Title 605 KAR — Transportation Cabinet

Chapter 1 Motor Vehicle Commission

605 KAR 1:020 Motor vehicle auction dealer title transfer requirements {#sec-605-kar-1-020 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:020}

Section 1. A motor vehicle auction dealer, defined in KRS 190.010(10), before offering a motor vehicle at auction by any person other than a licensed motor vehicle dealer, defined in KRS 190.010(2), shall have in his possession, unencumbered, all documents required by KRS 186A.215 properly endorsed and executed by the person proposing to sell the vehicle.

Section 2. No motor vehicle auction dealer shall engage in the offering or sale, by any person other than a licensed motor vehicle dealer, of any motor vehicle when the documents required by KRS 186.215 are not made available to the purchaser of the motor vehicle, prior to accepting payment for same.

Section 3. No motor vehicle auction dealer, after the sale of a motor vehicle through the auction to a person other than a licensed motor vehicle dealer, shall allow to be taken out of the possession of the auction dealer the documents required by KRS 186A.215 until such documents have been properly executed by the purchaser of said vehicle.

History

• RELATES TO: KRS Chapters 186A, 190
• STATUTORY AUTHORITY: KRS 190.020, 190.030(1), 190.073
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.020 grants the Motor Vehicle Commission authority to supervise its licensees with respect to all provisions of KRS 190.010 to 190.080, under administrative regulations promulgated by it. KRS 190.030 requires a dealer license of anyone engaging in the business of motor vehicle dealer within this state. KRS 190.073 gives the commission authority to promulgate appropriate and reasonable administrative regulations for the purpose of carrying out the provisions of KRS Chapter 190. This administrative regulation is designed to make it incumbent upon motor vehicle auction dealers licensed by the Motor Vehicle Commission to insure that members of the general public who sell or purchase motor vehicles through an auction do so in a legal manner.
• History: 601 KAR 001:020. 15 Ky.R. 1350; eff. 1-7-1989; Crt eff. 3-5-2019; Crt eff. 3-5-2019; Crt eff. 12-4-2025.

605 KAR 1:030 Applications {#sec-605-kar-1-030 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:030}

Section 1. Application and Renewal.

(1) An Application for Motor Vehicle Dealer License, form TC 98-1, shall be submitted on behalf of an individual or entity wishing to obtain a license using a name that is not the name of a current licensee. Applicants shall provide additional information in support of the application if requested by the commission or its staff. The application shall not be considered complete until the additional information is received.

(2) Renewal of a dealer license shall be submitted by completing a Dealer License Renewal Application available on the commission's Web site at https://mvc.ky.gov/Pages/Online-Renewal.aspx.

Section 2. The applicant shall be notified in writing of the acceptance or rejection of the application. If the application is rejected, the reason or reasons for rejection shall be specifically stated, and the rejected applicant shall be notified of the right to a hearing before the commission in accordance with the rules and administrative regulations of the commission.

Section 3. All applicants shall:

(1) Submit a financial statement;

(2) Submit at least six (6) different photographs of the premises to be occupied by the applicant;

(3) Submit a detailed drawing of the premises in relation to the nearest roadway, which shall include the location and size of the office and the display area, and the location of the dealership sign;

(4) Furnish a personal data sheet, employment history, and photograph for each individual owning a portion of the business, officers of a corporation, or members and managers of a limited liability company;

(5) Sign a statement authorizing the Motor Vehicle Commission to make inquiries or investigations concerning employment, credit, or criminal records of the applicant or any partner, corporate officer, and manager or managing member of a limited liability corporation; and

(6) Obtain garage liability insurance and file with the commission a certificate of insurance in the exact name in which it applies for a license.

Section 4. An Applicant for a new, used, motorcycle, automotive mobility dealer, or motor vehicle leasing dealer license shall demonstrate that they possess a minimum of $50,000 in unencumbered cash or unencumbered inventory.

Section 5.

(1) An Applicant for a new, used, motorcycle, automotive mobility dealer, or motor vehicle leasing dealer license who demonstrates that they possess between $50,000 and $100,000 of unencumbered cash or unencumbered motor vehicle inventory may be granted a license only if the applicant also obtains a commercial bond, as set forth in KRS 190.030(9), in the amount of the difference between the unencumbered cash and unencumbered motor vehicle inventory and the $100,000 amount.

(2) The commission may require a commercial bond, as set forth in KRS 190.030(9), for an applicant with a net worth above the $100,000 amount if the information submitted by the applicant indicates reasonable cause to doubt the financial responsibility or the applicant's compliance with the provisions of KRS Chapter 190.

Section 6. Every licensee shall obtain a sales tax permit number from the Department of Revenue.

Section 7. Incorporation by Reference.

(1) "Application for Motor Vehicle Dealer License, TC 98-1", 6/2021 edition is incorporated by reference.

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at Kentucky Motor Vehicle Commission, 200 Mero Street, Frankfort, Kentucky 40601, Monday through Friday, 8:00 a.m. to 4:30 p.m.

History

• RELATES TO: KRS 190.010-190.080
• STATUTORY AUTHORITY: KRS 190.020, 190.030, 190.035, 190.073
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.030 provides for the issuance of various licenses to engage in the activity of a motor vehicle dealer. KRS 190.020 requires the commission, under administrative regulations promulgated by it, to issue the licenses provided for by KRS 190.010 to 190.080. KRS 190.073 requires the commission to promulgate appropriate and reasonable administrative regulations for the purpose of carrying out the provisions of KRS Chapter 190. This administrative regulation allows the Motor Vehicle Commission to provide for an orderly procedure for the submission and content of applications to facilitate processing of applications and the issuance of the license.
• History: 9 Ky.R. 650; eff. 12-1-1982; Recodified from 601 KAR 21:030, 7-13-1984; 11 Ky.R. 1463; 13 Ky.R. 1522; eff. 5-14-1985; 18 Ky.R. 467; eff. 10-1-1991; Crt eff. 3-5-2019; 47 Ky.R. 2643; 48 Ky.R. 1128; eff. 11-15-2021.

605 KAR 1:031 Automotive mobility dealer requirements and licensing {#sec-605-kar-1-031 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:031}

Section 1.

(1) In addition to the application requirements, which shall include compliance with the following:

(a) KRS 189.010 to 189.221 regarding the equipment and function of vehicles operated in Kentucky;

(b) 49 C.F.R. 567 regarding modification and alteration of vehicles;

(c) 49 C.F.R. 571, Federal Motor Vehicle Safety Standards; and

(d) 49 C.F.R. 595 regarding make inoperative exemptions contained in 605 KAR 1:030, an automotive mobility dealer applicant shall certify that its operations will meet reasonable and appropriate quality assurance requirements.

(2) An automotive mobility dealer applicant that actually modifies vehicles to create adapted vehicles, installs mobility equipment or services or repairs adapted vehicles or mobility equipment, shall certify:

(a) That all mobility equipment and materials utilized in the modification, installation, servicing or repair comply with applicable federal and state guidelines, as set forth in subsection (1) of this section and;

(b) That the relevant personnel of the automotive mobility dealer have been trained and certified if applicable by the equipment manufacturers or other competent authority with regard to the modification, installation, repair or servicing.

(3) An automotive mobility dealer that intends to sell newly modified adapted vehicles, modified or altered by third parties, shall identify the vehicle modifier or installer who will provide the modification services and shall certify that the vehicle modifier or installer will comply with applicable federal and state guidelines, as set forth in subsection (1) of this section.

(4) An automotive mobility dealer that cannot provide the applicable certification under this section shall provide a statement under oath as to the unavailability of the certification and the reasons therefore.

Section 2. An automobile mobility dealer shall notify the commission within twenty-one (21) days of any change regarding the source of newly adapted vehicles sold by the dealership.

Section 3. An applicant for an automotive mobility dealer license shall demonstrate at least $100,000 in net assets. If an applicant cannot demonstrate $100,000 in net assets, the commission,, may accept a surety bond in the amount of any difference, as set forth in KRS 190.020(9).

Section 4. An applicant for an automotive mobility dealer license shall demonstrate that it holds a policy for $1,000,000 in liability insurance. An automobile mobility dealer shall immediately notify the commission if its liability insurance is cancelled or not renewed.

Section 5. An automotive mobility dealer, other than an automotive mobility dealer that is also a new motor vehicle dealer, shall not offer, claim or indicate that it is selling new motor vehicles, and shall not purport to sell or transfer a new motor vehicle on a certificate of origin. An automotive mobility dealer that is also a licensed new motor vehicle dealer shall offer and sell adapted vehicles as new motor vehicles if they are of the make authorized to be sold by the new vehicle dealer license and otherwise meet the definition of a new motor vehicle, as established in KRS 190.010(13).

Section 6. Except as provided by KRS Chapter 186A, an automotive mobility dealer shall title all untitled vehicles into the dealership name prior to any sale to a customer.

Section 7. An automotive mobility dealer shall not engage in the sale of an adapted vehicle that does not have proof that it has been adapted or modified in compliance with 49 C.F.R. Part 595.

Section 8. An automotive mobility dealer that is not also licensed as either a new motor vehicle dealer or a used motor vehicle dealer shall not engage in the sale of any vehicles other than adapted vehicles.

History

• RELATES TO: KRS Chapter 186A, 190.010 (13), (26), (27), (28), 190.031
• STATUTORY AUTHORITY: KRS 190.031, 190.073
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.031 requires the Motor Vehicle Commission to establish requirements for initial application for and renewal of a license to be an automotive mobility dealer and directs the commission to establish relevant requirements which must include provisions for automotive mobility dealers to meet reasonable and appropriate quality assurance standards. This administrative regulation sets forth those requirements and standards.
• History: 605 KAR 001:031. 34 Ky.R. 684; 1003; 1417; eff. 1-4-2008; Crt eff. 3-5-2019; Crt eff. 12-4-2025.

605 KAR 1:035 Facilities requirements {#sec-605-kar-1-035 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:035}

Section 1. In addition to the requirements of KRS 190.010(19), the established place of business of a dealership shall:

(1) Have a business office which:

(a) Is underpinned and on a permanent foundation. The dealership business office need not be a separate walled enclosure;

(b) Has electricity;

(c) Has adequate facilities for the physical or electronic storage of business records;

(d) Has a working business telephone used exclusively for the sale of motor vehicles;

(e) Has a desk and chairs for the use of the business;

(f) Has at least 100 square feet of floor space;

(g) Is located on or immediately adjacent to the vehicle storage or display lot;

(h) Is not part of a residence;

(i) Is used exclusively as a licensee business office and has a separate postal street address.

(2) Have a vehicle storage or display lot which:

(a) Has a hard surface lot (gravel, asphalt, concrete, or other suitable covering);

(b) Is at least 2,000 square feet in size;

(c) Is used exclusively for the display and showing of vehicles for sale and licensee customer parking; and

(d) Is a distinctively defined area from that which surrounds it.

Section 2. A location otherwise meeting the requirements of this administrative regulation may be used by more than one (1) business or licensee, provided that each licensee has sufficient rights to suitable space and adequate facilities to conduct the separate business of a motor vehicle dealer. Notwithstanding the provisions of this section, not more than one (1) licensee for the same licensed activity shall be licensed from a single place of business if the licensee shares any of the facilities listed in Section 1 with another licensee or business in order to meet the minimum facility requirements.

Section 3. A motor vehicle dealer, other than a wholesale dealer, shall display on his premises a sign with lettering not less than nine (9) inches in height, which is clearly visible from the nearest roadway, and which specifically identifies his business. The business name on the sign shall be the same as that on the license application.

Section 4. Every licensee who conducts an automobile salvage or junk business on the same premises shall be in compliance with all state administrative regulations regarding junkyard operations. The licensee shall have an area for the display of vehicles for sale and an office separate and apart from the area where junk cars or parts are stored or situated.

