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AN ACT relating to transportation and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 177.074 is amended to read as follows: 3
(1) Every road which is part of the state primary system shall be identified by a specific 4
route number. In addition to a route number, the secretary shall direct the placement 5
of signage denoting the honorary naming of a bridge, a road, or a road segment to 6
comply with the provisions of subsections (2), (3), and (5) of this section. 7
(2) The secretary shall, within thirty (30) days of receipt of a written request by the 8
commissioner of the Department of Kentucky State Police, name a state road or 9
segment of a state road in memory and honor of Kentucky state troopers killed in 10
the line of duty. The written request shall include the: 11
(a) Trooper's name; 12
(b) Date and circumstances of the trooper's death; and 13
(c) Specific segment of state road the Department of Kentucky State Police is 14
requesting be named in honor and memory of the state trooper killed in the 15
line of duty. 16
(3) The road or road segment identified in the request shall be either the state road 17
where the trooper was killed, or the state road closest to the deceased trooper's 18
home. The cabinet shall consult with the commissioner of the Department of 19
Kentucky State Police on the design and installation of the road signs naming the 20
state road or road segment in honor and memory of each trooper, and the cabinet 21
shall erect the appropriate highway signs within thirty (30) days of receipt of the 22
written request required under subsection (2) of this section. 23
(4) If the road segment identified in the request under subsection (2) of this section has 24
already been named for another individual or organization, the Department of 25
Kentucky State Police and the cabinet shall consult on and determine an alternate 26
location that is acceptable to both agencies. 27 UNOFFICIAL COPY 23 RS SB 163/EN
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(5) Upon direction by joint resolution of the General Assembly, the secretary shall 1
direct the placement of signage denoting: 2
(a) The honorary naming of a road, a road segment, or a bridge; or 3
(b) The inclusion of an artist as an honoree on the Country Music Highway on 4
United States Route 23[upon direction by joint resolution of the General 5
Assembly]. 6
(6) The placement of the signs installed as a result of a resolution passed by the 7
General Assembly shall be the responsibility of the Department of Highways. 8
(7) (a) A school board or the governing body of a city or county may petition the 9
secretary for the installation of temporary signage honoring an individual, a 10
group of individuals, or a team. 11
(b) The secretary shall, within thirty (30) days of receipt of a written request 12
under this subsection, approve or deny the petition. 13
(c) Within thirty (30) days of the approval of a petition, the secretary shall direct 14
the placement of honorary signage under this subsection. The Transportation 15
Cabinet shall be the final arbiter of the location of signage placement under 16
this subsection. Signage installed under this subsection shall remain in place 17
for a minimum of one (1) year from the date of its placement. 18
(d) The petitioning body shall bear all costs of signage and installation under this 19
subsection. 20
(8) The Transportation Cabinet may adopt administrative regulations to implement the 21
provisions of subsection (7) of this section, including but not limited to basic 22
standards for design and placement of signs and establishing a process to allow the 23
petitioning body to reimburse the Transportation Cabinet for the cost of 24
manufacturing and installing the signs for which a petition has been granted. 25
(9) The new proposed truck bypass around Mayfield, Kentucky, shall be named the 26
"Dick Castleman Bypass," after former State Representative Dick Castleman. 27 UNOFFICIAL COPY 23 RS SB 163/EN
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(10) The bridge on United States Highway 27 over the Kentucky River near Camp 1
Nelson, between Jessamine and Garrard Counties, shall be named the "Loyd 2
Murphy Memorial Bridge." 3
Section 2. KRS 186.240 (Effective until January 1, 2024) is amended to read as 4
follows: 5
(1) It shall be the duty of the cabinet to carry out the provisions of KRS 186.005 to 6
186.260, and: 7
(a) Provide to the clerk in each county access to all forms provided for in KRS 8
186.005 to 186.260; 9
(b) Keep a numerical record of all registration numbers issued in the state and 10
also keep a record of motor or vehicle identification numbers required by 11
KRS 186.160; and 12
(c) Furnish to each clerk, originally each year upon estimate, and thereafter upon 13
requisition at all times, a sufficient supply of standard, noncommercial plates 14
