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AN ACT relating to the Transportation Cabinet titling and registration system. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 186A IS CREATED TO 3
READ AS FOLLOWS: 4
(1) Upon receipt of a completed application for a motor vehicle title, the cabinet shall 5
refrain from issuing a certificate of title in paper form and shall instead create 6
only the electronic record of the title to be retained by the cabinet in AVIS with a 7
notation that no certificate of title has been printed on paper. 8
(2) The owner of a motor vehicle shall be considered to have obtained, and the 9
cabinet shall be considered to have issued, a certificate of title when a title record 10
has been created electronically as provided in this section. 11
(3) An owner listed on a title record created under this section may, at any time, 12
make application for a physical copy of the title using the procedures in this 13
chapter, and the cabinet shall provide a paper certificate of title for the vehicle. A 14
fee shall not be charged for the first paper copy of a title requested for a vehicle 15
for which the title is stored electronically under this section. 16
Section 2. KRS 186A.035 is amended to read as follows: 17
(1) (a) Except for vehicles described in paragraph (b) of this subsection, all motor 18
vehicles, including motorcycles, with a gross vehicular weight of ten thousand 19
(10,000) pounds or less, first registered, or for which the registration is 20
renewed, shall be placed in a system of year-round registration based upon the 21
birth date of the owner, in order to distribute the work of registering motor 22
vehicles as uniformly as practicable throughout the twelve (12) months of the 23
year. 24
(b) Owners of the following motor vehicles may elect to register these vehicles on 25
an annual registration schedule of April 1 to March 31: 26
1. Farm vehicles registered under KRS 186.050(4); or 27 UNOFFICIAL COPY 25 RS BR 1164
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2. Motor vehicles with a gross vehicular weight of ten thousand (10,000) 1
pounds or less that are owned by a business. 2
(2) (a) If the owner of a motor vehicle is other than an individual, the month in which 3
the owning entity came into being shall be used for purposes of this section. 4
(b) Except for motor vehicles jointly owned by spouses under paragraph (c) of 5
this subsection, if a motor vehicle is jointly owned: 6
1. One (1) of the owners, who is a resident of Kentucky, shall be identified 7
as the designated owner; 8
2. The designated owner shall indicate to the county clerk his or her birth 9
date to be used for purposes of this section; and 10
3. If the circumstances of ownership change and the designated owner is 11
no longer an owner of the motor vehicle or no longer a resident of 12
Kentucky, another owner may title the motor vehicle in his or her name 13
if that owner is a resident of Kentucky. If none of the remaining owners 14
are a resident of Kentucky, one (1) of the owners shall title the vehicle 15
in that owner's state of residence. 16
(c) If a motor vehicle is jointly owned by a married couple, the ownership shall 17
exist as a joint tenancy with right of survivorship, unless the registration 18
expressly states to the contrary and gives an alternative specific status. One 19
(1) of the owners shall indicate to the county clerk his or her birth date to be 20
used for purposes of this section. Upon the death of one (1) of the spouses, the 21
jointly-owned vehicle shall transfer to the surviving spouse free from payment 22
of any state-required transfer fees. The surviving spouse shall include a copy 23
of the death certificate with the application for a new title. 24
(d) A certificate of title: 25
1. May bear the connector "AND" to designate joint ownership. If the 26
"AND" connector is used, the signatures of all owners shall be 27 UNOFFICIAL COPY 25 RS BR 1164
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required to transfer the certificate of title; 1
2. May bear the connector "OR" to designate joint ownership. If the 2
"OR" connector is used, the signature of only one (1) owner shall be 3
required to transfer the certificate of title; and 4
3. Shall not bear the connector "AND/OR" to designate joint ownership. 5
If a title produced prior to the effective date of this Act bears the 6
connector "AND/OR," the cabinet and the county clerk shall follow 7
the procedures in subparagraph 1. of this paragraph in transferring 8
the certificate of title, unless directed otherwise by a court. 9
(3) The certificate of registration and license plate issued for a motor vehicle first 10
registered, renewed, or titled in this state shall be valid until the expiration date on 11
the registration receipt, unless revoked in accordance with KRS 186A.040 or 12
canceled by the cabinet in accordance with KRS Chapter 186 or this chapter. Any 13
transaction relating to registration or registration renewal which would cause an 14
unexpired Kentucky motor vehicle license plate to be surrendered shall have that 15
unexpired fee prorated or credited against any additional fee required by a 16
subsequent registration. 17
(4) Except for vehicles registered under subsection (1)(b) of this section, KRS 186.041, 18
186.042, and 186.162 that have a specified, universal expiration date, after a motor 19
vehicle has been initially placed in the system of year-round registration, the owner 20
shall renew the registration annually during the owner's birth month, either by 21
making application to the county clerk or on the cabinet's website, and paying the 22
fee required for twelve (12) consecutive months of registration, which shall take 23
effect on the first day of the month succeeding the owner's birth month and shall 24
expire on the last day of the owner's next birth month. The county clerk shall collect 25
the fees set forth in KRS 186.040(1) and (6) for each renewal. 26
(5) At least forty-five (45) days prior to the expiration of the registration of any motor 27 UNOFFICIAL COPY 25 RS BR 1164
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vehicle previously registered in the Commonwealth as provided by subsection (1) 1
of this section, the owner of the vehicle shall be notified by mail or email on the 2
same notice required by KRS 134.805(5) of the date of expiration. Nonreceipt of 3
the notice required by this subsection shall not constitute a defense to any 4
registration-related offense. 5
(6) Any owner who fails to renew the registration of a motor vehicle during the month 6
in which the previous registration expired shall, if he or she applies for renewal of 7
the registration in some later month, pay the same fees that would have been 8
required if the registration had been renewed in the month which the previous 9
registration expired, and, if applicable, the reinstatement fee for a cancelled 10
registration required under KRS 186.040. 11
(7) Fees which must be prorated in carrying out the intent of this section shall be 12
prorated on the basis of twelfths of the annual registration fee. Any vehicle which is 13
registered at any time during a month shall pay the fee required for that whole 14
month plus any additional months of registration purchased consistent with the 15
