Title 040 | Chapter 012 | Regulation 430REG
PROPOSED
This document is not yet current.
OFFICE OF ATTORNEY GENERAL
Kentucky Office of Regulatory Relief
(New Administrative Regulation)
40 KAR 12:430.Buying Clubs and Vacation Clubs.
Section 1.
Buying and Vacation Club Seller Surety Bond Submission.(1)
Before selling club memberships to Commonwealth of Kentucky residents, a buying club seller or a vacation club seller that has a membership fee exceeding thirty-five (35) dollars shall submit a surety bond using the "Buying/Vacation Club Seller Surety Bond submission portal" available at https://www.ag.ky.gov/Resources/Pages/forms.aspx.(2)
When completing the online bond submission portal, a buying club seller or a vacation club seller shall submit:(a)
The seller's certificate of existence, authorization certificate from the Kentucky Secretary of State's office, or other evidence of the applicant's authority to transact business in Kentucky; and,(b)
A completed Buying and Vacation Club Seller Surety Bond, Form BV-1, or other completed surety bond complying with KRS 367.403.Section 2.
Buying and Vacation Club Seller Exemption Application.(1)
A nonprofit organization may submit an online application to be exempted from the requirements of KRS 367.397 to 367.403 by using the "Buying and Vacation Club Seller Application portal" available at https://www.ag.ky.gov/Resources/Pages/forms.aspx.(2)
When submitting the online application, an applicant shall submit the applicant's certificate of existence, authorization certificate from the Kentucky Secretary of State's office, or other evidence of the applicant's authority to transact business in Kentucky.(3)
Applicants shall submit additional information or documents for their application within thirty (30) days of any request by the Attorney General. The Attorney General may deny any application if an Applicant fails to timely complete the application by not providing requested missing information or required documents.Section 3.
Record Requests. A buying club seller, vacation club seller or exempted non-profit organization shall make requested records, documents, and information readily available to the Attorney General for inspection and copying upon request.Section 4.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"Buying and Vacation Club Seller Surety Bond", Form BV-1, Dec. 2025;(b)
"Buying/Vacation Club Seller Surety Bond submission portal", Dec. 2025; and(c)
"Buying and Vacation Club Seller Exemption Application portal", Dec. 2025;(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Office of the Attorney General Capital Complex East, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601, Monday through Friday, 8:00 a.m. to 4:30 p.m. This material is also available on the Attorney General's website, https://ag.ky.gov/Pages/default.aspx.STEPHEN B. HUMPHRESS, Executive Director
RUSSELL COLEMAN, Attorney General
APPROVED BY AGENCY: December 11, 2025
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this proposed administrative regulation shall be held on February 24, 2026, at 10:00 a.m. Eastern Time at the Office of Administrative Hearings, Conference Room B, 105 Sea Hero Road, Suite 2, Conference Room B, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this Office in writing at least five (5) working days prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on February 28, 2026. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Stephen B. Humphress, Executive Director, Kentucky Office of Regulatory Relief, Kentucky Office of Attorney General, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601, phone: 502-696-5408, fax: (502) 573-8317, email: steve.humphress@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Stephen B. Humphress
Subject Headings:
Attorney General; Occupations and Professions; and Bonds
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes an online surety bond submission process for buying club sellers and vacation club sellers, establishes an online application process for nonprofit organizations seeking exemption status, and establishes a surety bond form complying with KRS 367.403 for use by buying club sellers and vacation club sellers.
(b) The necessity of this administrative regulation:
This regulation is necessary because it allows the Office of Attorney General ("Attorney General") to perform its statutory mandates. This regulation is needed so that buying club sellers, vacation club sellers, and nonprofit organizations can comply with statutory requirements. This regulation is needed for compliance with KRS 13A.100(2).
