Electronic Motor Vehicle Transactions Systems, 51090-51092 [2019-20454]

Download as PDF 51090 Federal Register / Vol. 84, No. 188 / Friday, September 27, 2019 / Proposed Rules VIII. Public Comment jbell on DSK3GLQ082PROD with PROPOSALS How do I prepare and submit comments? • To ensure that your comments are correctly filed in the Docket, please include the Docket Number found in the heading of this document in your comments. • Your comments must not be more than 15 pages long.103 NHTSA established this limit to encourage you to write your primary comments in a concise fashion. However, you may attach necessary additional documents to your comments, and there is no limit on the length of the attachments. • Please organize your comments so they appear in the same order as the topics to which they respond appear in this document. Please identify comments by the number with which the relevant topic is associated in this document. • If you are submitting comments electronically as a PDF (Adobe) file, NHTSA asks that the documents be submitted using the Optical Character Recognition (OCR) process, thus allowing NHTSA to search and copy certain portions of your submissions. • Please note that pursuant to the Data Quality Act, in order for substantive data to be relied on and used by NHTSA, it must meet the information quality standards set forth in the OMB and DOT Data Quality Act guidelines. Accordingly, NHTSA encourages you to consult the guidelines in preparing your comments. DOT’s guidelines may be accessed at https://www.transportation.gov/ regulations/dot-informationdissemination-quality-guidelines. Tips for Preparing Your Comments When submitting comments, please remember to: • Identify the rulemaking by docket number and other identifying information (subject heading, Federal Register date and page number). • Explain why you agree or disagree, suggest alternatives, and substitute language for your requested changes. • Describe any assumptions you make and provide any technical information and/or data that you used. • If you estimate potential costs or burdens, explain how you arrived at your estimate in sufficient detail to allow for it to be reproduced. • Provide specific examples to illustrate your concerns, and suggest alternatives. • Explain your views as clearly as possible, avoiding the use of profanity or personal threats. 103 49 CFR 553.21. VerDate Sep<11>2014 17:11 Sep 26, 2019 Jkt 247001 • To ensure that your comments are considered by the agency, make sure to submit them by the comment period deadline identified in the DATES section above. For additional guidance on submitting effective comments, visit: https:// www.regulations.gov/docs/Tips_For_ Submitting_Effective_Comments.pdf. How can I be sure that my comments were received? If you wish Docket Management to notify you upon its receipt of your comments, enclose a self-addressed, stamped postcard in the envelope containing your comments. Upon receiving your comments, Docket Management will return the postcard by mail. How do I submit confidential business information? If you wish to submit any information under a claim of confidentiality, you should submit three copies of your complete submission, including the information you claim to be confidential business information, to the Chief Counsel, NHTSA, at the address given above under FOR FURTHER INFORMATION CONTACT. In addition, you should submit a copy, from which you have deleted the claimed confidential business information, to the docket at the address given above under ADDRESSES. When you send a comment containing information claimed to be confidential business information, you should include a cover letter setting forth the information specified in our confidential business information regulation. (49 CFR part 512) Will the agency consider late comments? We will consider all comments received before the close of business on the comment closing date indicated above under DATES. To the extent possible, we will also consider comments that the docket receives after that date. If the docket receives a comment too late for us to consider in developing a final rule (assuming that one is issued), we will consider that comment as an informal suggestion for future rulemaking action. How can I read the comments submitted by other people? You may read the comments received by the docket at the address given above under ADDRESSES. The hours of the docket are indicated above in the same location. You may also see the comments on the internet. To read the comments on the internet, go to http:// PO 00000 Frm 00023 Fmt 4702 Sfmt 4702 www.regulations.gov. Follow the online instructions for accessing the dockets. Please note that even after the comment closing date, we will continue to file relevant information in the docket as it becomes available. Further, some people may submit late comments. Accordingly, we recommend that you periodically check the Docket for new material. You can arrange with the docket to be notified when others file comments in the docket. See www.regulations.gov for more information. Issued in Washington, DC, under authority delegated in 49 CFR 1.95 and 501.5. James Clayton Owens, Acting Administrator. [FR Doc. 2019–20644 Filed 9–26–19; 8:45 am] BILLING CODE 4910–59–P DEPARTMENT OF TRANSPORTATION National Highway