intent of the section. 16
(8) The county clerk shall ensure that the certificate of registration issued to an owner 17
displays the month and year in which the registration period begins and the month 18
and year of its expiration, and shall issue to the owner a decal or decals 19
corresponding to the month and year of expiration shown in the certificate of 20
registration which shall be placed upon the corresponding license plate by the 21
owner in the manner required by administrative regulations of the Department of 22
Vehicle Regulation. 23
Section 3. KRS 186A.115 is amended to read as follows: 24
(1) (a) Except as otherwise provided in this section, the owner of every vehicle 25
brought into this state and required to be titled in this state shall, before 26
submitting his or her application for title to the county clerk, have the vehicle 27 UNOFFICIAL COPY 25 RS BR 1164
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together with his or her application for title and its supporting documents 1
inspected by a certified inspector in the county in which the application for 2
title is to be submitted to the county clerk. 3
(b) An owner of a military surplus vehicle seeking title in this state shall, before 4
submitting his or her application for title to the county clerk, have the vehicle 5
together with his or her application for title and its supporting documents 6
inspected by a certified inspector in the county in which the application for 7
title is to be submitted to the county clerk. 8
(2) For inspections under this section: 9
(a) The certified inspector shall be certified through the Department of Vehicle 10
Regulation following requirements set forth by the department by regulation 11
and shall be designated by the county sheriff if the inspector is a current 12
member of his or her office or a special inspector appointed pursuant to KRS 13
70.030. The certified inspector will be held responsible for all certifications 14
required pursuant to this chapter and will be liable for any and all penalties 15
prescribed in this chapter, and shall be available during regular office hours at 16
any and all offices and branches that issue applications for titles; 17
(b) There shall be a fee for this certification, payable to the sheriff's office, and 18
the fee shall be retained by the sheriff's office for official expenses of the 19
office upon completion of certification, in the amount of: 20
1. Thirty dollars ($30) for a motor vehicle dealer that qualifies to have an 21
employee appointed as a special inspector under paragraph (d) of this 22
subsection; 23
2. Fifteen dollars ($15) for a motor vehicle dealer that does not qualify to 24
have an employee appointed as a special inspector under paragraph (d) 25
of this subsection; or 26
3. Fifteen dollars ($15) for an individual person; 27 UNOFFICIAL COPY 25 RS BR 1164
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(c) There shall be an additional fee of twenty dollars ($20) per trip when it 1
becomes necessary for the certified inspector to travel to the site of the vehicle 2
rather than bringing the vehicle to the sheriff's inspection area; 3
(d) A sheriff may appoint up to two (2) employees of a motor vehicle dealer that 4
is licensed under KRS Chapter 190 and doing business in the sheriff's county 5
as special inspectors if the motor vehicle dealer is: 6
1. A new motor vehicle dealer; or 7
2. A used motor vehicle dealer that has sold an average of one hundred 8
(100) or more motor vehicles per month in the preceding twelve (12) 9
months; 10
(e) A special inspector appointed under paragraph (d) of this subsection is only 11
authorized to perform motor vehicle inspections and complete certified 12
inspection forms under this section for vehicles purchased by that dealership 13
for resale and shall have his or her special inspector status revoked if he or she 14
is no longer an active employee of that dealership; and 15
(f) An inspection conducted in one (1) county within the Commonwealth of 16
Kentucky under this subsection, and the fees paid for that inspection under 17
this subsection, shall be honored by the certified inspector, sheriff, and county 18
clerk in all other counties within this state. A second inspection shall not be 19
required and additional fees shall not be required. 20
(3) The Transportation Cabinet may require that modifications be made to a military 21
surplus vehicle. Any modifications required by the cabinet under this section shall 22
be made to the military surplus vehicle prior to its inspection. 23
(4) The Transportation Cabinet shall promulgate administrative regulations pursuant to 24
KRS Chapter 13A to implement the provisions of subsections (1)(b) and (3) of this 25
section, including but not limited to vehicle modification requirements and the 26
creation of a separate electronic inspection form. The Transportation Cabinet shall 27 UNOFFICIAL COPY 25 RS BR 1164
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note that military vehicles were originally manufactured under the federally 1
mandated requirements set forth in 49 C.F.R. sec. 571.7 and shall only require these 2
vehicles to meet applicable federal motor vehicle safety standards. 3
(5) The following vehicles are excluded from the requirement of inspection by a 4
certified inspector prior to titling in this state: 5
(a) New motor vehicles sold by a dealer licensed in this state; 6
(b) Vehicles required to be registered in this state by reason of lack of a 7
reciprocity agreement with another state and for which a nonnegotiable 8
registration document is to be issued; 9
(c) Motor vehicles operated by a motor carrier under a nonnegotiable certificate 10
or permit issued by the Department of Vehicle Regulation; 11
(d) Motor vehicles owned by servicemen or servicewomen who are residents of 12
Kentucky stationed outside of Kentucky may be inspected by the post provost 13
or similar officer of the camp, post, or station. The post provost or similar 14
officer shall submit an affidavit stating the name of the owner, the 15
identification or serial number, the make, body style, current license or title 16
number, if any, and state in which currently registered or titled, if any, of the 17
motor vehicle; 18
(e) Motor vehicles purchased in another state by persons who are residents of 19
Kentucky but are temporarily residing out of state for at least thirty (30) days, 20
but not longer than nine (9) months, may after the purchase of the vehicle be 21
inspected by the state police, a local law enforcement agency, or the vehicle 22
inspection program of another state. If an inspector in another state examines 23
a vehicle under this paragraph, the purchaser may request the inspector to 24
complete an affidavit stating the name of the owner, the vehicle identification 25
number, the vehicle make and body style, the current state of registration, if 26
any, and the current vehicle license or title number, if any. The Transportation 27 UNOFFICIAL COPY 25 RS BR 1164
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Cabinet shall create an affidavit form containing at a minimum this 1
information and shall post the form on the cabinet's internet website. A person 2
using an inspector in another state under this paragraph shall comply with all 3
