(a) A consolidated local government organized under KRS Chapter 67C; or
(b) An urban-county government organized under KRS Chapter 67A.
(2) Notwithstanding any other provision of this chapter, a local government that complies with the requirements of this section may be granted authority over the regulation of taxicabs in that local government's jurisdiction.
(3) A local government that desires to regulate taxicab service within its jurisdiction shall:
(a) Adopt a resolution by October 1 of any given year expressing its intent to exercise regulatory authority over taxicabs and requesting that the Transportation Cabinet grant the local government regulatory authority over taxicabs; and
(b) Enact an ordinance by January 1 of the following year pursuant to subsection (4) of this section and submit it to the cabinet for approval pursuant to subsection (5) of this section.
(4) A local government that desires to regulate taxicab service within its jurisdiction shall adopt an ordinance regarding the regulation of taxicabs which addresses the following areas of public comfort, safety, and convenience:
(a) A local taxicab permit system to ensure the safety and road worthiness of each taxicab as outlined in Section 2 of this Act, including inspection requirements, out-of-service criteria, and penalties for submitting fraudulent service records. All taxicabs operated under this section shall be required to be registered and display registration plates under the provisions of KRS Chapters 186 and 186A;
(b) A local taxicab driver permit system to ensure the fitness of drivers, including criminal background checks, display of permits, and revocation or suspension of local driver permits. All drivers of taxicabs operated under this section shall be required to possess a motor vehicle operator's license under the provisions of KRS Chapter 186;
(o) Penalties for the operation of unlicensed taxicabs, and for any other violations.
(5) Before granting a local government's request to regulate taxicab service, the cabinet shall review the ordinance passed by the local government and determine that the required elements of subsection (4) of this section are properly addressed. If the cabinet determines that the ordinance meets the requirements of subsection (4) of this section, the cabinet shall grant regulatory authority over taxicab service in that jurisdiction to the local government.
(6) If, at any time, the cabinet determines that a local government granted regulatory control over taxicab service under this section is not providing adequate control over that service, the cabinet may revoke the regulatory authority it granted to the local government under this section.
SECTION 2. A NEW SECTION OF KRS CHAPTER 281 IS CREATED TO READ AS FOLLOWS:
(1) As used in this section, "taxicab" means a vehicle operating under:
(a) A local taxicab permit issued by a local government in accordance with Section 1 of this Act;
(b) A city taxicab certificate issued by the department under this chapter; or
(c) A county taxicab certificate issued by the department under this chapter.
(2) All taxicabs operating under a permit issued by a local government in accordance with Section 1 of this Act or a certificate issued by the department under this chapter shall undergo an annual safety inspection. The inspection shall be performed by an automotive technician who holds a valid automotive service excellence (a.s.e.) certification recognized by the department.
(3) All taxicab operators shall, when applying for or renewing a taxicab permit or certificate, file proof with the department or local government that each taxicab to be operated under the permit or certificate has successfully passed a safety inspection. The inspection shall be performed by an automotive technician who holds a valid automotive service excellence (a.s.e.) certification recognized by the department.
(4) A local government with regulatory authority under Section 1 of this Act shall enact an ordinance and the department shall promulgate administrative regulations under KRS Chapter 13A to establish safety and out-of-service criteria for a taxicab that it regulates that fails to successfully pass the annual safety inspection required by subsection (2) of this section. The department or local government shall immediately reinstate a taxicab taken out-of-service under this subsection upon receipt of written proof documenting that the deficiencies causing the taxicab to fail the annual safety inspection have been corrected.
(5) The department or local government shall have the authority to revoke the taxicab certificate or permit of, and to permanently deny a taxicab certificate or permit to, any person who willfully and intentionally files a fraudulent safety inspection record for any taxicab.
SECTION 3. A NEW SECTION OF KRS CHAPTER 281 IS CREATED TO READ AS FOLLOWS:
If the Transportation Cabinet grants a local government regulatory authority over taxicabs under Section 1 of this Act, the local government shall grant an existing certificate holder a local taxicab permit for the number of vehicles the certificate holder has in effect on the date the local government is granted regulatory authority, provided the vehicles meet the safety requirements outlined in Section 2 of this Act. Renewal of the permit shall be subject to the local ordinance passed pursuant to Section 1 of this Act.
Section 4. KRS 138.446 is amended to read as follows:
(1) City and suburban bus companies and taxicab companies operating under a certificate of convenience and necessity issued pursuant to KRS Chapter 281, taxicab companies regulated by a consolidated local government organized under KRS Chapter 67C or by an urban-county government organized under KRS Chapter 67A, holders of a nonprofit bus certificate as provided by KRS 281.619, and senior citizen programs which utilize Title III funds of the Older Americans Act in the provision of transportation services shall be entitled to a refund of seven-ninths (7/9) of the amount of KRS Chapter 138 taxes paid on motor fuels used in their regularly scheduled operations in Kentucky.
(2) No person shall be entitled to a refund pursuant to this section unless he shall have first filed with the cabinet a bond issued by a surety company authorized to do business in Kentucky in an amount of not less than one thousand dollars ($1,000) nor more than five thousand dollars ($5,000) to be determined by the cabinet, conditioned upon faithful compliance with this section and upon the payment to the Commonwealth of any refunds to which he was not entitled.
(3) Applications for refund shall be filed with the cabinet on a calendar quarter or calendar year basis on forms and in the manner prescribed by it for refund of tax paid on motor fuel used by buses or taxicabs. Each application for a refund shall show the number of gallons of motor fuel purchased during the quarter for use in buses or taxicabs; the date and quantity of each purchase; the vendor from whom the fuel was purchased; the number of gallons on which refund is claimed; and other information the cabinet may require. Invoices shall be attached to applications from taxicab companies.
(4) The cabinet may require any gasoline dealer or any dealer's authorized agent to identify gasoline sold by him for taxicab use by adding any chemical or substance, which shall be furnished by the cabinet and used in the manner as prescribed by the cabinet. The cabinet also may require that the dealer keep a complete record of all the gasoline sold by him, which records shall give the date of each sale, the number of gallons sold, the name of the person to whom sold, and the sale price.
(5) The cabinet shall audit the application and make any other investigation it deems necessary to determine whether it constitutes a proper claim. When the cabinet is satisfied that a refund is proper, it shall authorize seven-ninths (7/9) of the amount of the tax paid to be refunded as other refunds are made and the amount refunded shall be deducted from current motor fuel tax receipts. The tax shall be refunded with interest at the tax interest rate as defined in KRS 131.010(6).
(6) When the cabinet finds that an application for a refund contains a false or fraudulent statement or that a refund has been fraudulently obtained, the cabinet shall refuse to grant any refunds to the person making the false or fraudulent statement or fraudulently obtaining a refund for a period of two (2) years from the date of the findings.
(7) The cabinet may prescribe, promulgate and enforce administrative regulations relating to the administration and enforcement of this section.
(8) The refund provided for in this section shall be effective on motor fuel purchased on or after July 1, 1978.