and the supplies necessary to provide evidence of registration for all classes of 15
vehicles required to be registered. 16
(d) Prescribe a standard plate of practical form and size for police identification 17
purposes that shall contain: 18
1. The registration identifier; 19
2. An indication that Kentucky is the issuing jurisdiction; 20
3. At the discretion of the cabinet, any combination of the following 21
phrases: 22
a. "Bluegrass State"; or 23
b. "United We Stand, Divided We Fall"; 24
4. For standard plates for noncommercial vehicles:[,] 25
a. The county in which the plate is issued; and 26
b. At the discretion of the person to whom the vehicle is registered, 27 UNOFFICIAL COPY 23 RS SB 163/EN
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the phrase "In God We Trust"; and 1
5.[4.] For plates for commercial vehicles, the year the license expires and 2
words or information the Department of Vehicle Regulation may 3
prescribe by administrative regulation, pursuant to KRS Chapter 13A[; 4
and 5
5. At the discretion of the cabinet, a state slogan]. 6
(2) License plates issued pursuant to this chapter shall conform to the provisions of 7
subsection (1)(c) and (d) of this section. The Transportation Cabinet shall provide 8
for the issuance of reflectorized plates for all motor vehicles, and shall collect a fee, 9
in addition to the fee set out in KRS Chapter 186 and KRS 281.631, of fifty cents 10
($0.50). The fifty cents ($0.50) fee to reflectorize license plates shall be used by the 11
cabinet as provided in subsection (3) of this section. 12
(3) The reflectorized license plate program fund is established in the state road fund 13
and appropriated on a continual basis to the cabinet to administer the moneys as 14
provided in this subsection. The fifty cents ($0.50) fee collected by the cabinet to 15
reflectorize license plates shall be deposited into the program fund and used to issue 16
reflectorized license plates. If at the end of a fiscal year, money remains in the 17
program fund, it shall be retained in the fund and shall not revert to the state road 18
fund. The interest and income earned on money in the program fund shall also be 19
retained in the program fund to carry out the provisions of this subsection. The 20
Transportation Cabinet shall issue reflectorized license plates under the provisions 21
of this subsection on a schedule to be determined at the discretion of the cabinet. 22
(4) Except as directed under subsection (3) of this section, the Transportation Cabinet 23
shall receive all moneys forwarded by the clerk in each county and turn it over to 24
the State Treasurer for the benefit of the state road fund. 25
(5) The Transportation Cabinet shall require an accounting by the clerk in each county 26
for any moneys received by the clerk[him] under the provisions of this chapter, 27 UNOFFICIAL COPY 23 RS SB 163/EN
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after the deduction of the clerk's[his] fees under this chapter, and for all receipts, 1
forms, plates, and insignia consigned to the clerk[him]. The Auditor of Public 2
Accounts, pursuant to KRS 43.071, shall annually audit each county clerk 3
concerning the clerk's[his] responsibilities for the collection of various fees and 4
taxes associated with motor vehicles. The secretary of the Transportation Cabinet, 5
with the advice, consultation, and approval of the Auditor, shall develop and 6
implement an inventory and accounting system which shall insure that the audits 7
mandated in KRS 43.071 are performed in accordance with generally accepted 8
auditing standards. The Transportation Cabinet shall pay for the audits mandated by 9
KRS 43.071. 10
(6) When applied for under KRS 186.060 or 186.061, motor or vehicle numbers 11
assigned shall be distinctive to show that they were designated by the cabinet. 12
Section 3. KRS 186.240 (Effective January 1, 2024) is amended to read as 13
follows: 14
(1) It shall be the duty of the cabinet to carry out the provisions of KRS 186.005 to 15
186.260, and: 16
(a) Provide to the clerk in each county access to all forms provided for in KRS 17
186.005 to 186.260; 18
(b) Keep a numerical record of all registration numbers issued in the state and 19
also keep a record of motor or vehicle identification numbers required by 20
KRS 186.160; 21
(c) Furnish to each clerk, originally each year upon estimate, and thereafter upon 22
requisition at all times, a sufficient supply of standard, noncommercial plates 23
and the supplies necessary to provide evidence of registration for all classes of 24
vehicles required to be registered; and 25
(d) Prescribe a standard plate of practical form and size for police identification 26
purposes that shall contain: 27 UNOFFICIAL COPY 23 RS SB 163/EN
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1. The registration identifier; 1
2. An indication that Kentucky is the issuing jurisdiction; 2
