STATE OF WISCONSIN
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
PROPOSED ORDER ADOPTING PERMANENT RULE
The Wisconsin Department of Transportation proposes an order to:
Renumber Trans 154.02 (1);
Amend Trans 154.02 (10), 154.03 (1) (b), (2) (a), (3) (a) 1., (b), (c) 1., 154.04 (1), (2), (3), 154.07 (1), (2), 154.08 (1), (6), 154.11 (2) (e), (3), (4) (a) and (b), (6), 154.12 (1), (2), and 154.15 (1), (2);
Create Trans 154.02 (1), (5g), (5r), (7g), (7r) and (10m), 154.04 (7), 154.07 (3), 154.12 (5), and 154.16.
The Statement of Scope for this Permanent Rule, SS-042-23, was approved by the Governor on June 15, 2023, published in Register No. 810B on June 26, 2023, and approved by the Secretary of the State of Wisconsin Department of Transportation (department) Craig Thompson, as required by s. 227.135 (2), Stats., on May 2, 2023. The analysis below was prepared by the department. ANALYSIS
Statutes Interpreted: Chapter 342, Stats. Explanation of Agency Authority: Section 342.155 (1) (b), Stats., permits the department to authorize vehicle mileage disclosures in an automated format, as defined in Section 342.01 (2) (ac) to mean: “generated or maintained in an electronic or digital form or medium.” Section 342.155 (c), Stats., provides authority for the department to promulgate such rules to establish the form and manner of the mileage disclosure. The department is also required to adopt rules consistent with federal odometer disclosure requirements, 49 U.S.C 32705; 49 CFR Part 580. Related Statute or Rule: Chapters 340-349 and 351, Stats.; Chapter Trans 154, Wis. Admin. Code Plain Language Analysis: National Highway Traffic Safety Administration regulations at 49 CFR Part 580 regulate Odometer Disclosure Requirements, and, more specifically, authorize the use of electronic signatures for odometer disclosure statements and provide technical requirements to ensure validity and security of the electronic signature. Because odometer disclosure statements are required and regulated by federal law, the department proposes to adopt practices that conform to those federal electronic signature requirements. This rulemaking will conform Wisconsin’s odometer disclosure statement signature requirements to those federal electronic signature requirements. Current practice requires wet signatures for odometer statements for all non-exempt vehicles. The written signature is required on the conforming title, a separate odometer disclosure statement (DOT paper form with security features), or a conforming power of attorney form. The completed odometer disclosure must be physically delivered by the transferor to the transferee at the time ownership of the motor vehicle is transferred.
Electronic signatures would provide efficiencies for DMV, third party partners, motor vehicle dealers, lien holders, and our customers. The goal of this rulemaking is to facilitate a secure electronic odometer disclosure process that no longer relies on physical paper. Electronic disclosures creates opportunities to increase efficiency and accuracy, and to mitigate opportunities for odometer fraud. Electronic disclosures are also pandemic-friendly as it allows for remote transactions.
This chapter pertains to any person transferring ownership of a non-exempt vehicle with a Wisconsin title. This rulemaking conforms to the Wisconsin statutes and federal laws related to the electronic disclosure of vehicle mileage, including relevant portions of the Motor Vehicle and Highway Safety Improvement Act of 2012 and the Comprehensive Transportation and Consumer Protection Act of 2015. This rule proposes to authorize the electronic disclosure of motor vehicle mileage meeting the federal standards.
Section 1. Renumbers a definition section to allow creation of the term “access” as an alphabetically-prior definition.
Section 2. Creates definitions for “access”, “electronic,” “electronic title system,” “physical,” and “printed name.” The term “access” is used only once in this chapter, in s. Trans 154.16 (8) (b), when discussing the security of electronic titling systems. The definition is drawn from federal odometer regulations and is identical to that found at 49 CFR 580.3. The rule’s intent is to parallel the federal style and follow the federal electronic odometer requirements for security purposes. Though the Legislative Reference Bureau recommends only incorporating definitions when the definition is used more than once, (LRB Admin Rules Manual s. 1.07 (1)), “access” is intentionally created to mirror federal regulations. This term is necessary to understand the situations in which electronic titling systems must be secure. The term "electronic" incorporates Wis. Stat. Ch. 342's definition of "automated format," since Wis. Stat. S. 342.155 (1) (b) authorizes mileage disclosures to be made in an automated format authorized by the department. This definition also includes the 49 CFR 580 limitation that this term exclude physical documents converted to an image for electronic storage purposes. The definitions "physical" and "printed name" are intended to mirror the definitions in 49 CFR Part 580. Section 3. Amends definition “separate conforming odometer disclosure statement” to mean either a physical or electronic statement issued or approved by the department which is separate from a certificate of title.
Section 4. Creates a definition for “sign” or “signature” that describes acceptable signatures in both physical and electronic formats, intended to mirror the definition in 49 CFR Part 580. Section 5. Amends several sections discussing mileage disclosure requirements when transferring interest in a motor vehicle to allow for the disclosure to be made on a separate conforming odometer disclosure statement, which can be physical or electronic.
Section 6. Amends a section to remove a redundant requirement regarding separate conforming odometer disclosure statements. Amends a section and its subsection to clarify the ability to make odometer disclosures electronically and amends another section to add a 49 CFR Part 580 requirement to display certain information prior to execution of any electronic signatures. Section 7. Creates a section to add the 49 CFR Part 580 requirement that the department must make electronic copies of mileage disclosure statements available to the transferee and transferor. Section 8. Amends one section to add a 49 CFR Part 580 requirement to display certain information prior to execution of an electronic signature and amends one section and its subsection to clarify that odometer disclosure statements may be provided electronically. Section 9. Creates a section to require any lessor that maintains its own electronic title system to comply with the requirements of the newly created section Trans 154.16(1). Section 10. Amends two sections and a subsection to clarify that a consignor may complete and deliver to a consignee an electronic odometer disclosure.
Section 11. Amends several sections to clarify that odometer disclosure statements may be completed electronically in connection with the transfer of ownership of a motor vehicle through a power of attorney.
Section 12. Amends two sections to add the 49 CFR Part 580 requirement that electronic copies of odometer disclosure statements must be retained by dealers, wholesalers, and lessors in a format which cannot be altered and which indicates any unauthorized attempts to do so. Section 13. Creates a section to require the department to retain electronic odometer statements for a minimum of five years in compliance with newly created section Trans 154.16 and 49 CFR Part 580, and that such electronic statements must be made available to dealers, wholesalers, lessors, auction pools, salvage pools, salvage dealers, and law enforcement officials. Section 14. Amends two sections to clarify that odometer readings included with certificates of title may be in an electronic format.
Section 15. Creates a new section adding several requirements for electronic odometer disclosures in compliance with 49 CFR Part 580. First, any electronic title system used to create, store, or maintain electronic documents, including electronic odometer disclosure statements, must have certain features to ensure that such documents cannot be accessed or altered without appropriate authority. Second, any electronic odometer disclosures must be retained for a minimum of five years in a format which cannot be altered without the department’s authority and so that such records may be systematically retrieved. Third, the section describes the appropriate party to electronically sign odometer disclosures. Fourth, clarifies that any notices required under Chapter Trans 154 in connection with an electronic odometer disclosure may be satisfied by electronic transmissions. Fifth, creates a requirement that if any physical documents used to comply with Chapter Trans 154 are converted to an electronic format by scanning or imaging must preserve the features of the secure printing process used to create such physical documents, and that such documents must be made at a resolution of not less than 200 dpi.
