Session of 1999
         
HOUSE BILL No. 2153
         
By Representative Carmody
          
1-27
          
  9             AN  ACT concerning certificates of title; relating to the assignment of
10             titles; liability; amending K.S.A. 1998 Supp. 8-135 and repealing the
11             existing section.
12      
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. K.S.A. 1998 Supp. 8-135 is hereby amended to read as
15       follows: 8-135. (a) Upon the transfer of ownership of any vehicle regis-
16       tered under this act, the registration of the vehicle and the right to use
17       any license plate thereon shall expire and thereafter there shall be no
18       transfer of any registration, and the license plate shall be removed by the
19       owner thereof. Except as provided in K.S.A. 8-172, and amendments
20       thereto, and K.S.A. 1998 Supp. 8-1,147, it shall be unlawful for any per-
21       son, other than the person to whom the license plate was originally issued,
22       to have possession thereof. When the ownership of a registered vehicle
23       is transferred, the original owner of the license plate may register another
24       vehicle under the same number, upon application and payment of a fee
25       of $1.50, if such other vehicle does not require a higher license fee. If a
26       higher license fee is required, then the transfer may be made upon the
27       payment of the transfer fee of $1.50 and the difference between the fee
28       originally paid 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. 1998
32       Supp. 59-3511, and amendments thereto, the new owner thereof, within
33       30 days, inclusive of weekends and holidays, from date of such transfer
34       shall make application to the division for registration or reregistration of
35       the vehicle, but no person shall operate the vehicle on any highway in
36       this state during the thirty-day period without having applied for and
37       obtained temporary registration from the county treasurer or from a
38       dealer. After the expiration of the thirty-day period, it shall be unlawful
39       for the owner or any other person to operate such vehicle upon the high-
40       ways of this state unless the vehicle has been registered as provided in
41       this act. For failure to make application for registration as provided in
42       this section, a penalty of $2 shall be added to other fees. When a person
43       has a current motorcycle or passenger vehicle registration and license

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

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

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

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

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  1             (7) It shall be unlawful for any person to buy or sell in this state any
  2       vehicle required to be registered, unless, at the time of delivery thereof
  3       or at a time agreed upon by the parties, not to exceed 30 days, inclusive
  4       of weekends and holidays, after the time of delivery, there shall pass
  5       between the parties a certificate of title with an assignment thereof. The
  6       sale of a vehicle required to be registered under the laws of this state,
  7       without assignment of the certificate of title, is fraudulent and void, unless
  8       the parties shall agree that the certificate of title with assignment thereof
  9       shall pass between them at a time other than the time of delivery, but
10       within 30 days thereof. The requirements of this paragraph concerning
11       delivery of an assigned title shall be satisfied if (i) the seller mails to the
12       purchaser by restricted mail the assigned certificate of title within 30 days,
13       or (ii) if the transferor is a dealer, as defined by K.S.A. 8-2401, and amend-
14       ments thereto, such seller shall be deemed to have possession of the
15       certificate of title if such seller has made application therefor to the di-
16       vision, or (iii) if the transferor is a dealer and has assigned a title pursuant
17       to paragraph (9) of this subsection (c).
18             (8) In cases of sales under the order of a court of a vehicle required
19       to be registered under this act, the officer conducting such sale shall issue
20       to the purchaser a certificate naming the purchaser and reciting the facts
21       of the sale, which certificate shall be prima facie evidence of the own-
22       ership of such purchaser for the purpose of obtaining a certificate of title
23       to such motor vehicle and for registering the same. Any such purchaser
24       shall be allowed 30 days, inclusive of weekends and holidays, from the
25       date of sale to make application to the division for a certificate of title
26       and for the registering of such motor vehicle.
27             (9) Any dealer who has acquired a vehicle, the title for which was
28       issued under the laws of and in a state other than the state of Kansas,
29       shall not be required to obtain a Kansas certificate of title therefor during
30       the time such vehicle remains in such dealer's possession and at such
31       dealer's place of business for the purpose of sale. The purchaser or trans-
32       feree shall present the assigned title to the division of vehicles when
33       making application for a certificate of title as provided in subsection (c)(1).
34             (10) Motor vehicles may be held and titled in transfer-on-death form.
35             (11) Notwithstanding the provisions of this act with respect to time
36       requirements for delivery of a certificate of title, or manufacturer's state-
37       ment of origin, as applicable, any person who chooses to reaffirm the sale
38       in writing on a form approved by the division which advises them of their
39       rights pursuant to paragraph (7) of subsection (c) and who has received
40       and accepted assignment of the certificate of title or manufacturer's state-
41       ment of origin for the vehicle in issue may not thereafter void or set aside
42       the transaction with respect to the vehicle for the reason that a certificate
43       of title or manufacturer's statement of origin was not timely delivered,

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  1       and in such instances the sale of a vehicle shall not be deemed to be
  2       fraudulent and void for that reason alone.
  3             (12) The owner of any vehicle assigning a certificate of title in ac-
  4       cordance with the provisions of this section may file with the division a
  5       form indicating that such owner has assigned such certificate of title. Such
  6       forms shall be furnished by the division and shall contain such information
  7       as the division may require. The filing of such form shall be prima facie
  8       evidence that such certificate of title was assigned and shall create a re-
  9       buttable presumption. If the assignee of a certificate of title fails to make
10       application for registration, an owner assigning such title and filing the
11       form provided by this paragraph shall not be held liable for damages
12       resulting from the operation of such vehicle.  
13       Sec.  2. K.S.A. 1998 Supp. 8-135 is hereby repealed.
14        Sec.  3. This act shall take effect and be in force from and after its
15       publication in the statute book.