KentuckyHB 1442026 Regular SessionHouseWALLET

AN ACT relating to motor vehicle titles.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Get a new title by affidavit

You can get a new, lien‑free title if you possess the vehicle, the sheriff confirms it is not stolen, and you complete the state affidavit. You must try certified‑mail notice to the owner and lienholders at least 30 days before, publish a legal notice more than 14 days before, and get no written objections. Qualifying reasons include an unpaid debt over 30 days, an insurer who paid damages but could not get an endorsed title within 30 days, or a dealer with 45 days of unpaid storage. If the claim is unpaid debt, you get a regular title. In insurer or dealer cases, you get a salvage title if the car meets the state’s salvage test; otherwise you get a regular title.

How salvage titles are handled

If you own a salvage vehicle, you must apply for a salvage title within 15 days after you have all required papers. A salvage title proves ownership but the vehicle cannot be registered or driven, except to and from a certified inspection before retitling. County clerks must take surrendered titles without a fee, keep a copy of salvage applications, and send originals to the state; the Department processes them like regular titles. If you apply online, some paper steps do not apply. When an owner transfers a salvage vehicle to an insurer, key forms do not need notarization, and clerks may rely on owner or agent information.

New rules for vehicle title liens

A vehicle lien is valid only when shown on the Kentucky title; UCC filings do not perfect it. Clerks perfect liens by date‑stamped AVIS entry after receiving the title lien statement, fee, vehicle details, and lienholder info; they must notify the lienholder and show contact details on the title. Only two active liens can be on one title. A lien lasts 10 years (30 years for manufactured homes) and can be extended 5 years by filing within the last 6 months. Liens and releases can be filed electronically, expired liens are removed, a clean title is blocked until all liens are released, sellers must clear liens before transfer, parties can rely on the debtor’s notarized county, entity rules set the filing county, and a filing fee applies under KRS 64.012.

When a car becomes salvage

A vehicle is salvage if repair costs, minus airbag reinstall cost, are over 75% of its retail value from a national used‑car guide. The destruction test counts only damage to the suspension, motor, transmission, frame or unibody, and other key structural parts; cosmetic damage does not count. If the vehicle is destroyed or two VIN‑bearing parts are removed, you must surrender the title within 10 working days; even if you keep the title, it will be marked salvage. Insurers must include airbag reinstall costs in damage estimates under your policy, but total payment cannot exceed the vehicle’s retail value. Parts are priced at published or actual retail, and labor must use reasonable, local industry rates.

Sponsors & Cosponsors

Sponsor

Thomas Huff
Republican • House

Cosponsors

Daniel Elliott
Republican • House
Daniel Grossberg
Democrat • House
Emily Callaway
Republican • House
John Hodgson
Republican • House
Mark Hart
Republican • House
Nancy Tate
Republican • House
Peyton Griffee
Republican • House
Ryan Dotson
Republican • House
Tom Smith
Republican • House

Roll Call Votes

All Roll Calls

Yes: 223 • No: 0

House vote • 3/31/2026

passed

Yes: 91 • No: 0

Senate vote • 3/31/2026

3rd reading, passed

Yes: 38 • No: 0

House vote • 1/30/2026