49 U.S.C. § 32705 — Disclosure requirements on transfer of motor vehicles

(a) Disclosure requirements. (1) Under rules the Secretary of Transportation writes — covering how information is disclosed and kept — anyone transferring ownership of a motor vehicle must give the new owner a written disclosure that includes (A) the cumulative mileage shown on the odometer, and (B) a statement that the actual mileage is unknown, if the seller knows the odometer reading doesn't match the miles the car actually traveled. (2) A seller may not break a regulation issued under this section, or give the buyer a false statement in making this disclosure. (3) Someone buying a vehicle to resell it may not accept a written disclosure under this section unless it is complete. (4)(A) This subsection applies to every transfer of a motor vehicle, unless the Secretary exempts it by regulation — except that it doesn't apply when a manufacturer transfers a new vehicle jointly to a dealer and a short-term rental or leasing company (30 days or less). (B) A "new motor vehicle" for this purpose is one driven no more than the minimum needed to move, transport, or road-test it before it reaches the dealer from the manufacturer — and its odometer can never read more than 300 miles at that point. (5) The Secretary may exempt whatever classes of vehicles the Secretary thinks appropriate from these requirements. Until the Secretary updates the existing regulation at 49 CFR 580.6, that regulation stays in full force. (b) Mileage statement requirement for licensing. (1) A transferred vehicle can't be licensed in a state unless the new owner's title application includes the seller's title and — if that title has the space described in paragraph (3)(A)(iii) — a signed, dated statement from the seller giving the mileage disclosure required by subsection (a). This rule doesn't apply if the vehicle was never licensed before the transfer. (2)(A) Under Secretary's rules, if a lender is holding the seller's title when the seller transfers the vehicle, the seller may use a written power of attorney (if state law allows it) to make the mileage disclosure. Those regulations must (i) set the form of the power of attorney; (ii) require it be printed using a secure printing process; (iii) require the state to issue the form to the buyer; (iv) require whoever uses the power of attorney to keep a copy and send the original to the state along with a copy of the title showing the restated mileage; (v) may require the state to keep the power of attorney and title copy for a set time, or adopt other measures consistent with section 32701(b), after weighing the cost to the state; (vi) must make sure the mileage at transfer is written on the power-of-attorney document; (vii) must make sure the person using the power of attorney restates the mileage exactly in the title's designated space; (viii) may not require the vehicle to be titled in the state that issued the power of attorney; (ix) must consider the need to keep normal vehicle sales running smoothly; and (x) may add any other conditions the Secretary thinks fit. (B) The confidentiality and enforcement rules in section 32709(a) and (b) apply to anyone granting or receiving a power of attorney under this paragraph. (3)(A) A transferred vehicle can't be licensed in a state unless the title the state issues to the new owner (i) is produced using a secure printing process, (ii) shows the mileage disclosure required by subsection (a), and (iii) has a space for the new owner to disclose mileage, and sign and date it, the next time the vehicle is transferred. (B) This doesn't require — or prevent — a state from checking the mileage information on the title. (c) Leased motor vehicles. (1) For a leased vehicle, the Secretary's regulations must require the lessee (the driver) to give the lessor (the leasing company) a written mileage disclosure when the lessor sells the vehicle. (2) Under those rules, the lessor must tell the lessee, in writing, (A) about this mileage-disclosure duty, and (B) about the penalties for not complying. (3) The lessor must keep the lessee's disclosures for at least 4 years after selling the leased vehicle. (4) If the lessor sells the vehicle without ever taking possession of it, the lessor may write the mileage the lessee disclosed onto the title — unless the lessor has reason to believe that disclosed mileage isn't accurate. (d) State alternate vehicle mileage disclosure requirements. The mileage-disclosure rules in subsections (b) and (c)(1) apply in every state, unless that state has its own alternate mileage-disclosure rules that the Secretary has approved. The Secretary must approve a state's alternate rules unless the Secretary decides they don't serve the same purpose as the federal disclosure rule in (b) or (c). (e) Auction sales. When a vehicle sells at auction, the auction company must keep, for at least 4 years after the sale, (1) the name of the most recent owner (other than the auction company itself) and the name of the buyer, (2) the vehicle identification number, and (3) the odometer reading on the day the auction company took possession of the vehicle. (f) Application and revision of State law. (1) Except as paragraph (2) allows, subsections (b) through (e) apply to vehicle transfers happening after April 28, 1989. (2) If a state asks, the Secretary must help it update its laws to comply with subsection (b). If a state needs more time than April 28, 1989 to comply, the Secretary — at the state's request — may grant additional reasonable time by publishing a notice in the Federal Register explaining why. While granting that extra time, the Secretary must make sure the state is making a real effort to comply. (g) Electronic disclosures. (1) Within 18 months after the Motor Vehicle and Highway Safety Improvement Act of 2012 became law, the Secretary must write regulations letting the written disclosures and notices under this section be given electronically. (2) Even before those regulations exist, a state may — without needing the Secretary's approval under subsection (d) — allow electronic disclosures if (A) they comply with the federal E-SIGN Act rules in 15 U.S.C. chapter 96 subchapter 1, or with a state law meeting 15 U.S.C. § 7002(a), and (B) the disclosures otherwise meet this section's requirements, including proper authentication and security. (3) This early option in paragraph (2) stops applying once the Secretary's regulations under paragraph (1) take effect.