[As Amended by House Committee of the Whole]

         
As Amended by House Committee
         
Session of 2000
         
HOUSE BILL No. 2561
         
By Committee on Federal and State Affairs
         
3-17
         

11             AN  ACT relating to motor vehicles; concerning certificates of title;
12             amending K.S.A. 1998 8-199 and K.S.A. 1999 Supp. 8-197 and 8-
13             198 and repealing the existing sections; also repealing K.S.A. 8-1,136.
14      
15       Be it enacted by the Legislature of the State of Kansas:
16             New Section  1. (a) The provisions of sections 1 through 6, and
17       amendments thereto, shall be a part of and supplemental to the provisions
18       of article 1 of chapter 8 of the Kansas Statutes Annotated, and as used in
19       such sections, the words and phrases defined by K.S.A. 8-126, and amend-
20       ments thereto, shall have the meanings respectively ascribed to them
21       therein.
22             (b) As used in sections 1 through 6, and amendments thereto:
23             (1) ``Salvage vehicle'' means: (A) Any late model motor vehicle which
24       has been damaged, destroyed, wrecked, burned or submerged in water
25       to the extent that the total estimated or actual cost of parts and labor to
26       rebuild or reconstruct the vehicle to its preaccident condition and for
27       legal operation on the roads or highways exceeds 65% 75% of the retail
28       value of such motor vehicle prior to such damage, as set forth in a current
29       edition of any nationally recognized compilation, including automated
30       data bases, of retail values, as approved by the division. The value of repair
31       parts for purposes of this paragraph shall be determined by using the
32       current published retail cost of the original equipment manufacturer parts
33       or the actual retail cost of the repair parts to be used in the repair. The
34       labor cost of repairs for purposes of this subsection shall be computed by
35       using the hourly labor rate and time allocations that are reasonable and
36       customary in the automobile repair industry in the community where the
37       repairs are performed; or
38             (B) any motor vehicle, without regard to whether such vehicle meets
39       the preceding 65% 75% threshold which:
40             (i) An insurance company acquires ownership pursuant to a damage
41       settlement, not including a settlement in connection with a recovered
42       theft vehicle, unless such motor vehicle sustained sufficient damage to


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  1       meet the 65% threshold; or
  2             (ii) the vehicle owner designates as a salvage vehicle by obtaining a
  3       salvage title, without regard to the extent of the motor vehicle's damage
  4       and repairs;
  5             (2) ``salvage title'' means a certificate of title issued by the division
  6       designating a motor vehicle a salvage vehicle;
  7             (3) ``rebuilt salvage vehicle'' means any motor vehicle previously is-
  8       sued a salvage title, which has complied with the provisions of K.S.A. 8-
  9       116a, and amendments thereto;
10             (4) ``rebuilt salvage title'' means a certificate of title issued by the
11       division for a vehicle previously designated a salvage vehicle which has
12       complied with the provisions of K.S.A. 8-116a, and amendments thereto,
13       and is now designated a rebuilt salvage vehicle;
14             (5) ``nonrepairable vehicle'' means any motor vehicle which: (A) Has
15       been damaged, destroyed, wrecked, burned or submerged in water to the
16       extent that the total estimated or actual cost of parts and labor to rebuild
17       or reconstruct the vehicle to its preaccident condition and for legal op-
18       eration on the roads or highways exceeds 85% of the retail value of such
19       motor vehicle prior to such damage, as set forth in a current edition of
20       any nationally recognized compilation, including automated data bases,
21       of retail values, as approved by the division and is Is [Has been dam-
22       aged, destroyed, wrecked, burned or submerged in water to the
23       extent that such motor vehicle is] incapable of safe operation for use
24       on roads or highways and has no resale value except as a source of parts
25       or scrap only; or (B) the owner irreversibly designates as a source of parts
26       or scrap. The value of repair parts for purposes of this paragraph shall be
27       determined by using the current published retail cost of the original
28       equipment manufacturer parts or the actual retail cost of the repair parts
29       to be used in the repair. The labor cost of repairs for purposes of this
30       subsection shall be computed by using the hourly labor rate and time
31       allocations that are reasonable and customary in the automobile repair
32       industry in the community where the repairs are performed; and;
33             (6) ``nonrepairable vehicle certificate'' means a motor vehicle own-
34       ership document issued by the division designating that vehicle a non-
35       repairable vehicle.; and
36             (7) ``late model motor vehicle'' means a motor vehicle which
37       has a manufacturer's model year designation of or later than the
38       year in which the vehicle was damaged, destroyed, wrecked,
39       burned or submerged in water or any of the six preceding years.
40             New Sec.  2. (a) Unless an insurance company has made a damage
41       settlement arising out of damage sustained to a salvage vehicle or a non-
42       repairable vehicle, the vehicle owner Except as otherwise provided by
43       this section, the owner of a vehicle that meets the definition of a


