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Motor Vehicle Information and
Costs Savings Act regarding odometer fraud.


15 United States Code

Section 1981- Findings

The Congress hereby finds that purchases, when buying motor
vehicles, rely heavily on the odometer reading as an index of the
condition and value of such vehicle;that purchasers are entitled
to rely on the odometer reading as an accurate reflection of the
mileage actually traveled by the vehicle; that an accurate
indication of the mileage traveled by a motor vehicle assists the
purchaser in determining its safety and reliability; and that
motor vehicles move in the current of interstate and foreign
commerce or affect such commerce. It is therefore the purpose of
this title to prohibit tampering with odometers on motor vehicles
and to establish certain safeguards for the protection of
purchasers with respect to the sale of motor vehicles having
altered or reset odometers.

Section 1982- Defined terms

As used in this title--

     (1) The term "dealer" means any person who has sold 5 or
more motor vehicles in the past 12 months to purchasers who in
good faith purchase such vehicles for purposes other than resale.

     (2) The term "distributor" means any person who has sold 5
or more vehicles in the past 12 months for resale.

     (3) The term "odometer" means an instrument for measuring
and recording the actual distance a motor vehicle travels while
in operation; but shall not include any auxiliary odometer
designed to be rest by the operator of the motor vehicle of
recording mileage on trips.

     (4) The term "repair and replacement" means to restore to a
sound working condition by replacing the odometer or any part
thereof or by correcting what is inoperative.

     (5) The term "transfer" means to change ownership by
purchase, gift or any other means.

     (6) the term "title" means the certificate of title or other
document issued by the Stated indicating ownership.

     (7) The term "leased motor vehicle" means any motor vehicle
which is leased to a person for a term of at least 4 months by a
lessor who has leased 5 or more vehicles in the past 12 months.

     (8) The term "auction company" means any person who takes
possession (whether through consignment or bailment or through
any other arrangement) of a motor vehicle owned by another person
for selling such motor vehicles at an auction.

Section 1983- Devices causing odometer to register than true
mileage driven prohibited

No person shall advertise for sale, sell, use, or install or
cause to be installed, any device which causes an odometer to
register any mileage other than the true mileage driven. For
purposes of this section, the true mileage driven is that mileage
driven by the vehicle as registered by the odometer with the
manufacturer's designed tolerance.

Section 1984- Change of mileage indicated on odometer prohibited

No person shall disconnect, rest, or alter or cause to be
disconnected, reset or altered, the odometer of any motor vehicle
with intent to change the number of miles indicated thereon.

Section 1985- Operation of motor vehicles with knowledge of
disconnected or nonfunctional odometer prohibited

No person shall, with intent to defraud, operate a motor vehicle
on any street or highway knowing that the odometer of such
vehicle is disconnected or non-functional.


Section 1986- Conspiracy to violate odometer requirements

No person shall conspire with any other person to violate
sections 1983, 1984, 1985, 1987 and 1988.

Section 1987- Lawful service and repair

(a) Nothing in this title shall prevent the service, repair, or
replacement of an odometer, provide the mileage indicated thereon
remains the same as before the service, repair or replacement.
Where the odometer is incapable of registering the same mileage
as before such service, repair, or replacement, the odometer
shall be adjusted to read zero and a notice in writing shall be
attached to the left door frame of the vehicle by the owner or
his agent specifying the mileage prior to repair or replacement
of the odometer and the date on which it was repaired or
replaced.

(b)(1) No person shall fail to adjust an odometer or affix a
notice regarding such adjustment as required pursuant to
subsection (a) of this section.

(2) No person shall, with intent to defraud, remove or alter any
notice affixed to a motor vehicle pursuant to subsection (a) of
this section.

Section 1988. Disclosure requirements upon transfer of ownership
of motor vehicle

(a) Promulgation of rules.

(b) Violation of rules and giving false statements to transferees
prohibited. No transferor shall violate any rules prescribed
under this section or give a false statement to a transferee in
making any disclosure required by such rule.

(c) Acceptance of incomplete written disclosure by transferees
acquiring ownership for resale prohibited. No transferee, who,
for purposes of resale, acquires ownership of a motor vehicle
shall accept any written disclosure required by any rules
prescribed under this section if such disclosure is incomplete.

(d)(1)(A) Any motor vehicle the ownership of which is transferred
may not be licensed for use in any State unless the transferee,
in submitting an application to a State for a title upon which
such license will be issued, includes which such application the
transferor's title and, if that title contains the space referred
to in paragraph (2)(A)(iii), a statement, signed and dated by the
transferor, of the mileage disclosure required under subsection
(a).