3. At the discretion of the cabinet, any combination of the following 3
phrases: 4
a. "Bluegrass State"; or 5
b. "United We Stand, Divided We Fall"; 6
4. For standard plates for noncommercial vehicles:[,] 7
a. The county in which the plate is issued; and 8
b. At the discretion of the person to whom the vehicle is registered, 9
the phrase "In God We Trust"; and 10
5.[4.] For plates for commercial vehicles, the year the license expires and 11
words or information the Department of Vehicle Regulation may 12
prescribe by administrative regulation, pursuant to KRS Chapter 13A[; 13
and 14
5. At the discretion of the cabinet, a state slogan]. 15
(2) Except as provided in KRS 186A.127, license plates issued pursuant to this chapter 16
shall conform to the provisions of subsection (1)(c) and (d) of this section. The 17
Transportation Cabinet shall provide for the issuance of reflectorized plates for all 18
motor vehicles, and shall collect a fee, in addition to the fee set out in KRS Chapter 19
186 and KRS 281.631, of fifty cents ($0.50). The fifty cents ($0.50) fee to 20
reflectorize license plates shall be used by the cabinet as provided in subsection (3) 21
of this section. 22
(3) The reflectorized license plate program fund is established in the state road fund 23
and appropriated on a continual basis to the cabinet to administer the moneys as 24
provided in this subsection. The fifty cents ($0.50) fee collected by the cabinet to 25
reflectorize license plates shall be deposited into the program fund and used to issue 26
reflectorized license plates. If at the end of a fiscal year, money remains in the 27 UNOFFICIAL COPY 23 RS SB 163/EN
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program fund, it shall be retained in the fund and shall not revert to the state road 1
fund. The interest and income earned on money in the program fund shall also be 2
retained in the program fund to carry out the provisions of this subsection. The 3
Transportation Cabinet shall issue reflectorized license plates under the provisions 4
of this subsection on a schedule to be determined at the discretion of the cabinet. 5
(4) Except as directed under subsection (3) of this section, the Transportation Cabinet 6
shall receive all moneys forwarded by the clerk in each county and turn it over to 7
the State Treasurer for the benefit of the state road fund. 8
(5) The Transportation Cabinet shall require an accounting by the clerk in each county 9
for any moneys received by him or her under the provisions of this chapter, after the 10
deduction of his or her fees under this chapter, and for all receipts, forms, plates, 11
and insignia consigned to him or her. The Auditor of Public Accounts, pursuant to 12
KRS 43.071, shall annually audit each county clerk concerning his or her 13
responsibilities for the collection of various fees and taxes associated with motor 14
vehicles. The secretary of the Transportation Cabinet, with the advice, consultation, 15
and approval of the Auditor, shall develop and implement an inventory and 16
accounting system which shall insure that the audits mandated in KRS 43.071 are 17
performed in accordance with generally accepted auditing standards. The 18
Transportation Cabinet shall pay for the audits mandated by KRS 43.071. 19
(6) When applied for under KRS 186.060 or 186.061, motor or vehicle numbers 20
assigned shall be distinctive to show that they were designated by the cabinet. 21
Section 4. KRS 186A.120 (Effective until January 1, 2024) is amended to read 22
as follows: 23
(1) Application for a first certificate of registration or title and plate, shall be made by 24
the owner to the county clerk of the county in which he resides, except that, if a 25
vehicle is purchased from a dealer other than in the county in which the purchaser 26
for use resides, the purchaser, or the dealer on behalf of the purchaser, may make 27 UNOFFICIAL COPY 23 RS SB 163/EN
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application for registration to the county clerk in either the county in which the 1
purchaser resides, or in the county in which the dealer's principal place of business 2
is located. 3
(2) (a) When purchaser of a vehicle upon which a lien is to be recorded is a resident 4
of a county other than that of the dealer, the application for registration or title 5
may be made to the county clerk in either county. The lien must be recorded 6
in the county of the purchaser's residence. 7
(b) If vehicle application for registration or title is presented to the county clerk of 8
dealer's location rather than purchaser's residence, the clerk shall process 9
documents in a manner similar to that of any application, with the exception 10
that the AVIS system shall be programmed in a manner that the title shall not 11
be issued from Frankfort until the lien information has been entered by the 12
county clerk of the purchaser's residence. 13
(3) (a) A new vehicle, when first registered or titled in this state, shall be registered 14
