Session Law

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


Body:

CHAPTER 134

HOUSE Substitute for SENATE BILL No. 364

(Amends Chapters 16, 24, 34, 48, 49, 70 and 134)

(Amended by Chapter 190)


An Act concerning certificates of title; amending K.S.A. 8-126, as amended by section 2

of 2002 House Bill No. 2663, 8-135, 8-135, as amended by section 2 of House Substitute

for Senate Bill No. 364, 8-135a, 8-139, 8-145, 8-145d, as amended by section 1 of 2002

House Bill No. 2662, 8-170, 8-171, 8-198, 58-4204, as amended by section 4 of 2002

House Bill No. 2723 and 58-4204, as amended by section 11 of 2002 House Substitute

for Senate Bill No. 364 and K.S.A. 2001 Supp. 74-2013 and repealing the existing sec-

tions; also repealing K.S.A. 8-126, as amended by section 3 of 2002 Senate Bill No. 449,

8-135, as amended by section 1 of 2002 Senate Bill No. 507, 8-135, as amended by

section 2 of 2002 House Bill No. 2794, 8-135, as amended by section 4 of 2002 Senate

Bill No. 449, 8-145, as amended by section 3 of 2002 House Bill No. 2794, 8-145d, as

amended by section 4 of 2002 House Bill No. 2794 and 58-4204, as amended by section


6 of 2002 Senate Bill No. 449.


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

Section 1. On and after January 1, 2003, K.S.A. 8-126, as amended

by section 2 of 2002 House Bill No. 2663, is hereby amended to read as

follows: 8-126. The following words and phrases when used in this act

shall have the meanings respectively ascribed to them herein:

(a) ``Vehicle'' means every device in, upon or by which any person or

property is or may be transported or drawn upon a public highway, ex-

cepting electric personal assistive mobility devices or devices moved by

human power or used exclusively upon stationary rails or tracks.

(b) ``Motor vehicle'' means every vehicle, other than a motorized bi-

cycle or a motorized wheelchair, which is self-propelled.

(c) ``Truck'' means a motor vehicle which is used for the transporta-

tion or delivery of freight and merchandise or more than 10 passengers.

(d) ``Motorcycle'' means every motor vehicle designed to travel on

not more than three wheels in contact with the ground, except any such

vehicle as may be included within the term ``tractor'' as herein defined.

(e) ``Truck tractor'' means every motor vehicle designed and used

primarily for drawing other vehicles, and not so constructed as to carry a

load other than a part of the weight of the vehicle or load so drawn.

(f) ``Farm tractor'' means every motor vehicle designed and used as

a farm implement power unit operated with or without other attached

farm implements in any manner consistent with the structural design of

such power unit.

(g) ``Road tractor'' means every motor vehicle designed and used for

drawing other vehicles, and not so constructed as to carry any load

thereon independently, or any part of the weight of a vehicle or load so

drawn.

(h) ``Trailer'' means every vehicle without motive power designed to

carry property or passengers wholly on its own structure and to be drawn

by a motor vehicle.

(i) ``Semitrailer'' means every vehicle of the trailer type so designed

and used in conjunction with a motor vehicle that some part of its own

weight and that of its own load rests upon or is carried by another vehicle.

(j) ``Pole trailer'' means any two-wheel vehicle used as a trailer with

bolsters that support the load, and do not have a rack or body extending

to the tractor drawing the load.

(k) ``Specially constructed vehicle'' means any vehicle which shall not

have been originally constructed under a distinctive name, make, model

or type, or which, if originally otherwise constructed shall have been ma-

terially altered by the removal of essential parts, or by the addition or

substitution of essential parts, new or used, derived from other vehicles

or makes of vehicles.

(l) ``Foreign vehicle'' means every motor vehicle, trailer or semitrailer

which shall be brought into this state otherwise than in ordinary course

of business by or through a manufacturer or dealer and which has not

been registered in this state.

(m) ``Person'' means every natural person, firm, partnership, associ-

ation or corporation.

(n) ``Owner'' means a person who holds the legal title of a vehicle, or

in the event a vehicle is the subject of an agreement for the conditional

sale thereof with the right of purchase upon performance of the condi-

tions stated in the agreement and with an immediate right of possession

vested in the conditional vendee or in the event a vehicle is subject to a

lease of 30 days or more with an immediate right of possession vested in

the lessee; or in the event a party having a security interest in a vehicle

is entitled to possession, then such conditional vendee or lessee or secured

party shall be deemed the owner for the purpose of this act.

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

state.

(p) ``Manufacturer'' means every person engaged in the business of

manufacturing motor vehicles, trailers or semitrailers.

(q) ``New vehicle dealer'' means every person actively engaged in the

business of buying, selling or exchanging new motor vehicles, travel trail-

ers, trailers or vehicles and who holds a dealer's contract therefor from a

manufacturer or distributor and who has an established place of business

in this state.

(r) ``Used vehicle dealer'' means every person actively engaged in the

business of buying, selling or exchanging used vehicles, and having an

established place of business in this state and who does not hold a dealer's

contract for the sale of new motor vehicles, travel trailers, trailers or

vehicles.

(s) ``Highway'' means every way or place of whatever nature open to

the use of the public as a matter of right for the purpose of vehicular

travel. The term ``highway'' shall not be deemed to include a roadway or

driveway upon grounds owned by private owners, colleges, universities

or other institutions.

(t) ``Department'' or ``motor vehicle department'' or ``vehicle depart-

ment'' means the division of vehicles of the department of revenue, acting

directly or through its duly authorized officers and agents.

(u) ``Commission'' or ``state highway commission'' means the director

of vehicles of the department of revenue.

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

revenue.

(w) ``Travel trailer'' means every vehicle without motive power de-

signed to be towed by a motor vehicle constructed primarily for recrea-

tional purposes.

(x) ``Passenger vehicle'' means every motor vehicle, as herein defined,

which is designed primarily to carry 10 or fewer passengers, and which

is not used as a truck.

(y) ``Self-propelled farm implement'' means every farm implement

designed for specific use applications with its motive power unit perma-

nently incorporated in its structural design.

(z) ``Farm trailer'' means every trailer as defined in subsection (h) of

this section and every semitrailer as defined in subsection (i) of this sec-

tion, designed and used primarily as a farm vehicle.

(aa) ``Motorized bicycle'' means every device having two tandem

wheels or three wheels, which may be propelled by either human power

or helper motor, or by both, and which has:

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

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

(3) an automatic transmission; and

(4) the capability of a maximum design speed of no more than 30

miles per hour.

(bb) ``All-terrain vehicle'' means any motorized nonhighway vehicle

45 inches or less in width, having a dry weight of 650 pounds or less,

traveling on three or more low-pressure tires, having a seat designed to

be straddled by the operator. As used in this subsection, low-pressure tire

means any pneumatic tire six inches or more in width, designed for use

on wheels with rim diameter of 12 inches or less, and utilizing an oper-

ating pressure of 10 pounds per square inch or less as recommended by

the vehicle manufacturer.

(cc) ``Implement of husbandry'' means every vehicle designed or

adapted and used exclusively for agricultural operations, including feed-

lots, and only incidentally moved or operated upon the highways. Such

term shall include, but not be limited to:

(1) A farm tractor;

(2) a self-propelled farm implement;

(3) a fertilizer spreader, nurse tank or truck permanently mounted

with a spreader used exclusively for dispensing or spreading water, dust

or liquid fertilizers or agricultural chemicals, as defined in K.S.A. 2-2202,

and amendments thereto, regardless of ownership;

(4) a truck mounted with a fertilizer spreader used or manufactured

principally to spread animal dung;

(5) a mixer-feed truck owned and used by a feedlot, as defined in

K.S.A. 47-1501, and amendments thereto, and specially designed and

used exclusively for dispensing food to livestock in such feedlot.

(dd) ``Motorized wheelchair'' means any self-propelled vehicle de-

signed specifically for use by a physically disabled person that is incapable

of a speed in excess of 15 miles per hour.

(ee) ``Oil well servicing, oil well clean-out or oil well drilling machin-

ery or equipment'' means a vehicle constructed as a machine used exclu-

sively for servicing, cleaning-out or drilling an oil well and consisting in

general of a mast, an engine for power, a draw works and a chassis per-

manently constructed or assembled for one or more of those purposes.

The passenger capacity of the cab of a vehicle shall not be considered in

determining whether such vehicle is an oil well servicing, oil well clean-

out or oil well drilling machinery or equipment.

(ff) ``Electric personal assistive mobility device'' means a self-balanc-

ing two nontandem wheeled device, designed to transport only one per-

son, with an electric propulsion system that limits the maximum speed of

the device to 15 miles per hour or less.

(gg) ``Electronic certificate of title'' means any electronic record of

ownership, including any lien or liens that may be recorded, retained by

the division in accordance with section 1 of 2002 Senate Bill No. 449, and

amendments thereto.

Sec. 2. K.S.A. 8-135 is hereby amended to read as follows: 8-135. (a)

Upon the transfer of ownership of any vehicle registered under this act,

the registration of the vehicle and the right to use any license plate

thereon shall expire and thereafter there shall be no transfer of any reg-

istration, and the license plate shall be removed by the owner thereof.

Except as provided in K.S.A. 8-172, and amendments thereto, and 8-

1,147, and amendments thereto, it shall be unlawful for any person, other

than the person to whom the license plate was originally issued, to have

possession thereof. When the ownership of a registered vehicle is trans-

ferred, the original owner of the license plate may register another vehicle

under the same number, upon application and payment of a fee of $1.50,

if such other vehicle does not require a higher license fee. If a higher

license fee is required, then the transfer may be made upon the payment

of the transfer fee of $1.50 and the difference between the fee originally

paid and that due for the new vehicle.