(B) This paragraph shall not apply to any transfer of ownership
of a motor vehicle which has not been licensed before the
transfer.

(2)(A) Any motor vehicle the ownership of which is transferred
may not be licensed for use in any State unless the title which
is issued by the State to the transferee following such
transfer--

     (i) is set forth by means of a secure printing process (or
other secure process);

     (ii) indicates the mileage disclosure required to make under
subsection (a); and

     (iii) contains a space for the transferee to disclose (in
the event of a future transfer) the mileage at the time of such
future transfer and to sign and date such disclosure.

(B) The requirements of subparagraph (A) shall not be construed
to require a State to verify, or preclude the State from
verifying, the mileage information contained in the title.

(C) In the case of a transferor to whom title to a motor vehicle
has been issued by any State and such title is, at the time of a
transfer of such motor vehicle, physically held by a lienholder,
nothing in this subsection shall be construed to prohibit for
purposes of the mileage disclosure requirements of this section
the use of a written power of attorney (if otherwise permitted by
State law) in a form, and under reasonable conditions, prescribed
by rule by the Secretary before Feb. 1, 1989. The rule shall (i)
ensure disclosure on the power of attorney document of the actual
mileage by the person exercising the power of attorney in the
space referred to in paragraph (2)(A)(iii). The rule, consisted
with the purposes of this Act and the need to facilitate
enforcement thereof, shall prescribe that the form issued by the
State to the transferee in accordance with paragraph (2)(A)(i),
shall prescribe that the person granted such power of attorney
shall retain a copy of such power of attorney and shall submit
the original back to the State with a copy of the title showing
the restatement of the mileage, and may prescribe that the State
retain the power of attorney and the copy of the title for an
appropriate period or that the State adopt alternative measurers
consistent with the purposes of this tile, taking into
consideration costs to the State. The rule shall not require that
a vehicle be titled in the State in which the power of attorney
was issued. The provisions of Section 1990b and 1990c shall apply
to any person to any person granting or granted such power of
attorney.
(e)(1) In the case of any leased motor vehicle, the rules under
subsection (a) shall require written disclosure regarding mileage
to be made by the lessee to the lessor upon the lessor's transfer
of ownership of the leased motor vehicle.

(2) Under such rules, the lessor of a leased motor vehicle shall
provide written notice to the lessee regarding--

     (A) such mileage disclosure requirements, and
     (B) the penalties for failure to comply with them.

(3) The lessor shall retain the disclosures made by any lessee
with respect to any motor vehicle under paragraph (1) for a
period of at least 4 years following the date the lessor
transfers that vehicle.

(4) For purposes of this section, if the lessor transfers
ownership of an leased motor vehicle without obtaining possession
of such vehicle, the lessor may, in making the disclosure
required by subsection (a), indicate on the title the mileage
disclosed by the lessee under paragraph (1) unless the lessor has
reason to believe that such disclosure by the lessees does not
reflect the actual mileage of the vehicle.

(f)(1) The requirements of subsections (d) and (e)(1) respecting
the disclosure of motor vehicle mileage when motor vehicle are
transferred or leased shall apply in a State unless the Sate has
in effect alternate motor vehicle mileage disclosure requirements
approved by the Secretary. The Secretary may promulgate
regulations establishing procedures for the consideration and
approval of such alternate requirements.

(2) The Secretary shall approve alternate motor vehicle mileage
disclosure requirements submitted by a State unless the Secretary
determines that such requirements are not consistent with the
purpose of the disclosure required by subsection (9) or (e), as
the case may be.

(g) IF any motor vehicle is sold at an auction, the auction
company which conducts such auction shall establish and maintain
for a period of at least 4 years following the date of such sale
the following records:

     (1) The name of the most recent owner of the motor vehicle
(Other than the auction company) and the name of the buyer of the
vehicle.

     (2) The vehicle identification number of the motor vehicle
required under title Vi of this act.

     (3) The odometer reading on the date of which the auction
company took possession of the motor vehicle.

Section 1989, Civil action to enforce liability for violations

(a) Any person who, with intent to defraud, violates any
requirement imposed under this title shall be liable in an amount
equal to the sum of--

     (1) three times the amount of actual damages sustained or $
1,500, whichever is the greater; and

     (2) in the case of any successful action to enforce the
foregoing liability, the costs of the action together with
reasonable attorney fees as determined by the court.

(b) An action to enforce any liability created under subsection
(a) of this section may be brought in a United States district
court without regard to the amount in controversy, or in any
other court of competent jurisdiction, within two years from the
date on which the liability arises.