CHAPTER 134
HOUSE Substitute for SENATE BILL No. 364
(Amends Chapters 16, 24, 34, 48, 49, 70 and 134)
(Amended by Chapter 190)
An  Act concerning certificates of title; amending K.S.A. 8-126, as amended by section 2
of 2002 House Bill No. 2663, 8-135, 8-135, as amended by section 2 of House Substitute
for Senate Bill No. 364, 8-135a, 8-139, 8-145, 8-145d, as amended by section 1 of 2002
House Bill No. 2662, 8-170, 8-171, 8-198, 58-4204, as amended by section 4 of 2002
House Bill No. 2723 and 58-4204, as amended by section 11 of 2002 House Substitute
for Senate Bill No. 364 and K.S.A. 2001 Supp. 74-2013 and repealing the existing sec-
tions; also repealing K.S.A. 8-126, as amended by section 3 of 2002 Senate Bill No. 449,
8-135, as amended by section 1 of 2002 Senate Bill No. 507, 8-135, as amended by
section 2 of 2002 House Bill No. 2794, 8-135, as amended by section 4 of 2002 Senate
Bill No. 449, 8-145, as amended by section 3 of 2002 House Bill No. 2794, 8-145d, as
amended by section 4 of 2002 House Bill No. 2794 and 58-4204, as amended by section
6 of 2002 Senate Bill No. 449.

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

      Section  1. On and after January 1, 2003, K.S.A. 8-126, as amended
by section 2 of 2002 House Bill No. 2663, is hereby amended to read as
follows: 8-126. The following words and phrases when used in this act
shall have the meanings respectively ascribed to them herein:

      (a) ``Vehicle'' means every device in, upon or by which any person or
property is or may be transported or drawn upon a public highway, ex-
cepting electric personal assistive mobility devices or devices moved by
human power or used exclusively upon stationary rails or tracks.

      (b) ``Motor vehicle'' means every vehicle, other than a motorized bi-
cycle or a motorized wheelchair, which is self-propelled.

      (c) ``Truck'' means a motor vehicle which is used for the transporta-
tion or delivery of freight and merchandise or more than 10 passengers.

      (d) ``Motorcycle'' means every motor vehicle designed to travel on
not more than three wheels in contact with the ground, except any such
vehicle as may be included within the term ``tractor'' as herein defined.

      (e) ``Truck tractor'' means every motor vehicle designed and used
primarily for drawing other vehicles, and not so constructed as to carry a
load other than a part of the weight of the vehicle or load so drawn.

      (f) ``Farm tractor'' means every motor vehicle designed and used as
a farm implement power unit operated with or without other attached
farm implements in any manner consistent with the structural design of
such power unit.

      (g) ``Road tractor'' means every motor vehicle designed and used for
drawing other vehicles, and not so constructed as to carry any load
thereon independently, or any part of the weight of a vehicle or load so
drawn.

      (h) ``Trailer'' means every vehicle without motive power designed to
carry property or passengers wholly on its own structure and to be drawn
by a motor vehicle.

      (i) ``Semitrailer'' means every vehicle of the trailer type so designed
and used in conjunction with a motor vehicle that some part of its own
weight and that of its own load rests upon or is carried by another vehicle.

      (j) ``Pole trailer'' means any two-wheel vehicle used as a trailer with
bolsters that support the load, and do not have a rack or body extending
to the tractor drawing the load.

      (k) ``Specially constructed vehicle'' means any vehicle which shall not
have been originally constructed under a distinctive name, make, model
or type, or which, if originally otherwise constructed shall have been ma-
terially altered by the removal of essential parts, or by the addition or
substitution of essential parts, new or used, derived from other vehicles
or makes of vehicles.

      (l) ``Foreign vehicle'' means every motor vehicle, trailer or semitrailer
which shall be brought into this state otherwise than in ordinary course
of business by or through a manufacturer or dealer and which has not
been registered in this state.

      (m) ``Person'' means every natural person, firm, partnership, associ-
ation or corporation.

      (n) ``Owner'' means a person who holds the legal title of a vehicle, or
in the event a vehicle is the subject of an agreement for the conditional
sale thereof with the right of purchase upon performance of the condi-
tions stated in the agreement and with an immediate right of possession
vested in the conditional vendee or in the event a vehicle is subject to a
lease of 30 days or more with an immediate right of possession vested in
the lessee; or in the event a party having a security interest in a vehicle
is entitled to possession, then such conditional vendee or lessee or secured
party shall be deemed the owner for the purpose of this act.

      (o) ``Nonresident'' means every person who is not a resident of this
state.