(b) Subject to the provisions of subsection (a) of K.S.A. 8-198, and

amendments thereto, upon the transfer or sale of any vehicle by any

person or dealer, or upon any transfer in accordance with K.S.A. 2001

Supp. 59-3511, and amendments thereto, the new owner thereof, within

30 days, inclusive of weekends and holidays, from date of such transfer

shall make application to the division for registration or reregistration of

the vehicle, but no person shall operate the vehicle on any highway in

this state during the thirty-day period without having applied for and

obtained temporary registration from the county treasurer or from a

dealer. After the expiration of the thirty-day period, it shall be unlawful

for the owner or any other person to operate such vehicle upon the high-

ways of this state unless the vehicle has been registered as provided in

this act. For failure to make application for registration as provided in

this section, a penalty of $2 shall be added to other fees. When a person

has a current motorcycle or passenger vehicle registration and license

plate, including any registration decal affixed thereto, for a vehicle and

has sold or otherwise disposed of the vehicle and has acquired another

motorcycle or passenger vehicle and intends to transfer the registration

and the license plate to the motorcycle or passenger vehicle acquired, but

has not yet had the registration transferred in the office of the county

treasurer, such person may operate the motorcycle or passenger vehicle

acquired for a period of not to exceed 30 days by displaying the license

plate on the rear of the vehicle acquired. If the acquired vehicle is a new

vehicle such person also must carry the assigned certificate of title or

manufacturer's statement of origin when operating the acquired vehicle,

except that a dealer may operate such vehicle by displaying such dealer's

dealer license plate.

(c) Certificate of title: No vehicle required to be registered shall be

registered or any license plate or registration decal issued therefor, unless

the applicant for registration shall present satisfactory evidence of own-

ership and apply for an original certificate of title for such vehicle. The

following paragraphs of this subsection shall apply to the issuance of a

certificate of title for a nonhighway vehicle, salvage vehicle or rebuilt

salvage vehicle, as defined in K.S.A. 8-197, and amendments thereto,

except to the extent such paragraphs are made inapplicable by or are

inconsistent with K.S.A. 8-198, and amendments thereto.

(1) An application for certificate of title shall be made by the owner

or the owner's agent upon a form furnished by the division and shall state

all liens or encumbrances thereon, and such other information as the

division may require. Notwithstanding any other provision of this section,

no certificate of title, other than a duplicate title, shall be issued for a

vehicle having any unreleased lien or encumbrance thereon, unless the

transfer of such vehicle has been consented to in writing by the holder

of the lien or encumbrance. Such consent shall be in a form approved by

the division. In the case of members of the armed forces of the United

States while the United States is engaged at war with any foreign nation

and for a period of six months next following the cessation of hostilities,

such application may be signed by the owner's spouse, parents, brother

or sister. The county treasurer shall use reasonable diligence in ascer-

taining whether the facts stated in such application are true, and if sat-

isfied that the applicant is the lawful owner of such vehicle, or otherwise

entitled to have the same registered in such applicant's name, shall so

notify the division, who shall issue an appropriate certificate of title. The

certificate of title shall be in a form approved by the division, and shall

contain a statement of any liens or encumbrances which the application

shows, and such other information as the division determines.

(2) The certificate of title shall contain upon the reverse side a form

for assignment of title to be executed by the owner before a notary public

or some other officer authorized to administer an oath. This assignment

shall contain a statement of all liens or encumbrances on the vehicle at

the time of assignment. The certificate of title shall also contain on the

reverse side blank spaces so that an abstract of mileage as to each owner

will be available. The seller at the time of each sale shall insert the mileage

on the form filed for application or reassignment of title, and the division

shall insert such mileage on the certificate of title when issued to pur-

chaser or assignee. The signature of the purchaser or assignee is required

on the form filed for application or reassignment of title, acknowledging

the odometer certification made by the seller, except that vehicles which

are 10 model years or older and trucks with a gross vehicle weight of

more than 16,000 pounds shall be exempt from the mileage acknowledg-

ment requirement of the purchaser or assignee. Such title shall indicate

whether the vehicle for which it is issued has been titled previously as a

nonhighway vehicle or salvage vehicle. In addition, the reverse side shall

contain two forms for reassignment by a dealer, stating the liens or en-

cumbrances thereon. The first form of reassignment shall be used only

when a dealer sells the vehicle to another dealer. The second form of

reassignment shall be used by a dealer when selling the vehicle to another

dealer or the ultimate owner of the vehicle. The reassignment by a dealer

shall be used only where the dealer resells the vehicle, and during the

time that the vehicle remains in the dealer's possession for resale, the

certificate of title shall be dormant. When the ownership of any vehicle

passes by operation of law, or repossession upon default of a lease, se-

curity agreement, or executory sales contract, the person owning such

vehicle, upon furnishing satisfactory proof to the county treasurer of such

ownership, may procure a certificate of title to the vehicle. When a vehicle

is registered in another state and is repossessed in another state, the

owner of such vehicle shall not be entitled to obtain a valid Kansas title

or registration, except that when a vehicle is registered in another state,

but is financed originally by a financial institution chartered in the state

of Kansas or when a financial institution chartered in Kansas purchases a

pool of motor vehicle loans from the resolution trust corporation or a

federal regulatory agency, and the vehicle is repossessed in another state,

such Kansas financial institution shall be entitled to obtain a valid Kansas

title or registration. In addition to any other fee required for the issuance

of a certificate of title, any applicant obtaining a certificate of title for a

repossessed vehicle shall pay a fee of $3.

(3) Dealers shall execute, upon delivery to the purchaser of every new

vehicle, a manufacturer's statement of origin stating the liens and encum-

brances thereon. Such statement of origin shall be delivered to the pur-

chaser at the time of delivery of the vehicle or at a time agreed upon by

the parties, not to exceed 30 days, inclusive of weekends and holidays.

The agreement of the parties shall be executed on a form approved by

the division. In the event delivery of title cannot be made personally, the

seller may deliver the manufacturer's statement of origin by restricted

mail to the address of purchaser shown on the purchase agreement. The

manufacturer's statement of origin may include an attachment containing

assignment of such statement of origin on forms approved by the division.

Upon the presentation to the division of a manufacturer's statement of

origin, by a manufacturer or dealer for a new vehicle, sold in this state, a

certificate of title shall be issued if there is also an application for regis-

tration, except that no application for registration shall be required for a

travel trailer used for living quarters and not operated on the highways.

(4) The fee for each original certificate of title shall be $7 until July

1, 2002, $6 $8 until July 1, 2004, and $3.50 thereafter, in addition to the

fee for registration of such vehicle, trailer or semitrailer. The certificate

of title shall be good for the life of the vehicle, trailer or semitrailer while

owned or held by the original holder of the certificate of title.

(5) Upon sale and delivery to the purchaser of every vehicle subject

to a purchase money security interest as defined in K.S.A. 84-9-107 pro-

vided in article 9 of chapter 84 of the Kansas Statutes Annotated, and

amendments thereto, the dealer or secured party may complete a notice

of security interest and when so completed, the purchaser shall execute

the notice, in a form prescribed by the division, describing the vehicle

and showing the name and address of the secured party and of the debtor

and other information the division requires. The dealer or secured party,

within 20 days of the sale and delivery, may mail or deliver the notice of

security interest, together with a fee of $2.50, to the division. The notice

of security interest shall be retained by the division until it receives an

application for a certificate of title to the vehicle and a certificate of title

is issued. The certificate of title shall indicate any security interest in the

vehicle. Upon issuance of the certificate of title, the division shall mail or

deliver confirmation of the receipt of the notice of security interest, the

date the certificate of title is issued and the security interest indicated, to

the secured party at the address shown on the notice of security interest.

The proper completion and timely mailing or delivery of a notice of se-

curity interest by a dealer or secured party shall perfect a security interest

in the vehicle described on the date of such mailing or delivery. The

county treasurers shall mail a copy of the title application to the Kansas

lienholder. Each county treasurer shall charge the Kansas lienholder a

$1.50 service fee for processing and mailing a copy of the title application

to the Kansas lienholder.

(6) It shall be unlawful for any person to operate in this state a vehicle

required to be registered under this act, or to transfer the title to any

such vehicle to any person or dealer, unless a certificate of title has been

issued as herein provided. In the event of a sale or transfer of ownership

of a vehicle for which a certificate of title has been issued, which certif-

icate of title is in the possession of the transferor at the time of delivery

of the vehicle, the holder of such certificate of title shall endorse on the

same an assignment thereof, with warranty of title in a form prescribed

by the division and printed thereon and the transferor shall deliver the

same to the buyer at the time of delivery to the buyer of the vehicle or

at a time agreed upon by the parties, not to exceed 30 days, inclusive of

weekends and holidays, after the time of delivery. The agreement of the

parties shall be executed on a form provided by the division. The require-

ments of this paragraph concerning delivery of an assigned title are sat-

isfied if the transferor mails to the transferee by restricted mail the as-

signed certificate of title within the 30 days, and if the transferor is a

dealer, as defined by K.S.A. 8-2401, and amendments thereto, such trans-

feror shall be deemed to have possession of the certificate of title if the

transferor has made application therefor to the division. The buyer shall

then present such assigned certificate of title to the division at the time

of making application for registration of such vehicle. A new certificate

of title shall be issued to the buyer, upon payment of the fee of $7 until

July 1, 2002, $6 $8 until July 1, 2004, and $3.50 thereafter. If such vehicle

is sold to a resident of another state or country, the dealer or person

making the sale shall notify the division of the sale and the division shall

make notation thereof in the records of the division. When a person ac-

quires a security agreement on a vehicle subsequent to the issuance of

the original title on such vehicle, such person shall require the holder of

the certificate of title to surrender the same and sign an application for

a mortgage title in form prescribed by the division. Upon such surrender

such person shall immediately deliver the certificate of title, application,

and a fee of $7 until July 1, 2002, $6 $8 until July 1, 2004, and $3.50

thereafter, to the division. Upon receipt thereof, the division shall issue

a new certificate of title showing the liens or encumbrances so created,

but not more than two liens or encumbrances may be shown upon a title.

