
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 49USC32705]

 
                        TITLE 49--TRANSPORTATION
 
             SUBTITLE VI--MOTOR VEHICLE AND DRIVER PROGRAMS
 
            PART C--INFORMATION, STANDARDS, AND REQUIREMENTS
 
                         CHAPTER 327--ODOMETERS
 
Sec. 32705. Disclosure requirements on transfer of motor 
        vehicles
        
    (a)(1) Disclosure Requirements.--Under regulations prescribed by the 
Secretary of Transportation that include the way in which information is 
disclosed and retained under this section, a person transferring 
ownership of a motor vehicle shall give the transferee the following 
written disclosure:
        (A) Disclosure of the cumulative mileage registered on the 
    odometer.
        (B) Disclosure that the actual mileage is unknown, if the 
    transferor knows that the odometer reading is different from the 
    number of miles the vehicle has actually traveled.

    (2) A person transferring ownership of a motor vehicle may not 
violate a regulation prescribed under this section or give a false 
statement to the transferee in making the disclosure required by such a 
regulation.
    (3) A person acquiring a motor vehicle for resale may not accept a 
written disclosure under this section unless it is complete.
    (4)(A) This subsection shall apply to all transfers of motor 
vehicles (unless otherwise exempted by the Secretary by regulation), 
except in the case of transfers of new motor vehicles from a vehicle 
manufacturer jointly to a dealer and a person engaged in the business of 
renting or leasing vehicles for a period of 30 days or less.
    (B) For purposes of subparagraph (A), the term ``new motor vehicle'' 
means any motor vehicle driven with no more than the limited use 
necessary in moving, transporting, or road testing such vehicle prior to 
delivery from the vehicle manufacturer to a dealer, but in no event 
shall the odometer reading of such vehicle exceed 300 miles.
    (5) The Secretary may exempt such classes or categories of vehicles 
as the Secretary deems appropriate from these requirements. Until such 
time as the Secretary amends or modifies the regulations set forth in 49 
CFR 580.6, such regulations shall have full force and effect.
    (b) Mileage Statement Requirement for Licensing.--(1) A motor 
vehicle the ownership of which is transferred may not be licensed for 
use in a State unless the transferee, in submitting an application to a 
State for the title on which the license will be issued, includes with 
the application the transferor's title and, if that title contains the 
space referred to in paragraph (3)(A)(iii) of this subsection, a 
statement, signed and dated by the transferor, of the mileage disclosure 
required under subsection (a) of this section. This paragraph does not 
apply to a transfer of ownership of a motor vehicle that has not been 
licensed before the transfer.
    (2)(A) Under regulations prescribed by the Secretary, if the title 
to a motor vehicle issued to a transferor by a State is in the 
possession of a lienholder when the transferor transfers ownership of 
the vehicle, the transferor may use a written power of attorney (if 
allowed by State law) in making the mileage disclosure required under 
subsection (a) of this section. Regulations prescribed under this 
paragraph--
        (i) shall prescribe the form of the power of attorney;
        (ii) shall provide that the form be printed by means of a secure 
    printing process (or other secure process);
        (iii) shall provide that the State issue the form to the 
    transferee;
        (iv) shall provide that the person exercising the power of 
    attorney retain a copy and submit the original to the State with a 
    copy of the title showing the restatement of the mileage;
        (v) may require that the State retain the power of attorney and 
    the copy of the title for an appropriate period or that the State 
    adopt alternative measures consistent with section 32701(b) of this 
    title, after considering the costs to the State;
        (vi) shall ensure that the mileage at the time of transfer be 
    disclosed on the power of attorney document;
        (vii) shall ensure that the mileage be restated exactly by the 
    person exercising the power of attorney in the space referred to in 
    paragraph (3)(A)(iii) of this subsection;
        (viii) may not require that a motor vehicle be titled in the 
    State in which the power of attorney was issued;
        (ix) shall consider the need to facilitate normal commercial 
    transactions in the sale or exchange of motor vehicles; and
        (x) shall provide other conditions the Secretary considers 
    appropriate.

    (B) Section 32709(a) and (b) applies to a person granting or granted 
a power of attorney under this paragraph.
    (3)(A) A motor vehicle the ownership of which is transferred may not 
be licensed for use in a State unless the title issued by the State to 
the transferee--
        (i) is produced by means of a secure printing process (or other 
    secure process);
        (ii) indicates the mileage disclosure required to be made under 
    subsection (a) of this section; and
        (iii) contains a space for the transferee to disclose the 
    mileage at the time of a future transfer and to sign and date the 
    disclosure.

    (B) Subparagraph (A) of this paragraph does not require a State to 
verify, or preclude a State from verifying, the mileage information 
contained in the title.
    (c) Leased Motor Vehicles.--(1) For a leased motor vehicle, the 
regulations prescribed under subsection (a) of this section shall 
require written disclosure about mileage to be made by the lessee to the 
lessor when the lessor transfers ownership of that vehicle.
    (2) Under those regulations, the lessor shall provide written notice 
to the lessee of--
        (A) the lessee's mileage disclosure requirements under paragraph 
    (1) of this subsection; and
        (B) the penalties for failure to comply with those requirements.

    (3) The lessor shall retain the disclosures made by a lessee under 
paragraph (1) of this subsection for at least 4 years following the date 
the lessor transfers the leased motor vehicle.
    (4) If the lessor transfers ownership of a leased motor vehicle 
without obtaining possession of the vehicle, the lessor, in making the 
disclosure required by subsection (a) of this section, may indicate on 
the title the mileage disclosed by the lessee under paragraph (1) of 
this subsection unless the lessor has reason to believe that the 
disclosure by the lessee does not reflect the actual mileage of the 
vehicle.
    (d) State Alternate Vehicle Mileage Disclosure Requirements.--The 
requirements of subsections (b) and (c)(1) of this section on the 
disclosure of motor vehicle mileage when motor vehicles are transferred 
or leased apply in a State unless the State has in effect alternate 
motor vehicle mileage disclosure requirements approved by the Secretary. 
The Secretary shall approve alternate motor vehicle mileage disclosure 
requirements submitted by a State unless the Secretary decides that the 
requirements are not consistent with the purpose of the disclosure 
required by subsection (b) or (c), as the case may be.
    (e) Auction Sales.--If a motor vehicle is sold at an auction, the 
auction company conducting the auction shall maintain the following 
records for at least 4 years after the date of the sale:
        (1) the name of the most recent owner of the motor vehicle 
    (except the auction company) and the name of the buyer of the motor 
    vehicle.
        (2) the vehicle identification number required under chapter 301 
    or 331 of this title.
        (3) the odometer reading on the date the auction company took 
    possession of the motor vehicle.

    (f) Application and Revision of State Law.--(1) Except as provided 
in paragraph (2) of this subsection, subsections (b)-(e) of this section 
apply to the transfer of a motor vehicle after April 28, 1989.
    (2) If a State requests, the Secretary shall assist the State in 
revising its laws to comply with subsection (b) of this section. If a 
State requires time beyond April 28, 1989, to revise its laws to achieve 
compliance, the Secretary, on request of the State, may grant additional 
time that the Secretary considers reasonable by publishing a notice in 
the Federal Register. The notice shall include the reasons for granting 
the additional time. In granting additional time, the Secretary shall 
ensure that the State is making reasonable efforts to achieve 
compliance.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1049; Pub. L. 103-
429, Sec. 6(34), Oct. 31, 1994, 108 Stat. 4380; Pub. L. 104-287, 
Sec. 5(62), Oct. 11, 1996, 110 Stat. 3394; Pub. L. 105-178, title VII, 
Sec. 7105, June 9, 1998, 112 Stat. 467.)

