TRANSPORTATION CABINET

Department of Vehicle Regulation

(Amendment)

 

      601 KAR 9:135. Apportioned registration.

 

      RELATES TO: KRS 131.110(1), 131.340, 186.020(1), (3), 186.040, 186.050(13)(a)[(3), (13)], 186.051(2), 186.180, 186.240(2), 49 U.S.C. 31704[49 U.S.C. 317]

      STATUTORY AUTHORITY: KRS 186.050(13), 186.051(3), 49 U.S.C. 31704

      NECESSITY, FUNCTION, AND CONFORMITY: 49 U.S.C. 31704 requires each state to participate in the International Registration Plan. KRS 186.051(3) requires the Transportation Cabinet to promulgate an administrative regulation establishing[establish] a system of staggered registration time periods for commercial motor vehicles. KRS 186.050(13)(a) requires the Transportation Cabinet to promulgate an administrative regulation[regulations] concerning the registration of commercial motor vehicles pursuant to[under] the Articles of the International Registration Plan. This administrative regulation establishes the procedures required to register[to be followed in registering] a commercial motor vehicle under the provisions of the International Registration Plan;[. It further] clarifies if[when] a vehicle licensed pursuant to[under the provisions of] KRS 186.050(13) is required[shall be deemed] to be licensed as established in[under the provisions of] other sections of KRS 186.050; and[. This administrative regulation] establishes the recordkeeping standards required for apportionable vehicles, auditing of the records by the Transportation Cabinet, and the appeal procedure if[when] a disagreement occurs.

 

      Section 1. Definitions. (1) "Apportionable vehicle":

      (a) Means a power conveyance that is used or intended for use in two (2) or more International Registration Plan Jurisdictions that is used for the transportation of persons for hire, or designed, used, or maintained primarily for the transportation of property and:

      1. Has two (2) axles and gross vehicle weight or registered gross vehicle weight in excess of 26,000 pounds (11,793.401 kilograms);

      2. Has three (3) or more axles, regardless of weight; or

      3. Is used in combination for a vehicle with a gross weight in which the combination exceeds 26,000 pounds (11,793.401 kilograms); and

      (b) Does not mean a recreational vehicle; a vehicle displaying restricted plates; a bus used for the transportation of chartered parties; a government-owned vehicle, except a truck or truck-tractor or a power conveyance in a combination of vehicles having a gross vehicle weight of 26,000 pounds (11,793.401 kilograms) or less. The vehicle types excluded by this paragraph are usually registered pursuant to a plan at the option of the registrant.["Apportionable vehicle" means any vehicle, except a recreational vehicle, vehicle displaying a restricted plate, a city pickup and delivery vehicle, a bus used in the transportation of a chartered party, or a government-owned vehicle that:

      (a) Is used or intended for use in two (2) or more jurisdictions that allocate or proportionally register vehicles;

      (b) Is used for the transportation of persons for hire or designed, used or maintained primarily for the transportation of property; and

      (c)1. Is a power unit having a gross weight or registered gross weight in excess of 26,000 pounds;

      2. Is a power unit having three (3) or more axles, regardless of weight; or

      3. Is used in combination and the weight of the combination exceeds 26,000 pounds gross vehicle weight.]

      (2) "Base jurisdiction" means the member jurisdiction selected in accordance with the International Registration Plan to which an applicant applies for apportioned registration, or the member jurisdiction that issues apportioned registration to a registrant under the plan[state where:

      (a) The registrant has an established place of business;

      (b) Mileage is accrued by the registrant's fleet; and

      (c) Operational records of the fleet are maintained or can be made available for audit].

      (3) "Established place of business" means a physical structure located within the base jurisdiction:

      (a) Owned, leased, or rented by the fleet registrant;

      (b) Designated by a street number or road location;

      (c) Open during normal business hours;

      (d) In which is located:

      1.[A telephone publicly listed in the name of the registrant;

      2.] A person conducting the fleet registrant's business; and

      2.[3] The operational records of the fleet necessary for audit[or where the records are made available for audit].