or titled in the name of the first owner for use rather than in the name of a 15
dealer who held the vehicle for sale. 16
(b) Except as otherwise provided in this chapter, a used vehicle not previously 17
registered or titled in this state shall be registered or titled in the name of the 18
first owner for use rather than in the name of a dealer who held the vehicle for 19
resale. 20
(4) If the owner of a vehicle required to be registered or titled in this state does not 21
reside in the Commonwealth, the vehicle shall be registered or titled with the 22
county clerk of the county in which the vehicle is principally operated. 23
(5) The Transportation Cabinet shall not require a member of the Armed Forces who 24
is stationed in the Commonwealth to obtain a Kentucky operator's license in 25
order to register a motor vehicle in the Commonwealth. 26
(6) If the owner of a vehicle is other than an individual and resides in the 27 UNOFFICIAL COPY 23 RS SB 163/EN
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Commonwealth, the vehicle shall be registered or titled with the county clerk in 1
either the county in which the owner resides or in the county in which the vehicle is 2
principally operated. 3
Section 5. KRS 186A.120 (Effective January 1, 2024) is amended to read as 4
follows: 5
(1) Except for applications for title using the electronic title application and registration 6
system established under KRS 186A.017, application for a first certificate of 7
registration or title and plate shall be made by the owner to the county clerk of the 8
county in which the owner resides, except that, if a vehicle is purchased from a 9
dealer other than in the county in which the purchaser for use resides, the purchaser, 10
or the dealer on behalf of the purchaser, may make application for registration to 11
the county clerk in either the county in which the purchaser resides, or in the county 12
in which the dealer's principal place of business is located. 13
(2) (a) When purchaser of a vehicle upon which a lien is to be recorded is a resident 14
of a county other than that of the dealer, the application for registration or title 15
may be made to the county clerk in either county. The lien must be recorded 16
in the county of the purchaser's residence. 17
(b) If vehicle application for registration or title is presented to the county clerk of 18
dealer's location rather than purchaser's residence, the clerk shall process 19
documents in a manner similar to that of any application, with the exception 20
that the AVIS system shall be programmed in a manner that the title shall not 21
be issued from Frankfort until the lien information has been entered by the 22
county clerk of the purchaser's residence. 23
(3) (a) A new vehicle, when first registered or titled in this state, shall be registered 24
or titled in the name of the first owner for use rather than in the name of a 25
dealer who held the vehicle for sale. 26
(b) Except as otherwise provided in this chapter, a used vehicle not previously 27 UNOFFICIAL COPY 23 RS SB 163/EN
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registered or titled in this state shall be registered or titled in the name of the 1
first owner for use rather than in the name of a dealer who held the vehicle for 2
resale. 3
(4) If the owner of a vehicle required to be registered or titled in this state does not 4
reside in the Commonwealth, the vehicle shall be registered or titled with the 5
county clerk of the county in which the vehicle is principally operated. 6
(5) The Transportation Cabinet shall not require a member of the Armed Forces who 7
is stationed in the Commonwealth to obtain a Kentucky operator's license in 8
order to register a motor vehicle in the Commonwealth. 9
(6) If the owner of a vehicle is other than an individual and resides in the 10
Commonwealth, the vehicle shall be registered or titled with the county clerk in 11
either the county in which the owner resides or in the county in which the vehicle is 12
principally operated. 13
Section 6. KRS 190.070 is amended to read as follows: 14
(1) It shall be a violation of this section for any manufacturer, distributor, factory 15
branch, or factory representative licensed under this chapter, either directly or 16
indirectly, to require any new motor vehicle dealer in the Commonwealth: 17
(a) To order or accept delivery of any motor vehicle, part or accessory thereof, 18
appliances, equipment, or any other product not required by law, which shall 19
not have been voluntarily ordered by the new motor vehicle dealer; except 20
that this section is not intended to modify or supersede any terms or 21
provisions of the franchise requiring new motor vehicle dealers to market a 22
representative line of those motor vehicles which the manufacturer or 23
distributor is publicly advertising;[.] 24
