Session Law

Identifying Information:L. 2002 ch. 048
Other Identifying Information:2002 Senate Bill 449
Tax Type:Vehicles
Brief Description:(Amended by Chapter 134)An Act relating to certificates of title; concerning electronic certificates of title; amending K.S.A. 8-126, 8-135, 58-4202 and 58-4204 and repealing the existing sections.
Keywords:


Body:

CHAPTER 48

SENATE BILL No. 449

(Amended by Chapter 134)


An Act relating to certificates of title; concerning electronic certificates of title; amending

K.S.A. 8-126, 8-135, 58-4202 and 58-4204 and repealing the existing sections.

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

New Section 1. (a) On and after January 1, 2003, when an assign-

ment of title or manufacturer's statement of origin indicates that there is

a lien or encumbrance on a vehicle or if a notice of security interest has

been filed with the division, the division shall retain possession of such

certificate of title electronically and shall create an electronic certificate

of title. The provisions of article 1 of chapter 8 of the Kansas Statutes

Annotated, and amendments thereto, shall apply to an electronic certif-

icate of title, except as otherwise provided by statute or by rules and

regulations adopted pursuant to subsection (b).

(b) The secretary of revenue is hereby authorized to adopt rules and

regulations necessary to carry out the provisions of this section.

New Sec. 2. (a) On and after January 1, 2003, when an assignment

of title or manufacturer's statement of origin indicates that there is a lien

or encumbrance on a manufactured home or mobile home or if a notice

of security interest has been filed with the division, the division shall retain

possession of such certificate of title electronically and shall create an

electronic certificate of title. The provisions of K.S.A. 58-4201, et seq.,

and amendments thereto, shall apply to an electronic certificate of title,

except as otherwise provided by statute or by rules and regulations

adopted pursuant to subsection (b).

(b) The secretary of revenue is hereby authorized to adopt rules and

regulations necessary to carry out the provisions of this section.

Sec. 3. K.S.A. 8-126 is hereby amended to read as follows: 8-

126. The following words and phrases when used in this act shall have

the meanings respectively ascribed to them herein:

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

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

cepting devices moved by human power or used exclusively upon station-

ary rails or tracks.

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

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

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

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

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

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

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

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

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

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

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

a farm implement power unit operated with or without other attached

farm implements in any manner consistent with the structural design of

such power unit.

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

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

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

drawn.

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

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

by a motor vehicle.

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

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

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

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

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

to the tractor drawing the load.

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

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

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

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

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

or makes of vehicles.

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

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

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

been registered in this state.

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

ation or corporation.

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

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

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

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

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

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

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

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

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

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

state.

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

manufacturing motor vehicles, trailers or semitrailers.

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

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

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

manufacturer or distributor and who has an established place of business

in this state.

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

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

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

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

vehicles.

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

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

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

driveway upon grounds owned by private owners, colleges, universities

or other institutions.

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

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

directly or through its duly authorized officers and agents.

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

of vehicles of the department of revenue.

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

revenue.

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

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

tional purposes.

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

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

is not used as a truck.

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

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

nently incorporated in its structural design.

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

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

tion, designed and used primarily as a farm vehicle.

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

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

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

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

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

(3) an automatic transmission; and

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

miles per hour.

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

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

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

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

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

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

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

the vehicle manufacturer.

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

adapted and used exclusively for agricultural operations, including feed-

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

term shall include, but not be limited to:

(1) A farm tractor;

(2) a self-propelled farm implement;

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

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

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

and amendments thereto, regardless of ownership;

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

principally to spread animal dung;

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

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

used exclusively for dispensing food to livestock in such feedlot.

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

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

of a speed in excess of 15 miles per hour.

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

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

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

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

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

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

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

out or oil well drilling machinery or equipment.

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

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

the division in accordance with section 1, and amendments thereto.

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

135. (a) Upon the transfer of ownership of any vehicle registered under

this act, the registration of the vehicle and the right to use any license

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

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

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

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

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

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

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

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

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

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

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

paid and that due for the new vehicle.

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

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

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

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

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

shall make application to the division for registration or reregistration of

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

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

obtained temporary registration from the county treasurer or from a

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

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

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

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

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

has a current motorcycle or passenger vehicle registration and license

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

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

motorcycle or passenger vehicle and intends to transfer the registration

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

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

treasurer, such person may operate the motorcycle or passenger vehicle

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

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

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

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

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

dealer license plate.

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

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

the applicant for registration shall present satisfactory evidence of own-

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

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

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

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

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

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

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

inapplicable by or are inconsistent with section 1, and amendments

thereto or with rules and regulations adopted pursuant to section 1, and

amendments thereto.

The provisions of paragraphs (1) through (12) shall apply to any cer-

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

is a lien or encumbrance on such vehicle.

