CHAPTER 34 HOUSE BILL No. 2794 (Amended by Chapter 134) An  Act relating to motor vehicles; concerning the registration thereof; amending K.S.A. 8-135, 8-145 and 8-145d and repealing the existing sections. Be it enacted by the Legislature of the State of Kansas:

      New Section  1. (a) Any auctioneer conducting auctions under sub-
paragraphs (D) or (E) of paragraph (2) of subsection (a) of K.S.A. 8-2401,
and amendments thereto, may obtain from the division, or an agent des-
ignated by the director of vehicles, a 72-hour transport permit authorizing
the purchaser of a vehicle at an auction conducted by such auctioneer, to
operate such vehicle for a period of 72 hours. In addition to the 72-hour
transport permit, the purchaser shall have the bill of sale. The fee for
each 72-hour transport permit shall be $3.

      (b) An auctioneer under subsection (a) who is a Kansas resident,
whose primary place of business is in Kansas and only for the purpose of
conducting auctions in Kansas, may purchase such 72-hour transport per-
mits in multiples of three upon making proper application and the pay-
ment of required fees. The application shall be to the division on a form
prescribed and furnished by the director of vehicles. The name of the
purchaser of the vehicle at the auction shall be shown on the 72-hour
permit issued. An auctioneer purchasing permits shall complete the ap-
plication and permit as required by the division and mail a copy of such
application to the division within 24 hours from the date of issuance of
such permit. Only one such permit may be used by the same purchaser
on the same vehicle. The division of vehicles may deny any auctioneer
the authority to purchase 72-hour transport permits if the auctioneer is
found to have issued more than one 72-hour transport permit to the
purchaser of a vehicle. This section shall be construed as a part of and
supplementary to the motor vehicle registration law of this state. The
division shall remit all fees collected under this section to the state trea-
surer in accordance with the provisions of K.S.A. 75-4215, and amend-
ments 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.

      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 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 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 until July 1, 2004, and $3.50 there-
after, 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 satis-
factory 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) 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 $3.50. A dealer may purchase reassignment forms in multiples of
five upon making proper application and the payment of required fees.

      Sec.  3. 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, through June 30, 2004, $2.50 of each certif-
icate of title fee collected and remitted to the secretary of revenue, shall
be remitted to the state treasurer who shall credit such $2.50 to the
Kansas highway patrol motor vehicle fund. On July 1, 1999, through June
30, 2002, $1 of each certificate of title fee collected and remitted to the
secretary of revenue, shall be 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) For reassignment forms, $2.50 of each reassignment form fee col-
lected and remitted to the secretary of revenue, shall be remitted to the
state treasurer who shall credit such $2.50 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 hard-
ware fund.

      Sec.  4. K.S.A. 8-145d is hereby amended to read as follows: 8-145d.
In addition to the annual vehicle registration fees prescribed by K.S.A.
8-143, 8-143b, 8-143c, 8-143g, 8-143h, 8-143i, 8-167, 8-172 and 8-195
and amendments to any of such sections thereto, and section 1, and
amendments thereto, any applicant for vehicle registration or renewal
thereof for registration or any applicant for a placard or identification
card issued under K.S.A. 8-1,125, and amendments thereto, shall pay a
service fee in the amount of $3 to the county treasurer at the time of
making such application. In addition to such service fee, the county trea-
surer 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 registration, when such
application is made at a satellite registration facility established by the
county treasurer. The county treasurer shall deposit all amounts received
under this section in the special fund created pursuant to K.S.A. 8-145,
and amendments thereto, and such amounts shall be used by the county
treasurer for all purposes for which such fund has been appropriated by
law, and such additional amounts are hereby appropriated as other
amounts deposited in such fund.

      Sec.  5. K.S.A. 8-135, 8-145 and 8-145d are hereby repealed.

 Sec.  6. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 5, 2002.
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