Session of 1998
                   
HOUSE BILL No. 2849
         
By Representative Carmody
         
2-9
            9             AN ACT concerning certificates of titles; relating to the assignment of
10             titles; liability; amending K.S.A. 1997 Supp. 8-135 and repealing the
11             existing section.
12            
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 1997 Supp. 8-135 is hereby amended to read as
15       follows: 8-135. (a) Upon the transfer of ownership of any vehicle regis-
16       tered under this act, the registration of the vehicle and the right to use
17       any license plate thereon shall expire and thereafter there shall be no
18       transfer of any registration, and the license plate shall be removed by the
19       owner thereof. It shall be unlawful for any person, other than the person
20       to whom the license plate was originally issued, to have possession
21       thereof. When the ownership of a registered vehicle is transferred, the
22       original owner of the license plate may register another vehicle under the
23       same number, upon application and payment of a fee of $1.50, if such
24       other vehicle does not require a higher license fee. If a higher license fee
25       is required, then the transfer may be made upon the payment of the
26       transfer fee of $1.50 and the difference between the fee originally paid
27       and that due for the new vehicle.
28           (b) Subject to the provisions of subsection (a) of K.S.A. 8-198, and
29       amendments thereto, upon the transfer or sale of any vehicle by any
30       person or dealer, or upon any transfer in accordance with K.S.A. 1997
31       Supp. 59-3511, the new owner thereof, within 30 days, inclusive of week-
32       ends and holidays, from date of such transfer shall make application to
33       the division for registration or reregistration of the vehicle, but no person
34       shall operate the vehicle on any highway in this state during the thirty-
35       day period without having applied for and obtained temporary registration
36       from the county treasurer or from a dealer. After the expiration of the
37       thirty-day period, it shall be unlawful for the owner or any other person
38       to operate such vehicle upon the highways of this state unless the vehicle
39       has been registered as provided in this act. For failure to make application
40       for registration as provided in this section, a penalty of $2 shall be added
41       to other fees. When a person has a current motorcycle or passenger ve-
42       hicle registration and license plate, including any registration decal affixed
43       thereto, for a vehicle and has sold or otherwise disposed of the vehicle

HB 2849

2

  1       and has acquired another motorcycle or passenger vehicle and intends to
  2       transfer the registration and the license plate to the motorcycle or pas-
  3       senger vehicle acquired, but has not yet had the registration transferred
  4       in the office of the county treasurer, such person may operate the mo-
  5       torcycle or passenger vehicle acquired for a period of not to exceed 30
  6       days by displaying the license plate on the rear of the vehicle acquired.
  7       If the acquired vehicle is a new vehicle such person also must carry the
  8       assigned certificate of title or manufacturer's statement of origin when
  9       operating the acquired vehicle, except that a dealer may operate such
10       vehicle by displaying such dealer's dealer license plate.
11           (c) Certificate of title: No vehicle required to be registered shall be
12       registered or any license plate or registration decal issued therefor, unless
13       the applicant for registration shall present satisfactory evidence of own-
14       ership and apply for an original certificate of title for such vehicle. The
15       following paragraphs of this subsection shall apply to the issuance of a
16       certificate of title for a nonhighway vehicle, as defined in K.S.A. 8-197,
17       and amendments thereto, except to the extent such paragraphs are made
18       inapplicable by or are inconsistent with K.S.A. 8-198, and amendments
19       thereto.
20           (1) An application for certificate of title shall be made by the owner
21       or the owner's agent upon a form furnished by the division and shall state
22       all liens or encumbrances thereon, and such other information as the
23       division may require. Notwithstanding any other provision of this section,
24       no certificate of title, other than a duplicate title, shall be issued for a
25       vehicle having any unreleased lien or encumbrance thereon, unless the
26       transfer of such vehicle has been consented to in writing by the holder
27       of the lien or encumbrance. Such consent shall be in a form approved by
28       the division. In the case of members of the armed forces of the United
29       States while the United States is engaged at war with any foreign nation
30       and for a period of six months next following the cessation of hostilities,
31       such application may be signed by the owner's spouse, parents, brother
32       or sister. The county treasurer shall use reasonable diligence in ascer-
33       taining whether the facts stated in such application are true, and if sat-
34       isfied that the applicant is the lawful owner of such vehicle, or otherwise
35       entitled to have the same registered in such applicant's name, shall so
36       notify the division, who shall issue an appropriate certificate of title. The
37       certificate of title shall be in a form approved by the division, and shall
38       contain a statement of any liens or encumbrances which the application
39       shows, and such other information as the division determines.
40           (2) The certificate of title shall contain upon the reverse side a form
41       for assignment of title to be executed by the owner before a notary public
42       or some other officer authorized to administer an oath. This assignment
43       shall contain a statement of all liens or encumbrances on the vehicle at

