MOTOR VEHICLE SALES -- RECYCLERS

KRS tit. XVI, ch. 190

in effect

KRS 190.010 Definitions for chapter

190.010. Definitions for chapter As used in this chapter: (1) "Adapted vehicle" means a new or used motor vehicle especially designed or modified for use by an aging or disabled person; (2) "Automobile, vehicle, or machinery recycler" means any place where five (5) or more junked, wrecked, or nonoperative automobiles, vehicles, machines and other similar scrap or salvage materials, excluding inoperative farm equipment, are deposited, parked, placed, or otherwise located, or any business where ten (10) or more junked, wrecked, or nonoperative automobiles, vehicles, machines, and other similar scrap or salvage materials are deposited, parked, placed, or otherwise located; (3) "Automotive mobility dealer" means any motor vehicle dealer who: (a) Exclusively engages in the business of selling, offering to sell, or soliciting or advertising the sale of adapted vehicles; (b) Possesses adapted vehicles exclusively for the purpose of resale, either on his or her own account or on behalf of another, as his or her primary business or incidental thereto; or (c) Engages in the business of: 1. Selling, installing, or servicing; 2. Offering to sell, install, or service; or 3. Soliciting or advertising the sale, installation, or servicing of; mobility equipment or other modifications specifically designed to facilitate the use or operation of a motor vehicle by an aging or disabled person; (4) "Business" means any person engaged as an automobile dealer, body shop operator, wrecker service operator, service station operator, or other activity that may buy, sell, or repair nonoperative vehicles, automobiles, or machinery as a service; (5) "Client" means a person who has an open case file with a nonprofit organization or governmental agency and who meets the standards for disability or disadvantaging condition as established in administrative regulations promulgated by the commission pursuant to KRS 190.032; (6) "Commission" means the Motor Vehicle Commission; (7) "Commissioner" means the commissioner of the department; (8) "Department" means the Department of Vehicle Regulation; (9) "Designated family member": (a) Means the spouse, child, grandchild, parent, brother, or sister of a dealer who: 1. In the case of a deceased dealer: a. Is entitled to inherit the dealer's ownership interest in the dealership under the terms of the dealer's will; b. Has otherwise been designated in writing by a deceased dealer to succeed him or her in the motor vehicle dealership; or c. Under the laws of intestate succession of this state is entitled to inherit the interest; or 2. In the case of an incapacitated dealer, has been appointed by a court as the legal representative of the dealer's property; and (b) Includes the appointed and qualified personal representative and testamentary trustee of a deceased dealer; (10) "Established place of business" means a permanent, enclosed commercial building located within this state, easily accessible and open to the public at all reasonable times, and at which the business of a vehicle dealer, including the display and repair of vehicles, may be lawfully carried on in accordance with the terms of all applicable building codes, zoning, and other land use regulatory ordinances; (11) "Franchise" means the agreement or contract between any new motor vehicle manufacturer, written or otherwise, and any new motor vehicle dealer that purports to fix the legal rights and liabilities of the parties to an agreement or contract, and pursuant to which the dealer purchases and resells the franchise product, along with any addendums to the franchise agreement; (12) "Fraud" means: (a) A misrepresentation in any manner, whether intentionally false or due to gross negligence, of a material fact; (b) A promise or representation not made in good faith; or (c) An intentional failure to disclose material fact; (13) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing, as defined and interpreted in KRS 355.1-201(2)(u); (14) "Licensor" means the commission; (15) "Manufacturer": (a) Means any person, partnership, firm, association, corporation, or trust, resident or nonresident, who manufactures or assembles new motor vehicles, or imports for distribution through distributors of new motor vehicles, or any partnership, firm, association, joint venture, corporation, or trust, resident or nonresident, which is controlled by the manufacturer; and (b) Includes the following terms, as defined: 1. "Distributor" means any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers, or who maintains factory representatives, or who controls any person, firm, association, corporation, or trust, resident or nonresident, who in whole or in part offers for sale, sells, or distributes any new motor vehicle to new motor vehicle dealers; 2. "Distributor branch" means a branch office maintained by a distributor or wholesaler similarly to a factory branch and for the same purposes; 3. "Distributor representative" means a representative employed by a distributor, distributor branch, or wholesaler similarly to a factory representative; 4. "Factory branch" means a branch office maintained by a manufacturer for the purpose of selling, or offering for sale, new motor vehicles to a distributor, wholesaler, or new motor vehicle dealer, or for directing or supervising, in whole or in part, factory or distributor representatives, and includes any sales promotion organization, whether the same be a person, firm, or corporation, which is engaged in promoting the sale of new motor vehicles in this state of a particular brand or make to new motor vehicle dealers; and 5. "Factory representative" means a representative employed by a manufacturer, distributor, or factory branch for the purpose of making or promoting for the sale of his or her, its, or their new motor vehicles, or for supervising or contracting with his or her, its, or their dealers, or prospective dealers; (16) "Material recycler" means any establishment or place of business, including garbage dumps and sanitary fills, maintained, operated, or used for storing, keeping, buying, or selling of old or scrap copper, brass, rope, rags, batteries, paper, trash, rubber debris, waste, or motor vehicle parts, iron, steel, and other old or scrap ferrous or nonferrous material; (17) "Mobility equipment" means equipment specifically designed to facilitate the use or operation of a motor vehicle by an aging or disabled person; (18) "Moped" means a motorized bicycle with pedals whose frame design may include one (1) or more horizontal crossbars supporting a fuel tank, or a motorized bicycle with pedals and with a step through type frame rated no more than two (2) brake horsepower, a cylinder capacity not exceeding fifty (50) cubic centimeters, an automatic transmission not requiring clutching or shifting by the operator after the drive system is engaged, and the capability of a maximum speed of not more than thirty (30) miles per hour; (19) "Motor vehicle": (a) Means every vehicle intended primarily for use and operation on the public highways that is self-propelled, including low-speed motor vehicles as defined in KRS 186.010; and (b) Does not include any recreational vehicle or farm tractor or other machines and tools used in the production, harvesting, or care of farm products; (20) "Motor vehicle auction dealer" means any person primarily engaged in the business of offering, negotiating, or attempting to negotiate a sale, purchase, or exchange of a motor vehicle through auction; (21) "Motor vehicle dealer": (a) Means any person engaged in the business of selling, offering to sell, soliciting, or advertising the same, of new or used motor vehicles, or possessing motor vehicles for the purpose of resale, either on his or her own account, or on behalf of another, either as his or her primary business or incidental thereto; and (b) Does not include: 1. Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court, and any bank, trust company, or lending institution that is subject to state or federal regulation, with regard to its disposition of repossessed motor vehicles; 2. Public officers while performing their official duties; or 3. Employees of persons enumerated in subparagraphs 1. and 2. of this paragraph, when engaged in the specific performance of their duties as employees; (22) "Motor vehicle leasing dealer": (a) Means any person engaged in the business of regularly making available, offering to make available, or arranging for another person to use a motor vehicle pursuant to a bailment, lease, or other contractual arrangemen t under which a charge is made for its use at a periodic rate for at least a monthly term, and title to the motor vehicle is in a person other than the user; and (b) Does not mean a manufacturer or its affiliate leasing to its employees or to dealers; (23) "Motor vehicle salesperson" means any person who is employed as a salesperson by a motor vehicle dealer to sell motor vehicles, or who is employed as an auctioneer by a motor vehicle auction dealer to sell motor vehicles at auction; (24) "Motorcycle dealer" means a motor vehicle dealer who exclusively sells, offers to sell, solicits, or advertises motorcycles, including alternative -speed motorcycles and autocycles as those terms are defined in KRS 186.010. As used in this subsection, "motorcycles" does not include mopeds; (25) "New motor vehicle" means a vehicle that is in the possession of the manufacturer, distributor, or wholesaler, or has been sold to the holders of a valid sales and service agreement, franchise, or contract, granted by the manufacturer , distributor, or wholesaler for the sale of the make of new vehicle, which is new, and on which the original title has not been issued from the franchised dealer; (26) "New motor vehicle dealer" means a vehicle dealer who holds a valid sales and service agreement, franchise, or contract, granted by the manufacturer, distributor, or wholesaler for the sale of the manufacturer's new motor vehicles; (27) "New motor vehicle dealership facility" means an established place of business which is being used or will be used primarily for the purpose of selling, buying, displaying, repairing, and servicing motor vehicles; (28) "New recreational vehicle dealer" has the same meaning as in KRS 190A.010; (29) "Nonprofit motor vehicle dealer" means a nonprofit organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code that purchases motor vehicles that it may offer for purchase to clients and other individuals who meet the definition of client and who are referred to the organization by public or private social service agencies; (30) "Operator" means a person, firm, or corporation operating an automobile, v ehicle, or machinery recycler, or material recycler establishment or place of business, or the allowing of such automobile, vehicle, or machinery recycler, or material recycler establishment or place of business to be placed or deposited, or to remain on premises owned or controlled by such person, firm, or corporation; (31) "Person" means any individual, firm, agency, company, association, partnership, business trust, trust, estate, joint stock company, body politic, corporation, or other legal entity; (32) "Recreational vehicle" means a vehicle that: (a) Is primarily designed as temporary living quarters for noncommercial recreation or camping use; (b) Has its own motive power or is towed by another vehicle; (c) Is regulated by the National Highway Traffic Safety Administration as a vehicle; and (d) Does not require a special highway use permit; (33) "Restricted motor vehicle dealer" means: (a) A motor vehicle dealer who exclusively sells, offers to sell, solicits, or advertises specialized motor vehicles, including but not limited to funeral coaches and emergency vehicles; or (b) An automotive recycling dealer engaged in the business of dismantling, salvaging, or recycling salvage motor vehicles for the purpose of harvesting used parts, components, assemblies, and recyclable materials for resale, reuse, or reclamation; (34) "Road" means any county, state, federal, or limited access highway or turnpike, including bridges and bridge approaches; (35) "Sale" means the issuance, transfer, agreement for transfer, exchange, lease, pledge, hypothecation, mortgage in any form, whether by transfer in trust or otherwise, of any motor vehicle or interest in it, or of any franchise related to it, as well as any option, subscription, other contract, or solicitation looking to a sale, offer to attempt to sell in any form, whether spoken or written. A gift or delivery of any motor vehicle or franchise with respect thereto, with or as a bonus on account of the sale of anything, shall be deemed a sale of the motor vehicle or franchise; and (36) "Used motor vehicle dealer": (a) Means any person engaged in the business of selling at retail, displaying, offering for sale, or dealing in used motor vehicles or autocycles as defined in KRS 186.010; and (b) Does not mean: 1. Any person engaged in the business of dismantling, salvaging, or rebuilding motor vehicles by means of using used parts who does not have a used motor vehicle dealer license; or 2. Any public officer performing his or her official duties. Effective: April 14, 2026 History: Repealed and reenacted 2026 Ky. Acts ch. 182, sec. 16, effective April 14, 2026. -- Amended 2023 Ky. Acts ch. 7, sec. 1, effective June 29, 2023. -- Amended 2017 Ky. Acts ch. 69, sec. 4, effective June 29, 2017. -- Amended 2014 Ky. Acts ch. 27, sec. 15, effective January 1, 2015. -- Amended 2010 Ky. Acts ch. 43, sec. 2, effective July 15, 2010. -- Amended 2009 Ky. Acts ch. 103, sec. 4, effective June 25, 2009. -- Amended 2007 Ky. Acts ch. 125, sec. 1, effective June 26, 2007. -- Amended 2000 Ky. Acts ch. 23, sec. 1, effective February 22, 2000. -- Amended 1998 Ky. Acts ch. 565, sec. 6, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 111, sec. 1, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 186, sec. 1, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 452, sec. 1, effective July 14, 1992. -- Amended 1984 Ky. Acts ch. 111, sec. 105, effective July 13, 1984; and ch. 357, sec. 1, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 194, sec. 5, effective July 15, 1982; ch. 373, sec. 1, effective July 15, 1982; and ch. 374, sec. 4, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 349, sec. 10, effective June 17, 1978. -- Amended 1974 Ky. Acts ch. 74, Art. IV, sec. 20(2), (3). -- Amended 1972 Ky. Acts ch. 211, sec. 1. -- Amended 1966 Ky. Acts ch. 175, sec. 1. -- Created 1956 Ky. Acts ch. 161, sec. 1.

KRS 190.015 Public policy declared

190.015. Public policy declared The Legislature finds and declares that the distribution and sale of vehicles within this state vitally affects the general economy of the state and the public interest and the public welfare, and that in order to promote the public interest and public welfare, and in the exercise of its police power, it is necessary to regulate and license vehicle manufacturers, distributors or wholesalers, brokers and auctioneers, and factory or distributor representatives, and to regulate and license dealers of vehicles doing business in this state, in order to prevent frauds, impositions, and other abuses upon its citizens, and to protect and preserve the investments and properties of the citizens of this state. Effective: July 15, 1982 History: Amended 1982 Ky. Acts ch. 373, sec. 2, effective July 15, 1982. -- Created 1966 Ky. Acts ch. 175, sec. 6.

KRS 190.020 Commission to issue licenses and supervise licensees

190.020. Commission to issue licenses and supervise licensees The commission shall, under administrative regulations promulgated by it, issue the licenses provided for by KRS 190.010 to 190.080 and shall have supervision over the licensees thereunder in respect to all the provisions of KRS 190.010 to 190.080. Effective: July 13, 1984 History: Amended 1984 Ky. Acts ch. 357, sec. 2, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 374, sec. 5, effective July 15, 1982. -- Amended 1966 Ky. Acts ch. 175, sec. 2. -- Created 1956 Ky. Acts ch. 161, sec. 2.

KRS 190.030 License requirement -- Application for license -- Time within which license to be granted or refused -- Licenses to be displayed -- Administrative regulations establishing fees -- Temporary sale or display -- Bond -- Reports by motor vehicle dealer and new recreational dealer

190.030. License requirement -- Application for license -- Time within which license to be granted or refused -- Licenses to be displayed -- Administrative regulations establishing fees -- Temporary sale or display -- Bond -- Reports by motor vehicle dealer and new recreational dealer (1) (a) Except as provided in paragraph (b) of this subsection, a motor vehicle dealer, new, used, or auction motor vehicle dealer, nonprofit motor vehicle dealer, motor vehicle leasing dealer, restricted motor veh icle dealer, motorcycle dealer, broker, wholesaler, automotive recycling dealer, new recreational vehicle dealer, a motor vehicle salesperson, or a new recreational vehicle salesperson shall not engage in business in this state at any location without a license issued for that location as provided in KRS 190.010 to 190.080. (b) An entity identified in paragraph (a) of this subsection with an established place of business may conduct sales activities via the internet and deliver vehicles sold or leased by the licensed dealer to a customer at the customer's residence or other suitable location, as long as the sale, lease, or delivery is requested by the customer. (c) If a person licensed as a motor vehicle dealer or new recreational vehicle dealer acts as a motor vehicle salesperson or a new recreational vehicle salesperson, that person shall secure a motor vehicle salesperson's license or a new recreational vehicle salesperson's license in addition to a license for a motor vehicle dealer or for a new recreational vehicle dealer. (2) A manufacturer of motor vehicles, recreational vehicles, factory branch, distributor, distributor branch, or wholesaler shall not engage in business in this state without a license as provided in KRS 190.010 to 190.080. (3) A factory representative or distributor representative shall not engage in business in this state without a license as provided in KRS 190.010 to 190.080. (4) An automobile, vehicle, or machinery recycler, or material recycler shall not engage in business in this state without a license as provided in KRS 190.350 to 190.365. (5) Application for license shall be made to the licensor, at a time, in a form, and containing information the licensor shall require and shall be accompanied by the required fee. The licensor may require, as part of the application process, information relating to the applicant's solvency, financial standing, or other pertinent matter commensurate with the safeguarding of the public interest in the locality in which the applicant proposes to engage in business. The information may be considered by the licensor in determining the fitness of the applicant to engage in business as set forth in this section. (6) All licenses shall be granted or refused within thirty (30) days after submission of a complete application and shall expire, unless revoked or suspended, on December 31 of the calendar year for which they are granted. If a complaint of unfair cancellation of dealer franchise is in the process of being heard, a replacement application for the franchise shall not be considered until a decision is rendered by the commission. (7) (a) The commission shall promulgate administrative regulations in accordance with KRS Chapter 13A to establish annual license fees, not to exceed five hundred dollars ($500), for: 1. New motor vehicle dealers; 2. Used motor vehicle dealers; 3. Motor vehicle leasing dealers; 4. Restricted motor vehicle dealers; 5. Motorcycle dealers; 6. Motor vehicle manufacturers and factory branches; 7. Distributors, motor vehicle auction dealers, and wholesalers; 8. Factory representatives and distributor branch representatives; 9. Automotive mobility dealers; 10. Nonprofit motor vehicle dealers; 11. Recreational vehicle manufacturers and distributors; 12. New recreational vehicle dealers; 13. Automobile, vehicle, or machinery recyclers; and 14. Material recyclers. (b) The commission shall promulgate administrative regulations in accordance with KRS Chapter 13A to establish annual license fees, not to exceed fifty dollars ($50), for motor vehicle salespersons and new recreational vehicle salespersons. (c) In addition to the annual license fees established under paragraph (b) of this subsection, the commission may promulgate administrative regulations in accordance with KRS Chapter 13A to establish licenses and appropriate fees for other licensee activities. (d) A license fee imposed on motor vehicle salespersons and new recreational vehicle salespersons shall be paid by the licensed dealer for every salesperson the dealer employs. (e) A license fee shall not be imposed on nonprofit motor vehicle dealer salespersons. (8) (a) The licenses of dealers, manufacturers, factory branches, distributors, and distributor branches shall specify the location of the office or branch and shall be conspicuously displayed there. If the location is changed, the licensor shall endorse the change of location on the license. A licensee shall not be charged a fee for changing locations. A change of location shall require a new application. (b) 1. A motor vehicle dealer who is not a new motor vehicle dealer may conduct a temporary sale or display in the county where the dealer is licensed to conduct business. 2. A new motor vehicle dealer may conduct a temporary sale or display in the dealer's market as defined in KRS 190.047(6). 3. A recreational vehicle dealer may conduct a temporary sale or display in the county where the dealer is licensed to conduct business or in any other county where there is no licensed recreational vehicle dealer. (c) A temporary sale or display may be conducted under this subsection if the temporary sale or display is permitted under an enabling ordinance enacted by the city, county, urban-county government, or consolidated local government within whose boundaries the temporary sale or display is to be conducted. A temporary sale or display shall be advertised as temporary in nature and shall consist of a representative sampling of the inventory of each participating licensee. (d) This subsection shall not apply to a nonprofit motor vehicle dealer. (9) Every salesperson, factory representative, or distributor representative shall carry his or her license when engaged in business, and display it upon request. The license shall name his or her employer; and in case of a change of employer, the salesperson shall immediately mail his or her license to the licensor who shall endorse the change on the license without charge. (10) If the licensor has reasonable cause to doubt the financial responsibility or the compliance by the applicant or licensee with the provisions of this statute, the licensor may require the applicant or licensee to furnish and maintain a bond in a form, amount and with sureties up to one hundred thousand dollars ($100,000), conditioned upon the applicant or licensee complying with the provisions of the statutes applicable to the licensee. The bonds shall be executed in the name of the State of Kentucky for the benefit of any aggrieved parties, but the penalty of the bond shall not be invoked except after a court adjudication. The commission may promulgate administrative regulations to permit the applicant to submit evidence, in lieu of posting bond, that reliable financial arrangements, deposits, or commitments exist providing assurance, substantially equivalent to that afforded by a bond complying with this subsection, for payment on conditions and indemnity set forth in this subsection. The bonding requirements of this subsection shall not apply to manufacturers, factory branches, and their agents. (11) Application for dealer's license shall be submitted to the commission and contain information the commission may require. A motor vehicle dealer, unless licensed under KRS 190.010 to 190.080, shall not be permitted to register, receive, or use any motor vehicle registration plates. (12) Every motor vehicle dealer or new recreational vehicle dealer licensed in accordance with this section shall make reports to the licensor at intervals and show information the licensor may require. Effective: April 14, 2026 History: Amended 2026 Ky. Acts ch. 182, sec. 17, effective April 14, 2026. -- Amended 2022 Ky. Acts ch. 53, sec. 1, effective July 14, 2022. -- Amended 2021 Ky. Acts ch. 156, sec. 15, effective June 29, 2021; and ch. 190, sec. 14, effective June 29, 2021. -- Amended 2014 Ky. Acts ch. 27, sec. 16, effective January 1, 2015; and ch. 83, sec. 1, effective July 15, 2014. -- Amended 2010 Ky. Acts ch. 43, sec. 3, effective July 15, 2010. -- Amended 2014 Ky. Acts ch. 83, sec. 2, effective July 15, 2014. -- Amended 2007 Ky. Acts ch. 125, sec. 3, effective June 26, 2007. -- Amended 2003 Ky. Acts ch. 13, sec. 1, effective June 24, 2003. -- Amended 2000 Ky. Acts ch. 216, sec. 1, effective July 14, 2000. -- Amended 1994 Ky. Acts ch. 186, sec. 2, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 452, sec. 2, effective July 14, 1992. -- Amended 1984 Ky. Acts ch. 357, sec. 3, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 373, sec. 3, effective July 15, 1982; and ch. 374, sec. 6, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 313, sec. 1, effective June 17, 1978. -- Amended 1974 Ky. Acts ch. 74, Art. IV, sec. 20(2). -- Amended 1966 Ky. Acts ch. 175, sec. 3. -- Created 1956 Ky. Acts ch. 161, sec. 3. Legislative Research Commission Note (6/29/2021). This statute was amended by 2021 Ky. Acts chs. 156 and 190. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 190, which was last enacted by the General Assembly, prevails under KRS 446.250. Legislative Research Commission Note (1/1/2015). This statute was amended by 2014 Ky. Acts chs. 27 and 83. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 83, which was last enacted by the General Assembly, prevails under KRS 446.250.

KRS 190.031 Automotive mobility dealers -- License and regulation requirements

190.031. Automotive mobility dealers -- License and regulation requirements (1) Any person, prior to engaging or continuing in the business of an automotive mobility dealer after June 26, 2007, shall obtain an automotive mobility dealer license from the commission. (2) (a) An automotive mobility dealer shall be licensed and regulated by the commission under the provisions of this chapter. (b) The commission shall, by administrative regulations promulgated under KRS Chapter 13A, establish requirements for initial application for and renewal of a license to be an automotive mobility dealer. The commission's regulations establishing requirements for automotive mobility dealers shall include provisions for automotive mobility dealers to meet reasonable and appropriate quality assurance requirements. These requirements may include: 1. Appropriate training by automotive mobility dealers regarding adapted vehicle usage; 2. Driver evaluation by automotive mobility dealers; and 3. A requirement that automotive mobility dealers obtain and maintain insurance in an amount to be established by the commission. The commission shall have the power to promulgate any other regulations that are necessary to implement this section. (c) The commission shall immediately suspend the license of an automotive mobility dealer if it determines that the dealer has sold or modified a vehicle that does not comply with this section or any administrative regulations promulgated thereunder. A dealer whose license is suspended under this paragraph shall be permitted to appeal the suspension in accordance with KRS Chapter 13B. (3) A licensed automotive mobility dealer shall have the right to display, inventory, advertise, and offer for sale any adapted vehicle. Effective: June 26, 2007 History: Created 2007 Ky. Acts ch. 125, sec. 2, effective June 26, 2007.

KRS 190.032 Nonprofit motor vehicle dealers -- License and regulation requirements

190.032. Nonprofit motor vehicle dealers -- License and regulation requirements (1) A nonprofit organization, prior to engaging in the business of a nonprofit motor vehicle dealer, shall obtain a nonprofit motor vehicle dealer license from the commission. (2) A nonprofit motor vehicle dealer and persons who act as salespersons for a nonprofit motor vehicle dealer shall be licensed and regulated by the commission under this chapter, except that a nonprofit motor vehicle dealer shall not be required to comply with KRS 190.030(8) or 190.035. (3) A nonprofit motor vehicle dealer may sell vehicles only to: (a) A person who is a client of the nonprofit organization; (b) A person referred by other nonprofit organizations or governmental agencies who meets the definition of client; or (c) A licensed motor vehicle dealer or automotive recycling dealer. (4) The commission shall promulgate administrative regulations in accordance with KRS Chapter 13A to establish requirements for initial application for and renewal of a license to be a nonprofit motor vehicle dealer and standards for disability and disadvantaging condition. In addition, the commission may promulgate additional administrative regulations that are necessary to implement this section. Effective: April 14, 2026 History: Amended 2026 Ky. Acts ch. 182, sec. 27, effective April 14, 2026. -- Created 2010 Ky. Acts ch. 43, sec. 1, effective July 15, 2010.

KRS 190.033 Insurance or bond required of licensees -- Exemption

190.033. Insurance or bond required of licensees -- Exemption (1) Except as provided in subsection (4) of this section, a motor vehicle dealer's license, new recreational vehicle dealer's license, motor vehicle auction dealer's license, or wholesaler's license shall not be issued or renewed unless the applicant or holder of the license has on file with the commission an approved indemnifying bond or insurance policy that complies with subsection (2) of this section. (2) An indemnifying bond or insurance policy shall: (a) Be issued by: 1. A surety company or insurance carrier authorized to transact business within the Commonwealth of Kentucky; or 2. A nonadmitted insurer in accordance with the requirements of Subtitle 10 of KRS Chapter 304; (b) Have a term that is continuous and remains in full force until canceled under proper notice; (c) Be issued in the name of the holder or applicant for the dealer's license or wholesaler's license; (d) For all dealers except automotive recycling dealers, provide public liability and property damage coverage for the operation of any vehi cle owned or being offered for sale by the dealer or wholesaler when being operated by the owner or seller, his or her agents, servants, employees, prospective customers, or other persons. In circumstances where a customer's or other person's vehicle is out of use because of breakdown, repair, or servicing and a motor vehicle is loaned, with or without consideration, the coverage mandated by this section shall be in excess of, and be deemed secondary to, the collision, bodily injury, and property damage lia bility coverage under a customer's or other person's own coverage for that person's own negligence; otherwise the coverage mandated by this section shall be primary; (e) Provide that the amount of coverage under the bond or policy is two hundred fifty thousand dollars ($250,000) for bodily injury or death of any one (1) person; five hundred thousand dollars ($500,000) for bodily injury or death in any one (1) accident; and two hundred fifty thousand dollars ($250,000) property damage; (f) For automotive recycling dealers, provide commercial general liability coverage in the amount of two hundred fifty thousand dollars ($250,000) for bodily injury or death of any one (1) per son; five hundred thousand dollars ($500,000) for bodily injury or death in any one (1) accident; and two hundred fifty thousand dollars ($250,000) property damage; and (g) Provide that the bond or policy shall not be canceled unless fifteen (15) days' notice by the bondsman or insurance carrier has been given in writing to the commission. (3) (a) Upon the cancellation of any required indemnifying bond or insurance policy, the right to engage in the business of a motor vehicle dealer or wholesaler shall immediately abate. (b) If the bond or insurance policy is reinstated within thirty (30) days from the date of cancellation, the rights granted by the license shall again be in force and effect; otherwise, the license shall become void. (4) A dealer that has a certificate of authority from the Department of Insurance demonstrating proof of self-insurance is exempt from this section. Effective: June 27, 2025 History: Amended 2025 Ky. Acts ch. 12, sec. 1, effective June 27, 2025. -- Amended 2014 Ky. Acts ch. 27, sec. 17, effective January 1, 2015; and ch. 83, sec. 2, effective July 15, 2014. -- Amended 2002 Ky. Acts ch. 83, sec. 1, effective July 15, 2002. -- Amended 1996 Ky. Acts ch. 111, sec. 2, effective July 15, 1996. -- Amended 1992 Ky. Acts ch. 452, sec. 3, effective July 14, 1992. -- Amended 1988 Ky. Acts ch. 65, sec. 2, effective July 15, 1988. -- Amended 1982 Ky. Acts ch. 373, sec. 4, effective July 15, 1982. -- Created 1966 Ky. Acts ch. 175, sec. 13.

KRS 190.035 Established place of business and sufficient space required for licensure by commission as motor vehicle dealer or new recreational vehicle dealer -- Exemption

190.035. Established place of business and sufficient space required for licensure by commission as motor vehicle dealer or new recreational vehicle dealer -- Exemption (1) (a) Except as provided in subsection (2) of this section, a license shall not b e issued by the commission for the purposes described in KRS 190.030(1) and to motor vehicle dealers or new recreational vehicle dealers, either as dealer or salesperson, unless the applicant for the license has an established place of business or, for recreational vehicles as defined in KRS 190A.010, and as provided by administrative regulation of the commission consistent with the activity of the license applied for. (b) A licensee may conduct more than one (1) business in a building otherwise meeting the requirements of this chapter providing he or she has suitable space and adequate facilities therein to properly conduct the business of a motor vehicle dealer. (c) The lot requirement of this section may be waived if the dealer has sufficient space within a building to properly show and display the motor vehicles or new recreational vehicles being sold. The dealer shall display a sign easily visible from the street identifying the business. (2) This section shall not apply to a nonprofit motor vehicle deal er. Effective: April 14, 2026 History: Amended 2026 Ky. Acts ch. 182, sec. 28, effective April 14, 2026. -- Amended 2014 Ky. Acts ch. 27, sec. 18, effective January 1, 2015. -- Amended 2010 Ky. Acts ch. 43, sec. 4, effective July 15, 2010. -- Amended 1984 Ky. Acts ch. 357, sec. 4, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 373, sec. 5, effective July 15, 1982. -- Amended 1966 Ky. Acts ch. 175, sec. 4. -- Created 1964 Ky. Acts ch. 129, sec. 1.

KRS 190.037 Temporary permits

190.037. Temporary permits Where application for any license provided for herein has been made, a temporary permit may be granted to the applicant to engage in the business for which the license is sought. The temporary permit shall be valid until such time as the application is approved or denied, but in no event for a period longer than ninety (90) days. KRS 190.040(3) shall not apply to a temporary permit. History: Created 1966 Ky. Acts ch. 175, sec. 17.

KRS 190.038 Manufacturer to provide information on service or repairs of its motor vehicles

190.038. Manufacturer to provide information on service or repairs of its motor vehicles (1) Any manufacturer of motor vehicles licensed in accordance with KRS 190.030 shall provide to any person upon request and at reasonable cost, any schematic, manual or any other technical documentation needed to service or repair motor vehicles manufactured by the manufacturer of a year model not to exceed ten (10) years prior to the current year model. (2) Failure to comply with the provisions of subsection (1) of this section shall be grounds for suspension or revocation of a manufacturer's license in accordance with KRS 190.040. Effective: July 15, 1988 History: Created 1988 Ky. Acts ch. 183, sec. 1, effective July 15, 1988.

KRS 190.040 Grounds for denial, suspension, or revocation of license -- Notice of denial of application for license -- Hearings -- Inspection of licensee's records -- Appeals from order of commission

190.040. Grounds for denial, suspension, or revocation of license -- Notice of denial of application for license -- Hearings -- Inspection of licensee's records -- Appeals from order of commission (1) A license may be denied, suspended, or revoked on the following grounds: (a) Proof of financial or moral unfitness of applicant; (b) Material misstatement in application for license; (c) Filing a materially false or fraudulent tax return as certified by the Department of Revenue; (d) Willful failure to comply with any provision of this chapter or any administrative regulation promulgated under this chapter; (e) Willfully defrauding any retail buyer to the buyer's damage; (f) Willful failure to perform any written agreement with any buyer; (g) Failure or refusal to furnish and keep in force any bond required; (h) Having made a fraudulent sale, transaction, or repossession; (i) False or misleading advertising; (j) Fraudulent misrepresentation, circumvention, or concealment through subterfuge or device of any of the material particulars or the nature of them required to be stated or furnished to the retail buyer; (k) Employment of fraudulent devices, methods, or practices in connection with compliance with the requirements under the statutes of this state with respect to the retaking of goods under retail installment contracts and the redemption and resale of goods; (l) Having violated any law relating to the sale, distribution, or financing of motor vehicles or new recreational vehicles; (m) Being a manufacturer of motor vehicles or recreational vehicles, factory branch, distributor, field representative, officer, agent, or any representative of the motor vehicle manufacturer, recreational vehicle manufacturer, or factory branch, who has induced, coerced, or attempted to induce or coerce any automobile dealer or new recreational vehicle dealer to accept delivery of any motor vehicle, new recreational vehicle, vehicles, parts, accessories, or any other commodities that shall not have been ordered by the dealer; (n) Being a manufacturer of motor vehicles or recreational vehicles, factory branch, distributor, field representative, officer, agent, or any representative of a motor vehicle manufacturer or factory branch, who has attempted to induce or coerce, or has induced or coerced, any dealer to enter into any agreement with a manufacturer, factory branch, or representative, or to do any other act unfair to the dealer, by threatening to cancel any franchise existing between a manufacturer, factory branch, or representative and the dealer; (o) Being a manufacturer, factory branch, distributor, field representative, officer, agent, or any representative of a motor vehicle manufacturer or factory branch, who has unfairly, without due regard to the equities of the dealer and without just provocation, canceled the franchise of any motor vehicle dealer. The nonrenewal of a franchise or selling agreement without just provocation or cause shall be deemed an evasion of this section and shall constitute an unfair cancellation; (p) Being a manufacturer, factory branch, distributor, field representative, officer, agent, or any representative of a motor vehicle manufacturer, recreational vehicle manufacturer, or factory branch, or wholesaler who makes, attempts to make, or aids or abets the making of a sale of a motor vehicle or a new recreational vehicle to a person other than a licensed motor vehicle dealer or new recreational vehicle dealer. This section shall not prevent any manufacturer from offering discounts or rebates on any motor vehicle or new recreational vehicle to any of its employees; or (q) Being a dealer who advertises for sale a new motor vehicle or new recreational vehicle unless he is a dealer operating under a franchise with a licensed manufacturer, factory branch, or distributor authorizing the sale of the new motor vehicle or the new recreational vehicle being advertised. (2) The licensor may deny the application for a license within thirty (30) days after receipt thereof by written notice to the applicant, stating the grounds for denial. Upon request by the applicant whose license has been denied, the licensor shall set the time and place of hearing a review of denial, to be conducted in accordance with KRS Chapter 13B. (3) A license shall not be suspended or revoked except after a hearing conducted in accordance with KRS Chapter 13B. (4) The commission may inspect the pertinent books, letters, records, and contracts of a licensee. (5) If a licensee is a firm or corporation, it shall be sufficient cause for the denial, suspension, or revocation of a license that any officer, director, or trustee of the firm or corporation, or any member in case of a partnership, has been guilty of any act or omission which would be cause for refusing, suspending, or revoking a license to the party as an individual. Each licensee shall be responsible for the acts of any or all of his salesmen while acting as his agent, if the licensee approved of or had knowledge of the acts and after approval or knowledge retained the benefit, proceeds, profits, or advantages accruing from the acts. (6) Any licensee or other person in interest who is dissatisfied with a final order of the commission may appeal to the Franklin Circuit Court and to the Court of Appeals in the manner provided by KRS Chapter 13B. Effective: January 1, 2015 History: Amended 2014 Ky. Acts ch. 27, sec. 19, effective January 1, 2015. -- Amended 2005 Ky. Acts ch. 85, sec. 616, effective June 20, 2005. -- Amended 2000 Ky. Acts ch. 23, sec. 2, effective February 22, 2000; and ch. 216, sec. 2, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 111, sec. 3, effective July 15, 1996; and ch. 318, sec. 76, effective July 15, 1996. -- Amended 1992 Ky. Acts ch. 452, sec. 4, effective July 14, 1992. -- Amended 1982 Ky. Acts ch. 374, sec. 7, effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 74, Art. IV, sec. 20(2). -- Amended 1972 Ky. Acts ch. 211, sec. 2. -- Amended 1966 Ky. Acts ch. 175, sec. 5. -- Created 1956 Ky. Acts ch. 161, sec. 4.

KRS 190.041 Repealed, 1982

190.041. Repealed, 1982 Catchline at repeal: Law not applicable to manufactures or distributors -- Exception. History: Repealed 1982 Ky. Acts ch. 373, sec. 15, effective July 15, 1982; and ch. 374, sec. 14, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 296, sec. 6, effective July 15, 1980. -- Amended 1972 Ky. Acts ch. 75, sec. 4. -- Created 1966 Ky. Acts ch. 175, sec. 21.

KRS 190.042 Succession to ownership of a new motor vehicle dealership of a deceased or incapacitated owner

190.042. Succession to ownership of a new motor vehicle dealership of a deceased or incapacitated owner (1) Any owner of a new motor vehicle dealership may appoint by will, or any other written instrument, a designated family member to succeed in the ownership interest of the said owner in the new motor vehicle dealership. (2) Manufacturers shall permit an owner of a new motor vehicle dealership to propose a successor addendum, which shall be subject to the requirements in this section. (3) Unless there exists good cause for refusal to honor succession on the part of the manufacturer or distributor, any designated family member of a deceased or incapacitated owner of a new motor vehicle dealership may succeed to the ownership of the new motor vehicle dealership under the existing franchise provided that: (a) The designated family member gives the manufacturer or distributor written notice of his or her intention to succeed to the ownership of the new motor vehicle dealership within ninety (90) days of the owner's death or incapacity; and (b) The designated family member agrees to be bound by all the terms and conditions of the franchise. (4) The manufacturer or distributor may request, and the designated family member shall provide, promptly upon said request, personal and financial data that is reasonably necessary to determine whether the succession should be honored. Effective: June 29, 2023 History: Amended 2023 Ky. Acts ch. 7, sec. 2, effective June 29, 2023. -- Created 1982 Ky. Acts ch. 373, sec. 10, effective July 15, 1982.

KRS 190.043 Refusal of manufacturer or distributor to honor succession

190.043. Refusal of manufacturer or distributor to honor succession (1) If a manufacturer or distributor believes that good cause exists for refusing to honor the succession to the ownership of a new motor vehicle dealership by a family member of a deceased or incapacitated owner of a new motor vehicle dealership under the existing franchise agreement, the manufacturer or distributor may, not more than sixty (60) days following the receipt of: (a) Notice of the designated family member's intent to succeed to the ownership of the new motor vehicle dealership; or (b) Any personal or financial data which it has requested; serve upon the designated family member and the commission, notice of its refusal to honor the succession and its intent to discontinue the existing franchise with the dealer no sooner than ninety (90) days from the date such notice is served. (2) The notice provided in subsection (1) of this section must state the specific grounds for the refusal to honor the succession and of its intent to discontinue the existing franchise with the new motor vehicle dealer no sooner than ninety (90) days from the date such notice is served. (3) If notice of refusal and discontinuance as provided in subsection (1) of this section is not timely served upon the family member, the franchise shall continue in effect subject to termination only as otherwise permitted by KRS 190.045. (4) In determining whether good cause for the refusal to honor the succession exists, the manufacturer, distributor, factory branch, or importer has the burden of proving before the commission that the successor is a person who is not of good moral character or does not meet the franchisor's existing and reasonable standards, and considering the volume of sales and service of the new motor vehicle dealership, the uniformly applied business experience standards in the market area. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 111, sec. 4, effective July 15, 1996. -- Created 1982 Ky. Acts ch. 373, sec. 11, effective July 15, 1982.

KRS 190.045 Cancellation, termination, refusal to renew franchise -- Notice -- Duty of manufacturer

190.045. Cancellation, termination, refusal to renew franchise -- Notice -- Duty of manufacturer (1) Notwithstanding the terms, provisions, or conditions of any franchise or notwithstanding the terms or provisions of any waiver, a manufacturer shall not cancel, terminate, or fail to renew any franchise with a licensed new motor vehicle dealer unless the manufacturer has: (a) Satisfied the notice requirement of subsection (4) of this section; (b) Has good cause for cancellation, termination, or nonrenewal; (c) Has acted in good faith; and (d) Has established the requirements of this subsection in proceedings before the licensor if the action is protested by the new motor vehicle dealer within: 1. Thirty (30) days after receiving notice of the cancellation, termination, or nonrenewal; or 2. Fifteen (15) days for a termination for a cause listed in subsection (4)(c) of this section. When a protest is filed, the licensor shall inform the manufacturer, distributor, factory branch, or factory representative that a timely protest has been filed and that the manufacturer, distributor, factory branch, or factory representative shall not cancel, terminate, or fail to renew any franchise with the licensed new motor vehicle dealer until the licensor has held a hearing and the licensor has determined that the manufacturer has met its burden under this section. (2) Notwithstanding the terms, provisions, or conditions of any franchise or the terms or provisions of any waiver, good cause shall exist for the purposes of a termination, cancellation, or nonrenewal when: (a) There is a failure by the new motor vehicle dealer to comply with a provision of the franchise which provision is both reasonable and of material significance to the franchise relationship, provided that the dealer has been notified in writing of the failure within one hundred eighty (180) days after the manufacturer first acquired knowledge of the failure; and (b) If the failure by the new motor vehicle dealer, defined in paragraph (a) of this subsection, relates to the performance of the new motor vehicle dealer in sales or service, then good cause shall be defined as the failure of the new motor vehicle dealer to comply with reasonable performance criteria established by the manufacturer, if the new motor vehicle dealer was apprised by the manufacturer in writing of a failure, and 1. The notification stated that notice was provided of failure of performance pursuant to this section; 2. The new motor vehicle dealer was afforded a reasonable opportunity, for a period of not less than six (6) months, to comply with the criteria; and 3. The new motor vehicle dealer did not demonstrate substantial progress toward compliance with the manufacturer's performance criteria during the designated period. (3) The manufacturer shall have the burden of proof under this section. (4) Notwithstanding the terms, provisions, or conditions of any franchise prior to the termination, cancellation, or nonrenewal of any franchise, the manufacturer shall furnish notification of a termination, cancellation, or nonrenewal to the new motor vehicle dealer as follows: (a) In the manner described in subsection (2)(b) of this section; and (b) In not less than ninety (90) days prior to the effective date of the termination, cancellation or nonrenewal; or (c) In not less than fifteen (15) days prior to the effective date of a termination, cancellation, or nonrenewal with respect to any of the following: 1. Insolvency of the new motor vehicle dealer, or filing of any petition by or against the new motor vehicle dealer under any bankruptcy or receivership law; 2. Failure of the new motor vehicle dealer to conduct its customary sales and service operations during its customary business hours for seven (7) consecutive business days, except for acts of God or circumstances beyond the direct control of the new motor vehicle dealer; 3. Fraudulent misrepresentation by the new motor vehicle dealer to the manufacturer or distributor which is material to the franchise; 4. Conviction of the new motor vehicle dealer, or any owner or operator thereof, of any felony which is punishable by imprisonment; or 5. Revocation of any license which the new motor vehicle dealer is required to have to operate a dealership; (d) In not less than one hundred eighty (180) days prior to the effective date of a termination or cancellation where the manufacturer or distributor is discontinuing the sale of the product line. (5) Notification under this section shall be in writing by certified mail or personally delivered to the new motor vehicle dealer; and shall contain: (a) A statement of intent to terminate, cancel, or not to renew the franchise; and (b) A statement of the reasons for the termination, cancellation, or nonrenewal; and (c) The date on which the termination, cancellation, or nonrenewal takes effect. (6) Upon the termination, nonrenewal, or cancellation of any franchise, pursuant to this section, the new motor vehicle dealer shall be allowed fair and reasonable compensation by the manufacturer for the: (a) New current model year motor vehicle inventory which has been acquired from the manufacturer, and which has not been damaged or altered while in the dealer's possession; (b) Supplies and parts which have been acquired from the manufacturer; (c) Equipment and furnishings provided the new motor vehicle dealer purchased from the manufacturer or its approved sources; and (d) Special tools. Fair and reasonable compensation shall be paid by the manufacturer within ninety (90) days of the effective date of termination, cancellation, or nonrenewal, provided the new motor vehicle dealer has clear title to the inventory and other items and is in a position to convey that title to the manufacturer. (7) In the event of a termination, cancellation, or nonrenewal under this section, and the new motor vehicle dealer is leasing the dealership facilities from a lessor other than the manufacturer, or owns the dealership facilities, the manufacturer shall pay a reasonable rent to the dealer in accordance with and subject to subsection (8) of this section. (8) (a) Reasonable rental value shall be paid only to the extent the dealership premises are recognized in the franchise and only if they are: 1. Used solely for performance in accordance with the franchise; and 2. Not substantially in excess of those facilities recommended by the manufacturer. (b) If the facilities are owned by the dealer, the manufacturer will either: 1. Locate a purchaser who will offer to purchase the dealership facilities at a reasonable price; or 2. Locate a lessee who will offer to lease the premises for a reasonable term at a reasonable rent; or 3. Failing the foregoing, lease the dealership facilities at a reasonable rental value for one (1) year. (c) If the facilities are leased by the dealer, the manufacturer will either: 1. Locate a tenant or tenants satisfactory to the lessor, who will sublet or assume the balance of the lease; or 2. Arrange with the lessor for the cancellation of the lease without penalty to the dealer; or 3. Failing the foregoing, lease the dealership facilities at a reasonable rent for one (1) year. (d) The manufacturer shall not be obligated to provide assistance under this section if the dealer: 1. Fails to accept a bona fide offer from a prospective purchaser, sublessee, or assignee; or 2. Refuses to execute a settlement agreement with the lessor if the agreement would be without cost to the dealer; or 3. Fails to make a written request for assistance under this section within one (1) month of the termination, cancellation, or nonrenewal. (e) If, in an action for damages under this section, the manufacturer or distributor fails to prove either that the manufacturer or distributor has acted in good faith or that there was good cause for the franchise termination, cancellation, or nonrenewal, then the manufacturer or distributor may terminate, cancel, or fail to renew the franchise upon payment to the new motor vehicle dealer of an amount equal to the value of the dealership as an ongoing business location. (9) Notice of termination to a dealer shall entitle the dealer to continue the franchise and the dealer may attempt to sell the franchise until all of the dealer's appeal rights have been exhausted. Effective: April 14, 2026 History: Amended 2026 Ky. Acts ch. 182, sec. 29, effective April 14, 2026. -- Amended 2023 Ky. Acts ch. 7, sec. 3, effective June 29, 2023. -- Amended 2000 Ky. Acts ch. 23, sec. 3, effective February 22, 2000. -- Amended 1996 Ky. Acts ch. 111, sec. 5, effective July 15, 1996. -- Amended 1984 Ky. Acts ch. 357, sec. 5, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 373, sec. 6, effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 74, Art. IV, sec. 20(2). -- Created 1972 Ky. Acts ch. 75, sec. 1.

KRS 190.046 Compensation to dealer for work performed under warranty -- "Reasonable compensation" -- Submission, determination, and payment of dealer's claims -- Compensation to dealer for sponsored sales or service promotion events -- Audits -- Fraud

190.046. Compensation to dealer for work performed under warranty -- "Reasonable compensation" -- Submission, determination, and payment of dealer's claims -- Compensation to dealer for sponsored sales or service promotion events -- Audits -- Fraud (1) Notwithstanding the terms of any franchise agreement, each motor vehicle manufacturer or distributor, doing business within this Commonwealth, shall assume all responsibility for and shall defend, indemnify, and hold harmless its motor vehicle dealers against any loss, damages, and expenses, including legal costs, arising out of complaints, claims, recall repairs or modifications or factory authorized or directed repairs, or lawsuits resulting from warranty defects, which shall include structural or production defects; defects in the assembly; or design of motor vehicles, parts, accessories; or other functions beyond the control of the dealer, including without limitation, the selection of parts or components for the vehicle. Each manufacturer or distributor shall pay reasonable compensation to any authorized dealer who performs work to repair defects, or to repair any damage to the manufacturer's or distributor's product sustained while the product is in transit to the dealer, when the carrier or the means of transportation is designated by the manufacturer or distributor. Each manufacturer or distributor shall provide to its dealers with each model year a schedule of time allowances for the performance of warranty repair work and services, which s hall include time allowances for the diagnosis and performance of warranty work and service time, and shall be reasonable and adequate for the work to be performed. (2) (a) In the determination of what constitutes "reasonable compensation" under this section, the principal factor to be considered shall be the amount of money that the dealer is charging its other customers for the same type service or repair work. Other factors may be considered, including: 1. The compensation being paid by other manufacture rs or distributors to their dealers for work; and 2. The prevailing amount of money being paid or charged by the dealers in the city or community in which the authorized dealer is doing business. (b) Except as provided in paragraph (d) of this subsection , "reasonable compensation" shall include: 1. Diagnosing the defect as needed; 2. Repair service; 3. Labor; 4. Parts; and 5. Administrative and clerical costs. (c) Except as provided in paragraph (d) of this subsection, the compensation of a dealer shall not be less than: 1. The amount charged by the dealer for like services and parts, which minimum compensation for parts shall be dealer cost plus thirty percent (30%) gross profit, to retail customers for nonwarranty service and repairs; or 2. The amounts indicated for work on the schedule of warranty compensation required to be filed by the manufacturer with the commission as a part of the manufacturer's license application by KRS 190.030. (d) The compensation of a dealer for vehicles with a classification of seven (7) or higher as established in 49 C.F.R. sec. 565.15 by a manufacturer, component manufacturer, or distributor shall be subject to the following conditions: 1. The dealer shall be entitled to receive, as to reimbursement for parts, not less than its actual acquisition cost of the parts including freight, handling, taxes, and any other related out-of-pocket expenses, plus a gross profit margin of thirty percent (30%); 2. In addition to paragraph (b) of this subsection, "reasonable compensation" shall also include: a. All dealer costs incurred for training and certifying technicians and warranty administration personnel; b. Dealer costs to acquire, use, and m aintain computer hardware and software systems utilized for warranty and recall repairs, including diagnostic computers, mobile devices, and software for tracking and reporting warranty and recall time and expenses; and c. Dealer costs for specialized tool s and hardware required for warranty and recall repairs; 3. A dealer may submit reimbursement requests for its costs described in subparagraph 2. of this paragraph, and the manufacturer, component manufacturer, or distributor shall pay for those costs, at the dealer's election either on a: a. Per repair basis, as may be mutually agreeable between the dealer and manufacturer, component manufacturer, or distributor; b. Per repair basis, based upon the amounts customarily charged by the dealer to retail customers for similar nonwarranty work; or c. Periodic basis no less frequent than annually, with reasonable documentation of the costs and a reasonable method of allocating the costs between reimbursable warranty and recall services and nonwarranty services; 4. If labor hours on a warranty or recall repair, diagnostics, or service are incurred by a technician trained or certified in that service by a manufacturer, component manufacturer, or distributor, or if such training or certification is not furnished, the actual hours incurred shall be the basis of reasonable compensation unless the manufacturer, component manufacturer, or distributor proves by clear and convincing evidence that the hours incurred were unreasonable for the specific repair. Reference to standard repair times, labor guides, or time allowance guidelines shall not constitute sufficient evidence of that proof; 5. If a component manufacturer for any system, subassembly, or other component part of a motor vehicle has assumed, undertaken, or otherwise has legal responsibility for reimbursement and processing of a dealer claim for warranty or recall services by virtue of any pass- through or extended warranty arrangement, governmental recall mandate, consent decree, judicial decree, litigation settlement, or other means, the component manufacturer shall be subject to all the requirements of this section as if primarily liable as a manufacturer or distributor. This subparagraph shall not relieve the manufacturer or distributor of the motor vehicle from any primary liability for the indemnification obligations of subsection (1) of this section to its dealers. If a component warranty is made contemporaneously with the sale of a new motor vehicle and extends beyond the original manufacturer or distributor warranty on the entire vehicle, the manufacturer or distributor shall continue to have primary liability to its dealers for the performance of warranty service on those components during the extended period; 6. Compensation to be paid a dealer from a component manufacturer for warranty or recall work on a component part shall be no less than the amount that would otherwise be reimbursable if the manufacturer or distributor of the vehicle had made the component warranty or was otherwise responsible for the component part. This subparagraph shall apply regardless of whether or not the part bears a different part number than the originally manufactured part, or is a remanufactured or rebuilt part that is required or permitted to be utilized in a warranty or recall repair; 7. A manufacturer, component manufacturer, or distributor shall not refuse payment for a replacement part installed by a dealer in connection with a warranty or recall repair that the manufacturer, component manufacturer, or distributor claims is not defective based upon laboratory or other testing, or where no fault with the part is found, unless the part is returned to the dealer with a written certification from the manufacturer, component manufacturer, or distributor setting forth the test conditions and results and warranting that the part is not defective, is fully functional, and qualified for reuse in future repairs; 8. A manufacturer, component manufacturer, or distributor shall not require unreasonable proof or unduly burdensome processes to establish reasonable compensation; 9. A manufacturer, component manufacturer, or distributor shall not require a dealer for vehicles with a classification of seven (7) or higher as established in 49 C.F.R. sec. 565.15 to submit a claim authorized under this section sooner than ninety (90) days after the dealer completes the preparation, delivery, or warranty service authorizing the claim for preparation, delivery, or warranty service; and 10. As used in this paragraph, "component manufacturer" means any person who manufactures, assembles, imports, or distributes new, remanufactured, or rebuilt parts, assemblies, subassemblies, or other components for motor vehicles. (e) A manufacturer or distributor shall not require unreasonable proof to establish "reasonable compensation." (3) (a) Except as provided in subsection (2)(d)9. of this section, a manufacturer or distributor shall not require a dealer to submit a claim authorized under this section sooner than thirty (30) days after the dealer completes the preparation, delivery, or warranty service authorizing the claim for preparation, delivery, or warranty service. (b) All claims made by a dealer under this section shall be paid within thirty (30) days after their approval. (c) All claims shall be either approved or disapproved by the manufacturer or distributor within thirty (30) days after their receipt on a completed form supplied or approved by the manufacturer or distributor. (d) Any claims not specifically disapproved in writing within thirty (30) days after the receipt of the form shall be considered to be approved and payment shall be made within thirty (30) days thereafter. (e) A dealer shall not be required to maintain defective parts for more than thirty (30) days after payment of a claim. (f) Any dispute between the dealer and the manufacturer or distributor shall be subject to the provisions of KRS 190.057. (4) A manufacturer or distributor shall compensate the dealer for manufacturer- sponsored or distributor-sponsored sales or service promotion events, including but not limited to rebates, programs, or activities in accordance with established written guidelines for such events, programs, or activities, whi ch the manufacturer or distributor shall provide to each dealer. (5) (a) A manufacturer or distributor shall not require a dealer to submit a claim authorized under subsection (4) of this section sooner than ninety (90) days after the dealer becomes eligible to submit the claim. (b) All claims made by a dealer pursuant to subsection (4) of this section for promotion events, including but not limited to rebates, programs, or activities, shall be paid within thirty (30) days after their approval. (c) All claims shall be either approved or disapproved by the manufacturer or distributor within thirty (30) days after their receipt on a completed form supplied or approved by the manufacturer or distributor. (d) Any claim not specifically disapproved in writing wit hin thirty (30) days after the receipt of this form shall be considered to be approved and payment shall be made within thirty (30) days. (6) If a dealer submits any claim under this section to a manufacturer or distributor that is incomplete, inaccurate, or lacking any information usually required by the manufacturer or distributor, or if incomplete, inaccurate, or missing information is discovered during an audit, then the manufacturer or distributor shall promptly notify the dealer, and the time limit to submit the claim shall be extended for a reasonable length of time, not less than five (5) business days following notice by the manufacturer or distributor to the dealer, for the dealer to provide the complete, accurate, or lacking information to the manufacturer or distributor. A dealer's failure to comply with the specific requirements of the manufacturer or distributor for processing a claim may not constitute grounds for denial of the claim or reduction of the amount of compensation paid to the dealer if the dealer presents reasonable documentation or other evidence to substantiate the claim. (7) (a) A manufacturer or distributor may only audit warranty, recall, sales, or incentive claims for a period of twelve (12) months following payment, or the end of a program which does not exceed one (1) year in length, whichever is later, subject to all of the provisions of this section. (b) A manufacturer or distributor shall not require documentation for warranty, recall, sales, or incentive claims more than twelve (12) months after the claim was paid or the end of a program which does not exceed one (1) year in length, whichever is later. (c) Prior to requiring any charge-back, reimbursement, or credit against a future transaction arising out of an audit, the manufacturer or distributor shall submit written notice to the dealer along with a copy of its audit and the detailed reason for each intended charge-back, reimbursement, or credit. (d) Notwithstanding the limitations of this subsection, a manufacturer that possesses evidence which would cause a person of ordinary caution, prudence, and judgment to believe that a dealer submitted a claim that was fraudulent, false, or misleading may audit the dealer for the claims during any period in which an action for fraud or for the submission of false or misleading claims may be commenced under applicable state law. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 83, sec. 1, effective July 15, 2026. -- Amended 2024 Ky. Acts ch. 162, sec. 1, effective July 15, 2024. -- Amended 2023 Ky. Acts ch. 7, sec. 4, effective June 29, 2023. -- Amended 2011 Ky. Acts ch. 3, sec. 1, effective June 8, 2011. -- Amended 2000 Ky. Acts ch. 23, sec. 4, effective February 22, 2000. -- Amended 1992 Ky. Acts ch. 452, sec. 5, effective July 14, 1992. -- Amended 1982 Ky. Acts ch. 373, sec. 7, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 182, sec. 2, effective June 17, 1978. -- Amended 1974 Ky. Acts ch. 107, sec. 1. -- Created 1972 Ky. Acts ch. 75, sec. 2.

KRS 190.047 Transfer of motor vehicle sales franchise -- Proposal to establish additional dealership or to relocate existing dealership

190.047. Transfer of motor vehicle sales franchise -- Proposal to establish additional dealership or to relocate existing dealership (1) Unless a franchise specifically states to the contrary, no franchise or any interest in a franchise may be sold, transferred, or assigned without the approval of the manufacturer or distributor. (2) A dealer desiring to sell, transfer, or assign all or any portion of his franchise shall submit a written proposal of the sale, transfer, or assignment to the manufacturer or distributor, and approval of the proposal shall not be arbitrarily or unreasonably withheld. (3) The refusal of the manufacturer or the distributor to approve a proposed sale, transfer, or assignment shall be subject to review by the licensor, if a written application for review is filed with the licensor, with notice to the manufacturer or distributor, within thirty (30) days of the date of the refusal. The refusal shall not be final until the licensor, after a hearing has been held in accordance with the provisions of KRS Chapter 13B, has determined that the approval was not arbitrarily or unreasonably withheld. (4) The burden of proof shall be on the dealer to show that the approval of the sale, transfer, or assignment of any interest in the franchise was arbitrarily or unreasonably withheld. Factors to be considered in determining whether the manufacturer or distributor acted arbitrarily or unreasonably shall include whether the basic financial and facility requirements of the franchise will be met by the proposed transfer, sale, or assignment and that the proposed purchaser, transferee, or assignee is capable of operating, managing, and supervising the operation of the business in question. (5) Failure of the manufacturer or distributor to abide by the final order of the licensor or to continue the franchise in effect pending the final determination of the issue by the licensor shall be cause for the licensor to refuse to issue a subsequent license in the same county or franchise area to an applicant who will be selling the same motor vehicles as the former dealer for the same manufacturer or distributor. (6) If a manufacturer, distributor, factory branch, or factory representative seeks to: (a) Enter into a franchise establishing an additional new motor vehicle dealership facility; (b) Establish an additional new motor vehicle dealership facility under an existing franchise; or (c) Relocate an existing new motor vehicle dealership facility, within or into a relevant market area where the same line make is then represented, the manufacturer, distributor, factory branch, or factory representative shall, in writing, first notify the licensor, and each new motor vehicle dealer in the line make in the relevant market area, of the intention to establish an additional new motor vehicle dealership facility, or to establish an additional new motor vehicle dealership facility under an existing franchise, or to relocate an existing new motor vehicle dealership facility within or into that market area. The relevant market area shall be a radius of ten (10) miles around an existing new motor vehicle dealership facility. Within fifteen (15) days of receiving the notice, or within fifteen (15) days after the end of any appeal procedure provided by the manufacturer, distributor, factory branch, or factory representative, any new motor vehicle dealership may file with the licensor a protest to the establishment or relocation of the new motor vehicle dealership facility. When a protest is filed, the licensor shall inform the manufacturer, distributor, factory branch, or factory representative that a timely protest has been filed and that the manufacturer, distributor, factory branch, or factory representative shall not establish or relocate the proposed new motor vehicle dealership facility until the licensor has held a hearing in accordance with KRS Chapter 13B, if the licensor has determined that there is good cause for permitting the new motor vehicle dealership facility. For the purposes of this section, the reopening in a relevant market area of a new motor vehicle dealership that has not been in operation for two (2) years or more shall be deemed the establishment of an additional new motor vehicle dealership facility. (7) In determining whether good cause has been established for entering into an additional franchise for the same line make, or establishing an additional new motor vehicle dealership facility under an existing franchise, or relocating an existing new motor vehicle dealership facility within or into a relevant market area where the same line make is then represented, the licensor shall take into consideration the existing circumstances, including, but not limited to: (a) Permanency of the investment; (b) Whether the new motor vehicle dealer of the same line make in that relevant market area is providing adequate competition and convenient consumer care for the motor vehicles of the line make in the market area, which shall include the adequacy of motor vehicle sales and service facilities, equipment, supply of vehicle parts, and qualified service personnel; and (c) Growth, or decline in population and new car registrations in the relevant market areas. In the case of the establishment of an additional new motor vehicle dealership facility under an existing franchise, good cause shall not be found if the additional facility fails to offer a range of service, including, but not limited to sales, service, parts, and financing. (8) Any parties to a hearing by the licensor concerning the establishing or relocating of a new motor vehicle dealership shall have a right of judicial review of the final order in accordance with KRS Chapter 13B. (9) The provisions of this section shall apply to the personal representative, executor, or administrator of the estate of an individual who had an interest in a franchise, or to the guardian or conservator of an individual who has been declared mentally disabled and who has that interest for one (1) year following appointment. (10) The provisions of this section do not apply to: (a) The relocation of an existing dealership within that dealer's area of responsibility contained in its franchise agreement, provided the relocation is not within five (5) miles of a new motor vehicle dealer of the same line make; or (b) The relocation of an existing new motor vehicle dealership facility to a site that is further away from an existing dealership of the same line make. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 111, sec. 6, effective July 15, 1996; and ch. 318, sec. 77, effective July 15, 1996. -- Amended 1984 Ky. Acts ch. 357, sec. 6, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 141, sec. 64, effective July 1, 1982; and ch. 373, sec. 8, effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 74, Art. IV, sec. 20(2). -- Created 1972 Ky. Acts ch. 75, sec. 3. Legislative Research Commission Note (7/15/96). This section was amended by 1996 Ky. Acts chs. 111 and 318 which do not appear to be in conflict and have been codified together. Note: 1980 Ky. Acts ch. 396, sec. 69 would have amended this section effective July 1, 1982. However, 1980 Ky. Acts ch. 396 was repealed by 1982 Ky. Acts ch. 141, sec. 146, also effective July 1, 1982.

KRS 190.049 Repealed, 1978

190.049. Repealed, 1978 Catchline at repeal: Controversies as to transportation costs and damages of new motor vehicles. History: Repealed 1978 Ky. Acts ch. 182, sec. 5, effective June 17, 1978. -- Created 1974 Ky. Acts ch. 107, sec. 2.

KRS 190.050 Local and general advisory committees, appointment of -- Duties

190.050. Local and general advisory committees, appointment of -- Duties The licensor may appoint annually one (1) or more local advisory committees and one (1) general advisory committee, each consisting of not more than nine (9) members. The committees upon request of the licensor may advise and assist the licensor in the administration of this section. The members of said committees shall receive no compensation for their services or expenses. Effective: May 18, 1956 History: Created 1956 Ky. Acts ch. 161, sec. 5, effective May 18, 1956.

KRS 190.053 Citation of suspected violators

190.053. Citation of suspected violators If a licensee is found to be violating any of the provisions of this chapter, or any administrative regulation promulgated by the commission pursuant thereto, or is found to be permitting any of its salesmen to violate any of the provisions of this chapter, or any administrative regulation promulgated by the commission pursuant thereto, the commission may, upon complaint or upon its own motion, issue its order to a licensee notifying it to appear before the commission at a fixed time and place, at which time and place the commission shall have a hearing conducted in accordance with KRS Chapter 13B. If the commission is satisfied, after a hearing, that the licensee has violated or refused to observe any of the provisions of this chapter, or any order or administrative regulation of the commission, or has permitted any of its salesmen to violate any of the provisions of this chapter or any order or administrative regulation promulgated by the commission pursuant thereto, the commission may suspend or revoke the license of the licensee. The renewal by the commission of any license shall not be construed to be a waiver or condonement of any violation which occurred prior to renewal and shall not prevent subsequent proceedings against the licensee for the violation. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 318, sec. 78, effective July 15, 1996. -- Amended 1992 Ky. Acts ch. 452, sec. 6, effective July 14, 1992. -- Amended 1982 Ky. Acts ch. 374, sec. 8, effective July 15, 1982. -- Created 1966 Ky. Acts ch. 175, sec. 16.

KRS 190.057 Hearings -- Amendment of final order

190.057. Hearings -- Amendment of final order (1) Hearings under this chapter shall be conducted in accordance with KRS Chapter 13B. (2) A final order may be withdrawn, set aside, or amended, if action is taken between the date of the rendition of the final order and the expiration of the time for appeal or until an appeal has been taken. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 111, sec. 7, effective July 15, 1996; and ch. 318, sec. 79, effective July 15, 1996. -- Amended 1992 Ky. Acts ch. 452, sec. 7, effective July 14, 1992. -- Amended 1984 Ky. Acts ch. 357, sec. 7, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 374, sec. 9, effective July 15, 1982. -- Created 1966 Ky. Acts ch. 175, secs. 14 and 15. Legislative Research Commission Note (7/15/96). This section was amended by 1996 Ky. Acts chs. 111 and 318 which are in conflict. Under KRS 446.250, Acts ch. 318, which was last enacted by the General Assembly, prevails.

KRS 190.058 Motor Vehicle Commission -- Membership -- Powers -- Motor Vehicle Commission fund -- Duties

190.058. Motor Vehicle Commission -- Membership -- Powers -- Motor Vehicle Commission fund -- Duties (1) The Motor Vehicle Commission is hereby created as an agency of the Commonwealth to carry out the functions and duties conferred upon it by this section. (2) The commission shall consist of twelve (12) members, eleven (11) of whom shall be appointed by the Governor, and the twelfth shall be the commissioner of the Department of Vehicle Regulation. The appointed members shall be: (a) One (1) representative of an automobile manufacturer; (b) One (1) representative of automobile wholesalers; (c) One (1) representative of consumers who shall have no direct financial interest in the industry; (d) Four (4) new motor vehicle dealers, but no more than two (2 ) shall represent the same automobile manufacturer as a franchise dealer; and (e) Four (4) used motor vehicle dealers. (3) In addition to the requirements of membership on the commission in subsection (2) of this section, the following requirements shall a pply to the composition of the commission: (a) No more than seven (7) members shall be from the same political party; and (b) From the eight (8) members specified in subsection (2)(d) and (e) of this section, seven (7) shall be from separate Supreme Court districts. (4) Each member shall serve for a term of three (3) years. The staggered terms of membership dating from the gubernatorial appointments of July 15, 1982, shall remain in effect. (5) (a) Members of the commission shall qualify by taking the constitutional oath of office which shall, with the certificate of a ppointment, be evidence of the authority of the member to act. (b) Each member of the commission shall be entitled to two hundred dollars ($200) per day for each day actually engaged in the duties of the office, including time spent in necessary travel to and from meetings and otherwise, together with all travel and other necessary expenses incurred while performing official duties. (6) The commission shall hold a regular annual meeting in September of each year and elect a chairperson and vice chairperson to serve for the ensuing year. The commission shall have regular meetings as the majority of the members specifies and special meetings at the request of any five (5) members. Reasonable notice of all meetings shall be given as commission administrative re gulations prescribe. (7) A member of the commission shall not participate in the deliberations of the commission and shall not vote on any matter before the commission in which the member has a financial interest or is an interested party. A member shall v oluntarily disqualify himself or herself from deliberating or voting upon matters that affect the member but shall not be required to disqualify from matters of general interest affecting the member, the member's employer, or a business unit in which the member has a financial interest as a member of a class of persons to be affected by an administrative regulation or order of the commission. (8) A majority of the commissioners, excluding any disqualified commissioner, shall constitute a quorum for the transaction of any business, for the performance of any duty, or for the exercise of any power of the commission. A vacancy in the commission, whether due to disqualification or otherwise, shall not impair the right of the remaining commissioners to exercise all the powers of the commission. (9) The commission shall employ an executive director who shall be the chief administrative officer of the commission. The executive director shall maintain all minutes of the commission proceedings and shall be custodian of the files and records of the commission. The executive director shall employ the staff authorized by the commission. The commission may, by interagency contract, utilize assistance of any state agency. (10) (a) There is hereby created in the state treasury a trust and agency account to be known as the Motor Vehicle Commission fund. The fund shall consist of all license fees paid to the commission under this chapter, state appropriations, gifts, grants, and federal funds. (b) The fund shall be administered by the commission. (c) Amounts deposited in the fund shall be used for carrying out the duties of the commission under this chapter. (d) Notwithstanding KRS 45.229, fund amounts not expended at the close of a fiscal year shall not lapse but shall be carried forward into the next fiscal year. (11) The commission shall administer the provisions of this section, establish the qualifications of manufacturers and dealers, and ensure that the distribution and sale of new motor vehicles are conducted as provided in this chapter and under the commission's administrative regulations. (12) The commission may issue orders and make determinations necessary to carry out the provisions of KRS 190.010 to 190.080. The orders shall set forth the findings on which the order is based, and the reason for the particular action taken. All orders shall be signed by the chairperson or vice chairperson and attested by the executive director. (13) The commission may hold hearings that shall be conducted in accordance with KRS Chapter 13B. A member of the commission shall not participate in the deliberations of the commission and shall not vote on any matter if the member has been disqualified on any of the grounds under KRS 13B.040. (14) The commission may cause legal proceedings to be instituted to enforce the provisions of this section and its administrative regulations, orders, and decisions. If it appears from any investigation of a possible violation of any other law or administrative regulation that a violation of the provisions of KRS 190.010 to 190.080 may have occurred, the matter shall be referred to the commission to determine whether proceedings under KRS 190.010 to 190.080 are appropriate. The commission may make contracts and execute instruments necessary or convenient to the exercise of its power or performance of its duties. (15) The availability of administrative procedures under this section shall not preclude the utilization of other remedies for violation of the provisions of this chapter which are available to the affected parties, including actions for injunctive relief. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 133, sec. 1, effective July 15, 2026. -- Amended 2014 Ky. Acts ch. 83, sec. 3, effective July 15, 2014. -- Amended 1998 Ky. Acts ch. 263, sec. 1, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 318, sec. 80, effective July 15, 1996. -- Amended 1992 Ky. Acts ch. 235, sec. 5, effective July 14, 1992; and ch. 452, sec. 8, effective July 14, 1992. -- Amended 1984 Ky. Acts ch. 357, sec. 8, effective July 13, 1984. -- Created 1982 Ky. Acts ch. 374, sec. 1, effective July 15, 1982.

