SESSION OF 2021
SUPPLEMENTAL NOTE ON HOUSE SUBSTITUTE FOR
SENATE BILL NO. 99
As Recommended by House Committee on
Transportation

Brief*
House Sub. for SB 99 would amend law regarding
vehicle dealer license requirements and vehicle display
shows. The bill would be in effect upon publication in the
Kansas Register.

Dealer License Requirements
The bill would increase the bond required for licensure
as a dealer of used or new vehicles from $30,000 to $50,000,
on and after January 1, 2022.

Vehicle Display Show
The bill would authorize the Director of Vehicles
(Director), Kansas Department of Revenue (KDOR), to issue
a temporary display show license to a sponsor of a motor
vehicle display show. A display show sponsor, which the bill
would not require to be a licensed new vehicle dealer, would
be responsible for organizing and operating the display show
under such terms and conditions as the Director may
reasonably require. A fee of $100 would be paid by the
sponsor upon application, and each show participant
displaying vehicles would pay $35 to the sponsor. All fees
would be remitted to the Director.

____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
 The bill would authorize new vehicle dealers, first stage
manufacturers, second stage manufacturers, first stage
converters, second stage converters, and distributors
(manufacturers and distributors) to attend and participate in
the display of new motor vehicles at a temporary display
show without regard to geographical territorial assignment or
relevant market area. The bill would require participating new
vehicle dealers to be licensed motor vehicle dealers, but
manufacturers and distributors would not be required to be
licensed to participate. The bill would authorize participation
by new motor vehicle dealers without the approval of any
manufacturer or distributor, and it would prohibit a
manufacturer or distributor from barring or treating a new
vehicle dealer adversely for participating in a display show.
The bill would prohibit sales or lease transactions at a
display show but would authorize test drives for purposes
other than sale or lease, to demonstrate the vehicle and its
features.
The bill also would add leases and test drives to sales
transactions as activities that could not occur at the
temporary location of a new vehicle dealer that is not a
display show.
The bill would define a display show as a display of new
motor vehicles that does not fall under the description of a
temporary trade show in continuing law.

Background
The bill was introduced by the Senate Committee on
Transportation at the request of the Director of Vehicles,
KDOR.
[Note: The provisions of SB 99 were the same as those
of 2020 SB 305 as recommended by the House Committee
on Transportation, before the House Committee amendment
to add the contents of SB 33.]
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Senate Committee on Transportation
In the Senate Committee hearing on February 11, 2021,
the Vehicle Services Manager, Division of Vehicles, KDOR,
and the president of the Kansas Automobile Dealers
Association (KADA) provided proponent testimony. They
stated the bond is used to protect consumers who are left
without proper ownership documents if a dealership closes.
They noted the bond amount has not been increased since
the 1980s while the average price of a vehicle has increased
significantly and stated the change is supported by the Dealer
Review Board. [Note: The Dealer Review Board is described
in KSA 8-2412.]
No other testimony was provided.
The Senate Committee recommended the bill be placed
on the Consent Calendar.

House Committee on Transportation
In the House Committee hearing on March 11, 2021, the
Vehicle Services Manager, Division of Vehicles, KDOR, and
the president of the KADA provided proponent testimony.
The KADA requested consideration of an amendment to the
bill to make the provisions of SB 33, signed into law by the
Governor on March 11, 2021, effective on publication in the
Kansas Register, as it is hoped the display show will be held
June 11-13, 2021. No other testimony was provided.
The House Committee amended the bill to add
provisions of SB 33 as enacted and to make the bill effective
on publication in the Kansas Register.


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SB 33 (Vehicle Display Show)
The bill was introduced by the Senate Committee on
Transportation at the request of a representative of the
KADA.

Senate Committee on Transportation
In the Senate Committee hearing on February 11, 2021,
the president of the KADA provided proponent testimony. He
stated the bill would allow the display and demonstration of
new vehicles during an auto show and would allow the
Kansas City International Auto Show to be moved from
downtown Kansas City, Missouri, to the Kansas Speedway.
Written-only proponent testimony was provided by the chief
operating officer of the Automobile Dealers Association of
Greater Kansas City, who also is the producer of the Kansas
City International Auto Show.
No opponent or neutral testimony was provided.
The Senate Committee recommended the bill be placed
on the Consent Calendar.

House Committee on Transportation
In the House Committee hearing on February 23, 2021,
the president of the KADA provided proponent testimony,
and the chief operating officer of the Automobile Dealers
Association of Greater Kansas City provided written-only
proponent testimony.
The mayor of Kansas City, Missouri, provided written-
only opponent testimony, noting the states in 2019 had
agreed to end the economic “border war” of enticing
economic opportunities across state lines and this auto show
has been held in Kansas City, Missouri, since 1907.

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Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on SB 99 as introduced, KDOR indicates it would
require $662 from the State General Fund for FY 2022 to
implement the bill and to modify the internal dealer
application.
According to the fiscal note prepared by the Division of
the Budget on SB 33, KDOR estimates enactment of the bill
would increase its expenditures for FY 2022 by $5,090,
primarily for programming and system testing, and would
increase revenues to the State Highway Fund by
approximately $1,000 annually.
Any fiscal effect of enactment of the substitute bill is not
reflected in The FY 2022 Governor’s Budget Report.
Vehicle dealer; bonding; motor vehicle; display show permit; auto show


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Statutes affected:
As introduced: 8-2404
Version 2: 8-2404, 8-2435
Enrolled: 8-2404, 8-2435