An Act relating to the department of revenue; concerning certain fees, records and equip- ment; amending K.S.A. 1995 Supp. 8-135, 8-135a, 8-139, 8-145, 8-170, 8-171, 8-198, 74-2012 and 74-2013 and repealing the existing sections.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 1995 Supp. 8-135 is hereby amended to read as follows: 8-135. (a) Upon the transfer of ownership of any vehicle regis- tered under this act, the registration of the vehicle and the right to use any license plate thereon shall expire and thereafter there shall be no transfer of any registration, and the license plate shall be removed by the owner thereof. It shall be unlawful for any person, other than the person to whom the license plate was originally issued, to have possession thereof. When the ownership of a registered vehicle is transferred, the original owner of the license plate may register another vehicle under the same number, upon application and payment of a fee of $1.50, if such other vehicle does not require a higher license fee. If a higher license fee is required, then the transfer may be made upon the payment of the transfer fee of $1.50 and the difference between the fee originally paid and that due for the new vehicle.

(b) Subject to the provisions of subsection (a) of K.S.A. 8-198, and amendments thereto, upon the transfer and sale of any vehicle by any person or dealer, the new owner thereof, within 30 days, inclusive of weekends and holidays, from date of such transfer shall make application to the division for registration of the vehicle, but no person shall operate the vehicle on any highway in this state during the thirty-day period with- out having applied for and obtained temporary registration from the county treasurer or from a dealer. After the expiration of the thirty-day period, it shall be unlawful for the owner or any other person to operate such vehicle upon the highways of this state unless the vehicle has been registered as provided in this act. For failure to make application for registration as provided in this section, a penalty of $2 shall be added to other fees. When a person has a current motorcycle or passenger vehicle registration and license plate, including any registration decal affixed thereto, for a vehicle and has sold or otherwise disposed of the vehicle and has acquired another motorcycle or passenger vehicle and intends to transfer the registration and the license plate to the motorcycle or pas- senger vehicle acquired, but has not yet had the registration transferred in the office of the county treasurer, such person may operate the mo- torcycle or passenger vehicle acquired for a period of not to exceed 30 days by displaying the license plate on the rear of the vehicle acquired. If the acquired vehicle is a new vehicle such person also must carry the assigned certificate of title or manufacturer's statement of origin when operating the acquired vehicle, except that a dealer may operate such vehicle by displaying such dealer's dealer license plate.

(c) Certificate of title: No vehicle required to be registered shall be registered or any license plate or registration decal issued therefor, unless the applicant for registration shall present satisfactory evidence of own- ership and apply for an original certificate of title for such vehicle. The following paragraphs of this subsection shall apply to the issuance of a certificate of title for a nonhighway vehicle, as defined in K.S.A. 8-197, and amendments thereto, except to the extent such paragraphs are made inapplicable by or are inconsistent with K.S.A. 8-198, and amendments thereto.

(1) An application for certificate of title shall be made by the owner or the owner's agent upon a form furnished by the division and shall state all liens or encumbrances thereon, and such other information as the division may require. Notwithstanding any other provision of this section, no certificate of title, other than a duplicate title, shall be issued for a vehicle having any unreleased lien or encumbrance thereon, unless the transfer of such vehicle has been consented to in writing by the holder of the lien or encumbrance. Such consent shall be in a form approved by the division. In the case of members of the armed forces of the United States while the United States is engaged at war with any foreign nation and for a period of six months next following the cessation of hostilities, such application may be signed by the owner's spouse, parents, brother or sister. The county treasurer shall use reasonable diligence in ascer- taining whether the facts stated in such application are true, and if sat- isfied that the applicant is the lawful owner of such vehicle, or otherwise entitled to have the same registered in such applicant's name, shall so notify the division, who shall issue an appropriate certificate of title. The certificate of title shall be in a form approved by the division, and shall contain a statement of any liens or encumbrances which the application shows, and such other information as the division determines.