      (4) "Fleet" means one (1) or more apportionable vehicles designated by a registrant for distance reporting as established in the International Registration Plan.

      (5) "International Registration Plan" or "IRP" means a registration reciprocity agreement among the states of the United States and provinces of Canada providing for payment of license fees on the basis of total distance operated in all jurisdictions.

      (6) "Jurisdiction" means a country, state, province, territory,[or] possession, or federal district of a country[of the United States, the District of Columbia, or a state, province, or territory of a country].

      (7) "Operational records" means source documents that evidence distance travelled by a fleet in a member jurisdiction such as fuel reports, trip sheets, and driver logs, including those that are generated through on-board recording devices and maintained electronically as required by the IRP Audit Procedures Manual[supporting miles traveled in each jurisdiction and total miles traveled such as fuel reports, trip sheets, and logs.

      Section 2. Governing Material. (1) The "International Registration Plan, With Official Commentary" issued by the International Registration Plan, Inc. shall govern Kentucky's participation in IRP.

      (2) The "Uniform Operational Audit Procedure Guidelines" issued by the Audit Committee of the International Registration Plan, Inc. shall govern:

      (a) The recordkeeping requirements of registrants; and

      (b) The Kentucky Transportation Cabinet's audit responsibilities under the IRP.

      (3) The "Kentucky IRP, Apportioned Registration Manual" issued by the Transportation Cabinet shall be followed by an operator or owner of an apportionable vehicle whose base jurisdiction is Kentucky.

      (4) The "International Registration Plan Policies and Procedures Manual" shall be followed by the Kentucky Transportation Cabinet in administering the apportioned registration program].

 

      Section 2[3]. Application for Apportioned Registration. (1) The operator of an apportionable vehicle operating[who operates] in more than one (1) licensing jurisdiction shall apply for apportioned registration in the jurisdictions of operation that are members of the IRP unless a trip permit has been purchased[of his fleet in those jurisdictions in which he operates and which are members of the International Registration Plan unless he purchases a trip permit from a jurisdiction] for each trip into the jurisdiction.

      (2) A vehicle, or combination of power unit and trailer having a gross vehicle weight of 26,000 pounds or less and two (2) axle vehicles may be apportioned registered at the option of the registrant.

      (3) If Kentucky is the base jurisdiction for an operator of an apportionable vehicle, the operator's established place of business[he] shall apply for the[his] apportioned registration in Kentucky.

 

      Section 3[4]. Apportioned Mileage Reporting and Recordkeeping. (1)(a) The fleet miles required to be reported on Kentucky IRP Apportioned Registration Application Schedule B, TC 95-303B[the application for apportioned registration] shall be the fleet miles traveled from July 1 through June 30 of the year immediately preceding the registration year.

      (b) If the registration year begins on a date in July, August, or September, the reporting period shall be the previous twelve (12) month period.

      (c) The following table is provided for illustration purposes:

First Month of Registration Year

Reporting Period

January, 1975

July 1, 1973 - June 30, 1974

February, 1975

July 1, 1973 - June 30, 1974

March, 1975

July 1, 1973 - June 30, 1974

April, 1975

July 1, 1973 - June 30, 1974

May, 1975

July 1, 1973 - June 30, 1974

June, 1975

July 1, 1973 - June 30, 1974

July, 1975

July 1, 1973 - June 30, 1974

August, 1975

July 1, 1973 - June 30, 1974

September, 1975

July 1, 1973 - June 30, 1974

October, 1975

July 1, 1974 - June 30, 1975

November, 1975

July 1, 1974 - June 30, 1975

December, 1975

July 1, 1974 - June 30, 1975

 

      (d)[(b)] The mileage shall be distributed by jurisdiction. Miles travelled in a jurisdiction by an apportioned power unit[For each jurisdiction], whether or not a member of the International Registration Plan, and[all miles traveled in that jurisdiction by any apportioned power unit,] whether the vehicle is empty or loaded, shall be reported.

      (e)[(c)] The mileage[to be] reported for a[any] motor vehicle power unit that[which] was added to, or deleted from the apportioned fleet during the mileage reporting period shall be the[only those] miles generated while it was part of the apportioned fleet.

      (f)[(d)] Mileage shall include the following:

      1. Loaded and unloaded[unladen] trips;

      2. Intrastate and interstate trips; and

      3. Miles operated under trip permits.

      (2)(a) An apportioned registrant shall maintain operational records for the current registration year and the three (3) registration years immediately prior to the current year.

      (b) The information shall be retained in an individual vehicle mileage record.

      (c) The individual vehicle mileage record shall contain the following information:

      1. Registrant's name and fleet number;

      2. Beginning and ending date of trip;

      3. Trip origin and destination;

      4. Route of travel for trip;

      5. Beginning and ending odometer or hubometer reading of each trip;

      6. Total trip miles and mileage;

      7. Mileage by jurisdiction for each trip;

      8. Vehicle unit number and vehicle identification number; and

      9. Driver's name or signature.

 

      Section 4[5]. Proof of Insurance and Certificate of Apportioned Registration. (1) The applicant shall apply to the appropriate county clerk for a certificate of apportioned registration for each vehicle in the fleet, and a[any other] vehicle to be apportioned registered.

      (2) The county clerk's fee shall be collected as established in KRS 186.040 and 186.050[for the issuance of the certificate shall be twenty (20) dollars for each vehicle].

      (3) A vehicle owned by a non-Kentucky registrant that is properly titled in a foreign jurisdiction and[being] leased to a Kentucky based-motor carrier shall[may] be registered in the name of the Kentucky based-motor carrier with copies of[a copy of] the foreign title,[a copy of the] lease agreement, and[a copy of] the owner's commercial driver's license.

      (4) The applicant shall submit proof of insurance to the county clerk at the time of application[he applies] for the certificate of apportioned registration.

 

      Section 5[6]. Registration Fees. (1)(a) The applicant shall submit an[the] application for apportioned registration to the Department of Vehicle Regulation[for approval. This submission may either be in person or by mail].

      (b) Original or renewal application shall be made by using[on Transportation Cabinet forms]:

      1. Kentucky IRP Apportioned Registration Supplemental Application Schedule C, TC 95-303C[TC 95-1, Kentucky Trucking Application;

      2. TC 95-303E, Schedule C, IRP Apportioned Registration]; and

      2[3]. Kentucky IRP Apportioned Registration Application Schedule B, TC 95-303B[TC 95-303E, Schedule B, IRP Apportioned Registration Application.

      (c) Renewal application shall be made on Transportation Cabinet forms:

      1. TC 95-303E, Schedule C, IRP Apportioned Registration; and

      2. TC 95-303E, Schedule B, IRP Apportioned Registration Application.

      3. The renewal application may be submitted via electronic format using the Kentucky IRP Internet application located at the following Web site: http://oraweb.kytc.state.ky.us/IRP_Applications.htm].

      (c)[(d)] After the Department of Vehicle Regulation has approved an application, the department shall compute the apportioned registration fee due each jurisdiction under the International Registration Plan.

      (d)[(e) The applicant shall be given a bill for registration in all jurisdictions which do not bill the applicant directly.

      (f)] The applicant shall return to the department, either in person or by mail or electronic payment, the bill and a certified check, cashier's check, personal check, business check, or money order made payable to the Kentucky State Treasurer.

      (e)[(g)] If the applicant is required to post a bond as established in[pursuant to] 601 KAR 1:200, Section 6, or has had a personal or business check returned for insufficient funds to the Transportation Cabinet by the applicant’s bank, the [Transportation] cabinet shall[may] require the applicant to make payment by cash, certified check, money order, or cashier’s check.

      (2) The required tax and fee shall be accompanied by proof of payment of the federal heavy vehicle use tax[in accordance with the provisions of 601 KAR 9:115].

      (3)(a) The Department of Vehicle Regulation shall issue an IRP apportioned license plate[,] and IRP cab card to the registrant for each IRP registered vehicle[registered under the provisions of the International Registration Plan].