Traffic Safety Administration 49 CFR Part 580 [Docket No. NHTSA–2019–0092] Electronic Motor Vehicle Transactions Systems National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT). ACTION: Request for comments. AGENCY: In a separate Federal Register document, NHTSA issued a final rule that will allow for state adoption of electronic odometer disclosure systems without having to petition the agency for approval. NHTSA believes that, with the promulgation of this final rule, there are no longer any Federal disclosure requirements that must be done through paper, rather than electronic, disclosures. Therefore, States now possess the necessary authority to adopt completely paperless vehicle transactions if they choose to do so, and experience in other sectors of the economy suggest that adopting paperless systems generally reduces unnecessary transaction costs and may yield additional efficiency gains as well. In this document, NHTSA requests comment on the nature and scope of these potential benefits for States, consumers, and other stakeholders such as dealers and insurance companies; any interest or plans among States in moving towards paperless systems; and what resources and guidance may be needed to assist States to transition to purely electronic systems. SUMMARY: E:\FR\FM\27SEP1.SGM 27SEP1 Federal Register / Vol. 84, No. 188 / Friday, September 27, 2019 / Proposed Rules You should submit comments early enough to ensure that Docket Management receives them not later than October 28, 2019. ADDRESSES: You may submit comments to the docket number identified in the heading of this document by any of the following methods: • Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting comments. • Mail: Docket Management Facility, M–30, U.S. Department of Transportation, West Building, Ground Floor, Rm. W12–140, 1200 New Jersey Avenue SE, Washington, DC 20590. • Hand Delivery or Courier: West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE, between 9 a.m. and 5 p.m. Eastern Standard Time, Monday through Friday, except Federal holidays. • Fax: (202) 493–2251. Regardless of how you submit your comments, you should mention the docket number of this document. You may call the Docket at (202) 366–9324. Instructions: For detailed instructions on submitting comments and additional information on the rulemaking process, see the Public Participation heading of the Supplementary Information section of this document. Note that all comments received will be posted without change to http:// www.regulations.gov, including any personal information provided. Please see the Privacy Act discussion below. Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its decision-making process. DOT posts these comments, without edit, including any personal information the commenter provides, to http:// www.regulations.gov, as described in the system of records notice (DOT/ALL– 14 FDMS), which can be reviewed at https://www.transportation.gov/privacy. Anyone can search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). Confidential Information: If you wish to submit any information under a claim of confidentiality, you should submit two copies of your complete submission, including the information you claim to be confidential business information, and one copy with the claimed confidential business information deleted from the document, to the Chief Counsel, NHTSA, at the address given below under FOR FURTHER INFORMATION CONTACT. In addition, you jbell on DSK3GLQ082PROD with PROPOSALS DATES: VerDate Sep<11>2014 17:11 Sep 26, 2019 Jkt 247001 should submit two copies, from which you have deleted the claimed confidential business information, to Docket Management at the address given above under ADDRESSES. When you send a comment containing information claimed to be confidential business information, you should follow the procedures set forth in 49 CFR part 512 and include a cover letter setting forth the information specified in our confidential business information regulation. (49 CFR part 512.) Docket: For access to the docket to read background documents or comments received, go to http:// www.regulations.gov and follow the online instructions for accessing the dockets or go to the street address listed above. 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) 366–5263. SUPPLEMENTARY INFORMATION: NHTSA has issued a final rule amending Part 580 to allow for the establishment of electronic odometer disclosure systems allowing odometer disclosures required by the Motor Vehicle Information and Cost Savings Act (Cost Savings Act) to be made electronically (81 FR 16107). The odometer disclosure laws and regulations protect purchasers of motor vehicles from odometer fraud. See Public Law 92–513, 86 Stat. 947, 961– 63 (1972). NHTSA had previously published a notice of proposed rulemaking (NPRM) for this rulemaking on Friday, March 25, 2016, and the comment period for the NPRM closed on May 24, 2016. The scope of this rulemaking’s costbenefit analysis was limited to the direct effects of odometer disclosures, and thus the NPRM did not explore broader issues associated with adopting purely paperless transactions for automotive sales, particularly the wider benefits to States, consumers, and other stakeholders that could arise should States adopt such systems. To assist States and other stakeholders in assessing whether to adopt purely paperless procedures, NHTSA now seeks additional comments on these potential benefits and the plans and interest among the States in adopting these systems. PO 00000 Frm 00024 Fmt 4702 Sfmt 4702 51091 I. Background There were 17.3 million new vehicles 1 and approximately 40 million used vehicles 2 sold in the U.S. in 2018, but the total number of vehicle transactions is much larger because every consumer purchase and sale may involve multiple wholesale transactions, and because transfers to salvage companies or the scrappage of vehicles necessitates additional transactions by insurance companies and other stakeholders. Until the publication of today’s final rule, Federal law prohibited electronic odometer disclosures except in and to the extent that a subset of States that had received specific NHTSA exemptions. Now that NHTSA has lifted this general prohibition, the Department anticipates that States may be interested in moving towards completely electronic transactions for motor vehicles. As experience in other sectors of the economy has demonstrated, electronic transactions would be expected to lead to many efficiency gains to the significant number of entities involved in motor vehicle transactions, including motor vehicle dealers; motor vehicle auction companies; insurance and casualty companies; banks, credit unions, and finance companies; salvage companies and junk yards; state departments of motor vehicles; and consumers; and all other persons or entities required to make odometer disclosures. For example, stakeholders will no longer be required to scan hard copy documents with wet signatures to retain or manage records electronically. Moreover, reductions in postage and delivery costs, including overnight delivery, will accrue from removing the need to mail hard copy documents with wet signatures. NHTSA also anticipates that paperless transactions will reduce the time needed to complete vehicle transactions, which could lead to substantial additional cost savings. States adopting electronic transaction systems may also see cost savings through reduction in records retention and retrieval costs and by eliminating the need to print titles on secure paper. NHTSA estimates that there are at least 48.5 million transactions involving odometer disclosures completed annually by motor vehicle dealers and private parties through private party 1 The Year in Auto Sales: Facts, Figures and the Best Sellers from 2018, Automobile, (Jan. 4, 2019), available at https://www.automobilemag.com/ news/year-auto-sales-facts-figures-bestsellers-2018/ (last visited June 19, 2019). 2 Used Vehicle Outlook 2019, Edmunds, available at https://www.edmunds.com/industry/insights/ (last visited June 7, 2019). E:\FR\FM\27SEP1.SGM 27SEP1 51092 Federal Register / Vol. 84, No. 188 / Friday, September 27, 2019 / Proposed Rules jbell on DSK3GLQ082PROD with PROPOSALS sales that could potentially be conducted electronically as a result of the final rule if all states that have not already adopted electronic odometer disclosures decide to do so.3 Therefore, NHTSA believes that there is strong incentive for States to adopt electronic transaction systems. To assist States in making prudent decisions based on the best available evidence, in this document, NHTSA requests comment on the ways that adopting purely paperless transaction systems may reduce vehicle transaction costs for States, consumers, and other stakeholders. Specifically, can these systems reduce State transaction costs for receiving, processing, and storing odometer disclosures and creating titles? Also, will adopting purely paperless procedures reduce transaction costs for (i) wholesale transactions; (ii) auction transactions; (iii) salvage or junk transactions; or (iv) retail transactions? Moreover, what benefits will purely paperless transactions have for stakeholders, including from the following industries: (i) Insurance; (ii) 3 Virginia, Wisconsin, New York, Florida, Texas and Arizona already have adopted some form of electronic odometer disclosure. These states together account for 5 million new vehicle sales. See Auto Retailing: State by State, National Automobile Dealers Association, https:// www.nada.org/statedata/ (last visited Jul. 22, 2019). Because NHTSA was not able to obtain used vehicle sales data by state, we are using vehicle registrations for each state as a percentage of total vehicle registrations as a proxy for used vehicle sales. Together Virginia, Wisconsin, New York, Florida, Texas and Arizona account for 24.9 percent of all vehicle registrations. See Highway Statistics Series, Office of Highway Policy Information, Federal Highway Administration, https:// www.fhwa.dot.gov/policyinformation/statistics/ abstracts/2015/ (last visited Jul. 22, 2019). Based on this number, we estimate that there are approximately 10.12 million used vehicles sold in states employing some form of electronic odometer disclosure. We subtracted new and used vehicle sales in states already employing electronic odometer disclosure from the total number of new and used vehicle sales in 2018. Of these used vehicle sales, approximately 70 to 75 percent are currently subject to the odometer disclosure requirements of part 580. See Used Vehicle Outlook 2019, Edmunds, available at https:// www.edmunds.com/industry/insights/ (last visited June 7, 2019). In 2017, approximately 71 percent of used vehicles were sold by either a franchise or independent dealer. We stated in the final rule that used vehicles sold through dealers will likely involve at least two odometer disclosures, one when the vehicle is wholesaled and again when the vehicle is retitled. We arrived at our estimate by determining the total number of used vehicle sales currently subject to odometer disclosure requirements in states without electronic disclosures and added this number to the number of used vehicles sold by dealers currently subject to the odometer disclosures in states without electronic disclosure. This number was added to the number of new vehicles sold in states without electronic disclosure. The equation is ((29.88 * .70) + (20.9 * .71) + 12.7). NHTSA seeks comment on whether this is a reasonable method of estimating the number of sales-related odometer disclosures in these states. VerDate Sep<11>2014 18:39 Sep 26, 2019 Jkt 247001 salvage and whole automobile auctions; (iii) new, used, and wholesale vehicle dealers; (iv) vehicle registration companies; and/or (v) technology companies providing systems for any of the above industries? NHTSA also requests comment on any plans that States currently have to adopt electronic transaction systems now that the Federal requirement for paper odometer disclosures has been eliminated, as well as the general interest that States may have in adopting these systems even if no specific plans exist yet. In addition, NHTSA requests comment on the steps the agency can take to assist in assisting States in determining whether and how best to implement such procedures. For instance, (i) what questions do States have in determining whether and how to implement these systems and what can NHTSA do to help?; (ii) What can be done to support development of secure odometer disclosure programs and electronic titling systems more generally?; (iii) How can NHTSA support the interoperability of multiple state electronic titling systems? Instructions for submitting comments are described above. Issued in Washington, DC, pursuant to authority delegated in 49 CFR 1.81, 1.95, and 501.8(d). Jonathan Charles Morrison, Chief Counsel. [FR Doc. 2019–20454 Filed 9–26–19; 8:45 am] BILLING CODE 4910–59–P DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration 50 CFR Part 679 [Docket No. 190917–0030] RIN 0648–BJ02 Fisheries of the Exclusive Economic Zone Off Alaska; Pacific Cod Management in the Groundfish Fisheries of the Bering Sea and Aleutian Islands and the Gulf of Alaska National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Proposed rule; request for comments. AGENCY: NMFS proposes regulations to implement Amendment 120 to the Fishery Management Plan (FMP) for Groundfish of the Bering Sea and Aleutian Islands (BSAI) Management Area (BSAI FMP) and Amendment 108 SUMMARY: PO 00000 Frm 00025 Fmt 4702 Sfmt 4702 to the FMP for Groundfish of the Gulf of Alaska (GOA) (GOA FMP), collectively referred to as Amendments 120/108. If approved, Amendment 120 would limit the number of catcher/ processors (C/Ps) eligible to operate as motherships receiving and processing Pacific cod from catcher vessels (CVs) directed fishing in the BSAI nonCommunity Development Quota Program (CDQ) Pacific cod trawl fishery. This proposed rule is intended to promote the goals and objectives of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act), Amendments 120/108, the BSAI and GOA FMPs, and other applicable laws. DATES: Submit comments on or before October 28, 2019. ADDRESSES: You may submit comments on this document, identified by FDMS Docket Number NOAA–NMFS–2019– 0060, by any of the following methods: • Electronic Submission: Submit all electronic public comments via the Federal e-Rulemaking Portal. Go to www.regulations.gov/ #!docketDetail;D=NOAA-NMFS-20190060, click the ‘‘Comment Now!’’ icon, complete the required fields, and enter or attach your comments. • Mail: Submit written comments to Glenn Merrill, Assistant Regional Administrator, Sustainable Fisheries Division, Alaska Region NMFS, Attn: Records Office. Mail comments to P.O. Box 21668, Juneau, AK 99802–1668. Instructions: Comments sent by any other method, to any other address or individual, or received after the end of the comment period, may not be considered by NMFS. All comments received are a part of the public record and will generally be posted for public viewing on www.regulations.gov without change. All personal identifying information (e.g., name, address), confidential business information, or otherwise sensitive information submitted voluntarily by the sender will be publicly accessible. NMFS will accept anonymous comments (enter ‘‘N/ A’’ in the required fields if you wish to remain anonymous). Electronic copies of Amendment 120 to the BSAI FMP, Amendment 108 to the GOA FMP, the Regulatory Impact Review (RIR; also referred to as the Analysis) and the draft National Environmental Policy Act (NEPA) Categorical Exclusion evaluation document may be obtained from www.regulations.gov. Electronic copies of Amendments 39, 61, 80, 97, and 111 to the BSAI FMP, and the Environmental Assessments (EAs)/RIRs E:\FR\FM\27SEP1.SGM 27SEP1

