Title 605 | Chapter 001 | Regulation 051


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TRANSPORTATION CABINET
Motor Vehicle Commission
(New Administrative Regulation)

605 KAR 1:051.Dealer and salesman.

Section 1.

 

(1)

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

(2)

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

(3)

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

(4)

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

Section 2.

In the event a salesman changes his place of employment to another dealership, he shall return his license to the commission.

Section 3.

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

Section 4.

 

(1)

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

(2)

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

(3)

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

Section 5.

The following individuals shall be required to obtain a salesman's license: Each natural person holding a motor vehicle dealer license. Each general partner actively involved in the day-to-day operation of a general or limited partnership holding a motor vehicle dealer license; The president, chief executive officer, chief operating officer, or equivalent of a corporation holding a motor vehicle dealer license; and Each manager, or, if member-managed, each member actively involved in the day-to-day operation of a limited liability company holding a motor vehicle dealer license. All motor vehicle dealers shall have at least one (1) salesperson per licensed location.

Section 6.

If any of the individuals in Section 5(1-4) are physically located and conduct business at more than one location, the individual shall procure a salesman's license for each location. Otherwise, the individual shall procure a license for the location in Kentucky where he is located or a primary location in Kentucky if he is located outside the state.

Section 7.

Incorporation by Reference. Dealer on-line account, salesman license application available at Ky.gov Login.

DOUG DOTSON, Chairman
APPROVED BY AGENCY: September 15, 2021
FILED WITH LRC: September 20, 2021 at 12:06 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on December 21, 2021 at 9 a.m. local time at the Motor Vehicle Commission, 200 Mero Street, Frankfort, Kentucky 40601. In the event that in-person meetings are not available, this hearing will be done by video teleconference. Members of the public wishing to attend may utilize the following link: https://us02web.zoom.us/j/82520305441, or by telephone at 19292056099, your meeting I.D. to join in is 825 2030 5441. Individuals interested in being heard at this hearing shall notify this agency in writing by five (5) workdays 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 PM on December 31, 2021. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person below:
CONTACT PERSON: Suzanne Baskett, Executive Staff Advisor, Kentucky Motor Vehicle Commission, 200 Mero Street, Frankfort, Kentucky 40601, phone (502) 573-1000, fax (502) 227-8082, email Suzanne.Baskett@ky.gov.

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Suzanne Baskett
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation sets forth the requirements for licensing of motor vehicle salesmen.
(b) The necessity of this administrative regulation:
KRS 190.030 requires that a salesman’s license shall indicate for whom the salesman works and to be displayed upon request.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This regulation sets forth the requirements to be met by licensees with regard to licensing of salesmen.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This regulation sets forth the requirements to be met by licensees with regard to licensing of salesmen.
(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:
(b) The necessity of the amendment to this administrative regulation:
(c) How the amendment conforms to the content of the authorizing statutes:
(d) How the amendment will assist in the effective administration of the statutes:
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
This regulation will affect all licensees that employ salesmen. The number of such entities is unknown.
(4) Provide an analysis of how the entities identified in question (3) 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 (3) will have to take to comply with this administrative regulation or amendment:
This regulation establishes the application process for salesman’s licenses.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
The cost to each of the identified entities cannot be reasonably ascertained as the number and turnover of sales staff varies.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Entities that comply with the regulation will be allowed to employ salesmen.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
No known costs.
(b) On a continuing basis:
There are on-going costs related to administration of the licensing of dealers and enforcement of the regulations. This cost will vary depending on the issues related to each individual dealer.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
Application fees.
(7) 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:
KRS 190.030 and 605 KAR 1:215 establish the associated fees and the Commission does not anticipate a need for any additional or increased fees or funding related to administration of this regulation.
(8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees:
It does not establish or increase any fees.
(9) TIERING: Is tiering applied?
No, tiering is not applied because all motor vehicle dealers affected by this regulation are treated the same.

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
(1) What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
Motor Vehicle Commission.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 190.030, 190.073.
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
Revenue to be generated is unknown because the commission cannot determine how many businesses will apply for the applicable licenses.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
Revenue to be generated is unknown because the commission cannot determine how many businesses will renew for the applicable licenses.
(c) How much will it cost to administer this program for the first year?
The cost of administering this program in the first year is unknown as it will depend upon the number of applicants and the issues which arise with regard to applicants and licensees.
(d) How much will it cost to administer this program for subsequent years?
The cost of administering this program in the subsequent years is unknown as it will depend upon the number of applicants and the issues which arise with regard to applicants and licensees.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Expenditures (+/-):
Other Explanation:

7-Year Expiration: 2/16/2029

Last Updated: 2/17/2022


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