      (b) The originally issued IRP license plate shall have a decal, indicating the expiration month and year.

      (c) After the yearly renewal[each year,] the registrant shall be issued a new decal designating the year of expiration and a new IRP cab card.

      (d) The IRP cab card shall list the[those] jurisdictions in[to] which the registrant has apportioned his registration fees[and any other information required by the International Registration Plan].

      (e) The original IRP cab card shall be carried in the cab of the vehicle continuously[at all times].

 

      Section 6[7]. Supplemental Applications. (1) An applicant needing to add or delete a vehicle from a fleet[If an applicant need to add to or delete vehicles from its fleet, the department] shall file Kentucky IRP Apportioned Registration Supplemental Application, Schedule C, TC 95-303C with the department[be notified on a supplemental application form TC 95-303E, Schedule C, "Kentucky IRP Apportioned Registration Supplemental Application" or via the Kentucky IRP Internet application located at http://oraweb.kytc.state.ky.us/IRP_Applications.htm]. This form shall be used to provide notice of[the following]:

      (a) A vehicle addition;

      (b) A vehicle deletion;

      (c) A vehicle transfer; or

      (d) A gross weight increase.

      (2)(a) A vehicle deletion notice shall be accompanied by the apportioned registration plate and the IRP cab card[certificate of apportioned registration].

      (b) At the end of the registration month, a registrant may[The registrant may, at the end of the registration month,] apply for a refund of the fees that[taxes which] apply to the unexpired months of the registration year.

      (3)(a) If a vehicle is[being] added by a registrant at the same time[he is deleting] another vehicle with the same weight within the fleet is deleted, the Kentucky registration tax shall[may] be transferred from the deleted to the added vehicle.

      (b) The Kentucky transfer fee of three (3) dollars shall be collected as established in KRS 186.180[shall be two (2) dollars].

      (c) The registrant shall be notified of the transfer fee owed to other jurisdictions.

      (4) If the declared gross weight of the vehicle is[to be] increased, the increased fees[tax owed] shall be prorated from the date the increased weight is allowed.

 

      Section 7[8]. Adding Jurisdictions to IRP Registrations. (1) If the operation of a registrant is[being] expanded to include an additional jurisdiction that[which] participates in the IRP[International Registration Plan], the registrant shall amend the[may amend his] mileage schedule by filing[TC 95-303E, Schedule B,] IRP Apportioned Registration Application, Schedule B, TC 95-303B with the department to reflect an estimate of miles to be operated in the new jurisdiction.

      (2) The mileage percentages for an added jurisdiction shall be computed by adding to the actual mileages previously reported[as added on to the actual mileages earlier reported].

      (3) Percentages approved on the original application shall not be changed during the registration year.

      (4)(a) If an additional jurisdiction is added during the registration year, each vehicle[all vehicles] in the fleet shall be changed to reflect operation in the additional jurisdiction.

      (b) If an IRP cab card is damaged, lost, or destroyed, the Department of Vehicle Regulation shall send a replacement card[IRP cab cards] to the registrant.

      (c) Upon receipt of the new cab cards, the registrant shall return the outdated IRP cab cards to the department.

 

      Section 8[9]. Conversion to Apportioned Registration. (1) If a vehicle is registered in Kentucky as a commercial or limited activity vehicle, and the registrant intends to convert to an apportioned registration, the registrant shall[first] purchase an apportioned registration from the[appropriate] county clerk of residence.

      (2) The current commercial or limited activity license plate shall be submitted to the Department of Vehicle Regulation with the application for apportioned registration.

      (3)(a) The applicant shall be given credit for the remainder of the value of[his] current Kentucky registration.

      (b) This credit shall be applied toward[taxes or] fees due to other IRP jurisdictions and collected by Kentucky on the apportioned registration.

      (4) All[taxes and] fees due to other jurisdictions and a[any additional taxes or] fee due to Kentucky shall be paid in accordance with Section 5[6] of this administrative regulation before the apportioned credentials are[may be] issued.

 

      Section 9[10]. Replacement of Credentials. (1) [If] The owner of a vehicle registered pursuant to KRS 186.050(13)[loses his copy of a certificate of apportioned registration, he] may obtain a duplicate of a lost IRP cab card from the Department of Vehicle Regulation by:

      (a) Filing[an affidavit upon form TC 96-167, "]Affidavit for Replacement or[County/Affidavit] Non-exchange, TC 96-167[- County" furnished by the department]; and

      (b) Paying [to the department] a fee of three (3) dollars as established in KRS 186.180.

      (2)[(a)] A registration plate issued pursuant to KRS 186.050(13) that is lost shall be reported as lost or stolen to the[If the owner loses a registration plate issued him under the provisions of KRS 186.050(13), he shall report the plate as lost or stolen to his] area state police post or local law enforcement agency and the Department of Vehicle Regulation.

      (3)(a) A new certificate of apportioned registration shall be issued by the department after review and acceptance of the completed forms. A new license plate reissued by the department[(b) The enforcement agency shall report the loss in the nationwide computer system for the information of all enforcement agencies.

      (3) The owner of a lost registration plate shall file with the Department of Regulation the following:

      (a) A form TC 96-167, Affidavit for Replacement County/Affidavit for Nonexchange-County;

      (b) His certificate of apportioned registration; and

      (c) A three (3) dollar fee.

      (4)(a) The Department of Vehicle Regulation after review and acceptance of the completed forms shall issue the owner another certificate of apportioned registration and a plate which] shall bear a different number from that of the lost plate.

      (b) The original copy of the surrendered certificate of apportioned registration shall be maintained by the department.

      (4)[(5)] The department shall[forthwith] cancel the registration corresponding to the number of the lost plate[, and the cancellation shall be reported by the department to the Commissioner of the Department of State Police].

      (5)[(6)] A person finding a lost registration plate shall return[deliver] it to the Department of Vehicle Regulation or to a county clerk[for forwarding it to the department].

 

      Section 10[11]. Apportioned Registration of Leased Vehicles. Apportioned registration of a leased vehicle shall be accomplished in one (1) of the following ways:

      (1) (a) If the owner or lessor is the registrant,[The owner or lessor may be the registrant and] the vehicle shall[may] be registered in the name of the owner or lessor.

      (b) The allocation of registration fees shall be based on the operational records of the owner or lessor.

      (c) The apportioned license plate and IRP cab card shall be the property of the lessor.[; or]

      (2) If the lessee is the registrant,[The lessee may be the registrant and] the vehicle shall[may] be registered by the lessee:

      (a) In the lessee’s name;

      (b) In the lessor’s name; or

      (c) In both the owner or lessor’s name and that of the lessee[in both the owner's or lessor's name and that of the lessee].

      (3) The allocation of registration fees shall be based on the operational records of the lessee.

      (4) The apportioned license plate and IRP cab card shall be the property of the lessee.

 

      Section 11[12. Registration Equivalent. (1) Registration of a motor vehicle under the provisions of KRS 186.050(13) and this administrative regulation shall be equivalent to registration of the motor vehicle under the provisions of KRS 186.050(3).

      (2) A privilege afforded a motor vehicle in Kentucky when operating on KRS 186.050(3) registration shall be afforded a motor vehicle in Kentucky when operating on KRS 186.050(13) registration.

Section 13]. Audit of Apportioned Registrants. (1) As required by the IRP, the cabinet's Division of Road Fund Audits shall perform an audit of fifteen (15) percent of the apportioned registrants based in Kentucky every five (5) years[In accordance with the provisions of the International Registration Plan, the Transportation Cabinet, Division of Audit Review shall every five (5) years audit fifteen (15) percent of the apportioned registrants based in Kentucky].

      (2) An audit shall be performed in accordance with the IRP Audit Procedures Manual["Uniform Operational Audit Procedure Guidelines"].

      (3) The Division of Road Fund Audits shall[Audit Review shall in writing] notify the apportioned registrant in writing of the date, time, and location of the audit. [At least] Thirty (30) days['] advance notice shall be given to the registrant.