KRS 190.059 Appeal from final order of commission

190.059. Appeal from final order of commission The final order of the commission granting or refusing to grant an application for a license, or to suspend or revoke a license may be appealed by an aggrieved party to the Circuit Court of Franklin County in accordance with KRS Chapter 13B. Nothing in this section shall be construed to limit the authority of the court to grant such relief as the circumstances may require. If the issues involved were first presented to the commission by a complaint filed with the commission, the complainant may appeal from the decision of the commission in the same manner as prescribed above. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 318, sec. 81, effective July 15, 1996. -- Created 1982 Ky. Acts ch. 374, sec. 2, effective July 15, 1982.

KRS 190.060 Repealed, 1966

190.060. Repealed, 1966 Catchline at repeal: Licensor to determine the place within state where trials or hearings are held; other powers; report of examiner; rules and regulations. History: Repealed 1966 Ky. Acts ch. 175, sec. 20. -- Created 1956 Ky. Acts ch. 161, sec. 6.

KRS 190.061 Repealed, 1982

190.061. Repealed, 1982 Catchline at repeal: Motor vehicle dealers board -- Members -- Qualifications, terms -- Meetings -- Quorum. History: Repealed 1982 Ky. Acts ch. 374, sec. 14, effective July 15, 1982. -- Amended 1976 Ky. Acts ch. 195, sec. 1. -- Amended 1974 ch. 74, Art IV, sec. 20(3). -- Amended 1972 Ky. Acts ch. 211, sec. 3. -- Created 1966 Ky. Acts ch. 175, secs. 7 to 9.

KRS 190.062 Action for damages -- Power of commission -- Applicability of chapter and KRS Chapter 190A -- Written demand for mediation required before civil action involving recreational vehicle franchise issues may be brought

190.062. Action for damages -- Power of commission -- Applicability of chapter and KRS Chapter 190A -- Written demand for mediation required before civil action involving recreational vehicle franchise issues may be brought (1) Notwithstanding the terms, provisions, or conditions of any agreement or franchise, or the terms or provisions of any waiver, any person who is injured in his business or property by a violation of this section or any person so injured because he refuses to accede to a proposal for an arrangement which, if consummated, would be in violation of this section, may bring a civil action in the Franklin Circuit Court to enjoin further violations, to recover the actual damages sustained by him, together with costs of the suit, including a reasonable attorney's fee. (2) The commission may order, deny, suspend, or revoke the license of any new motor vehicle dealer, new recreational vehicle dealer, manufacturer, distributor, factory branch, or factory representative for failing to comply with any provisions of KRS 190.010 to 190.080 or KRS Chapter 190A, as such provisions apply, respectively, to new motor vehicle dealers, new recreational vehicle dealers, manufacturers, distributors, factory branches, or factory representatives; or in lieu thereof, or in addition thereto, may assess monetary penalties of a civil nature not to exceed one thousand dollars ($1,000) for each violation. (3) The provisions of KRS 190.010 to 190.080 and KRS Chapter 190A, as such provisions apply, respectively, to new motor vehicle dealers, new recreational vehicle dealers, manufacturers, distributors, factor branches, or factory representatives, shall apply to all persons required to be licensed under the terms herein, and to dealerships and contracts between new motor vehicle dealers, new recreational vehicle dealers, and manufacturers, distributors, factory branches, or factory representatives at the time of its passage, and to all such future new motor vehicle dealerships and contracts. (4) (a) In addition to the provisions of this section, before a civil action involving recreational vehicle franchise issues is brought, the party bringing suit for an alleged violation of this chapter shall serve a written demand for mediation on the offending party. The demand for mediation shall include a brief statement of the dispute and the relief sought by the party making the demand. The party making the demand shall serve the demand by certified mail to one (1) of the following addresses: 1. In an action between a new recreational vehicle dealer and a manufacturer, the address stated in the dealer agreement between the parties; 2. In an action between a new recreational vehicle dealer and a warrantor that is not a manufacturer, the address stated in any agreement between the parties; or 3 In an action between two (2) new recreational vehicle dealers, the address of the offending dealer in the records of the commission. (b) Within twenty (20) days after a demand for mediation is served under this subsection, the parties shall mutually select an independent mediator who is approved by the commission and meet with that mediator for the purpose of attempting to resolve the dispute at a location in this state selected by the mediator. The mediator may extend the date of the meeting for good cause shown by either party or if the parties agree to the extension. (c) The service of a demand for mediation under this subsection tolls the time for the filing of any complaint, petition, protest, or other action under this chapter until representatives of both parties have met with the mediator selected pursuant to paragraph (b) of this subsection for the purpose of attempting to resolve the dispute. If a complaint, petition, protest, or other action is filed before that meeting, the court shall enter an order suspending the proceeding or action until the mediation meeting has occurred and may, if all the parties to the proceeding or action stipulate in writing that they wish to continue to mediate under this subsection, enter an order suspending the proceeding or action for as long a period as the court considers appropriate. (d) Each of the parties to the mediation under this subsection is responsible for its own attorney fees. The parties shall equally divide the cost of the mediator. Effective: January 1, 2015 History: Amended 2014 Ky. Acts ch. 27, sec. 20, effective January 1, 2015. -- Created 1982 Ky. Acts ch. 374, sec. 3, effective July 15, 1982.

KRS 190.063 Records, public -- Continuation of licenses

190.063. Records, public -- Continuation of licenses All records of the commission, including those maintained by the department for its account, shall be public records. All persons holding any license which is authorized by this chapter, as of June 16, 1966, shall have the right to continue to hold, maintain, and renew such license after June 16, 1966, subject only to the suspension or revocation thereof pursuant to the provisions of this chapter. Effective: July 15, 1982 History: Amended 1982 Ky. Acts ch. 374, sec. 10, effective July 15, 1982. -- Created 1966 Ky. Acts ch. 175, sec. 11.

KRS 190.067 Department of Vehicle Regulation's authority to perform commission's duties upon failure or inability to perform

190.067. Department of Vehicle Regulation's authority to perform commission's duties upon failure or inability to perform If the commission fails to perform or is unable to perform any of its official duties within the time prescribed in this chapter, the department may perform these duties. Effective: July 15, 1998 History: Amended 1998 Ky. Acts ch. 263, sec. 2, effective July 15, 1998. -- Amended 1992 Ky. Acts ch. 452, sec. 9, effective July 14, 1992. -- Amended 1984 Ky. Acts ch. 357, sec. 9, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 374, sec. 11, effective July 15, 1982. -- Created 1966 Ky. Acts ch. 175, sec. 10.

KRS 190.070 Prohibited practices on the part of a manufacturer, distributor, factory branch, or factory representative

190.070. Prohibited practices on the part of a manufacturer, distributor, factory branch, or factory representative (1) It shall be a violation of this section for any manufacturer, distributor, factory branch, or factory representative licensed under this chapter, either directly or indirectly, to require any new motor vehicle dealer in the Commonwealth: (a) To order or accept delivery of any motor vehicle, part or accessory thereof, appliances, equipment, or any other product not required by law, which shall not have been voluntarily ordered by the new motor vehicle dealer; except that this section is not intended to modify or supersede any terms or provisions of the franchise requiring new motor vehicle dealers to market a representative line of those motor vehicles which the manufacturer or distributor is publicly advertising; (b) To order or accept delivery of any new motor vehicle with special features, appliances, accessories, or equipment not included in the list price of the motor vehicle, as publicly advertised by the manufacturer or distributor; (c) To order for any person any parts, accessories, equipment, machinery tools, appliance, or any commodity whatsoever not required in connection with a recall campaign; (d) To participate monetarily in an advertising campaign or contest, any promotional materials, training materials, showroom or other display decorations, or materials, at the expense of the dealer, without the consent of the dealer; (e) To enter into any agreement with the manufacturer, distributor, factory branch, or factory representative, or to do any other act prejudicial to the new motor vehicle dealer by threatening to cancel a franchise or any contractual agreement existing between the dealer and the manufacturer, distributor, factory branch, or factory representative. Notice in good faith to any dealer of the dealer's violation of any terms or provisions of the dealer's franchise, or contractual agreement shall not constitute a violation of this law; (f) To change the capital str ucture of the dealership, or the means by or through which the dealer finances the operation of the dealership, provided that the dealership at all times meets any reasonable capital standards agreed to by the dealer, excluding any entity engaged primarily in providing financing or insurance on motor vehicles; (g) To refrain from participation in the management or investment in, or the acquisition of any other line of new motor vehicle or related products; provided, however, that this section does not apply unless the new motor vehicle dealer maintains a reasonable line of credit for each make or line of new motor vehicles, and that the new motor vehicle dealer remains in substantial compliance with the terms and conditions of the franchise and with any reasonable facility requirements of the manufacturer, and no change is made in the principal management of the new motor vehicle dealership; (h) To change the location of the dealership or, during the course of the agreement, make any substantial alterations t o the same components of the dealership premises: 1. Within ten (10) years of a previously required improvement, alteration, or construction to those same components; or 2. When to do so, would be unreasonable in light of the current economic, political, and social considerations; (i) To prospectively assent to a release, assignment, novation, waiver, or estoppel which would relieve any person from liability to be imposed by this law, or to require any controversy between a dealer and a manufacturer, distributor, or representative, to be referred to any person other than the duly constituted courts of the Commonwealth or the United States of America, or to the commissioner, if the referral would be binding upon the dealer; (j) To establish or maintain exclusive facilities, personnel, display space, or signage for a new motor vehicle make or line; or (k) To expand facilities without making available a sufficient supply of new motor vehicles to support the expansion in light of the market and economic conditions. (2) It shall be a violation of this section for any manufacturer, distributor, factory branch, or factory representative, either directly or indirectly: (a) To delay, refuse, or fail to deliver motor vehicles, or vehicle parts or accessories in reasonable quantities relative to the new motor vehicle dealer's facilities and sales potential in the new motor vehicle dealer's relevant market area, and within a reasonable time, but in any case no more than sixty (60) days, after receipt of an order from a dealer having a franchise for the retail sale of any new vehicle sold or distributed by the manufacturer or distributor, any new vehicle, parts, or accessories to new vehicles as are covered by the franchise, if the vehicle, parts, or accessories are publicly advertised as being available for delivery or actually being delivered. The delivery to another dealer of a motor vehicle of the same model and identically equipped as the vehicle ordered by a motor vehicle dealer who has not received delivery thereof, but who had placed his or her written order for the vehicle prior to the order of the dealer receiving the vehicle, shall be prima facie evidence of a delayed delivery of, or refusal to deliver, a new motor vehicle to a motor vehicle dealer within sixty (60) days, without cause. This section is not violated, however, if the failure is caused by acts or causes beyond the control of the manufacturer, distributor, factory branch, or factory representative; (b) To refuse to disclose to any new motor vehicle dealer, handling the same line make, the manner and mode of distribution of that line make within the relevant market areas; (c) To prevent or attempt to prevent a dealer from receiving fair and reasonable compensation for the value of the franchised business. There shall not be a transfer or assignment of the dealer's franchise without the consent of the manufacturer or distributor, which consent shall not be unreasonably withheld; (d) To receive money, goods, services, or any other benefit from any vendor on account of a transaction between the dealer and the vendor with whom the dealer does business on the recommendation or requirement of the manufacturer or distributor, other than for compensation for services rendered, unless the benefit is promptly accounted for, and transmitted to the dealer, excluding any entity engaged primarily in providing financing or insurance on motor vehicles; (e) To increase prices of motor vehicles which the dealer had ordered for private retail customers prior to the dealer's receipt of the written official price increase notification, a sales contract signed by a private retail consumer shall constitute evidence of each order, provided that the vehicle is in fact delivered to the customer. In the event of manufacturer price reductions, the amount of a reduction received by a dealer shall be passed on to the private retail consumer by the dealer, if the retail price was negotiated on the basis of the previous higher price to the dealer. Price reductions shall apply to all vehicles in the dealer's inventory which were subject to the price reduction. Price differences applicable to new model or series motor vehicles at the time of the introduction of new models or series shall not be considered a price increase or price decrease. Price changes caused by the following shall not be subject to the provisions of this section: 1. The addition to a motor vehicle of required or optional equipment pursuant to state or federal law; 2. Revaluation of the United States dollar, in the case of foreign-make vehicles or components; or 3. Increased transportation charges due to an increase in the rate charged by common carrier or transporter; (f) To offer any refunds or other types of inducements to any person for the purchase of new motor vehicles of a certain line make to be sold to the state or any political subdivision thereof, without making the same offer, upon written request, to all other dealers in the same line make within the relevant market area; (g) To release to any outside party, except under subpoena, any administrative, judicial or arbitration proceedings, or any business, financial, or personal information which may be, from time to time, provided by the dealer to the manufacturer, without the express written consent of the dealer; (h) To deny any dealer the right of free association with any other dealer for any lawful purpose; (i) To establish or maintain a relationship, on the part of a manufacturer, distributor, factory branch, or factory representative, where the voting rights exceed a simple majority; (j) To own, operate, or control any motor vehicle dealership in the Commonwealth; however, this subsection shall not prohibit: 1. The operation by any manufacturer of a dealership for a temporary period, not to exceed one (1) year, during the transition from one (1) owner to another; 2. The ownership or control of a dealership by a manufacturer while the dealership is being sold under a bona fide contract or purchase option to the operator of the dealership; or 3. The ownership, operation, or control of a dealership by a manufacturer if the licensor determines after a hearing at the request of any party, that there is not a dealer who is independent of the manufacturer available in the community or trade area to own and operate the franchise in a manner consistent with the public interest; (k) To compete without good faith with a new motor vehicle dealer in the same line make, operating under an agreement or franchise from the aforementioned manufacturer, distributor, factory branch, or factory representative in the relevant market area. A manufacturer, distributor, factory branch, or factory representative shall not, however, be deemed to be competing when operating a dealership, either temporarily for a reasonable period, not to exceed one (1) year, or in a bona fide retail operation which is for sale to any qualified independent person at a fair and reasonable price, or in a bona fide relationship in which an independent person has made a significant investment, subject to loss in the dealership, and can reasonably expect to acquire full ownership of such dealership on reasonable terms and conditions; (l) To offer to sell or to sell, directly or indirectly, at retail, any new motor vehicle to a consumer in the Commonwealth, except through a new motor vehicle dealer holding a franchise for the line make covering the new motor vehicle. The prohibition in this paragraph shall not apply to manufacturer or franchisor sales of new motor vehicles to the federal government, charitable organizations, or fleet customers, but shall apply to any sale of a new motor vehicle to employees of the manufacturer or franchisor; (m) To fail to assign any retail vehicle reservation, request to purchase, or lease received by the manufacturer from a resident of the Commonwealth to the franchised dealer designated by the customer or, if no designation is made, to the franchised dealer in the closest proximity to the consumer, and for which the franchised dealer is otherwise in compliance with the franchise agreement and authorized to sell the make and model based on applicable standards and requirements that include but are not limited to any facility, technology, or training requirements necessary to sell or service the vehicle, so long as the standards and requirements are compliant with the applicable laws and regulations. Nothing in this paragraph shall require a manufacturer or distributer to allocate or supply additional or supplemental inventory to a franchised dealer located in the Commonwealth in order to satisfy a retail consumer's reservation or request; (n) To unfairly discriminate among its new motor vehicle dealers with respect to warranty reimbursement or authority granted its new motor vehicle dealers to make warranty adjustment with retail customers; (o) To fail to give consent to the sale, transfer, or exchange of the franchise to a qualified buyer capable of being licensed as a new motor vehicle dealer in this state; provided that consent may be withheld when in light of other circumstances, granting the consent would be unreasonable; or (p) To fail to be licensed as provided in this chapter, and to maintain a bond in an amount as determined by this chapter. (3) It shall be unlawful for a manufacturer, either directly or indirectly, or in combination with or through any subsidiary or affiliated entity, to discriminate in favor of one (1) dealer against another dealer holding a franchise for the same line make of motor vehicle by furnishing to only one (1) dealer any of the following: (a) Any vehicle, part, or other product that is not available to each dealer at the same price, including discounts, rebates, incentives, or other payments or allowances affecting the net price of the product; (b) Any vehicle, part, or other product that is not made available to each dealer in quantities proportionate to the demand for the vehicle, part, or other product; (c) Any vehicle, part, or other product that is not made available to each dealer on comparable delivery terms, including time of delivery after placement of an order; (d) Any promotional or advertising payment or allowance that is not made available to each dealer on proportionally equal terms; (e) Any opportunity to purchase or lease from the manufacturer the dealer's facility that is not made available to each dealer on terms proportionate to the respective values of its facilities; (f) Any personnel training that is not made available to each dealer on proportionally equal terms; (g) Any inventory or other financing that is not made available to each dealer on proportionally equal terms, except that a manufacturer, subsidiary, or affiliated entity shall not be obligated to make available financing to a dealer who does not meet reasonable credit standards uniformly applied by the manufacturer, subsidiary, or affiliated entity; (h) Any opportunity to perform work for which the dealer is entitled to be compensated under this chapter that is not made available to each deal er under uniformly applied standards; (i) Any opportunity to sell products or services distributed by the manufacturer for resale in connection with the line make of the motor vehicle covered by the franchise that is not made available to each dealer on pr oportionally equal terms; (j) Any opportunity to establish an additional sales, service, or parts outlet that is not made available to each dealer in whose relevant market area the sales, service, or parts outlet will be located; (k) Any information concerning the manufacturer's products, prices or other terms of sale, or promotional programs that is not contemporaneously furnished to the dealer; (l) Any improvement to, or payment to the dealer for an improvement to, the dealer's facilities that is not made available to each dealer on proportionally equal terms; (m) Any opportunity to sell or assign retail installment contracts or consumer leases to the manufacturer or the manufacturer's sales finance company subsidiary that is not made available to each dealer on proportionally equal terms, except that a manufacturer or sales finance company shall not be obligated to purchase any retail installment contract or consumer lease that does not meet reasonable credit terms uniformly applied by the manufacturer or sales finance company subsidiary; (n) Any product assistance, service, or facility in connection with the franchise that is not made available to each dealer on proportionally equal terms; or (o) Any payment for any service or facility in connection with the franchise that is not made available to each dealer on proportionally equal terms. (4) It shall not be a defense to an alleged violation of subsection (3) of this section, that an item or opportunity was offered to a dealer if the offer was conditioned upon the dealer meeting one (1) or more requirements that are not reasonable and necessary to fulfill the dealer's obligations under the franchise. The manufacturer shall have the burden of proving that any requirement upon which an offer was conditioned was reasonable and necessary to fulfill the dealer's obligations under the franchise when the offer was made. A requirement shall not be found to be reasonable and necessary to fulfill the dealer's obligations under the franchise if the manufacturer cannot prove that it was within the control of each dealer to meet the requirement imposed on the dealer as a condition of the offer. (5) A dealer who alleges a good-faith belief that the dealer has been, or is being, discriminated against in violation of subsection (3) of this section, may demand in writing that the manufacturer furnish the dealer with pertinent information reasonably necessary for the dealer to determine if discrimination exists. If the manufacturer fails to furnish the dealer with the information demanded within thirty (30) days of the manufacturer's receipt of the dealer's written demand, the manufacturer shall have, in any subsequent legal proceeding, the burden of proving that the alleged violation has not occurred. (6) Any dealer who is discriminated against by a manufacturer in violation of subsection (3) of this section shall recover three (3) times an amount equal to the value of what the dealer would have received if the manufacturer had complied with subsection (3) of this section upon furnishing any item or opportunity to another dealer. (7) A change in ownership of a manufacturer or distributor that contemplates a continuation of that line make in the state shall not directly or indirectly, through actions of any parent of the manufacturer or distributor, subsidiary of the manufacturer or distributor, or common entity cause a termination, cancellation, or nonrenewal of a dealer agreement by a present or previous manufacturer or distributor of an existing agreement unless the manufacturer or distributor offers the new vehicle dealer an agreement substantially similar to that offered to other dealers of the same line make. Effective: June 29, 2023 History: Amended 2023 Ky. Acts ch. 7, sec. 5, effective June 29, 2023; and ch. 129, sec. 6, effective June 29, 2023. -- Amended 2008 Ky. Acts ch. 17, sec. 1, effective July 15, 2008. -- Amended 2000 Ky. Acts ch. 23, sec. 6, effective February 22, 2000. -- Amended 1982 Ky. Acts ch. 373, sec. 13, effective July 15, 1982. -- Created 1956 Ky. Acts ch. 161, sec. 7, effective May 18, 1956. Legislative Research Commission Note (6/29/2023). This statute was amended by 2023 Ky. Acts chs. 7 and 129. Where these Acts are not in conflict, they have been codified together. Where a conflict exists, Acts ch. 129, which was last enacted by the General Assembly, prevails under KRS 446.250.