HB 2849

3

  1       the time of assignment. The certificate of title shall also contain on the
  2       reverse side blank spaces so that an abstract of mileage as to each owner
  3       will be available. The seller at the time of each sale shall insert the mileage
  4       on the form filed for application or reassignment of title, and the division
  5       shall insert such mileage on the certificate of title when issued to pur-
  6       chaser or assignee. The signature of the purchaser or assignee is required
  7       on the form filed for application or reassignment of title, acknowledging
  8       the odometer certification made by the seller, except that vehicles which
  9       are 10 model years or older and trucks with a gross vehicle weight of
10       more than 16,000 pounds shall be exempt from the mileage acknowledg-
11       ment requirement of the purchaser or assignee. Such title shall indicate
12       whether the vehicle for which it is issued has been titled previously as a
13       nonhighway vehicle. In addition, the reverse side shall contain two forms
14       for reassignment by a dealer, stating the liens or encumbrances thereon.
15       The first form of reassignment shall be used only when a dealer sells the
16       vehicle to another dealer. The second form of reassignment shall be used
17       by a dealer when selling the vehicle to another dealer or the ultimate
18       owner of the vehicle. The reassignment by a dealer shall be used only
19       where the dealer resells the vehicle, and during the time that the vehicle
20       remains in the dealer's possession for resale, the certificate of title shall
21       be dormant. When the ownership of any vehicle passes by operation of
22       law, or repossession upon default of a lease, security agreement, or ex-
23       ecutory sales contract, the person owning such vehicle, upon furnishing
24       satisfactory proof to the county treasurer of such ownership, may procure
25       a certificate of title to the vehicle. When a vehicle is registered in another
26       state and is repossessed in another state, the owner of such vehicle shall
27       not be entitled to obtain a valid Kansas title or registration, except that
28       when a vehicle is registered in another state, but is financed originally by
29       a financial institution chartered in the state of Kansas or when a financial
30       institution chartered in Kansas purchases a pool of motor vehicle loans
31       from the resolution trust corporation or a federal regulatory agency, and
32       the vehicle is repossessed in another state, such Kansas financial institu-
33       tion shall be entitled to obtain a valid Kansas title or registration.
34           (3) Dealers shall execute, upon delivery to the purchaser of every new
35       vehicle, a manufacturer's statement of origin stating the liens and encum-
36       brances thereon. Such statement of origin shall be delivered to the pur-
37       chaser at the time of delivery of the vehicle or at a time agreed upon by
38       the parties, not to exceed 30 days, inclusive of weekends and holidays.
39       The agreement of the parties shall be executed on a form approved by
40       the division. In the event delivery of title cannot be made personally, the
41       seller may deliver the manufacturer's statement of origin by restricted
42       mail to the address of purchaser shown on the purchase agreement. The
43       manufacturer's statement of origin may include an attachment containing