(2) The certificate of title shall contain upon the reverse side a form for assignment of title to be executed by the owner before a notary public or some other officer authorized to administer an oath. This assignment shall contain a statement of all liens or encumbrances on the vehicle at the time of assignment. The certificate of title shall also contain on the reverse side blank spaces so that an abstract of mileage as to each owner will be available. The seller at the time of each sale shall insert the mileage on the form filed for application or reassignment of title, and the division shall insert such mileage on the certificate of title when issued to pur- chaser or assignee. The signature of the purchaser or assignee is required on the form filed for application or reassignment of title, acknowledging the odometer certification made by the seller, except that vehicles which are 10 model years or older and trucks with a gross vehicle weight of more than 16,000 pounds shall be exempt from the mileage acknowledg- ment requirement of the purchaser or assignee. Such title shall indicate whether the vehicle for which it is issued has been titled previously as a nonhighway vehicle. In addition, the reverse side shall contain two forms for reassignment by a dealer, stating the liens or encumbrances thereon. The first form of reassignment shall be used only when a dealer sells the vehicle to another dealer. The second form of reassignment shall be used by a dealer when selling the vehicle to another dealer or the ultimate owner of the vehicle. The reassignment by a dealer shall be used only where the dealer resells the vehicle, and during the time that the vehicle remains in the dealer's possession for resale, the certificate of title shall be dormant. When the ownership of any vehicle passes by operation of law, or repossession upon default of a lease, security agreement, or ex- ecutory sales contract, the person owning such vehicle, upon furnishing satisfactory proof to the county treasurer of such ownership, may procure a certificate of title to the vehicle. When a vehicle is registered in another state and is repossessed in another state, the owner of such vehicle shall not be entitled to obtain a valid Kansas title or registration, except that when a vehicle is registered in another state, but is financed originally by a financial institution chartered in the state of Kansas or when a financial institution chartered in Kansas purchases a pool of motor vehicle loans from the resolution trust corporation or a federal regulatory agency, and the vehicle is repossessed in another state, such Kansas financial institu- tion shall be entitled to obtain a valid Kansas title or registration.

(3) Dealers shall execute, upon delivery to the purchaser of every new vehicle, a manufacturer's statement of origin stating the liens and encum- brances thereon. Such statement of origin shall be delivered to the pur- chaser at the time of delivery of the vehicle or at a time agreed upon by the parties, not to exceed 30 days, inclusive of weekends and holidays. The agreement of the parties shall be executed on a form approved by the division. In the event delivery of title cannot be made personally, the seller may deliver the manufacturer's statement of origin by restricted mail to the address of purchaser shown on the purchase agreement. The manufacturer's statement of origin may include an attachment containing assignment of such statement of origin on forms approved by the division. Upon the presentation to the division of a manufacturer's statement of origin, by a manufacturer or dealer for a new vehicle, sold in this state, a certificate of title shall be issued if there is also an application for regis- tration, except that no application for registration shall be required for a travel trailer used for living quarters and not operated on the highways.

(4) The fee for each original certificate of title shall be $7 until July 1, 1996 1999, and $4.50 $3.50 thereafter, in addition to the fee for reg- istration of such vehicle, trailer or semitrailer. The certificate of title shall be good for the life of the vehicle, trailer or semitrailer while owned or held by the original holder of the certificate of title.

(5) Upon sale and delivery to the purchaser of every vehicle subject to a purchase money security interest as defined in K.S.A. 84-9-107, and amendments thereto, the dealer or secured party may complete a notice of security interest and when so completed, the purchaser shall execute the notice, in a form prescribed by the division, describing the vehicle and showing the name and address of the secured party and of the debtor and other information the division requires. The dealer or secured party, within 10 days of the sale and delivery, may mail or deliver the notice of security interest, together with a fee of $2.50, to the division. The notice of security interest shall be retained by the division until it receives an application for a certificate of title to the vehicle and a certificate of title is issued. The certificate of title shall indicate any security interest in the vehicle. Upon issuance of the certificate of title, the division shall mail or deliver confirmation of the receipt of the notice of security interest, the date the certificate of title is issued and the security interest indicated, to the secured party at the address shown on the notice of security interest. The proper completion and timely mailing or delivery of a notice of se- curity interest by a dealer or secured party shall perfect a security interest in the vehicle described on the date of such mailing or delivery. The county treasurers shall mail a copy of the title application to the Kansas lienholder. Each county treasurer shall charge the Kansas lienholder a $1.50 service fee for processing and mailing a copy of the title application to the Kansas lienholder.