(b) To order or accept delivery of any new motor vehicle with special features, 25
appliances, accessories, or equipment not included in the list price of the 26
motor vehicle, as publicly advertised by the manufacturer or distributor;[.] 27 UNOFFICIAL COPY 23 RS SB 163/EN
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(c) To order for any person any parts, accessories, equipment, machinery tools, 1
appliance, or any commodity whatsoever not required in connection with a 2
recall campaign;[.] 3
(d) To participate monetarily in an advertising campaign or contest, any 4
promotional materials, training materials, showroom or other display 5
decorations, or materials, at the expense of the dealer, without the consent of 6
the dealer;[.] 7
(e) To enter into any agreement with the manufacturer, distributor, factory 8
branch, or factory representative, or to do any other act prejudicial to the new 9
motor vehicle dealer by threatening to cancel a franchise or any contractual 10
agreement existing between the dealer and the manufacturer, distributor, 11
factory branch, or factory representative. Notice in good faith to any dealer of 12
the dealer's violation of any terms or provisions of the dealer's franchise, or 13
contractual agreement shall not constitute a violation of this law;[.] 14
(f) To change the capital structure of the dealership, or the means by or through 15
which the dealer finances the operation of the dealership, provided that the 16
dealership at all times meets any reasonable capital standards agreed to by the 17
dealer, excluding any entity engaged primarily in providing financing or 18
insurance on motor vehicles;[.] 19
(g) To refrain from participation in the management or investment in, or the 20
acquisition of any other line of new motor vehicle or related products; 21
provided, however, that this section does not apply unless the new motor 22
vehicle dealer maintains a reasonable line of credit for each make or line of 23
new motor vehicles, and that the new motor vehicle dealer remains in 24
substantial compliance with the terms and conditions of the franchise and with 25
any reasonable facility requirements of the manufacturer, and no change is 26
made in the principal management of the new motor vehicle dealership;[.] 27 UNOFFICIAL COPY 23 RS SB 163/EN
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(h) To change the location of the dealership[,] or[ to], during the course of the 1
agreement, make any substantial alterations to the same components of the 2
dealership premises: 3
1. Within ten (10) years of a previously required improvement, alteration, 4
or construction to those same components; or[,] 5
2. When to do so, would be unreasonable in light of the current economic, 6
political, and social considerations;[.] 7
(i) To prospectively assent to a release, assignment, novation, waiver, or estoppel 8
which would relieve any person from liability to be imposed by this law, or to 9
require any controversy between a dealer and a manufacturer, distributor, or 10
representative, to be referred to any person other than the duly constituted 11
courts of the Commonwealth or the United States of America, or to the 12
commissioner, if the referral would be binding upon the dealer;[.] 13
(j) To establish or maintain exclusive facilities, personnel, display space, or 14
signage for a new motor vehicle make or line; or[.] 15
(k) To expand facilities without making available a sufficient supply of new 16
motor vehicles to support the expansion in light of the market and economic 17
conditions. 18
(2) It shall be a violation of this section for any manufacturer, distributor, factory 19
branch, or factory representative, either directly or indirectly: 20
(a) To delay, refuse, or fail to deliver motor vehicles, or vehicle parts or 21
accessories in reasonable quantities relative to the new motor vehicle dealer's 22
facilities and sales potential in the new motor vehicle dealer's relevant market 23
area, and within a reasonable time, but in any case no more than sixty (60) 24
days, after receipt of an order from a dealer having a franchise for the retail 25
sale of any new vehicle sold or distributed by the manufacturer or distributor, 26
any new vehicle, parts, or accessories to new vehicles as are covered by the 27 UNOFFICIAL COPY 23 RS SB 163/EN
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franchise, if the vehicle, parts, or accessories are publicly advertised as being 1
available for delivery or actually being delivered. The delivery to another 2
dealer of a motor vehicle of the same model and identically[similarly] 3
equipped as the vehicle ordered by a motor vehicle dealer who has not 4
received delivery thereof, but who had placed his or her written order for the 5
vehicle prior to the order of the dealer receiving the vehicle, shall be prima 6
facie evidence of a delayed delivery of, or refusal to deliver, a new motor 7
vehicle to a motor vehicle dealer within sixty (60) days, without cause. This 8
section is not violated, however, if the failure is caused by acts or causes 9
beyond the control of the manufacturer, distributor, factory branch, or factory 10
representative;[.] 11
(b) To refuse to disclose to any new motor vehicle dealer, handling the same line 12
make, the manner and mode of distribution of that line make within the 13
relevant market areas;[.] 14
(c) To prevent or attempt to prevent a dealer from receiving fair and reasonable 15
compensation for the value of the franchised business. There shall not be a 16
transfer or assignment of the dealer's franchise without the consent of the 17
manufacturer or distributor, which consent shall not be unreasonably 18
withheld;[.] 19
(d) To receive money, goods, services, or any other benefit from any vendor on 20
account of a transaction between the dealer and the vendor with whom the 21
dealer does business on the recommendation or requirement of the 22
manufacturer or distributor, other than for compensation for services 23
rendered, unless the benefit is promptly accounted for, and transmitted to 24
the dealer, excluding any entity engaged primarily in providing financing or 25
insurance on motor vehicles;[To obtain money, goods, service, or any other 26
benefit from any other person with whom the dealer does business, on account 27 UNOFFICIAL COPY 23 RS SB 163/EN
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of, or in relation to, the transaction between the dealer and the other person, 1
other than for compensation for services rendered, unless the benefit is 2
promptly accounted for, and transmitted to, the dealer, excluding any entity 3
engaged primarily in providing financing or insurance on motor vehicles.] 4
(e) To increase prices of motor vehicles which the dealer had ordered for private 5
retail customers prior to the dealer's receipt of the written official price 6
increase notification, a sales contract signed by a private retail consumer shall 7
constitute evidence of each order, provided that the vehicle is in fact delivered 8
to the customer. In the event of manufacturer price reductions, the amount of 9
a reduction received by a dealer shall be passed on to the private retail 10
consumer by the dealer, if the retail price was negotiated on the basis of the 11
previous higher price to the dealer. Price reductions shall apply to all vehicles 12
in the dealer's inventory which were subject to the price reduction. Price 13
differences applicable to new model or series motor vehicles at the time of the 14
introduction of new models or series shall not be considered a price increase 15
or price decrease. Price changes caused by the following shall not be subject 16
to the provisions of this section: 17
1. The addition to a motor vehicle of required or optional equipment 18
pursuant to state or federal law; 19
2. Revaluation of the United States dollar, in the case of foreign-make 20
vehicles or components; or 21
3. Increased transportation charges due to an increase in the rate charged 22
by common carrier or transporter;[.] 23
(f) To offer any refunds or other types of inducements to any person for the 24
purchase of new motor vehicles of a certain line make to be sold to the state or 25
any political subdivision thereof, without making the same offer, upon written 26
request, to all other dealers in the same line make within the relevant market 27 UNOFFICIAL COPY 23 RS SB 163/EN
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area;[.] 1
(g) To release to any outside party, except under subpoena, any administrative, 2
judicial or arbitration proceedings, or any business, financial, or personal 3
information which may be, from time to time, provided by the dealer to the 4
manufacturer, without the express written consent of the dealer;[.] 5
(h) To deny any dealer the right of free association with any other dealer for any 6
lawful purpose;[.] 7
(i) To establish or maintain a relationship, on the part of a manufacturer, 8
distributor, factory branch, or factory representative, where the voting rights 9
exceed a simple majority;[.] 10
(j) To own, operate, or control any motor vehicle dealership in the 11
Commonwealth; however, this subsection shall not prohibit: 12
1. The operation by any manufacturer of a dealership for a temporary 13
period, not to exceed one (1) year, during the transition from one (1) 14
owner to another; 15
2. The ownership or control of a dealership by a manufacturer while the 16
dealership is being sold under a bona fide contract or purchase option to 17
the operator of the dealership; or 18
3. The ownership, operation, or control of a dealership by a manufacturer 19
if the licensor determines after a hearing at the request of any party, that 20
there is not a dealer who is independent of the manufacturer available in 21
the community or trade area to own and operate the franchise in a 22
manner consistent with the public interest;[.] 23
(k) To compete without good faith with a new motor vehicle dealer in the same 24
line make, operating under an agreement or franchise from the 25
aforementioned manufacturer, distributor, factory branch, or factory 26
representative in the relevant market area. A manufacturer, distributor, factory 27 UNOFFICIAL COPY 23 RS SB 163/EN
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branch, or factory representative shall not, however, be deemed to be 1
competing when operating a dealership, either temporarily for a reasonable 2
period, not to exceed one (1) year, or in a bona fide retail operation which is 3
for sale to any qualified independent person at a fair and reasonable price, or 4
in a bona fide relationship in which an independent person has made a 5
significant investment, subject to loss in the dealership, and can reasonably 6
expect to acquire full ownership of such dealership on reasonable terms and 7
conditions;[.] 8
(l) To offer to sell or to sell, directly or indirectly, at retail, any new motor 9
vehicle to a consumer in the Commonwealth, except through a new motor 10
vehicle dealer holding a franchise for the line make covering the new motor 11
vehicle. The prohibition in this paragraph shall not apply to manufacturer 12
or franchisor sales of new motor vehicles to the federal government, 13
charitable organizations, or fleet customers, but shall apply to any sale of a 14
new motor vehicle to employees of the manufacturer or franchisor; 15
(m) To fail to assign any retail vehicle reservation, request to purchase, or lease 16
received by the manufacturer from a resident of the Commonwealth to the 17
franchised dealer designated by the customer or, if no designation is made, 18
to the franchised dealer in the closest proximity to the consumer, and for 19
which the franchised dealer is otherwise in compliance with the franchise 20
agreement and authorized to sell the make and model based on applicable 21
standards and requirements that include but are not limited to any facility, 22
technology, or training requirements necessary to sell or service the vehicle, 23
so long as the standards and requirements are compliant with the applicable 24
laws and regulations. Nothing in this paragraph shall require a 25
manufacturer or distributer to allocate or supply additional or supplemental 26
inventory to a franchised dealer located in the Commonwealth in order to 27 UNOFFICIAL COPY 23 RS SB 163/EN
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satisfy a retail consumer's reservation or request; 1
(n)[(l)] To unfairly discriminate among its new motor vehicle dealers with 2
respect to warranty reimbursement or authority granted its new motor vehicle 3
dealers to make warranty adjustment with retail customers;[.] 4
(o)[(m)] To fail to give consent to the sale, transfer, or exchange of the franchise 5
to a qualified buyer capable of being licensed as a new motor vehicle dealer in 6
this state; provided that consent may be withheld when in light of other 7
circumstances, granting the consent would be unreasonable; or[.] 8
(p)[(n)] To fail to be licensed as provided in this chapter, and to maintain a bond 9
in an amount as determined by this chapter. 10
(3) It shall be unlawful for a manufacturer, either directly or indirectly, or in 11
combination with or through any subsidiary or affiliated entity, to discriminate in 12
favor of one (1) dealer against another dealer holding a franchise for the same line 13
make of motor vehicle by furnishing to only one (1) dealer any of the following: 14
(a) Any vehicle, part, or other product that is not available to each dealer at the 15
same price, including discounts, rebates, incentives, or other payments or 16
allowances affecting the net price of the product; 17
(b) Any vehicle, part, or other product that is not made available to each dealer in 18
quantities proportionate to the demand for the vehicle, part, or other product; 19
(c) Any vehicle, part, or other product that is not made available to each dealer on 20
comparable delivery terms, including time of delivery after placement of an 21
order; 22
(d) Any promotional or advertising payment or allowance that is not made 23
available to each dealer on proportionally equal terms; 24
(e) Any opportunity to purchase or lease from the manufacturer the dealer's 25
facility that is not made available to each dealer on terms proportionate to the 26
respective values of its facilities; 27 UNOFFICIAL COPY 23 RS SB 163/EN
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(f) Any personnel training that is not made available to each dealer on 1
proportionally equal terms; 2
(g) Any inventory or other financing that is not made available to each dealer on 3
proportionally equal terms, except that a manufacturer, subsidiary, or 4
affiliated entity shall not be obligated to make available financing to a dealer 5
who does not meet reasonable credit standards uniformly applied by the 6
manufacturer, subsidiary, or affiliated entity; 7
(h) Any opportunity to perform work for which the dealer is entitled to be 8
compensated under this chapter that is not made available to each dealer under 9
uniformly applied standards; 10
(i) Any opportunity to sell products or services distributed by the manufacturer 11
for resale in connection with the line make of the motor vehicle covered by 12
the franchise that is not made available to each dealer on proportionally equal 13
terms; 14
(j) Any opportunity to establish an additional sales, service, or parts outlet that is 15
not made available to each dealer in whose relevant market area the sales, 16
service, or parts outlet will be located; 17
(k) Any information concerning the manufacturer's products, prices or other 18
terms of sale, or promotional programs that is not contemporaneously 19
furnished to the dealer; 20
(l) Any improvement to, or payment to the dealer for an improvement to, the 21
dealer's facilities that is not made available to each dealer on proportionally 22
equal terms; 23
(m) Any opportunity to sell or assign retail installment contracts or consumer 24
leases to the manufacturer or the manufacturer's sales finance company 25
subsidiary that is not made available to each dealer on proportionally equal 26
terms, except that a manufacturer or sales finance company shall not be 27 UNOFFICIAL COPY 23 RS SB 163/EN
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obligated to purchase any retail installment contract or consumer lease that 1
does not meet reasonable credit terms uniformly applied by the manufacturer 2
or sales finance company subsidiary; 3
(n) Any product assistance, service, or facility in connection with the franchise 4
that is not made available to each dealer on proportionally equal terms; or 5
(o) Any payment for any service or facility in connection with the franchise that 6
is not made available to each dealer on proportionally equal terms. 7
(4) It shall not be a defense to an alleged violation of subsection (3) of this section, that 8
an item or opportunity was offered to a dealer if the offer was conditioned upon the 9
dealer meeting one (1) or more requirements that are not reasonable and necessary 10
to fulfill the dealer's obligations under the franchise. The manufacturer shall have 11
the burden of proving that any requirement upon which an offer was conditioned 12
was reasonable and necessary to fulfill the dealer's obligations under the franchise 13
when the offer was made. A requirement shall not be found to be reasonable and 14
necessary to fulfill the dealer's obligations under the franchise if the manufacturer 15
cannot prove that it was within the control of each dealer to meet the requirement 16
imposed on the dealer as a condition of the offer. 17
(5) A dealer who alleges a good faith belief that the dealer has been, or is being, 18
discriminated against in violation of subsection (3) of this section, may demand in 19
writing that the manufacturer furnish the dealer with pertinent information 20
reasonably necessary for the dealer to determine if discrimination exists. If the 21
manufacturer fails to furnish the dealer with the information demanded within thirty 22
(30) days of the manufacturer's receipt of the dealer's written demand, the 23
manufacturer shall have, in any subsequent legal proceeding, the burden of proving 24
that the alleged violation has not occurred. 25
(6) Any dealer who is discriminated against by a manufacturer in violation of 26
subsection (3) of this section shall recover three (3) times an amount equal to the 27 UNOFFICIAL COPY 23 RS SB 163/EN
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value of what the dealer would have received if the manufacturer had complied 1
with subsection (3) of this section upon furnishing any item or opportunity to 2
another dealer. 3
(7) A change in ownership of a manufacturer or distributor that contemplates a 4
continuation of that line make in the state shall not directly or indirectly, through 5
actions of any parent of the manufacturer or distributor, subsidiary of the 6
manufacturer or distributor, or common entity cause a termination, cancellation, or 7
nonrenewal of a dealer agreement by a present or previous manufacturer or 8
distributor of an existing agreement unless the manufacturer or distributor offers the 9
new vehicle dealer an agreement substantially similar to that offered to other 10
dealers of the same line make. 11
Section 7. Whereas recent communications to Kentucky automobile dealers have 12
caused confusion over the ability of members of the Armed Forces stationed in 13
Kentucky to register a motor vehicle in the Commonwealth, an emergency is 14
declared to exist, and Section 4 of this Act takes effect upon its passage and 15
approval by the Governor or upon its otherwise becoming a law. 16