Title 605 | Chapter 001 | Regulation 191
SUPERSEDED
This document is no longer current.
TRANSPORTATION CABINET
Motor Vehicle Commission
(New Administrative Regulation)
605 KAR 1:191.Motor vehicle advertising.
Section 1.
Definitions.(1)
"Advertising" means any oral, written or graphic statement, whether physical or electronic, which offers vehicles for sale or lease or that indicates the availability of vehicles, including any statements or representation made in a newspaper, pamphlet, circular, other publication, in radio or television, social media, on the internet or contained in any notice, handbill, sign, billboard poster, bill catalog, letter, or business card.(2)
"Bait advertising" means:(a)
An alluring but insincere offer to sell or lease a product, to obtain leads to persons interested in buying merchandise of the type advertised and to switch consumers from the advertised product to another product for a higher price or on a basis more advantageous to the dealer; or(b)
Advertising a new motor vehicle at a price that does not include all equipment listed as standard equipment by the manufacturer without disclosing that fact, or failing to disclose any of that equipment for the purpose of advertising a low price and "baiting" the customer into charges above the advertised price.(3)
"Clear and conspicuous" means a statement, representation or term differing from other statements, representations, or terms being made so as to be readily noticeable to the person to whom it is being disclosed either by its size, sound, length of time, color, placement in the ad, or other features.(4)
"Demonstrator" means a vehicle of the current or preceding model year that has never been the subject of a retail sale, and that has been used by dealership personnel for demonstrating performance ability.(5)
"Executive vehicle" and "official vehicle" mean, if so advertised, a vehicle that has been used exclusively by an executive or executives of the dealer franchisee.Section 2.
A licensee shall not use misleading or bait advertising. A practice shall not be pursued by an advertiser if the practice will discourage the sale of the advertised product with the intent and purpose of selling other merchandise instead.Section 3.
(1)
An advertisement for the sale or lease of new and used vehicles placed by or on behalf of a licensee shall clearly and conspicuously identify the dealership by including in the text of the advertisement the business name as it appears on the dealer's license. In a classified newspaper or similar on-line advertisements, the licensee may, as an alternative, use the word "dealer" in the text of the advertisement.(2)
The advertisement of any dealership inventory on a non-company social media account shall be considered an advertisement placed on behalf of the dealership subject to these regulations and the provisions of KRS Chapter 190.(3)
A new or used motor vehicle dealer advertising the sale or lease of new or used motor vehicles at more than one (1) licensed location shall use in the text of the advertisement the business name for each advertised location as the name appears on the dealer's license for the locations where the advertised vehicles are located.(4)
A new motor vehicle dealer advertising the sale or lease of new motor vehicles at more than one (1) licensed location shall specifically identify the makes of vehicles available at each advertised location.Section 4.
(1)
Except as established in subsection (2) of this section, if a specific new motor vehicle is advertised by a dealer as being for sale, that vehicle shall be:(a)
In the possession of the dealer;(b)
Shown; and(c)
Sold as advertised, illustrated, or described at the advertised price and terms, at the advertised address.(2)
The advertisement for the sale or lease of a specific new motor vehicle that is not in stock on the date of the advertisement shall:(a)
State:1.
"Not in stock";2.
"Order yours now"; or3.
Other phrases of similar import that clearly indicate the vehicle is not available for immediate delivery; and(b)
Disclose a reasonable estimate of the period of time in which delivery will be made.(3)
If an advertisement pertains to one (1) specific vehicle only, this fact shall be disclosed in the advertisement. Listing a stock number shall be adequate disclosure.Section 5.
The following statements shall not be used in advertising by a dealer, unless the statements are absolutely true with no qualifications:(1)
Statements such as:(a)
"Write your own deal";(b)
"Name your own price";(c)
"Name your own monthly payments";(d)
"Appraise your own car"; or(e)
Statements with similar meaning;(2)
Statements such as:(a)
"Everybody financed";(b)
"No credit rejected";(c)
"We finance anyone"; or(d)
Other statements representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit;(3)
Statements representing that no other dealer grants greater allowances for trade-ins, however stated; and(4)
Statements implying that because of its large sales volume, a new vehicle dealer is able to purchase vehicles for less than another dealer selling the same make of vehicles.(5)
(a)
Claims such as "first", "largest", "biggest", shall not be used unless they are valid at the time such claims are made.(b)
If such claims are qualified with regard to area, location, time, or other limitations, upon the direction of the commission, the dealer shall incorporate within the advertisement the terms of such qualification.Section 6.
