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Automobile Fraud: A.1.4.11 2015 Amendment

On December 14, 2015, Congress enacted § 24111 of the Fixing America’s Surface Transportation Act, Pub. L. No. 114-94, 129 Stat. 1312. This amendment allows states to use conforming electronic disclosures or notices to substitute for any written disclosure or notice required by MVICSA. This authority expires when the Department of Transportation issues its overdue regulations on this subject.

Automobile Fraud: § 32707 Administrative warrants

(a) Definition.—In this section, “probable cause” means a valid public interest in the effective enforcement of this chapter or a regulation prescribed under this chapter sufficient to justify the inspection or impoundment in the circumstances stated in an application for a warrant under this section.

(b) Warrant requirement and issuance.

Automobile Fraud: A.1.4.5 1988 Amendment

When the NHTSA refused to permit the use of powers of attorney for odometer disclosures in which the same person could sign as transferor and transferee, dealers obtained an amendment to the Pipeline Safety Reauthorization Act permitting their use.

September 30, 1988. Senate passes S. 2424, 100th Cong. (1988) with Byrd amendment permitting unlimited use of power of attorney. 134 Cong. Rec. S14,002–S14,003 (daily ed. Sept. 30, 1988).

Automobile Fraud: § 32701 Findings and purposes

(a) Findings.—Congress finds that—

(1) buyers of motor vehicles rely heavily on the odometer reading as an index of the condition and value of a vehicle;

(2) buyers are entitled to rely on the odometer reading as an accurate indication of the mileage of the vehicle;

(3) an accurate indication of the mileage assists a buyer in deciding on the safety and reliability of the vehicle; and

Automobile Fraud: § 2725 Definitions

In this chapter—

(1) “motor vehicle record” means any record that pertains to a motor vehicle operator’s permit, motor vehicle title, motor vehicle registration, or identification card issued by a department of motor vehicles;

(2) “person” means an individual, organization or entity, but does not include a State or agency thereof;

Automobile Fraud: Listing of Provisions

TITLE 18. CRIMES AND CRIMINAL PROCEDURE

Part I. Crimes

* * *

Chapter 123. Prohibition on Release and Use of Certain Personal Information from State Motor Vehicle Records

Driver’s Privacy Protection Act

§ 2721. Prohibition on release and use of certain personal information from State motor vehicle records

§ 2722. Additional unlawful acts

§ 2723. Penalties

Automobile Fraud: § 32708 Confidentiality of information

(a) General.—Information obtained by the Secretary of Transportation under this chapter related to a confidential matter referred to in section 1905 of title 18 may be disclosed only—

(1) to another officer or employee of the United States Government for use in carrying out this chapter; or

(2) in a proceeding under this chapter.

Automobile Fraud: A.1.4.6 1990 Amendment

When the NHTSA required dealers using a power of attorney to submit the original power of attorney to the state that issued the power of attorney along with the application for title, the dealers obtained an amendment to the Independent Safety Board Act Amendments of 1990 to prohibit NHTSA from requiring that a vehicle be titled in the state in which the power of attorney was issued.

Automobile Fraud: § 32702 Definitions

In this chapter—

(1) “auction company” means a person taking possession of a motor vehicle owned by another to sell at an auction.

(2) “dealer” means a person that sold at least 5 motor vehicles during the prior 12 months to buyers that in good faith bought the vehicles other than for resale.

(3) “distributor” means a person that sold at least 5 motor vehicles during the prior 12 months for resale.

Automobile Fraud: Listing of Provisions

TITLE 49—TRANSPORTATION

* * *

Subtitle VI. Motor Vehicle and Driver Programs

Part A. General

* * *

Chapter 305. National Motor Vehicle Title Information System

§ 30501. Definitions

§ 30502. National Motor Vehicle Title Information System

§ 30503. State participation

§ 30504. Reporting requirements

§ 30505. Penalties and enforcement

Automobile Fraud: A.1.4.1 Introduction

The original odometer requirements were drafted and supported by the National Automobile Dealers Association (NADA)1 and were concerned with tampering by wholesalers selling to retail dealers across state lines. There was no opposition to the bill and no detailed discussion or debates about its meaning or purpose. The subsequent legislative history is set out below.

