(1) Each off-highway vehicle operated in this state and identified by the manufacturer as a 1988 year model or newer is subject to the titling provisions of this part except:
(a) off-highway vehicles owned and operated by nonresidents of the state; and
(b) off-highway vehicles owned and operated by the federal government.
(2) The division may not provide title to an off-highway vehicle identified by the manufacturer as a 1987 year model or older unless the off-highway vehicle is:
(a) a motorcycle; or
(b) a street-legal all-terrain vehicle.