      (p) ``Manufacturer'' means every person engaged in the business of
manufacturing motor vehicles, trailers or semitrailers.

      (q) ``New vehicle dealer'' means every person actively engaged in the
business of buying, selling or exchanging new motor vehicles, travel trail-
ers, trailers or vehicles and who holds a dealer's contract therefor from a
manufacturer or distributor and who has an established place of business
in this state.

      (r) ``Used vehicle dealer'' means every person actively engaged in the
business of buying, selling or exchanging used vehicles, and having an
established place of business in this state and who does not hold a dealer's
contract for the sale of new motor vehicles, travel trailers, trailers or
vehicles.

      (s) ``Highway'' means every way or place of whatever nature open to
the use of the public as a matter of right for the purpose of vehicular
travel. The term ``highway'' shall not be deemed to include a roadway or
driveway upon grounds owned by private owners, colleges, universities
or other institutions.

      (t) ``Department'' or ``motor vehicle department'' or ``vehicle depart-
ment'' means the division of vehicles of the department of revenue, acting
directly or through its duly authorized officers and agents.

      (u) ``Commission'' or ``state highway commission'' means the director
of vehicles of the department of revenue.

      (v) ``Division'' means the division of vehicles of the department of
revenue.

      (w) ``Travel trailer'' means every vehicle without motive power de-
signed to be towed by a motor vehicle constructed primarily for recrea-
tional purposes.

      (x) ``Passenger vehicle'' means every motor vehicle, as herein defined,
which is designed primarily to carry 10 or fewer passengers, and which
is not used as a truck.

      (y) ``Self-propelled farm implement'' means every farm implement
designed for specific use applications with its motive power unit perma-
nently incorporated in its structural design.

      (z) ``Farm trailer'' means every trailer as defined in subsection (h) of
this section and every semitrailer as defined in subsection (i) of this sec-
tion, designed and used primarily as a farm vehicle.

      (aa) ``Motorized bicycle'' means every device having two tandem
wheels or three wheels, which may be propelled by either human power
or helper motor, or by both, and which has:

      (1) A motor which produces not more than 3.5 brake horsepower;

      (2) a cylinder capacity of not more than 130 cubic centimeters;

      (3) an automatic transmission; and

      (4) the capability of a maximum design speed of no more than 30
miles per hour.

      (bb) ``All-terrain vehicle'' means any motorized nonhighway vehicle
45 inches or less in width, having a dry weight of 650 pounds or less,
traveling on three or more low-pressure tires, having a seat designed to
be straddled by the operator. As used in this subsection, low-pressure tire
means any pneumatic tire six inches or more in width, designed for use
on wheels with rim diameter of 12 inches or less, and utilizing an oper-
ating pressure of 10 pounds per square inch or less as recommended by
the vehicle manufacturer.

      (cc) ``Implement of husbandry'' means every vehicle designed or
adapted and used exclusively for agricultural operations, including feed-
lots, and only incidentally moved or operated upon the highways. Such
term shall include, but not be limited to:

      (1) A farm tractor;

      (2) a self-propelled farm implement;

      (3) a fertilizer spreader, nurse tank or truck permanently mounted
with a spreader used exclusively for dispensing or spreading water, dust
or liquid fertilizers or agricultural chemicals, as defined in K.S.A. 2-2202,
and amendments thereto, regardless of ownership;

      (4) a truck mounted with a fertilizer spreader used or manufactured
principally to spread animal dung;

      (5) a mixer-feed truck owned and used by a feedlot, as defined in
K.S.A. 47-1501, and amendments thereto, and specially designed and
used exclusively for dispensing food to livestock in such feedlot.

      (dd) ``Motorized wheelchair'' means any self-propelled vehicle de-
signed specifically for use by a physically disabled person that is incapable
of a speed in excess of 15 miles per hour.

      (ee) ``Oil well servicing, oil well clean-out or oil well drilling machin-
ery or equipment'' means a vehicle constructed as a machine used exclu-
sively for servicing, cleaning-out or drilling an oil well and consisting in
general of a mast, an engine for power, a draw works and a chassis per-
manently constructed or assembled for one or more of those purposes.
The passenger capacity of the cab of a vehicle shall not be considered in
determining whether such vehicle is an oil well servicing, oil well clean-
out or oil well drilling machinery or equipment.

      (ff) ``Electric personal assistive mobility device'' means a self-balanc-
ing two nontandem wheeled device, designed to transport only one per-
son, with an electric propulsion system that limits the maximum speed of
the device to 15 miles per hour or less.

      (gg) ``Electronic certificate of title'' means any electronic record of
ownership, including any lien or liens that may be recorded, retained by
the division in accordance with section 1 of 2002 Senate Bill No. 449, and
amendments thereto.

