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Committee hears bill to allow dealer inventory titles for non‑highway vehicles
Summary
Senate Bill 97 would create a $10 dealer-inventory-only title process for used ATVs, worksite utility vehicles, recreational off‑highway vehicles and motorcycles that qualify as non‑highway vehicles; KDOT/DMV staff and proponents said the change clarifies an existing practice and aims to ease dealer trade‑ins and future titling.
The Committee on Transportation held a hearing on Senate Bill 97 on a proposal to create a dealer inventory–only title for used non‑highway vehicles, bill reviewer Chris said. The change would let licensed vehicle dealers apply for a $10 title, held in dealer inventory until the vehicle is sold to a private purchaser.
Proponents and committee staff said the change is intended to resolve confusion about how dealers should handle used off‑road vehicles that previously lacked a title. Senator Stephen Owens, a proponent who said he owns a dealership, told the committee many owners of older ATVs and other non‑highway vehicles never obtained titles; without a title, owners seeking to trade in a unit often had to take the vehicle to a dealer in another state where titles are not required. "Working with the Department of Revenue…we found the department already allowed dealer inventory titles in some cases, and this bill codifies that procedure," Owens said.
Deanna Shepherd, senior manager for the Division of Vehicles at KDOT (DMV), told lawmakers the bill would not make non‑highway vehicles legal for road use. "They would not be able to be driven on the highway. They're only allowed to cross a highway to go from one field to another field," Shepherd said, and she explained the bill provides a way for dealers to obtain a title by bill of sale where no previous title exists.
Representatives at the hearing asked for clarifications about which vehicles qualify as non‑highway vehicles and whether titling would make them subject to highway registration. Chris and Shepherd explained the statute defining non‑highway vehicles (the committee referenced KSA definitions) already limits which vehicles are permitted for limited on‑road use; SB 97 does not change those restrictions. Representative Weigel asked whether the titling process would permit tags for road use if a vehicle later qualified; staff said the non‑highway title is separate from a highway registration and does not itself authorize general road use.
Senator Owens said the Kansas Senate previously amended the bill and that the bill had passed the Senate and been placed on the consent calendar after a 40‑0 vote in that chamber. The bill as explained by the reviser would amend KSA 8‑198 and related titling statutes to add the dealer inventory only title procedure; the title fee would be $10 paid to the county treasurer and fee disposition would follow existing statute for shifted titles under KSA 8‑145b. The bill's provisions would become effective July 1, 2025.
Committee staff noted the fiscal note associated with the bill was $1,200. No neutral or opponent testimony was presented during the committee hearing, and the committee closed the public hearing after questions and discussion.
