MEMORANDUM

TO: County Treasurers and T&R Staff

FROM: Mathew Moser, Manager, Titles and Registrations Bureau

DATE: June 15, 2005

SUBJECT: Owner Retained Salvage Procedures-revised

This memo originally issued on April 12, 2005 is being revised to include instructions for hand-carries and how to bundle salvage applications to be sent in your daily report. \

Since July 1, 2004, a person who retains ownership of a motor vehicle required to be designated as salvage, and receives a damage settlement from an insurance company, must by statute apply for a salvage title within 30 days. Insurance companies must notify owners of this requirement and the division of vehicles whenever the owner retains a salvage vehicle.

An owner who fails to apply for a salvage title will receive correspondence from the Titles and Registrations Bureau advising them their title is being branded as a salvage and the vehicle cannot be operated. The owner must apply for a salvage title at their county treasurer’s office, turning in their title and a TR-13. If the customer’s title is an e-title, they may apply for their salvage title using their registration receipt, in lieu of the title, along with the TR-13. Upon application for the salvage title, the owner will retain his tag so it may be transferred back onto the vehicle after it is inspected by the Kansas Highway Patrol (K.H.P.).After applying for their salvage title and the vehicle has been repaired and/or is roadworthy, the owner may obtain an inspection from the Kansas Highway Patrol to obtain a rebuilt salvage title by presenting their TR-200 as evidence of their salvage application along with the “Inspection Procedures For Owner Retained Salvage Vehicles” form to the K.H.P. personnel conducting the inspection. The inspection may be done immediately after the owner has applied for their salvage title, including the same day. All customers should be advised K.H.P. personnel may only perform the rebuilt salvage inspection. Law enforcement designees such as county sheriffs or municipal police departments are not authorized to conduct inspections of vehicles that have salvage titles or rebuilt salvage titles. Customers should not be directed to those agencies for these types of inspections. The K.H.P. is dedicated and committed to providing service to customers and getting inspections completed in as timely a manner as possible. Customers should be informed to contact their local K.H.P. office or Troop Headquarters, or the State Motor Vehicle Enforcement Coordinator’s Office at (316) 744-0546.

Upon completion of the inspection by the K.H.P., the owner may then apply for a rebuilt salvage title, by presenting their MVE-1 form and TR-200 salvage title application receipt. This application may be accepted the same day the customer made application for their salvage title, provided the inspection has been completed. The customer’s tag should be transferred back onto the vehicle, provided the registration is still valid. As an additional reminder, vehicles being brought into Kansas on salvage titles or rebuilt salvage titles issued by other states must have MVE-1 inspections conducted by K.H.P. personnel. Law enforcement designees are not authorized to conduct inspections of these vehicles. If the customer wants to apply for a salvage title only, an inspection by K.H.P. personnel is required. Law enforcement designees are not authorized to conduct these inspections either.

To eliminate any inconvenience to the customer and to reduce the workload of the Titles and Registration Bureau’s staff please review the MVE-1 form that was issued to obtain a rebuilt salvage title to ensure that is was issued by the K.H.P.. If the vehicle was mistakenly inspected by a law enforcement designee the owner will need to have the vehicle re-inspected by the K.H.P..

Additionally, any salvage titled vehicle that has been rebuilt and the owner is applying for a rebuilt salvage title is required to have a “notice” affixed by the K.H.P. to indicate the vehicle is a rebuilt salvage vehicle. (Please see the attached “notice” example) The control number of the “notice” must be recorded on the MVE-1 form. That number should appear near the top of the MVE-1 form in the “This Vehicle Should Receive The Following Classification Of Title” area, underneath “Rebuilt Salvage Title”. (Please see attached MVE-1 Form Example) You may also find the “notice” control number recorded in the “Remarks” section of the MVE-1 form. If the “notice” control number has not been recorded on the form, please instruct the owner to contact the inspecting K.H.P. personnel to have the “notice” affixed and/or recorded on the form.

In the event that the customer wishes to hand-carry the rebuilt salvage title application to Topeka, please make sure that you place the salvage title application and rebuilt salvage application together sending both applications with the customer. Put copies of the applications in the appropriate reports, advising that they were hand-carried. Please relate to the customer that they must deliver both title applications to our front counter. Do not allow the customer to hand carry one title application without the other. Do not allow a hand carry on an application with a lien as a paper title cannot be printed on these types of applications.

Regardless of the time frame, please ensure that both applications are placed in the report together. If the applications are completed on different days, take a copy of the salvage application and place in original report. Write on the copy that the original will be placed with the rebuilt salvage application. Put the two applications together (do not staple, place paperclip on applications) and submit to Topeka in the daily report containing the rebuilt salvage.

If you have questions, or need further information, please feel free to contact me directly at (785) 296-2571.

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