Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
190.010,
190.030
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
190.030 requires a salesman's license to
indicate for whom the salesman works and to be displayed upon request. This
administrative regulation establishes the relationship between the dealership
and salesman and implements statutory requirements to facilitate accurate
recordkeeping by the Motor Vehicle Commission.
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. If 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.
(1) The following individuals shall be
required to obtain a salesman's license:
(a)
Each natural person holding a motor vehicle dealer license;
(b) Each general partner actively involved in
the day-to-day operation of a general or limited partnership holding a motor
vehicle dealer license;
(c) The
president, chief executive officer, chief operating officer, or equivalent of a
corporation holding a motor vehicle dealer license; and
(d) 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.
(2) 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) are physically located and conduct business at more than one (1)
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.
STATUTORY AUTHORITY:
KRS
190.010,
190.030,
190.073
