KRS ch. 367 | Kentucky Revised Statutes, Chapter 367 — Consumer Protection

Title XXIX — Commerce and Trade

Includes enactments through the 2026 Regular Session.

The KRS database was last updated on 2026-09-01.

Title XXIX Commerce and Trade

Chapter 367 Consumer Protection

367.010 Repealed, 1972 .

[Repealed]

367.020 Repealed, 1972 .

[Repealed]

367.030 Repealed, 1972 .

[Repealed]

367.040 Repealed, 1972 .

[Repealed]

367.050 Repealed, 1972 .

[Repealed]

367.060 Repealed, 1972 .

[Repealed]

367.070 Repealed, 1972 .

[Repealed]

Consumer Protection Act Consumer Protection Act

367.110 Definitions.

As used in KRS 367.170 to 367.300:

(1) "Person" means natural persons, corporations, trusts, partnerships, incorporated or unincorporated associations, and any other legal entity.

(2) "Trade" and "commerce" means the advertising, offering for sale, or distribution of any services and any property, tangible or intangible, real, personal or mixed, and any other article, commodity, or thing of value, and shall include any trade or commerce directly or indirectly affecting the people of this Commonwealth.

(3) "Documentary material" means the original or a copy of any book, record, report, memorandum, paper, communication, tabulation, map, chart, photograph, mechanical transcription, or other tangible document or recording.

(4) "Examination" of documentary material shall include the inspection, study, or copying of any such material, and the taking of testimony under oath or acknowledgment in respect of any such documentary material or copy thereof.

History: Created 1972 Ky. Acts ch. 4, sec. 6.

367.120 Legislative intent -- Title.

(1) The General Assembly finds that the public health, welfare and interest require a strong and effective consumer protection program to protect the public interest and the well-being of both the consumer public and the ethical sellers of goods and services; toward this end, a Consumers' Advisory Council and the Office of Consumer Protection in the Office of the Attorney General are hereby created for the purpose of aiding in the development of preventive and remedial consumer protection programs and enforcing consumer protection statutes.

(2) KRS 367.110 to 367.300 may be cited as the "Consumer Protection Act."

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 14, effective April 5, 2024. -- Created 1972 Ky. Acts ch. 4, sec. 1.

367.130 Consumers' Advisory Council -- Members -- Appointment.

(1) The members of the Consumers' Advisory Council shall be sixteen (16) in number and shall be appointed by the Governor and shall include citizens of Kentucky generally knowledgeable in consumer affairs.

(2) In addition to the members appointed by the Governor, the Attorney General shall be an ex officio member and shall serve as the chairman of the Consumers' Advisory Council.

(3) The members of the council other than the Attorney General shall be appointed or reappointed by the Governor within sixty (60) days after July 1, 2000. Each member shall serve for a three (3) year term, except that of the members first appointed or reappointed after July 1, 2000, six (6) shall be appointed for a term of one (1) year, five (5) shall be appointed for a term of two (2) years, and five (5) shall be appointed for a term of three (3) years. Members of the council shall be eligible for reappointment by the Governor.

(4) Each member of the Consumers' Advisory Council shall be a resident of Kentucky, and except for the Attorney General, shall not be in the employ of the Commonwealth, except as a faculty member or on the staff of a school.

Effective: July 14, 2000

History: Amended 2000 Ky. Acts ch. 40, sec. 1, effective July 14, 2000. -- Created 1972 Ky. Acts ch. 4, sec. 2.

367.140 Consumers' Advisory Council -- Meetings -- Quorum -- Compensation.

(1) The Consumers' Advisory Council shall be attached for administrative purposes to the Department of Law, with such duties and responsibilities to act in an advisory capacity on consumer affairs as the council deems necessary and as directed by the Governor, the Attorney General or the legislative branch of government.

(2) The Consumers' Advisory Council shall meet at least four (4) times each year at such times and places as shall be designated by its chairman, and shall hold such other meetings as shall be called by the chairman. Seven (7) members of the council shall constitute a quorum. The members of the council shall receive twenty-five dollars ($25) per day for attending each meeting and shall receive their reasonable and necessary expenses in connection with the performance of their duties, to be paid out of sums appropriated to the Department of Law.

(3) The Consumers' Advisory Council shall prepare and publish annually a report on the state of consumer affairs in Kentucky.

Effective: June 17, 1978

History: Amended 1978 Ky. Acts ch. 154, sec. 40, effective June 17, 1978. -- Created 1972 Ky. Acts ch. 4, sec. 3.

367.150 Functions, powers and duties of Department of Law.

The Department of Law shall have the following functions, powers and duties:

(1) To promote the coordination of consumer protection activities of all departments, divisions and branches of state, county and city government, concerned with activities involving consumer interests;

(2) To assist, advise and cooperate with federal, state and local agencies and officials to protect and promote the interests of the consumer public; to advise the Governor and the legislature in all matters concerning consumer affairs;

(3) To conduct investigations, research, studies and analysis of matters affecting health, safety, the human environment, the marketplace and all other consumer affairs, and take appropriate action; to communicate the view of the consumer to state, county, and city agencies and officials;

(4) To study the operation of all laws, rules, regulations, orders, and state policies affecting consumers and to recommend to the Governor and to the Legislature, new legislation, rules, regulations, orders, and policies in the consumers' interest;

(5) To organize and hold conferences on problems affecting consumers; to undertake activities to encourage business, industry, the professions, and others offering goods or services to maintain high standards of honesty, fair business practices, and public responsibility in the production, promotion and sale of consumer goods and services;

(6) To provide a central clearing house of information for all citizens of the Commonwealth by collecting and compiling consumer complaints and inquiries, and forwarding them to the proper governmental agencies if appropriate; it shall be the further responsibility of the department to maintain records indicating the final disposition by the agency of any matter so referred;

(7) To organize, promote and conduct consumer education programs within the Commonwealth; to cooperate with and establish necessary liaison with consumer organizations;

(8) (a) To appear before any federal, state or local governmental branch, commission, department, rate-making or regulatory body or agency, to represent and be heard on behalf of consumers' interests; and

(b) To be made a real party in interest to any action on behalf of consumer interests involving a quasijudicial or rate-making proceeding of any state or local governmental branch, commission, department, agency, or rate-making body whenever deemed necessary and advisable in the consumers' interest by the Attorney General.

(9) To perform such other acts as may be incidental to the exercise of the functions, powers and duties set forth in KRS 367.120 to 367.300.

Effective: July 15, 1986

History: Amended 1986 Ky. Acts ch. 406, sec. 4, effective July 15, 1986. -- Created 1972 Ky. Acts ch. 4, sec. 4.

367.152 Attorney General's concurrent authority to enforce bait advertising statute.

The Attorney General shall have concurrent authority with the county attorney for the enforcement of the following statute: KRS 517.040, Bait advertising.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 193, sec. 1, effective July 15, 1994.

367.160 Cooperation of state agencies -- Access to material evidence and information by utility and health insurance intervenors.

(1) All departments, agencies, officers, and employees of the Commonwealth shall fully cooperate with the Attorney General in carrying out the functions of KRS 367.120 to 367.300.

(2) The persons designated by the Attorney General as utility consumer intervenors shall have the same access to material evidence and information of the Public Service Commission relating to any case before it as other parties to the case.

(3) The persons designated by the Attorney General as health insurance consumer intervenors shall have the same access to material evidence and information of the commissioner of the Department of Insurance relating to any health insurance rate hearings before it as other parties to the hearing.

Effective: July 15, 2010

History: Amended 2010 Ky. Acts ch. 24, sec. 1917, effective July 15, 2010. -- Amended 1996 Ky. Acts ch. 371, sec. 17, effective July 15, 1996. -- Amended 1986 Ky. Acts ch. 406, sec. 5, effective July 15, 1986. -- Amended 1976 Ky. Acts ch. 88, sec. 16, effective March 29, 1976. -- Created 1972 Ky. Acts ch. 4, sec. 5.

367.170 Unlawful acts.

(1) Unfair, false, misleading, or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful.

(2) For the purposes of this section, unfair shall be construed to mean unconscionable.

History: Amended 1976 Ky. Acts ch. 221, sec. 1. -- Created 1972 Ky. Acts ch. 4, sec. 7.

367.175 Other unlawful acts.

(1) Every contract, combination in the form of trust and otherwise, or conspiracy, in restraint of trade or commerce in this Commonwealth shall be unlawful.

(2) It shall be unlawful for any person or persons to monopolize, attempt to monopolize, or combine or conspire with any other person or persons to monopolize any part of the trade or commerce in this Commonwealth.

(3) In addition to any other penalties, a violation of this section shall also be a Class C felony.

Effective: June 29, 2023

History: Amended 2023 Ky. Acts ch. 150, sec. 4, effective June 29, 2023. -- Amended 1990 Ky. Acts ch. 443, sec. 42, effective July 13, 1990. -- Created 1976 Ky. Acts ch. 330, sec. 1.

367.176 Construction of KRS 367.175.

(1) No provision of KRS 367.175 shall be construed to make illegal the activities of any person or organization, including but not limited to any labor organization, agricultural or horticultural cooperative organization, or consumer organization, or of individual members thereof which are legitimate under the laws of this Commonwealth or the United States, or of any utility as defined in KRS 278.010(3).

(2) KRS 367.175 shall not apply to activities authorized or approved under any federal or state statute or regulation.

History: Created 1976 Ky. Acts ch. 330, sec. 3.

367.178 Repealed, 2013.

[Repealed]

367.180 Knowledge required in violation by publisher.

KRS 367.170 shall not apply to the owner or publisher of newspapers, magazines or publications wherein such advertisements appear, or to the owner or operator of a radio or television station which disseminates such advertisement when the owner, publisher or operator has no knowledge that such advertisement may be in violation of KRS 367.170.

History: Created 1972 Ky. Acts ch. 4, sec. 8.

367.190 Injunction -- Hearing.

(1) Whenever the Attorney General has reason to believe that any person is using, has used, or is about to use any method, act or practice declared by KRS 367.170 to be unlawful, and that proceedings would be in the public interest, he may immediately move in the name of the Commonwealth in a Circuit Court for a restraining order or temporary or permanent injunction to prohibit the use of such method, act or practice. The action may be brought in the Circuit Court of the county in which such person resides or has his principal place of business or in the Circuit Court of the county in which the method, act or practice declared by KRS 367.170 to be unlawful has been committed or is about to be committed; or with consent of the parties may be brought in the Franklin Circuit Court.

(2) Upon application of the Attorney General, a restraining order shall be granted whenever it reasonably appears that any person will suffer immediate harm, loss or injury from a method, act or practice prohibited by KRS 367.170. If the defendant moves for the dissolution of a restraining order issued under this section, the court shall hold a hearing within five (5) business days of the date of service of the defendant's motion to dissolve, unless a delay in hearing the cause is requested by, or otherwise caused by the defendant. If such a hearing is not held within five (5) business days, the restraining order will automatically be dissolved.

(3) In order to obtain a temporary or permanent injunction, it shall not be necessary to allege or prove that an adequate remedy at law does not exist. Further, it shall not be necessary to allege or prove that irreparable injury, loss or damage will result if the injunctive relief is denied.

History: Created 1972 Ky. Acts ch. 4, sec. 9.

367.200 Restoration of property -- Appointment of receiver.

The court may make such additional orders or judgments as may be necessary to restore to any person in interest any moneys or property, real or personal, which may have been paid out as a result of any practice declared to be unlawful by KRS 367.130 to 367.300, including the appointment of a receiver or the revocation of a license or certificate authorizing any person to engage in business in the Commonwealth, or both.

Effective: July 15, 1986

History: Amended 1986 Ky. Acts ch. 250, sec. 1, effective July 15, 1986. -- Created 1972 Ky. Acts ch. 4, sec. 10.

367.210 Powers of receiver -- Distribution of assets.

Whenever a receiver is appointed by the court pursuant to KRS 367.110 to 367.300, he shall have the power to sue for, collect, receive and take into his possession all the goods and chattels, rights and credits, moneys and effects, lands and tenements, books, records, documents, papers, choses in action, bills, notes and property of every description, derived by means of any practice declared to be illegal and prohibited by KRS 367.110 to 367.300, including property with which such property has been mingled if it cannot be identified in kind because of such commingling, and to sell, convey, and assign the same and hold and dispose of the proceeds thereof under the direction of the court. Any person who has suffered damages as a result of the use or employment of any unlawful practices and submits proof to the satisfaction of the court that he has in fact been damaged, may participate with general creditors in the distribution of the assets to the extent he has sustained out-of-pocket losses. In the case of a partnership or business entity, the receiver shall settle the estate and distribute the assets under the direction of the court. The court shall have jurisdiction of all questions arising in such proceedings and may make such orders and judgments therein as may be required.

History: Created 1972 Ky. Acts ch. 4, sec. 11.

367.220 Action for recovery of money or property -- When action may be brought.

(1) Any person who purchases or leases goods or services primarily for personal, family or household purposes and thereby suffers any ascertainable loss of money or property, real or personal, as a result of the use or employment by another person of a method, act or practice declared unlawful by KRS 367.170, may bring an action under the Rules of Civil Procedure in the Circuit Court in which the seller or lessor resides or has his principal place of business or is doing business, or in the Circuit Court in which the purchaser or lessee of goods or services resides, or where the transaction in question occurred, to recover actual damages. The court may, in its discretion, award actual damages and may provide such equitable relief as it deems necessary or proper. Nothing in this subsection shall be construed to limit a person's right to seek punitive damages where appropriate.

(2) Upon commencement of any action brought under subsection (1) of this section, the clerk of the court shall mail a copy of the complaint or other initial pleading to the Attorney General and, upon entry of any judgment or decree in the action, shall mail a copy of such judgment or decree to the Attorney General.

(3) In any action brought by a person under this section, the court may award, to the prevailing party, in addition to the relief provided in this section, reasonable attorney's fees and costs.

(4) Any permanent injunction, judgment or order of the court made under KRS 367.190 shall be prima facie evidence in an action brought under this section that the respondent used or employed a method, act or practice declared unlawful by KRS 367.170.

(5) Any person bringing an action under this section must bring such action within one

(1) year after any action of the Attorney General has been terminated or within two

(2) years after the violation of KRS 367.170, whichever is later.

History: Amended 1974 Ky. Acts ch. 308, sec. 62. -- Created 1972 Ky. Acts ch. 4, sec. 12.

367.230 Assurance of voluntary compliance.

In the administration of KRS 367.110 to 367.300, the Attorney General may accept an assurance of voluntary compliance with respect to any method, act, or practice deemed to be violative of KRS 367.110 to 367.300 from any person who has engaged or was about to engage in that method, act, or practice. This assurance shall be in writing and shall be filed with and subject to the approval of the Circuit Court in which the alleged violator resides or has his principal place of business, or the Franklin Circuit Court. An assurance of voluntary compliance shall not be considered an admission of violation for any purpose. It shall be a willful violation of KRS 367.170 if a person who enters into an assurance of voluntary compliance fails to comply. Matters thus closed may at any time be reopened by the Attorney General for further proceedings in the public interest, pursuant to KRS 367.190.

Effective: July 15, 1996

History: Amended 1996 Ky. Acts ch. 235, sec. 1, effective July 15, 1996. -- Created 1972 Ky. Acts ch. 4, sec. 13.

367.240 Investigation -- Demand for information or evidence.

(1) When the Attorney General has reason to believe that a person has engaged in, is engaging in, or is about to engage in any act or practice declared to be unlawful by KRS 367.110 to 367.300, or when he believes it to be in the public interest that an investigation should be made to ascertain whether a person in fact has engaged in, is engaging in or is about to engage in, any act or practice declared to be unlawful by KRS 367.110 to 367.300, he may execute in writing and cause to be served upon any person who is believed to have information, documentary material or physical evidence relevant to the alleged or suspected violation, an investigative demand requiring such person to furnish, under oath or otherwise, a report in writing setting forth the relevant facts and circumstances of which he has knowledge, or to appear and testify or to produce relevant documentary material or physical evidence for examination, at such reasonable time and place as may be stated in the investigative demand, concerning the advertisement, sale or offering for sale of any goods or services or the conduct of any trade or commerce that is the subject matter of the investigation. Provided however, that no person who has a place of business in Kentucky shall be required to appear or present documentary material or physical evidence outside of the county where he has his principal place of business within the Commonwealth.

(2) At any time before the return date specified in an investigative demand, or within twenty (20) days after the demand has been served, whichever period is shorter, a petition to extend the return date, or to modify or set aside the demand, stating good cause, may be filed in the Circuit Court where the person served with the demand resides or has his principal place of business or in the Franklin Circuit Court.

History: Created 1972 Ky. Acts ch. 4, sec. 14.

367.250 Subpoenas -- Oath -- Confidential information.

To accomplish the objectives and to carry out the duties prescribed by KRS 367.110 to 367.300, the Attorney General, in addition to other powers conferred upon him by KRS 367.110 to 367.300, may issue subpoenas to any person, administer an oath or affirmation to any person, or conduct hearings in aid of any investigation or inquiry, provided that information obtained pursuant to the powers conferred by KRS 367.110 to 367.300 shall not be made public or disclosed by the Attorney General or his employees beyond the extent necessary for law enforcement purposes in the public interest.

History: Created 1972 Ky. Acts ch. 4, sec. 15.

367.260 Unreasonable investigation.

Any person may apply to a Circuit Court for an appropriate order to protect such person from any unreasonable investigative action taken pursuant to KRS 367.110 to 367.300.

History: Created 1972 Ky. Acts ch. 4, sec. 16.

367.270 Impounding of evidence in matter under investigation.

Whenever the Attorney General has probable cause to believe that a person has engaged in, or is engaging in, any practice declared by KRS 367.110 to 367.300 to be unlawful and whenever the Attorney General has probable cause to believe that information will not be obtainable pursuant to KRS 367.240 and 367.250 during the course of any investigation, he may apply to a Circuit Court ex parte for an order impounding any record, book, document, account, paper or sample of merchandise which is material to the practice under investigation. Such motion shall state in writing the grounds which the Attorney General believes constitute probable cause. The Circuit Court shall specify by order the length of time for copy or inspection.

History: Created 1972 Ky. Acts ch. 4, sec. 17(3).

367.280 Service of subpoena -- Service upon persons outside Commonwealth.

(1) To the fullest extent permitted by the Constitution of the United States, service of a subpoena or a demand pursuant to KRS 367.240 and 367.250 may be had in the manner prescribed by the Kentucky Revised Statutes and the Kentucky Rules of Civil Procedure.

(2) Personal service of any process, subpoena or investigative demand pursuant to KRS 367.110 to 367.300 may be made upon any person outside of the Commonwealth if such person has engaged in conduct in violation of KRS 367.110 to 367.300 in the Commonwealth. Such persons shall be deemed to have thereby submitted themselves to the jurisdiction of the courts of the Commonwealth within the meaning of this section.

History: Created 1972 Ky. Acts ch. 4, sec. 18.

367.290 Failure to obey subpoena or investigative demand of Attorney General -- Revocation of corporate charter -- Revocation of licenses.

(1) If any person fails or refuses to file any statement or report, or to obey any subpoena or investigative demand issued by the Attorney General, the Attorney General may, after notice, apply to a Circuit Court and, after hearing thereon, request an order:

(a) Granting injunctive relief to restrain the person from engaging in the advertising or sale of any merchandise or the conduct of any trade or commerce that is involved in the alleged or suspected violation; and

(b) Vacating, annulling, or suspending the corporate charter of a corporation created by or under the laws of this Commonwealth or revoking or suspending the certificate of authority to do business in this Commonwealth of a foreign corporation or revoking or suspending any other licenses, permits or certificates issued pursuant to law to such person which are used to further the allegedly unlawful practice; and

(c) Granting such other relief as may be required, until the person files the statement or report, or obeys the subpoena or investigative demand.

(2) Prior to issuance of any final order the person charged with failing to answer the investigative demand or subpoena pursuant to KRS 367.240 or 367.250 shall be afforded an opportunity for a hearing on the merits of the demand or subpoena. Any disobedience of any final order entered under this section by any court shall be punished as a contempt thereof.

History: Created 1972 Ky. Acts ch. 4, sec. 19.

367.300 Assistance to Attorney General -- Reporting.

It shall be the duty of the Commonwealth and the county attorneys to lend to the Attorney General such assistance as the Attorney General may request in the commencement and prosecution of court actions pursuant to KRS 367.110 to 367.300, or the Commonwealth or county attorney with prior approval of the Attorney General may institute and prosecute actions hereunder in the same manner as provided for the Attorney General; provided that if an action is prosecuted by a Commonwealth attorney or county attorney alone, he shall make a full report thereon to the Attorney General, including the final disposition of the matter.

History: Created 1972 Ky. Acts ch. 4, sec. 21.

367.305 Cash rounding for certain transactions.

(1) In satisfaction of debts owed in buying or selling goods or services or related to transactions occurring in accordance with KRS Chapters 154A, 230, and 238:

(a) Rounding cash transactions to the nearest five cent ($0.05) increment may occur:

When pennies are not available to complete resolution of a transaction; and
On settlement of the final bill of sale, invoice, or fee after all individual items, duties, fees, taxes, and charges are calculated to the exact cent; and

(b) Noncash transactions shall continue to be settled to the cent without rounding.

(2) As used in this section, "the nearest five cent ($0.05) increment" means:

(a) Amounts ending in one cent ($0.01) and two cents ($0.02) are rounded down to the nearest ten cents ($0.10);

(b) Amounts ending in three cents ($0.03) and four cents ($0.04) are rounded up to the nearest five cents ($0.05);

(d) Amounts ending in eight cents ($0.08) and nine cents ($0.09) are rounded up to the nearest ten cents ($0.10); and

(e) Amounts ending in zero cents ($0.00) and five cents ($0.05) remain unchanged.

(3) Notwithstanding any other statute to the contrary, any person selling goods or services and any person making transactions in accordance with KRS Chapters 154A, 230, and 238 shall not be in violation of any requirements, laws, administrative regulations, or standards of this state or political subdivision of this state based on any action taken in compliance with this section.

Effective: July 15, 2026

History: Created 2026 Ky. Acts ch. 161, sec. 26, effective July 15, 2026.

Consumer Safeguards Consumer Safeguards

367.310 Consumer reporting agency records restriction.

No consumer reporting agency shall maintain any information in its files relating to any charge in a criminal case, in any court of this Commonwealth, unless the charge has resulted in a conviction.

Effective: July 15, 1980

History: Created 1980 Ky. Acts ch. 49, sec. 1, effective July 15, 1980.

367.320 Processing of payments by servicer of high-cost home loan.

(1) As used in this section, "servicer" means any person or entity who currently collects or processes payments on a high-cost home loan, as that term is defined in KRS 360.100, regardless of whether that person or entity is the owner, the holder, the assignee, the nominee for the loan, the beneficiary of a trust, or any person acting on behalf of such person.

(2) A servicer shall:

(a) Apply payments promptly upon receipt, so long as the residential mortgage loan is still being actively processed. If a payment is received on a Saturday, a Sunday, or any day when the servicer's principal place of business is not open or after 1 p.m. on a business day, it shall be considered promptly applied if applied on the next regular business day;

(b) Apply payments first to interest and principal currently due, then to late fees currently due, then to other fees and charges currently due, and then to additional principal, as applicable;

(c) Assess any fee which is otherwise legal under this section within thirty (30) days of the date on which the fee was accrued and disclose any assessed fee clearly and conspicuously in the next periodic statement provided to the borrower;

(d) Charge no late fee, if a payment is otherwise a full payment for the applicable period and is paid on its due date or within an applicable grace period, and the only delinquency or insufficiency of payment is attributable to any late fee or delinquency charge assessed on any earlier payment; and

(e) Make all payments from the escrow account held for the borrower for insurance, taxes, and other charges with respect to the property in a timely manner so as to ensure that no late penalties are assessed or other negative consequences result, regardless of whether the loan is delinquent unless there are not sufficient funds in the account to cover the payments, and disclose any payments from the escrow account clearly and conspicuously in the next periodic statement provided to the borrower.

Effective: April 24, 2008

History: Created 2008 Ky. Acts ch. 175, sec. 32, effective April 24, 2008.

367.350 Rebate of sale or lease price contingent on referral of additional customer prohibited.

With respect to a credit sale, cash sale or lease to a consumer, the seller or lessor may not give or offer to give a rebate or discount or otherwise pay or offer to pay value to the buyer or lessee as an inducement for a sale or lease in consideration of his giving to the seller or lessor the names of prospective purchasers or lessees, or otherwise aiding the seller or lessor in making a sale or lease to another person, if the earning of the rebate, discount or other value is contingent upon the occurrence of an event subsequent to the time the buyer or lessee agrees to buy or lease. If a buyer or lessee is induced by a violation of this section to enter into a cash or credit consumer sale or consumer lease, the agreement is unenforceable by the seller or lessor and the buyer or lessee, at his option, may rescind the agreement or retain the goods delivered and the benefit of any services performed, without any obligation to pay for them.

History: Created 1972 Ky. Acts ch. 23, sec. 1.

367.352 Prohibition against the unauthorized use of financial institution-related names, characters, and trademarks in marketing and solicitations -- Exceptions -- Enforcement and penalties -- Administrative regulations.

(1) As used in this section:

(a) 1. "Financial institution" means any bank, bank holding company, trust company, savings and loan association, savings and loan association holding company, credit union, mortgage loan company, mortgage loan broker, consumer loan company, broker-dealer, covered adviser, investment adviser, or wholly owned subsidiary of any of the foregoing, that is organized under the laws of this state, any other state, or the United States.

As used in this paragraph, "broker-dealer," "covered adviser," and "investment adviser" have the same meaning as in KRS 292.310; and

(b) "Person" has the same meaning as in KRS 367.110.

(2) Except as provided in subsection (3) of this section, a person that is not a financial institution shall not use the following in any marketing material, solicitation, or advertising distributed in this state:

(a) The name, trade name, trademark, service mark, logo, or symbol, or any combination thereof, of any financial institution; or

(b) Any name, trade name, trademark, service mark, logo, or symbol, or any combination thereof, that is similar to the name, trade name, trademark, service mark, logo, or symbol of any financial institution.

(3) Subsection (2) of this section shall not apply if:

(a) The marketing material, solicitation, or advertising is distributed with the consent of the financial institution, which may be provided by the financial institution in written or electronic format; or

(b) 1. The person includes the following notice in the marketing material, solicitation, or advertising: "This marketing material, solicitation, or advertising did not originate from, is not endorsed by, and has not been consented to by [insert name of financial institution and any affiliated trade name, trademark, service mark, logo, or symbol used in the marketing material, solicitation, or advertising]."

The notice required under subparagraph 1. of this paragraph shall be:

a. In boldface type that is not smaller than the type for any use referenced in subsection (2) of this section; and

b. In a conspicuous location:

i. On the face of the marketing material, solicitation, or advertising; and

ii. In any other area of the marketing material, solicitation, or advertising where any use referenced in subsection (2) of this section is visible or printed.

(4) (a) A violation of this section shall be deemed to be an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170.

(b) All of the remedies, powers, and duties provided to the Attorney General or any other person under KRS 367.110 to 367.300, and the penalties provided in KRS 367.990, pertaining to acts and practices declared unlawful by KRS 367.170, shall apply with equal force and effect to a violation of this section.

(5) (a) The Attorney General may institute an action in any court of competent jurisdiction against any person alleged to have violated this section.

(b) A trade organization representing one (1) or more financial institution industries may institute an action in any court of competent jurisdiction against any person alleged to have violated this section with respect to two (2) or more financial institutions that are members of the represented industry or industries.

(c) A financial institution may institute an action in any court of competent jurisdiction against any person alleged to have used the following in violation of this section:

The financial institution's name, trade name, trademark, service mark, logo, or symbol, or any combination thereof; or
Any name, trade name, trademark, service mark, logo, or symbol, or any combination thereof, that is similar to the financial institution's name, trade name, trademark, service mark, logo, or symbol.

(d) In any action brought under this subsection, if the court finds that the person has violated this section:

The plaintiff may:

a. Obtain an injunction to enjoin a continuance of the unlawful activity;

b. Recover damages at three (3) times the amount of any actual damages sustained, which shall be paid to the injured person or persons; and

c. Be awarded reasonable attorney's fees and costs; and

In addition to the remedies and penalties provided under subparagraph
of this paragraph:

a. A plaintiff who is a trade organization or financial institution may recover a statutory penalty in the amount of five thousand dollars ($5,000) per violation; and

b. The Attorney General may recover civil penalties in the amount of five thousand dollars ($5,000) per violation.

(e) It shall not be necessary that actual damages be alleged or proved in order to recover injunctive relief, attorney's fees and costs, or the statutory penalty or civil penalties referenced in paragraph (d)2. of this subsection.

(6) (a) The remedies and penalties prescribed in this section shall be cumulative.

(b) Nothing in this section shall be construed to limit or restrict the powers, duties, remedies, or penalties available to the Attorney General, the Commonwealth, or any other person under any other statutory or common law.

(7) The Attorney General may promulgate administrative regulations in accordance with KRS Chapter 13A necessary to effectuate, or as an aid to the effectuation of, the proper enforcement of this section.

Effective: April 4, 2024

History: Created 2024 Ky. Acts ch. 76, sec. 2, effective April 4, 2024.

367.354 Residential real property service agreements -- Prohibitions -- Applicability -- Enforcement and penalties -- Administrative regulations.

(1) As used in this section:

(a) "Residential real property" means real property located in this state that is:

Used primarily for personal, family, or household purposes; and
Improved by one (1) to four (4) dwelling units;

(b) "Service agreement" means an agreement under which an owner of residential real property is required, in connection with the purchase or sale of the property, to:

Pay a real estate sales commission to a specified service provider;
Use a specified service provider to list the property for sale; or
Receive other real estate brokerage services from a specified service provider; and

Is entitled to a real estate sales commission or other payment for real estate brokerage services under a service agreement; or
Is required or entitled to:

a. List residential real property for sale under a service agreement; or

b. Otherwise provide real estate brokerage services under a service agreement.

(2) A service agreement shall not:

(a) Provide for performance under the agreement, or contain any rights or obligations that may be exercised or performed, more than two (2) years after the date the agreement becomes effective, except this paragraph shall not bar enforcement of an otherwise valid agreement in accordance with KRS 413.160 or another applicable statute of limitations;

(b) Except as otherwise provided under KRS 376.075 and 426.720:

Be binding on future owners of interests in the residential real property or otherwise purport to run with the land;
Create or impose a lien, encumbrance, or other real property interest on the residential real property; or
Require or permit recording of the agreement or any notice or memorandum of the agreement;

(c) To the extent permitted under federal law, restrict the resolution of any disputes, claims, or controversies to binding arbitration or any other form of binding alternative dispute resolution;

(d) Include a waiver by the residential real property owner or owners of any rights to class action relief; or

(e) Allow for assignment of the service provider's rights under, or interest in, the agreement without notice to, and written agreement of, the residential real property owner or owners.

(3) (a) Any provision of a service agreement or a notice or memorandum of a service agreement, whether or not recorded, that violates subsection (2) of this section shall:

Be void and unenforceable; and
Not bind title to residential real property or run with the land.

(b) This subsection shall be:

Retroactively applied to service agreements, and notices or memorandums of service agreements, entered or recorded prior to April 4, 2024; and
Prospectively applied to service agreements, and notices or memorandums of service agreements, entered or recorded on or after April 4, 2024.

(4) (a) A service provider shall not, on or after April 4, 2024, record, or cause to be recorded, a service agreement or a notice or memorandum of a service agreement, except as otherwise provided in KRS 376.075 and 426.720.

(b) 1. Any service provider who violates this subsection shall be guilty of a Class B misdemeanor, unless the conduct prohibited by this subsection constitutes another crime that provides for greater punishment.

This paragraph may be enforced by the Attorney General or any Commonwealth's attorney or county attorney of appropriate jurisdiction.

(c) Any person with an interest in residential real property that is subject to a service agreement, or a notice or memorandum of a service agreement, recorded in violation of this subsection may institute an action against the service provider in any court of competent jurisdiction to recover:

Actual damages arising from the recording; and
Attorney fees and costs incurred in the action.

(5) (a) A violation of this section on or after April 4, 2024, shall be deemed to be an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170.

(6) (a) The remedies and penalties prescribed in this section shall be cumulative.

Effective: April 4, 2024

History: Created 2024 Ky. Acts ch. 76, sec. 3, effective April 4, 2024.

367.355 Violations of provisions relating to adjusters are unfair, false, misleading, or deceptive acts.

(1) (a) A violation of KRS 304.9-433, 304.9-4331, 304.9-4332, or 304.9-4333 shall be deemed to be an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170.

(2) (a) The remedies and penalties prescribed in this section shall be cumulative.

(b) This section shall not be construed to limit or restrict the powers, duties, remedies, or penalties available to the Attorney General, the Commonwealth, or any other person under any other statutory or common law.

Effective: July 15, 2026

History: Created 2026 Ky. Acts ch. 141, sec. 9, effective July 15, 2026.

367.356 Unfair, false, misleading, or deceptive acts relating to virtual currency kiosks and hardware wallets.

(1) Any of the following shall be deemed an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170:

(a) On and after April 30, 2027, a violation of any provision of Subtitle 13 of KRS Chapter 286 by a person subject to regulation as a virtual currency kiosk operator or agent under that subtitle; and

(b) A violation of KRS 369.137.

(2) All of the remedies, powers, and duties provided to the Attorney General or any other person under KRS 367.110 to 367.300, and the penalties provided in KRS 367.990, pertaining to acts and practices declared unlawful by KRS 367.170, shall apply with equal force and effect to any of the following:

(b) A violation of KRS 369.137.

(3) (a) The remedies and penalties prescribed in this section shall be cumulative.

Effective: July 15, 2026

History: Created 2026 Ky. Acts ch. 126, sec. 32, effective July 15, 2026.

367.360 Subpoenas -- Oaths -- Hearings -- Confidential information.

To accomplish the objectives and to carry out the duties prescribed by KRS 367.350 the Attorney General, in addition to other powers conferred upon him by KRS 367.990, may issue subpoenas to any person, administer an oath or affirmation to any person, or conduct hearings in aid of any investigation or inquiry, provided that information obtained pursuant to the powers conferred by this section shall not be made public or disclosed by the Attorney General or his employees beyond the extent necessary for law enforcement purposes in the public interest.

Effective: April 27, 2026

History: Amended 2026 Ky. Acts ch. 198, sec. 46, effective April 27, 2026. -- Created 1972 Ky. Acts ch. 23, sec. 3.

367.361 Definitions for section -- Prohibition against motor vehicle glass repair shop offering inducement to insured or insurance provider -- Requirements for contract for repair or replacement of damaged motor vehicle glass -- Fees -- Prohibited actions -- Civil action -- Remedies.

(1) As used in this section:

(a) The following have the same meaning as in KRS 304.20-060:

"Advanced driver assistance system";
"Motor vehicle glass";
"Motor vehicle glass repair shop";
"Person"; and
"Repair or replacement of damaged motor vehicle glass"; and

(b) "Insured" means a person that:

Has made a first-party claim for a repair or replacement of damaged motor vehicle glass under a motor vehicle insurance policy; and
Is entitled to insurance benefits or payments as a result of the claim referenced under subparagraph 1. of this paragraph.

(2) A motor vehicle glass repair shop, or any other person who is compensated for the solicitation of insurance claims, shall not offer a rebate, gift, gift card, cash, coupon, fee, prize, bonus, payment, incentive, inducement, or any other thing of value to any insured, insurance producer as defined in KRS 304.9-020, or other person in exchange for directing or making a claim under a motor vehicle insurance policy for a repair or replacement of damaged motor vehicle glass.

(3) A motor vehicle glass repair shop shall not contract with a person for a repair or replacement of damaged motor vehicle glass until:

(a) All of the following are satisfied:

The person has made a first-party claim for the repair or replacement of damaged motor vehicle glass under a motor vehicle insurance policy;
The motor vehicle glass repair shop has received a claim or referral number for the claim referenced under subparagraph 1. of this paragraph; and
The requirements of subsection (4) of this section are satisfied; or

(b) The person either:

States, in writing, that the person does not have first-party motor vehicle insurance coverage for the repair or replacement of damaged motor vehicle glass; or
Declines, in writing, to make a first-party claim for the repair or replacement of damaged motor vehicle glass under a motor vehicle insurance policy.

(4) Prior to contracting with an insured for a repair or replacement of damaged motor vehicle glass, a motor vehicle glass repair shop shall:

(a) Notify the insured:

Whether the motor vehicle has an advanced driver assistance system;
If the motor vehicle has an advanced driver assistance system:

a. Whether calibration or recalibration of the motor vehicle's advanced driver assistance system is required to:

i. Make the advanced driver assistance system operable; and

ii. Ensure that the repair or replacement of damaged motor vehicle glass is performed in a manner that meets the motor vehicle manufacturer's specifications;

b. Whether the motor vehicle glass repair shop can calibrate or recalibrate the advanced driver assistance system in a manner that meets the motor vehicle manufacturer's specifications; and

c. If the motor vehicle glass repair shop is not capable of performing a calibration or recalibration referenced in subdivision b. of this subparagraph, that the motor vehicle should be taken to the vehicle manufacturer's certified dealership or a qualified specialist capable of performing the calibration or recalibration; and

If calibration or recalibration of the motor vehicle's advanced driver assistance system is performed, that the motor vehicle glass repair shop will provide written notice to the insured:

a. As to whether the calibration or recalibration was successful; and

b. If the calibration or recalibration was not successful, that the motor vehicle should be taken to the vehicle manufacturer's certified dealership or a qualified specialist capable of performing the calibration or recalibration; and

(b) Provide the insured an invoice, which shall, at a minimum, include:

An estimate of the fees and costs that are anticipated to be charged to the insured by the motor vehicle glass repair shop for the repair or replacement of damaged motor vehicle glass;
The shop's standard fees and costs for a repair or replacement of damaged motor vehicle glass; and
Notice that the motor vehicle glass repair shop is prohibited under subsection (5)(a) of this section from charging higher fees and costs to an insured for a repair or replacement of damaged motor vehicle glass than are reasonable and customarily charged in Kentucky.

(5) A motor vehicle glass repair shop:

(a) Shall not charge higher fees and costs to an insured for a repair or replacement of damaged motor vehicle glass than are reasonable and customarily charged in Kentucky;

(b) Upon completion of a repair or replacement of damaged motor vehicle glass, shall provide an insured:

A receipt; and
For any calibration or recalibration of an advanced driver assistance system, a notice that states whether the advanced driver assistance system is in working order; and

Submit false, misleading, or incomplete documentation or information to an insured or an insured's insurer, including any agent of the insured or insurer, for a repair or replacement of damaged motor vehicle glass;
With respect to an insured's claim, or potential claim, for a repair or replacement of damaged motor vehicle glass, do the following, which results, or would result, in a higher insurance payment or a change of insurance coverage status:

a. Indicate that work was performed in a geographical area that was not the geographical area where the work occurred; or

b. Advise an insured to falsify the date of damage;

Falsely sign a work order or other insurance-related form relating to an insured's claim, or potential claim, for a repair or replacement of damaged motor vehicle glass;
Misrepresent to an insured or the insured's insurer, including any agent of the insured or insurer, the price of a proposed repair or replacement of damaged motor vehicle glass;
State that an insured's insurer has approved a repair or replacement of damaged motor vehicle glass without:

a. Verifying coverage directly with, or obtaining approval directly from, the insurer or the insurer's agent; and

b. Obtaining confirmation of the coverage or approval by facsimile, email, or other written or recorded communication;

State that a repair or replacement of damaged motor vehicle glass will be paid for entirely by an insurer and at no cost to the insured unless the coverage has been verified by the insurer or the insurer's agent; or
With respect to an insured's claim, or potential claim, for a repair or replacement of damaged motor vehicle glass:

a. Damage, or encourage an insured to damage, the motor vehicle in order to increase the scope of the repair or replacement of damaged motor vehicle glass;

b. Perform work that is clearly and substantially beyond the level of work necessary to restore the motor vehicle to a safe pre-damaged condition in accordance with accepted or approved reasonable and customary techniques for the repair or replacement of damaged motor vehicle glass; or

c. Misrepresent the motor vehicle glass repair shop's relationship to an insurer or the insurer's agent.

(6) It may be presumed that a motor vehicle glass repair shop is acting knowingly in violation of subsection (5)(c) of this section if the motor vehicle glass repair shop engages in a regular and consistent pattern of the prohibited activity.

(7) Any notice or invoice required under this section shall be in at least twelve (12) point font.

(8) (a) An insurer or insured may institute an action in any court of competent jurisdiction against any motor vehicle glass repair shop or other person alleged to have violated this section.

(b) In any action brought under this subsection, if the court finds that the motor vehicle glass repair shop or other person has violated this section, the plaintiff may:

Obtain an injunction to enjoin a continuance of any act in violation of this section;
Recover damages at two (2) times the amount of any actual economic damages sustained; and
Be awarded reasonable attorney's fees and costs.

(c) It shall not be necessary that actual damages be alleged or proved in order to recover injunctive relief or attorney's fees and costs.

(9) All of the remedies, powers, and duties delegated to the Attorney General by KRS 367.110 to 367.300, and the penalties provided in KRS 367.990, pertaining to acts and practices declared unlawful by KRS 367.170, shall apply with equal force and effect to acts and practices declared unlawful in this section.

(10) (a) The remedies and penalties prescribed in this section shall be cumulative.

(11) The Attorney General may promulgate any administrative regulations necessary to effectuate, or as an aid to the effectuation of, the proper enforcement of this section.

Effective: April 2, 2024

History: Created 2024 Ky. Acts ch. 27, sec. 3, effective April 2, 2024.

Legislative Research Commission Note (4/2/2024). 2024 Ky. Acts ch. 27, sec. 6, provides that this statute shall apply to insurance policies issued or renewed on or after April 2, 2024.

Kentucky Consumer Data Protection Act Kentucky Consumer Data Protection Act

367.3611 Definitions for KRS 367.3611 to 367.3629. (Effective until July 1, 2027)

As used in KRS 367.3611 to 367.3629:

(1) "Affiliate" means a legal entity that controls, is controlled by, or is under common control with another legal entity or shares common branding with another legal entity. For the purposes of this definition, "control" or "controlled" means:

(a) Ownership of, or the power to vote, more than fifty percent (50%) of the outstanding shares of any class of voting security of a company;

(b) Control in any manner over the election of a majority of the directors or of individuals exercising similar functions; or

(2) "Authenticate" means verifying through reasonable means that the consumer entitled to exercise his or her consumer rights in KRS 367.3615 is the same consumer exercising such consumer rights with respect to the personal data at issue;

(3) "Biometric data" means data generated by automatic measurements of an individual's biological characteristics, such as a fingerprint, voiceprint, eye retinas, irises, or other unique biological patterns or characteristics that are used to identify a specific individual. Biometric data does not include a physical or digital photograph, a video or audio recording, or data generated therefrom, unless that data is generated to identify a specific individual or information collected, used, or stored for health care treatment, payment, or operations under HIPAA;

(4) "Business associate" has the same meaning as established in 45 C.F.R. sec. 160.103 pursuant to HIPAA;

(5) "Child" has the same meaning as in 15 U.S.C. sec. 6501;

(6) "Consent" means a clear affirmative act signifying a consumer's freely given, specific, informed, and unambiguous agreement to process personal data relating to the consumer. Consent may include a written statement, written by electronic means or any other unambiguous affirmative action;

(7) "Consumer" means a natural person who is a resident of the Commonwealth of Kentucky acting only in an individual context. Consumer does not include a natural person acting in a commercial or employment context;

(8) "Controller" means the natural or legal person that, alone or jointly with others, determines the purpose and means of processing personal data;

(9) "Covered entity" has the same meaning as established in 45 C.F.R. sec. 160.103 pursuant to HIPAA;

(10) "Decisions that produce legal or similarly significant effects concerning a consumer" means a decision made by a controller that results in the provision or denial by the controller of financial and lending services, housing, insurance, education enrollment, criminal justice, employment opportunities, health care services, or access to basic necessities like food and water;

(11) "De-identified data" means data that cannot reasonably be linked to an identified or identifiable natural person or a device linked to a person;

(12) "Fund" means the consumer privacy fund established in KRS 367.3629;

(13) "Health care provider" means:

(a) Any health facility as defined in KRS 216B.015;

(b) Any person or entity providing health care or health services, including those licensed, certified, or registered under, or subject to, KRS 194A.700 to 194A.729 or KRS Chapter 310, 311, 311A, 311B, 312, 313, 314, 314A, 315, 319, 319A, 319B, 319C, 320, 327, 333, 334A, or 335;

(c) The current and former employers, officers, directors, administrators, agents, or employees of those entities listed in paragraphs (a) and (b) of this subsection; or

(d) Any person acting within the course and scope of his or her office, employment, or agency relating to a health care provider;

(14) "Health record" means a record, other than for financial or billing purposes, relating to an individual, kept by a health care provider as a result of the professional relationship established between the health care provider and the individual;

(15) "HIPAA" means the federal Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191;

(16) "Identified or identifiable natural person" means a person who can be readily identified directly or indirectly;

(17) "Institution of higher education" means an educational institution which:

(a) Admits as regular students only individuals having a certificate of graduation from a high school or the recognized equivalent of such a certificate;

(b) Is legally authorized in this state to provide a program of education beyond high school;

(c) Provides an educational program for which it awards a bachelor's or higher degree, or provides a program which is acceptable for full credit toward such a degree, a program of postgraduate or postdoctoral studies, or a program of training to prepare students for gainful employment in a recognized occupation; and

(d) Is a public or other nonprofit institution;

(18) "Nonprofit organization" means any incorporated or unincorporated entity that:

(a) Is operating for religious, charitable, or educational purposes; and

(b) Does not provide net earnings to, or operate in any manner that inures to the benefit of, any officer, employee, or shareholder of the entity;

(19) "Personal data" means any information that is linked or reasonably linkable to an identified or identifiable natural person. Personal data does not include de-identified data or publicly available information;

(20) "Precise geolocation data" means information derived from technology, including but not limited to global positioning system level latitude and longitude coordinates or other mechanisms, that directly identifies the specific location of a natural person with precision and accuracy within a radius of one thousand seven hundred fifty (1,750) feet. Precise geolocation data does not include the content of communications or any data generated by or connected to advanced utility metering infrastructure systems or equipment for use by a utility;

(21) "Process" or "processing" means any operation or set of operations performed, whether by manual or automated means, on personal data or on sets of personal data, including but not limited to the collection, use, storage, disclosure, analysis, deletion, or modification of personal data;

(22) "Processor" means a natural or legal entity that processes personal data on behalf of a controller;

(23) "Profiling" means any form of automated processing performed on personal data to evaluate, analyze, or predict personal aspects related to an identified or identifiable natural person's economic situation, health, personal preferences, interests, reliability, behavior, location, or movements;

(24) "Protected health information" means the same as established in 45 C.F.R. sec. 160.103 pursuant to HIPAA;

(25) "Pseudonymous data" means personal data that cannot be attributed to a specific natural person without the use of additional information, provided that the additional information is kept separately and is subject to appropriate technical and organizational measures to ensure that the personal data is not attributed to an identified or identifiable natural person;

(26) "Publicly available information" means information that is lawfully made available through federal, state, or local government records, or information that a business has a reasonable basis to believe is lawfully made available to the general public through widely distributed media, by the consumer, or by a person to whom the consumer has disclosed the information, unless the consumer has restricted the information to a specific audience;

(27) "Sale of personal data" means the exchange of personal data for monetary consideration by the controller to a third party. Sale of personal data does not include:

(a) The disclosure of personal data to a processor that processes the personal data on behalf of the controller;

(b) The disclosure of personal data to a third party for purposes of providing a product or service requested by the consumer;

(d) The disclosure of information that the consumer:

Intentionally made available to the general public via a channel of mass media; and
Did not restrict to a specific audience; or

(e) The disclosure or transfer of personal data to a third party as an asset that is part of a proposed or actual merger, acquisition, bankruptcy, or other transaction in which the third party assumes control of all or part of the controller's assets;

(28) "Sensitive data" means a category of personal data that includes:

(a) Personal data indicating racial or ethnic origin, religious beliefs, mental or physical health diagnosis, sexual orientation, or citizenship or immigration status;

(b) The processing of genetic or biometric data that is processed for the purpose of uniquely identifying a specific natural person;

(d) Precise geolocation data;

(29) "State agency" means all departments, offices, commissions, boards, institutions, and political and corporate bodies of the state, including the offices of the clerk of the Supreme Court, clerks of the appellate courts, the several courts of the state, and the legislature, its committees, or commissions;

(30) "Targeted advertising" means displaying advertisements to a consumer where the advertisement is selected based on personal data obtained or inferred from that consumer's activities over time and across nonaffiliated websites or online applications to predict that consumer's preferences or interests. "Targeted advertising" does not include:

(a) Advertisements based on activities within a controller's own or affiliated websites or online applications;

(b) Advertisements based on the context of a consumer's current search query, visit to a website, or online application;

(d) Processing personal data solely for measuring or reporting advertising performance, reach, or frequency;

(31) "Third party" means a natural or legal person, public authority, agency, or body other than the consumer, controller, processor, or an affiliate of the processor or the controller; and

(32) "Trade secret" has the same meaning as in KRS 365.880.

Effective: January 1, 2026

History: Created 2024 Ky. Acts ch. 72, sec. 1, effective January 1, 2026.

Legislative Research Commission Note (1/1/2026). Under the authority of KRS 7.136, the reviser of statutes has renumbered the subsections in this statute during codification to place the terms in alphabetical order. The words in the text were not changed.

367.3611 Definitions for KRS 367.3611 to 367.3629. (Effective July 1, 2027)

As used in KRS 367.3611 to 367.3629:

(a) Ownership of, or the power to vote, more than fifty percent (50%) of the outstanding shares of any class of voting security of a company;

(b) Control in any manner over the election of a majority of the directors or of individuals exercising similar functions; or

(3) "Automatic content recognition data":

(a) Means data about a consumer's content viewing history collected through the use of technology that is embedded or operated through a smart television or smart monitor, integrated with internet connectivity and an operating system that identifies, in real time, the specific content displayed by analyzing audio or video fingerprints, including but not limited to content received through broadcast, cable, satellite, streaming services, or external inputs, through digital fingerprinting, watermark detection, or similar comparison techniques; and

(b) Does not include data:

Collected about a consumer's interactions with content provided by the controller's own services;
Generated in the course of providing a feature or service requested by a consumer; or
Collected for the purpose of enforcing terms of service;

(4) "Biometric data" means data generated by automatic measurements of an individual's biological characteristics, such as a fingerprint, voiceprint, eye retinas, irises, or other unique biological patterns or characteristics that are used to identify a specific individual. Biometric data does not include a physical or digital photograph, a video or audio recording, or data generated therefrom, unless that data is generated to identify a specific individual or information collected, used, or stored for health care treatment, payment, or operations under HIPAA;

(5) "Business associate" has the same meaning as established in 45 C.F.R. sec. 160.103 pursuant to HIPAA;

(6) "Child" has the same meaning as in 15 U.S.C. sec. 6501;

(7) "Consent" means a clear affirmative act signifying a consumer's freely given, specific, informed, and unambiguous agreement to process personal data relating to the consumer. Consent may include a written statement, written by electronic means or any other unambiguous affirmative action;

(8) "Consumer" means a natural person who is a resident of the Commonwealth of Kentucky acting only in an individual context. Consumer does not include a natural person acting in a commercial or employment context;

(9) "Controller" means the natural or legal person that, alone or jointly with others, determines the purpose and means of processing personal data;

(10) "Covered entity" has the same meaning as established in 45 C.F.R. sec. 160.103 pursuant to HIPAA;

(11) "Decisions that produce legal or similarly significant effects concerning a consumer" means a decision made by a controller that results in the provision or denial by the controller of financial and lending services, housing, insurance, education enrollment, criminal justice, employment opportunities, health care services, or access to basic necessities like food and water;

(12) "De-identified data" means data that cannot reasonably be linked to an identified or identifiable natural person or a device linked to a person;

(13) "Fund" means the consumer privacy fund established in KRS 367.3629;

(14) "Health care provider" means:

(a) Any health facility as defined in KRS 216B.015;

(c) The current and former employers, officers, directors, administrators, agents, or employees of those entities listed in paragraphs (a) and (b) of this subsection; or

(d) Any person acting within the course and scope of his or her office, employment, or agency relating to a health care provider;

(15) "Health record" means a record, other than for financial or billing purposes, relating to an individual, kept by a health care provider as a result of the professional relationship established between the health care provider and the individual;

(16) "HIPAA" means the federal Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191;

(17) "Identified or identifiable natural person" means a person who can be readily identified directly or indirectly;

(18) "Institution of higher education" means an educational institution which:

(a) Admits as regular students only individuals having a certificate of graduation from a high school or the recognized equivalent of such a certificate;

(b) Is legally authorized in this state to provide a program of education beyond high school;

(d) Is a public or other nonprofit institution;

(19) "Nonprofit organization" means any incorporated or unincorporated entity that:

(a) Is operating for religious, charitable, or educational purposes; and

(b) Does not provide net earnings to, or operate in any manner that inures to the benefit of, any officer, employee, or shareholder of the entity;

(20) "Personal data" means any information that is linked or reasonably linkable to an identified or identifiable natural person. Personal data does not include de-identified data or publicly available information;

(21) "Precise geolocation data" means information derived from technology, including but not limited to global positioning system level latitude and longitude coordinates or other mechanisms, that directly identifies the specific location of a natural person with precision and accuracy within a radius of one thousand seven hundred fifty (1,750) feet. Precise geolocation data does not include the content of communications or any data generated by or connected to advanced utility metering infrastructure systems or equipment for use by a utility;

(22) "Process" or "processing" means any operation or set of operations performed, whether by manual or automated means, on personal data or on sets of personal data, including but not limited to the collection, use, storage, disclosure, analysis, deletion, or modification of personal data;

(23) "Processor" means a natural or legal entity that processes personal data on behalf of a controller;

(24) "Profiling" means any form of automated processing performed on personal data to evaluate, analyze, or predict personal aspects related to an identified or identifiable natural person's economic situation, health, personal preferences, interests, reliability, behavior, location, or movements;

(25) "Protected health information" means the same as established in 45 C.F.R. sec. 160.103 pursuant to HIPAA;

(26) "Pseudonymous data" means personal data that cannot be attributed to a specific natural person without the use of additional information, provided that the additional information is kept separately and is subject to appropriate technical and organizational measures to ensure that the personal data is not attributed to an identified or identifiable natural person;

(27) "Publicly available information" means information that is lawfully made available through federal, state, or local government records, or information that a business has a reasonable basis to believe is lawfully made available to the general public through widely distributed media, by the consumer, or by a person to whom the consumer has disclosed the information, unless the consumer has restricted the information to a specific audience;

(28) "Sale of personal data" means the exchange of personal data for monetary consideration by the controller to a third party. Sale of personal data does not include:

(a) The disclosure of personal data to a processor that processes the personal data on behalf of the controller;

(b) The disclosure of personal data to a third party for purposes of providing a product or service requested by the consumer;

(d) The disclosure of information that the consumer:

Intentionally made available to the general public via a channel of mass media; and
Did not restrict to a specific audience; or

(29) "Sensitive data" means a category of personal data that includes:

(a) Personal data indicating racial or ethnic origin, religious beliefs, mental or physical health diagnosis, sexual orientation, or citizenship or immigration status;

(b) The processing of genetic or biometric data that is processed for the purpose of uniquely identifying a specific natural person;

(d) Precise geolocation data;

(30) "Smart monitor":

(a) Means a digital, display device that integrates hardware and software components to enable:

Internet connectivity;
Application execution; and
Media content streaming independently of an external computer or media source; and

(b) Does not include a voice assistant device or mobile device;

(31) "State agency" means all departments, offices, commissions, boards, institutions, and political and corporate bodies of the state, including the offices of the clerk of the Supreme Court, clerks of the appellate courts, the several courts of the state, and the legislature, its committees, or commissions;

(32) "Targeted advertising" means displaying advertisements to a consumer where the advertisement is selected based on personal data obtained or inferred from that consumer's activities over time and across nonaffiliated websites or online applications to predict that consumer's preferences or interests. "Targeted advertising" does not include:

(a) Advertisements based on activities within a controller's own or affiliated websites or online applications;

(b) Advertisements based on the context of a consumer's current search query, visit to a website, or online application;

(d) Processing personal data solely for measuring or reporting advertising performance, reach, or frequency;

(33) "Third party" means a natural or legal person, public authority, agency, or body other than the consumer, controller, processor, or an affiliate of the processor or the controller; and

(34) "Trade secret" has the same meaning as in KRS 365.880.

Effective: July 1, 2027

History: Amended 2026 Ky. Acts ch. 118, sec. 1, effective July 1, 2027. -- Created 2024 Ky. Acts ch. 72, sec. 1, effective January 1, 2026.

367.3613 Application -- Limitations -- Information and data exemptions -- Compliance with federal children's online privacy laws.

(1) KRS 367.3611 to 367.3629 apply to persons that conduct business in the Commonwealth or produce products or services that are targeted to residents of the Commonwealth and that during a calendar year control or process personal data of at least:

(a) One hundred thousand (100,000) consumers; or

(b) Twenty-five thousand (25,000) consumers and derive over fifty percent (50%) of gross revenue from the sale of personal data.

(2) KRS 367.3611 to 367.3629 shall not apply to any:

(a) City, state agency, or any political subdivision of the state;

(b) Financial institutions, their affiliates, or data subject to Title V of the federal Gramm-Leach-Bliley Act, 15 U.S.C. sec. 6801 et seq.;

(c) Covered entity or business associate governed by the privacy, security, and breach notification rules issued by the United States Department of Health and Human Services, 45 C.F.R. pts. 160 and 164 established pursuant to HIPAA;

(d) Nonprofit organization;

(e) Institution of higher education;

(f) Organization that:

Does not provide net earnings to, or operate in any manner that inures to the benefit of, any officer, employee, or shareholder of the entity; and
Is an entity such as those recognized under KRS 304.47-060(1)(e), so long as the entity collects, processes, uses, or shares data solely in relation to identifying, investigating, or assisting:

a. Law enforcement agencies in connection with suspected insurance-related criminal or fraudulent acts; or

b. First responders in connection with catastrophic events; or

(g) Small telephone utility as defined in KRS 278.516, a Tier III CMRS provider as defined in KRS 65.7621, or a municipally owned utility that does not sell or share personal data with any third-party.

(3) The following information and data are exempt from KRS 367.3611 to 367.3629:

(a) Protected health information under HIPAA;

(b) Health records;

(d) Identifiable private information for purposes of the federal policy for the protection of human subjects under 45 C.F.R. pt. 46; identifiable private information that is otherwise information collected as part of human subjects research pursuant to the good clinical practice guidelines issued by the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use; the protection of human subjects under 21 C.F.R. pts. 50 and 56; or personal data used or shared in research conducted in accordance with the requirements set forth in KRS 367.3611 to 367.3629, or other research conducted in accordance with applicable law;

(e) Information and documents created for purposes of the federal Health Care Quality Improvement Act of 1986, 42 U.S.C. sec. 11101 et seq.;

(f) Patient safety work product for purposes of the federal Patient Safety and Quality Improvement Act, 42 U.S.C. sec. 299b-21 et seq.;

(g) Information derived from any of the health care-related information listed in this subsection that is de-identified in accordance with the requirements for de-identification pursuant to HIPAA;

(h) Information originating from, and intermingled to be indistinguishable from, or information treated in the same manner as information exempt under this subsection that is maintained by a covered entity or business associate, or a program or qualified service organization as defined by 42 C.F.R. sec. 2.11;

(i) Information collected by a health care provider who is a covered entity that maintains protected health information in accordance with HIPAA and related regulations, 45 C.F.R. sec. pts. 160, 162, and 164;

(j) Information included in a limited data set as described in 45 C.F.R. sec. 164.514(e), to the extent the information is used, disclosed, and maintained as specified in 45 C.F.R. sec. 164.514(e);

(k) Information used only for public health activities and purposes as authorized by HIPAA;

(l) The collection, maintenance, disclosure, sale, communication, or use of any personal information bearing on a consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living by a consumer reporting agency, furnisher, or user that provides information for use in a consumer report, and by a user of a consumer report, but only to the extent that such activity is regulated by and authorized under the federal Fair Credit Reporting Act, 15 U.S.C. sec. 1681 et seq.;

(m) Personal data collected, processed, sold, or disclosed in compliance with the federal Driver's Privacy Protection Act of 1994, 18 U.S.C. sec. 2721 et seq.;

(n) Personal data regulated by the federal Family Educational Rights and Privacy Act, 20 U.S.C. sec. 1232g et seq.;

(o) Personal data collected, processed, sold, or disclosed in compliance with the federal Farm Credit Act, 12 U.S.C. sec. 2001 et seq.;

(p) Data processed or maintained:

In the course of an individual applying to, employed by, or acting as an agent or independent contractor of a controller, processor, or third party, to the extent that the data is collected and used within the context of that role;
As the emergency contact information of an individual used for emergency contact purposes; or
That is necessary to retain to administer benefits for another individual relating to the individual under subparagraph 1. of this paragraph and used for the purposes of administering those benefits;

(q) Data processed by a utility, an affiliate of a utility, or a holding company system organized specifically for the purpose of providing goods or services to a utility as defined in KRS 278.010. For purposes of this paragraph, "holding company system" means two (2) or more affiliated persons, one (1) or more of which is a utility; and

(r) Personal data collected and used for purposes of federal policy under the Combat Methamphetamine Epidemic Act of 2005.

(4) Controllers and processors that comply with the verifiable parental consent requirements of the Children's Online Privacy Protection Act, 15 U.S.C. sec. 6501 et seq., shall be deemed compliant with any obligation to obtain parental consent under KRS 367.3611 to 367.3629.

Effective: January 1, 2026

History: Amended 2025 Ky. Acts ch. 13, sec. 1, effective January 1, 2026. -- Created 2024 Ky. Acts ch. 72, sec. 2, effective January 1, 2026.

367.3615 Consumer rights request -- Controller compliance -- Requirements -- Appeal process.

(1) A consumer may invoke the consumer rights authorized pursuant to this section at any time by submitting a request to a controller, via the means specified by the controller pursuant to KRS 367.3617, specifying the consumer rights the consumer wishes to invoke. A child's parent or legal guardian may invoke such consumer rights on behalf of the child regarding processing personal data belonging to the child.

(2) A controller shall comply with an authenticated consumer request to exercise the right to:

(a) Confirm whether or not a controller is processing the consumer's personal data and to access the personal data, unless the confirmation and access would require the controller to reveal a trade secret;

(b) Correct inaccuracies in the consumer's personal data, taking into account the nature of the personal data and the purposes of processing the data;

(d) Obtain a copy of the consumer's personal data that the consumer previously provided to the controller in a portable and, to the extent technically practicable, readily usable format that allows the consumer to transmit the data to another controller without hindrance, where the processing is carried out by automated means. The controller shall not be required to reveal any trade secrets; and

(e) Opt out of the processing of personal data for purposes of targeted advertising, the sale of personal data, or profiling in furtherance of decisions that produce legal or similarly significant effects concerning the consumer.

(3) Except as otherwise provided in KRS 367.3611 to 367.3629, a controller shall comply with a request by a consumer to exercise the consumer rights pursuant to this section as follows:

(a) A controller shall respond to the consumer without undue delay, but in all cases within forty-five (45) days of receipt of the request submitted pursuant to the methods described in this section. The response period may be extended once by forty-five (45) additional days when reasonably necessary, taking into consideration the complexity and number of the consumer's requests, so long as the controller informs the consumer of any extension within the initial forty-five (45) day response period, together with the reason for the extension;

(b) If a controller declines to take action regarding the consumer's request, the controller shall inform the consumer without undue delay, but no later than forty-five (45) days after receipt of the request, of the justification for declining to take action and instructions on how to appeal the decision;

(c) Information provided in response to a consumer request shall be provided by a controller free of charge, up to twice annually per consumer. If requests from a consumer are excessive, repetitive, technically infeasible, or manifestly unfounded, the controller may charge the consumer a reasonable fee to cover the administrative costs of complying with the request or decline to act on the request. The controller bears the burden of demonstrating the excessive, repetitive, technically infeasible, or manifestly unfounded nature of the request;

(d) If a controller is unable to authenticate the request using commercially reasonable efforts, the controller shall not be required to comply with a request to initiate an action under subsection (1) of this section and may request that the consumer provide additional information reasonably necessary to authenticate the consumer and the consumer's request; and

(e) A controller that has obtained personal data about a consumer from a source other than the consumer shall be deemed in compliance with a consumer's request to delete such data pursuant to subsection (2)(c) of this section by:

Retaining a record of the deletion request and the minimum data necessary for the purpose of ensuring the consumer's personal data remains deleted from the business' records and not using the retained data for any other purpose pursuant to the provisions of KRS 367.3611 to 367.3629; or
Opting the consumer out of the processing of the personal data for any purpose except for those exempted pursuant to KRS 367.3613.

(4) A controller shall establish a process for a consumer to appeal the controller's refusal to take action on a request within a reasonable period of time after the consumer's receipt of the decision pursuant to subsection (3)(b) of this section. The appeal process shall be conspicuously available and similar to the process for submitting requests to initiate action pursuant to this section. Within sixty (60) days of receipt of an appeal, a controller shall inform the consumer in writing of any action taken or not taken in response to the appeal, including a written explanation of the reasons for the decisions. If the appeal is denied, the controller shall also provide the consumer with an online mechanism, if available, or other method through which the consumer may contact the Attorney General to submit a complaint.

Effective: January 1, 2026

History: Created 2024 Ky. Acts ch. 72, sec. 3, effective January 1, 2026.

367.3617 Limitations on the collection and use of personal data by a controller -- Waiver of consumer rights contrary to public policy -- Privacy notice -- Notice for sale of personal data to third party -- Process for consumers to exercise consumer rights requirement. (Effective until July 1, 2027)

(1) A controller shall:

(a) Limit the collection of personal data to what is adequate, relevant, and reasonably necessary in relation to the purposes for which the data is processed as disclosed to the consumer;

(b) Except as otherwise provided in this section, not process personal data for purposes that are neither reasonably necessary to nor compatible with the disclosed purposes for which the personal data is processed as disclosed to the consumer, unless the controller obtains the consumer's consent;

(c) Establish, implement, and maintain reasonable administrative, technical, and physical data security practices to protect the confidentiality, integrity, and accessibility of personal data. The data security practices shall be appropriate to the volume and nature of the personal data at issue;

(d) Not process personal data in violation of state and federal laws that prohibit unlawful discrimination against consumers. A controller shall not discriminate against a consumer for exercising any of the consumer rights contained in KRS 367.3615, including denying goods or services, charging different prices or rates for goods or services, or providing a different level of quality of goods and services to the consumer. However, nothing in this paragraph shall be construed to require a controller to provide a product or service that requires the personal data of a consumer that the controller does not collect or maintain, or to prohibit a controller from offering a different price, rate, level, quality, or selection of goods or services to a consumer, including offering goods or services for no fee, if the offer is related to a consumer's voluntary participation in a bona fide loyalty, rewards, premium features, discounts, or club card program; and

(e) Not process sensitive data concerning a consumer without obtaining the consumer's consent, or, in the case of the processing of sensitive data collected from a known child, process the data in accordance with the federal Children's Online Privacy Protection Act, 15 U.S.C. sec. 6501 et seq.

(2) Any provision of a contract or agreement of any kind that purports to waive or limit in any way consumer rights pursuant to KRS 367.3615 shall be deemed contrary to public policy and shall be void and unenforceable.

(3) Controllers shall provide consumers with a reasonably accessible, clear, and meaningful privacy notice that includes:

(a) The categories of personal data processed by the controller;

(b) The purpose for processing personal data;

(c) How consumers may exercise their consumer rights pursuant to KRS 367.3615, including how a consumer may appeal a controller's decision with regard to the consumer's request;

(d) The categories of personal data that the controller shares with third parties, if any; and

(e) The categories of third parties, if any, with whom the controller shares personal data.

(4) If a controller sells personal data to third parties or processes personal data for targeted advertising, the controller shall clearly and conspicuously disclose such activity, as well as the manner in which a consumer may exercise the right to opt out of processing.

(5) A controller shall establish, and shall describe in a privacy notice, one (1) or more secure and reliable means for consumers to submit a request to exercise their consumer rights under KRS 367.3615. The different ways to submit a request by a consumer shall take into account the ways in which consumers normally interact with the controller, the need for secure and reliable communication of such requests, and the ability of the controller to authenticate the identity of the consumer making the request. Controllers shall not require a consumer to create a new account in order to exercise consumer rights pursuant to KRS 367.3615 but may require a consumer to use an existing account.

Effective: January 1, 2026

History: Created 2024 Ky. Acts ch. 72, sec. 4, effective January 1, 2026.

367.3617 Limitations on the collection and use of personal data by a controller -- Waiver of consumer rights contrary to public policy -- Privacy notice -- Notice for sale of personal data to third party -- Process for consumers to exercise consumer rights requirement. (Effective July 1, 2027)

(1) A controller shall:

(a) Limit the collection of personal data to what is adequate, relevant, and reasonably necessary in relation to the purposes for which the data is processed as disclosed to the consumer;

(f) Not collect automatic content recognition data without a consumer's consent.

(3) Controllers shall provide consumers with a reasonably accessible, clear, and meaningful privacy notice that includes:

(a) The categories of personal data processed by the controller;

(b) The purpose for processing personal data;

(c) How consumers may exercise their consumer rights pursuant to KRS 367.3615, including how a consumer may appeal a controller's decision with regard to the consumer's request;

(d) The categories of personal data that the controller shares with third parties, if any; and

(e) The categories of third parties, if any, with whom the controller shares personal data.

Effective: July 1, 2027

History: Amended 2026 Ky. Acts ch. 118, sec. 2, effective July 1, 2027. -- Created 2024 Ky. Acts ch. 72, sec. 4, effective January 1, 2026.

367.3619 Data processing responsibilities to controller -- Contract requirements between controller and processor.

(1) A processor shall adhere to the instructions of a controller and shall assist the controller in meeting its obligations under KRS 367.3611 to 367.3629. Such assistance shall include:

(a) Taking into account the nature of processing and the information available to the processor, by appropriate technical and organizational measures, insofar as this is reasonably practicable, to fulfill the controller's obligation to respond to consumer rights requests pursuant to KRS 367.3615;

(b) Taking into account the nature of processing and the information available to the processor, by assisting the controller in meeting the controller's obligations in relation to the security of processing the personal data and in relation to the notification of a breach of the security of the system of the processor pursuant to KRS 365.732; and

(c) Providing necessary information to enable the controller to conduct and document data protection assessments pursuant to KRS 367.3621.

(2) A contract between a controller and a processor shall govern the processor's data processing procedures with respect to processing performed on behalf of the controller. The contract shall be binding and shall clearly set forth instructions for processing personal data, the nature and purpose of processing, the type of data subject to processing, the duration of processing, and the rights and obligations of both parties. The contract shall also include requirements that the processor shall:

(a) Ensure that each person processing personal data is subject to a duty of confidentiality with respect to the data;

(b) At the controller's direction, delete or return all personal data to the controller as requested at the end of the provision of services, unless retention of the personal data is required by law;

(c) Upon the reasonable request of the controller, make available to the controller all information in its possession necessary to demonstrate the processor's compliance with the obligations prescribed in KRS 367.3611 to 367.3629;

(d) Allow, and cooperate with, reasonable assessments by the controller or the controller's designated assessor. Alternatively, the processor may arrange for a qualified and independent assessor to conduct an assessment of the processor's policies and technical and organizational measures in support of the obligations in KRS 367.3611 to 367.3629 using an appropriate and accepted control standard or framework and assessment procedure for assessments. The processor shall provide a report of the assessment to the controller upon request; and

(e) Engage any subcontractor pursuant to a written contract in accordance with this section that requires the subcontractor to meet the obligations of the processor with respect to the personal data.

(3) Nothing in this section shall be construed to relieve a controller or processor from the liabilities imposed on it by virtue of its role in a processing relationship as defined by KRS 367.3611 to 367.3629.

(4) Determining whether a person is acting as a controller or processor with respect to a specific processing of data is a fact-based determination that depends upon the context in which personal data is to be processed. A processor that continues to adhere to a controller's instructions with respect to a specific processing of personal data remains a processor.

Effective: January 1, 2026

History: Created 2024 Ky. Acts ch. 72, sec. 5, effective January 1, 2026.

367.3621 Data protection impact assessment -- Requirements -- Disclosure to Attorney General -- Confidentiality and exceptions -- Application.

(1) Controllers shall conduct and document a data protection impact assessment of each of the following processing activities involving personal data:

(a) The processing of personal data for the purposes of targeted advertising;

(b) The processing of personal data for the purposes of selling of personal data;

(c) The processing of personal data for the purposes of profiling, where the profiling presents a reasonably foreseeable risk of:

Unfair or deceptive treatment of consumers or unlawful, disparate impact on consumers;
Financial, physical, or reputational injury to consumers;
A physical or other intrusion upon the solitude or seclusion, or the private affairs or concerns, of consumers, where an intrusion would be offensive to a reasonable person; or
Other substantial injury to consumers;

(d) The processing of sensitive data; and

(e) Any processing of personal data that presents a heightened risk of harm to consumers.

(2) Data protection impact assessments conducted under this section shall identify and weigh the benefits that may flow, directly and indirectly, from the processing to the controller, the consumer, other stakeholders, and the public against the potential risks to the rights of the consumer associated with such processing, as mitigated by safeguards that can be employed by the controller to reduce such risk. The use of de-identified data and the reasonable expectations of consumers, as well as the context of the processing of personal data and the relationship between the controller and the consumer whose personal data will be processed, shall be factored into this assessment by the controller.

(3) The Attorney General may request, pursuant to an investigative demand, that a controller disclose any data protection impact assessment that is relevant to an investigation conducted by the Attorney General, and the controller shall make the data protection impact assessment available to the Attorney General. The Attorney General may evaluate the data protection impact assessments for compliance with the requirements of KRS 367.3611 to 367.3629.

(4) Data protection impact assessments are confidential and exempt from disclosure, public inspection, and copying under KRS 61.870 to 61.884.

(5) The disclosure of a data protection impact assessment pursuant to a request from the Attorney General under subsection (3) of this section does not constitute a waiver of the attorney-client privilege or work product protection with respect to the assessment and any information contained in the assessment.

(6) A single data protection assessment may address a comparable set of processing operations that include similar activities.

(7) Data protection assessments conducted by a controller for the purpose of compliance with other laws or regulations may comply under this section if the assessments have a reasonably comparable scope and effect.

(8) Data protection assessment requirements shall apply to processing activities created or generated on or after June 1, 2026.

Effective: January 1, 2026

History: Amended 2025 Ky. Acts ch. 13, sec. 2, effective January 1, 2026. -- Created 2024 Ky. Acts ch. 72, sec. 6, effective January 1, 2026.

367.3623 De-identifiable data requirements -- Construction -- Limitation of

consumer rights on pseudonymous data -- Controller oversight of de- identifiable or pseudonymous data.

(1) The controller in possession of de-identified data shall:

(a) Take reasonable measures to ensure the data cannot be associated with a natural person;

(b) Publicly commit to maintaining and using de-identified data without attempting to re-identify the data; and

(c) Contractually obligate any recipients of the de-identified data to comply with all provisions of KRS 367.3611 to 367.3629.

(2) Nothing in KRS 367.3611 to 367.3629 shall be construed to require a controller or processor to:

(a) Re-identify de-identified data or pseudonymous data; or

(b) Maintain data in identifiable form, or collect, obtain, retain, or access any data or technology, in order to be capable of associating an authenticated consumer request with personal data.

(3) Nothing in KRS 367.3611 to 367.3629 shall be construed to require a controller or processor to comply with an authenticated consumer rights request pursuant to KRS 367.3615 if:

(a) The controller is not reasonably capable of associating the request with the personal data or it would be unreasonably burdensome for the controller to associate the request with the personal data;

(b) The controller does not use the personal data to recognize or respond to the specific consumer who is the subject of the personal data, or associate the personal data with other personal data about the same specific consumer; and

(c) The controller does not sell the personal data to any third party or otherwise voluntarily disclose the personal data to any third party other than a processor, except as otherwise permitted in this section.

(4) The consumer rights contained in KRS 367.3615 shall not apply to pseudonymous data in cases where the controller is able to demonstrate any information necessary to identify the consumer is kept separately and is subject to appropriate technical and organizational measures to ensure that the personal data is not attributed to an identified or identifiable natural person.

(5) A controller that discloses pseudonymous data or de-identified data shall exercise reasonable oversight to monitor compliance with any contractual commitments to which the pseudonymous data or de-identified data is subject and shall take appropriate steps to address any breaches of those contractual commitments.

Effective: January 1, 2026

History: Created 2024 Ky. Acts ch. 72, sec. 7, effective January 1, 2026.

367.3625 Construction of KRS 367.3611 to 367.3629 -- Uses of data by controller or

processor -- Application of evidentiary privilege -- Disclosure of data to third- party controller -- Limitations on processing of personal data -- Burden of proof.

(1) Nothing in KRS 367.3611 to 367.3629 shall be construed to restrict a controller's or processor's ability to:

(a) Comply with federal, state, or local laws or regulations;

(b) Comply with a civil, criminal, or regulatory inquiry, investigation, subpoena, or summons by federal, state, local, or other governmental authorities;

(c) Cooperate with law enforcement agencies concerning conduct or activity that the controller or processor reasonably and in good faith believes may violate federal, state, or local laws, rules, or regulations;

(d) Investigate, establish, exercise, prepare for, or defend legal claims;

(e) Provide a product or service specifically requested by a consumer or a parent or guardian of a known child;

(f) Perform a contract to which the consumer or parent or guardian of a known child is a party, including fulfilling the terms of a written warranty;

(g) Take steps at the request of the consumer or parent or guardian of a known child prior to entering into a contract;

(h) Take immediate steps to protect an interest that is essential for the life or physical safety of the consumer or of another natural person, and where the processing cannot be manifestly based on another legal basis;

(i) Prevent, detect, protect against, or respond to security incidents, identity theft, fraud, harassment, malicious or deceptive activities, or any illegal activity; preserve the integrity or security of systems; or investigate, report, or prosecute those responsible for any such action;

(j) Engage in public or peer-reviewed scientific or statistical research in the public interest that adheres to all other applicable ethics and privacy laws and is approved, monitored, and governed by an institutional review board, or similar independent oversight entities that determine:

If the deletion of the information is likely to provide substantial benefits that do not exclusively accrue to the controller;
The expected benefits of the research outweigh the privacy risks; and
If the controller has implemented reasonable safeguards to mitigate privacy risks associated with research, including any risks associated with re-identification; or

(k) Assist another controller, processor, or third party with any of the obligations under this subsection.

(2) The obligations imposed on controllers or processors under KRS 367.3611 to 367.3629 shall not restrict a controller's or processor's ability to collect, use, or retain data to:

(a) Conduct internal research to develop, improve, or repair products, services, or technology;

(b) Effectuate a product recall;

(d) Perform internal operations that are reasonably aligned with the expectations of the consumer or reasonably anticipated based on the consumer's existing relationship with the controller or are otherwise compatible with processing data in furtherance of the provision of a product or service specifically requested by a consumer or a parent or guardian of a known child or the performance of a contract to which the consumer or a parent or guardian of a known child is a party.

(3) The obligations imposed on controllers or processors under KRS 367.3611 to 367.3629 shall not apply to a controller or processor if compliance under KRS 367.3611 to 367.3629 would violate an evidentiary privilege under the laws of this Commonwealth. Nothing in KRS 367.3611 to 367.3629 shall be construed to prevent a controller or processor from providing personal data concerning a consumer to a person covered by an evidentiary privilege under the laws of this Commonwealth as part of a privileged communication.

(4) A controller or processor that discloses personal data to a third-party controller or processor, in compliance with the requirements of KRS 367.3611 to 367.3629, is not in violation of KRS 367.3611 to 367.3629 if the third-party controller or processor that receives and processes such personal data is in violation of KRS 367.3611 to 367.3629, provided that, at the time of disclosing the personal data, the disclosing controller or processor did not have actual knowledge that the recipient intended to commit a violation. A third-party controller or processor receiving personal data from a controller or processor in compliance with the requirements of KRS 367.3611 to 367.3629 is likewise not in violation of KRS 367.3611 to 367.3629 for the transgressions of the controller or processor from which it receives such personal data.

(5) Nothing in KRS 367.3611 to 367.3629 shall be construed as an obligation imposed on controllers and processors that adversely affects the privacy or other rights or freedoms of any persons, including but not limited to the right of free speech pursuant to the First Amendment to the Constitution of the United States, or applies to the processing of personal data by a person in the course of a purely personal or household activity.

(6) Personal data processed by a controller pursuant to this section shall not be processed for any purpose other than those expressly listed in this section unless otherwise allowed by KRS 367.3611 to 367.3629. Personal data processed by a controller pursuant to this section may be processed to the extent that such processing is:

(a) Reasonably necessary and proportionate to the purposes listed in this section; and

(b) Adequate, relevant, and limited to what is necessary in relation to the specific purposes listed in this section. Personal data collected, used, or retained pursuant to subsection (2) of this section shall, where applicable, take into account the nature and purpose or purposes of such collection, use, or retention. The data shall be subject to reasonable administrative, technical, and physical measures to protect the confidentiality, integrity, and accessibility of personal data and to reduce reasonably foreseeable risks of harm to consumers relating to the collection, use, or retention of personal data.

(7) If a controller processes personal data pursuant to an exemption in this section, the controller bears the burden of demonstrating that such processing qualifies for the exemption and complies with the requirements in this section.

(8) Processing personal data for the purposes expressly identified in subsection (1) of this section shall not by itself make an entity a controller with respect to such processing.

Effective: January 1, 2026

History: Created 2024 Ky. Acts ch. 72, sec. 8, effective January 1, 2026.

367.3627 Enforcement authority of Attorney General -- Written notice of violation -- Civil action -- Damages -- Recovery of expenses.

(1) The Attorney General shall have exclusive authority to enforce violations of KRS 367.3611 to 367.3629. The Attorney General may enforce KRS 367.3611 to 367.3629 by bringing an action in the name of the Commonwealth of Kentucky or on behalf of persons residing in this Commonwealth. The Attorney General shall have all powers and duties granted to the Attorney General under KRS Chapter 15 to investigate and prosecute any violation of KRS 367.3611 to 367.3629. The Attorney General may demand any information, documentary material, or physical evidence from any controller or processor believed to be engaged in, or about to engage in, any violation of KRS 367.3611 to 367.3629.

(2) Prior to initiating any action for violation of KRS 367.3611 to 367.3629, the Attorney General shall provide a controller or processor thirty (30) days' written notice identifying the specific provisions of KRS 367.3611 to 367.3629, the Attorney General alleges have been or are being violated. If within the thirty (30) days the controller or processor cures the noticed violation and provides the Attorney General an express written statement that the alleged violations have been cured and that no further violations shall occur, no action for damages under subsection (3) of this section shall be initiated against the controller or processor.

(3) If a controller or processor continues to violate KRS 367.3611 to 367.3629 following the cure period in subsection (2) of this section or breaches an express written statement provided to the Attorney General under subsection (2) of this section, the Attorney General may initiate an action and seek damages for up to seven thousand five hundred dollars ($7,500) for each continued violation under KRS 367.3611 to 367.3629.

(4) Nothing in KRS 367.3611 to 367.3629 or any other law, regulation, or the equivalent shall be construed as providing the basis for, or give rise to, a private right of action for violations of KRS 367.3611 to 367.3629.

(5) The Attorney General may recover reasonable expenses incurred in investigating and preparing the case, court costs, attorney's fees, and any other relief ordered by the court of any action initiated under KRS 367.3611 to 367.3629.

Effective: January 1, 2026

History: Created 2024 Ky. Acts ch. 72, sec. 9, effective January 1, 2026.

367.3629 Consumer privacy fund.

There is hereby created a trust and agency account to be known as the consumer privacy

fund. The fund shall be administered by the Office of the Attorney General. All civil penalties collected pursuant to KRS 367.3611 to 367.3629 shall be deposited into the

fund. Interest earned on moneys in the fund shall accrue to the fund. Moneys in the fund shall be used by the Office of the Attorney General to enforce KRS 367.3611 to 367.3629. Notwithstanding KRS 45.229, any moneys remaining in the fund at the close of the fiscal year shall not lapse but shall be carried forward into the succeeding fiscal year to be used by the Office of the Attorney General for the purposes set forth in KRS 367.3611 to 367.3629.

Effective: January 1, 2026

History: Created 2024 Ky. Acts ch. 72, sec. 10, effective January 1, 2026.

Placement of Security Freeze on Consumer Reports Placement of Security Freeze on Consumer Reports

367.363 Definitions for KRS 367.363 to 367.365.

As used in KRS 367.363 to 367.365, unless the context requires otherwise:

(1) "Clear and proper identification" means information generally deemed sufficient to identify a person. If the consumer is unable to reasonably identify himself or herself with such information, a consumer reporting agency may require additional information to verify his or her identity;

(2) "Consumer report" means a consumer report, as defined in the federal Fair Credit Reporting Act, 15 U.S.C. sec. 1681a(d);

(3) "Consumer reporting agency" means a consumer reporting agency as defined by the federal Fair Credit Reporting Act, 15 U.S.C. sec. 1681a(f). "Consumer reporting agency" shall not mean a check acceptance service which provides check approval and guarantees services to merchants; and

(4) "Security freeze" means a notice placed on a consumer file, at the request of the consumer and subject to certain exceptions, that prohibits a consumer reporting agency from releasing the consumer's consumer report or credit score relating to the extension of credit without the express authorization of the consumer.

Effective: July 12, 2006

History: Created 2006 Ky. Acts ch. 42, sec. 1, effective July 12, 2006.

367.364 Persons not required to place a security freeze on a consumer report.

The following persons are not required to place a security freeze on a consumer report in accordance with KRS 367.363 to 367.365:

(1) A check services or fraud prevention services company, which issues reports on incidents of fraud or authorizations for the purpose of approving or processing negotiable instruments, electronic funds transfers, or similar methods of payments;

(2) A deposit account information service company, which issues reports regarding account closures due to fraud, substantial overdrafts, automated teller machine

(ATM) abuse, or similar negative information regarding a consumer to inquiring banks or other financial institutions for use only in reviewing a consumer request for a deposit account at the inquiring bank or financial institution;

(3) A reseller of credit information that assembles or merges information contained in the database of another consumer reporting agency or multiple consumer reporting agencies, and does not maintain a permanent database of credit information from which new consumer reports are produced;

(4) Any database or file which consists solely of any information adverse to the interests of the consumer, including but not limited to criminal record information, which is used for fraud prevention or detection, tenant screening, employment screening, or any purpose permitted by the federal Fair Credit Reporting Act, 15 U.S.C. sec. 1681b;

(5) A person to the extent such person offers fraud prevention services that issues reports on incidents of fraud or reports used primarily in the detection or prevention of fraud;

(6) A bank, as defined in 12 U.S.C. sec. 1813(a) or Subtitles 1, 2, and 3 of KRS Chapter 286;

(7) A credit union, as defined in 12 U.S.C. sec. 1752 or Subtitle 6 of KRS Chapter 286;

(8) A savings association, as defined in 12 U.S.C. sec. 1813(b), or an association, as defined in Subtitle 5 of KRS Chapter 286;

(9) An insurer, as defined in KRS Chapter 304; and

(10) A retail establishment selling its own inventory.

Effective: July 12, 2006

History: Created 2006 Ky. Acts ch. 42, sec. 2, effective July 12, 2006.

367.3645 Request for security freeze on protected person's record or consumer report -- Effect of security freeze -- Removal of security freeze -- Fees -- Liability for willful noncompliance or acting under false pretenses -- Nonapplicability to specified circumstances.

(1) For the purposes of this section:

(a) "Protected person" means an individual who is under sixteen (16) years of age at the time a request for the placement of a security freeze is made, or who is an incapacitated person or other person for whom a guardian or conservator has been appointed;

(b) "Record" means a compilation of information which:

Identifies a protected person;
Is created by a consumer reporting agency solely for the purpose of complying with this section; and
Is not created or used to consider the protected person's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living;

(c) "Representative" means a person who provides to a consumer reporting agency sufficient proof of authority to act on behalf of a protected person; and

(d) "Sufficient proof of authority" means documentation that shows a representative has authority to act on behalf of a protected person, including but not limited to:

A court order granting custodianship, guardianship, or conservatorship;
A birth certificate;
A lawfully executed and valid power of attorney; or
A written, notarized statement signed by a representative that expressly describes the authority of the representative to act on behalf of a protected person.

(2) A consumer reporting agency shall place a security freeze on a protected person's record or consumer report if:

(a) The consumer reporting agency receives a request from the protected person's representative for the placement of the security freeze; and

(b) The protected person's representative:

Submits the request to the consumer reporting agency at the address designated by the consumer reporting agency to receive the request;
Provides to the consumer reporting agency clear and proper identification of the protected person and the representative;
Provides to the consumer reporting agency sufficient proof of authority to act on behalf of the protected person; and
Pays to the consumer reporting agency a fee as prescribed in subsection

(8) of this section.

(3) If a consumer reporting agency does not have a file pertaining to a protected person when the consumer reporting agency receives a request pursuant to subsection (2) of this section, the consumer reporting agency shall create a record for the protected person.

(4) Within thirty (30) days after receiving a request pursuant to this section, a consumer reporting agency shall place a security freeze on the protected person's record or consumer report.

(5) Unless a security freeze is removed pursuant to subsection (7) or (10) of this section, a consumer reporting agency may not release the protected person's consumer report, any information derived from the protected person's consumer report, or any record created for the protected person.

(6) A security freeze that is placed on a protected person's record or consumer report placed under this section remains in effect until either:

(a) The protected person or the protected person's representative requests that the consumer reporting agency remove the security freeze pursuant to subsection

(7) of this section; or

(b) The security freeze is removed pursuant to subsection (10) of this section.

(7) (a) To remove a security freeze for a protected person, the protected person or the protected person's representative shall submit a request for the removal of the security freeze to the consumer reporting agency at the address designated by the consumer reporting agency to receive the request, and pay a fee as prescribed in subsection (8) of this section. In addition:

If the protected person requested the removal of the security freeze, the protected person shall provide to the consumer reporting agency both of the following:

a. Proof that the protected person's representative no longer has sufficient proof of authority to act on behalf of the protected person; and

b. Clear and proper identification of the protected person; and

If the protected person's representative requested the removal of the security freeze on behalf of the protected person, the protected person's representative shall provide to the consumer reporting agency both of the following:

a. Clear and proper identification of the protected person and the representative; and

b. Sufficient proof of authority to act on behalf of the protected person.

(b) Within thirty (30) days after receiving a request to remove a security freeze placed pursuant to subsection (2) of this section, the consumer reporting agency shall remove the security freeze for the protected person.

(8) A consumer reporting agency may charge a fee for each placement or removal of a security freeze on a protected person's record or consumer report. The fee may not exceed ten dollars ($10).

(9) Notwithstanding subsection (8) of this section, a consumer reporting agency may not charge any fee under this section if:

(a) The protected person's representative provides a copy of a police report to the consumer reporting agency alleging that the protected person has been a victim of an offense involving identity theft; or

(b) A request for the placement or removal of a security freeze is for a protected person who is under sixteen (16) years of age at the time of the request and the consumer reporting agency has a consumer report pertaining to the protected person.

(10) A consumer reporting agency may remove a security freeze for a protected person or may delete a protected person's record if the security freeze was placed or the record was created based on a material misrepresentation of fact by the protected person or the protected person's representative.

(11) Any person who willfully fails to comply with any requirement imposed under this section with respect to any protected person is liable to that person in an amount equal to the sum of:

(a) Any actual damages sustained by the consumer as a result of the failure;

(b) Any liquidated damages of not less than one hundred dollars ($100) and not more than one thousand dollars ($1,000);

(d) In the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.

(12) Any person, other than the named individual or individuals in the report, who obtains a consumer report, requests a security freeze, requests the temporary lift of a freeze, or requests the removal of a security freeze from a consumer reporting agency under false pretenses or in an attempt to violate federal or state law shall be liable to the consumer reporting agency for actual damages sustained by the consumer reporting agency or one thousand dollars ($1,000), whichever is greater.

(13) This section does not apply to a protected person's consumer report or record provided to:

(a) A federal, state, or local governmental entity, including a law enforcement agency, or court, or their agents or assigns;

(b) A private collection agency for the sole purpose of assisting in the collection of an existing debt of the consumer who is the subject of the consumer report requested;

(c) A person or entity, or a subsidiary, affiliate, or agent of that person or entity, or an assignee of a financial obligation owing by the consumer to that person or entity, or a prospective assignee of a financial obligation owing by the consumer to that person or entity in conjunction with the proposed purchase of the financial obligation, with which the consumer has or had prior to assignment an account or contract, including a demand deposit account, or to whom the consumer issued a negotiable instrument, for the purposes of reviewing the account or collecting the financial obligation owing for the account, contract, or negotiable instrument. For purposes of this paragraph, "reviewing the account" includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements;

(d) A person, for the purposes of prescreening as provided by the federal Fair Credit Reporting Act, 15 U.S.C. secs. 1681 et seq.;

(e) A consumer reporting agency for the purposes of providing a consumer with a copy of his or her own report on his or her request;

(f) A child support enforcement agency;

(g) A consumer reporting agency that acts only as a reseller of credit information by assembling and merging information contained in the database of another consumer reporting agency or multiple credit reporting agencies and does not maintain a permanent database of credit information from which new consumer reports are produced. However, a consumer reporting agency acting as a reseller shall honor any security freeze placed on a consumer report by another consumer reporting agency;

(h) A check services or fraud prevention services company, which issues reports on incidents of fraud or authorizations for the purpose of approving or processing negotiable instruments, electronic funds transfers, or similar methods of payments;

(i) A deposit account information service company, which issues reports regarding account closures due to fraud, substantial overdrafts, ATM abuse, or similar negative information regarding a consumer to inquiring banks or other financial institutions for use only in reviewing a consumer request for a deposit account at the inquiring bank or financial institution;

(j) Any person or entity using a consumer report in preparation for a civil or criminal action, or an insurance company in investigation of a claim; or

(k) 1. Any insurance company for setting or adjusting a rate or underwriting for property and casualty insurance purposes; or

Any consumer reporting agency database or file which consists solely of consumer information concerning, and used solely for:

a. Criminal record information;

b. Personal loss history information;

c. Fraud prevention or detection;

d. Employment screening; or

e. Tenant screening.

Effective: March 30, 2018

History: Amended 2018 Ky. Acts ch. 41, sec. 2, effective March 30, 2018. -- Created 2017 Ky. Acts ch. 119, sec. 1, effective January 1, 2018

367.365 Consumer's election regarding security freeze on consumer report -- Subsequent access -- Duties of consumer reporting agency -- Duration of security freeze -- Removal and temporary lifting -- Inapplicability to certain consumer reports -- Permitted charges for security freeze -- Changes to official consumer report information -- Penalties for section's violation.

(1) (a) A consumer may elect to place a security freeze on the consumer's consumer report by written request, sent by certified mail, to a consumer reporting agency at an address designated by the consumer reporting agency to receive security freeze requests, or by the use of telephone, fax, or Web-based or other electronic method that the consumer reporting agency has established to receive security freeze requests. A request made pursuant to this subsection shall include clear and proper identification. A consumer reporting agency shall place a security freeze on a consumer's consumer report no later than ten

(10) business days after receiving a request made pursuant to this subsection for the placement of a security freeze from the consumer.

(b) When a security freeze is in place, information from a consumer's consumer report shall not be released to a third party without prior express authorization from the consumer. This subsection does not prevent a consumer reporting agency from advising a third party that a security freeze is in effect with respect to the consumer's consumer report.

(2) The consumer reporting agency shall, no later than ten (10) business days after the date the agency receives the request for a security freeze, provide the consumer with a unique personal identification number or password to be used by the consumer when providing authorization for the access to his or her credit file for a specific period of time. In addition, the consumer reporting agency shall simultaneously provide to the consumer in writing the process of placing, removing, and temporarily lifting a security freeze and the process for allowing access to information from the consumer's credit file for a specific period while the security freeze is in effect.

(3) A consumer may request a replacement personal identification number or password in the same manner utilized in subsection (1) of this section to request the initial security freeze and shall also include clear and proper identification. No later than ten (10) business days after the date the consumer reporting agency receives the request for a replacement personal identification number or password, the consumer reporting agency shall provide the consumer with a new, unique personal identification number or password to be used by the consumer instead of the number or password that was provided under subsection (2) of this section.

(4) If a third party requests access to a consumer report on which a security freeze is in effect, and this request is in connection with an application for credit, the third party may treat the application as incomplete.

(5) If the consumer wishes to allow his or her consumer report or credit score to be accessed for a specific period of time while a freeze is in place, the consumer shall contact the consumer reporting agency and request that the freeze be temporarily lifted and provide the following:

(a) Clear and proper identification;

(b) The unique personal identification number or password provided by the consumer reporting agency pursuant to subsection (2) or (3) of this section; and

(c) The proper information regarding the time period for which the report shall be available to users of the consumer report.

(6) A consumer reporting agency that receives a request from a consumer to temporarily lift a freeze on a consumer report pursuant to subsection (5) of this section shall comply with the request no later than three (3) business days after receiving the request. A consumer reporting agency may develop procedures involving the use of telephone, fax, the Internet, or other electronic media to receive and process a request from a consumer to temporarily lift a freeze on a consumer report or credit score pursuant to subsection (5) of this section in an expedited manner.

(7) A consumer reporting agency shall remove or temporarily lift a freeze placed on a consumer's consumer report only:

(a) Upon the consumer's request made pursuant to subsection (5) or (8) of this section; or

(b) If the consumer's consumer report was frozen due to a material misrepresentation of fact by the consumer. If a consumer reporting agency intends to remove a freeze upon a consumer's consumer report pursuant to this paragraph, the consumer reporting agency shall notify the consumer in writing prior to removing the freeze on the consumer's consumer report.

(8) A security freeze shall remain in place until the consumer requests that the security freeze be removed, or the consumer reporting agency has notified the consumer in writing that it is removing the freeze due to a misrepresentation of fact by the consumer pursuant to subsection (7)(b) of this section. A consumer reporting agency shall remove a security freeze within three (3) business days of receiving:

(a) A request for removal from the consumer; and

(b) Both of the following:

Clear and proper identification; and
The unique personal identification number or password provided by the consumer reporting agency.

(9) A security freeze does not apply to a consumer report provided to:

(a) A federal, state, or local governmental entity, including a law enforcement agency, or court, or their agents or assigns;

(b) A private collection agency for the sole purpose of assisting in the collection of an existing debt of the consumer who is the subject of the consumer report requested;

(d) A subsidiary, affiliate, agent, assignee, or prospective assignee of a person to whom access has been granted under subsection (5) of this section for the purposes of facilitating the extension of credit;

(e) A person for the purposes of prescreening as provided by the federal Fair Credit Reporting Act;

(f) A consumer reporting agency for the purposes of providing a consumer with a copy of his or her own report on the consumer's request;

(g) A child support enforcement agency;

(h) A consumer reporting agency that acts only as a reseller of credit information by assembling and merging information contained in the database of another consumer reporting agency or multiple credit reporting agencies and does not maintain a permanent database of credit information from which new consumer reports are produced. However, a consumer reporting agency acting as a reseller shall honor any security freeze placed on a consumer report by another consumer reporting agency;

(i) A check services or fraud prevention services company, which issues reports on incidents of fraud or authorizations for the purpose of approving or processing negotiable instruments, electronic funds transfers, or similar methods of payments;

(j) A deposit account information service company, which issues reports regarding account closures due to fraud, substantial overdrafts, ATM abuse, or similar negative information regarding a consumer to inquiring banks or other financial institutions for use only in reviewing a consumer request for a deposit account at the inquiring bank or financial institution;

(k) Any person or entity using a consumer report in preparation for a civil or criminal action, or an insurance company in investigation of a claim; or

(l) Any insurance company for setting or adjusting a rate or underwriting for property and casualty insurance purposes.

(10) A consumer reporting agency may impose a reasonable charge on a consumer for initially placing, temporarily lifting, or removing a security freeze on a consumer

file. The amount of the charge may not exceed ten dollars ($10). On January 1 of each year, a consumer reporting agency may increase the charge for placing a security freeze. The increase shall be based proportionally on changes to the Consumer Price Index for All Urban Consumers as determined by the United States Department of Labor with fractional changes rounded to the nearest twenty-five cents ($0.25). A consumer shall not be charged any fee by the consumer reporting agency for placing the security freeze if the consumer is a victim of identity theft and, upon the request of the consumer reporting agency, provides the consumer reporting agency with a valid police report.

(11) If a security freeze is in place, a consumer reporting agency shall not change any of the following official information in a consumer report without sending a written confirmation of the change to the consumer within thirty (30) days of the change being posted to the consumer's file:

(a) Name;

(b) Date of birth;

(d) Address. Written confirmation is not required for technical modifications of a consumer's official information, including name and street abbreviations, complete spellings, or transposition of numbers or letters. In the case of an address change, the written confirmation shall be sent to both the new address and to the former address.

(12) Any person who willfully fails to comply with any requirement imposed under this section with respect to any consumer is liable to that consumer in an amount equal to the sum of:

(a) Any actual damages sustained by the consumer as a result of the failure;

(b) Any liquidated damages of not less than one hundred dollars ($100) and not more than one thousand dollars ($1,000);

(d) In the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.

(13) Any person, other than the named individual or individuals in the report, who obtains a consumer report, requests a security freeze, requests the temporary lift of a freeze, or the removal of a security freeze from a consumer reporting agency under false pretenses or in an attempt to violate federal or state law shall be liable to the consumer reporting agency for actual damages sustained by the consumer reporting agency or one thousand dollars ($1,000), whichever is greater.

(14) Any person who is negligent in failing to comply with any requirement imposed under this section with respect to any consumer is liable to that consumer in an amount equal to the sum of:

(a) Any actual damages sustained by the consumer as a result of the failure; and

(b) In the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.

(15) Nothing in KRS 367.363 to 367.365 shall be construed to limit or restrict the exercise of powers or the performance of the duties of the Attorney General authorized under any other provision of law to bring or seek redress for persons that violate KRS 367.363 to 367.365.

Effective: March 30, 2018

History: Amended 2018 Ky. Acts ch. 41, sec. 1, effective March 30, 2018. -- Created 2006 Ky. Acts ch. 42, sec. 3, effective July 12, 2006.

Proxy Advisory Services Proxy Advisory Services

367.367 Definitions for KRS 367.367 to 367.369.

As used in KRS 367.367 to 367.369:

(1) "Company" means a publicly traded for-profit corporation, limited liability company, partnership, or other business entity that is doing business in this state as defined in KRS 141.010(13);

(2) "Company proposal" means a proposal made by a company that is included in the company's proxy statement, including a proposal regarding director nominations or elections, executive compensation, corporate transactions and structure, auditor selection, or similar measures;

(3) "Default recommendation or policy" means a system, set of rules, principles, or guidelines designed to assist with voting decisions on any company proposal or proxy proposal;

(4) "Economic analysis" means a written analysis of the economic impact of a shareholder-sponsored proposal, which shall include, at a minimum:

(a) The subject matter of the shareholder-sponsored proposal;

(b) Whether the board of directors of the issuer of securities opposes the shareholder-sponsored proposal and the stated reasons for the opposition;

(c) Whether the shareholder-sponsored proposal is consistent with the investment policy of the shareholder receiving the advice;

(d) The economic benefits and costs of implementing the shareholder-sponsored proposal, as written, in the long and short term;

(e) The quantifiable impact of the shareholder-sponsored proposal, as written, on the investment returns of the shareholder receiving the advice; and

(f) An explanation of the modeling, procedures, and processes used to complete the economic analysis;

(5) A "material connection" is established if there is a substantial likelihood that a reasonable investor would consider it important in determining the financial risk or the financial return of an investment;

(6) "Materially different advice," with respect to advice or a recommendation on how to vote on a company proposal or shareholder-sponsored proposal, means simultaneously advising or recommending that one (1) or more clients vote for:

(a) The proposal and one (1) or more clients vote against the proposal;

(b) A nominee for a company's governing authority and one (1) or more clients vote against or abstain from voting for the same nominee; or

(7) "Nonpecuniary interest" includes but is not limited to an environmental, social, political, or ideological interest which does not have a direct and material connection to the financial risk or financial return of an investment;

(8) "Pecuniary factor" means a consideration having a direct and material connection to the financial risk or financial return of an investment;

(9) "Proxy advisor":

(a) Means any person who is engaged in the business of providing advice, research, analysis, ratings, or recommendations specifically with respect to proxy voting for compensation; and

(b) Does not include an "investment advisor" under the federal Investment Advisers Act of 1940, 15 U.S.C. sec. 80b-2, except when engaged in the business of providing proxy advisory service to a third party for compensation;

(10) "Proxy advisory service" means any of the following services that are provided in connection with or in relation to a company:

(a) Advice or recommendations on how to vote on a shareholder-sponsored proposal or company proposal;

(b) Proxy statement research and analysis regarding a shareholder-sponsored proposal or company proposal;

(d) Development of proxy voting recommendations or policies, including establishing default recommendations or policies;

(11) "Shareholder" includes a shareholder, unitholder, limited partner, or other equity owner of a company;

(12) "Shareholder-sponsored proposal" means a proposal by a shareholder included in the proxy statement of an issuer of securities pursuant to 17 C.F.R. sec. 240.14a-8; and

(13) "Solely in the interest of shareholders" shall be determined using only pecuniary factors and shall not include any purpose to further a nonpecuniary interest.

Effective: July 15, 2026

History: Created 2026 Ky. Acts ch. 10, sec. 1, effective July 15, 2026.

367.368 Disclosure requirement when proxy advisory service not solely in the interest of shareholders or is materially different from advice provided to different clients.

(1) A proxy advisory service is not solely in the interest of shareholders of a company if the service:

(a) Is wholly or partly based on, or otherwise takes into account, one (1) or more nonpecuniary interests or subordinates the financial interests of shareholders to other objectives, including sacrificing investment returns or undertaking additional investment risk to promote or further nonpecuniary interests;

(b) Involves providing a voting recommendation with respect to a shareholder- sponsored proposal that:

Is inconsistent with the voting recommendation of the company's board of directors or a board committee composed of a majority of the company's independent directors; and
Does not include a written economic analysis of the financial impact on shareholders of the proposal; or

(c) Advises against a company proposal to elect a governing person unless the proxy advisor affirmatively states that the proxy advisory service rendered such advice solely in the interest of the shareholders of the company.

(2) If a proxy advisor provides a proxy advisory service that is not solely in the interest of shareholders as provided in subsection (1) of this section, the proxy advisor shall:

(a) Include, in writing or by electronic means, a disclosure to each shareholder or entity or other person acting on behalf of a shareholder receiving the proxy advisory service that:

Conspicuously states that pursuant to subsection (1) of this section the proxy advisory service is not being provided solely in the interest of shareholders and that the advice subordinates the financial interests of shareholders to other objectives, including sacrificing investment returns or undertaking additional investment risk to promote one (1) or more nonpecuniary interests; and
Explains, with particularity, the basis of the proxy advisor's advice concerning each recommendation, including but not limited to the company or companies for which the advice applies to and the nonpecuniary interests used in the basis of the advice; and

(b) Immediately provide a copy of the disclosure required under paragraph (a) of this subsection to the company that is subject to the proxy advisory service.

(3) If the proxy advisor provides materially different advice to different clients who have not expressly requested proxy advisory services for a nonpecuniary interest, the advisor shall:

(a) If applicable, comply with the disclosure requirements in subsections (1) and

(2) of this section; and

(b) Notify, in writing or by electronic means, each shareholder or entity or other person acting on behalf of a shareholder receiving the proxy advisory service, the company that is subject to the materially different advice provided by the proxy advisory service, and the Attorney General, of the materially different advice and disclose the advice or recommendation that is:

Provided solely in the interest of shareholders; and
Supported by an economic analysis performed and relied upon by the proxy advisor.

Effective: July 15, 2026

History: Created 2026 Ky. Acts ch. 10, sec. 2, effective July 15, 2026.

367.369 Failure to comply with notification and disclosure requirements deemed violation of 367.170 -- Cause of action -- Limitations.

(1) Failure to comply with the notification and disclosure requirements established for proxy advisors in KRS 367.367 and 367.368 shall be deemed to be an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170.

(2) The recipient of proxy advisory services provided by a proxy advisor, the company that is the subject of the proxy advisory services, or any shareholder of the company that is the subject of the proxy advisory services may bring a cause of action seeking declaratory or injunctive relief in the Circuit Court of the county where the plaintiff resides or where the violation occurred.

(3) (a) In any proceeding under subsection (2) of this section, the plaintiff shall serve the Attorney General with a copy of the petition within seven (7) days of filing. The Attorney General may intervene in the action.

(b) All of the remedies, powers, and duties provided to the Attorney General under KRS 367.110 to 367.300, and the penalties provided in KRS 367.990, pertaining to acts and practices declared unlawful by KRS 367.170, shall apply with equal force and effect to a violation of KRS 367.367 or 367.368.

(c) KRS 367.367 to 367.369 shall not be construed to limit or restrict the powers, duties, remedies, or penalties available to the Attorney General under any other statutory or common law.

(4) (a) Notwithstanding any other provision of KRS 367.367 to 367.369 to the contrary, a cause of action under KRS 367.367 to 367.369 shall not be brought against a nonprofit organization exempt from taxation under 26 U.S.C. sec. 501(c) by any person or entity other than the Attorney General of the Commonwealth of Kentucky:

Provided that the nonprofit organization has gross annual revenue attributable to proxy advisory services of less than five hundred thousand dollars ($500,000); and
Provided further that in the event the nonprofit organization is a member of an affiliated group, the combined gross annual revenue of all members of the affiliated group attributable to proxy advisory services is less than five hundred thousand dollars ($500,000).

(b) This subsection shall not limit the authority of the Attorney General to investigate or enforce KRS 367.367 to 367.369 against any person or entity.

Effective: July 15, 2026

History: Created 2026 Ky. Acts ch. 10, sec. 3, effective July 15, 2026.

Funds Recovered for State in Legal Action Funds Recovered for State in Legal Action

367.370 Funds recovered in legal action for state handled in accordance with KRS 48.005.

KRS 367.190, 367.200, 367.210, 367.220 and KRS 367.110 to 367.360 to the contrary notwithstanding, if funds of any kind or nature whatsoever are recovered by or on behalf of the Commonwealth in a legal action, including an ex rel. action in which the Attorney General has entered an appearance or is a party under statutory or common law authority, those funds recovered shall be handled in accordance with KRS 48.005.

Effective: April 21, 2000

History: Created 2000 Ky. Acts ch. 483, sec. 4, effective April 21, 2000.

Sales and Rentals During State of Emergency Sales and Rentals During State of Emergency

367.372 Definitions for KRS 367.372 to 367.378.

As used in KRS 367.372 to 367.378, unless the context requires otherwise:

(1) "Building materials" means lumber, construction tools, windows, and anything else used in the building or rebuilding of property;

(2) "Consumer food item" means any article used or intended for use for food, drink, confection, or condiment by a person or animal;

(3) "Cost" means any cost directly or indirectly related to the sale of a good, provision of a service, or the operation of the seller's business, and includes any actual or anticipated replacement cost;

(4) "Emergency supplies" includes but is not limited to water, flashlights, radios, batteries, candles, blankets, soap, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers;

(5) "Gasoline" means any fuel used to power any motor vehicle or power tool;

(6) "Goods" has the same meaning as in KRS 355.2-105;

(7) "Housing" means any rental housing and includes any housing provided by a hotel or motel;

(8) "Medical supplies" includes but is not limited to prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products;

(9) "Person" has the same meaning as in KRS 446.010;

(10) "Price prior to the declaration" means the person's price for a good or service on the day before the date of the Governor's order implementing the provisions of KRS 367.374;

(11) "Repair or reconstruction services" means services performed by any person for repairs to residential or commercial property of any type that is damaged as a result of a natural or man-made disaster or emergency resulting from an event referred to in subsection (13) of this section;

(12) "Services" means work, labor, or services, including services furnished in connection with the sale or repair of goods or real property or improvements thereto;

(13) "State of emergency" means a natural or man-made disaster resulting from a tornado, earthquake, flood, fire, riot, storm, act of war, threat of war, military action, the time of instability following a terrorist attack, or any other event for which a state of emergency has been proclaimed by the President of the United States or declared by the Governor. It shall also include the duration of a Condition Red as declared by the United States Department of Homeland Security under the Homeland Security Advisory System; and

(14) "Transportation, freight, and storage services" means any service that is performed by a person that contracts to move, store, or transport personal or business property or rents equipment for those purposes.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 93, sec. 1, effective July 14, 2018. -- Created 2004 Ky. Acts ch. 156, sec. 1, effective July 13, 2004.

367.374 Sale or rental of goods and services during declared state of emergency --

Fifteen-day prohibition against grossly excessive prices -- Additional fifteen- day extensions to protect citizens -- Application of section.

(1) (a) When a Condition Red has been declared by the United States Department of Homeland Security under the Homeland Security Advisory System, the Secretary of the Department of Health and Human Services, under Section 319 of the Public Health Service Act, declares a public health emergency, or the Governor has declared a state of emergency under KRS 39A.100, the Governor may implement this section by executive order for a period of fifteen (15) days from notification of implementation, as required by KRS 367.376. The order implementing this section shall be limited to the geographical area indicated in the declaration of emergency. The Governor may terminate or limit the scope of the order at any time.

(b) No person shall sell, rent, or offer to sell or rent, regardless of whether an actual sale or rental occurs, a good or service listed in this paragraph or any repair or reconstruction service for a price which is grossly in excess of the price prior to the declaration and unrelated to any increased cost to the seller. Goods and services to which this section applies are:

Consumer food items;
Goods or services used for emergency cleanup;
Emergency supplies;
Medical supplies;
Home heating oil;
Building materials;
Housing;
Transportation, freight, and storage services;
Gasoline or other motor fuels; and
Direct care staff services provided by a health care services agency as defined in KRS 216.718.

Related to an additional cost imposed by a supplier of a good or other costs of providing the good or service, including an additional cost for labor or materials used to provide a service;
Ten percent (10%) or less above the price prior to the declaration;
Ten percent (10%) or less above the sum of the person's costs and normal markup for a good or service;
Generally consistent with fluctuations in applicable commodity, regional, national, or international markets, or seasonal fluctuations; or
A contract price, or the result of a price formula, established prior to the order implementing this subsection.

(d) Whether a price violates this subsection is a question of law. In determining if a violation of this subsection has occurred, the court shall consider all relevant circumstances, including prices prevailing in the locality at that time.

(2) The provisions of this section may be extended for up to three (3) additional fifteen

(15) day periods by the Governor, if necessary to protect the lives, property, or welfare of the citizens.

(3) If a person sold or rented a good or service listed in subsection (1) of this section at a reduced price in the thirty (30) days prior to the Governor's implementation of this section, the price at which that person usually sells or rents the good or service in the area for which the declaration was issued shall be used in determining if the person is in violation of this section.

(4) If a person did not sell or rent or offer to sell or rent a good or service listed in subsection (1) of this section prior to the Governor's implementation of this section, the price at which a good or service was generally available in the area for which the declaration was issued shall be used in determining if the person is in violation of this section.

(5) Nothing in this section shall be affected by the requirements of KRS 39A.090.

Effective: July 14, 2022

History: Amended 2022 Ky. Acts ch. 110, sec. 7, effective July 14, 2022. -- Amended 2021 Ky. Acts ch. 6, sec. 9, effective February 2, 2021. -- Amended 2018 Ky. Acts ch. 93, sec. 2, effective July 14, 2018. -- Amended 2007 Ky. Acts ch. 109, sec. 1, effective June 26, 2007. -- Created 2004 Ky. Acts ch. 156, sec. 2, effective July 13, 2004.

367.376 Notice of Governor's implementation of KRS 367.372 to 367.378 -- Renewal and termination notice.

Upon the Governor's implementation of the provisions of KRS 367.374, renewal of the implementation, or termination of the implementation, the Division of Emergency Management shall immediately notify the public and those registered with the division for the purpose of receiving notice of the implementation, renewal, or termination. The division shall notify the public by any means available, including the division's Web site, news media, and electronic mail. Any person or trade association may register with the division for the purpose of receiving notification.

Effective: July 13, 2004

History: Created 2004 Ky. Acts ch. 156, sec. 3, effective July 13, 2004.

367.378 Exclusive penalties for violation of KRS 367.374 -- Applicability of chapter -- Powers of Attorney General.

(1) A willful violation of KRS 367.374 is punishable by a civil monetary penalty of an amount not to exceed five thousand dollars ($5,000) for the first violation and an amount not to exceed ten thousand dollars ($10,000) for each subsequent violation, with an aggregate total not to exceed twenty-five thousand dollars ($25,000) for any twenty-four (24) hour period against any person who violates KRS 367.374. No additional civil monetary penalties may be imposed under this chapter for conduct prohibited by KRS 367.374.

(2) Except as provided in subsection (1) of this section, all of the remedies, powers, and duties provided by KRS Chapter 367 shall apply with equal force and effect to an act declared unlawful by KRS 367.374.

(3) Nothing in KRS 367.372 to 367.378 shall be construed to limit or restrict the exercise of powers or the performance of the duties of the Attorney General which he or she is authorized to exercise or perform under any other provision of law.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 93, sec. 3, effective July 14, 2018. -- Created 2004 Ky. Acts ch. 156, sec. 4, effective July 13, 2004.

Activities of Contractors During State of Emergency Activities of Contractors During State of Emergency

367.379 Definitions for section -- Activities of contractors during declared state of emergency -- Registration requirement -- Enforcement by Attorney General -- Prohibition against solicitation -- Restrictions on local governments -- Administrative regulation.

(1) As used in this section:

(a) "Contractor" means any person or business engaged in:

Roofing or siding repair or replacement;
Water damage mitigation or restoration; or
Tree or debris removal;

(b) "Designated area" means the geographical area indicated in a state of emergency declaration issued by:

The Governor, or a local chief executive officer, under KRS 39A.100; or
A local government under KRS 39B.070; and

(c) "Local government" means any city, county, urban-county government, consolidated local government, charter county government, or unified local government.

(2) (a) When a state of emergency is declared by the Governor, a local chief executive officer, or a local government under KRS 39A.100 or 39B.070, as applicable, and the state of emergency results from an incident or situation that causes destruction to real estate, the Attorney General may issue an order requiring all persons engaging in business as a contractor in the designated area to comply with this section for a period of time determined by the Attorney General to be sufficient to protect the lives, property, and welfare of citizens in the designated area, which period of time may be extended by subsequent order.

(b) If an order is issued under paragraph (a) of this subsection, the Attorney General shall:

Subject to subsection (6)(c) of this section, issue an order determining whether a local government within the designated area imposes greater emergency registration or emergency licensure requirements on contractors doing business in the designated area than the requirements in subsection (3)(a), (b), and (c) of this section; and
Issue a certificate of registration to any contractor that submits a completed registration application that meets the requirements of this section.

(c) All contractors engaging in business within the designated area shall comply with this section in accordance with any order issued by the Attorney General under paragraph (a) of this subsection.

(d) A certificate of registration issued under paragraph (b)2. of this subsection shall not be transferred, leased, or sold.

(e) Any peace officer in the designated area shall be authorized to enforce an order issued under paragraph (a) of this subsection.

(3) Except as provided in subsection (5) of this section, a contractor subject to an order issued under subsection (2)(a) of this section shall:

(a) Submit an application for registration to the Attorney General, and on a form established by the Attorney General, which shall at a minimum, include:

The name, physical address, phone number, mailing address, and email address of the contractor;
The name, Social Security number, physical address, mailing address, and phone number of the owner of the contractor business;
The name, driver's license number, Social Security number, and date of birth of a local contact person, who shall be responsible for the conduct of all employees and solicitors of the contractor in the designated area;
The following:

a. Evidence that the contractor has a liability insurance policy or bond;

b. The name and phone number of the insurer or bond company; and

c. If applicable, the policy number;

Evidence of the contractor's compliance with applicable workers' compensation laws and, if applicable, the risk number;
Any former names under which the contractor has operated in the past ten (10) years; and
Whether the contractor has been the subject of a business-related lawsuit;

(b) Upon request, provide a copy of the contractor's certificate of registration to any:

Person doing business with the contractor in the designated area, including but not limited to customers and prospective customers;
Official, employee, or other representative of a local government in the designated area; and
Peace officer in the designated area;

(c) Conspicuously post a copy of the contractor's certificate of registration at each job site within the designated area;

(d) Provide proof of the contractor's registration under this section to an insured and the insured's insurer with any authorization of a direction of payment under a property, casualty, or property and casualty insurance claim; and

(e) Comply with:

Subsection (4) of this section; and
KRS 367.620 to 367.628.

(4) (a) Except as provided in paragraph (b) of this subsection, in order to protect the safety and well-being of first responders, victims of the declared state of emergency, and others in the designated area, a contractor shall not solicit business in person within the designated area for ninety (90) days after the state of emergency was declared without prior approval of the property owner.

(b) This subsection shall not prohibit:

A contractor from soliciting business in person upon the request of the property owner;
Public advertising; or
Direct communications by telephone or digital means.

(5) (a) Except as provided in paragraph (b) of this subsection, a local government shall not require any emergency registration or emergency licensure for a contractor that complies with subsection (3)(a), (b), and (c) of this section during the period of time determined by the Attorney General under subsection (2)(a) of this section.

(b) If the Attorney General issues an order under subsection (2)(b)1. of this section determining that a local government in the designated area imposes emergency registration or emergency licensure requirements for contractors that are greater than the requirements imposed under subsection (3)(a), (b), and (c) of this section, a contractor doing business in the designated area shall:

Comply with all of the emergency registration or emergency licensure requirements of the local government; and
Be exempt from subsection (3)(a), (b), and (c) of this section.

(6) (a) When a state of emergency is declared by the Governor, a local chief executive officer, or a local government under KRS 39A.100 or 39B.070, as applicable, and the state of emergency results from an incident or situation that causes destruction to real estate, a local government in the designated area may submit a written declaration to the Attorney General that:

States that the local government's emergency registration or emergency licensure requirements for contractors are greater than the requirements imposed under subsection (3)(a), (b), and (c) of this section; and
Includes a copy of the applicable ordinances, orders, or regulations of the local government.

(b) If a local government files a declaration under paragraph (a) of this subsection, the Attorney General shall, within five (5) days of receiving the declaration, provide a written response to the local government that:

Affirms the declaration; or
Rejects the declaration.

(c) An order issued by the Attorney General under subsection (2)(b)1. of this section shall conform to the response provided to the local government under paragraph (b) of this subsection.

(7) The Attorney General may promulgate administrative regulations in accordance with KRS Chapter 13A necessary for or as an aid to the effectuation of this section.

(8) This section shall not prevent a local government from enforcing any ordinance or regulation of general applicability related to occupational licenses, including the local government's existing ordinances governing itinerant merchants.

Effective: July 15, 2026

History: Created 2026 Ky. Acts ch. 54, sec. 9, effective July 15, 2026.

Loan Brokers Loan Brokers

367.380 Definitions for KRS 367.380 to 367.389.

As used in KRS 367.380 to 367.389:

(1) "Advance fee" means any consideration which is assessed or collected, prior to the closing of a loan, by a loan broker;

(2) "Affiliate" means any person who directly or indirectly, through one (1) or more intermediaries, controls, is controlled by, or is under common control with another person;

(3) "Borrower" means a person obtaining or desiring to obtain a loan of money, a credit card, or a line of credit;

(4) (a) "Loan broker" means any person, not exempt under paragraph (b), who:

For or in expectation of consideration arranges, attempts to arrange, or offers to fund a loan of money, a credit card, or a line of credit;
For or in expectation of consideration assists, or advises a borrower in obtaining or attempting to obtain a loan of money, a credit card, a line of credit, or related guarantee, enhancement, or collateral of any kind or nature;
Acts for or on behalf of a loan broker for the purpose of soliciting borrowers; or
Holds himself out as a loan broker.