Agencies

[Federal Register Volume 84, Number 188 (Friday, September 27, 2019)]
[Proposed Rules]
[Pages 51090-51092]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20454]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 580

[Docket No. NHTSA-2019-0092]


Electronic Motor Vehicle Transactions Systems

AGENCY: National Highway Traffic Safety Administration (NHTSA), 
Department of Transportation (DOT).

ACTION: Request for comments.

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

SUMMARY: In a separate Federal Register document, NHTSA issued a final 
rule that will allow for state adoption of electronic odometer 
disclosure systems without having to petition the agency for approval. 
NHTSA believes that, with the promulgation of this final rule, there 
are no longer any Federal disclosure requirements that must be done 
through paper, rather than electronic, disclosures. Therefore, States 
now possess the necessary authority to adopt completely paperless 
vehicle transactions if they choose to do so, and experience in other 
sectors of the economy suggest that adopting paperless systems 
generally reduces unnecessary transaction costs and may yield 
additional efficiency gains as well. In this document, NHTSA requests 
comment on the nature and scope of these potential benefits for States, 
consumers, and other stakeholders such as dealers and insurance 
companies; any interest or plans among States in moving towards 
paperless systems; and what resources and guidance may be needed to 
assist States to transition to purely electronic systems.

[[Page 51091]]


DATES: You should submit comments early enough to ensure that Docket 
Management receives them not later than October 28, 2019.

ADDRESSES: You may submit comments to the docket number identified in 
the heading of this document by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.
     Mail: Docket Management Facility, M-30, U.S. Department of 
Transportation, West Building, Ground Floor, Rm. W12-140, 1200 New 
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery or Courier: West Building Ground Floor, Room 
W12-140, 1200 New Jersey Avenue SE, between 9 a.m. and 5 p.m. Eastern 
Standard Time, Monday through Friday, except Federal holidays.
     Fax: (202) 493-2251.
    Regardless of how you submit your comments, you should mention the 
docket number of this document. You may call the Docket at (202) 366-
9324.
    Instructions: For detailed instructions on submitting comments and 
additional information on the rulemaking process, see the Public 
Participation heading of the Supplementary Information section of this 
document. Note that all comments received will be posted without change 
to http://www.regulations.gov, including any personal information 
provided. Please see the Privacy Act discussion below.
    Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits 
comments from the public to better inform its decision-making process. 
DOT posts these comments, without edit, including any personal 
information the commenter provides, to http://www.regulations.gov, as 
described in the system of records notice (DOT/ALL-14 FDMS), which can 
be reviewed at https://www.transportation.gov/privacy. Anyone can 
search the electronic form of all comments received into any of our 
dockets by the name of the individual submitting the comment (or 
signing the comment, if submitted on behalf of an association, 
business, labor union, etc.).
    Confidential Information: If you wish to submit any information 
under a claim of confidentiality, you should submit two copies of your 
complete submission, including the information you claim to be 
confidential business information, and one copy with the claimed 
confidential business information deleted from the document, to the 
Chief Counsel, NHTSA, at the address given below under FOR FURTHER 
INFORMATION CONTACT. In addition, you should submit two copies, from 
which you have deleted the claimed confidential business information, 
to Docket Management at the address given above under ADDRESSES. When 
you send a comment containing information claimed to be confidential 
business information, you should follow the procedures set forth in 49 
CFR part 512 and include a cover letter setting forth the information 
specified in our confidential business information regulation. (49 CFR 
part 512.)
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov and follow the 
online instructions for accessing the dockets or go to the street 
address listed above.

