Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 190.010-190.080
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
190.030 provides for the issuance of various
licenses to engage in the activity of a motor vehicle dealer.
KRS
190.020 requires the commission, under
administrative regulations promulgated by it, to issue the licenses provided
for by
KRS
190.010 to
190.080.
KRS 190.073 requires
the commission to promulgate appropriate and reasonable administrative
regulations for the purpose of carrying out the provisions of KRS Chapter 190.
This administrative regulation allows the Motor Vehicle Commission to provide
for an orderly procedure for the submission and content of applications to
facilitate processing of applications and the issuance of the license.
Section 1. Application and Renewal.
(1) An Application for Motor Vehicle Dealer
License, form TC 98-1, shall be submitted on behalf of an individual or entity
wishing to obtain a license using a name that is not the name of a current
licensee. Applicants shall provide additional information in support of the
application if requested by the commission or its staff. The application shall
not be considered complete until the additional information is
received.
(2) Renewal of a dealer
license shall be submitted by completing a Dealer License Renewal Application
available on the commission's Web site at
https://mvc.ky.gov/Pages/Online-Renewal.aspx.
Section 2. The applicant shall be
notified in writing of the acceptance or rejection of the application. If the
application is rejected, the reason or reasons for rejection shall be
specifically stated, and the rejected applicant shall be notified of the right
to a hearing before the commission in accordance with the rules and
administrative regulations of the commission.
Section 3. All applicants shall:
(1) Submit a financial statement;
(2) Submit at least six (6) different
photographs of the premises to be occupied by the applicant;
(3) Submit a detailed drawing of the premises
in relation to the nearest roadway, which shall include the location and size
of the office and the display area, and the location of the dealership
sign;
(4) Furnish a personal data
sheet, employment history, and photograph for each individual owning a portion
of the business, officers of a corporation, or members and managers of a
limited liability company;
(5) Sign
a statement authorizing the Motor Vehicle Commission to make inquiries or
investigations concerning employment, credit, or criminal records of the
applicant or any partner, corporate officer, and manager or managing member of
a limited liability corporation; and
(6) Obtain garage liability insurance and
file with the commission a certificate of insurance in the exact name in which
it applies for a license.
Section
4. An Applicant for a new, used, motorcycle, automotive mobility
dealer, or motor vehicle leasing dealer license shall demonstrate that they
possess a minimum of $50,000 in unencumbered cash or unencumbered
inventory.
Section 5.
(1) An Applicant for a new, used, motorcycle,
automotive mobility dealer, or motor vehicle leasing dealer license who
demonstrates that they possess between $50,000 and $100,000 of unencumbered
cash or unencumbered motor vehicle inventory may be granted a license only if
the applicant also obtains a commercial bond, as set forth in
KRS
190.030(9), in the amount of
the difference between the unencumbered cash and unencumbered motor vehicle
inventory and the $100,000 amount.
(2) The commission may require a commercial
bond, as set forth in
KRS
190.030(9), for an applicant
with a net worth above the $100,000 amount if the information submitted by the
applicant indicates reasonable cause to doubt the financial responsibility or
the applicant's compliance with the provisions of KRS Chapter
190.
Section 6. Every
licensee shall obtain a sales tax permit number from the Department of
Revenue.
Section 7. Incorporation
by Reference.
(1) "Application for Motor
Vehicle Dealer License, TC 98-1", 6/2021 edition is incorporated by
reference.
(2) This material may be
inspected, copied, or obtained, subject to applicable copyright law, at
Kentucky Motor Vehicle Commission, 200 Mero Street, Frankfort, Kentucky 40601,
Monday through Friday, 8:00 a.m. to 4:30 p.m.
STATUTORY AUTHORITY:
KRS
190.020,
190.030,
190.035,
190.073