When a prior lienholder's name is removed from the title, there must be

satisfactory evidence presented to the division that the lien or encum-

brance has been paid. When the indebtedness to a lienholder, whose

name is shown upon a title, is paid in full, such lienholder within 10 days

after written demand by restricted mail, shall furnish to the holder of the

title a release of lien or execute such a release in the space provided on

the title. For failure to comply with such a demand the lienholder shall

be liable to the holder of the title for $100 and also shall be liable for any

loss caused to the holder by such failure. When the indebtedness to a

lienholder, whose name is shown upon a title, is collected in full, such

lienholder, within 30 days, shall furnish notice to the holder of title that

such indebtedness has been paid in full and that such title may be pre-

sented to the lienholder at any time for release of lien.

(7) It shall be unlawful for any person to buy or sell in this state any

vehicle required to be registered, unless, at the time of delivery thereof

or at a time agreed upon by the parties, not to exceed 30 days, inclusive

of weekends and holidays, after the time of delivery, there shall pass

between the parties a certificate of title with an assignment thereof. The

sale of a vehicle required to be registered under the laws of this state,

without assignment of the certificate of title, is fraudulent and void, unless

the parties shall agree that the certificate of title with assignment thereof

shall pass between them at a time other than the time of delivery, but

within 30 days thereof. The requirements of this paragraph concerning

delivery of an assigned title shall be satisfied if (i) the seller mails to the

purchaser by restricted mail the assigned certificate of title within 30 days,

or (ii) if the transferor is a dealer, as defined by K.S.A. 8-2401, and amend-

ments thereto, such seller shall be deemed to have possession of the

certificate of title if such seller has made application therefor to the di-

vision, or (iii) if the transferor is a dealer and has assigned a title pursuant

to paragraph (9) of this subsection (c).

(8) In cases of sales under the order of a court of a vehicle required

to be registered under this act, the officer conducting such sale shall issue

to the purchaser a certificate naming the purchaser and reciting the facts

of the sale, which certificate shall be prima facie evidence of the own-

ership of such purchaser for the purpose of obtaining a certificate of title

to such motor vehicle and for registering the same. Any such purchaser

shall be allowed 30 days, inclusive of weekends and holidays, from the

date of sale to make application to the division for a certificate of title

and for the registering of such motor vehicle.

(9) Any dealer who has acquired a vehicle, the title for which was

issued under the laws of and in a state other than the state of Kansas,

shall not be required to obtain a Kansas certificate of title therefor during

the time such vehicle remains in such dealer's possession and at such

dealer's place of business for the purpose of sale. The purchaser or trans-

feree shall present the assigned title to the division of vehicles when

making application for a certificate of title as provided in subsection (c)(1).

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

(11) Notwithstanding the provisions of this act with respect to time

requirements for delivery of a certificate of title, or manufacturer's state-

ment of origin, as applicable, any person who chooses to reaffirm the sale

in writing on a form approved by the division which advises them of their

rights pursuant to paragraph (7) of subsection (c) and who has received

and accepted assignment of the certificate of title or manufacturer's state-

ment of origin for the vehicle in issue may not thereafter void or set aside

the transaction with respect to the vehicle for the reason that a certificate

of title or manufacturer's statement of origin was not timely delivered,

and in such instances the sale of a vehicle shall not be deemed to be

fraudulent and void for that reason alone.

(12) The owner of any vehicle assigning a certificate of title in ac-

cordance with the provisions of this section may file with the division a

form indicating that such owner has assigned such certificate of title. Such

forms shall be furnished by the division and shall contain such information

as the division may require. Any owner filing a form as provided in this

paragraph shall pay a fee of $10. The filing of such form shall be prima

facie evidence that such certificate of title was assigned and shall create

a rebuttable presumption. If the assignee of a certificate of title fails to

make application for registration, an owner assigning such title and filing

the form in accordance with the provisions of this paragraph shall not be

held liable for damages resulting from the operation of such vehicle.

(13) Application for a certificate of title on a boat trailer with a gross

weight over 2,000 pounds shall be made by the owner or the owner's

agent upon a form to be furnished by the division and shall contain such

information as the division shall determine necessary. The division may

waive any information requested on the form if it is not available. The

application together with a bill of sale for the boat trailer shall be accepted

as prima facie evidence that the applicant is the owner of the boat trailer,

provided that a Kansas title for such trailer has not previously been issued.

If the application and bill of sale are used to obtain a certificate of title

for a boat trailer under this paragraph, the certificate of title shall not be

issued until an inspection in accordance with subsection (a) of K.S.A. 8-

116a, and amendments thereto, has been completed.

(14) In addition to the two forms for reassignment under paragraph

(2) of subsection (c), a dealer may attach one additional reassignment

form to a certificate of title. The director of vehicles shall prescribe and

furnish such reassignment forms. The reassignment form shall be used by

a dealer when selling the vehicle to another dealer or the ultimate owner

of the vehicle only when the two reassignment forms under paragraph (2)

of subsection (c) have already been used. The fee for a reassignment form

shall be $4.50 until July 1, 2004, and $3.50 thereafter. A dealer may

purchase reassignment forms in multiples of five upon making proper

application and the payment of required fees.

Sec. 3. On and after January 1, 2003, K.S.A. 8-135, as amended by

section 2 of House Substitute for Senate Bill No. 364, is hereby amended

to read as follows: 8-135. (a) Upon the transfer of ownership of any vehicle

registered under this act, the registration of the vehicle and the right to

use any license plate thereon shall expire and thereafter there shall be no

transfer of any registration, and the license plate shall be removed by the

owner thereof. Except as provided in K.S.A. 8-172, and amendments

thereto, and 8-1,147, and amendments thereto, it shall be unlawful for

any person, other than the person to whom the license plate was originally

issued, to have possession thereof. When the ownership of a registered

vehicle is transferred, the original owner of the license plate may register

another vehicle under the same number, upon application and payment

of a fee of $1.50, if such other vehicle does not require a higher license

fee. If a higher license fee is required, then the transfer may be made

upon the payment of the transfer fee of $1.50 and the difference between

the fee originally paid and that due for the new vehicle.

(b) Subject to the provisions of subsection (a) of K.S.A. 8-198, and

amendments thereto, upon the transfer or sale of any vehicle by any

person or dealer, or upon any transfer in accordance with K.S.A. 2001

Supp. 59-3511, and amendments thereto, the new owner thereof, within

30 days, inclusive of weekends and holidays, from date of such transfer

shall make application to the division for registration or reregistration of

the vehicle, but no person shall operate the vehicle on any highway in

this state during the thirty-day period without having applied for and

obtained temporary registration from the county treasurer or from a

dealer. After the expiration of the thirty-day period, it shall be unlawful

for the owner or any other person to operate such vehicle upon the high-

ways of this state unless the vehicle has been registered as provided in

this act. For failure to make application for registration as provided in

this section, a penalty of $2 shall be added to other fees. When a person

has a current motorcycle or passenger vehicle registration and license

plate, including any registration decal affixed thereto, for a vehicle and

has sold or otherwise disposed of the vehicle and has acquired another

motorcycle or passenger vehicle and intends to transfer the registration

and the license plate to the motorcycle or passenger vehicle acquired, but

has not yet had the registration transferred in the office of the county

treasurer, such person may operate the motorcycle or passenger vehicle

acquired for a period of not to exceed 30 days by displaying the license

plate on the rear of the vehicle acquired. If the acquired vehicle is a new

vehicle such person also must carry the assigned certificate of title or

manufacturer's statement of origin when operating the acquired vehicle,

except that a dealer may operate such vehicle by displaying such dealer's

dealer license plate.

(c) Certificate of title: No vehicle required to be registered shall be

registered or any license plate or registration decal issued therefor, unless

the applicant for registration shall present satisfactory evidence of own-

ership and apply for an original certificate of title for such vehicle. The

following paragraphs of this subsection shall apply to the issuance of a

certificate of title for a nonhighway vehicle, salvage vehicle or rebuilt

salvage vehicle, as defined in K.S.A. 8-197, and amendments thereto,

except to the extent such paragraphs are made inapplicable by or are

inconsistent with K.S.A. 8-198, and amendments thereto, and to any elec-

tronic certificate of title, except to the extent such paragraphs are made

inapplicable by or are inconsistent with section 1 of 2002 Senate Bill No.

449, and amendments thereto, or with rules and regulations adopted pur-

suant to section 1 of 2002 Senate Bill No. 449, and amendments thereto.

The provisions of paragraphs (1) through (14) shall apply to any cer-

tificate of title issued prior to January 1, 2003, which indicates that there

is a lien or encumbrance on such vehicle.

(1) An application for certificate of title shall be made by the owner

or the owner's agent upon a form furnished by the division and shall state

all liens or encumbrances thereon, and such other information as the

division may require. Notwithstanding any other provision of this section,

no certificate of title, other than a duplicate title, shall be issued for a

vehicle having any unreleased lien or encumbrance thereon, unless the

transfer of such vehicle has been consented to in writing by the holder

of the lien or encumbrance. Such consent shall be in a form approved by

the division. In the case of members of the armed forces of the United

States while the United States is engaged at war with any foreign nation

and for a period of six months next following the cessation of hostilities,

such application may be signed by the owner's spouse, parents, brother

or sister. The county treasurer shall use reasonable diligence in ascer-

taining whether the facts stated in such application are true, and if sat-

isfied that the applicant is the lawful owner of such vehicle, or otherwise

entitled to have the same registered in such applicant's name, shall so

notify the division, who shall issue an appropriate certificate of title. The

certificate of title shall be in a form approved by the division, and shall

contain a statement of any liens or encumbrances which the application

shows, and such other information as the division determines.