      (4) Failure of the registrant to make the records required by Section 3 of this administrative regulation available upon request shall:[available records required to be kept by the registrant pursuant to Section 4 of this administrative regulation and requested for the audit may]

      (a) Result in a penalty assessment as established in the IRP Audit Procedures Manual;[of up to 100 percent of Kentucky's registration fees set forth in KRS 186.050 in addition to fees for all other apportioned jurisdictions included in the original application] or

      (b) Cancellation of apportioned registration as established in the IRP.

      (5)(a) An[If it is determined that the registrant's operational records are not located in Kentucky, and it is necessary for the Transportation Cabinet's auditors to travel to where the records are maintained, the registrant shall pay the Transportation Cabinet for the travel expenses incurred by its auditors in accordance with the per diem and travel rates established in 200 KAR 2:006.

      (6)(a) If the audit is being conducted on site, the] auditor shall conduct and document a pre-audit conference with the registrant outlining [the following]:

      1. Operation;

      2. Audit procedures;

      3. Records to be examined;

      4. Sample period; and

      5. Sampling procedures.

      (b) The motor carrier and auditor shall determine at the pre-audit conference who has responsibility for final acceptance of the findings and the persons to[:

1. Has the responsibility for the final acceptance of audit findings; and

2. Should] be involved in the close-out conference.

      (6) An[(7) If the audit is being conducted on site, the] auditor shall conduct and document a close-out conference with the registrant outlining preliminary findings that shall include[to include the following]:

      (a) Applicable penalty and interest;

      (b) Recommendations;

      (c) Rights of appeal; and

      (d) To whom the audit report should be addressed.

      (7)(a)[(8)(a)] The Transportation Cabinet shall furnish the registrant a letter of audit findings and recap schedules.

      (b) If requested, the cabinet shall supply[any] other work papers to the registrant.

      (8)[(9)] If an audit indicates that additional tax is owed, the Transportation Cabinet shall issue a tax due[an audit supplemental tax] statement.

      (9)[(10)] Within forty-five (45) days of the date of the tax due [audit supplemental tax] statement, the registrant shall:

      (a) Pay the supplemental tax; or

      (b) Protest in writing to the Transportation Cabinet, Division of Road Fund Audits[Audit Review].

 

      Section 12[14]. Protest or Appeal of Audit Results. (1)(a) A written protest may be filed by a taxpayer, or a person representing a taxpayer, and shall include a supporting statement, and documents that identify the specific adjustments requested, or the portion of the audit protested, and shall establish the reason for the protest as required by KRS 131.110(1).

      (b) A protest shall be filed with the Transportation Cabinet, Division of Road Fund Audits within forty-five (45) days from the date of the tax due statement.

      (2) If the supporting statements and documentation are not sufficient to change the assessment results, the taxpayer may request an information gathering, or protest conference with the Division of Road Fund Audits in writing by using regular mail, facsimile, or electronic mail.

      (3) Within sixty (60) days from the date the taxpayer submits additional information, or within sixty (60) days of a protest conference, the Division of Road Fund Audits shall issue a final ruling to the taxpayer[(1)The registrant may within forty-five (45) days of the date of the audit findings, protest in writing to the Transportation Cabinet, Division of Audit Review any portion of the audit.

      (2) If the registrant does not protest, the audit or the audit supplemental tax statement shall be final on the beginning of the 46th day.

      (3)(a) If a registrant protests pursuant to this section, the protest shall include a supporting statement and documents which:

1. Identify the:

a. Specific adjustment requested; or

b. Portion of the audit being protested; and

2. Set forth the reason for making the protest.

      (b) If the supporting statement and documents are sufficient to cause the Transportation Cabinet to change the audit or audit supplemental tax statement, the registrant shall be notified of the adjustments to the audit or tax statement.

      (c)1. If the supporting statement and documents are not sufficient to cause the Transportation Cabinet to change the audit or audit supplemental tax statement exactly as requested by the registrant in its protest, the registrant shall be notified to attend an information-gathering and protest conference with the Division of Audit Review.