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

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

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

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

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

vehicle having any unreleased lien or encumbrance thereon, unless the

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

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

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

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

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

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

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

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

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

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

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

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

contain a statement of any liens or encumbrances which the application

shows, and such other information as the division determines.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

repossessed vehicle shall pay a fee of $3.

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

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

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

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

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

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

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

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

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

manufacturer's statement of origin may include an attachment containing

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

lienholder. Each county treasurer shall charge the Kansas lienholder a

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

to the Kansas lienholder.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

after, to the division. Upon receipt thereof, the division shall issue a new

certificate of title showing the liens or encumbrances so created, but not

more than two liens or encumbrances may be shown upon a title. When

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

factory evidence presented to the division that the lien or encumbrance

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

within 30 days thereof. The requirements of this paragraph concerning

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

and for the registering of such motor vehicle.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

fraudulent and void for that reason alone.

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

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

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

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

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

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

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

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

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

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

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

Sec. 5. K.S.A. 58-4202 is hereby amended to read as follows: 58-

4202. As used in the Kansas manufactured housing act:

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

(1) Is transportable in one or more sections which, in the traveling

mode, is 8 body feet or more in width or 40 body feet or more in length,

or, when erected on site, is 320 or more square feet, and which is built

on a permanent chassis and designed to be used as a dwelling, with or

without permanent foundation, when connected to the required utilities,

and includes the plumbing, heating, air conditioning and electrical sys-

tems contained therein; and

(2) is subject to the federal manufactured home construction and

safety standards established pursuant to 42 U.S.C. § 5403.

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

(1) Is transportable in one or more sections which, in the traveling

mode, is 8 body feet or more in width and 36 body feet or more in length

and is built on a permanent chassis and designed to be used as a dwelling,

with or without a permanent foundation, when connected to the required

utilities, and includes the plumbing, heating, air conditioning and elec-

trical systems contained therein; and

(2) is not subject to the federal manufactured home construction and

safety standards established pursuant to 42 U.S.C. § 5403.

(c) ``Modular home'' means a structure which is: (1) Transportable in

one or more sections; (2) not constructed on a permanent chassis; (3)

designed to be used as a dwelling on a permanent foundation when con-

nected to the required utilities, and includes the plumbing, heating, air

conditioning and electrical systems contained therein; and (4) certified by

its manufacturer as being constructed in accordance with a nationally

recognized building code.

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

or modular home.

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

revenue.

(f) ``Director'' means the director of vehicles, either acting directly

or through officers or agents of the division of vehicles of the department

of revenue.

(g) ``Manufactured home dealer'' or ``dealer'' means any person who,

for commission, money or other thing of value, is engaged in the business

of:

(1) Buying, selling or offering or attempting to negotiate a sale of an

interest in manufactured homes or mobile homes; or

(2) buying, selling or offering or attempting to negotiate a sale of an

interest in manufactured homes or mobile homes for other persons as an

agent, middleman or negotiator; or

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

mobile homes.

(h) ``New manufactured home dealer'' means any manufactured

home dealer who is a party to a manufactured home sales agreement with

a manufactured home manufacturer, which manufactured home sales

agreement authorizes the manufactured home dealer to sell, exchange or

transfer new manufactured homes or parts and accessories made or sold

by such manufactured home manufacturer, and obligates the manufac-

tured home dealer to fulfill the warranty commitments of such manufac-

tured home manufacturer.

(i) ``Used manufactured home dealer'' means any person actively en-

gaged in the business of buying, selling or exchanging used manufactured

homes or mobile homes.

(j) ``Manufactured home manufacturer'' means any person who man-

ufactures, assembles and sells new manufactured homes to new manu-

factured home dealers for resale in this state.

(k) ``Salesperson'' means any person who is employed as a salesperson

by a manufactured home dealer to sell manufactured homes or mobile

homes.

(l) ``Factory representative'' means a representative employed by a

manufactured home manufacturer for the purpose of making or promot-

ing the sale of its new manufactured homes to new manufactured home

dealers, or for advertising or contacting its new manufactured dealers with

respect to the promotion and sale of manufactured homes and parts or

accessories for the same.

(m) ``Manufactured home sales agreement'' means a contract be-

tween the manufacturer of manufactured homes and a new manufactured

home dealer, by which the dealer is entitled to purchase new manufac-

tured homes from the manufacturer for resale within this state.

(n) ``Broker'' means any person who, for commission, money or other

thing of value, is engaged in the business of:

(1) Selling or buying manufactured homes or mobile homes for other

persons as an agent, middleman or negotiator; or

(2) bringing together buyers and sellers of manufactured homes or

mobile homes, but such term shall not include any person engaged in a

business in which the acts described in this subsection are only inciden-

tally performed.