(2) The certificate of title shall contain upon the reverse side a form

for assignment of title to be executed by the owner. This assignment shall

contain a statement of all liens or encumbrances on the vehicle at the

time of assignment. The certificate of title shall also contain on the reverse

side blank spaces so that an abstract of mileage as to each owner will be

available. The seller at the time of each sale shall insert the mileage on

the form filed for application or reassignment of title, and the division

shall insert such mileage on the certificate of title when issued to pur-

chaser or assignee. The signature of the purchaser or assignee is required

on the form filed for application or reassignment of title, acknowledging

the odometer certification made by the seller, except that vehicles which

are 10 model years or older and trucks with a gross vehicle weight of

more than 16,000 pounds shall be exempt from the mileage acknowledg-

ment requirement of the purchaser or assignee. Such title shall indicate

whether the vehicle for which it is issued has been titled previously as a

nonhighway vehicle or salvage vehicle. In addition, the reverse side shall

contain two forms for reassignment by a dealer, stating the liens or en-

cumbrances thereon. The first form of reassignment shall be used only

when a dealer sells the vehicle to another dealer. The second form of

reassignment shall be used by a dealer when selling the vehicle to another

dealer or the ultimate owner of the vehicle. The reassignment by a dealer

shall be used only where the dealer resells the vehicle, and during the

time that the vehicle remains in the dealer's possession for resale, the

certificate of title shall be dormant. When the ownership of any vehicle

passes by operation of law, or repossession upon default of a lease, se-

curity agreement, or executory sales contract, the person owning such

vehicle, upon furnishing satisfactory proof to the county treasurer of such

ownership, may procure a certificate of title to the vehicle. When a vehicle

is registered in another state and is repossessed in another state, the

owner of such vehicle shall not be entitled to obtain a valid Kansas title

or registration, except that when a vehicle is registered in another state,

but is financed originally by a financial institution chartered in the state

of Kansas or when a financial institution chartered in Kansas purchases a

pool of motor vehicle loans from the resolution trust corporation or a

federal regulatory agency, and the vehicle is repossessed in another state,

such Kansas financial institution shall be entitled to obtain a valid Kansas

title or registration. In addition to any other fee required for the issuance

of a certificate of title, any applicant obtaining a certificate of title for a

repossessed vehicle shall pay a fee of $3.

(3) Dealers shall execute, upon delivery to the purchaser of every new

vehicle, a manufacturer's statement of origin stating the liens and encum-

brances thereon. Such statement of origin shall be delivered to the pur-

chaser at the time of delivery of the vehicle or at a time agreed upon by

the parties, not to exceed 30 days, inclusive of weekends and holidays.

The agreement of the parties shall be executed on a form approved by

the division. In the event delivery of title cannot be made personally, the

seller may deliver the manufacturer's statement of origin by restricted

mail to the address of purchaser shown on the purchase agreement. The

manufacturer's statement of origin may include an attachment containing

assignment of such statement of origin on forms approved by the division.

Upon the presentation to the division of a manufacturer's statement of

origin, by a manufacturer or dealer for a new vehicle, sold in this state, a

certificate of title shall be issued if there is also an application for regis-

tration, except that no application for registration shall be required for a

travel trailer used for living quarters and not operated on the highways.

(4) The fee for each original certificate of title shall be $8 until July

1, 2004, and $3.50 thereafter, in addition to the fee for registration of

such vehicle, trailer or semitrailer. The certificate of title shall be good

for the life of the vehicle, trailer or semitrailer while owned or held by

the original holder of the certificate of title.

(5) Upon sale and delivery to the purchaser of every vehicle subject

to a purchase money security interest as provided in article 9 of chapter

84 of the Kansas Statutes Annotated, and amendments thereto, the dealer

or secured party may complete a notice of security interest and when so

completed, the purchaser shall execute the notice, in a form prescribed

by the division, describing the vehicle and showing the name and address

of the secured party and of the debtor and other information the division

requires. The dealer or secured party, within 20 days of the sale and

delivery, may mail or deliver the notice of security interest, together with

a fee of $2.50, to the division. The notice of security interest shall be

retained by the division until it receives an application for a certificate of

title to the vehicle and a certificate of title is issued. The certificate of

title shall indicate any security interest in the vehicle. Upon issuance of

the certificate of title, the division shall mail or deliver confirmation of

the receipt of the notice of security interest, the date the certificate of

title is issued and the security interest indicated, to the secured party at

the address shown on the notice of security interest. The proper comple-

tion and timely mailing or delivery of a notice of security interest by a

dealer or secured party shall perfect a security interest in the vehicle

described on the date of such mailing or delivery. The county treasurers

shall mail a copy of the title application to the Kansas lienholder. Each

county treasurer shall charge the Kansas lienholder a $1.50 service fee

for processing and mailing a copy of the title application to the Kansas

lienholder.

(6) It shall be unlawful for any person to operate in this state a vehicle

required to be registered under this act, or to transfer the title to any

such vehicle to any person or dealer, unless a certificate of title has been

issued as herein provided. In the event of a sale or transfer of ownership

of a vehicle for which a certificate of title has been issued, which certif-

icate of title is in the possession of the transferor at the time of delivery

of the vehicle, the holder of such certificate of title shall endorse on the

same an assignment thereof, with warranty of title in a form prescribed

by the division and printed thereon and the transferor shall deliver the

same to the buyer at the time of delivery to the buyer of the vehicle or

at a time agreed upon by the parties, not to exceed 30 days, inclusive of

weekends and holidays, after the time of delivery. The agreement of the

parties shall be executed on a form provided by the division. The require-

ments of this paragraph concerning delivery of an assigned title are sat-

isfied if the transferor mails to the transferee by restricted mail the as-

signed certificate of title within the 30 days, and if the transferor is a

dealer, as defined by K.S.A. 8-2401, and amendments thereto, such trans-

feror shall be deemed to have possession of the certificate of title if the

transferor has made application therefor to the division. The buyer shall

then present such assigned certificate of title to the division at the time

of making application for registration of such vehicle. A new certificate

of title shall be issued to the buyer, upon payment of the fee of $8 until

July 1, 2004, and $3.50 thereafter. If such vehicle is sold to a resident of

another state or country, the dealer or person making the sale shall notify

the division of the sale and the division shall make notation thereof in the

records of the division. When a person acquires a security agreement on

a vehicle subsequent to the issuance of the original title on such vehicle,

such person shall require the holder of the certificate of title to surrender

the same and sign an application for a mortgage title in form prescribed

by the division. Upon such surrender such person shall immediately de-

liver the certificate of title, application, and a fee of $8 until July 1, 2004,

and $3.50 thereafter, to the division. Upon receipt thereof, the division

shall issue a new certificate of title showing the liens or encumbrances so

created, but not more than two liens or encumbrances may be shown

upon a title. When a prior lienholder's name is removed from the title,

there must be satisfactory evidence presented to the division that the lien

or encumbrance has been paid. When the indebtedness to a lienholder,

whose name is shown upon a title, is paid in full, such lienholder within

10 days after written demand by restricted mail, shall furnish to the holder

of the title a release of lien or execute such a release in the space provided

on the title. For failure to comply with such a demand the lienholder shall

be liable to the holder of the title for $100 and also shall be liable for any

loss caused to the holder by such failure. When the indebtedness to a

lienholder, whose name is shown upon a title, is collected in full, such

lienholder, within 30 days, shall furnish notice to the holder of title that

such indebtedness has been paid in full and that such title may be pre-

sented to the lienholder at any time for release of lien.

(7) It shall be unlawful for any person to buy or sell in this state any

vehicle required to be registered, unless, at the time of delivery thereof

or at a time agreed upon by the parties, not to exceed 30 days, inclusive

of weekends and holidays, after the time of delivery, there shall pass

between the parties a certificate of title with an assignment thereof. The

sale of a vehicle required to be registered under the laws of this state,

without assignment of the certificate of title, is fraudulent and void, unless

the parties shall agree that the certificate of title with assignment thereof

shall pass between them at a time other than the time of delivery, but

within 30 days thereof. The requirements of this paragraph concerning

delivery of an assigned title shall be satisfied if (i) the seller mails to the

purchaser by restricted mail the assigned certificate of title within 30 days,

or (ii) if the transferor is a dealer, as defined by K.S.A. 8-2401, and amend-

ments thereto, such seller shall be deemed to have possession of the

certificate of title if such seller has made application therefor to the di-

vision, or (iii) if the transferor is a dealer and has assigned a title pursuant

to paragraph (9) of this subsection (c).

(8) In cases of sales under the order of a court of a vehicle required

to be registered under this act, the officer conducting such sale shall issue

to the purchaser a certificate naming the purchaser and reciting the facts

of the sale, which certificate shall be prima facie evidence of the own-

ership of such purchaser for the purpose of obtaining a certificate of title

to such motor vehicle and for registering the same. Any such purchaser

shall be allowed 30 days, inclusive of weekends and holidays, from the

date of sale to make application to the division for a certificate of title

and for the registering of such motor vehicle.

(9) Any dealer who has acquired a vehicle, the title for which was

issued under the laws of and in a state other than the state of Kansas,

shall not be required to obtain a Kansas certificate of title therefor during

the time such vehicle remains in such dealer's possession and at such

dealer's place of business for the purpose of sale. The purchaser or trans-

feree shall present the assigned title to the division of vehicles when

making application for a certificate of title as provided in subsection (c)(1).

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

(11) Notwithstanding the provisions of this act with respect to time

requirements for delivery of a certificate of title, or manufacturer's state-

ment of origin, as applicable, any person who chooses to reaffirm the sale

in writing on a form approved by the division which advises them of their

rights pursuant to paragraph (7) of subsection (c) and who has received

and accepted assignment of the certificate of title or manufacturer's state-

ment of origin for the vehicle in issue may not thereafter void or set aside

the transaction with respect to the vehicle for the reason that a certificate

of title or manufacturer's statement of origin was not timely delivered,

and in such instances the sale of a vehicle shall not be deemed to be

fraudulent and void for that reason alone.

(12) The owner of any vehicle assigning a certificate of title in ac-

cordance with the provisions of this section may file with the division a

form indicating that such owner has assigned such certificate of title. Such

forms shall be furnished by the division and shall contain such information

as the division may require. Any owner filing a form as provided in this

paragraph shall pay a fee of $10. The filing of such form shall be prima

facie evidence that such certificate of title was assigned and shall create

a rebuttable presumption. If the assignee of a certificate of title fails to

make application for registration, an owner assigning such title and filing

the form in accordance with the provisions of this paragraph shall not be

held liable for damages resulting from the operation of such vehicle.