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 15.180 directs the Attorney General to promulgate administrative regulations that will facilitate the performance of duties vested in the Attorney General and the Department of Law. KRS 367.150(4) requires the Department of Law to study the operation of all laws, rules, administrative regulations, orders, and state policies affecting consumers and to recommend administrative regulations in the consumers' interest. KRS 367.403 requires buying club sellers and vacation club sellers to submit bonds to the Attorney General. KRS 367.407 requires a non-profit organization to file an application with the Attorney General to seek an exemption from application of KRS 367.395 to 367.407.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation establishes an online surety bond submission process for buying club sellers and vacation club sellers to submit required surety bonds to the Attorney General. This administrative regulation establishes a surety bond complying with KRS 367.403 that buying club sellers and vacation club sellers may use to file required surety bonds. This administrative regulation establishes an online exemption application for non-profit organizations to seek exemption from application of KRS 367.395 to 367.407.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
Not Applicable
(b) The necessity of the amendment to this administrative regulation:
Not Applicable
(c) How the amendment conforms to the content of the authorizing statutes:
Not Applicable
(d) How the amendment will assist in the effective administration of the statutes:
Not Applicable
(3) Does this administrative regulation or amendment implement legislation from the previous five years?
No
(4) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
The regulation may affect six (6) buying club sellers and two (4) vacation club sellers that have filed bonds. The regulation will affect an unknown number of buying club sellers and vacation club sellers who may submit bonds in the future. The regulation will affect an unknown number of nonprofit organizations who may submit exemption applications. The regulation will affect the Attorney General.
(5) Provide an analysis of how the entities identified in question (4) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (4) will have to take to comply with this administrative regulation or amendment:
New buying club sellers and vacation club sellers will be required to use the online surety bond submission processes. Non-profit organizations that seek exemption from application of KRS 367.395 to KRS 367.407 will be required to use the online application process. The Attorney General will review the completed online surety bond submissions and exemption application submissions for compliance with law.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (4):
New buying club sellers and vacation club sellers will bear no additional costs as they will be able submit surety bonds online at no cost. Non-profit organizations that seek exemption from application of KRS 367.395 to 367.407 will bear no additional costs as they will be able to apply online at no cost. The Attorney General will incur no additional costs to process the online surety bond submissions and exemption application submissions.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (4):
The regulation will provide the method by which buying club sellers, vacation club sellers, and nonprofit organizations can comply with statutory requirements. It is intended that the online processes will make it easier for buying club sellers, vacation club sellers, and nonprofit organizations to comply with statutory requirements. In addition, it is intended that the regulation amendments will result in saved administrative resources and time and provide quicker processing time by Attorney General staff through online processes.
(6) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
There are no costs to implement this administrative regulation.
(b) On a continuing basis:
There are no continuing costs to implement this administrative regulation.
(7) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation or this amendment:
There are no additional costs associated with implementing this administrative regulation.
(8) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There is no anticipated increase in fees or funding necessary to implement this administrative regulation.
(9) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation does not directly or indirectly increase any fees.
(10) TIERING: Is tiering applied?
No. This administrative regulation applies equally to all buying club sellers and vacation club sellers.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 15.180, 367.150(4), 367.403, and 367.407
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
1960 Ky. Acts ch. 68, Art. II, sec. 1, effective March 17, 1960; 1972 Ky. Acts ch. 4, sec. 4.
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
The Office of Attorney General, Kentucky Office of Regulatory Relief ("Attorney General") is the promulgating agency. The regulation does not affect any other state agencies.
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
There are no expenditures to administer this administrative regulation for the first year.
For subsequent years:
There will be no expenditures to administer the administrative regulation in subsequent years.
2. Revenues:
For the first year:
The administrative regulation will generate no revenues to the Attorney General in the first year.
For subsequent years:
The administrative regulation will generate no revenues to the Attorney General in subsequent years.
3. Cost Savings:
For the first year:
In the first year, the Attorney General will have cost savings from efficient and quicker processing of surety bond submissions and exemption applications which are difficult to estimate at this time but estimated to be de minimis.
For subsequent years:
In subsequent years, the Attorney General will have cost savings from efficient and quicker processing of surety bond submissions and exemption applications which are difficult to estimate at this time but estimated to be de minimis.
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
The administrative regulation will not affect any local entities.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
This administrative regulation will not cause expenditures by local entities for the first year.
For subsequent years:
This administrative regulation will not cause expenditures by local entities in subsequent years.
2. Revenues:
For the first year:
Local entities will receive no revenues from this administrative regulation for the first year.
For subsequent years:
Local entities will receive no revenues from this administrative regulation in subsequent years.
3. Cost Savings:
For the first year:
Local entities will receive no cost savings from this administrative regulation for the first year.
For subsequent years:
Local entities will receive no cost savings from this administrative regulation for subsequent years.