(o) ``Lending agency'' means any person, desiring to be licensed un-

der this act and engaged in the business of financing or lending money

to any person to be used in the purchase or financing of a manufactured

home or mobile home.

(p) ``Established place of business'' means a building or structure,

other than a building or structure all or part of which is occupied or used

as a residence, owned either in fee or leased and designated as an office

or place to receive mail and keep records and conduct the routine of

business. To qualify as an established place of business, there shall be

located therein an operable telephone which shall be listed with the tel-

ephone company under the name of the licensee.

(q) ``Supplemental place of business'' means a business location other

than that of the established place of business.

(r) ``Licensee'' means any person issued a valid license pursuant to

the Kansas manufactured housing act.

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

or association.

(t) ``Electronic certificate of title'' means any electronic record of own-

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

division in accordance with section 2, and amendments thereto.

Sec. 6. K.S.A. 58-4204 is hereby amended to read as follows: 58-

4204. (a) The provisions of this section shall apply to any electronic cer-

tificate of title, except to the extent such provisions are made inapplicable

by or are inconsistent with section 2, and amendments thereto.

The provisions of this section shall apply to any certificate of title issued

prior to January 1, 2003, which indicates that there is a lien or encum-

brance on such manufactured home or mobile home.

(a) (b) Upon the transfer or sale of any manufactured home or mobile

home by any person or dealer, the new owner thereof, within 30 days,

inclusive of weekends and holidays, from the date of such transfer or sale,

shall make application to the division for the issuance of a certificate of

title evidencing the new owner's ownership of such manufactured home

or mobile home. An application for certificate of title shall be made by

the owner of the manufactured home or mobile home, or the owner's

agent, upon a form furnished by the division, and it shall state all liens or

encumbrances thereon and such other information as the director may

require. Notwithstanding any other provision of this section, no certificate

of title, other than a duplicate title, shall be issued for a manufactured

home or mobile home having any unreleased lien or encumbrance

thereon, unless the transfer of such manufactured home or mobile home

has been consented to in writing by the holder of the lien or encum-

brance. Such consent shall be in a form approved by the director. The

county treasurer shall use reasonable diligence in ascertaining whether

the facts stated in such application are true, and if satisfied that the ap-

plicant is the lawful owner of the manufactured home or mobile home,

or otherwise entitled to have the certificate of title therefor issued in such

applicant's name, shall so notify the division, who shall issue an appro-

priate certificate of title.

(b) (c) The director shall design a distinctive certificate of title to be

issued to owners of manufactured homes and mobile homes, so as to be

distinguishable from certificates of title issued to owners of vehicles. The

certificate of title shall contain a statement of any liens or encumbrances

which the application discloses and shall provide such other information

as the director determines necessary and appropriate. The certificate of

title shall contain upon the reverse side a form for assignment of title to

be executed by the owner before a notary public or some other officer

authorized to administer oaths. This assignment shall contain a statement

of all liens or encumbrances on the manufactured home or mobile home

at the time of assignment. When the ownership of any manufactured

home or mobile home passes by operation of law or by repossession upon

default of a lease, security agreement or executory sales contract, the

person owning such manufactured home or mobile home, upon furnish-

ing satisfactory proof to the county treasurer of such ownership, may

procure a certificate of title to the manufactured home or mobile home.

(c) (d) Dealers shall execute, upon delivery to the purchaser of every

new manufactured home, a manufacturer's statement of origin stating the

liens and encumbrances thereon. Such statement of origin shall be deliv-

ered to the purchaser at the time of delivery of the manufactured home

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

of weekends and holidays. The agreement of the parties shall be executed

on a form approved by the director. In the event delivery of title cannot

be made personally, the seller may deliver the manufacturer's statement

of origin by restricted mail to the address of the purchaser shown on the

purchase agreement. The manufacturer's statement of origin may include

an attachment containing assignment of such statement of origin on forms

approved by the director. Upon the presentation to the division of a man-

ufacturer's statement of origin, by a manufacturer or dealer for a new

manufactured home, sold in this state, a certificate of title shall be issued.

(d) (e) The fee for each original certificate of title shall be $3.50. The

certificate of title shall be good for the life of the manufactured home or

mobile home while owned or held by the original holder of the certificate

of title.