HB 2849

4

  1       assignment of such statement of origin on forms approved by the division.
  2       Upon the presentation to the division of a manufacturer's statement of
  3       origin, by a manufacturer or dealer for a new vehicle, sold in this state, a
  4       certificate of title shall be issued if there is also an application for regis-
  5       tration, except that no application for registration shall be required for a
  6       travel trailer used for living quarters and not operated on the highways.
  7           (4) The fee for each original certificate of title shall be $7 until July
  8       1, 1999, and $3.50 thereafter, in addition to the fee for registration of
  9       such vehicle, trailer or semitrailer. The certificate of title shall be good
10       for the life of the vehicle, trailer or semitrailer while owned or held by
11       the original holder of the certificate of title.
12           (5) Upon sale and delivery to the purchaser of every vehicle subject
13       to a purchase money security interest as defined in K.S.A. 84-9-107, and
14       amendments thereto, the dealer or secured party may complete a notice
15       of security interest and when so completed, the purchaser shall execute
16       the notice, in a form prescribed by the division, describing the vehicle
17       and showing the name and address of the secured party and of the debtor
18       and other information the division requires. The dealer or secured party,
19       within 15 days of the sale and delivery, may mail or deliver the notice of
20       security interest, together with a fee of $2.50, to the division. The notice
21       of security interest shall be retained by the division until it receives an
22       application for a certificate of title to the vehicle and a certificate of title
23       is issued. The certificate of title shall indicate any security interest in the
24       vehicle. Upon issuance of the certificate of title, the division shall mail or
25       deliver confirmation of the receipt of the notice of security interest, the
26       date the certificate of title is issued and the security interest indicated, to
27       the secured party at the address shown on the notice of security interest.
28       The proper completion and timely mailing or delivery of a notice of se-
29       curity interest by a dealer or secured party shall perfect a security interest
30       in the vehicle described on the date of such mailing or delivery. The
31       county treasurers shall mail a copy of the title application to the Kansas
32       lienholder. Each county treasurer shall charge the Kansas lienholder a
33       $1.50 service fee for processing and mailing a copy of the title application
34       to the Kansas lienholder.
35           (6) It shall be unlawful for any person to operate in this state a vehicle
36       required to be registered under this act, or to transfer the title to any
37       such vehicle to any person or dealer, unless a certificate of title has been
38       issued as herein provided. In the event of a sale or transfer of ownership
39       of a vehicle for which a certificate of title has been issued, which certif-
40       icate of title is in the possession of the transferor at the time of delivery
41       of the vehicle, the holder of such certificate of title shall endorse on the
42       same an assignment thereof, with warranty of title in a form prescribed
43       by the division and printed thereon and the transferor shall deliver the

HB 2849

5

  1       same to the buyer at the time of delivery to the buyer of the vehicle or
  2       at a time agreed upon by the parties, not to exceed 30 days, inclusive of
  3       weekends and holidays, after the time of delivery. The agreement of the
  4       parties shall be executed on a form provided by the division. The require-
  5       ments of this paragraph concerning delivery of an assigned title are sat-
  6       isfied if the transferor mails to the transferee by restricted mail the as-
  7       signed certificate of title within the 30 days, and if the transferor is a
  8       dealer, as defined by K.S.A. 8-2401, and amendments thereto, such trans-
  9       feror shall be deemed to have possession of the certificate of title if the
10       transferor has made application therefor to the division. The buyer shall
11       then present such assigned certificate of title to the division at the time
12       of making application for registration of such vehicle. A new certificate
13       of title shall be issued to the buyer, upon payment of the fee of $7 until
14       July 1, 1999, and $3.50 thereafter. If such vehicle is sold to a resident of
15       another state or country, the dealer or person making the sale shall notify
16       the division of the sale and the division shall make notation thereof in the
17       records of the division. When a person acquires a security agreement on
18       a vehicle subsequent to the issuance of the original title on such vehicle,
19       such person shall require the holder of the certificate of title to surrender
20       the same and sign an application for a mortgage title in form prescribed
21       by the division. Upon such surrender such person shall immediately de-
22       liver the certificate of title, application, and a fee of $7 until July 1, 1999,
23       and $3.50 thereafter, to the division. Upon receipt thereof, the division
24       shall issue a new certificate of title showing the liens or encumbrances so
25       created, but not more than two liens or encumbrances may be shown
26       upon a title. When a prior lienholder's name is removed from the title,
27       there must be satisfactory evidence presented to the division that the lien
28       or encumbrance has been paid. When the indebtedness to a lienholder,
29       whose name is shown upon a title, is paid in full, such lienholder within
30       10 days after written demand by restricted mail, shall furnish to the holder
31       of the title a release of lien or execute such a release in the space provided
32       on the title. For failure to comply with such a demand the lienholder shall
33       be liable to the holder of the title for $100 and also shall be liable for any
34       loss caused to the holder by such failure. When the indebtedness to a
35       lienholder, whose name is shown upon a title, is collected in full, such
36       lienholder, within 30 days, shall furnish notice to the holder of title that
37       such indebtedness has been paid in full and that such title may be pre-
38       sented to the lienholder at any time for release of lien.
39           (7) It shall be unlawful for any person to buy or sell in this state any
40       vehicle required to be registered, unless, at the time of delivery thereof
41       or at a time agreed upon by the parties, not to exceed 30 days, inclusive
42       of weekends and holidays, after the time of delivery, there shall pass
43       between the parties a certificate of title with an assignment thereof. The

