Session of 1998
                   
HOUSE BILL No. 2618
         
By Committee on Transportation
         
1-14
            9             AN ACT relating to certificates of title; concerning fees; amending K.S.A.
10             1997 Supp. 8-135, 8-135a, 8-139, 8-145, 8-170, 8-171, 8-198 and 74-
11             2013 and repealing the existing sections; also repealing K.S.A. 1997
12             Supp. 8-198a.
13            
14       Be it enacted by the Legislature of the State of Kansas:
15           Section 1. K.S.A. 1997 Supp. 8-135 is hereby amended to read as
16       follows: 8-135. (a) Upon the transfer of ownership of any vehicle regis-
17       tered under this act, the registration of the vehicle and the right to use
18       any license plate thereon shall expire and thereafter there shall be no
19       transfer of any registration, and the license plate shall be removed by the
20       owner thereof. It shall be unlawful for any person, other than the person
21       to whom the license plate was originally issued, to have possession
22       thereof. When the ownership of a registered vehicle is transferred, the
23       original owner of the license plate may register another vehicle under the
24       same number, upon application and payment of a fee of $1.50, if such
25       other vehicle does not require a higher license fee. If a higher license fee
26       is required, then the transfer may be made upon the payment of the
27       transfer fee of $1.50 and the difference between the fee originally paid
28       and that due for the new vehicle.
29           (b) Subject to the provisions of subsection (a) of K.S.A. 8-198, and
30       amendments thereto, upon the transfer or sale of any vehicle by any
31       person or dealer, or upon any transfer in accordance with K.S.A. 1997
32       Supp. 59-3511, the new owner thereof, within 30 days, inclusive of week-
33       ends and holidays, from date of such transfer shall make application to
34       the division for registration or reregistration of the vehicle, but no person
35       shall operate the vehicle on any highway in this state during the thirty-
36       day period without having applied for and obtained temporary registration
37       from the county treasurer or from a dealer. After the expiration of the
38       thirty-day period, it shall be unlawful for the owner or any other person
39       to operate such vehicle upon the highways of this state unless the vehicle
40       has been registered as provided in this act. For failure to make application
41       for registration as provided in this section, a penalty of $2 shall be added
42       to other fees. When a person has a current motorcycle or passenger ve-
43       hicle registration and license plate, including any registration decal affixed

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  1       thereto, for a vehicle and has sold or otherwise disposed of the vehicle
  2       and has acquired another motorcycle or passenger vehicle and intends to
  3       transfer the registration and the license plate to the motorcycle or pas-
  4       senger vehicle acquired, but has not yet had the registration transferred
  5       in the office of the county treasurer, such person may operate the mo-
  6       torcycle or passenger vehicle acquired for a period of not to exceed 30
  7       days by displaying the license plate on the rear of the vehicle acquired.
  8       If the acquired vehicle is a new vehicle such person also must carry the
  9       assigned certificate of title or manufacturer's statement of origin when
10       operating the acquired vehicle, except that a dealer may operate such
11       vehicle by displaying such dealer's dealer license plate.
12           (c) Certificate of title: No vehicle required to be registered shall be
13       registered or any license plate or registration decal issued therefor, unless
14       the applicant for registration shall present satisfactory evidence of own-
15       ership and apply for an original certificate of title for such vehicle. The
16       following paragraphs of this subsection shall apply to the issuance of a
17       certificate of title for a nonhighway vehicle, as defined in K.S.A. 8-197,
18       and amendments thereto, except to the extent such paragraphs are made
19       inapplicable by or are inconsistent with K.S.A. 8-198, and amendments
20       thereto.
21           (1) An application for certificate of title shall be made by the owner
22       or the owner's agent upon a form furnished by the division and shall state
23       all liens or encumbrances thereon, and such other information as the
24       division may require. Notwithstanding any other provision of this section,
25       no certificate of title, other than a duplicate title, shall be issued for a
26       vehicle having any unreleased lien or encumbrance thereon, unless the
27       transfer of such vehicle has been consented to in writing by the holder
28       of the lien or encumbrance. Such consent shall be in a form approved by
29       the division. In the case of members of the armed forces of the United
30       States while the United States is engaged at war with any foreign nation
31       and for a period of six months next following the cessation of hostilities,
32       such application may be signed by the owner's spouse, parents, brother
33       or sister. The county treasurer shall use reasonable diligence in ascer-
34       taining whether the facts stated in such application are true, and if sat-
35       isfied that the applicant is the lawful owner of such vehicle, or otherwise
36       entitled to have the same registered in such applicant's name, shall so
37       notify the division, who shall issue an appropriate certificate of title. The
38       certificate of title shall be in a form approved by the division, and shall
39       contain a statement of any liens or encumbrances which the application
40       shows, and such other information as the division determines.
41           (2) The certificate of title shall contain upon the reverse side a form
42       for assignment of title to be executed by the owner before a notary public
43       or some other officer authorized to administer an oath. This assignment

