Request By:
Mr. Russell McClure
Secretary
Executive Department for
Finance and Administration
Capitol Annex Building
Frankfort, KY 40601
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: Thomas C. Jacobs, Deputy Attorney General
This is in response to your letter of July 11, 1978, wherein you state the following:
"A question has arisen within the Department and among certain bidders as to whether a motor vehicle dealer located in another state is required to be licensed in accordance with KRS 190.010 to 190.080 before such motor vehicle dealer would be eligible to sell motor vehicles to the Commonwealth of Kentucky pursuant to an Invitation for Bids issued in accordance with the provisions of KRS 45.360 et sequitur."
KRS 190.010(1) defines "motor vehicle dealer" , subject to certain exceptions, as any person who:
"(a) For commission, money or other thing of value, is engaged in the business of selling, exchanging, buying, offering or attempting to negotiate a sale or exchange of an interest in motor vehicles; or
(b) Who is engaged wholly or in part in the business of selling motor vehicles, including motor driven cycles, whether or not such motor vehicles are owned by such person, firm or corporation."
KRS 190.030 states in subsection (1) that:
"(1) No motor vehicle dealer . . . shall engage in the business as such in this state without a license therefor as provided in KRS 190.010 to 190.080. . ."
Thus it is clear, on the face of these two statutory sections standing alone, that no person who meets the definition of a motor vehicle dealer may act as such in the Commonwealth without having procured the license required by KRS 190.030.
This negative conclusion is strongly buttressed by careful examination of other sections within the scope of KRS 190.010 to 190.080. KRS 190.015 is particularly relevant. It states as follows:
"It is hereby declared to be the public policy of this commonwealth to provide for fair and impartial regulation of those persons engaged in the business of manufacture, distribution or sale of motor vehicles. Any of the provisions of this chapter which are applicable to such activities shall be administered in such a manner as will promote honesty, integrity, safety, veracity and sound economic conditions in the motor vehicle sales industry and among those engaged therein, without unjust discrimination or undue preference or advantage. It is declared to be the further policy of the commonwealth to protect the public interest in the purchase and trade of motor vehicles, so as to insure protection against irresponsible vendors or dishonest or fraudulent sales practices." (Emphasis Added)
The General Assembly has not only explained its policy in connection with the application of these license requirements, it has added teeth to that policy in several sections that follow. For example, KRS 190.033 requires that licensees either maintain adequate insurance or in lieu thereof file approved indemnifying bonds with the Bureau of Motor Vehicle Regulation. Further, by reason of KRS 190.035, licensees are required to have and maintain fixed buildings and places of business where adequate facilities are provided for the performing of the functions incidental to the maintenance of a motor vehicle business.
Failure to observe the obligations mandated by the licensing provisions could result in an action by the Bureau pursuant to KRS 190.067 and could further result in an action being brought in Franklin Circuit Court pursuant to KRS 190.075 to restrain violations of the act.
In summary, it is clear that the plain language of KRS 190.010(1) and KRS 190.030 require that a motor vehicle dealer be licensed as such in Kentucky prior to becoming eliglble to sell motor vehicles to the Commonwealth pursuant to an invitation to bid issued in accordance with the provisions of KRS 45.360 et seq. The legislative policy underlying this requirement is clearly spelled out in the chapter and the types of penalties imposed on failure to comply leave little doubt as to the validity of this conclusion.
If further information is needed from this office, we would be pleased to provide same upon request.