(13) Application for a certificate of title on a boat trailer with a gross

weight over 2,000 pounds shall be made by the owner or the owner's

agent upon a form to be furnished by the division and shall contain such

information as the division shall determine necessary. The division may

waive any information requested on the form if it is not available. The

application together with a bill of sale for the boat trailer shall be accepted

as prima facie evidence that the applicant is the owner of the boat trailer,

provided that a Kansas title for such trailer has not previously been issued.

If the application and bill of sale are used to obtain a certificate of title

for a boat trailer under this paragraph, the certificate of title shall not be

issued until an inspection in accordance with subsection (a) of K.S.A. 8-

116a, and amendments thereto, has been completed.

(14) In addition to the two forms for reassignment under paragraph

(2) of subsection (c), a dealer may attach one additional reassignment

form to a certificate of title. The director of vehicles shall prescribe and

furnish such reassignment forms. The reassignment form shall be used

by a dealer when selling the vehicle to another dealer or the ultimate

owner of the vehicle only when the two reassignment forms under par-

agraph (2) of subsection (c) have already been used. The fee for a reas-

signment form shall be $4.50 until July 1, 2004, and $3.50 thereafter. A

dealer may purchase reassignment forms in multiples of five upon making

proper application and the payment of required fees.

Sec. 4. K.S.A. 8-135a is hereby amended to read as follows: 8-135a.

A person in whose name a vehicle is titled and registered may add their

spouse's name by assigning the title from the titleholder to titleholder

and spouse and by applying for a name change title and registration. A

son or daughter in whose name a vehicle is titled and registered may add

a parent's name by assigning the title from such son or daughter to such

son or daughter and parent and by applying for a name change title and

registration. A parent may add a son or daughter's name by assigning the

title from such parent to such parent and parent's son or daughter and

by applying for a name change title and registration. Application for name

change title and registration shall be made in the manner required by

law, including certification of insurance coverage. The fee shall be $7

until July 1, 2002, $6 $8 until July 1, 2004, and $3.50 thereafter, for the

title, and no charge shall be made for the registration, except, when ap-

plicable, the fee for transfer of registration under K.S.A. 8-135, and

amendments thereto.

Sec. 5. K.S.A. 8-139 is hereby amended to read as follows: 8-139. In

the event that any license plate, certificate of title, registration decal or

registration receipt issued hereunder, shall be lost, mutilated, or shall

have become illegible, the person who is entitled thereto shall make im-

mediate application for and obtain a duplicate or substitute therefor, upon

furnishing information of such fact satisfactory to the division and upon

payment of the required fees: Namely, certificate of title, $7 until July 1,

2002, $6 $8 until July 1, 2004, and $3.50 thereafter, registration receipt,

$.50, registration decal, $.50, license plates, $2. In case the license plate

is of such type or constructed in such a way that it is not reasonably

possible to remove it from the vehicle to which it is attached without

destroying or mutilating such license plate, and the ownership of such

vehicle shall be transferred and the license plate shall be mutilated or

destroyed by the owner thereof as a result of the owner's effort to comply

with the provisions of K.S.A. 8-135, and amendments thereto, by remov-

ing the same from the vehicle so transferred, then and in such case no

fee shall be charged for such duplicate or substitute license plate, includ-

ing any registration decal affixed thereto, but the same shall be furnished

free of charge providing such person shall otherwise in all respects have

complied with the laws governing the transfer of ownership of such motor

vehicle.

Sec. 6. K.S.A. 8-145 is hereby amended to read as follows: 8-145. (a)

All registration and certificates of title fees shall be paid to the county

treasurer of the county in which the applicant for registration resides or

has an office or principal place of business within this state, and the county

treasurer shall issue a receipt in triplicate, on blanks furnished by the

division of vehicles, one copy of which shall be filed in the county trea-

surer's office, one copy shall be delivered to the applicant and the original

copy shall be forwarded to the director of vehicles.

(b) The county treasurer shall deposit $.75 of each license applica-

tion, $.75 out of each application for transfer of license plate and $2 out

of each application for a certificate of title, collected by such treasurer

under this act, in a special fund, which fund is hereby appropriated for

the use of the county treasurer in paying for necessary help and expenses

incidental to the administration of duties in accordance with the provi-

sions of this law and extra compensation to the county treasurer for the

services performed in administering the provisions of this act, which com-

pensation shall be in addition to any other compensation provided by any

other law, except that the county treasurer shall receive as additional

compensation for administering the motor vehicle title and registration

laws and fees, a sum computed as follows: The county treasurer, during

the month of December, shall determine the amount to be retained for

extra compensation not to exceed the following amounts each year for

calendar year 1990 or any calendar year thereafter: The sum of $60 per

hundred registrations for the first 5,000 registrations; the sum of $45 per

hundred registrations for the next 5,000 registrations; and the sum of $2

per hundred registrations for all registrations thereafter. In no event,

however, shall any county treasurer be entitled to receive more than

$9,800 additional annual compensation.

If more than one person shall hold the office of county treasurer during

any one calendar year, such compensation shall be prorated among such

persons in proportion to the number of weeks served. The total amount

of compensation paid the treasurer together with the amounts expended

in paying for other necessary help and expenses incidental to the admin-

istration of the duties of the county treasurer in accordance with the

provisions of this act, shall not exceed the amount deposited in such spe-

cial fund. Any balance remaining in such fund at the close of any calendar

year shall be withdrawn and credited to the general fund of the county

prior to June 1 of the following calendar year.

(c) The county treasurer shall remit the remainder of all such fees

collected, together with the original copy of all applications, to the sec-

retary of revenue. The secretary of revenue shall remit all such fees re-

mitted to the state treasurer in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the entire amount in the state treasury

to the credit of the state highway fund, except as provided in subsection

(d).

(d) (1) On July 1, 1997 2002, through June 30, 2004, $2.50 $3.50 of

each certificate of title fee collected and remitted to the secretary of

revenue, shall be remitted to the state treasurer who shall credit such

$2.50 $3.50 to the Kansas highway patrol motor vehicle fund. On July 1,

1999, through June 30, 2002 2004, $1 of each certificate of title fee col-

lected and remitted to the secretary of revenue, shall be remitted to the

state treasurer who shall credit such $1 to the VIPS/CAMA technology

hardware fund.

(2) For repossessed vehicles, $3 of each certificate of title fee col-

lected and remitted to the secretary of revenue, shall be remitted to the

state treasurer who shall credit such $3 to the repossessed certificates of

title fee fund.

(3) On July 1, 2002, through June 30, 2004, $3.50 of each reassign-

ment form fee collected and remitted to the secretary of revenue, shall be

remitted to the state treasurer who shall credit such $3.50 to the Kansas

highway patrol motor vehicle fund. One dollar of each reassignment form

fee collected and remitted to the secretary of revenue, shall be remitted to

the state treasurer who shall credit such $1 to the VIPS/CAMA technology

hardware fund.

Sec. 7. K.S.A. 8-145d, as amended by section 1 of 2002 House Bill

No. 2662, is hereby amended to read as follows: 8-145d. In addition to

the annual vehicle registration fees prescribed by K.S.A. 8-143, 8-143b,

8-143c, 8-143g, 8-143h, 8-143i, 8-167, 8-172 and 8-195, and amendments

thereto, and section 1 of 2002 House Bill No. 2794, and amendments

thereto, any applicant for vehicle registration or renewal thereof for reg-

istration shall pay a service fee in the amount of $3 to the county treasurer

at the time of making such application. In addition to such service fee,

the county treasurer may charge any applicant for vehicle registration or

renewal thereof for registration, a satellite registration fee in an amount

not to exceed $5 per vehicle registration or renewal thereof for registra-

tion, when such application is made at a satellite registration facility es-

tablished by the county treasurer. The county treasurer shall deposit all

amounts received under this section in the special fund created pursuant

to K.S.A. 8-145, and amendments thereto, and such amounts shall be

used by the county treasurer for all purposes for which such fund has

been appropriated by law, and such additional amounts are hereby ap-

propriated as other amounts deposited in such fund.

Sec. 8. K.S.A. 8-170 is hereby amended to read as follows: 8-170. (a)

Upon the transfer of ownership of any vehicle registered under the fore-

going provisions of this act, its registration and right to use the license

plates thereon shall expire and thereafter there shall be no transfer of any

registration, and the license plates shall be removed by the owner thereof

and it shall be unlawful for any person other than the person to whom

such license plates were originally issued to have the same in possession.

In case of a transfer of ownership of a registered vehicle the original

owner of the license plates may register another antique vehicle under

the same license plate designation, upon application therefor and the

payment of a fee of $1.50. On and after January 1, 2000, any model year

license plate transferred shall comply with the provisions of subsection

(c) of K.S.A. 8-172, and amendments thereto.

(b) Upon the transfer and sale of a registered vehicle by any person,

the new owner thereof, before using a vehicle on the highways of this

state, shall make application to the division for registration of the vehicle.

(c) Certificate of title:

(1) Application for certificate of title on an antique vehicle shall be

made by the owner or the owner's agent upon a blank form to be fur-

nished by the division and shall contain such information as the division

shall determine necessary. The division may waive any information re-

quested on the form if it is not available. The application together with a

bill of sale for the antique vehicle shall be accepted as prima facie evi-

dence that the applicant is the owner of the vehicle. The certificate of

title shall be delivered to the applicant. The certificate shall contain the

words ``antique vehicle.''

(2) The certificate of title shall contain upon the reverse side a form

for assignment of title to be executed by the owner before a notary public

or some other officer authorized to administer an oath. A certificate of

title may be issued under the provisions of this act without an application

for registration.

(3) The fee for each original certificate of title so issued shall be $7

until July 1, 2002, $6 $8 until July 1, 2004, and $3.50 thereafter. The

certificate of title shall be good for the life of the antique vehicle, so long

as the same is owned or held by the original holder of the certificate of

title, and shall not have to be renewed. In the event of a sale or transfer

of ownership of an antique vehicle for which a certificate of title has been

issued, the holder of such certificate of title shall endorse on the same an

assignment thereof, with warranty of title in form printed thereon, as

prescribed by the director, and the transferor must deliver the same to

the buyer at the time of delivery of the vehicle. The buyer shall then

present such certificate of title, assigned as aforesaid, to the director or

an authorized agent of the director, whereupon a new certificate of title

shall be issued to the buyer, the fee therefor being $7 until July 1, 2002,

$6 $8 until July 1, 2004, and $3.50 thereafter.

Sec. 9. K.S.A. 8-171 is hereby amended to read as follows: 8-171. In

the event that any license plate, certificate of title or registration receipt

issued hereunder, shall be lost, mutilated, or shall have become illegible,

the person who is entitled thereto shall make immediate application for

and obtain a duplicate therefor, upon furnishing information of such fact

satisfactory to the division and upon payment of the required fees:

Namely, certificate of title, $7 until July 1, 2002, $6 $8 until July 1, 2004,

and $3.50 thereafter, registration receipt, $1, license plates, $2.

Sec. 10. K.S.A. 8-198 is hereby amended to read as follows: 8-198.

(a) A nonhighway or salvage vehicle shall not be required to be registered

in this state, as provided in K.S.A. 8-135, and amendments thereto, but

nothing in this section shall be construed as abrogating, limiting or oth-

erwise affecting the provisions of K.S.A. 8-142, and amendments thereto,

which make it unlawful for any person to operate or knowingly permit

the operation in this state of a vehicle required to be registered in this

state.

(b) Upon the sale or transfer of any nonhighway vehicle or salvage

vehicle, the purchaser thereof shall obtain a nonhighway certificate of

title or salvage title, whichever is applicable, in the following manner:

(1) If the transferor is a vehicle dealer, as defined in K.S.A. 8-2401,

and amendments thereto, and a certificate of title has not been issued for

such vehicle under this section or under the provisions of K.S.A. 8-135,

and amendments thereto, such transferor shall make application for and

assign a nonhighway certificate of title or a salvage title, whichever is

applicable, to the purchaser of such nonhighway vehicle or salvage vehicle

in the same manner and under the same conditions prescribed by K.S.A.

8-135, and amendments thereto, for the application for and assignment

of a certificate of title thereunder. Upon the assignment thereof, the

purchaser shall make application for a new nonhighway certificate of title

or salvage title, as provided in subsection (c).

(2) Except as provided in subsection (b) of K.S.A. 8-199, and amend-

ments thereto, if a certificate of title has been issued for any such vehicle

under the provisions of K.S.A. 8-135, and amendments thereto, the owner

of such nonhighway vehicle or salvage vehicle may surrender such certif-

icate of title to the division of vehicles and make application to the division

for a nonhighway certificate of title or salvage title, whichever is appli-

cable, or the owner may obtain from the county treasurer's office a form

prescribed by the division of vehicles and, upon proper execution thereof,

may assign the nonhighway certificate of title, salvage title or the regular

certificate of title with such form attached to the purchaser of the non-

highway vehicle or salvage vehicle. Upon receipt of the nonhighway cer-

tificate of title, salvage title or the regular certificate of title with such

form attached, the purchaser shall make application for a new nonhighway

certificate of title or salvage title, whichever is applicable, as provided in

subsection (c).

(3) If the transferor is not a vehicle dealer, as defined in K.S.A. 8-

2401, and amendments thereto, and a certificate of title has not been

issued for the vehicle under this section or a certificate of title was not

required under K.S.A. 8-135, and amendments thereto, the transferor

shall make application to the division for a nonhighway certificate of title

or salvage title, whichever is applicable, as provided in this section, except

that in addition thereto, the division shall require a bill of sale or such

transferor's affidavit, with at least one other corroborating affidavit, that

such transferor is the owner of such nonhighway vehicle or salvage ve-

hicle. If the division is satisfied that the transferor is the owner, the di-

vision shall issue a nonhighway certificate of title or salvage title, which-

ever is applicable, for such vehicle, and the transferor shall assign the

same to the purchaser, who shall make application for a new nonhighway

certificate of title or salvage title, whichever is applicable, as provided in

subsection (c).

(c) Every purchaser of a nonhighway vehicle or salvage vehicle,

whether assigned a nonhighway certificate of title, salvage title or a regular

certificate of title with the form specified in paragraph (2) of subsection

(b) attached, shall make application to the county treasurer of the county

in which such person resides for a new nonhighway certificate of title or

salvage title, whichever is applicable, in the same manner and under the

same conditions as for an application for a certificate of title under K.S.A.

8-135, and amendments thereto. Such application shall be in the form

prescribed by the director of vehicles and shall contain substantially the

same provisions as required for an application under subsection (c)(1) of

K.S.A. 8-135, and amendments thereto. In addition, such application shall

provide a place for the applicant to certify that the vehicle for which the

application for a nonhighway certificate of title or salvage title is made is

a nonhighway vehicle or salvage vehicle, whichever is applicable, and

other provisions the director deems necessary. Each application for a

nonhighway certificate of title or salvage title shall be accompanied by a

fee of $7 until July 1, 2002, $6 $8 until July 1, 2004, and $3.50 thereafter,

and if the application is not made to the county treasurer within the time

prescribed by K.S.A. 8-135, and amendments thereto, for making appli-

cation for a certificate of title thereunder, an additional fee of $2.

(d) A nonhighway certificate of title or salvage title shall be in form

and color as prescribed by the director of vehicles. A nonhighway certif-

icate of title or salvage title shall indicate clearly and distinctly on its face

that it is issued for a nonhighway vehicle or salvage vehicle, whichever is

applicable. A nonhighway certificate of title or salvage title shall contain

substantially the same information as required on a certificate of title

issued under K.S.A. 8-135, and amendments thereto, and other infor-

mation the director deems necessary.

(e) (1) A nonhighway certificate of title or salvage title may be trans-

ferred in the same manner and under the same conditions as prescribed

by K.S.A. 8-135, and amendments thereto, for the transfer of a certificate

of title, except as otherwise provided in this section. A nonhighway cer-

tificate of title or salvage title may be assigned and transferred only while

the vehicle remains a nonhighway vehicle or salvage vehicle.

(2) Upon transfer or sale of a nonhighway vehicle in a condition which

will allow the registration of such vehicle, the owner shall assign the non-

highway certificate of title to the purchaser, and the purchaser shall obtain

a certificate of title and register such vehicle as provided in K.S.A. 8-135,

and amendments thereto. No regular certificate of title shall be issued

for a vehicle for which there has been issued a nonhighway certificate of

title until there has been compliance with K.S.A. 8-116a, and amend-

ments thereto.

(3) Upon transfer or sale of a salvage vehicle which has been rebuilt

or restored or is otherwise in a condition which will allow the registration

of such vehicle, the owner shall assign the salvage title to the purchaser,

and the purchaser shall obtain a rebuilt salvage title and register such

vehicle as provided in K.S.A. 8-135, and amendments thereto. No rebuilt

salvage title shall be issued for a vehicle for which there has been issued

a salvage title until there has been compliance with K.S.A. 8-116a, and

amendments thereto.

(f) The owner of a salvage vehicle which has been issued a salvage

title and has been assembled, reconstructed, reconstituted or restored or

otherwise placed in an operable condition may make application to the

county treasurer for a permit to operate such vehicle on the highways of

this state over the most direct route from the place such salvage vehicle

is located to a specified location named on the permit and to return to

the original location. No such permit shall be issued for any vehicle unless

the owner has motor vehicle liability insurance coverage or an approved

self-insurance plan under K.S.A. 40-3104, and amendments thereto. Such

permit shall be on a form furnished by the director of vehicles and shall

state the date the vehicle is to be taken to the other location, the name

of the insurer, as defined in K.S.A. 40-3103, and amendments thereto,

and the policy number or a statement that the vehicle is included in a

self-insurance plan approved by the commissioner of insurance, a state-

ment attesting to the correctness of the information concerning financial

security, the vehicle identification number and a description of the ve-

hicle. Such permit shall be signed by the owner of the vehicle. Permits

issued under this subsection (f) shall be prepared in triplicate. One copy

shall be carried in the vehicle for which it is issued and shall be displayed

so that it is visible from the rear of the vehicle. The second copy shall be

retained by the county treasurer, and the third copy shall be forwarded

by the county treasurer to the division of vehicles. The fee for such permit

shall be $1 which shall be retained by the county treasurer, who shall

annually forward 25% of all such fees collected to the division of vehicles

to reimburse the division for administrative expenses, and shall deposit

the remainder in a special fund for expenses of issuing such permits.

(g) A nonhighway vehicle or salvage vehicle for which a nonhighway

certificate of title or salvage title has been issued pursuant to this section

shall not be deemed a motor vehicle for the purposes of K.S.A. 40-3101

to 40-3121, inclusive, and amendments thereto, except when such vehicle

is being operated pursuant to subsection (f). Any person who knowingly

makes a false statement concerning financial security in obtaining a per-

mit pursuant to subsection (f), or who fails to obtain a permit when re-

quired by law to do so is guilty of a class C misdemeanor.

(h) Any person who, on July 1, 1996, is the owner of an all-terrain

vehicle, as defined in K.S.A. 8-126, and amendments thereto, shall not

be required to file an application for a nonhighway certificate of title

under the provisions of this section for such all-terrain vehicle, unless the

person transfers an interest in such all-terrain vehicle.

Sec. 11. K.S.A. 58-4204, as amended by section 4 of 2002 House Bill

No. 2723, is hereby amended to read as follows: 58-4204. (a) For purposes

of this section, a manufactured home or mobile home shall be considered

to be personal property. Upon the transfer or sale of any manufactured

home or mobile home by any person or dealer, the new owner thereof,

within 30 days, inclusive of weekends and holidays, from the date of such

transfer or sale, shall make application to the division for the issuance of

a certificate of title evidencing the new owner's ownership of such man-

ufactured home or mobile home. An application for certificate of title

shall be made by the owner of the manufactured home or mobile home,

or the owner's agent, upon a form furnished by the division, and it shall

state all liens or encumbrances thereon and such other information as the

director may require. Notwithstanding any other provision of this section,

no certificate of title, other than a duplicate title, shall be issued for a

manufactured home or mobile home having any unreleased lien or en-

cumbrance thereon, unless the transfer of such manufactured home or

mobile home has been consented to in writing by the holder of the lien

or encumbrance. Such consent shall be in a form approved by the direc-

tor. The county treasurer shall use reasonable diligence in ascertaining

whether the facts stated in such application are true, and if satisfied that

the applicant is the lawful owner of the manufactured home or mobile

home, or otherwise entitled to have the certificate of title therefor issued

in such applicant's name, shall so notify the division, who shall issue an

appropriate certificate of title.

(b) The director shall design a distinctive certificate of title to be

issued to owners of manufactured homes and mobile homes, so as to be

distinguishable from certificates of title issued to owners of vehicles. The

certificate of title shall contain a statement of any liens or encumbrances

which the application discloses and shall provide such other information

as the director determines necessary and appropriate. The certificate of

title shall contain upon the reverse side a form for assignment of title to

be executed by the owner before a notary public or some other officer

authorized to administer oaths. This assignment shall contain a statement

of all liens or encumbrances on the manufactured home or mobile home

at the time of assignment. When the ownership of any manufactured

home or mobile home passes by operation of law or by repossession upon

default of a lease, security agreement or executory sales contract, the

person owning such manufactured home or mobile home, upon furnish-

ing satisfactory proof to the county treasurer of such ownership, may

procure a certificate of title to the manufactured home or mobile home.

(c) Dealers shall execute, upon delivery to the purchaser of every new

manufactured home, a manufacturer's statement of origin stating the liens

and encumbrances thereon. Such statement of origin shall be delivered

to the purchaser at the time of delivery of the manufactured home or at

a time agreed upon by the parties, not to exceed 30 days, inclusive of

weekends and holidays. The agreement of the parties shall be executed

on a form approved by the director. In the event delivery of title cannot

be made personally, the seller may deliver the manufacturer's statement

of origin by restricted mail to the address of the purchaser shown on the

purchase agreement. The manufacturer's statement of origin may include

an attachment containing assignment of such statement of origin on forms

approved by the director. Upon the presentation to the division of a man-

ufacturer's statement of origin, by a manufacturer or dealer for a new

manufactured home, sold in this state, a certificate of title shall be issued.

(d) The fee for each original certificate of title shall be $8 until July

1, 2004, and $3.50 thereafter. The certificate of title shall be good for the

life of the manufactured home or mobile home while owned or held by

the original holder of the certificate of title.

(e) Upon sale and delivery to the purchaser of every manufactured

home or mobile home subject to a purchase money security interest, as

provided for in article 9 of chapter 84 of the Kansas Statutes Annotated,

and amendments thereto, the dealer or secured party may complete a

notice of security interest and, when so completed, the purchaser shall

execute the notice, in a form prescribed by the director, describing the

manufactured home or mobile home and showing the name and address

of the secured party and of the debtor and such other information as the

director may require. The dealer or secured party may, within 10 days of

the sale and delivery, mail or deliver the notice of security interest, to-

gether with a fee of $2.50, to the division. The notice of security interest

shall be retained by the division, until it receives an application for a

certificate of title to the manufactured home or mobile home and a cer-

tificate of title is issued. The certificate of title shall indicate any security

interest in the manufactured home or mobile home. Upon issuance of

the certificate of title, the division shall mail or deliver confirmation of

the receipt of the notice of security interest, the date the certificate of

title is issued and the security interest indicated, to the secured party at

the address shown on the notice of security interest. The proper comple-

tion and timely mailing or delivery of a notice of security interest by a

dealer or secured party shall perfect a security interest in the manufac-

tured home or mobile home described on the date of such mailing or

delivery.

(f) In the event of a sale or transfer of ownership of a manufactured

home or mobile home for which a certificate of title has been issued,

which certificate of title is in the possession of the transferor at the time

of delivery of the manufactured home or mobile home, the holder of such

certificate of title shall endorse on the same an assignment thereof, with

warranty of title in a form prescribed by the director and printed thereon,

and the transferor shall deliver the same to the buyer at the time of

delivery to the buyer of the manufactured home or mobile home, or at a

time agreed upon by the parties, not to exceed 30 days, inclusive of week-

ends and holidays, after the time of delivery. The sale of a mobile home

or manufactured home by a manufactured home dealer without such

delivery of an assigned certificate of title is fraudulent and void, and it

shall constitute a violation of the Kansas manufactured housing act. The

agreement of the parties shall be executed on a form provided by the

division. The requirements of this subsection concerning delivery of an

assigned title are satisfied, if the transferor mails to the transferee, by

restricted mail, the assigned certificate of title within the 30 days, and if

the transferor is a dealer, as defined by K.S.A. 58-4202, and amendments

thereto, such transferor shall be deemed to have possession of the cer-

tificate of title, if the transferor has made application therefor to the

division.

The buyer shall then present such assigned certificate of title to the

division, and a new certificate of title shall be issued to the buyer upon

payment of the fee of $8 until July 1, 2004, and $3.50 thereafter. If such

manufactured home or mobile home is sold to a resident of another state

or country, the dealer or person making the sale shall notify the division

of the sale and the division shall make notation thereof in the records of

the division. If any manufactured home or mobile home is destroyed,

dismantled or sold as junk, the owner shall immediately notify the division

by surrendering the original or assigned certificate of title.

(g) When a person acquires a security agreement on a manufactured

home or mobile home subsequent to the issuance of the original title on

such manufactured home or mobile home, such person shall require the

holder of the certificate of title to surrender the same and sign an appli-

cation for a mortgage title in such form as prescribed by the director.

Upon such surrender, the person shall immediately deliver the certificate

of title, application and a fee of $8 until July 1, 2004, and $3.50 thereafter

to the division. Upon receipt thereof the division shall issue a new cer-

tificate of title, showing the liens or encumbrances so created, but not

more than two liens or encumbrances may be shown upon a title. The

delivery of the certificate of title, application and fee to the division shall

perfect such person's security interest in the manufactured home or mo-

bile home described in the certificate of title. When a prior lienholder's

name is removed from the title, there must be satisfactory evidence pre-

sented to the division that the lien or encumbrance has been paid. When

the indebtedness to a lienholder, whose name is shown upon a title, is

paid in full, such lienholder, within 10 days after written demand by re-

stricted mail, shall furnish to the holder of the title a release of lien or

execute such a release in the space provided on the title. For failure to

comply with such a demand, the lienholder shall be liable to the holder

of the title for $100 and also shall be liable for any loss caused to the

holder by such failure. When the indebtedness to a lienholder, whose

name is shown upon a title, is collected in full, such lienholder, within 30

days, shall furnish notice to the holder of title that such indebtedness has

been paid in full and that such title may be presented to the lienholder

at any time for release of lien.

(h) In the event of the sale of a manufactured home or mobile home

under the order of a court, the officer conducting such sale shall issue to

the purchaser a certificate naming the purchaser and reciting the facts of

the sale, which certificate shall be prima facie evidence of the ownership

of such purchaser for the purpose of obtaining a certificate of title to such

manufactured home or mobile home. Any such purchaser shall be allowed

30 days, inclusive of weekends and holidays, from the date of sale to make

application to the division for a certificate of title.

(i) Any dealer who has acquired a manufactured home or mobile

home, the title for which was issued under the laws of and in a state other

than the state of Kansas, shall not be required to retain a Kansas certificate

of title therefor during the time such manufactured home or mobile home

remains in such dealer's possession and at such dealer's established or

supplemental place of business for the purpose of sale. Upon the sale of

any such manufactured home or mobile home, the dealer immediately

shall deliver to the purchaser or transferee the certificate of title issued

by the other state, properly endorsed and assigned to the purchaser or

transferee, together with an affidavit executed by the dealer setting forth:

(1) That the dealer warrants to the purchaser or transferee and all

other persons who claim through the purchaser or transferee that, at the

time of the sale transfer and delivery by the dealers, the manufactured

home or mobile home was free and clear of all liens, mortgages and other

encumbrances, except those otherwise appearing on the title;

(2) the information shown on the title relating to all previous assign-

ments, including the names of all previous titleholders shown thereon;

and

(3) that the dealer has the right to sell and transfer the manufactured

home or mobile home.

Sec. 12. On and after January 1, 2003, K.S.A. 58-4204, as amended

by section 11 of 2002 House Substitute for Senate Bill No. 364, is hereby

amended to read as follows: 58-4204. (a) For purposes of this section, a

manufactured home or mobile home shall be considered to be personal

property.

(b) The provisions of this section shall apply to any electronic certif-

icate of title, except to the extent such provisions are made inapplicable

by or are inconsistent with section 2 of 2002 Senate Bill No. 449, and

amendments thereto, or with rules and regulations adopted pursuant to

section 2 of Senate Bill No. 449, and amendments thereto.

The provisions of this section shall apply to any certificate of title issued

prior to January 1, 2003, which indicates that there is a lien or encum-

brance on such manufactured home or mobile home.

(c) Upon the transfer or sale of any manufactured home or mobile

home by any person or dealer, the new owner thereof, within 30 days,

inclusive of weekends and holidays, from the date of such transfer or sale,

shall make application to the division for the issuance of a certificate of

title evidencing the new owner's ownership of such manufactured home

or mobile home. An application for certificate of title shall be made by

the owner of the manufactured home or mobile home, or the owner's

agent, upon a form furnished by the division, and it shall state all liens or

encumbrances thereon and such other information as the director may

require. Notwithstanding any other provision of this section, no certificate

of title, other than a duplicate title, shall be issued for a manufactured

home or mobile home having any unreleased lien or encumbrance

thereon, unless the transfer of such manufactured home or mobile home

has been consented to in writing by the holder of the lien or encum-

brance. Such consent shall be in a form approved by the director. The

county treasurer shall use reasonable diligence in ascertaining whether

the facts stated in such application are true, and if satisfied that the ap-

plicant is the lawful owner of the manufactured home or mobile home,

or otherwise entitled to have the certificate of title therefor issued in such

applicant's name, shall so notify the division, who shall issue an appro-

priate certificate of title.

(b) (d) The director shall design a distinctive certificate of title to be

issued to owners of manufactured homes and mobile homes, so as to be

distinguishable from certificates of title issued to owners of vehicles. The

certificate of title shall contain a statement of any liens or encumbrances

which the application discloses and shall provide such other information

as the director determines necessary and appropriate. The certificate of

title shall contain upon the reverse side a form for assignment of title to

be executed by the owner. This assignment shall contain a statement of

all liens or encumbrances on the manufactured home or mobile home at

the time of assignment. When the ownership of any manufactured home

or mobile home passes by operation of law or by repossession upon de-

fault of a lease, security agreement or executory sales contract, the person

owning such manufactured home or mobile home, upon furnishing sat-

isfactory proof to the county treasurer of such ownership, may procure a

certificate of title to the manufactured home or mobile home.

(c) (e) Dealers shall execute, upon delivery to the purchaser of every

new manufactured home, a manufacturer's statement of origin stating the

liens and encumbrances thereon. Such statement of origin shall be deliv-

ered to the purchaser at the time of delivery of the manufactured home

or at a time agreed upon by the parties, not to exceed 30 days, inclusive

of weekends and holidays. The agreement of the parties shall be executed

on a form approved by the director. In the event delivery of title cannot

be made personally, the seller may deliver the manufacturer's statement

of origin by restricted mail to the address of the purchaser shown on the

purchase agreement. The manufacturer's statement of origin may include

an attachment containing assignment of such statement of origin on forms

approved by the director. Upon the presentation to the division of a man-

ufacturer's statement of origin, by a manufacturer or dealer for a new

manufactured home, sold in this state, a certificate of title shall be issued.

(d) (f) The fee for each original certificate of title shall be $8 until

July 1, 2004, and $3.50 thereafter. The certificate of title shall be good

for the life of the manufactured home or mobile home while owned or

held by the original holder of the certificate of title.

(e) (g) Upon sale and delivery to the purchaser of every manufactured

home or mobile home subject to a purchase money security interest, as

provided for in article 9 of chapter 84 of the Kansas Statutes Annotated,

and amendments thereto, the dealer or secured party may complete a

notice of security interest and, when so completed, the purchaser shall

execute the notice, in a form prescribed by the director, describing the

manufactured home or mobile home and showing the name and address

of the secured party and of the debtor and such other information as the

director may require. The dealer or secured party may, within 10 days of

the sale and delivery, mail or deliver the notice of security interest, to-

gether with a fee of $2.50, to the division. The notice of security interest

shall be retained by the division, until it receives an application for a

certificate of title to the manufactured home or mobile home and a cer-

tificate of title is issued. The certificate of title shall indicate any security

interest in the manufactured home or mobile home. Upon issuance of

the certificate of title, the division shall mail or deliver confirmation of

the receipt of the notice of security interest, the date the certificate of

title is issued and the security interest indicated, to the secured party at

the address shown on the notice of security interest. The proper comple-

tion and timely mailing or delivery of a notice of security interest by a

dealer or secured party shall perfect a security interest in the manufac-

tured home or mobile home described on the date of such mailing or

delivery.

(f) (h) In the event of a sale or transfer of ownership of a manufac-

tured home or mobile home for which a certificate of title has been issued,

which certificate of title is in the possession of the transferor at the time

of delivery of the manufactured home or mobile home, the holder of such

certificate of title shall endorse on the same an assignment thereof, with

warranty of title in a form prescribed by the director and printed thereon,

and the transferor shall deliver the same to the buyer at the time of

delivery to the buyer of the manufactured home or mobile home, or at a

time agreed upon by the parties, not to exceed 30 days, inclusive of week-

ends and holidays, after the time of delivery. The sale of a mobile home

or manufactured home by a manufactured home dealer without such

delivery of an assigned certificate of title is fraudulent and void, and it

shall constitute a violation of the Kansas manufactured housing act. The

agreement of the parties shall be executed on a form provided by the

division. The requirements of this subsection concerning delivery of an

assigned title are satisfied, if the transferor mails to the transferee, by

restricted mail, the assigned certificate of title within the 30 days, and if

the transferor is a dealer, as defined by K.S.A. 58-4202, and amendments

thereto, such transferor shall be deemed to have possession of the cer-

tificate of title, if the transferor has made application therefor to the

division.

The buyer shall then present such assigned certificate of title to the

division, and a new certificate of title shall be issued to the buyer upon

payment of the fee of $8 until July 1, 2004, and $3.50 thereafter. If such

manufactured home or mobile home is sold to a resident of another state

or country, the dealer or person making the sale shall notify the division

of the sale and the division shall make notation thereof in the records of

the division. If any manufactured home or mobile home is destroyed,

dismantled or sold as junk, the owner shall immediately notify the division

by surrendering the original or assigned certificate of title.

(g) (i) When a person acquires a security agreement on a manufac-

tured home or mobile home subsequent to the issuance of the original

title on such manufactured home or mobile home, such person shall re-

quire the holder of the certificate of title to surrender the same and sign

an application for a mortgage title in such form as prescribed by the

director. Upon such surrender, the person shall immediately deliver the

certificate of title, application and a fee of $8 until July 1, 2004, and $3.50

thereafter to the division. Upon receipt thereof the division shall issue a

new certificate of title, showing the liens or encumbrances so created,

but not more than two liens or encumbrances may be shown upon a title.

The delivery of the certificate of title, application and fee to the division

shall perfect such person's security interest in the manufactured home or

mobile home described in the certificate of title. When a prior lien-

holder's name is removed from the title, there must be satisfactory evi-

dence presented to the division that the lien or encumbrance has been

paid. When the indebtedness to a lienholder, whose name is shown upon

a title, is paid in full, such lienholder, within 10 days after written demand

by restricted mail, shall furnish to the holder of the title a release of lien

or execute such a release in the space provided on the title. For failure

to comply with such a demand, the lienholder shall be liable to the holder

of the title for $100 and also shall be liable for any loss caused to the

holder by such failure. When the indebtedness to a lienholder, whose

name is shown upon a title, is collected in full, such lienholder, within 30

days, shall furnish notice to the holder of title that such indebtedness has

been paid in full and that such title may be presented to the lienholder

at any time for release of lien.

(h) (j) In the event of the sale of a manufactured home or mobile

home under the order of a court, the officer conducting such sale shall

issue to the purchaser a certificate naming the purchaser and reciting the

facts of the sale, which certificate shall be prima facie evidence of the

ownership of such purchaser for the purpose of obtaining a certificate of

title to such manufactured home or mobile home. Any such purchaser

shall be allowed 30 days, inclusive of weekends and holidays, from the

date of sale to make application to the division for a certificate of title.

(i) (k) Any dealer who has acquired a manufactured home or mobile

home, the title for which was issued under the laws of and in a state other

than the state of Kansas, shall not be required to retain a Kansas certificate

of title therefor during the time such manufactured home or mobile home

remains in such dealer's possession and at such dealer's established or

supplemental place of business for the purpose of sale. Upon the sale of

any such manufactured home or mobile home, the dealer immediately

shall deliver to the purchaser or transferee the certificate of title issued

by the other state, properly endorsed and assigned to the purchaser or

transferee, together with an affidavit executed by the dealer setting forth:

(1) That the dealer warrants to the purchaser or transferee and all

other persons who claim through the purchaser or transferee that, at the

time of the sale transfer and delivery by the dealers, the manufactured

home or mobile home was free and clear of all liens, mortgages and other

encumbrances, except those otherwise appearing on the title;

(2) the information shown on the title relating to all previous assign-

ments, including the names of all previous titleholders shown thereon;

and

(3) that the dealer has the right to sell and transfer the manufactured

home or mobile home.

Sec. 13. K.S.A. 2001 Supp. 74-2013 is hereby amended to read as

follows: 74-2013. Upon application signed by the owner or the owner's

agent and payment of a fee of $7 until July 1, 2002, $6 $8 until July 1,

2004, and $3.50 thereafter, and surrender of the original title together

with satisfactory evidence that the lien has been paid, the department is

hereby authorized to grant a reissue of a certificate of title showing the

vehicle to be clear of any lien.

Sec. 14. K.S.A. 8-135, 8-135, as amended by section 1 of 2002 Senate

Bill No. 507, 8-135, as amended by section 2 of 2002 House Bill No.

2794, 8-135a, 8-139, 8-145, 8-145, as amended by section 3 of 2002 House

Bill No. 2794, 8-145d, as amended by section 1 of 2002 House Bill No.

2662, 8-145d, as amended by section 4 of 2002 House Bill No. 2794, 8-

170, 8-171, 8-198 and 58-4204, as amended by section 4 of 2002 House

Bill No. 2723 and K.S.A. 2001 Supp. 74-2013 are hereby repealed.

Sec. 15. On and after January 1, 2003, K.S.A. 8-126, as amended by

section 2 of 2002 House Bill No. 2663, 8-126, as amended by section 3

of 2002 Senate Bill No. 449, 8-135, as amended by section 4 of 2002

Senate Bill No. 449, 8-135, as amended by section 2 of 2002 House Sub-

stitute for Senate Bill No. 364, 58-4204, as amended by section 6 of 2002

Senate Bill No. 449 and 58-4204, as amended by section 11 of 2002 House

Substitute for Senate Bill No. 364 are hereby repealed.

Sec. 16. This act shall take effect and be in force from and after its

publication in the statute book.

Approved May 17, 2002.


__________




Date Composed: 10/10/2002 Date Modified: 10/10/2002