Session of 2025
SENATE BILL No. 97
By Committee on Transportation
1-29
AN ACT concerning motor vehicles; relating to nonhighway vehicles;
granting purchasers of nonhighway vehicles the option to obtain a
nonhighway certificate of title; amending K.S.A. 8-198 and K.S.A.
2024 Supp. 8-2408 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 8-198 is hereby amended to read as follows: 8-198.
(a) A nonhighway or salvage vehicle shall not be required to be registered
in this state, as provided in K.S.A. 8-135, and amendments thereto, but
nothing in this section shall be construed as abrogating, limiting or
otherwise affecting the provisions of K.S.A. 8-142, and amendments
thereto, which make it unlawful for any person to operate or knowingly
permit the operation in this state of a vehicle required to be registered in
this state.
(b) Upon the sale or transfer of any nonhighway vehicle or salvage
vehicle, the purchaser thereof shall may obtain a nonhighway certificate of
title or and shall obtain a salvage title, whichever is applicable, in the
following manner:
(1) If the transferor is a vehicle dealer, as defined in K.S.A. 8-2401,
and amendments thereto, and a certificate of title has not been issued for
such vehicle under this section or under the provisions of K.S.A. 8-135,
and amendments thereto, such transferor shall may make application for
and assign a nonhighway certificate of title or a salvage title, whichever is
applicable, to the purchaser of such nonhighway vehicle or and shall make
application for and assign salvage vehicle in the same manner and under
the same conditions prescribed by K.S.A. 8-135, and amendments thereto,
for the application for and assignment of a certificate of title thereunder.
Upon the assignment thereof, the purchaser shall may make application for
a new nonhighway certificate of title or and shall make application for a
salvage title, as provided in subsection (c) or (d).
(2) Except as provided in K.S.A. 8-199(b), and amendments thereto,
if a certificate of title has been issued for any such vehicle under the
provisions of K.S.A. 8-135, and amendments thereto, the owner of such
nonhighway vehicle or salvage vehicle may surrender such certificate of
title to the division of vehicles and make application to the division for a
nonhighway certificate of title or salvage title, whichever is applicable, or
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the owner may obtain from the county treasurer's office a form prescribed
by the division of vehicles and, upon proper execution thereof, may assign
the nonhighway certificate of title, salvage title or the regular certificate of
title with such form attached to the purchaser of the nonhighway vehicle or
salvage vehicle. Upon receipt of the nonhighway certificate of title,
salvage title or the regular certificate of title with such form attached, the
purchaser shall may make application for a new nonhighway certificate of
title or and shall make application for a salvage title, whichever is
applicable, as provided in subsection (c) or (d).
(3) If the transferor is not a vehicle dealer, as defined in K.S.A. 8-
2401, and amendments thereto, and a certificate of title has not been issued
for the vehicle under this section or a certificate of title was not required
under K.S.A. 8-135, and amendments thereto, the transferor shall may
make application to the division for a nonhighway certificate of title or
and shall make application to the division for a salvage title, whichever is
applicable, as provided in this section, except that in addition thereto, the
division shall require a bill of sale or such transferor's affidavit, with at
least one other corroborating affidavit, that such transferor is the owner of
such nonhighway vehicle or salvage vehicle. If the division is satisfied that
the transferor is the owner, the division shall issue a nonhighway
certificate of title or salvage title, whichever is applicable, for such
vehicle, and the transferor shall assign the same to the purchaser, who shall
may make application for a new nonhighway certificate of title or and
shall make application for a salvage title, whichever is applicable, as
provided in subsection (c) or (d).
(c) Every purchaser of a nonhighway vehicle, whether assigned a
nonhighway certificate of title or a regular certificate of title with the form
specified in subsection (b)(2) attached, shall may make application to the
county treasurer of the county where such person resides for a new
nonhighway certificate of title in the same manner and under the same
conditions as for an application for a certificate of title under K.S.A. 8-
135, and amendments thereto. Such application shall be in the form
prescribed by the director of vehicles and shall contain substantially the
same provisions as required for an application under K.S.A. 8-135(c)(1),
and amendments thereto. In addition, such application shall provide a
place for the applicant to certify that the vehicle for which the application
for a nonhighway certificate of title is made is a nonhighway vehicle and
other provisions the director deems necessary. Each application for a
nonhighway certificate of title shall be accompanied by a fee of $10, and if
the application is not made to the county treasurer within the time
prescribed by K.S.A. 8-135, and amendments thereto, for making
application for a certificate of title thereunder, an additional fee of $2.
(d) (1) Except as otherwise provided by this section, the owner of a
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vehicle that meets the definition of a salvage vehicle shall apply for a
salvage title before the ownership of the motor vehicle or travel trailer is
transferred. In no event shall such application be made more than 60 days
after the vehicle is determined to be a salvage vehicle.
(2) Every insurance company that, pursuant to a damage settlement,
acquires ownership of a vehicle that has incurred damage requiring the
vehicle to be designated a salvage vehicle, shall apply for a salvage title
within 60 days after the title is assigned and delivered by the owner to the
insurance company, with all liens released. In the event that an insurance
company is unable to obtain voluntary assignment of the title after 30 days
from the date the vehicle owner enters into an oral or written damage
settlement agreement where the owner agrees to transfer the title, the
insurance company may submit an application on a form prescribed by the
division for a salvage title. The form shall be accompanied by an affidavit
from the insurance company stating that: (A) The insurance company is
unable to obtain a transfer of the title from the owner following an oral or
written acceptance of an offer of damage settlement; (B) there is evidence
of the damage settlement; (C) that there are no existing liens on the vehicle
or all liens on the vehicle have been released; (D) the insurance company
has physical possession of the vehicle; and (E) the insurance company has
provided the owner, at the owner's last known address, 30 days' prior
notice of such intent to transfer and the owner has not delivered a written
objection to the insurance company.
(3) Every insurance company that makes a damage settlement for a
vehicle that has incurred damage requiring such vehicle to be designated a
salvage vehicle, but does not acquire ownership of the vehicle, shall notify
the vehicle owner of the owner's obligation to apply for a salvage title for
the motor vehicle or travel trailer, and shall notify the division of this fact
in accordance with procedures established by the division. The vehicle
owner shall apply for a salvage title within 60 days after being notified by
the insurance company.
(4) The lessee of any vehicle that incurs damage requiring the vehicle
to be designated a salvage vehicle shall notify the lessor of this fact within
30 days of the determination that the vehicle is a salvage vehicle.
(5) The lessor of any motor vehicle or travel trailer that has incurred
damage requiring the vehicle to be titled as a salvage vehicle, shall apply
for a salvage title within 60 days after being notified of this fact by the
lessee.
(6) Every person acquiring ownership of a motor vehicle or travel
trailer that meets the definition of a salvage vehicle, for which a salvage
title has not been issued, shall apply for the required document prior to any
further transfer of such vehicle, but in no event, more than 60 days after
ownership is acquired.
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(7) Every purchaser of a salvage vehicle, whether assigned a salvage
title or a regular certificate of title with the form specified in subsection (b)
(2) attached, shall make application to the county treasurer of the county
where such person resides for a new salvage title, in the same manner and
under the same condition as for an application for a certificate of title
under K.S.A. 8-135, and amendments thereto. Such application shall be in
the form prescribed by the director of vehicles and shall contain
substantially the same provisions as required for an application under
K.S.A. 8-135(c)(1), and amendments thereto. In addition, such application
shall provide a place for the applicant to certify that the vehicle for which
the application for salvage title is made is a salvage vehicle, and other
provisions the director deems necessary. Each application for a salvage
title shall be accompanied by a fee of $10 and if the application is not
made to the county treasurer within the time prescribed by K.S.A. 8-135,
and amendments thereto, for making application for a certificate of title
thereunder, an additional fee of $2.
(8) Failure to apply for a salvage title as provided by this subsection
shall be a class C nonperson misdemeanor.
(e) A nonhighway certificate of title or salvage title shall be in form
and color as prescribed by the director of vehicles. A nonhighway
certificate of title or salvage title shall indicate clearly and distinctly on its
face that it is issued for a nonhighway vehicle or salvage vehicle,
whichever is applicable. A nonhighway certificate of title or salvage title
shall contain substantially the same information as required on a certificate
of title issued under K.S.A. 8-135, and amendments thereto, and other
information the director deems necessary.
(f) (1) A nonhighway certificate of title or salvage title may be
transferred in the same manner and under the same conditions as
prescribed by K.S.A. 8-135, and amendments thereto, for the transfer of a
certificate of title, except as otherwise provided in this section. A
nonhighway certificate of title or salvage title may be assigned and
transferred only while the vehicle remains a nonhighway vehicle or
salvage vehicle.
(2) Upon transfer or sale of a nonhighway vehicle in a condition that
will allow the registration of such vehicle, the owner shall may assign the
nonhighway certificate of title to the purchaser, and the purchaser shall
may obtain a certificate of title and register such vehicle as provided in
K.S.A. 8-135, and amendments thereto. No regular certificate of title shall
be issued for a vehicle for which there has been issued a nonhighway
certificate of title until there has been compliance with K.S.A. 8-116a, and
amendments thereto.
(3) (A) Upon transfer or sale of a salvage vehicle that has been rebuilt
or restored or is otherwise in a condition that will allow the registration of
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such vehicle, the owner shall assign the salvage title to the purchaser, and
the purchaser shall obtain a rebuilt salvage title and register such vehicle
as provided in K.S.A. 8-135, and amendments thereto. No rebuilt salvage
title shall be issued for a vehicle for which there has been issued a salvage
title until there has been compliance with K.S.A. 8-116a, and amendments
thereto, and the notice required in subsection (f)(3)(B) has been attached to
such vehicle.
(B) As part of the inspection for a rebuilt salvage title conducted
under K.S.A. 8-116a, and amendments thereto, the Kansas highway patrol
shall attach a notice affixed to the left door frame of the rebuilt salvage
vehicle indicating the vehicle identification number of such vehicle and
that such vehicle is a rebuilt salvage vehicle. In addition to any fee allowed
under K.S.A. 8-116a, and amendments thereto, a fee of $5 shall be
collected from the owner of such vehicle requesting the inspection for the
notice required under this paragraph. All moneys received under this
paragraph shall be remitted in accordance with K.S.A. 8-116a(e), and
amendments thereto.
(C) Failure to apply for a rebuilt salvage title as provided by this
paragraph shall be a class C nonperson misdemeanor.
(g) The owner of a salvage vehicle that has been issued a salvage title
and has been assembled, reconstructed, reconstituted or restored or
otherwise placed in an operable condition may make application to the
county treasurer for a permit to operate such vehicle on the highways of
this state over the most direct route from the place such salvage vehicle is
located to a specified location named on the permit and to return to the
original location. No such permit shall be issued for any vehicle unless the
owner has motor vehicle liability insurance coverage or an approved self-
insurance plan under K.S.A. 40-3104, and amendments thereto. Such
permit shall be on a form furnished by the director of vehicles and shall
state the date the vehicle is to be taken to the other location, the name of
the insurer, as defined in K.S.A. 40-3103, and amendments thereto, and the
policy number or a statement that the vehicle is included in a self-
insurance plan approved by the commissioner of insurance, a statement
attesting to the correctness of the information concerning financial
security, the vehicle identification number and a description of the vehicle.
Such permit shall be signed by the owner of the vehicle. The permit shall
be carried in the vehicle for which it is issued and shall be displayed so
that it is visible from the rear of the vehicle. The fee for such permit shall
be $1 and shall be retained by the county treasurer.
(h) A nonhighway vehicle or salvage vehicle for which a nonhighway
certificate of title or salvage title has been issued pursuant to this section
shall not be deemed a motor vehicle for the purposes of K.S.A. 40-3101
through 40-3121, and amendments thereto, except when such vehicle is
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being operated pursuant to subsection (g). Any person who knowingly
makes a false statement concerning financial security in obtaining a permit
pursuant to subsection (g), or who fails to obtain a permit when required
by law to do so is guilty of a class C misdemeanor.
(i) Any person who, on July 1, 1996, is the owner of an all-terrain
vehicle, as defined in K.S.A. 8-126, and amendments thereto, shall not be
required to file an application for a nonhighway certificate of title under
the provisions of this section for such all-terrain vehicle, unless the person
transfers an interest in such all-terrain vehicle.
(j) Any person who, on July 1, 2006, is the owner of a work-site
utility vehicle, as defined in K.S.A. 8-126, and amendments thereto, shall
not be required to file an application for a nonhighway certificate of title
under the provisions of this section for such work-site utility vehicle,
unless the person transfers an interest in such work-site utility vehicle.
(k) (1) A salvage vehicle pool, or a salvage vehicle dealer, as both are
defined and licensed to operate in this state pursuant to K.S.A. 8-2401 et
seq., and amendments thereto, may apply for an ownership document with
the division of vehicles without forwarding the certificate of title to the
division for a vehicle that is the subject of an insurance claim when:
(A) At the request of an insurance company, the salvage vehicle pool
or salvage vehicle dealer obtains possession of the vehicle;
(B) the insurance claim for the vehicle has been closed without
payment or denied by the insurance company; and
(C) the vehicle has remained unclaimed at the salvage vehicle pool's
or salvage vehicle dealer's facility for more than 30 days.