requirements of that state's inspection program, including payment of fees 4
charged in that state. A person registering a motor vehicle for the first time in 5
Kentucky under this paragraph shall transmit the application for registration, 6
all supporting documentation, and payment for registration and usage tax to 7
the county clerk of the county in which the person resides, and upon receipt of 8
the appropriate documentation, the county clerk shall register the vehicle; and 9
(f) Motor vehicles no longer located in Kentucky but which require inspection in 10
order to issue a corrected Kentucky title due to error in vehicle identification 11
or serial number may be inspected by an inspector authorized to inspect 12
vehicle identification or serial number by the laws of the state or foreign 13
country where application for a new title has been submitted. 14
(6) When presented to a certified inspector for inspection and to a county clerk for 15
processing, the owner's application for a first certificate of registration or title in his 16
or her name shall be accompanied by a current operator's license from Kentucky or 17
another state and one (1) of the following documents as applicable: 18
(a) If the vehicle is a new vehicle not previously registered in this state, the 19
properly assigned manufacturer's statement of origin for the vehicle for which 20
registration or title is sought; 21
(b) If the vehicle was last registered in this state, and is a vehicle for which a title 22
is not required in this state, a certificate of registration, or if the vehicle is one 23
for which a certificate of title is required in this state, a properly assigned 24
certificate of title; 25
(c) If the vehicle was last previously titled in another state, a properly assigned 26
certificate of title; 27 UNOFFICIAL COPY 25 RS BR 1164
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(d) If the application refers to a vehicle previously registered in another country, 1
the documents of that country establishing ownership of the vehicle; 2
(e) If the application refers to a vehicle last previously registered in another 3
country by a person on active duty in the Armed Forces of the United States, 4
the county clerk may accept on behalf of the Department of Vehicle 5
Regulation evidence of ownership provided the applicant by the United States 6
Department of Defense; and 7
(f) Except as provided in KRS 186A.072(2)(c) governing custom-built 8
motorcycles, if the application relates to a vehicle which has been specially 9
constructed or reconstructed, that fact shall be stated in the application, and 10
the application shall be accompanied by the documents specified by 11
administrative regulations of the Department of Vehicle Regulation. 12
(7) When requested to inspect a vehicle pursuant to this section, the certified inspector 13
shall personally and physically inspect the vehicle, when registration or title is 14
sought in this state, on the following points: 15
(a) He or she shall compare the vehicle identification number as appearing on 16
both the vehicle identification number plate, and the federal safety standards 17
label of the vehicle which is sought to be registered or titled, with the 18
corresponding number inscribed on the application, and its supporting 19
documentation, and ensure that the vehicle identification number appearing at 20
each described location appears legitimate and that they are consistent with 21
each other; 22
(b) He or she shall examine the primary odometer of the vehicle and 23
electronically record the reading in the space provided in the inspection 24
section of the application; 25
(c) After exercising due diligence in inspecting the vehicle and its supporting 26
documentation, and finding that they appear to be in order, the certified 27 UNOFFICIAL COPY 25 RS BR 1164
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inspector shall execute the electronic certificate of inspection according to its 1
terms by electronically inputting in the spaces provided his or her first name, 2
middle initial, and last name, certified inspector number, his or her title; the 3
name of the county in which he or she serves; and the telephone number 4
including the telephone area code of his or her agency, and enter the month, 5
day, and year in which his or her inspection was made, certifying under 6
penalty of forgery in the second degree the character, accuracy, and date of 7
his or her inspection; and 8
(d) A certified inspector number shall not be subject to an open records request 9
under KRS 61.870 to 61.884 unless otherwise required by a court order. 10
(8) The certified inspector shall refrain from executing the certificate of inspection if: 11
(a) He or she has not personally and physically inspected the vehicle in 12
accordance with this section; 13
(b) He or she has reason to believe that the vehicle displays an unlawfully altered 14
vehicle identification number; 15
(c) The application and any of its copies are illegible or otherwise improperly 16
executed, or contain information reasonably believed to be inaccurate or 17
fraudulent; 18
(d) The documentation required in support of any application is not present, or 19
not consistent with the vehicle and the owner's application or appears 20
fraudulent; or 21
(e) He or she has probable cause to believe the vehicle is stolen. 22
(9) (a) Inspections on motor vehicles that meet the definition of a "historic vehicle" 23
under KRS 186.043(2) and are brought into this state shall be limited to 24
verification of the vehicle identification number with supporting 25
documentation for purposes of titling. 26
(b) Inspections on motor vehicles that meet the definition of a classic motor 27 UNOFFICIAL COPY 25 RS BR 1164
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vehicle project as set forth in KRS 186A.510 shall be limited to verification of 1
the vehicle identification number with supporting documentation for purposes 2
of issuing a classic motor vehicle project certificate of title under KRS 3
186A.535(1). 4
(10) The electronic certificate of inspection shall not be handled by any person or 5
persons other than those designated individuals within the offices of the sheriff, 6
county clerk, or other state office. 7
(11) The Transportation Cabinet shall promulgate administrative regulations pursuant to 8
KRS Chapter 13A to implement the provisions of this section, including but not 9
limited to special inspectors classified as dealer inspectors only and the creation of 10
an electronic certified vehicle inspection form and receipt. 11
Section 4. KRS 186A.190 is amended to read as follows: 12
(1) Except as provided in subsection (6) of this section and in KRS 355.9-311(4), the 13
perfection of a security interest in any property for which has been issued a 14
Kentucky certificate of title shall be by notation on the certificate of title which 15
shall be deemed to have occurred when the provisions of subsection (3) of this 16
section have been complied with. Discharge of a security interest shall be by 17
notation on the certificate of title. Notation shall be made by the entry of 18
information required by subsection (9) of this section into the Automated Vehicle 19