3

  1       salvage vehicle or nonrepairable vehicle shall apply to the division
  2       for a salvage title or nonrepairable vehicle certificate, whichever is appli-
  3       cable, before the motor vehicle is repaired or the ownership of the motor
  4       vehicle is transferred. In no event shall such application be made more
  5       than 30 days after the vehicle is damaged.
  6             (b) Every insurance company, which pursuant to a damage settle-
  7       ment, acquires ownership of a vehicle that has incurred damage requiring
  8       the vehicle to be designated a salvage vehicle or nonrepairable vehicle,
  9       shall apply to the division for a salvage title or nonrepairable vehicle cer-
10       tificate within 15 30 days after the title is assigned and delivered by the
11       owner to the insurance company, with all liens released.
12             (c) Every insurance company which makes a damage settlement for
13       a vehicle that has incurred damage requiring such vehicle to be desig-
14       nated a salvage vehicle or nonrepairable vehicle, but does not acquire
15       ownership of the vehicle, shall notify the vehicle owner of the owner's
16       obligation to apply to the department for a salvage title or nonrepairable
17       vehicle certificate for the motor vehicle, and shall notify the division of
18       this fact in accordance with procedures established by the division. The
19       vehicle owner shall apply to the division for a salvage title or non-
20       repairable vehicle certificate within 30 days after being notified
21       by the insurance company.
22             (d) The lessee of any vehicle which incurs damage requiring the ve-
23       hicle to be designated a salvage vehicle or nonrepairable vehicle shall
24       notify the lessor of this fact within 30 days of the damage.
25             (e) The lessor of any motor vehicle which has incurred damage re-
26       quiring the vehicle to be titled as a salvage vehicle or nonrepairable ve-
27       hicle, shall apply to the division for a salvage title or nonrepairable vehicle
28       certificate within 30 days after being notified of this fact by the lessee.
29             (f) Every person acquiring ownership of a motor vehicle that meets
30       the definition of a salvage vehicle or nonrepairable vehicle, for which a
31       salvage title or nonrepairable vehicle certificate has not been issued, shall
32       apply to the division for the required document prior to any further trans-
33       fer of such vehicle, but in no event, more than 30 days after ownership
34       is acquired.
35             (g) Failure to apply for a salvage title or nonrepairable vehicle
36       certificate as provided by this section shall be a class C nonperson
37       misdemeanor.
38             New Sec.  3. (a) Upon notification of a vehicle's designation as a sal-
39       vage vehicle or nonrepairable vehicle, the division shall issue a salvage
40       title or nonrepairable vehicle certificate.
41             (b) Each salvage vehicle title issued by the division shall, in addition
42       to complying with requirements of K.S.A. 8-135, and amendments
43       thereto, be conspicuously labeled with this designation on the face of the


4

  1       title.
  2             (c) Each nonrepairable vehicle certificate shall contain the same iden-
  3       tifying information and comply with format, size and security require-
  4       ments applicable to certificates of title under K.S.A. 8-135, and amend-
  5       ments thereto, and shall be conspicuously labeled with this designation
  6       on the face of the certificate.
  7             (d) The designation of a motor vehicle's status shall be conspicuously
  8       labeled on the face of any subsequent title, including any duplicate title,
  9       issued by the division for the vehicle.
10             (e) Each application for a salvage vehicle title or nonrepairable ve-
11       hicle certificate shall be accompanied by the fee required for an original
12       certificate of title under K.S.A. 8-135, and amendments thereto, and if
13       the application is not made to the county treasurer within the time pre-
14       scribed by section 2, an additional fee of $2.
15             New Sec.  4. (a) No motor vehicle for which a salvage title has been
16       issued shall be registered by the division for use on the roads or highways
17       of this state unless it has been issued a rebuilt salvage title.
18             (b) The ownership of a salvage vehicle shall only be transferred
19       through the use of a salvage title.
20             (c) No salvage vehicle shall be issued a rebuilt salvage title unless the
21       salvage vehicle has been repaired or rebuilt and complied with the pro-
22       visions of K.S.A. 8-116a, and amendments thereto.
23             (d) The owner of a rebuilt salvage vehicle may make application to
24       the county treasurer for a permit to operate such vehicle on the highways
25       of this state over the most direct route from the place such rebuilt salvage
26       vehicle is located to a specified location named on the permit and to
27       return to the original location. No such permit shall be issued for any
28       vehicle unless the owner has motor vehicle liability insurance coverage
29       or an approved self-insurance plan under K.S.A. 40-3104, and amend-
30       ments thereto. Such permit shall be on a form furnished by the director
31       of vehicles and shall state the date the vehicle is to be taken to the other
32       location, the name of the insurer, as defined in K.S.A. 40-3103, and
33       amendments thereto, and the policy number or a statement that the ve-
34       hicle is included in a self-insurance plan approved by the commissioner
35       of insurance, a statement attesting to the correctness of the information
36       concerning financial security, the vehicle identification number and a de-
37       scription of the vehicle. Such permit shall be signed by the owner of the
38       vehicle. The permit shall be carried in the vehicle for which it is issued
39       and shall be displayed so that it is visible from the rear of the vehicle. A
40       copy of the permit shall be retained by the county treasurer. The fee for
41       such permit shall be $1 which shall be retained by the county treasurer.
42             New Sec.  5. (a) No motor vehicle for which a nonrepairable vehicle
43       certificate has been issued shall be titled or registered by the division for


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  1       use on the roads or highways of this state.
  2             (b) Ownership of the motor vehicle for which a nonrepairable vehicle
  3       certificate has been issued may only be transferred once.
  4             (c) Any motor vehicle transferred through the use of a nonrepairable
  5       vehicle certificate shall be dismantled, disassembled or recycled and may
  6       not be sold as a unit at retail. Such unit may be sold as a unit by a salvage
  7       vehicle dealer, as defined in K.S.A. 8-2401, and amendments thereto, to
  8       a scrap processor for recycling after the salvageable parts have been re-
  9       moved by such salvage vehicle dealer.
10             The salvage vehicle dealer When the nonrepairable vehicle has
11       been dismantled, disassembled or recycled the owner shall surren-
12       der the nonrepairable vehicle certificate to the division with the word
13       recycled written or stamped across its face and no certificate of title of
14       any type shall be issued nor any registration allowed again for such
15       vehicle.
16             (d) A nonrepairable vehicle certificate may be used to transfer own-
17       ership of a motor vehicle 10 or more model years of age, in accordance
18       with this section, when the owner does not have a certificate of title in
19       the owner's possession.
20             New Sec.  6. (a) The division shall not issue a rebuilt salvage title for
21       a motor vehicle with a salvage title unless the vehicle has complied with
22       the provisions of K.S.A. 8-116a, and amendments thereto. A motor ve-
23       hicle for which a rebuilt salvage title has been issued may be registered
24       for use on the roads and highways of this state.
25             (b) Upon satisfaction of the requirements in subsection (a), the di-
26       vision shall issue a rebuilt salvage title, and shall maintain this designation
27       as a permanent part of the vehicle's record.
28             (c) Each rebuilt salvage title issued by the division shall, in addition
29       to complying with requirements of K.S.A. 8-135, and amendments
30       thereto, be conspicuously labeled with the designation ``rebuilt salvage
31       vehicle'' on the face of the title.
32             (d) Ownership of a rebuilt salvage vehicle shall only be conveyed
33       through the use of a rebuilt salvage title.
34             (e) Each application for a rebuilt salvage title shall be accompanied
35       by the fee required for an original certificate of title under K.S.A. 8-135,
36       and amendments thereto.
37             New Sec.  7. The secretary of the department of revenue may adopt
38       rules and regulations as the secretary deems necessary to carry out the
39       provisions of sections 1 through 6, and amendments thereto.
40             Sec.  8. K.S.A. 1998 1999 Supp. 8-197 is hereby amended to read as
41       follows: 8-197. (a) The provisions of K.S.A. 8-197 to 8-199, inclusive, and
42       amendments thereto, shall be a part of and supplemental to the provisions
43       of article 1 of chapter 8 of the Kansas Statutes Annotated, and as used in


6

  1       such sections, the words and phrases defined by K.S.A. 8-126, and amend-
  2       ments thereto, shall have the meanings respectively ascribed to them
  3       therein.
  4             (b) As used in this act, the term ``nonhighway vehicle'' means:
  5             (1) Any motor vehicle which is of a type required to be registered in
  6       this state, but which cannot be registered because it is not manufactured
  7       for the purpose of using the same on the highways of this state and is not
  8       provided with the equipment required by state statute for vehicles of such
  9       type which are used on the highways of this state;
10             (2) any motor vehicle which is of a type required to be registered in
11       this state, but which cannot be registered because it has been wrecked
12       or damaged to the extent that: the equipment required by state statute
13       on any such vehicle used on the highways of this state is not present or
14       is not in good condition or proper adjustment, as prescribed by state
15       statute or any rules and regulations adopted pursuant thereto, or such
16       vehicle is in an inoperable condition or a condition that would render the
17       operation thereof on the highways of this state a hazard to the public
18       safety; and in either event, such vehicle either will be destroyed, disman-
19       tled or sold as junk or substantial repairs will be required to rebuild or
20       restore such vehicle to a condition which will permit the registration
21       thereof the owner has not provided motor vehicle liability insur-
22       ance coverage or an approved self insurance plan under K.S.A. 40-
23       3104, and amendments thereto, and has not applied for or ob-
24       tained registration of such motor vehicle in accordance with article
25       1 of chapter 8 of the Kansas Statutes Annotated; or
26             (3) any all-terrain vehicle.
27             (4) The term ``nonhighway vehicle'' shall not include any motor
28       vehicle which is defined under the provisions of section 2, and
29       amendments thereto.
30             Sec.  9. K.S.A. 1998 Supp. 8-198 is hereby amended to read as fol-
31       lows: 8-198. (a) A nonhighway vehicle shall not be required to be regis-
32       tered in this state, as provided in K.S.A. 8-135, and amendments thereto,
33       but nothing in this section shall be construed as abrogating, limiting or
34       otherwise affecting the provisions of K.S.A. 8-142, and amendments
35       thereto, which make it unlawful for any person to operate or knowingly
36       permit the operation in this state of a vehicle required to be registered
37       in this state.
38             (b) Upon the sale or transfer of any nonhighway vehicle, the pur-
39       chaser thereof shall obtain a nonhighway certificate of title in the follow-
40       ing manner:
41             (1) If the transferor is a vehicle dealer, as defined in K.S.A. 8-2401,
42       and amendments thereto, and a certificate of title has not been issued for
43       such vehicle under this section or under the provisions of K.S.A. 8-135,