(2) An application made pursuant to this subsection shall provide
sufficient evidence that at least two written notices were delivered by
certified mail to the address provided by the division of vehicles'
ownership verification, or through another courier service that provides
proof of delivery, to the owner of the vehicle and any lienholder of the
vehicle identified in the division of vehicles' records requesting that the
vehicle be removed from the salvage vehicle pool's or salvage vehicle
dealer's facility. A salvage vehicle dealer shall also provide sufficient
evidence to the division of the request by the insurance company to obtain
possession of the vehicle. Such written notice shall specify that the owner
of the vehicle and any lienholder of the vehicle identified in the division of
vehicles' records has at least 30 days from the receipt of the notice to
remove the vehicle. If the salvage vehicle pool or salvage vehicle dealer
does not receive proof of delivery for the notices, the salvage vehicle pool
or salvage vehicle dealer shall cause notice of the application for an
ownership document to be published in a newspaper of general circulation
in the county where the vehicle is located.
(3) If the most recent ownership document for the vehicle was not
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issued by this state, the application shall also include evidence of an
inspection of the vehicle completed pursuant to K.S.A. 8-116a, and
amendments thereto. The application shall also indicate whether a salvage
title or a nonrepairable vehicle certificate shall be issued for the vehicle.
(4) Upon receipt of the application and all information required by
this subsection, the division shall issue to the salvage vehicle pool or
salvage vehicle dealer a salvage title or a nonrepairable vehicle certificate
free and clear of all liens, security interests and encumbrances.
Sec. 2. K.S.A. 2024 Supp. 8-2408 is hereby amended to read as
follows: 8-2408. Except as hereinafter provided, every person licensed as a
dealer under provisions of this act shall:
(a) On or before the
25
th
day of each month, file a monthly report, on
a form prescribed and furnished by the division of vehicles, listing all sales
or transfers, except sales or transfers by a first or second stage
manufacturer to a vehicle dealer of new or used vehicles, including the
name and address of the purchaser or transferee, date of sale, the serial or
identification number of the vehicle, and such other information as the
division may require.
(b) Salvage vehicle dealers, vehicle crusher, vehicle recycler,
rebuilder, scrap metal recycler and salvage vehicle pool shall, in addition
to their monthly sales report for used vehicles, if applicable, on or before
the 25
th
day of each month file a monthly report on a form prescribed and
furnished by the division, listing all vehicles for which the major
component part containing the vehicle identification number or engine
number if manufactured prior to 1981, has been disposed of or sold. The
certificate of title or transfer certificate for all vehicles listed must
accompany the monthly report.
(c) Make available during regular business hours to any employee of
the division or any member of law enforcement for the purpose of
investigation or inspection,:
(1) All records concerning vehicles purchased, sold or exchanged
during the preceding 12 months, including; and
(2) certificates of title on all vehicles owned by the dealership, except
those titles:
(A) Surrendered pursuant to subsection (b); or
(B) for nonhighway vehicles, unless the dealership elects to obtain
the title for such vehicles.
(d) Whenever a dealer sells or otherwise disposes of such dealer's
business, or for any reason suspends or goes out of business as a dealer,
such dealer shall notify the division and return the dealer's license and
dealer plates, and the division upon receipt of such notice and plates shall
cancel the dealer's license, except that such dealer may, upon payment of
50% of the annual fee to the division, have the license and dealer plates
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assigned to the purchaser of the business.
(e) In addition to the requirements of subsection (a), any dealer
paying a commission or fee to a broker shall report to the division, on the
monthly sales report, the name of the broker and the broker's license
number.
(f) Dealers, licensed as brokers must in addition to the requirements
of subsection (a) include on the monthly sales reports, the name of the
seller, the transferor or dealer that owns the vehicle and whether the seller
or the purchaser paid the broker's fee or commission.
(g) Lending agencies licensed under this act, which sell two or less
repossessed vehicles a month, shall not be required to file the monthly
reports under subsection (a), except that such lending agencies shall report
annually, on a form prescribed and furnished by the division, the total
number of sales or transfers of such vehicles.
Sec. 3. K.S.A. 8-198 and K.S.A. 2024 Supp. 8-2408 are hereby
repealed.
Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.
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