Section 5. If a licensee operates a garage for the repair or rebuilding of wrecked or disabled vehicles, an office and area for the display of vehicles separate and apart from the area where the repairs are made shall be allocated for the licensed activity.

Section 6. The requirements in this administrative regulation shall not apply to a non-profit motor vehicle dealer.

History

• RELATES TO: KRS 190.010 (19), 190.035
• STATUTORY AUTHORITY: KRS 190.020, 190.035, 190.073
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.035 provides for dealers to have an established place of business with sufficient space and attributes consistent with the activity of the license applied for as established by regulations issued by the commission. KRS 190.073 requires the commission to promulgate appropriate and reasonable administrative regulations for the purpose of carrying out the provisions of KRS Chapter 190. This administrative regulation establishes those requirements and standards.
• History: 47 Ky.R. 2765; 48 Ky.R. 1128; eff. 11-15-2021.

605 KAR 1:051 Dealer and salesman {#sec-605-kar-1-051 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:051}

Section 1.

(1) All activity of a licensed motor vehicle salesman shall be pursuant to the salesman's employment by the licensee whose name appears on the salesman's license.

(2) A salesman shall not establish a place of business separate from the location for which his employer holds a license.

(3) A salesman shall not hold himself out to be a licensed dealer or conduct himself in any manner which would lead a prospective purchaser to believe he is a licensed dealer.

(4) A salesman shall not advertise the sale or purchase of a motor vehicle. This subsection shall not prohibit licensed motor vehicle dealers from identifying or including salesmen in advertisements of the dealership.

Section 2. If a salesman changes his place of employment to another dealership, he shall return his license to the commission.

Section 3. Every dealer licensee shall display in a conspicuous place in the dealership office a copy of the license of each salesman employed by the dealership. Upon the termination of employment of a salesman, the licensee shall, within ten (10) days, notify the commission of the termination and return to the commission the dealer's copy of the salesman's license.

Section 4.

(1) A dealer shall apply for a motor vehicle salesman license for each person acting or intending to act as a salesman. The application shall be submitted by completing a salesman application through the dealer's on-line account at Ky.gov Login. The dealer shall provide the name, home address, social security number, date of birth of the salesman, and the employment history of the salesman in the motor vehicle industry identifying the name and address of any previous motor vehicle dealerships at which the salesman was employed. If the salesman does not have prior experience in the motor vehicle industry, the dealer shall so state.

(2) The employing dealer shall furnish a current photograph of the salesman for identification purposes.

(3) The employing dealer shall require the salesman to authorize the commission to make inquiries or investigations concerning the salesman's employment and criminal records. The employing dealership shall remit the required fee for a criminal background check if requested by the commission.

Section 5.

(1) The following individuals shall be required to obtain a salesman's license:

(a) Each natural person holding a motor vehicle dealer license;

(b) Each general partner actively involved in the day-to-day operation of a general or limited partnership holding a motor vehicle dealer license;

(c) The president, chief executive officer, chief operating officer, or equivalent of a corporation holding a motor vehicle dealer license; and

(d) Each manager, or, if member-managed, each member actively involved in the day-to-day operation of a limited liability company holding a motor vehicle dealer license.

(2) All motor vehicle dealers shall have at least one (1) salesperson per licensed location.

Section 6. If any of the individuals in Section 5(1) are physically located and conduct business at more than one (1) location, the individual shall procure a salesman's license for each location. Otherwise, the individual shall procure a license for the location in Kentucky where he is located or a primary location in Kentucky if he is located outside the state.

History

• RELATES TO: KRS 190.010, 190.030
• STATUTORY AUTHORITY: KRS 190.010, 190.030, 190.073
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.030 requires a salesman's license to indicate for whom the salesman works and to be displayed upon request. This administrative regulation establishes the relationship between the dealership and salesman and implements statutory requirements to facilitate accurate recordkeeping by the Motor Vehicle Commission.
• History: 48 Ky.R. 1647, 2006; eff. 2-16-2022.

605 KAR 1:060 Temporary off-site sale or display event {#sec-605-kar-1-060 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:060}

Section 1. Definition. "Display" means:

(1) A showing of a motor vehicle or vehicles with an intent to attract or further a sale of the motor vehicle or vehicles or similar motor vehicles offered by a motor vehicle dealer at a location in this state where no sale, transfer, or test drive takes place; or

(2) Any showing of a motor vehicle at a location for more than forty-eight (48) hours.

Section 2.

(1) A motor vehicle dealer shall not conduct or participate in a motor vehicle display event at any location other than the dealer's licensed place of business unless an Application for a Temporary Display Event is filed with the Motor Vehicle Commission and approved.

(2) The application for a Temporary Display Event shall be received a minimum of five (5) days prior to the next regularly-scheduled meeting of the commission held before the requested permit period.

(3) The temporary display permit application shall state:

(a) The duration of the display which shall not exceed sixty (60) successive days;

(b) The specific location of the temporary display event for which the permit is requested;

(c) A complete list of all motor vehicle dealers participating in the temporary display event; and

(d) Proof that the city, county, urban county or consolidated local government where the temporary display event is to occur has enacted an ordinance specifically allowing a motor vehicle dealer to conduct a motor vehicle temporary display event in its jurisdiction at a location other than the dealer's licensed place of business.

(4) A salesman shall not be present at a temporary display event at any time. If a salesman of the participating motor vehicle dealer is present at the temporary display event, the event shall be deemed a temporary sale event.

(5) The dealership name as stated on its license, the address of its established place of business and contact information shall be placed on or near the vehicle or vehicles on display.

Section 3.

(1) A motor vehicle dealer shall not conduct or participate in a motor vehicle sale event at any location other than the dealer's licensed place of business unless an Application for a Temporary Sale Event is filed with the Motor Vehicle Commission and approved.

(2) The application for a Temporary Sale Event shall be received a minimum of forty-five (45) days prior to the temporary sale event.

