4. Detailed explanation of statutory authority for the rule (including the statutory citation and language):
- Section 342.155(c), Stats., identifies areas for which the Department shall promulgate rules related to mileage disclosure requirements of transferors and transferees. - Under s. 342.115(1)(c)(2), the Department shall promulgate rules that “identify which vehicles are exempt from the mileage disclosure requirements”. - Section 85.16(1), Stats. - The secretary may make reasonable and uniform orders and rules deemed necessary to the discharge of the powers, duties and functions vested in the department.
- Section 227.11(2), Stats., identifies where rule-making authority is expressly conferred upon agencies. - Under s. 227.11(2)(a), Stats, “Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute” . 5. Estimate of amount of time that state employees will spend developing the rule and of other resources necessary to develop the rule:
500 hours
6. List with description of all entities that may be affected by the proposed rule:
The following entities may be affected by the proposed rule during the process of selling and/or transferring the title of a vehicle:
Wisconsin vehicle owners
Motor vehicle dealers
Third party title agents and vendors
Motor vehicle auctions
Insurers
7. Summary and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule:
National Highway Traffic Safety Administration regulations at 49 CFR Part 580 regulate Odometer Disclosure Requirements. 49 CFR 580.17 specifically provides exemptions to odometer disclosure requirements. As it currently exists, 49 CFR 580.17(3) exempts vehicles “manufactured in a model year beginning at least ten years before January 1 of the calendar year in which the transfer occurs” from the disclosure requirement. Accordingly, Trans 154.05(3) currently exempts vehicles that are 10 years old or older from the disclosure requirement. Effective January 1, 2021, 49 CFR 580.17(3) will exempt “a vehicle manufactured in or before the 2010 model year that is transferred at least 10 years after January 1 of the calendar year corresponding to its designated model year”. CFR 580.17(4) will exempt “a vehicle manufactured in or after the 2011 model year that is transferred at least 20 years after January 1 of the calendar year corresponding to its designated model year”. 8. Anticipated economic impact of implementing the rule (note if the rule is likely to have a significant economic impact on small businesses):
In 2018, the most recent complete calendar year data available, DMV processed 396,023 title transactions involving vehicle 10 to 20 years old that, under the new Rules, would now require an odometer statement. This accounts for 19% of all title transactions for trucks and autos.
Assumptions:
1 odometer statement requires an administrative burden of 1 minute.
The WI fleet would remain consistent moving forward in regards to size and relative age.
The administrative burden is reflective of when the Rule is fully implemented in 10 years.396,023 annual title transaction results in 396,023 minutes or 6,600 hours of administrative burden annually.
According to NHTSA data, 16% of vehicles over 10 years old are sold by motor vehicle dealers. When the Rule is fully implemented, the estimated annual administrative burden for motor vehicle dealers in Wisconsin would be an estimated (6,600 * 16%) 1,056 hours.
Contact Person:
Reed McGinn
Wisconsin Department of Transportation
Division of Motor Vehicles
4822 Madison Yards Way, Room 206
Madison, WI 53705
(608) 266-7857
Signed this ____ day of ______________ 2020
________________________________________________
Craig Thompson
Secretary
State of Wisconsin Department of Transportation