Retail advertising shall not state or imply that the dealer:(1)
Is selling vehicles in a manner other than through normal retail channels, including use of terms including such as "wholesale", "factory sale", "factory discount"; or(2)
Has a special relationship or connection to the manufacturer that other dealers do not have, including use of terms such as "factory outlet", "factory branch", and similar terms used in connection with the manufacturer's name.Section 7.
It shall be false or misleading advertising to advertise the sale of a vehicle having only a Kentucky salvage title unless the advertisement conspicuously discloses that the vehicle has a salvage title and that the vehicle cannot be registered and operated on the roadways in Kentucky unless the vehicle is repaired and issued a rebuilt title.Section 8.
Since the amount of trade-in allowance will vary depending on the condition, model, and age of a buyer's vehicle, no specific trade-in amount or range of amounts shall be used in advertising.Section 9.
(1)
An asterisk (*) may be used to give additional information about a word or term.(2)
Use of one (1) or more footnotes or asterisks which, alone or in combination, contradict, confuse, materially modify, or unreasonably limit a principal message of the advertisement shall not be used.Section 10.
(1)
Any disclosure appearing in advertisements shall clearly and conspicuously feature all necessary information in a manner that can be read and understood or that can be heard and understood.(2)
The minimum duration of printed language in a television advertisement shall be five (5) seconds for every three (3) lines.Section 11.
If an advertisement contains an offer of a discount on a new vehicle, the amount of the discount shall be stated by reference to the actual dollar figure of the manufacturer's suggested retail price of the vehicle plus the retail price of dealer-added options.Section 12.
The words "free", "gift", or words of similar import may be used in advertising only if the advertiser is offering an unconditional gift.Section 13.
The manufacturer's suggested retail price (MSRP) dollar figure of a new motor vehicle if advertised in local media by a manufacturer, distributor, or regional advertisement council or association shall include all costs and charges for the vehicle advertised including destination charges if those charges are uniform regardless of destination throughout the state; destination charges subject to variance within the state and dealer preparation charges may be excluded from the price, if the advertisement conspicuously states that the costs and charges are excluded.(1)
If the price of a vehicle is advertised in local media by a licensee, the vehicle shall be fully identified as to year, make, model, and if new or used.(2)
The stated price shall include all charges that the customer is required to pay for the vehicle, including "freight" or "destination charges", "dealer preparation", "dealer handling", "additional dealer profit", "additional dealer margin", and "undercoating or rustproofing" if the vehicle is already so equipped.(3)
The advertised price at which the dealer is advertising a particular motor vehicle shall be the price before consideration for a down-payment, a trade-in allowance, or other similar allowances.Section 14.
If the words "list" or "sticker" or words of similar import are used in a new motor vehicle advertisement, the words shall only refer to the actual dollar figure of the manufacturer's suggested retail price (MSRP) plus the retail price of dealer-added options.Section 15.
If any advertisement relates to a lease, the advertisement shall clearly and conspicuously disclose that the advertisement is for the lease of a vehicle.Section 16.
A dealer offering to sell a demonstrator, program, official, or executive vehicle shall clearly and conspicuously identify former use.(1)
A demonstrator shall be offered for sale as such only by a dealer who holds a valid sales agreement or franchise for the sale of the same line make of motor vehicle.(2)
A vehicle advertised as official or executive vehicles shall not have been sold or leased to a retail customer prior to the appearance of the advertisement.Section 17.
Motor vehicle financing shall not be advertised at a reduced interest rate if the cost thereof would be directly or indirectly borne by the buyer unless the advertisement discloses that rate shall affect the negotiated price of the vehicle to the buyer.Section 18.
In any action pursuant to this administrative regulation, truth shall be an absolute defense.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 licensee advertising in the sale and lease of motor vehicles.
(b) The necessity of this administrative regulation:
KRS 190.040(1)(i) requires that a motor vehicle dealer shall not engage in “false or misleading advertising.” KRS 190.073 authorizes the Motor Vehicle Commission to “promulgate administrative regulations for the purpose of carrying out the provisions of KRS Chapter 190.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This regulation sets forth advertising guidelines for the sale and lease of motor vehicles by licensees. (d) How this administrative regulation currently assists or will assist in the effective administration of the statute: This regulation sets forth advertising guidelines used by the commission in enforcing KRS 190.040.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
(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 motor vehicle dealers in Kentucky advertising the sale or lease of motor vehicles. 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 guidelines licensees shall follow in their advertising for the sale and lease of motor vehicles.
