CHAPTER 48 SENATE BILL No. 449 (Amended by Chapter 134) An  Act relating to certificates of title; concerning electronic certificates of title; amending
K.S.A. 8-126, 8-135, 58-4202 and 58-4204 and repealing the existing sections. Be it enacted by the Legislature of the State of Kansas:

      New Section  1. (a) On and after January 1, 2003, when an assign-
ment of title or manufacturer's statement of origin indicates that there is
a lien or encumbrance on a vehicle or if a notice of security interest has
been filed with the division, the division shall retain possession of such
certificate of title electronically and shall create an electronic certificate
of title. The provisions of article 1 of chapter 8 of the Kansas Statutes
Annotated, and amendments thereto, shall apply to an electronic certif-
icate of title, except as otherwise provided by statute or by rules and
regulations adopted pursuant to subsection (b).

      (b) The secretary of revenue is hereby authorized to adopt rules and
regulations necessary to carry out the provisions of this section.

      New Sec.  2. (a) On and after January 1, 2003, when an assignment
of title or manufacturer's statement of origin indicates that there is a lien
or encumbrance on a manufactured home or mobile home or if a notice
of security interest has been filed with the division, the division shall retain
possession of such certificate of title electronically and shall create an
electronic certificate of title. The provisions of K.S.A. 58-4201, et seq.,
and amendments thereto, shall apply to an electronic certificate of title,
except as otherwise provided by statute or by rules and regulations
adopted pursuant to subsection (b).

      (b) The secretary of revenue is hereby authorized to adopt rules and
regulations necessary to carry out the provisions of this section.

      Sec.  3. K.S.A. 8-126 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 devices moved by human power or used exclusively upon station-
ary 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) ``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, and amendments thereto.

      Sec.  4. 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
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 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, and to any elec-
tronic certificate of title, except to the extent such paragraphs are made
inapplicable by or are inconsistent with section 1, and amendments
thereto or with rules and regulations adopted pursuant to section 1, and
amendments thereto.

      The provisions of paragraphs (1) through (12) 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 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 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 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.

      Sec.  5. K.S.A. 58-4202 is hereby amended to read as follows: 58-
4202. As used in the Kansas manufactured housing act:

      (a) ``Manufactured home'' means a structure which:

      (1) Is transportable in one or more sections which, in the traveling
mode, is 8 body feet or more in width or 40 body feet or more in length,
or, when erected on site, is 320 or more square feet, and which is built
on a permanent chassis and designed to be used as a dwelling, with or
without permanent foundation, when connected to the required utilities,
and includes the plumbing, heating, air conditioning and electrical sys-
tems contained therein; and

      (2) is subject to the federal manufactured home construction and
safety standards established pursuant to 42 U.S.C. § 5403.

      (b) ``Mobile home'' means a structure which:

      (1) Is transportable in one or more sections which, in the traveling
mode, is 8 body feet or more in width and 36 body feet or more in length
and is built on a permanent chassis and designed to be used as a dwelling,
with or without a permanent foundation, when connected to the required
utilities, and includes the plumbing, heating, air conditioning and elec-
trical systems contained therein; and

      (2) is not subject to the federal manufactured home construction and
safety standards established pursuant to 42 U.S.C. § 5403.

      (c) ``Modular home'' means a structure which is: (1) Transportable in
one or more sections; (2) not constructed on a permanent chassis; (3)
designed to be used as a dwelling on a permanent foundation when con-
nected to the required utilities, and includes the plumbing, heating, air
conditioning and electrical systems contained therein; and (4) certified by
its manufacturer as being constructed in accordance with a nationally
recognized building code.

      (d) ``Factory-built home'' means a mobile home, manufactured home
or modular home.

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

      (f) ``Director'' means the director of vehicles, either acting directly
or through officers or agents of the division of vehicles of the department
of revenue.

      (g) ``Manufactured home dealer'' or ``dealer'' means any person who,
for commission, money or other thing of value, is engaged in the business
of:

      (1) Buying, selling or offering or attempting to negotiate a sale of an
interest in manufactured homes or mobile homes; or

      (2) buying, selling or offering or attempting to negotiate a sale of an
interest in manufactured homes or mobile homes for other persons as an
agent, middleman or negotiator; or

      (3) bringing together buyers and sellers of manufactured homes or
mobile homes.

      (h) ``New manufactured home dealer'' means any manufactured
home dealer who is a party to a manufactured home sales agreement with
a manufactured home manufacturer, which manufactured home sales
agreement authorizes the manufactured home dealer to sell, exchange or
transfer new manufactured homes or parts and accessories made or sold
by such manufactured home manufacturer, and obligates the manufac-
tured home dealer to fulfill the warranty commitments of such manufac-
tured home manufacturer.

      (i) ``Used manufactured home dealer'' means any person actively en-
gaged in the business of buying, selling or exchanging used manufactured
homes or mobile homes.

      (j) ``Manufactured home manufacturer'' means any person who man-
ufactures, assembles and sells new manufactured homes to new manu-
factured home dealers for resale in this state.

      (k) ``Salesperson'' means any person who is employed as a salesperson
by a manufactured home dealer to sell manufactured homes or mobile
homes.

      (l) ``Factory representative'' means a representative employed by a
manufactured home manufacturer for the purpose of making or promot-
ing the sale of its new manufactured homes to new manufactured home
dealers, or for advertising or contacting its new manufactured dealers with
respect to the promotion and sale of manufactured homes and parts or
accessories for the same.

      (m) ``Manufactured home sales agreement'' means a contract be-
tween the manufacturer of manufactured homes and a new manufactured
home dealer, by which the dealer is entitled to purchase new manufac-
tured homes from the manufacturer for resale within this state.

      (n) ``Broker'' means any person who, for commission, money or other
thing of value, is engaged in the business of:

      (1) Selling or buying manufactured homes or mobile homes for other
persons as an agent, middleman or negotiator; or

      (2) bringing together buyers and sellers of manufactured homes or
mobile homes, but such term shall not include any person engaged in a
business in which the acts described in this subsection are only inciden-
tally performed.

      (o) ``Lending agency'' means any person, desiring to be licensed un-
der this act and engaged in the business of financing or lending money
to any person to be used in the purchase or financing of a manufactured
home or mobile home.

      (p) ``Established place of business'' means a building or structure,
other than a building or structure all or part of which is occupied or used
as a residence, owned either in fee or leased and designated as an office
or place to receive mail and keep records and conduct the routine of
business. To qualify as an established place of business, there shall be
located therein an operable telephone which shall be listed with the tel-
ephone company under the name of the licensee.

      (q) ``Supplemental place of business'' means a business location other
than that of the established place of business.

      (r) ``Licensee'' means any person issued a valid license pursuant to
the Kansas manufactured housing act.

      (s) ``Person'' means any natural person, partnership, firm, corporation
or association.

      (t) ``Electronic certificate of title'' means any electronic record of own-
ership, including any lien or liens that may be recorded, retained by the
division in accordance with section 2, and amendments thereto.

      Sec.  6. K.S.A. 58-4204 is hereby amended to read as follows: 58-
4204. (a) The provisions of this section shall apply to any electronic cer-
tificate of title, except to the extent such provisions are made inapplicable
by or are inconsistent with section 2, 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.

      (a) (b) 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) (c) 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) (d) 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) (e) The fee for each original certificate of title shall be $3.50. 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) (f) Upon sale and delivery to the purchaser of every manufactured
home or mobile home subject to a purchase money security interest, as
defined in K.S.A. 84-9-107 provided for in article 9 of chapter 84 of the
Kansas Statutes Annotated, and amendments thereto, the dealer or se-
cured party may complete a notice of security interest and, when so com-
pleted, 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, 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 manufactured home
or mobile home and a certificate 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 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.

      (f) (g) 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 $3.50. 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 as-
signed certificate of title.

      (g) (h) 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 $3.50 to the division. Upon
receipt thereof the division shall issue a new certificate of title, showing
the liens or encumbrances so created, but not more than two liens or
encumbrances may be shown upon a title. When a prior lienholder's name
is removed from the title, there must be satisfactory evidence presented
to the division that the lien or encumbrance has been paid. When the
indebtedness to a lienholder, whose name is shown upon a title, is paid
in full, such lienholder, within 10 days after written demand by restricted
mail, shall furnish to the holder of the title a release of lien or execute
such a release in the space provided on the title. For failure to comply
with such a demand, the lienholder shall be liable to the holder of the
title for $100 and also shall be liable for any loss caused to the holder by
such failure. When the indebtedness to a lienholder, whose name is
shown upon a title, is collected in full, such lienholder, within 30 days,
shall furnish notice to the holder of title that such indebtedness has been
paid in full and that such title may be presented to the lienholder at any
time for release of lien.

      (h) (i) 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) (j) 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 vehicle. 
Sec.  7. K.S.A. 8-126, 8-135, 58-4202 and 58-4204 are hereby re-
pealed.

      Sec.  8. This act shall take effect and be in force from and after Jan-
uary 1, 2003, and its publication in the statute book.

Approved April 9, 2002.
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