KansasSB 972025–2026 Regular SessionSenateWALLET

Requiring vehicle dealers to apply for a dealer inventory-only title for certain used nonhighway vehicles that a vehicle dealer obtains.

Sponsored By: Stephen Owens (Republican)

Signed by Governor

transportation

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

Simpler titles for salvage pools, dealers

Salvage vehicle pools and licensed salvage dealers can apply for a salvage title or nonrepairable certificate without the old title in specific cases. This applies when the vehicle came at an insurer’s request, the claim was closed without payment or denied, and it sat unclaimed over 30 days. They must prove required notices were sent and provide any needed inspection for out-of-state titles. The division can then issue ownership papers free of liens.

Dealers must get inventory-only titles

Licensed vehicle dealers who take ownership of a used nonhighway vehicle must apply for a dealer inventory-only title with the county treasurer. The application must include a bill of sale or an existing certificate of title. Each application costs $10.

Deadlines and notices for salvage titles

If a vehicle is declared salvage, the owner must get a salvage title before any transfer and within 60 days. If an insurer settles but does not take the vehicle, it must notify the owner and the division, and the owner then has 60 days to apply. A lessee who knows the vehicle is salvage must tell the lessor within 30 days; the lessor then has 60 days to apply. Insurers that take ownership must apply for a salvage title within 60 days, or after 30 days without a title they may file with an affidavit. Not applying as required can be a class C nonperson misdemeanor. The law also repeals K.S.A. 8-198.

Permits and checks for rebuilt salvage

When you rebuild a salvage vehicle, the highway patrol places a notice on the left door frame during the rebuilt inspection and you pay $5 for that notice. You may get a $1 permit to drive only the most direct route to and from a named place. You must have liability insurance or approved self-insurance to get the permit. A vehicle with a nonhighway or salvage title is not treated as a motor vehicle under state insurance laws, except when driven under this permit. Lying about insurance, driving without a required permit, or not getting a rebuilt salvage title when required can be a class C nonperson misdemeanor.

Titles and small fees for nonhighway vehicles

If you buy a nonhighway vehicle, you must apply with your county treasurer for the correct nonhighway title. The application costs $10; if you file late, add $2. If you owned an ATV on July 1, 1996, or a work-site utility vehicle on July 1, 2006, you do not need to apply unless you transfer an interest. This sets a basic title rule and a small fee for new buyers.

Sponsors & Cosponsors

Sponsor

Stephen Owens
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 156 • No: 7

Senate vote • 4/23/2026

Yea: 116 Nay: 7

Yes: 116 • No: 7