(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 advertising.
(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 establishes 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 1:191.Motor vehicle advertising.
Section 1.
Definitions.(1)
"Advertising" means any oral, written or graphic statement, whether physical or electronic, which offers vehicles for sale or lease or that indicates the availability of vehicles, including any statements or representation made in a newspaper, pamphlet, circular, other publication, in radio or television, social media, on the internet or contained in any notice, handbill, sign, billboard poster, bill catalog, letter, or business card.(2)
"Bait advertising" means:(a)
An alluring but insincere offer to sell or lease a product, to obtain leads to persons interested in buying merchandise of the type advertised and to switch consumers from the advertised product to another product for a higher price or on a basis more advantageous to the dealer; or(b)
Advertising a new motor vehicle at a price that does not include all equipment listed as standard equipment by the manufacturer without disclosing that fact, or failing to disclose any of that equipment for the purpose of advertising a low price and "baiting" the customer into charges above the advertised price.(3)
"Clear and conspicuous" means a statement, representation or term differing from other statements, representations, or terms being made so as to be readily noticeable to the person to whom it is being disclosed either by its size, sound, length of time, color, placement in the ad, or other features.(4)
"Demonstrator" means a vehicle of the current or preceding model year that has never been the subject of a retail sale, and that has been used by dealership personnel for demonstrating performance ability.(5)
"Executive vehicle" and "official vehicle" mean, if so advertised, a vehicle that has been used exclusively by an executive or executives of the dealer franchisee.Section 2.
A licensee shall not use misleading or bait advertising. A practice shall not be pursued by an advertiser if the practice will discourage the sale of the advertised product with the intent and purpose of selling other merchandise instead.Section 3.
(1)
An advertisement for the sale or lease of new and used vehicles placed by or on behalf of a licensee shall clearly and conspicuously identify the dealership by including in the text of the advertisement the business name as it appears on the dealer's license. In a classified newspaper or similar on-line advertisements, the licensee may, as an alternative, use the word "dealer" in the text of the advertisement.(2)
The advertisement of any dealership inventory on a non-company social media account shall be considered an advertisement placed on behalf of the dealership subject to these regulations and the provisions of KRS Chapter 190.(3)
A new or used motor vehicle dealer advertising the sale or lease of new or used motor vehicles at more than one (1) licensed location shall use in the text of the advertisement the business name for each advertised location as the name appears on the dealer's license for the locations where the advertised vehicles are located.(4)
A new motor vehicle dealer advertising the sale or lease of new motor vehicles at more than one (1) licensed location shall specifically identify the makes of vehicles available at each advertised location.Section 4.
(1)
Except as established in subsection (2) of this section, if a specific new motor vehicle is advertised by a dealer as being for sale, that vehicle shall be:(a)
In the possession of the dealer;(b)
Shown; and(c)
Sold as advertised, illustrated, or described at the advertised price and terms, at the advertised address.(2)
The advertisement for the sale or lease of a specific new motor vehicle that is not in stock on the date of the advertisement shall:(a)
State:1.
"Not in stock";2.
"Order yours now"; or3.
Other phrases of similar import that clearly indicate the vehicle is not available for immediate delivery; and(b)
Disclose a reasonable estimate of the period of time in which delivery will be made.(3)
If an advertisement pertains to one (1) specific vehicle only, this fact shall be disclosed in the advertisement. Listing a stock number shall be adequate disclosure.Section 5.
The following statements shall not be used in advertising by a dealer, unless the statements are absolutely true with no qualifications:(1)
Statements such as:(a)
"Write your own deal";(b)
"Name your own price";(c)
"Name your own monthly payments";(d)
"Appraise your own car"; or(e)
Statements with similar meaning;(2)
Statements such as:(a)
"Everybody financed";(b)
"No credit rejected";(c)
"We finance anyone"; or(d)
Other statements representing or implying that no prospective credit purchaser will be rejected because of his inability to qualify for credit;(3)
Statements representing that no other dealer grants greater allowances for trade-ins, however stated; and(4)
Statements implying that because of its large sales volume, a new vehicle dealer is able to purchase vehicles for less than another dealer selling the same make of vehicles.(5)
(a)
Claims such as "first", "largest", "biggest", shall not be used unless they are valid at the time such claims are made.(b)
If such claims are qualified with regard to area, location, time, or other limitations, upon the direction of the commission, the dealer shall incorporate within the advertisement the terms of such qualification.Section 6.
