Title 605 | Chapter 001 | Regulation 091
SUPERSEDED
This document is no longer current.
TRANSPORTATION CABINET
Motor Vehicle Commission
(New Administrative Regulation)
605 KAR 1:091.Motor vehicle dealership names.
Section 1.
The trade name of a licensee shall incorporate the words used cars, auto sales, auto mart, or other similar wording clearly identifiable as a motor vehicle dealer.(1)
A licensee, other than a franchised new motor vehicle dealer, shall not use the name of any make of motor vehicle as a part of the dealership business name.(2)
The adoption of the name of a make of motor vehicle in a trade name or advertising in this manner shall constitute false or misleading advertising within the meaning of KRS 190.040 and shall be considered grounds for the denial, suspension, or revocation of a license.Section 2.
The commission shall deny an Application for Motor Vehicle Dealer License, TC 98-1, incorporated by reference in 605 KAR 1:030, if the name or proposed trade name of the licensee is the same or so similar to the name or trade name of an existing, unrelated licensee that the proposed name would confuse or otherwise mislead the public into believing that the two (2) licensees are the same or related.(1)
If no other grounds are cited for the denial of the Application for Motor Vehicle Dealer License, TC 98-1, incorporated by reference in 605 KAR 1:030, the applicant may reapply.(2)
Reapplication with a new trade name shall be submitted within ten (10) days of denial without remitting an additional application fee.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 motor vehicle dealership names.
(b) The necessity of this administrative regulation:
KRS 190.040(1)(i) authorizes a license to be denied, suspended, or revoked for false or misleading advertising. This administrative regulation establishes provisions against false or misleading advertising that prohibit the use of the name of a make of motor vehicle in the business name of a used motor vehicle dealer and the use of a dealership name that is so similar to the name of an existing dealership that it would confuse or mislead the public.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This regulation sets forth the requirements to be met by licensees in choosing a dealership name.
(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 in choosing a dealership name.
(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 individuals or businesses who are retail motor vehicle dealers in Kentucky. 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 requires licensees to pick unique or distinguishable dealership names.
(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 there are many options for compliant names.
(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 operate as motor vehicle dealers in Kentucky.
(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 190.040, 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 license.
(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 license.
(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:
TRANSPORTATION CABINET
Motor Vehicle Commission
(New Administrative Regulation)
605 KAR 1:091.Motor vehicle dealership names.
Section 1.
The trade name of a licensee shall incorporate the words used cars, auto sales, auto mart, or other similar wording clearly identifiable as a motor vehicle dealer.(1)
A licensee, other than a franchised new motor vehicle dealer, shall not use the name of any make of motor vehicle as a part of the dealership business name.(2)
The adoption of the name of a make of motor vehicle in a trade name or advertising in this manner shall constitute false or misleading advertising within the meaning of KRS 190.040 and shall be considered grounds for the denial, suspension, or revocation of a license.Section 2.
The commission shall deny an Application for Motor Vehicle Dealer License, TC 98-1, incorporated by reference in 605 KAR 1:030, if the name or proposed trade name of the licensee is the same or so similar to the name or trade name of an existing, unrelated licensee that the proposed name would confuse or otherwise mislead the public into believing that the two (2) licensees are the same or related.(1)
If no other grounds are cited for the denial of the Application for Motor Vehicle Dealer License, TC 98-1, incorporated by reference in 605 KAR 1:030, the applicant may reapply.(2)
Reapplication with a new trade name shall be submitted within ten (10) days of denial without remitting an additional application fee.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 motor vehicle dealership names.
(b) The necessity of this administrative regulation:
KRS 190.040(1)(i) authorizes a license to be denied, suspended, or revoked for false or misleading advertising. This administrative regulation establishes provisions against false or misleading advertising that prohibit the use of the name of a make of motor vehicle in the business name of a used motor vehicle dealer and the use of a dealership name that is so similar to the name of an existing dealership that it would confuse or mislead the public.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This regulation sets forth the requirements to be met by licensees in choosing a dealership name.
(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 in choosing a dealership name.
(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 individuals or businesses who are retail motor vehicle dealers in Kentucky. 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 requires licensees to pick unique or distinguishable dealership names.
(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 there are many options for compliant names.
(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 operate as motor vehicle dealers in Kentucky.
(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 190.040, 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 license.
(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 license.
(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: