Odometer Disclosure Requirements |
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Topics: ZF
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Jonathan Charles Morrison
National Highway Traffic Safety Administration
26 November 2019
[Federal Register Volume 84, Number 228 (Tuesday, November 26, 2019)]
[Rules and Regulations]
[Pages 65017-65019]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25657]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
49 CFR Part 580
[Docket No. NHTSA-2019-0127]
RIN 2127-AL39
Odometer Disclosure Requirements
AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation DOT.
ACTION: Final rule; response to petitions for reconsideration.
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SUMMARY: This document responds to petitions for reconsideration
regarding NHTSA's October 2, 2019, final rule amending NHTSA's odometer
disclosure requirements to allow States to adopt electronic odometer
disclosure systems and changing the time when vehicles become exempt
from federal odometer disclosure requirements from ten years to twenty
years. NHTSA received petitions for reconsideration from the America
Association of Motor Vehicle Administrators (AAMVA) and the State of
Delaware Department of Transportation requesting that the agency delay
the effective date of the changes to the exemption from odometer
disclosure requirements for one year. After consideration of the
petitions, NHTSA has decided to grant the petition. The change to the
exemption from the odometer disclosure requirements will take effect on
January 1, 2021 and will apply to model year 2011 and newer vehicles.
The amendments in the October 2, 2019, final rule allowing States to
adopt electronic odometer disclosure systems will still take effect as
scheduled on December 31, 2019.
DATES: Effective December 31, 2019.
Petitions for reconsideration of this final action must be received
not later than January 10, 2020.
ADDRESSES: Correspondence related to this rule including petitions for
reconsideration and comments should refer to the docket number in the
heading of this document and be submitted to: Administrator, National
Highway Traffic Safety Administration, U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building, Washington,
DC 20590.
FOR FURTHER INFORMATION CONTACT:
For policy and technical issues: Mr. David Sparks, Director, Office
of Odometer Fraud, National Highway Traffic Safety Administration, 1200
New Jersey Avenue SE, Washington, DC 20590. Telephone: (202) 366-5953.
Email: David.Sparks@dot.gov.
For legal issues: Mr. Thomas Healy, Office of the Chief Counsel,
National Highway Traffic Safety Administration, 1200 New Jersey Avenue
SE, Washington, DC 20590. Telephone: (202) 366-7161. Email
Thomas.Healy@dot.gov.
SUPPLEMENTARY INFORMATION: On October 2, 2019, NHTSA issued a final
rule amending 49 CFR part 580 to allow States to adopt electronic
odometer disclosure without prior approval from NHTSA. The final rule
also amended the exemption in Sec. 580.17 exempting vehicles greater
than ten model years old at the time of transfer from odometer
disclosure. Under the final rule, starting with the 2010 model year, a
vehicle does not become exempt until it is twenty model years old at
the time of transfer. The amendments to the exemption period in the
October 2, 2019 final rule were scheduled to go in to effect on
December 31, 2019 and would have applied to model year 2010 vehicles
(which would otherwise be exempt from odometer disclosure beginning
January 1, 2020).
On November 8, 2019, AAMVA submitted a petition for reconsideration
requesting that NHTSA delay the changes to the exemption period in
section 580.17 for one year. AAMVA stated that the 90-day lead time in
the final rule was insufficient for member State departments of motor
vehicles to implement the changes in information technology systems,
order forms and coordinate legislative changes necessary to implement
the change to the exemption period. AAMVA stated that, in addition to
States, motor vehicle dealers and motor vehicle auctions may need to
change their business processes in response to the change to the
exemption period. AAMVA further stated that State departments of motor
vehicles will require time to train staff on the new exemption period
and educate motor vehicle dealers and other effected entities. AAMVA
requested a delay of one year to give all parties effected by the
changes to the exemption period the time necessary to successfully
implement the change to the exemption period.
The State of Delaware Department of Transportation submitted a
petition for reconsideration on November 15, 2019 also requesting a one
year delay to the changes to the exemption period in Sec. 580.17.
Delaware stated that legislative changes were necessary to accomplish
the change to the exemption period and that its Legislature did not
begin its legislative session until January 2020.
After reviewing the arguments in the petition for reconsideration
submitted by AAMVA and Delaware, NHTSA has tentatively decided to delay
the effective date of the changes to the exemption period in Sec.
580.17 for one year, and apply the twenty-year exemption beginning with
the 2011 model year, to ensure that the change to the exemption period
is implemented with minimal disruption. The increase in the exemption
period to twenty years will now come into effect on January 1, 2021 and
will apply to model year 2011 and later vehicles. As is the case prior
to implementation of the rule, model year 2010 vehicles will become
exempt from odometer disclosure on January 1, 2020.
Response to Petitions for Reconsideration
Pursuant to the process established under 49 CFR 553.37, after
carefully considering all aspects of the petition, NHTSA has decided to
grant the petitions discussed above without further proceedings.
Rulemaking Analyses and Notices
Executive Order 12866, Executive Order 13563, and DOT Regulatory
Policies and Procedures
Executive Order 12866, Executive Order 13563, and the Department of
Transportation's regulatory policies require this agency to make
determinations as to whether a regulatory action is ``significant'' and
therefore subject to OMB review and the requirements of the
aforementioned Executive Orders. The Executive Order 12866 defines a
``significant regulatory action'' as one that is likely to result in a
rule that may:
(1) Have an annual effect on the economy of $100 million or more or
adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or Tribal governments or
communities;
(2) Create a serious inconsistency or otherwise interfere with an
action taken or planned by another agency;
(3) Materially alter the budgetary impact of entitlements, grants,
user fees, or loan programs or the rights and obligations of recipients
thereof; or
(4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
the Executive Order.
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We have considered the potential impact of this rulemaking under
Executive Order 12866, Executive Order 13563, and the Department of
Transportation's regulatory policies and procedures and have determined
that today's final rule is not significant for any of the
aforementioned reasons. We are delaying changes to the exemptions from
odometer disclosure to give State departments of motor vehicles the
time necessary to implement the change. We thus anticipate that the
economic impacts of this rulemaking will be limited.
Executive Order 13771
Executive Order 13771 titled ``Reducing Regulation and Controlling
Regulatory Costs,'' directs that, unless prohibited by law, whenever an
executive department or agency publicly proposes for notice and comment
or otherwise promulgates a new regulation, it shall identify at least
two existing regulations to be repealed. In addition, any new
incremental costs associated with new regulations shall, to the extent
permitted by law, be offset by the elimination of existing costs. Only
those rules deemed significant under section 3(f) of Executive Order
12866, ``Regulatory Planning and Review,'' are subject to these
requirements. As discussed above, this rule is not a significant rule
under Executive Order 12866 and, accordingly, is not subject to the
offset requirements of 13771.
NHTSA has determined that this is a deregulatory action under E.O.
13771, as it imposes no costs and, instead, amends 49 CFR 580.17 to
delay the compliance date by one year
Delaying the compliance date of the amendments to Sec. 580.17 for
one year will result in a cost savings of $740,000 for the 2020
calendar year. These cost savings will accrue because persons and
entities transferring ownership of a vehicle will not have to complete
an odometer disclosure for vehicles older than ten models in age.
Executive Order 13609: Promoting International Regulatory Cooperation
The policy statement in section 1 of Executive Order 13609
provides, in part:
The regulatory approaches taken by foreign governments may
differ from those taken by U.S. regulatory agencies to address
similar issues. In some cases, the differences between the
regulatory approaches of U.S. agencies and those of their foreign
counterparts might not be necessary and might impair the ability of
American businesses to export and compete internationally. 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. International regulatory cooperation can also reduce,
eliminate, or prevent unnecessary differences in regulatory
requirements.
NHTSA finds this rule will not implicate or encompass the issues
outlined in the foregoing policy statement.
Regulatory Flexibility Act
Pursuant to the Regulatory Flexibility Act (5 U.S.C. 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).
The Small Business Administration's regulations at 13 CFR part 121
define a small business, in part, as a business entity ``which operates
primarily within the United States.'' (13 CFR 121.105(a)). No
regulatory flexibility analysis is required if the head of an agency
certifies the proposal will not have a significant economic impact on a
substantial number of small entities. SBREFA amended the Regulatory
Flexibility Act to require Federal agencies to provide a statement of
the factual basis for certifying that a proposal will not have a
significant economic impact on a substantial number of small entities.
I hereby certify that this rule will not have a significant
economic impact on a substantial number of small entities. The delay to
the implementation of the change to the exemption period will require
minimal changes in data entry for small businesses thereby providing
these small businesses additional time to take any actions necessary to
comply with the new requirements and will not result in any significant
effect.
Executive Order 13132 (Federalism)
NHTSA has examined today's final rule pursuant to Executive Order
13132 (64 FR 43255, August 10, 1999) and concluded that no additional
consultation with States, local governments or their representatives is
mandated beyond the rulemaking process. The agency has concluded that
the rulemaking will not have sufficient federalism implications to
warrant consultation with State and local officials or the preparation
of a federalism summary impact statement. The rule will delay changes
to the terms of an exemption for owners from disclosing vehicle mileage
when transferring the vehicle giving State departments of motor
vehicles sufficient time to make changes to their business processes
necessary to implement the change to the exemption period.
Executive Order 12988 (Civil Justice Reform)
When promulgating a regulation, Executive Order 12988 specifically
requires that the agency must make every reasonable effort to ensure
that the regulation, as appropriate: (1) Specifies in clear language
the preemptive effect; (2) specifies in clear language the effect on
existing Federal law or regulation, including all provisions repealed,
circumscribed, displaced, impaired, or modified; (3) provides a clear
legal standard for affected conduct rather than a general standard,
while promoting simplification and burden reduction; (4) specifies in
clear language the retroactive effect; (5) specifies whether
administrative proceedings are to be required before parties may file
suit in court; (6) explicitly or implicitly defines key terms; and (7)
addresses other important issues affecting clarity and general
draftsmanship of regulations.
NHTSA notes that there is no requirement that individuals submit a
petition for reconsideration or pursue other administrative proceeding
before they may file suit in court.
Executive Order 13045 (Protection of Children From Environmental Health
and Safety Risks)
Executive Order 13045, ``Protection of Children from Environmental
Health and Safety Risks,'' (62 FR 19885; April 23, 1997) applies to any
proposed or final rule that: (1) Is determined to be ``economically
significant,'' as defined in Executive Order 12866, and (2) concerns an
environmental health or safety risk that NHTSA has reason to believe
may have a disproportionate effect on children. If a rule meets both
criteria, the agency must evaluate the environmental health or safety
effects of the rule on children, and explain why the rule is preferable
to other potentially effective and reasonably feasible alternatives
considered by the agency. This rule is not subject to Executive Order
13045 because it is not economically significant.
National Technology Transfer and Advancement Act
Under the National Technology Transfer and Advancement Act of 1995
(NTTAA) (Pub. L. 104-113), ``all Federal agencies and departments shall
use technical standards that are developed
[[Page 65019]]
or adopted by voluntary consensus standards bodies, using such
technical standards as a means to carry out policy objectives or
activities determined by the agencies and departments.'' Voluntary
consensus standards are technical standards (e.g., materials
specifications, test methods, sampling procedures, and business
practices) that are developed or adopted by voluntary consensus
standards bodies, such as the Society of Automotive Engineers (SAE).
The NTTAA directs us to provide Congress, through OMB, explanations
when we decide not to use available and applicable voluntary consensus
standards. For the specific provisions that we are adjusting in this
rule, there are no applicable consensus standards.
Unfunded Mandates Reform Act
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). We note that
as this rule only makes minor adjustments to 49 CFR part 580. Thus, it
will not result in expenditures by any of the aforementioned entities
of over $100 million annually.
Paperwork Reduction Act
Under 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. Today's rule
does not propose any new federal agency information collection
requirements.
Regulation Identifier Number (RIN)
The Department of Transportation assigns a regulation identifier
number (RIN) to each regulatory action listed in the Unified Agenda of
Federal Regulations. The Regulatory Information Service Center
publishes the Unified Agenda in April and October of each year. You may
use the RIN contained in the heading at the beginning of this document
to find this action in the Unified Agenda.
List of Subjects in 49 CFR Part 580
Consumer protection, Motor vehicles, Reporting and recordkeeping
requirements.
For the reasons discussed in the preamble, 49 CFR part 580, as
amended October 2, 2019, at 84 FR 52664, is further amended as follows:
PART 580--ODOMETER DISCLOSURE REQUIREMENTS
0
1. The authority citation continues to read as follows:
Authority: 49 U.S.C. 32705; Pub. L. 112-141; delegation of
authority at 49 CFR 1.95.
0
2. Section 580.17, as amended October 2, 2019, at 84 FR 52664, is
further amended by revising paragraphs (a)(3) and (4) to read as
follows:
Sec. 580.17 Exemptions.
* * * * *
(3)(i) A vehicle manufactured in or before the 2010 model year that
is transferred at least 10 years after January 1 of the calendar year
corresponding to its designated model year;
(ii) Example to paragraph (a)(3): For vehicle transfers occurring
during calendar year 2020, model year 2010 or older vehicles are
exempt.
(4)(i) A vehicle manufactured in or after the 2011 model year that
is transferred at least 20 years after January 1 of the calendar year
corresponding to its designated model year; or
(ii) Example to paragraph (a)(4): For vehicle transfers occurring
during calendar year 2031, model year 2011 or older vehicles are
exempt.
* * * * *
Issued in Washington, DC, under authority delegated in 49 CFR
1.95 and 501.5.
Jonathan Charles Morrison,
Chief Counsel.
[FR Doc. 2019-25657 Filed 11-25-19; 8:45 am]
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