Document ID: NHTSA-2019-0127-0001
Agency: nhtsa
Document Type: Rule
Title: Odometer Disclosure Requirements
Posted Date: 2019-11-26T05:00Z

[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]

=======================================================================
-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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.

[[Page 65018]]

    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]
BILLING CODE 4910-59-P