KRS 190.071 Prohibited practices on part of new motor vehicle dealer

190.071. Prohibited practices on part of new motor vehicle dealer (1) It shall be a violation of this section for any new motor vehicle dealer: (a) To require the purchaser of a motor vehicle as a condition of sale and delivery, to also purchase special features, appliances, accessories, or equipment not desired or requested by the purchaser, unless the features, appliances, accessories, or equipment are the type which are ordinarily installed on the vehicle by the manufacturer or distributor when the vehicle is received or acquired by the dealer. (b) To advertise, display, represent, or sell as a new or unused motor vehicle any vehicle which has been operated for demonstration purposes, or which is otherwise a used motor vehicle. (c) To sell or offer for sale as a new or unused motor vehicle any motor vehicle for which he cannot secure for the purchaser the new car warranty that may be extended by the manufacturer of the vehicle to purchasers of one (1) of its new vehicles, unless the fact that the vehicle being sold without a manufacturer's warranty is communicated to the purchaser, and disclosed prominently in writing. (d) To fail to have an established place of business which is used, or will be used, primarily for the purpose of selling, buying, displaying, repairing, or servicing motor vehicles. (e) To use false or fraudulent representations in connection with the operation of the new motor vehicle dealership. (f) To fail to reasonably supervise his agents, salesmen, or employees. (g) To transfer a new motor vehicle with a manufacturer's statement of origin to a motor vehicle dealer who does not have either a valid service agreement or franchise from the particular line, make, manufacturer, distributor, factory branch, or factory representative. (2) Any motor vehicle dealer who fails to comply with this section or the provisions of KRS Chapter 186 or 186A, and any motor vehicle dealer other than a wholesale auto dealer who is found by the commission to have acquired a used motor vehicle for cash, trade-in, or in any other manner and fails to have the registration transferred to him prior to the time the vehicle is sold or otherwise transferred to another person shall be subject to suspension, fine, or revocation of his motor vehicle dealer's license. Effective: July 14, 1992 History: Amended 1992 Ky. Acts ch. 452, sec. 10, effective July 14, 1992. -- Amended 1984 Ky. Acts ch. 357, sec. 10, effective July 13, 1984. -- Created 1982 Ky. Acts ch. 373, sec. 14, effective July 15, 1982.

KRS 190.073 Regulations

190.073. Regulations The commission shall promulgate appropriate and reasonable regulations for the purpose of carrying out the provisions of this chapter. Effective: July 13, 1984 History: Amended 1984 Ky. Acts ch. 357, sec. 11, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 374, sec. 12, effective July 15, 1982. -- Created 1966 Ky. Acts ch. 175, sec. 18.

KRS 190.075 Restraint of violations

190.075. Restraint of violations At the instance of the commission, the department or of any person having any interest in the subject matter, the courts of this state may enjoin any person from violating any of the provisions of this chapter, or any order, rule, regulation or requirement of the commission. The Franklin Circuit Court shall hold concurrent venue with the courts of this Commonwealth of all civil and injunctive actions instituted by the commission for the enforcement of the provisions of this chapter, or the orders, rules, regulations or requirements properly promulgated under this chapter. Effective: July 13, 1984 History: Amended 1984 Ky. Acts ch. 357, sec. 12, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 374, sec. 13, effective July 15, 1982. -- Amended 1974 Ky. Acts ch. 74, Art. IV, sec. 20(2). -- Created 1966 Ky. Acts ch. 175, sec. 12.

KRS 190.080 Previous consumer-owner information provided upon request -- Written consent requirement

190.080. Previous consumer-owner information provided upon request -- Written consent requirement (1) As used in this section, "previous consumer-owner" means the last owner of the vehicle who could reasonably be expected to have operated the used car for personal, family, household, or business purposes, but does not include an owner who possessed the vehicle primarily for resale purposes. (2) (a) Except as provided in paragraph (b) of this subsection, a motor vehicle dealer or motor vehicle salesperson shall not refuse to furnish, upon request of a prospective purchaser, the name, address, and telephone number, if known or available, of the previous consumer-owner of any used car offered for sale. (b) The provisions of paragraph (a) of this subsection shall not apply if the previous consumer-owner has not given written consent to share his or her information with a prospective purchaser. (3) A person shall not transfer a motor vehicle in order to avoid compliance with this section. Effective: July 15, 2024 History: Amended 2024 Ky. Acts ch. 79, sec. 1, effective July 15, 2024. -- Amended 2015 Ky. Acts ch. 95, sec. 1, effective June 24, 2015. -- Amended 1976 Ky. Acts ch. 335, sec. 1, effective June 19, 1976. -- Created 1956 Ky. Acts ch. 161, sec. 8, effective May 18, 1956.

KRS 190.085 Civic event license plate

190.085. Civic event license plate (1) A vehicle which has been donated or loaned by a licensed motor vehicle dealer for use in a civic event may be operated during preparation for and during the civic event with a civic event license plate. (2) Application for approval of the use of a civic event license plate shall be made to the Department of Vehicle Regulation on forms prescribed and furnished by the department at least sixty (60) days prior to the event. The licensed motor vehicle dealer in his application shall provide the name of the event for which the motor vehicles will be used, date and duration of the event, the number of vehicles to be loaned or donated and other information required by the Department of Vehicle Regulation. The application shall be accompanied by five dollars ($5) for each civic event license plate applied for. The commissioner of the Department of Vehicle Regulation shall approve or deny the use of the license plate within thirty (30) days after receiving the application and inform the dealer as to his decision. (3) At least ten (10) days prior to the date approved for the use of civic event license plate, the motor vehicle dealer shall provide to the department the vehicle identification number for each vehicle which is anticipated to be lent or donated to the civic event. (4) Any motor vehicle bearing a civic event license plate authorized by subsection (1) of this section shall be restricted to use in providing services for events for which approval is granted. The services may include, but not be limited to, parades, transportation of visitors or dignitaries to and from event activities, use by event personnel or event volunteers and any other activity for which a vehicle may be required in the furtherance of the civic event. (5) The use of the civic event license plate shall be limited to the time set forth in the approved application. A copy of the approved application shall be carried in the vehicle at all times. When the civic event license plate expires, the dealer shall remove the plate and return it to the Department of Vehicle Regulation. The vehicle shall then be registered in a manner required by KRS Chapter 186. A misuse of civic event license plates shall be deemed a violation of the motor vehicle dealer's license. (6) The Department of Vehicle Regulation may promulgate administrative regulations to implement this section. Effective: July 15, 1988 History: Created 1988 Ky. Acts ch. 300, sec. 1, effective July 15, 1988.

KRS 190.090 Definitions for KRS 190.090 to 190.140

190.090. Definitions for KRS 190.090 to 190.140 As used in KRS 190.090 to 190.140, unless the context or subject matter otherwise requires: (1) "Person" means an individual, partnership, corporation, association, and any other group however organized; (2) "Retail installment sale" means any sale for other than agricultural, business, or commercial use evidenced by a retail installment contract wherein retail buyer agrees to buy and retail seller agrees to sell a motor vehicle at a time sale price payable in two (2) or more installments. The cash sale price of the motor vehicle, the amount, if any, included for insurance and other benefits, official fees and the finance charge, shall together constitute the time sale price; (3) "Retail installment contract" means any agreement, entered into in this state, evidencing a retail installment sale of a motor vehicle, other than for the purpose of resale, pursuant to which title to, or a lien upon the motor vehicle is retained by the retail seller as security for the retail buyer's obligation. This term includes a mortgage, conditional sale contract or any contract for the bailment or leasing of a motor vehicle by which the bailee or lessee contracts to pay as compensation for its use a sum substantially equivalent to the time sale price of the motor vehicle and by which it is agreed that the bailee or lessee is bound to become, or has the option of becoming for no additional consideration or for nominal additional consideration, the owner of such motor vehicle; (4) "Motor vehicle" means any device in, upon, or by which any person or property is, or may be transported or drawn upon a highway. The term does not include self- propelled wheelchairs and invalid tricycles, tractors, power shovels, road machinery, implements of husbandry and other agricultural machinery, or other machinery not designed primarily for highway transportation but which may incidentally transport persons or property on a highway, or devices which move upon or are guided by a track or travel through the air. A moped as defined in KRS 190.010 and a recreational vehicle shall be subject to the same requirements as a motor vehicle under this section; (5) "Retail seller" or "seller" means a person who sells or agrees to sell a motor vehicle under a retail installment contract to a retail buyer; (6) "Retail buyer" or "buyer" means a person who buys or agrees to buy a motor vehicle from a retail seller not for the purpose of resale and who executes a retail installment contract in connection therewith; (7) "Sales finance company" means a person engaged in the business of creating and holding or purchasing or acquiring retail installment contracts from a retail seller. The term includes a bank, trust company, private banker, industrial bank, investment company or national bank, if so engaged; (8) "Cash sale price" means, for purposes of KRS 190.090 to 190.140 only, and not for purposes of KRS 138.455 to 138.470, the price at which the seller would in good faith sell to the buyer, and the buyer would in good faith buy from the seller, the motor vehicle which is the subject matter of the retail installment contract, if such sale were a sale for cash, instead of a retail installment sale. The cash sale price may include: (a) Any taxes, registration fees, certificate of title fees, and, if any, license fees; (b) Charges for delivery, servicing, repairing, or improving the motor vehicle, including accessories and their installation; (c) Charges for a service contract, mechanical breakdown insurance, a maintenance agreement, a vehicle protection product, and any other goods or services related to the sale that the buyer agrees to purchase from the seller; and (d) Any processing fee; (9) "Official fees" means the fees prescribed by law for filing, recording, or otherwise perfecting and releasing or satisfying a retained title or a lien created by a retail installment contract; (10) "Finance charge" means that part of the time sale price by which it exceeds the aggregate of the cash sale price, the amount, if any, included for insurance and other benefits and official fees included in the retail installment sale; (11) "Maintenance agreement" means a contract of limited duration that provides for scheduled maintenance and parts related to such maintenance. A maintenance agreement shall not be considered a contract of, or for, insurance; (12) "Service contract" has the same meaning as in KRS 304.5-070(1)(p); (13) "Truth in Lending Act" means Title I of Pub. L. No. 90-321, codified at 15 U.S.C. secs. 1601 to 1667f, as may be amended from time to time; (14) "United States Rule" means that in partial payments on a debt, each payment is applied first to the finance charge and any remainder reduces the principal. Under this rule, accrued but unpaid finance charges cannot be added to the principal and interest cannot be compounded; (15) "Vehicle protection product" means a vehicle protection device, system, or service that is installed on or applied to a vehicle that is designed to deter the theft of the vehicle, and includes a written warranty that provides that if the product fails to deter the theft of the vehicle, the warranty holder shall be paid specified incidental costs by the warrantor as a result of the failure of the device, system, or service to perform pursuant to the terms of the warranty. Vehicle protection products include but are not limited to window etch products and body part marking products. A vehicle protection product shall not be considered a contract of, or for, insurance; and (16) Words in the singular include the plural and vice versa. Effective: July 15, 2016 History: Amended 2016 Ky. Acts ch. 57, sec. 2, effective July 15, 2016. -- Amended 2014 Ky. Acts ch. 27, sec. 21, effective January 1, 2015. -- Amended 2012 Ky. Acts ch. 96, sec. 1, effective July 12, 2012. -- Amended 1984 Ky. Acts ch. 391, sec. 1, effective July 13, 1984. -- Amended 1978 Ky. Acts ch. 349, sec. 11, effective June 17, 1978. -- Created 1956 Ky. Acts ch. 105, sec. 1, effective July 1, 1956.

KRS 190.100 Retail installment contract. (Effective until January 1, 2027)

190.100. Retail installment contract. (Effective until January 1, 2027) (1) (a) Every retail installment contract shall: 1. Be in writing in at least eight (8) point type; 2. Contain all the agreements of the parties; 3. Be signed by the retail buyer; and 4. Require a copy thereof to be furnished to the retail buyer at the time of the execution of the contract. (b) A retail installment contract need not appear on a single page and a contract that includes a provision incorporating agreements that appear after the buyer's signature, including without limitation, terms, and conditions on the back or on subsequent pages, shall be deemed in compliance with KRS 446.060(1). (c) No provisions for confession of judgment, power of attorney therefor, or wage assignment contained in any retail installment contract shall be valid or enforceable. (d) 1. The holder of a retail installment contract may collect a delinquency and collection charge in an amount not in excess of five percent (5%) of each installment or fifteen dollars ($15), whichever is greater, for each installment in arrears for a period not less than: a. Three (3) days for installment periods that are less than twenty - eight (28) days; or b. Ten (10) days for installment periods that are twenty -eight (28) days or longer. 2. In addition to such delinquency and collection charge, the retail installment contract may provide for the payment of reasonable attorneys' fees where such contract is referred to an attorney not a salaried employee of the holder of the contract for collection, plus the court costs. (e) Unless notice has been given to the retail buyer of actual or intended assignment of a retail installment contract, payment thereunder or tender thereof made by the retail buyer to the last known holder of such contract shall be binding upon all subsequent holders or assignees. (f) Upon written request from the retail buyer, the holder of the retail installment contract shall give or forward to the retail buyer a written statement of the total amount unpaid under such contract. A retail buyer shall be given a written receipt for any payment when made in cash . (2) The retail installment contract shall contain the following: (a) The cash sale price of the motor vehicle which is the subject matter of the retail installment sale; (b) The amount of the retail buyer's down payment, whether made in money or goods, or partly in money or partly in goods; (c) The difference between paragraphs (a) and (b) of this subsection; (d) 1. Amount, if any, included for insurance and other benefits; and 2. Types of coverage and benefits; (e) Official fees as defined in KRS 190.090; (f) Any amounts eligible for inclusion in the cash sale price as defined in KRS 190.090 that the seller elects to separately itemize; and (g) Principal balance, which is the sum of paragraphs (c), (d), and (e) of this subsection. (3) A retail installment contract is deemed in compliance with subsection (2) of this section if it satisfies the requirements of the Truth in Lending Act that would apply to a retail installment contract within the Truth in Lending Act's scope, regardless of whether the Truth in Lending Act would apply to the retail installment sale at issue. (4) The amount, if any, included for insurance, shall not exceed the premiums chargeable in accordance with applicable rate filings made with the commissioner of insurance. Every retail seller or sales finance company, if insurance on the motor vehicle is included in a retail installment contract shall within thirty (30) days after execution of the retail installment contract send or cause to be sent to the retail buyer a policy or policies or certificate of insurance, which insurance shall be written by a company authorized to do business in this state, clearly setting forth the amount of the premium, the kind or kinds of insurance and the scope of the coverage and all the terms, exceptions, limitations, restrictions and conditions of the contract or contracts of the insurance. The buyer of a motor vehicle under a retail installment contract shall have the privilege of purchasing such insurance from an agent or broker of his own selection and of selecting an insurance company acceptable to the seller; provided, however, that the inclusion of the insurance premium in the retail installment contract when the buyer selects the agent, broker or company, shall be optional with the seller. If any suc h policy is canceled, the unearned insurance premium refund received by the holder of the contract shall be credited to the final maturing installments of the retail installment contract. For purposes of this subsection, single interest insurance insuring the retail seller or sales finance company shall not be considered insurance on the motor vehicle. Neither a copy of the policy nor a certificate of insurance of this type of insurance shall be sent to the retail buyer. (5) Any sales finance company hereunder may purchase or acquire from any retail seller any retail installment contract on such terms and conditions as may be agreed upon between them. No filing of the assignment, no notice to the retail buyer of the assignment, and no requirement that the re tail seller shall be deprived of dominion over the payments thereunder or the goods covered thereby if repossessed by the retail seller shall be necessary to the validity of a written assignment of a retail installment contract as against creditors, subseq uent purchasers, pledgees, mortgagees, and lien claimants of the retail seller. (6) An acknowledgment in the body of the retail installment contract by the retail buyer of the delivery of a copy thereof shall be conclusive proof of delivery in any action or proceeding by or against any assignee of a retail installment contract. (7) (a) A "debt cancellation agreement" is a written provision in a retail installment contract, or separate addendum thereto, which provides for cancellation of all or part of an obligation of the buyer or obligor upon the occurrence of a specified event. (b) In accordance with subsection (2)(d) of this section, a debt cancellation agreement shall be itemized by type on the retail installment contract and considered an "other benefit" for which the seller, sales finance company, or other holder may charge the buyer or obligor. (c) A debt cancellation agreement shall not be considered a contract of, or for, insurance. Effective: June 27, 2025 History: Amended 2025 Ky. Acts ch. 55, sec. 1, effective June 27, 2025. -- Amended 2012 Ky. Acts ch. 96, sec. 2, effective July 12, 2012. -- Amended 2010 Ky. Acts ch. 24, sec. 240, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 68, sec. 1, effective July 15, 2008. -- Amended 1992 Ky. Acts ch. 384, sec. 1, effective July 14, 1992. -- Amended 1984 Ky. Acts ch. 391, sec. 2, effective July 13, 1984. -- Created 1956 Ky. Acts ch. 105, sec. 2, effective July 1, 1956.