(6) It shall be unlawful for any person to operate in this state a vehicle required to be registered under this act, or to transfer the title to any such vehicle to any person or dealer, unless a certificate of title has been issued as herein provided. In the event of a sale or transfer of ownership of a vehicle for which a certificate of title has been issued, which certif- icate of title is in the possession of the transferor at the time of delivery of the vehicle, the holder of such certificate of title shall endorse on the same an assignment thereof, with warranty of title in a form prescribed by the division and printed thereon and the transferor shall deliver the same to the buyer at the time of delivery to the buyer of the vehicle or at a time agreed upon by the parties, not to exceed 30 days, inclusive of weekends and holidays, after the time of delivery. The agreement of the parties shall be executed on a form provided by the division. The require- ments of this paragraph concerning delivery of an assigned title are sat- isfied if the transferor mails to the transferee by restricted mail the as- signed certificate of title within the 30 days, and if the transferor is a dealer, as defined by K.S.A. 8-2401, and amendments thereto, such trans- feror shall be deemed to have possession of the certificate of title if the transferor has made application therefor to the division. The buyer shall then present such assigned certificate of title to the division at the time of making application for registration of such vehicle. A new certificate of title shall be issued to the buyer, upon payment of the fee of $7 until July 1, 1996 1999, and $4.50 $3.50 thereafter. If such vehicle is sold to a resident of another state or country, the dealer or person making the sale shall notify the division of the sale and the division shall make notation thereof in the records of the division. When a person acquires a security agreement on a vehicle subsequent to the issuance of the original title on such vehicle, such person shall require the holder of the certificate of title to surrender the same and sign an application for a mortgage title in form prescribed by the division. Upon such surrender such person shall immediately deliver the certificate of title, application, and a fee of $7 until July 1, 1996 1999, and $4.50 $3.50 thereafter, to the division. Upon receipt thereof, the division shall issue a new certificate of title showing the liens or encumbrances so created, but not more than two liens or encumbrances may be shown upon a title. When a prior lienholder's name is removed from the title, there must be satisfactory evidence presented to the division that the lien or encumbrance has been paid. When the indebtedness to a lienholder, whose name is shown upon a title, is paid in full, such lienholder within 10 days after written demand by restricted mail, shall furnish to the holder of the title a release of lien or execute such a release in the space provided on the title. For failure to comply with such a demand the lienholder shall be liable to the holder of the title for $100 and also shall be liable for any loss caused to the holder by such failure. When the indebtedness to a lienholder, whose name is shown upon a title, is collected in full, such lienholder, within 30 days, shall furnish notice to the holder of title that such indebtedness has been paid in full and that such title may be presented to the lienholder at any time for release of lien.

(7) It shall be unlawful for any person to buy or sell in this state any vehicle required to be registered, unless, at the time of delivery thereof or at a time agreed upon by the parties, not to exceed 30 days, inclusive of weekends and holidays, after the time of delivery, there shall pass between the parties a certificate of title with an assignment thereof. The sale of a vehicle required to be registered under the laws of this state, without assignment of the certificate of title, is fraudulent and void, unless the parties shall agree that the certificate of title with assignment thereof shall pass between them at a time other than the time of delivery, but within 30 days thereof. The requirements of this paragraph concerning delivery of an assigned title shall be satisfied if (i) the seller mails to the purchaser by restricted mail the assigned certificate of title within 30 days, or (ii) if the transferor is a dealer, as defined by K.S.A. 8-2401, and amend- ments thereto, such seller shall be deemed to have possession of the certificate of title if such seller has made application therefor to the di- vision, or (iii) if the transferor is a dealer and has assigned a title pursuant to paragraph (9) of this subsection (c).

(8) In cases of sales under the order of a court of a vehicle required to be registered under this act, the officer conducting such sale shall issue to the purchaser a certificate naming the purchaser and reciting the facts of the sale, which certificate shall be prima facie evidence of the own- ership of such purchaser for the purpose of obtaining a certificate of title to such motor vehicle and for registering the same. Any such purchaser shall be allowed 30 days, inclusive of weekends and holidays, from the date of sale to make application to the division for a certificate of title and for the registering of such motor vehicle.

(9) Any dealer who has acquired a vehicle, the title for which was issued under the laws of and in a state other than the state of Kansas, shall not be required to obtain a Kansas certificate of title therefor during the time such vehicle remains in such dealer's possession and at such dealer's place of business for the purpose of sale. The purchaser or trans- feree shall present the assigned title to the division of vehicles when making application for a certificate of title as provided in subsection (c)(1).

Sec. 2. K.S.A. 1995 Supp. 8-135a is hereby amended to read as fol- lows: 8-135a. A person in whose name a vehicle is titled and registered may add their spouse's name by assigning the title from the titleholder to titleholder and spouse and by applying for a name change title and registration. A son or daughter in whose name a vehicle is titled and registered may add a parent's name by assigning the title from such son or daughter to such son or daughter and parent and by applying for a name change title and registration. A parent may add a son or daughter's name by assigning the title from such parent to such parent and parent's son or daughter and by applying for a name change title and registration. Application for name change title and registration shall be made in the manner required by law, including certification of insurance coverage. The fee shall be $7 until July 1, 1996 1999, and $4.50 $3.50 thereafter, for the title, and no charge shall be made for the registration, except, when applicable, the fee for transfer of registration under K.S.A. 8-135, and amendments thereto.

