Session of 1999
         
SENATE BILL No. 209
         
By Committee on Ways and Means
          
2-2
          
  9             AN  ACT relating to certificates of title; concerning fees; relating to the
10             VIPS/CAMA technology hardware fund; amending K.S.A. 1998 Supp.
11             8-135, 8-135a, 8-139, 8-145, 8-170, 8-171, 8-198 and 74-2013 and re-
12             pealing the existing sections.
13      
14       Be it enacted by the Legislature of the State of Kansas:
15             Section  1. K.S.A. 1998 Supp. 8-135 is hereby amended to read as
16       follows: 8-135. (a) Upon the transfer of ownership of any vehicle regis-
17       tered under this act, the registration of the vehicle and the right to use
18       any license plate thereon shall expire and thereafter there shall be no
19       transfer of any registration, and the license plate shall be removed by the
20       owner thereof. Except as provided in K.S.A. 8-172, and amendments
21       thereto, and K.S.A. 1998 Supp. 8-1,147, and amendments thereto, it shall
22       be unlawful for any person, other than the person to whom the license
23       plate was originally issued, to have possession thereof. When the own-
24       ership of a registered vehicle is transferred, the original owner of the
25       license plate may register another vehicle under the same number, upon
26       application and payment of a fee of $1.50, if such other vehicle does not
27       require a higher license fee. If a higher license fee is required, then the
28       transfer may be made upon the payment of the transfer fee of $1.50 and
29       the difference between the fee originally paid and that due for the new
30       vehicle.
31             (b) Subject to the provisions of subsection (a) of K.S.A. 8-198, and
32       amendments thereto, upon the transfer or sale of any vehicle by any
33       person or dealer, or upon any transfer in accordance with K.S.A. 1998
34       Supp. 59-3511, and amendments thereto, the new owner thereof, within
35       30 days, inclusive of weekends and holidays, from date of such transfer
36       shall make application to the division for registration or reregistration of
37       the vehicle, but no person shall operate the vehicle on any highway in
38       this state during the thirty-day period without having applied for and
39       obtained temporary registration from the county treasurer or from a
40       dealer. After the expiration of the thirty-day period, it shall be unlawful
41       for the owner or any other person to operate such vehicle upon the high-
42       ways of this state unless the vehicle has been registered as provided in
43       this act. For failure to make application for registration as provided in

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

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

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  1       chaser at the time of delivery of the vehicle or at a time agreed upon by
  2       the parties, not to exceed 30 days, inclusive of weekends and holidays.
  3       The agreement of the parties shall be executed on a form approved by
  4       the division. In the event delivery of title cannot be made personally, the
  5       seller may deliver the manufacturer's statement of origin by restricted
  6       mail to the address of purchaser shown on the purchase agreement. The
  7       manufacturer's statement of origin may include an attachment containing
  8       assignment of such statement of origin on forms approved by the division.
  9       Upon the presentation to the division of a manufacturer's statement of
10       origin, by a manufacturer or dealer for a new vehicle, sold in this state, a
11       certificate of title shall be issued if there is also an application for regis-
12       tration, except that no application for registration shall be required for a
13       travel trailer used for living quarters and not operated on the highways.
14             (4) The fee for each original certificate of title shall be $7 until July
15       1, 1999, and $3.50 thereafter $4.50, in addition to the fee for registration
16       of such vehicle, trailer or semitrailer. The certificate of title shall be good
17       for the life of the vehicle, trailer or semitrailer while owned or held by
18       the original holder of the certificate of title.
19             (5) Upon sale and delivery to the purchaser of every vehicle subject
20       to a purchase money security interest as defined in K.S.A. 84-9-107, and
21       amendments thereto, the dealer or secured party may complete a notice
22       of security interest and when so completed, the purchaser shall execute
23       the notice, in a form prescribed by the division, describing the vehicle
24       and showing the name and address of the secured party and of the debtor
25       and other information the division requires. The dealer or secured party,
26       within 15 days of the sale and delivery, may mail or deliver the notice of
27       security interest, together with a fee of $2.50, to the division. The notice
28       of security interest shall be retained by the division until it receives an
29       application for a certificate of title to the vehicle and a certificate of title
30       is issued. The certificate of title shall indicate any security interest in the
31       vehicle. Upon issuance of the certificate of title, the division shall mail or
32       deliver confirmation of the receipt of the notice of security interest, the
33       date the certificate of title is issued and the security interest indicated, to
34       the secured party at the address shown on the notice of security interest.
35       The proper completion and timely mailing or delivery of a notice of se-
36       curity interest by a dealer or secured party shall perfect a security interest
37       in the vehicle described on the date of such mailing or delivery. The
38       county treasurers shall mail a copy of the title application to the Kansas
39       lienholder. Each county treasurer shall charge the Kansas lienholder a
40       $1.50 service fee for processing and mailing a copy of the title application
41       to the Kansas lienholder.
42             (6) It shall be unlawful for any person to operate in this state a vehicle
43       required to be registered under this act, or to transfer the title to any