Retail advertising shall not state or imply that the dealer:(1)
Is selling vehicles in a manner other than through normal retail channels, including use of terms including such as "wholesale", "factory sale", "factory discount"; or(2)
Has a special relationship or connection to the manufacturer that other dealers do not have, including use of terms such as "factory outlet", "factory branch", and similar terms used in connection with the manufacturer's name.Section 7.
It shall be false or misleading advertising to advertise the sale of a vehicle having only a Kentucky salvage title unless the advertisement conspicuously discloses that the vehicle has a salvage title and that the vehicle cannot be registered and operated on the roadways in Kentucky unless the vehicle is repaired and issued a rebuilt title.Section 8.
Since the amount of trade-in allowance will vary depending on the condition, model, and age of a buyer's vehicle, no specific trade-in amount or range of amounts shall be used in advertising.Section 9.
(1)
An asterisk (*) may be used to give additional information about a word or term.(2)
Use of one (1) or more footnotes or asterisks which, alone or in combination, contradict, confuse, materially modify, or unreasonably limit a principal message of the advertisement shall not be used.Section 10.
(1)
Any disclosure appearing in advertisements shall clearly and conspicuously feature all necessary information in a manner that can be read and understood or that can be heard and understood.(2)
The minimum duration of printed language in a television advertisement shall be five (5) seconds for every three (3) lines.Section 11.
If an advertisement contains an offer of a discount on a new vehicle, the amount of the discount shall be stated by reference to the actual dollar figure of the manufacturer's suggested retail price of the vehicle plus the retail price of dealer-added options.Section 12.
The words "free", "gift", or words of similar import may be used in advertising only if the advertiser is offering an unconditional gift.Section 13.
The manufacturer's suggested retail price (MSRP) dollar figure of a new motor vehicle if advertised in local media by a manufacturer, distributor, or regional advertisement council or association shall include all costs and charges for the vehicle advertised including destination charges if those charges are uniform regardless of destination throughout the state; destination charges subject to variance within the state and dealer preparation charges may be excluded from the price, if the advertisement conspicuously states that the costs and charges are excluded.(1)
If the price of a vehicle is advertised in local media by a licensee, the vehicle shall be fully identified as to year, make, model, and if new or used.(2)
The stated price shall include all charges that the customer is required to pay for the vehicle, including "freight" or "destination charges", "dealer preparation", "dealer handling", "additional dealer profit", "additional dealer margin", and "undercoating or rustproofing" if the vehicle is already so equipped.(3)
The advertised price at which the dealer is advertising a particular motor vehicle shall be the price before consideration for a down-payment, a trade-in allowance, or other similar allowances.Section 14.
If the words "list" or "sticker" or words of similar import are used in a new motor vehicle advertisement, the words shall only refer to the actual dollar figure of the manufacturer's suggested retail price (MSRP) plus the retail price of dealer-added options.Section 15.
If any advertisement relates to a lease, the advertisement shall clearly and conspicuously disclose that the advertisement is for the lease of a vehicle.Section 16.
A dealer offering to sell a demonstrator, program, official, or executive vehicle shall clearly and conspicuously identify former use.(1)
A demonstrator shall be offered for sale as such only by a dealer who holds a valid sales agreement or franchise for the sale of the same line make of motor vehicle.(2)
A vehicle advertised as official or executive vehicles shall not have been sold or leased to a retail customer prior to the appearance of the advertisement.Section 17.
Motor vehicle financing shall not be advertised at a reduced interest rate if the cost thereof would be directly or indirectly borne by the buyer unless the advertisement discloses that rate shall affect the negotiated price of the vehicle to the buyer.Section 18.
In any action pursuant to this administrative regulation, truth shall be an absolute defense.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 licensee advertising in the sale and lease of motor vehicles.
(b) The necessity of this administrative regulation:
KRS 190.040(1)(i) requires that a motor vehicle dealer shall not engage in “false or misleading advertising.” KRS 190.073 authorizes the Motor Vehicle Commission to “promulgate administrative regulations for the purpose of carrying out the provisions of KRS Chapter 190.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This regulation sets forth advertising guidelines for the sale and lease of motor vehicles by licensees. (d) How this administrative regulation currently assists or will assist in the effective administration of the statute: This regulation sets forth advertising guidelines used by the commission in enforcing KRS 190.040.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
(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 motor vehicle dealers in Kentucky advertising the sale or lease of motor vehicles. 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 guidelines licensees shall follow in their advertising for the sale and lease of motor vehicles.
(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 advertising.
(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 establishes 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: