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AN ACT relating to motor vehicle dealers. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
ď˘Section 1. KRS 190.030 is amended to read as follows: 3
(1) (a) Except as provided in paragraph (b) of this subsection, a motor vehicle 4
dealer, new, used, or auction motor vehicle dealer, nonprofit motor vehicle 5
dealer, motor vehicle leasing dealer, restricted motor vehicle dealer, 6
motorcycle dealer, broker, wholesaler, automotive recycling dealer, new 7
recreational vehicle dealer, a salesperson of motor vehicles, or a salesperson 8
of new recreational vehicles shall not engage in business in this state at any 9
location without a license issued for that location as provided in KRS 190.010 10
to 190.080. 11
(b) An entity identified in paragraph (a) of this subsection with an established 12
place of business may conduct sales activities via the Internet and deliver 13
vehicles sold or leased by the licensed dealer to a customer at the customer's 14
residence or other suitable location, as long as the sale, lease, or delivery is 15
requested by the customer. 16
(c) If a person licensed as a motor vehicle dealer or new recreational vehicle 17
dealer acts as a motor vehicle salesperson or a new recreational vehicle 18
salesperson, that person shall secure a motor vehicle salesperson's license or a 19
new recreational vehicle salesperson's license in addition to a license for a 20
motor vehicle dealer or for a new recreational vehicle dealer. 21
[(c) In addition to the authority granted under subsection (6) of this section, the 22
motor vehicle commission may promulgate administrative regulations in 23
accordance with KRS Chapter 13A to establish licenses and appropriate fees 24
for other licensee activities.] 25
(2) A manufacturer of motor vehicles, recreational vehicles, factory branch, distributor, 26
distributor branch, or wholesaler shall not engage in business in this state without a 27 UNOFFICIAL COPY 22 RS SB 91/GA
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license as provided in KRS 190.010 to 190.080. 1
(3) A factory representative or distributor representative shall not engage in business in 2
this state without a license as provided in KRS 190.010 to 190.080. 3
(4) Application for license shall be made to the licensor, at a time, in a form, and 4
containing information the licensor shall require and shall be accompanied by the 5
required fee. The licensor may require, as part of the application process, 6
information relating to the applicant's solvency, financial standing, or other 7
pertinent matter commensurate with the safeguarding of the public interest in the 8
locality in which the applicant proposes to engage in business. The information may 9
be considered by the licensor in determining the fitness of the applicant to engage in 10
business as set forth in this section. 11
(5) All licenses shall be granted or refused within thirty (30) days after submission of a 12
complete application and shall expire, unless revoked or suspended, on December 13
31 of the calendar year for which they are granted. If a complaint of unfair 14
cancellation of dealer franchise is in the process of being heard, a replacement 15
application for the franchise shall not be considered until a decision is rendered by 16
the commission. 17
(6) (a) The commission shall promulgate administrative regulations in accordance 18
with KRS Chapter 13A to establish annual license fees, not to exceed five 19
hundred dollars ($500), for: 20
1. New motor vehicle dealers; 21
2. Used motor vehicle dealers; 22
3. Motor vehicle leasing dealers; 23
4. Restricted motor vehicle dealers; 24
5. Motorcycle dealers; 25
6. Motor vehicle manufacturers and factory branches; 26
7. Distributors, motor vehicle auction dealers, and wholesalers; 27 UNOFFICIAL COPY 22 RS SB 91/GA
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8. Factory representatives and distributor branch representatives; 1
9. Automotive mobility dealers; 2
10. Nonprofit motor vehicle dealers; 3
11. Recreational vehicle manufacturers and distributors; and 4
12. New recreational vehicle dealers. 5
(b) The commission shall promulgate administrative regulations in accordance 6
with KRS Chapter 13A to establish annual license fees, not to exceed fifty 7
dollars ($50), for motor vehicle salespersons and new recreational vehicle 8
salespersons. 9
(c) In addition to the annual license fees established under paragraph (b) of 10
this subsection, the commission may promulgate administrative regulations 11
in accordance with KRS Chapter 13A to establish licenses and appropriate 12
fees for other licensee activities. 13
(d)[(c)] A[The] license fee imposed on motor vehicle salespersons and new 14
recreational vehicle salespersons shall be paid by the licensed dealer for every 15
salesperson the dealer employs. 16
(e)[(d)] A license fee shall not be imposed on nonprofit motor vehicle dealer 17
salespersons. 18
(7) (a) The licenses of dealers, manufacturers, factory branches, distributors, and 19
distributor branches shall specify the location of the office or branch and shall 20
be conspicuously displayed there. If the location is changed, the licensor shall 21
endorse the change of location on the license. A licensee shall not be charged 22
a fee for changing locations. A change of location shall require a new 23
application. 24
(b) 1. A motor vehicle dealer who is not a new motor vehicle dealer may 25
conduct a temporary sale or display in the county where the dealer is 26
licensed to conduct business. 27 UNOFFICIAL COPY 22 RS SB 91/GA
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2. A new motor vehicle dealer may conduct a temporary sale or display in 1
the dealer's market as defined in KRS 190.047(6). 2
3. A recreational vehicle dealer may conduct a temporary sale or display in 3
the county where the dealer is licensed to conduct business or in any 4
other county where there is no licensed recreational vehicle dealer. 5
(c) A temporary sale or display may be conducted under this subsection if the 6
temporary sale or display is permitted under an enabling ordinance enacted by 7
the city, county, urban-county, or consolidated local government within whose 8
boundaries the temporary sale or display is to be conducted. A temporary sale 9
or display shall be advertised as temporary in nature and shall consist of a 10
representative sampling of the inventory of each participating licensee. 11
(d) The provisions of this subsection shall not apply to a nonprofit motor vehicle 12
dealer. 13
(8) Every salesperson, factory representative, or distributor representative shall carry 14
his license when engaged in business, and display it upon request. The license shall 15
name his employer; and in case of a change of employer, the salesperson shall 16
immediately mail his license to the licensor who shall endorse the change on the 17
license without charge. 18
(9) If the licensor has reasonable cause to doubt the financial responsibility or the 19
compliance by the applicant or licensee with the provisions of this statute, the 20
licensor may require the applicant or licensee to furnish and maintain a bond in a 21
form, amount and with sureties up to one hundred thousand dollars ($100,000), 22
conditioned upon the applicant or licensee complying with the provisions of the 23
statutes applicable to the licensee. The bonds shall be executed in the name of the 24
State of Kentucky for the benefit of any aggrieved parties, but the penalty of the 25
bond shall not be invoked except after a court adjudication. The commission may 26
promulgate administrative regulations to permit the applicant to submit evidence, in 27 UNOFFICIAL COPY 22 RS SB 91/GA
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lieu of posting bond, that reliable financial arrangements, deposits, or commitments 1
exist providing assurance, substantially equivalent to that afforded by a bond 2
complying with this subsection, for payment on conditions and indemnity set forth 3
in this subsection. The bonding requirements of this subsection shall not apply to 4
manufacturers, factory branches, and their agents. 5
(10) Application for dealer's license shall be submitted to the commission and contain 6
information the commission may require. A motor vehicle dealer, unless licensed 7
under KRS 190.010 to 190.080, shall not be permitted to register, receive, or use 8
any motor vehicle registration plates. 9
(11) Every motor vehicle dealer or new recreational vehicle dealer licensed in 10
accordance with the provisions of this section shall make reports to the licensor at 11
intervals and show information the licensor may require. 12