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
Buying and vacation club sellers will be affected by this administrative regulation. Nonprofit organizations seeking exemption status will be affected by this administrative regulation.
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
This administrative regulation will not cause buying club sellers, vacation club sellers and non-profit organizations to have any additional expenditures for the first year.
For subsequent years:
This administrative regulation will not cause buying club sellers, vacation club sellers and non-profit organizations to have any additional expenditures for subsequent years.
2. Revenues:
For the first year:
Buying and vacation club sellers and non-profit organizations will not receive any revenues directly from this administrative regulation for the first year.
For subsequent years:
Buying and vacation club sellers and non-profit organizations will not receive any revenues directly from this administrative regulation for subsequent years.
3. Cost Savings:
For the first year:
For the first year, buying and vacation club sellers will receive cost savings from simple online surety bond submissions. Non-profit organizations will receive cost savings from quicker processing of online exemption application submissions. These cost savings are difficult to estimate at this time but estimated to be de minimis.
For subsequent years:
For subsequent years, buying and vacation club sellers will receive cost savings from simple online surety bond submissions. Non-profit organizations will receive cost savings from simple online exemption application submissions and quicker processing. These cost savings are difficult to estimate at this time but estimated to be de minimis.
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
This administrative regulation will have no fiscal impact. The new regulation merely creates an online bond submission process for buying club sellers and vacation club sellers, creates an online exemption application process for nonprofit organizations, and establishes a surety bond form for use by buying and vacation club sellers. The regulation does not affect any other governmental agencies or local governments. The regulation does not establish any fees. For these reasons, the regulation is not expected to have any significant fiscal impact.
(b) Methodology and resources used to reach this conclusion:
The Attorney General used a quantitative methodology analysis based on history of administrative agencies which license or register businesses in a specific subject area and the resulting facts from this regulation. The Attorney General used staff resources in determining the fiscal impact.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
There is not an expected "major economic impact" from this regulation for the Attorney General, any local entities, or affected regulated entities.
(b) The methodology and resources used to reach this conclusion:
The Attorney General used a quantitative methodology analysis based on history of administrative agencies which license or register businesses in a specific subject area and resulting facts from this regulation. The Attorney General used staff resources in reaching the conclusion that no overall negative or adverse major economic impact results from this administrative regulation.
OFFICE OF ATTORNEY GENERAL
Kentucky Office of Regulatory Relief
(New Administrative Regulation)
40 KAR 12:430.Buying Clubs and Vacation Clubs.
Section 1.
Buying and Vacation Club Seller Surety Bond Submission.(1)
Before selling club memberships to Commonwealth of Kentucky residents, a buying club seller or a vacation club seller that has a membership fee exceeding thirty-five (35) dollars shall submit a surety bond using the "Buying/Vacation Club Seller Surety Bond submission portal" available at https://www.ag.ky.gov/Resources/Pages/forms.aspx.(2)
When completing the online bond submission portal, a buying club seller or a vacation club seller shall submit:(a)
The seller's certificate of existence, authorization certificate from the Kentucky Secretary of State's office, or other evidence of the applicant's authority to transact business in Kentucky; and,(b)
A completed Buying and Vacation Club Seller Surety Bond, Form BV-1, or other completed surety bond complying with KRS 367.403.Section 2.
Buying and Vacation Club Seller Exemption Application.(1)
A nonprofit organization may submit an online application to be exempted from the requirements of KRS 367.397 to 367.403 by using the "Buying and Vacation Club Seller Application portal" available at https://www.ag.ky.gov/Resources/Pages/forms.aspx.(2)
When submitting the online application, an applicant shall submit the applicant's certificate of existence, authorization certificate from the Kentucky Secretary of State's office, or other evidence of the applicant's authority to transact business in Kentucky.(3)
Applicants shall submit additional information or documents for their application within thirty (30) days of any request by the Attorney General. The Attorney General may deny any application if an Applicant fails to timely complete the application by not providing requested missing information or required documents.Section 3.
Record Requests. A buying club seller, vacation club seller or exempted non-profit organization shall make requested records, documents, and information readily available to the Attorney General for inspection and copying upon request.Section 4.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"Buying and Vacation Club Seller Surety Bond", Form BV-1, Dec. 2025;(b)
"Buying/Vacation Club Seller Surety Bond submission portal", Dec. 2025; and(c)
"Buying and Vacation Club Seller Exemption Application portal", Dec. 2025;(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Office of the Attorney General Capital Complex East, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601, Monday through Friday, 8:00 a.m. to 4:30 p.m. This material is also available on the Attorney General's website, https://ag.ky.gov/Pages/default.aspx.STEPHEN B. HUMPHRESS, Executive Director
RUSSELL COLEMAN, Attorney General
APPROVED BY AGENCY: December 11, 2025
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this proposed administrative regulation shall be held on February 24, 2026, at 10:00 a.m. Eastern Time at the Office of Administrative Hearings, Conference Room B, 105 Sea Hero Road, Suite 2, Conference Room B, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this Office in writing at least five (5) working days prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on February 28, 2026. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Stephen B. Humphress, Executive Director, Kentucky Office of Regulatory Relief, Kentucky Office of Attorney General, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601, phone: 502-696-5408, fax: (502) 573-8317, email: steve.humphress@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Stephen B. Humphress
Subject Headings:
Attorney General; Occupations and Professions; and Bonds
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes an online surety bond submission process for buying club sellers and vacation club sellers, establishes an online application process for nonprofit organizations seeking exemption status, and establishes a surety bond form complying with KRS 367.403 for use by buying club sellers and vacation club sellers.
(b) The necessity of this administrative regulation:
This regulation is necessary because it allows the Office of Attorney General ("Attorney General") to perform its statutory mandates. This regulation is needed so that buying club sellers, vacation club sellers, and nonprofit organizations can comply with statutory requirements. This regulation is needed for compliance with KRS 13A.100(2).
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 15.180 directs the Attorney General to promulgate administrative regulations that will facilitate the performance of duties vested in the Attorney General and the Department of Law. KRS 367.150(4) requires the Department of Law to study the operation of all laws, rules, administrative regulations, orders, and state policies affecting consumers and to recommend administrative regulations in the consumers' interest. KRS 367.403 requires buying club sellers and vacation club sellers to submit bonds to the Attorney General. KRS 367.407 requires a non-profit organization to file an application with the Attorney General to seek an exemption from application of KRS 367.395 to 367.407.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation establishes an online surety bond submission process for buying club sellers and vacation club sellers to submit required surety bonds to the Attorney General. This administrative regulation establishes a surety bond complying with KRS 367.403 that buying club sellers and vacation club sellers may use to file required surety bonds. This administrative regulation establishes an online exemption application for non-profit organizations to seek exemption from application of KRS 367.395 to 367.407.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
Not Applicable
(b) The necessity of the amendment to this administrative regulation:
Not Applicable
(c) How the amendment conforms to the content of the authorizing statutes:
Not Applicable
(d) How the amendment will assist in the effective administration of the statutes:
Not Applicable
(3) Does this administrative regulation or amendment implement legislation from the previous five years?
No
(4) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
The regulation may affect six (6) buying club sellers and two (4) vacation club sellers that have filed bonds. The regulation will affect an unknown number of buying club sellers and vacation club sellers who may submit bonds in the future. The regulation will affect an unknown number of nonprofit organizations who may submit exemption applications. The regulation will affect the Attorney General.
(5) Provide an analysis of how the entities identified in question (4) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (4) will have to take to comply with this administrative regulation or amendment:
New buying club sellers and vacation club sellers will be required to use the online surety bond submission processes. Non-profit organizations that seek exemption from application of KRS 367.395 to KRS 367.407 will be required to use the online application process. The Attorney General will review the completed online surety bond submissions and exemption application submissions for compliance with law.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (4):
New buying club sellers and vacation club sellers will bear no additional costs as they will be able submit surety bonds online at no cost. Non-profit organizations that seek exemption from application of KRS 367.395 to 367.407 will bear no additional costs as they will be able to apply online at no cost. The Attorney General will incur no additional costs to process the online surety bond submissions and exemption application submissions.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (4):
The regulation will provide the method by which buying club sellers, vacation club sellers, and nonprofit organizations can comply with statutory requirements. It is intended that the online processes will make it easier for buying club sellers, vacation club sellers, and nonprofit organizations to comply with statutory requirements. In addition, it is intended that the regulation amendments will result in saved administrative resources and time and provide quicker processing time by Attorney General staff through online processes.
(6) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
There are no costs to implement this administrative regulation.
(b) On a continuing basis:
There are no continuing costs to implement this administrative regulation.