      Sec.  2. K.S.A. 8-135 is hereby amended to read as follows: 8-135. (a)
Upon the transfer of ownership of any vehicle registered 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 reg-
istration, and the license plate shall be removed by the owner thereof.
Except as provided in K.S.A. 8-172, and amendments thereto, and 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 trans-
ferred, 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. 2001
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, salvage vehicle or rebuilt
salvage 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 or salvage vehicle. In addition, the reverse side shall
contain two forms for reassignment by a dealer, stating the liens or en-
cumbrances 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, se-
curity agreement, or executory 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 institution 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, 2002, $6 $8 until July 1, 2004, and $3.50 thereafter, in addition to the
fee for registration 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 pro-
vided in article 9 of chapter 84 of the Kansas Statutes Annotated, 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 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, 2002, $6 $8 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 ac-
quires 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, 2002, $6 $8 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.

      (13) Application for a certificate of title on a boat trailer with a gross
weight over 2,000 pounds shall be made by the owner or the owner's
agent upon a form to be furnished by the division and shall contain such
information as the division shall determine necessary. The division may
waive any information requested on the form if it is not available. The
application together with a bill of sale for the boat trailer shall be accepted
as prima facie evidence that the applicant is the owner of the boat trailer,
provided that a Kansas title for such trailer has not previously been issued.
If the application and bill of sale are used to obtain a certificate of title
for a boat trailer under this paragraph, the certificate of title shall not be
issued until an inspection in accordance with subsection (a) of K.S.A. 8-
116a, and amendments thereto, has been completed.

      (14) In addition to the two forms for reassignment under paragraph
(2) of subsection (c), a dealer may attach one additional reassignment
form to a certificate of title. The director of vehicles shall prescribe and
furnish such reassignment forms. The reassignment form shall be used by
a dealer when selling the vehicle to another dealer or the ultimate owner
of the vehicle only when the two reassignment forms under paragraph (2)
of subsection (c) have already been used. The fee for a reassignment form
shall be $4.50 until July 1, 2004, and $3.50 thereafter. A dealer may
purchase reassignment forms in multiples of five upon making proper
application and the payment of required fees.

      Sec.  3. On and after January 1, 2003, K.S.A. 8-135, as amended by
section 2 of House Substitute for Senate Bill No. 364, is hereby amended
to read as follows: 8-135. (a) Upon the transfer of ownership of any vehicle
registered 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. Except as provided in K.S.A. 8-172, and amendments
thereto, and 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. 2001
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, salvage vehicle or rebuilt
salvage 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, and to any elec-
tronic certificate of title, except to the extent such paragraphs are made
inapplicable by or are inconsistent with section 1 of 2002 Senate Bill No.
449, and amendments thereto, or with rules and regulations adopted pur-
suant to section 1 of 2002 Senate Bill No. 449, and amendments thereto.

      The provisions of paragraphs (1) through (14) shall apply to any cer-
tificate of title issued prior to January 1, 2003, which indicates that there
is a lien or encumbrance on such vehicle.

      (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. 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 or salvage vehicle. In addition, the reverse side shall
contain two forms for reassignment by a dealer, stating the liens or en-
cumbrances 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, se-
curity agreement, or executory 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 institution 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 $8 until July
1, 2004, and $3.50 thereafter, in addition to the fee for registration 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 provided in article 9 of chapter
84 of the Kansas Statutes Annotated, 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 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 comple-
tion and timely mailing or delivery of a notice of security 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 $8 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 de-
liver the certificate of title, application, and a fee of $8 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 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 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.

      (13) Application for a certificate of title on a boat trailer with a gross
weight over 2,000 pounds shall be made by the owner or the owner's
agent upon a form to be furnished by the division and shall contain such
information as the division shall determine necessary. The division may
waive any information requested on the form if it is not available. The
application together with a bill of sale for the boat trailer shall be accepted
as prima facie evidence that the applicant is the owner of the boat trailer,
provided that a Kansas title for such trailer has not previously been issued.
If the application and bill of sale are used to obtain a certificate of title
for a boat trailer under this paragraph, the certificate of title shall not be
issued until an inspection in accordance with subsection (a) of K.S.A. 8-
116a, and amendments thereto, has been completed.

      (14) In addition to the two forms for reassignment under paragraph
(2) of subsection (c), a dealer may attach one additional reassignment
form to a certificate of title. The director of vehicles shall prescribe and
furnish such reassignment forms. The reassignment form shall be used
by a dealer when selling the vehicle to another dealer or the ultimate
owner of the vehicle only when the two reassignment forms under par-
agraph (2) of subsection (c) have already been used. The fee for a reas-
signment form shall be $4.50 until July 1, 2004, and $3.50 thereafter. A
dealer may purchase reassignment forms in multiples of five upon making
proper application and the payment of required fees.

