Motor Vehicle Commission
(As Amended at ARRS, November 12, 2013)
††††† RELATES TO: KRS 190.010, 190.030, 190.035
††††† STATUTORY AUTHORITY: KRS 190.010, 190.030, 190.035
††††† NECESSITY, FUNCTION, AND CONFORMITY: KRS 190.030 requires that a salesmanís license shall indicate for whom
the salesman works[
190.010, 190.030, and 190.035 define what a motor
vehicle salesman is and his relationship to his employing dealership. KRS
190.030 also provides for salesmenís licenses to indicate for whom they work]
and [ to] be displayed upon request. This administrative
regulation establishes[ interprets] the relationship
between the dealership and salesman and implements statutory requirements to
facilitate accurate recordkeeping by the Motor Vehicle Commission.
††††† Section 1. A properly licensed motor
vehicle salesman employed by a licensee may, in that capacity, sell or exchange
a motor vehicle in Kentucky, subject to the requirements established
in this section.[
the following limitations:]
††††† (1) The activity shall[
be pursuant to the salesmanís employment by the licensee whose name appears on
the salesmanís 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 his sales activity at any
location other than the location for which his employer holds a license.
††††† Section 2. In the event a salesman
changes his place of employment to another dealership, he shall return his
license to the commission along with a properly completed Application
for Salesperson License, TC 98-4,[
salesmanís license application]
showing the name and address of the new[ other] dealership.
††††† 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 dealerís copy of the salesmanís license.
††††† Section 4. (1) An[
applicant for a motor vehicle salesman license shall submit an Application
for Salesperson License, TC 98-4,[ on a form provided by the commission]
containing the name, home address, social security number, date of birth of the
applicant, and the employment history of the applicant in the motor vehicle
industry identifying the name and address of any previous motor vehicle
dealerships at which the applicant was employed. If the applicant does
not have[ has no] prior experience in the motor vehicle
industry, the applicant shall so state.
††††† (2) An[
applicant shall furnish a current photograph for identification purposes.
††††† (3) An[
applicant shall authorize the commission to make inquiries or investigations
concerning the applicantís employment, credit, or criminal records. The applicant
or the employing dealership shall remit the required fee for a criminal background
check if requested by the commission.
††††† (4) An Application for
Salesperson License, TC 98-4,[
Every application] shall
be signed by the applicant and the authorized representative of the employing dealership.
††††† Section 5. The following individuals
are] required to obtain a
††††† (1) Each general partner actively
involved in the day-to-day operation of a general or limited partnership
holding a motor vehicle dealer license;[
††††† (2) The president, chief executive
officer, chief operating officer, or equivalent of a corporation holding a
motor vehicle dealer license; and[
††††† (3) 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.
††††† Section 6. If any of the individuals in Section 5 are physically located and conduct business at more than one location, the individual shall procure a salesmanís 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.
††††† Section 7. Incorporation by Reference. (1) ďApplication for Salesperson LicenseĒ, TC 98-4, October 2010, 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.
RAY COTTRELL, Chairman
††††† APPROVED BY AGENCY: August 13, 2013
††††† FILED WITH LRC: August 14, 2013 at 11 a.m.
††††† CONTACT PERSON: Carlos R. Cassady, Executive Director, Kentucky Motor Vehicle Commission, 105 Sea Hero Road, Suite 1, Frankfort, Kentucky 40601, phone (502) 573-1000, fax (502) 564-5487.