Information System. The notation of the security interest on the certificate of title 20
shall be in accordance with this chapter and shall remain effective from the date on 21
which the security interest is noted on the certificate of title for a period of ten (10) 22
years, or, in the case of a manufactured home, for a period of thirty (30) years, or 23
until discharged under this chapter and KRS Chapter 186. The filing of a 24
continuation statement within the six (6) months preceding the expiration of the 25
initial period of a notation's effectiveness extends the expiration date for five (5) 26
additional years, commencing on the day the notation would have expired in the 27 UNOFFICIAL COPY 25 RS BR 1164
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absence of the filing. Succeeding continuation statements may be filed in the same 1
manner to continue the effectiveness of the initial notation. 2
(2) A motor vehicle dealer, a secured party or its representative, an assignee of a retail 3
installment contract lender, the cabinet, or a county clerk shall rely on a county of 4
residence designated by the debtor on any approved, notarized state form utilized in 5
lien titling or the title transfer process signed by the debtor. Reliance on the 6
foregoing by the motor vehicle dealer, secured parties, cabinet, and county clerk 7
shall relieve those persons from liability to any third party claiming failure to 8
comply with this section. 9
(3) Except as provided in subsection (6) of this section, the notation of security 10
interests relating to property required to be titled under this chapter in Kentucky 11
through the cabinet shall be done in the office of a county clerk. The notation of a 12
security interest shall reflect the county in which the debtor resides as determined 13
by subsections (2) and (4) of this section. The security interest shall be deemed to 14
be noted on the certificate of title and perfected, or deemed perfected at the time the 15
security interest attaches as provided in KRS 355.9-203, if in compliance with KRS 16
186A.195 (8)[(7)], when a title lien statement: 17
(a) Is received by the county clerk, together with the required fees; 18
(b) Describes the titled vehicle, or vehicle to be titled, by year, model, make, and 19
vehicle identification number; 20
(c) Provides the name of the secured party, or a representative of the secured 21
party, together with the additional information about the secured party 22
required by subsection (9) of this section with reasonable particularity; and 23
(d) Includes the date and time-stamped entry of the notation of the security 24
interest by the county clerk of the required information in the Automated 25
Vehicle Information System (AVIS), or its successor title processing system 26
maintained by the Division of Motor Vehicle Licensing of the Transportation 27 UNOFFICIAL COPY 25 RS BR 1164
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Cabinet. 1
(4) Except as provided in subsection (6) of this section, if the debtor is other than a 2
natural person, the following provisions govern the determination of the county of 3
the debtor's residence: 4
(a) A partnership shall be deemed a resident of the county in which its principal 5
place of business in this state is located. If the debtor does not have a place of 6
business in this state, then the debtor shall be deemed a nonresident for 7
purposes of filing in this state; 8
(b) A limited partnership organized under KRS Chapter 362 or as defined in KRS 9
362.2-102(14) shall be deemed a resident of the county in which its principal 10
place of business is located, as set forth in its certificate of limited partnership 11
or most recent amendment thereto filed pursuant to KRS Chapter 362 or 12
362.2-202. If the office is not located in this state, the debtor shall be deemed 13
a nonresident for purposes of filing in this state; 14
(c) A limited partnership not organized under the laws of this state and authorized 15
to do business in this state shall be deemed a resident of the county in which 16
the office of its process agent is located, as set forth in the designation or most 17
recent amendment thereto filed with the Secretary of State of the 18
Commonwealth of Kentucky; 19
(d) A corporation organized under KRS Chapter 271B, 273, or 274 or a limited 20
liability company organized under KRS Chapter 275 shall be deemed a 21
resident of the county in which its registered office is located, as set forth in 22
its most recent corporate filing with the Secretary of State which officially 23
designates its current registered office; 24
(e) A corporation not organized under the laws of this state, but authorized to 25
transact or do business in this state under KRS Chapter 271B, 273, or 274, or 26
a limited liability company not organized under the laws of this state, but 27 UNOFFICIAL COPY 25 RS BR 1164
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authorized to transact business in this state under KRS Chapter 275, shall be 1
deemed a resident of the county in which its registered office is located, as set 2
forth in its most recent filing with the Secretary of State which officially 3
designates its current registered office; 4
(f) A cooperative corporation or association organized under KRS Chapter 272 5
shall be deemed a resident of the county in which its principal business is 6
transacted, as set forth in its articles of incorporation or most recent 7
amendment thereto filed with the Secretary of State of the Commonwealth of 8
Kentucky; 9
(g) A cooperative corporation organized under KRS Chapter 279 shall be deemed 10
a resident of the county in which its principal office is located, as set forth in 11
its articles of incorporation or most recent amendment thereto filed with the 12
Secretary of State of the Commonwealth of Kentucky; 13
(h) A business trust organized under KRS Chapter 386 shall be deemed a resident 14
of the county in which its principal place of business is located, as evidenced 15
by the recordation of its declaration of trust in that county pursuant to KRS 16
Chapter 386; 17
(i) A credit union organized under Subtitle 6 of KRS Chapter 286 shall be 18
deemed a resident of the county in which its principal place of business is 19
located, as set forth in its articles of incorporation or most recent amendment 20
thereto filed with the Secretary of State of the Commonwealth of Kentucky; 21
and 22
(j) Any other organization defined in KRS 355.1-201 shall be deemed a resident 23
of the county in which its principal place of business in this state is located, 24
except that any limited liability company, limited liability partnership, limited 25
partnership, or corporation not organized under the laws of this state and not 26
authorized to transact or do business in this state shall be deemed a 27 UNOFFICIAL COPY 25 RS BR 1164
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nonresident for purposes of filing in this state. If the organization does not 1
have a place of business in this state, then it shall be deemed a nonresident for 2
purposes of filing in this state. 3
If the debtor does not reside in the Commonwealth, the notation of the security 4
interest shall be done in the office of the county clerk in which the property is 5
principally situated or operated. Notwithstanding the existence of any filed 6
financing statement under the provisions of KRS Chapter 355 relating to any 7
property registered or titled in Kentucky, the sole means of perfecting and 8
discharging a security interest in property for which a certificate of title is required 9
by this chapter is by notation on the property's certificate of title under the 10
provisions of this chapter or in accordance with the provisions of KRS 186.045(3). 11
In other respects the security interest is governed by the provisions of KRS Chapter 12
355. 13
(5) Except as provided in subsection (6) of this section, before ownership of property 14
subject to a lien evidenced by notation on the certificate of title may be transferred, 15
the transferor shall obtain the release of the prior liens in his or her name against the 16
property being transferred. Once a security interest has been noted on the owner's 17
title, a subsequent title shall not be issued by any county clerk free of the notation 18
unless it has been noted in the system of record established under KRS 186A.195 19
that the security interest has been discharged. If this requirement is met, information 20
relating to any security interest shown on the title as having been discharged may be 21
omitted from the title to be issued by the clerk. If information relating to the 22
discharge of a security interest is presented to a clerk under the provisions of KRS 23
186.045(3), the clerk shall discharge the security interest and remove the lien 24
information from AVIS. 25
(6) Notwithstanding subsections (1) to (5) of this section, a county clerk shall, 26
following inspection of the vehicle by the sheriff, to determine that the vehicle has 27 UNOFFICIAL COPY 25 RS BR 1164
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not been stolen, issue a new ownership document to a vehicle, clear of all prior 1
liens, to a person after he or she provides to the county clerk an affidavit devised by 2
the Transportation Cabinet and completed by the person. The ownership document 3
presented as a result of this affidavit shall be in accordance with subsection (7) of 4
this section. In the affidavit, the affiant shall attest that: 5
(a) The affiant or the agent of the affiant possesses the vehicle; 6
(b) Before he or she provided the notices required by paragraphs (c) and (d) of 7
this subsection: 8
1. A debt on the vehicle has been owed him or her for more than thirty (30) 9
days; 10
2. Within thirty (30) days of payment of damages by an insurance 11
company and receipt by the current owner of the motor vehicle or 12
lienholder of damages pursuant to a claim settlement which required 13
transfer of the vehicle to the insurance company, the insurance company 14
has been unable to obtain: 15
a. A properly endorsed certificate of title on the vehicle from the 16
current owner; and 17
b. If applicable, any lien satisfactions; or 18
3. a. The vehicle was voluntarily towed or transported pursuant to a 19
request of the current owner or an insurance company that a motor 20
vehicle dealer, licensed as a used motor vehicle dealer and motor 21
vehicle auction dealer, take possession of and store the motor 22
vehicle in the regular course of business; and 23
b. Within forty-five (45) days of taking possession of the motor 24
vehicle, the motor vehicle dealer has not been paid storage fees by 25
the current owner or lienholder and has not been provided both a 26
properly endorsed certificate of title and if applicable, any lien 27 UNOFFICIAL COPY 25 RS BR 1164
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satisfactions; 1
(c) More than thirty (30) days before presenting the affidavit to the county clerk, 2
the affiant attempted to notify the owner of the vehicle and all known 3
lienholders, including those noted on the title, by certified mail, return receipt 4
requested, or by a nationally recognized courier service, of his or her name, 5
address, and telephone number as well as his or her intention to obtain a new 6
title or salvage title, as applicable, clear of all prior liens, unless the owner or 7
a lienholder objects in writing; 8
(d) More than fourteen (14) days before presenting the affidavit to the county 9
clerk, the affiant had published a legal notice stating his or her intention to 10
obtain title to the vehicle. The legal notice appeared at least twice in a seven 11
(7) day period in a newspaper with circulation in the county. The legal notice 12
stated: 13
1. The affiant's name, address, and telephone number; 14
2. The owner's name; 15
3. The names of all known lienholders, including those noted on the title; 16
4. The vehicle's make, model, and year; and 17
5. The affiant's intention to obtain title to the vehicle unless the owner or a 18
lienholder objects in writing within fourteen (14) days after the last 19
publication of the legal notice; and 20
(e) Neither the owner nor a lienholder has objected in writing to the affiant's right 21
to obtain title to the vehicle. 22
(7) (a) If subsection (6)(b)1. of this section applies, the new ownership document 23
shall be a title. 24
(b) If subsection (6)(b)2. or 3. of this section applies, the new ownership 25
document shall be a salvage title if the vehicle meets the requirements for a 26
salvage title as stated in KRS 186A.520(1)(a). 27 UNOFFICIAL COPY 25 RS BR 1164
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(c) If subsection (6)(b)2. or 3. of this section applies and the vehicle does not 1
meet the requirements for a salvage title as stated in KRS 186A.520(1)(a), the 2
new ownership document shall be a title. 3
(8) No more than two (2) active security interests may be noted upon a certificate of 4
title. 5
(9) In noting a security interest upon a certificate of title, the county clerk shall ensure 6
that the certificate of title bears the lienholder's name, mailing address and zip code, 7
the date the lien was noted, the notation number, and the county in which the 8
security interest was noted. The clerk shall obtain the information required by this 9
subsection for notation upon the certificate of title from the title lien statement 10
described in KRS 186A.195. 11
(10) For all the costs incurred in the notation and discharge of a security interest on the 12
certificate of title, the county clerk shall receive the fee prescribed by KRS 64.012. 13
The fee prescribed by this subsection shall be paid at the time of submittal of the 14
title lien statement described in KRS 186A.195. 15
(11) A copy of the application, certified by the county clerk, indicating the lien will be 16
noted on the certificate of title shall be forwarded to the lienholder. 17
(12) (a) Any lien or security interest under this chapter may be electronically 18
transmitted to the cabinet through the electronic title application and 19
registration system. 20
(b) Notwithstanding the provisions of this section and KRS 186A.074 and 21
186A.015 that require a lien on a motor vehicle to be noted on the face of 22
the title, if there are one (1) or more liens on a motor vehicle, the cabinet 23
may electronically transmit the lien to the first lienholder and notify the first 24
lienholder of any additional liens. 25
(c) Subsequent lien satisfactions may be electronically transmitted to the 26