HB 2849

6

  1       sale of a vehicle required to be registered under the laws of this state,
  2       without assignment of the certificate of title, is fraudulent and void, unless
  3       the parties shall agree that the certificate of title with assignment thereof
  4       shall pass between them at a time other than the time of delivery, but
  5       within 30 days thereof. The requirements of this paragraph concerning
  6       delivery of an assigned title shall be satisfied if (i) the seller mails to the
  7       purchaser by restricted mail the assigned certificate of title within 30 days,
  8       or (ii) if the transferor is a dealer, as defined by K.S.A. 8-2401, and amend-
  9       ments thereto, such seller shall be deemed to have possession of the
10       certificate of title if such seller has made application therefor to the di-
11       vision, or (iii) if the transferor is a dealer and has assigned a title pursuant
12       to paragraph (9) of this subsection (c).
13           (8) In cases of sales under the order of a court of a vehicle required
14       to be registered under this act, the officer conducting such sale shall issue
15       to the purchaser a certificate naming the purchaser and reciting the facts
16       of the sale, which certificate shall be prima facie evidence of the own-
17       ership of such purchaser for the purpose of obtaining a certificate of title
18       to such motor vehicle and for registering the same. Any such purchaser
19       shall be allowed 30 days, inclusive of weekends and holidays, from the
20       date of sale to make application to the division for a certificate of title
21       and for the registering of such motor vehicle.
22           (9) Any dealer who has acquired a vehicle, the title for which was
23       issued under the laws of and in a state other than the state of Kansas,
24       shall not be required to obtain a Kansas certificate of title therefor during
25       the time such vehicle remains in such dealer's possession and at such
26       dealer's place of business for the purpose of sale. The purchaser or trans-
27       feree shall present the assigned title to the division of vehicles when
28       making application for a certificate of title as provided in subsection (c)(1).
29           (10) Motor vehicles may be held and titled in transfer-on-death form.
30           (11) The owner of any vehicle assigning a certificate of title in ac-
31       cordance with the provisions of this section may file with the division a
32       form indicating that such owner has assigned such certificate of title. Such
33       form shall be furnished by the division and shall contain such information
34       as the division may require. The filing of such form shall be prima facie
35       evidence that such certificate of title was assigned and shall create a re-
36       buttable presumption. If the assignee of a certificate of title fails to make
37       application for registration, an owner assigning such title and filing the
38       form provided by this paragraph shall not be held liable for damages
39       resulting from the operation of such vehicle.
40           Sec. 2. K.S.A. 1997 Supp. 8-135 is hereby repealed.
41           Sec. 3. This act shall take effect and be in force from and after its
42       publication in the statute book.
43      
44