(3) The temporary sale event application shall state:

(a) The duration of the sale which shall not exceed five (5) successive days;

(b) The specific location of the temporary sale event for which the permit is requested;

(c) A complete list of all motor vehicle dealers participating in the temporary sale event;

(d) Proof that the city, county, urban county or consolidated local government where the temporary sale event is to occur has enacted an ordinance specifically allowing a motor vehicle dealer to conduct a motor vehicle temporary sale event in its jurisdiction at a location other than the dealer's licensed place of business;

(e) That the temporary sale event has been, is being, or will be advertised as being temporary in nature;

(f) That the temporary sale event shall include a representative sampling of the inventory of the participating dealer or dealers; and

(g) In the case of a sale of new motor vehicles:

1. That the sale location is not within a five (5) mile radius of the licensed location of a nonparticipating new motor vehicle dealer licensed to sell the same line make of motor vehicles as will be displayed at the temporary sale event; and

2. That the applicable franchisor or franchisors have approved or consented to the temporary sale event if consent is required.

Section 4.

(1) At every temporary sale event each participating dealer shall display a sign easily visible from the street identifying his business using his business name as stated on his dealer's license and indicating the address of his established place of business as set forth in his dealer's license.

(2) If applicable local ordinance prohibits the signage, each dealer shall display allowable signage containing the same information and provide customers with business cards containing the information upon request.

Section 5.

(1) All sales made at a temporary sale event shall be evidenced by a written sales document or purchase order containing the dealership's licensed name and address of the dealership's established place of business, the address of the temporary sale and the customer name, address and telephone number.

(2) The Documentation shall be retained for six (6) months after the sale and shall be made available to the Motor Vehicle Commission upon request.

Section 6. A certificate of title, and other documents if appropriate, shall be present at the temporary sale event location with respect to each motor vehicle offered for sale at the temporary sale event and shall be made available to purchasers as set forth in KRS 186A.220(5).

Section 7.

(1) All individuals involved in attempting to make a sale as defined in KRS 190.010(25) at a temporary sale event shall possess a valid salesman's license issued by the Motor Vehicle Commission in the name of the participating dealer or dealers prior to the date of the temporary sale event.

(2) All salesmen participating in or present at a temporary sale event shall have their valid Kentucky license in their possession and available for display at all times during the event.

Section 8. A temporary sale event involving new motor vehicles shall not be allowed within a five (5) mile radius of the licensed location of a nonparticipating new motor vehicle dealer licensed to sell the same line make as will be displayed at the temporary sale event.

Section 9.

(1) Unless good cause is shown by the applicant, temporary display events shall not be approved for the same location or the same jurisdiction unless there is at least a twenty-four (24) hour period between the end of the last temporary display event held by the applicant and the beginning of the next temporary display event to be held by the applicant.

(2) Unless good cause is shown by the applicant, temporary sale events shall not be approved for the same location or the same jurisdiction unless there is at least a thirty (30) day period between the end of the last temporary sale event held by the applicant and the beginning of the next temporary sale event to be held by the applicant.

Section 10.

(1) The fee for a temporary sale event permit shall be $500 per participating dealer and shall be paid when the application is submitted.

(2) If the application is only for a temporary display event, the fee shall be twenty-five (25) dollars.

Section 11. Incorporation by Reference.

(1) "Application for Temporary Sale or Display Event", revised September 2008, is incorporated by reference.

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Motor Vehicle Commission, 105 Sea Hero Road, Suite 1, Frankfort, Kentucky 40601 Monday through Friday, 8 a.m., to 4:30 p.m.

History

• RELATES TO: KRS 186A.220(5), 190.030(7), (11), 190.035, 190.047
• STATUTORY AUTHORITY: KRS 190.020, 190.030(1), 190.073
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.030(7) requires a motor vehicle dealer to restrict the sale or display of motor vehicles to the location of the dealer's licensed place of business except that a motor vehicle dealer may have a temporary off-site sale or display of motor vehicles at a location other than the licensed place of business under certain conditions. KRS 190.030(1) authorizes the Motor Vehicle Commission to provide by administrative regulation for "other licensee activities and an appropriate fee". This administrative regulation establishes the application requirements for holding a temporary sale or display event.
• History: 605 KAR 001:060. 30 Ky.R. 2247; 2465; eff. 7-7-2004; 35 Ky.R. 1016; 1752; eff. 3-6-2009; Crt eff. 3-5-2019; Crt eff. 12-4-2025.

605 KAR 1:071 Change of ownership {#sec-605-kar-1-071 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:071}

Section 1.

(1) All licenses issued by the commission are non-transferable.

(2) A complete change of ownership of a licensee shall require a new Application for Motor Vehicle Dealer License, TC 98-1, incorporated by reference in 605 KAR 1:030 and the appropriate fee.

Section 2. Upon the sale or transfer of a licensee's business or the operating assets of a business to a new individual or entity, the new owner shall secure a new license for each location acquired, unless the acquirer has a valid motor vehicle dealer license for the locations.

Section 3.

(1) If the licensee is a corporation or limited liability company, the transfer of the controlling stock or controlling membership interest shall be reported to the commission within fifteen (15) days of the transfer.

(2) The commission may require a new license application based on the reported transfer.

Section 4. The commission shall be notified on a timely basis of the following:

(1) the death of a licensee who is a sole proprietor;

(2) the death or dissolution of a general partner of a partnership or limited partnership licensee; or

(3) the death or dissolution of an owner of the controlling interest of a corporate or limited liability company licensee.

Section 5. In the case of the death of a sole proprietor, the commission may, if the executor or administrator alone, or in conjunction with dealership employees, is capable of operating the business in compliance with KRS Chapter 190, allow a duly qualified executor or administrator to operate the business for the remainder of the calendar year. In the case of the death or dissolution of a partner, or the controlling owner of a corporation or limited liability company, the commission shall require a new Application for Motor Vehicle Dealer License, TC 98-1, incorporated by reference in 605 KAR 1:030 and the appropriate fee if the death or dissolution results in a material change to the financial, moral, or operational fitness of the licensee.

