Legislative Achievements

The main role of KADA is to protect and preserve the interests and rights of auto dealers throughout the state of Kentucky. We aim to be the voice of the dealer community, ensuring that dealers are heard and represented in our ever-changing political environment. Below, you can find information on our most recent victories in the General Assembly.

Senate Bill 110- Modernization

Creates significant changes to streamline motor vehicle titling and registration processes, including a transition to electronic, rather than paper, titles. Also requires dealers selling more than 25 vehicles annually to begin using Kentucky’s electronic registration and titling system.

Senate Bill Bill 158- Vehicle Protection Products

Clarifies that products like debt waivers and vehicle value protection products, including GAPInsurance, ande NOT insurance products under Kentucky law, and thus not subject to regulation by the Kentucky Department of Insurance.

House Bill 518- Standardized Local Tax Filing

Requires local governments to use standardized forms for local occupational tax filings on net profits, payroll, and gross receipts, allowing businesses operting in multiple local taking jurisdictions to have a uniform method to file and pay these taxes.

Temporary Use of Existing Plate

Enables consumers to continue using their existing plate and have it directly moved from their trade-in vehicle to their purchased vehicle, bypassing the need for a temp tag.

KAVIS Cleanup Bill

Revised and simplified vehicle titling, electronic lien submissions, temporary tags for vehicles exported for registration, and dealer assignments of all-terrain vehicles

Surplus Lines

Allows a licensed dealer’s required indemnifying bond or insurance policy to be issued by a nonadmitted surplus-lines insurer under KRS Chapter 304, Subtitle 10, rather than only by an insurer admitted in Kentucky

Prior Owner Contact Disclosure Bill:

Enables dealers to comply with both Kentucky law and federal law, as dealers will now only be required to provide prior owner information to customers if that prior owner has consented in writing to such disclosure.

Co-Buyer Registration Bill:

Resolves some of the registration challenges dealers have confronted for sales involving out-of-state co-buyers by establishing processes for joint ownership of vehicles where one owner is not a resident of the Commonwealth.

Out-of-state Vehicle Inspections Bill:

Sheriffs may appoint up to two dealership employees as authorized vehicle inspectors for vehicles purchased out of state that the dealer plans to offer for resale. Franchised dealers and used vehicle dealers who average 100 sales per month are eligible. Inspection fees are increased to: $30 for inspections conducted by dealership personnel; $15 for inspections conducted by the sheriff’s office.

Direct Sales Bill:

Prohibits manufacturer direct sales and requires retail reservations to be assigned to dealers. Also states that military members are NOT required to have a KY driver’s license to register a vehicle in KY.

Franchise Language Bill:

Strengthens franchise language manufacturers must permit owners to propose a succession plan; dealers now have 30 days to protest franchise termination; stops manufacturers from using related companies to do illegal things forbidden by franchise law; and recall work is included in the provisions related to audit limitations for warranty work.

Clerk's Modernization Bill:

Over the course of two years, we introduced this landmark bill to bring electronic titling and registration to KY dealers.

Temp Tag Bill:

Extends the term of Temp Tags from 30 days to 60.

The Catalytic Converter Bill:

Imposes stronger penalties against those who are stealing catalytic converters and puts up stiffer guardrails against those who are buying and selling catalytic converters.

Offsite Deliveries Bill:

This bill allows dealers to deliver vehicles outside the site of their retail facilities. We strengthened the language to ensure that the vehicle has to be derived by a franchise within the state.

Counterfeit Airbags Bill:

We were able to remove a section of this bill that would’ve put liability on the dealer for the use of counterfeit airbags.

EV Tax Bill:

Sets forth a tax payment standard for EVs with regards to how much is going to be paid per kilowatt hour, who is going to be responsible for collecting and remitting those taxes, and sets a standard ownership fee.

Trade-in Tax Cap Bill:

We stopped the passing of this section of a bill which would have made purchasing a vehicle as a consumer very unaffordable, and put dealers in a non-competitive position with neighboring states.

PPP Loan Tax Deductibility Bill:

We were extremely involved in the passing of this bill which provides PPP loan forgiveness. As it stood before, companies could not deduct PPP Loan money used for payroll and other approved expenses.