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: [email protected]. 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) 366-5263.

SUPPLEMENTARY INFORMATION: NHTSA has issued a final rule amending Part 
580 to allow for the establishment of electronic odometer disclosure 
systems allowing odometer disclosures required by the Motor Vehicle 
Information and Cost Savings Act (Cost Savings Act) to be made 
electronically (81 FR 16107). The odometer disclosure laws and 
regulations protect purchasers of motor vehicles from odometer fraud. 
See Public Law 92-513, 86 Stat. 947, 961-63 (1972). NHTSA had 
previously published a notice of proposed rulemaking (NPRM) for this 
rulemaking on Friday, March 25, 2016, and the comment period for the 
NPRM closed on May 24, 2016.
    The scope of this rulemaking's cost-benefit analysis was limited to 
the direct effects of odometer disclosures, and thus the NPRM did not 
explore broader issues associated with adopting purely paperless 
transactions for automotive sales, particularly the wider benefits to 
States, consumers, and other stakeholders that could arise should 
States adopt such systems. To assist States and other stakeholders in 
assessing whether to adopt purely paperless procedures, NHTSA now seeks 
additional comments on these potential benefits and the plans and 
interest among the States in adopting these systems.

I. Background

    There were 17.3 million new vehicles \1\ and approximately 40 
million used vehicles \2\ sold in the U.S. in 2018, but the total 
number of vehicle transactions is much larger because every consumer 
purchase and sale may involve multiple wholesale transactions, and 
because transfers to salvage companies or the scrappage of vehicles 
necessitates additional transactions by insurance companies and other 
stakeholders. Until the publication of today's final rule, Federal law 
prohibited electronic odometer disclosures except in and to the extent 
that a subset of States that had received specific NHTSA exemptions.
---------------------------------------------------------------------------

    \1\ The Year in Auto Sales: Facts, Figures and the Best Sellers 
from 2018, Automobile, (Jan. 4, 2019), available at https://www.automobilemag.com/news/year-auto-sales-facts-figures-bestsellers-2018/ (last visited June 19, 2019).
    \2\ Used Vehicle Outlook 2019, Edmunds, available at https://www.edmunds.com/industry/insights/ (last visited June 7, 2019).
---------------------------------------------------------------------------

    Now that NHTSA has lifted this general prohibition, the Department 
anticipates that States may be interested in moving towards completely 
electronic transactions for motor vehicles. As experience in other 
sectors of the economy has demonstrated, electronic transactions would 
be expected to lead to many efficiency gains to the significant number 
of entities involved in motor vehicle transactions, including motor 
vehicle dealers; motor vehicle auction companies; insurance and 
casualty companies; banks, credit unions, and finance companies; 
salvage companies and junk yards; state departments of motor vehicles; 
and consumers; and all other persons or entities required to make 
odometer disclosures. For example, stakeholders will no longer be 
required to scan hard copy documents with wet signatures to retain or 
manage records electronically. Moreover, reductions in postage and 
delivery costs, including overnight delivery, will accrue from removing 
the need to mail hard copy documents with wet signatures. NHTSA also 
anticipates that paperless transactions will reduce the time needed to 
complete vehicle transactions, which could lead to substantial 
additional cost savings. States adopting electronic transaction systems 
may also see cost savings through reduction in records retention and 
retrieval costs and by eliminating the need to print titles on secure 
paper. NHTSA estimates that there are at least 48.5 million 
transactions involving odometer disclosures completed annually by motor 
vehicle dealers and private parties through private party

[[Page 51092]]

sales that could potentially be conducted electronically as a result of 
the final rule if all states that have not already adopted electronic 
odometer disclosures decide to do so.\3\
---------------------------------------------------------------------------