Sec. 3. K.S.A. 1995 Supp. 8-139 is hereby amended to read as fol- lows: 8-139. In the event that any license plate, certificate of title, regis- tration decal or registration receipt issued hereunder, shall be lost, mu- tilated, or shall have become illegible, the person who is entitled thereto shall make immediate application for and obtain a duplicate or substitute therefor, upon furnishing information of such fact satisfactory to the di- vision and upon payment of the required fees: Namely, certificate of title, $7 until July 1, 1996 1999, and $4.50 $3.50 thereafter, registration receipt, $.50, registration decal, $.50, license plates, $2. In case the license plate is of such type or constructed in such a way that it is not reasonably possible to remove it from the vehicle to which it is attached without destroying or mutilating such license plate, and the ownership of such vehicle shall be transferred and the license plate shall be mutilated or destroyed by the owner thereof as a result of the owner's effort to comply with the provisions of K.S.A. 8-135, and amendments thereto, by remov- ing the same from the vehicle so transferred, then and in such case no fee shall be charged for such duplicate or substitute license plate, includ- ing any registration decal affixed thereto, but the same shall be furnished free of charge providing such person shall otherwise in all respects have complied with the laws governing the transfer of ownership of such motor vehicle.

Sec. 4. K.S.A. 1995 Supp. 8-145 is hereby amended to read as fol- lows: 8-145. (a) All registration and certificates of title fees shall be paid to the county treasurer of the county in which the applicant for registra- tion resides or has an office or principal place of business within this state, and the county treasurer shall issue a receipt in triplicate, on blanks fur- nished by the division of vehicles, one copy of which shall be filed in the county treasurer's office, one copy shall be delivered to the applicant and the original copy shall be forwarded to the director of vehicles.

(b) The county treasurer shall deposit $.75 of each license applica- tion, $.75 out of each application for transfer of license plate and $2 out of each application for a certificate of title, collected by such treasurer under this act, in a special fund, which fund is hereby appropriated for the use of the county treasurer in paying for necessary help and expenses incidental to the administration of duties in accordance with the provi- sions of this law and extra compensation to the county treasurer for the services performed in administering the provisions of this act, which com- pensation shall be in addition to any other compensation provided by any other law, except that the county treasurer shall receive as additional compensation for administering the motor vehicle title and registration laws and fees, a sum computed as follows: The county treasurer, during the month of December, shall determine the amount to be retained for extra compensation not to exceed the following amounts each year for calendar year 1990 or any calendar year thereafter: The sum of $60 per hundred registrations for the first 5,000 registrations; the sum of $45 per hundred registrations for the next 5,000 registrations; and the sum of $2 per hundred registrations for all registrations thereafter. In no event, however, shall any county treasurer be entitled to receive more than $9,800 additional annual compensation.

If more than one person shall hold the office of county treasurer during any one calendar year, such compensation shall be prorated among such persons in proportion to the number of weeks served. The total amount of compensation paid the treasurer together with the amounts expended in paying for other necessary help and expenses incidental to the admin- istration of the duties of the county treasurer in accordance with the provisions of this act, shall not exceed the amount deposited in such spe- cial fund. Any balance remaining in such fund at the close of any calendar year shall be withdrawn and credited to the general fund of the county prior to June 1 of the following calendar year.

(c) The county treasurer shall remit the remainder of all such fees collected, together with the original copy of all applications, to the sec- retary of revenue. Except as provided in subsection (d), all such fees remitted to the secretary of revenue shall be deposited with the state treasurer and credited to the state highway fund.

(d) On July 1, 1993 through June 30, 1996, $3.50 of each certificate of title fee collected and remitted to the secretary of revenue, shall be deposited with the state treasurer and credited to the Kansas highway patrol motor vehicle fund. On July 1, 1996, and thereafter, $1

(d) (1) On July 1, 1996, through June 30, 1997, $2.35 of each certif- icate of title fee collected and remitted to the secretary of revenue, shall be deposited with the state treasurer and credited to the Kansas highway patrol motor vehicle fund, and $1.15 of each certificate of title fee collected and remitted to the secretary of revenue, shall be deposited with the state treasurer and credited to the VIPS/CAMA technology hardware fund.

(2) On July 1, 1997, through June 30, 1999, $2.50 of each certificate of title fee collected and remitted to the secretary of revenue, shall be deposited with the state treasurer and credited to the Kansas highway patrol motor vehicle fund, and, $1 of each certificate of title fee collected and remitted to the secretary of revenue, shall be deposited with the state treasurer and credited to the VIPS/CAMA technology hardware fund.

Sec. 5. K.S.A. 1995 Supp. 8-170 is hereby amended to read as fol- lows: 8-170. (a) Upon the transfer of ownership of any vehicle registered under the foregoing provisions of this act, its registration and right to use the license plates thereon shall expire and thereafter there shall be no transfer of any registration, and the license plates shall be removed by the owner thereof and it shall be unlawful for any person other than the person to whom such license plates were originally issued to have the same in possession. In case of a transfer of ownership of a registered vehicle the original owner of the license plates may register another an- tique vehicle under the same license plate designation, upon application therefor and the payment of a fee of $1.50.