                                          Historical and Revision Notes
                                                 Pub. L. 103-272
-------------------------------------------------------------------------------
---------------------------------
           Revised  Section                    Source (U.S. Code)              
 Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
32705(a)..............................  15:1988(a).                      Oct. 2
0, 1972, Pub. L. 92-513, Sec.
                                                                          408(a
), 86 Stat. 962.
                                        15:1988(b) (related to false     Oct. 2
0, 1972, Pub. L. 92-513, Sec.
                                         statements).                     408(b
) (related to false statements),
                                                                          86 St
at. 963; restated July 14, 1976,
                                                                          Pub. 
L. 94-364, Sec.  406, 90 Stat.
                                                                          983.
                                        15:1988(c).                      Oct. 2
0, 1972, Pub. L. 92-513, Sec.
                                                                          408(c
), 86 Stat. 963; restated July
                                                                          14, 1
976, Pub. L. 94-364, Sec.  406,
                                                                          90 St
at. 984.
32705(b)(1)...........................  15:1988(d)(1)(A), (B).           Oct. 2
0, 1972, Pub. L. 92-513, 86 Stat.
                                                                          947, 
Sec.  408(d)(1)(A), (B), (2)-(g);
                                                                          added
 Oct. 28, 1986, Pub. L. 99-579,
                                                                          Sec. 
 2(a), 100 Stat. 3309.
32705(b)(2)...........................  15:1988(d)(1)(C).                Oct. 2
0, 1972, Pub. L. 92-513, 86 Stat.
                                                                          947, 
Sec.  408(d)(1)(C); added Oct.
                                                                          31, 1
988, Pub. L. 100-561, Sec.  401,
                                                                          102 S
tat. 2817; Nov. 28, 1990, Pub. L.
                                                                          101-6
41, Sec.  7(a), 104 Stat. 4657.
                                        15:1988 (note).                  Nov. 2
8, 1990, Pub. L. 101-641, Sec.
                                                                          7(b) 
(last sentence), 104 Stat. 4657.
32705(b)(3)...........................  15:1988(d)(2).
32705(c)..............................  15:1988(e).
32705(d)..............................  15:1988(f).
32705(e)..............................  15:1988(g).
32705(f)..............................  15:1988 (note).                  Oct. 2
8, 1986, Pub. L. 99-579, Sec.
                                                                          2(c),
 100 Stat. 3310.
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a)(1), before clause (A), the words ``Not later than 
90 days after October 20, 1972'' are omitted as executed. In clause (B), 
the words ``if the transferor knows that the mileage registered by the 
odometer is incorrect'' are substituted for ``if the odometer reading is 
known to the transferor to be different from the number of miles the 
vehicle has actually traveled'' to eliminate unnecessary words.
    In subsection (b)(2)(A), before clause (i), the words ``Under 
regulations prescribed by the Secretary'' are substituted for 
``prescribed by rule by the Secretary'' for consistency in the revised 
title and because ``rule'' is synonymous with ``regulation''. The words 
``to a transferor'' are added for clarity. The words ``before February 
1, 1989'' are omitted as expired. The words ``in the possession of'' are 
substituted for ``physically held by'', and the words ``when the 
transferor transfers ownership of the vehicle'' are substituted for ``at 
the time of a transfer of such motor vehicle'', for clarity and 
consistency. The words ``the transferor may'' are substituted for 
``nothing in this subsection shall be construed to prohibit'' for 
clarity and to eliminate unnecessary words. Clause (i) is substituted 
for ``in a form'' and clause (ii) is substituted for ``in accordance 
with paragraph (2)(A)(i)'' for clarity and consistency. In clause (iii), 
the words ``consistent with the purposes of this Act and the need to 
facilitate enforcement thereof'' are omitted as surplus. In clauses 
(iv), (v), (viii), and (ix), the amendment made by section 7(a) of the 
Independent Safety Board Act Amendments of 1990 (Public Law 101-641, 104 
Stat. 4657) is restated as amending section 408(d)(1)(C) of the Motor 
Vehicle and Cost Savings Act (15 U.S.C. 1988(d)(1)(C)) instead of 
section 408(d)(2)(C) of that Act to reflect the probable intent of 
Congress. There is no section 408(d)(2)(C) in that Act. Clause (vii) is 
substituted for ``and under reasonable conditions'' for clarity and 
consistency.
    In subsection (b)(3)(A), before clause (i), the words ``following 
such transfer'' are omitted as surplus. In clause (i), the word 
``produced'' is substituted for ``set forth'' for clarity. In clause 
(iii), the words ``(in the event of a future transfer)'' are omitted as 
surplus.
    In subsection (d), the text of 15:1988(f)(1) (last sentence) is 
omitted as surplus because of 49:322(a).
    In subsection (e), before clause (1), the words ``establish and'' 
are omitted as executed.
    In subsection (f)(1), the text of section 2(c)(3) of the Truth in 
Mileage Act of 1986 (Public Law 99-579, 100 Stat. 3311) is omitted as 
surplus.


