CHAPTER 114 HOUSE BILL No. 2142 An  Act concerning vehicles; providing for certain fees; amending K.S.A. 1998 Supp. 8-
135, 8-135a, 8-139, 8-145, 8-145d, 8-170, 8-171, 8-198 and 74-2013 and repealing the
existing sections.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 1998 Supp. 8-135 is hereby amended to read as
follows: (a) Upon the transfer of ownership of any vehicle registered un-
der 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.
Except as provided in K.S.A. 8-172, and amendments thereto, and K.S.A.
1998 Supp. 8-1,147, and amendments thereto, 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 or sale of any vehicle by any
person or dealer, or upon any transfer in accordance with K.S.A. 1998
Supp. 59-3511, and amendments thereto, 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 or reregistration of
the vehicle, but no person shall operate the vehicle on any highway in
this state during the thirty-day period without 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 high-
ways 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 passenger vehicle acquired, but
has not yet had the registration transferred in the office of the county
treasurer, such person may operate the motorcycle 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. In
addition to any other fee required for the issuance of a certificate of title,
any applicant obtaining a certificate of title for a repossessed vehicle shall
pay a fee of $3.

      (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, 1999 2002, $6 until July 1, 2004, and $3.50 thereafter, in addition to
the fee for registration of such vehicle, trailer or semitrailer. The certif-
icate 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 15 20 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, 1999 2002, $6 until July 1, 2004, and $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, 1999 2002, $6 until July 1, 2004, and $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 encum-
brance 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 pre-
sented 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).

      (10) Motor vehicles may be held and titled in transfer-on-death form.

      (11) Notwithstanding the provisions of this act with respect to time
requirements for delivery of a certificate of title, or manufacturer's state-
ment of origin, as applicable, any person who chooses to reaffirm the sale
in writing on a form approved by the division which advises them of their
rights pursuant to paragraph (7) of subsection (c) and who has received
and accepted assignment of the certificate of title or manufacturer's state-
ment of origin for the vehicle in issue may not thereafter void or set aside
the transaction with respect to the vehicle for the reason that a certificate
of title or manufacturer's statement of origin was not timely delivered,
and in such instances the sale of a vehicle shall not be deemed to be
fraudulent and void for that reason alone.

      (12) The owner of any vehicle assigning a certificate of title in ac-
cordance with the provisions of this section may file with the division a
form indicating that such owner has assigned such certificate of title. Such
forms shall be furnished by the division and shall contain such information
as the division may require. Any owner filing a form as provided in this
paragraph shall pay a fee of $10. The filing of such form shall be prima
facie evidence that such certificate of title was assigned and shall create
a rebuttable presumption. If the assignee of a certificate of title fails to
make application for registration, an owner assigning such title and filing
the form in accordance with the provisions of this paragraph shall not be
held liable for damages resulting from the operation of such vehicle.

      Sec.  2. K.S.A. 1998 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, 1999 2002, $6 until July 1, 2004, and
$3.50 thereafter, for the title, and no charge shall be made for the reg-
istration, except, when applicable, the fee for transfer of registration un-
der K.S.A. 8-135, and amendments thereto.

      Sec.  3. K.S.A. 1998 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, 1999 2002, $6 until July 1, 2004, and $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 own-
ership 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 removing the same from the vehicle so transferred, then and
in such case no fee shall be charged for such duplicate or substitute
license plate, including 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. 1998 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)  (1) On July 1, 1997, through June 30, 1999 2004, $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,. On July 1, 1999, through June
30, 2002, $1 of each certificate of title fee collected and remitted to the
secretary of revenue, shall be deposited with the state treasurer and cred-
ited to the VIPS/CAMA technology hardware fund.

      (2) For repossessed vehicles, $3 of each certificate of title fee col-
lected and remitted to the secretary of revenue, shall be deposited with
the state treasurer and credited to the repossessed certificates of title fee
fund.

      Sec.  5. On and after January 1, 2000, K.S.A. 1998 Supp. 8-145d is
hereby amended to read as follows: 8-145d. In addition to the annual
vehicle registration fees prescribed by K.S.A. 8-143, 8-143b, 8-143c, 8-
143g, 8-143h, 8-143i, 8-167, 8-172 and 8-195 and amendments to any of
such sections any applicant for vehicle registration or renewal thereof for
registration or any applicant for a placard or identification card issued
under K.S.A. 8-1,125, and amendments thereto, shall pay a service fee in
the amount of $2.25 of $3 to the county treasurer at the time of making
such application. In addition to such service fee, the county treasurer may
charge any applicant for vehicle registration or renewal thereof for reg-
istration, a satellite registration fee in an amount not to exceed $5 per
vehicle registration or renewal thereof for registration, when such appli-
cation is made at a satellite registration facility established by the county
treasurer. The county treasurer shall deposit all amounts received under
this section in the special fund created pursuant to K.S.A. 8-145, and
amendments thereto, and such amounts shall be used by the county trea-
surer for all purposes for which such fund has been appropriated by law,
and such additional amounts are hereby appropriated as other amounts
deposited in such fund.

      Sec.  6. K.S.A. 1998 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. On and after January 1, 2000,
any model year license plate transferred shall comply with the provisions
of subsection (c) of K.S.A. 8-172, and amendments thereto.

      (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, 1999 2002, $6 until July 1, 2004, and $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 certificate 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, 1999
2002, $6 until July 1, 2004, and $3.50 thereafter.

      Sec.  7. K.S.A. 1998 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, 1999 2002,
$6 until July 1, 2004, and $3.50 thereafter, registration receipt, $1, license
plates, $2.

      Sec.  8. K.S.A. 1998 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, 1999 2002, $6 until July 1, 2004, and $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.

      (h) Any person who, on July 1, 1996, is the owner of an all-terrain
vehicle, as defined in K.S.A. 8-126, and amendments thereto, shall not
be required to file an application for a nonhighway certificate of title
under the provisions of this section for such all-terrain vehicle, unless the
person transfers an interest in such all-terrain vehicle.

      Sec.  9. K.S.A. 1998 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, 1999 2002, $6 until July 1,
2004, and $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.

 Sec.  10. K.S.A. 1998 Supp. 8-135, 8-135a, 8-139, 8-145, 8-170, 8-
171, 8-198 and 74-2013 are hereby repealed.

      Sec.  11. On and after January 1, 2000, K.S.A. 1998 Supp. 8-145d is
hereby repealed.

 Sec.  12. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 16, 1999.
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