SENATE BILL No. 97
AN ACT concerning motor vehicles; relating to certain nonhighway vehicles; requiring
vehicle dealers to obtain a dealer inventory-only title for any used all-terrain vehicle,
work-site utility vehicle, recreational off-highway vehicle or motorcycle that such
dealer obtains; amending K.S.A. 8-198 and repealing the existing section.
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 obtain a nonhighway certificate of
title or a salvage title, whichever is applicable, or a dealer inventory-
only title in the following manner:
(1) If the vehicle dealer, as defined in K.S.A. 8-2401, and
amendments thereto, obtains ownership of a used vehicle that is an all-
terrain vehicle, work-site utility vehicle, recreational off-highway
vehicle or motorcycle and such vehicle would qualify as a nonhighway
vehicle pursuant to K.S.A. 8-197, and amendments thereto, the vehicle
dealer shall make application to the county treasurer of such county for
a dealer inventory-only title. Each application for a dealer inventory-
only title shall be accompanied by a fee of $10 and either a bill of sale
or certificate of title with the application for the vehicle. All moneys
received under this paragraph shall be remitted as a certificate of title
in accordance with K.S.A. 8-145(b), and amendments thereto.
(1)(2) If the transferor is a vehicle dealer, as defined in K.S.A. 8-
2401, and amendments thereto, and a certificate of title has not been
issued for such vehicle under this section or under the provisions of
K.S.A. 8-135, and amendments thereto, such transferor shall make
application for and assign a nonhighway certificate of title or a salvage
title, whichever is applicable, to the purchaser of such nonhighway
vehicle or salvage vehicle in the same manner and under the same
conditions prescribed by K.S.A. 8-135, and amendments thereto, for
the application for and assignment of a certificate of title thereunder.
Upon the assignment thereof, the purchaser shall make application for a
new nonhighway certificate of title or a salvage title, as provided in
subsection (c) or (d).
(2)(3) 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 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
make application for a new nonhighway certificate of title or a salvage
title, whichever is applicable, as provided in subsection (c) or (d).
(3)(4) 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 SENATE BILL No. 97—page 2
shall make application to the division for a nonhighway certificate of
title or 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 make application for a new nonhighway certificate of title or 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) (b)(3) attached, shall 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 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 SENATE BILL No. 97—page 3
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.
(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) (b)(3) 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. SENATE BILL No. 97—page 4
(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 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 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 SENATE BILL No. 97—page 5
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
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. 8-198 is hereby repealed. SENATE BILL No. 97—page 6
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the
SENATE, and passed that body
_________________________
_________________________
President of the Senate.
_________________________
Secretary of the Senate.
Passed the HOUSE ________________________
_________________________
Speaker of the House.
_________________________
Chief Clerk of the House.
APPROVED ____________________________
_________________________
Governor.