(b) Upon the transfer and sale of a registered vehicle by any person, the new owner thereof, before using a vehicle on the highways of this state, shall make application to the division for registration of the vehicle.

(c) Certificate of title:

(1) Application for certificate of title on an antique vehicle shall be made by the owner or the owner's agent upon a blank form to be fur- nished by the division and shall contain such information as the division shall determine necessary. The division may waive any information re- quested on the form if it is not available. The application together with a bill of sale for the antique vehicle shall be accepted as prima facie evi- dence that the applicant is the owner of the vehicle. The certificate of title shall be delivered to the applicant. The certificate shall contain the words ``antique vehicle.''

(2) The certificate of title shall contain upon the reverse side a form for assignment of title to be executed by the owner before a notary public or some other officer authorized to administer an oath. A certificate of title may be issued under the provisions of this act without an application for registration.

(3) The fee for each original certificate of title so issued shall be $7 until July 1, 1996 1999, and $4.50 $3.50 thereafter. The certificate of title shall be good for the life of the antique vehicle, so long as the same is owned or held by the original holder of the certificate of title, and shall not have to be renewed. In the event of a sale or transfer of ownership of an antique vehicle for which a certificate of title has been issued, the holder of such certificate of title shall endorse on the same an assignment thereof, with warranty of title in form printed thereon, as prescribed by the director, and the transferor must deliver the same to the buyer at the time of delivery of the vehicle. The buyer shall then present such certif- icate of title, assigned as aforesaid, to the director or an authorized agent of the director, whereupon a new certificate of title shall be issued to the buyer, the fee therefor being $7 until July 1, 1996 1999, and $4.50 $3.50 thereafter.

Sec. 6. K.S.A. 1995 Supp. 8-171 is hereby amended to read as fol- lows: 8-171. In the event that any license plate, certificate of title or registration receipt issued hereunder, shall be lost, mutilated, or shall have become illegible, the person who is entitled thereto shall make im- mediate application for and obtain a duplicate therefor, upon furnishing information of such fact satisfactory to the division and upon payment of the required fees: Namely, certificate of title, $7 until July 1, 1996 1999, and $4.50 $3.50 thereafter, registration receipt, $1, license plates, $2.

Sec. 7. K.S.A. 1995 Supp. 8-198 is hereby amended to read as fol- lows: 8-198. (a) A nonhighway vehicle shall not be required to be regis- tered in this state, as provided in K.S.A. 8-135, and amendments thereto, but nothing in this section shall be construed as abrogating, limiting or otherwise affecting the provisions of K.S.A. 8-142, and amendments thereto, which make it unlawful for any person to operate or knowingly permit the operation in this state of a vehicle required to be registered in this state.

(b) Upon the sale or transfer of any nonhighway vehicle, the pur- chaser thereof shall obtain a nonhighway certificate of title in the follow- ing manner:

(1) If the transferor is a vehicle dealer, as defined in K.S.A. 8-2401, and amendments thereto, and a certificate of title has not been issued for such vehicle under this section or under the provisions of K.S.A. 8-135, and amendments thereto, such transferor shall make application for and assign a nonhighway certificate of title to the purchaser of such nonhigh- way vehicle in the same manner and under the same conditions pre- scribed by K.S.A. 8-135, and amendments thereto, for the application for and assignment of a certificate of title thereunder. Upon the assignment thereof, the purchaser shall make application for a new nonhighway cer- tificate of title, as provided in subsection (c).

(2) Except as provided in subsection (b) of K.S.A. 8-199, and amend- ments thereto, if a certificate of title has been issued for any such vehicle under the provisions of K.S.A. 8-135, and amendments thereto, the owner of such nonhighway vehicle may surrender such certificate of title to the division of vehicles and make application to the division for a nonhighway certificate of title, or the owner may obtain from the county treasurer's office a form prescribed by the division of vehicles and, upon proper execution thereof, may assign the nonhighway certificate of title or the regular certificate of title with such form attached to the purchaser of the nonhighway vehicle. Upon receipt of the nonhighway certificate of title or the regular certificate of title with such form attached, the purchaser shall make application for a new nonhighway certificate of title as pro- vided in subsection (c).

(3) If the transferor is not a vehicle dealer, as defined in K.S.A. 8- 2401, and amendments thereto, and a certificate of title has not been issued for the vehicle under this section or a certificate of title was not required under K.S.A. 8-135, and amendments thereto, the transferor shall make application to the division for a nonhighway certificate of title as provided in this section, except that in addition thereto, the division shall require a bill of sale or such transferor's affidavit, with at least one other corroborating affidavit, that such transferor is the owner of such nonhighway vehicle. If the division is satisfied that the transferor is the owner, the division shall issue a nonhighway certificate of title for such vehicle, and the transferor shall assign the same to the purchaser, who shall make application for a new nonhighway certificate of title, as pro- vided in subsection (c).

(c) Every purchaser of a nonhighway vehicle, whether assigned a non- highway certificate of title or a regular certificate of title with the form specified in paragraph (2) of subsection (b) attached, shall make appli- cation to the county treasurer of the county in which such person resides for a new nonhighway certificate of title in the same manner and under the same conditions as for an application for a certificate of title under K.S.A. 8-135, and amendments thereto. Such application shall be in the form prescribed by the director of vehicles and shall contain substantially the same provisions as required for an application under subsection (c)(1) of K.S.A. 8-135, and amendments thereto. In addition, such application shall provide a place for the applicant to certify that the vehicle for which the application for a nonhighway certificate of title is made is a nonhigh- way vehicle, and other provisions the director deems necessary. Each application for a nonhighway certificate of title shall be accompanied by a fee of $7 until July 1, 1996 1999, and $4.50 $3.50 thereafter, and if the application is not made to the county treasurer within the time prescribed by K.S.A. 8-135, and amendments thereto, for making application for a certificate of title thereunder, an additional fee of $2.

(d) A nonhighway certificate of title shall be in form and color as prescribed by the director of vehicles. A nonhighway certificate of title shall indicate clearly and distinctly on its face that it is issued for a non- highway vehicle. A nonhighway certificate of title shall contain substan- tially the same information as required on a certificate of title issued under K.S.A. 8-135, and amendments thereto, and other information the director deems necessary.

(e) A nonhighway certificate of title may be transferred in the same manner and under the same conditions as prescribed by K.S.A. 8-135, and amendments thereto, for the transfer of a certificate of title, except as otherwise provided in this section. A nonhighway certificate of title may be assigned and transferred only while the vehicle remains a non- highway vehicle. Upon transfer or sale of a nonhighway vehicle which has been rebuilt or restored or is otherwise in a condition which will allow the registration of such vehicle, the owner shall assign the nonhighway certificate of title to the purchaser, and the purchaser shall obtain a cer- tificate of title and register such vehicle as provided in K.S.A. 8-135, and amendments thereto. No regular certificate of title shall be issued for a vehicle for which there has been issued a nonhighway certificate of title until there has been compliance with K.S.A. 8-116a, and amendments thereto.

(f) The owner of a vehicle which has been assembled, reconstructed, reconstituted or restored or otherwise placed in an operable condition may make application to the county treasurer for a permit to operate such vehicle on the highways of this state over the most direct route from the place such nonhighway vehicle is located to a specified location named on the permit and to return to the original location. No such permit shall be issued for any vehicle unless the owner has motor vehicle liability insurance coverage or an approved self-insurance plan under K.S.A. 40- 3104, and amendments thereto. Such permit shall be on a form furnished by the director of vehicles and shall state the date the vehicle is to be taken to the other location, the name of the insurer, as defined in K.S.A. 40-3103, and amendments thereto, and the policy number or a statement that the vehicle is included in a self-insurance plan approved by the com- missioner of insurance, a statement attesting to the correctness of the information concerning financial security, the vehicle identification num- ber and a description of the vehicle. Such permit shall be signed by the owner of the vehicle. Permits issued under this subsection (f) shall be prepared in triplicate. One copy shall be carried in the vehicle for which it is issued and shall be displayed so that it is visible from the rear of the vehicle. The second copy shall be retained by the county treasurer, and the third copy shall be forwarded by the county treasurer to the division of vehicles. The fee for such permit shall be $1 which shall be retained by the county treasurer, who shall annually forward 25% of all such fees collected to the division of vehicles to reimburse the division for admin- istrative expenses, and shall deposit the remainder in a special fund for expenses of issuing such permits.

(g) A nonhighway vehicle for which a nonhighway certificate of title has been issued pursuant to this section shall not be deemed a motor vehicle for the purposes of K.S.A. 40-3101 to 40-3121, inclusive, and amendments thereto, except when such vehicle is being operated pur- suant to subsection (f). Any person who knowingly makes a false state- ment concerning financial security in obtaining a permit pursuant to sub- section (f), or who fails to obtain a permit when required by law to do so is guilty of a class C misdemeanor.

Sec. 8. K.S.A. 1995 Supp. 74-2013 is hereby amended to read as follows: 74-2013. Upon application signed by the owner or the owner's agent and payment of a fee of $7 until July 1, 1996 1999, and $4.50 $3.50 thereafter, and surrender of the original title together with satisfactory evidence that the lien has been paid, the department is hereby authorized to grant a reissue of a certificate of title showing the vehicle to be clear of any lien.