Automobile Fraud: A.1.1 Introduction

This section reprints the Act, 49 U.S.C. §§ 32701–32711, and selected definitions from section 32101 (formerly 15 U.S.C. §§ 1901, 1981–1991), as amended by Pub. L. No. 94-364, 90 Stat. 981 (1976), Pub. L. No. 99-579, 100 Stat. 3309 (1986), Pub. L. No. 100-561, § 401, 102 Stat. 2805, 2817 (1988), and Pub. L. No. 101-641, § 7, 104 Stat. 4654, 4657 (1990); recodified by Pub. L. No. 103-272, 108 Stat. 1049 (1994); and further amended by Pub. L. No. 104-287, § 5, 110 Stat. 3394 (1996), Pub. L. No. 105-102, § 2(19), 111 Stat. 2205 (1997), Pub. L. No. 105-178, § 7105, 112 Stat. 107 (1998), Pub.

Automobile Fraud: § 32709 Penalties and enforcement

(a) Civil penalty.

(1) A person that violates this chapter or a regulation prescribed or order issued under this chapter is liable to the United States Government for a civil penalty of not more than $10,000 for each violation. A separate violation occurs for each motor vehicle or device involved in the violation. The maximum penalty under this subsection for a related series of violations is $1,000,000.

Automobile Fraud: A.1.4.7 1994 Recodification

The Motor Vehicle Information and Cost Savings Act was reenacted and recodified by Pub. L. No. 103-272, 108 Stat. 1049 (1994). The Act is now found at 49 U.S.C. §§ 32101, 32701–32711.

The intent was to move all transportation laws into one title, and to conform the law to contemporary language usage. No substantive change was intended. The legislative history and the explanation for specific changes is found in H.R. Rep. No. 103-180, at 5 (1993), reprinted in 1994 U.S.C.C.A.N. 818.

Automobile Fraud: § 32703 Preventing tampering

A person may not—

(1) advertise for sale, sell, use, install, or have installed, a device that makes an odometer of a motor vehicle register a mileage different from the mileage the vehicle was driven, as registered by the odometer within the designed tolerance of the manufacturer of the odometer;

(2) disconnect, reset, alter, or have disconnected, reset, or altered, an odometer of a motor vehicle intending to change the mileage registered by the odometer;

Automobile Fraud: § 2721 Prohibition on release and use of certain personal information from State motor vehicle records

(a) In general.—A State department of motor vehicles, and any officer, employee, or contractor thereof, shall not knowingly disclose or otherwise make available to any person or entity:

(1) personal information, as defined in 18 U.S.C. § 2725(3), about any individual obtained by the department in connection with a motor vehicle record, except as provided in subsection (b) of this section; or

Automobile Fraud: § 32710 Civil actions by private persons

(a) Violation and amount of damages.—A person that violates this chapter or a regulation prescribed or order issued under this chapter, with intent to defraud, is liable for 3 times the actual damages or $10,000, whichever is greater.

Automobile Fraud: A.1.4.8 1996 Appropriations Bill

The Department of Transportation’s 1997 appropriation bill, Pub. L. No. 104-205, § 332, 110 Stat. 2951 (1996) states: “Notwithstanding any other provision of law, the Secretary may use funds appropriated under this Act, or any subsequent Act, to administer and implement the exemption provisions of 49 CFR 580.6 and to adopt or amend exemptions from the disclosure requirements of 49 CFR part 580 for any class or category of vehicles that the Secretary deems appropriate.” The NHTSA views this provision as authority for it to exempt classes of cars from the Act’s disclosure requirements.

Automobile Fraud: § 32704 Service, repair and replacement

(a) Adjusting mileage.—A person may service, repair, or replace an odometer of a motor vehicle if the mileage registered by the odometer remains the same as before the service, repair, or replacement. If the mileage cannot remain the same—

(1) the person shall adjust the odometer to read zero; and

Automobile Fraud: § 30501 Definitions

In this chapter—

(1) “automobile” has the same meaning given that term in section 32901(a) of this title.

(2) “certificate of title” means a document issued by a State showing ownership of an automobile.

(3) “insurance carrier” means an individual or entity engaged in the business of underwriting automobile insurance.

Automobile Fraud: A.1.4.2 1972 Act

April 29, 1971. Odometer requirements introduced in the Senate by Senator Magnuson as an amendment to pending Motor Vehicle Information and Cost Savings Act. 117 Cong. Rec. 12,659 (1971).

May 7, 10, 11, 1971. Senate Hearings: NADA testifies in favor of the Act. Hearings on S. 945, S. 946, and S. Con. Res. 23 Before the Senate Comm. on Commerce, 92d Cong., pt. 3, at 1455–59 (1971).

Automobile Fraud: § 2722 Additional unlawful acts

(a) Procurement for unlawful purpose.—It shall be unlawful for any person knowingly to obtain or disclose personal information, from a motor vehicle record, for any use not permitted under section 2721(b) of this title.

(b) False representation.—It shall be unlawful for any person to make false representation to obtain any personal information from an individual’s motor vehicle record.