(b) The following persons shall not be considered loan brokers under paragraph (a):

A bank; savings and loan association; trust company; credit union; consumer loan company; investment company; securities broker-dealer, agent, or investment adviser; real estate broker or sales associate; attorney; Federal Housing Administration or United States Department of Veterans Affairs approved lender; credit card company; mortgage loan company; mortgage loan broker; public utility; insurance company; or insurance agent, solicitor, consultant, motor vehicle manufacturer, or motor vehicle dealer, if it is licensed by and subject to regulation or supervision of an agency, commission, or department of the United States or the Commonwealth, and if it is acting within the scope of its license, permit, or registration or with express written authority from the regulatory or supervising agency. Subsidiaries of licensed or chartered consumer loan companies, banks, or savings and loan associations are not loan brokers;
A person extending or arranging credit, or offering to extend or arrange credit, to a partnership or corporation exclusively for commercial or business purposes;
A depository financial institution chartered or licensed by an agency, commission, or department of another state, if the funds on deposit with the institution are insured by the Federal Deposit Insurance Corporation;
An affiliate of a person listed in subparagraph 2; or
A bona fide seller or lessor of goods, services, or interests in real estate in a transaction in which the seller or lessor extends, arranges, or offers to extend or arrange credit that is to be used exclusively for financing the purchase or lease or for services performed by an independent third party directly related to the purchase or lease. A transaction shall not be exempt under this subparagraph if the purchaser or lessee receives, or is to receive, a cash advance or consolidation loan in addition to the financing; and

(5) "Principal" means any officer, director, partner, joint venturer, branch manager, or other person with similar managerial or supervisory responsibilities for a loan broker.

Effective: July 15, 2024

History: Amended 2024 Ky. Acts ch. 152, sec. 40, effective July 15, 2024. -- Amended 2017 Ky. Acts ch. 42, sec. 18, effective June 29, 2017. -- Created 1992 Ky. Acts ch. 301, sec. 1, effective July 14, 1992.

367.381 Prohibited acts.

No loan broker shall:

(1) Assess or collect an advance fee from a borrower to provide services as a loan broker;

(2) Make or use unfair, false, misleading, or deceptive representations or omit any material fact in the offer or sale of the services of a loan broker, or engage, directly or indirectly, in any act that operates or would operate as an unfair, false, misleading, or deceptive representation in its business dealings, or to the Attorney General or conceal a material fact from the Attorney General.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 301, sec. 2, effective July 14, 1992.

367.383 Liability of loan broker's principal.

A principal of a loan broker shall be liable under KRS 367.385 and 367.387 to the same extent as the loan broker himself for any actions on behalf of the loan broker, or the loan broker's agents, or employees, which violate KRS 367.381.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 301, sec. 3, effective July 14, 1992.

367.385 Violation of KRS 367.381 deemed unlawful act under Consumer Protection Act -- Availability of Consumer Protection Act remedies -- Authority to promulgate administrative regulations.

(1) A violation of any provision of KRS 367.381 shall be deemed an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170.

(2) All of the remedies, powers, and duties delegated to the Attorney General by KRS 367.190 to 367.300, and the penalties provided in KRS 367.990, pertaining to acts and practices declared unlawful by KRS 367.170, shall be applied to acts and practices declared unlawful by KRS 367.381.

(3) Nothing in KRS 367.380 to 367.389 shall be construed to restrict the exercise of powers or the performance of the duties of the Attorney General, which he is authorized to exercise or perform by law.

(4) The Attorney General shall have the authority to promulgate administrative regulations as he deems necessary for the proper administration of KRS 367.380 to 367.389.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 301, sec. 4, effective July 14, 1992.

367.387 Remedies for borrower -- Time limitation.

(1) Any borrower who suffers a loss of money or property as a result of a violation of KRS 367.381 may bring an action against the loan broker, its principals, employees, or agents, and against the surety bond, or trust account, if any, of the loan broker. The action shall be brought in the county in which the solicitation was made, and recovery shall not exceed an amount equal to three (3) times his actual damages. The court may award to the prevailing party, in addition to the relief provided in this section, reasonable attorney's fees and costs.

(2) A permanent injunction, judgment, or order of the court obtained by the Attorney General pursuant to KRS 367.385 shall be prima facie evidence in an action brought under this section that the defendant used or employed a method, act, or practice declared unlawful by KRS 367.381.

(3) A person bringing an action under this section shall bring the action within one (1) year after any action brought by the Attorney General has been terminated, or two

(2) years after the violation occurred, whichever is later.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 301, sec. 5, July 14, 1992.

367.389 Nonexclusivity of remedies and penalties.

The remedies and penalties provided in KRS 367.385, 367.387, and 367.993 shall be in addition to any other remedies or penalties for any conduct provided for by common law or statute.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 301, sec. 6, effective July 14, 1992.

Consumer Credit Loan or Transaction Consumer Credit Loan or Transaction

367.390 Right to refinance consumer loan or consumer credit transaction -- Conditions -- Exception.

(1) With respect to a consumer loan or consumer credit transaction, other than one primarily for an agricultural purpose or one pursuant to a revolving loan account or a revolving charge account, if any scheduled payment is more than twice as large as the average of earlier scheduled payments, the debtor has the right to refinance the amount of that payment at the time it is due without penalty. The terms of the refinancing shall be no less favorable to the debtor than the terms of the original loan or consumer credit transaction. These provisions do not apply to the extent that the payment schedule is adjusted to the seasonal or irregular income of the debtor.

(2) Notwithstanding any other provision of this section, this section shall not apply to a consumer loan or consumer credit transaction directly between a debtor and a financial institution in connection with the purchase or construction of residential property where payment of such loan or transaction is secured by a mortgage lien upon such property.

Effective: July 15, 1980

History: Amended 1980 Ky. Acts ch. 170, sec. 1, effective July 15, 1980. -- Created 1972 Ky. Acts ch. 34, sec. 1.

Financial Institutions Financial Institutions

367.393 Certificates of deposit -- Renewal term and rate -- Violation and penalties.

(1) As used in this section, "financial institution" means a bank, trust company, savings and loan association, or credit union authorized by law to do business in this state.

(2) (a) A financial institution that issues a certificate of deposit that is subject to automatic renewal at maturity shall, upon automatic renewal, renew the certificate of deposit for a like term at the best available rate of interest as posted at the issuing financial institution for similarly issued certificates of like term.

(b) Any notice sent by the financial institution to the holder of a certificate of deposit subject to automatic renewal prior to maturity which notifies the holder of the holder's options upon renewal shall disclose that if the certificate of deposit automatically renews it will be renewed for a like term at the best available rate of interest as posted at the issuing financial institution for similarly issued certificates of like term.

(3) (a) Any violation of this section shall be an unfair, false, misleading, and deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170.

(b) All of the remedies, powers, and duties provided for the Attorney General in KRS 367.190 to 367.300, and all of the penalties provided in KRS 367.990, pertaining to acts declared unlawful by KRS 367.170, shall apply to acts and practices declared unlawful in this section.

Effective: July 13, 2004

History: Created 2004 Ky. Acts ch. 80, sec. 1, effective July 13, 2004.

Buying Clubs or Vacation Clubs Buying Clubs or Vacation Clubs

367.395 Definitions.

As used in KRS 367.397 to 367.407, unless the context requires otherwise:

(1) "Club" means any buying club or vacation club.

(2) "Contract" means any oral or written agreement by which one becomes a member of a club.

(3) "Buying club" means any person, corporation, unincorporated association, or other organization which for a consideration provides or purports to provide its members or the members of any other buying club with the ability to purchase goods or services at discount prices; except that such organization shall not include any buying club in which persons receive discount buying services incidentally as part of a package of services provided to, or available to, such individuals on account of membership in such organization which is not organized for the profit of any person or corporation or which does not have as one of its primary purposes or businesses the provision of discount buying services.

(4) "Member" or "membership" means a status by which any natural person is entitled to any of the benefits of a club.

(5) "Prepayment" means any payment for service or merchandise made before the service is rendered or the merchandise is received. It is not a prepayment if a payment for service is made on the same day the service is rendered. Money received by a club from a financial institution upon assignment of a contract shall be considered prepayment when and to the extent the member is required to make prepayments to the financial institution pursuant to the contract.

(6) "Vacation club" means any person, corporation, unincorporated association, or other organization which for a consideration provides or purports to provide its members or the members of any other vacation club with any vacation, vacation plan, or services connected with the scheduling of a vacation at discount prices.

Effective: July 15, 1988

History: Amended 1988 Ky. Acts ch. 62, sec. 1, effective July 15, 1988. -- Created 1982 Ky. Acts ch. 21, sec. 1, effective July 15, 1982.

367.397 Cancellation of club membership.

(1) Any person who has elected to become a member of a club may cancel such membership by giving written notice any time before midnight of the third business day following the date on which the person signs a contract containing the notice of "Members' Right to Cancel" required by KRS 367.399. Such cancellation shall be without liability on the part of the member and shall entitle the member to a refund of the entire consideration paid for the contract.

(2) Notice of cancellation shall be in writing and delivered personally or by mail. If given by mail, the notice is effective upon deposit in a mailbox, properly addressed and postage paid. Notice of cancellation need not take a particular form and is sufficient if it indicates, by any form of written expression, the intention of the member not to be bound by the contract. If delivered personally, the notice is to be accepted by any agent or employee of the club, and a receipt for the notice shall be given by that agent or employee to the person canceling.

(3) The entitled refund shall be delivered to the member within ten (10) days after notice of cancellation is given.

(4) Rights of cancellation may not be waived or otherwise surrendered.

(5) Cancellation shall not relieve the member from paying for any vacation or merchandise actually used by the consumer prior to the date of cancellation.

Effective: July 15, 2008

History: Amended 2008 Ky. Acts ch. 172, sec. 1, effective July 15, 2008. -- Amended 1988 Ky. Acts ch. 62, sec. 2, effective July 15, 1988. -- Created 1982 Ky. Acts ch. 21, sec. 2, effective July 15, 1982.

367.399 Membership contract requirements -- Disclosure of cancellation rights.

(1) A copy of every contract shall be delivered to the member at the time the contract is signed. Every contract shall be in writing, shall be signed by the member, shall designate the date on which the member signed the contract, and shall state, clearly and conspicuously in boldface type of a minimum size of fourteen (14) points, the following: "MEMBERS' RIGHT TO CANCEL" "KENTUCKY LAW GIVES YOU THREE (3) DAYS TO CANCEL YOUR AGREEMENT WITH US. If you wish to cancel this contract, you may cancel by delivering or mailing a written notice to the company. Certified mail would provide greater protection than first-class mail, but is not necessary. If you deliver the notice personally, you are entitled to a receipt. Your notice must make known that you do not wish to be bound by the contract. If the notice is delivered or mailed before midnight of the third business day after you sign this contract, you are entitled to a refund of the entire consideration paid for the contract. The notice must be delivered or mailed to (insert name and mailing address of company). If you cancel, the club is required to return, within ten (10) days of the date on which you give notice of cancellation, any payments you have made."

(2) Until the buying club or vacation club has complied with this section, the member may cancel the contract by notifying the club in any manner and by any means of the member's intention to cancel and is then entitled to a refund of the entire consideration paid for the contract.

Effective: July 15, 2008

History: Amended 2008 Ky. Acts ch. 172, sec. 2, effective July 15, 2008. -- Amended 1988 Ky. Acts ch. 62, sec. 3, effective July 15, 1988. -- Created 1982 Ky. Acts ch. 21, sec. 3, effective July 15, 1982.

367.401 Disclosure of refund requirement and that savings claims are based on comparisons with retailers doing business in area.

(1) Every contract shall provide that if any goods ordered by the member from the buying club are not delivered to the member or available for pickup by the member at a location within his county of residence within six (6) weeks from the date the member placed an order for such goods, then any moneys paid by the member for such goods in advance of delivery shall, upon the member's request, be fully refunded, unless a predetermined delivery date has been furnished to the member in writing at the time he or she ordered such goods and the goods are delivered to the member or are available for pickup by that date.

(2) Every contract shall provide that all savings claims made by the buying club are based on price comparisons with retailers doing business in the trade area in which the claims are made and with prices at which the merchandise is actually sold.

(3) Any contract which does not comply with subsections (1) and (2) of this section shall be void and unenforceable.

Effective: July 15, 1982

History: Created 1982 Ky. Acts ch. 21, sec. 4, effective July 15, 1982.

367.403 Bond requirement.

(1) Every club that has a membership fee in excess of thirty-five dollars ($35) shall maintain a bond of fifty thousand dollars ($50,000) issued by a surety company admitted to do business in this state.

(2) The bond required by this section shall be in favor of the Attorney General of the Commonwealth of Kentucky for the benefit of any member who suffers loss of prepayment made pursuant to a contract entered into after July 15, 1982, due to insolvency of the club or the cessation of business by the club, or failure by the club to perform under any contract. A copy of the bond shall be filed with the Attorney General prior to the making of any membership contract by a club. Any person claiming against the bond may maintain an action at law against the club and the surety. Failure to so maintain a bond as required by this section shall make the principals of any club personally liable for the claims of members.

(3) The aggregate liability of the surety to all persons for all breaches of the conditions of the bonds provided herein shall in no event exceed the amount of the bond.

Effective: July 15, 1988

History: Amended 1988 Ky. Acts ch. 62, sec. 4, effective July 15, 1988. -- Created 1982 Ky. Acts ch. 21, sec. 5, effective July 15, 1982.

367.405 Remedies, powers and duties of Attorney General.

(1) All of the remedies, powers, and duties provided for the Attorney General by KRS 367.190 to 367.300 appertaining to acts declared unlawful by KRS 367.170 shall apply with equal force and effect to acts declared unlawful by KRS 367.397 to 367.405.

(2) Nothing in KRS 367.397 to 367.407 shall be construed to limit or restrict the exercise of powers or the performance of the duties of the Attorney General which he is authorized to exercise or perform under any other provision of law.

Effective: July 15, 1982

History: Created 1982 Ky. Acts ch. 21, sec. 6, effective July 15, 1982.

367.407 Exemptions -- Conditions.

Any organization which is not organized for the profit of any person or corporation may file an application with the office of Attorney General to seek exemption from the provisions of KRS 367.397 to 367.403. The Attorney General shall grant an exemption to any applicant organization which:

(1) Is chartered or operated on a cooperative not-for-profit basis primarily for the benefit of its members who are the ultimate consumers of such goods, services, or facilities produced or furnished by the organization;

(2) Makes such goods, services or facilities available to its members on a not-for-profit basis;

(3) Allocates or distributes its net savings to all its members or patrons or retains net savings for the expansion of its services or for the reduction of charges to its patrons; and

(4) Restricts its voting control to members on a one (1) vote per person basis.

Effective: July 15, 1982

History: Created 1982 Ky. Acts ch. 21, sec. 8, effective July 15, 1982.

Solicitations After Accident Solicitations After Accident

367.4081 Definitions for KRS 367.4081 to 367.4083.

As used in KRS 367.4081 to 367.4083:

(1) "Healthcare provider" means an individual licensed by any of the following:

(a) The Kentucky Board of Medical Licensure, pursuant to KRS Chapter 311;

(b) The Kentucky Board of Chiropractic Examiners, pursuant to KRS Chapter 312;

(d) The Kentucky Board of Physical Therapy, pursuant to KRS Chapter 327;

(e) The Kentucky Board of Occupational Therapy, pursuant to KRS Chapter 319A; or

(f) The Kentucky Board for Massage Therapy, pursuant to KRS 309.350 to 309.364;

(2) "Intermediary" means an individual, including but not limited to a telemarketer, agent, employee, or contractor, who solicits a person, on behalf of a healthcare provider, for the provision of reparation benefits, as defined by KRS 304.39-020(2);

(3) "Person" means an individual who was involved in an automobile accident; and

(4) (a) "Solicit" means the initiation of communication with a person involved in a motor vehicle accident, including but not limited to any face-to-face contact with the person, in writing, electronically, or by any form of telephonic communication, in anticipation of financial gain or remuneration for the communication itself or for prospective charges for healthcare services.

(b) "Solicit" does not mean:

Advertising directed to the general public;
Telemarketing, which is;

a. Taken from a general list of phone numbers;

b. Not targeted at motor vehicle accident victims; and

c. Not in violation of the state's prohibition on telephone solicitation under KRS 367.46951 to 367.46999 and 367.990; or

Contact between a healthcare provider and an individual with whom the healthcare provider had a preexisting provider-patient relationship.

Effective: June 24, 2015

History: Created 2015 Ky. Acts ch. 46, sec. 1, effective June 24, 2015.

367.4082 Prohibited solicitation of person involved in motor vehicle accident by a healthcare provider or intermediary.

(1) During the first thirty (30) days following a motor vehicle accident a healthcare provider or an intermediary, at the request or direction of a healthcare provider, shall not solicit or knowingly permit another individual to solicit a person involved in a motor vehicle accident for the provision of reparation benefits, as defined by KRS 304.39-020(2).

(2) A healthcare provider shall not:

(a) Pay or receive compensation for the referral or solicitation of reparation benefits for a person involved in a motor vehicle accident;

(b) Provide monetary compensation or other consideration to any individual for the purpose of inducing, enticing, or directing the provision of reparation benefits for a person involved in a motor vehicle accident; or

(c) Contact, request, or direct an intermediary to contact, for the purpose of solicitation, a person involved in a motor vehicle accident during the first thirty (30) days following a motor vehicle accident.

(3) A healthcare provider shall be responsible for the content of any contact, made at the direction or request of the healthcare provider, by an intermediary with a person involved in a motor vehicle accident within the first thirty (30) days following the motor vehicle accident involving a person.

(4) Any healthcare provider having knowledge of facts, actual or direct, of a violation of this section by another healthcare provider, an intermediary, or on behalf of the healthcare provider within their scope of practice, shall report the suspected violation to the appropriate board listed in KRS 367.4081(1).

(5) An individual licensed or certified as a healthcare provider, who violates this section, shall be subject to the disciplinary process of the respective licensing or regulatory authority.

Effective: June 24, 2015

History: Created 2015 Ky. Acts ch. 46, sec. 2, effective June 24, 2015.

367.4083 Voiding of charges billed for health services rendered by healthcare provider in violation of KRS 367.4082.

(1) Any charges owed by, or on behalf of, a person involved in a motor vehicle accident for health services rendered by a healthcare provider to the person, in violation of KRS 367.4082, shall be void.

(2) Any charges billed and paid by, or on behalf of, a person of a motor vehicle accident for health services rendered by a healthcare provider to the person, in violation of KRS 367.4082, shall be returned to the reparations obligor or other payor. The healthcare provider who violates KRS 367.4082 shall not pursue collection from the person.

Effective: June 24, 2015

History: Created 2015 Ky. Acts ch. 46, sec. 3, effective June 24, 2015.

367.409 Repealed, 2015.

[Repealed]

Home Solicitation Sales Home Solicitation Sales

367.410 Definition of home solicitation sale.

As used in KRS 367.410 to 367.450, unless the context otherwise requires: "Home solicitation sale" means a sale of goods or services, including consumer loans, in which the seller or a person acting for him engages in a personal solicitation of the sale at a residence of the buyer and the buyer's agreement or offer to purchase is there given to the seller or a person acting for him. It does not include a sale made pursuant to prior negotiations between the parties, by telephone initiated by the buyer or at a business establishment at a fixed location where goods or services, including loans, are offered or exhibited for sale.

Effective: June 24, 2003

History: Amended 2003 Ky. Acts ch. 64, sec. 13, effective June 24, 2003. -- Created 1972 Ky. Acts ch. 29, sec. 1.

367.420 Buyer's right to cancel home solicitation sale -- Method of cancellation.

(1) Except for home solicitation sales on loans in which a security interest is taken in the principal dwelling of the buyer as provided in subsection (6) of this section, and except as provided in subsection (5) for other goods and services, including all other consumer loans, in addition to any right otherwise to revoke an offer, the buyer has the right to cancel a home solicitation sale until midnight of the third business day after the day on which the buyer signs an agreement or offer to purchase which complies with this part.

(2) Cancellation occurs when the buyer gives written notice of cancellation to the seller at the address stated in the agreement or offer to purchase.

(3) Notice of cancellation, if given by mail, is given when it is deposited in a mailbox properly addressed and postage prepaid.

(4) Notice of cancellation given by the buyer need not take a particular form and is sufficient if it indicates by any form of written expression the intention of the buyer not to be bound by the home solicitation sale.

(5) The buyer may not cancel a home solicitation sale if the buyer requests the seller to provide goods or services without delay because of an emergency, and

(a) The seller in good faith makes a substantial beginning of performance of the contract before the buyer gives notice of cancellation, and

(b) In the case of goods, the goods cannot be returned to the seller in substantially as good condition as when received by the buyer.

(6) For home solicitation sales on loans in which a security interest is taken in the principal dwelling of the buyer, the buyer shall have the right to rescind or cancel the transaction until midnight of the tenth business day following the later of the consummation of the loan transaction or the delivery of the material disclosures required under the Truth in Lending Act, 15 U.S.C. 1601 et seq.

Effective: April 24, 2008

History: Amended 2008 Ky. Acts ch. 175, sec. 33, effective April 24, 2008. -- Amended 2003 Ky. Acts ch. 64, sec. 14, effective June 24, 2003. -- Created 1972 Ky. Acts ch. 29, sec. 2.

367.430 Notice of buyer's right to cancel home solicitation sale -- Emergency sales exempted.

(1) In a home solicitation sale, unless the buyer requests the seller to provide goods or services in an emergency, the seller must present to the buyer and obtain his signature to a written agreement or offer to purchase which designates as the date of the transaction the date on which the buyer actually signs and contains a statement of the buyer's rights which complies with subsection (2).

(2) The statement must:

(a) Appear under the conspicuous caption: "BUYER'S RIGHT TO CANCEL," and

(b) Read as follows: "If this agreement was solicited to your residence and you do not want the goods or services, you may cancel this agreement by mailing a notice to the seller. The notice must say that you do not want the goods or services and must be mailed before midnight of the third business day after you sign this agreement. The notice must be mailed to: ...................................................................... ......................................................................"

(3) Until the seller has complied with this section the buyer may cancel the home solicitation by notifying the seller in any manner and by any means of his intention to cancel.

History: Amended 1974 Ky. Acts ch. 284, sec. 3. -- Created 1972 Ky. Acts ch. 29, sec. 3.

367.440 Return of evidence of sale to buyer after cancellation.

(1) Within ten (10) days after a home solicitation sale has been canceled or an offer to purchase revoked, the seller must tender to the buyer any payments made by the buyer and any note or other evidence of indebtedness.

(2) If the down payment includes goods traded in, the goods must be tendered in substantially as good condition as when received by the seller. If the seller fails to tender the goods as provided by this section, the buyer may elect to recover an amount equal to the trade-in allowance stated in the agreement.

(3) Until the seller has complied with the obligations imposed by this section the buyer may retain possession of goods delivered to him by the seller and has a lien on the goods in his possession or control for any recovery to which he is entitled.

History: Amended 1974 Ky. Acts ch. 284, sec. 1. -- Created 1972 Ky. Acts ch. 29, sec. 4.

367.450 Return of goods to seller after cancellation -- Time and place of return -- Seller's compensation -- Application of statute.

(1) (a) Except as provided by the provisions on retention of goods by the buyer in KRS 367.440(3), within a reasonable time after a home solicitation sale has been canceled or an offer to purchase revoked, the buyer upon demand shall tender to the seller any goods delivered by the seller pursuant to the sale but he or she is not obligated to tender at any place other than his or her residence.

(b) If the seller fails to demand possession of goods within a reasonable time after cancellation or revocation, the goods become the property of the buyer without obligation to pay for them.

(2) The buyer has a duty to take reasonable care of the goods in his or her possession before cancellation or revocation and for a reasonable time thereafter, during which time the goods are otherwise at the seller's risk.

(3) If the seller has performed any services pursuant to a home solicitation sale prior to its cancellation, the seller is entitled to no compensation.

(4) (a) As used in this subsection, "affiliate" means, as to any person, another person that, directly or indirectly through one (1) or more intermediaries, controls, is controlled by, or is under common control with the person.

(b) KRS 367.410 to 367.450 shall not apply to:

Any sale under twenty-five dollars ($25);
Any type of insurance sale; or
If the seller is, or the seller is an affiliate of a person that is, licensed by, registered with, or otherwise regulated by the Department of Insurance, the following:

a. Any sale of a service contract to repair, replace, or maintain consumer products; or

b. Any sale of goods or services related to insurance or a service contract to repair, replace, or maintain consumer products.

Effective: July 15, 2024

History: Amended 2024 Ky. Acts ch. 47, sec. 1, effective July 15, 2024. -- Amended 1974 Ky. Acts ch. 284, sec. 4. -- Created 1972 Ky. Acts ch. 29, sec. 5.

367.460 Status of waiver of rights provided under KRS 367.410 to 367.450 by buyer.

Any waiver by the buyer of rights provided in KRS 367.410 to 367.450 is null and void, and will not operate to relieve the seller of any obligation placed upon him by KRS 367.410 to 367.450 or this section.

History: Created 1974 Ky. Acts ch. 284, sec. 2.

Telephone Solicitations Telephone Solicitations

367.461 Conditions for use of automated calling equipment.

(1) As used in KRS 367.461 to 367.469, "automated calling equipment" means any device or combination of devices which is used to select or dial telephone numbers and to deliver recorded messages to the numbers so selected or dialed.

(2) Unless the conditions set out in paragraphs (a) to (f) of this subsection are met, no person shall use automated calling equipment, or cause it to be used, for conducting polls, for soliciting information, or for advertising goods, services, or property:

(a) The person receiving the call consents to it, as specified in KRS 367.463;

(b) The recorded message clearly states the name and telephone number of the person or organization initiating the call within the first twenty-five (25) seconds of the message and at the conclusion of the message. That telephone number given in the recorded message shall, during normal office hours, be answered promptly and personally by an agent of the person or organization on whose behalf the automatic calls are made, who is able to provide information concerning the automatic calls;

(c) The automated calling equipment terminates its connection with any telephone call within ten (10) seconds after the person called either fails to consent to hear a recorded message or hangs up the telephone;

(d) The use does not involve either the random or sequential dialing of telephone numbers, does not call telephone numbers which are omitted from the telephone directory at the customer's request, and does not call hospitals, nursing homes, fire protection agencies, or law enforcement agencies;

(e) Calls using the automated calling equipment are made only between 8:00 a.m. and 9:00 p.m.; and

(f) The automated calling equipment operates only when it is attended and is designed or installed so that it does not operate without an attendant, even in the event of power failures.

(3) Nothing in this section prohibits the use of automated calling equipment to make calls with recorded messages or an artificial voice when the calls:

(a) Are made in response to calls initiated by the person to whom the automatic call or recorded message is directed;

(b) Concern goods or services, or the availability of same which were previously ordered or purchased;

(d) Are made by a public school as part of a program to regulate and control absenteeism of students;

(e) Are reminders and notices of meetings and activities of organizations of which the person called is a member or a subscribed consumer of the services of the organization, or are made to a person with whom there is an existing business relationship; or

(f) Are made to a publicly available telephone number which the business intends to be called by customers or potential customers, in relation to subject matter that is customary for such calls, including but not limited to inquiring about and booking reservations, inquiring about or initiating purchases, seeking information such as hours of operation, directions, merchandise availability, or other information provided to, or sought by, customers in the ordinary course of business. A person or company making calls under this paragraph shall not sell the name or personal information of any individual using its services. The person or company shall only disseminate the name and personal information of the individual for whom it is making the call during the actual call and only to the extent that such information would be disclosed by the individual if he or she were making the call on his or her own behalf.

Effective: July 15, 2020

History: Amended 2020 Ky. Acts ch. 71, sec. 1, effective July 15, 2020. -- Created 1992 Ky. Acts ch. 32, sec. 1, effective July 14, 1992.

367.463 Consent to calls made with automated calling equipment -- Written consent -- Withdrawal of written consent -- Period of validity of written consent.

(1) A person may consent to a call made with automated calling equipment when:

(a) A live operator introduces the call and states an intent to play a recorded message; or

(b) By using the telephone keypad to provide a consent response. Consent obtained pursuant to this subsection applies only to the particular call and does not constitute prior consent to receive further calls through automated calling equipment.

(2) A person may consent to receive telephone calls through automated calling equipment by giving written consent to the person using automated calling equipment or causing it to be used.

(a) Any form used to obtain written consent shall state clearly and conspicuously its purpose and effect and shall clearly and conspicuously give notice of how the consent can be withdrawn.

(b) A record of written consent shall be maintained by the person to whom consent is given and shall be made available to the Attorney General or his authorized representative during normal business hours and upon twenty-four

(24) hours' notice.

(c) A written consent to receive telephone calls through automated calling equipment shall be void on and after the fifteenth day after receipt of a letter withdrawing the consent.

(d) Unless withdrawn, a written consent shall be valid for two (2) years from the date on which it is executed; the record of written consent shall be maintained by the person to whom consent is given for at least the same period of time.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 32, sec. 2, effective July 14, 1992.

367.465 Prohibitions relating to use of automated calling equipment to solicit calls for telephone fee lines.

(1) As used in this section, "telephone fee line" means a telephone number with a charge attached to calling it, whereby the telephone company as billing agent charges the caller an amount for accessing the line in addition to applicable rates, if any, for the telephone call.

(2) No person shall use automated calling equipment, or cause it to be used, to solicit persons to call a telephone fee line under his control.

(3) No telephone company shall knowingly provide a telephone fee line to a person who solicits calls to that line through the use of automated calling equipment. A telephone company shall, on order of the Attorney General, withdraw control of a telephone fee line from any person if calls to that line are solicited by automated calling equipment.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 32, sec. 3, effective July 14, 1992.

367.467 Applicability of remedies of Consumer Protection Act.

(1) Any violation of KRS 367.461, 367.463, or 367.465 shall be an unfair, false, misleading, and deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170.

(2) All of the remedies, powers, and duties provided for the Attorney General in KRS 367.190 to 367.300, and all of the penalties provided in KRS 367.990, pertaining to acts declared unlawful by KRS 367.170, shall apply to acts and practices declared unlawful in KRS 367.461, 367.463, and 367.465.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 32, sec. 4, effective July 14, 1992.

367.469 Requirement of permit from Attorney General -- Surety bond -- Authority to promulgate administrative regulations.

(1) Unless covered by one (1) of the exceptions in KRS 367.461(3), and prior to using automated calling equipment to call telephone numbers in this Commonwealth, a person or company shall first obtain a permit from the Attorney General. The application for permit shall include:

(a) Name, address, and telephone number of the company or person utilizing the equipment;

(b) If the address required by paragraph (a) of this subsection is not in Kentucky, the name and address of a designated agent for the automated calling equipment operator located in Kentucky;

(c) A surety bond executed by the automated calling equipment operator from a surety company authorized to do business in this Commonwealth for the sum of ten thousand dollars ($10,000), to be maintained continuously in full force and effect. The Attorney General may accept an alternate form of surety, such as a letter of credit, for an operator demonstrating financial responsibility.

(2) The Attorney General shall promulgate administrative regulations to govern the issuance, revocation, suspension, or reissuance of permits for automated calling equipment operators utilizing equipment to call telephone numbers located in Kentucky. The Attorney General may revoke permits for any violation of KRS 367.461, 367.463, or 367.465, following an administrative hearing conducted in accordance with KRS Chapter 13B.

Effective: July 15, 1996

History: Created 1992 Ky. Acts ch. 32, sec. 5, effective July 14, 1992; and ch. 318, sec. 348, effective July 15, 1996.

367.46951 Definitions for KRS 367.46951 to 367.46999 and 367.990.

As used in KRS 367.46951 to 367.46999 and 367.990, unless the context otherwise requires:

(1) "Telephone solicitation" means:

(a) A live or recorded communication sent by a telephone or message sent by a facsimile machine to a residential, mobile, or telephone paging device telephone number, including a call made by an automatic dialing or recorded message device, for the purpose of:

Soliciting a sale of consumer goods or services, offering an investment, business, or employment opportunity, or offering a consumer loan to the person called;
Obtaining information that will or may be used for the solicitation of a sale of consumer goods or services, the offering of an investment, business, or employment opportunity, or the offering of a consumer loan to the person called;
Offering the person called a prize, gift, or anything else of value, if payment of money or other consideration is required in order to receive the prize or gift, including the purchase of other merchandise or services or the payment of any processing fees, delivery charges, shipping and handling fees, or other fees or charges; or
Offering the person called a prize, gift, or other incentive to attend a sales presentation for consumer goods or services, an investment or business opportunity, or a consumer loan; or

(b) A live or recorded communication sent by telephone, facsimile machine, mobile telephone, or telephone paging device in response to inquiries generated by unrequested notifications sent by the merchant to persons who have not previously purchased goods or services from the merchant or telemarketer or who have not previously requested credit from the merchant, to a prospective purchaser if the merchant or telemarketer represents or implies to the recipient of the notification that any of the following applies:

That the recipient has in any manner been specially selected to receive the notification or the offer contained in the notification;
That the recipient will receive a prize or gift if the recipient calls the merchant or telemarketer; or
That if the recipient buys one (1) or more items from the merchant or telemarketer, the recipient will also receive additional or other items of the same or a different type at no additional cost or for less than the regular price of the items;

(2) "Telephone solicitation" does not mean the following:

(a) A telephone call made in response to an express request of a person called, unless the request was made during a prior telephone solicitation;

(b) A telephone call made to the debtor or a party to the contract in connection with the payment or performance of an existing debt or contract, the payment or performance of which has not been completed at the time of the call;

(c) A telephone call to any person with whom the telemarketer or merchant has a prior or existing business relationship, including but not limited to the solicitation of contracts for the maintenance or repair of items previously purchased from the person making the solicitation or on whose behalf the solicitation is made;

(d) A telephone call made by the following:

A merchant or telemarketer located in Kentucky to a location outside of the Commonwealth of Kentucky;
A telephone call made by one (1) merchant to another;

(3) "Consumer goods or services" means goods, services, or interests in real property used by natural persons primarily for personal, family, or household purposes;

(4) "Consumer loan" means any extension of credit, including credit cards and other forms of revolving credit, to a natural person primarily for the purposes of purchasing consumer goods or services or for paying existing personal, family, or household debts;

(5) "Consumer" means a natural person who receives a telephone solicitation;

(6) "Legal name of the merchant" means the real name of the merchant, as defined in KRS 365.015(1), or the assumed name of the merchant for which all proper certificates have been filed pursuant to KRS 365.015;

(7) "Merchant" means the individual or business entity offering the consumer goods or services, an investment, business, or employment opportunity, or a consumer loan;

(8) "Caller" or "sales person" means the individual making the call or operating the automatic dialing or recorded message device and causing the call to be made;

(9) "Office" means the Office of Consumer Protection in the Office of the Attorney General;

(10) "Automated calling equipment" means any device or combination of devices used to select or dial telephone numbers and to deliver recorded messages to those numbers without the use of a live operator;

(11) "Telemarketer" means any person who under contract with a merchant or in connection with a telephone solicitation initiates or receives telephone calls to or from a consumer of goods and services. A telemarketer includes but is not limited to any such person that is an owner, operator, officer, director, or partner to the management activities of a business;

(12) "Publicly traded corporation" means an issuer or subsidiary of an issuer that has a class of securities which is:

(a) Subject to Section 12 of the Securities Exchange Act of 1934 (15 U.S.C. sec. 78l) and which is registered or exempt from registration under paragraph (A), (B), (C), (E), (F), (G), or (H) of subsection (g)(2) of that section;

(b) Listed on the New York Stock Exchange, the American Stock Exchange, or the NASDAQ National Market System; or

(c) A reported security within the meaning of subparagraph (4) of Regulation Section 240.11Aa3-1.(a) under the Securities Exchange Act of 1934. A subsidiary of an issuer that qualifies for exemption under this paragraph shall not itself be exempt unless at least sixty percent (60%) of the voting power of its shares is owned by the qualifying issuer;

(13) "Telemarketing company" means a company whose primary business is to engage in telephone solicitation; and

(14) "Zero call list" means the national Do Not Call Registry maintained by the United States Federal Trade Commission containing the residential or wireless telephone numbers of the individuals that indicate their preference not to receive telephone solicitations.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 15, effective April 5, 2024. -- Amended 2007 Ky. Acts ch. 115, sec. 1, effective June 26, 2007. -- Amended 2002 Ky. Acts ch. 21, sec. 1, effective July 15, 2002. -- Amended 1998 Ky. Acts ch. 426, sec. 573, effective July 15, 1998; and ch. 581, sec. 1, effective July 15, 1998. -- Created 1994 Ky. Acts ch. 302, sec. 1, effective July 15, 1994; and ch. 463, sec. 1, effective July 15, 1994. Legislative Research CommissionNote (7/15/94). This statute was created by 1994 Ky. Acts chs. 302 and 463, which are substantively identical and have been codified together. Minor variations have been resolved by giving precedence to Acts ch. 463 which was enacted last.

367.46953 Requirements for making telephone solicitation.

A caller making a telephone solicitation shall:

(1) Immediately upon making contact by telephone with the consumer, state his actual name, the merchant's legal name, a telephone number or address at which the merchant may be contacted, and the town or city and state where the caller is physically located;

(2) Within the first thirty (30) seconds of the call, identify the goods, services, interest in real estate, investment or business opportunity, or type of credit being offered and inquire whether the consumer is interested in listening to a sales presentation; and

(3) Immediately discontinue the solicitation if the consumer responds in the negative.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 302, sec. 2, effective July 15, 1994; and ch. 463, sec. 2, effective July 15, 1994.

Legislative Research Commission Note (7/15/94). This statute was created by 1994 Ky. Acts chs. 302 and 463, which are substantively identical and have been codified together. Minor variations have been resolved by giving precedence to Acts ch. 463 which was enacted last.

367.46955 Prohibited telephone solicitation acts and practices.

It is a prohibited telephone solicitation act or practice and a violation of KRS 367.46951 to 367.46999 for any person making a telephone solicitation through telecommunications services or interconnected Voice over Internet Protocol or VoIP service to engage in the following conduct:

(1) Advertising or representing that registration as a telemarketer equals an endorsement or approval by any government or governmental agency;

(2) Requesting a fee in advance to remove derogatory information from or improve a person's credit history or credit record;

(3) Requesting or receiving a payment in advance from a person to recover or otherwise aid in the return of money or any other item lost by the consumer in a prior telephone solicitation transaction;

(4) Requesting or receiving payment of any fee or consideration in advance of obtaining a loan or other extension of credit when the telemarketing company has guaranteed or represented a high likelihood of success in obtaining or arranging a loan or other extension of credit for a person;

(5) Obtaining or submitting for payment a check, draft, or other form of negotiable paper drawn on a person's checking, savings, or bond or other account without the consumer's express written authorization, or charging a credit card account or making electronic transfer of funds except in conformity with KRS 367.46963;

(6) Procuring the services of any professional delivery, courier, or other pickup service to obtain immediate receipt or possession of a consumer's payment, unless the goods are delivered with the opportunity to inspect before any payment is collected;

(7) Assisting, supporting, or providing substantial assistance to any telemarketer when the telemarketing company knew or should have known that the telemarketer was engaged in any act or practice prohibited under this section;

(8) Making a telephone solicitation to anyone under eighteen (18) years of age. When making a telephone solicitation the telemarketer shall inquire as to whether the person is eighteen (18) years of age or older and the answer shall be presumed to be correct;

(9) (a) Causing misleading caller identification information to be transmitted to users of caller identification services, or to otherwise misrepresent the origin of the telephone solicitation.

(b) 1. This subsection shall not apply to solicitations which block caller identification, nor shall it apply to solicitations in which the name and telephone number of the party on whose behalf the call is made is substituted for the name and telephone number of the actual caller.

This subsection shall not apply to a telecommunications, broadband, or Voice over Internet Protocol service provider that is:

a. Acting in the telecommunications, broadband, or Voice over Internet Protocol service provider's capacity as an intermediary for the transmission of telephone service between the caller and the recipient;

b. Providing or configuring a service or service feature as requested by the customer;

c. Acting in a manner that is authorized or required by applicable law; or

d. Engaging in other conduct that is necessary to provide service;

(10) Directing or permitting employees to use a fictitious name or not to use their name while making a telephone solicitation;

(11) Threatening, intimidating, or using profane or obscene language;

(12) Causing the telephone to ring more than thirty (30) seconds in an intended telephone solicitation;

(13) Engaging any person repeatedly or continuously with behavior a reasonable person would deem to be annoying, abusive, or harassing;

(14) Initiating a telephone solicitation call to a person, when that person has stated previously that he or she does not wish to receive solicitation calls from that seller;

(15) Making or causing to be made an unsolicited telephone solicitation call if the residential number for that telephone appears in the current publication of the national Do Not Call Registry maintained by the United States Federal Trade Commission;

(16) Making telephone solicitations to a person's residence at any time other than between 10 a.m. - 9 p.m. local time, at the called person's location;

(17) Selling or making available for economic gain any information revealed during a telephone solicitation without the express written consent of the consumer;

(18) Making a telephone solicitation to any residential telephone using an artificial or prerecorded voice to deliver a message, unless the call is initiated for emergency purposes by schools regulated by the Kentucky Department of Education or the call is made with the prior express consent of the called party; or

(19) Engaging in any unfair, false, misleading, or deceptive practice or act as part of a telephone solicitation.

Effective: June 27, 2019

History: Amended 2019 Ky. Acts ch. 105, sec. 1, effective June 27, 2019. -- Amended 2018 Ky. Acts ch. 145, sec. 1, effective July 14, 2018. -- Amended 2007 Ky. Acts ch. 115, sec. 2, effective June 26, 2007. -- Amended 2002 Ky. Acts ch. 21, sec. 2, effective July 15, 2002. -- Created 1998 Ky. Acts ch. 581, sec. 3, effective July 15, 1998.

Legislative Research Commission Note (07/15/2002). Under the authority of KRS 7.136, the Reviser of Statutes has corrected a clearly erroneous statutory reference in subsection (5) of this section as enacted in 2002 Ky. Acts ch. 21, sec. 2, by changing "KRS 367.46953" to "KRS 367.46963."

367.46957 Contract or agreement voidable by consumer if resulting from nonconforming telephone solicitation.

A contract or agreement made as a result of a telephone solicitation violating KRS 367.46951 to 367.46999 is voidable by the consumer for any reason at any time and shall not be enforced against the consumer.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 302, sec. 3, effective July 15, 1994; and ch. 463, sec. 3, effective July 15, 1994.

367.46961 Cancellation of contract not reduced to writing -- Exception.

(1) Unless the contract is reduced to writing in compliance with subsection (4) of this section, a consumer may cancel a contract made as a result of a telephone solicitation and obtain a full refund of all money paid, by returning the goods, if any, undamaged and unused, or canceling services within the later of:

(a) Fourteen (14) calendar days following receipt of the goods; or

(b) Fourteen (14) calendar days following receipt of two (2) copies of a written notice of cancellation rights containing the following language in no less than ten (10) point, bold-faced type: NOTICE OF CANCELLATION RIGHTS BECAUSE YOU AGREED TO BUY THESE GOODS (or services or other appropriate description) AS A RESULT OF AN UNSOLICITED TELEPHONE CALL, KENTUCKY LAW GIVES YOU FOURTEEN

(14) DAYS TO CANCEL YOUR AGREEMENT WITH US. IF YOU WANT TO CANCEL, YOU MUST SIGN YOUR NAME BELOW AND RETURN A COPY OF THIS NOTICE, TOGETHER WITH ANY GOODS YOU HAVE RECEIVED, SO THEY ARE POSTMARKED NO LATER THAN MIDNIGHT OF THE FOURTEENTH DAY FOLLOWING THE DATE YOU RECEIVED THE GOODS OR AGREED TO THE SERVICES, OR THE FOURTEENTH DAY FOLLOWING THE DATE YOU RECEIVED THIS NOTICE, WHICHEVER IS LATER. THE NOTICE AND GOODS MUST BE ADDRESSED AS FOLLOWS: (Name and address of Merchant) I want to cancel my agreement to purchase. ____________________________________ (Signature) ____________________________________ (Name of Consumer - Printed) ____________________________________ (Address of Consumer - Printed) ____________________________________ (Address - City, State, Zip) ____________________________________ (Date)

(2) The consumer shall be deemed to have complied with subsection (1) of this section if the cancellation notice and goods, if any, are returned to the merchant and are postmarked by midnight of the fourteenth day.

(3) The merchant shall process the refund due any consumer within thirty (30) days of receiving the merchandise returned by the consumer or the written cancellation provided in subsection (1) of this section.

(4) The cancellation period provided in subsection (1) of this section shall not apply to a written contract signed by the consumer that:

(a) Complies with all applicable federal and state laws and regulations:

(b) Contains a description of the goods, services, investment or business opportunity, extension of credit, or interest in realty matching the description used in the telephone solicitation;

(c) Contains the name, address, and telephone number of the merchant, the total price of the contract, including any finance or interest charges, and a detailed description of the goods, services, credit, or interest in realty being offered;

(d) Contains all oral or written representations made to the consumer in connection with the transaction; and

(e) Sets out in at least ten (10) point, bold-face type, immediately preceding the signature, the following statement: YOU ARE NOT OBLIGATED TO PAY ANY MONEY UNLESS YOU SIGN THIS CONTRACT AND RETURN IT TO THE MERCHANT.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 302, sec. 4, effective July 15, 1994; and ch. 463, sec. 4, effective July 15, 1994.

367.46963 Requirements to be met before accepting payment from or charging consumer.

No caller or merchant making or causing to be made a telephone solicitation shall request or accept payment from a consumer or make or submit any charge to the consumer's credit or bank account until either:

(1) The merchant receives from the consumer a signed copy of a written contract complying with KRS 367.46961(4); or

(2) The cancellation period provided in KRS 367.46961(1) has expired, and the consumer has not exercised his right to cancel.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 302, sec. 5, effective July 15, 1994; and ch. 463, sec. 5, effective July 15, 1994.

367.46967 Violation as unfair or deceptive trade practice -- Powers of Attorney General.

(1) A violation by a telemarketing company, telemarketer, caller, or merchant of KRS 367.46951 to 367.46999 shall constitute an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170.

(2) All of the remedies, powers, and duties provided for the Attorney General by KRS 367.190 to 367.300 and the penalties provided in KRS 367.990, relating to acts and practices violating KRS 367.170 shall apply with equal force and effect to acts and practices declared unlawful by KRS 367.46951 to 367.46999.

(3) Nothing in KRS 367.46951 to 367.46999 shall be construed to limit or restrict the exercise of powers or the performance of the duties of the Attorney General authorized under any other provision of law.

Effective: July 15, 2002

History: Amended 2002 Ky. Acts ch. 21, sec. 7, effective July 15, 2002. -- Created 1994 Ky. Acts ch. 302, sec. 6, effective July 15, 1994; and ch. 463, sec. 6, effective July 15, 1994.

367.46971 Registration of telemarketing companies doing business in this state --

Filing fee -- Renewal -- Addendum -- Written confirmation of receipt of filing - - Posting of registration statement.

(1) At least ten (10) days prior to doing business in this state, a telemarketing company shall register with the office by filing the information described below and paying a filing fee of three hundred dollars ($300). A telemarketing company shall be deemed to do business in this state if the telemarketing company solicits prospective purchasers from locations in this state or solicits prospective purchasers who are located in this state. The information required by this section shall be submitted on a form provided by the Attorney General and shall be verified by a declaration signed by each principal of the telemarketing company, under penalty of perjury. The declaration shall specify the date and location of signing. Information submitted pursuant to KRS 367.46951 to 367.46999 shall be clearly identified and appended to the filing.

(2) Registration of a telemarketing company shall be valid for one (1) year from the effective date thereof and may be renewed annually by making the filing required by this section and paying a filing fee of fifty dollars ($50).

(3) If, prior to expiration of a telemarketing company's annual registration, there is a material change in the information required by KRS 367.46951 to 367.46999, the telemarketing company shall, within ten (10) days, file an addendum updating the information with the office. However, changes in salespersons soliciting on behalf of a telemarketing company shall be updated by filing addenda, if necessary, in quarterly intervals computed from the effective date of registration. The addendum shall include the required information for all salespersons currently soliciting or having solicited on behalf of the telemarketing company at any time during the period between the filing of the registration, or the last addendum, and the current addendum, and shall include information on salespersons no longer soliciting for the telemarketing company as of the date of the filing of the current addendum.

(4) Upon receiving the filing and the filing fee pursuant to this section, the office shall send the telemarketing company a written confirmation of receipt of the filing. If the telemarketing company has more than one (1) business location, the written confirmation shall be sent to the telemarketing company's principal business location as identified in the telemarketing company's filing in sufficient numbers so that the telemarketing company can meet the requirements of this subsection. Within ten (10) days of receipt of the confirmation, the telemarketing company shall post in a conspicuous place at each of the telemarketing company's business locations within this state a copy of the entire registration statement which has been filed with the office. Until confirmation of receipt of filing is received and posted, the telemarketing company shall post in a conspicuous place at each of the telemarketing company's business locations within this state a copy of the first page of the registration form sent to the department. The telemarketing company shall also post in close proximity to either the confirmation of receipt of filing or the first page of the submitted registration form the name of the individual in charge of each location from which the telemarketing company does business in this state.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 16, effective April 5, 2024. -- Amended 2007 Ky. Acts ch. 115, sec. 3, effective June 26, 2007. -- Amended 2002 Ky. Acts ch. 21, sec. 3, effective July 15, 2002. -- Created 1994 Ky. Acts ch. 302, sec. 7, effective July 15, 1994; and ch. 463, sec. 7, effective July 15, 1994.

367.46973 Contents of filing.

Each filing pursuant to KRS 367.46971 shall contain the following information:

(1) The name or names of the telemarketing company, including the name under which the telemarketing company is doing or intends to do business, if different from the name of the telemarketing company, and the name of any parent or affiliated organization that will engage in business transactions with purchasers relating to sales solicited by the telemarketing company, or that accepts responsibility for statements made by, or acts of, the telemarketing company relating to sales solicited by the telemarketing company;

(2) The telemarketing company's business form and place of organization and, if the telemarketing company is a corporation, a copy of its articles of incorporation and bylaws and amendments to those, or, if a partnership, a copy of the partnership agreement, or if operating under a fictitious business name, the location where the fictitious name has been registered, along with a copy of the registration documents. The same information shall be included for any parent or affiliated organization disclosed pursuant to subsection (1) of this section;

(3) The complete street address of all locations designating the principal location from which the telemarketing company will be conducting business. If the principal business location of the telemarketing company is not in this state, then the telemarketing company shall also designate which of its locations within this state is its main location;

(4) A listing of all telephone numbers to be used by the telemarketing company and the address where each telephone using each of these telephone numbers is located;

(5) The name of and the office held by the telemarketing company's officers, directors, trustees, general and limited partners, sole proprietor, and owners and the names of persons having management responsibilities in the telemarketing company's business activities;

(6) The principal residence, the date of birth, and the driver's license number and state of issuance of each person named pursuant to subsection (5) of this section;

(7) The name and principal residence of each person the telemarketing company leaves in charge at each location in which the telemarketing company does business in this state, and the business location at which each of these persons is in charge;

(8) A statement, meeting the requirements of this subsection, as to both the telemarketing company, whether a corporation, partnership, firm, association, joint venture, or any other type of business entity and as to any person identified pursuant to subsection (5) or (7) of this section who:

(a) Has been convicted of a felony or a misdemeanor involving a violation of this article, or fraud, theft, embezzlement, fraudulent conversion, or misappropriation of property. For purposes of this paragraph, a plea of nolo contendere shall be considered a conviction;

(b) Has had entered against him a final judgment or order in a civil or administrative action, including a stipulated judgment or order, if the complaint or petition in the civil or administrative action alleged acts constituting a violation of KRS 367.46951 to 367.46999, fraud, theft, embezzlement, fraudulent conversion, or misappropriation of property, the use of untrue or misleading representations in an attempt to sell or dispose of real or personal property, or the use of unfair, unlawful, or deceptive business practices;

(c) Is subject to an injunction or restrictive court order relating to business activity as the result of an action brought by a federal, state, or local public agency or unit of that agency, including but not limited to an action affecting any vocational license; or

(d) Has during the previous seven (7) tax years filed in bankruptcy, been adjudged a bankrupt, been reorganized due to insolvency, or been a principal, director, officer, trustee, general or limited partner, or had management responsibilities of any other corporation, partnership, joint venture, or business entity that has so filed or was so adjudicated or reorganized, during or within one (1) year after the period that the person held that position. The statement required by paragraphs (a), (b), and (c) of this subsection shall identify the telemarketing company or person, the court or administrative agency rendering the conviction, judgment, or order, the docket number of the matter, the date of the conviction, judgment, or order, and the name of the governmental agency, if any, that brought the action resulting in the conviction, judgment, or order. For purposes of paragraph (d) of this section, the statement required shall include the name and location of the telemarketing company or person filing in bankruptcy, adjudged a bankrupt, or reorganized due to insolvency, and shall include the date thereof, the court which exercised jurisdiction, and the docket number of the matter;

(9) A list of the names, driver's license numbers and states of issuance, principal residence addresses, and telephone numbers of salespersons who solicit on behalf of the telemarketing company, and any names the salesperson uses while soliciting;

(10) A description of the items the telemarketing company is offering for sale and a copy of all sales scripts the telemarketing company requires salespersons to use when soliciting prospective purchasers. If no sales script is required to be used, a statement to that effect shall be included;

(11) A copy of all sales information and literature including but not limited to scripts, outlines, instructions, and information regarding how to conduct telephonic sales, sample introductions, sample closings, product information, and contest or premium-award information provided by the telemarketing company to salespersons or of which the telemarketing company informs salespersons, and a copy of all written materials the telemarketing company sends to any prospective or actual purchaser;

(12) (a) If the telemarketing company represents or implies, or directs salespersons to represent or imply, to purchasers that the purchaser will receive certain specific items, including a certificate of any type which the purchaser must redeem to obtain the item described in the certificate, or one (1) or more items among designated items, whether the items are denominated as gifts, premiums, bonuses, prizes, or otherwise, the filing shall include the following:

A list of the items offered;
The actual value or worth of each item described to prospective purchasers and the basis for the valuation; and
The price paid by the telemarketing company to its supplier for each of these items and the name, address, and telephone number of each item's supplier;

(b) If the purchaser is to receive fewer than all of the items described by the telemarketing company, the filing shall include the following:

The manner in which the telemarketing company decides which item each prospective purchaser is to receive;
The odds a single prospective purchaser has of receiving each described item;
The name and address of each recipient who has, during the preceding twelve (12) months, or if the telemarketing company has not been in business that long, during the period the telemarketing company has been in business, received the item having the greatest value and the item with the smallest odds of being received; and
All rules, regulations, terms, and conditions a prospective purchaser must meet in order to receive the item; and

(13) If the telemarketing company is offering an investment, business, or employment opportunity, the filing shall include the following:

(a) The number of consumers or investors who have participated to date;

(b) The actual experience of the consumers or investors as measured by standards used in the sales presentations; and

(c) If the opportunity is so recent that no actual performance experience exists, that fact shall be disclosed in all sales presentations, and no other representation of performance shall be made in sales presentations.

Effective: June 26, 2007

History: Amended 2007 Ky. Acts ch. 115, sec. 4, effective June 26, 2007. -- Created 1994 Ky. Acts ch. 302, sec. 8, effective July 15, 1994; and ch. 463, sec. 8, effective July 15, 1994.

367.46977 Disclosure requirements for sale presentations.

(1) If the merchant or telemarketer represents or implies that the consumer will receive a prize, award, or similar item of value from a number of such prizes or awards, all sales presentations shall include the actual number of individuals who have received the item having the greatest value, a description of the item, the market value of the item, the number of prizes to be awarded, the conditions to receive the item, the odds of winning, the statement that no purchase is necessary to win the prize or to participate in the promotion, and the actual number of individuals who have received the item with the least value within the preceding twelve (12) months or since the merchant or telemarketer has been in business if less than twelve (12) months.

(2) If the merchant or telemarketer is offering real estate, an investment, business, or employment opportunity, the sales presentation shall include the following:

(a) The number of consumers or investors who have participated to date;

(b) The actual experience of the consumers or investors as measured by the standards used in the sales presentations; and

(d) The location of the real estate or investment;

(e) Regarding an investment or business opportunity, the reasonable likelihood of success and a notice of the risk; and

(f) If the opportunity is so recent that no actual performance experience exists, that fact shall be disclosed in all sales presentations, and no other representation of performance shall be made in sales presentations.

(3) If the sales presentation includes representations of prices below those usually charged for items, the sales presentation shall include the name of the manufacturer, importer, or supplier of such items and the locations within the merchant's or telemarketer's calling state or this state at which the items are offered at usual prices. If the item has never been sold in the merchant's or telemarketer's calling state or this state no representation of usual selling price shall be made.

(4) If presenting information on merchandise or service, the total cost of the goods or services that are the subject of the call shall be given.

(5) If any restrictions, limitations, or conditions for the purchase or investment exist, these shall be disclosed during the telephone sales presentation.

(6) Terms for refunds, cancellation, exchange, or repurchase of the subject of the sales presentation shall be disclosed during the telephone sales presentation.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 581, sec. 2, effective July 15, 1998. -- Created 1994 Ky. Acts ch. 302, sec. 9, effective July 15, 1994; and ch. 463, sec. 9, effective July 15, 1994.

367.46981 Bond required for telemarketing companies -- Notification to Attorney General of promotion offering premium.

(1) Every telemarketing company shall maintain a bond issued by a surety company admitted to do business in this state. The bond shall be in the amount of fifty thousand dollars ($50,000) in favor of the Attorney General for the benefit of any person suffering injury or loss by reason of any violation of KRS 367.46951 to 367.46999 to be paid under the terms of any order of a court of competent jurisdiction obtained by the Attorney General, as a result of any violation of KRS 367.46951 to 367.46999. A copy of the bond shall be filed with the office.

(2) At least ten (10) days prior to the inception of any promotion offering a premium with an actual market value or advertised value of five hundred dollars ($500) or more, the telemarketing company shall notify the Attorney General in writing of the details of the promotion, describing the premium and its current market value, the value at which it is advertised or held out to the customer, the date the premium shall be awarded, and the conditions under which the award shall be made. The telemarketing company shall maintain an additional bond for the greater of the current total market value or the advertised value of the premiums held out or advertised to be available to a purchaser or recipient. A copy of the bond shall be filed with the office. The bond, or a portion of it necessary to cover the cost of the award, shall be forfeited if the premium is not awarded to a bona fide customer within thirty (30) days of the date disclosed as the time of award or the time otherwise required by law. The proceeds of the bond shall be paid to any person suffering injury or loss by reason of any violation of KRS 367.46951 to 367.46999 or shall be paid pursuant to the terms of any order of a court of competent jurisdiction obtained by the Attorney General, Commonwealth's attorney, or county attorney as a result of any violation of KRS 367.46951 to 367.46999. The bond shall be maintained until the telemarketing company files with the Attorney General proof that the premium was awarded.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 17, effective April 5, 2024. -- Amended 2002 Ky. Acts ch. 21, sec. 4, effective July 15, 2002. -- Created 1994 Ky. Acts ch. 302, sec. 10, effective July 15, 1994; and ch. 463, sec. 10, effective July 15, 1994.

367.46983 Authority for administrative regulations.

The Attorney General may promulgate administrative regulations necessary for the proper administration and enforcement of KRS 367.46951 to 367.46999.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 302, sec. 11, effective July 15, 1994; and ch. 463, sec. 11, effective July 15, 1994.

367.46987 Person using electronic equipment for solicitation deemed to have accepted Kentucky law.

Any merchant, caller, or other person who uses electronic equipment within this Commonwealth for purposes of telephone solicitation shall, as a condition of that use, be deemed to have accepted the provisions of KRS 367.46951 to 367.46999 and of KRS Chapter 526.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 302, sec. 12, effective July 15, 1994; and ch. 463, sec. 12, effective July 15, 1994.

367.46991 Burden of proving exemption or defense on claimant.

In a civil proceeding alleging a violation of KRS 367.46951 to 367.46999, the burden of proving an exemption shall be on the person claiming the exemption, and in a criminal proceeding alleging a violation of KRS 367.46951 to 367.46999, the burden of producing evidence to support a defense based on an exemption shall be on the person claiming the exemption.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 302, sec. 13, effective July 15, 1994; and ch. 463, sec. 13, effective July 15, 1994.

367.46993 Telemarketer prohibited from contacting credit card issuer to obtain account number -- Issuer prohibited from providing account number.

(1) A telemarketer shall not contact a credit card issuer, in writing or by telephone, facsimile, computer, or by any other means, for the purpose of obtaining a consumer's credit card account number.

(2) A credit card issuer shall not provide a consumer's credit card account number to a telemarketer.

Effective: July 15, 2002

History: Created 2002 Ky. Acts ch. 18, sec. 1, effective July 15, 2002.

367.46994 Transfer of numbers on zero call list to national Do Not Call Registry -- Consumer education materials -- Publication of materials by telephone companies.

(1) The Office of the Attorney General immediately shall request that the Federal Trade Commission include on the national Do Not Call Registry the residential numbers that were placed on the zero call list on or before June 26, 2007. If the Federal Trade Commission denies the request, then those households whose residential numbers will be purged from the zero call list shall be informed by the Office of the Attorney General on how to place their telephone number on the national Do Not Call Registry.

(2) Persons whose telephone numbers appear on the zero call list shall not receive telephone solicitations except in accordance with the provisions of KRS 367.46951 to 367.46999.

(3) Information contained in a database established for the purpose of administering the zero call list shall be used only for the purpose of implementing the zero call program in conformance with KRS 367.46951 to 367.46999.

(4) The Kentucky Public Service Commission shall produce consumer education materials that:

(a) Describe Kentucky's telemarketing laws;

(b) Describe the consumer's rights and responsibilities regarding the receipt of telephone solicitation;

(c) Explain how consumers can apply to be placed on any federal Do Not Call Registry established by the Federal Communications Commission and the Federal Trade Commission;

(d) Explain how to apply to be placed on company-specific and industrywide no solicitation calls list, including those lists provided by the Direct Marketing Association (DMA) and the Telephone Preference Service (TPS); and

(e) Describe how a consumer can file a complaint if the consumer receives calls after being placed on the Do Not Call Registry established by the Federal Communications Commission and the Federal Trade Commission.

(5) The Public Service Commission shall require that, once a year, telephone companies under the jurisdiction of the Public Service Commission shall include the customer education material or portions thereof, at the discretion of the companies, in either the billing inserts, billing messages, or in the Customer Guide pages of their telephone directories.

Effective: June 26, 2007

History: Amended 2007 Ky. Acts ch. 115, sec. 5, effective June 26, 2007. -- Created 2002 Ky. Acts ch. 21, sec. 5, effective July 15, 2002.

367.46995 Claims alleging calls made to persons on zero call list -- Defenses.

(1) Any claim or action alleging the making of a call to a person on the zero call list in violation of KRS 367.46955 shall be in writing and verified by the claimant.

(2) In any action or claim alleging the making of a call to a person on the zero call list, it shall be a defense that the defendant obtains the current zero call list in a timely manner and makes reasonable efforts to avoid calling persons whose telephone numbers appear on the list.

(3) It shall be a defense in any action or proceeding brought under KRS 367.46951 to 367.46999 that the defendant has established and implemented, with due care, reasonable practices and procedures to prevent telephone solicitations in violation of KRS 367.46951 to 367.46999.

Effective: July 15, 2002

History: Created 2002 Ky. Acts ch. 21, sec. 6, effective July 15, 2002.

367.46999 Penalties for violation -- Concurrent enforcement powers of Attorney General.

(1) Any person, including, but not limited to, a merchant, a telemarketer, a salesperson, agent or representative of the merchant, or an independent contractor, who knowingly violates any provision of KRS 367.46951 to 367.46999 or engages in any act, practice, or course of business which operates or would operate as fraud or deceit upon any person in connection with a sale shall be guilty of a Class D felony, except that any person who violates KRS 367.46955(7) to (16) shall be guilty of:

(a) A Class B misdemeanor for the first offense that shall be punishable by imprisonment of not more than ninety (90) days, or a fine of no more than five hundred dollars ($500), or both; and

(b) A Class A misdemeanor for any subsequent offense that shall be punishable by imprisonment of not more than one (1) year, or a fine of not more than five thousand dollars ($5,000), or both.

(2) Notwithstanding any other provision of law, in addition to the penalties provided in this section, any person found guilty of violating KRS 367.46955(9) shall pay restitution of any financial benefit secured through conduct proscribed by KRS 367.46955(9).

(3) The Office of the Attorney General shall have concurrent enforcement powers as to such felonies and misdemeanors.

(4) (a) Notwithstanding other criminal and administrative remedies, a person or class of persons alleging:

Receipt of a call in violation of KRS 367.46955(9); or
That a number assigned to the person was misleadingly transmitted as a caller identification number by a solicitor in violation of KRS 367.46955(9); may bring a civil action in the county where the plaintiff resides or has his or her principal place of business, against any person who is responsible for or who knowingly participated in the violation.

(b) The civil action brought under paragraph (a) of this subsection may be for:

Appropriate injunctive relief;
Actual damages;
Actual expenses incurred, including court costs and attorney's fees; and
Punitive damages.

Effective: June 27, 2019

History: Amended 2019 Ky. Acts ch. 105, sec. 2, effective June 27, 2019. -- Amended 2018 Ky. Acts ch. 145, sec. 2, effective July 14, 2018. -- Amended 1998 Ky. Acts ch. 581, sec. 4, effective July 15, 1998. -- Created 1994 Ky. Acts ch. 302, sec. 14, effective July 15, 1994; and ch. 463, sec. 14, effective July 15, 1994.

Recreation and Retirement Use Land Sales Recreation and Retirement Use Land Sales

367.470 Legislative findings.

(1) The provisions of KRS 367.472 to 367.486 shall apply to recreation and retirement use land sales.

(2) The General Assembly finds and declares that the sale and offering for sale of recreation and retirement use land, the sale of which is often premised upon future completion of improvements by the subdivider, affects a great number of the citizens of this state and that regulation of such promised improvements in recreation and retirement use land is essential.

Effective: July 15, 1988

History: Amended 1988 Ky. Acts ch. 194, sec. 7, effective July 15, 1988. -- Created 1978 Ky. Acts ch. 316, sec. 1, effective June 17, 1978.

Legislative Research Commission Note (1988). A technical correction has been made in this section by the Reviser of Statutes pursuant to KRS 7.136.

367.472 Definitions.

Unless the context otherwise requires, the following terms shall mean:

(1) "Recreational and retirement use" land means that land which is sold and promoted with primary emphasis on the land's value for recreational purposes or for retirement purposes. In order to carry out the purposes of KRS 367.470 to 367.486, the Attorney General may by administrative regulations further define the term "recreational and retirement use" of land;

(2) "Offer" includes every inducement, solicitation, or attempt to encourage a person to acquire an interest in land;

(3) "Person" means an individual, corporation, government, or governmental subdivision or agency, business trust, estate, partnership, unincorporated association, two (2) or more of any of the foregoing having a joint or common interest or any other legal or commercial entity;

(4) "Purchaser" means a person who acquires or attempts to acquire or succeeds to an interest in land;

(5) "Subdivider" means any owner of subdivided land who offers it for disposition or the principal agent of the owner.

(6) "Subdivision and subdivided lands" means any land which is divided or is proposed to be divided for the purpose of disposition into ten (10) or more lots, parcels, units, or interests and also includes any land, whether contiguous or not, if ten (10) or more lots, parcels, units, or interests are offered as a part of a common promotional plan of advertising and sale.

(7) "Land" and "interest in land" mean any right to own, use, or enjoy land, including, but not limited to, fee estates, life estates, leasehold estates, easements, undivided interests, licenses, and any other legal or equitable interest in real property but not including interests in the nature of personal property which are nontransferable by the purchaser.

(8) "Development" means the recreational and retirement use land itself together with any existing or future common areas, undeveloped land, improvements, or amenities which are or have been advertised or used to induce the purchase of recreational and retirement use land irrespective of whether particular improvements or amenities existed at the time of sales to particular individuals.

(9) "Consumer credit contract" means any instrument which evidences or embodies a debt incurred by a natural person for the purchase, lease, or use of recreational and retirement use land which is intended for personal, family, or household use.

Effective: July 14, 1992

History: Amended 1992 Ky. Acts ch. 209, sec. 1, effective July 14, 1992. -- Created 1978 Ky. Acts ch. 316, sec. 2, effective June 17, 1978.

367.474 Performance bond by subdivider -- Cash in lieu of bond.

(1) In the sale or offering for sale of any subdivision which is primarily directed toward recreational or retirement use, in the sale of which any improvements are advertised but not completed, or which are completed but for which supplies of labor and material have not been paid, the subdivider shall furnish a performance bond payable to the Attorney General in an amount equal to the costs of all the improvements, including, but not limited to, roads, lakes, golf courses, and stables which are advertised prior to the sale of the land or property. The bond shall remain in effect until the advertised improvements are made; and if they are not completed within a time deemed reasonable by the Attorney General, the bond shall, after a hearing, be forfeited to the Attorney General for the use and benefit of the purchasers of the property. Surety for the bond shall be by a company authorized to write surety bonds in this state. Upon completion of the promised improvements and production of releases by all creditors with a potential lien interest in the improvements and production of a verified statement to this effect, the subdivider may petition the Attorney General for release of the bond.

(2) If the land or property offered for sale by the subdivider is located outside of the Commonwealth of Kentucky and is sold both to Kentucky residents and residents of other jurisdictions, the Attorney General may accept a bond as described in subsection (1) of this section equal to the pro rata share of improvements for that property that is reasonably anticipated to be sold to Kentucky residents.

(3) In lieu of the bonding requirements appearing in subsection (1) of this section, a subdivider may, with the approval of the Attorney General, place in an approved escrow account fifty percent (50%) of receipts of sales of the subdivided lots until the amount necessary to make the improvements has been accumulated or the improvements advertised by the subdivider made and the suppliers of labor and material paid. If the improvements are not made within a reasonable time as determined by the Attorney General, the escrow account, after hearing, shall revert to the benefit of the subdivision purchasers.

Effective: July 14, 1992

History: Amended 1992 Ky. Acts ch. 209, sec. 5, effective July 14, 1992. -- Amended 1988 Ky. Acts ch. 194, sec. 1, effective July 15, 1988. -- Created 1978 Ky. Acts ch. 316, sec. 3, effective June 17, 1978.

367.476 Offer for sale without bond prohibited.

It shall be unlawful for any subdivider to offer for sale recreational or retirement use land in which the improvements as described in KRS 367.474(1) have not been made unless the provisions of all of KRS 367.474 have been met.

Effective: June 17, 1978

History: Created 1978 Ky. Acts ch. 316, sec. 4, effective June 17, 1978.

367.477 Statement of buyer's rights.

(1) In the sale of any interest subject to KRS 367.472, 367.474, 367.4774, 367.4776, 367.4778, 367.484, 367.993, and this section, the subdivider shall present to the buyer and obtain his signature to a written agreement or offer to purchase which designates as the date of the transaction the date on which the buyer actually signs and contains a statement of the buyer's rights which complies with subsection (2) of this section.

(2) The statement shall:

(a) Appear under the conspicuous caption: "BUYER'S RIGHT TO CANCEL," in bold-face type of a minimum size of fourteen (14) points; and

(b) Read as follows: "If you decide you do not want this interest you may cancel this agreement by mailing a notice to the seller. The notice must say that you do not want the interest and must be mailed before midnight of the fifth business day after you sign this agreement. The notice must be mailed to: ........................................................................................................ ........................................................................................................"

(3) A copy of the written agreement or offer to purchase containing the notice of right to cancel shall be given to the buyer on the date the buyer signs.

(4) Until the seller has complied with this section, the buyer may cancel the sale by notifying the seller in any manner and by any means of his intention to cancel.

Effective: July 14, 1992

History: Amended 1992 Ky. Acts ch. 209, sec. 6, effective July 14, 1992. -- Created 1988 Ky. Acts ch. 194, sec. 4, effective July 15, 1988.

367.4771 Cancellation of purchase of an interest from subdivider.

(1) In addition to any right otherwise to revoke an offer, the buyer has the right to cancel a purchase of an interest from a subdivider until midnight of the fifth business day after the day on which the buyer signs an agreement or offer to purchase which is subject to KRS 367.470 to 367.486.

(2) Cancellation occurs when the buyer gives written notice of cancellation to the subdivider at the address stated in the agreement or offer to purchase.

(3) Notice of cancellation, if given by mail, is given when it is deposited in a mailbox, properly addressed and postage prepaid.

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 194, sec. 3, effective July 15, 1988.

367.4772 Waiver or surrender of cancellation rights prohibited.

Rights of cancellation may not be waived or otherwise surrendered.

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 194, sec. 6, effective July 15, 1988.

367.4774 Maintenance fees on Kentucky recreational and retirement use land.

(1) For any recreational and retirement use land physically located in this state, maintenance fees paid shall be held in trust by the seller of recreational and retirement use land for the benefit of the owners of individual interests. The fees shall be deposited into a separate account in a financial institution authorized to conduct business in this state. For purposes of this section, "financial institution" means a federally chartered bank, a state chartered bank, or a federally chartered savings and loan association. If any agent is designated by the seller of recreational and retirement use land to collect maintenance fees, both the seller and the agent shall be trustees of the funds collected.

(2) The maintenance fees shall be used only for the maintenance, care, and security of the development. The Attorney General shall be entitled to demand and inspect the records necessary to verify compliance with this statute.

(3) Nothing in this section shall be construed to limit the right of the seller of recreational and retirement use land from assigning for collection purposes only any maintenance fees which are more than sixty (60) days delinquent if:

(a) The assignee for collection purposes receives no more than thirty-five percent (35%) of the delinquent fees collected; and

(b) The assignee for collection purposes is not owned or controlled by the seller of recreational and retirement use land.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 209, sec. 2, effective July 14, 1992.

367.4776 Easement interest.

(1) Any natural person who purchases recreational and retirement use land for personal, family, or household purposes shall have an easement for the use of any common areas, undeveloped land, improvements, or amenities which are part of the development in which the person has purchased an interest or which are later added to the development. An individual person's right to exercise this easement may be suspended for wrongful nonpayment of maintenance fees.

(2) The easement interest shall be superior to that of any other lien, encumbrance, license, or other interest in the real property.

(3) Any person who obtained or granted an encumbrance, lien, lease, license, or other interest in any of the real property upon which the development is located with actual or constructive knowledge of its intended use as recreational and retirement use land shall be estopped from denying the validity of the easement.

(4) Any waiver of this right to an easement shall be void.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 209, sec. 3, effective July 14, 1992.

367.4778 Status of holder or assignee of consumer credit contract -- Limitation on liability.

Any holder or assignee of a consumer credit contract shall be subject to the claims and defenses that the consumer has against the seller or lessor of recreational and retirement use land notwithstanding whether the sale or lease is for a specific portion of real property; an undivided interest in real property; or an easement, license, lease, or other right to use real property. The liability of the assignee or holder under this statute shall not exceed the amount due on the contract.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 209, sec. 4, effective July 14, 1992.

367.478 Registration of seller -- Fee.

(1) Persons offering for sale recreational and retirement use land as defined in KRS 367.472(1) shall register with the Attorney General. The Attorney General, after ascertaining that the applicant has complied with KRS 367.474, shall issue a registration number to the person, which must appear in any advertising engaged in by the registrant to promote recreational and retirement use land sales in Kentucky.

(2) The Attorney General may charge each registrant a fee not to exceed ten dollars ($10), plus such additional fees as the Attorney General finds necessary to cover any extraordinary investigational costs necessary to investigate the registrant pursuant to KRS 367.470 to 367.486.

Effective: June 17, 1978

History: Created 1978 Ky. Acts ch. 316, sec. 5, effective June 17, 1978. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 18, (4) at 2057.

367.479 Return of payments and notes of indebtedness.

Within ten (10) days after a sale of interest has been canceled or an offer to purchase revoked, the subdivider shall tender to the buyer any payments made by the buyer and any note or other evidence of indebtedness.

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 194, sec. 5, effective July 15, 1988.

367.480 Administrative regulations.

The Attorney General shall promulgate administrative regulations which will ensure an adequate disclosure to the purchaser of recreational and retirement use land the probable costs of any necessary maintenance of improvements of such land which may accrue in the future, or lease, mortgage, and similar financial payments, including but not limited to the costs of taxes, assessments, belonging to an association, costs of inflation, and repairs or improvements. Such disclosure shall be made both orally and in writing prior to the sale of such land.

Effective: July 15, 1988

History: Amended 1988 Ky. Acts ch. 194, sec. 2, effective July 15, 1988. -- Created 1978 Ky. Acts ch. 316, sec. 6, effective June 17, 1978.

367.482 Road system and grading of lots necessary prior to sale of lots.

No lots or property shall be sold which are primarily to be used for recreation and retirement use, unless the road system and grading to all such lots are completed in such a manner as to allow a full and complete ingress and egress.

Effective: June 17, 1978

History: Created 1978 Ky. Acts ch. 316, sec. 7, effective June 17, 1978.

367.484 Attorney General's ability to obtain restraining order -- Availability of remedies of Consumer Protection Act -- Authority to promulgate administrative regulations.

(1) When the Attorney General has reason to believe that any person is offering recreational and retirement use land for sale in violation of KRS 367.470 to 367.486 or any administrative regulations issued by the Attorney General pursuant to KRS 367.480, and that proceedings would be in the public interest, he may move in the name of the Commonwealth in a Circuit Court for a restraining order or temporary or permanent injunction to prohibit the offer. The action may be brought in the Circuit Court in the county in which the person resides or has his principal place of business or in the Circuit Court of the county in which the unlawful offer or sale has been or is about to be committed, or in the county in which the land is situated.

(2) A violation of KRS 367.472, 367.474, 367.477, 367.4774, 367.4776, and 367.4778 shall be deemed to be an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170.

(3) All the remedies, powers, and duties provided for the Attorney General by KRS 367.190 to 367.300 and 367.990, pertaining to acts declared unlawful by KRS 367.170, shall apply with equal force and effect to acts declared unlawful by KRS 367.470 to 367.486.

(4) Nothing in KRS 367.470 to 367.486 shall be construed to limit or restrict the exercise of powers or the performance of the duties of the Attorney General which he is authorized to exercise or perform under any other provision of law.

(5) The Attorney General shall have the authority to adopt other administrative regulations he deems necessary for the proper administration of this chapter.

Effective: July 14, 1992

History: Amended 1992 Ky. Acts ch. 209, sec. 7, effective July 14, 1992. -- Created 1978 Ky. Acts ch. 316, sec. 8, effective June 17, 1978.

367.486 Exemptions for certain subdividers.

Subdividers subject to and complying with 15 U.S.C. secs. 1701-1720, "Interstate Land Sale Full Disclosure Act" as currently administered by the Office of Interstate Land Sales Registration of the United States Department of Housing and Urban Development shall during the continuance of such compliance be exempt from the provisions of KRS 367.474 to 367.482, but shall file duplicate copies of all registration statements with the Attorney General.

Effective: June 17, 1978

History: Created 1978 Ky. Acts ch. 316, sec. 9, effective June 17, 1978.

Underground Facility Damage Prevention Underground Facility Damage Prevention

367.4901 Legislative declaration -- Short title for KRS 367.4901 to 367.4917.

The General Assembly finds that the objective of underground facility damage prevention and the resulting benefits of public and workplace safety and protection of consumer services require an effective underground damage prevention procedure. KRS 367.4901 to 367.4917, which may be cited as the "Underground Facility Damage Prevention Act of 1994," are created to provide for this procedure and accomplish this objective.

Effective: January 1, 1995

History: Created 1994 Ky. Acts ch. 425, sec. 1, effective January 1, 1995.

367.4903 Definitions for KRS 367.4903 to 367.4917.

As used in KRS 367.4903 to 367.4917:

(1) "Underground facility" means an underground line or system used for producing, storing, conveying, transmitting, or distributing telecommunications, electricity, gas, petroleum, petroleum products, cable television, hazardous liquids, water, steam, or sewerage, including storm drainage;

(2) "Damage" means weakening of structural or lateral support or penetration of a facility coating, housing, or other protective device. It also means the partial or complete dislocation or severance of underground facilities or rendering any underground facility permanently inaccessible by the placement of a permanent structure having one (1) or more stories;

(3) "Demolition" means any operation by which a structure or mass of material is wrecked, razed, moved, or removed by means of mechanized equipment, or discharge of explosives;

(4) "Excavator" means any entity or individual, other than those exempted by KRS 367.4915, engaged in excavation, demolition, or timber harvesting using mechanized equipment;

(5) "Operator" means any entity or individual owning or operating underground facilities to serve the public, but does not include any entity or individual owning or operating underground storage tanks that are subject to Subchapter 60 of KRS Chapter 224;

(6) "Excavation" means any activity that results in the movement, placement, probing, boring, or removal of earth, rock, or other material in or on the ground by the use of any tools or equipment, by the discharge of explosives, or by the harvesting of timber using mechanized equipment. Forms of excavating include but are not limited to auguring, backfilling, digging, ditching, drilling, driving, grading, piling, pulling-in, ripping, scraping, trenching, and tunneling. Driving wooden stakes by use of hand tools to a depth of six (6) inches or less below existing grade shall not constitute excavation;

(7) "Emergency" means there exists substantial likelihood that loss of life or property, the inability to restore interrupted utility service, an imminent danger to health or the environment, or the blockage of public transportation facilities will result before procedures required under KRS 367.4909 to 367.4913 can be completed;

(8) "Protection notification center" means an operator-provided notification center through which an excavator can contact the operator to enable the operator to provide the excavator with the approximate location of underground facilities;

(9) "Kentucky Contact Center" means Kentucky Underground Protection, Inc., organized as a nonprofit corporation and a multimember protection notification center providing a single telephone contact number and designated by the Kentucky Public Service Commission to be the sole recipient of 811 dialed calls through which an excavator may contact all Kentucky Contact Center members and all affected member operators may receive information to enable them to provide the excavator with the approximate location of underground facilities;

(10) "Routine road maintenance" means preservation, including road repairs and resurfacing, and the replacement of signs, posts, and guardrails at the exact same location when no additional penetration of existing grade is necessary, but does not include road construction, installation of signs, posts, and guardrails, or any activity that requires penetration of existing grade;

(11) "Approximate location," when referring to an underground facility, means:

(a) For underground metallic facilities and underground nonmetallic facilities with metallic tracer wire, a distance not to exceed the combined width of the underground facility plus twenty-four (24) inches measured from the outer edge of each side of the underground facility; or

(b) For unmapped or untonable facilities, the underground facility shall be located as accurately as possible from field location records and shall require notification from the operator of the inability to accurately locate the facility;

(12) "Working day" means every day, except Saturday, Sunday, and holidays established by federal or state statute. For purposes of measuring any period of time prescribed or allowed under the Underground Facility Damage Prevention Act of 1994, a working day shall commence at 12:01 a.m. eastern time and end at 12 midnight eastern time excluding the day the locate request was made;

(13) "Nonintrusive excavating" means excavation using hand tools or equipment that uses air or water pressure as the direct means to break up soil for removal by hand tools or vacuum excavation;

(14) "Mechanized equipment" means mechanical power equipment, including trenchers, bulldozers, power shovels, augers, backhoes, scrapers, drills, cable and pipe plows, skidders, and yarders;

(15) "Normal excavation locate request" means a notification made to a protection notification center where a request for locating utility facilities is processed;

(16) "Emergency locate request" means a notification made to a protection notification center by an excavator to alert facility owners or operators of the need to begin immediate excavation in response to an emergency;

(17) "Design information request" means a notification made to a protection notification center by a person providing professional services and making a request in preparation for bidding, preconstruction engineering, or other advance planning efforts. A design information request may not be used for excavation purposes;

(18) "Large project request" means an area of excavation occurring on or after July 1, 2016, measuring more than two thousand (2,000) feet in length. Multiple excavation notifications in an area may be considered together in determining if the excavations are part of a large project;

(19) "Commission" means the Kentucky Public Service Commission;

(20) "Person" means an individual, an entity, a foreign entity, or other legal or commercial entity;

(21) "Positive response" means an automated or written communication system provided by each protection notification center for all locate requests the center receives pursuant to KRS 367.4909 that allows excavators, locators, operators, and other interested parties to determine the status of locating an underground facility and requires response and verification by operators and excavators to comply with their respective requirements of the Underground Facility Damage Prevention Act of 1994;

(22) "Unique identification number" or "locate request number" means a unique number that any protection notification center or operator pursuant to KRS 367.4913 has assigned to a locate request for excavation;

(23) "Locator" means any entity or individual that locates lines or facilities for an operator;

(24) "Second notice" means a notice that is made by an excavator to a notification center when an operator has failed to comply with the positive response requirements under KRS 367.4909(5);

(25) "Tolerance zone" means a strip of land at least four (4) feet wide but not wider than the width of the underground facility plus two (2) feet on either side of the outer limits of the facility;

(26) "Untonable facility" means an underground facility that cannot be located from the surface using locating methods which meet industry standards and that requires additional efforts and extended time;

(27) "Work site contact" means an individual that will be present at the excavation site when the excavation will occur;

(28) "Fiber-to-the-premises" means a service that provides network connectivity between a location and a subscriber using fiber;

(29) "Communications network" means the platform that is used to exchange information and data between two (2) or more devices that are connected to the platform;

(30) "Communications service provider" means an entity that offers communications services or some combination of information and media services, content, entertainment, and application services over communications networks; and

(31) "Communications terminal" means the enclosure containing communications equipment that connects users to the communications network.

Effective: July 15, 2024

History: Amended 2024 Ky. Acts ch. 21, sec. 1, effective July 15, 2024. -- Amended 2021 Ky. Acts ch. 80, sec. 1, effective January 1, 2022. -- Amended 2018 Ky. Acts ch. 70, sec. 2, effective July 14, 2018. -- Amended 2015 Ky. Acts ch. 31, sec. 1, effective June 24, 2015. -- Amended 2014 Ky. Acts ch. 100, sec. 1, effective July 15, 2014. -- Amended 2012 Ky. Acts ch. 137, sec. 1, effective July 12, 2012. -- Amended 2008 Ky. Acts ch. 180, sec. 1, effective July 15, 2008. -- Amended 2000 Ky. Acts ch. 222, sec. 1, effective July 14, 2000. -- Created 1994 Ky. Acts ch. 425, sec. 2, effective January 1, 1995.

367.4905 Permit not relieving person from complying with provisions of KRS 367.4905 to 367.4917.

A permit issued pursuant to law authorizing excavation or demolition work shall not relieve a person from the responsibility for complying with KRS 367.4905 to 367.4917.

Effective: January 1, 1995

History: Created 1994 Ky. Acts ch. 425, sec. 3, effective January 1, 1995.

367.4907 Responsibility of persons engaging in nonemergency and emergency work.

Every person who engages in nonemergency timber harvesting using mechanized equipment, excavation, or demolition work shall conform to KRS 367.4905 to 367.4917. Compliance with excavator and operator notification requirements of KRS 367.4905 to 367.4917 shall not be required of authorized persons responding to emergency situations. However, these persons shall take every reasonable precaution to protect the public safety and underground facilities of others.

Effective: July 12, 2012

History: Amended 2012 Ky. Acts ch. 137, sec. 2, effective July 12, 2012. -- Created 1994 Ky. Acts ch. 425, sec. 4, effective January 1, 1995.

367.4909 Operator to provide protection notification center access to excavators -- Kentucky Contact Center -- Report of excavation damage – Duties of operators upon receiving requests -- Rejection of design information request -- Color coding for temporary underground facility markers -- Operator's inability to comply due to extraordinary circumstances -- Underground facilities installed after January 1, 2013.

(1) Each operator shall provide protection notification center access to excavators.

(2) Voluntary operator membership in the Kentucky Contact Center shall satisfy the requirement of subsection (1) of this section.

(3) Each operator member of the Kentucky Contact Center shall provide and update as needed to the Kentucky Contact Center the general location of its underground facilities, the operator identity and business address, and emergency notification telephone numbers.

(4) (a) Each operator shall report to the commission excavation damage to an underground facility used in the transportation of gas or hazardous liquid within thirty (30) calendar days of being informed of the damage. Each report of excavation damage shall be made by electronic mail or as otherwise prescribed by the commission.

(b) If the damage described in paragraph (a) of this subsection is caused by a communications service provider and no attempt to locate underground facilities was made, the operator shall include in its damage report to the commission the distance from the communications terminal that the damage occurred. The commission shall submit a report to the Legislative Research Commission on or before December 1, 2025, detailing the number of damage reports made under this subsection caused by communications service providers that occurred within the area in which nonintrusive excavation is allowed under KRS 367.4915(12).

(5) An operator shall respond to facility locate requests and provide a positive response as follows:

(a) To a normal excavation locate request, within two (2) working days after receiving notification from an excavator or any time prior to the scheduled excavation start date if agreed upon as provided in KRS 367.4917(7), excluding large project requests, design information requests, emergency locate requests, and unmapped or untonable facilities;

(b) To an emergency locate request, as quickly as possible but not to exceed forty-eight (48) hours after receiving notification from an excavator;

(c) To a design information request, within ten (10) working days after receiving notification from the person making the request;

(d) To a large project request, within two (2) working days the operator shall notify the excavator that an excavation area has been determined to be a large project, and the operator shall respond to the request within five (5) working days from the later of receiving notification from an excavator or prior to the scheduled excavation start date for that location if agreed upon as provided in KRS 367.4917(7);

(e) To an unmapped or untonable facility request, within two (2) working days the operator shall notify the excavator that an excavation area has been determined to be an unmapped or untonable project, and the operator shall respond to the request within five (5) working days for a normal locate request or eight (8) working days for a large project request from the later of receiving notification from an excavator or prior to the scheduled excavation start date if agreed upon as provided in KRS 367.4917(7); and

(f) To a fiber-to-the-premises broadband deployment excavation request, in locations not already served by fiber-to-the-premises, within four (4) working days.

(6) Within one (1) working day after receiving a second notice request from an excavator pursuant to KRS 367.4911(12), an operator shall locate its facility and update the positive response system.

(7) An operator shall, after receiving an emergency locate request, a normal excavation locate request, an unmapped or untonable locate request, or a large project request as provided in subsection (5) of this section:

(a) Inform the excavator of the approximate location and description of any of the operator's underground facilities that may be damaged or pose a safety concern because of excavation or demolition;

(b) Unless permanent facility markers are provided, provide temporary markings to inform the excavator of the ownership and approximate location of the underground facility; and

(8) Upon receiving a design information request, an operator shall contact the person making the request within the time period specified in subsection (5) of this section. The operator shall:

(a) Designate with temporary underground facility markers the location of all underground facilities owned by the operator within the area of the design information request as defined in KRS 367.4903;

(b) Provide to the person making the design information request a description of all underground facilities owned by the operator in the area of the design information request and the location of the facilities, which may include drawings marked with a scale, dimensions, and reference points for underground utilities already built in the area or other facility records that are maintained by the operator; or

(c) Allow the person making the design information request or an authorized person to inspect the drawings or other records for all underground facilities with the proposed area of excavation at a location that is acceptable to the operator.

(9) An operator may reject a design information request and not be held in violation of subsection (6) of this section based upon security considerations or if producing the information will place the operator at a competitive disadvantage, pending the operator obtaining additional information confirming the legitimacy of the notice. The operator shall notify the person making the design information request and may request additional information.

(10) Temporary underground facility markers shall consist of paint, chalk, flags, stakes, or any combination thereof and shall conform to the following standards of the American Public Works Association uniform color code:

(a) Electric power distribution and transmission Safety Red

(b) Municipal electric systems Safety Red

(d) Oil distribution and transmission High visibility safety yellow

(e) Dangerous materials, product lines High visibility safety yellow

(f) Telecommunication systems and cable television Safety alert orange

(g) Temporary survey markings Safety pink

(h) Police and fire communications Safety alert orange

(i) Water systems Safety precaution blue

(j) Sewer and storm drainage systems Safety green

(k) Proposed excavation or construction boundaries White

(l) Reclaimed water, slurry, and irrigation facilities Purple

(m) Fiber optic and critical telecommunication Safety alert orange

(11) If extraordinary circumstances exist, an operator shall notify the excavator of the operator's inability to comply with this section. Notification under this subsection shall temporarily relieve the operator of complying with subsections (5) and (6) of this section until the operator can recover from the extraordinary circumstances. Extraordinary circumstances include weather that makes it impossible for any combination of facility markers identified in subsection (10) of this section to be used, extreme weather conditions, force majeure, disasters, or civil unrest that make timely response difficult or impossible.

(12) All underground facilities installed after January 1, 2013, shall include a means to accurately identify and locate the underground facilities from the surface. This subsection does not apply to the repair of existing facilities.

Effective: July 15, 2024

History: Amended 2024 Ky. Acts ch. 21, sec. 2, effective July 15, 2024. -- Amended 2021 Ky. Acts ch. 80, sec. 2, effective January 1, 2022. -- Amended 2018 Ky. Acts ch. 70, sec. 3, effective July 14, 2018. -- Amended 2015 Ky. Acts ch. 31, sec. 2, effective June 24, 2015. -- Amended 2014 Ky. Acts ch. 100, sec. 2, effective July 15, 2014. -- Amended 2012 Ky. Acts ch. 137, sec. 3, effective July 12, 2012. -- Amended 2008 Ky. Acts ch. 180, sec. 2, effective July 15, 2008. -- Amended 2000 Ky. Acts ch. 222, sec. 2, effective July 14, 2000. -- Created 1994 Ky. Acts ch. 425, sec. 5, effective January 1, 1995.

367.4911 Excavator or person responsible for excavation to notify operator's notification center of work schedule -- Duties of entities responsible for excavation and demolition.

(1) (a) Each excavator, or person responsible for an excavation, planning excavation, or demolition work shall, not less than two (2) full working days nor more than ten (10) full working days prior to commencing work, unless a future start date is agreed upon as provided in KRS 367.4917(7), notify each affected operator's designated protection notification center of the excavator's intended work and work schedule.

(b) The two (2) full working days provided for in paragraph (a) of this subsection have elapsed if all affected operators have notified the person.

(2) Locate requests are valid for twenty-one (21) calendar days from the day of the initial request.

(3) Each excavator shall provide each applicable protection notification center with adequate information regarding:

(a) Name and phone number of the excavator or person requesting the underground facility locate;

(b) Approximate location and type of work being performed by the excavator, including if the request involves a fiber-to-the-premises broadband deployment excavation;

(d) Estimated start date and start time of excavation; and

(e) The excavation or demolition site location or locations, each of which shall not exceed five thousand (5,000) feet in length unless the excavator and operator agree to a larger area, the city or community, county and street address, including the nearest cross street.

(4) If more than one (1) excavator will operate at the same site, each excavator shall notify the protection notification centers individually. Notification by an excavator will serve as notification for any of that excavator's employees. Failure by an excavator to notify the protection notification center does not relieve individual employees of responsibility.

(5) The excavator shall inform and provide to excavation or demolition site employees:

(a) The underground facility location provided by each operator;

(b) Any related safety information provided by each operator; and

(6) The excavator shall protect and preserve temporary underground facility markers until the scheduled excavation or demolition is completed.

(7) If, after the response time provided by KRS 367.4909(5), the excavator finds evidence of an unmarked underground facility at the site, he or she shall immediately notify a protection notification center. When an excavator has complied with subsection (1) of this section and evidence of an unmarked underground facility is uncovered, the operator shall have six (6) business hours to identify the underground facility.

(8) The excavator shall contact the protection notification center to request remarking two (2) working days in advance of the expiration of each twenty-one (21) day period while excavation or demolition continues or if:

(a) The markings of any underground facility have been removed or are no longer visible; or

(b) The excavator has changed the work plan or location previously filed.

(9) (a) Each excavator who conducts or is responsible for any excavation or demolition that results in underground facility damage shall cease excavation or demolition activities and notify all affected operators of the location and nature of the underground facility damage immediately upon discovery of the damage.

(b) Any individual or entity that is otherwise exempt from the requirements of KRS 367.4901 to 367.4917 under KRS 367.4915, who conducts or is responsible for any excavation or demolition that results in underground facility damage to an underground facility or system used for producing, storing, conveying, transmitting, or distributing gas, petroleum, petroleum products, or hazardous liquids, shall cease excavation or demolition activities and notify all affected operators of the location and nature of the underground facility damage immediately upon discovery of the damage.

(c) If the underground facility damage causes concern for public or workplace safety, the excavator, or the individual or entity that is otherwise exempt from the requirements of KRS 367.4901 to 367.4917 under KRS 367.4915, shall notify appropriate public safety agencies of the location and nature of the safety concern.

(d) If the underground facility damage results in the escape or suspected escape of any flammable, toxic, or corrosive gas or liquid, the excavator, or the individual or entity that is otherwise exempt from the requirements of KRS 367.4901 to 367.4917 under KRS 367.4915, shall cease excavation or demolition activities and immediately report to the appropriate authorities by calling 911 emergency telephone number.

(10) When excavation or demolition is necessary within the tolerance zone, the excavator shall hand-dig or use nonintrusive means to avoid damage to the underground facility, except that mechanized equipment may be used:

(a) To remove the pavement or other manmade hard surface if used during the initial penetration only to the depth necessary and if an individual other than the equipment operator visually monitors the excavation activity;

(b) To remove indigenous rock if used during the initial penetration only to the extent necessary, if an individual other than the equipment operator visually monitors the excavation activity, and if the excavation is planned to avoid damage to the underground facility. However, if the underground facility contains flammable, toxic, corrosive, or hazardous products, the excavator shall notify the facility owner of the excavator's intent prior to removing indigenous rock;

(c) To remove materials that are more than twelve (12) inches in any direction from the outer edge of the located facility if the excavator visually identifies the precise location of the underground facility or visually confirms that no facility is present within the depth of the excavation, if an individual other than the equipment operator visually monitors the excavation activity, and if the excavation is planned to avoid damage to the underground facility; and

(d) To place shores into an existing excavation or remove shores from an existing excavation.

(11) Upon request by an operator or when the proposed excavation location cannot be accurately identified, an excavator shall mark the boundaries of the location to be excavated using the procedure set forth in KRS 367.4909(10)(k). After marking the boundaries, the excavator shall contact the protection notification center or centers. The requirements of KRS 367.4909(5) to (11) are reestablished upon the operator receiving notification of this marking from the protection notification center or centers. This marking shall not alter, or relieve the excavator from complying with, the requirements of KRS 367.4905 to 367.4917.

(12) If an operator has failed to give a positive response within the timeframes provided in KRS 367.4909(5), the excavator shall submit a second notice to the protection notification center. If one (1) working day after receiving a second notice request as provided in KRS 367.4909(6), the operator has still failed to give a positive response, an excavator that has fully complied with this section shall not be deemed liable for any damages to an underground facility that would have been located if the operator had complied with the operator's duties under KRS 367.4909, except for damages to a person or an underground facility due to negligence or intentional misconduct of an excavator. This subsection shall not apply to any underground facility used to transport gas or hazardous liquid subject to the federal pipeline safety laws, 49 U.S.C. secs. 60101 et seq.

Effective: January 1, 2022

History: Amended 2021 Ky. Acts ch. 80, sec. 3, effective January 1, 2022; and ch. 105, sec. 1, effective June 29, 2021. -- Amended 2018 Ky. Acts ch. 70, sec. 4, effective July 14, 2018. -- Amended 2015 Ky. Acts ch. 31, sec. 3, effective June 24, 2015. -- Amended 2014 Ky. Acts ch. 100, sec. 3, effective July 15, 2014. -- Amended 2012 Ky. Acts ch. 137, sec. 4, effective July 12, 2012. -- Amended 2008 Ky. Acts ch. 180, sec. 3, effective July 15, 2008. -- Amended 2000 Ky. Acts ch. 222, sec. 3, effective July 14, 2000. -- Created 1994 Ky. Acts ch. 425, sec. 6, effective January 1, 1995.

Legislative Research Commission Note (1/1/2022). This statute was amended by 2021 Ky. Acts chs. 80 and 105, which do not appear to be in conflict and have been codified together.

367.4913 Duties of protection notification center -- Board of directors of Kentucky Contact Center -- Kentucky Contact Center to serve all counties.

(1) All protection notification centers shall:

(a) Provide locate request services during working days and provide an emergency contact number for incidents occurring outside the working day;

(b) Provide a positive response system for excavators, locators, operators, and other interested parties to determine the status of locating an underground facility;

(c) Provide any excavation request with an identification number and the names of the facility owners or operators who will be notified for each locate request;

(d) Promptly after receiving an excavation or demolition work notification from an excavator, provide to each of its affected operator members the excavator information required by KRS 367.4911(3);

(e) Maintain a list of all its operator members, their business addresses and their business and emergency telephone numbers and provide this information in accordance with KRS 64.012 with the county clerk of each county where the operator member has underground facilities. The county clerk shall provide this information upon request for the actual cost of providing a copy, to be paid by the requesting party to the county clerk. The county clerk shall assume no liability associated with the receipt of this information from the protection notification center or for subsequent provision of this same information to the requesting party;

(f) Make the operator members information list available to any person for inspection at its place of business without charge or provide a copy of the list to any person for any county upon request for a fee not to exceed the actual cost of providing a copy;

(g) Define and adopt policies and procedures for processing design information requests;

(h) Provide the person making a design information request a list of identified operators that will receive notification and notify those operators;

(i) Maintain the following information provided by excavators for all requests to locate facilities for at least five (5) years from the date of the request:

Name and phone number of the excavator or person requesting the underground facility locate;
Location and type of work being performed by the excavator;
Name and phone number of work site contact;
Name, address, and phone number of underground facility operators; and
Estimated start date and start time of excavation;

(j) Provide contact information for the protection notification center on its Web site or pursuant to paragraph (e) of this subsection; and

(k) Provide public awareness education and damage prevention programs in the manner and amount determined by each protection notification center.

(2) The Kentucky Contact Center shall be governed by a board of directors who are elected by the membership. Board seats shall be composed of no more than twenty- one (21) voting members and six (6) nonvoting members and may be filled by representatives of the following:

(a) A natural gas provider;

(b) An electric provider;

(d) A water/sewer provider;

(e) An interstate pipeline operator;

(f) A municipal utility operator;

(g) A commercial excavator;

(h) An oil and gas operator; and

(i) At least one (1) but not more than six (6) advisory, nonvoting members representing the following:

Public Service Commission;
Kentucky Transportation Cabinet;
Home Builders Association of Kentucky;
National Electrical Contractors Association;
Associated General Contractors of Kentucky; or
Kentucky Association of Master Contractors.

(3) Nonvoting members shall be elected by a majority of the voting members and shall serve for one (1) year terms which expire on December 31. Nonvoting members are eligible for reappointment by a majority of the voting members.

(4) The Kentucky Contact Center's board of directors shall establish the method to calculate the cost of service provided by the center.

(5) The Kentucky Contact Center shall serve all Kentucky counties.

Effective: January 1, 2022

History: Amended 2021 Ky. Acts ch. 80, sec. 4, effective January 1, 2022. -- Amended 2015 Ky. Acts ch. 31, sec. 4, effective June 24, 2015. -- Amended 2014 Ky. Acts ch. 100, sec. 4, effective July 15, 2014. -- Amended 2012 Ky. Acts ch. 137, sec. 5, effective July 12, 2012. -- Amended 2000 Ky. Acts ch. 222, sec. 4, effective July 14, 2000. -- Created 1994 Ky. Acts ch. 425, sec. 7, effective January 1, 1995.

Legislative Research Commission Note (7/12/2012). Under the authority of KRS 7.136(1), the Reviser of Statutes has changed the internal format of this statute from the way it appeared in 2012 Ky. Acts ch. 137, sec. 5, to correct a manifest clerical or typographical error. The words in the text were not changed.

367.4915 Activities exempt from KRS 367.4905 to 367.4917.

Except as provided in KRS 367.4911(9), the requirements of KRS 367.4905 to 367.4917 shall not apply to the following:

(1) Excavation by an operator on its own easement except where that easement is crossed by another operator's facilities;

(2) Routine road maintenance or railroad maintenance or repairs;

(3) Tilling of soil for agricultural purposes;

(4) Excavators excavating on private property, using nonmechanized equipment, if there is no encroachment on any operator's right-of-way or easement;

(5) The opening of a grave in a cemetery;

(6) A solid waste disposal site which is properly permitted;

(7) Coal mining operations which are currently regulated under KRS Chapter 350;

(8) A utility operator or utility operator subcontractor performing emergency work as defined in KRS 367.4903;

(9) Leak migration testing using metal probes inserted by hand by an authorized representative of the operator;

(10) Any nonintrusive excavating performed by an operator or his or her subcontractor to locate the operator's underground facilities in response to a notice of excavation from the notification center, if all reasonable precautions have been taken to protect the underground facilities;

(11) Nonintrusive excavating to inspect or perform maintenance for an existing utility pole; or

(12) Connection or disconnection of communications lines within a private or public easement or right-of-way by means of nonintrusive excavating when the depth of the excavations is not greater than twelve (12) inches and is completed within twelve (12) inches of a communications service provider's own communications network.

Effective: July 15, 2024

History: Amended 2024 Ky. Acts ch. 21, sec. 3, effective July 15, 2024. -- Amended 2021 Ky. Acts ch. 105, sec. 2, effective June 29, 2021. -- Amended 2012 Ky. Acts ch. 137, sec. 6, effective July 12, 2012. -- Amended 2008 Ky. Acts ch. 180, sec. 4, effective July 15, 2008. -- Amended 2000 Ky. Acts ch. 222, sec. 5, effective July 14, 2000. -- Created 1994 Ky. Acts ch. 425, sec. 8, effective January 1, 1995.

367.4917 Penalties -- Payment and apportionment of civil penalties -- Enforcement by Public Service Commission -- Written agreement form -- Administrative regulations.

(1) An excavator who fails to comply with any provision of KRS 367.4911, or an operator who fails to comply with any provision of KRS 367.4909 may be subject to a civil penalty of two hundred fifty dollars ($250) for the first violation, no more than one thousand dollars ($1,000) for the second violation and no more than three thousand dollars ($3,000) for the third and any subsequent violation. A violation shall be considered a first violation under this subsection if more than three hundred sixty-five (365) days have elapsed since the last incident attributable to a person in violation of KRS 367.4909 or 367.4911. If a person commits a violation in the course and scope of employment, the penalties shall be imposed on the employer.

(2) A protection notification center that fails to comply with any provision of KRS 367.4913 shall be subject to a civil penalty of one thousand dollars ($1,000) for each violation.

(3) A person that knowingly provides false notice to a utility notification center of an emergency as defined in KRS 367.4903 shall be subject to a civil penalty of one thousand dollars ($1,000) for each violation.

(4) Any person who violates any provision of the Underground Facility Damage Prevention Act of 1994, KRS 367.4901 to 367.4917, that involves damage to a facility containing any flammable, toxic, corrosive, or hazardous material or results in the release of any flammable, toxic, corrosive, or hazardous material shall be subject to a civil penalty, in addition to the civil penalty in subsection (1) of this section, not to exceed one thousand dollars ($1,000) for each violation. The penalties of this subsection are not in conflict with and are in addition to civil damages for personal injury or property damage.

(5) (a) Except as provided in subsection (6) of this section, all civil penalties recovered for a violation of this section shall be paid to the general fund of the state, county, city, or fire protection agency which issued the citation.

(b) In the event that more than one (1) government agency was involved, the court shall direct an apportionment of the civil penalties.

(c) Failure to comply with the provisions of the Underground Facility Damage Prevention Act of 1994, KRS 367.4901 to 367.4917, may be determined at the conclusion of an investigation and shall be based on evidence available to state, county, or city officials, law enforcement, or fire protection agencies which issue the citation.

(6) The commission shall have statewide authority to enforce and assess civil penalties provided for in this section and to seek injunctive relief for any violation that results in damage to an underground facility used to transport gas or hazardous liquid subject to the federal pipeline safety laws, 49 U.S.C. secs. 60101 et seq. Once the commission initiates an investigation or undertakes an enforcement action against a person for an alleged violation, no other state, county, city, or fire protection agency shall initiate or continue any enforcement action against the person for the same alleged violation. Any action to recover penalties assessed pursuant to this subsection shall be brought in the Franklin Circuit Court. All penalties recovered by the commission shall be paid into the State Treasury and credited to the account of the commission.

(7) The commission shall make available on its Web site a written agreement form for an operator and an excavator to agree to a date or series of dates by which time the locate request must be completed if different from those dates established in KRS 367.4909. The form shall contain but is not limited to the parties' names, the locate request number, the date requested, and the location. The parties shall make the executed agreement form available upon request of the commission.

(8) The commission may promulgate administrative regulations in accordance with KRS Chapter 13A to enforce the Underground Facility Damage Prevention Act of 1994. The commission shall exercise its authority under the Underground Facility Damage Prevention Act of 1994 in accordance with the rules and procedures set forth in KRS Chapter 278 and all applicable administrative regulations promulgated by the commission.

Effective: January 1, 2022

History: Amended 2021 Ky. Acts ch. 80, sec. 5, effective January 1, 2022. -- Amended 2018 Ky. Acts ch. 70, sec. 5, effective July 14, 2018. -- Amended 2015 Ky. Acts ch. 31, sec. 5, effective June 24, 2015. -- Amended 2014 Ky. Acts ch. 100, sec. 5, effective July 15, 2014; and ch. 116, sec. 1, effective July 15, 2014. -- Amended 2012 Ky. Acts ch. 137, sec. 7, effective July 12, 2012. -- Amended 2008 Ky. Acts ch. 180, sec. 5, effective July 15, 2008. -- Amended 2000 Ky. Acts ch. 222, sec. 6, effective July 14, 2000. -- Created 1994 Ky. Acts ch. 425, sec. 9, effective January 1, 1995.

Legislative Research Commission Note (7/15/2014). This statute was amended by 2014 Ky. Acts chs. 100 and 116. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 116, which was last enacted by the General Assembly, prevails under KRS 446.250.

Misrepresentation of Geographical Location Misrepresentation of Geographical Location

367.500 Listing of floral business in telephone directory -- Misrepresentation of geographical location prohibited - Application.

(1) A person may not misrepresent the geographical location of a business that derives fifty percent (50%) or more of its gross income from the sale or arranging for the sale of flowers or floral arrangements in the listing of the business in a telephone directory or other directory assistance database.

(2) A person is considered to misrepresent the geographical location of a business in a telephone directory or other directory assistance database if the name of the business indicates that the business is located in a geographical area and:

(a) The business is not located within the geographical area indicated;

(b) The listing fails to identify the municipality and state of the business's geographical location; and

(c) A telephone call to the local telephone number listed in the telephone directory or directory assistance database routinely is forwarded or transferred to a location that is outside the calling area covered by the telephone directory or directory assistance database in which the number is listed.

(3) A person may place a directory listing for a business described in subsection (1) of this section whose name indicates that it is located in a geographical area that is different from the geographical area in which the business is actually located, only if a conspicuous notice in the listing states the municipality and state in which the business is located.

(4) This section does not apply to a publisher of a telephone directory or other publication or a provider of a directory assistance service publishing or providing information about another business.

(5) This section creates no duty and imposes no obligation upon anyone other than the business that is the subject of the advertisement or listing.

(6) This section applies only to information supplied to a telephone directory published after June 26, 2007, or to information supplied for entry into a directory assistance database after June 26, 2007.

Effective: June 26, 2007

History: Created 2007 Ky. Acts ch. 134, sec. 1, effective June 26, 2007.

Subscription Sales of Printed Material Subscription Sales of Printed Material

367.510 "Solicitor" defined.

As used in KRS 367.513 to 367.530 unless the context requires otherwise, "solicitor" means any person engaged in the business of soliciting orders for magazines, periodicals, encyclopedias, books, Bibles, or other printed matter or material on a subscription basis and payable on installments or on a cash basis or by contract or note, the delivery of which magazines, periodicals, encyclopedias, books, Bibles, or other printed material is contingent upon a future event, such as a down payment or one (1) or more installment payments, in any county in this state.

Effective: July 1, 1974

History: Amended 1974 Ky. Acts ch. 281, sec. 1, effective July 1, 1974. -- Created 1972 Ky. Acts ch. 55, sec. 1.

367.513 Registration of solicitor of subscription sales of printed material -- Information required.

Beginning July 1, 1974, every solicitor shall register annually with the county clerk of the county in which such solicitations are to occur and shall furnish to the county clerk the following information:

(1) Whether solicitations shall be made in person or by telephone, and if made in person shall give an adequate description, including state of issue and license number, of any motor vehicle to be used in soliciting sales of printed material, or the telephone number from which telephone solicitations shall be made;

(2) His name and Social Security number;

(3) The mailing address and telephone number of his permanent residence; and

(4) The name, address and telephone number of the company or organization he represents, if any.

Effective: June 17, 1978

History: Amended 1978 Ky. Acts ch. 384, sec. 498, effective June 17, 1978. -- Created 1974 Ky. Acts ch. 281, sec. 2, effective July 1, 1974.

367.515 Registration fee -- Display of registration receipt -- Exceptions.

(1) Upon registration, every solicitor shall pay the county clerk a fee pursuant to KRS 64.012, and the county clerk shall issue the solicitor a numbered receipt to be effective for a period of one (1) year from the date of registration.

(2) Prior to actual solicitation, the solicitor shall display to the potential purchaser the registration receipt issued by the county clerk if soliciting in person or cite to the potential purchaser the number of the registration receipt if soliciting by telephone.

(3) The provisions of KRS 367.513 to 367.530 shall not apply to minors soliciting orders for articles mentioned in KRS 367.510 when such sales are made for the sole purpose of obtaining funds for a school band, club or other organization and such sales are approved in writing by the superintendent of the school system at which the minors are students. The written approval of the superintendent shall identify the product or products being sold, the solicitors to be involved and the duration of sales and shall be filed with the county clerk.

Effective: January 1, 2007

History: Amended 2006 Ky. Acts ch. 255, sec. 31, effective January 1, 2007. -- Amended 1978 Ky. Acts ch. 384, sec. 499, effective June 17, 1978. -- Created 1974 Ky. Acts ch. 281, sec. 3, effective July 1, 1974.

367.520 Voidable contracts for sale of printed material.

All orders or contracts for magazines, periodicals, encyclopedias, books, Bibles, or other printed matter or material shall be void and unenforceable at the option of the purchaser if the person or persons soliciting such order or contract is in violation of the provisions of KRS 367.513 and 367.515.

Effective: July 1, 1974

History: Amended 1974 Ky. Acts ch. 281, sec. 4, effective July 1, 1974. -- Created 1972 Ky. Acts ch. 55, sec. 2.

367.530 Permanent registration books maintained.

All county clerks in the Commonwealth shall maintain a book or other similar record on a permanent basis containing the registrations and other information required to be filed under KRS 367.513. Said book shall be a public record.

Effective: June 17, 1978

History: Amended 1978 Ky. Acts ch. 384, sec. 500, effective June 17, 1978. -- Amended 1974 Ky. Acts ch. 281, sec. 5, effective July 1, 1974. -- Created 1972 Ky. Acts ch. 55, sec. 3.

367.540 Statement of magazine subscription date.

All magazines excluding newspapers mailed into and received in Kentucky shall have included on the label affixed to the magazine or its mailing wrapper the expiration date of the subscriber's subscription written so as to be understandable to an average subscriber.

History: Created 1972 Ky. Acts ch. 55, sec. 4.

Termination of Service Contracts Termination of Service Contracts

367.550 Termination of service contract by military service member.

(1) Any person who enters military service or a member of the Armed Forces of the United States, Reserves, or National Guard, after receiving official orders to relocate for a period of service of no less than ninety (90) days, may terminate or suspend, without penalty or fee, any of the following contracts for services:

(a) Internet;

(b) Television and cable;

(d) Satellite radio.

(2) Termination or suspension of a contract under this section shall be made by delivery of a written or electronic notice to the specified service provider with a copy of the service member's official military orders.

(3) A termination or suspension under this section shall be effective on the day notice is given under subsection (2) of this section.

(4) A service member who terminates or suspends a contract for services under the provisions of this section may reinstate the provisions of services upon providing written or electronic notice to the service provider that he or she is no longer on active military service.

(5) Nothing in this section shall be construed to conflict with the provisions of the federal Servicemembers Civil Relief Act, 50 U.S.C. secs. 3901 et seq.

(6) Nothing in this section shall be construed to excuse or limit the liability of the service member of an outstanding balance due to the service provider.

(7) The provisions of this section shall only apply to contracts entered into on and after June 27, 2019.

Effective: June 27, 2019

History: Created 2019 Ky. Acts ch. 43, sec. 1, effective June 27, 2019.

Negative Option Plan Negative Option Plan

367.570 Definitions.

For purposes of KRS 367.570 to 367.585 unless the context requires otherwise:

(1) "Negative option plan" means a contractual plan or arrangement under which a seller periodically sends to subscribers an announcement which identifies merchandise (other than annual supplements to previously acquired merchandise) it proposes to send to subscribers to such plan, and the subscribers thereafter receive and are billed for the merchandise identified in each such announcement, unless by a date or within a time specified by the seller with respect to each such announcement the subscribers, in conformity with the provisions of such plan, instruct the seller not to send the identified merchandise.

(2) "Subscriber" means any person who has agreed to receive the benefits of, and assume the obligations entailed in, membership in any negative option plan and whose membership in such negative option plan has been approved and accepted by the seller.

(3) "Contract-complete subscriber" refers to a subscriber who has purchased the minimum quantity of merchandise required by the terms of membership in a negative option plan.

(4) "Promotional material" refers to an advertisement containing or accompanying any device or material which a prospective subscriber sends to the seller to request acceptance or enrollment in a negative option plan.

(5) "Selection" refers to the merchandise identified by a seller under any negative option plan as the merchandise which the subscriber will receive and be billed for, unless by the date or within the period specified by the seller, the subscriber instructs the seller not to send such merchandise.

(6) "Announcement" refers to any material sent by a seller using a negative option plan in which the selection is identified and offered to subscribers.

(7) "Form" refers to any form which the subscriber returns to the seller to instruct the seller not to send the selection.

(8) "Return date" refers to a date specified by a seller using a negative option plan as the date by which a form must be received by the seller to prevent shipment of the selection.

(9) "Mailing date" refers to the time specified by a seller using a negative option plan as the time by or within which a form must be mailed by a subscriber to prevent shipment of the selection.

Effective: July 13, 1984

History: Amended 1984 Ky. Acts ch. 111, sec. 150, effective July 13, 1984. -- Created 1978 Ky. Acts ch. 304, sec. 1, effective June 17, 1978.

367.575 Unfair practices -- Duties of Attorney General.

(1) In connection with the sale, offering for sale, or distribution of goods and merchandise in "trade" or "commerce" as defined by KRS 367.110(2), it is an unfair, false, misleading and deceptive practice as prohibited by KRS 367.170 for a seller in connection with the use of any negative option plan to fail to comply with the requirements of KRS 367.570 to 367.585.

(2) All of the remedies, powers and duties provided for the Attorney General by the Consumer Protection Act appertaining to acts declared unlawful by KRS 367.170 shall apply with equal force and effect to acts or practices declared unlawful by KRS 367.570 to 367.585.

(3) KRS 367.570 to 367.585 shall not be construed to limit or restrict the exercise of powers or the performance of the duties of the Attorney General which he is authorized to exercise or perform under any other provision of law.

Effective: June 17, 1978

History: Created 1978 Ky. Acts ch. 304, sec. 2, effective June 17, 1978.

367.580 Contents of promotional material -- Time limits for mailing.

(1) In connection with the use of any negative option plan, promotional material shall clearly and conspicuously disclose the material terms of the plan, including:

(a) That aspect of the plan under which the subscriber must notify the seller, in the manner provided for by the seller, if he does not wish to purchase the selection;

(b) Any obligation assumed by the subscriber to purchase a minimum quantity of merchandise;

(d) Whether billing charges will include an amount for postage and handling;

(e) A disclosure indicating that the subscriber will be provided with at least ten

(10) days in which to mail any form, contained in or accompanying an announcement identifying the selection, to the seller;

(f) A disclosure that the seller will credit the return of any selections sent to a subscriber, and guarantee to the postal service or the subscriber postage to return such selections to the seller when the announcement and form are not received by the subscriber in time to afford him at least ten (10) days in which to mail his form to the seller;

(g) The frequency with which the announcements and forms will be sent to the subscriber, and the maximum number of announcements and forms which will be sent to him during a 12-month period.

(2) In connection with the use of any negative option plan, prior to sending any selection, the seller shall mail to its subscribers, within the time specified by subsection (3) of this section:

(a) An announcement identifying the selection;

(b) A form, contained in or accompanying the announcement, clearly and conspicuously disclosing that the subscriber will receive the selection identified in the announcement unless he instructs the seller that he does not want the selection, designating a procedure by which the form may be used for the purpose of enabling the subscriber so to instruct the seller, and specifying either the return date or the mailing date.

(3) The seller shall mail the announcement and form either at least twenty (20) days prior to the return date or at least fifteen (15) days prior to the mailing date, or provide a mailing date at least ten (10) days after receipt by the subscriber, provided, however, that whichever system the seller chooses for mailing the announcement and form, such system must provide the subscriber with at least ten

(10) days in which to mail his form.

Effective: June 17, 1978

History: Created 1978 Ky. Acts ch. 304, sec. 3, effective June 17, 1978.

367.585 Duties of the seller.

(1) No seller in connection with the use of a negative option plan shall refuse to credit, for the full invoiced amount thereof, the return of any selection sent to a subscriber, and to guarantee to the postal service or the subscriber postage adequate to return such selection to the seller, when:

(a) The selection is sent to a subscriber whose form indicating that he does not want to receive the selection was received by the seller by the return date or was mailed by the subscriber by the mailing date;

(b) Such form is received by the seller after the return date, but has been mailed by the subscriber and postmarked at least three (3) days prior to the return date;

(c) Prior to the date of shipment of such selection, the seller has received from a contract-complete subscriber, a written notice of cancellation of membership adequately identifying the subscriber; however, this provision is applicable only to the first selection sent to a canceling contract-complete subscriber after the seller has received written notice of cancellation. After the first selection shipment, all selection shipments, thereafter are deemed to be unsolicited as defined in KRS 365.710;

(d) The announcement and form are not received by the subscriber in time to afford him at least ten (10) days in which to mail his form.

(2) No seller shall:

(a) Fail to notify a subscriber known by the seller to be within any of the circumstances set forth in subsection (1) of this section, that if the subscriber elects, the subscriber may return the selection with return postage guaranteed and receive a credit to his account.

(b) Refuse to ship within four (4) weeks after receipt of an order merchandise due subscribers as introductory and bonus merchandise, unless the seller is unable to deliver the merchandise originally offered due to unanticipated circumstances beyond the seller's control and promptly makes a reasonably equivalent alternative offer. However, where the subscriber refuses to accept alternatively offered introductory merchandise, but instead insists upon termination of his membership due to the seller's failure to provide the subscriber with his originally requested introductory merchandise, or any portion thereof, the seller must comply with the subscriber's request for cancellation of membership, provided the subscriber returns to the seller any introductory merchandise which already may have been sent him.

(c) Fail to terminate promptly the membership of a properly identified contract- complete subscriber upon his written request.

(d) Ship, without the express consent of the subscriber, substituted merchandise for that ordered by the subscriber.

Effective: June 17, 1978

History: Created 1978 Ky. Acts ch. 304, sec. 4, effective June 17, 1978.

Consumer Credit Contracts Consumer Credit Contracts

367.600 Definitions.

As used in KRS 367.610:

(1) "Person" means an individual, corporation, or any other business organization.

(2) "Consumer" means a natural person who seeks or acquires goods or services for personal, family, or household use.

(3) "Creditor" means a person who, in the ordinary course of business, lends purchase money or finances the sale of goods or services to consumers on a deferred payment basis, provided such person is not acting, for the purposes of a particular transaction, in the capacity of a credit card issuer.

(4) "Purchase money loan" means a cash advance which is received by a consumer in return for a finance charge, which is applied, in whole or substantial part, to a purchase of goods or services from a seller who:

(a) Refers consumers to the creditor; or

(b) Is affiliated with the creditor by common control, contract, or business arrangement.

(5) "Consumer credit contract" means any instrument which evidences or embodies a debt arising from a "purchase money loan" transaction or in which credit is extended by a seller or lessor in connection with a sale or lease to a consumer.

History: Created 1976 Ky. Acts ch. 152, sec. 1.

367.610 Assignee of rights of seller or lessor subject to defenses of buyer against seller or lessor -- Exception.

(1) With respect to any consumer credit contract taken in connection with any purchase money loan or any sale or lease of goods or services other than credit card transaction, an assignee of the rights of the seller or lessor is subject to all defenses of the buyer against the seller or lessor arising out of the sale or lease notwithstanding an agreement to the contrary, but the assignee's liability under this section may not exceed the amount owing to the assignee at the time the defense is asserted against the assignee. Rights of the buyer or lessee under this section can only be asserted as a matter of defense to or set off against a claim by the assignee.

(2) This section shall not apply to any consumer credit contract taken in connection with any purchase money loan or any sale or lease of goods or services which is in compliance with any trade regulation issued or promulgated by the Federal Trade Commission or any regulation of the Board of Governors of the Federal Reserve System or similar federal agency having jurisdiction relating to preservation of consumer claims and defenses in credit transactions.

History: Created 1976 Ky. Acts ch. 152, secs. 2, and 3.

Real Estate Goods or Services Contracts Real Estate Goods or Services Contracts

367.620 Definitions for KRS 367.620 to 367.628.

As used in KRS 367.620 to 367.628:

(1) "Contractor":

(a) Means a person that engages in the business of contracting, providing, or offering to contract or provide, goods or services relating to real estate; and

(b) Includes any person that directly or indirectly solicits or offers a real estate goods or services contract;

(2) "Goods or services relating to real estate":

(a) Except as provided in paragraph (c) of this subsection, means goods, services, or goods and services relating to real estate;

(b) Includes any:

Repair, replacement, construction, reconstruction, or improvement of real estate; and
Tree or debris removal; and

Investigating, negotiating, or effecting the settlement of an insurance claim; or
Otherwise adjusting losses or damages covered by an insurance policy;

(3) "Insured" means a person that is entitled, or may be entitled, to receive benefits or payments under a property, casualty, or property and casualty insurance policy;

(4) "Person" has the same meaning as in KRS 367.110;

(5) "Real estate":

(a) Means any parcel of real estate located in this state that is used for any purpose; and

(b) Includes:

Residential real estate; and
Commercial real estate; and

(6) "Real estate goods or services contract" means a contract for the provision of goods or services relating to real estate, where the goods or services are expected to be paid from property, casualty, or property and casualty insurance proceeds.

Effective: July 15, 2026

History: Amended 2026 Ky. Acts ch. 54, sec. 1, effective July 15, 2026. -- Amended 2025 Ky. Acts ch. 15, sec. 1, effective June 27, 2025. -- Created 2012 Ky. Acts ch. 97, sec. 1, effective July 12, 2012.

Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 54, sec. 12, provides that the amendments to this statute in that Act apply to contracts entered into on or after July 15, 2026.

Legislative Research Commission Note (6/27/2025). 2025 Ky. Acts ch. 15, sec. 10, provides that the amendments to this statute in that Act shall apply to contracts entered on or after June 27, 2025.

Legislative Research Commission Note (7/12/2012). Under the authority of KRS 7.136(1), the Reviser of Statutes has changed the order of the subsections in this statute from the way they appeared in 2012 Ky. Acts ch. 97, sec. 1, to place the terms in alphabetical order. The words in the text were not changed.

367.621 Applicability of KRS 367.620 to 367.628.

In the event of a conflict between KRS 367.620 to 367.628 and any other law, KRS 367.620 to 367.628 shall control.

Effective: June 27, 2025

History: Created 2025 Ky. Acts ch. 15, sec. 7, effective June 27, 2025.

Legislative Research Commission Note (6/27/2025). 2025 Ky. Acts ch. 15, sec. 10, provides that this statute shall apply to contracts entered on or after June 27, 2025.

367.622 Right to cancel real estate goods or services contract -- Conditions -- Notice of cancellation.

(1) A person who enters into a real estate goods or services contract with a contractor may cancel the contract prior to midnight of the fifth business day after the person has received written notice from the insurer that all or part of the claim is not a covered loss under the insurance policy.

(2) Cancellation shall be deemed to have occurred when the person does any of the following:

(a) Personally delivers written notice of cancellation to the contractor;

(b) Deposits written notice of cancellation in the United States mail, postage prepaid, and addressed to the contractor at the address stated in the contract; or

(3) Notice of cancellation need not take a particular form and is sufficient if it indicates by any form of written or recorded expression the intention of the person not to be bound by the contract.

Effective: June 27, 2025

History: Amended 2025 Ky. Acts ch. 15, sec. 2, effective June 27, 2025. -- Created 2012 Ky. Acts ch. 97, sec. 2, effective July 12, 2012.

Legislative Research Commission Note (6/27/2025). 2025 Ky. Acts ch. 15, sec. 10, provides that the amendments to this statute in that Act shall apply to contracts entered on or after June 27, 2025.

367.624 Contractor's duty to disclose cancellation rights and provide standard form.

Prior to entering into a real estate goods or services contract with any person, a contractor shall furnish the person with:

(1) The mailing address of the contractor through which written communication may be received;

(2) The telephone number of the contractor and, if applicable, the contractor's facsimile number and email address;

(3) The following notices in at least ten (10) point boldface type:

(a) "You may cancel this contract at any time before midnight on the fifth business day after you have received written notification from the insurer that all or any part of the contracted goods, services, or goods and services is not a covered loss under the property, casualty, or property and casualty insurance policy. This right to cancel is in addition to any other rights of cancellation you may have under state or federal law or regulation. See the attached Notice of Cancellation form for an explanation of this right."; and

(b) "This contract shall not assign or otherwise transfer, in whole or in part, your duties, rights, or benefits under the property, casualty, or property and casualty insurance policy in violation of KRS 304.20-105. Any contract entered in violation of KRS 304.20-105 shall be void and unenforceable."; and

(4) A fully completed form in duplicate, under the conspicuous caption "NOTICE OF CANCELLATION," and attached to but easily detachable from the contract, in at least ten (10) point boldface type that shall read as follows: "NOTICE OF CANCELLATION ....................................................... (enter date of transaction) If you are notified by the insurer that all or any part of the contracted goods, services, or goods and services is not a covered loss under the property, casualty, or property and casualty insurance policy, you may cancel this contract without penalty or monetary obligation before midnight of the fifth business day after you have received the notice. To cancel this transaction, you may use any of the following methods: mail or otherwise deliver a signed and dated copy of this cancellation notice, or any other written notice of cancellation which you sign and date, to (enter physical address of contractor), or email a notice of cancellation to (enter email address of contractor), or transmit a notice of cancellation to (enter facsimile number of contractor), not later than midnight of the fifth day after you receive notice from the insurer. I HEREBY CANCEL THIS TRANSACTION. ........................................................ (Date) ........................................................ (Buyer's Signature)".

Effective: July 15, 2026

History: Amended 2026 Ky. Acts ch. 54, sec. 2, effective July 15, 2026. -- Amended 2025 Ky. Acts ch. 15, sec. 3, effective June 27, 2025. -- Created 2012 Ky. Acts ch. 97, sec. 3, effective July 12, 2012.

Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 54, sec. 12, provides that the amendments to this statute in that Act apply to contracts entered into on or after July 15, 2026.

Legislative Research Commission Note (6/27/2025). 2025 Ky. Acts ch. 15, sec. 10, provides that the amendments to this statute in that Act shall apply to contracts entered on or after June 27, 2025.

367.626 Definition of "emergency goods or services" -- Advance payments prohibited during cancellation period -- Return of payments or notes of indebtedness -- Unenforceable contract provisions -- Contractor's right to collect reasonable amount for goods and services provided.

(1) As used in this section, "emergency goods or services" means goods, services, or goods and services to immediately respond to a sudden, unexpected occurrence that poses a clear and imminent danger requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.

(2) Except as provided in subsection (3) of this section:

(a) A contractor shall:

Not require any advance payments under a real estate goods or services contract until the cancellation period provided in KRS 367.622 has expired; and
Tender to the payor any payments, partial payments, or deposits made, and any note or other evidence of indebtedness provided, to the contractor under a real estate goods or services contract within ten (10) days after the contract has been cancelled under KRS 367.622; and

(b) 1. A real estate goods or services contract shall not be enforceable against any person who entered into the contract with the contractor if the contract:

a. Has been cancelled under KRS 367.622; or

b. Contains a price that violates KRS 367.374.

A person shall not be required to pay a cancellation fee or any other fee contained in, or required under, a contract that is not enforceable against the person under subparagraph 1. of this paragraph.

(3) A contractor that provides any repair services or emergency goods or services authorized under a real estate goods or services contract that is not enforceable by the contractor under subsection (2)(b) of this section, including but not limited to repair services necessary to prevent further damage to the premises, shall be entitled to collect a reasonable and customary amount for the goods, services, or goods and services provided.

Effective: July 15, 2026

History: Amended 2026 Ky. Acts ch. 54, sec. 3, effective July 15, 2026. -- Amended 2025 Ky. Acts ch. 15, sec. 4, effective June 27, 2025. -- Created 2012 Ky. Acts ch. 97, sec. 4, effective July 12, 2012.

Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 54, sec. 12, provides that the amendments to this statute in that Act apply to contracts entered into on or after July 15, 2026.

Legislative Research Commission Note (6/27/2025). 2025 Ky. Acts ch. 15, sec. 10, provides that the amendments to this statute in that Act shall apply to contracts entered on or after June 27, 2025.

367.627 Enforcement by Attorney General -- Actions for injunctive relief and recovery of actual economic damages -- Civil penalty.

(1) The Attorney General shall enforce KRS 367.620 to 367.628.

(2) All of the remedies, powers, and duties provided to the Attorney General under KRS 367.110 to 367.300, and the penalties provided in KRS 367.990, pertaining to any violation of KRS 367.110 to 367.300, shall apply with equal force and effect to a violation of KRS 367.620 to 367.628.

(3) (a) The Attorney General may institute an action in any court of competent jurisdiction against any person alleged to have violated KRS 367.620 to 367.628.

(b) A person injured by a violation of KRS 367.620 to 367.628 may institute an action in any court of competent jurisdiction against any person alleged to have committed the violation.

(c) In any action brought under this subsection, if the court finds that the person has committed one (1) or more violations of KRS 367.620 to 367.628:

The plaintiff may:

a. Obtain an injunction to enjoin a continuance of the unlawful activity;

b. Recover from the defendant two (2) times the amount of any actual economic damages sustained, which shall be paid to the injured person or persons; and

c. Be awarded reasonable attorney's fees and costs; and

In addition to the remedies and penalties provided under subparagraph
of this paragraph, the Attorney General may recover a civil penalty of five thousand dollars ($5,000) per violation.

(4) It shall not be necessary that actual economic damages be alleged or proved in order to recover any other remedy or penalty authorized under this section.

(5) (a) The remedies and penalties prescribed in KRS 367.620 to 367.628 shall be cumulative.

(b) KRS 367.620 to 367.628 shall not be construed to limit or restrict the powers, duties, remedies, or penalties available to the Attorney General, the Commonwealth, or any other person under any other statutory or common law.

Effective: July 15, 2026

History: Amended 2026 Ky. Acts ch. 54, sec. 5, effective July 15, 2026. -- Amended 2025 Ky. Acts ch. 15, sec. 5, effective June 27, 2025. -- Created 2017 Ky. Acts ch. 46, sec. 2, effective June 29, 2017.

Legislative Research Commission Note (6/27/2025). 2025 Ky. Acts ch. 15, sec. 10, provides that the amendments to this statute in that Act shall apply to contracts entered on or after June 27, 2025.

367.628 Acts prohibited for contractor.

(1) (a) Except as provided in paragraph (c) of this subsection, a contractor, or person representing a contractor, shall not:

Represent, negotiate, or advertise to represent or negotiate, as a public adjuster or otherwise, on behalf of any insured on any insurance claim in connection with the provision of goods or services relating to real estate; or
Represent or market the contractor or person, any employee or agent of the contractor or person, or any business of the contractor or person as:

a. A claims specialist or expert;

b. An insurance specialist or expert; or

c. Having any affiliation with an insurer or an insurer's agent.

(b) Any provision of a contract between a contractor, or a person representing a contractor, and an insured in violation of paragraph (a)1. of this subsection shall not be enforceable.

Providing an estimate for the provision of goods or services relating to real estate; or
Conferring with an insurance company's representative about damage to real estate after a claim has been submitted by an insured.

(2) Where goods or services relating to real estate are expected to be paid from property, casualty, or property and casualty insurance proceeds, a contractor or person representing a contractor shall not:

(a) Cause, or command or encourage another person to cause, damage to any part of the real estate in order to:

Increase the scope of goods or services provided; or
Secure a contract for goods or services;

(b) Offer to pay or rebate all or any portion of an insurance deductible or claims proceeds as an inducement to the sale of goods or services by a contractor;

(d) Pay or offer to pay the insured, or his or her representative, for whom services have been or will be performed, for any reason, any form of compensation in excess of one hundred dollars ($100), including but not limited to a:

Bonus;
Coupon;
Credit;
Gift;
Prize;
Referral fee; or
Any other item having a monetary value;

(e) Be financially connected, directly or indirectly, to any of the following in the provision of the goods or services relating to real estate:

A public adjuster;
An appraiser; or
Any other person that specializes in:

a. Investigating, negotiating, or effecting the settlement of an insurance claim;

b. Providing estimates other than estimates for goods or services relating to real estate;

c. Insurance; or

d. Supplements;

(f) Solicit or provide contracts on behalf of any other person or business engaged in a claim under the policy for services that are outside the contractor's scope of work, including but not limited to contracts for appraisers, public adjusters, or any other person that specializes in:

Investigating, negotiating, or effecting the settlement of an insurance claim;
Providing estimates other than estimates for goods or services relating to real estate;
Insurance; or
Supplements; or

(g) File or claim a mechanic's lien pursuant to KRS 376.010 against an insured by reason of the insured's failure or refusal to pay any excess charge over and above the amount paid or expected to be paid by an insurer under a property, casualty, or property and casualty insurance policy.

(3) In addition to being a violation of this section, a violation of subsection (2)(a) of this section shall also be:

(a) A fraudulent insurance act in violation of KRS 304.47-020; and

(b) Criminal mischief in the first degree in violation of KRS 512.020.

Effective: July 15, 2026

History: Amended 2026 Ky. Acts ch. 54, sec. 4, effective July 15, 2026. -- Amended 2025 Ky. Acts ch. 15, sec. 6, effective June 27, 2025. -- Amended 2017 Ky. Acts ch. 46, sec. 1, effective June 29, 2017. -- Created 2012 Ky. Acts ch. 97, sec. 5, effective July 12, 2012.

Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 54, sec. 12, provides that the amendments to this statute in that Act apply to contracts entered into on or after July 15, 2026.

Legislative Research Commission Note (6/27/2025). 2025 Ky. Acts ch. 15, sec. 10, provides that the amendments to this statute in that Act shall apply to contracts entered on or after June 27, 2025.

Electronic Dissemination of Commercial Recording and Audiovisual Work Electronic Dissemination of Commercial Recording and Audiovisual Work

367.630 Definitions for KRS 367.630 to 367.638.

As used in KRS 367.630 to 367.638:

(1) "Commercial recording or audiovisual work" means a recording or work whose owner, assignee, authorized agent, or licensee has disseminated or intends to disseminate the recording for sale, rental, performance, or exhibition to the public, including under license, but does not include an excerpt consisting of less than substantially all of a work or recording. A recording or work may be commercial regardless of whether a person who electronically disseminates it seeks commercial advantage or private financial gain from the dissemination;

(2) "Electronic dissemination" means initiating a transmission of, making available, or otherwise offering a commercial recording or audiovisual work for distribution, display, or performance through the Internet or other digital network regardless of whether another person has previously electronically disseminated the same commercial recording or audiovisual work; and

(3) "Web site" means a set of related Web pages served from a single Web domain. The term does not include a home page or channel page for the user account of a person who is not the owner or operator of the Web site upon which the user home page or channel page appears.

Effective: July 14, 2022

History: Created 2022 Ky. Acts ch. 52, sec. 1, effective July 14, 2022.

Legislative Research Commission Note (7/14/2022). 2022 Ky. Acts ch. 52, sec. 9, provides that the Act, which created KRS 367.630 to 367.638 and 365.780 to 365.784, may be cited as the Kentucky True Origin of Digital Goods and Truth in Musical Advertising Act.

367.632 Disclosure of ownership information for the electronic dissemination of third-party commercial recordings or audiovisual work -- Minimum requirements.

(1) A person who owns or operates a Web site or online service dealing in substantial part in the electronic dissemination of third-party commercial recordings or audiovisual work, directly or indirectly, and who electronically disseminates such recordings or audiovisual works to consumers in this state shall clearly and conspicuously disclose his or her true and correct name, physical address, telephone number, and e-mail address on his or her Web site or online service in a location readily accessible to a consumer using or visiting the Web site or online service.

(2) The following locations are deemed readily accessible for purposes of this section:

(a) A landing or home Web page or screen;

(b) An "about" or "about us" Web page or screen;

(d) An information Web page or screen; or

(e) Another place on the Web site or online service commonly used to display identifying information to consumers.

Effective: July 14, 2022

History: Created 2022 Ky. Acts ch. 52, sec. 2, effective July 14, 2022.

367.634 Cause of action -- Notice.

(1) An owner, assignee, authorized agent, or exclusive licensee of a commercial recording or audiovisual work electronically disseminated by a Web site or online service in violation of KRS 367.632 may bring a private cause of action to obtain a declaratory judgment that an act or practice violates KRS 367.632 and obtain an injunction against any person who knowingly has violated, is violating, or is otherwise likely to violate that section. As a condition precedent to filing a civil action under KRS 367.630 to 367.638, the aggrieved party must make reasonable efforts to place an individual alleged to be in violation of KRS 367.632 on notice of the alleged violation and that failure to cure within fourteen (14) business days may result in a civil action filed in a court of competent jurisdiction.

(2) Upon motion of the party instituting the action, the court may make appropriate orders to compel compliance with KRS 367.632.

(3) The prevailing party in a cause under subsection (1) of this section is entitled to recover necessary expenses and reasonable attorney's fees.

Effective: July 14, 2022

History: Created 2022 Ky. Acts ch. 52, sec. 3, effective July 14, 2022.

367.636 Additional civil and criminal remedies available.

(1) The remedies and penalties provided in KRS 367.634 are supplemental to those provisions of state and federal criminal and civil law which impose prohibitions or provide penalties, sanctions, or remedies against the same conduct prohibited by KRS 367.630 to 367.638.

(2) KRS 367.630 to 367.638 shall not be construed to:

(a) Bar any cause of action or preclude the imposition of sanctions or penalties that would otherwise be available under state or federal law; or

(b) Impose financial liability on providers of an interactive computer service, communications service, commercial or mobile service, or information service, including but not limited to an Internet provider, advertising network or exchange, domain name registration provider, and a hosting service provider, to the extent that the providers provide the transmission, storage, or caching of electronic communications or messages of others or provide another related telecommunications service, commercial mobile radio service, or information service, for use of such services by another person in violation of KRS 367.630 to 367.638.

Effective: July 14, 2022

History: Created 2022 Ky. Acts ch. 52, sec. 4, effective July 14, 2022.

367.638 Liability for unfair, false, misleading, or deceptive act or practice in conduct of trade or commerce -- Civil penalties -- Powers of Attorney General.

(1) A violation of KRS 367.632 shall be deemed an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170.

(2) A public or private right or remedy prescribed by KRS 367.110 to 367.300 may be used to enforce KRS 367.630 to 367.638.

(3) All of the remedies, powers, and duties delegated to the Attorney General by KRS 367.190 to 367.300, and the penalties provided in KRS 367.990, relating to acts and practices violating KRS 367.170, shall apply with equal force and effect to acts and practices declared unlawful by KRS 367.630 to 367.638.

(4) A person who violates KRS 367.632 is liable to this Commonwealth for a civil penalty of not more than two thousand dollars ($2,000) per violation. Each twenty- four (24) hour period for which a person does not comply with KRS 637.632 shall constitute a separate violation.

(5) Nothing in KRS 367.630 to 367.638 shall be construed to limit or restrict the exercise of powers or the performance of the duties of the Attorney General authorized under any other provision of law.

Effective: July 14, 2022

History: Created 2022 Ky. Acts ch. 52, sec. 5, effective July 14, 2022.

Solicitation for Charitable and Civic Purposes Solicitation for Charitable and Civic Purposes

367.650 Definitions for KRS 367.650 to 367.670.

As used in KRS 367.650 to 367.670 unless the context requires otherwise:

(1) "Charitable or civic purpose" means any purpose or activity which holds itself out to be benevolent, educational, philanthropic, humane, patriotic, religious, eleemosynary or fraternal, or to be established for a social welfare or advocacy, public health, environmental conservation, or civic purpose, or is designed to serve the welfare of society generally, or any class or group to which society is morally obligated, or a specific community or to preserve or improve the culture thereof or environment enjoyed thereby.

(2) "Charitable organization" means any person determined by the Internal Revenue Service to be a tax exempt organization pursuant to Section 501(c)(3) of the Internal Revenue Code; or a person who is or holds himself out to be established for a charitable or civic purpose; or a person who employs a charitable or civic appeal as the basis of a solicitation, or employs an appeal that suggests there is a charitable or civic purpose to a solicitation.

(3) "Contribution" means the grant, promise, or pledge of money, credit, property, financial assistance, or other thing of any kind or value in response to a solicitation for a charitable or civic purpose. It does not include:

(a) Bona fide fees, dues, or assessments paid by members, if that membership is not conferred solely as consideration for making a contribution in response to a solicitation; or

(b) Money, property, or compensated services received from any governmental authority.

(4) "Solicit" and "solicitation" mean, respectively, to engage in, and the act of, requesting, directly or indirectly, that an addressed person or limited audience or the public generally make a contribution. Solicitation shall be deemed to have taken place when the request is made, whether or not the requested contribution is made.

(5) "Person" means any individual, corporation, trust, partnership, organization, foundation, society, or other legal entity.

(6) "Professional solicitor" means a person who for compensation or other financial consideration solicits contributions in this state, directly or indirectly, for or on behalf of a charitable organization. A person qualifies as a professional solicitor if he is hired on a fee, commission, or percentage basis and the work is performed by him or his agents or the employees or volunteers of the benefitting charitable organization under the direction, supervision, or instruction of the solicitor. A professional solicitor conducts or supervises specific fundraising activities or events in which gifts are solicited, received, and deposited by the professional solicitor or his agents, expenses are paid, and net proceeds delivered to the charitable organization. A bona fide salaried officer, employee, or volunteer of a charitable organization shall not be deemed to be a professional solicitor, unless he is employed or engaged as a fundraising consultant or a professional solicitor by another charitable organization.

(7) "Fundraising consultant" means any person who, for compensation, plans, manages, advises, consults, or develops material for or with respect to the solicitation for any charitable organization. A fundraising consultant shall not, at any time, have custody of contributions from a solicitation or solicit contributions, directly or indirectly. If a fundraising consultant's fee is related to the amount of contributions received from a solicitation in which he took part, the consultant is considered a professional solicitor. A fundraising consultant shall not employ, procure, or otherwise engage any compensated person to solicit contributions. A bona fide salaried officer, employee, or volunteer of a charitable organization shall not be deemed to be a fundraising consultant, unless he is employed or engaged as a fundraising consultant or a professional solicitor by another charitable organization.

(8) "Religious organization" means any organization, the activity of which is protected by Section 1(2) of the Constitution of Kentucky and the First Amendment to the Constitution of the United States.

(9) "Solicitor" means a natural person who, by personal contact, transmitted oral communication or writing which identifies that person, requests a specific person to make a contribution for charitable or civic purposes.

Effective: July 15, 1994

History: Amended 1994 Ky. Acts ch. 151, sec. 1, effective July 15, 1994. -- Created 1976 Ky. Acts ch. 216, sec. 1.

367.652 Registration of professional solicitors and fundraising consultants -- Prohibitions -- Background check.

(1) A professional solicitor shall file a registration statement with, and obtain the approval of, the Attorney General before acting as a professional solicitor. The registration statement shall be attested to by the professional solicitor, if an individual, or by the principal officer of the professional solicitor, if the solicitor is a business entity. The statement shall be accompanied by a fee of three hundred dollars ($300), plus the costs of a background investigation to the Attorney General's office. The funds shall be placed in a trust or agency account pursuant to KRS 45.253. If a professional solicitor is a corporation or partnership, a single fee shall cover all its partners, members, employees, directors, agents, or officers.

(2) Each registration shall expire on December 31 of the calendar year in which it is filed and may be renewed by reapplying and paying the prescribed fee.

(3) At the time of filing the registration statement, a professional solicitor shall file with and have approved by the Attorney General a full cash or surety bond in the amount of twenty-five thousand dollars ($25,000). The bond shall be in favor of the Attorney General and shall be held for any person having prevailed in a cause of action against the solicitor for liabilities resulting from the solicitor's violation of KRS 367.650 to 367.670 or any administrative regulation promulgated pursuant to these sections. The bond shall be in a form prescribed by the Attorney General. If a surety bond is issued, it shall be issued by an insurer authorized to transact surety insurance in this state pursuant to KRS Chapter 304. The Attorney General may require that any cash offered as security for a full cash bond be held in escrow by a financial institution located in the state, subject to an escrow agreement approved by the Attorney General.

(4) The registration statement shall be filed in a form prescribed by the Attorney General and shall include:

(a) The name, address, and telephone number of the professional solicitor and the agent authorized to accept service of process in this state;

(b) The names in which the professional solicitor is doing business in Kentucky and any names used in the past;

(d) A copy of any articles of incorporation and by-laws of the solicitor, fund raising consultant, and the charitable organization, and any tax-exempt status letter from the Internal Revenue Service;

(e) The names, addresses, and occupations of persons employed by or who have contracted with the professional solicitor and a statement of whether those persons have been convicted of a felony or a misdemeanor involving moral turpitude or arising from their conduct as solicitors for a charitable organization or purpose;

(f) A copy of the financial statement for the professional solicitor's preceding fiscal year, which shall set out the total profits and revenue from all fundraising activities, the balance sheet, the kind and amounts of funds raised, specific costs in raising funds, the percentage of funds raised on behalf of the charitable organization which are actually paid to the organization for charitable purposes, and the location of the original financial records;

(g) A statement of whether the professional solicitor has ever been enjoined by any court or otherwise prohibited from soliciting contributions in any jurisdiction;

(h) A statement indicating the method by which the solicitation is made, a description of the promotional plan together with copies of all advertisements, the location of all telephones being used, and the time period during and the areas in which the solicitations are made; and

(i) Any other information which may be required by the Attorney General for the public interest or for the protection of contributors.

(5) A fundraising consultant shall file a registration statement with and obtain the approval of the Attorney General before acting as a consultant. The registration statement shall be attested to by the fundraising consultant, if the consultant is an individual, or by the principal officer of the fundraising consultant, if the consultant is a business entity. The statement shall be accompanied by a fee of fifty dollars ($50), plus the costs of a background investigation. The fees shall be placed in a trust or agency account pursuant to KRS 45.253. If a fundraising consultant is a corporation or partnership, a single fee shall cover all its partners, members, employees, directors, agents, or officers.

(6) Each registration shall expire on December 31 of the calendar year in which it is filed and may be renewed by reapplying and paying the fee.

(7) The professional solicitor and fundraising consultant shall report in writing to the Attorney General any material change in the registration statement occurring after filing. The report shall be filed within seven (7) calendar days after the change occurs.

(8) No person shall act as a professional solicitor or fundraising consultant if he, his officers, directors, or any person with a controlling interest in the business, or any person the professional solicitor or fundraising consultant employs or procures to solicit for compensation or to advise, consult, plan, or manage in regards to the solicitation campaign, has been convicted by a court of any state or the United States of a felony or a misdemeanor involving moral turpitude or arising from his conduct as a solicitor or consultant for a charitable organization or purpose. A background check on each person set out in this subsection shall be performed by the Attorney General's office. The actual cost of the investigation shall be added to the registration fee.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 151, sec. 3, effective July 15, 1994.

367.653 Contracts -- Requirements -- Filing of contract and promotion registration statement -- Violability of contract with unregistered party.

(1) A contract between a charitable organization and a professional solicitor or a charitable organization and a fundraising consultant shall be in writing. The contract shall be signed by two (2) authorized officials of the charitable organization, one (1) of whom shall be a member of the organization's governing body and the authorized contracting officer for the professional solicitor or fundraising consultant.

(2) The contract shall clearly state:

(a) The respective obligations of each party;

(b) The percentage of the gross revenue from the campaign that the charitable organization will receive;

(d) The geographic area where the campaign will take place;

(e) The date the campaign will begin and end;

(f) A fundraising budget; and

(g) Provisions for a final accounting. The contract shall also identify the services to be provided by the professional solicitor or the fundraising consultant and shall indicate whether the solicitor or the consultant will, at any time, have custody of any contributions. The contract may further be defined by administrative regulations promulgated by the Attorney General pursuant to this section.

(3) At least fourteen (14) calendar days prior to the performance of any service pursuant to the contract, a professional solicitor or fundraising consultant shall file with the Attorney General a copy of the contract. No solicitation pursuant to the contract shall begin until the Attorney General has certified that the contract meets the statutory requirements.

(4) When filing the contract, a professional solicitor shall also file a written promotion registration statement with the Attorney General. The statement shall be attested to by the professional solicitor's authorized contracting officer and shall be in the form as prescribed by the Attorney General in administrative regulations. The contract filed by a professional solicitor shall be valid only if it complies with this section and is accompanied by a promotion registration statement.

(5) No professional solicitor or fundraising consultant shall contract with a charitable organization unless the professional solicitor or fundraising consultant is registered with the Attorney General. A contract with an unregistered professional solicitor or fundraising consultant shall be violable at the option of the charitable organization.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 151, sec. 4, effective July 15, 1994.

367.655 Repealed, 1994.

[Repealed]

367.656 Nonacceptance, revocation, suspension, or refusal to renew registration -- Judicial review -- Civil action.

(1) (a) A filing pursuant to KRS 367.653 and this section shall be accepted unless the Attorney General notifies the professional solicitor or fundraising consultant otherwise, within fourteen (14) calendar days of the receipt of filing. If a filing is not accepted, the Attorney General shall notify the affected charity at the time of rejection. Within seven (7) calendar days after receiving a notice that the filing requirements are not satisfied, the professional solicitor or fundraising consultant may request a hearing. The hearing shall be held in accordance with KRS Chapter 13B.

(b) A professional solicitor or fundraising consultant may submit an amended filing upon receiving notice that his prior filing has not been accepted.

(2) The Attorney General may revoke, suspend, or refuse to renew the registration of a professional solicitor or fundraising consultant if:

(a) He has violated any provision of KRS 367.650 to 367.670 or any administrative regulations promulgated by the Attorney General pursuant to those sections;

(b) He or any of his principal officers have refused or failed, after notice, to produce any records or disclose any information required pursuant to KRS 367.650 to 367.670, or any administrative regulations promulgated by the Attorney General pursuant to those sections.

(c) He has made a material false statement in an application, statement, or report required to be filed under KRS 367.650 to 367.670.

(3) Any party to a hearing who is aggrieved by the final order may seek judicial review by filing an appeal in the Franklin Circuit Court in accordance with KRS Chapter 13B.

(4) The Attorney General may bring a civil action directly in the Franklin Circuit Court or in the Circuit Court of any county in which the fundraising campaign involving the professional solicitor or fundraising consultant is being conducted to revoke or suspend the registration statement for any of the grounds set forth in this section.

Effective: July 15, 1996

History: Amended 1996 Ky. Acts ch. 318, sec. 349, effective July 15, 1996. -- Created 1994 Ky. Acts ch. 151, sec. 5, effective July 15, 1994.

367.657 Filing of federal Form 990 fulfills reporting requirement.

(1) Prior to any solicitation, every charitable organization required by the Internal Revenue Service to file a federal Form 990 and soliciting contributions in the Commonwealth, or for which contributions are solicited shall file with the Attorney General a copy of its most recent federal Form 990 unless exempted by KRS 367.660.

(2) If a charitable organization is newly formed and a Form 990 has not yet been filed with the Internal Revenue Service, a notice of intent to solicit, in a form prescribed pursuant to administrative regulations promulgated by the Attorney General, shall be filed prior to any solicitation. Each chapter, branch, or affiliate of a charitable organization shall file a separate notice of intent or report the necessary information to its parent charitable organization that shall then file a consolidated notice of intent to solicit. If a consolidated notice of intent is filed, information arising out of the activities of each chapter, branch, or affiliate of the charitable organization in this state shall be covered in the notice. A separate notice of intent shall be filed for each chapter, branch, or affiliate upon the request of the Attorney General. The notice shall expire on December 31 of the calendar year in which it was filed.

(3) The Form 990 shall be filed with the Attorney General each year in which contributors are solicited in the Commonwealth at the same time the form is filed with the Internal Revenue Service. If a Form 990 is not filed with the Internal Revenue Service, a new notice of intent to solicit shall be filed with the Attorney General.

Effective: July 15, 1994

History: Amended 1994 Ky. Acts ch. 151, sec. 2, effective July 15, 1994. -- Created 1982 Ky. Acts ch. 309 sec. 2, effective July 15, 1982.

367.658 Financial report of campaign -- Filing -- Audit.

Within ninety (90) days after the completion of a solicitation campaign or on the anniversary of the commencement of a solicitation campaign lasting more than one (1) year, a professional solicitor shall file with the Attorney General a financial report of the campaign, including gross revenues and an itemization of all expenses incurred. This report shall be attested to by the authorized contracting agent for the professional solicitor and two (2) authorized officials of the charitable organization and shall be completed on a form prescribed by the Attorney General. This financial report shall be audited at the request of the Attorney General's office.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 151, sec. 7, effective July 15, 1994.

367.660 Exempt solicitations.

The following solicitations are exempt from the provisions of KRS 367.650 to 367.670:

(1) Solicitations by an organization of contributions from its members and their families only, if membership is not included in a solicitation to avoid the provisions of KRS 367.650 to 367.670, is not granted upon the basis of contributions alone, and is within the exception of KRS 367.650(3).

(2) Solicitations by a religious organization for funds for religious purposes such as maintenance of a house of worship, conduct of services, and propagation of its faith and tenets as distinguished from other charitable and civic purposes employed by nonreligious organizations.

(3) Solicitations by a publicly-owned or nonprofit privately-endowed educational institution regulated by the Kentucky Board of Education, the Council on Postsecondary Education, or an equivalent public authority of the jurisdiction where the institution is located, from the alumni, faculty members, student body of the institution and their families, and from corporations, for the continuance of an established educational program.

(4) Local solicitations by a student group or parent-teacher association for its campus or group connected activities with the approval of the administration of the educational institution.

Effective: May 30, 1997

History: Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 148, effective May 30, 1997. -- Amended 1996 Ky. Acts ch. 362, sec. 6, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 151, sec. 13, effective July 15, 1994.

367.664 Signage for receptacle or drop-off site for donations of clothing or other items.

(1) If any person places or maintains a receptacle in public view or establishes or maintains some form of drop-off site for collecting donations of clothing or any other items that do not qualify as a charitable contribution as defined by Section 170(c) of the Internal Revenue Code, the receptacle or drop-off site shall contain a permanently attached sign or label that includes, in lettering not less than two (2) inches in height and one-half (1/2) inch in width:

(a) The name, address, telephone number, and e-mail address of the person who places or maintains the receptacle or establishes or maintains the drop-off site; and

(b) A statement that reads as follows: "Donations do not qualify as a charitable contribution for federal tax purposes."

(2) The sign or label shall be placed immediately below the opening in the receptacle or shall be prominently displayed at the drop-off site.

Effective: July 15, 2016

History: Created 2016 Ky. Acts ch. 56, sec. 2, effective July 15, 2016.

367.665 Applicability of remedies, powers, and duties of Attorney General provided by KRS 367.190 to 367.300 or by other provisions of law.

(2) Nothing in KRS 367.650 to 367.670 shall be construed to limit or restrict the powers, duties, remedies, or penalties available to the Attorney General, the Commonwealth, or any private person under any other provision of statutory or common law.

Effective: July 15, 1994

History: Amended 1994 Ky. Acts ch. 151, sec. 11, effective July 15, 1994. -- Created 1976 Ky. Acts ch. 216, sec. 4.

367.666 Interstate reciprocal agreements on exchanging information -- Fiscal records -- Contribution deposit requirements -- Maintenance of records.

(1) The Attorney General may enter into reciprocal agreements with the appropriate authority of any other state for the purpose of exchanging information with respect to charitable organizations, professional solicitors, and fundraising consultants.

(2) A professional solicitor shall maintain fiscal records concerning his charitable solicitations in the Commonwealth. These records shall be kept on file during each solicitation campaign and for at least three (3) years after completion of the solicitation campaign.

(3) Each contribution collected by or in the custody of a professional solicitor shall be solely in the name of the charitable organization for which the contribution was solicited. The professional solicitor shall deposit the contribution in an account at a bank or other financial institution within two (2) business days of receiving the contribution. The account shall be in the name of the charitable organization, which shall have sole control of all withdrawals from the account. Neither the professional solicitor nor the fundraising consultant shall withdraw any deposited funds from the account.

(4) The records shall be maintained by the professional solicitor or the fundraising consultant, if contributions are collected, and shall be available for inspection by the Attorney General no later than ten (10) business days after his request.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 151, sec. 8, effective July 15, 1994.

367.667 Prohibited acts and practices in charitable solicitations.

(1) The following acts and practices in the conduct of charitable solicitation shall be considered unfair, false, misleading, or deceptive in violation of KRS 367.170:

(a) Representing or leading anyone in any manner to believe that a solicitation is for or on behalf of a charitable organization; or utilizing any emblem, device, or printed matter belonging to or associated with a charitable organization; or otherwise representing that any part of the contributions received will be donated to a charitable organization without first being authorized in writing to do so by the charitable organization;

(b) Utilizing a name, symbol, or statement so closely related or similar to that used by another charitable organization, public official, or public agency that its use would tend to confuse or mislead a solicited person;

(c) 1. Causing misleading caller identification information to be transmitted to users of caller identification services, or to otherwise misrepresent the origin of the charitable telephone solicitation.

This paragraph shall not apply to solicitations which block caller identification, nor shall it apply to solicitations in which the name and telephone number of the party on whose behalf the call is made is substituted for the name and telephone number of actual caller;
This paragraph shall not apply to a telecommunications, broadband, or Voice over Internet Protocol service provider that is:

b. Providing or configuring a service or service feature as requested by the customer;

c. Acting in a manner that is authorized or required by applicable law; or

d. Engaging in other conduct that is necessary to provide service; or

(d) Representing when soliciting funds that a charity will be the recipient of the funds when the professional solicitor or his employer pursuant to a contract is allowed to or will receive more than fifty percent (50%) of the gross receipts of the funds solicited as his compensation. It shall be a defense in any action brought to enforce this subsection for the professional solicitor to show that he disclosed in a clear and conspicuous manner to the prospective donor the percentage of the funds which he was allowed by contract to receive.

(2) (a) Notwithstanding other criminal and administrative remedies, a person or class of persons alleging:

Receipt of a call in violation of subsection (1)(c) of this section; or
That a number assigned to the person was misleadingly transmitted as a caller identification number by a solicitor; may bring a civil action in the county where the plaintiff resides or has his or her principal place of business, against any person who is responsible for or who knowingly participated in the violation.

(b) The civil action brought under paragraph (a) of this subsection may be for:

Appropriate injunctive relief;
Actual damages;
Actual expenses incurred, including court costs and attorney's fees; and
Punitive damages.

Effective: June 27, 2019

History: Amended 2019 Ky. Acts ch. 105, sec. 3, effective June 27, 2019. -- Amended 1994 Ky. Acts ch. 151, sec. 6, effective July 15, 1994. – Created 1992 Ky. Acts ch. 457, sec. 1, effective July 14, 1992.

367.668 Disclosure requirements.

(1) Prior to orally requesting a contribution or when requesting a contribution in writing, a professional solicitor shall clearly disclose:

(a) The professional solicitor's name, as set out in the registration statement filed with the Attorney General pursuant to KRS 367.652, phone number or e-mail address, and the fact that the professional solicitor is being paid for providing services;

(b) The name of the charitable organization the professional solicitor represents and a description of how the contributions raised by the solicitation will be used for a charitable or civic purpose; and

(c) If the professional solicitor places or maintains a receptacle in public view for the purpose of collecting contributions in the form of clothing, household items, and other items, the receptacle shall contain a sign or label that:

Includes the information contained in paragraphs (a) and (b) of this subsection;
Includes a statement that reads as follows: "Items donated here support, in part, a for-profit professional solicitor.";
Is in lettering not less than two (2) inches in height and one-half (1/2) inch in width; and
Is placed immediately below the opening in the receptacle used to deposit donations.

(2) Any individual who acts on behalf of the professional solicitor and identifies himself by name shall give his legal name.

(3) Any responses given by or on behalf of a professional solicitor to an oral or written request for information shall be truthful.

(4) The written confirmation, receipt, or reminder sent to a contributor or one who has pledged to contribute, following an oral solicitation, shall clearly include the information required by subsections (1) and (2) of this section.

(5) If the person being solicited requests information regarding the amount or percentage of funds going to the charitable organization or for a charitable or civic purpose, the professional solicitor shall inform the person solicited of the percentage of the gross revenue or the reasonable estimate of the gross revenue that the charitable organization will receive from the solicitation campaign. The Attorney General shall promulgate administrative regulations necessary to effectuate this disclosure.

Effective: July 15, 2016

History: Amended 2016 Ky. Acts ch. 56, sec. 1, effective July 15, 2016. -- Amended 2013 Ky. Acts ch. 13, sec. 2, effective June 25, 2013. -- Created 1994 Ky. Acts ch. 151, sec. 9, effective July 15, 1994.

367.669 Local ordinances, rules, and regulations.

KRS 367.650 to 367.670 does not preclude any city, county, urban-county, or charter county government from promulgating or enacting ordinances, rules, and regulations further regulating the solicitation of contributions within the respective city, county, urban-county, or charter county government. The provisions shall not alter any of the obligations set forth in KRS 367.650 to 367.670 or any administrative regulations promulgated pursuant to those sections but may add other requirements and rules as appear to be proper to the city, county, urban-county, or charter county government involved.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 151, sec. 10, effective July 15, 1994.

367.670 Powers of Attorney General not limited or restricted.

KRS 367.650 to 367.670 shall not be construed to limit or restrict the exercise of powers or the performance of the duties of the Attorney General which he is authorized to exercise or perform under any other provision of law.

History: Created 1976 Ky. Acts ch. 216, sec. 5.

Consumer Protection in Eye Care Act Consumer Protection in Eye Care Act

367.680 Definitions for KRS 367.680 to 367.690.

As used in KRS 367.680 to 367.690:

(1) "Assessment mechanism":

(a) Means automated or virtual equipment, application, or technology designed to be used on a telephone, a computer, or an Internet-based device that may be used either in person or remotely to conduct an eye assessment; and

(b) Includes artificial intelligence devices and any equipment, electronic or nonelectronic, that is used to perform an eye assessment;

(2) "Contact lens" means any lens placed directly on the surface of the eye, regardless of whether or not it is intended to correct a visual defect, including any cosmetic, therapeutic, or corrective lens;

(3) "Eye assessment" means an assessment of the ocular health and visual status of a patient that may include but is not limited to objective refractive data or information generated by an automated testing device, including an autorefractor, in order to establish a medical diagnosis for the correction of vision disorders;

(4) "Person" means an individual, corporation, trust, partnership, incorporated or unincorporated association, and any other legal entity;

(5) "Prescription" means a handwritten or electronic order issued by a licensed optometrist, osteopath, or physician, or an oral order issued directly by a licensed optometrist, osteopath, or physician;

(6) "Seller" means an individual or entity that sells contact lenses or visual aid glasses and dispenses them to Kentucky residents in any manner; and

(7) "Visual aid glasses":

(a) Means eyeglasses, spectacles, or lenses designed or used to correct visual defects, including spectacles that may be adjusted by the wearer to achieve different types or levels of visual correction or enhancement; and

(b) Does not include optical instrument or devices that are:

Not intended to correct or enhance vision;
Sold without consideration of the visual status of the individual who will use the optical instrument or device, including sunglasses that are designed and used solely to filter out light; or
Completely assembled eyeglasses or spectacles designed and used solely to magnify.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 44, sec. 1, effective July 14, 2018. -- Created 2003 Ky. Acts ch. 1, sec. 1, effective June 24, 2003.

367.6801 Short title for KRS 367.680 to 367.690.

KRS 367.680 to 367.690 may be cited as the Consumer Protection in Eye Care Act.

Effective: July 14, 2018

History: Created 2018 Ky. Acts ch. 44, sec. 11, effective July 14, 2018.

367.6802 Assessment mechanism required to conduct eye assessment or to generate prescription for corrective eyewear -- Duties of optometrist, osteopath, or physician -- Required disclosures to patient -- Construction of statute -- Appropriate practice standards.

(1) An assessment mechanism to conduct an eye assessment or to generate a prescription for contact lenses or visual aid glasses to a patient in Kentucky shall:

(a) Provide synchronous or asynchronous interaction between the patient and the Kentucky-licensed optometrist, osteopath, or physician;

(b) Collect the patient's medical history, previous prescription for corrective eyewear, and length of time since the patient's most recent in-person comprehensive eye health examination;

(c) Provide any applicable accommodation required by the federal Americans with Disabilities Act, 42 U.S.C. secs. 12101 et seq., as amended;

(d) Gather and transmit protected health information in compliance with the federal Health Insurance Portability and Accountability Act of 1996, as amended;

(e) Be used to perform a procedure with a recognized Current Procedural Terminology code maintained by the American Medical Association, if applicable; and

(f) Maintain liability insurance, through its owner or lessee, in an amount adequate to cover claims made by individuals diagnosed or treated based on information and data, including any photographs and scans, generated by the assessment mechanism.

(2) A Kentucky-licensed optometrist, osteopath, or physician shall:

(a) Read and interpret the diagnostic information and data, including any photographs and scans, gathered by the assessment mechanism;

(b) Verify the identity of the patient requesting treatment via the assessment mechanism;

(c) Create and maintain a medical record for each patient, which is for use during the ongoing treatment of a patient, and complies with all state and federal laws regarding maintenance and accessibility;

(d) Provide a handwritten or electronic signature, along with their Kentucky state license number, certifying their diagnosis, evaluation, treatment, prescription, or consultation recommendations of the patient;

(e) Utilize an assessment mechanism for an eye assessment or to generate a prescription for visual aid glasses only if:

The patient is at least eighteen (18) years of age; and
The patient has received an in-person comprehensive eye health examination by an optometrist, osteopath, or physician within the previous twenty-four (24) months; and

(f) Utilize an assessment mechanism to generate a prescription for contact lenses only if:

The patient is at least eighteen (18) years of age; and
The patient has received an in-person comprehensive eye health examination by an optometrist, osteopath, or physician:

a. For the initial prescription and one (1) follow-up or first renewal of the initial prescription; or

b. Within twenty-four (24) months after the follow-up or first renewal of the initial prescription, and every twenty-four (24) months thereafter.

(3) Prior to using an assessment mechanism, each Kentucky patient shall be provided with and shall accept as a term of use a disclosure that includes the following information:

(a) This assessment is not a replacement for an in-person comprehensive eye health examination;

(b) This assessment cannot be used to generate an initial prescription for contact lenses or a follow-up or first renewal of the initial prescription;

(c) This assessment may only be used if the patient has had an in-person comprehensive eye health examination within the previous twenty-four (24) months if the patient is conducting an eye assessment or receiving a prescription for visual aid glasses; and

(d) The United States Centers for Disease Control and Prevention (CDC) advises contact lens wearers to visit an eye doctor one (1) time a year or more often if needed.

(4) Evaluation, treatment, and consultation recommendations by a Kentucky-licensed optometrist, osteopath, or physician utilizing an assessment mechanism as required in this section, including issuing a prescription via electronic means, shall be held to the same standards of appropriate practice as those in traditional in-person clinical settings.

(5) This section shall not:

(a) Limit the discretion of a Kentucky-licensed optometrist, osteopath, or physician to direct a patient to utilize any telehealth service deemed appropriate for any treatment and care of the patient;

(b) Limit the sharing of patient information, in whatever form, between an optometrist, osteopath, or physician; or

Effective: July 14, 2018

History: Created 2018 Ky. Acts ch. 44, sec. 8, effective July 14, 2018.

367.681 Contents of contact lens prescription -- Contents of prescription for visual aid glasses -- Refusal to release prescription prohibited.

(1) A contact lens prescription shall include the following:

(a) The ophthalmic information necessary to accurately fabricate or dispense the lenses, including the lens manufacturer, lens series, and the lens material if applicable;

(b) Power and base curve;

(c) Name, license number, telephone number, and for written orders, the signature of the prescribing optometrist, osteopath, or physician;

(d) Patient's name and address, expiration date of the prescription, and number of refills or lenses permitted; and

(e) The date of issuance.

(2) A contact lens prescription may also include the diameter, axis, add power, cylinder, peripheral curve, optical zone, and center thickness.

(3) A prescription for visual aid glasses shall include the following:

(a) The name, license number, telephone number, and for written orders, the signature of the prescribing optometrist, osteopath, or physician;

(b) The patient's name;

(d) The value of all parameters the licensed optometrist, osteopath, or physician has deemed necessary to dispense corrective lenses appropriate for a patient.

(4) A licensed optometrist, osteopath, or physician shall not refuse to release a prescription for contact lenses or visual aid glasses to a patient.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 44, sec. 2, effective July 14, 2018. -- Created 2003 Ky. Acts ch. 1, sec. 2, effective June 24, 2003.

367.682 Expiration of contact lens prescription.

Unless a health-related reason for the limitation is noted in the patient's medical records, contact lens prescriptions shall not have an expiration date of less than twelve (12) months from the date the prescription is authorized or the last date of the contact lens evaluation by a licensed optometrist, osteopath, or physician, whichever date is later. In no event shall a contact lens prescription be valid twelve (12) months after the date of authorization by a licensed optometrist, osteopath, or physician.

Effective: June 24, 2003

History: Created 2003 Ky. Acts ch. 1, sec. 3, effective June 24, 2003.

367.683 Verification of contact lens prescription.

(1) All contact lens sellers and any person authorized in accordance with KRS Chapters 320, 315, or 326 to dispense contact lenses in the Commonwealth shall verify the contact lens prescription by the following:

(a) Receipt of a written or faxed valid contact lens prescription signed by the prescribing optometrist, osteopath, or physician; or

(b) An electronic or oral affirmative communication of the complete contact lens prescription from the prescribing optometrist, osteopath, or physician.

(2) If a contact lens seller or any person authorized to dispense contact lenses in the Commonwealth finds it necessary to contact the prescribing optometrist, osteopath, or physician via telephone in order to verify a contact lens prescription, the following protocols shall be followed:

(a) Calls shall be made during regular business hours;

(b) Any verification requests shall include the name, address, and telephone number of the patient;

(c) The toll-free telephone number as required by KRS 367.687(7) shall be included in voice mail or messages left on answering machines;

(d) Contact lens prescriptions shall not be mailed, sent, delivered, or dispensed before verification by the optometrist, osteopath, or physician;

(e) Touch-tone telephone options offered by a contact lens seller or any person authorized to dispense contact lenses in the Commonwealth shall not constitute verification; and

(f) Response-time options stated by a contact lens seller or any person authorized to dispense contact lenses in the Commonwealth shall not constitute verification.

(3) In the absence of a prescription as defined and described in KRS 367.680 and 367.681, it shall be a violation of KRS 367.680 to 367.690 to dispense contact lenses through the mail or otherwise to a Kentucky resident.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 44, sec. 3, effective July 14, 2018. -- Created 2003 Ky. Acts ch. 1, sec. 4, effective June 24, 2003.

367.684 Responsibility for accurate dispensing of contact lens or visual aid glasses prescription -- Limitation of liability.

(1) Any seller or any person authorized to dispense contact lenses or visual aid glasses in the Commonwealth who fills a prescription bears the full responsibility for the accurate dispensing of the contact lenses or visual aid glasses provided under the prescription. At no time shall any changes or substitutions be made, including brand, type of lenses, or ophthalmic parameters, without the direction of the optometrist, osteopath, or physician who issued the contact lens or visual aid glasses prescription.

(2) The optometrist, osteopath, or physician shall not be liable for any damages for injury resulting from the packaging, manufacturing, or dispensing of the contact lenses or visual aid glasses unless the seller and the prescriber are the same person.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 44, sec. 4, effective July 14, 2018. -- Created 2003 Ky. Acts ch. 1, sec. 5, effective June 24, 2003.

367.685 Prerequisites for writing contact lens prescriptions.

A contact lens fitting shall be complete and a contact lens prescription may be written when:

(1) The optometrist, osteopath, or physician has completed all measurements, tests, and examinations necessary to satisfy his or her professional judgment that the patient is a viable candidate to wear contact lenses, recognizing that more than one (1) visit between the patient and the optometrist, osteopath, or physician may be required; and

(2) Contact lenses suitable for the patient's eyes have been evaluated and fitted by the optometrist, osteopath, or physician to the patient's eyes and the optometrist, osteopath, or physician is satisfied with the fitting based on ocular health and the visual needs of the patient. The patient shall be entitled to receive a copy of the contact lens prescription until its expiration date.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 44, sec. 5, effective July 14, 2018. -- Created 2003 Ky. Acts ch. 1, sec. 6, effective June 24, 2003.

367.686 Restrictions on sale or delivery of contact lenses or visual aid glasses to Kentucky residents by nonresidents.

No person located outside of Kentucky shall ship, mail, deliver, or sell contact lenses or visual aid glasses to a patient at a Kentucky address unless:

(1) Registered with the Attorney General of the Commonwealth of Kentucky; and

(2) In possession of a valid contact lens or visual aid glasses prescription as defined and described in KRS 367.680 and 367.681.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 44, sec. 6, effective July 14, 2018. -- Created 2003 Ky. Acts ch. 1, sec. 7, effective June 24, 2003.

367.687 Registration of nonresident contact lens sellers with Attorney General.

The Attorney General shall require and provide for the annual registration of all contact lens sellers located outside of the Commonwealth that dispense contact lenses to Kentucky residents, including those providing contact lenses via the Internet. A contact lens seller's registration shall be granted upon the disclosure and certification by the seller of all of the following:

(1) The seller is licensed or registered to distribute contact lenses in the state in which the dispensing facility is located and from which the contact lenses are dispensed;

(2) The location, names, and titles of all owners, partners, corporate officers, and the person who is responsible for overseeing the dispensing of contact lenses to residents of this state;

(3) The seller has complied with and shall continue to comply with all lawful directives and appropriate requests for information from the appropriate agency of each state in which the seller is licensed or registered;

(4) The seller shall respond to all requests for information from the Attorney General within thirty (30) days from receipt of the request;

(5) The seller shall maintain records of contact lenses dispensed to residents of this state for a period of ten (10) years, and that the records shall be readily available for inspection by the Attorney General upon demand;

(6) The seller shall provide a toll-free telephone service during its regular hours of operation for the sole purpose of responding to the patients in this state concerning questions and complaints. All questions relating to eye care shall be referred to the doctor prescribing the contact lenses;

(7) The seller shall provide a toll-free telephone service during its regular hours of operation solely for optometrists, osteopaths, and physicians.

(8) The seller shall provide the following or a substantially equivalent written notification to the patient whenever contact lenses are supplied: WARNING: IF YOU ARE HAVING ANY OF THE FOLLOWING SYMPTOMS REMOVE YOUR CONTACT LENSES IMMEDIATELY AND CONSULT YOUR EYE CARE PRACTITIONER BEFORE WEARING YOUR LENSES AGAIN: UNEXPLAINED EYE DISCOMFORT, WATERING, VISION CHANGE, OR REDNESS; and

(9) The seller's license or registration, in the state in which the seller is licensed or registered, has not been suspended or revoked, but should the seller be the subject of any investigation undertaken by the licensing or registering state, or should the seller's license or registration be suspended or revoked, then the seller shall immediately notify the Attorney General of such actions.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 44, sec. 7, effective July 14, 2018. -- Created 2003 Ky. Acts ch. 1, sec. 8, effective June 24, 2003.

367.688 Investigation and registration of nonresident dispensers of contact lenses and visual aid glasses by Attorney General -- Fee.

The Attorney General shall charge a fee for investigation and registration of nonresident dispensers of contact lenses and visual aid glasses.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 44, sec. 9, effective July 14, 2018. -- Created 2003 Ky. Acts ch. 1, sec. 9, effective June 24, 2003.

367.689 Administrative regulations to be promulgated by Attorney General.

The Attorney General shall have the authority to promulgate administrative regulations to carry out the provisions of KRS 367.680 to 367.690.

Effective: June 24, 2003

History: Created 2003 Ky. Acts ch. 1, sec. 10, effective June 24, 2003.

367.690 Penalties -- Hearing -- Appeals.

(1) Any person who dispenses, offers to dispense, or attempts to dispense contact lenses or visual aid glasses in violation of KRS 367.680 to 367.690 or the administrative regulations promulgated by the Attorney General concerning the dispensing of contact lenses or visual aid glasses shall, in addition to any other penalty provided by law, pay a civil penalty to the office of the Attorney General in an amount not to exceed eleven thousand dollars ($11,000) for each violation.

(2) Any person charged in a complaint filed by the Attorney General with violating any of the provisions of KRS 367.680 to 367.690 shall be entitled to an administrative hearing conducted in accordance with KRS Chapter 13B.

(3) Any person aggrieved by a final order issued under the authority of this section shall have the right of an appeal by filing a petition with the Franklin Circuit Court in accordance with KRS Chapter 13B.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 44, sec. 10, effective July 14, 2018. -- Created 2003 Ky. Acts ch. 1, sec. 11, effective June 24, 2003.

Vehicle Financial Protection Products Vehicle Financial Protection Products

367.701 Purpose of KRS 367.701 to 367.709. (Effective January 1, 2027)

The purpose of KRS 367.701 to 367.709 is to provide a framework within which vehicle financial protection products:

(1) Are defined; and

(2) May be offered within this state.

Effective: January 1, 2027

History: Created 2026 Ky. Acts ch. 16, sec. 1, effective January 1, 2027.

Legislative Research Commission Note (1/1/2027). 2026 Ky. Acts ch. 16, sec. 24, provides that this statute shall apply to vehicle financial protection products that become effective on or after January 1, 2027.

367.702 Definitions for KRS 367.701 to 367.709. (Effective January 1, 2027)

As used in KRS 367.701 to 367.709:

(1) "Borrower" means a debtor, or retail purchaser or lessee, under a finance agreement;

(2) "Commercial" means a transaction under which a vehicle will be used primarily for business purposes;

(3) "Consumer":

(a) Means:

An individual purchaser or lessee of a vehicle; or
A borrower; and

(b) Includes a contract holder;

(4) "Contract holder" means a person who is the purchaser or holder of a vehicle value protection agreement;

(5) "Creditor" means any of the following:

(a) The lender in a loan transaction;

(b) The lessor in a lease transaction;

(d) The assignee of any person referenced in paragraph (a), (b), or (c) of this subsection to whom a credit obligation is payable;

(6) "Debt waiver" means any:

(a) Guaranteed asset protection waiver; and

(b) Excess wear and use waiver;

(7) "Excess wear and use waiver" means a contractual agreement, as part of or as a separate addendum to a lease agreement, in which a creditor agrees, with or without a separate charge, to cancel or waive all or parts of amounts that may become due under a borrower's lease agreement as a result of excessive wear and use of a vehicle, including an agreement to cancel or waive amounts due for excessive mileage;

(8) "Finance agreement" means any of the following:

(a) A loan, retail installment sales contract, or lease for the purchase, refinancing, or lease of a vehicle; and

(b) A loan with a term of at least twelve (12) months that is secured by a vehicle;

(9) "Free look period" means a period of time from the effective date of a vehicle financial protection product until the date the vehicle financial protection product may be canceled without penalty, fees, or costs;

(10) "Guaranteed asset protection waiver":

(a) Means a contractual agreement wherein a creditor agrees, with or without a separate charge, to cancel or waive all or part of amounts due under a borrower's finance agreement in the event of a total physical damage loss or unrecovered theft of the vehicle; and

(b) May provide, with or without a separate charge, a benefit that waives an amount, or provides a borrower with a credit, toward the purchase of a replacement vehicle;

(11) "Insurer" means:

(a) An insurance company licensed, registered, or otherwise authorized under the laws of this state to transact insurance business; or

(b) A nonadmitted insurer in accordance with the requirements of Subtitle 10 of KRS Chapter 304;

(12) "Person" includes an individual, company, association, organization, partnership, business trust, corporation, and every form of legal entity;

(13) "Vehicle":

(a) Means a self-propelled or towed vehicle designed for personal or commercial use; and

(b) Includes automobiles, trucks, motorcycles, recreational vehicles, all-terrain vehicles, snowmobiles, campers, boats, personal watercraft, and related trailers;

(14) "Vehicle financial protection product" means any:

(a) Debt waiver; and

(b) Vehicle value protection agreement; and

(15) "Vehicle value protection agreement":

(a) Means a contractual agreement that, upon the occurrence of an adverse event to a contract holder's vehicle, including loss, theft, damage, obsolescence, diminished value, or depreciation, provides a benefit towards either:

The reduction of some or all of the contract holder's current finance agreement deficiency balance; or
The purchase or lease of a replacement vehicle or vehicle services;

(b) Includes trade-in credit agreements, diminished value agreements, depreciation benefit agreements, vehicle cash down payment agreements, and other similarly named agreements; and

A debt waiver;
A service contract as defined in KRS 304.5-070; or
Insurance or an insurance contract regulated under KRS Chapter 304.

Effective: January 1, 2027

History: Created 2026 Ky. Acts ch. 16, sec. 2, effective January 1, 2027.

367.704 Compliance with KRS 367.701 to 367.709 -- Applicability. (Effective January 1, 2027)

(1) (a) Except as provided in paragraph (b) of this subsection, a vehicle financial protection product offered, sold, or given to a consumer in this state shall comply with KRS 367.701 to 367.709.

(b) Paragraph (a) of this subsection shall not apply to any debt waiver offered by a state or federal bank or credit union in compliance with applicable state and federal law.

(2) Notwithstanding any other law to the contrary, vehicle financial protection products issued before, on, or after January 1, 2027, shall not be considered insurance.

(3) KRS 367.701 to 367.709 shall not apply to any vehicle financial protection product offered prior to January 1, 2027.

