Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
186A.220(5),
190.030(7),
(11),
190.035,
190.047
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
190.030(7) requires a motor
vehicle dealer to restrict the sale or display of motor vehicles to the
location of the dealer's licensed place of business except that a motor vehicle
dealer may have a temporary off-site sale or display of motor vehicles at a
location other than the licensed place of business under certain conditions.
KRS
190.030(1) authorizes the
Motor Vehicle Commission to provide by administrative regulation for "other
licensee activities and an appropriate fee". This administrative regulation
establishes the application requirements for holding a temporary sale or
display event.
Section 1. Definition.
"Display" means:
(1) A showing of a motor
vehicle or vehicles with an intent to attract or further a sale of the motor
vehicle or vehicles or similar motor vehicles offered by a motor vehicle dealer
at a location in this state where no sale, transfer, or test drive takes place;
or
(2) Any showing of a motor
vehicle at a location for more than forty-eight (48) hours.
Section 2.
(1) A motor vehicle dealer shall not conduct
or participate in a motor vehicle display event at any location other than the
dealer's licensed place of business unless an Application for a Temporary
Display Event is filed with the Motor Vehicle Commission and
approved.
(2) The application for a
Temporary Display Event shall be received a minimum of five (5) days prior to
the next regularly-scheduled meeting of the commission held before the
requested permit period.
(3) The
temporary display permit application shall state:
(a) The duration of the display which shall
not exceed sixty (60) successive days;
(b) The specific location of the temporary
display event for which the permit is requested;
(c) A complete list of all motor vehicle
dealers participating in the temporary display event; and
(d) Proof that the city, county, urban county
or consolidated local government where the temporary display event is to occur
has enacted an ordinance specifically allowing a motor vehicle dealer to
conduct a motor vehicle temporary display event in its jurisdiction at a
location other than the dealer's licensed place of business.
(4) A salesman shall not be
present at a temporary display event at any time. If a salesman of the
participating motor vehicle dealer is present at the temporary display event,
the event shall be deemed a temporary sale event.
(5) The dealership name as stated on its
license, the address of its established place of business and contact
information shall be placed on or near the vehicle or vehicles on
display.
Section 3.
(1) A motor vehicle dealer shall not conduct
or participate in a motor vehicle sale event at any location other than the
dealer's licensed place of business unless an Application for a Temporary Sale
Event is filed with the Motor Vehicle Commission and approved.
(2) The application for a Temporary Sale
Event shall be received a minimum of forty-five (45) days prior to the
temporary sale event.
(3) The
temporary sale event application shall state:
(a) The duration of the sale which shall not
exceed five (5) successive days;
(b) The specific location of the temporary
sale event for which the permit is requested;
(c) A complete list of all motor vehicle
dealers participating in the temporary sale event;
(d) Proof that the city, county, urban county
or consolidated local government where the temporary sale event is to occur has
enacted an ordinance specifically allowing a motor vehicle dealer to conduct a
motor vehicle temporary sale event in its jurisdiction at a location other than
the dealer's licensed place of business;
(e) That the temporary sale event has been,
is being, or will be advertised as being temporary in nature;
(f) That the temporary sale event shall
include a representative sampling of the inventory of the participating dealer
or dealers; and
(g) In the case of
a sale of new motor vehicles:
1. That the sale
location is not within a five (5) mile radius of the licensed location of a
non-participating new motor vehicle dealer licensed to sell the same line make
of motor vehicles as will be displayed at the temporary sale event;
and
2. That the applicable
franchisor or franchisors have approved or consented to the temporary sale
event if consent is required.
Section 4.
(1) At every temporary sale event each
participating dealer shall display a sign easily visible from the street
identifying his business using his business name as stated on his dealer's
license and indicating the address of his established place of business as set
forth in his dealer's license.
(2)
If applicable local ordinance prohibits the signage, each dealer shall display
allowable signage containing the same information and provide customers with
business cards containing the information upon request.
Section 5.
(1) All sales made at a temporary sale event
shall be evidenced by a written sales document or purchase order containing the
dealership's licensed name and address of the dealership's established place of
business, the address of the temporary sale and the customer name, address and
telephone number.
(2) The
Documentation shall be retained for six (6) months after the sale and shall be
made available to the Motor Vehicle Commission upon
request.
Section 6. A
certificate of title, and other documents if appropriate, shall be present at
the temporary sale event location with respect to each motor vehicle offered
for sale at the temporary sale event and shall be made available to purchasers
as set forth in
KRS
186A.220(5).
Section 7.
(1) All individuals involved in attempting to
make a sale as defined in
KRS
190.010(25) at a temporary
sale event shall possess a valid salesman's license issued by the Motor Vehicle
Commission in the name of the participating dealer or dealers prior to the date
of the temporary sale event.
(2)
All salesmen participating in or present at a temporary sale event shall have
their valid Kentucky license in their possession and available for display at
all times during the event.
Section
8. A temporary sale event involving new motor vehicles shall not
be allowed within a five (5) mile radius of the licensed location of a
nonparticipating new motor vehicle dealer licensed to sell the same line make
as will be displayed at the temporary sale event.
Section 9.
(1) Unless good cause is shown by the
applicant, temporary display events shall not be approved for the same location
or the same jurisdiction unless there is at least a twenty-four (24) hour
period between the end of the last temporary display event held by the
applicant and the beginning of the next temporary display event to be held by
the applicant.
(2) Unless good
cause is shown by the applicant, temporary sale events shall not be approved
for the same location or the same jurisdiction unless there is at least a
thirty (30) day period between the end of the last temporary sale event held by
the applicant and the beginning of the next temporary sale event to be held by
the applicant.
Section
10.
(1) The fee for a temporary
sale event permit shall be $500 per participating dealer and shall be paid when
the application is submitted.
(2)
If the application is only for a temporary display event, the fee shall be
twenty-five (25) dollars.
Section
11. Incorporation by Reference.
(1) "Application for Temporary Sale or
Display Event", revised September 2008, is incorporated by reference.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Kentucky Motor Vehicle
Commission, 105 Sea Hero Road, Suite 1, Frankfort, Kentucky 40601 Monday
through Friday, 8 a.m., to 4:30 p.m.
STATUTORY AUTHORITY:
KRS
190.020,
190.030(1),
190.073