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  1       shall contain a statement of all liens or encumbrances on the vehicle at
  2       the time of assignment. The certificate of title shall also contain on the
  3       reverse side blank spaces so that an abstract of mileage as to each owner
  4       will be available. The seller at the time of each sale shall insert the mileage
  5       on the form filed for application or reassignment of title, and the division
  6       shall insert such mileage on the certificate of title when issued to pur-
  7       chaser or assignee. The signature of the purchaser or assignee is required
  8       on the form filed for application or reassignment of title, acknowledging
  9       the odometer certification made by the seller, except that vehicles which
10       are 10 model years or older and trucks with a gross vehicle weight of
11       more than 16,000 pounds shall be exempt from the mileage acknowledg-
12       ment requirement of the purchaser or assignee. Such title shall indicate
13       whether the vehicle for which it is issued has been titled previously as a
14       nonhighway vehicle. In addition, the reverse side shall contain two forms
15       for reassignment by a dealer, stating the liens or encumbrances thereon.
16       The first form of reassignment shall be used only when a dealer sells the
17       vehicle to another dealer. The second form of reassignment shall be used
18       by a dealer when selling the vehicle to another dealer or the ultimate
19       owner of the vehicle. The reassignment by a dealer shall be used only
20       where the dealer resells the vehicle, and during the time that the vehicle
21       remains in the dealer's possession for resale, the certificate of title shall
22       be dormant. When the ownership of any vehicle passes by operation of
23       law, or repossession upon default of a lease, security agreement, or ex-
24       ecutory sales contract, the person owning such vehicle, upon furnishing
25       satisfactory proof to the county treasurer of such ownership, may procure
26       a certificate of title to the vehicle. When a vehicle is registered in another
27       state and is repossessed in another state, the owner of such vehicle shall
28       not be entitled to obtain a valid Kansas title or registration, except that
29       when a vehicle is registered in another state, but is financed originally by
30       a financial institution chartered in the state of Kansas or when a financial
31       institution chartered in Kansas purchases a pool of motor vehicle loans
32       from the resolution trust corporation or a federal regulatory agency, and
33       the vehicle is repossessed in another state, such Kansas financial institu-
34       tion shall be entitled to obtain a valid Kansas title or registration.
35           (3) Dealers shall execute, upon delivery to the purchaser of every new
36       vehicle, a manufacturer's statement of origin stating the liens and encum-
37       brances thereon. Such statement of origin shall be delivered to the pur-
38       chaser at the time of delivery of the vehicle or at a time agreed upon by
39       the parties, not to exceed 30 days, inclusive of weekends and holidays.
40       The agreement of the parties shall be executed on a form approved by
41       the division. In the event delivery of title cannot be made personally, the
42       seller may deliver the manufacturer's statement of origin by restricted
43       mail to the address of purchaser shown on the purchase agreement. The

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  1       manufacturer's statement of origin may include an attachment containing
  2       assignment of such statement of origin on forms approved by the division.
  3       Upon the presentation to the division of a manufacturer's statement of
  4       origin, by a manufacturer or dealer for a new vehicle, sold in this state, a
  5       certificate of title shall be issued if there is also an application for regis-
  6       tration, except that no application for registration shall be required for a
  7       travel trailer used for living quarters and not operated on the highways.
  8           (4) The fee for each original certificate of title shall be $7 until July
  9       1, 1999 2003, and $3.50 thereafter, in addition to the fee for registration
10       of such vehicle, trailer or semitrailer. The certificate of title shall be good
11       for the life of the vehicle, trailer or semitrailer while owned or held by
12       the original holder of the certificate of title.
13           (5) Upon sale and delivery to the purchaser of every vehicle subject
14       to a purchase money security interest as defined in K.S.A. 84-9-107, and
15       amendments thereto, the dealer or secured party may complete a notice
16       of security interest and when so completed, the purchaser shall execute
17       the notice, in a form prescribed by the division, describing the vehicle
18       and showing the name and address of the secured party and of the debtor
19       and other information the division requires. The dealer or secured party,
20       within 15 days of the sale and delivery, may mail or deliver the notice of
21       security interest, together with a fee of $2.50, to the division. The notice
22       of security interest shall be retained by the division until it receives an
23       application for a certificate of title to the vehicle and a certificate of title
24       is issued. The certificate of title shall indicate any security interest in the
25       vehicle. Upon issuance of the certificate of title, the division shall mail or
26       deliver confirmation of the receipt of the notice of security interest, the
27       date the certificate of title is issued and the security interest indicated, to
28       the secured party at the address shown on the notice of security interest.
29       The proper completion and timely mailing or delivery of a notice of se-
30       curity interest by a dealer or secured party shall perfect a security interest
31       in the vehicle described on the date of such mailing or delivery. The
32       county treasurers shall mail a copy of the title application to the Kansas
33       lienholder. Each county treasurer shall charge the Kansas lienholder a
34       $1.50 service fee for processing and mailing a copy of the title application
35       to the Kansas lienholder.
36           (6) It shall be unlawful for any person to operate in this state a vehicle
37       required to be registered under this act, or to transfer the title to any
38       such vehicle to any person or dealer, unless a certificate of title has been
39       issued as herein provided. In the event of a sale or transfer of ownership
40       of a vehicle for which a certificate of title has been issued, which certif-
41       icate of title is in the possession of the transferor at the time of delivery
42       of the vehicle, the holder of such certificate of title shall endorse on the
43       same an assignment thereof, with warranty of title in a form prescribed

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  1       by the division and printed thereon and the transferor shall deliver the
  2       same to the buyer at the time of delivery to the buyer of the vehicle or
  3       at a time agreed upon by the parties, not to exceed 30 days, inclusive of
  4       weekends and holidays, after the time of delivery. The agreement of the
  5       parties shall be executed on a form provided by the division. The require-
  6       ments of this paragraph concerning delivery of an assigned title are sat-
  7       isfied if the transferor mails to the transferee by restricted mail the as-
  8       signed certificate of title within the 30 days, and if the transferor is a
  9       dealer, as defined by K.S.A. 8-2401, and amendments thereto, such trans-
10       feror shall be deemed to have possession of the certificate of title if the
11       transferor has made application therefor to the division. The buyer shall
12       then present such assigned certificate of title to the division at the time
13       of making application for registration of such vehicle. A new certificate
14       of title shall be issued to the buyer, upon payment of the fee of $7 until
15       July 1, 1999 2003, and $3.50 thereafter. If such vehicle is sold to a resident
16       of another state or country, the dealer or person making the sale shall
17       notify the division of the sale and the division shall make notation thereof
18       in the records of the division. When a person acquires a security agree-
19       ment on a vehicle subsequent to the issuance of the original title on such
20       vehicle, such person shall require the holder of the certificate of title to
21       surrender the same and sign an application for a mortgage title in form
22       prescribed by the division. Upon such surrender such person shall im-
23       mediately deliver the certificate of title, application, and a fee of $7 until
24       July 1, 1999 2003, and $3.50 thereafter, to the division. Upon receipt
25       thereof, the division shall issue a new certificate of title showing the liens
26       or encumbrances so created, but not more than two liens or encum-
27       brances may be shown upon a title. When a prior lienholder's name is
28       removed from the title, there must be satisfactory evidence presented to
29       the division that the lien or encumbrance has been paid. When the in-
30       debtedness to a lienholder, whose name is shown upon a title, is paid in
31       full, such lienholder within 10 days after written demand by restricted
32       mail, shall furnish to the holder of the title a release of lien or execute
33       such a release in the space provided on the title. For failure to comply
34       with such a demand the lienholder shall be liable to the holder of the
35       title for $100 and also shall be liable for any loss caused to the holder by
36       such failure. When the indebtedness to a lienholder, whose name is
37       shown upon a title, is collected in full, such lienholder, within 30 days,
38       shall furnish notice to the holder of title that such indebtedness has been
39       paid in full and that such title may be presented to the lienholder at any
40       time for release of lien.
41           (7) It shall be unlawful for any person to buy or sell in this state any
42       vehicle required to be registered, unless, at the time of delivery thereof
43       or at a time agreed upon by the parties, not to exceed 30 days, inclusive

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  1       of weekends and holidays, after the time of delivery, there shall pass
  2       between the parties a certificate of title with an assignment thereof. The
  3       sale of a vehicle required to be registered under the laws of this state,
  4       without assignment of the certificate of title, is fraudulent and void, unless
  5       the parties shall agree that the certificate of title with assignment thereof
  6       shall pass between them at a time other than the time of delivery, but
  7       within 30 days thereof. The requirements of this paragraph concerning
  8       delivery of an assigned title shall be satisfied if (i) the seller mails to the
  9       purchaser by restricted mail the assigned certificate of title within 30 days,
10       or (ii) if the transferor is a dealer, as defined by K.S.A. 8-2401, and amend-
11       ments thereto, such seller shall be deemed to have possession of the
12       certificate of title if such seller has made application therefor to the di-
13       vision, or (iii) if the transferor is a dealer and has assigned a title pursuant
14       to paragraph (9) of this subsection (c).
15           (8) In cases of sales under the order of a court of a vehicle required
16       to be registered under this act, the officer conducting such sale shall issue
17       to the purchaser a certificate naming the purchaser and reciting the facts
18       of the sale, which certificate shall be prima facie evidence of the own-
19       ership of such purchaser for the purpose of obtaining a certificate of title
20       to such motor vehicle and for registering the same. Any such purchaser
21       shall be allowed 30 days, inclusive of weekends and holidays, from the
22       date of sale to make application to the division for a certificate of title
23       and for the registering of such motor vehicle.
24           (9) Any dealer who has acquired a vehicle, the title for which was
25       issued under the laws of and in a state other than the state of Kansas,
26       shall not be required to obtain a Kansas certificate of title therefor during
27       the time such vehicle remains in such dealer's possession and at such
28       dealer's place of business for the purpose of sale. The purchaser or trans-
29       feree shall present the assigned title to the division of vehicles when
30       making application for a certificate of title as provided in subsection (c)(1).
31           (10) Motor vehicles may be held and titled in transfer-on-death form.
32           Sec. 2. K.S.A. 1997 Supp. 8-135a is hereby amended to read as fol-
33       lows: 8-135a. A person in whose name a vehicle is titled and registered
34       may add their spouse's name by assigning the title from the titleholder
35       to titleholder and spouse and by applying for a name change title and
36       registration. A son or daughter in whose name a vehicle is titled and
37       registered may add a parent's name by assigning the title from such son
38       or daughter to such son or daughter and parent and by applying for a
39       name change title and registration. A parent may add a son or daughter's
40       name by assigning the title from such parent to such parent and parent's
41       son or daughter and by applying for a name change title and registration.
42       Application for name change title and registration shall be made in the
43       manner required by law, including certification of insurance coverage.

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  1       The fee shall be $7 until July 1, 1999 2003, and $3.50 thereafter, for the
  2       title, and no charge shall be made for the registration, except, when ap-
  3       plicable, the fee for transfer of registration under K.S.A. 8-135, and
  4       amendments thereto.
  5           Sec. 3. K.S.A. 1997 Supp. 8-139 is hereby amended to read as fol-
  6       lows: 8-139. In the event that any license plate, certificate of title, regis-
  7       tration decal or registration receipt issued hereunder, shall be lost, mu-
  8       tilated, or shall have become illegible, the person who is entitled thereto
  9       shall make immediate application for and obtain a duplicate or substitute
10       therefor, upon furnishing information of such fact satisfactory to the di-
11       vision and upon payment of the required fees: Namely, certificate of title,
12       $7 until July 1, 1999 2003, and $3.50 thereafter, registration receipt, $.50,
13       registration decal, $.50, license plates, $2. In case the license plate is of
14       such type or constructed in such a way that it is not reasonably possible
15       to remove it from the vehicle to which it is attached without destroying
16       or mutilating such license plate, and the ownership of such vehicle shall
17       be transferred and the license plate shall be mutilated or destroyed by
18       the owner thereof as a result of the owner's effort to comply with the
19       provisions of K.S.A. 8-135, and amendments thereto, by removing the
20       same from the vehicle so transferred, then and in such case no fee shall
21       be charged for such duplicate or substitute license plate, including any
22       registration decal affixed thereto, but the same shall be furnished free of
23       charge providing such person shall otherwise in all respects have complied
24       with the laws governing the transfer of ownership of such motor vehicle.
25           Sec. 4. K.S.A. 1997 Supp. 8-145 is hereby amended to read as fol-
26       lows: 8-145. (a) All registration and certificates of title fees shall be paid
27       to the county treasurer of the county in which the applicant for registra-
28       tion resides or has an office or principal place of business within this state,
29       and the county treasurer shall issue a receipt in triplicate, on blanks fur-
30       nished by the division of vehicles, one copy of which shall be filed in the
31       county treasurer's office, one copy shall be delivered to the applicant and
32       the original copy shall be forwarded to the director of vehicles.
33           (b) The county treasurer shall deposit $.75 of each license applica-
34       tion, $.75 out of each application for transfer of license plate and $2 out
35       of each application for a certificate of title, collected by such treasurer
36       under this act, in a special fund, which fund is hereby appropriated for
37       the use of the county treasurer in paying for necessary help and expenses
38       incidental to the administration of duties in accordance with the provi-
39       sions of this law and extra compensation to the county treasurer for the
40       services performed in administering the provisions of this act, which com-
41       pensation shall be in addition to any other compensation provided by any
42       other law, except that the county treasurer shall receive as additional
43       compensation for administering the motor vehicle title and registration

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  1       laws and fees, a sum computed as follows: The county treasurer, during
  2       the month of December, shall determine the amount to be retained for
  3       extra compensation not to exceed the following amounts each year for
  4       calendar year 1990 or any calendar year thereafter: The sum of $60 per
  5       hundred registrations for the first 5,000 registrations; the sum of $45 per
  6       hundred registrations for the next 5,000 registrations; and the sum of $2
  7       per hundred registrations for all registrations thereafter. In no event,
  8       however, shall any county treasurer be entitled to receive more than
  9       $9,800 additional annual compensation.
10           If more than one person shall hold the office of county treasurer during
11       any one calendar year, such compensation shall be prorated among such
12       persons in proportion to the number of weeks served. The total amount
13       of compensation paid the treasurer together with the amounts expended
14       in paying for other necessary help and expenses incidental to the admin-
15       istration of the duties of the county treasurer in accordance with the
16       provisions of this act, shall not exceed the amount deposited in such spe-
17       cial fund. Any balance remaining in such fund at the close of any calendar
18       year shall be withdrawn and credited to the general fund of the county
19       prior to June 1 of the following calendar year.
20           (c) The county treasurer shall remit the remainder of all such fees
21       collected, together with the original copy of all applications, to the sec-
22       retary of revenue. Except as provided in subsection (d), all such fees
23       remitted to the secretary of revenue shall be deposited with the state
24       treasurer and credited to the state highway fund.
25           (d) (1) On July 1, 1996, through June 30, 1997, $2.35 of each certif-
26       icate of title fee collected and remitted to the secretary of revenue, shall
27       be deposited with the state treasurer and credited to the Kansas highway
28       patrol motor vehicle fund, and $1.15 of each certificate of title fee col-
29       lected and remitted to the secretary of revenue, shall be deposited with
30       the state treasurer and credited to the VIPS/CAMA technology hardware
31       fund.
32           (2) On July 1, 1997, through June 30, 1999 2003, $2.50 of each cer-
33       tificate of title fee collected and remitted to the secretary of revenue,
34       shall be deposited with the state treasurer and credited to the Kansas
35       highway patrol motor vehicle fund, and, $1 of each certificate of title fee
36       collected and remitted to the secretary of revenue, shall be deposited
37       with the state treasurer and credited to the VIPS/CAMA technology hard-
38       ware fund.
39           Sec. 5. K.S.A. 1997 Supp. 8-170 is hereby amended to read as fol-
40       lows: 8-170. (a) Upon the transfer of ownership of any vehicle registered
41       under the foregoing provisions of this act, its registration and right to use
42       the license plates thereon shall expire and thereafter there shall be no
43       transfer of any registration, and the license plates shall be removed by

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  1       the owner thereof and it shall be unlawful for any person other than the
  2       person to whom such license plates were originally issued to have the
  3       same in possession. In case of a transfer of ownership of a registered
  4       vehicle the original owner of the license plates may register another an-
  5       tique vehicle under the same license plate designation, upon application
  6       therefor and the payment of a fee of $1.50.
  7           (b) Upon the transfer and sale of a registered vehicle by any person,
  8       the new owner thereof, before using a vehicle on the highways of this
  9       state, shall make application to the division for registration of the vehicle.
10           (c) Certificate of title:
11           (1) Application for certificate of title on an antique vehicle shall be
12       made by the owner or the owner's agent upon a blank form to be fur-
13       nished by the division and shall contain such information as the division
14       shall determine necessary. The division may waive any information re-
15       quested on the form if it is not available. The application together with a
16       bill of sale for the antique vehicle shall be accepted as prima facie evi-
17       dence that the applicant is the owner of the vehicle. The certificate of
18       title shall be delivered to the applicant. The certificate shall contain the
19       words ``antique vehicle.''
20           (2) The certificate of title shall contain upon the reverse side a form
21       for assignment of title to be executed by the owner before a notary public
22       or some other officer authorized to administer an oath. A certificate of
23       title may be issued under the provisions of this act without an application
24       for registration.
25           (3) The fee for each original certificate of title so issued shall be $7
26       until July 1, 1999 2003, and $3.50 thereafter. The certificate of title shall
27       be good for the life of the antique vehicle, so long as the same is owned
28       or held by the original holder of the certificate of title, and shall not have
29       to be renewed. In the event of a sale or transfer of ownership of an antique
30       vehicle for which a certificate of title has been issued, the holder of such
31       certificate of title shall endorse on the same an assignment thereof, with
32       warranty of title in form printed thereon, as prescribed by the director,
33       and the transferor must deliver the same to the buyer at the time of
34       delivery of the vehicle. The buyer shall then present such certificate of
35       title, assigned as aforesaid, to the director or an authorized agent of the
36       director, whereupon a new certificate of title shall be issued to the buyer,
37       the fee therefor being $7 until July 1, 1999 2003, and $3.50 thereafter.
38           Sec. 6. K.S.A. 1997 Supp. 8-171 is hereby amended to read as fol-
39       lows: 8-171. In the event that any license plate, certificate of title or
40       registration receipt issued hereunder, shall be lost, mutilated, or shall
41       have become illegible, the person who is entitled thereto shall make im-
42       mediate application for and obtain a duplicate therefor, upon furnishing
43       information of such fact satisfactory to the division and upon payment of

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  1       the required fees: Namely, certificate of title, $7 until July 1, 1999 2003,
  2       and $3.50 thereafter, registration receipt, $1, license plates, $2.
  3           Sec. 7. K.S.A. 1997 Supp. 8-198 is hereby amended to read as fol-
  4       lows: 8-198. (a) A nonhighway vehicle shall not be required to be regis-
  5       tered in this state, as provided in K.S.A. 8-135, and amendments thereto,
  6       but nothing in this section shall be construed as abrogating, limiting or
  7       otherwise affecting the provisions of K.S.A. 8-142, and amendments
  8       thereto, which make it unlawful for any person to operate or knowingly
  9       permit the operation in this state of a vehicle required to be registered
10       in this state.
11           (b) Upon the sale or transfer of any nonhighway vehicle, the pur-
12       chaser thereof shall obtain a nonhighway certificate of title in the follow-
13       ing manner:
14           (1) If the transferor is a vehicle dealer, as defined in K.S.A. 8-2401,
15       and amendments thereto, and a certificate of title has not been issued for
16       such vehicle under this section or under the provisions of K.S.A. 8-135,
17       and amendments thereto, such transferor shall make application for and
18       assign a nonhighway certificate of title to the purchaser of such nonhigh-
19       way vehicle in the same manner and under the same conditions pre-
20       scribed by K.S.A. 8-135, and amendments thereto, for the application for
21       and assignment of a certificate of title thereunder. Upon the assignment
22       thereof, the purchaser shall make application for a new nonhighway cer-
23       tificate of title, as provided in subsection (c).
24           (2) Except as provided in subsection (b) of K.S.A. 8-199, and amend-
25       ments thereto, if a certificate of title has been issued for any such vehicle
26       under the provisions of K.S.A. 8-135, and amendments thereto, the owner
27       of such nonhighway vehicle may surrender such certificate of title to the
28       division of vehicles and make application to the division for a nonhighway
29       certificate of title, or the owner may obtain from the county treasurer's
30       office a form prescribed by the division of vehicles and, upon proper
31       execution thereof, may assign the nonhighway certificate of title or the
32       regular certificate of title with such form attached to the purchaser of the
33       nonhighway vehicle. Upon receipt of the nonhighway certificate of title
34       or the regular certificate of title with such form attached, the purchaser
35       shall make application for a new nonhighway certificate of title as pro-
36       vided in subsection (c).
37           (3) If the transferor is not a vehicle dealer, as defined in K.S.A. 8-
38       2401, and amendments thereto, and a certificate of title has not been
39       issued for the vehicle under this section or a certificate of title was not
40       required under K.S.A. 8-135, and amendments thereto, the transferor
41       shall make application to the division for a nonhighway certificate of title
42       as provided in this section, except that in addition thereto, the division
43       shall require a bill of sale or such transferor's affidavit, with at least one

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  1       other corroborating affidavit, that such transferor is the owner of such
  2       nonhighway vehicle. If the division is satisfied that the transferor is the
  3       owner, the division shall issue a nonhighway certificate of title for such
  4       vehicle, and the transferor shall assign the same to the purchaser, who
  5       shall make application for a new nonhighway certificate of title, as pro-
  6       vided in subsection (c).
  7           (c) Every purchaser of a nonhighway vehicle, whether assigned a non-
  8       highway certificate of title or a regular certificate of title with the form
  9       specified in paragraph (2) of subsection (b) attached, shall make appli-
10       cation to the county treasurer of the county in which such person resides
11       for a new nonhighway certificate of title in the same manner and under
12       the same conditions as for an application for a certificate of title under
13       K.S.A. 8-135, and amendments thereto. Such application shall be in the
14       form prescribed by the director of vehicles and shall contain substantially
15       the same provisions as required for an application under subsection (c)(1)
16       of K.S.A. 8-135, and amendments thereto. In addition, such application
17       shall provide a place for the applicant to certify that the vehicle for which
18       the application for a nonhighway certificate of title is made is a nonhigh-
19       way vehicle, and other provisions the director deems necessary. Each
20       application for a nonhighway certificate of title shall be accompanied by
21       a fee of $7 until July 1, 1999 2003, and $3.50 thereafter, and if the ap-
22       plication is not made to the county treasurer within the time prescribed
23       by K.S.A. 8-135, and amendments thereto, for making application for a
24       certificate of title thereunder, an additional fee of $2.
25           (d) A nonhighway certificate of title shall be in form and color as
26       prescribed by the director of vehicles. A nonhighway certificate of title
27       shall indicate clearly and distinctly on its face that it is issued for a non-
28       highway vehicle. A nonhighway certificate of title shall contain substan-
29       tially the same information as required on a certificate of title issued
30       under K.S.A. 8-135, and amendments thereto, and other information the
31       director deems necessary.
32           (e) A nonhighway certificate of title may be transferred in the same
33       manner and under the same conditions as prescribed by K.S.A. 8-135,
34       and amendments thereto, for the transfer of a certificate of title, except
35       as otherwise provided in this section. A nonhighway certificate of title
36       may be assigned and transferred only while the vehicle remains a non-
37       highway vehicle. Upon transfer or sale of a nonhighway vehicle which has
38       been rebuilt or restored or is otherwise in a condition which will allow
39       the registration of such vehicle, the owner shall assign the nonhighway
40       certificate of title to the purchaser, and the purchaser shall obtain a cer-
41       tificate of title and register such vehicle as provided in K.S.A. 8-135, and
42       amendments thereto. No regular certificate of title shall be issued for a
43       vehicle for which there has been issued a nonhighway certificate of title

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  1       until there has been compliance with K.S.A. 8-116a, and amendments
  2       thereto.
  3           (f) The owner of a vehicle which has been assembled, reconstructed,
  4       reconstituted or restored or otherwise placed in an operable condition
  5       may make application to the county treasurer for a permit to operate such
  6       vehicle on the highways of this state over the most direct route from the
  7       place such nonhighway vehicle is located to a specified location named
  8       on the permit and to return to the original location. No such permit shall
  9       be issued for any vehicle unless the owner has motor vehicle liability
10       insurance coverage or an approved self-insurance plan under K.S.A. 40-
11       3104, and amendments thereto. Such permit shall be on a form furnished
12       by the director of vehicles and shall state the date the vehicle is to be
13       taken to the other location, the name of the insurer, as defined in K.S.A.
14       40-3103, and amendments thereto, and the policy number or a statement
15       that the vehicle is included in a self-insurance plan approved by the com-
16       missioner of insurance, a statement attesting to the correctness of the
17       information concerning financial security, the vehicle identification num-
18       ber and a description of the vehicle. Such permit shall be signed by the
19       owner of the vehicle. Permits issued under this subsection (f) shall be
20       prepared in triplicate. One copy shall be carried in the vehicle for which
21       it is issued and shall be displayed so that it is visible from the rear of the
22       vehicle. The second copy shall be retained by the county treasurer, and
23       the third copy shall be forwarded by the county treasurer to the division
24       of vehicles. The fee for such permit shall be $1 which shall be retained
25       by the county treasurer, who shall annually forward 25% of all such fees
26       collected to the division of vehicles to reimburse the division for admin-
27       istrative expenses, and shall deposit the remainder in a special fund for
28       expenses of issuing such permits.
29           (g) A nonhighway vehicle for which a nonhighway certificate of title
30       has been issued pursuant to this section shall not be deemed a motor
31       vehicle for the purposes of K.S.A. 40-3101 to 40-3121, inclusive, and
32       amendments thereto, except when such vehicle is being operated pur-
33       suant to subsection (f). Any person who knowingly makes a false state-
34       ment concerning financial security in obtaining a permit pursuant to sub-
35       section (f), or who fails to obtain a permit when required by law to do so
36       is guilty of a class C misdemeanor.
37           (h) Any person who, on July 1, 1996, is the owner of an all-terrain
38       vehicle, as defined in K.S.A. 8-126, and amendments thereto, shall not be
39       required to file an application for a nonhighway certificate of title under
40       the provisions of this section for such all-terrain vehicle, unless the person
41       transfers an interest in such all-terrain vehicle.
42           Sec. 8. K.S.A. 1997 Supp. 74-2013 is hereby amended to read as
43       follows: 74-2013. Upon application signed by the owner or the owner's

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  1       agent and payment of a fee of $7 until July 1, 1999 2003, and $3.50
  2       thereafter, and surrender of the original title together with satisfactory
  3       evidence that the lien has been paid, the department is hereby authorized
  4       to grant a reissue of a certificate of title showing the vehicle to be clear
  5       of any lien.
  6           Sec. 9. K.S.A. 1997 Supp. 8-135, 8-135a, 8-139, 8-145, 8-170, 8-171,
  7       8-198, 8-198a and 74-2013 are hereby repealed.
  8           Sec. 10. This act shall take effect and be in force from and after its
  9       publication in the statute book.
10