Kentucky Statutes 190.030 – License requirement — Application for license — Time within which license to be granted or refused — Licenses to be displayed — Administrative regulations establishing fees — Temporary sale or display — Bond — Repor…
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(1) (a) Except as provided in paragraph (b) of this subsection, a motor vehicle dealer, new, used, or auction motor vehicle dealer, nonprofit motor vehicle dealer, motor vehicle leasing dealer, restricted motor vehicle dealer, motorcycle dealer, broker, wholesaler, automotive recycling dealer, new recreational vehicle dealer, a salesperson of motor vehicles, or a salesperson of new recreational vehicles shall not engage in business in this state at any location without a license issued for that location as provided in KRS § 190.010 to
190.080.
(b) An entity identified in paragraph (a) of this subsection with an established place of business may conduct sales activities via the Internet and deliver vehicles sold or leased by the licensed dealer to a customer at the customer’s residence or other suitable location, as long as the sale, lease, or delivery is requested by the customer.
(c) If a person licensed as a motor vehicle dealer or new recreational vehicle dealer acts as a motor vehicle salesperson or a new recreational vehicle salesperson, that person shall secure a motor vehicle salesperson’s license or a new recreational vehicle salesperson’s license in addition to a license for a motor vehicle dealer or for a new recreational vehicle dealer.
(2) A manufacturer of motor vehicles, recreational vehicles, factory branch, distributor, distributor branch, or wholesaler shall not engage in business in this state without a license as provided in KRS § 190.010 to KRS § 190.080.
(3) A factory representative or distributor representative shall not engage in business in this state without a license as provided in KRS § 190.010 to KRS § 190.080.
(4) Application for license shall be made to the licensor, at a time, in a form, and containing information the licensor shall require and shall be accompanied by the required fee. The licensor may require, as part of the application process, information relating to the applicant’s solvency, financial standing, or other pertinent matter commensurate with the safeguarding of the public interest in the locality in which the applicant proposes to engage in business. The information may be considered by the licensor in determining the fitness of the applicant to engage in business as set forth in this section.
(5) All licenses shall be granted or refused within thirty (30) days after submission of a complete application and shall expire, unless revoked or suspended, on December
31 of the calendar year for which they are granted. If a complaint of unfair cancellation of dealer franchise is in the process of being heard, a replacement application for the franchise shall not be considered until a decision is rendered by the commission.
(6) (a) The commission shall promulgate administrative regulations in accordance with KRS Chapter 13A to establish annual license fees, not to exceed five
hundred dollars ($500), for:
1. New motor vehicle dealers;
2. Used motor vehicle dealers;
3. Motor vehicle leasing dealers;
4. Restricted motor vehicle dealers;
5. Motorcycle dealers;
6. Motor vehicle manufacturers and factory branches;
7. Distributors, motor vehicle auction dealers, and wholesalers;
8. Factory representatives and distributor branch representatives;
9. Automotive mobility dealers;
10. Nonprofit motor vehicle dealers;
11. Recreational vehicle manufacturers and distributors; and
12. New recreational vehicle dealers.
(b) The commission shall promulgate administrative regulations in accordance with KRS Chapter 13A to establish annual license fees, not to exceed fifty dollars ($50), for motor vehicle salespersons and new recreational vehicle salespersons.
(c) In addition to the annual license fees established under paragraph (b) of this subsection, the commission may promulgate administrative regulations in accordance with KRS Chapter 13A to establish licenses and appropriate fees for other licensee activities.
(d) A license fee imposed on motor vehicle salespersons and new recreational vehicle salespersons shall be paid by the licensed dealer for every salesperson the dealer employs.
(e) A license fee shall not be imposed on nonprofit motor vehicle dealer salespersons.
(7) (a) The licenses of dealers, manufacturers, factory branches, distributors, and distributor branches shall specify the location of the office or branch and shall be conspicuously displayed there. If the location is changed, the licensor shall endorse the change of location on the license. A licensee shall not be charged a fee for changing locations. A change of location shall require a new application.
(b) 1. A motor vehicle dealer who is not a new motor vehicle dealer may conduct a temporary sale or display in the county where the dealer is licensed to conduct business.
2. A new motor vehicle dealer may conduct a temporary sale or display in the dealer’s market as defined in KRS § 190.047(6).
3. A recreational vehicle dealer may conduct a temporary sale or display in the county where the dealer is licensed to conduct business or in any other county where there is no licensed recreational vehicle dealer.
(c) A temporary sale or display may be conducted under this subsection if the
temporary sale or display is permitted under an enabling ordinance enacted by the city, county, urban-county, or consolidated local government within whose boundaries the temporary sale or display is to be conducted. A temporary sale or display shall be advertised as temporary in nature and shall consist of a representative sampling of the inventory of each participating licensee.
(d) The provisions of this subsection shall not apply to a nonprofit motor vehicle dealer.
(8) Every salesperson, factory representative, or distributor representative shall carry his license when engaged in business, and display it upon request. The license shall name his employer; and in case of a change of employer, the salesperson shall immediately mail his license to the licensor who shall endorse the change on the license without charge.
(9) If the licensor has reasonable cause to doubt the financial responsibility or the compliance by the applicant or licensee with the provisions of this statute, the licensor may require the applicant or licensee to furnish and maintain a bond in a form, amount and with sureties up to one hundred thousand dollars ($100,000), conditioned upon the applicant or licensee complying with the provisions of the statutes applicable to the licensee. The bonds shall be executed in the name of the State of Kentucky for the benefit of any aggrieved parties, but the penalty of the bond shall not be invoked except after a court adjudication. The commission may promulgate administrative regulations to permit the applicant to submit evidence, in lieu of posting bond, that reliable financial arrangements, deposits, or commitments exist providing assurance, substantially equivalent to that afforded by a bond complying with this subsection, for payment on conditions and indemnity set forth in this subsection. The bonding requirements of this subsection shall not apply to manufacturers, factory branches, and their agents.
(10) Application for dealer’s license shall be submitted to the commission and contain information the commission may require. A motor vehicle dealer, unless licensed under KRS § 190.010 to KRS § 190.080, shall not be permitted to register, receive, or use any motor vehicle registration plates.
(11) Every motor vehicle dealer or new recreational vehicle dealer licensed in accordance with the provisions of this section shall make reports to the licensor at intervals and show information the licensor may require.
Effective: July 14, 2022
History: Amended 2022 Ky. Acts ch. 53, sec. 1, effective July 14, 2022. — Amended
2021 Ky. Acts ch. 156, sec. 15, effective June 29, 2021; and ch. 190, sec. 14, effective June 29, 2021. — Amended 2014 Ky. Acts ch. 27, sec. 16, effective January
1, 2015; and ch. 83, sec. 1, effective July 15, 2014. — Amended 2010 Ky. Acts ch.
43, sec. 3, effective July 15, 2010. — Amended 2014 Ky. Acts ch. 83, sec. 2, effective July 15, 2014. — Amended 2007 Ky. Acts ch. 125, sec. 3, effective June 26, 2007. — Amended 2003 Ky. Acts ch. 13, sec. 1, effective June 24, 2003. — Amended 2000
Ky. Acts ch. 216, sec. 1, effective July 14, 2000. — Amended 1994 Ky. Acts ch. 186, sec. 2, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 452, sec. 2, effective July 14, 1992. — Amended 1984 Ky. Acts ch. 357, sec. 3, effective July 13, 1984. — Amended 1982 Ky. Acts ch. 373, sec. 3, effective July 15, 1982; and ch. 374, sec. 6, effective July 15, 1982. — Amended 1978 Ky. Acts ch. 313, sec. 1, effective June 17,
1978. — Amended 1974 Ky. Acts ch. 74, Art. IV, sec. 20(2). — Amended 1966 Ky. Acts ch. 175, sec. 3. — Created 1956 Ky. Acts ch. 161, sec. 3.
Legislative Research Commission Note (6/29/2021). This statute was amended by 2021
Ky. Acts chs. 156 and 190. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 190, which was last enacted by the General Assembly, prevails under KRS § 446.250.
Legislative Research Commission Note (1/1/2015). This statute was amended by 2014
Ky. Acts chs. 27 and 83. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 83, which was last enacted by the General Assembly, prevails under KRS § 446.250.
190.080.