                             Pub. L. 103-429

    This amends 49:32705(c)(2)(A) to clarify the restatement of 
15:1988(e)(2)(A) by section 1 of the Act of July 5, 1994 (Public Law 
103-272, 108 Stat. 1051).


                             Pub. L. 104-287

    This amends 49:32702(8) and 32705 to clarify the restatement of 
15:1982(5) and 1988 by section 1 of the Act of July 5, 1994 (Public Law 
103-272, 108 Stat. 1049).


                               Amendments

    1998--Subsec. (a)(4), (5). Pub. L. 105-178 added pars. (4) and (5).
    1996--Subsec. (a). Pub. L. 104-287, Sec. 5(62)(A), substituted 
``Disclosure requirements'' for ``Written disclosure requirements'' in 
heading and amended text generally. Prior to amendment, text read as 
follows:
    ``(1) Under regulations prescribed by the Secretary of 
Transportation, a person transferring ownership of a motor vehicle shall 
give the transferee a written disclosure--
        ``(A) of the cumulative mileage registered by the odometer; or
        ``(B) that the mileage is unknown if the transferor knows that 
    the mileage registered by the odometer is incorrect.
    ``(2) A person making a written disclosure required by a regulation 
prescribed under paragraph (1) of this subsection may not make a false 
statement in the disclosure.
    ``(3) A person acquiring a motor vehicle for resale may accept a 
disclosure under this section only if it is complete.
    ``(4) The regulations prescribed by the Secretary shall provide the 
way in which information is disclosed and retained under this section.''
    Subsec. (b)(3)(A). Pub. L. 104-287, Sec. 5(62)(B), substituted ``may 
not be licensed for use in a State unless'' for ``may be licensed for 
use in a State only if'' in introductory provisions.
    1994--Subsec. (c)(2)(A). Pub. L. 103-429 amended subpar. (A) 
generally. Prior to amendment, subpar. (A) read as follows: ``the 
mileage disclosure requirements of subsection (a) of this section; 
and''.


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-287 effective July 5, 1994, see section 
8(1) of Pub. L. 104-287, set out as a note under section 5303 of this 
title.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-429 effective July 5, 1994, see section 9 
of Pub. L. 103-429, set out as a note under section 321 of this title.


                               Regulations

    Section 4(q) of Pub. L. 103-272 provided that: ``The revision of 
regulations, referred to in section 32705(b)(2)(A) of title 49, United 
States Code, as enacted by section 1 of this Act, that is required by 
section 7 of the Independent Safety Board Act Amendments of 1990 (Public 
Law 101-641, 104 Stat. 4657) [former 15 U.S.C. 1988(d)(1)(C), 1988 note] 
shall be prescribed not later than May 28, 1991.''

                  Section Referred to in Other Sections

    This section is referred to in sections 30502, 32703 of this title.
