GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	3 

SENATE BILL 396
Second Edition Engrossed 4/6/89
Third Edition Engrossed 5/3/89

Short Title:  Truth in Mileage Act Conformance.	(Public)
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Sponsors: Senator Simpson.
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Referred to:  Transportation.
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March 13, 1989

A BILL TO BE ENTITLED
AN ACT TO MAKE CONFORMING CHANGES REQUIRED BY THE FEDERAL TRUTH IN MILEAGE ACT.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 20-341 reads as rewritten:
"§ 20-341. Definitions.
As used in this Article:
(1)	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 reset by the operator of the motor vehicle for the purpose of recording mileage on trips.
(2)	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.
(3)	The term ‘transfer' means to change ownership by purchase, gift, or any other means.
(4)	The term ‘transferee' means any person to whom the ownership in a motor vehicle is transferred or any person who, as agent, accepts transfer of ownership in a motor vehicle for another by purchase, gift, or any means other than by creation of a security interest.
(5)	The term ‘transferor' means any person who or any person who, as agent, transfers his ownership in a motor vehicle by sale, gift or any means other than by creation of a security interest. 
(6)	The term ‘lessee' means any person, or the agent for any person, to whom a motor vehicle has been leased for a term of at least four months.
(7)	The term ‘lessor' means any person, or the agent for any person, who has leased five or more vehicles in the past 12 months.
(8)	The term ‘mileage' means the actual distance that a vehicle has traveled."
Sec. 2.  G.S. 20-347(a) reads as rewritten:
"(a)	In connection with the transfer of a motor vehicle, the transferor shall disclose the mileage to the transfereein writing on the title or on the document used to reassign the title.  This written disclosure must be signed by the transferor, including the printed name, and shall contain the following information:
(1)	The odometer reading at the time of the transfer(not to include tenths of miles);
(2)	The date of the transfer;
(3)	The transferor's name and current address;
(3a)	The transferee's printed name, signature and current address;
(4)	The identity of the vehicle, including its make, model, body type, and vehicle identification number, and the license plate number most recently used on the vehicle;
(5)	Certification by the transferor that to the best of his knowledge the odometer reading;
a.	Reflects the actual mileage; or
b.	Reflects the amount of mileage in excess of the designed mechanical odometer limit; or
c.	Does not reflect the actual mileage and should not be relied on.
		)."
Sec. 3.  G.S. 20-347 is amended by adding a new subsection to read:
"( a1)	Before executing any transfer of ownership document, each lessor of a leased motor vehicle shall notify the lessee in writing that the lessee is required to provide written disclosure to the lessor regarding mileage.  In connection with the transfer of ownership of the leased motor vehicle, the lessee shall furnish to the lessor a written statement signed by the lessee containing the following information:
(1)	The printed name of the person making the disclosure;
(2)	The current odometer reading (not to include tenths of miles);
(3)	The date of the statement;
(4)	The lessee's printed name and current address;
(5)	The lessor's printed name, signature, and current address;
(6)	The identity of the vehicle, including its make, model, year, body type, and vehicle identification number;
(7)	The date that the lessor notified the lessee of the disclosure requirements and the date the lessor received the completed disclosure statement; and
(8)	Certification by the lessee that to the best of his knowledge the odometer reading:
a.	Reflects the actual mileage;
b.	Reflects the amount of mileage in excess of the designed mechanical odometer limit; or
c.	Does not reflect the actual mileage and should not be relied on.
	If the lessor transfers the leased vehicle without obtaining possession of it, the lessor may indicate on the title the mileage disclosed by the lessee under this subsection, unless the lessor has reason to believe that the disclosure by the lessee does not reflect the actual mileage of the vehicle."
Sec. 4.  G.S. 20-347(d)(3) reads as rewritten:
"(3)	A vehicle that is 10 years old or older; or".
Sec. 5.  G.S. 20-347(d) is amended by adding a new subdivision to read:
"(2a)	A vehicle sold directly by the manufacturer to any agency of the United States in conformity with contractual specifications;"
Sec. 6.  Article 15 of Chapter 20 is amended by adding a new section to read:
"§ 20-347.1.  Odometer disclosure record retention.
	(a)	Dealers and distributors of motor vehicles who are required by this Part to execute an odometer disclosure statement shall retain, for five years, a photostat, carbon, or other facsimile copy of each odometer mileage statement which they issue or receive.  They shall retain all odometer disclosure statements at their primary place of business in an order that is appropriate to business requirements and that permits systematic retrieval.
	(b)	Lessors shall retain, for five years following the date they transfer ownership of the leased vehicle, each odometer disclosure statement which they receive from a lessee.  They shall retain all odometer disclosure statements at their primary place of business in an order that is appropriate to business requirements and that permits systematic retrieval.
	(c)	Each auction company shall establish and retain at its primary place of business in an order that is appropriate to business requirements and that permits systematic retrieval, for five years following the date of sale of each motor vehicle, the following records:
(1)	The name of the most recent owner (other than the auction company);
(2)	The name of the buyer;
(3)	The vehicle identification number; and
(4)	The odometer reading on the date which the auction company took possession of the motor vehicle.
	(d)	Records required to be kept under this section shall be open to inspection and copying by law enforcement officers of the Division in order to determine compliance with this Article."
Sec. 7.  G.S. 20-345 reads as rewritten:
"§ 20-345. Conspiracy.
No person shall conspire with any other person to violate G.S. 20-342, 20-343, 20-344, 20-346, 20-347, or 20-347.1."
Sec. 8.  This act shall become effective January 1, 1990.
Any person, firm or corporation violating G.S. 20-343 shall be guilty of a Class J felony.  A violation of any remaining provision shall be a misdemeanor.