(7) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation or this amendment:
There are no additional costs associated with implementing this administrative regulation.
(8) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There is no anticipated increase in fees or funding necessary to implement this administrative regulation.
(9) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation does not directly or indirectly increase any fees.
(10) TIERING: Is tiering applied?
No. This administrative regulation applies equally to all buying club sellers and vacation club sellers.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 15.180, 367.150(4), 367.403, and 367.407
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
1960 Ky. Acts ch. 68, Art. II, sec. 1, effective March 17, 1960; 1972 Ky. Acts ch. 4, sec. 4.
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
The Office of Attorney General, Kentucky Office of Regulatory Relief ("Attorney General") is the promulgating agency. The regulation does not affect any other state agencies.
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
There are no expenditures to administer this administrative regulation for the first year.
For subsequent years:
There will be no expenditures to administer the administrative regulation in subsequent years.
2. Revenues:
For the first year:
The administrative regulation will generate no revenues to the Attorney General in the first year.
For subsequent years:
The administrative regulation will generate no revenues to the Attorney General in subsequent years.
3. Cost Savings:
For the first year:
In the first year, the Attorney General will have cost savings from efficient and quicker processing of surety bond submissions and exemption applications which are difficult to estimate at this time but estimated to be de minimis.
For subsequent years:
In subsequent years, the Attorney General will have cost savings from efficient and quicker processing of surety bond submissions and exemption applications which are difficult to estimate at this time but estimated to be de minimis.
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
The administrative regulation will not affect any local entities.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
This administrative regulation will not cause expenditures by local entities for the first year.
For subsequent years:
This administrative regulation will not cause expenditures by local entities in subsequent years.
2. Revenues:
For the first year:
Local entities will receive no revenues from this administrative regulation for the first year.
For subsequent years:
Local entities will receive no revenues from this administrative regulation in subsequent years.
3. Cost Savings:
For the first year:
Local entities will receive no cost savings from this administrative regulation for the first year.
For subsequent years:
Local entities will receive no cost savings from this administrative regulation for subsequent years.
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
Buying and vacation club sellers will be affected by this administrative regulation. Nonprofit organizations seeking exemption status will be affected by this administrative regulation.
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
This administrative regulation will not cause buying club sellers, vacation club sellers and non-profit organizations to have any additional expenditures for the first year.
For subsequent years:
This administrative regulation will not cause buying club sellers, vacation club sellers and non-profit organizations to have any additional expenditures for subsequent years.
2. Revenues:
For the first year:
Buying and vacation club sellers and non-profit organizations will not receive any revenues directly from this administrative regulation for the first year.
For subsequent years:
Buying and vacation club sellers and non-profit organizations will not receive any revenues directly from this administrative regulation for subsequent years.
3. Cost Savings:
For the first year:
For the first year, buying and vacation club sellers will receive cost savings from simple online surety bond submissions. Non-profit organizations will receive cost savings from quicker processing of online exemption application submissions. These cost savings are difficult to estimate at this time but estimated to be de minimis.
For subsequent years:
For subsequent years, buying and vacation club sellers will receive cost savings from simple online surety bond submissions. Non-profit organizations will receive cost savings from simple online exemption application submissions and quicker processing. These cost savings are difficult to estimate at this time but estimated to be de minimis.
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
This administrative regulation will have no fiscal impact. The new regulation merely creates an online bond submission process for buying club sellers and vacation club sellers, creates an online exemption application process for nonprofit organizations, and establishes a surety bond form for use by buying and vacation club sellers. The regulation does not affect any other governmental agencies or local governments. The regulation does not establish any fees. For these reasons, the regulation is not expected to have any significant fiscal impact.
(b) Methodology and resources used to reach this conclusion:
The Attorney General used a quantitative methodology analysis based on history of administrative agencies which license or register businesses in a specific subject area and the resulting facts from this regulation. The Attorney General used staff resources in determining the fiscal impact.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
There is not an expected "major economic impact" from this regulation for the Attorney General, any local entities, or affected regulated entities.
(b) The methodology and resources used to reach this conclusion:
The Attorney General used a quantitative methodology analysis based on history of administrative agencies which license or register businesses in a specific subject area and resulting facts from this regulation. The Attorney General used staff resources in reaching the conclusion that no overall negative or adverse major economic impact results from this administrative regulation.