cabinet and shall include the name and address of the person satisfying the 27 UNOFFICIAL COPY 25 RS BR 1164
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lien. Any documents electronically transmitted under this subsection 1
bearing an electronic signature, as defined in KRS 369.102, shall be 2
accepted in accordance with KRS 369.107 and shall not require 3
notarization. 4
(d) When the electronic transmission of liens and lien satisfactions are used, a 5
certificate of title shall not be issued until the last lien is satisfied and a 6
clear certificate of title is issued to the owner of the vehicle. 7
(e) When a vehicle is subject to a lien filed electronically: 8
1. The certificate of title shall be considered to be physically held by the 9
lienholder for purposes of compliance with state and federal odometer 10
disclosure requirements; and 11
2. A printed paper title is not required. 12
(f) A duly certified copy of the cabinet's electronic record of the lien shall be 13
admissible in any civil, criminal, or administrative proceedings in this state 14
as evidence of the existence of the lien. 15
(13) If a security interest expires without being renewed, the cabinet shall remove the 16
lien from the certificate of title in the AVIS system. 17
Section 5. KRS 186A.195 is amended to read as follows: 18
(1) As used in this section, submission of a title lien statement refers to the presentation 19
of a title lien statement, along with the fees required under KRS 64.012(1)(b), to the 20
cabinet through any county clerk's office in the Commonwealth. 21
(2) A title lien statement bearing an electronic signature, as defined in KRS 369.102, 22
shall be accepted in accordance with KRS 369.107 and shall not require 23
notarization. 24
(3) Upon submission of a title lien statement, the county clerk shall use the information 25
on the form to note the security interest on the certificate of title in accordance with 26
KRS 186A.190(9). Title lien statements may be made available to the general 27 UNOFFICIAL COPY 25 RS BR 1164
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public. However, public availability of a title lien statement shall not be considered 1
necessary or effective to perfect a security interest in property required to be 2
registered or titled in accordance with this chapter. 3
(4)[(3)] (a) If the submission of a title lien statement accompanies the application 4
for first title of any property in the name of an owner, the county clerk shall 5
enter the information required by KRS 186A.190(9) into the system of record 6
so as to allow the cabinet to: 7
1. Use the system of record as a centralized, statewide repository for lien 8
filings; and 9
2. Produce a certificate of title bearing the information designated by KRS 10
186A.190(9), as well as any other information required by the cabinet. 11
(b) After the information has been entered, the county clerk shall produce a 12
certificate of registration, if required. 13
(5)[(4)] (a) If the form prescribed by KRS 186A.060 indicates a pending lien, but 14
the title lien statement does not accompany the application for title, the county 15
clerk shall enter into the system of record the name and address of the 16
lienholder or that a lien is pending. The county clerk shall indicate a title shall 17
not be issued until either the title lien statement and the required fees are 18
submitted, or in thirty (30) days, whichever occurs first. The county clerk 19
shall then issue the registration. 20
(b) After submission of the title lien statement, the county clerk shall enter the 21
date of lien notation and the notation number into the system of record, 22
enabling the cabinet to record the lien in the system of record and produce a 23
title. 24
(6)[(5)] If a certificate of title is issued after the thirty (30) day time window identified 25
in subsection (5)[(4)] of this section has expired without the notation of a security 26
interest, or if a title has been issued because there was no provision made for a lien 27 UNOFFICIAL COPY 25 RS BR 1164
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to be noted within thirty (30) days, a secured party wishing to note a security 1
interest on a title shall submit a title lien statement. The county clerk shall enter the 2
information required by KRS 186A.190(9) into the system of record and a new 3
certificate of title reflecting the security interest shall be produced. 4
(7)[(6)] The fee for the filing of a title lien statement through the electronic title 5
application and registration system shall be transferred electronically to the county 6
clerk of the county in which the debtor resides. 7
(8)[(7)] The security interest noted on the certificate of title shall be deemed perfected 8
at the time the security interest attaches in accordance with KRS 355.9-203 if the 9
secured party submits a properly completed title lien statement with application for 10
first title or, in the case of property previously titled in the name of the debtor, 11
within thirty (30) days of attachment. Otherwise, the security interest shall be 12
deemed perfected at the time that the title lien statement is submitted. 13
Section 6. KRS 186A.145 is amended to read as follows: 14
(1) Except as provided in subsections (2) and (3) of this section, a county clerk shall 15
not process an application for Kentucky title and registration from or to any 16
Kentucky resident who has a delinquent motor vehicle ad valorem property tax 17
account. 18
(2) This section shall not apply to transactions involving: 19
(a) Licensed Kentucky motor vehicle dealers; 20
(b) A person who is engaged in the business of storing or towing motor vehicles, 21
applying for a new title under KRS 376.275(1)(c); 22
(c) Individuals when the delinquent motor vehicle ad valorem property taxes 23
are owed by a previous owner who is not a party to the transaction; or 24
(d)[(c)] A secured party applying for a repossession title under KRS 186.045(6). 25
(3) (a) For any vehicle obtained as the result of a claim on a motor vehicle insurance 26
policy, an insurer and its agent shall not be responsible for the payment of any 27 UNOFFICIAL COPY 25 RS BR 1164
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delinquent motor vehicle ad valorem property taxes owed by any previous 1
owner, when: 2
1. Applying for a regular or salvage title; or 3
2. Transferring ownership of the vehicle to another party. 4
(b) The owner of a motor vehicle that was transferred to an insurer or its agent 5
under paragraph (a) of this subsection shall remain responsible for any 6
delinquent motor vehicle ad valorem property taxes owed prior to the transfer. 7
(4) An insurer shall not be exempt from any motor vehicle ad valorem property taxes 8
owed on any vehicle that it owns: 9
(a) As a part of its business operations; or 10
(b) On January 1, that was obtained as the result of a claim on a motor vehicle 11
insurance policy. 12
Section 7. KRS 186A.100 is amended to read as follows: 13
(1) A motor vehicle dealer licensed under KRS 186.070 who sells a vehicle for use 14
upon the highways of this state or another state shall equip the vehicle with a 15
temporary tag executed in the manner prescribed below, which shall be valid for 16