Terms Used In Kentucky Statutes 190.030
- City: includes town. See Kentucky Statutes 446.010
- Commission: means the Motor Vehicle Commission. See Kentucky Statutes 190.010
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Distributor: which means any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers, or who maintains factory representatives, or who controls any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers. See Kentucky Statutes 190.010
- Distributor branch: which means a branch office similarly maintained by a distributor or wholesaler for the same purposes. See Kentucky Statutes 190.010
- Distributor representative: which means a representative similarly employed by a distributor, distributor branch, or wholesaler. See Kentucky Statutes 190.010
- Established place of business: means a permanent, enclosed commercial building located within this state, easily accessible and open to the public at all reasonable times, and at which the business of a vehicle dealer, including the display and repair of vehicles, may be lawfully carried on in accordance with the terms of all applicable building codes, zoning, and other land use regulatory ordinances. See Kentucky Statutes 190.010
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Factory branch: which means a branch office maintained by a manufacturer for the purpose of selling, or offering for sale, new motor vehicles to a distributor, wholesaler, or new motor vehicle dealer, or for directing or supervising, in whole or in part, factory or distributor representatives, and shall further include any sales promotion organization, whether the same be a person, firm, or corporation, which is engaged in promoting the sale of new motor vehicles in this state of a particular brand or make to new motor vehicle dealers. See Kentucky Statutes 190.010
- Factory representative: which means a representative employed by a manufacturer, distributor, or factory branch for the purpose of making or promoting for the sale of his or her, its, or their new motor vehicles, or for supervising or contracting with his or her, its, or their dealers, or prospective dealers. See Kentucky Statutes 190.010
- Franchise: means the agreement or contract between any new motor vehicle manufacturer, written or otherwise, and any new motor vehicle dealer that purports to fix the legal rights and liabilities of the parties to an agreement or contract, and pursuant to which the dealer purchases and resells the franchise product, along with any addendums to the franchise agreement. See Kentucky Statutes 190.010
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Licensor: means the commission. See Kentucky Statutes 190.010
- Manufacturer: means any person, partnership, firm, association, corporation, or trust, resident or nonresident, who manufactures or assembles new motor vehicles, or imports for distribution through distributors of new motor vehicles, or any partnership, firm, association, joint venture, corporation, or trust, resident or nonresident, which is controlled by the manufacturer. See Kentucky Statutes 190.010
- Motor vehicle: means every vehicle intended primarily for use and operation on the public highways that is self-propelled, including low-speed motor vehicles as defined in KRS §. See Kentucky Statutes 190.010
- Motor vehicle dealer: means any person not excluded by subsection (3) of this section, engaged in the business of selling, offering to sell, soliciting, or advertising the same, of new or used motor vehicles, or possessing motor vehicles for the purpose of resale, either on his or her own account, or on behalf of another, either as his or her primary business or incidental thereto. See Kentucky Statutes 190.010
- Motor vehicle salesperson: means any person who is employed as a salesperson by a motor vehicle dealer to sell motor vehicles, or who is employed as an auctioneer by a motor vehicle auction dealer to sell motor vehicles at auction. See Kentucky Statutes 190.010
- Motorcycle dealer: means a motor vehicle dealer who exclusively sells, offers to sell, solicits, or advertises motorcycles, including alternative-speed motorcycles as defined in KRS §. See Kentucky Statutes 190.010
- New motor vehicle: means a vehicle that is in the possession of the manufacturer, distributor, or wholesaler, or has been sold to the holders of a valid sales and service agreement, franchise, or contract, granted by the manufacturer, distributor, or wholesaler for the sale of the make of new vehicle, which is new, and on which the original title has not been issued from the franchised dealer. See Kentucky Statutes 190.010
- New motor vehicle dealer: means a vehicle dealer who holds a valid sales and service agreement, franchise, or contract, granted by the manufacturer, distributor, or wholesaler for the sale of the manufacturer's new motor vehicles. See Kentucky Statutes 190.010
- Nonprofit motor vehicle dealer: means a nonprofit organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code that purchases motor vehicles that it may offer for purchase to clients and other individuals who meet the definition of client as defined in this section and who are referred to the organization by public or private social service agencies. See Kentucky Statutes 190.010
- Person: means a person, partnership, firm, corporation, association, trust, estate, or other legal entity. See Kentucky Statutes 190.010
- Recreational vehicle: means a vehicle that:
(a) Is primarily designed as temporary living quarters for noncommercial recreation or camping use. See Kentucky Statutes 190.010 - Sale: means the issuance, transfer, agreement for transfer, exchange, lease, pledge, hypothecation, mortgage in any form, whether by transfer in trust or otherwise, of any motor vehicle or interest in it, or of any franchise related to it, as well as any option, subscription, other contract, or solicitation looking to a sale, offer to attempt to sell in any form, whether spoken or written. See Kentucky Statutes 190.010
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Statute: A law passed by a legislature.
- Year: means calendar year. See Kentucky Statutes 446.010
(b) An entity identified in paragraph (a) of this subsection with an established place of business may conduct sales activities via the Internet and deliver vehicles sold or leased by the licensed dealer to a customer at the customer’s residence or other suitable location, as long as the sale, lease, or delivery is requested by the customer.
(c) If a person licensed as a motor vehicle dealer or new recreational vehicle dealer acts as a motor vehicle salesperson or a new recreational vehicle salesperson, that person shall secure a motor vehicle salesperson’s license or a new recreational vehicle salesperson’s license in addition to a license for a motor vehicle dealer or for a new recreational vehicle dealer.
(2) A manufacturer of motor vehicles, recreational vehicles, factory branch, distributor, distributor branch, or wholesaler shall not engage in business in this state without a license as provided in KRS § 190.010 to KRS § 190.080.
(3) A factory representative or distributor representative shall not engage in business in this state without a license as provided in KRS § 190.010 to KRS § 190.080.
(4) Application for license shall be made to the licensor, at a time, in a form, and containing information the licensor shall require and shall be accompanied by the required fee. The licensor may require, as part of the application process, information relating to the applicant’s solvency, financial standing, or other pertinent matter commensurate with the safeguarding of the public interest in the locality in which the applicant proposes to engage in business. The information may be considered by the licensor in determining the fitness of the applicant to engage in business as set forth in this section.
(5) All licenses shall be granted or refused within thirty (30) days after submission of a complete application and shall expire, unless revoked or suspended, on December
31 of the calendar year for which they are granted. If a complaint of unfair cancellation of dealer franchise is in the process of being heard, a replacement application for the franchise shall not be considered until a decision is rendered by the commission.
(6) (a) The commission shall promulgate administrative regulations in accordance with KRS Chapter 13A to establish annual license fees, not to exceed five
hundred dollars ($500), for:
1. New motor vehicle dealers;
2. Used motor vehicle dealers;
3. Motor vehicle leasing dealers;
4. Restricted motor vehicle dealers;
5. Motorcycle dealers;
6. Motor vehicle manufacturers and factory branches;
7. Distributors, motor vehicle auction dealers, and wholesalers;
8. Factory representatives and distributor branch representatives;
9. Automotive mobility dealers;
10. Nonprofit motor vehicle dealers;
11. Recreational vehicle manufacturers and distributors; and
12. New recreational vehicle dealers.
(b) The commission shall promulgate administrative regulations in accordance with KRS Chapter 13A to establish annual license fees, not to exceed fifty dollars ($50), for motor vehicle salespersons and new recreational vehicle salespersons.
(c) In addition to the annual license fees established under paragraph (b) of this subsection, the commission may promulgate administrative regulations in accordance with KRS Chapter 13A to establish licenses and appropriate fees for other licensee activities.
(d) A license fee imposed on motor vehicle salespersons and new recreational vehicle salespersons shall be paid by the licensed dealer for every salesperson the dealer employs.
(e) A license fee shall not be imposed on nonprofit motor vehicle dealer salespersons.
(7) (a) The licenses of dealers, manufacturers, factory branches, distributors, and distributor branches shall specify the location of the office or branch and shall be conspicuously displayed there. If the location is changed, the licensor shall endorse the change of location on the license. A licensee shall not be charged a fee for changing locations. A change of location shall require a new application.
(b) 1. A motor vehicle dealer who is not a new motor vehicle dealer may conduct a temporary sale or display in the county where the dealer is licensed to conduct business.
2. A new motor vehicle dealer may conduct a temporary sale or display in the dealer’s market as defined in KRS § 190.047(6).
3. A recreational vehicle dealer may conduct a temporary sale or display in the county where the dealer is licensed to conduct business or in any other county where there is no licensed recreational vehicle dealer.
(c) A temporary sale or display may be conducted under this subsection if the
temporary sale or display is permitted under an enabling ordinance enacted by the city, county, urban-county, or consolidated local government within whose boundaries the temporary sale or display is to be conducted. A temporary sale or display shall be advertised as temporary in nature and shall consist of a representative sampling of the inventory of each participating licensee.
(d) The provisions of this subsection shall not apply to a nonprofit motor vehicle dealer.
(8) Every salesperson, factory representative, or distributor representative shall carry his license when engaged in business, and display it upon request. The license shall name his employer; and in case of a change of employer, the salesperson shall immediately mail his license to the licensor who shall endorse the change on the license without charge.
(9) If the licensor has reasonable cause to doubt the financial responsibility or the compliance by the applicant or licensee with the provisions of this statute, the licensor may require the applicant or licensee to furnish and maintain a bond in a form, amount and with sureties up to one hundred thousand dollars ($100,000), conditioned upon the applicant or licensee complying with the provisions of the statutes applicable to the licensee. The bonds shall be executed in the name of the State of Kentucky for the benefit of any aggrieved parties, but the penalty of the bond shall not be invoked except after a court adjudication. The commission may promulgate administrative regulations to permit the applicant to submit evidence, in lieu of posting bond, that reliable financial arrangements, deposits, or commitments exist providing assurance, substantially equivalent to that afforded by a bond complying with this subsection, for payment on conditions and indemnity set forth in this subsection. The bonding requirements of this subsection shall not apply to manufacturers, factory branches, and their agents.
(10) Application for dealer’s license shall be submitted to the commission and contain information the commission may require. A motor vehicle dealer, unless licensed under KRS § 190.010 to KRS § 190.080, shall not be permitted to register, receive, or use any motor vehicle registration plates.
(11) Every motor vehicle dealer or new recreational vehicle dealer licensed in accordance with the provisions of this section shall make reports to the licensor at intervals and show information the licensor may require.
Effective: July 14, 2022
History: Amended 2022 Ky. Acts ch. 53, sec. 1, effective July 14, 2022. — Amended
2021 Ky. Acts ch. 156, sec. 15, effective June 29, 2021; and ch. 190, sec. 14, effective June 29, 2021. — Amended 2014 Ky. Acts ch. 27, sec. 16, effective January
1, 2015; and ch. 83, sec. 1, effective July 15, 2014. — Amended 2010 Ky. Acts ch.
43, sec. 3, effective July 15, 2010. — Amended 2014 Ky. Acts ch. 83, sec. 2, effective July 15, 2014. — Amended 2007 Ky. Acts ch. 125, sec. 3, effective June 26, 2007. — Amended 2003 Ky. Acts ch. 13, sec. 1, effective June 24, 2003. — Amended 2000
Ky. Acts ch. 216, sec. 1, effective July 14, 2000. — Amended 1994 Ky. Acts ch. 186, sec. 2, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 452, sec. 2, effective July 14, 1992. — Amended 1984 Ky. Acts ch. 357, sec. 3, effective July 13, 1984. — Amended 1982 Ky. Acts ch. 373, sec. 3, effective July 15, 1982; and ch. 374, sec. 6, effective July 15, 1982. — Amended 1978 Ky. Acts ch. 313, sec. 1, effective June 17,
1978. — Amended 1974 Ky. Acts ch. 74, Art. IV, sec. 20(2). — Amended 1966 Ky. Acts ch. 175, sec. 3. — Created 1956 Ky. Acts ch. 161, sec. 3.
Legislative Research Commission Note (6/29/2021). This statute was amended by 2021
Ky. Acts chs. 156 and 190. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 190, which was last enacted by the General Assembly, prevails under KRS § 446.250.
Legislative Research Commission Note (1/1/2015). This statute was amended by 2014
Ky. Acts chs. 27 and 83. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 83, which was last enacted by the General Assembly, prevails under KRS § 446.250.