KRS 190.110 Finance charges -- Rates -- Computations

190.110. Finance charges -- Rates -- Computations (1) The finance charge allowed by this subsection may be precomputed by using an add-on method. If the finance charge in a retail installment sale is precomputed it shall not exceed the following rates: Class 1. Any new or used motor vehicle designated by the manufacturer by a year model not earlier than the year in which the sale is made -- eleven dollars ($11) per one hundred dollars ($100) of principal balance, as determined pursuant to KRS 190.100(2), per year of the contract. Class 2. Any new motor vehicle not in class 1 and any used motor vehicle designated by the manufacturer by a year model of one (1) or two (2) years prior to the year in which the sale is made -- thirteen dollars ($13) per one hundred dollars ($100) of principal balance, as determined pursuant to KRS 190.100(2), per year of the contract. Class 3. All other motor vehicles not in class 1 or 2 -- fifteen dollars ($15) per one hundred dollars ($100) of principal balance, as determined pursuant to KRS 190.100(2), per year of the contract. (2) If the finance charge applicable to a retail installment sale is precomputed and the retail installment contract provides for successive monthly payments, substantially equal in amount, the maximum finance charge computed pursuant to subsection (1) of this section for a partial year occurring at the beginning of a contract with a term of less than one (1) year or at the end of a contract with a remaining term greater than a year shall be prorated at the annual maximum amount of finance charge computed under subsection (1) of this section, based on the number of months in the partial year. (3) If the finance charge applicable to a retail installment sale is precomputed and the retail installment contract provides for unequal or irregular installment payments, the maximum finance rate of the finance charge shall be at the effective rate provided in subsection (1) of this section, having due regard for the schedule of payment. (4) Alternatively, the seller may, at his option, compute the finance charge in a retail installment sale on a simple interest basis, taking into account the actual number of days between payments under the contract using a fixed or variable rate not to exceed the effective rate of finance charge permitted under subsection (1) of this section. (5) For the purposes of subsections (3) and (4) of this section, the effective rate of the finance charge permitted by subsection (1) of this section shall be the rate computed in accordance with the actuarial method or the United States Rule method for a retail installment contract that provides for: (a) The total finance charge permitted under subsections (1) and (2) of this section; (b) Successive monthly payments substantially equal in amount; and (c) The purchase of a vehicle of the same vehicle class over the same term as the unequal or irregular installment payment contract subject to subsection (3) of this section or the simple interest basis contract subject to subsection (4) of this section. In computing the effective rate, the seller may make any assumptions and use any method that the Truth in Lending Act and the regulations promulgated thereunder would permit in computing the annual percentage rate. Effective: July 12, 2012 History: Amended 2012 Ky. Acts ch. 96, sec. 3, effective July 12, 2012. -- Amended 1984 Ky. Acts ch. 391, sec. 3, effective July 13, 1984. -- Amended 1980 Ky. Acts ch. 321, sec. 2, effective July 15, 1980. -- Created 1956 Ky. Acts ch. 105, sec. 3, effective July 1, 1956.

KRS 190.120 Payment in full before maturity

190.120. Payment in full before maturity (1) If the finance charge applicable to the retail installment contract has been determined by a precomputed method, the retail buyer may pay in full at any time before the stated maturity date and upon such prepayment in full the retail buyer shall receive a refund of a portion of the finance charge not less than the refund computed in accordance with the Rule of 78's. An acquisition cost of twenty-five dollars ($25) shall be deducted from the finance charge before computation of the refund. Where the refund is less than one dollar ($1) no refund need be made and acceleration of the balance by the seller, caused by the default of the buyer or otherwise, shall not affect the date of computation. Any balance remaining unpaid as of the stated maturity date shall then be subject to accumulation of additional finance charges at the rate specified in the contract. (2) If the finance charge applicable to the retail installment contract has or will be determined by a simple interest method, the retail buyer may pay in full at any time before the stated maturity date without penalty, except that the holder may collect and receive a minimum finance charge of twenty-five dollars ($25) in any event. Effective: July 12, 2012 History: Amended 2012 Ky. Acts ch. 96, sec. 4, effective July 12, 2012. -- Amended 1984 Ky. Acts ch. 391, sec. 4, effective July 13, 1984. -- Created 1956 Ky. Acts ch. 105, sec. 4, effective July 1, 1956.

KRS 190.124 Statute of limitations on action for breach of retail installment contract

190.124. Statute of limitations on action for breach of retail installment contract (1) The holder of a retail installment contract shall commence an action against the retail buyer to recover monetary damages or other relief for breach of the retail installment contract within the earlier of the following: (a) Four (4) years after the maturity date of the retail installment contract; (b) If the motor vehicle has been repossessed, voluntarily or involuntarily, four (4) years after the date the motor vehicle was sold or otherwise disposed of by the repossessing retail seller, sales finance company, or other owner of the retail installment contract; or (c) If the maturity date is accelerated by reason of default, regardless of whether the motor vehicle has been repossessed, within four (4) years of the accelerated maturity date. (2) The provisions of this section shall control over any contrary provision of KRS Chapter 413. Effective: July 12, 2006 History: Created 2006 Ky. Acts ch. 242, sec. 62, effective July 12, 2006.

KRS 190.130 Extension, deferral or renewal -- When -- Service fee -- Additional charge

190.130. Extension, deferral or renewal -- When -- Service fee -- Additional charge The holder of a retail installment contract may, upon agreement with the retail buyer, extend the scheduled due date, defer the scheduled payment of all or part of any installment payment or payments, or renew the balance of such contract. In any such case the holder may restate the amount of the installments and the time schedule therefor, and collect as a refinance charge for such extension, deferment or renewal, a flat service fee not to exceed five dollars ($5) and an additional finance charge computed at the same rate and by the same method as originally set out in the retail installment contract computed from the date of such extension, deferment or renewal. Effective: July 13, 1984 History: Amended 1984 Ky. Acts ch. 391, sec. 5, effective July 13, 1984. -- Created 1956 Ky. Acts ch. 105, sec. 5, effective July 1, 1956.

KRS 190.140 Citation of KRS 190.090 to 190.140

190.140. Citation of KRS 190.090 to 190.140 KRS 190.090 to 190.140 may be cited as "The Motor Vehicle Retail Installment Sales Act." Effective: July 1, 1956 History: Created 1956 Ky. Acts ch. 105, sec. 8, effective July 1, 1956.

KRS 190.180 Repealed, 1974

190.180. Repealed, 1974 Catchline at repeal: Definition of terms in KRS 190.180 to 190.250. History: Repealed 1974 Ky. Acts ch. 76, sec. 15, effective June 21, 1974. -- Amended 1968 Ky. Acts ch. 152, sec. 124. -- Created 1966 Ky. Acts ch. 120, sec. 2.

KRS 190.190 Repealed, 1974

190.190. Repealed, 1974 Catchline at repeal: License required for mobile home dealers and manufacturers -- Application fees -- Bond -- Report. History: Repealed 1974 Ky. Acts ch. 76, sec. 15, effective June 21, 1974. -- Created 1966 Ky. Acts ch. 120, sec. 4.

KRS 190.200 Repealed, 1974

190.200. Repealed, 1974 Catchline at repeal: Licenses issuance. History: Repealed 1974 Ky. Acts ch. 76, sec. 15, effective June 21, 1974. -- Created 1966 Ky. Acts ch. 120, sec. 3.

KRS 190.210 Repealed, 1974

190.210. Repealed, 1974 Catchline at repeal: Denial, suspension, revocation of license, grounds. History: Repealed 1974 Ky. Acts ch. 76, sec. 15, effective June 21, 1974. -- Created 1966 Ky. Acts ch. 120, sec. 6 (1) and (7).

KRS 190.220 Repealed, 1974

190.220. Repealed, 1974 Catchline at repeal: Procedure on denial, suspension or revocation. History: Repealed 1974 Ky. Acts ch. 76, sec. 15, effective June 21, 1974. -- Created 1966 Ky. Acts ch. 120, sec. 6 (2) to (5).

KRS 190.230 Repealed, 1974

190.230. Repealed, 1974 Catchline at repeal: Powers of commissioner, hearing -- Subpoenas -- Witness fees. History: Repealed 1974 Ky. Acts ch. 76, sec. 15, effective June 21, 1974. -- Created 1966 Ky. Acts ch. 120, sec. 6 (6) and (7).

KRS 190.240 Repealed, 1974

190.240. Repealed, 1974 Catchline at repeal: Kentucky mobile home dealers license board -- Members -- Terms -- Functions. History: Repealed 1974 Ky. Acts ch. 76, sec. 15, effective June 21, 1974. -- Created 1966 Ky. Acts ch. 120, sec. 5.

KRS 190.250 Repealed, 1974

190.250. Repealed, 1974 Catchline at repeal: Rules and regulations. History: Repealed 1974 Ky. Acts ch. 76, sec. 15, effective June 21, 1974. -- Created 1966 Ky. Acts ch. 120, sec. 8.

KRS 190.260 Definitions for KRS 190.270 to 190.320

190.260. Definitions for KRS 190.270 to 190.320 As used in KRS 190.270 to 190.320: (1) "Odometer" means an instrument for measuring and recording the actual distance a motor vehicle or motor home as defined in KRS 190A.010 travels while in operation; but shall not include any auxiliary odometer designed to be reset by the operator of the motor vehicle for the purpose of recording mileage on trips; (2) "Repair and replacement" means to restore to a sound working condition by replacing the odometer or any part thereof or by correcting what is inoperative; and (3) "Transfer" means to change ownership by purchase, gift, or any other means. Effective: January 1, 2015 History: Amended 2014 Ky. Acts ch. 27, sec. 22, effective January 1, 2015. -- Created 1976 Ky. Acts ch. 246, sec. 1., effective June 19, 1976.

KRS 190.270 Unlawful acts -- Suspension and revocation schedule for violations

190.270. Unlawful acts -- Suspension and revocation schedule for violations (1) It is unlawful for any person to advertise for sale, to sell, to use, or to install or to have installed, any device which causes an odometer to register any mileage other than the true mileage driven. For purposes of this section, the true mileage driven is that mileage the vehicle has been driven as registered by the odometer within the manufacturer's designed tolerance. (2) It is unlawful for any person or his agent to disconnect, reset, or alter the odometer of any motor vehicle or motor home with the intent to change the number of miles indicated thereon. (3) It is unlawful for any person with the intent to defraud to operate a motor vehicle or motor home on any street or highway knowing that the odometer of such vehicle is disconnected or nonfunctional. (4) The commission shall deny, suspend or revoke the license of any person who violates or causes, aids or abets any violation of this section which denial, suspension or revocation may be in addition to, and not exclusive of, any other penalties provided for elsewhere in this chapter. Effective: January 1, 2015 History: Amended 2014 Ky. Acts ch. 27, sec. 23, effective January 1, 2015. -- Amended 1984 Ky. Acts ch. 357, sec. 13, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 315, sec. 1, effective July 15, 1982. -- Created 1976 Ky. Acts ch. 246, secs. 2, 3, 4, effective June 19, 1976.

KRS 190.280 Conspiracy to violate provisions of KRS 190.260 to 190.320

190.280. Conspiracy to violate provisions of KRS 190.260 to 190.320 No person shall conspire with any other person to violate the provisions of KRS 190.260 to 190.320. Effective: June 19, 1976 History: Created 1976 Ky. Acts ch. 246, sec. 5, effective June 19, 1976.

KRS 190.290 Service, repair or replacement of odometer

190.290. Service, repair or replacement of odometer Nothing in KRS 190.260 to 190.320 shall prevent the service, repair, or replacement of an odometer, provided the mileage indicated thereon remains the same before the service, repair, or replacement. Where the odometer is incapable of registering the same mileage as before such service, repair, or replacement, the odometer shall be adjusted to read zero and a notice in writing shall be attached to the left door frame of the vehicle by the owner or his agent specifying the mileage prior to repair or replacement of the odometer and the date on which it was repaired or replaced. Any removal or alteration of such notice so affixed shall be unlawful. Effective: June 19, 1976 History: Created 1976 Ky. Acts ch. 246, sec. 6, effective June 19, 1976.

KRS 190.300 Disclosure of mileage upon transfer of motor vehicle or motor home

190.300. Disclosure of mileage upon transfer of motor vehicle or motor home (1) Any transferor must give a written disclosure to the transferee in connection with the transfer of ownership of a motor vehicle or motor home: (a) Disclosing the cumulative mileage registered on the odometer. (b) Disclosure that the actual mileage is unknown, if the odometer reading is known to the transferor to be different from the number of miles the vehicle has actually traveled. (2) It shall be a violation of this section for any transferor to knowingly give a false statement to a transferee in making any disclosure required by this section. Effective: January 1, 2015 History: Amended 2014 Ky. Acts ch. 27, sec. 24, effective January 1, 2015. -- Created 1976 Ky. Acts ch. 246, sec. 7, effective June 19, 1976.

KRS 190.310 Liability for violation of KRS 190.270 to 190.320 with intent to defraud

190.310. Liability for violation of KRS 190.270 to 190.320 with intent to defraud (1) Any person who, with intent to defraud, violates any requirement imposed under KRS 190.270 to 190.320 shall be liable to the transferee in an amount equal to the sum of: (a) Three (3) times the amount of actual damages sustained or fifteen hundred dollars ($1,500), whichever is the greater; and (b) In the case of any successful action to enforce the foregoing liability, the costs of the action together with reasonable attorney fees as determined by the court. (2) An action to enforce any liability created under subsection (1) of this section, may be brought in a Circuit Court of a county in which the purchaser of the motor vehicle resides. Effective: June 19, 1976 History: Created 1976 Ky. Acts ch. 246, sec. 8, effective June 19, 1976.

KRS 190.320 Forms

190.320. Forms Compliance with KRS 190.300 shall be effected by use of forms prescribed by 15 U.S.C. secs. 1981 et seq. Effective: June 19, 1976 History: Created 1976 Ky. Acts ch. 246, sec. 9, effective June 19, 1976.

KRS 190.350 Unauthorized recyclers prohibited

190.350. Unauthorized recyclers prohibited A person shall not operate or cause to be operated any automobile, vehicle, or machinery recycler, or material recycler establishment or place of business which is situated closer than one thousand (1,000) feet from the right-of-way line of any road unless a license for the operation has been obtained from the commission. The operation of any automobile, vehicle, or machinery recycler, or material recycler establishment or place of business so situated without a license is hereby declared to be a public nuisance. Effective: April 14, 2026 History: Repealed, reenacted, renumbered, and amended 2026 Ky. Acts ch. 182, sec. 18, effective April 14, 2026. -- Amended 1978 Ky. Acts ch. 114, sec. 2, effective June 17, 1978. -- Amended 1974 Ky. Acts ch. 74, Art. IV, se c. 20(1). -- Amended 1966 Ky. Acts ch. 162, sec. 2. -- Created 1962 Ky. Acts ch. 249, sec. 2. Formerly codified as KRS 177.910.

KRS 190.352 Recycler compliance with zoning regulations

190.352. Recycler compliance with zoning regulations An automobile, vehicle, or machinery recycler establishment or place of business, or material recycler establishment or place of business which complies as a conforming use in an industrially zoned area under the applicable zoning ordinances and regulations of any county or city, as determined in the discretion of the commission, shall not be deemed to be in violation of KRS 190.350 to 190.365. Effective: April 14, 2026 History: Repealed, reenacted, renumbered, and amended 2026 Ky. Acts ch. 182, sec. 19, effective April 14, 2026. -- Amended 1978 Ky. Acts ch. 114, sec. 3, effective June 17, 1978. -- Created 1966 Ky. Acts ch. 162, sec. 7. Formerly codified as KRS 177.912. Formerly codified as KRS 177.916.

KRS 190.354 License -- Conditions -- Screening

190.354. License -- Conditions -- Screening (1) The commission shall promulgate administrative regulations in accordance with KRS Chapter 13A to establish that the license required under KRS 190.350 shall be issued when it is shown to the satisfaction of the commission that an automobile, vehicle, or machinery recycler, or material recycler establishment or place of business located closer than one thousand (1,000) feet from the right -of-way line of any road is, so far as deemed practical by the commission, hidden from the view of motorists using the road by an artificial or natural screen, or is hidden by virtue of natural topography. (2) The screening required in this section may be effected by the construction of a fence, or by planting shrubs, trees, or flowering plants, the foliage of which shall, immediately upon planting, provide a sufficient screen or by making use of foliage already in existence. (3) Any automobile, vehicle, or machinery recycler, or material recycler establishment or place of business that cannot as a practical matter be screened shall be required to be removed. Effective: April 14, 2026 History: Repealed, reenacted, renumbered, and amended 2026 Ky. Acts ch. 182, sec. 20, effective April 14, 2026. -- Amended 1988 Ky. Acts ch. 211, sec. 1, effective July 15, 1988. -- Amended 1978 Ky. Acts ch. 114, sec. 4, effective June 17, 1978. -- Amended 1974 Ky. Acts ch. 74, Art. IV, sec. 20(1). -- Amended 1966 Ky. Acts ch. 162, sec. 3. -- Created 1962 Ky. Acts ch. 249, sec. 3. Formerly codified as KRS 177.915.

KRS 190.356 Operator's bond

190.356. Operator's bond Where the commission has reasonable cause to doubt the financial responsibility of the operator or compliance by the operator with KRS 190.350 to 190.365, the commission may require the operator to furnish and maintain a bond in the form, amount, and with the sureties as it shall approve, but not less than one thousand dollars ($1,000) nor more than five thousand dollars ($5,000) conditioned upon the operator complying with KRS 190.350 to 190.365 and the administrative regulations adopted pursuant thereto. Any bond forfeiture is hereby appropriated to the commission. Effective: April 14, 2026 History: Repealed, reenacted, renumbered, and amended 2026 Ky. Acts ch. 182, sec. 21, effective April 14, 2026. -- Created 1962 Ky. Acts ch. 249, sec. 5. Formerly codified as KRS 177.925.

KRS 190.358 Powers of commission

190.358. Powers of commission The commission is hereby empowered to: (1) Exercise general supervision of the administration and enforcement of KRS 190.350 to 190.365; (2) Promulgate administrative regulations in accordance with KRS Chapter 13A pertaining to the operation of automobile, vehicle, or machinery recycler, or material recycler establishments or places of business as the commissioner may deem necessary to the administration and enforcement of KRS 190.350 to 190.365; (3) Promulgate administrative regulations in accordance with KRS Chapter 13A with respect to the sufficiency, type of material or foliage, height, density, and size of screening required by KRS 190.354 to ensure the accomplishment of the purposes of KRS 190.350 to 190.365; (4) Promulgate administrative regulations in accordance with KRS Chapter 13A with respect to the procedural aspects of hearings conducted in accordance with KRS Chapter 13B, the filing of reports and orders, the issuance of licenses and other matters; (5) Issue, after hearing, final orders abating the operation of an automobile, vehicle, or machinery recycler, or material recycler establishments or places of business in violation of the provisions of KRS 190.350 to 190.365, or requiring the adoption of remedial measures including the construction or planting of screens or the utilization of natural screening, extension, modification, or addition to new or existing screens; (6) Issue, continue in effect, revoke, modify, or deny under conditions as the commission may prescribe and subject to a hearing in accordance with KRS Chapter 13B, licenses for the operation of an automobile, vehicle, or machinery recycler, or material recycler establishments or places of business; (7) Make investigations or inspections which may be deemed necessary by the commission to ensure compliance with KRS 190.350 to 190.365, or with any administrative regulations or orders of the commission which may be deemed necessary to enable the commission to administer and enforce the provisions of KRS 190.350 to 190.365; (8) Institute in a court of competent jurisdiction procedures, including injunctive relief, to compel compliance with KRS 190.350 to 190.365 and with the final orders and administrative regulations issued pursuant thereto; (9) Enter at any reasonable time through any officer, assistant, agent, or employee in or upon any public or private property for the purpose of investigation and inspection of conditions relating to the operation of any automobile, vehicle, or machinery recycler, or material recycler establishments or places of business; and (10) Perform any other acts as may be necessary, proper, or desirable in order to carry out effectively the duties and responsibilities of the commission prescribed in KRS 190.350 to 190.365. Effective: April 14, 2026 History: Repealed, reenacted, renumbered, and amended 2026 Ky. Acts ch. 182, sec. 22, effective April 14, 2026. -- Amended 1996 Ky. Acts ch. 318, sec. 64, effective July 15, 1996. -- Amended 1978 Ky. Acts ch. 114, sec. 5, effective June 17, 1978. -- Amended 1974 Ky. Acts ch. 74, Art. IV, sec. 20(1). -- Amended 1966 Ky. Acts ch. 162, sec. 4. -- Created 1962 Ky. Acts ch. 249, sec. 7. Formerly codified as KRS 177.935.

KRS 190.360 Hearings

190.360. Hearings (1) (a) Public hearings shall be conducted in accordance with KRS Chapter 13A by the commission prior to the promulgation of any administrative regulations which pertain to the prevention, abatement, or control of automobile, vehicle, or machinery recycler, or material recycler establishments or places of business. (b) Administrative hearings shall be conducted in accordance with KRS Chapter 13B before: 1. The issuance of any final order prohibiting the performance by any person of any act or acts deemed to be in contravention of any administrative regulations, orders, or licenses of the commission; 2. Denial, revocation, or modification of any license provided for by KRS 190.350 to 190.365; or 3. Any other final determination is made by the commission which directly affects the activities of any person. (2) The commission shall grant an administrative hearing to any person, not previously heard in connection with the issuance of any order or the making of any determination, who may consider himself or herself aggrieved by any order or determination and who shall file with the commission a verified petition alleging that the order or determination is contrary to law or that is injurious to him or her, stating the grounds and reasons therefor and requesting a hearing. The hearing shall be conducted in accordance with KRS Chapter 13B. Effective: April 14, 2026 History: Repealed, reenacted, renumbered, and amended 2026 Ky. Acts ch. 182, sec. 23, effective April 14, 2026. -- Amended 1996 Ky. Acts ch. 318, sec. 65, effective July 15, 1996. -- Amended 1978 Ky. Acts ch. 114, sec. 6, effective June 17, 1978. -- Amended 1974 Ky. Acts ch. 74, Art. IV, sec. 20(1). -- Amended 1966 Ky. Acts ch. 162, sec. 5. -- Created 1962 Ky. Acts ch. 249, sec. 8. Formerly codified as KRS 177.940.

KRS 190.365 Judicial review

190.365. Judicial review Any aggrieved party may appeal the final order of the commission following the hearing to the Circuit Court of the county in which the alleged offense occurred in accordance with KRS Chapter 13B. Effective: April 14, 2026 History: Repealed, reenacted, renumbered, and amended 2026 Ky. Acts ch. 182, sec. 24, effective April 14, 2026. -- Amended 1996 Ky. Acts ch. 318, sec. 66, effective July 15, 1996. -- Amended 1968 Ky. Acts ch. 152, sec. 120. -- Amended 1966 Ky. Acts ch. 162, sec. 6. -- Created 1962 Ky. Acts ch. 249, sec. 10. Formerly codified as KRS 177.950.

KRS 190.0451 New motor vehicle dealer license -- Prohibition against licensing new dealer after prior dealer's franchise has been revoked -- Exceptions -- Ten year duration of prohibition

190.0451. New motor vehicle dealer license -- Prohibition against licensing new dealer after prior dealer's franchise has been revoked -- Exceptions -- Ten year duration of prohibition (1) Except as provided in subsections (2) and (3) of this section, if a dealer licensed under this chapter has its franchise revoked by the manufacturer on or after January 1, 2009, for grounds other than those provided in KRS Chapter 190, the commission shall not grant a new motor vehicle dealer license establishing a new motor vehicle dealership, or relocating an existing new motor vehicle dealership, within a ten (10) mile radius of a location at which a former licensed new motor vehicle dealer for the same line make of new motor vehicles had its franchise revoked. (2) If the manufacturer can show proof that the franchise was offered to the original franchisee at substantially similar terms as offered to other potential buyers, and the original franchisee refused the offer, then the prohibition in subsection (1) of this section shall not apply and the commission may grant a new motor vehicle dealer license within the ten (10) mile radius described in subsection (1) of this section. (3) The prohibition against granting a new motor vehicle dealer license outlined in subsection (1) of this section shall remain in effect for ten (10) years from the date of revocation of the original franchise by the manufacturer. Effective: July 15, 2010 History: Created 2010 Ky. Acts ch. 84, sec. 1, effective July 15, 2010.

KRS 190.0461 Recall of vehicle -- Duty of manufacturer or distributor

190.0461. Recall of vehicle -- Duty of manufacturer or distributor In the event a manufacturer or distributor recalls any of its products, the manufacturer or distributor must include within the written notice thereof to vehicle owners and dealers the expected date by which necessary parts and equipment will be available for the correction of the defects necessitating the recall. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 182, sec. 3, effective June 17, 1978.

KRS 190.0462 Manufacturer's schedule of compensation to be paid to dealers for warranty service and repairs

190.0462. Manufacturer's schedule of compensation to be paid to dealers for warranty service and repairs Included within the application for a license to engage in business within this state as a manufacturer of motor vehicles must be a schedule specifying the compensation to be paid the manufacturer's dealers for parts, work and service in connection with warranty service and repairs which shall include compensation for diagnostic work, as well as repair service and labor. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 182, sec. 4, effective June 17, 1978.

KRS 190.0491 "Delivery" defined -- Dealer's duties concerning vehicle damaged in transit -- Reversion of ownership -- Certification to consumer -- Failure of manufacturer to indemnify dealer

190.0491. "Delivery" defined -- Dealer's duties concerning vehicle damaged in transit -- Reversion of ownership -- Certification to consumer -- Failure of manufacturer to indemnify dealer (1) "Delivery" of a motor vehicle to a dealer by a manufacturer or distributor for the purposes of this section shall be accomplished by the: (a) Tender of the motor vehicle and any documents necessary to enable the dealer to obtain title and possession of the motor vehicle at the dealer's place of business or designated place of delivery, and (b) The giving of notice of the tender of the motor vehicle and documents to the dealer. (2) Whenever a motor vehicle is damaged while in transit when the carrier or the means of transportation is designated by the manufacturer or distributor, or whenever a motor vehicle is otherwise damaged prior to delivery to the dealer, the dealer must: (a) Notify the manufacturer or distributor of the damage within three (3) working days of the occurrence of the delivery of the motor vehicle as defined in subsection (1) of this section; and (b) Request from the manufacturer or distributor authorization to repair the damages sustained or to replace the parts or accessories damaged. Notification of damage by the dealer must be by certified mail, with a notice of delivery requested to be returned to the dealer, and shall be presumed to have occurred upon deposit of the notice with the United States Postal Service. (3) In the event the manufacturer or distributor refuses or fails to authorize repair or replacement of the damage within three (3) working days of notification of damage by the dealer, ownership of the motor vehicle shall revert to the manufacturer or distributor, and the dealer shall incur no obligations, financial or otherwise, for the damage to the motor vehicle. In determining when the notification of the damage by the dealer to the manufacturer or distributor occurs, the date the notice is received by the manufacturer or distributor by the United States Postal Service indicated on the notice of delivery returned to the dealer shall be controlling. (4) In computing the lapse of three (3) working days under this section, the day of the occurrence of delivery of the motor vehicle to the dealer by the manufacturer or distributor, as defined in subsection (1) of this section, or the day of notification of the damage to the manufacturer or distributor by the dealer, as described in subsection (3) of this section, shall not be included, but the last working day of the period so computed shall be included. (5) Prior to the sale of any motor vehicle damaged prior to delivery to the dealer as described in subsection (2) of this section, excluding damage to glass, tires, and bumpers when replaced by identical manufacturer's original equipment and any damage not exceeding six percent (6%) of the sticker price of the vehicle, the occurrence and extent of the damage must be disclosed by the dealer to the consumer, and upon repair of the damage sustained, or replacement of the parts or accessories damaged, the manufacturer and/or dealer, must certify to the consumer that the motor vehicle has been repaired or remanufactured to the manufacturer's standards; if the dealer makes the certification he shall be indemnified by the manufacturer. Upon this certification, liability for any concealed damages then remaining with the motor vehicle shall lie with the manufacturer. (6) Whenever a motor vehicle is damaged resulting in repairs, for items other than wheels, tires, or glass, that exceed two thousand dollars ($2,000) after delivery to the dealer by the manufacturer or distributor, as defined in subsection (1) of this section, but before sale by the dealer to the consumer, the occurrence and extent of the damage must be disclosed by the dealer to the consumer prior to a sale, and upon repair of the damage sustained, or replacement of parts or accessories damaged, the dealer must certify to the consumer that this motor vehicle has been repaired or remanufactured according to the manufacturer's standards. Upon this certification, liability for any concealed damages then remaining with the motor vehicle shall lie with the dealer. (7) Notwithstanding the terms of any franchise agreement, it shall be a violation of this section for any new motor vehicle manufacturer to fail to indemnify and hold harmless its franchised dealers against any judgment or settlement agreed to in writing by the manufacturer for damages, including, but not limited to, court costs and reasonable attorneys' fees of the new motor vehicle dealer, arising out of complaints, claims, or lawsuits including, but not limited to, strict liability, negligence, misrepresentation, warranty (express or implied), or rescission of the sale as is defined in KRS 355.2-608, to the extent that the judgment or settlement agreed to in writing by the manufacturer relates to the alleged defective or negligent manufacture, assembly, or design of new motor vehicles, parts, or accessories or other functions by the manufacturer, beyond the control of the dealer. Effective:June 29, 2017 History: Amended 2017 Ky. Acts ch. 139, sec. 2, effective June 29, 2017. -- Amended 2000 Ky. Acts ch. 23, sec. 5, effective February 22, 2000. -- Amended 1996 Ky. Acts ch. 111, sec. 8, effective July 15, 1996. -- Amended 1982 Ky. Acts ch. 373, sec. 12, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 114, sec. 35, effective July 15, 1980. -- Created 1978 Ky. Acts ch. 182, sec. 1, effective June 17, 1978.

KRS 190.990 Penalties

190.990. Penalties (1) Except as provided in subsection (5) of this section, any person who violates or causes, aids, or abets any violation of any provision of KRS 190.010 to 190.080 and KRS Chapter 190A, as such provisions apply, respectively, to new motor vehicle dealers, new recreational vehicle dealers, manufacturers, distributors, factory branches, or factory representatives, or any order, rule or administrative regulation lawfully issued pursuant to authority granted by KRS 190.010 to 190.080 shall be fined not less than twenty-five dollars ($25) nor more than five hundred dollars ($500), or imprisoned for not more than thirty (30) days, or both. Any person who violates KRS 190.040(1)(l), (m), or (n) may also be subject to a suspension or revocation sentence of not more than a year effective only in the territory formerly served by the unfairly canceled dealer, except that in a metropolitan area serviced by several dealers handling the same motor vehicle or recreational vehicle, the suspension or revocation order shall not be applicable to the remaining dealers. (2) Any person who willfully and intentionally violates any provision of KRS 190.090 to 190.140 shall be guilty of a misdemeanor and upon conviction shall be fined not more than five hundred dollars ($500). (3) A willful violation of KRS 190.100 or 190.110 by any person shall bar his or her recovery of any finance charge, delinquency, or collection charge on the retail installment contract involved. (4) Any person who willfully violates KRS 190.270 to 190.320 shall be subject to a penalty of five thousand dollars ($5,000) per violation, which may be recovered on behalf of the Commonwealth by the Attorney General. (5) Any person who willfully and fraudulently gives a false statement as to the total and actual consideration paid for a motor vehicle under KRS 138.450 shall be guilty of a Class D felony and shall be fined not less than two thousand dollars ($2,000) per offense. (6) Any licensee who violates KRS 186A.100, 186A.105, 186A.110, or 186A.990(4) may be subject to the following penalties levied by the commission: (a) For the first offense, a warning or a fine of up to one thousand dollars ($1,000) per violation; (b) For the second offense within a two (2) year period, a fine of up to two thousand dollars ($2,000) per violation and a suspension of the licensee's license for up to one (1) year; and (c) For the third offense within a two (2) year period, a fine of up to two thousand dollars ($2,000) per violation and a revocation of the licensee's license. (7) In addition to any other penalty provided in KRS 190.350 to 190.365, any person who violates any provision of KRS 190.350 to 190.365 or any order issued thereunder shall be guilty of a misdemeanor and upon conviction shall be fined not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000). Each day of violation shall constitute a separate offense. Effective: April 14, 2026 History: Amended 2026 Ky. Acts ch. 182, sec. 25, effective April 14, 2026. -- Amended 2025 Ky. Acts ch. 70, sec. 5, effective June 27, 2025. -- Amended 2014 Ky. Acts ch. 27, sec. 25, effective January 1, 2015. -- Amended 1998 Ky. Acts ch. 600, sec. 8, effective April 14, 1998. -- Amended 1984 Ky. Acts ch. 357, sec. 14, effective July 13, 1984. -- Amended 1976 Ky. Acts ch. 246, sec. 10, effective June 19, 1976. -- Amended 1968 Ky. Acts ch. 152, sec. 125. -- Created 1956 Ky. Acts ch. 105, sec. 6; and ch. 161, sec. 9.

KRS 190.991 Penalty

190.991. Penalty Any person who violates any of the provisions of KRS 186.695 shall be guilty of a misdemeanor, and upon conviction thereof shall be sentenced to pay a fine not exceeding five hundred dollars ($500) or be imprisoned for a term not to exceed six (6) months, or both. Effective: June 21, 1974 History: Amended 1974 Ky. Acts ch. 76, sec. 14, effective June 21, 1974. -- Created 1966 Ky. Acts ch. 120, sec. 9.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=38045Fetched: 10/20/2026