††††† 605 KAR 1:210. Nonprofit motor vehicle dealer requirements and licensing.

 

††††† RELATES TO: KRS 190.010 (29), (30), 190.032, 26 U.S.C. 501(c)(3)

††††† STATUTORY AUTHORITY: KRS 190.032, 190.073

††††† NECESSITY, FUNCTION AND CONFORMITY: KRS 190.032 requires the Motor Vehicle Commission to establish requirements for initial application for and renewal of a license to be a nonprofit motor vehicle dealer and directs the commission to establish relevant requirements that shall include standards for disability or disadvantaging conditions concerning the clients served by nonprofit motor vehicle dealers. This administrative regulation establishes requirements and standards for nonprofit motor vehicle dealers and licensing.

 

††††† Section 1. In addition to KRS 190.010(29) and the application requirements established in 605 KAR 1:030, Sections 4, 5, and 10, a nonprofit motor vehicle dealer applicant shall certify that it is an organization exempt from taxation pursuant to 26 U.S.C. Section 501(c)(3) of the Internal Revenue Code and that it has made all required filings with the Internal Revenue Service.

 

††††† Section 2. In addition to KRS 190.010(30), an applicant shall demonstrate to the commission that the applicantís sales program serves only clients meeting two (2) or more of the following disability or disadvantaging conditions:

††††† (1) The clientís household income is at or below the current federal Poverty Guidelines as established by the United States Department of Health and Human Services;

††††† (2) The client has been designated as physically disabled by any state or federal agency;

††††† (3) The client has an actual need for a motor vehicle in order to meet work, educational, or medical needs and the client cannot obtain a reliable vehicle without the dealerís assistance;

††††† (4) The client has received state or federal funding specifically designed to allow the purchase of a vehicle for personal or household use; or

††††† (5) The client has experienced the loss of a functioning vehicle as a result of an event certified as a natural disaster by any applicable state or federal agency.

 

††††† Section 3. Upon the submission of its initial application and each renewal application thereafter, the applicant or licensee shall submit the current IRS Form 990 filed by the organization. If the applicant or licensee files a short form version of IRS Form 990, the commission may require the applicant or licensee to submit additional information which would be contained on IRS Form 990 if the commission has reasonable cause to doubt the financial responsibility of the applicant to comply with the provisions of KRS Chapter 190.

 

††††† Section 4. A nonprofit motor vehicle dealer that is not also licensed as either a new motor vehicle dealer or a used motor vehicle dealer shall not sell any vehicles except as allowed by KRS 190.032(3). (40 Ky.R. 740; 1259; eff. 1-3-2014.)