7

  1       and amendments thereto, such transferor shall make application for and
  2       assign a nonhighway certificate of title to the purchaser of such nonhigh-
  3       way vehicle in the same manner and under the same conditions pre-
  4       scribed by K.S.A. 8-135, and amendments thereto, for the application for
  5       and assignment of a certificate of title thereunder. Upon the assignment
  6       thereof, the purchaser shall make application for a new nonhighway cer-
  7       tificate of title, as provided in subsection (c).
  8             (2) Except as provided in subsection (b) of K.S.A. 8-199, and amend-
  9       ments thereto, if a certificate of title has been issued for any such vehicle
10       under the provisions of K.S.A. 8-135, and amendments thereto, the owner
11       of such nonhighway vehicle may surrender such certificate of title to the
12       division of vehicles and make application to the division for a nonhighway
13       certificate of title, or the owner may obtain from the county treasurer's
14       office a form prescribed by the division of vehicles and, upon proper
15       execution thereof, may assign the nonhighway certificate of title or the
16       regular certificate of title with such form attached to the purchaser of the
17       nonhighway vehicle. Upon receipt of the nonhighway certificate of title
18       or the regular certificate of title with such form attached, the purchaser
19       shall make application for a new nonhighway certificate of title as pro-
20       vided in subsection (c).
21             (3) If the transferor is not a vehicle dealer, as defined in K.S.A. 8-
22       2401, and amendments thereto, and a certificate of title has not been
23       issued for the vehicle under this section or a certificate of title was not
24       required under K.S.A. 8-135, and amendments thereto, the transferor
25       shall make application to the division for a nonhighway certificate of title
26       as provided in this section, except that in addition thereto, the division
27       shall require a bill of sale or such transferor's affidavit, with at least one
28       other corroborating affidavit, that such transferor is the owner of such
29       nonhighway vehicle. If the division is satisfied that the transferor is the
30       owner, the division shall issue a nonhighway certificate of title for such
31       vehicle, and the transferor shall assign the same to the purchaser, who
32       shall make application for a new nonhighway certificate of title, as pro-
33       vided in subsection (c).
34             (c) Every purchaser of a nonhighway vehicle, whether assigned a non-
35       highway certificate of title or a regular certificate of title with the form
36       specified in paragraph (2) of subsection (b) attached, shall make appli-
37       cation to the county treasurer of the county in which such person resides
38       for a new nonhighway certificate of title in the same manner and under
39       the same conditions as for an application for a certificate of title under
40       K.S.A. 8-135, and amendments thereto. Such application shall be in the
41       form prescribed by the director of vehicles and shall contain substantially
42       the same provisions as required for an application under subsection (c)(1)
43       of K.S.A. 8-135, and amendments thereto. In addition, such application


8

  1       shall provide a place for the applicant to certify that the vehicle for which
  2       the application for a nonhighway certificate of title is made is a nonhigh-
  3       way vehicle, and other provisions the director deems necessary. Each
  4       application for a nonhighway certificate of title shall be accompanied by
  5       a fee of $7 until July 1, 1999, and $3.50 thereafter, and if the application
  6       is not made to the county treasurer within the time prescribed by K.S.A.
  7       8-135, and amendments thereto, for making application for a certificate
  8       of title thereunder, an additional fee of $2.
  9             (d) A nonhighway certificate of title shall be in form and color as
10       prescribed by the director of vehicles. A nonhighway certificate of title
11       shall indicate clearly and distinctly on its face that it is issued for a non-
12       highway vehicle. A nonhighway certificate of title shall contain substan-
13       tially the same information as required on a certificate of title issued
14       under K.S.A. 8-135, and amendments thereto, and other information the
15       director deems necessary.
16             (e) A nonhighway certificate of title may be transferred in the same
17       manner and under the same conditions as prescribed by K.S.A. 8-135,
18       and amendments thereto, for the transfer of a certificate of title, except
19       as otherwise provided in this section. A nonhighway certificate of title
20       may be assigned and transferred only while the vehicle remains a non-
21       highway vehicle. Upon transfer or sale of a nonhighway vehicle which has
22       been rebuilt or restored or is otherwise in a condition which will allow
23       the registration of such vehicle, the owner shall assign the nonhighway
24       certificate of title to the purchaser, and the purchaser shall obtain a cer-
25       tificate of title and register such vehicle as provided in K.S.A. 8-135, and
26       amendments thereto. No regular certificate of title shall be issued for a
27       vehicle for which there has been issued a nonhighway certificate of title
28       until there has been compliance with K.S.A. 8-116a, and amendments
29       thereto.
30             (f) The owner of a vehicle which has been assembled, reconstructed,
31       reconstituted or restored or otherwise placed in an operable condition
32       may make application to the county treasurer for a permit to operate such
33       vehicle on the highways of this state over the most direct route from the
34       place such nonhighway vehicle is located to a specified location named
35       on the permit and to return to the original location. No such permit shall
36       be issued for any vehicle unless the owner has motor vehicle liability
37       insurance coverage or an approved self-insurance plan under K.S.A. 40-
38       3104, and amendments thereto. Such permit shall be on a form furnished
39       by the director of vehicles and shall state the date the vehicle is to be
40       taken to the other location, the name of the insurer, as defined in K.S.A.
41       40-3103, and amendments thereto, and the policy number or a statement
42       that the vehicle is included in a self-insurance plan approved by the com-
43       missioner of insurance, a statement attesting to the correctness of the