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  1       such vehicle to any person or dealer, unless a certificate of title has been
  2       issued as herein provided. In the event of a sale or transfer of ownership
  3       of a vehicle for which a certificate of title has been issued, which certif-
  4       icate of title is in the possession of the transferor at the time of delivery
  5       of the vehicle, the holder of such certificate of title shall endorse on the
  6       same an assignment thereof, with warranty of title in a form prescribed
  7       by the division and printed thereon and the transferor shall deliver the
  8       same to the buyer at the time of delivery to the buyer of the vehicle or
  9       at a time agreed upon by the parties, not to exceed 30 days, inclusive of
10       weekends and holidays, after the time of delivery. The agreement of the
11       parties shall be executed on a form provided by the division. The require-
12       ments of this paragraph concerning delivery of an assigned title are sat-
13       isfied if the transferor mails to the transferee by restricted mail the as-
14       signed certificate of title within the 30 days, and if the transferor is a
15       dealer, as defined by K.S.A. 8-2401, and amendments thereto, such trans-
16       feror shall be deemed to have possession of the certificate of title if the
17       transferor has made application therefor to the division. The buyer shall
18       then present such assigned certificate of title to the division at the time
19       of making application for registration of such vehicle. A new certificate
20       of title shall be issued to the buyer, upon payment of the fee of $7 until
21       July 1, 1999, and $3.50 thereafter $4.50. If such vehicle is sold to a resi-
22       dent of another state or country, the dealer or person making the sale
23       shall notify the division of the sale and the division shall make notation
24       thereof in the records of the division. When a person acquires a security
25       agreement on a vehicle subsequent to the issuance of the original title on
26       such vehicle, such person shall require the holder of the certificate of
27       title to surrender the same and sign an application for a mortgage title in
28       form prescribed by the division. Upon such surrender such person shall
29       immediately deliver the certificate of title, application, and a fee of $7
30       until July 1, 1999, and $3.50 thereafter, $4.50 to the division. Upon receipt
31       thereof, the division shall issue a new certificate of title showing the liens
32       or encumbrances so created, but not more than two liens or encum-
33       brances may be shown upon a title. When a prior lienholder's name is
34       removed from the title, there must be satisfactory evidence presented to
35       the division that the lien or encumbrance has been paid. When the in-
36       debtedness to a lienholder, whose name is shown upon a title, is paid in
37       full, such lienholder within 10 days after written demand by restricted
38       mail, shall furnish to the holder of the title a release of lien or execute
39       such a release in the space provided on the title. For failure to comply
40       with such a demand the lienholder shall be liable to the holder of the
41       title for $100 and also shall be liable for any loss caused to the holder by
42       such failure. When the indebtedness to a lienholder, whose name is
43       shown upon a title, is collected in full, such lienholder, within 30 days,