New Sec. 9. There is hereby created in the state treasury, the VIPS/ CAMA technology hardware fund. Moneys credited to the VIPS/CAMA technology hardware fund shall be used by the department of revenue for the purpose of upgrading the VIPS/CAMA hardware for the state or for the counties. All expenditures from the VIPS/CAMA technology hard- ware fund shall be made in accordance with appropriation acts, upon warrants of the director of account and reports issued pursuant to vouch- ers approved by the secretary of the department of revenue.

New Sec. 10. (a) The secretary of revenue is hereby authorized to fix, charge and collect fees to provide access to or to furnish copies of data constituting public records in the vehicle information processing sys- tem (VIPS), the Kansas computer assisted mass appraisal system (KS CAMA) and other electronic database systems of the department of rev- enue. All such fees shall be fixed in order to recover all or part of the costs incurred to operate, maintain and improve the specific electronic database system in which the data are stored or maintained, including the costs incurred to provide access to or furnishing copies of such data. The fees fixed pursuant to this section shall not be subject to the provisions of K.S.A. 45-219 and amendments thereto.

(b) There is hereby established in the state treasury the electronic databases fee fund which shall be administered by the secretary of rev- enue. Except for the amounts of fees required to be deposited to the credit of the division of vehicles operating fund or the highway patrol training center fund pursuant to K.S.A. 74-2012 and amendments thereto, all moneys received for the fees fixed, charged and collected under this section for electronic access to or to furnish electronic copies of public records, including all moneys received under subsection (c) of K.S.A. 74-2012 and amendments thereto from law enforcement agencies, shall be deposited in the state treasury and credited to the electronic databases fee fund. All moneys credited to the electronic databases fee fund shall be expended for operating expenditures, including expendi- tures for capital outlay, for the operation, maintenance or improvement of the vehicle information processing system (VIPS), the Kansas com- puter assisted mass appraisal system (KS CAMA) and other electronic database systems of the department of revenue, including the costs in- curred to provide access to or to furnish copies of public records in such database systems. All expenditures from the electronic databases fee fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the secretary of revenue or by a person or persons designated by the secretary.

(c) Except for the amounts of fees that are required to be deposited to the credit of the highway patrol training center fund pursuant to K.S.A. 74-2012 and amendments thereto, all moneys received for the fees fixed, charged and collected under this section for access to or to furnish copies of public records, other than for electronic access to or to furnish elec- tronic copies of public records, shall be deposited in the state treasury and credited to the division of vehicles operating fund or to another spe- cial revenue fund of the department of revenue specified by the secretary of revenue.

Sec. 11. K.S.A. 1995 Supp. 74-2012 is hereby amended to read as follows: 74-2012. (a) All records of the division of vehicles relating to the physical or mental condition of any person, to expungement or except as provided further, any photographs maintained by the division of vehicles in connection with the issuance of drivers' licenses shall be confidential. Photographs or digital images maintained by the division of vehicles in connection with the issuance of drivers' licenses shall be available to law enforcement agencies for use in criminal investigations. Records of the division relating to diversion agreements for the purposes of K.S.A. 8- 1567, 12-4415 and 22-2908, and amendments thereto, shall be confiden- tial and shall be disclosed by direct computer access only to:

(1) A city, county or district attorney, for the purpose of determining a person's eligibility for diversion;

(2) a municipal or district court, for the purpose of using the record in connection with any matter before the court;

(3) a law enforcement agency, for the purpose of supplying the record to a person authorized to obtain it under paragraph (1) or (2) of this subsection; or

(4) an employer when a person is required to retain a commercial driver's license due to the nature of such person's employment.

All other records of the division of vehicles shall be subject to the provisions of the open records act except as otherwise provided by section 10 and amendments thereto or this section.

(b) Lists of persons' names and addresses contained in or derived from records of the division of vehicles shall not be sold, given or received for the purposes prohibited by K.S.A. 21-3914, and amendments thereto, except that:

(1) The director of vehicles may provide to a requesting party, and a requesting party may receive, such a list and accompanying information from public records of the division upon written certification that the requesting party shall use the list solely for the purpose of: (A) Assisting manufacturers of motor vehicles in compiling statistical reports or in no- tifying owners of vehicles believed to: (i) Have safety-related defects, (ii) fail to comply with emission standards or (iii) have any defect to be rem- edied at the expense of the manufacturer; (B) assisting an insurer au- thorized to do business in this state, or the insurer's authorized agent, in processing an application for, or renewal or cancellation of, a motor ve- hicle liability insurance policy; or (C) assisting the selective service system in the maintenance of a list of persons 18 to 26 years of age in this state as required under the provisions of section 3 of the federal military se- lective service act.

(2) Any law enforcement agency of this state which has access to public records of the division may furnish to a requesting party, and a requesting party may receive, such a list and accompanying information from such records upon written certification that the requesting party shall use the list solely for the purpose of assisting an insurer authorized to do business in this state, or the insurer's authorized agent, in processing an application for, or renewal or cancellation of, a motor vehicle liability insurance policy.

(c) If a law enforcement agency of this state furnishes information to a requesting party pursuant to subsection (b)(2), the law enforcement agency shall charge the fee prescribed by the secretary of revenue and approved by the director of accounts and reports pursuant to subsection (c)(5) of K.S.A. 45-219 section 10, and amendments thereto, for any cop- ies furnished and may charge an additional fee to be retained by the law enforcement agency to cover its cost of providing such copies. The fee prescribed pursuant to subsection (c)(5) of K.S.A. 45-219 section 10, and amendments thereto, shall be paid monthly to the secretary of revenue and upon receipt thereof shall be deposited in the state treasury to the credit of the electronic databases fee fund, except for the $1 of the fee for each record required to be credited to the highway patrol training center fund under subsection (e).

(d) The secretary of revenue, the secretary's agents or employees, the director of vehicles or the director's agents or employees shall not be liable for damages caused by any negligent or wrongful act or omission of a law enforcement agency in furnishing any information obtained from records of the division of vehicles.

(e) A fee in an amount fixed by the secretary of revenue and approved by the director of accounts and reports pursuant to subsection (c)(5) of K.S.A. 45-219 section 10, and amendments thereto, of not less than $2 for each request for information in the public records of the division concerning any vehicle or licensed driver shall be charged by the division, except that the director may charge a lesser fee pursuant to a contract between the secretary of revenue and any person to whom the director is authorized to furnish information under subsection (b), and such fee shall not be less than the cost of production or reproduction of any in- formation requested. Except for the fees charged pursuant to a contract for title and registration records on vehicles authorized by this subsection, $1 shall be credited to the highway patrol training center fund for each fee charged record.

(f) The secretary of revenue may adopt such rules and regulations as are necessary to implement the provisions of this section.

New Sec./007006/(a) An annual performance audit of the Kansas highway patrol motor vehicle program shall be conducted either by the legislative post auditor or by a firm, as defined by K.S.A. 46-1112, and amendments thereto, under contract with the legislative post auditor in accordance with the provisions of the legislative post audit act. Such audit shall in- clude a review of the number and purchase price of new motor vehicles, the number and resale value of retired motor vehicles, and the average number of miles the motor vehicles are driven prior to being retired. The audit report shall be submitted to the legislature at the commencement of the regular sessions of the legislature held during 1997, 1998 and 1999.

(b) The auditor to conduct the audit work required under this section shall be specified in accordance with K.S.A. 46-1122, and amendments thereto. If the legislative post audit committee specifies under such stat- ute that a firm is to perform such audit, such firm shall be selected and shall perform such audit as provided in K.S.A. 46-1123, and amendments thereto, and K.S.A. 46-1125 through 46-1127, and amendments thereto. If the audit work is conducted under contract with a firm, the contract cost of the audit shall be paid by the Kansas highway patrol.

New Sec./007006/(a) An annual performance audit of the vehicle infor- mation processing system (VIPS) and the Kansas computer assisted mass appraisal system (KS CAMA), at the state and county levels, shall be conducted either by the legislative post auditor or by a firm, as defined by K.S.A. 46-1112, and amendments thereto, under contract with the legislative post auditor in accordance with the provisions of the legislative post audit act. Such audit shall include a review of the operations, main- tenance or improvements of the equipment and software of the VIPS and KS CAMA systems. The audit report shall be submitted to the legislature at the commencement of the regular sessions of the legislature held dur- ing 1997, 1998 and 1999.

(b) The auditor to conduct the audit work required under this section shall be specified in accordance with K.S.A. 46-1122, and amendments thereto. If the legislative post audit committee specifies under such stat- ute that a firm is to perform such audit, such firm shall be selected and shall perform such audit as provided in K.S.A. 46-1123, and amendments thereto and K.S.A. 46-1125 through 46-1127, and amendments thereto. If the audit work is conducted under contract with a firm, the contract cost of the audit shall be paid by the department of revenue.

Sec./007006/K.S.A. 1995 Supp. 8-135, 8-135a, 8-139, 8-145, 8-170, 8- 171, 8-198, 74-2012 and 74-2013 are hereby repealed.

Sec./007006/This act shall take effect and be in force from and after its publication in the statute book.

Approved May 17, 1996.