2. The information-gathering and protest conference shall be scheduled to be held within thirty (30) days of the issuance of the written protest.

3. It may be rescheduled twice by either party.

      (d) Within twenty (20) days of the information-gathering and protest conference the Transportation Cabinet shall issue the final ruling.

      (4) If the registrant desires, he may, within thirty (30) days of the date of the final audit or final audit supplemental tax statement or the Transportation Cabinet's final ruling, appeal to the Kentucky Board of Tax Appeals pursuant to KRS 131.340.

 

      Section 15. Protest or Appeal of Nonaudit IRP Issue. (1) Except for the audit provisions established in Sections 13 and 14 of this administrative regulation, a person aggrieved by an action or decision of the Transportation Cabinet, made pursuant to the provisions of this administrative regulation, shall protest to the Division of Motor Carriers within ten (10) days of the decision.

      (2)(a) If a protest is made pursuant to this section, the protest shall include a supporting statement and documents which:

1. Identify the:

a. Specific adjustments requested; or

b. The action of the Transportation Cabinet being protested; and

2. Set forth the reasons the protest is being made.

      (b) If the supporting statement and documents are sufficient to cause the Transportation Cabinet to change its action or decision, the protestant shall be notified of the change.

      (c) If the supporting statement and documents are not sufficient to cause the Transportation Cabinet to change its action or decision as requested by the protestant, the protestant shall be notified to attend an information-gathering and protest conference with the Division of Motor Carriers. The information-gathering and protest conference shall be scheduled to be held within thirty (30) days of the issuance of the written protest. It may be rescheduled one (1) time by either party.

      (d) Within twenty (20) days of the information-gathering and protest conference, the Transportation Cabinet shall issue a final decision.

      (3)(a) An appeal of any nontax action of the Transportation Cabinet resulting from its actions relating to this administrative regulation shall be in writing and directed to the Transportation Cabinet, Office of General Counsel, 10th Floor, State Office Building, 501 High Street, Frankfort, Kentucky 40622.

      (b) An administrative hearing shall be conducted in accordance with the provisions of KRS Chapter 13B.

      (4) If a protestant desires, he may, within thirty (30) days of the date of the final decision of the Transportation Cabinet, appeal a tax issue to the Kentucky Board of Tax Appeals pursuant to KRS 131.340].

 

      Section 13[16]. Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) "Kentucky IRP Apportioned Registration Application, Schedule B", TC Form 95-303B, November 2006;

      (b) "Kentucky IRP Apportioned Registration Supplemental Application, Schedule C", TC Form 95-303C, June, 2008;

      (c) "Affidavit for Replacement or Non-Exchange", TC Form 96-167, April, 1992;

      (d) "International Registration Plan with Official Commentary", January 1, 2013; and

      (e) "Kentucky IRP Apportioned Registration Policies and Procedures Manual", May, 2012[Transportation Cabinet form TC 95-1, Kentucky Trucking Application, effective September 1998;

      (b) Transportation Cabinet form TC 95-303E, Schedule C, "IRP Apportioned Registration", effective March 2001;

      (c) Transportation Cabinet form TC 96-167, "Affidavit for Replacement-County/Affidavit for Nonexchange-County" effective April 1992;

      (d) "Kentucky IRP, Apportioned Registration Manual" effective January 1, 1999 and issued by the Kentucky Transportation Cabinet;

      (e) "Uniform Operational Audit Procedure Guidelines" effective March 1, 1993 and issued by the Audit Committee of the International Registration Plan, Inc;

      (f) "International Registration Plan, With Official Commentary" effective January 15, 1998 and issued by the International Registration Plan, Inc.;

      (g) "International Registration Plan Policies and Procedures Manual" effective April 1994; and

      (h) Transportation Cabinet form TC 95-303E, Schedule B, IRP Apportioned Registration Application, effective March 2001].