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  1       shall furnish notice to the holder of title that such indebtedness has been
  2       paid in full and that such title may be presented to the lienholder at any
  3       time for release of lien.
  4             (7) It shall be unlawful for any person to buy or sell in this state any
  5       vehicle required to be registered, unless, at the time of delivery thereof
  6       or at a time agreed upon by the parties, not to exceed 30 days, inclusive
  7       of weekends and holidays, after the time of delivery, there shall pass
  8       between the parties a certificate of title with an assignment thereof. The
  9       sale of a vehicle required to be registered under the laws of this state,
10       without assignment of the certificate of title, is fraudulent and void, unless
11       the parties shall agree that the certificate of title with assignment thereof
12       shall pass between them at a time other than the time of delivery, but
13       within 30 days thereof. The requirements of this paragraph concerning
14       delivery of an assigned title shall be satisfied if (i) the seller mails to the
15       purchaser by restricted mail the assigned certificate of title within 30 days,
16       or (ii) if the transferor is a dealer, as defined by K.S.A. 8-2401, and amend-
17       ments thereto, such seller shall be deemed to have possession of the
18       certificate of title if such seller has made application therefor to the di-
19       vision, or (iii) if the transferor is a dealer and has assigned a title pursuant
20       to paragraph (9) of this subsection (c).
21             (8) In cases of sales under the order of a court of a vehicle required
22       to be registered under this act, the officer conducting such sale shall issue
23       to the purchaser a certificate naming the purchaser and reciting the facts
24       of the sale, which certificate shall be prima facie evidence of the own-
25       ership of such purchaser for the purpose of obtaining a certificate of title
26       to such motor vehicle and for registering the same. Any such purchaser
27       shall be allowed 30 days, inclusive of weekends and holidays, from the
28       date of sale to make application to the division for a certificate of title
29       and for the registering of such motor vehicle.
30             (9) Any dealer who has acquired a vehicle, the title for which was
31       issued under the laws of and in a state other than the state of Kansas,
32       shall not be required to obtain a Kansas certificate of title therefor during
33       the time such vehicle remains in such dealer's possession and at such
34       dealer's place of business for the purpose of sale. The purchaser or trans-
35       feree shall present the assigned title to the division of vehicles when
36       making application for a certificate of title as provided in subsection (c)(1).
37             (10) Motor vehicles may be held and titled in transfer-on-death form.
38             (11) Notwithstanding the provisions of this act with respect to time
39       requirements for delivery of a certificate of title, or manufacturer's state-
40       ment of origin, as applicable, any person who chooses to reaffirm the sale
41       in writing on a form approved by the division which advises them of their
42       rights pursuant to paragraph (7) of subsection (c) and who has received
43       and accepted assignment of the certificate of title or manufacturer's state-

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  1       ment of origin for the vehicle in issue may not thereafter void or set aside
  2       the transaction with respect to the vehicle for the reason that a certificate
  3       of title or manufacturer's statement of origin was not timely delivered,
  4       and in such instances the sale of a vehicle shall not be deemed to be
  5       fraudulent and void for that reason alone.
  6             Sec.  2. K.S.A. 1998 Supp. 8-135a is hereby amended to read as fol-
  7       lows: 8-135a. A person in whose name a vehicle is titled and registered
  8       may add their spouse's name by assigning the title from the titleholder
  9       to titleholder and spouse and by applying for a name change title and
10       registration. A son or daughter in whose name a vehicle is titled and
11       registered may add a parent's name by assigning the title from such son
12       or daughter to such son or daughter and parent and by applying for a
13       name change title and registration. A parent may add a son or daughter's
14       name by assigning the title from such parent to such parent and parent's
15       son or daughter and by applying for a name change title and registration.
16       Application for name change title and registration shall be made in the
17       manner required by law, including certification of insurance coverage.
18       The fee shall be $7 until July 1, 1999, and $3.50 thereafter $4.50, for the
19       title, and no charge shall be made for the registration, except, when ap-
20       plicable, the fee for transfer of registration under K.S.A. 8-135, and
21       amendments thereto.
22             Sec.  3. K.S.A. 1998 Supp. 8-139 is hereby amended to read as fol-
23       lows: 8-139. In the event that any license plate, certificate of title, regis-
24       tration decal or registration receipt issued hereunder, shall be lost, mu-
25       tilated, or shall have become illegible, the person who is entitled thereto
26       shall make immediate application for and obtain a duplicate or substitute
27       therefor, upon furnishing information of such fact satisfactory to the di-
28       vision and upon payment of the required fees: Namely, certificate of title,
29       $7 until July 1, 1999, and $3.50 thereafter $4.50, registration receipt, $.50,
30       registration decal, $.50, license plates, $2. In case the license plate is of
31       such type or constructed in such a way that it is not reasonably possible
32       to remove it from the vehicle to which it is attached without destroying
33       or mutilating such license plate, and the ownership of such vehicle shall
34       be transferred and the license plate shall be mutilated or destroyed by
35       the owner thereof as a result of the owner's effort to comply with the
36       provisions of K.S.A. 8-135, and amendments thereto, by removing the
37       same from the vehicle so transferred, then and in such case no fee shall
38       be charged for such duplicate or substitute license plate, including any
39       registration decal affixed thereto, but the same shall be furnished free of
40       charge providing such person shall otherwise in all respects have complied
41       with the laws governing the transfer of ownership of such motor vehicle.
42             Sec.  4. K.S.A. 1998 Supp. 8-145 is hereby amended to read as fol-
43       lows: 8-145. (a) All registration and certificates of title fees shall be paid

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  1       to the county treasurer of the county in which the applicant for registra-
  2       tion resides or has an office or principal place of business within this state,
  3       and the county treasurer shall issue a receipt in triplicate, on blanks fur-
  4       nished by the division of vehicles, one copy of which shall be filed in the
  5       county treasurer's office, one copy shall be delivered to the applicant and
  6       the original copy shall be forwarded to the director of vehicles.
  7             (b) The county treasurer shall deposit $.75 of each license applica-
  8       tion, $.75 out of each application for transfer of license plate and $2 out
  9       of each application for a certificate of title, collected by such treasurer
10       under this act, in a special fund, which fund is hereby appropriated for
11       the use of the county treasurer in paying for necessary help and expenses
12       incidental to the administration of duties in accordance with the provi-
13       sions of this law and extra compensation to the county treasurer for the
14       services performed in administering the provisions of this act, which com-
15       pensation shall be in addition to any other compensation provided by any
16       other law, except that the county treasurer shall receive as additional
17       compensation for administering the motor vehicle title and registration
18       laws and fees, a sum computed as follows: The county treasurer, during
19       the month of December, shall determine the amount to be retained for
20       extra compensation not to exceed the following amounts each year for
21       calendar year 1990 or any calendar year thereafter: The sum of $60 per
22       hundred registrations for the first 5,000 registrations; the sum of $45 per
23       hundred registrations for the next 5,000 registrations; and the sum of $2
24       per hundred registrations for all registrations thereafter. In no event,
25       however, shall any county treasurer be entitled to receive more than
26       $9,800 additional annual compensation.
27             If more than one person shall hold the office of county treasurer during
28       any one calendar year, such compensation shall be prorated among such
29       persons in proportion to the number of weeks served. The total amount
30       of compensation paid the treasurer together with the amounts expended
31       in paying for other necessary help and expenses incidental to the admin-
32       istration of the duties of the county treasurer in accordance with the
33       provisions of this act, shall not exceed the amount deposited in such spe-
34       cial fund. Any balance remaining in such fund at the close of any calendar
35       year shall be withdrawn and credited to the general fund of the county
36       prior to June 1 of the following calendar year.
37             (c) The county treasurer shall remit the remainder of all such fees
38       collected, together with the original copy of all applications, to the sec-
39       retary of revenue. Except as provided in subsection (d), all such fees
40       remitted to the secretary of revenue shall be deposited with the state
41       treasurer and credited to the state highway fund.
42             (d)  (1) On July 1, 1997, through June 30, 1999, $2.50 of each certif-
43       icate of title fee collected and remitted to the secretary of revenue, shall

