2013, Carfax, available at https://cfx-wp-images.s3.amazonaws.com/2017/11/odometer_fraud_infographic.jpg (last visited Sept. 13, 2019). the person shall adjust the odometer to read zero; and (2) the owner of the vehicle or agent of the owner shall attach a written notice to the left door frame of the vehicle specifying the mileage before the service, repair , or replacement and the date of the service, repair , or replacement. In 2017, about 47 percent of the household cars and 50 percent of the household LTVs were 10 years and older—a significant increase from the respective 30 percent and 32 percent in 1990. In instances where the vehicle's paper title is not available because it is lost or held by lienholders, a transferor will have to employ the power of attorney form dictated by part 580 and the transferee will have to either complete the odometer disclosure on the title when it is obtained or execute Part B of the power of attorney in a subsequent transaction. AAMVA supported the extension of the exemption beyond 10 years, noting 25 years is consistent an antique vehicle classification in many jurisdictions. As electronic reassignments are addressed in the definition of Electronic Title the final rule also removes the reference to an electronic reassignment document in § 580.4(b). 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. Arizona stated requirements in §§ 580.5(c) and 580.6(a)(7) regarding the use of physical documents for a transfer being conducted electronically appear to conflict and suggested the provisions in § 580.6(a)(7) take precedence with § 580.5(c) being reworded to eliminate the conflict. 2. AAMVA also supported the proposal, and ESRA stated the requirement represented a best practice. 32705(b) and (c).). Dealertrack asked the agency to recognize paper and electronic titles and odometer disclosures will both be used for many years and the availability of the power of attorney is essential for commerce. If you can’t find an answer to your question, please don’t hesitate to reach out to us. We’ve made big changes to make the eCFR easier to use. The Agency noted an additional purpose of creating a system of records and a paper trail to facilitate detection and prosecution of odometer fraud. The comments also diverged on the extent to which NHTSA should exercise its regulatory authority. (b) The physical or electronic power of attorney shall contain, in part A, a space for the information required to be disclosed under paragraphs (c) through (f) of this section. 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. An E.O. This approach will allow states to adopt and develop means for addressing different transactions in what will certainly be an evolutionary process. 2004 Instructions For Form 1040 (ALL) P 72 I1040 - UserManual.wiki. References to the power of attorney are also modified by use of the terms “original” and “electronic,” and the term “title” is similarly modified by the terms “electronic” or “physical.” Because of concerns raised by the potential for illegible signatures or address information in instances where a “pen pad” or similar device for recording hand written information electronically may be used, these Start Printed Page 52692sections have also been changed to require a printed name and a printed address. 601 et seq., as amended by the Small Business Regulatory Enforcement Fairness Act (SBREFA) of 1996), whenever an agency is required to publish a notice of proposed rulemaking or final rule, it must prepare and make available for public comment a regulatory flexibility analysis that describes the effect of the rule on small entities (i.e., small businesses, small organizations, and small governmental jurisdictions). Under the procedures established by the Paperwork Reduction Act of 1995 (PRA), a person is not required to respond to a collection of information by a federal agency unless the collection displays a valid OMB control number. These statements: Certify the exact odometer reading at the time of sale. 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.  This statement shall also include a warning notice to alert the transferee that a discrepancy exists between the odometer reading and the actual mileage. Texas, California, and Florida offered comments stating the scope of the NPRM proposals should not be expanded. As NHTSA observed in the NPRM, a physical signature is a unique mark linked to the person who made it. If a power of attorney authorized by §§ 580.13 and/or 580.14 has been used, dealers must retain copies of the document for five years (§ 580.8(c)). NAMIC's loftier goal, to delay issuance until a national titling system could be developed, would require significant and unacceptable delay in issuing this final rule. The agency estimated that it will take 15 seconds to fill the actual mileage per disclosure and the average hourly labor cost in 2018 is $36.39. NIST Special Publication 800-63-3, Revision 3, Digital Identity Guidelines (including sub-parts 800-63-3A, 800-63-3B and 800-63-3C), June 2017 is incorporated by reference into this section with the approval of the Director of the Federal Register under 5 U.S.C. Others advocated expanding the power of attorney provisions to facilitate vehicle financing. At the same time, differences between an electronic and a paper-based transaction led the agency to propose differing requirements for the two regimes. When the dealer sold the vehicle to another buyer, the dealer would take the various physical documents (bill of sale, reassignment document, and power of attorney) to the tag agency, where the tag agent would enter the required data and either create an electronic title in Florida's system or have a paper title provided for the buyer. The NPRM also sought comment on the feasibility of an electronic power or attorney as well as the implications of variations among states in implementing the power of attorney. The term does not include display of an electronic record for viewing purposes where modification of stored data is not possible, or where modification to the record is possible but results in a new, unique electronic title. Select the document you want to sign and click. Commenters identified many issues created by the proposed definitions. 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. The final rule therefore contains new definitions for “Access,” “Electronic Power of Attorney,” “Electronic Title,” “Jurisdiction,” and “Printed Name,” and revises “Original Power of Attorney,” “Sign or Signature,” and “Transferor.” These more precise definitions are applied throughout part 580 to facilitate transactions with physical and electronic titles and powers of attorney. Although the NPRM did not provide for an electronic power of attorney or propose to define one on the basis that such a document should not be necessary where electronic titles exist, NHTSA has reconsidered this position in response to the observations of some commenters that this tool will be needed as the transition from paper titles to electronic titles moves forward. While preserving the foregoing provisions for physical documents in paper title states, our NPRM proposed amendments stating electronic title and odometer disclosure systems shall provide a means for making the disclosure electronically and incorporating it into the electronic title when the title is created. NHTSA's approval of alternative odometer disclosure schemes presented by the Florida and New York petitions, was conditioned on the use of secure documents for portions of the odometer disclosure process. NADA opposed the proposal as unduly burdensome on states and their agents. The statute subjected violators to civil and criminal penalties and provided for federal injunctive relief, state enforcement, and a private right of action. 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. States may implement electronic title and odometer disclosure schemes by employing physical documents at some stage of the process. In meeting shared challenges involving health, safety, labor, security, environmental, and other issues, international regulatory cooperation can identify approaches that are at least as protective as those that are or would be adopted in the absence of such cooperation.