History

• RELATES TO: KRS 190.030
• STATUTORY AUTHORITY: KRS 190.030, 190.073
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.030 requires each separate entity acting as a dealer to have a license and to make needed reports to the Motor Vehicle Commission. This administrative regulation establishes requirements for change of ownership of dealer licenses, particularly if a sale or transfer occurs, so that the commission can be on notice of who actually holds a license.
• History: 48 Ky.R. 1675, 2206; eff. 2-16-2022.

605 KAR 1:091 Motor vehicle dealership names {#sec-605-kar-1-091 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:091}

Section 1. The trade name of a licensee shall incorporate the words used cars, auto sales, auto mart, or other similar wording clearly identifiable as a motor vehicle dealer.

(1) A licensee, other than a franchised new motor vehicle dealer, shall not use the name of any make of motor vehicle as a part of the dealership business name.

(2) The adoption of the name of a make of motor vehicle in a trade name or advertising in this manner shall constitute false or misleading advertising within the meaning of KRS 190.040 and shall be grounds for the denial, suspension, or revocation of a license.

Section 2. The commission shall deny an Application for Motor Vehicle Dealer License, TC 98-1, incorporated by reference in 605 KAR 1:030, if the name or proposed trade name of the licensee is the same or so similar to the name or trade name of an existing, unrelated licensee that the proposed name would confuse or otherwise mislead the public into believing that the two (2) licensees are the same or related.

(1) If no other grounds are cited for the denial of the Application for Motor Vehicle Dealer License, TC 98-1, incorporated by reference in 605 KAR 1:030, the applicant may reapply.

(2) Reapplication with a new trade name shall be submitted within ten (10) days of denial without remitting an additional application fee.

History

• RELATES TO: KRS 190.040
• STATUTORY AUTHORITY: KRS 190.030, 190.040, 190.073
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.040(1)(i) authorizes a license to be denied, suspended, or revoked for false or misleading advertising. This administrative regulation establishes provisions against false or misleading advertising that prohibit the use of the name of a make of motor vehicle in the business name of a used motor vehicle dealer and the use of a dealership name that is so similar to the name of an existing dealership that it would confuse or mislead the public.
• History: 48 Ky.R. 1677, 2207; eff. 2-16-2022.

605 KAR 1:131 Procedures {#sec-605-kar-1-131 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:131}

Section 1. Hearings. Hearings shall be conducted as established in this administrative regulation and KRS Chapter 13B. All testimony shall be transcribed.

Section 2. Appearances. A licensee who is a natural person may appear and be heard in person, or with or by a duly appointed attorney. A licensee that is an artificial entity shall be represented only by an attorney licensed or authorized to practice in Kentucky.

Section 3. Additional Hearings. The commission may, on its own motion, prior to its determination, require an additional hearing. Notice to all interested parties establishing the date of the hearing shall be given in writing by the executive director.

Section 4. Briefs. Briefs may be filed as a matter of right. All briefs shall be concise and shall be typewritten or printed. The time allowed for filing briefs shall be designated by the hearing officer.

Section 5. Continuances. Continuances shall be granted if a continuance is in the interest of justice and if requested at least forty-eight (48) hours in advance of the hearing date.

Section 6. Depositions. Depositions may be taken only when authorized by the hearing officer. The provisions of the Civil Rules governing the taking of depositions shall be applicable.

Section 7.

(1) Except as otherwise provided by KRS Chapter 13B, the rules of evidence governing civil proceedings in the courts of the Commonwealth of Kentucky shall govern hearings before the commission, unless the hearing officer relaxes the rules if the ends of justice will be better served by so doing.

(2) Judicial notice.

(a) If called to the attention of the hearing officer, judicial notice may be taken of any matter situated in the files of the commission, the Department of Revenue or the Transportation Cabinet, any action pending that involves the commission, or other matters of which a court of Kentucky may take judicial notice.

(b) A brief statement recognizing the matter shall be made in the transcript by the hearing officer.

Section 8. Ex Parte Contacts. A person shall not have ex parte contact with any member of the commission regarding any matter pending before the commission for review prior to final decision. A person in violation of this Section shall be identified on the record to the commission and any information provided through the ex parte contact shall be stricken from the commission's records and disregarded.

Section 9. Service of Motions, Pleadings. Copies of all motions and pleadings shall be served upon all interested parties, in addition to filing the required copies before the commission.

Section 10. Notices. A notice of a hearing sent by certified mail to the business address of the licensee shown on the latest application for a license shall be sufficient notice.

Section 11. Subpoenas and Subpoena Duces Tecum.

(1) The party desiring a subpoena shall make application at least five (5) days before the hearing date with the executive director of the commission.

(2) The application shall be in writing, and shall state the name and address of each witness required.

(3) If evidence other than oral testimony is required, such as documents or written data, the application shall establish the specific matter to be produced and sufficient facts to indicate that the matter is reasonably necessary to establish the cause of action or defense of the applicant.

Section 12. Costs of Hearing.

(1) If the commission, by issuance of a final order, finds that a violation has been committed by a licensee, or upholds the recommendation of the hearing officer in a matter involving an applicant for a motor vehicle dealer license, the commission may assess to the licensee or the applicant the fee charged to the commission for the transcription of the record and the fee charged by the hearing officer.

(2) If the hearing officer or the commission finds that the hearing has been held as a result of an allegation or charge lacking substantial merit, or if the hearing officer or commission finds that a party to the hearing has materially delayed or increased the cost of the hearing through its actions, the commission shall assess to the party bringing the allegation or causing the delay, the fee charged to the commission for transcription of the record and the fee charged by the hearing officer.

(3) The fee assessed for the transcription of the record and for the hearing officer shall be the actual costs charged to the commission for that particular hearing, and may be assessed in addition to any fine levied by the commission.