Effective: January 1, 2027

History: Created 2026 Ky. Acts ch. 16, sec. 3, effective January 1, 2027.

367.705 Requirements for vehicle financial protection products. (Effective January 1, 2027)

(1) Notwithstanding any other law to the contrary, any amount charged or financed for a vehicle financial protection product:

(a) Is an authorized charge that shall be separately stated; and

(b) Shall not be considered a finance charge or interest.

(2) (a) An extension of credit, the terms of a loan, or the terms of a related vehicle sale or lease shall not be conditioned upon a consumer's payment for, or financing of, any charge for a vehicle financial protection product.

(b) A vehicle financial protection product may be discounted or given at no charge in connection with the purchase of other noncredit-related goods or services.

Effective: January 1, 2027

History: Created 2026 Ky. Acts ch. 16, sec. 4, effective January 1, 2027.

367.706 Definition of administrator -- Duties of retail seller of vehicles relating to debt waivers -- Debt waiver requirements. (Effective January 1, 2027)

(1) As used in this section, "administrator" means a person, other than an insurer or creditor, that performs administrative or operational functions relating to debt waivers.

(2) (a) 1. Except as provided in subparagraphs 2. and 3. of this paragraph, a retail seller of vehicles shall insure its debt waivers under a contractual liability policy or other insurance policy that:

a. Is issued by an insurer;

b. States an obligation by the insurer to reimburse or pay to a creditor under the debt waiver any sums the creditor is legally obligated to waive under a debt waiver;

c. Remains in effect unless canceled or terminated in compliance with applicable insurance laws of this state; and

d. Provides that the cancellation or termination of the policy shall not reduce the insurer's responsibility for any debt waivers that are:

i. Issued by a creditor prior to the date of cancellation or termination; and

ii. Insured under a policy for which a premium has been received by the insurer.

To the extent permitted under KRS Chapter 304, a cancellation or termination of a contractual liability policy or any other insurance policy required under subparagraph 1. of this paragraph may reduce the insurer's responsibility for any debt waiver if the policy is canceled or terminated due to fraud.
A retail seller of vehicles shall not be required to comply with subparagraph 1. of this paragraph for leased vehicles.

(b) A creditor that is not otherwise required to insure its debt waivers under paragraph (a) of this subsection may insure its debt waivers under a contractual liability or other insurance policy that:

Is issued by an insurer; and
Complies with this subsection.

Obtained directly by the retail seller or other creditor; or
Procured by an administrator.

(3) (a) A debt waiver shall remain a part of a finance agreement upon the assignment, sale, or transfer of the finance agreement by the creditor.

(b) For a debt waiver that is insured under a contractual liability policy or other insurance policy, a creditor shall:

Report the sale of any finance agreement that includes the debt waiver to the insurer; and
If applicable, forward any funds due to the assignee, buyer, or transferee of the finance agreement.

(c) Funds that are received by a creditor or administrator and that belong to an assignee, buyer, or transferee of a finance agreement shall be held by the creditor or administrator in a fiduciary capacity.

(4) A debt waiver, other than a debt waiver offered in connection with a commercial transaction, shall disclose the following, in writing and in clear and understandable language that is easy to read:

(a) That the following shall not be conditioned on the borrower's purchase of a debt waiver:

The extension of credit;
The terms of the loan; or
The terms of any related vehicle sale or lease;

(b) The name and address of:

The initial creditor and the borrower of the finance agreement; and
The administrator, if applicable;

The purchase price of the debt waiver, if any;
The requirements for protection, conditions, and exclusions; and
The procedure the borrower must follow, if any, to obtain benefits under the debt waiver, including, if applicable, a telephone number or website and address where the borrower may apply for the benefits;

(d) That the borrower:

May cancel the debt waiver within a free look period of not less than thirty (30) days, as specified in the debt waiver; and
Will be entitled to a full refund of the purchase price paid by the borrower, if any, if:

a. The borrower cancels the debt waiver during the free look period; and

b. A benefit has not been provided;

(e) Whether the debt waiver is cancellable after the free look period and the conditions under which it may be canceled, if applicable, including the procedures for requesting any refund of amounts paid;

(f) If the debt waiver is cancellable after the free look period, the borrower may be entitled to a refund of the unearned portion of the purchase price of the debt waiver, if any, less an administrative fee of not more than seventy-five dollars ($75), if a benefit has not been, and will not be, provided;

(g) If the borrower seeks a refund under paragraph (f) of this subsection, the borrower shall, in accordance with the terms and conditions of the debt waiver, provide a written request to cancel to the creditor or administrator, except if the borrower seeks a refund due to the early termination of the finance agreement, the borrower shall provide the written request to cancel within ninety (90) days of the occurrence of the event terminating the finance agreement;

(h) The methodology for calculating any refund under paragraph (f) of this subsection, if any; and

(i) If the cancellation of a debt waiver is due to a default under the finance agreement, the repossession of the vehicle associated with the finance agreement, or any other early termination of the finance agreement, any refund due may be paid directly to the creditor or administrator and applied as a reduction of the amount owed under the finance agreement, unless the borrower can show that the finance agreement has been paid in full.

Effective: January 1, 2027

History: Created 2026 Ky. Acts ch. 16, sec. 5, effective January 1, 2027.

367.708 Definitions for section -- Administrator may be utilized for compliance with KRS 367.701 to 367.709 -- Duties of provider as to vehicle value protection agreements -- Vehicle value protection agreement requirements. (Effective January 1, 2027)

(1) As used in this section:

(a) "Administrator" means a person, other than a provider, that performs administrative or operational functions relating to vehicle value protection agreements, including the adjudication of claims or benefits requested by contract holders;

(b) "Provider" means a person that is obligated to provide a benefit under a vehicle value protection agreement; and

(2) A provider may, but shall not be required to, utilize an administrator to be responsible for any and all of the administration of a vehicle value protection agreement in compliance with KRS 367.701 to 367.709.

(3) A vehicle value protection agreement shall not be sold unless the contract holder has been, or will be, provided access to a copy of the vehicle value protection agreement.

(4) In order to ensure faithful performance under a vehicle value protection agreement, each provider shall comply with at least one (1) of the following paragraphs of this subsection:

(a) A provider shall insure all of its vehicle value protection agreements under an insurance policy that:

Pays or reimburses if the provider fails to perform it obligations under any vehicle value protection agreement; and
Is issued by an insurer;

(b) 1. A provider shall:

a. Maintain a funded reserve account for its obligations under all of its vehicle value protection agreements issued and outstanding in this state, which shall:

i. Contain not less than forty percent (40%) of the gross consideration received, less claims paid, on the sale of all in- force vehicle value protection agreements; and

ii. Be subject to examination and review by the Attorney General; and

b. Place a financial security deposit, in the form required by subparagraph 2. of this paragraph, in trust with the Attorney General that has a value of not less than the greater of the following:

i. Five percent (5%) of the gross consideration received, less claims paid, on the sale of all in-force vehicle value protection agreements; or

ii. Twenty-five thousand dollars ($25,000).

The financial security deposit required under subparagraph 1.b. of this paragraph shall be in the form of one (1) of the following:

a. A surety bond issued by an authorized surety;

b. Securities of the type eligible for deposit by authorized insurers in this state;

c. Cash; or

d. A letter of credit issued by a qualified financial institution; or

a. Maintain, or together with its parent company maintain, a net worth of stockholder's equity of at least one hundred million dollars ($100,000,000); and

b. Upon request, provide the Attorney General with a copy of the provider's or its parent company's:

i. Except as provided in subpart ii. of this subdivision, most recent Form 10-K or Form 20-F filed with the SEC within the last calendar year; or

ii. If the provider and its parent company does not file with the SEC, the audited financial statements of the provider or its parent company that show a net worth of the provider or its parent company of at least one hundred million dollars ($100,000,000).

If the Form 10-K, Form 20-F, or audited financial statements of the provider's parent company are used to satisfy the requirements of subparagraph 1. of this paragraph, the parent company shall agree to guarantee the obligations of the provider under the vehicle value protection agreements sold by the provider in this state.

(5) Except as provided in subsection (4) of this section, a provider shall not be subject to financial security requirements relating to vehicle value protection agreements.

(6) A vehicle value protection agreement, other than a vehicle value protection agreement offered in connection with a commercial transaction, shall disclose the following in writing and in clear and understandable language that is easy to read:

(a) That the following shall not be conditioned on the contract holder's purchase of an agreement:

The extension of credit;
The terms of a loan; or
The terms of any related vehicle sale or lease;

(b) The name and address of:

The provider and contract holder; and
The administrator, if applicable;

The purchase price of the agreement, if any;
The requirements for eligibility, conditions, and exclusions; and
The procedure the contract holder must follow, if any, to obtain a benefit under the agreement, including, if applicable, a telephone number or website and address where the contract holder may apply for vehicle value protection agreement benefits;

(d) That the agreement is not a contract of insurance;

(e) That the contract holder:

May cancel the agreement within a free look period of not less than thirty (30) days as specified in the agreement; and
Will be entitled to a full refund of the purchase price paid by the contract holder, if any, if:

a. The borrower cancels the agreement during the free look period; and

b. A benefit has not been provided;

(f) Whether the agreement is cancellable after the free look period and the conditions under which it may be canceled, if applicable, including the procedures for requesting any refund of amounts paid;

(g) The terms, restrictions, and conditions governing a cancellation of the agreement by the provider or the contract holder prior to the termination or expiration of the agreement, which shall include:

Except as provided in subparagraph 2. of this paragraph, the provider shall mail a written notice of the cancellation to the contract holder's last known address contained in the records of the provider at least five (5) days prior to the cancellation of an agreement by the provider;
A provider shall not be required to provide prior notice of its cancellation of an agreement if the cancellation is due to:

a. Nonpayment of a provider fee;

b. A material misrepresentation by the contract holder to the provider or administrator; or

c. A substantial breach of duties by the contract holder under the terms of the agreement;

A notice of cancellation of an agreement by a provider shall state:

a. The effective date of the cancellation; and

b. The reason for the cancellation;

If the cancellation of an agreement by a provider is not due to nonpayment of a provider fee, the provider shall provide the contract holder with a refund of one hundred percent (100%) of the unearned pro rata provider fee paid by the contract holder, if any;
If coverage under the agreement continues after a claim, any claims paid may be deducted from any refund; and
The provider may charge a reasonable administrative fee not to exceed seventy-five dollars ($75); and

(h) The methodology for calculating any refund of the unearned purchase price of the agreement, if any, that will be due in the event of a cancellation, including that any refund may be reduced by claims paid.

Effective: January 1, 2027

History: Created 2026 Ky. Acts ch. 16, sec. 6, effective January 1, 2027.

367.709 Attorney General to enforce KRS 367.701 to 367.709 -- Actions that may be taken -- Right to appeal. (Effective January 1, 2027)

(1) (a) The Attorney General may take action necessary or appropriate to enforce KRS 367.701 to 367.709.

(b) All of the remedies, powers, and duties provided to the Attorney General by KRS 367.190 to 367.300 and 367.990, pertaining to acts and practices declared unlawful by KRS 367.170, shall apply with equal force and effect to acts and practices declared unlawful under KRS 367.701 to 367.709.

(2) (a) After proper notice and opportunity for a hearing in accordance with KRS Chapter 13B, the Attorney General may take any one (1) or more of the following actions:

Order a creditor, provider, administrator, or any other person to cease and desist from conduct in violation of any provision of KRS 367.701 to 367.709; and
Impose a civil penalty of not more than five hundred dollars ($500) per violation of any provision of KRS 367.701 to 367.709, except a civil penalty shall not exceed ten thousand dollars ($10,000) in the aggregate for violations of a similar nature.

(b) For purposes of paragraph (a) of this subsection, violations are of a similar nature if the violations consist of the same or similar course of conduct, action, or practice, irrespective of the number of times the action, conduct, or practice occurred.

(3) Any person aggrieved by a final order issued by the Attorney General pursuant to this section shall have the right of an appeal in accordance with KRS Chapter 13B.

Effective: January 1, 2027

History: Created 2026 Ky. Acts ch. 16, sec. 7, effective January 1, 2027.

Mobile Home Sales Mobile Home Sales

367.710 Definitions.

(1) "Owner" means the original purchaser of a mobile home for use as a residence.

(2) "Dealer" means any person or business enterprise which sells new mobile homes to consumers.

(3) "Manufacturer" means any person or business enterprise engaged in the business of manufacturing, assembling or distributing on behalf of a manufacturer new mobile homes.

(4) "Wholesaler" means any person other than a manufacturer who sells new mobile homes for the purpose of resale.

(5) "Mobile home" means a structure, transportable in one (1) or more sections, which is eight (8) body feet or more in width and is thirty-two (32) body feet or more in length, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein.

(6) "Purchase price" means the actual amount paid by the owner, including the value of any traded merchandise involved in the transaction, and any sales or usage tax.

(7) "Defect" is a defective part or material installed, or improper workmanship performed, by a manufacturer, wholesaler, or dealer which poses an imminent danger to the owner's or occupant's health or safety or to the right of occupancy and which would cost the owner more than four percent (4%) of the purchase price to repair or replace.

History: Created 1976 Ky. Acts ch. 136, sec. 10.

367.715 Presumption of nonmerchantability.

Any mobile home that, within the first twelve (12) months after delivery to the owner has a defect which cost the owner at least four percent (4%) of the purchase price to repair and which requires repair or replacement on three (3) separate occasions, shall be presumed to be nonmerchantable.

History: Created 1976 Ky. Acts ch. 136, sec. 11.

367.720 Rebuttal of presumption of nonmerchantability.

The presumption of nonmerchantability of a mobile home as provided in KRS 367.715 may be rebutted by evidence that the defect was caused by the owner or occupant or other third party, by an accident or by some act or condition beyond the control of the manufacturer, wholesaler or dealer.

History: Created 1976 Ky. Acts ch. 136, sec. 12.

367.725 Notice by owner of nonmerchantability.

The owner shall give the manufacturer notice by certified mail, return receipt requested, with a copy to the dealer from whom the mobile home was purchased, within ten (10) days following establishment of the conditions recited in KRS 367.715 containing an accurate description of the condition or conditions which render the mobile home nonmerchantable and the owner's name and address and his election to exercise the rights provided by KRS 367.745.

History: Created 1976 Ky. Acts ch. 136, sec. 13.

367.730 Examination by manufacturer, dealer or wholesaler and notification to owner of result.

Within ten (10) days after the receipt of a notice given under KRS 367.725, the manufacturer or its representatives shall examine the mobile home at the home site of the owner and within ten (10) days after such examination shall notify the owner in writing that they either: (1) find no defect, (2) find a defect but believe that it is due to abuse by the owner, an act beyond their control or the action of a third party, (3) find a defect but can and will promptly put the mobile home in a merchantable condition and will agree to a four (4) month extension of the owner's rights with respect to such defect under the provisions of KRS 367.710 to 367.775, or (4) accept the owner's determination that it is nonmerchantable.

History: Created 1976 Ky. Acts ch. 136, sec. 14.

367.735 Owner to make mobile home available for repair.

If the manufacturer notifies the owner that the mobile home can be put in a merchantable condition pursuant to KRS 367.730, the owner must make the mobile home available for repair at his home site within three (3) days after such notification so that repairs can be made and the defect removed before any rights vest under the provisions of KRS 367.710 to 367.775.

History: Created 1976 Ky. Acts ch. 136, sec. 15.

367.740 Equivalent accommodation or compensation to be supplied to owner during repair.

If the owner or occupants must be removed from the mobile home during repair, the manufacturer shall provide those who are moved with equivalent accommodation or accommodations acceptable to the owner, or pay the owner a reasonable per diem rate of compensation for those moved from the mobile home.

History: Created 1976 Ky. Acts ch. 136, sec. 16.

367.745 Return of purchase price or supplying of new mobile home in lieu of repairs.

If the defect is not corrected pursuant to KRS 367.735 the manufacturer shall, at its option, return the price paid by the seller less any diminution in value due to abuse by the owner, or the action of a third party or shall supply a new mobile home of the same model and year at the owner's home site which shall be warranted as though originally purchased.

History: Created 1976 Ky. Acts ch. 136, sec. 17.

367.750 Action to recover purchase price.

In any case in which an owner timely notifies the manufacturer of the nonmerchantability of the mobile home under KRS 367.715, and the manufacturer refuses to replace the mobile home under KRS 367.745, the owner may bring an action to recover the price paid by him less any diminution in value due to abuse by the owner, or the action of a third party, and shall be entitled to his reasonable attorney fees if he prevails in the action.

History: Created 1976 Ky. Acts ch. 136, sec. 18.

367.755 Warranties not excluded -- Procedure to justify price increase.

(1) No manufacturer shall exclude any warranty issued elsewhere in the sale of its mobile homes in Kentucky in retaliation for the provisions of KRS 367.710 to 367.775.

(2) No manufacturer shall increase the price of its mobile homes in Kentucky by more than the amount necessary to meet the costs actually incurred by compliance with KRS 367.710 to 367.775, provided, however, that the manufacturer shall be required to furnish the Attorney General's office with verified actuarial data supporting any such increase at least sixty (60) days before it is put into effect.

History: Created 1976 Ky. Acts ch. 136, sec. 19.

367.760 Description of defect repaired on new mobile home.

Any dealer, manufacturer or wholesaler making a repair on a new mobile home prior to the delivery to the owner must state in writing to the owner at the time of the delivery the nature of any defect repaired by such dealer, manufacturer, or wholesaler. The statement must contain a complete description of cause of the damage which was repaired as well as the nature of the repairs made, so that a determination can be made as to whether the owner may have any rights provided by KRS 367.710 to 367.775.

History: Created 1976 Ky. Acts ch. 136, sec. 20.

367.765 Information to be furnished purchaser by seller.

Each owner who purchases a new mobile home shall be furnished by the dealer selling the mobile home the address of the dealer, manufacturer and wholesaler, if any. In addition, the name and address of the dealer, manufacturer, and the wholesaler shall be affixed to the mobile home in a conspicuous place and shown to the owner by the dealer.

History: Created 1976 Ky. Acts ch. 136, sec. 21.

367.770 Warranties.

For the purpose of KRS 367.710 to 367.775, a manufacturer or wholesaler's warranty whether express and/or implied or created by the provisions of KRS 367.710 to 367.775 extends to any person who purchases the mobile home new.

History: Created 1976 Ky. Acts ch. 136, sec. 23.

367.775 Rights and remedies.

The rights and remedies given owners of mobile homes under the provisions of KRS 367.710 to 367.775 shall be in addition to rights presently existing under the law.

History: Created 1976 Ky. Acts ch. 136, sec. 24.

Sale of Business Opportunities Sale of Business Opportunities

367.801 Definitions for KRS 367.801 to 367.819 and 367.990.

As used in KRS 367.801 to 367.819 and KRS 367.990, unless the context requires otherwise:

(1) "Office" means the Office of Consumer Protection in the Office of the Attorney General.

(2) "Person" means natural persons, corporations, trusts, partnerships, incorporated or unincorporated associations, or any other legal entity.

(3) "Offeror" means a person who is engaged in the business of selling business opportunities including any subsidiary business which affiliates with the offeror for goods or services or locations.

(4) "Consumer/investor" means a person who has purchased or is solicited for the purchase of a business opportunity.

(5) "Business opportunity" means the sale or lease, or offer to sell or lease, of any products, equipment, supplies, or services for the purpose of enabling the consumer investor to start a business when:

(a) The offeror obtains an initial required consideration of not less than five hundred dollars ($500) from the purchase or lease of the business opportunity or inventory associated therewith; and

(b) The offeror has represented, directly or indirectly, that the consumer/investor will earn, can earn, or is likely to earn a gross or net profit in excess of the initial required investment paid by the consumer/investor for the business opportunity; or

(c) 1. The offeror has represented that he has knowledge of the relevant market and that the market demand will enable the consumer/investor to earn a profit from the business opportunity; or

The offeror has represented that locations will be provided or assistance will be given directly or indirectly to the consumer/investor in finding locations for the use or operation of the business opportunity including, but not limited to, supplying the consumer/investor with names of locator companies, contracting with the consumer/investor to provide assistance with or supply names of or collect a fee on behalf of or for a locator company; or
The offeror has represented that there is a guaranteed market or that the offeror will buy back or is likely to buy back any product made, manufactured, produced, fabricated, grown, or bred by the consumer/investor using, in whole or in part, the products, supplies, equipment, or services which were initially sold or offered for sale to the consumer/investor by the offeror.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 18, effective April 5, 2024. -- Amended 1994 Ky. Acts ch. 165, sec. 25; and ch. 329, sec. 1, effective July 15, 1994. -- Created 1978 Ky. Acts ch. 315, sec. 1, effective June 17, 1978.

Legislative Research Commission Note (7/15/94). This section was amended by 1994 Ky. Acts chs. 165 and 329 which are in conflict. Under KRS 446.250, Acts ch. 329, which was last enacted by the General Assembly, prevails.

367.803 Repealed, 1994.

[Repealed]

367.805 Registration of persons engaged in sale of business opportunities -- Administrative regulations.

(1) It is unlawful for any person to engage in the sale of business opportunities unless prior to the offering the offeror has registered with the office and has furnished a bond pursuant to KRS 367.815(2) and provided all of the following:

(a) All trade names, assumed names, and all trademarks by which the offeror or the prospective consumer/investor of the business opportunity will be doing business.

(b) The names, home addresses, and home telephone numbers of the persons and company offering the business opportunity, and the company's directors and chief executive officers, and the names, home addresses, and home telephone numbers of all representatives selling business opportunities in Kentucky.

(c) A statement as to the length of time the person and company offering the business opportunity has conducted a business of the type being offered both within and without Kentucky.

(d) A statement as to whether the person or company offering the business opportunity or any of its directors or chief executive officers or sales representatives operating in Kentucky is currently involved in litigation or has been held liable in a civil action by final judgment for having engaged in unfair, false, misleading, or deceptive practices or is currently charged with or has been convicted of or pleaded nolo contendere to a felony involving fraud, embezzlement, fraudulent conversion, or misappropriation of property during the most recent seven (7) year period, or has entered into any agreed settlements or is currently in any bankruptcy proceeding or has been declared bankrupt in any judicial proceeding during the most recent seven (7) year period.

(e) A statement as to whether the person or the company offering the business opportunity or its officers, directors, or agents making the offering of the business opportunity has been a party to any legal cause of action brought by a consumer/investor of the business opportunity within the last seven (7) year period and, if so, the name and address of such individual who has brought the legal action.

(f) A statement disclosing the names, addresses, and telephone numbers of all persons who have been sold a business opportunity by the offeror within the last two (2) year period.

(g) A statement listing the names and addresses of any consumer/investor who has requested within the preceding three (3) years that the offeror return his money.

(h) A current audited financial statement of the offeror.

(i) A specimen of each contract proposed for use in connection with the business opportunity.

(j) A full and detailed description of the actual services that the offeror of the business opportunity undertakes to perform for the consumer/investor.

(k) If training is promised by the offeror, a complete description of the training, including length of the training and costs.

(2) The offeror shall immediately notify the office of any material change in information contained in the application for registration and shall make appropriate amendment of the disclosure statement.

(3) The division shall collect, from any offeror required to comply with this section, an initial fee of one hundred fifty dollars ($150), and an annual renewal fee of fifty dollars ($50), and an update fee of twenty-five dollars ($25) for the administration and enforcement of KRS 367.801 to 367.819. Funds so collected shall be credited to a trust or agency account for the administrative purpose of the Attorney General's Office of Consumer Protection.

(4) The Attorney General may promulgate administrative regulations as needed to provide for: a hearing, to be conducted in accordance with KRS Chapter 13B, for any business opportunity which the Attorney General initially determines should not be registered or should have registration revoked or suspended; for the establishment of specific standards for the form and content of the disclosure document; and for registration procedures including fee schedules.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 19, effective April 5, 2024. -- Amended 1996 Ky. Acts ch. 318, sec. 350, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 165, sec. 26, effective July 15, 1994; and ch. 329, sec. 2, effective July 15, 1994. -- Created 1978 Ky. Acts ch. 315, sec. 3, effective June 17, 1978. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 18, (4) at 2057.

367.807 Exemptions from registration --Administrative regulations.

(1) An offeror is exempt from the provisions of KRS 367.801 to 367.819 and KRS 367.990 when the offeror:

(a) Meets the definition of a franchise as defined in the Federal Trade Commission's Regulation on Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures, as set forth in 16 C.F.R. 436 et seq., and has complied with these and filed written notice so stating with the office; or

(b) Offers a security pursuant to KRS 292.313;

(d) Offers a not-for-profit sale of sales demonstration equipment, materials, or samples for use in making sales and not for resale for a total price of $500 or less.

(2) The Attorney General may promulgate administrative regulations as needed to provide for additional exemptions.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 20, effective April 5, 2024. -- Amended 1994 Ky. Acts ch. 329, sec. 3, effective July 15, 1994. -- Created 1978 Ky. Acts ch. 315, sec. 4, effective June 17, 1978.

Legislative Research Commission Note (7/15/94). It appears from 1994 Ky. Acts ch. 329, sec. 3 that the phrase "Is offering to sell or selling a package franchise as described in KRS 367.801(7)." was intended to be removed from subsection (2) of this statute. Because this text was not bracketed and stricken through, however, it has not been deleted. See KRS 446.145(1) and 446.280.

367.809 Registration number -- Inclusion in advertising.

(1) The office, after ascertaining that the applicant has complied with KRS 367.805, shall issue a registration number.

(2) It shall be unlawful for the registrant to fail to include the registration number in any advertising.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 21, effective April 5, 2024. -- Amended 1994 Ky. Acts ch. 165, sec. 27, effective July 15, 1994. -- Created 1978 Ky. Acts ch. 315, sec. 5, effective June 17, 1978.

Legislative Research Commission Note (7/15/94). 1994 Ky. Acts chs. 165 and 329 are in conflict in where responsibility for regulation of sale of business opportunities is placed, and ch. 329 has prevailed as the last enactment under KRS 446.250. Because of this, a change from "division" to "department" in this statute under ch. 165 has not been codified. See KRS 7.136(2).

367.811 Representation regarding potential sale, income, or profit.

It shall be unlawful for any offeror to make any oral or written representation, actual or hypothetical, regarding the business opportunity's potential sales, income, gross or net profit unless such sales, income, or profits are examples based upon the actual earnings made by existing consumer/investors of the business opportunity. Upon request by the office, names and addresses of the consumer/investors shall be made available for verification of the earnings claims. If such actual or hypothetical earnings examples are in excess of the average net earnings realized by all of the consumer/investors of the business opportunity, then there must be a full and complete disclosure of the average net earnings actually realized by all of these consumer/investors.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 22, effective April 5, 2024. -- Amended 1994 Ky. Acts ch. 329, sec. 4, effective July 15, 1994. -- Created 1978 Ky. Acts ch. 315, sec. 6, effective June 17, 1978.

367.813 Display of registration.

(1) Prior to the solicitation of potential consumer/investors the offeror shall furnish and display to the potential consumer/investor a copy of the material required to be furnished the office when registering pursuant to KRS 367.805.

(2) When furnishing the information required by subsection (1) of this section, the offeror shall furnish the prospective consumer/investor with a notice in at least ten

(10) point bold-face type, stating that registration with the office does not directly or indirectly imply approval by the office or the Commonwealth of Kentucky of the business opportunity or any of the activities of representatives selling such business opportunities.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 23, effective April 5, 2024. -- Amended 1994 Ky. Acts ch. 165, sec. 28, effective July 15, 1994. -- Created 1978 Ky. Acts ch. 315, sec. 7, effective June 17, 1978.

367.815 Liability for false, misleading, or deceptive representations -- Bond or deposit to insure veracity of statements -- Maintenance of records.

(1) Any person who offers a business opportunity and makes representations that are false, misleading, or deceptive shall be liable to the consumer/investor of such business opportunity in an amount equal to the sum of his actual damages or fifteen hundred dollars ($1,500), whichever is greater, as well as the cost of the action together with reasonable attorney's fees, as determined by the court.

(2) (a) All persons registering pursuant to KRS 367.805 shall either furnish a bond by a surety company authorized to do business in the Commonwealth or establish a full cash certificate of deposit with a licensed and insured bank or savings institution located in the Commonwealth to insure the veracity of all statements contained in the registration. The amount of the bond or certificate of deposit shall be in an amount equal to the total amount of the initial payments under all business opportunity agreements the offeror has entered into in the Commonwealth during the previous year but in no case shall the amount be less than seventy-five thousand dollars ($75,000). The bond or certificate of deposit shall be in the favor of the Attorney General of Kentucky.

(b) Any person who is damaged by any violation of KRS 367.801 to 367.819, or by the offeror's breach of contract for the business opportunity sale, or of any obligation arising therefrom may bring an action against the bond or certificate of deposit to recover damages suffered, provided that the aggregate liability of the surety or trustee shall be only for the actual damages and shall not exceed the amount of the bond or trust account.

(3) A person who has furnished a bond described in subsection (2) of this section may petition the office for release of the bond by submitting a verified statement that such person has not offered business opportunities in the state for the last five (5) years.

(4) Any offeror of a business opportunity who has offered or sold in this state shall maintain a complete set of books, records, and accounts of its business opportunity sales. The sale documents shall be maintained on each transaction for a period of four (4) years after the date of agreement. The offeror shall make the books and records available to the office upon demand at a location within the state.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 24, effective April 5, 2024. -- Amended 1994 Ky. Acts ch. 165, sec. 29, effective July 15, 1994; and ch. 329, sec. 5, effective July 15, 1994. -- Created 1978 Ky. Acts ch. 315, sec. 8, effective June 17, 1978.

367.816 Agreement or arrangement for a business opportunity -- Requirements -- Effect of noncompliance -- Nonwaiverability.

(1) Every agreement or arrangement for a business opportunity shall be in writing. Copies of the completed agreement and all other documents the offeror requires the consumer/investor to sign shall be given to the consumer/investor at the time they are signed.

(2) Each business opportunity agreement shall set forth in easily legible form all of the following:

(a) The terms and conditions of all payments including the amount owed and a complete schedule for total payment;

(b) A detailed description of the acts or services the offeror or its affiliate undertake to perform for the consumer/investor;

(c) The offeror's name, telephone number, principal business address, by street and number, and the name and address of its agent in this state authorized to receive service of process;

(d) Whether the offeror is doing business as a corporation, partnership, or otherwise, and the state of its incorporation or organization;

(e) The estimated delivery dates of each installment and whether the items are to be delivered to the consumer/investor or are to be placed by the offeror at locations owned or managed by persons other than the consumer/investor;

(f) If applicable, the terms of the "buy-back" or "security" obligation of the offeror pursuant to KRS 367.801(5)(c)3.

(g) The name and address of each supplier of the items the offeror is to deliver to the consumer/investor; and

(h) The following statement in the form below in no smaller than ten (10) point boldface print: STATEMENT OF CONSUMER INVESTOR RIGHTS

You have thirty (30) business days in which you may cancel this contract for any reason.
To cancel, you must mail or deliver a written notice to (Seller's name and street address) before (last date to mail or deliver notice). If mailed, the notice must be postmarked by the above date. If you deliver the notice, it must be delivered by the end of the normal business day on the above date.
We must promptly refund your payments, and within five (5) business days after you receive your refund, you must allow us to pick up anything we provided to you under this contract.
If we or our affiliates mislead you by what we say, or if we violate the Kentucky Business Opportunities Law, you may cancel this contract. To cancel, you must give written notice to us within one (1) year of the date of the contract.
If you cancel under this provision, you are entitled to a prompt refund of all amounts you have paid, less the value of items we delivered that you do not return.
If we do not deliver items promised within thirty (30) days of the delivery date in your contract except for reasons beyond our control, you may cancel this contract and receive an immediate refund of amounts paid, less the value of items you do not return.

(3) The offeror shall not take a negotiable instrument as evidence of the consumer's/investor's obligation unless the instrument on its face abrogates holder in due course status for its holder.

(4) The payment schedule in the agreement shall not require payment of more than twenty percent (20%) of the initial payment before delivery to the consumer/investor of the items to be supplied by the offeror, unless sums in excess of the twenty percent (20%) are placed in escrow until the consumer/investor advises the escrow agent in writing of the delivery of the items, or until the offeror presents the escrow agent with a bill of lading that proves timely delivery of the items. The consumer/investor shall not unreasonably withhold notice of delivery.

(5) A successor or assignee of the offeror's interest or rights in the agreement is subject to all equities, rights, and defenses of the consumer/investor against the offeror.

(6) Until the offeror has complied with this section, the buyer may cancel the purchase of a business opportunity by notifying the offeror in any manner and by any means of his intention to cancel.

(7) Any waiver by the consumer/investor of a business opportunity of the rights provided in this section is null and void and will not operate to relieve the offeror of any obligation placed upon him by KRS 367.801 to 367.819.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 329, sec. 6, effective July 15, 1994.

367.817 Restraining order.

Whenever the Attorney General has reason to believe that any person is offering business opportunities for sale in violation of KRS 367.801 to 367.819 and 367.990, and that proceedings would be in the public interest, he may move in the name of the Commonwealth in a Circuit Court for a restraining order or temporary or permanent injunction to prohibit such offer. The action may be brought in the Circuit Court of the county in which such person resides or has his principal place of business or in the Circuit Court of the county in which the unlawful offer or sale has been or is about to be committed.

Effective: June 17, 1978

History: Created 1978 Ky. Acts ch. 315, sec. 9, effective June 17, 1978.

367.819 Cancellation by purchaser.

(1) The purchaser of a business opportunity has the right to cancel as set forth in this chapter as well as the right to cancel such purchase for any reason at any time prior to midnight of the thirtieth calendar day after signing a contract for purchasing the business opportunity. In addition, the purchaser may cancel such purchase at any time for the following violations:

(a) Not providing locations as represented;

(b) Failing to deliver goods or merchandising materials as represented; or

(2) Cancellation occurs when the consumer/investor gives written notice to the offeror at the address given in the purchase agreement or otherwise provided by the offeror and the notice and statement of the buyer's right to cancel provided for in subsection

(1) of this section.

(3) Notice of cancellation, if given by mail, is given when it is deposited in the mail properly addressed and postage prepaid.

(4) Notice of cancellation given by the purchasers need not take a particular form and is sufficient if it indicates by form of written expression the intention of the buyer not to be bound by any contract to purchase the business opportunity.

(5) Within fifteen (15) days after the date of notice of cancellation by the consumer/investor, the seller must tender to the consumer/investor any payments as well as shipping costs made by him and terminate all financial obligations created in connection with the purchase of the business opportunity. Within five (5) days of refund, the consumer/investor shall make available to the offeror the items delivered by the offeror.

(6) Any waiver by the consumer/investor of a business opportunity of the rights provided in this section is null and void, and will not operate to relieve the seller of any obligation placed upon him by this section.

Effective: July 15, 1994

History: Amended 1994 Ky. Acts ch. 329, sec. 7, effective July 15, 1994. -- Amended 1984 Ky. Acts ch. 111, sec. 195, effective July 13, 1984. -- Created 1978 Ky. Acts ch. 315, sec. 10, effective June 17, 1978.

Health Care Practitioners Health Care Practitioners

367.825 Definitions.

As used in KRS 367.826, unless the context requires otherwise:

(1) (a) Except as provided in subsection (b) below, "unlicensed health care practitioner" means any person who, for compensation or with expectation of compensation, offers or undertakes to provide advice, counseling, diagnosis, treatment, therapy, correction, or rehabilitation relating to any of the following:

Physical or mental health in general;
Particular ailments, diseases, injuries, infirmities, disorders or disabilities, or their prevention;
Nutrition, diet, weight control, fitness, or smoking; or
Aging, baldness, or sexual performance.

(b) A person licensed or certified by an agency or board of this state in an occupation or profession shall not be considered an unlicensed health care practitioner with regard to that occupation or profession.

(2) "Academic title" means a title or other designation indicating receipt of an academic degree, including, but not limited to, the use of "Dr." before a person's name. Any use of initials, such as "Ph.D.", after a person's name shall also be considered an academic title.

(3) An academic degree shall be considered "accredited" if, at the time of issuance, the institution, program, or specific course of study upon which the degree is based was accredited by a regional or professional accrediting agency recognized by the United States Department of Education or the Council on Postsecondary Accreditation.

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 313, sec. 1, effective July 15, 1988.

367.826 Accredited degree required.

No unlicensed health care practitioner shall utilize an academic title, or represent in any other manner that he or she possesses an academic degree, unless the practitioner actually possesses the degree, and the degree is accredited. If the degree is honorary, that fact shall be disclosed in every instance by use of the designation "Honorary" or "Hon.".

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 313, sec. 2, effective July 15, 1988.

Health Discount Plans Health Discount Plans

367.828 Health discount plan -- Penalties.

(1) As used in this section, "health discount plan" means any card, program, device, or mechanism that is not insurance that purports to offer discounts or access to discounts from a health care provider without recourse to the health discount plan.

(2) No person shall sell, market, promote, advertise, or otherwise distribute a health discount plan unless:

(a) The health discount plan clearly states in bold and prominent type on all cards or other purchasing devices, promotional materials, and advertising that the discounts are not insurance;

(b) The discounts are specifically authorized by an individual and separate contract with each health care provider listed in conjunction with the health discount plan;

(c) The discounts or the range of discounts advertised or offered by the plan are clearly and conspicuously disclosed to the consumer; and

(d) For health discount plans that purport to offer discounts or access to discounts on prescription drugs:

The plan does not utilize the same identifying information used by an insurer under a health insurance policy, certificate, plan, or contract, including but not limited to policy numbers, group numbers, or member identifications; and
The person or plan does not seek, or contract for, the payment of any refunds, recoupments, or fees from a pharmacy or pharmacist.

(3) The provisions of subsection (2) of this section do not apply to the following:

(a) A customer discount or membership card issued by a retailer for use in its own facility; or

(b) Any card, program, device, or mechanism that:

Is not insurance;
Is administered by a health insurer authorized to transact the business of insurance in this state; and
Does not purport to offer discounts or access to discounts on prescription drugs.

(4) (a) A violation of this section shall be deemed an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS 367.170.

(b) All of the remedies, powers, and duties delegated to the Attorney General by KRS 367.190 to 367.300 and penalties pertaining to acts and practices declared unlawful under KRS 367.170 shall be applied to acts and practices in violation of this section.

Effective: January 1, 2025

History: Amended 2024 Ky. Acts ch. 104, sec. 15, effective January 1, 2025. -- Created 2002 Ky. Acts ch. 105, sec. 29, effective July 15, 2002.

Pyramid Sales Pyramid Sales

367.830 Definitions.

Unless the context otherwise requires:

(1) "Participant" shall include, but is not limited to, those who give consideration in order to participate in the pyramid distribution plan;

(2) "Person" means natural persons, corporations, trusts, partnerships, incorporated or unincorporated associations, or any other legal entity;

(3) "Promotes" means inducing one (1) or more other persons to become a participant;

(4) "Pyramid distribution plan" means any plan, program, device, scheme, or other process by which a participant gives consideration for the opportunity to receive compensation or things of value in return for inducing other persons to become participants in the program;

(5) "Compensation" means payment of any money, thing of value, or financial benefit conferred in return for inducing others to become participants in the pyramid distribution plan. Compensation does not include payment based on sales of goods or services by the person or by other participants in the plan to anyone, including a participant in the plan, who is purchasing the goods or services for actual use or consumption; and

(6) "Consideration" means the payment of cash or the purchase of goods, services, or intangible property but does not include the purchase of goods or services furnished at cost to be used in making sales and not for resale, nor does it include time and effort spent in pursuit of sales or recruiting activities.

Effective: July 15, 1986 Created 1986 Ky. Acts ch. 184, sec. 1, effective July 15, 1986.

367.832 Pyramid distribution plan prohibited.

(1) It is hereby declared unlawful for any person to establish, promote, operate, or participate in any pyramid distribution plan.

(2) A limitation as to the number of persons who may participate or the presence of additional conditions affecting eligibility for the opportunity to receive compensation under the plan does not change the identity of the plan as a pyramid distribution plan nor is it a defense under this section that a participant, on giving consideration, obtains goods, services or intangible property in addition to the right to receive compensation.

Effective: July 15, 1986 Created 1986 Ky. Acts ch. 184, sec. 2, effective July 15, 1986.

367.834 Powers of Attorney General -- Powers of Commonwealth or its agencies not limited.

(1) All of the remedies and powers granted to the Attorney General by KRS 367.190 to 367.300 and 367.990 for enforcement of KRS 367.170 shall be granted to the Attorney General with equal force and effect for enforcement of KRS 367.832.

(2) Nothing in this chapter limits the power of any agency of the Commonwealth of Kentucky to enforce criminal or civil provisions of any other chapter of the Kentucky Revised Statutes or the right of any person to bring civil actions granted by any other chapter of the Kentucky Revised Statutes and based upon conduct prohibited herein and nothing in this chapter limits the power of the Commonwealth of Kentucky to punish any person for any conduct which constitutes a crime by statute or at common law.

Effective: July 15, 1986

History: Created 1986 Ky. Acts ch. 184, sec. 3, effective July 15, 1986.

367.836 Short title.

KRS 367.830 to 367.834 may be cited as the "Pyramid Sales Act."

Effective: July 15, 1986

History: Created 1986 Ky. Acts ch. 184, sec. 5, effective July 15, 1986.

Mold Remediation Standards Mold Remediation Standards

367.83801 Legislative findings for KRS 367.83801 to 367.83807.

The General Assembly hereby finds that it is necessary to the health and welfare of the citizens of Kentucky that there be maintained, now and in the future, reasonable standards for the remediation of mold in private and public settings. It is therefore in the best interests of the citizens of the Commonwealth of Kentucky to establish standards for providers of mold remediation services in Kentucky.

Effective: July 15, 2010

History: Created 2010 Ky. Acts ch. 89, sec. 1, effective July 15, 2010.

367.83803 Definitions for KRS 367.83801 to 367.83807.

As used in KRS 367.83801 to 367.83807:

(1) "Customer" means any person who contracts for services with a mold remediation company for the purposes of mold remediation;

(2) "Department" means the Department of Law;

(3) "Mold" means any living or dead fungi or related products or parts, including spores, hyphae, and mycotoxins;

(4) "Mold remediation" means the removal, cleaning, sanitizing, demolition, or other treatment, including preventative activities, of mold or mold-contaminated matter, live or dead, that was not intended to be grown, or purposely grown, at that location; and

(5) "Mold remediation company" means an entity that performs mold remediation for compensation.

Effective: July 15, 2010

History: Created 2010 Ky. Acts ch. 89, sec. 2, effective July 15, 2010.

367.83805 Department of Law to establish minimum standards for mold remediation companies -- Complaints to Attorney General.

(1) The department shall, after consultation with the Public Protection Cabinet and the Department for Public Health, establish minimum standards for mold remediation companies that operate in the Commonwealth. The minimum standards shall be based on the five (5) general principles of mold remediation created by the Institute of Inspection, Cleaning and Restoration Certification (IICRC) in its publication, IICRC S520, Second Edition, Standard and Reference Guide for Professional Mold Remediation, or its successor publication. The five (5) general principles of mold remediation are as follows:

(a) Safety and health;

(b) Project documentation;

(d) Contaminant removal; and

(e) Contamination prevention. All mold remediation companies operating in the Commonwealth shall adhere to the minimum standards established by the department.

(2) Any customer complaints regarding adherence by mold remediation companies to the administrative regulations promulgated under this section shall be directed to the Attorney General.

Effective: July 15, 2010

History: Created 2010 Ky. Acts ch. 89, sec. 3, effective July 15, 2010.

Legislative Research Commission Note (7/15/2010). A reference to the "Environmental and Public Protection Cabinet" in subsection (1) of this section, as created by 2010 Ky. Acts ch. 89, sec. 3, has been changed in codification to the "Public Protection Cabinet" to reflect the reorganization of certain parts of the Executive Branch, as set forth in Executive Order 2009-535 and confirmed by the General Assembly in 2010 Ky. Acts ch. 24. This change was made by the Reviser of Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938.

367.83807 Attorney General's jurisdiction to enforce KRS 367.83801 to 367.83807.

(1) The Attorney General shall have jurisdiction to enforce KRS 367.83801 to 367.83807, and may recover the reasonable costs of investigation and litigation.

(2) If an act by a mold remediation company violates any provision of this chapter, the Attorney General may take civil action and seek any remedy provided in this chapter, including the recovery of the reasonable costs of investigation and litigation.

Effective: July 15, 2010

History: Created 2010 Ky. Acts ch. 89, sec. 4, effective July 15, 2010.

Defective New Cars Defective New Cars

367.840 KRS 367.841 to 367.844 to be construed liberally -- Purposes.

KRS 367.841 to 367.844 shall be liberally construed and applied to promote the underlying purposes of KRS 367.841 to 367.844, which purposes are:

(1) To protect consumers who buy or lease new motor vehicles that do not conform to applicable warranties by holding manufacturers accountable for certain nonconformities;

(2) To limit the number of attempts and the amount of times that a manufacturer or its agents shall have to cure such nonconformities; and

(3) To require manufacturers to provide, in as expeditious a manner as possible, a refund, not to exceed the amount in KRS 367.842, or replacement vehicle that is acceptable to the aggrieved consumer when the manufacturer or its agents fail to cure any nonconformity within the specified limits.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 54, sec. 1, effective July 15, 1998. -- Created 1986 Ky. Acts ch. 387, sec. 1, effective July 15, 1986.

367.841 Definitions.

(1) "Buyer" means any resident person who buys, contracts to buy, or leases a new motor vehicle in the Commonwealth of Kentucky. In the case of the lease of a new motor vehicle, "buyer" shall mean the lessor, lessee, or both.

(2) "Manufacturer" means any person or corporation, resident or nonresident, who manufactures or assembles new motor vehicles, including new conversion van manufacturers, which are sold in the Commonwealth of Kentucky.

(3) "Motor vehicle" means every vehicle which is self-propelled, and which is intended primarily for use and operation on the public highways and required to be registered or licensed in the Commonwealth prior to such use or operation; however, "motor vehicle" shall not include:

(a) Any vehicle substantially altered after its initial sale from a dealer to an individual;

(b) Motor homes;

(d) Mopeds;

(e) Farm tractors and other machines used in the production, harvesting, and care of farm products; or

(f) Vehicles which have more than two (2) axles.

(4) "New motor vehicle" means a motor vehicle which has been finally and completely assembled and is in the possession of a manufacturer, factory branch, distributor, wholesaler, or an authorized motor vehicle dealer operating under a valid sales and service agreement, franchise, or contract for the sale of such vehicle granted by the manufacturer, factory branch, distributor, or wholesaler which is, in fact, new and on which the original title has never been issued.

(5) "Express warranty" or "warranty" means the written warranty, so labeled, of the manufacturer of a new automobile, including any terms or conditions precedent to the enforcement of obligations under the warranty.

(6) "Nonconformity" means a failure to conform with an express warranty in a manner which substantially impairs the use, value, or safety of the motor vehicle.

(7) "Reasonable allowance for use" means the amount directly attributable to a consumer's use of the vehicle other than those time periods when the vehicle is out of service due to the nonconformity.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 54, sec. 2, effective July 15, 1998; and ch. 96, sec. 1, effective July 15, 1998. -- Created 1986 Ky. Acts ch. 387, sec. 2, effective July 15, 1986.

Legislative Research Commission Note (7/15/98). This section was amended by 1998 Ky. Acts chs. 54 and 96 which do not appear to be in conflict and have been codified together.

367.842 Options of buyer if manufacturer unable to repair nonconformity in new motor vehicle -- Rights of lienholder -- Resolution of disputes -- Dealer not liable.

(1) If, after a reasonable number of attempts, the manufacturer or its agents are unable to repair the nonconformity in the motor vehicle to the express warranty during the first twelve thousand (12,000) miles of operation or during the first twelve (12) months following the date of delivery to the buyer, whichever is the earlier date, that buyer shall report the nonconformity, in writing, to the manufacturer.

(2) If, within the period specified in subsection (1) of this section, the manufacturer or its agents, are unable to repair or correct any nonconformity or defect that substantially impairs the use, value, or safety of the motor vehicle, after a reasonable number of attempts, the manufacturer, at the option of the buyer, shall replace the motor vehicle with a comparable motor vehicle, or accept return of the vehicle from the buyer and refund to the buyer the full purchase price. The full purchase price shall include the amount paid for the motor vehicle, finance charge, all sales tax, license fee, registration fee, and any similar governmental charges plus all collateral charges, less a reasonable allowance for the buyer's use of the vehicle. Refunds shall be made to the buyer and lienholder, if any, as their interests may appear on the records of ownership kept by the Department of Vehicle Regulation. The provisions of this section shall not affect the interests of a lienholder, unless the lienholder consents to the replacement of the lien with a corresponding lien on the automobile accepted by the consumer in exchange for the automobile having a nonconformity, the lienholder shall be paid in full the amount due on the lien, including finance charges and other charges, before an exchange of automobiles or a refund to the consumer is made. It shall be an affirmative defense to any claim under this section that:

(a) The nonconformity, defect, or condition does not substantially impair the use, value, or safety of the motor vehicle; or

(b) The nonconformity, defect, or condition is the result of abuse, neglect, or unauthorized modification or alteration of the motor vehicle by the buyer.

(3) It shall be presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable express warranty if, within the first twelve thousand (12,000) miles of operation or during the period of twelve (12) months following the date of original delivery of the motor vehicle to the buyer, whichever is the earlier date:

(a) The same nonconformity, defect, or condition has been subject to repair four

(4) or more times by the manufacturer, but such nonconformity, defect, or condition continues to exist; or

(b) The vehicle is out of service/use by reason of repair of the same nonconformity, defect, or condition for a cumulative total of at least thirty

(30) calendar days. The time period described in this paragraph shall be extended by a reasonable time when a vehicle cannot be repaired due to the unavailability of parts or supplies as a result of war, invasion, civil unrest, fire, flood, or natural disaster.

(4) Disputes arising under subsection (2) of this section concerning refund or replacement shall be resolved through the dispute resolution system established under either KRS 367.860 to 367.870, or 16 C.F.R. part 703. Such remedy shall be pursued prior to seeking any judicial relief under KRS 367.843.

(5) Nothing in this chapter may be construed as imposing any liability on a dealer or creating a cause of action by a consumer against a dealer.

(6) Nothing in this section shall in any way limit the rights or remedies which are otherwise available to a buyer under any other law.

(7) Any agreement entered into by a buyer for the purchase of a new motor vehicle which waives, limits, or disclaims the rights set forth in this section shall be void as contrary to public policy.

(8) Any action brought pursuant to this section shall be commenced within two (2) years after the date of original delivery of the new motor vehicle to the buyer.

(9) A court may award reasonable attorney's fees to a prevailing plaintiff.

Effective: July 12, 2012

History: Amended 2012 Ky. Acts ch. 13, sec. 1, effective July 12, 2012. -- Created 1986 Ky. Acts ch. 387, sec. 3, effective July 15, 1986.

367.843 Action for relief by purchaser.

Any person who purchases a motor vehicle and thereby suffers any ascertainable loss of money or property, real or personal, as a result of a violation of KRS 367.842, may bring an action under the provisions of KRS 367.220 for relief.

Effective: July 15, 1986

History: Created 1986 Ky. Acts ch. 387, sec. 4, effective July 15, 1986.

367.844 Manufacturer prohibited from exposing franchised dealer to liability.

No manufacturer shall, directly or indirectly, by any means or methods, expose or attempt to expose any franchised dealer to liability as forbidden in KRS 367.842(4) and (5). Any violation of this section shall be subject to all applicable provisions of the law, including but not limited to the provisions of KRS 190.062(2).

Effective: July 15, 1986

History: Created 1986 Ky. Acts ch. 387, sec. 5, effective July 15, 1986.

367.845 Enforcement of provisions of KRS 367.842 to 367.844 by Attorney General.

Noncompliance with the provisions of KRS 367.842 to 367.844 by a manufacturer shall be unlawful. The Attorney General shall have authority to enforce KRS 367.842 to 367.844 in accordance with powers provided by KRS 367.190 and 367.230, pertaining to acts declared unlawful by KRS 367.170. Any expenses accruing to the Attorney General from the provisions of KRS 367.842 to 367.844 shall be assessed by his office upon the motor vehicle manufacturer involved in any action cited in the provisions herein.

Effective: July 15, 1986

History: Created 1986 Ky. Acts ch. 387, sec. 6, effective July 15, 1986.

367.846 Application of KRS 367.840 to 367.845.

KRS 367.840 to 367.845 shall apply to new motor vehicles purchased after July 15, 1986, and to motor vehicles leased after July 15, 1998.

Effective: July 15, 1998

History: Amended 1998 Ky. Acts ch. 54, sec. 3, effective July 15, 1998. -- Created 1986 Ky. Acts ch. 387, sec. 7, effective July 15, 1986.

Kosher Meats or Meat Preparations Kosher Meats or Meat Preparations

367.850 False representation of kosher meats or meat preparations -- Advertising -- Sale.

(1) A person who, with intent to defraud, sells or exposes for sale any meat or meat preparations, and falsely represents the same to be kosher, whether such meat or meat preparations be raw or prepared for human consumption, or as having been prepared under, and of a product or products sanctioned by, the orthodox Hebrew religious requirements, either by direct statement orally, or in writing, which might reasonably be calculated to deceive or lead a reasonable man to believe that a representation is being made that such meat or meat preparation is kosher or prepared in accordance with the orthodox Hebrew religious requirements, or falsely represents any meat products or the contents of any package or container to be so constituted and prepared, by having or permitting to be inscribed thereon the word "kosher" in any language; or sells or exposes for sale in the same place of business both kosher and non-kosher meat or meat preparations, whether raw or prepared for human consumption, and who fails to indicate on his window signs and all display advertising, in block letters at least four (4) inches in height, "kosher and non- kosher meat sold here"; or who exposes for sale in any show window or place of business both kosher and non-kosher meat or meat preparations, either raw or prepared for human consumption, and who fails to display over each kind of meat or meat preparations, so exposed a sign in block letters at least four (4) inches in height reading "kosher meat," or "non-kosher meat," as the case may be, or who displays on his window, or in his place of business, or in handbills or other printed matter distributed in or outside of his place of business, words or letters in Hebraic characters other than the word "kosher," or any sign, emblem, insignia, six (6) pointed star, symbol, or mark in simulation of same, without displaying in conjunction therewith, in English letters of at least the same size as such characters, signs, emblems, insignia, symbols, or marks, the words "we sell kosher meat only," or "we sell non-kosher meat only," or "we sell both kosher and non-kosher meat," as the case may be, is guilty of a misdemeanor. Possession of non-kosher meat or meat preparations, in any place of business advertising the sale of kosher meat and meat preparations only, is presumptive evidence that the person in possession exposes the same for sale with intent to defraud, in violation of the provisions of this section.

(2) A person who, with intent to defraud, sells or exposes for sale in any hotel, restaurant, or other place where meat products are sold for consumption on or off the premises, and falsely represents the same to be kosher, whether such meat or meat preparations, be raw or prepared for human consumption, or as having been prepared under, and of a product or products sanctioned by the orthodox Hebrew religious requirements, either by direct statement orally, or in writing, which might reasonably be calculated to deceive or lead a reasonable man to believe that a representation is being made that such meat is kosher or prepared in accordance with the orthodox Hebrew religious requirements, or falsely represents any meat or meat product or the contents of any package to be so constituted and prepared, by having or permitting to be inscribed thereon the word "kosher" in any language; or sells or exposes for sale in the same place of business both kosher and non-kosher meat or meat preparations, either raw or prepared for human consumption, and who fails to indicate on his window signs and all display advertising, in block letters at least four (4) inches in height, "kosher and non-kosher meat sold here," either raw or prepared for human consumption, and who fails to display over each kind of meat or meat preparation so exposed a sign in block letters at least four (4) inches in height reading "kosher meat" or "non-kosher meat," as the case may be, or who displays on his window, door, or in his place of business, or in handbills or other printed matter distributed in or outside of his place of business, words or letters in Hebraic characters other than the word "kosher," or any sign, emblem, insignia, six

(6) pointed star, symbol, or mark in simulation of same, without displaying in conjunction therewith in English letters of at least the same size as such characters, signs, emblems, insignia, symbols, or marks the words "we sell kosher meat only," or "we sell non-kosher meat only," or "we sell both kosher and non-kosher meat," as the case may be, is guilty of a misdemeanor. Possession of non-kosher meat, in any place of business advertising the sale of kosher meat only, is presumptive evidence that the person in possession exposes the same for sale with intent to defraud, in violation of the provisions of this section.

Effective: July 15, 1980

History: Created 1980 Ky. Acts ch. 49, sec. 10, effective July 15, 1980.

Fresh Meat or Meat Products Produced Outside United States Fresh Meat or Meat Products Produced Outside United States

367.855 Sign to indicate fresh meat or fresh meat product produced outside United States -- Exemptions.

(1) Any person who sells or exposes for sale any fresh meat or fresh meat product which is produced outside of the United States shall indicate by a sign displayed over each kind of meat or meat product that the meat or meat product is "foreign meat" or "imported meat" using lettering at least two (2) inches in height and displayed either in or on the meat counter.

(2) "Meat" means pork, beef, poultry, mutton, and lamb.

(3) This section and KRS 367.857 shall not apply to fresh meat or fresh meat product:

(a) Not prepared for human consumption;

(b) Prepared by food service establishments as defined in KRS Chapter 219; or

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 142, sec. 1, effective July 15, 1988.

367.857 Wholesalers, distributors or processors to indicate in writing the place of origin.

Any wholesaler, distributor or processor of fresh meat or fresh meat product who sells, exposes for sale, delivers or transfers any meat or meat product which is produced outside of the United States shall indicate to the retailer, purchaser or transferee in writing, that the meat or meat product is produced outside of the United States and shall indicate to the retailer, purchaser or transferee in writing, the place of origin of the meat or meat product.

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 142, sec. 2, effective July 15, 1988.

Informal Dispute Resolution System Informal Dispute Resolution System

367.860 Definitions for KRS 367.865.

As used in KRS 367.865 unless the context requires otherwise:

(1) "Buyer" means any resident person who buys or contracts to buy a new motor vehicle in the Commonwealth of Kentucky.

(2) "Manufacturer" means any person, resident or nonresident, who manufactures or assembles new motor vehicles which are sold in the Commonwealth of Kentucky.

(3) "Motor vehicle" means any two (2) axle, motor-driven vehicle with at least four (4) wheels which is required to be registered or licensed in the Commonwealth of Kentucky before being operated upon the highways and is used or bought for use primarily for personal, family, or household purposes.

(4) "New motor vehicle" means a motor vehicle which, after its final assembly, is either in the possession of the manufacturer, factory branch or distributor, or an authorized dealer operating under a franchise with the manufacturer, factory branch or distributor, and the legal or equitable title to which has never been the subject of a sale or transfer other than to another dealer operating under a similar franchise with the same manufacturer, factory branch or distributor.

(5) "System" means an informal dispute resolution procedure adopted by each manufacturer to resolve questions of law and fact relating to disputes between the buyer and the manufacturer arising within the first two (2) years or twenty-five thousand (25,000) miles of the buyer's ownership, whichever occurs first, including but not limited to unsatisfactory warranty repairs of the buyer's motor vehicle, mechanical malfunctions of the buyer's motor vehicle, or other problems relating to the performance of the buyer's motor vehicle.

Effective: July 15, 1982

History: Created 1982 Ky. Acts ch. 193, sec. 1, effective July 15, 1982.

367.865 Informal dispute resolution system.

(1) Effective January 1, 1983, each motor vehicle manufacturer shall offer to the buyer a comprehensive informal dispute resolution system. By transacting business in the Commonwealth of Kentucky, each manufacturer is deemed to have voluntarily consented to participate in the system. Each system shall operate pursuant to written rules and procedures which:

(a) Ensure that the system is impartial, accessible to the buyer, and expeditious, and shall operate at no cost to the buyer;

(b) Provide that if the buyer elects to submit the dispute to the system, the manufacturer shall not refuse to submit the dispute to the system as long as the subject of the dispute occurred during the first two (2) years or twenty-five thousand (25,000) miles, whichever occurs first, of the buyer's ownership of the motor vehicle involved in the dispute;

(c) Provide that the system shall provide for an oral hearing, unless the buyer agrees in writing that the system shall render a decision based solely on documents submitted to it;

(d) Shall include, but is not limited to, procedures for informing the buyer of the existence of the system, preparing the agreement between the buyer and the manufacturer whereby the dispute may be submitted to the system, selecting the members of the decision-making panel, notifying the parties of the complaint, investigating the complaint, providing for hearings, rendering a fair and expeditious decision, and informing parties of the decision.

(2) The decision of the system shall be legally binding on the manufacturer. The decision of the system shall not be legally binding on the buyer, unless the manufacturer elects to have its system binding on all buyers who submit their disputes to the system. If the system is to be binding to both parties, the written agreement between the buyer and the manufacturer whereby the dispute is submitted to the system shall include in conspicuous, bold-faced type the following statement: "YOU SHOULD REMEMBER THAT BY ENTERING INTO THIS AGREEMENT YOU ARE DECIDING TO USE THIS DISPUTE RESOLUTION SYSTEM TO SETTLE YOUR DISPUTE INSTEAD OF GOING TO COURT. AFTER A DECISION BY AN ARBITRATOR, NORMALLY A COURT WILL REFUSE TO HEAR THE FACTS IN A CASE IN ALL BUT THE MOST UNUSUAL SITUATIONS. YOUR SIGNATURE IS REQUIRED IMMEDIATELY BELOW TO INDICATE THAT YOU HAVE READ THIS DISCLOSURE. ----------------------------------" SIGNATURE OF BUYER

(3) Before a dispute may be submitted to a system which is legally binding on both parties, the buyer shall sign the disclosure statement required by subsection (2) of this section.

(4) Each manufacturer shall take steps reasonably calculated to make the buyer aware of the existence of the system at the time the dispute arises.

(5) Each manufacturer shall take all steps necessary to ensure that the system is sufficiently insulated from the manufacturer so that the decisions of the system are not influenced by the manufacturer. The system's decision-making panel shall be composed of members at least fifty-one percent (51%) of whom have no involvement in the manufacture, distribution or sale of motor vehicles. No member deciding a dispute shall be a party to the dispute; nor shall any member deciding a dispute be an employee or agent of a party to the dispute, unless solely for the purpose of impartially deciding disputes.