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  1       be deposited with the state treasurer and credited to the Kansas highway
  2       patrol motor vehicle fund, and, $1 One dollar of each certificate of title
  3       fee collected and remitted to the secretary of revenue, shall be deposited
  4       with the state treasurer and credited to the VIPS/CAMA technology hard-
  5       ware fund.
  6             (2) For repossessed vehicles, $3 of each certificate of title fee col-
  7       lected and remitted to the secretary of revenue, shall be deposited with
  8       the state treasurer and credited to the repossessed certificates of title fee
  9       fund.
10             Sec.  5. K.S.A. 1998 Supp. 8-170 is hereby amended to read as fol-
11       lows: 8-170. (a) Upon the transfer of ownership of any vehicle registered
12       under the foregoing provisions of this act, its registration and right to use
13       the license plates thereon shall expire and thereafter there shall be no
14       transfer of any registration, and the license plates shall be removed by
15       the owner thereof and it shall be unlawful for any person other than the
16       person to whom such license plates were originally issued to have the
17       same in possession. In case of a transfer of ownership of a registered
18       vehicle the original owner of the license plates may register another an-
19       tique vehicle under the same license plate designation, upon application
20       therefor and the payment of a fee of $1.50. On and after January 1, 2000,
21       any model year license plate transferred shall comply with the provisions
22       of subsection (c) of K.S.A. 8-172, and amendments thereto.
23             (b) Upon the transfer and sale of a registered vehicle by any person,
24       the new owner thereof, before using a vehicle on the highways of this
25       state, shall make application to the division for registration of the vehicle.
26             (c) Certificate of title:
27             (1) Application for certificate of title on an antique vehicle shall be
28       made by the owner or the owner's agent upon a blank form to be fur-
29       nished by the division and shall contain such information as the division
30       shall determine necessary. The division may waive any information re-
31       quested on the form if it is not available. The application together with a
32       bill of sale for the antique vehicle shall be accepted as prima facie evi-
33       dence that the applicant is the owner of the vehicle. The certificate of
34       title shall be delivered to the applicant. The certificate shall contain the
35       words "antique vehicle."
36             (2) The certificate of title shall contain upon the reverse side a form
37       for assignment of title to be executed by the owner before a notary public
38       or some other officer authorized to administer an oath. A certificate of
39       title may be issued under the provisions of this act without an application
40       for registration.
41             (3) The fee for each original certificate of title so issued shall be $7
42       until July 1, 1999, and $3.50 thereafter $4.50. The certificate of title shall
43       be good for the life of the antique vehicle, so long as the same is owned

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  1       or held by the original holder of the certificate of title, and shall not have
  2       to be renewed. In the event of a sale or transfer of ownership of an antique
  3       vehicle for which a certificate of title has been issued, the holder of such
  4       certificate of title shall endorse on the same an assignment thereof, with
  5       warranty of title in form printed thereon, as prescribed by the director,
  6       and the transferor must deliver the same to the buyer at the time of
  7       delivery of the vehicle. The buyer shall then present such certificate of
  8       title, assigned as aforesaid, to the director or an authorized agent of the
  9       director, whereupon a new certificate of title shall be issued to the buyer,
10       the fee therefor being $7 until July 1, 1999, and $3.50 thereafter $4.50.
11             Sec.  6. K.S.A. 1998 Supp. 8-171 is hereby amended to read as fol-
12       lows: 8-171. In the event that any license plate, certificate of title or
13       registration receipt issued hereunder, shall be lost, mutilated, or shall
14       have become illegible, the person who is entitled thereto shall make im-
15       mediate application for and obtain a duplicate therefor, upon furnishing
16       information of such fact satisfactory to the division and upon payment of
17       the required fees: Namely, certificate of title, $7 until July 1, 1999, and
18       $3.50 thereafter $4.50, registration receipt, $1, license plates, $2.
19             Sec.  7. K.S.A. 1998 Supp. 8-198 is hereby amended to read as fol-
20       lows: 8-198. (a) A nonhighway vehicle shall not be required to be regis-
21       tered in this state, as provided in K.S.A. 8-135, and amendments thereto,
22       but nothing in this section shall be construed as abrogating, limiting or
23       otherwise affecting the provisions of K.S.A. 8-142, and amendments
24       thereto, which make it unlawful for any person to operate or knowingly
25       permit the operation in this state of a vehicle required to be registered
26       in this state.
27             (b) Upon the sale or transfer of any nonhighway vehicle, the pur-
28       chaser thereof shall obtain a nonhighway certificate of title in the follow-
29       ing manner:
30             (1) If the transferor is a vehicle dealer, as defined in K.S.A. 8-2401,
31       and amendments thereto, and a certificate of title has not been issued for
32       such vehicle under this section or under the provisions of K.S.A. 8-135,
33       and amendments thereto, such transferor shall make application for and
34       assign a nonhighway certificate of title to the purchaser of such nonhigh-
35       way vehicle in the same manner and under the same conditions pre-
36       scribed by K.S.A. 8-135, and amendments thereto, for the application for
37       and assignment of a certificate of title thereunder. Upon the assignment
38       thereof, the purchaser shall make application for a new nonhighway cer-
39       tificate of title, as provided in subsection (c).
40             (2) Except as provided in subsection (b) of K.S.A. 8-199, and amend-
41       ments thereto, if a certificate of title has been issued for any such vehicle
42       under the provisions of K.S.A. 8-135, and amendments thereto, the owner
43       of such nonhighway vehicle may surrender such certificate of title to the

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  1       division of vehicles and make application to the division for a nonhighway
  2       certificate of title, or the owner may obtain from the county treasurer's
  3       office a form prescribed by the division of vehicles and, upon proper
  4       execution thereof, may assign the nonhighway certificate of title or the
  5       regular certificate of title with such form attached to the purchaser of the
  6       nonhighway vehicle. Upon receipt of the nonhighway certificate of title
  7       or the regular certificate of title with such form attached, the purchaser
  8       shall make application for a new nonhighway certificate of title as pro-
  9       vided in subsection (c).
10             (3) If the transferor is not a vehicle dealer, as defined in K.S.A. 8-
11       2401, and amendments thereto, and a certificate of title has not been
12       issued for the vehicle under this section or a certificate of title was not
13       required under K.S.A. 8-135, and amendments thereto, the transferor
14       shall make application to the division for a nonhighway certificate of title
15       as provided in this section, except that in addition thereto, the division
16       shall require a bill of sale or such transferor's affidavit, with at least one
17       other corroborating affidavit, that such transferor is the owner of such
18       nonhighway vehicle. If the division is satisfied that the transferor is the
19       owner, the division shall issue a nonhighway certificate of title for such
20       vehicle, and the transferor shall assign the same to the purchaser, who
21       shall make application for a new nonhighway certificate of title, as pro-
22       vided in subsection (c).
23             (c) Every purchaser of a nonhighway vehicle, whether assigned a non-
24       highway certificate of title or a regular certificate of title with the form
25       specified in paragraph (2) of subsection (b) attached, shall make appli-
26       cation to the county treasurer of the county in which such person resides
27       for a new nonhighway certificate of title in the same manner and under
28       the same conditions as for an application for a certificate of title under
29       K.S.A. 8-135, and amendments thereto. Such application shall be in the
30       form prescribed by the director of vehicles and shall contain substantially
31       the same provisions as required for an application under subsection (c)(1)
32       of K.S.A. 8-135, and amendments thereto. In addition, such application
33       shall provide a place for the applicant to certify that the vehicle for which
34       the application for a nonhighway certificate of title is made is a nonhigh-
35       way vehicle, and other provisions the director deems necessary. Each
36       application for a nonhighway certificate of title shall be accompanied by
37       a fee of $7 until July 1, 1999, and $3.50 thereafter $4.50, and if the
38       application is not made to the county treasurer within the time prescribed
39       by K.S.A. 8-135, and amendments thereto, for making application for a
40       certificate of title thereunder, an additional fee of $2.
41             (d) A nonhighway certificate of title shall be in form and color as
42       prescribed by the director of vehicles. A nonhighway certificate of title
43       shall indicate clearly and distinctly on its face that it is issued for a non-