    \3\ Virginia, Wisconsin, New York, Florida, Texas and Arizona 
already have adopted some form of electronic odometer disclosure. 
These states together account for 5 million new vehicle sales. See 
Auto Retailing: State by State, National Automobile Dealers 
Association, https://www.nada.org/statedata/ (last visited Jul. 22, 
2019). Because NHTSA was not able to obtain used vehicle sales data 
by state, we are using vehicle registrations for each state as a 
percentage of total vehicle registrations as a proxy for used 
vehicle sales. Together Virginia, Wisconsin, New York, Florida, 
Texas and Arizona account for 24.9 percent of all vehicle 
registrations. See Highway Statistics Series, Office of Highway 
Policy Information, Federal Highway Administration, https://www.fhwa.dot.gov/policyinformation/statistics/abstracts/2015/ (last 
visited Jul. 22, 2019). Based on this number, we estimate that there 
are approximately 10.12 million used vehicles sold in states 
employing some form of electronic odometer disclosure. We subtracted 
new and used vehicle sales in states already employing electronic 
odometer disclosure from the total number of new and used vehicle 
sales in 2018. Of these used vehicle sales, approximately 70 to 75 
percent are currently subject to the odometer disclosure 
requirements of part 580. See Used Vehicle Outlook 2019, Edmunds, 
available at https://www.edmunds.com/industry/insights/ (last 
visited June 7, 2019). In 2017, approximately 71 percent of used 
vehicles were sold by either a franchise or independent dealer. We 
stated in the final rule that used vehicles sold through dealers 
will likely involve at least two odometer disclosures, one when the 
vehicle is wholesaled and again when the vehicle is retitled. We 
arrived at our estimate by determining the total number of used 
vehicle sales currently subject to odometer disclosure requirements 
in states without electronic disclosures and added this number to 
the number of used vehicles sold by dealers currently subject to the 
odometer disclosures in states without electronic disclosure. This 
number was added to the number of new vehicles sold in states 
without electronic disclosure. The equation is ((29.88 * .70) + 
(20.9 * .71) + 12.7). NHTSA seeks comment on whether this is a 
reasonable method of estimating the number of sales-related odometer 
disclosures in these states.
---------------------------------------------------------------------------

    Therefore, NHTSA believes that there is strong incentive for States 
to adopt electronic transaction systems. To assist States in making 
prudent decisions based on the best available evidence, in this 
document, NHTSA requests comment on the ways that adopting purely 
paperless transaction systems may reduce vehicle transaction costs for 
States, consumers, and other stakeholders. Specifically, can these 
systems reduce State transaction costs for receiving, processing, and 
storing odometer disclosures and creating titles? Also, will adopting 
purely paperless procedures reduce transaction costs for (i) wholesale 
transactions; (ii) auction transactions; (iii) salvage or junk 
transactions; or (iv) retail transactions? Moreover, what benefits will 
purely paperless transactions have for stakeholders, including from the 
following industries: (i) Insurance; (ii) salvage and whole automobile 
auctions; (iii) new, used, and wholesale vehicle dealers; (iv) vehicle 
registration companies; and/or (v) technology companies providing 
systems for any of the above industries?
    NHTSA also requests comment on any plans that States currently have 
to adopt electronic transaction systems now that the Federal 
requirement for paper odometer disclosures has been eliminated, as well 
as the general interest that States may have in adopting these systems 
even if no specific plans exist yet. In addition, NHTSA requests 
comment on the steps the agency can take to assist in assisting States 
in determining whether and how best to implement such procedures. For 
instance, (i) what questions do States have in determining whether and 
how to implement these systems and what can NHTSA do to help?; (ii) 
What can be done to support development of secure odometer disclosure 
programs and electronic titling systems more generally?; (iii) How can 
NHTSA support the interoperability of multiple state electronic titling 
systems?
    Instructions for submitting comments are described above.

    Issued in Washington, DC, pursuant to authority delegated in 49 
CFR 1.81, 1.95, and 501.8(d).
Jonathan Charles Morrison,
Chief Counsel.
[FR Doc. 2019-20454 Filed 9-26-19; 8:45 am]
 BILLING CODE 4910-59-P