CHAPTER 30 HOUSE BILL No. 2193 An Act relating to certificates of title; concerning certain fees and the disposition thereof;
amending K.S.A. 2002 Supp. 8-135, 8-135a, 8-139, 8-145, 8-170, 8-171, 8-198, 58-4204
and 74-2013 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2002 Supp. 8-135 is hereby amended to read as
follows: 8-135. (a) Upon the transfer of ownership of any vehicle regis-
tered under this act, the registration of the vehicle and the right to use
any license plate thereon shall expire and thereafter there shall be no
transfer of any registration, and the license plate shall be removed by the
owner thereof. 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. 2002
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 K.S.A. 2002 Supp. 8-135d, and
amendments thereto, or with rules and regulations adopted pursuant to
K.S.A. 2002 Supp. 8-135d, and amendments thereto.

      The provisions of paragraphs (1) through (14) shall apply to any certif-
icate 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 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 mem-
bers 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 ascertaining whether the facts stated in
such application are true, and if satisfied 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, $10 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 $10. 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 agree-
ment 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 im-
mediately deliver the certificate of title, application, and a fee of $8 until
July 1, 2004, and $3.50 thereafter, $10 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 encum-
brances 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 in-
debtedness to a lienholder, whose name is shown upon a title, is paid in
full, such lienholder within 10 days after written demand by restricted
mail, shall furnish to the holder of the title a release of lien or execute
such a release in the space provided on the title. For failure to comply
with such a demand the lienholder shall be liable to the holder of the
title for $100 and also shall be liable for any loss caused to the holder by
such failure. When the indebtedness to a lienholder, whose name is
shown upon a title, is collected in full, such lienholder, within 30 days,
shall furnish notice to the holder of title that such indebtedness has been
paid in full and that such title may be presented to the lienholder at any
time for release of lien.

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

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

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

      (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
$6.50. A dealer may purchase reassignment forms in multiples of five
upon making proper application and the payment of required fees.

      Sec.  2. K.S.A. 2002 Supp. 8-135a is hereby amended to read as fol-
lows: 8-135a. A person in whose name a vehicle is titled and registered
may add their spouse's name by assigning the title from the titleholder
to titleholder and spouse and by applying for a name change title and
registration. A son or daughter in whose name a vehicle is titled and
registered may add a parent's name by assigning the title from such son
or daughter to such son or daughter and parent and by applying for a
name change title and registration. A parent may add a son or daughter's
name by assigning the title from such parent to such parent and parent's
son or daughter and by applying for a name change title and registration.
Application for name change title and registration shall be made in the
manner required by law, including certification of insurance coverage.
The fee shall be $8 until July 1, 2004, and $3.50 thereafter, $10 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.  3. K.S.A. 2002 Supp. 8-139 is hereby amended to read as fol-
lows: 8-139. In the event that any license plate, certificate of title, regis-
tration decal or registration receipt issued hereunder, shall be lost, mu-
tilated, or shall have become illegible, the person who is entitled thereto
shall make immediate application for and obtain a duplicate or substitute
therefor, upon furnishing information of such fact satisfactory to the di-
vision and upon payment of the required fees: Namely, certificate of title,
$8 until July 1, 2004, and $3.50 thereafter $10, 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 removing the
same from the vehicle so transferred, then and in such case no fee shall
be charged for such duplicate or substitute license plate, including any
registration decal affixed thereto, but the same shall be furnished free of
charge providing such person shall otherwise in all respects have complied
with the laws governing the transfer of ownership of such motor vehicle.

      Sec.  4. K.S.A. 2002 Supp. 8-145 is hereby amended to read as fol-
lows: 8-145. (a) All registration and certificates of title fees shall be paid
to the county treasurer of the county in which the applicant for registra-
tion resides or has an office or principal place of business within this state,
and the county treasurer shall issue a receipt in triplicate, on blanks fur-
nished by the division of vehicles, one copy of which shall be filed in the
county treasurer's office, one copy shall be delivered to the applicant and
the original copy shall be forwarded to the director of vehicles.

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

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

      (c) The county treasurer shall remit the remainder of all such fees
collected, together with the original copy of all applications, to the sec-
retary of revenue. 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, 2002, through June 30, 2004, $3.50 Three dollars
and fifty cents 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 $3.50 to the Kansas highway patrol motor vehicle fund. On
July 1, 1999, through June 30, 2004, $1 Three dollars 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 $3 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 Three dollars and
fifty cents of each reassignment 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 Three dollars 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 $3 to the VIPS/CAMA technology hardware fund.

      Sec.  5. K.S.A. 2002 Supp. 8-170 is hereby amended to read as fol-
lows: 8-170. (a) Upon the transfer of ownership of any vehicle registered
under the foregoing provisions of this act, its registration and right to use
the license plates thereon shall expire and thereafter there shall be no
transfer of any registration, and the license plates shall be removed by
the owner thereof and it shall be unlawful for any person other than the
person to whom such license plates were originally issued to have the
same in possession. In case of a transfer of ownership of a registered
vehicle the original owner of the license plates may register another an-
tique vehicle under the same license plate designation, upon application
therefor and the payment of a fee of $1.50. On and after January 1, 2000,
any model year license plate transferred shall comply with the provisions
of subsection (c) of K.S.A. 8-172, and amendments thereto.

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

      (c) Certificate of title:

      (1) Application for certificate of title on an antique vehicle shall be
made by the owner or the owner's agent upon a blank form to be fur-
nished by the division and shall contain such information as the division
shall determine necessary. The division may waive any information re-
quested on the form if it is not available. For any antique vehicle having
a model year prior to 1950, the application together with a bill of sale for
the antique vehicle shall be accepted as prima facie evidence that the
applicant is the owner of the vehicle and the certificate of title shall be
issued for such vehicle. If the application and bill of sale are used to obtain
a certificate of title for any antique vehicle having a model year of 1950
or later, the certificate of title shall not be issued until an inspection in
accordance with subsection (a) of K.S.A. 8-116, and amendments thereto,
has been completed. The certificate of title shall be delivered to the ap-
plicant. 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 $8
until July 1, 2004, and $3.50 thereafter $10. 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 under the provisions
of this subsection, 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 certif-
icate of title shall be issued to the buyer, the fee therefor being $8 until
July 1, 2004, and $3.50 thereafter $10.

      Sec.  6. K.S.A. 2002 Supp. 8-171 is hereby amended to read as fol-
lows: 8-171. In the event that any license plate, certificate of title or
registration receipt issued hereunder, shall be lost, mutilated, or shall
have become illegible, the person who is entitled thereto shall make im-
mediate application for and obtain a duplicate therefor, upon furnishing
information of such fact satisfactory to the division and upon payment of
the required fees: Namely, certificate of title, $8 until July 1, 2004, and
$3.50 thereafter $10, registration receipt, $1, license plates, $2.

      Sec.  7. K.S.A. 2002 Supp. 8-198 is hereby amended to read as fol-
lows: 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, lim-
iting or otherwise affecting the provisions of K.S.A. 8-142, and amend-
ments thereto, which make it unlawful for any person to operate or know-
ingly 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 $8 until July 1, 2004, and $3.50 thereafter $10, and if the application
is not made to the county treasurer within the time prescribed by K.S.A.
8-135, and amendments thereto, for making application for a certificate
of title thereunder, an additional fee of $2.

      (d) A nonhighway certificate of title 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.  8. K.S.A. 2002 Supp. 58-4204 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 K.S.A. 2002 Supp. 58-4204a, and amendments
thereto, or with rules and regulations adopted pursuant to K.S.A. 2002
Supp. 58-4204a, 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 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 encumbrance. Such consent shall be in a form
approved by the director. The county treasurer shall use reasonable dil-
igence in ascertaining whether the facts stated in such application are
true, and if satisfied that the applicant is the lawful owner of the manu-
factured home or mobile home, or otherwise entitled to have the certif-
icate of title therefor issued in such applicant's name, shall so notify the
division, who shall issue an appropriate certificate of title.

      (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.

      (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 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.

      (f) The fee for each original certificate of title shall be $8 until July
1, 2004, and $3.50 thereafter $10. 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.

      (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.

      (h) 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 $10. 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.

      (i) 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
$10 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 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.

      (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.

      (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.  9. K.S.A. 2002 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 $8 until July 1, 2004, and $3.50 thereafter,
$10 and surrender of the original title together with satisfactory evidence
that the lien has been paid, the department is hereby authorized to grant
a reissue of a certificate of title showing the vehicle to be clear of any
lien.

 Sec.  10. K.S.A. 2002 Supp. 8-135, 8-135a, 8-139, 8-145, 8-170, 8-
171, 8-198, 58-4204 and 74-2013 are hereby repealed.

 Sec.  11. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 2, 2003.
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