sixty (60) days from the date the vehicle is delivered to the purchaser. The cost of 17
the tag shall be two dollars ($2), of which the clerk shall retain one dollar ($1). A 18
motor vehicle dealer licensed under KRS 186.070 shall apply to the county clerk of 19
the county in which the dealer maintains his principal place of business for issuance 20
of temporary tags. Application shall be made for such tags on forms supplied to the 21
county clerk by the Transportation Cabinet. 22
(2) The county clerk of any county who receives a proper application for issuance of 23
temporary tags shall record the number of each tag issued upon the application of 24
the dealer for temporary[such] tags, or if a group of consecutively numbered 25
temporary tags are issued to a dealer in connection with a single application, record 26
the beginning and ending numbers of the group on the application. 27 UNOFFICIAL COPY 25 RS BR 1164
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(3) The clerk shall retain, for a period of two (2) years, one (1) copy of the dealer's 1
temporary tag application, and ensure that it reflects the numbers appearing on the 2
tags issued with respect to the[such] application. These copies may be kept by the 3
county clerk in an electronic format. 4
(4) If the owner of a motor vehicle submits to the county clerk a properly completed 5
application for Kentucky certificate of title and registration pursuant to KRS 6
186A.120, any motor vehicle required to be registered and titled in Kentucky, that 7
is not currently registered and titled in Kentucky, may be equipped with a 8
temporary tag, which shall be valid for sixty (60) days from the date of issuance, 9
issued by the county clerk for the purpose of operating the vehicle in Kentucky 10
while assembling the necessary documents in order to title and register the vehicle 11
in Kentucky. The Transportation Cabinet may promulgate[establish] administrative 12
regulations governing this section. 13
(5) The county clerk may issue a temporary tag to the owner of a motor vehicle that is 14
currently registered and titled in Kentucky. A temporary tag authorized by this 15
subsection shall be used for emergency or unusual purposes as determined by the 16
clerk for the purpose of maintaining the owner's current registration. A temporary 17
tag authorized by this subsection may only be issued by the county clerk and shall 18
be valid for a period of between twenty-four (24) hours and seven (7) days, as 19
determined is necessary by the clerk. A county clerk shall not issue a temporary tag 20
authorized by this subsection unless the owner of the motor vehicle applying for the 21
tag presents proof of motor vehicle insurance pursuant to KRS 304.39-080. [On and 22
after January 1, 2006, ]If the motor vehicle is a personal motor vehicle as defined in 23
KRS 304.39-087, proof of insurance shall be determined by the county clerk as 24
provided in KRS 186A.042. A temporary tag issued pursuant to this subsection 25
shall not be reissued by the county clerk for the same owner and same motor 26
vehicle within one (1) year of issuance of a temporary tag. 27 UNOFFICIAL COPY 25 RS BR 1164
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Section 8. KRS 186A.017 is amended to read as follows: 1
(1) The cabinet shall establish an electronic title application and registration system 2
which allows the submission of the required forms and signatures electronically in 3
lieu of the paper application process for titles and salvage titles. 4
(2) The electronic title application and registration system established under this 5
section shall: 6
(a) Collect all the necessary information required under KRS 186A.060; 7
(b) Collect and electronically transmit all fees imposed under KRS 186.040, 8
186.050, 186.162, and 186A.130, any fees imposed under subsection (7)[(6)] 9
of this section, and the motor vehicle use tax levied under KRS 138.460; 10
(c) Accept electronic signatures which satisfy the requirements of KRS 369.101 11
to 369.120; and 12
(d) Transmit the information in a secure manner. 13
(3) An approved entity that wishes to use the electronic title application and registration 14
system shall transmit all application documents, required electronic signatures, and 15
fees through the system to the county clerk of the county in which either the 16
purchaser of the vehicle resides or the motor vehicle dealer selling the vehicle is 17
located. 18
(4) (a) Prior to July 1, 2027, a county clerk who receives an application transmitted 19
through the electronic title application and registration system shall process 20
the application within three (3) business days of receiving the application. 21
(b) On or after July 1, 2027, if the electronic title application and registration 22
system is operational, a county clerk who receives an application transmitted 23
through the system shall[,] process the application by 3 p.m. the next 24
business day. 25
(c) In processing an application under this section, the county clerk shall[,] 26
either: 27 UNOFFICIAL COPY 25 RS BR 1164
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1.[(a)] Accept the application and forward it to the cabinet; or 1
2.[(b)] Reject the application and return it to the approved entity. 2
(5)[(4)] An entity that wishes to become an approved entity for the purposes of this 3
chapter shall submit an application to the cabinet, along with a one hundred fifty 4
dollar ($150) application fee. If approved, the entity shall pay an annual registration 5
fee to the cabinet. All fees collected under this subsection shall be deposited into 6
the road fund. 7
(6)[(5)] The cabinet shall enter into contracts with qualified third-party providers to 8
integrate with AVIS and other systems to provide software and programs to 9
approved entities to facilitate electronic vehicle registration, titling, and filing of 10
title lien statements. A third party that contracts with the cabinet under this section 11
may act on behalf of the cabinet and county clerks in receiving, processing, and 12
transmitting to the county clerk title and registration applications, salvage title 13
applications, title lien statements, and related documents and fees. 14
(7)[(6)] Any agreement with the cabinet and a third-party provider under subsection 15
(6)[(5)] of this section shall authorize an online transaction fee to be charged by the 16
third-party provider to an approved entity. A motor vehicle dealer licensed under 17
KRS Chapter 190 who uses the electronic title application and registration system 18
to file the documentation necessary to obtain a certificate of title, salvage title, or 19
registration for the purchaser of a vehicle shall collect from the purchaser any fees 20
charged for the transaction by the third-party provider. The dealer shall remit fees 21
collected under this subsection to the county clerk through the electronic title 22
application and registration system. Except for salvage title applications, any 23
transaction fee charged under this subsection shall be listed separately on the 24
buyer's order and identified as "online system filing fee." 25
(8)[(7)] The cabinet shall promulgate administrative regulations in accordance with 26
KRS Chapter 13A to establish qualifications for approved entities and procedures 27 UNOFFICIAL COPY 25 RS BR 1164