(e) (f) Upon sale and delivery to the purchaser of every manufactured

home or mobile home subject to a purchase money security interest, as

defined in K.S.A. 84-9-107 provided for in article 9 of chapter 84 of the

Kansas Statutes Annotated, and amendments thereto, the dealer or se-

cured party may complete a notice of security interest and, when so com-

pleted, the purchaser shall execute the notice, in a form prescribed by

the director, describing the manufactured home or mobile home and

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

and such other information as the director may require. The dealer or

secured party may, within 10 days of the sale and delivery, mail or deliver

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

The notice of security interest shall be retained by the division, until it

receives an application for a certificate of title to the manufactured home

or mobile home and a certificate of title is issued. The certificate of title

shall indicate any security interest in the manufactured home or mobile

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

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

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

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

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

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

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

(f) (g) In the event of a sale or transfer of ownership of a manufac-

tured home or mobile home for which a certificate of title has been issued,

which certificate of title is in the possession of the transferor at the time

of delivery of the manufactured home or mobile home, the holder of such

certificate of title shall endorse on the same an assignment thereof, with

warranty of title in a form prescribed by the director and printed thereon,

and the transferor shall deliver the same to the buyer at the time of

delivery to the buyer of the manufactured home or mobile home, or at a

time agreed upon by the parties, not to exceed 30 days, inclusive of week-

ends and holidays, after the time of delivery. The sale of a mobile home

or manufactured home by a manufactured home dealer without such

delivery of an assigned certificate of title is fraudulent and void, and it

shall constitute a violation of the Kansas manufactured housing act. The

agreement of the parties shall be executed on a form provided by the

division. The requirements of this subsection concerning delivery of an

assigned title are satisfied, if the transferor mails to the transferee, by

restricted mail, the assigned certificate of title within the 30 days, and if

the transferor is a dealer, as defined by K.S.A. 58-4202, and amendments

thereto, such transferor shall be deemed to have possession of the cer-

tificate of title, if the transferor has made application therefor to the

division.

The buyer shall then present such assigned certificate of title to the

division, and a new certificate of title shall be issued to the buyer upon

payment of the fee of $3.50. If such manufactured home or mobile home

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

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

make notation thereof in the records of the division. If any manufactured

home or mobile home is destroyed, dismantled or sold as junk, the owner

shall immediately notify the division by surrendering the original or as-

signed certificate of title.

(g) (h) When a person acquires a security agreement on a manufac-

tured home or mobile home subsequent to the issuance of the original

title on such manufactured home or mobile home, such person shall re-

quire the holder of the certificate of title to surrender the same and sign

an application for a mortgage title in such form as prescribed by the

director. Upon such surrender, the person shall immediately deliver the

certificate of title, application and a fee of $3.50 to the division. Upon

receipt thereof the division shall issue a new certificate of title, showing

the liens or encumbrances so created, but not more than two liens or

encumbrances may be shown upon a title. When a prior lienholder's name

is removed from the title, there must be satisfactory evidence presented

to the division that the lien or encumbrance has been paid. When the

indebtedness to a lienholder, whose name is shown upon a title, is paid

in full, such lienholder, within 10 days after written demand by restricted

mail, shall furnish to the holder of the title a release of lien or execute

such a release in the space provided on the title. For failure to comply

with such a demand, the lienholder shall be liable to the holder of the

title for $100 and also shall be liable for any loss caused to the holder by

such failure. When the indebtedness to a lienholder, whose name is

shown upon a title, is collected in full, such lienholder, within 30 days,

shall furnish notice to the holder of title that such indebtedness has been

paid in full and that such title may be presented to the lienholder at any

time for release of lien.

(h) (i) In the event of the sale of a manufactured home or mobile

home under the order of a court, the officer conducting such sale shall

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

facts of the sale, which certificate shall be prima facie evidence of the

ownership of such purchaser for the purpose of obtaining a certificate of

title to such manufactured home or mobile home. Any such purchaser

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

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

(i) (j) Any dealer who has acquired a manufactured home or mobile

home, the title for which was issued under the laws of and in a state other

than the state of Kansas, shall not be required to retain a Kansas certificate

of title therefor during the time such manufactured home or mobile home

remains in such dealer's possession and at such dealer's established or

supplemental place of business for the purpose of sale. Upon the sale of

any such manufactured home or mobile home, the dealer immediately

shall deliver to the purchaser or transferee the certificate of title issued

by the other state, properly endorsed and assigned to the purchaser or

transferee, together with an affidavit executed by the dealer setting forth:

(1) That the dealer warrants to the purchaser or transferee and all

other persons who claim through the purchaser or transferee that, at the

time of the sale transfer and delivery by the dealers, the manufactured

home or mobile home was free and clear of all liens, mortgages and other

encumbrances, except those otherwise appearing on the title;

(2) the information shown on the title relating to all previous assign-

ments, including the names of all previous titleholders shown thereon;

and

(3) that the dealer has the right to sell and transfer the vehicle.

Sec. 7. K.S.A. 8-126, 8-135, 58-4202 and 58-4204 are hereby re-

pealed.

Sec. 8. This act shall take effect and be in force from and after Jan-

uary 1, 2003, and its publication in the statute book.

Approved April 9, 2002.


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Date Composed: 10/10/2002 Date Modified: 10/10/2002