Title 601 | Chapter 012 | Regulation 130
SUPERSEDED
This document is no longer current.
PREVIOUS VERSION
The previous document that this document is based upon is available.
TRANSPORTATION CABINET
Department of Vehicle Regulation
Division of Driver Licensing
(Amendment)
601 KAR 12:130.Third-party issuance of identity documents.
Section 1.
Definitions.(1)
"Cabinet" means the Transportation Cabinet.(2)
"Identity document" means an operator's license or personal identification card issued under KRS 186.4102, 186.412, 186.4121, 186.4122, or 186.4123.(3)
"Third-party entity" means a person or entity, including a business entity or nonprofit member association, that has received approval from the Cabinet to process identity documents. A "third-party entity" does not include any governmental entity other than the Cabinet.Section 2.
Application. Any third-party entity seeking to issue identity documents pursuant to KRS 186.400 to 186.640 shall apply by completing TC form 94-207 and submitting to Division of Driver Licensing. The Cabinet shall have twenty (20) working days to process and approve or disapprove an application.Section 3.
Approval. The Cabinet reserves the right to approve or disapprove any application based upon review of properly completed and duly filed TC form 94-207, Application for Third-Party IssuerSection 4.
Revocation. The Cabinet reserves the right to revoke any approved application for cause. Grounds for cause shall include the following:(1)
Failure to maintain ADA compliant facilities, including first aid stations, parking, reception areas, and restrooms;(2)
Failure to maintain trained personnel and equipment to handle work-flow and customer service needs;(3)
Failure to request and maintain background checks on all employees that access the system;(4)
Failure to follow all requirements for issuance of identity documents;(5)
Improper issuance of identity documents to persons not entitled to receive a legal identity document;(6)
Failure to maintain all necessary business insurances to include liability, workers compensation, unemployment insurance, or other costs of doing business such as failure to deduct and pay all necessary local, state, federal taxes and fees;(7)
Failure to collect all fees as set forth in KRS 186.531 and transmit the same to the Cabinet;(8)
Failure to maintain all requirements for a business in good standing with the Commonwealth;(9)
Failure to report breach of security or improper issuance of identity documents within one (1) hour of actual notice of occurrence;(10)
Failure to suspend and remove an employee who is found to be engaging in breach of security or illegal activities; and(11)
As a condition of participation, each approved third-party issuer shall, prior to activation or issuance authority, maintain cybersecurity liability insurance in the amount of $500,000, including coverage for data breaches and unauthorized disclosure of information.Section 5.
Appeals. If an application is denied or a previously approved application is revoked, the Cabinet shall notify the third-party entity in writing the cause of the denial, or revocation. The third-party shall have thirty (30) days to file an appeal by written appeal to the Commissioner of the Department of Vehicle Regulation at 200 Mero Street, Frankfort, Kentucky 40622. Appeals shall be pursuant to KRS Chapter 13B.Section 6.
Site Closure or Non-renewal of Certificate. For a site closure or non-renewal of operating certificate, all leased equipment obtained for identity document issuance including any printer, camera, computer hardware or software, scanner shall be returned within thirty (30) days to the Department of Vehicle Regulation located at 200 Mero Street, Frankfort, Kentucky 40622. A third-party issuer shall notify KYTC immediately of any site closure, including providing a list of all staff associated with the site closure.Section 7.
Incorporation by Reference.(1)
"Application for Third-Party Issuer(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Transportation Cabinet Office Building, Department of Vehicle Regulation, 2nd Floor, 200 Mero Street, Frankfort, Kentucky 40622, Monday through Friday, 8:00 a.m. to 4:30 p.m.(3)
This material is also available on Transportation Cabinet's Web site at drive.ky.gov.FILED WITH LRC: August 11, 2026
CONTACT PERSON: Jon Johnson, Staff Attorney Manager/Assistant General Counsel, Transportation Cabinet, Office of Legal Services. 200 Mero Street, Frankfort, Kentucky 40622; phone (502) 564-7650, fax (502) 564-5238, email jon.johnson@ky.gov.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
. KRS Chapter 186A. The Agency Amendment has no impact on the fiscal impact statement.