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, as follows:

      (a) For the items incorporated by reference in paragraphs (a), (b), (c), (e), and (f)[(d), (g), and (h)] of this subsection, at the Department of Vehicle Regulation, Division of Motor Carriers, 200 Mero Street, Third Floor, Frankfort, Kentucky 40622, Monday through Friday, 8 a.m. to 4:30 p.m.; or

      (b) For the item[items] incorporated by reference in paragraph (d)[paragraphs (e) and (f)] of this subsection, at the Office of Audits[Department of Fiscal Management], Division of Road Fund Audits, 200 Mero Street, Fourth Floor, Frankfort, Kentucky 40622, Monday through Friday, 8 a.m. to 4:30 p.m.

 

THOMAS O. ZAWACKI, Commissioner

MICHAEL W. HANCOCK, Secretary

D. ANN DANGELO, Office of Legal Services

      APPROVED BY AGENCY: February 10, 2013

      FILED WITH LRC: February 12, 2013 at 11 a.m.

      PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on March 21, 2013 at 11:00 a.m. local time at the Transportation Cabinet, Transportation Cabinet Building, Hearing Room C121, 200 Mero Street, Frankfort, Kentucky 40622. Individuals interested in being heard at this hearing shall notify this agency in writing five (5) working days prior to the hearing, of their intent to attend. If you have a disability for which the Transportation Cabinet needs to provide accommodations, please notify us of your requirement five working days prior to the hearing. This request does not have to be in writing. If no notification of intent to attend the hearing is received by that date, the hearing may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until the close of business April 1, 2013. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

      CONTACT PERSON: D. Ann DAngelo, Asst. General Counsel, Transportation Cabinet, Office of Legal Services, 200 Mero Street, Frankfort, Kentucky 40622, phone (502) 564-7650, fax (502) 564-5238.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

      Contact Person: Ann DAngelo

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation supports the administration of the federal International Registration Plan or "IRP".

      (b) The necessity of this administrative regulation: Amendments to this administrative regulation are required due to an IRP compliance review in 2012.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 186.050 requires the cabinet to promulgate an administrative regulation concerning the registration of motor vehicles pursuant to the IRP. KRS 186.051 requires the cabinet to develop a system of staggered registration time periods.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation will clarify and update the definitions and processes used in registering vehicles pursuant to the IRP.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: These amendments update the definitions section in compliance with IRP requirements; updates division name to Division of Road Fund Audits; updates forms and language to conform with current processes.

      (b) The necessity of the amendment to this administrative regulation: These amendments are required by the IRP compliance review in 2012.

      (c) How the amendment conforms to the content of the authorizing statutes: The amendments update the processes required by KRS 186.013.

      (d) How the amendment will assist in the effective administration of the statutes:

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: This administrative regulation affects approximately 4,500 IRP applicants. Within the cabinet, it affects the IRP Section of the Division of Motor Carriers.

      (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: There will be no changes in how the entities comply with the administrative regulation.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): There amendments do not establish any new costs or fees. IRP membership dues are $19,000.

      (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Entities will know the latest forms and processes. They will now be able to pay interstate registration fees to the base jurisdiction.

      (5) Provide an estimate of how much it will cost the administrative body to implement the administrative regulation: There are no known costs associated with implementing this new administrative regulation.

      (a) Initially:

      (b) On a continuing basis:

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: Road funds.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: There is no need for increased fees or funding.

      (8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees: No fees are established by this regulation either directly or indirectly.

      (9) TIERING: Is tiering applied? No. No distinction is made between the entities that apply to the cabinet.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      (1) What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The Division of Motor Carriers, IRP Section; and the Department of Vehicle Regulation, Division of Road Fund Audits.

      (2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 186.050; 186.051; 49 U.S.C. 31704

      (3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect. There will not be a change in expenditures and revenue.

      (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? The procedures in this administrative regulation generate approximately $60 million annually.

      (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? Revenue will remain constant in subsequent years.

      (c) How much will it cost to administer this program for the first year? No additional costs are required.

      (d) How much will it cost to administer this program for subsequent years? No additional costs are expected.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-):

      Expenditures (+/-):

      Other Explanation: