Session of 1998
                   
SENATE BILL No. 389
         
By Senator Harrington
         
10-9
            9             AN ACT relating to motor vehicles; concerning certificates of title;
10             amending K.S.A. 1997 Supp. 8-135 and repealing the existing section.
11            
12       Be it enacted by the Legislature of the State of Kansas:
13           Section 1. K.S.A. 1997 Supp. 8-135 is hereby amended to read as
14       follows: 8-135. (a) Upon the transfer of ownership of any vehicle regis-
15       tered under this act, the registration of the vehicle and the right to use
16       any license plate thereon shall expire and thereafter there shall be no
17       transfer of any registration, and the license plate shall be removed by the
18       owner thereof. It shall be unlawful for any person, other than the person
19       to whom the license plate was originally issued, to have possession
20       thereof. When the ownership of a registered vehicle is transferred, the
21       original owner of the license plate may register another vehicle under the
22       same number, upon application and payment of a fee of $1.50, if such
23       other vehicle does not require a higher license fee. If a higher license fee
24       is required, then the transfer may be made upon the payment of the
25       transfer fee of $1.50 and the difference between the fee originally paid
26       and that due for the new vehicle.
27           (b) Subject to the provisions of subsection (a) of K.S.A. 8-198, and
28       amendments thereto, upon the transfer or sale of any vehicle by any
29       person or dealer, or upon any transfer in accordance with K.S.A. 1997
30       Supp. 59-3511, the new owner thereof, within 30 days, inclusive of week-
31       ends and holidays, from date of such transfer shall make application to
32       the division for registration or reregistration of the vehicle, but no person
33       shall operate the vehicle on any highway in this state during the thirty-
34       day period without having applied for and obtained temporary registration
35       from the county treasurer or from a dealer. After the expiration of the
36       thirty-day period, it shall be unlawful for the owner or any other person
37       to operate such vehicle upon the highways of this state unless the vehicle
38       has been registered as provided in this act. For failure to make application
39       for registration as provided in this section, a penalty of $2 shall be added
40       to other fees. When a person has a current motorcycle or passenger ve-
41       hicle registration and license plate, including any registration decal affixed
42       thereto, for a vehicle and has sold or otherwise disposed of the vehicle
43       and has acquired another motorcycle or passenger vehicle and intends to

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

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

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

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

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