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
This administrative regulation is required to comply with the requirements of 2025 RS SB 43, Section 4. This administrative regulation is also being promulgated to meet a deadline established by 2025 legislation. The Agency Amendment has no impact on the fiscal impact statement.
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
Kentucky Transportation Cabinet, local governments. There is not any revenue or savings to KYTC for this initiative. The Agency Amendment has no impact on the fiscal impact statement.
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
$258,000
For subsequent years:
Costs should remain subject to personnel changes and increases in personnel costs.
2. Revenues:
For the first year:
N/A
For subsequent years:
N/A
3. Cost Savings:
For the first year:
N/A
For subsequent years:
N/A
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
None. The Agency Amendment has no impact on the fiscal impact statement.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
N/A
For subsequent years:
N/A
2. Revenues:
For the first year:
N/A
For subsequent years:
N/A
3. Cost Savings:
For the first year:
N/A
For subsequent years:
N/A
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
N/A The Agency Amendment has no impact on the fiscal impact statement.
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
N/A
For subsequent years:
N/A
2. Revenues:
For the first year:
N/A
For subsequent years:
N/A
3. Cost Savings:
For the first year:
N/A
For subsequent years:
N/A
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
Negligible. The Agency Amendment has no impact on the fiscal impact statement.
(b) Methodology and resources used to reach this conclusion:
Based on past performance and information gathered studying numerous jurisdictions. The Agency Amendment has no impact on the fiscal impact statement.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
(b) The methodology and resources used to reach this conclusion:
Based on past performance and information gathered studying numerous jurisdictions. The Agency Amendment has no impact on the fiscal impact statement.
TRANSPORTATION CABINET
Department of Vehicle Regulation
Division of Driver Licensing
(Amendment)
601 KAR 12:130.Third-party issuance of identity documents.
Section 1.
Definitions.(1)
"Cabinet" means the Transportation Cabinet.(2)
"Identity document" means an operator's license or personal identification card issued under KRS 186.4102, 186.412, 186.4121, 186.4122, or 186.4123.(3)
"Third-party entity" means a person or entity, including a business entity or nonprofit member association, that has received approval from the Cabinet to process identity documents. A "third-party entity" does not include any governmental entity other than the Cabinet.Section 2.
Application. Any third-party entity seeking to issue identity documents pursuant to KRS 186.400 to 186.640 shall apply by completing TC form 94-207 and submitting to Division of Driver Licensing. The Cabinet shall have twenty (20) working days to process and approve or disapprove an application.Section 3.
Approval. The Cabinet reserves the right to approve or disapprove any application based upon review of properly completed and duly filed TC form 94-207, Application for Third-Party Issuer of Identity Documents. If the third-party entity is approved they shall comply with all relevant administrative regulations and policies of the Cabinet. This shall include collecting all fees as set forth in KRS 186.531. An approved application shall allow the approved third-party entity to process identity documents for three (3) calendar years starting from the date of approval. Third-party entities shall enter into an annual lease agreement for necessary equipment and shall agree to perform all KYTC actions on designated KYTC hardware while using KYTC networks. After application approval, KYTC shall work to complete all necessary setup tasks within six (6) months.Section 4.
Revocation. The Cabinet reserves the right to revoke any approved application for cause. Grounds for cause shall include the following:(1)
Failure to maintain ADA compliant facilities, including first aid stations, parking, reception areas, and restrooms;(2)
Failure to maintain trained personnel and equipment to handle work-flow and customer service needs;(3)
Failure to request and maintain background checks on all employees that access the system;(4)
Failure to follow all requirements for issuance of identity documents;(5)
Improper issuance of identity documents to persons not entitled to receive a legal identity document;(6)
Failure to maintain all necessary business insurances to include liability, workers compensation, unemployment insurance, or other costs of doing business such as failure to deduct and pay all necessary local, state, federal taxes and fees;(7)
Failure to collect all fees as set forth in KRS 186.531 and transmit the same to the Cabinet;(8)
Failure to maintain all requirements for a business in good standing with the Commonwealth;(9)
Failure to report breach of security or improper issuance of identity documents within one (1) hour of actual notice of occurrence;(10)
Failure to suspend and remove an employee who is found to be engaging in breach of security or illegal activities; and(11)
As a condition of participation, each approved third-party issuer shall, prior to activation or issuance authority, maintain cybersecurity liability insurance in the amount of $500,000, including coverage for data breaches and unauthorized disclosure of information.Section 5.
Appeals. If an application is denied or a previously approved application is revoked, the Cabinet shall notify the third-party entity in writing the cause of the denial, or revocation. The third-party shall have thirty (30) days to file an appeal by written appeal to the Commissioner of the Department of Vehicle Regulation at 200 Mero Street, Frankfort, Kentucky 40622. Appeals shall be pursuant to KRS Chapter 13B.Section 6.
Site Closure or Non-renewal of Certificate. For a site closure or non-renewal of operating certificate, all leased equipment obtained for identity document issuance including any printer, camera, computer hardware or software, scanner shall be returned within thirty (30) days to the Department of Vehicle Regulation located at 200 Mero Street, Frankfort, Kentucky 40622. A third-party issuer shall notify KYTC immediately of any site closure, including providing a list of all staff associated with the site closure.Section 7.
Incorporation by Reference.(1)
"Application for Third-Party Issuer of Identity Documents", TC 94-207, (07/2026 Edition), Transportation Cabinet, is incorporated by reference.(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Transportation Cabinet Office Building, Department of Vehicle Regulation, 2nd Floor, 200 Mero Street, Frankfort, Kentucky 40622, Monday through Friday, 8:00 a.m. to 4:30 p.m.(3)
This material is also available on Transportation Cabinet's Web site at drive.ky.gov.FILED WITH LRC: August 11, 2026
CONTACT PERSON: Jon Johnson, Staff Attorney Manager/Assistant General Counsel, Transportation Cabinet, Office of Legal Services. 200 Mero Street, Frankfort, Kentucky 40622; phone (502) 564-7650, fax (502) 564-5238, email jon.johnson@ky.gov.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
. KRS Chapter 186A. The Agency Amendment has no impact on the fiscal impact statement.
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
This administrative regulation is required to comply with the requirements of 2025 RS SB 43, Section 4. This administrative regulation is also being promulgated to meet a deadline established by 2025 legislation. The Agency Amendment has no impact on the fiscal impact statement.
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
Kentucky Transportation Cabinet, local governments. There is not any revenue or savings to KYTC for this initiative. The Agency Amendment has no impact on the fiscal impact statement.
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
$258,000
For subsequent years:
Costs should remain subject to personnel changes and increases in personnel costs.
2. Revenues:
For the first year:
N/A
For subsequent years:
N/A
3. Cost Savings:
For the first year:
N/A
For subsequent years:
N/A
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
None. The Agency Amendment has no impact on the fiscal impact statement.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
N/A
For subsequent years:
N/A
2. Revenues:
For the first year:
N/A
For subsequent years:
N/A
3. Cost Savings:
For the first year:
N/A
For subsequent years:
N/A
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
N/A The Agency Amendment has no impact on the fiscal impact statement.
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
N/A
For subsequent years:
N/A
2. Revenues:
For the first year:
N/A
For subsequent years:
N/A
3. Cost Savings:
For the first year:
N/A
For subsequent years:
N/A
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
Negligible. The Agency Amendment has no impact on the fiscal impact statement.
(b) Methodology and resources used to reach this conclusion:
Based on past performance and information gathered studying numerous jurisdictions. The Agency Amendment has no impact on the fiscal impact statement.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
(b) The methodology and resources used to reach this conclusion:
Based on past performance and information gathered studying numerous jurisdictions. The Agency Amendment has no impact on the fiscal impact statement.