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  1       highway vehicle. A nonhighway certificate of title shall contain substan-
  2       tially the same information as required on a certificate of title issued
  3       under K.S.A. 8-135, and amendments thereto, and other information the
  4       director deems necessary.
  5             (e) A nonhighway certificate of title may be transferred in the same
  6       manner and under the same conditions as prescribed by K.S.A. 8-135,
  7       and amendments thereto, for the transfer of a certificate of title, except
  8       as otherwise provided in this section. A nonhighway certificate of title
  9       may be assigned and transferred only while the vehicle remains a non-
10       highway vehicle. Upon transfer or sale of a nonhighway vehicle which has
11       been rebuilt or restored or is otherwise in a condition which will allow
12       the registration of such vehicle, the owner shall assign the nonhighway
13       certificate of title to the purchaser, and the purchaser shall obtain a cer-
14       tificate of title and register such vehicle as provided in K.S.A. 8-135, and
15       amendments thereto. No regular certificate of title shall be issued for a
16       vehicle for which there has been issued a nonhighway certificate of title
17       until there has been compliance with K.S.A. 8-116a, and amendments
18       thereto.
19             (f) The owner of a vehicle which has been assembled, reconstructed,
20       reconstituted or restored or otherwise placed in an operable condition
21       may make application to the county treasurer for a permit to operate such
22       vehicle on the highways of this state over the most direct route from the
23       place such nonhighway vehicle is located to a specified location named
24       on the permit and to return to the original location. No such permit shall
25       be issued for any vehicle unless the owner has motor vehicle liability
26       insurance coverage or an approved self-insurance plan under K.S.A. 40-
27       3104, and amendments thereto. Such permit shall be on a form furnished
28       by the director of vehicles and shall state the date the vehicle is to be
29       taken to the other location, the name of the insurer, as defined in K.S.A.
30       40-3103, and amendments thereto, and the policy number or a statement
31       that the vehicle is included in a self-insurance plan approved by the com-
32       missioner of insurance, a statement attesting to the correctness of the
33       information concerning financial security, the vehicle identification num-
34       ber and a description of the vehicle. Such permit shall be signed by the
35       owner of the vehicle. Permits issued under this subsection (f) shall be
36       prepared in triplicate. One copy shall be carried in the vehicle for which
37       it is issued and shall be displayed so that it is visible from the rear of the
38       vehicle. The second copy shall be retained by the county treasurer, and
39       the third copy shall be forwarded by the county treasurer to the division
40       of vehicles. The fee for such permit shall be $1 which shall be retained
41       by the county treasurer, who shall annually forward 25% of all such fees
42       collected to the division of vehicles to reimburse the division for admin-
43       istrative expenses, and shall deposit the remainder in a special fund for

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  1       expenses of issuing such permits.
  2             (g) A nonhighway vehicle for which a nonhighway certificate of title
  3       has been issued pursuant to this section shall not be deemed a motor
  4       vehicle for the purposes of K.S.A. 40-3101 to 40-3121, inclusive, and
  5       amendments thereto, except when such vehicle is being operated pur-
  6       suant to subsection (f). Any person who knowingly makes a false state-
  7       ment concerning financial security in obtaining a permit pursuant to sub-
  8       section (f), or who fails to obtain a permit when required by law to do so
  9       is guilty of a class C misdemeanor.
10             (h) Any person who, on July 1, 1996, is the owner of an all-terrain
11       vehicle, as defined in K.S.A. 8-126, and amendments thereto, shall not
12       be required to file an application for a nonhighway certificate of title
13       under the provisions of this section for such all-terrain vehicle, unless the
14       person transfers an interest in such all-terrain vehicle.
15             Sec.  8. K.S.A. 1998 Supp. 74-2013 is hereby amended to read as
16       follows: 74-2013. Upon application signed by the owner or the owner's
17       agent and payment of a fee of $7 until July 1, 1999, and $3.50 thereafter,
18       $4.50 and surrender of the original title together with satisfactory evi-
19       dence that the lien has been paid, the department is hereby authorized
20       to grant a reissue of a certificate of title showing the vehicle to be clear
21       of any lien. 
22       Sec.  9. K.S.A. 1998 Supp. 8-135, 8-135a, 8-139, 8-145, 8-170, 8-171,
23       8-198 and 74-2013 are hereby repealed.
24        Sec.  10. This act shall take effect and be in force from and after its
25       publication in the statute book.