Memorandum

To:County Treasurers and staff

From:Peggy Stalcup, Public Service Administrator III

Date:July 29, 2004

SubjectSalvage legislation HB 2745

Effective July 1, 2004 a vehicle meeting the new definition of salvage being retained by the owner has an obligation to apply for a salvage title within 30 days of notification from the insurance company. The legislation requires insurance companies to notify the division of vehicles when a vehicle meets the definition of a salvage vehicle and the owner is retaining the vehicle. The division of vehicles is required to ensure that the salvage status is reflected on a Kansas title.

To comply with this legislation, we will be place a stop title on any vehicle record when an insurance company notifies us a salvage vehicle is being retained by the owner.

The new stop code will be a “D” meaning “individual salvage vehicle.” The description will also be “individual salvage vehicle.” The comment field will read “Insurance reported salvage.” (County Treasurers will not be able to see the stop on the vehicle. This is for T & R employees only)

A cross-reference record will be created when the stop is placed on the vehicle. (County Treasurers will not be able to see this file.”

Edits will be in effect that will stop a title application if the salvage branding is not on the application when it comes in from the county. If the title application is salvage, the system will allow the title application to proceed and issue a title or etitle record and remove the stop from the file. The cross-reference file will not indicate when the stop came off, however you will know by the date of the title application. If the title application is not salvage, an error message will be created alerting that a stop title indicator exists.

The customer will be notified by mail that they must make application for a salvage title. The customer must complete a TR-13 “Non-Highway-Salvage Vehicle Affidavit” and submit either the existing Kansas title or their title and registration receipt if the title is being held as an etitle record. They must remove their tag that is currently displayed on their vehicle. Do not accept the tag if the registration is still current and no refunds are allowed.

When the vehicle is ready to be put back on the road, you may issue a one-day permit allowing them to take the vehicle to the nearest MVE1 station for the inspection. When the inspection has been completed and they bring the MVE1 back into your office, you may transfer the tag back onto the vehicle if the tag they had on the vehicle is current. The title and registration will be branded as a rebuilt salvage. If the tag that was on the vehicle previously is not current, sell them a new tag and brand the title as a rebuilt salvage vehicle.

If you have additional questions, please feel free to call Mathew Moser, Ray Wilk or myself.

Thanks for your continued support and assistance.

cc:Carmen Alldritt, Director of Vehicles

Mathew Moser, Manager Titles and Registrations, dealer licensing

04-061