      Sec.  4. K.S.A. 8-135a is hereby amended to read as follows: 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, 2002, $6 $8 until July 1, 2004, and $3.50 thereafter, for the
title, and no charge shall be made for the registration, except, when ap-
plicable, the fee for transfer of registration under K.S.A. 8-135, and
amendments thereto.

      Sec.  5. K.S.A. 8-139 is hereby amended to read as follows: 8-139. In
the event that any license plate, certificate of title, registration decal 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 or substitute 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,
2002, $6 $8 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 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.  6. K.S.A. 8-145 is hereby amended to read as follows: 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 registration 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 furnished by the
division of vehicles, one copy of which shall be filed in the county trea-
surer'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. The secretary of revenue shall remit all such fees re-
mitted to the state treasurer in accordance with the provisions of K.S.A.
75-4215, and amendments thereto. Upon receipt of each such remittance,
the state treasurer shall deposit the entire amount in the state treasury
to the credit of the state highway fund, except as provided in subsection
(d).

      (d)  (1) On July 1, 1997 2002, through June 30, 2004, $2.50 $3.50 of
each certificate of title fee collected and remitted to the secretary of
revenue, shall be remitted to the state treasurer who shall credit such
$2.50 $3.50 to the Kansas highway patrol motor vehicle fund. On July 1,
1999, through June 30, 2002 2004, $1 of each certificate of title fee col-
lected and remitted to the secretary of revenue, shall be remitted to the
state treasurer who shall credit such $1 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 remitted to the
state treasurer who shall credit such $3 to the repossessed certificates of
title fee fund.

      (3) On July 1, 2002, through June 30, 2004, $3.50 of each reassign-
ment form fee collected and remitted to the secretary of revenue, shall be
remitted to the state treasurer who shall credit such $3.50 to the Kansas
highway patrol motor vehicle fund. One dollar of each reassignment form
fee collected and remitted to the secretary of revenue, shall be remitted to
the state treasurer who shall credit such $1 to the VIPS/CAMA technology
hardware fund.

      Sec.  7. K.S.A. 8-145d, as amended by section 1 of 2002 House Bill
No. 2662, 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
thereto, and section 1 of 2002 House Bill No. 2794, and amendments
thereto, any applicant for vehicle registration or renewal thereof for reg-
istration shall pay a service fee in the amount 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 registration, a satellite registration fee in an amount
not to exceed $5 per vehicle registration or renewal thereof for registra-
tion, when such application is made at a satellite registration facility es-
tablished 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 treasurer for all purposes for which such fund has
been appropriated by law, and such additional amounts are hereby ap-
propriated as other amounts deposited in such fund.

      Sec.  8. K.S.A. 8-170 is hereby amended to read as follows: 8-170. (a)
Upon the transfer of ownership of any vehicle registered under the fore-
going 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 antique 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, 2002, $6 $8 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, 2002,
$6 $8 until July 1, 2004, and $3.50 thereafter.

      Sec.  9. K.S.A. 8-171 is hereby amended to read as follows: 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 immediate 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, 2002, $6 $8 until July 1, 2004,
and $3.50 thereafter, registration receipt, $1, license plates, $2.

      Sec.  10. K.S.A. 8-198 is hereby amended to read as follows: 8-198.
(a) A nonhighway or salvage vehicle shall not be required to be registered
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 oth-
erwise 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 or salvage
vehicle, the purchaser thereof shall obtain a nonhighway certificate of
title or salvage title, whichever is applicable, in the following 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 or a salvage title, whichever is
applicable, to the purchaser of such nonhighway vehicle or salvage vehicle
in the same manner and under the same conditions prescribed 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 certificate of title
or salvage 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 or salvage vehicle may surrender such certif-
icate of title to the division of vehicles and make application to the division
for a nonhighway certificate of title or salvage title, whichever is appli-
cable, 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, salvage title or the regular
certificate of title with such form attached to the purchaser of the non-
highway vehicle or salvage vehicle. Upon receipt of the nonhighway cer-
tificate of title, salvage title or the regular certificate of title with such
form attached, the purchaser shall make application for a new nonhighway
certificate of title or salvage title, whichever is applicable, as provided 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
or salvage title, whichever is applicable, 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 or salvage ve-
hicle. If the division is satisfied that the transferor is the owner, the di-
vision shall issue a nonhighway certificate of title or salvage title, which-
ever is applicable, for such vehicle, and the transferor shall assign the
same to the purchaser, who shall make application for a new nonhighway
certificate of title or salvage title, whichever is applicable, as provided in
subsection (c).

      (c) Every purchaser of a nonhighway vehicle or salvage vehicle,
whether assigned a nonhighway certificate of title, salvage title or a regular
certificate of title with the form specified in paragraph (2) of subsection
(b) attached, shall make application to the county treasurer of the county
in which such person resides for a new nonhighway certificate of title or
salvage title, whichever is applicable, 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 or salvage title is made is
a nonhighway vehicle or salvage vehicle, whichever is applicable, and
other provisions the director deems necessary. Each application for a
nonhighway certificate of title or salvage title shall be accompanied by a
fee of $7 until July 1, 2002, $6 $8 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 appli-
cation for a certificate of title thereunder, an additional fee of $2.

      (d) A nonhighway certificate of title or salvage title shall be in form
and color as prescribed by the director of vehicles. A nonhighway certif-
icate of title or salvage title shall indicate clearly and distinctly on its face
that it is issued for a nonhighway vehicle or salvage vehicle, whichever is
applicable. A nonhighway certificate of title or salvage title shall contain
substantially the same information as required on a certificate of title
issued under K.S.A. 8-135, and amendments thereto, and other infor-
mation the director deems necessary.

      (e)  (1) A nonhighway certificate of title or salvage title may be trans-
ferred 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 cer-
tificate of title or salvage title may be assigned and transferred only while
the vehicle remains a nonhighway vehicle or salvage vehicle.

      (2) Upon transfer or sale of a nonhighway vehicle in a condition which
will allow the registration of such vehicle, the owner shall assign the non-
highway certificate of title to the purchaser, and the purchaser shall obtain
a certificate 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 amend-
ments thereto.

      (3) Upon transfer or sale of a salvage 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 salvage title to the purchaser,
and the purchaser shall obtain a rebuilt salvage title and register such
vehicle as provided in K.S.A. 8-135, and amendments thereto. No rebuilt
salvage title shall be issued for a vehicle for which there has been issued
a salvage title until there has been compliance with K.S.A. 8-116a, and
amendments thereto.

      (f) The owner of a salvage vehicle which has been issued a salvage
title and 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 salvage 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 commissioner of insurance, a state-
ment attesting to the correctness of the information concerning financial
security, the vehicle identification number and a description of the ve-
hicle. 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 administrative expenses, and shall deposit
the remainder in a special fund for expenses of issuing such permits.

      (g) A nonhighway vehicle or salvage vehicle for which a nonhighway
certificate of title or salvage 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 pursuant to subsection (f). Any person who knowingly
makes a false statement concerning financial security in obtaining a per-
mit pursuant to subsection (f), or who fails to obtain a permit when re-
quired 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.  11. K.S.A. 58-4204, as amended by section 4 of 2002 House Bill
No. 2723, is hereby amended to read as follows: 58-4204. (a) For purposes
of this section, a manufactured home or mobile home shall be considered
to be personal property. Upon the transfer or sale of any manufactured
home or mobile home by any person or dealer, the new owner thereof,
within 30 days, inclusive of weekends and holidays, from the date of such
transfer or sale, shall make application to the division for the issuance of
a certificate of title evidencing the new owner's ownership of such man-
ufactured home or mobile home. An application for certificate of title
shall be made by the owner of the manufactured home or mobile home,
or the owner's agent, upon a form furnished by the division, and it shall
state all liens or encumbrances thereon and such other information as the
director may require. Notwithstanding any other provision of this section,
no certificate of title, other than a duplicate title, shall be issued for a
manufactured home or mobile home having any unreleased lien or en-
cumbrance thereon, unless the transfer of such manufactured home or
mobile home has been consented to in writing by the holder of the lien
or encumbrance. Such consent shall be in a form approved by the direc-
tor. The county treasurer shall use reasonable diligence in ascertaining
whether the facts stated in such application are true, and if satisfied that
the applicant is the lawful owner of the manufactured home or mobile
home, or otherwise entitled to have the certificate of title therefor issued
in such applicant's name, shall so notify the division, who shall issue an
appropriate certificate of title.

      (b) The director shall design a distinctive certificate of title to be
issued to owners of manufactured homes and mobile homes, so as to be
distinguishable from certificates of title issued to owners of vehicles. The
certificate of title shall contain a statement of any liens or encumbrances
which the application discloses and shall provide such other information
as the director determines necessary and appropriate. 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 oaths. This assignment shall contain a statement
of all liens or encumbrances on the manufactured home or mobile home
at the time of assignment. When the ownership of any manufactured
home or mobile home passes by operation of law or by repossession upon
default of a lease, security agreement or executory sales contract, the
person owning such manufactured home or mobile home, upon furnish-
ing satisfactory proof to the county treasurer of such ownership, may
procure a certificate of title to the manufactured home or mobile home.

      (c) Dealers shall execute, upon delivery to the purchaser of every new
manufactured home, a manufacturer's statement of origin stating the liens
and encumbrances thereon. Such statement of origin shall be delivered
to the purchaser at the time of delivery of the manufactured home 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 director. 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 the 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 director. Upon the presentation to the division of a man-
ufacturer's statement of origin, by a manufacturer or dealer for a new
manufactured home, sold in this state, a certificate of title shall be issued.

      (d) The fee for each original certificate of title shall be $8 until July
1, 2004, and $3.50 thereafter. The certificate of title shall be good for the
life of the manufactured home or mobile home while owned or held by
the original holder of the certificate of title.

      (e) Upon sale and delivery to the purchaser of every manufactured
home or mobile home subject to a purchase money security interest, as
provided for in article 9 of chapter 84 of the Kansas Statutes Annotated,
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 director, describing the
manufactured home or mobile home and showing the name and address
of the secured party and of the debtor and such other information as the
director may require. The dealer or secured party may, within 10 days of
the sale and delivery, mail or deliver the notice of security interest, to-
gether 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 manufactured home or mobile home and a cer-
tificate of title is issued. The certificate of title shall indicate any security
interest in the manufactured home or mobile home. 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 comple-
tion and timely mailing or delivery of a notice of security interest by a
dealer or secured party shall perfect a security interest in the manufac-
tured home or mobile home described on the date of such mailing or
delivery.

      (f) In the event of a sale or transfer of ownership of a manufactured
home or mobile home for which a certificate of title has been issued,
which certificate of title is in the possession of the transferor at the time
of delivery of the manufactured home or mobile home, 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 director and printed thereon,
and the transferor shall deliver the same to the buyer at the time of
delivery to the buyer of the manufactured home or mobile home, or at a
time agreed upon by the parties, not to exceed 30 days, inclusive of week-
ends and holidays, after the time of delivery. The sale of a mobile home
or manufactured home by a manufactured home dealer without such
delivery of an assigned certificate of title is fraudulent and void, and it
shall constitute a violation of the Kansas manufactured housing act. The
agreement of the parties shall be executed on a form provided by the
division. The requirements of this subsection concerning delivery of an
assigned title are satisfied, if the transferor mails to the transferee, by
restricted mail, the assigned certificate of title within the 30 days, and if
the transferor is a dealer, as defined by K.S.A. 58-4202, and amendments
thereto, such transferor shall be deemed to have possession of the cer-
tificate 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, and a new certificate of title shall be issued to the buyer upon
payment of the fee of $8 until July 1, 2004, and $3.50 thereafter. If such
manufactured home or mobile home 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. If any manufactured home or mobile home is destroyed,
dismantled or sold as junk, the owner shall immediately notify the division
by surrendering the original or assigned certificate of title.

      (g) When a person acquires a security agreement on a manufactured
home or mobile home subsequent to the issuance of the original title on
such manufactured home or mobile home, such person shall require the
holder of the certificate of title to surrender the same and sign an appli-
cation for a mortgage title in such form as prescribed by the director.
Upon such surrender, the person shall immediately deliver the certificate
of title, application and a fee of $8 until July 1, 2004, and $3.50 thereafter
to the division. Upon receipt thereof the division shall issue a new cer-
tificate of title, showing the liens or encumbrances so created, but not
more than two liens or encumbrances may be shown upon a title. The
delivery of the certificate of title, application and fee to the division shall
perfect such person's security interest in the manufactured home or mo-
bile home described in the certificate of title. When a prior lienholder's
name is removed from the title, there must be satisfactory evidence pre-
sented 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 re-
stricted 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.

      (h) In the event of the sale of a manufactured home or mobile home
under the order of a court, 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 ownership
of such purchaser for the purpose of obtaining a certificate of title to such
manufactured home or mobile home. 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.

      (i) Any dealer who has acquired a manufactured home or mobile
home, 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 retain a Kansas certificate
of title therefor during the time such manufactured home or mobile home
remains in such dealer's possession and at such dealer's established or
supplemental place of business for the purpose of sale. Upon the sale of
any such manufactured home or mobile home, the dealer immediately
shall deliver to the purchaser or transferee the certificate of title issued
by the other state, properly endorsed and assigned to the purchaser or
transferee, together with an affidavit executed by the dealer setting forth:

      (1) That the dealer warrants to the purchaser or transferee and all
other persons who claim through the purchaser or transferee that, at the
time of the sale transfer and delivery by the dealers, the manufactured
home or mobile home was free and clear of all liens, mortgages and other
encumbrances, except those otherwise appearing on the title;

      (2) the information shown on the title relating to all previous assign-
ments, including the names of all previous titleholders shown thereon;
and

      (3) that the dealer has the right to sell and transfer the manufactured
home or mobile home.

      Sec.  12. On and after January 1, 2003, K.S.A. 58-4204, as amended
by section 11 of 2002 House Substitute for Senate Bill No. 364, is hereby
amended to read as follows: 58-4204. (a) For purposes of this section, a
manufactured home or mobile home shall be considered to be personal
property.

      (b) The provisions of this section shall apply to any electronic certif-
icate of title, except to the extent such provisions are made inapplicable
by or are inconsistent with section 2 of 2002 Senate Bill No. 449, and
amendments thereto, or with rules and regulations adopted pursuant to
section 2 of Senate Bill No. 449, and amendments thereto.

      The provisions of this section shall apply to any certificate of title issued
prior to January 1, 2003, which indicates that there is a lien or encum-
brance on such manufactured home or mobile home.

      (c) Upon the transfer or sale of any manufactured home or mobile
home by any person or dealer, the new owner thereof, within 30 days,
inclusive of weekends and holidays, from the date of such transfer or sale,
shall make application to the division for the issuance of a certificate of
title evidencing the new owner's ownership of such manufactured home
or mobile home. An application for certificate of title shall be made by
the owner of the manufactured home or mobile home, or the owner's
agent, upon a form furnished by the division, and it shall state all liens or
encumbrances thereon and such other information as the director may
require. Notwithstanding any other provision of this section, no certificate
of title, other than a duplicate title, shall be issued for a manufactured
home or mobile home having any unreleased lien or encumbrance
thereon, unless the transfer of such manufactured home or mobile home
has been consented to in writing by the holder of the lien or encum-
brance. Such consent shall be in a form approved by the director. The
county treasurer shall use reasonable diligence in ascertaining whether
the facts stated in such application are true, and if satisfied that the ap-
plicant is the lawful owner of the manufactured home or mobile home,
or otherwise entitled to have the certificate of title therefor issued in such
applicant's name, shall so notify the division, who shall issue an appro-
priate certificate of title.

      (b) (d) The director shall design a distinctive certificate of title to be
issued to owners of manufactured homes and mobile homes, so as to be
distinguishable from certificates of title issued to owners of vehicles. The
certificate of title shall contain a statement of any liens or encumbrances
which the application discloses and shall provide such other information
as the director determines necessary and appropriate. The certificate of
title shall contain upon the reverse side a form for assignment of title to
be executed by the owner. This assignment shall contain a statement of
all liens or encumbrances on the manufactured home or mobile home at
the time of assignment. When the ownership of any manufactured home
or mobile home passes by operation of law or by repossession upon de-
fault of a lease, security agreement or executory sales contract, the person
owning such manufactured home or mobile home, upon furnishing sat-
isfactory proof to the county treasurer of such ownership, may procure a
certificate of title to the manufactured home or mobile home.

      (c) (e) Dealers shall execute, upon delivery to the purchaser of every
new manufactured home, a manufacturer's statement of origin stating the
liens and encumbrances thereon. Such statement of origin shall be deliv-
ered to the purchaser at the time of delivery of the manufactured home
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 director. 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 the 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 director. Upon the presentation to the division of a man-
ufacturer's statement of origin, by a manufacturer or dealer for a new
manufactured home, sold in this state, a certificate of title shall be issued.

      (d) (f) The fee for each original certificate of title shall be $8 until
July 1, 2004, and $3.50 thereafter. The certificate of title shall be good
for the life of the manufactured home or mobile home while owned or
held by the original holder of the certificate of title.

      (e) (g) Upon sale and delivery to the purchaser of every manufactured
home or mobile home subject to a purchase money security interest, as
provided for in article 9 of chapter 84 of the Kansas Statutes Annotated,
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 director, describing the
manufactured home or mobile home and showing the name and address
of the secured party and of the debtor and such other information as the
director may require. The dealer or secured party may, within 10 days of
the sale and delivery, mail or deliver the notice of security interest, to-
gether 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 manufactured home or mobile home and a cer-
tificate of title is issued. The certificate of title shall indicate any security
interest in the manufactured home or mobile home. 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 comple-
tion and timely mailing or delivery of a notice of security interest by a
dealer or secured party shall perfect a security interest in the manufac-
tured home or mobile home described on the date of such mailing or
delivery.

      (f) (h) In the event of a sale or transfer of ownership of a manufac-
tured home or mobile home for which a certificate of title has been issued,
which certificate of title is in the possession of the transferor at the time
of delivery of the manufactured home or mobile home, 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 director and printed thereon,
and the transferor shall deliver the same to the buyer at the time of
delivery to the buyer of the manufactured home or mobile home, or at a
time agreed upon by the parties, not to exceed 30 days, inclusive of week-
ends and holidays, after the time of delivery. The sale of a mobile home
or manufactured home by a manufactured home dealer without such
delivery of an assigned certificate of title is fraudulent and void, and it
shall constitute a violation of the Kansas manufactured housing act. The
agreement of the parties shall be executed on a form provided by the
division. The requirements of this subsection concerning delivery of an
assigned title are satisfied, if the transferor mails to the transferee, by
restricted mail, the assigned certificate of title within the 30 days, and if
the transferor is a dealer, as defined by K.S.A. 58-4202, and amendments
thereto, such transferor shall be deemed to have possession of the cer-
tificate 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, and a new certificate of title shall be issued to the buyer upon
payment of the fee of $8 until July 1, 2004, and $3.50 thereafter. If such
manufactured home or mobile home 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. If any manufactured home or mobile home is destroyed,
dismantled or sold as junk, the owner shall immediately notify the division
by surrendering the original or assigned certificate of title.

      (g) (i) When a person acquires a security agreement on a manufac-
tured home or mobile home subsequent to the issuance of the original
title on such manufactured home or mobile home, such person shall re-
quire the holder of the certificate of title to surrender the same and sign
an application for a mortgage title in such form as prescribed by the
director. Upon such surrender, the person shall immediately deliver the
certificate of title, application and a fee of $8 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.
The delivery of the certificate of title, application and fee to the division
shall perfect such person's security interest in the manufactured home or
mobile home described in the certificate of title. When a prior lien-
holder's name is removed from the title, there must be satisfactory evi-
dence 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.

      (h) (j) In the event of the sale of a manufactured home or mobile
home under the order of a court, 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
ownership of such purchaser for the purpose of obtaining a certificate of
title to such manufactured home or mobile home. 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.

      (i) (k) Any dealer who has acquired a manufactured home or mobile
home, 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 retain a Kansas certificate
of title therefor during the time such manufactured home or mobile home
remains in such dealer's possession and at such dealer's established or
supplemental place of business for the purpose of sale. Upon the sale of
any such manufactured home or mobile home, the dealer immediately
shall deliver to the purchaser or transferee the certificate of title issued
by the other state, properly endorsed and assigned to the purchaser or
transferee, together with an affidavit executed by the dealer setting forth:

      (1) That the dealer warrants to the purchaser or transferee and all
other persons who claim through the purchaser or transferee that, at the
time of the sale transfer and delivery by the dealers, the manufactured
home or mobile home was free and clear of all liens, mortgages and other
encumbrances, except those otherwise appearing on the title;

      (2) the information shown on the title relating to all previous assign-
ments, including the names of all previous titleholders shown thereon;
and

      (3) that the dealer has the right to sell and transfer the manufactured
home or mobile home.

      Sec.  13. K.S.A. 2001 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, 2002, $6 $8 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.  14. K.S.A. 8-135, 8-135, as amended by section 1 of 2002 Senate
Bill No. 507, 8-135, as amended by section 2 of 2002 House Bill No.
2794, 8-135a, 8-139, 8-145, 8-145, as amended by section 3 of 2002 House
Bill No. 2794, 8-145d, as amended by section 1 of 2002 House Bill No.
2662, 8-145d, as amended by section 4 of 2002 House Bill No. 2794, 8-
170, 8-171, 8-198 and 58-4204, as amended by section 4 of 2002 House
Bill No. 2723 and K.S.A. 2001 Supp. 74-2013 are hereby repealed. 
Sec.  15. On and after January 1, 2003, K.S.A. 8-126, as amended by
section 2 of 2002 House Bill No. 2663, 8-126, as amended by section 3
of 2002 Senate Bill No. 449, 8-135, as amended by section 4 of 2002
Senate Bill No. 449, 8-135, as amended by section 2 of 2002 House Sub-
stitute for Senate Bill No. 364, 58-4204, as amended by section 6 of 2002
Senate Bill No. 449 and 58-4204, as amended by section 11 of 2002 House
Substitute for Senate Bill No. 364 are hereby repealed.
 Sec.  16. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 17, 2002.
__________