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for the electronic title application and registration system. 1
Section 9. KRS 186A.220 is amended to read as follows: 2
(1) Except as otherwise provided in this chapter, when any motor vehicle dealer 3
licensed in this state buys or accepts[ such] a motor vehicle or all-terrain vehicle as 4
defined in KRS 189.010 in trade, which has been previously registered or titled for 5
use in this or another state, and which the dealer[he] holds for resale, the dealer[he] 6
shall not be required to obtain a certificate of title for it, but shall, within fifteen 7
(15) days after acquiring such vehicle, notify the county clerk of the assignment of 8
the motor vehicle to his dealership and pay the required transferor fee. 9
(2) Upon purchasing[ such] a motor vehicle or all-terrain vehicle, or accepting it in 10
trade, the dealer shall obtain from the[his] transferor, properly executed, all 11
documents required by KRS 186A.215, to include the odometer disclosure 12
statement thereon, together with a properly assigned certificate of title. 13
(3) The dealer shall execute the[his] application for assignment upon documents 14
designated by the Department of Vehicle Regulation, to the county clerk of the 15
county in which the dealer[he] maintains his principal place of business. The[Such] 16
clerk shall enter the assignment into AVIS[upon the automated system]. 17
(4) The dealer shall retain the properly assigned certificate of title received from 18
the[his] transferor, and may make any reassignments on the title[thereon] until the 19
forms for dealer assignment on the certificate of title are exhausted. The 20
Department of Vehicle Regulation may, if it deems it warranted, provide a special 21
document to allow for additional dealer assignments without requiring system 22
generated documents. 23
(5) (a) When a dealer assigns the vehicle to a purchaser for use, the dealer[he] shall 24
deliver the properly assigned certificate of title, and other documents if 25
appropriate, to the[such] purchaser, who shall make application for 26
registration and a certificate of title[ thereon]. 27 UNOFFICIAL COPY 25 RS BR 1164
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(b) The dealer may, with the consent of the purchaser, deliver the assigned 1
certificate of title, and other appropriate documents of a new or used vehicle, 2
directly to the county clerk, and on behalf of the purchaser, make application 3
for registration and a certificate of title. In so doing, the dealer shall require 4
from the purchaser proof of insurance as mandated by KRS 304.39-080 before 5
delivering possession of the vehicle. 6
(c) Notwithstanding the provisions of KRS 186.020, 186A.065, 186A.095, 7
186A.215, and 186A.300, if a dealer elects to deliver the title documents to 8
the county clerk and has not received a clear certificate of title from a prior 9
owner, the dealer shall retain the documents in his possession until the 10
certificate of title is obtained. 11
(d) When a dealer assigns a vehicle to a purchaser for use under paragraph (a) of 12
this subsection, the transfer and delivery of the vehicle is effective 13
immediately upon the delivery of all necessary legal documents, or copies 14
thereof, including proof of insurance as mandated by KRS 304.39-080. 15
(6) The department may make available, upon proper application from a licensed motor 16
vehicle dealer, electronic means by which the dealer can interface directly with 17
AVIS and the department. If the department grants this access, all fees currently 18
required for the issuance of a certificate of title shall continue to be charged and 19
remitted to the appropriate parties as provided by statute. 20
(7) The Department of Vehicle Regulation shall ensure[assure] that AVIS[the 21
automated system] is capable of accepting instructions from the county clerk that a 22
certificate of title shall not be produced under a dealer registration situation. 23
Section 10. KRS 235.130 is amended to read as follows: 24
(1) A[No] person acting for himself, herself, or another shall not buy or trade for any 25
motorboat without receiving the certificate of title issued for that boat with a 26
certificate of transfer endorsed thereon. If the motorboat has not been issued a 27 UNOFFICIAL COPY 25 RS BR 1164
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certificate of title as noted on the certificate of registration, a county clerk may 1
accept an affidavit of ownership to process the application for title. The person 2
shall receive a completed assignment of title on a boat transaction record and the 3
certificate of registration. 4
(2) It shall be the duty of the purchaser to promptly submit the endorsed certificate of 5
title or boat transaction record and certificate of registration to the county clerk of 6
the county of the purchaser's residence or in which the motorboat is to be 7
principally operated. The purchaser shall apply for a new certificate of title and 8
registration pursuant to KRS 235.050. The county clerk shall[ thereupon] issue to 9
the purchaser a transfer of registration bearing the same data and information. The 10
clerk shall forward the endorsed certificate of title or boat transaction record and 11
certificate of registration and new application for title and registration to the 12
Transportation Cabinet. Except when registration is prohibited by law, any 13
unexpired registration shall remain valid after transfer until expiration occurs 14
according to law. 15
(3) For transferring the registration, the clerk shall collect a fee of five dollars ($5). The 16
clerk shall retain two dollars ($2), the Transportation Cabinet shall receive two 17
dollars ($2) and the Department of Fish and Wildlife Resources administratively 18
attached to the Tourism, Arts and Heritage Cabinet shall receive one dollar ($1). 19
The fee received by the Transportation Cabinet shall be deposited in a trust and 20
agency account for use by the Transportation Cabinet in defraying the cost of 21
implementing and operating the boat titling and registration program. The fee for 22
transferring the title shall be as required by KRS 235.085. 23
(4) If a transferee does not promptly submit the necessary documents to the county 24
clerk as required by law in order to complete the transfer transaction, a transferor 25
may submit to the county clerk, after the passage of fifteen (15) calendar days, in 26
his county of residence, an affidavit that he or she has transferred his interest in a 27 UNOFFICIAL COPY 25 RS BR 1164
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specific motorboat and the clerk may enter appropriate data into the AVIS system 1
which would restrict any registration transaction from occurring on that vehicle 2
until the transfer was processed. 3
(5) If the owner junks or otherwise renders a motorboat unfit for future use, he or she 4
shall deliver the title to the county clerk of the county in which the motorboat is 5
junked. The county clerk shall immediately return the title to the Transportation 6
Cabinet. The owner shall pay to the county clerk fifty cents ($0.50) for his services. 7
Section 11. Section 1 of this Act takes effect January 1, 2027. 8