History

• RELATES TO: KRS 190.058, 190.062
• STATUTORY AUTHORITY: KRS 190.020, 190.058, 190.062
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.058 authorizes the Motor Vehicle Commission to adopt procedures to carry out the functions and duties conferred upon it by KRS Chapter 190. This administrative regulation establishes the proper form of procedure and practice before the Motor Vehicle Commission.
• History: 48 Ky.R. 1678; 2207; eff. 2-16-2022.

605 KAR 1:160 Motor vehicle component manufacturers {#sec-605-kar-1-160 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:160}

Section 1. Definition. "Motor vehicle component manufacturer" means any resident person, partnership, firm, association, corporation or trust, who manufactures or assembles components or constituent parts, for inclusion in the final assembly of new motor vehicles, in this state, but is not otherwise involved in the distribution or sale of motor vehicles.

Section 2. The license fee for a calendar year or any part of a calendar year for a motor vehicle component manufacturer shall be $100.

Section 3. The following statutes and administrative regulations shall apply to a licensee or applicant for a license under this administrative regulation: KRS 186.070, 190.020, 190.030(4), (5), (7), (9), (11), 190.033, 190.040, 190.053, 190.057, 190.058, 190.059, 605 KAR 1:070, and 605 KAR 1:130.

Section 4. A licensee licensed under this administrative regulation shall be prohibited from otherwise engaging in the business of a motor vehicle manufacturer or dealer.

History

• RELATES TO: KRS 186.070, 190.010-190.990
• STATUTORY AUTHORITY: KRS 190.015, 190.020, 190.030(1), 190.058(8), 190.073
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.030 authorizes the Motor Vehicle Commission to provide by administrative regulation for other licensee activities. The function of this administrative regulation is to provide a means for motor vehicle component manufacturers to qualify for a license and to otherwise conduct necessary business functions in accordance with applicable state laws and administrative regulations.
• History: 605 KAR 001:160. 14 Ky.R. 678; eff. 11-6-1987; 18 Ky.R. 474; eff. 10-1-1991; Crt eff. 3-5-2019; Crt eff. 12-4-2025.

605 KAR 1:170 Temporary sale or display event license for a motor vehicle dealer trade association {#sec-605-kar-1-170 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:170}

Section 1. "Metropolitan statistical area" means a specific geographic area as defined by the United States Department of Commerce, Bureau of the Census, and shown in Kentucky Commerce Cabinet 1987 Kentucky Economic Statistics, page 88, or updated editions thereof, said publication being adopted by reference herein. All documents incorporated by reference herein are on file for public inspection at the office of the Motor Vehicle Commission, 114 West Clinton Street, Frankfort, Kentucky 40601.

Section 2. No trade association of motor vehicle dealers may sponsor a display or sale of motor vehicles at any location unless an application for a temporary sale or display permit is made on forms provided by the licensor and filed with the licensor a minimum of five (5) days prior to the next regularly scheduled meeting of the licensor before the requested permit period. The permit shall state the duration of its validity which in no event shall exceed five (5) successive days, the location for which it is issued, the name of the sponsoring association, and the names of the participating dealers.

Section 3. A permit sought by a trade association of motor vehicle dealers shall authorize its membership's participation in a sale or display activity only at a location within the same metropolitan statistical area as the association, within this state.

Section 4. The fee for a temporary sale event permit shall be $100 per participating dealer.

History

• RELATES TO: 190.010-190.990
• STATUTORY AUTHORITY: 190.020, 190.030(1), 190.073
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.030 authorizes the Motor Vehicle Commission to provide by administrative regulation for "other licensee activities and an appropriate fee therefor." 605 KAR 1:150 provides for a temporary sale location permit. Kentucky is the location of several major regional vehicle association trade shows and sales each year. This administrative regulation addresses the participation of foreign members of an association in an association sponsored sale or display located within the same metropolitan statistical area as the association.
• History: 605 KAR 001:170. 14 Ky.R. 1712; eff. 3-10-1988; Crt eff. 2-18-2019; Crt eff. 3-5-2019; Crt eff. 12-4-2025.

605 KAR 1:191 Motor vehicle advertising {#sec-605-kar-1-191 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:191}

Section 1. Definitions.

(1) "Advertising" means any oral, written, or graphic statement, whether physical or electronic, which offers vehicles for sale or lease or that indicates the availability of vehicles, including any statements or representation made in a newspaper, pamphlet, circular, other publication, in radio or television, social media, on the internet, or contained in any notice, handbill, sign, billboard poster, bill catalog, letter, or business card.

(2) "Bait advertising" means:

(a) An alluring but insincere offer to sell or lease a product, to obtain leads to persons interested in buying merchandise of the type advertised and to switch consumers from the advertised product to another product for a higher price or on a basis more advantageous to the dealer; or

(b) Advertising a new motor vehicle at a price that does not include all equipment listed as standard equipment by the manufacturer without disclosing that fact, or failing to disclose any of that equipment for the purpose of advertising a low price and baiting the customer into charges above the advertised price.

(3) "Clear and conspicuous" means a statement, representation, or term differing from other statements, representations, or terms being made so as to be readily noticeable to the person to whom it is being disclosed either by its size, sound, length of time, color, placement in the ad, or other features.

(4) "Demonstrator" or "program" means a vehicle of the current or preceding model year that has never been the subject of a retail sale, and that has been used by dealership personnel for demonstrating performance ability.

(5) "Executive vehicle" or "official vehicle" mean, if so advertised, a vehicle that has been used exclusively by an executive or executives of the dealer franchisee.

Section 2. A licensee shall not use misleading or bait advertising. A practice shall not be pursued by an advertiser if the practice will discourage the sale of the advertised product with the intent and purpose of selling other merchandise instead.

Section 3.

(1) An advertisement for the sale or lease of new and used vehicles placed by or on behalf of a licensee shall clearly and conspicuously identify the dealership by including in the text of the advertisement the business name as it appears on the dealer's license. In a classified newspaper or similar on-line advertisements, the licensee may, as an alternative, use the word dealer in the text of the advertisement.

(2) The advertisement of any dealership inventory on a non-company social media account shall be considered an advertisement placed on behalf of the dealership subject to these regulations and the provisions of KRS Chapter 190.

(3) A new or used motor vehicle dealer advertising the sale or lease of new or used motor vehicles at more than one (1) licensed location shall use in the text of the advertisement the business name for each advertised location as the name appears on the dealer's license for the locations where the advertised vehicles are located.

(4) A new motor vehicle dealer advertising the sale or lease of new motor vehicles at more than one (1) licensed location shall specifically identify the makes of vehicles available at each advertised location.

Section 4.

(1) Except as established in subsection (2) of this section, if a specific new motor vehicle is advertised by a dealer as being for sale, that vehicle shall be:

(a) In the possession of the dealer;

(b) Shown; and

(c) Sold as advertised, illustrated, or described at the advertised price and terms, at the advertised address.

(2) The advertisement for the sale or lease of a specific new motor vehicle that is not in stock on the date of the advertisement shall:

(a) State:

1. Not in stock;

2. Order yours now; or

3. Other phrases of similar import that clearly indicate the vehicle is not available for immediate delivery; and

(b) Disclose a reasonable estimate of the period of time in which delivery will be made.

(3) If an advertisement pertains to one (1) specific vehicle only, this fact shall be disclosed in the advertisement. Listing a stock number shall be adequate disclosure.

Section 5. The following statements shall not be used in advertising by a dealer, unless the statements are absolutely true with no qualifications:

(1) Statements such as:

(a) Write your own deal;

(b) Name your own price;

(c) Name your own monthly payments;

(d) Appraise your own car; or

(e) Statements with similar meaning;

(2) Statements such as:

(a) Everybody financed;

(b) No credit rejected;

(c) We finance anyone; or

(d) Other statements representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit;

(3) Statements representing that no other dealer grants greater allowances for trade-ins, however stated; and

(4) Statements implying that because of its large sales volume, a new vehicle dealer is able to purchase vehicles for less than another dealer selling the same make of vehicles.

(5)

(a) Claims such as first, largest, biggest, or words of similar import shall not be used unless they are valid at the time the claims are made.

(b) If the claims are qualified with regard to area, location, time, or other limitations, upon the direction of the commission, the dealer shall incorporate within the advertisement the terms of the qualification.

Section 6. Retail advertising shall not state or imply that the dealer:

(1) Is selling vehicles in a manner other than through normal retail channels, including use of terms such as wholesale, factory sale, factory discount; or

(2) Has a special relationship or connection to the manufacturer that other dealers do not have, including use of terms such as factory outlet, factory branch, or similar terms used in connection with the manufacturer's name.

Section 7. It shall be false or misleading advertising to advertise the sale of a vehicle having only a Kentucky salvage title unless the advertisement conspicuously discloses that the vehicle has a salvage title and that the vehicle cannot be registered and operated on the roadways in Kentucky unless the vehicle is repaired and issued a rebuilt title.

Section 8. Because the amount of trade-in allowance will vary depending on the condition, model, and age of a buyer's vehicle, no specific trade-in amount or range of amounts shall be used in advertising.

Section 9.

(1) An asterisk (*) may be used to give additional information about a word or term.

(2) Use of one (1) or more footnotes or asterisks which, alone or in combination, contradict, confuse, materially modify, or unreasonably limit a principal message of the advertisement shall not be used.

Section 10.

(1) Any disclosure appearing in advertisements shall clearly and conspicuously feature all necessary information in a manner that can be read and understood or that can be heard and understood.

(2) The minimum duration of printed language in a television advertisement shall be five (5) seconds for every three (3) lines.

Section 11. If an advertisement contains an offer of a discount on a new vehicle, the amount of the discount shall be stated by reference to the actual dollar figure of the manufacturer's suggested retail price of the vehicle plus the retail price of dealer-added options.

Section 12. The words free, gift, or words of similar import may be used in advertising only if the advertiser is offering an unconditional gift.

Section 13. The manufacturer's suggested retail price (MSRP) dollar figure of a new motor vehicle if advertised in local media by a manufacturer, distributor, or regional advertisement council or association shall include all costs and charges for the vehicle advertised including destination charges if those charges are uniform regardless of destination throughout the state. Destination charges subject to variance within the state and dealer preparation charges may be excluded from the price, if the advertisement conspicuously states that the costs and charges are excluded.

(1) If the price of a vehicle is advertised in local media by a licensee, the vehicle shall be fully identified as to year, make, model, and if new or used.

(2) The stated price shall include all charges that the customer is required to pay for the vehicle, including freight or destination charges, dealer preparation, dealer handling, additional dealer profit, additional dealer margin, and undercoating or rustproofing if the vehicle is already so equipped.

(3) The advertised price at which the dealer is advertising a particular motor vehicle shall be the price before consideration for a down-payment, a trade-in allowance, or other similar allowances.

Section 14. If the words list or sticker or words of similar import are used in a new motor vehicle advertisement, the words shall only refer to the actual dollar figure of the manufacturer's suggested retail price (MSRP) plus the retail price of dealer-added options.

Section 15. If any advertisement relates to a lease, the advertisement shall clearly and conspicuously disclose that the advertisement is for the lease of a vehicle.

Section 16. A dealer offering to sell a demonstrator, program, official, or executive vehicle shall clearly and conspicuously identify former use.

(1) A demonstrator shall be offered for sale as such only by a dealer who holds a valid sales agreement or franchise for the sale of the same line make of motor vehicle.

(2) A vehicle advertised as official or executive vehicles shall not have been sold or leased to a retail customer prior to the appearance of the advertisement.

Section 17. Motor vehicle financing shall not be advertised at a reduced interest rate if the cost thereof would be directly or indirectly borne by the buyer unless the advertisement discloses that rate shall affect the negotiated price of the vehicle to the buyer.

Section 18. In any action pursuant to this administrative regulation, truth shall be an absolute defense.

History

• RELATES TO: KRS 190.010-190.990
• STATUTORY AUTHORITY: KRS 190.015, 190.020, 190.030, 190.040, 190.058, 190.073
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.040(1)(i) requires that a motor vehicle dealer shall not engage in false or misleading advertising. KRS 190.073 requires the Motor Vehicle Commission to promulgate administrative regulations for the purpose of carrying out the provisions of KRS Chapter 190. This administrative regulation establishes examples of what constitutes false or misleading advertising.
• History: 48 Ky.R. 1680, 2208; eff. 2-16-2022.

605 KAR 1:211 Nonprofit motor vehicle dealer requirements and licensing {#sec-605-kar-1-211 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:211}

Section 1. In addition to KRS 190.010(29) and the application requirements established in 605 KAR 1:030, Sections 1 and 3, a nonprofit motor vehicle dealer applicant shall certify that it is an organization exempt from taxation pursuant to 26 U.S.C. Section 501(c)(3) of the Internal Revenue Code and that it has made all required filings with the Internal Revenue Service.

Section 2. In addition to KRS 190.010(30), an applicant shall demonstrate to the commission that the applicant's sales program serves only clients meeting two (2) or more of the following disability or disadvantaging conditions:

(1) The client's household income is at or below the current federal Poverty Guidelines as established by the United States Department of Health and Human Services;

(2) The client has been designated as physically disabled by any state or federal agency;

(3) The client has an actual need for a motor vehicle in order to meet work, educational, or medical needs and the client cannot obtain a reliable vehicle without the dealer's assistance;

(4) The client has received state or federal funding specifically designed to allow the purchase of a vehicle for personal or household use; or

(5) The client has experienced the loss of a functioning vehicle as a result of an event certified as a natural disaster by any applicable state or federal agency.

Section 3. Upon the submission of its initial application and each renewal application thereafter, the applicant or licensee shall submit the current IRS Form 990 filed by the organization. If the applicant or licensee files a short form version of IRS Form 990, the commission may require the applicant or licensee to submit additional information which would be contained on IRS Form 990 if the commission has reasonable cause to doubt the financial responsibility of the applicant to comply with the provisions of KRS Chapter 190.

Section 4. A nonprofit motor vehicle dealer that is not also licensed as either a new motor vehicle dealer or a used motor vehicle dealer shall not sell any vehicles except as allowed by KRS 190.032(3).

History

• RELATES TO: KRS 190.010 (29), (30), 190.032
• STATUTORY AUTHORITY: KRS 190.032, 190.073
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.032 requires the Motor Vehicle Commission to establish requirements for initial application for and renewal of a license to be a nonprofit motor vehicle dealer and directs the commission to establish relevant requirements that shall include standards for disability or disadvantaging conditions concerning the clients served by nonprofit motor vehicle dealers. This administrative regulation establishes requirements and standards for nonprofit motor vehicle dealer requirements and licensing.
• History: 48 Ky.R. 1682, 2209; eff. 2-16-2022.

605 KAR 1:215 Licensing fees {#sec-605-kar-1-215 omnilex-key=us-ky-regs-official--title-605--605 KAR 1:215}

Section 1. Licensing Fees. The license fee for a calendar year, or part thereof, shall be as follows:

(1) For new motor vehicle dealers, $200 for each office or branch or agent thereof, plus $200 for a supplemental license for each used car lot not immediately adjacent to the office or to a branch;

(2) For used motor vehicle dealers, $200 for each office or branch or agent thereof;

(3) For motor vehicle leasing dealers, $200 for each office or branch or agent thereof;

(4) For restricted motor vehicle dealers, $200 for each office or branch or agent thereof;

(5) For motorcycle dealers, $200 for each office, branch, or agent thereof;

(6) For motor vehicle manufacturers, $200; and for each factory branch in this state, $200;

(7) For distributors, motor vehicle auction dealers or wholesalers, $200;

(8) For motor vehicle or recreational vehicle salespersons, forty dollars ($40), to be paid by the licensed dealer for every salesperson the dealer employs;

(9) For factory representatives, or distributor branch representatives, $200;

(10) For automotive mobility dealers, $200;

(11) For nonprofit motor vehicle dealers, $200;

(12) For nonprofit motor vehicle dealer salespersons, a license fee shall not be imposed;

(13) For recreational vehicle manufacturers or distributors, $200; and

(14) For new recreational vehicle dealers, $200.

Section 2. Renewal and Renewal Fees.

(1) Pursuant to KRS 190.030(5) all licenses expire December 31 of the calendar year for which they are granted. Licenses in good standing and that do not have outstanding fines or charges owed to the commission may be renewed by the licensee for the next calendar year. Renewal shall be by submitting a Dealer License Renewal Application, as established in 605 KAR 1:030, and the appropriate fee to the Motor Vehicle Commission prior to December 31. Licenses that have outstanding fines or charges owed to the commission, have been revoked, suspended, or are not in good standing shall not be renewed.

(2) The fee for a license renewal shall be the fee established in Section 1 for the applicable license type being renewed.

(3) A license shall not be renewed for a new calendar year if events established in KRS 190.030(7)(a) (change of location) or 605 KAR 1:070 (change of ownership) have occurred that have not been approved by the commission. In such case, the licensee shall submit a new Application for Motor Vehicle Dealer License, TC 98-1, incorporated by reference in 605 KAR 1:030 reflecting the changes in order to obtain a license for the new calendar year.

History

• RELATES TO: KRS 190.030
• STATUTORY AUTHORITY: KRS 190.030, 190.073
• NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.030(6)(a) requires the Motor Vehicle Commission to promulgate administrative regulations in accordance with KRS Chapter 13A to establish fees for licenses issued by the Motor Vehicle Commission. This administrative regulation establishes the fees associated with acquiring and renewing licenses.
• History: 47 Ky.R. 2766; 48 Ky.R. 1130; eff. 11-15-2021.