2026 Legislation Streamlines Business Operations Key Takeaways for Kentucky Dealers While the 2026 session of the Kentucky General Assembly did not deliver all that KADA had hoped, it nonetheless produced several significant legislative victories impacting Kentucky businesses, vehicle dealers, lenders and local governments. Among the most consequential measures were Senate Bill 110, Senate Bill 158 and House Bill 518 — each aimed at modernizing systems, improving consistency and reducing administrative burdens across the Commonwealth. SB 110: Kentucky Moves Toward Full Electronic Titling Senate Bill 110 represents one of the most significant updates to Kentucky’s motor vehicle titling and registration system in years. Signed into law in April 2026, the legislation accelerates the Commonwealth’s transition to electronic title and lien processing. Beginning July 1, 2027, motor vehicle dealers and lienholders will generally be required to use Kentucky’s electronic title application and registration system for submitting title, registration and lien documentation. This measure will not only improve transaction times but also help dealerships move at the speed of business. It is critical that dealerships not yet using KyELT begin that process soon to avoid delays as the deadline nears. The law also establishes a new electronic-only title system. This is a significant change that will result in vehicle titles being issued electronically rather than on paper. For vehicles without liens, owners can request a paper title for a small fee. Likewise, once a vehicle is paid off, the owner may request a paper title. Additional provisions modernize county clerk operations by: • Allowing certain notices and renewal reminders to be delivered electronically; • Eliminating outdated duplicate filing requirements; • Authorizing alternative payment methods for taxes and fees; and • Streamlining lien filing and release procedures. SB 110 is a long-overdue modernization effort designed to improve efficiency, reduce paperwork, and better align Kentucky with evolving automotive and financial industry practices. SB 158: Establishing a Framework for Vehicle Financial Protection Products Another major development for the automotive industry came with the passage of Senate Bill 158, which creates a comprehensive regulatory structure for vehicle financial protection products. The legislation clarifies that products such as vehicle value protection agreements and debt waivers are credit protection products, NOT insurance products, under Kentucky law. It also establishes consumer protections and compliance requirements for providers and lenders. 10 KENTUCKY AUTO DEALER
RkJQdWJsaXNoZXIy MTg3NDExNQ==