(6) Nothing herein shall prohibit the manufacturer from participating in a system sponsored or administered by an impartial third party having no direct involvement in the manufacture, distribution, sale, or service of motor vehicles.

(7) Each dispute resolution system shall provide to the office of the Attorney General, upon request, the name and address of each buyer whose complaint is resolved through its system. The Attorney General shall have the authority to monitor each dispute resolution system as well as review the records on each complaint, upon request. An annual report shall be prepared and published by the office of the Attorney General evaluating the performance, effectiveness, and benefits of the system, and shall include in this report recommendations for continuing, modifying, or terminating the requirement of this section.

Effective: July 13, 1984

History: Amended 1984 Ky. Acts ch. 360, sec. 1, effective July 13, 1984. -- Created 1982 Ky. Acts ch. 193, sec. 2, effective July 15, 1982.

367.867 Other dispute resolution system satisfies requirements of KRS 367.865.

Notwithstanding the provisions of KRS 367.860 to 367.870, a dispute resolution system which is established pursuant to and in compliance with 16 C.F.R. Part 703 satisfies the requirements of KRS 367.865, as long as the dispute resolution system provides each party to the dispute with the right to an oral hearing.

Effective: July 13, 1984.

History: Created 1984 Ky. Acts ch. 360, sec. 2, effective July 13, 1984.

367.870 Enforcement of informal dispute resolution system.

Noncompliance with KRS 367.865 by a manufacturer shall be unlawful. The Attorney General shall have authority to enforce KRS 367.865 in accordance with powers provided by KRS 367.190 and 367.230 to 367.300, pertaining to acts declared unlawful by KRS 367.170.

Effective: July 15, 1982

History: Created 1982 Ky. Acts ch. 193, sec. 3, effective July 15, 1982.

Gift Cards Gift Cards

367.890 "Gift card" defined -- Earliest permissible expiration dates -- Extra charges and fees prohibited -- Liability of violator.

(1) "Gift card," as used in this section, means a certificate, electronic card, or other medium issued by a merchant that evidences the giving of consideration in exchange for the right to redeem the certificate, electronic card, or other medium for goods, food, services, credit, or money of at least an equal value. "Gift card" includes any electronic card issued by a merchant with a monetary value where the issuer has received payment for the full monetary value for the future purchase or delivery of goods or services and any certificate issued by a merchant where the issuer has received payment for the full monetary face value of the certificate for the future purchase or delivery of goods and services. "Gift card" does not include a prepaid calling card used to make telephone calls, or a general-use, prepaid card or other electronic payment device that is issued by a bank or other financial institution that is usable at multiple, unaffiliated merchants, or at automated teller machines, or both, or a gift card issued by a merchant for a promotional program for which no separate monetary consideration is given.

(2) Subject to subsection (5) of this section, no person or entity shall sell a gift card containing an expiration date that is less than one (1) year after the date the gift card is issued.

(3) No person or entity shall charge service charges or fees relative to that gift card, including dormancy fees, latency fees, or administrative fees, that have the effect of reducing the total amount for which the holder of the gift card may redeem the gift card until the expiration date on the card has expired.

(4) A gift card sold without an expiration date printed on the front or back of the card is valid until redeemed or replaced with a new gift card.

(5) If the expiration date on the card is not less than one hundred twenty (120) days from the date of issue, subsection (2) of this section does not apply to any of the following gift cards:

(a) Sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fundraising purposes;

(b) Sold by a nonprofit or charitable organization for fundraising purposes; or

(c) Given by an employer to an employee, if use of the card is limited to the employer's business establishment. As used in this paragraph, business establishment may include a group of merchants that are affiliated with that business establishment.

(6) Any person who violates subsection (3) of this section is liable to the holder of the card for any amount that the redemption value of the gift card was reduced, any court costs incurred, and reasonable attorney's fees.

Effective: July 15, 2010

History: Amended 2010 Ky. Acts ch. 54, sec. 1, effective July 15, 2010. -- Created 2006 Ky. Acts ch. 28, sec. 1, effective July 12, 2006.

Health Spas Health Spas

367.900 Definitions.

As used in KRS 367.905 to 367.930, unless the context requires otherwise:

(1) "Health spa" means an establishment, except those defined as nonprofit organizations under 26 U.S.C. sec. 509(a), which provides for profit as one of its primary purposes, services or facilities which purport to improve the user's physical condition or appearance through participation in sports activities, fitness training, exercise, or body building. The term includes establishments that offer access to any of the following facilities: gymnasiums, swimming pools, tracks, ball courts, weight lifting equipment, exercise equipment or facilities, saunas, steambaths, or whirlpools. It does not include establishments that limit their services primarily to diet counseling and the provision of special dietary foods.

(2) "Contract" means an oral or written agreement by which one becomes a member of a health spa.

(3) "Member" means a status attained by any natural person entitling him to the services or facilities of a health spa.

(4) "Seller" means the person, corporation, partnership, association, or group engaged in the operation of a health spa as defined in this section, and who offers for sale the right to use the facilities or the services of the health spa.

(5) "Facilities" means equipment, physical structures, and other tangible property utilized by a health spa to conduct its business. The term includes, but is not limited to, saunas, whirlpool baths, gymnasiums, running tracks, swimming pools, shower areas, and exercise equipment.

(6) "Services" means programs, plans, guidance, or instruction provided by a health spa for health spa members. The term includes, but is not limited to diet planning, exercise instruction, exercise programs, and instructional classes.

(7) "Prepayment" means any payment for services or the use of facilities made before the services or facilities are made available by the health spa. It is not a prepayment if a payment for services or the use of facilities is made on the same day the services or use of the facilities is provided. Money or other consideration received by a health spa from a financial institution upon the assignment or sale of a contract shall be considered a prepayment to the extent the member is required to make prepayments to the financial institution pursuant to the contract.

(8) "Special offer or discount" means any offer of health spa services or the use of health spa facilities at a reduced price or without charge to the member or prospective member.

(9) "Contract price" means the total consideration paid by a member pursuant to a contract, including, but not limited to the following:

(a) Any nonrecurring fee charged at, or near, the beginning of a health spa membership or renewal period;

(b) All monthly fees required by the contract;

(d) All charges for equipment or locker rental, credit check, financial, medical and dietary evaluation, class and training fees.

(10) "Contract term" means the total period of health spa use allowed by a member's contract, including months or time periods that are called "free" or "bonus," or that are described in any other terms suggesting that they are provided free of charge.

Effective: July 15, 1988

History: Amended 1988 Ky. Acts ch. 367, sec. 5, effective July 15, 1988. -- Created 1982 Ky. Acts ch. 298, sec. 1, effective July 15, 1982.

367.905 Registration of health spa -- Annual registration statement and fee -- Surety bond -- Separate locations.

(1) Any person, corporation, partnership, association, or group intending to open or operate a health spa within the Commonwealth, shall:

(a) File a registration statement, accompanied by a one hundred dollar ($100) initial registration fee, with the Attorney General's Office of Consumer Protection prior to the sale of any memberships in the Commonwealth of Kentucky. Such a registration statement shall contain the name and address of the health spa; the names and addresses of the officers, directors, and stockholders of the health spa and its parent corporation, if such an entity exists; the type of available facilities; approximate size of the health spa measured in square feet; whether or not a shower area is provided; the names and addresses of employees and their respective qualifications for employment in the health spa field; type of membership plans to be offered and their cost; and a full and complete disclosure of any completed or pending litigation initiated against the health spa and any of its officers or directors within the last three (3) years.

(b) Prior to the sale of any memberships in the Commonwealth of Kentucky, provide the Attorney General's Office of Consumer Protection with a surety bond meeting the requirements of KRS 367.906.

(2) A new registration statement, accompanied by an annual registration fee of fifty dollars ($50), shall be filed with the Attorney General's Office of Consumer Protection on or before July 1 of each year following the opening of the health spa.

(3) Each health spa selling contracts on a prepayment basis shall deposit all funds received from such contracts in an escrow account until the health spa has remained open for a period of thirty (30) days. At the end of this thirty (30) day period, such prepayment funds shall be eligible for withdrawal at the depositor's discretion.

(4) Each health spa registering pursuant to this statute shall maintain in the files of the health spa, a copy of its registration statement filed pursuant to this section. This registration statement shall be made available for inspection by current health spa members or prospective purchasers of health spa memberships.

(5) The registration fees required by this section shall be credited to a trust or agency account for the administrative purposes of the Attorney General's Office of Consumer Protection, as set forth in KRS 367.900 to 367.930.

(6) Each separate location where health spa services are offered shall be considered a separate health spa and shall file a separate registration statement and surety bond, even though the separate locations are owned or operated by the same owner.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 25, effective April 5, 2024. -- Amended 1988 Ky. Acts ch. 367, sec. 6, effective July 15, 1988. -- Created 1982 Ky. Acts ch. 298, sec. 2, effective July 15, 1982. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, A, 18, (4) at 2057.

367.906 Form and amount of surety bonds -- Exemptions from bonding requirement -- Effect of change in membership, ownership.

(1) The surety bond required by KRS 367.905(1)(b) shall be in favor of the Attorney General's Office of Consumer Protection and shall be held for compensation to any member who suffers loss of money paid due to the insolvency of the health spa, cessation of operation of the health spa, or failure of the health spa to open for business within ninety (90) days from the sale of the first contract.

(2) The bond shall be in a form prescribed by the Attorney General's Office of Consumer Protection and shall be issued by a company authorized to transact business in the Commonwealth of Kentucky.

(3) The amount of the bond shall be computed as follows: Number of unexpired contracts Amount of bond 150 or fewer $10,000 151 to 300 $25,000 301 or more $50,000

(4) The Attorney General's Office of Consumer Protection shall exempt a spa from the bonding requirement if all of its unexpired contracts and present membership plans meet the following criteria:

(a) No initiation fee, or similar nonrecurring fee, is charged at or near the beginning of the contract term or renewal period, and

(b) At no time is any member charged for use of facilities or services more than thirty-one (31) days in advance.

(5) If, because of an increase in membership or change in membership plans, a spa is required to file a bond or increase the amount of its bond, it shall notify the Attorney General's Office of Consumer Protection in writing at least thirty (30) days prior to the expected change. No contract in excess of the limits stated in subsection (3) of this section or not in compliance with subsection (4) of this section shall be sold until a new bond in the required amount has been provided.

(6) A change in ownership shall not release, cancel or terminate liability under any bond previously filed unless the Attorney General's Office of Consumer Protection agrees in writing to the release, cancellation or termination because the new owner has filed a new bond for the benefit of the previous owner's members, or because the former owner has paid the required refunds to its members.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 26, effective April 5, 2024. -- Created 1988 Ky. Acts ch. 367, sec. 1, effective July 15, 1988.

367.910 Written contract -- Contents.

(1) A fully completed copy of each contract shall be delivered to the buyer at the time the contract is signed. Every contract must constitute the entire agreement between the seller and the buyer, must be in writing, and must be signed by the member.

(2) Each contract shall state in at least ten (10) point bold faced type the following: "NOTICE TO BUYER: DO NOT SIGN THIS CONTRACT UNTIL YOU HAVE READ ALL OF IT. ALSO, DO NOT SIGN THIS CONTRACT IF IT CONTAINS ANY BLANK SPACES."

(3) Every purchaser of a membership shall be entitled to cancel his or her contract within three (3) business days by notifying the health spa in writing by midnight of the third business day following the date of purchase of the membership contract. Written notification is deemed given if mailed or delivered by midnight of the third business day. All money collected pursuant to the contract shall be refunded to the purchaser exercising the right to cancel.

(4) In addition to the cancellation rights stated in subsection (3) of this section, a member shall be entitled to cancellation and to a full or partial refund of the contract price as follows:

(a) A member shall be entitled to cancel if, because of death or medical disability, the member becomes unable to use a substantial portion of the facilities or services for thirty (30) or more consecutive days. Upon receipt of written notice from the member, or from the representative of the member's estate, the health spa shall pay a refund in an amount computed by dividing the contract price by the number of weeks in the contract term and multiplying the result by the number of weeks remaining in the contract term. Members shall only receive refunds of money actually paid to the spa by them, or on their behalf. In the case of medical disability, the health spa may require the member to submit to an examination by a medical doctor agreeable to both the member and the health spa. The cost of the examination shall be borne by the health spa.

(b) A member shall be entitled to cancel if the health spa relocates more than five

(5) miles from the location designated in the health spa contract. Upon receipt of written notice from the member, the health spa shall pay a refund to the member in an amount computed as provided in subsection (4)(a) of this section.

(c) A member shall be entitled to cancel if the member relocates twenty-five (25) miles or more from the residence stated in the contract, and the spa cannot provide comparable alternative facilities and services within five (5) miles of the member's new residence. Upon written notice from the member, the health spa shall pay a refund in an amount computed as provided in subsection (4)(a) of this section. The health spa may require written verification of the new residence, such as a lease, deed, or utility bill.

(d) If the health spa fails to open for business within ninety (90) days from the sale of the first contract, becomes insolvent, or ceases operation, all membership contracts shall be deemed canceled and the spa shall pay refunds to its members. No notification from any member shall be required. Refunds shall be given in an amount computed as provided in subsection (4)(a) of this section.

(5) If written notice of cancellation is required in subsection (4) of this section, the member shall notify the health spa in writing, by certified mail, return receipt requested, or by personal delivery, to the address stated in the health spa contract. All moneys to be refunded shall be paid within thirty (30) days of receipt of the cancellation notice.

(6) If a refund is required by this section and the member has executed any credit or loan agreement with the health spa to pay for use of all or part of the facilities and services, that agreement shall be canceled and returned within the same time period as required for the refund.

(7) Each contract shall contain the following notice in at least ten (10) point bold faced type: "IF WITHIN THREE (3) BUSINESS DAYS YOU DECIDE YOU DO NOT WISH TO REMAIN A MEMBER OF THIS HEALTH SPA, YOU MAY CANCEL THIS AGREEMENT BY MAILING A NOTICE TO THE HEALTH SPA BY MIDNIGHT OF THE THIRD BUSINESS DAY FOLLOWING YOUR PURCHASE OF THE CONTRACT STATING YOUR DESIRE TO CANCEL THIS CONTRACT. THE WRITTEN NOTICE SHOULD BE MAILED TO THE FOLLOWING ADDRESS:" (address of the health spa) "ADDITIONAL CANCELLATION RIGHTS: You may also cancel this contract if any of the following occur:

(a) You may cancel if, because of death or medical disability, you become unable to use a substantial portion of the spa's facilities or services for thirty (30) or more days. In the event of medical disability, you must provide the spa with a doctor's statement. In addition, the spa may require you to submit to a physical examination by a mutually agreeable medical doctor, at its cost. Your estate may cancel in the event of your death.

(b) You may cancel if the spa relocates more than five (5) miles from the location stated in the contract.

(c) You may cancel if you relocate more than twenty-five (25) miles from your residence as stated in the contract, and the spa cannot provide comparable facilities and services within five (5) miles of your new residence. The spa may require written verification of your new residence, such as a lease, deed or utility bill. IN ORDER TO EXERCISE THESE ADDITIONAL CANCELLATION RIGHTS, YOU MUST NOTIFY THE SPA IN WRITING, BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY PERSONAL DELIVERY, TO THE ADDRESS STATED ABOVE. ALL MONEYS TO BE REFUNDED SHALL BE PAID TO YOU WITHIN THIRTY (30) DAYS AFTER THE SPA'S RECEIPT OF THE CANCELLATION NOTICE."

Effective: July 15, 1988

History: Amended 1988 Ky. Acts ch. 367, sec. 7, effective July 15, 1988. -- Created 1982 Ky. Acts ch. 298, sec. 3, effective July 15, 1982.

367.911 Term of contract.

(1) No contract term shall exceed thirty-six (36) months from the date the contract is entered into; however, a member may renew a contract for additional terms. No contract term shall be measured by or be for the life of the member.

(2) No contract shall require payments or financing by the member over a period in excess of thirty-six (36) months from the date the contract is entered into.

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 367, sec. 2, effective July 15, 1988.

367.912 Noncomplying contract void and unenforceable -- Waiver deemed void.

(1) Any contract which does not comply with the applicable provisions of KRS 367.900 to 367.930 shall be void and unenforceable as contrary to public policy.

(2) Any waiver by a member or purchaser of a contract of any of the provisions of KRS 367.900 to 367.930 shall be deemed void and unenforceable as contrary to public policy.

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 367, sec. 3, effective July 15, 1988.

367.913 Member's cancellation rights.

(1) In addition to any rights that may be conferred upon a member by KRS 367.610, no holder of a consumer credit contract, as that term is defined in KRS 367.600, shall fail to honor a member's cancellation rights and provide a refund within the time period required by KRS 367.910.

(2) Subsection (1) of this section shall apply regardless of whether the consumer credit contract is in compliance with trade regulations issued or promulgated by the Federal Trade Commission or any regulation of the Board of Governors of the Federal Reserve System or similar federal agency having jurisdiction relating to preservation of consumer claims and defenses in credit transactions.

(3) No assignee of a health spa's right to payment pursuant to a contract not providing for an extension of credit shall fail to honor a member's cancellation rights and provide a refund within the time period required by KRS 367.910.

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 367, sec. 4, effective July 15, 1988.

367.915 List of membership plans.

(1) Each health spa doing business in the Commonwealth shall prepare a comprehensive list of all membership plans offered for sale by the health spa and the respective price of each plan. The list shall be shown to each prospective purchaser of a membership plan.

(2) A health spa is prohibited from selling a membership plan not included in this list and in the registration statement required by KRS 367.905.

Effective: July 15, 1982

History: Created 1982 Ky. Acts ch. 298, sec. 4, effective July 15, 1982.

367.920 Prohibited activities.

(1) Health spas shall be prohibited from offering specials or discounts unless such specials or discounts are made in writing and available to all prospective members.

(2) Health spas shall be prohibited from making any material misrepresentation to current members, prospective members or purchasers of membership contracts regarding:

(a) Qualifications of staff;

(b) Availability, quality, or extent of facilities or services;

(d) Rights of membership pursuant to a contract or oral representation; and

(e) Period of time a discount or special offer will be available.

Effective: July 15, 1982

History: Created 1982 Ky. Acts ch. 298, sec. 5, effective July 15, 1982.

367.925 Remedies.

All of the remedies, powers and duties provided for the Attorney General by KRS 367.190 to 367.300 appertaining to acts declared unlawful by KRS 367.170 shall apply with equal force and effect to acts and practices declared unlawful by KRS 367.905 to 367.930.

Effective: July 15, 1982

History: Created 1982 Ky. Acts ch. 298, sec. 6, effective July 15, 1982.

367.930 Action in Circuit Court -- Attorney's fees -- Effect of judgment -- Statute of limitations.

(1) Any person who purchases a health spa membership or enters into a contract to purchase a health spa membership and thereby suffers any ascertainable loss of money or property, real or personal, as a result of the use or employment by another person or corporation of an act or practice declared unlawful by KRS 367.905 to 367.920 may bring an action pursuant to the Rules of Civil Procedure in the Circuit Court in which the seller resides or has his principal place of business or is doing business, or in the Circuit Court in which the purchaser of the membership resides, or where the transaction occurred, to recover actual damages. The court may award such equitable relief as it deems necessary or proper. Nothing in this section shall be construed to limit a person's right to seek punitive damages where appropriate.

(2) In any action brought by a person under this section, the court may award, to the prevailing party, in addition to the relief provided in this section, reasonable attorney's fees and costs.

(3) Any permanent injunction, judgment, or order of the court made under KRS 367.925 shall be prima facie evidence in an action under this section that the respondent used or employed a method, act, or practice declared unlawful by KRS 367.905 to 367.930.

(4) Any person bringing an action under this section must bring such an action within one (1) year after any action of the Attorney General has been terminated or within two (2) years after the violation of this section is discovered, whichever is later.

Effective: July 15, 1982

History: Created 1982 Ky. Acts ch. 298, sec. 7, effective July 15, 1982.

Funeral Planning Funeral Planning

367.93101 Definitions for KRS 367.93101 to 367.93121.

As used in KRS 367.93101 to 367.93121, unless the context requires otherwise:

(1) "Cemetery merchandise" has the same meaning as in KRS 367.932;

(2) "Declarant" means an individual who signs a funeral planning declaration executed under KRS 367.93101 to 367.93121;

(3) "Declaration" means a funeral planning declaration setting forth the declarant's preferences regarding the manner of disposition of the declarant's remains that is executed under KRS 367.93101 to 367.93121 and in a form prescribed by administrative regulation promulgated by the Office of the Attorney General;

(4) "Designee" means an individual designated and directed by the terms of the declaration to:

(a) Carry out the funeral plan of the declarant; or

(b) Make any arrangements concerning the disposition of the declarant's remains, funeral services, cemetery merchandise, funeral merchandise, or ceremonies;

(5) "Funeral" has the same meaning as in KRS 316.010; and

(6) "Funeral merchandise" means caskets, outer burial containers, urns, clothing, register books, acknowledgement cards, other memorial products, and any other similar products that are commonly sold by or used in funeral homes.

Effective: July 15, 2016

History: Created 2016 Ky. Acts ch. 59, sec. 1, effective July 15, 2016.

367.93103 Funeral planning declarations.

(1) A person who is of sound mind and is at least eighteen (18) years of age may execute a declaration.

(2) (a) A declaration shall not be included in:

A will;
A power of attorney; or
A similar document.

(b) If a declaration is included in any of the documents listed in paragraph (a) of this subsection, it shall not invalidate the document but the declaration contained therein is not enforceable.

(3) A declaration shall designate an individual to serve as the designee, or if no designee is designated shall provide instruction concerning funeral services, ceremonies, and the disposition of remains after death.

(4) A declaration, at a minimum, shall be:

(a) Voluntary;

(b) In writing;

(d) Dated;

(e) Signed in the presence of at least two (2) competent witnesses who are at least eighteen (18) years of age at the time they sign the declaration; and

(f) Acknowledged before a notary public or other person authorized to administer oaths.

(5) A declaration is not binding upon a funeral home, a cemetery, or any person engaged in the business of providing funeral services, selling merchandise or grave markers, or providing a service or other property subject to the declaration until the funeral home, cemetery, or person receives full payment for the service, merchandise, or other property.

(6) A person is not considered to be entitled to any part of the declarant's estate solely by virtue of being designated by the declarant to serve as his or her designee.

(7) Unless an individual is related to the declarant by birth, marriage, or adoption, a declarant shall not designate an individual to be his or her designee or alternate designee who is:

(a) A provider of funeral or cemetery services; or

(b) Employed by any entity that is responsible for providing funeral or cemetery services or disposing of the declarant's remains.

(8) The following shall not be a witness to a declaration:

(a) The person who signed the declaration on behalf of and at the direction of the declarant; or

(b) The person identified as the designee.

Effective: July 14, 2018

History: Amended 2018 Ky. Acts ch. 185, sec. 27, effective July 14, 2018. -- Amended 2017 Ky. Acts ch. 144, sec. 1, effective June 29, 2017. -- Created 2016 Ky. Acts ch. 59, sec. 2, effective July 15, 2016.

367.93105 Declaration may specify declarant's preferences.

A declaration may specify the declarant's preferences concerning any of the following:

(1) The disposition of the declarant's remains after the declarant's death;

(2) Who may direct the disposition of the declarant's remains;

(3) Who may provide funeral services after the declarant's death;

(4) Specific directions about the type and form of funeral services desired;

(5) The ceremonial arrangements to be performed after the declarant's death;

(6) The funeral merchandise and cemetery merchandise for the disposition of the declarant's remains;

(7) Who may direct the ceremonial arrangements to be performed after the declarant's death; and

(8) Disinterment.

Effective: July 15, 2016

History: Created 2016 Ky. Acts ch. 59, sec. 3, effective July 15, 2016.

367.93107 Most recent declaration of preferences prevails.

(1) The provisions of the declarant's most recent declaration shall prevail over any other document executed by the declarant concerning any preferences described in KRS 367.93105.

(2) The invalidity of any specific preference or direction shall not affect the validity of the declaration.

(3) This section shall not be construed to enable a legal representative to revoke a properly executed declaration or to invalidate a properly executed power of attorney with respect to any power or duty belonging to the legal representative that is not related to the declaration.

Effective: July 15, 2016

History: Created 2016 Ky. Acts ch. 59, sec. 4, effective July 15, 2016.

367.93109 Immunity from liability for actions based on good-faith reliance on a declaration.

(1) A person who acts in good-faith reliance on a declaration is immune from liability to the same extent as if the person had dealt directly with the declarant and the declarant had been a competent and living person.

(2) A person who deals with a declaration may presume, in the absence of actual knowledge to the contrary, that:

(a) The declaration was validly executed and has not been revoked; and

(b) The declarant was competent at the time the declaration was executed.

(3) The directions of a declarant expressed in a declaration are binding as if the declarant were alive and competent.

(4) A crematory authority, licensed funeral director, or cemetery acting pursuant to the terms of a declaration shall not be held liable for good-faith reliance on representations made in the declaration.

Effective: July 15, 2016

History: Created 2016 Ky. Acts ch. 59, sec. 5, effective July 15, 2016.

367.93111 Declaration effective until revoked -- Delivery of revocation.

(1) A declaration shall remain in effect until revoked by the declarant in writing.

(2) A revocation of a declaration shall be delivered to the person to whom the declaration was given or to the designee.

Effective: July 15, 2016

History: Created 2016 Ky. Acts ch. 59, sec. 6, effective July 15, 2016.

367.93113 Events that revoke a designation of authority in a declaration to the declarant's spouse.

(1) The following events that occur subsequent to a declaration shall act as a revocation of a designation of authority in a declaration to the declarant's spouse to direct the disposition of the declarant's body or to make all arrangements concerning funeral services and other ceremonies after the declarant's death, unless otherwise expressly provided in a declaration:

(a) Dissolution of marriage;

(b) Annulment of marriage;

(d) Court determination that the declarant and spouse were physically and emotionally separated at the time of death and the separation was for an extended time that clearly demonstrated an absence of affection, trust, and regard for the declarant.

(2) In the event a spouse's designation is disqualified pursuant to subsection (1) of this section, the alternate designee, if any, shall assume the responsibility for the declaration.

Effective: July 15, 2016

History: Created 2016 Ky. Acts ch. 59, sec. 7, effective July 15, 2016.

367.93115 Failure of person to timely assume obligation in a declaration -- Authority to make arrangements in absence of declaration.

(1) If any designee, alternate designee, or person described in KRS 367.93117 fails to assume an obligation set forth in the declaration, within five (5) days of notification of the declarant's death, the authority to make arrangements shall devolve pursuant to the terms of the declaration or KRS 367.93117.

(2) In the absence of a declaration, if a person described in KRS 367.93117 fails to assume responsibility for a decedent's remains within five (5) days of notification of the decedent's death, the authority to make arrangements shall devolve pursuant to KRS 367.93117.

Effective:June 29, 2017

History: Amended 2017 Ky. Acts ch. 144, sec. 2, effective June 29, 2017. -- Created 2016 Ky. Acts ch. 59, sec. 8, effective July 15, 2016.

367.93117 Persons with authority to make funeral, burial, or other ceremonial arrangements after an individual's death -- Authority for funeral home or District Court to act -- Disqualification of person arrested for or charged with the death -- Petition to waive disqualification.

(1) Except as provided in subsection (2) of this section, the right to control the disposition of a decedent's body, make arrangements for funeral services, make arrangements for burial or cremation, and to make other ceremonial arrangements after an individual's death devolves on the following in the priority listed:

(a) A person:

Named as the designee or alternate designee in a declaration executed by the decedent under KRS 367.93101 to 367.93121; or
Named in a United States Department of Defense form "Record of Emergency Data" (DD Form 93) or a successor form adopted by the United States Department of Defense if the decedent died while serving in any branch of the United States Armed Forces, pursuant to KRS 36.440;

(b) The decedent's surviving spouse;

(c) A surviving adult child of the decedent or, if more than one (1) adult child is surviving, the majority of the adult children. Less than half of the surviving adult children have the right to control disposition under this section if the child or children have used reasonable efforts to notify the other surviving adult children of their intentions and are not aware of any opposition to the final disposition instructions by more than half of the surviving adult children and this has been attested to in writing;

(d) The surviving parent or parents of the decedent. If one (1) of the parents is absent, the parent who is present has the right to control disposition under this section if the parent who is present has used reasonable efforts to notify the absent parent and attests to that in writing;

(e) The surviving adult grandchild of the decedent or, if more than one (1) adult grandchild is surviving, the majority of the adult grandchildren. Less than half of the surviving adult grandchildren have the right to control disposition under this section if the grandchild or grandchildren have used reasonable efforts to notify the other surviving adult grandchildren of their intentions and are not aware of any opposition to the final disposition instructions by more than half of the surviving adult grandchildren and this has been attested to in writing;

(f) The decedent's surviving adult sibling or, if more than one (1) adult sibling is surviving, the majority of the adult siblings. Less than half of the surviving adult siblings have the right to control disposition under this section if the sibling or siblings have used reasonable efforts to notify the other surviving adult siblings of their intentions and are not aware of any opposition to the final disposition instructions by more than half of the surviving adult siblings and this has been attested to in writing;

(g) An individual in the next degree of kinship under KRS 391.010 to inherit the estate of the decedent or, if more than one (1) individual of the same degree is surviving, the majority of those who are of the same degree of kinship. Less than half of the individuals who are of the same degree of kinship have the right to control disposition under this section if they used reasonable efforts to notify the other individuals who are of the same degree of kinship of their intentions and are not aware of any opposition to the final disposition instructions by more than half of the individuals who are of the same degree of kinship and this has been attested to in writing;

(h) If none of the persons described in paragraphs (a) to (g) of this subsection are available, the following may act and arrange for the final disposition of the decedent's remains:

Any other person willing to act and arrange for the final disposition of the decedent's remains who attests in writing that a good-faith effort has been made to contact any living individuals described in paragraphs (a) to (g) of this subsection; or
A funeral home that has a valid prepaid funeral plan that makes arrangements for the disposition of the decedent's remains if the funeral director attests in writing that a good-faith effort has been made to contact any living individuals described in paragraphs (a) to (g) of this subsection;

(i) A court-appointed guardian or conservator for the decedent at the time of death, after all the alternatives in paragraphs (a) to (h) of this subsection have been exhausted. Cremation shall be permitted under this subsection only if:

The decedent has not expressed an objection to cremation to the guardian or conservator prior to death; and
a. The decedent arranged a preneed policy in effect that is limited to the cost of cremation; or

b. The decedent lacked sufficient funds at the time of death to pay for a full burial; or

(j) The District Court in the county of the decedent's residence or the county in which the funeral home or the crematory is located.

(2) No person shall have the right to control the disposition of the remains of the decedent if the person has been arrested for, or charged with, committing an offense intentionally, knowingly, or wantonly, which resulted in the death of the decedent.

(3) A person disqualified pursuant to subsection (2) of this section may petition the court, in the interest of justice, to waive the disqualification.

Effective: July 15, 2020

History: Amended 2020 Ky. Acts ch. 52, sec. 1, effective July 15, 2020; and ch. 123, sec. 1, effective July 15, 2020. -- Amended 2017 Ky. Acts ch. 144, sec. 3, effective June 29, 2017. -- Created 2016 Ky. Acts ch. 59, sec. 9, effective July 15, 2016.

Legislative Research Commission Note (7/15/2020). This statute was amended by 2020 Ky. Acts chs. 52 and 123, which do not appear to be in conflict and have been codified together.

367.93119 No requirement to honor a declaration executed in another state.

A person in Kentucky is not required to honor a declaration or similar instrument executed in another state, but may rely on a declaration or similar instrument executed in another state that complies with the requirements of KRS 367.93101 to 367.93121.

Effective: July 15, 2016

History: Created 2016 Ky. Acts ch. 59, sec. 10, effective July 15, 2016.

367.93121 Action to contest or determine validity of declaration, cremation authorization form, or disqualification from control over disposition of remains -- Resolution of conflict.

An action to contest or determine the validity of any declaration made under KRS 367.93101 to 367.93121 or cremation authorization form, or to resolve a conflict between an executed cremation authorization form and the person or persons authorized in KRS 367.93117 regarding cremation, or to contest a disqualification pursuant to KRS 367.93117(2), shall be:

(1) Brought in the District Court of the county of the decedent's residence or the county in which the funeral home or the crematory is located;

(2) Expedited on the docket of the court as a matter requiring priority; and

(3) Accompanied by a bond, cash deposit, or other surety sufficient to guarantee that the entity holding the declarant's remains is compensated for the safekeeping charges incurred while the action is pending.

Effective: July 15, 2020

History: Amended 2020 Ky. Acts ch. 123, sec. 2, effective July 15, 2020. -- Amended 2017 Ky. Acts ch. 144, sec. 4, effective June 29, 2017. -- Created 2016 Ky. Acts ch. 59, sec. 11, effective July 15, 2016.

Preneed Funeral Service, Burial, or Cemetery Merchandise Contracts Preneed Funeral Service, Burial, or Cemetery Merchandise Contracts

367.932 Definitions for KRS 367.934 to 367.974 and 367.991.

As used in KRS 367.934 to 367.974 and 367.991:

(1) "Agent" means the licensee who is the person, partnership, association or corporation receiving any payments on a preneed funeral contract;

(2) "Attorney General" means the Office of Consumer Protection in the office of the Attorney General;

(3) "Bank of underground crypts" means any construction unit of twenty (20) or more underground crypts designed as a part of a below ground crypt program, whether physically connected or not, having a common drainage system;

(4) "Cemetery" means any one (1) or combination of more than one (1) of the following in a place used or to be used and dedicated or designated for such purposes:

(a) A burial park, for earth interment;

(b) A mausoleum, for entombment;

(5) "Cemetery company" means any person who conducts the business of a cemetery. Excepted are small community cemeteries, their agents, lessees and otherwise that operate nonprofit; have no salaried employees, directors, officers or managers other than maintenance caretakers; are owned, controlled by lot owners; and do not sell any preneed merchandise or services;

(6) "Cemetery merchandise" means urns, memorials, monuments, markers, vases, foundations, memorial bases, and other similar personal property commonly sold by or used in cemeteries;

(7) "Columbarium" means a structure or building substantially exposed above ground intended to be used for the inurnment of cremated remains and sold or offered for sale to the public;

(8) "Columbarium niche" means an inurnment space in a columbarium as defined herein;

(9) "Financial institution" means a bank, trust company, federally chartered credit union, or savings and loan association authorized by law to do business in this state;

(10) "Grave space" means a space of ground in a cemetery intended to be used for the interment in the ground of the remains of one (1) human being;

(11) "Mausoleum" means a building or structure substantially exposed above ground used or intended to be used for the entombment of human remains, which is sold or offered for sale to the public;

(12) "Mausoleum crypt" means an entombment space in a mausoleum as defined herein;

(13) "Person" means an individual, corporation, partnership, joint venture, association, business trust, or any other form of business organization; provided, however, that an individual employee of an entity registered pursuant to KRS 367.934 to 367.974 and 367.991 shall not be required to comply with the registration requirement herein;

(14) "Preneed burial contract" means a contract, which has for a purpose the furnishing or performance of funeral services, or the furnishing or delivery of personal property, merchandise, or services of any nature in connection with the final disposition of a dead human body, for future use at a time determinable by the death of the person whose body is to be disposed of; but does not mean the furnishing of a cemetery lot or mausoleum;

(15) "Preneed cemetery merchandise contract" means any agreement or contract, or any series or combination of agreements or contracts, which has for a purpose the furnishing or delivery of cemetery merchandise, which within six (6) months of the date of the contract is not attached to the realty and permanently installed or which is not stored in a bonded warehouse with the receipt of ownership issued by the manufacturer in the name of the purchaser and transmitted to the purchaser;

(16) "Remains" means the bodies of deceased persons, in whatever stage of decomposition, and cremated remains;

(17) "Trustee" means the financial institution; and

(18) "Underground crypt" means a single unit entombment space in preplaced chambers below ground and also known as lawn crypt, westminister turftop mausoleum, or below ground crypt.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 27, effective April 5, 2024. -- Repealed, reenacted, and amended as KRS 367.932, 1984 Ky. Acts ch. 116, secs. 1, and 9, effective July 13, 1984. -- Created in part 1976 Ky. Acts ch. 294, sec. 2. -- Created in part 1966 Ky. Acts ch. 12, sec. 1. Formerly codified as KRS 307.100 and 316.310.

Legislative Research Commission Note (4/5/2024). Under the authority of KRS 7.136, the reviser of statutes has renumbered the subsections in this statute during codification to place the terms in alphabetical order. The words in the text were not changed.

367.934 Preneed payments and increments as trust funds -- Agents -- Conditions required for disbursements.

(1) Except as provided in KRS 367.935:

(a) 1. All payments of money made to any person, partnership, association, or corporation upon any agreement or contract, or any series or combination of agreements or contracts, but not including the furnishing of cemetery lots or mausoleums, which has for a purpose the furnishing or performance of funeral services, or the furnishing or delivery of personal property, merchandise, or services of any nature in connection with the final disposition of a dead human body, for future use at a time determinable by the death of the person whose body is to be disposed of, are held to be trust funds.

The person, partnership, association, or corporation receiving the payments:

a. Is declared to be the agent thereof; and

b. Shall deposit all payments in a trust account with a bank or trust company or invest the payments in a savings and loan association or federally chartered credit union.

The trustee shall be the financial institution holding the funds.
All of the interest, dividends, increases, or accretions of whatever nature earned by the funds deposited in a trust account shall remain with the principal of such account and become a part thereof, subject to all of the requirements concerning the principal of the account herein contained.
a. The agent shall have the authority at any time to transfer or redesignate the trustee of the funds in his or her discretion upon notification to the Attorney General.

b. In case of any transfer, the former trustee shall transfer funds directly to and payable to the newly designated trustee or its representative;

(b) All payments made to the agent under the agreement, contract, or plan are and shall remain trust funds with the financial institution until the death of the person for whose service the funds were paid and until the delivery of all merchandise and full performance of all services called for by the agreement, contract, or plan, except where payment is made pursuant to a request for refund; and

a. A certified statement is furnished to the financial institution by the agent setting forth that all of the terms and conditions of the agreement have been fully performed by the person, association, partnership, firm, or corporation; and

b. The agent has proven the death of the person for whose service the funds were paid by furnishing the financial institution with a verified or certified copy of a record verifying the death, issued by the state registrar of the Vital Statistics Branch or its successor agency as authorized by KRS Chapter 213, or a provisional certificate of death as described in KRS 213.076.

Any balance remaining in the fund after payment for the merchandise and services as set forth in the agreement, contract, or plan shall be paid to the estate of the beneficiary of the agreement, contract, or plan.

(2) KRS 367.932 to 367.974 shall not be construed to apply to contracts for funeral service or merchandise sold as preneed and burial insurance policies which are regulated by the Department of Insurance of this state.

Effective: July 15, 2026

History: Amended 2026 Ky. Acts ch. 88, sec. 2, effective July 15, 2026. -- Amended 2010 Ky. Acts ch. 24, sec. 1918, effective July 15, 2010. -- Amended 2006 Ky. Acts ch. 102, sec. 1, effective July 12, 2006. -- Amended 1996 Ky. Acts ch. 275, sec. 1, effective July 15, 1996. -- Repealed, reenacted, and amended as KRS 367.934, 1984 Ky. Acts ch. 116, sec. 2, effective July 13, 1984. -- Created 1966 Ky. Acts ch. 12, sec. 2. Formerly codified as KRS 316.320.

Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 88, sec. 4, provides that the amendments to this statute in that Act apply to contracts entered into on or after July 15, 2026.

367.935 Administrative fee.

(1) An agent that guarantees a price for all merchandise and full performance of all services to be provided pursuant to a preneed burial contract may collect an administrative fee not to exceed fifteen percent (15%) of the total amount of all payments to be paid under the contract.

(2) An administrative fee imposed under subsection (1) of this section shall not be collected:

(a) More than once for each executed preneed burial contract regardless of whether the contract is transferred to a successor entity; or

(b) If the amount to be paid by the purchaser will be paid in installments, until all installments have been paid.

Effective: July 15, 2026

History: Created 2026 Ky. Acts ch. 88, sec. 1, effective July 15, 2026.

Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 88, sec. 4, provides that Section 1 of that Act, which created this statute, applies to contracts entered into on or after July 15, 2026.

367.936 Refund to persons making payments.

(1) (a) Upon the giving of fifteen (15) days' written notice, sent to the agent and the trustee, any person, partnership, or corporation who has paid funds for a preneed funeral service may demand a refund of the entire amount actually paid, excluding an administrative fee imposed on a fully paid contract in accordance with KRS 367.935, together with all interest, dividends, increases, or accretions, of any kind whatsoever, which have been earned on such funds.

(b) 1. If the trustee is unknown, the written notice sent to the agent shall constitute compliance with this subsection.

Upon receipt of notice, the agent shall immediately forward notice to the trustee.

(2) (a) The financial institutions shall be relieved from further liability, after making payment to the person making payment of said funds, to the agent upon receipt of the foregoing written notice.

(b) Notice of payment of funds under this section shall be given by the financial institution to the agent.

(3) The trustee may rely upon all certifications and affidavits made pursuant to or required by the provisions of KRS 367.932 to 367.974 and 367.991, and shall not be liable to any person for such reliance.

Effective: July 15, 2026

History: Amended 2026 Ky. Acts ch. 88, sec. 3, effective July 15, 2026. -- Repealed, reenacted, and amended as KRS 367.936, 1984 Ky. Acts ch. 116, sec. 3, effective July 13, 1984. -- Created 1966 Ky. Acts ch. 12, sec. 3. Formerly codified as KRS 316.330.

Legislative Research Commission Note (7/15/2026). 2026 Ky. Acts ch. 88, sec. 4, provides that the amendments to this statute in that Act apply to contracts entered into on or after July 15, 2026.

367.937 Permissibility of irrevocable trust provision -- Effect on determining eligibility for entitlement programs -- Required form for application.

(1) Notwithstanding the provisions of KRS 367.936 to the contrary, an agreement, contract, or plan may provide that the trust shall be irrevocable during the lifetime of the beneficiary or grantor, if at the time of the signing of an agreement, contract, or plan or at any time thereafter, the beneficiary or grantor of the trust is, becomes, applies, or intends to apply to be an aged, blind, or disabled recipient of benefits pursuant to the federal Supplemental Security Income program under Title XVI of the Social Security Act or any other federal or state entitlement program. Funds irrevocably set aside for burial reserves, burial spaces, or other funds for funeral and burial expenses, including interest thereon shall be excluded as a financial resource in determining the beneficiary's or grantor's eligibility under any federal or state entitlement program as long as exclusion is not prohibited by any federal law or regulation governing the entitlement program.

(2) An application for an irrevocable trust shall be on a form developed by the Attorney General, which shall require proof that the beneficiary or grantor has received, applied for, or intends to apply for entitlement benefits within thirty (30) days of the signing of the agreement, contract, or plan. The form showing proof shall thereafter be maintained in the files of the agent.

(3) If, for any reason, a beneficiary or grantor of the trust fails to apply for entitlement benefits within thirty (30) days of his written intention to do so, fails to receive, or otherwise becomes ineligible for entitlement benefits, then the trust shall be a revocable trust.

(4) An irrevocable trust established pursuant to this section shall not affect the selection of funeral goods or services or the selection of the funeral home. At any time the beneficiary or grantor of the trust may, by written request to the agent and trustee, change the agent, trustee, or both.

(5) All agreements, contracts, or plans entered into prior to the enactment of this statute may be made irrevocable pursuant to the provisions of this section upon written application to the agent.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 75, sec. 1, effective July 14, 1992.

367.938 Trust funds, how kept and deposited -- Separate accounting record for each contract.

(1) All trust funds mentioned in KRS 367.932 to 367.974 and 367.991 shall be deposited in the name of the agent, with the financial institution, as trustee, within thirty (30) days after receipt thereof, with a bank or trust company or invested in a savings and loan association and shall be held together with the interest, dividends, or accretions thereon, in trust, subject to the provisions of KRS 367.932 to 367.974 and 367.991. The agent at the time of making deposit or investment shall furnish to the financial institution the name of each payor, and the amount of payment on each account for which the deposit or investment is being made.

(2) Deposits to such funds and the amounts deposited may be commingled, but the accounting records shall establish a separate account for each prepaid contract and shall show amounts deposited and the income and loss occurring thereon with respect to each contract.

Effective: July 13, 1984

History: Repealed, reenacted, and amended as KRS 367.938, 1984 Ky. Acts ch. 116, sec. 4, effective July 13, 1984. -- Created 1966 Ky. Acts ch. 12, sec. 4. Formerly codified as KRS 316.340.

367.940 License as agent required -- Fee -- Service charge -- Annual report to Attorney General -- Report not available to general public.

(1) Every person, firm, partnership, association, or corporation shall obtain an agent license from the Attorney General at least thirty (30) days prior to offering for sale any preneed burial contract or accepting any moneys on preneed burial contracts. An application for license shall contain at least the following: The full name and address (both residence and place of business) of the applicant, and every member, officer, and director thereof if the applicant is a firm, partnership, association, or corporation. Any license issued pursuant to the application shall be valid only at the address stated in the application for the applicant or at a new address approved by the Attorney General.

(2) Upon receipt of the application and payment of a license fee of fifty dollars ($50), the Attorney General shall issue a license unless he determines that the applicant has made false statements or representations in the application, or is insolvent, or has conducted, or is about to conduct his business in a fraudulent manner, or is not duly authorized to transact business in this state.

(3) Any person selling a preneed funeral service contract shall collect from each purchaser a service charge of five dollars ($5) made payable to the office of the Attorney General, and all of which fees so collected shall be remitted by the person collecting same to the Attorney General at least once each month, and such funds shall be used by the Attorney General in administering KRS 367.932 to 367.974 and 367.991.

(4) Every licensee shall file an annual report on a form provided by the Attorney General containing information as the Attorney General may require, but at least the following: an itemized list of all preneed burial contracts sold within the last twelve

(12) months, the moneys collected on said contracts, the total amount deposited in the preneed funeral trust fund account, and the location and account numbers of said trust funds. A ten dollar ($10) fee shall be paid to the office of the Attorney General by each licensee filing an annual report.

(5) Every such report shall be verified by the agent and shall be attested to by the accountant, auditor, or other person preparing the same.

(6) Such reports shall not be available to the general public and shall be used only for the lawful purpose of the Attorney General's office.

Effective: July 14, 1992

History: Amended 1992 Ky. Acts ch. 305, sec. 1, effective July 14, 1992. -- Repealed, reenacted, and amended as KRS 367.940, 1984 Ky. Acts ch. 116, sec. 5, effective July 13, 1984. -- Created 1966 Ky. Acts ch. 12, sec. 5. Formerly codified as KRS 316.350.

367.942 Records of licensee -- Examination by Attorney General.

(1) Every licensee shall keep and maintain adequate records including but not limited to the following:

(a) A cash receipts journal listing moneys received in chronological order, dates, and amounts received, and identification of the payor or purchaser;

(b) A cash disbursement journal containing the same information for moneys disbursed. If a separate bank account is kept exclusively for any such funds, the checkbook could be used as a cash disbursement journal;

(c) A "reconciliation" done at least once every twelve (12) months. The reconciliation shall indicate the beginning balance in the trust account, payments received during the period, interest earned during the period, disbursements on either cancellation or the death of the beneficiary, and the ending balance for the period. The ending balance for each period is determined as follows: Beginning Balance + Payments received + Interest - Disbursements Ending Balance;

(d) Documentation files supporting the reconciliation and containing the preneed burial contract. Each file, consisting of a separate file for each contract, should include the name and address of the purchaser, the beneficiary, and the financial institution in which the trust funds were deposited. Passbooks, certificates, and other evidence of the account with the financial institution should be kept with the individual files, depending on the safety and security of the files; and

(e) A certified copy of a verification of death, issued by the state registrar of the Vital Statistics Branch or its successor agency as authorized by KRS Chapter 213, or a provisional certificate of death as described in KRS 213.076, upon the death of each person for whose service funds were paid to the licensee by the trustee under a preneed burial contract.

(2) All sales, trust fund, and accounting records of the agent licensee shall be readily available at the agent's principal place of business in this state at reasonable times for examination by an authorized representative of the Attorney General's office.

(3) The necessary expenses of any examination made pursuant to this section shall be paid by the licensee, but in no case shall the Attorney General or his or her authorized representatives be paid more than the actual expenses of such examination not to exceed the lesser of the following amounts: one hundred dollars ($100) per day for each auditor or five dollars ($5) for each agent's sales contract examined. The agent may pay for this expense using interest moneys which have accrued on the agent's existing preneed funeral trust fund accounts. Any withdrawal of interest for this purpose shall be taken as a pro rata share of all of the agent's existing preneed funeral trust fund accounts. The Attorney General shall be advised in writing by the agent when interest moneys is the source of payment and shall receive written certification from the financial institution or agent that the withdrawal was a pro rata share.

(4) This section shall apply to examinations of all preneed funeral contracts whether entered into prior to or after July 13, 1984.

Effective: July 12, 2006

History: Amended 2006 Ky. Acts ch. 102, sec. 2, effective July 12, 2006. -- Amended 1992 Ky. Acts ch. 305, sec. 2, effective July 14, 1992. -- Created 1984 Ky. Acts ch. 116, sec. 6, effective July 13, 1984.

367.944 Attorney General may hire independent auditor -- Cost incurred to be included in court costs.

(1) The Attorney General's office may hire a special independent auditor of choice to do a complete audit of books as to contracts entered into both prior to and after July 13, 1984, to determine compliance with the preneed funeral laws, if the Attorney General determines any discrepancy as a result of an examination by his office.

(2) In any action brought under this chapter in which the Commonwealth prevails, the court shall award cost incurred by the Attorney General for the special independent auditor.

Effective: July 13, 1984

History: Created 1984 Ky. Acts ch. 116, sec. 7, effective July 13, 1984.

367.946 Registration of person selling cemetery merchandise and every cemetery company -- Fee -- Annual report.

(1) Every person engaged in the sale of any preneed cemetery merchandise contract and cemetery company, hereinafter referred to as registrants, shall register with the Attorney General at least thirty (30) days prior to commencing to do business. Such registration shall be on forms provided by the Attorney General and shall contain at least the following information.

(a) The name and location of the cemetery;

(b) The size and type;

(d) Identification, location, and total amounts deposited in the perpetual care and merchandise trust funds;

(e) Types of services and merchandise sold and whether at need or preneed.

(2) Every registrant shall, within sixty (60) days of any material change of any item required to be reported hereunder, notify the department of such change.

(3) Every registrant shall pay a filing fee of fifty dollars ($50) with its application.

(4) Every registrant shall file an annual report on a form provided by the Attorney General containing information as the Attorney General may reasonably require, but at least the following:

(a) The total amount deposited in the perpetual care and maintenance trust fund, and a listing of the total number of grave spaces, underground crypts, mausoleums, and niches sold within the last twelve (12) months and the gross selling price of each;

(b) The total amount deposited in the cemetery merchandise trust fund account, and a listing of the total number of the different cemetery merchandise sold within the last twelve (12) months and the retail selling price of each; and

(c) The total amount deposited in the preconstruction trust fund accounts, and a listing of the total number of mausoleum crypts, niches, and underground crypts sold within the last twelve (12) months and the retail selling price of each and current balance.

(5) Every such report shall be verified by the registrant and shall be attested to by any other person preparing the same.

(6) Such reports shall not be available to the general public and shall be used only for the lawful purpose of the Attorney General's office.

(7) A ten dollar ($10) fee shall be paid to the office of the Attorney General by each registrant filing an annual report.

Effective: July 14, 1992

History: Amended 1992 Ky. Acts ch. 305, sec. 3, effective July 14, 1992. -- Repealed, reenacted, and amended as KRS 367.946, 1984 Ky. Acts ch. 116, sec. 10, effective July 13, 1984. -- Created 1976 Ky. Acts ch. 294, sec. 3. Formerly codified as KRS 307.110.

367.948 Records of registrants.

Every registrant shall keep and maintain adequate records, including, but not limited to, the following:

(1) A cash receipts journal, or its equivalent, listing moneys received in chronological order. The journal shall contain dates of all such moneys received, amounts received, and identification of the purchasers;

(2) A cash disbursement journal, or its equivalent, containing the same information as required by subsection (1) of this section for moneys disbursed; if a separate bank account is kept exclusively for any such funds, the checkbook could be used as a cash disbursement journal;

(3) A "reconciliation" done at least once every twelve (12) months. The reconciliation shall indicate the beginning balance in the trust account, payments received during the period, interest earned during the period, disbursements during the period, and the ending balance for the period. The ending balance for each period is determined as follows: Beginning balance + Payments received + Interest - Disbursements Ending Balance

(4) All contracts, sales, trust fund, and accounting records of the registrant shall be readily available at the registrant's principal place of business in this state at reasonable times for examination by an authorized representative of the Attorney General's office;

(5) (a) The necessary expenses of any reasonable examination made pursuant to this section shall be paid by the registrant; but in no case shall the Attorney General or his authorized representatives be paid more than the actual expenses of such examination, not to exceed the lesser of the following amounts: one hundred dollars ($100) per day for each auditor or five dollars ($5) for each registrant's sales contract examined. In any event, the cost of such examination shall not exceed a total of one thousand two hundred fifty dollars ($1,250) during any twelve (12) month period;

(b) The registrant may pay for this expense using interest moneys which have accrued on the registrant's existing cemetery merchandise trust fund accounts or preconstruction trust fund account or perpetual care account. Any withdrawal of interest for this purpose shall be taken as a pro rata share of all of the trust fund accounts. The Attorney General shall be advised in writing by the registrant when interest moneys are the source of payment and shall receive written certification from the financial institution or registrant that the withdrawal was a pro rata share;

(6) This section shall apply to examinations of all registrant's contracts.

Effective: July 14, 1992

History: Amended 1992 Ky. Acts ch. 305, sec. 4, effective July 14, 1992. -- Created 1984 Ky. Acts ch. 116, sec. 11, effective July 13, 1984.

367.950 Audit by special auditor hired by Attorney General -- Cost of audit to be taxed as court costs.

If the Attorney General determines any discrepancy as a result of his examination, the Attorney General's office may hire a special independent auditor of choice to do a complete audit of books, both as to contracts entered into prior to and after July 13, 1984, to determine compliance with the cemetery laws; in any action brought under this chapter in which the Commonwealth prevails, the court shall award costs incurred by the Attorney General for the special independent auditor.

Effective: July 13, 1984

History: Created 1984 Ky. Acts ch. 116, sec. 12, effective July 13, 1984.

367.952 Perpetual care and maintenance -- Creation of funds by cemetery companies -- Required payments -- Local government exemption -- Termination, distribution, and use of funds in local government trust fund.

(1) Every seller of the items described in subsection (2)(a) of this section shall first provide for the future care and maintenance of such items, and to accomplish this purpose shall cause to be established in a financial institution authorized by law to administer trust funds, or in any other financially sound entity with the prior written approval of the Attorney General, an irrevocable trust fund to be known as a perpetual care and maintenance fund. The income of such funds shall be used solely for the general care, maintenance, and embellishment of the cemetery, except as otherwise provided herein.

(2) (a) Every seller of the items described in this paragraph shall place the following amounts into the perpetual care and maintenance fund of the cemetery in which the item is located within thirty (30) days after each calendar quarter of operations for each payment of each sale which occurs or contract of sale entered into after July 13, 1984:

Twenty percent (20%) of the gross selling price of each grave space, with a minimum of twenty dollars ($20) per grave space;
Underground crypt, five percent (5%) of the gross selling price with a minimum of twenty-five dollars ($25) per crypt;
Mausoleum crypt, five percent (5%) of the gross selling price with a minimum of fifty dollars ($50) per mausoleum crypt; and
Columbarium niche, ten percent (10%) of the gross selling price with a minimum of fifteen dollars ($15) per niche.

(b) For the purposes of this section, "gross selling price" shall not include interest, carrying charges or finance charges.

(c) Every cemetery company hereinafter established shall create and maintain a perpetual care and maintenance fund, depositing therein an initial deposit as listed below, and shall submit proof thereof to the Attorney General prior to the offering for sale of any burial rights. Any payment required under paragraph (a) of this subsection shall be credited against the initial deposit until the required sum has been reached:

In counties of fewer than 50,000 persons, $20,000;
In counties of 50,000 to 99,999 persons, $30,000;
In counties of 100,000 or more persons, $50,000.

(3) In the event that a purchaser is in default of a contract purchasing any of the items described in subsection (2)(a) of this section, the financial institution shall release to the depositor the funds, plus interest, deposited on behalf of the defaulted contract upon receiving from the depositor a sworn affidavit stating that the purchaser is in default of the contract, the date of the default, an explanation of the default and that the depositor mailed a copy of the affidavit to the purchaser's last known address at least thirty (30) days prior to said request for release.

(4) This section does not apply to any cemetery that is owned and operated by a local government. For the purposes of this section, "local government" means cities, counties, urban-county governments, charter county governments, consolidated local governments, and unified local governments.

(5) Any local government that has established a trust fund pursuant to subsection (1) of this section may petition the Circuit Court pursuant to KRS 386B.2-010 and 386B.2-030 for termination of the trust and distribution of the funds to the local government for use solely for the general care, maintenance, and embellishment of the cemetery.

(6) Any funds distributed to the local government pursuant to subsection (5) of this section shall be held separately from funds subject to the local government's general power of appropriation.

Effective: July 15, 2014

History: Amended 2014 Ky. Acts ch. 25, sec. 99, effective July 15, 2014. -- Amended 2008 Ky. Acts ch. 168, sec. 1, effective July 15, 2008. -- Repealed, reenacted, and amended as KRS 367.952, 1984 Ky. Acts ch. 116, sec. 13, effective July 13, 1984. -- Created 1976 Ky. Acts ch. 294, sec. 5. Formerly codified as KRS 307.130.

367.954 Forty percent of funds paid for cemetery merchandise to be held in trust for purchaser until delivery -- Bond in lieu of trust fund.

(1) Forty percent (40%), not including interest or finance charges, of all payments of money made to any person, partnership, association, or corporation upon any agreement or contract, or any series or combination of agreements or contracts, which has for a purpose the furnishing or delivery of cemetery merchandise, which within six (6) months of the date of the contract is not delivered by attachment to the realty and permanent installation or which is not stored in a bonded warehouse with the receipt of ownership issued by the manufacturer in the name of the purchaser and transmitted to the purchaser are held to be trust funds. The person, partnership, association, or corporation receiving the payments shall deposit forty percent (40%) of all payments received on a preneed cemetery merchandise contract in a trust fund account within six (6) months of the date of contract, and forty percent (40%) of all payments received thereafter on said contract shall be deposited in the trust fund account within thirty (30) days after each calendar quarter of operation. The trustee shall be the financial institution holding said funds. All of the interest, dividends, increases, or accretions of whatever nature earned by the funds deposited in a trust account shall remain with the principal of such account and become a part thereof, subject to all of the regulations concerning the principal of said fund herein contained.

(2) All trust funds mentioned in this section shall be deposited in the name of the person making said deposits, with the financial institution as trustee, and shall be held together with the interest, dividends, or accretions thereon, in trust, subject to the provisions of KRS 367.932 to 367.974 and 367.991. The person at the time of making deposit or investment shall furnish to the financial institution the name of each payor, and the amount of payment on each account for which the deposit or investment is being made.

(3) Forty percent (40%) of all payments, not including interest or finance charges, made under the agreement, contract, or plan are and shall remain trust funds with the financial institution, until the financial institution receives a sworn affidavit from the depositor stating one of the following:

(a) That the delivery of all merchandise by attachment to the realty, or permanent installation of the merchandise has been completed and that there has been full performance of all services called for by the agreement, contract or plan; or

(b) That there has been delivery of all of the merchandise called for by the agreement by storing the same in a bonded warehouse with the receipt of ownership issued by the manufacturer in the name of the purchaser and transmitted to the purchaser. Upon receiving said affidavit, the financial institution shall remit the funds on deposit for the performed contract, plus interest, to the depositor. Release of funds may also be made pursuant to a request for a refund or cancellation under KRS 367.932 to 367.974 and 367.991.

(4) In the event that a purchaser is in default of a preneed cemetery merchandise contract, the financial institution shall release to the depositor the funds, plus interest, deposited on behalf of the defaulted contract upon receiving from the depositor a sworn affidavit stating that the purchaser is in default of the preneed cemetery merchandise agreement, the date of the default, an explanation of the default, and that the depositor has mailed a copy of the affidavit to the purchaser's last known address at least thirty (30) days prior to said request for release.

(5) Deposits to such funds and the amounts deposited may be commingled, but the accounting records shall establish a separate account for each prepaid contract and shall show amounts deposited and the income and loss occurring thereon with respect to each contract.

(6) The trustee may rely upon all certifications and affidavits made pursuant to or required by the provisions of KRS 367.932 to 367.974 and 367.991, and shall not be liable to any person for such reliance.

(7) In lieu of the trust fund deposits required herein, the person may post with the Attorney General's Office of Consumer Protection, a good and sufficient bond by a surety company licensed to do business in Kentucky and in an amount sufficient to cover all payments made by or on account of purchasers who have not received the purchased property and services. This bond shall be held for the benefit of a purchaser, or his or her heir or assign or duly authorized representative, who suffers a loss of money paid pursuant to a preneed cemetery merchandise contract entered into after July 13, 1984, due to the insolvency of the registrant, or failure to provide the cemetery merchandise called for by contract that has been paid in full and not provided after a ninety (90) day request in writing to do so. If a bond is posted, the Attorney General's office shall receive sixty (60) days' written notice in the event of cancellation. On or before the cancellation date, the person shall comply with the trust fund requirements herein or post another good and sufficient bond.

(8) Any person selling a preneed cemetery merchandise contract shall pay to the Attorney General five dollars ($5), for each said contract entered into and all of which fees shall be remitted by the person collecting them to the Attorney General at least once each month, and such funds shall be used by the Attorney General in administering this chapter.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 28, effective April 5, 2024. -- Created 1984 Ky. Acts ch. 116, sec. 14, effective July 13, 1984.

367.956 Return of deposits, plus income thereon, in cases of default on part of seller.

(1) If for any reason a person who has entered into a contract for the sale of cemetery merchandise which is paid in full and has made deposits to the trust fund herein required to be made cannot or does not provide the cemetery merchandise called for by the contract after a ninety (90) day request in writing to do so, the purchaser or his heirs or assigns or duly authorized representatives shall be entitled to receive the following: the deposit to the credit of that particular contract, all income those funds have earned; and from the cemetery, the remainder, if any, of the purchase price paid.

(2) Written instructions to the trustee to refund the amount of money on deposit, or an affidavit by either the purchaser or one (1) of his heirs or assigns or duly authorized representative, stating that the cemetery merchandise contract is paid in full and after a written request the merchandise was not provided, shall be sufficient authority for the trustee to make refund of the deposit moneys to the person submitting the affidavit. The trustee shall not be held responsible for any such refunds made on account of the person's written direction or an affidavit submitted in accord with this section. However, nothing herein contained shall relieve any person from any liability for nonperformance of the contract terms. Except, however, in the event such person cannot deliver the cemetery merchandise sold because of a national emergency, the provision of this section shall not apply.

Effective: July 15, 1986

History: Amended 1986 Ky. Acts ch. 331, sec. 50, effective July 15, 1986. -- Created 1984 Ky. Acts ch. 116, se. 15, effective July 13, 1984.

367.958 Sale of mausoleum or underground crypts or columbaria.

(1) Every person before engaging in a sale, contract for sale, reservation for sale or agreement for sale of a mausoleum crypt within a mausoleum, underground crypt within a crypt section, or columbarium niche within a mausoleum prior to the completion of the construction thereof, shall give notice in writing to the Attorney General of the commencement of such sale at least thirty (30) days prior thereto and register with the Attorney General. Such registration shall be on forms provided by the Attorney General.

(2) Every person engaged in the sale of a mausoleum crypt, underground crypt or columbarium niche shall commence construction thereof within twenty-four (24) months of the date of such sale and shall complete such construction within sixty

(60) months of the date of such sale. A delay caused by strike, national emergency, shortage of materials, civil disorder, natural disaster or any like occurrence beyond the control of such person shall extend the time of such commencement and completion by the length of such delay. This subsection shall not apply to the sale of mausoleum crypts, underground crypts or columbarium niches if there has been any sale in the same project prior to July 13, 1984. Prior projects shall have commenced construction thereof within thirty-six (36) months of the date of such sale and shall complete construction within seventy-two (72) months of the date of such sale.

(3) Every person who plans to offer for sale space in a section of a mausoleum or bank of underground crypts prior to its construction shall establish a preconstruction trust account. The trust account shall be administered and operated in the same manner as the merchandise trust account provided for in this chapter and shall be exclusive of the merchandise trust account or such other trust accounts or funds that may be required by law.

(4) Every person shall place thirty-six percent (36%), not including interest or finance charges, of all payments of money made to any person pursuant to any agreement, contract or any series or combination of agreements or contracts which are for the purchase of sections in a mausoleum, columbarium, or any kind of underground crypt which at the time of the payment of money have not been completely and totally constructed, in a trust fund account in a financial institution within thirty

(30) days after each calendar quarter of operations. Excepted therefrom, however, are persons who have constructed in the past their own mausoleum using primarily equipment owned by the self-constructing person and their own personnel with a minimum of subcontracting, and in that event there shall be deposited a minimum of twenty percent (20%) of all payments of money, subject, however, to the actual

cost. If, from project to project, their actual cost is in excess of twenty percent (20%), the full cost percentage shall be deposited from project to project, not to exceed thirty-six percent (36%). At the time of notification to the Attorney General's office the self-constructing mausoleum person shall also notify the Attorney General that he intends to self-construct and the percentage of contribution of trust that is required.

(5) All trust funds mentioned in this section shall be deposited in the name of the person depositing said funds, with the financial institution as trustee, and shall be held together with the interest, dividends, or accretions thereon, in trust, subject to the provisions of KRS 367.932 to 367.974 and 367.991. The person at the time of making deposit or investment shall furnish to the financial institution the name of each payor, and the amount of payment on each account for which the deposit or investment is being made.

(6) Deposits to such funds and the amounts deposited may be commingled, but the accounting records shall establish a separate account for each prepaid contract and shall show amounts deposited and the income and loss occurring thereon with respect to each contract.

(7) All payments made to the preconstruction trust fund account shall remain in the trust fund with the financial institution until the financial institution receives a certified statement from the depositor stating that the particular project for which the preconstruction trust fund has been established is totally completed. During the construction stage, trust funds may be withdrawn by presenting the trustee with appropriate evidence of expenditure for construction cost. The trustee shall thereupon disburse moneys from the trust fund to pay for the expenses of construction presented for payment.

(8) A trustee may rely upon all certifications and affidavits made pursuant to or required by the provisions of KRS 367.932 to 367.974 and 367.991, and shall not be liable to any person for such reliance.

(9) If a mausoleum section or bank of underground crypts is not completed within the time limits set out in KRS 367.932 to 367.974 and 367.991, the financial institution acting as trustee, if any, may contract for and cause said project to be completed and paid therefor from the trust account funds deposited to the project's account, paying any balance, less cost and expenses, to the depositor. In the event there is no corporate trustee, or the trustee chooses not to serve in the capacity to complete construction, the Attorney General shall appoint a committee to serve as trustees to trust account funds deposited to the project's account, paying any balance, less cost and expenses, to the cemetery company.

(10) If it is determined by the trustee after the expiration of the time of construction set out above that there is not enough money in the trust fund account to complete the project, the trustee shall make a refund of all moneys held to all purchasers, or his heirs or assigns, in the amount of the deposit to the credit of their particular contract and all income those funds have earned. The purchasers shall be entitled to receive any remainder of the purchase price paid from the depositor. However, nothing herein contained shall relieve any person from any liability for nonperformance of the contract terms.

(11) If temporary entombment or inurnment is not used, upon written notification to the seller, the personal representative or any purchaser of such space who dies before completion of construction shall be entitled to a refund of all moneys paid into the preconstruction trust fund for such space, including any income earned thereon, and from the seller, the remainder of the purchase price paid.

(12) In lieu of the trust fund deposits required herein, the person may post with the Attorney General's Office of Consumer Protection, a good and sufficient bond by a surety company licensed to do business in Kentucky and in an amount sufficient to cover all payments made by or on account of purchasers who have not received the purchased property and services. This bond shall be held for the benefit of any purchaser, or his or her heir or assign or duly authorized representative, who suffers a loss of money paid for a preconstructed mausoleum crypt or niche or underground crypt after July 13, 1984, due to the insolvency of the registrant, or failure to construct within the time limits set out herein. If a bond is posted, the Attorney General's office shall receive sixty (60) days' written notice in the event of cancellation. On or before the cancellation date, the person shall comply with the trust fund requirements herein or post another good and sufficient bond.

(13) Any person selling preconstruction mausoleum, columbarium, or underground crypt contracts shall pay to the Attorney General five dollars ($5) for each sale of said contract and all of which fees shall be remitted by the person collecting them to the Attorney General at least once each month, and such funds shall be used by the Attorney General in administering this chapter.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 29, effective April 5, 2024. -- Repealed, reenacted, and amended as KRS 367.958, 1984 Ky. Acts ch. 116, sec. 16, effective July 13, 1984. -- Created 1976 Ky. Acts ch. 294, sec. 9. Formerly codified as KRS 307.170.

367.960 Temporary facilities.

Every cemetery company offering for sale any mausoleum crypt, underground crypt or columbarium niche shall provide facilities for temporary entombment or inurnment at the cemetery in which the crypt or niche purchased is to be located.

Effective: July 13, 1984

History: Repealed, reenacted, and amended as KRS 367.960, 1984 Ky. Acts ch. 116, sec. 17, effective July 13, 1984. -- Created 1976 Ky. Acts ch. 294, sec. 10. Formerly codified as KRS 307.180.

367.962 Allocation of payments -- Increase of gross sale price prohibited.

(1) Whenever any contract for sale shall be entered into in which items of cemetery merchandise and rights to interment, inurnment or entombment are included, without allocation of the gross sale price among the items sold, the application of payments received under the contract shall be allocated, first to the right to interment, inurnment or entombment, second to items of cemetery merchandise relating to memorialization and third, to items relating to the disposition of the remains of a dead human being, including preneed funeral merchandise and services, unless some other allocation is clearly provided in the contract.

(2) Any person engaging in a combination sale which involves the sale of any item in addition to the sale of cemetery merchandise or a combination sale which involves the sale of any item in addition to the sale of rights to interment, inurnment or entombment shall be prohibited from increasing the gross sales price of those items which require the lesser trust fund deposit with the purpose of allocating a lesser gross sales price to items which require a higher trust fund requirement.

Effective: July 13, 1984

History: Repealed, reenacted, and amended as KRS 367.962, 1984 Ky. Acts ch. 116, Ky. Acts ch. 18, effective July 13, 1984. -- Created 1976 Ky. Acts ch. 294, sec. 8. Formerly codified as KRS 307.160.

367.964 Consumer security account.

(1) Any person selling preneed cemetery merchandise contracts or preconstruction mausoleums, columbarium or underground crypt contracts shall pay to the Attorney General five dollars ($5) for each said contract entered into of which the gross sales price as defined in KRS 367.932 to 367.974 and 367.991 is five hundred dollars ($500) or less and ten dollars ($10) for each said contract entered into of which the gross sales price is over five hundred dollars ($500), to be paid into a special income earning account known as "Consumer security account." The above said fees shall be remitted to the Attorney General at least once each month.

(2) The funds in said account shall be used solely for the purpose of providing restitution to consumers who have suffered pecuniary loss in the purchase of a preneed cemetery merchandise contract or a preconstruction mausoleum, columbarium or underground crypt contract. The fund shall be applied only to restitution that is ordered by Circuit Court in a lawsuit brought under KRS 367.932 to 367.974 and 367.991 by the Attorney General and which is determined by the Attorney General to be noncollectible from the judgment debtor.

(3) Whenever restitution is paid by the fund, the fund shall be subrogated to the amount of such restitution, and the Attorney General shall engage in all reasonable post judgment collection steps to collect said restitution from the judgment debtor and reimburse the fund.

(4) The fund shall not be applied toward any restitution for losses in any lawsuit initiated by the Attorney General prior to July 13, 1984.

(5) Notwithstanding any other provision of this section, the payment of restitution from the fund shall be a matter of grace and not of right and no person shall have any vested rights in the fund as a beneficiary or otherwise.

Effective: July 13, 1984

History: Created 1984 Ky. Acts ch. 116, sec. 19, effective July 13, 1984.

367.966 Contract waiving statutory provisions null and void.

Any provision of a contract which purports to waive any provision of KRS 367.932 to 367.974 and 367.991 shall be null and void.

Effective: July 13, 1984

History: Created 1984 Ky. Acts ch. 116, secs. 8 and 20, effective July 13, 1984.

367.968 Liability of officers, owners, directors and shareholders of companies subject to KRS 367.932 to 367.974 and 367.991.

(1) Officers, owners, directors and shareholders of companies subject to the provisions of KRS 367.932 to 367.974 and 367.991 who knew of failure to comply with any of the trust provisions of KRS 367.932 to 367.974 and 367.991 and who fail to take prompt and reasonable actions to correct, including notification to the Attorney General's office, shall be personally liable, jointly and severally, for the deficiency existing in the trust funds and for any other civil remedy allowed by law.

(2) In addition to the liabilities declared, the person who brings suit and recovers from an owner, officer, director, or shareholder of a company, shall also recover his reasonable attorney's fees, the amount to be fixed and adjudged by the court before whom the case is tried.

Effective: July 13, 1984

History: Created 1984 Ky. Acts ch. 116, sec. 21, effective July 13, 1984.

367.970 Ninety-day completion date on installing foundations -- Excusable delay.

Any cemetery company that receives a foundation order shall complete the foundation installation within ninety (90) days, without discrimination, providing, however, that any delay caused by inclement weather, strike, shortage of materials, civil disorder, natural disaster or any like occurrence beyond the control of such person shall extend the time of such completion by the length of such delay.

Effective: July 13, 1984

History: Created 1984 Ky. Acts ch. 116, sec. 22, effective July 13, 1984.

367.972 Powers of Attorney General.

(1) All of the remedies, powers, and the duties provided for the Attorney General by KRS 367.190 to 367.300 and KRS 367.990 pertaining to acts declared unlawful by KRS 367.170 shall apply with equal force and effect to acts declared unlawful by KRS 367.932 to 367.974 and KRS 367.991 and the preneed funeral laws existing prior to KRS 367.932 to 367.974 and KRS 367.991.

(2) Nothing in KRS 367.932 to 367.974 and KRS 367.991 shall be construed to limit or restrict the exercise of powers or the performance of the duties of the Attorney General which he is authorized to exercise or perform under any other provision of law including direct court action to obtain injunctive relief and revocation of license. The Attorney General has the power to establish such rules and regulations as are necessary to carry out these provisions.

Effective: July 14, 1992

History: Amended 1992 Ky. Acts ch. 305, sec. 6. effective July 14, 1992. -- Created 1984 Ky. Acts ch. 116, sec. 23, effective July 13, 1984.

Legislative Research Commission Note (1984) In subsection (1) of this section the words "and the cemetery laws" were inadvertently omitted following the words "the preneed funeral laws."

367.973 Disciplinary powers of Attorney General -- Hearing -- Appeal.

(1) The Attorney General may deny, suspend, or revoke any license granted under KRS 367.940 or levy civil penalties not to exceed five hundred dollars ($500) or both or place the licensee on probation for up to twelve (12) months for any of the following causes:

(a) Obtaining a license through false statement or misrepresentation;

(b) Conducting, or undertaking a substantial step toward conducting his business in an unfair, false, misleading, or deceptive manner;

(c) Entry of a final civil judgment against the licensee for a violation of KRS 367.934 to 367.974, or for entry of a final judgment of conviction for a violation of KRS 367.991;

(d) Entry of a final judgment of conviction against the licensee for any crime involving moral turpitude; or

(e) Violating any of the provisions of KRS 367.932 to 367.974 or any lawful order or administrative regulation made or promulgated under KRS 367.932 to 367.974.

(2) The Attorney General shall, before denying, suspending, or revoking a license or imposing fines, file a complaint alleging the grounds upon which the licensee may have his license denied, revoked, or suspended or have fines imposed. A copy of the complaint, together with any exhibits, shall be served upon the defendant licensee at the licensee's last known address. The complainant shall show certification that there has been service by writing to the last known address. The answer shall be returned to the Attorney General's office within twenty (20) days of receipt of the complaint by the defendant licensee. Upon receipt of an answer to a complaint, an administrative hearing shall be conducted in accordance with KRS Chapter 13B.

(3) Any person aggrieved by a final order issued under authority of this section shall have the right of an appeal by filing a petition with the Franklin Circuit Court in accordance with KRS Chapter 13B.

Effective: July 15, 1996

History: Amended 1996 Ky. Acts ch. 318, sec. 351, effective July 15, 1996. -- Created 1992 Ky. Acts ch. 305, sec. 5, effective July 14, 1992.

367.974 Disposition of fees collected under KRS 367.932 to 367.972.

All fees and charges collected and paid into the State Treasury under the provisions of KRS 367.932 to 367.972 shall be credited to a revolving trust or agency fund account for the Attorney General and shall be used for the administration of KRS 367.932 to 367.972. This section does not apply to the consumer security account.

Effective: July 13, 1984

History: Created 1984 Ky. Acts ch. 116, sec. 26, effective July 13, 1984.

Crematoria and Crematory Operators Crematoria and Crematory Operators

367.97501 Definitions for KRS 367.97501 to 367.97537.

As used in KRS 367.97501 to 367.97537, unless the context requires otherwise:

(1) "Authorizing agent" means the person legally entitled to order the cremation of the human remains.

(2) "Casket" means a rigid container which is designed for the encasement of human remains constructed of wood, metal, or other material.

(3) "Closed container" means a sealed container or urn in which cremated remains are placed and enclosed in a manner that prevents leakage or spillage of cremated remains or the entrance of foreign material.

(4) "Cremated remains" means the fragments remaining after the cremation process has been completed.

(5) "Cremation" means the heating process that reduces human remains to bone fragments through combustion and evaporation.

(6) "Cremation authorization form" means a form promulgated by administrative regulation of the Attorney General that expresses consent to the decedent's cremation. The form shall include information concerning the parties' rights and responsibilities.

(7) "Cremation chamber" means an enclosed space designed and manufactured for the purpose of cremating human remains.

(8) "Cremation container" means a container in which human remains may be delivered to a crematory for cremation that is:

(a) Rigid enough to support the weight of the corpse, closed, and leakproof;

(b) Composed of a combustible material or other material approved by the crematory authority; and

(9) "Crematory authority" means the legal entity which is licensed by the Attorney General to operate a crematory and conduct cremations. Crematory authority does not include state university health science centers.

(10) "Crematory" means a fixed building or structure that contains one (1) or more cremation chambers for the reduction of bodies of deceased persons to cremated remains. "Crematory" includes crematorium.

(11) "Crematory operator" means the person in charge of a licensed crematory authority.

(12) "Declaration" has the same meaning as in KRS 367.93101.

(13) "Holding facility" means an area designated for the retention of human remains prior to cremation.

(14) "Human remains" means the body of a deceased person or part of a body or limb that has been removed from a living person, in any state of decomposition, prior to cremation.

(15) "Pathological waste" means human tissues, organs, and blood or body fluids, in liquid or semiliquid form that are removed from a person for medical purposes. "Pathological waste" does not include amputations or fetal remains as defined in KRS 213.098.

(16) "Processed remains" means the end result of pulverization, by which the residual from the cremation process is reduced and cleaned leaving only fragments reduced to unidentified dimensions.

(17) "Retort operator" means a person operating a cremation chamber.

(18) "Scattering area or garden" means an area which may be designated by a cemetery and located on a dedicated cemetery property where cremated remains which have been removed from their container can be mixed with or placed on top of the soil or ground cover.

(19) "Temporary container" means a receptacle for cremated remains, usually made of plastic, cardboard, ceramics, plastic film, wood, or metal, designed to prevent the leakage of processed remains or the entrance of foreign materials which will hold the cremated remains until an urn or other permanent container is acquired.

Effective:April 14, 2022

History: Amended 2022 Ky. Acts ch. 210, sec. 23, effective April 14, 2022. -- Amended 2016 Ky. Acts ch. 59, sec. 12, effective July 15, 2016. -- Created 1994 Ky. Acts ch. 140, sec. 1, effective July 15, 1994.

Legislative Research Commission Note (4/14/2022). This statute was amended by 2022 Ky. Acts ch. 210, sec. 23. Section 38 of that Act states, "Sections 1 to 31 of this Act may be cited as the Humanity in Healthcare Act of 2022."

367.97504 Crematory authority license -- Fees -- Operations procedures -- Records -- Annual report.

(1) Every crematory operator and every person, firm, partnership, association, and corporation desiring to operate a crematory authority shall obtain a crematory authority license from the Attorney General at least thirty (30) days prior to opening for the purpose of conducting cremations. Every crematory operator and every person, firm, partnership, association, and corporation in existence and unlicensed as of July 15, 1994, which conducts cremations shall apply for a crematory authority license from the Attorney General within one hundred eighty (180) days thereafter. The license shall be displayed in a conspicuous place in the crematory. Application for a license shall be made in writing on the form prescribed by the Attorney General by administrative regulation. The application shall be accompanied by a one (1) time fee of one hundred dollars ($100) and shall show that the applicant owns or is actively operating a crematory in this Commonwealth or that the applicant is in a position to commence operating a crematory. The fees from the application shall be placed in a trust and agency account to be used by the Attorney General for the administration of KRS 367.97501 to 367.97537.

(a) In addition to any other information required by the Attorney General, an application for a license shall contain the full name and address of the applicant and, in the case of a business entity, of every member, officer, and director. Any license issued pursuant to the application shall be valid only at the address stated in the application.

(b) Upon receipt of the application and the payment of the license fee the Attorney General shall issue a license unless he determines that the applicant:

Has made false statements or representations in the application;
Is insolvent, has conducted, is about to conduct business in a fraudulent manner; or
Is not duly authorized to transact business in this Commonwealth.

(2) Changes in the persons, firm, partnership, ownership, association, or corporate structure as originally named on the application for a crematory authority license renders the license void. The crematory authority shall file a new application before the changes shall be official.

(3) No crematory authority shall require that human remains be placed in a casket before cremation or that human remains be cremated in a casket, nor shall a crematory authority refuse to accept human remains for cremation because they are not in a casket. A crematory may require the cremation container not show evidence of leakage.

(4) It is unlawful for any licensee under this section to cremate the remains of anything other than dead human bodies, including pathological waste, in the same cremation chambers licensed under this section. This prohibition does not apply to a dead human fetus, which may be cremated.

(5) Each crematory authority shall maintain a record of each cremation of human remains, disclosing the name of the person cremated, the name of the person authorizing the cremation, the date the body was received, the date the cremation was performed, and any other information the Attorney General may require by administrative regulation. The records shall be kept at the crematory for a period of not less than ten (10) years for inspection by the Attorney General.

(6) Each crematory authority shall file annually with the Attorney General a report in the form prescribed by the Attorney General by administrative regulation. A ten dollar ($10) fee shall be paid to the Attorney General by each crematory authority filing an annual report. The fees from these reports shall be placed in a trust and agency account to be used by the Attorney General for the administration of KRS 367.97501 to 367.97537.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 140, sec. 2, effective July 15, 1994.

367.97507 Identification requirements.

(1) Materials identifying the human remains placed in the custody of a crematory authority shall contain the following information:

(a) Name of decedent;

(b) Date and time of death;

(d) Name and relationship of authorizing agent;

(e) Name of person engaging crematory services; and

(f) Signature of the person making the identification.

(2) Appropriate identification shall be placed upon the exterior of the cremation container.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 140, sec. 3, effective July 15, 1994.

367.97511 Holding restrictions.

(1) A crematory authority shall not accept human remains for cremation unless the human remains are contained within a closed cremation container.

(2) A crematory authority shall not accept for holding a cremation container from which there is any evidence of leakage of the body fluids from the human remains therein.

(3) Human remains that are not embalmed may not be held at a crematory that does not have a refrigerated holding facility.

(4) The crematory authority shall ensure that holding facilities are secure from access by anyone other than crematory authority personnel.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 140, sec. 4, effective July 15, 1994.

367.97514 Processing procedures and restrictions.

(1) The simultaneous cremation of the remains of more than one (1) individual within the same cremation chamber is specifically declared unlawful. The fact that incidental and unavoidable residue remains in the cremation chamber or other equipment or any container used in a prior cremation is not a violation of this section.

(2) No human remains delivered to a crematory shall be removed from the cremation container, and the cremation container shall be cremated with the human remains. The identification from the outside of the cremation container shall be removed and placed near the cremation chamber control panel where it shall remain in place until the cremation process is complete.

(3) A body shall not be cremated with a pacemaker or other potentially hazardous implant, including any toxic or explosive-type sealed implants, in place. If the authorizing agent is the decedent, the declarant shall disclose the existence of any pacemaker or other hazardous implants to the crematory authority, or in the event there is no declaration, then the next class of authorizing agent in the order set forth in KRS 367.97501(1) shall be responsible for disclosing the existence of any pacemaker or other hazardous implants to the crematory authority.

(4) No crematory authority or any person employed by or acting on behalf of a crematory authority shall remove or possess dental gold or dental silver from any human remains. The fact that there is incidental and unavoidable dental gold or dental silver remains in the cremation chamber, in other equipment, or in any container used in a prior cremation is not a violation of this section.

(5) The crematory or crematorium shall be secure from access by unauthorized persons.

(6) The crematory retort operator shall have at least forty eight (48) hours of on the job training supervised by the crematory operator, with verification of this training having been filed with the Attorney General.

Effective: July 15, 2016

History: Amended 2016 Ky. Acts ch. 59, sec. 13, effective July 15, 2016. -- Created 1994 Ky. Acts ch. 140, sec. 5, effective July 15, 1994.

367.97517 Disposition of cremated remains.

(1) Upon completion of the cremation, all residual of the cremation process shall be removed insofar as is possible, from the cremation chamber. The residual shall be placed within a container or tray that will ensure against commingling with other cremated remains; and the identification removed from the control panel area and attached to the container or tray to await final processing.

(2) The residual shall be manually cleaned of identifiable foreign objects, other than those used for identification, or as may be requested by the authorizing agent. The residual of the cremation process may undergo pulverization as a part of final processing.

(3) All body prosthesis, bridgework, or similar items removed from the cremated remains shall be disposed of by the crematory authority unless authority to do otherwise is specifically granted in writing.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 140, sec. 6, effective July 15, 1994.

367.97521 Closed container for cremated remains -- Temporary container.

(1) Cremated remains shall be placed in a closed container. Except for objects used for identification, cremated remains shall not be contaminated with foreign material unless specific authorization has been received.

(2) If cremated remains within the closed container do not adequately fill the container's interior dimensions, the extra space may be filled with appropriate filling material which shall not come in direct contact with the cremated remains; and the lid or top shall then be securely closed.

(3) If the entire processed remains do not fit within the dimensions of the designated receptacle, the remainder shall be returned in a separate container.

(4) When a temporary container is used, the outside of the container shall be clearly identified with the name of the deceased person whose cremated remains are contained therein.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 140, sec. 7, effective July 15, 1994.

367.97524 Cremation authorization form required -- Disposal or delivery of cremated remains -- Unclaimed cremated remains -- Limitation of liability.

(1) A crematory authority shall not conduct any cremations, nor accept a body for cremation, unless it has a cremation authorization form signed by the authorizing agent clearly stating the disposition to be made of the cremated remains.

(2) Cremated remains shall be disposed of by placing them in a grave, crypt, or niche; by scattering them in a scattering area; or in any manner on the private property of a consenting owner. The crematory authority or funeral director as defined in KRS 316.010 may deliver, either in person or by a method that has an internal tracking system that provides a receipt signed by the person accepting delivery, the cremated remains to the designated individual specified on the cremation authorization form. Upon receipt of the cremated remains, the individual receiving them may keep or transport them in any manner in this Commonwealth without a permit. After delivery, the crematory authority or funeral home shall be discharged from any legal obligation or liability concerning the cremated remains relative to disposition.

(3) If the cremated remains have remained unclaimed for a period of at least two (2) years, a funeral director may inter, bury, entomb, or place the cremated remains in a columbarium or may deliver the cremated remains to a bona fide religious society, veterans organization, or civic group in person or by a delivery method that utilizes an internal tracking system that provides a receipt signed by the individual accepting delivery, for the sole purpose of interment, burial, entombment, or placement in a columbarium. If such a delivery is made, the funeral director or crematory authority shall maintain records of the delivery for at least ten (10) years from the date of delivery.

(4) A crematory authority or a licensed funeral director arranging a cremation shall not be held liable for good faith reliance on representations made by the authorizing agent regarding the authority to cremate.

(5) A crematory authority or licensed funeral director shall not be held liable for delivering cremated remains that have been in their possession for two (2) years or more to a bona fide religious society, veterans group, or civic organization for the sole purpose of interment, burial, entombment, or placement in a columbarium.

Effective: June 27, 2019

History: Amended 2019 Ky. Acts ch. 98, sec. 1, effective June 27, 2019. -- Amended 2016 Ky. Acts ch. 59, sec. 14, effective July 15, 2016. -- Amended 2014 Ky. Acts ch. 37, sec. 1, effective July 15, 2014. -- Amended 2000 Ky. Acts ch. 171, sec. 1, effective July 14, 2000. -- Created 1994 Ky. Acts ch. 140, sec. 8, effective July 15, 1994.

367.97527 Funeral planning declaration directing cremation.

(1) A person may authorize his or her own cremation and the final disposition of his or her cremated remains, by executing a declaration. The original declaration directing cremation shall be retained by the entity with which the arrangements are made. A copy of the declaration shall be provided to the person signing the preneed arrangements. The person prearranging his own cremation shall have the right to transfer or cancel the declaration at any time prior to death, by notifying the entity with which the declaration is filed by certified mail.

(2) In the event that no different or inconsistent instructions are provided to the crematory authority at the time of death, the crematory authority shall release or dispose of the cremated remains as indicated in the cremation authorization or declaration.

(3) Neither the crematory authority nor a licensed funeral director arranging a cremation shall be held liable for the crematory authority's or the funeral director's good faith reliance on representations made by the declaration or authorizing agent regarding the authority or decision to cremate.

Effective: July 15, 2016

History: Amended 2016 Ky. Acts ch. 59, sec. 15, effective July 15, 2016. -- Amended 2000 Ky. Acts ch. 171, sec. 2, effective July 14, 2000. -- Created 1994 Ky. Acts ch. 140, sec. 9, effective July 15, 1994.

367.97531 Facsimile-transmitted cremation authorization form.

If the authorizing agent is not available in person to execute the cremation authorization form, then the authorizing agent may send the crematory a notarized facsimile transmission stating that the person is legally entitled to authorize the cremation and stating the name, address, and relationship of the sender to the decedent. The crematory authority may rely upon the facsimile-transmitted cremation authorization form to perform the cremation without liability. The facsimile-transmitted cremation authorization form shall be followed by the original delivered by certified mail.

Effective: July 15, 2016

History: Amended 2016 Ky. Acts ch. 59, sec. 16, effective July 15, 2016. -- Created 1994 Ky. Acts ch. 140, sec. 10, effective July 15, 1994.

367.97534 Denial, suspension, or revocation of license -- Hearing -- Appeal -- Availability of Consumer Protection Act remedies -- Authority of Attorney General under other laws and to promulgate administrative regulations.

(1) The Attorney General may deny, suspend, or revoke any license granted under KRS 367.97504 or levy civil penalties not to exceed five hundred dollars ($500), or both, or place the licensee on probation for up to twelve (12) months for any of the following causes:

(a) Obtaining a license through false statement or misrepresentation;

(b) Conducting or undertaking business in an unfair, false, misleading, or deceptive manner;

(d) Violating any of the provisions of KRS 367.97501 to 367.97537 or any administrative regulation promulgated or order made pursuant to KRS 367.97501 to 367.97537.

(2) The Attorney General shall, before denying, suspending, or revoking a license or imposing civil penalties, issue a complaint alleging the grounds upon which the licensee may have its license denied, revoked, or suspended, or have civil penalties imposed. A copy of the complaint, together with any exhibits, shall be served upon the defendant licensee at the licensee's last known address. The licensee shall file an answer with the Attorney General's office within twenty (20) days of receipt of the complaint. Upon receipt of an answer to a complaint, an administrative hearing shall be conducted in accordance with KRS Chapter 13B.

(3) Any party aggrieved by the final order of the Attorney General in denying, suspending, or revoking a license, or imposing civil penalties may appeal the final order to Franklin Circuit Court in accordance with KRS Chapter 13B.

(4) All of the remedies, powers, and duties provided for the Attorney General by KRS 376.190 to 367.300 and KRS 367.990 pertaining to acts declared unlawful by KRS 367.170 shall apply with equal force and effect to violations of KRS 367.97501 to 367.97537.

(5) Nothing in KRS 367.97501 to 367.97537 shall be construed to limit or restrict the exercise of powers or the performance of the duties of the Attorney General, which he is authorized to exercise or perform under any other provision of law including direct court action to obtain injunctive relief and revocation of license. The Attorney General has the authority to promulgate any administrative regulations necessary to carry out the provisions of KRS 367.97501 to 367.97537.

Effective: July 15, 1996

History: Amended 1996 Ky. Acts ch. 318, sec. 352, effective July 15, 1996. -- Created 1994 Ky. Acts ch. 140, sec. 11, effective July 15, 1994.

Legislative Research Commission Note (7/15/94, revised 7/15/96). The reference to "KRS 376.190 to 367.300" in subsection (4) of this statute is clearly erroneous. It would appear that "KRS 367.110 to 367.300," an established range of statutes, may have been intended. Subsection (4) was formerly subsection (7) of this statute. See 1996 Ky. Acts ch. 318, sec. 352.

367.97537 Crematory licensure and regulation fund.

There is hereby created a trust and agency account in the State Treasury to be known as the "Crematory Licensure and Regulation Fund," which shall consist of all moneys received from fees under KRS 367.97504, from civil penalties assessed under this section, and from earnings on investments of these fees and civil penalties. The funds in this account shall not lapse and shall be continuously appropriated to the Attorney General for the administration of KRS 367.97501 to 367.97537.

Effective: July 15, 1994

History: Created 1994 Ky. Acts ch. 140, sec. 12, effective July 15, 1994.

Rental-Purchase Agreements Rental-Purchase Agreements

367.976 Definitions for KRS 367.976 to 367.985.

As used in KRS 367.976 to 367.985:

(1) "Advertisement" means a commercial message in any medium that aids, promotes, or assists directly or indirectly a rental-purchase agreement, excluding in-store merchandising aids;

(2) "Cash price" means the price at which the lessor would have sold the property to the consumer for cash on the date of the rental-purchase agreement;

(3) "Consumer" means a natural person who rents personal property under a rental- purchase agreement;

(4) "Consummation" means the time a consumer becomes contractually obligated on a rental-purchase agreement;

(5) "Lessor" means a person who, in the ordinary course of business, regularly leases, offers to lease, or arranges for the leasing of property under a rental-purchase agreement;

(6) "Office" means the Office of Consumer Protection in the Office of the Attorney General; and

(7) (a) "Rental-purchase agreement" means an agreement for the use of personal property by a natural person primarily for personal, family, or household purposes, for an initial period of four (4) months or less, whether or not there is any obligation beyond the initial period, that is automatically renewable with each payment and that permits the consumer to become the owner of the property.

(b) The term rental-purchase agreement shall not be construed to be, nor be governed by, any of the following:

A lease or agreement which constitutes a credit sale as defined in 12 C.F.R. part 226.2(a)(16) and Section 1602(h) of the Truth in Lending Act, 15 U.S.C. sec. 1601 et seq.;
A lease which constitutes a consumer lease as defined in 12 C.F.R. part 213.2(e)(1);
Any lease for agricultural, business, or commercial purposes;
Any lease made to an organization;
A lease or agreement which constitutes a retail installment transaction or retail installment contract as defined in KRS 371.210;
A security interest as defined in KRS 355.1-201; or
A home solicitation sale as that term is defined in KRS 367.410.

Effective: January 1, 2025

History: Amended 2024 Ky. Acts ch. 10, sec. 111, effective January 1, 2025; and ch. 112, sec. 30, effective April 5, 2024. -- Created 1990 Ky. Acts ch. 196, sec. 1, effective July 13, 1990; and ch. 304, sec. 1, effective July 13, 1990.

Legislative Research Commission Note (1/1/2025). Under the authority of KRS 7.136, the reviser of statutes has rearranged the subsections in this statute to place the definitions in alphabetical order. The words in the statute were not changed.

Legislative Research Commission Note (1/1/2025). This statute was amended by 2024 Ky. Acts chs. 10 and 112, which do not appear to be in conflict and have been codified together.

Legislative Research Commission Note (7/13/90). This section was created by two separate 1990 Acts which are identical and have therefore been compiled together.

367.977 Necessary disclosures for rental-purchase agreement.

(1) For each rental-purchase agreement, the lessor shall disclose the following items as applicable:

(a) A brief description of the leased property, sufficient to identify the property to the consumer and lessor;

(b) The number, amount, and timing of all lease payments necessary to acquire ownership of the property;

(c) The maximum amount of all initial and periodic payments and other charges to acquire ownership of the property pursuant to the ownership provision of the rental-purchase agreement;

(d) A statement that the consumer will not own the property until the consumer has made the number of payments and the total of payments necessary to acquire ownership;

(e) A statement that the total of payments does not include other charges such as late payment, default, pickup, and reinstatement fees, and that the consumer should see the contract for an explanation of these charges;

(f) If applicable, a statement that the consumer is responsible for the fair market value of the property if it is lost, stolen, damaged, or destroyed;

(g) A statement indicating whether the property is new or used; however, a statement that indicates new property is used is not a violation of KRS 367.976 to 367.985;

(h) A statement of the cash price of the property. If the agreement involves a lease for five (5) or more items, a statement of the aggregate cash price of all items shall satisfy this requirement;

(i) The total of initial payments required to be paid before consummation of the agreement or delivery of the property, whichever is later;

(j) A statement clearly summarizing the terms of the consumer's options to purchase;

(k) A statement identifying the party responsible for maintaining or servicing the property while it is being leased, together with the description of that responsibility and a statement that, if any part of a manufacturer's express warranty covers the leased property at the time the consumer acquires ownership of the property, it will be transferred to the consumer, if allowed by the terms of the warranty; and

(l) The date of the transaction and the identities of the lessor and consumer.

(2) With respect to matters specifically governed by the Federal Consumer Credit Protection Act, compliance with that act shall satisfy the requirements of this section.

(3) Subsection (1) of this section shall not apply to a lessor who complies with the disclosure requirements of Section 182 of the Federal Consumer Credit Protection Act, 15 U.S.C.A. 1667a, 90 Stat. 250, with respect to a rental-purchase agreement entered into with a consumer.

Effective: July 13, 1990

History: Created 1990 Ky. Acts ch. 196, sec. 2, effective July 13, 1990; and ch. 304, sec. 2, effective July 13, 1990.

Legislative Research Commission Note (7/13/90). This section was created by two separate 1990 Acts which are identical and have therefore been compiled together.

367.978 Form of disclosures -- Receipts for payments made by cash or money order.

(1) The lessor shall disclose to the consumer the information required by KRS 367.976 to 367.985. In a transaction involving more than one (1) consumer, a lessor shall disclose only to one (1) of the consumers who are primarily obligated. In a transaction involving more than one (1) lessor, only one (1) lessor need make the required disclosures.

(2) The disclosures required under KRS 367.976 to 367.985 shall be made no later than the time the lessor delivers the merchandise to the consumer, or upon consummation of the rental-purchase agreement, whichever is earlier.

(3) The disclosures shall be made using words and phrases of common meaning in a form that the consumer may keep. The disclosures required under KRS 367.977 shall be made a part of the rental-purchase agreement or provided on a separate

form. The required disclosures shall be set forth clearly and conspicuously. The disclosures shall be placed all together, on the front side of the rental-purchase agreement or on a separate form. The form setting forth the required disclosures shall contain spaces for the consumer's signature and the date immediately below the disclosures. The requirements of this subsection shall not have been complied with unless the consumer signs the statement and receives at the time disclosures are made a legible copy of the signed statement. The inclusion in the required disclosures of a statement that the consumer received a legible copy of those disclosures shall create a rebuttable presumption of receipt thereof.

(4) Information required to be disclosed may be given in the form of estimates and shall be identified as such when the lessor does not know the exact information.

(5) If a disclosure becomes inaccurate as the result of any act, occurrence, or agreement after delivery of the required disclosures, the resulting inaccuracy shall not be a violation of KRS 367.976 to 367.985.

(6) At the lessor's option, information in addition to that required by KRS 367.977 may be disclosed if the additional information is not stated, utilized, or placed in a manner which will contradict, obscure, or distract attention from the required information.

(7) A lessor shall make available a written receipt for each payment made by cash or money order.

Effective: July 13, 1990

History: Created 1990 Ky. Acts ch. 196, sec. 3, effective July 13, 1990; and ch. 304, sec. 3, effective July 13, 1990.

Legislative Research Commission Note (7/13/90). This section was created by two separate 1990 Acts which are identical and have therefore been compiled together.

367.979 Prohibited provisions.

A rental-purchase agreement shall not contain a provision:

(1) Requiring a confession of judgment;

(2) Requiring a garnishment of wages;

(3) Granting authorization to the lessor of a person acting on the lessor's behalf to enter unlawfully upon the consumer's premises or to commit any breach of the peace in the repossession of goods;

(4) Requiring the consumer to waive any defense, counterclaim or right of action against the lessor or a person acting on the lessor's behalf in collection of payment under the lease or in the repossession of goods; or

(5) Requiring purchase of insurance from the lessor to cover the merchandise.

Effective: July 13, 1990

History: Created 1990 Ky. Acts ch. 196, sec. 4, effective July 13, 1990; and ch. 304, sec. 4, effective July 13, 1990.

Legislative Research Commission Note (7/13/90). This section was created by two separate 1990 Acts which are identical and have therefore been compiled together.

367.980 Required provisions.

(1) Each rental-purchase agreement shall:

(a) Provide that the consumer may terminate the agreement without penalty by voluntarily surrendering or returning the merchandise upon expiration of any lease term; and

(b) Contain a provision for reinstatement which, at a minimum permits a consumer who fails to make a timely rental payment to reinstate the agreement, without losing any rights or options which exist under the agreement, by the payment of all past due rental charges, the reasonable costs of pickup, redelivery, any refurbishing and any applicable late fee within five

(5) days of the renewal date if the consumer pays monthly, or within two (2) days of the renewal date if the consumer pays more frequently than monthly.

(2) If a lessee returns the property to the lessor during the times stated in subsection (1) of this section, the reinstatement period shall be extended for an additional thirty

(30) days from the date of return.

(3) Nothing in this section shall prevent a lessor from attempting to repossess property during the reinstatement period, but that repossession shall not affect the consumer's right to reinstate. Upon reinstatement, the lessor shall provide the consumer with the same property or substitute property of comparable quality and condition.

Effective: July 13, 1990

History: Created 1990 Ky. Acts ch. 196, sec. 5, effective July 13, 1990; and ch. 304, sec. 5, effective July 13, 1990.

Legislative Research Commission Note (7/13/90). This section was created by two separate 1990 Acts which are identical and have therefore been compiled together.

367.981 Renegotiation of rental-purchase agreement.

(1) A renegotiation shall occur when an existing rental-purchase agreement is satisfied and replaced by a new lease agreement undertaken by the same consumer. A renegotiation shall be a new agreement covered by KRS 367.976 to 367.985. However, events such as the following shall not be treated as a renegotiation:

(a) The addition or return of property in a multiple item agreement or the substitution of lease property, if in either case the average payment allocable to a payment period is not changed by more than twenty-five percent (25%);

(b) A deferral or extension of one (1) or more periodic payments, or portions of a periodic payment;

(d) An agreement involving a court proceeding; or

(e) Any other event described in administrative regulations prescribed by the office.

(2) No disclosures shall be required for any extension of a rental-purchase agreement.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 31, effective April 5, 2024. -- Created 1990 Ky. Acts ch. 196, sec. 6, effective July 13, 1990; and ch. 304, sec. 6, effective July 13, 1990.

Legislative Research Commission Note (7/13/90). This section was created by two separate 1990 Acts which are identical and have therefore been compiled together.

367.982 Advertisement for rental-purchase agreement.

(1) If an advertisement for a rental-purchase agreement refers to or states the amount of any payment or the right to acquire ownership for any specific item, the advertisement also shall state clearly and conspicuously the following items, as applicable:

(a) That the transaction advertised is a rental-purchase agreement;

(b) The total of payments necessary to acquire ownership; and

(2) Any owner or personnel of any medium in which an advertisement appears or through which it is disseminated shall not be liable under this section.

(3) Subsection (1) of this section shall not apply to an advertisement:

(a) Which does not refer to a specific item of merchandise;

(b) Which does not refer to or state the amount of any payment; or

(4) With respect to matters specifically governed by the Federal Consumer Credit Protection Act, compliance with that act shall satisfy the requirements of this section.

Effective: July 13, 1990

History: Created 1990 Ky. Acts ch. 196, sec. 7, effective July 13, 1990; and ch. 304, sec. 7, effective July 13, 1990.

Legislative Research Commission Note (7/13/90). This section was created by two separate 1990 Acts which are identical and have therefore been compiled together.

367.983 Civil remedies for consumers injured by violations of KRS 367.976 to 367.985.

(1) A lessor who fails to comply with a requirement imposed in KRS 367.977, 367.978, 367.979, or 367.980 with respect to a consumer shall be liable to the consumer in an amount equal to the greater of:

(a) The actual damages sustained by the consumer as a result of the violation, plus the costs of the action and reasonable attorneys' fees;

(b) In the case of an individual action, twenty-five percent (25%) of the total of payments necessary to acquire ownership but not less than one hundred dollars ($100) nor greater than one thousand dollars ($1,000), plus the costs of the action and reasonable attorneys' fees; or

(c) In the case of a class action, the amount the court determines to be appropriate with no minimum recovery as to each member, plus the costs of the action and reasonable attorneys' fees. The total recovery in any class action or series of class actions arising out of the same violation shall not be more than the lesser of five hundred thousand dollars ($500,000), plus the costs of the action and reasonable attorneys' fees or one percent (1%) of the net worth of the lessor, plus the costs of the action and reasonable attorneys' fees. In determining the amount of any award in a class action, the court shall consider, among other relevant factors, the amount of actual damages awarded, the frequency and persistence of the violation, the lessor's resources, and the extent to which the lessor's violation was intentional.

(2) In the case of an advertisement, any lessor who fails to comply with the requirements of KRS 367.982 with regard to any person shall be liable to that person for actual damages suffered from the violation, the costs of the action, and reasonable attorneys' fees.

(3) If there are multiple lessors, liability shall be imposed only on the lessor who made the disclosures. If no disclosures have been given, liability shall be imposed on all lessors.

(4) If there are multiple consumers in a rental-purchase agreement, there shall be only one (1) recovery of damages under subsection (1) of this section for a violation of KRS 367.976 to 367.985.

(5) Multiple violations in connection with a rental-purchase agreement shall entitle the consumer to a single recovery under this section.

(6) A consumer shall not take any action to offset any amount for which a lessor is potentially liable under subsection (1) of this section against any amount owed by the consumer, unless the amount of the lessor's liability has been determined by judgment of a court of competent jurisdiction in an action in which the lessor was a party. This subsection shall not bar a consumer then in default on the obligation from asserting a violation of KRS 367.976 to 367.985 as an original action, or as a defense or counterclaim to an action brought by lessor to collect amounts owed by the consumer.

(7) In connection with any transaction covered under KRS 367.976 to 367.985, the lessor shall preserve evidence of compliance with the provisions of KRS 367.976 to 367.985 for not less than two (2) years from the date of consummation of the agreement.

Effective: July 13, 1990

History: Created 1990 Ky. Acts ch. 196, sec. 8, effective July 13, 1990; and ch. 304, sec. 8, effective July 13, 1990.

Legislative Research Commission Note (7/13/90). This section was created by two separate 1990 Acts which are identical and have therefore been compiled together.

367.984 Limitation of actions.

A civil action under KRS 367.976 to 367.985 may be brought in any court of competent jurisdiction within one (1) year of the date of the occurrence of any violation or within six

(6) months of the time the rental-purchase agreement, together with any renewals or extensions thereof, ceases to be in effect, whichever is greater. Notwithstanding the above, a civil action under KRS 367.976 to 367.985 may be maintained by way of recoupment or counterclaim in an action brought against the consumer by the lessor or its assignee.

Effective: July 13, 1990

History: Created 1990 Ky. Acts ch. 196, sec. 9, effective July 13, 1990; and ch. 304, sec. 9, effective July 13, 1990.

Legislative Research Commission Note (7/13/90). This section was created by two separate 1990 Acts which are identical and have therefore been compiled together.

367.985 Effect of unintentional violation and timely adjustment of error.

(1) A lessor shall not be liable under KRS 367.983 for a violation of KRS 367.976 to 367.985 if the lessor shows by a preponderance of the evidence that the violation was not intentional and resulted from a bona fide error, such as a clerical miscalculation, computer malfunctions, programming error, or printing error, even though the lessor maintained procedures reasonably adapted to avoid such an error. An error of legal judgment with respect to requirements of this title shall not be considered a bona fide error.

(2) A lessor shall not be liable under KRS 367.983 for any act done or omitted in good faith in conformity with any administrative regulation or interpretation promulgated by the Attorney General or by the office or by an official duly authorized by the Attorney General or by the office. This rule shall apply even if, after the act or omission has occurred, the regulation or interpretation is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.

(3) A lessor shall not be liable under KRS 367.983 for any error if, before the thirty- first day after the date the merchant discovers the error and before an action against the lessor has been filed or written notice of the error received by the lessor, the lessor gives the consumer written notice of the error and makes adjustments in the consumer's account as necessary to assure that the consumer will not be required to pay an amount in excess of the amount disclosed and that the agreement otherwise complies with KRS 367.976 to 367.985.

Effective: April 5, 2024

History: Amended 2024 Ky. Acts ch. 112, sec. 32, effective April 5, 2024. -- Created 1990 Ky. Acts ch. 196, sec. 10, effective July 13, 1990; and ch. 304, sec. 10, effective July 13, 1990.

Legislative Research Commission Note (7/13/90). This section was created by two separate 1990 Acts which are identical and have therefore been compiled together.

Penalties Penalties

367.990 Penalties.

(1) Any person who violates the terms of a temporary or permanent injunction issued under KRS 367.190 shall forfeit and pay to the Commonwealth a civil penalty of not more than twenty-five thousand dollars ($25,000) per violation. For the purposes of this section, the Circuit Court issuing an injunction shall retain jurisdiction, and the cause shall be continued, and in such cases the Attorney General acting in the name of the Commonwealth may petition for recovery of civil penalties.

(2) Any person with actual notice that an investigation has begun or is about to begin pursuant to KRS 367.240 and 367.250 who intentionally conceals, alters, destroys, or falsifies documentary material is guilty of a Class A misdemeanor.

(3) Any person who, in response to a subpoena or demand as provided in KRS 367.240 or 367.250, intentionally falsifies or withholds documents, records, or pertinent materials that are not privileged shall be subject to a fine as provided in subsection

(2) of this section.

(4) The Circuit Court of any county in which any plan described in KRS 367.350 is proposed, operated, or promoted may grant an injunction without bond, upon complaint filed by the Attorney General to enjoin the further operation thereof, and the Attorney General may ask for and the court may assess civil penalties against the defendant in an amount not to exceed the sum of five thousand dollars ($5,000) which shall be for the benefit of the Commonwealth of Kentucky.

(5) Any person, business, or corporation who knowingly violates the provisions of KRS 367.540 shall be guilty of a violation. It shall be considered a separate offense each time a magazine is mailed into the state; but it shall be considered only one (1) offense for any quantity of the same issue of a magazine mailed into Kentucky.

(6) Any solicitor who violates the provisions of KRS 367.513 or 367.515 shall be guilty of a Class A misdemeanor.

(7) In addition to the penalties contained in this section, the Attorney General, upon petition to the court, may recover, on behalf of the Commonwealth a civil penalty of not more than the greater of five thousand dollars ($5,000) or two hundred dollars ($200) per day for each and every violation of KRS 367.175.

(8) Any person who willfully and intentionally violates any provision of KRS 367.976 to 367.985 shall be guilty of a Class B misdemeanor.

(9) (a) Any person who violates the terms of a temporary or permanent injunction issued under KRS 367.665 shall forfeit and pay to the Commonwealth a penalty of not more than five thousand dollars ($5,000) per violation. For the purposes of this section, the Circuit Court issuing an injunction shall retain jurisdiction, and the cause shall be continued, and in such cases the Attorney General acting in the name of the Commonwealth may petition for recovery of civil penalties.

(b) 1. The Attorney General may, upon petition to a court having jurisdiction under KRS 367.190, recover on behalf of the Commonwealth from any person found to have willfully committed an act declared unlawful by KRS 367.667 a penalty of not more than five thousand dollars ($5,000) per violation.

In addition to any other penalties provided for the commission of the offense, any person found guilty of violating KRS 367.667(1)(c):

a. Shall be punished by a fine of no less than five hundred dollars ($500) for the first offense and no less than five thousand dollars ($5,000) for any subsequent offense; and

b. Pay restitution of any financial benefit secured through conduct proscribed by KRS 367.667(1)(c).

The Office of the Attorney General or the appropriate Commonwealth's attorney shall have concurrent enforcement powers as to fines, felonies, and misdemeanors under this paragraph.

(c) Any person who knowingly violates any provision of KRS 367.652, 367.653, 367.656, 367.657, 367.658, 367.666, or 367.668 or who knowingly gives false or incorrect information to the Attorney General in filing statements or reports required by KRS 367.650 to 367.670 shall be guilty of a Class D felony.

(10) Any dealer who fails to provide a statement under KRS 367.760 or a notice under KRS 367.765 shall be liable for a penalty of one hundred dollars ($100) per violation to be collected in the name of the Commonwealth upon action of the Attorney General.

(11) Any dealer or manufacturer who falsifies a statement under KRS 367.760 shall be liable for a penalty not exceeding one thousand dollars ($1,000) to be collected in the name of the Commonwealth upon action by the Attorney General.

(12) Any person who violates KRS 367.805, 367.809(2), 367.811, 367.813(1), or 367.816 shall be guilty of a Class C felony.

(13) Either the Attorney General or the appropriate Commonwealth's attorney shall have authority to prosecute violations of KRS 367.801 to 367.819.

(14) A violation of KRS 367.474 to 367.478 and 367.482 is a Class C felony. Either the Attorney General or the appropriate Commonwealth's attorney shall have authority to prosecute violators of KRS 367.474 to 367.478 and 367.482.

(15) Any person who violates KRS 367.310 shall be guilty of a violation.

(16) Any person, partnership, or corporation who violates the provisions of KRS 367.850 shall be guilty of a Class A misdemeanor.

(17) Any dealer in motor vehicles or any other person who fraudulently changes, sets back, disconnects, fails to connect, or causes to be changed, set back, or disconnected, the speedometer or odometer of any motor vehicle, to effect the sale of the motor vehicle shall be guilty of a Class D felony.

(18) Any person who negotiates a contract of membership on behalf of a club without having previously fulfilled the bonding requirement of KRS 367.403 shall be guilty of a Class D felony.

(19) Any person or corporation who operates or attempts to operate a health spa in violation of KRS 367.905(1) shall be guilty of a Class A misdemeanor.

(20) (a) Any person who violates KRS 367.832 shall be guilty of a Class C felony; and

(b) The appropriate Commonwealth's attorney shall have authority to prosecute felony violations of KRS 367.832.

(21) (a) Any person who violates the provisions of KRS 367.855 or 367.857 shall be guilty of a violation. Either the Attorney General or the appropriate county health department may prosecute violators of KRS 367.855 or 367.857.

(b) The provisions of this subsection shall not apply to any retail establishment if the wholesaler, distributor, or processor fails to comply with the provisions of KRS 367.857.

(22) Notwithstanding any other provision of law, any telemarketing company, telemarketer, caller, or merchant shall be guilty of a Class D felony when that telemarketing company, telemarketer, caller, or merchant three (3) times in one (1) calendar year knowingly and willfully violates KRS 367.46955(15) by making or causing to be made an unsolicited telephone solicitation call to a telephone number that appears in the current publication of the zero call list maintained by the Office of the Attorney General's Office of Consumer Protection.

(23) Notwithstanding any other provision of law, any telemarketing company, telemarketer, caller, or merchant shall be guilty of a Class A misdemeanor when that telemarketing company, telemarketer, caller, or merchant uses a zero call list identified in KRS 367.46955(15) for any purpose other than complying with the provisions of KRS 367.46951 to 367.46999.

(24) (a) Notwithstanding any other provision of law, any telemarketing company, telemarketer, caller, or merchant that violates KRS 367.46951 to 367.46999 shall be assessed a civil penalty of not more than five thousand dollars ($5,000) for each offense.

(b) The Attorney General, or any person authorized to act in his or her behalf, shall initiate enforcement of a civil penalty imposed under paragraph (a) of this subsection.

(c) Any civil penalty imposed under paragraph (a) of this subsection may be compromised by the Attorney General or his or her designated representative. In determining the amount of the penalty or the amount agreed upon in compromise, the Attorney General, or his or her designated representative, shall consider the appropriateness of the penalty to the financial resources of the telemarketing company, telemarketer, caller, or merchant charged, the gravity of the violation, the number of times the telemarketing company, telemarketer, caller, or merchant charged has been cited, and the good faith of the telemarketing company, telemarketer, caller, or merchant charged in attempting to achieve compliance, after notification of the violation.

(d) If a civil penalty is imposed under this subsection, a citation shall be issued which describes the violation which has occurred and states the penalty for the violation. If, within fifteen (15) working days from the receipt of the citation, the affected party fails to pay the penalty imposed, the Attorney General, or any person authorized to act in his or her behalf, shall initiate a civil action to collect the penalty. The civil action shall be taken in the court which has jurisdiction over the location in which the violation occurred.

(25) Any person who violates KRS 367.500 shall be liable for a penalty of two thousand five hundred dollars ($2,500) per violation. Either the Attorney General or the appropriate Commonwealth's attorney may prosecute violations of KRS 367.500.

(26) (a) In any action brought under KRS 367.190, if the court finds that a person is willfully using or has willfully used a method, act, or practice declared unlawful by KRS 367.170, the Attorney General, upon petition to the court, may recover on behalf of the Commonwealth a civil penalty of not more than:

Two thousand dollars ($2,000) per violation; or
Ten thousand dollars ($10,000) per violation if the defendant's conduct is directed at a person aged sixty (60) or older, and the trier of fact determines that the defendant knew or should have known that the person is aged sixty (60) or older and substantially more vulnerable than other members of the public.

(b) For purposes of this subsection:

Any method, act, or practice declared unlawful by KRS 367.170 shall constitute a separate violation as to each:

a. Consumer to whom a method, act, or practice declared unlawful by KRS 367.170 was directed, communicated, or applied, regardless of whether the consumer suffered actual pecuniary loss;

b. Transaction in which a method, act, or practice declared unlawful by KRS 367.170 was employed, including but not limited to each sale, offer, solicitation, advertisement or advertisement placement, communication, or other act connected with the unlawful conduct; and

c. Separately identifiable method, act, or practice declared unlawful by KRS 367.170, even if arising from the same transaction or directed at the same consumer; and

Any method, act, or practice declared unlawful by KRS 367.170 that is not identified as being in connection with a specific identifiable person or transaction, but that is continuing in nature, shall constitute a separate violation for each day that the unlawful method, act, or practice exists or continues.

(c) Proof of actual injury to a consumer as a prerequisite to the assessment of civil penalties under this subsection shall not be required, as the civil penalty provisions in this subsection are intended to punish and deter the violator and not intended solely to compensate injured parties.

(d) In determining the amount of the civil penalty established in paragraph (a) of this subsection to be assessed for each violation, the trier of fact may consider, either alone or in combination, the following factors:

Whether the person charged with the violation was acting in good faith or bad faith;
The nature, extent, and severity of the injury to consumers and the public;
The person's ability to pay;
The amount of profit or gain obtained through the unlawful conduct;
The duration of the unlawful conduct;
The desire to eliminate any benefit derived from the violation and to deter future violations; and
Any prior violations of KRS 367.170 by the person.

(e) For purposes of this subsection, "person" has the same meaning as in KRS 367.110.

(f) This subsection shall:

Be liberally construed to effectuate its purpose of protecting consumers and the public from unfair, false, misleading, or deceptive acts or practices, and to provide the Attorney General the enforcement tools necessary to deter unlawful conduct; and
Not be construed to limit the:

a. Methods by which the Attorney General or trier of fact may determine the number of violations in any particular action; or

b. Right of the trier of fact to determine the number of violations for which a person may properly be held responsible based upon the circumstances of the case.

Effective: April 27, 2026

History: Amended 2026 Ky. Acts ch. 198, sec. 45, effective April 27, 2026. -- Amended 2024 Ky. Acts ch. 112, sec. 33, effective April 5, 2024. -- Amended 2019 Ky. Acts ch. 105, sec. 4, effective June 27, 2019. -- Amended 2007 Ky. Acts ch. 115, sec. 6, effective June 26, 2007; and ch. 134, sec. 2, effective June 26, 2007. -- Amended 2002 Ky. Acts ch. 21, sec. 8, effective July 15, 2002. -- Amended 1998 Ky. Acts ch. 502, sec. 1, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 151, sec. 12, effective July 15, 1994; and ch. 329, sec. 8, effective July 15, 1994. -- Amended 1992 Ky. Acts ch. 463, sec. 42, effective July 14, 1992. -- Amended 1990 Ky. Acts ch. 196, sec. 11, effective July 13, 1990; and ch. 304, sec. 11, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 142, sec. 3, effective July 15, 1988. -- Amended 1986 Ky. Acts ch. 184, sec. 4, effective July 15, 1986. --Amended 1982 Ky. Acts ch. 21, sec. 7, effective July 15, 1982; and ch. 298, sec. 8, effective July 15, 1982; and ch. 315, sec. 2, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 49, secs. 1, 10, 11, effective July 15, 1980. -- Amended 1978 Ky. Acts ch. 315, sec. 11, effective June 17, 1978; and ch. 316, sec. 10(2), (3), effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 136, sec. 22; and ch. 216, sec. 6; and ch. 330, sec. 2. -- Amended 1974 Ky. Acts ch. 281, sec. 6, effective July 1, 1974 -- Created 1972 Ky. Acts ch. 4, secs. 17(1), (2), and 20(1), (2); ch. 23, sec. 2; and ch. 55, sec. 5.

367.991 Penalty for violation of KRS 367.932 to 367.974.

Any person or corporation which is subject to the provisions of KRS 367.932 to 367.974 and willfully violates the trust provision found in this chapter shall be guilty of a Class C felony. Each violation of any trust provision of this chapter shall be deemed a separate offense. Either the Attorney General or the appropriate Commonwealth's attorney may prosecute violators.

Effective: July 13, 1984

History: Created 1984 Ky. Acts ch. 116, sec. 24, effective July 13, 1984.

367.992 Penalty for violation of KRS 367.826.

(1) Violation of KRS 367.826 shall be a Class A misdemeanor.

(2) In addition to subsection (1) of this section, all of the remedies, powers, and duties provided for the Attorney General by KRS 367.190 through 367.300 and 367.990, pertaining to acts declared unlawful by KRS 367.170, shall apply with equal force and effect to acts declared unlawful by KRS 367.826.

Effective: July 15, 1988

History: Created 1988 Ky. Acts ch. 313, sec. 3, effective July 15, 1988.

367.993 Penalty for violations of KRS 367.4774 and 367.381.

(1) Any person who knowingly violates or causes to be violated any provision of KRS 367.4774 shall be guilty of a Class C felony.

(2) Any person who knowingly violates or causes to be violated any provision of KRS 367.381 shall be guilty of a Class C felony.

Effective: July 14, 1992

History: Created 1992 Ky. Acts ch. 209, sec. 8, effective July 14, 1992; and ch. 301, sec. 7, effective July 14, 1992.

Legislative Research Commission Note (7/14/92). This section was enacted by two 1992 Acts which do not appear to be in conflict and have been compiled together.