9

  1       information concerning financial security, the vehicle identification num-
  2       ber and a description of the vehicle. Such permit shall be signed by the
  3       owner of the vehicle. Permits issued under this subsection (f) shall be
  4       prepared in triplicate. One copy shall be carried in the vehicle for which
  5       it is issued and shall be displayed so that it is visible from the rear of the
  6       vehicle. The second copy shall be retained by the county treasurer, and
  7       the third copy shall be forwarded by the county treasurer to the division
  8       of vehicles. The fee for such permit shall be $1 which shall be retained
  9       by the county treasurer, who shall annually forward 25% of all such fees
10       collected to the division of vehicles to reimburse the division for admin-
11       istrative expenses, and shall deposit the remainder in a special fund for
12       expenses of issuing such permits.
13             (g) (f) A nonhighway vehicle for which a nonhighway certificate of
14       title has been issued pursuant to this section shall not be deemed a motor
15       vehicle for the purposes of K.S.A. 40-3101 to 40-3121, inclusive, and
16       amendments thereto, except when such vehicle is being operated pur-
17       suant to subsection (f). Any person who knowingly makes a false state-
18       ment concerning financial security in obtaining a permit pursuant to sub-
19       section (f), or who fails to obtain a permit when required by law to do so
20       is guilty of a class C misdemeanor.
21             (h) (g) Any person who, on July 1, 1996, is the owner of an all-terrain
22       vehicle, as defined in K.S.A. 8-126, and amendments thereto, shall not
23       be required to file an application for a nonhighway certificate of title
24       under the provisions of this section for such all-terrain vehicle, unless the
25       person transfers an interest in such all-terrain vehicle. 
26       Sec.  9. K.S.A. 1999 Supp. 8-198 is hereby amended to read as
27       follows: 8-198. (a) A nonhighway vehicle shall not be required to
28       be registered in this state, as provided in K.S.A. 8-135, and amend-
29       ments thereto, but nothing in this section shall be construed as
30       abrogating, limiting or otherwise affecting the provisions of K.S.A.
31       8-142, and amendments thereto, which make it unlawful for any
32       person to operate or knowingly permit the operation in this state
33       of a vehicle required to be registered in this state.
34             (b) Upon the sale or transfer of any nonhighway vehicle, the
35       purchaser thereof shall obtain a nonhighway certificate of title in
36       the following manner:
37             (1) If the transferor is a vehicle dealer, as defined in K.S.A. 8-
38       2401, and amendments thereto, and a certificate of title has not
39       been issued for such vehicle under this section or under the pro-
40       visions of K.S.A. 8-135, and amendments thereto, such transferor
41       shall make application for and assign a nonhighway certificate of
42       title to the purchaser of such nonhighway vehicle in the same man-
43       ner and under the same conditions prescribed by K.S.A. 8-135, and


10

  1       amendments thereto, for the application for and assignment of a
  2       certificate of title thereunder. Upon the assignment thereof, the
  3       purchaser shall make application for a new nonhighway certificate
  4       of title, as provided in subsection (c).
  5             (2) Except as provided in subsection (b) of K.S.A. 8-199, and amend-
  6       ments thereto, If a certificate of title has been issued for any such
  7       vehicle under the provisions of K.S.A. 8-135, and amendments
  8       thereto, the owner of such nonhighway vehicle may surrender such
  9       certificate of title to the division of vehicles and make application
10       to the division for a nonhighway certificate of title, or the owner
11       may obtain from the county treasurer's office a form prescribed
12       by the division of vehicles and, upon proper execution thereof, may
13       assign the nonhighway certificate of title or the regular certificate
14       of title with such form attached to the purchaser of the nonhighway
15       vehicle. Upon receipt of the nonhighway certificate of title or the
16       regular certificate of title with such form attached, the purchaser
17       shall make application for a new nonhighway certificate of title as
18       provided in subsection (c).
19             (3) If the transferor is not a vehicle dealer, as defined in K.S.A.
20       8-2401, and amendments thereto, and a certificate of title has not
21       been issued for the vehicle under this section or a certificate of
22       title was not required under K.S.A. 8-135, and amendments
23       thereto, the transferor shall make application to the division for a
24       nonhighway certificate of title as provided in this section, except
25       that in addition thereto, the division shall require a bill of sale or
26       such transferor's affidavit, with at least one other corroborating
27       affidavit, that such transferor is the owner of such nonhighway
28       vehicle. If the division is satisfied that the transferor is the owner,
29       the division shall issue a nonhighway certificate of title for such
30       vehicle, and the transferor shall assign the same to the purchaser,
31       who shall make application for a new nonhighway certificate of
32       title, as provided in subsection (c).
33             (c) Every purchaser of a nonhighway vehicle, whether as-
34       signed a nonhighway certificate of title or a regular certificate of
35       title with the form specified in paragraph (2) of subsection (b) at-
36       tached, shall make application to the county treasurer of the
37       county in which such person resides for a new nonhighway certif-
38       icate of title in the same manner and under the same conditions
39       as for an application for a certificate of title under K.S.A. 8-135,
40       and amendments thereto. Such application shall be in the form
41       prescribed by the director of vehicles and shall contain substan-
42       tially the same provisions as required for an application under sub-
43       section (c)(1) of K.S.A. 8-135, and amendments thereto. In addi-


11

  1       tion, such application shall provide a place for the applicant to
  2       certify that the vehicle for which the application for a nonhighway
  3       certificate of title is made is a nonhighway vehicle, and other pro-
  4       visions the director deems necessary. Each application for a non-
  5       highway certificate of title shall be accompanied by a fee of $7
  6       until July 1, 2002, $6 until July 1, 2004, and $3.50 thereafter, and
  7       if the application is not made to the county treasurer within the
  8       time prescribed by K.S.A. 8-135, and amendments thereto, for
  9       making application for a certificate of title thereunder, an addi-
10       tional fee of $2.
11             (d) A nonhighway certificate of title shall be in form and color
12       as prescribed by the director of vehicles. A nonhighway certificate
13       of title shall indicate clearly and distinctly on its face that it is
14       issued for a nonhighway vehicle. A nonhighway certificate of title
15       shall contain substantially the same information as required on a
16       certificate of title issued under K.S.A. 8-135, and amendments
17       thereto, and other information the director deems necessary.
18             (e) A nonhighway certificate of title may be transferred in the
19       same manner and under the same conditions as prescribed by
20       K.S.A. 8-135, and amendments thereto, for the transfer of a cer-
21       tificate of title, except as otherwise provided in this section. A non-
22       highway certificate of title may be assigned and transferred only
23       while the vehicle remains a nonhighway vehicle. Upon transfer or
24       sale of a nonhighway vehicle which has been rebuilt or restored or is
25       otherwise is in a condition which will allow the registration of such
26       vehicle, the owner shall assign the nonhighway certificate of title
27       to the purchaser, and the purchaser shall obtain a certificate of
28       title and register such vehicle as provided in K.S.A. 8-135, and
29       amendments thereto. No regular certificate of title shall be issued
30       for a vehicle for which there has been issued a nonhighway certif-
31       icate of title until there has been compliance with K.S.A. 8-116a,
32       and amendments thereto.
33             (f) The owner of a vehicle which has been issued a nonhighway
34       title prior to July 1, 2000, and has been assembled, reconstructed,
35       reconstituted or restored or otherwise placed in an operable con-
36       dition may make application to the county treasurer for a permit
37       to operate such vehicle on the highways of this state over the most
38       direct route from the place such nonhighway vehicle is located to
39       a specified location named on the permit and to return to the orig-
40       inal location. No such permit shall be issued for any vehicle unless
41       the owner has motor vehicle liability insurance coverage or an ap-
42       proved self-insurance plan under K.S.A. 40-3104, and amendments
43       thereto. Such permit shall be on a form furnished by the director


12

  1       of vehicles and shall state the date the vehicle is to be taken to the
  2       other location, the name of the insurer, as defined in K.S.A. 40-
  3       3103, and amendments thereto, and the policy number or a state-
  4       ment that the vehicle is included in a self-insurance plan approved
  5       by the commissioner of insurance, a statement attesting to the cor-
  6       rectness of the information concerning financial security, the ve-
  7       hicle identification number and a description of the vehicle. Such
  8       permit shall be signed by the owner of the vehicle. Permits issued
  9       under this subsection (f) shall be prepared in triplicate. One copy
10       shall be carried in the vehicle for which it is issued and shall be
11       displayed so that it is visible from the rear of the vehicle. The
12       second copy shall be retained by the county treasurer, and the
13       third copy shall be forwarded by the county treasurer to the divi-
14       sion of vehicles. The fee for such permit shall be $1 which shall be
15       retained by the county treasurer, who shall annually forward 25%
16       of all such fees collected to the division of vehicles to reimburse
17       the division for administrative expenses, and shall deposit the re-
18       mainder in a special fund for expenses of issuing such permits.
19             (g) A nonhighway vehicle for which a nonhighway certificate
20       of title has been issued pursuant to this section shall not be deemed
21       a motor vehicle for the purposes of K.S.A. 40-3101 to 40-3121,
22       inclusive, and amendments thereto, except when such vehicle is
23       being operated pursuant to subsection (f). Any person who know-
24       ingly makes a false statement concerning financial security in ob-
25       taining a permit pursuant to subsection (f), or who fails to obtain
26       a permit when required by law to do so is guilty of a class C
27       misdemeanor.
28             (h) Any person who, on July 1, 1996, is the owner of an all-
29       terrain vehicle, as defined in K.S.A. 8-126, and amendments
30       thereto, shall not be required to file an application for a nonhigh-
31       way certificate of title under the provisions of this section for such
32       all-terrain vehicle, unless the person transfers an interest in such
33       all-terrain vehicle.
34             Sec.  10. K.S.A. 8-199 is hereby amended to read as follows: 8-
35       199. (a) Except as provided in subsection (b), It shall be unlawful for
36       any person to sell or transfer the ownership of any nonhighway
37       vehicle, unless such person shall give to the purchaser thereof an
38       assigned nonhighway certificate of title.
39             (b) The sale or transfer of ownership of a nonhighway vehicle shall
40       include the acquisition of any such vehicle by an insurer, as defined by
41       K.S.A. 40-3103, from any person upon payment of consideration therefor
42       in satisfaction of such insurer's obligation under a policy of motor vehicle
43       insurance but the transferor of a vehicle for which a title has been issued


13

  1       under K.S.A. 8-135 shall not be required to obtain a nonhighway certif-
  2       icate of title for such vehicle and may assign to the insurer the certificate
  3       of title issued pursuant to K.S.A. 8-135. It shall be unlawful for any insurer
  4       to sell or attempt to sell any nonhighway vehicle, through power of at-
  5       torney or otherwise, unless such insurer shall obtain a nonhighway cer-
  6       tificate of title issued in the name of the insurer.
  7             (c) (b) Any person, firm, company, corporation, partnership, as-
  8       sociation or other legal entity who violates the provisions of this
  9       section shall be guilty of a class C misdemeanor.
10             (d) (c) Nothing in this act shall be construed as relieving any
11       person of the payment of the tax imposed on the sale of a motor
12       vehicle pursuant to K.S.A. 79-3603, and amendments thereto.
13             Sec.  10 11. K.S.A. 8-1,136 and K.S.A. 1998 8-199 and 8-1,136 and
14       K.S.A. 1999 Supp. 8-197 and 8-198 are hereby repealed.
15        Sec.  11 12. This act shall take effect and be in force from and after
16       its publication in the statute book.