TOURISM, ARTS AND HERITAGE CABINET

Department of Fish and Wildlife Resources

(Amendment)

 

††††† 301 KAR 5:020. License agent requirements and responsibilities.

 

††††† RELATES TO: KRS 150.175[150.195], 150.990

††††† STATUTORY AUTHORITY: KRS 150.195

††††† NECESSITY, FUNCTION, AND CONFORMITY: KRS 150.195[(4)] authorizes the department to promulgate administrative regulations governing the issuance of licenses. This administrative regulation establishes the requirements for issuing licenses,[and] electronically reporting license sale data and license revenue, and[; details the procedures for] suspending or revoking license agent status[; and specifies the methods for appealing a suspension or revocation of agent status].

 

††††† Section 1. Issuing Licenses. (1) A license agent shall[may] issue a license or permit to a person who completes the registration process with[provides] the agent and pays the appropriate license or permit fee pursuant to 301 KAR 3:022[with:

††††† (a) His date of birth; and

††††† (b) An identification number, which shall be:

††††† 1. A driverís license number;

††††† 2. A state identification card number;

††††† 3. A Social Security number; or

††††† 4. If the purchaser is under age sixty-five (65) and buying a senior/disabled license, the number from an unexpired disability authorization card issued to the person to whom the license is issued and proof of Kentucky residency; or

††††† 5. If the purchaser is age sixty-five (65) or over and buying a senior/disabled license, proof of age and Kentucky residency].

††††† (2) A license agent shall not knowingly enter false information while processing a license. [(3) A license agent may issue a junior hunting license if the parent or guardian of the license recipient signs the license at the time of purchase.]

 

††††† Section 2. Agent Commission and Depositing of Funds. (1) The license agent shall retain as a commission:

††††† (a) Fifty (50) cents for each Peabody[or Addington Enterprises-Robinson Forest] permit issued pursuant to 301 KAR 4:100; and[or 301 KAR 4:200.]

††††† (b) Fifty (50) cents each for other transactions.

††††† (2) A license agent shall promptly deposit transaction fees, less the commissions established[described] in subsection (1) of this section, into the bank account established in[required by] 301 KAR 5:010.

††††† (3) A license agent may elect to print, on any license or permit issued, a coupon or advertisement, pursuant to a department sponsorship established in KRS 45A.097, in lieu of retaining the applicable commissions established in subsection (1) of this section.

 

††††† Section 3.[Uploading License Sale Information. (1) The department shall provide each license agent a schedule of dates when license sale information will be uploaded from his POS device.

††††† (2) A license agent shall:

††††† (a) Ensure his POS device is connected to a telephone line on the date of the scheduled upload;

††††† (b) Leave the POS device connected to the telephone line until the upload has been completed;

††††† (c) Retain the receipts printed with each transaction until notified by the department; and

††††† (d) Telephone the department within twenty-four (24) hours if the amount of funds to be transferred, as reported by the POS device, does not agree with the license agentís records.

 

††††† Section 4.] Electronic Transfer of Funds to the Department. (1) The department shall provide each license agent with a schedule of dates when[an] electronic fund transfers[transfer from his bank account] will be initiated.

††††† (2)[At the close of banking hours] On the day of a[the] scheduled electronic fund transfer, a license agent shall have sufficient funds in the[his] account to cover the amount of the transfer.

††††† (3) A license agent shall contact the department prior to the day of a scheduled electronic fund transfer if there are any discrepancies or concerns that need to be resolved.

 

††††† Section 4[5]. Voiding Licenses. (1) A license agent may void a license if:

††††† (a) The license does not print correctly; or

††††† (b) After the license is printed, the purchaser:

††††† 1. Discovers that the issued license is incorrect[he was issued an incorrect license];

††††† 2. Will not pay for the license; or

††††† 3.[Otherwise] Refuses to accept the license.

††††† (2) An agent shall:

††††† (a) Ensure that a license established in subsection (1) of this section is voided in the system; and

††††† (b) Destroy all paper copies of the voided license or permit[retain all voided licenses and return them to the department as stipulated in Section 6 of this administrative regulation].

 

††††† Section 5.[6. Materials Retained and Returned to the Department. (1) A license agent shall retain:

††††† (a) A voided license;

††††† (b) Kentucky Migratory Bird Harvest Information Program Form as referenced in 301 KAR 5:040; and

††††† (c) Ruined or unusable license stock.

††††† (2) A license agent shall return the materials listed in this section to the department on the working day after each scheduled or unscheduled upload of information.

††††† (3) The department shall charge the license agent for a voided license not returned as stipulated in subsection (2) of this section, and shall not issue credit for a voided license returned later than (30) days after the upload in which the void was reported.

 

††††† Section 7.] Suspensions and Revocation of Agent Status. (1) In addition to any penalties provided by KRS 150.990, and except as established in subsection (2) of this section, the department shall suspend for one (1) to five (5) years[year] a license agent who twice in a twelve (12) month period:

††††† (a) Causes an electronic fund transfer failure; or

††††† (b) Violates a provision of:

††††† 1.[The agent agreement;

††††† 2.] KRS 150.195; or

††††† 2.[3.] An administrative regulation adopted pursuant to KRS 150.195.

††††† (2) The department shall permanently revoke the agent status of a license agent who:

††††† (a) Commits[for the second time] an offense for which the license agent[he] has been previously suspended;

††††† (b) Does not deposit the required funds in his agent bank account within twenty-four (24) hours of notification by the department of insufficient funds;

††††† (c) Fails to notify the department prior to closing his agent bank account;

††††† (d) Closes his business seasonally without notifying the licensing section supervisor in writing by surface mail, fax or e-mail and settling his account; or

††††† (e) Knowingly issues a license containing false information[; or

††††† (f) Fails to notify the department within twenty-four (24) hours of discovering the loss or theft of a POS device or paper stock].

††††† (3) Before issuing a final order suspending or revoking the status of an agent, the department shall:

††††† (a) Notify the agent by registered mail that the agentís[his] status is under review; and

††††† (b) Afford the agent the opportunity for an informal meeting with the commissioner or his designee to show cause why his agent status should not be suspended or revoked.

††††† (4) A suspension or revocation shall become effective upon receipt of notification from the department.

††††† (5) A suspended or revoked agent shall:

††††† (a)[Surrender upon demand the POS devices and license stock in his possession to an authorized agent of the department;

††††† (b)] Allow the department access to financial records dealing with license sales; and

††††† (b)[(c)] Immediately pay all funds owed to the department.

 

††††† Section 6[8]. Appeal of Suspension or Revocation of Agent Status. (1) A license agent who wishes to appeal a suspension or revocation shall request a hearing in writing, postmarked or delivered in person to the department no later than ten (10) days after notification of suspension or revocation.

††††† (2) Upon receipt of the request for a hearing, the department shall conduct a suspension or revocation hearing pursuant to KRS Chapter 13B and KRS 150.195.

††††† (3) The hearing officerís findings of fact, conclusions of law, and recommended order shall be considered by the departmentís commission at the commission meeting immediately following the deadline for the partiesí exceptions pursuant to KRS Chapter 13B.

††††† (4) The departmentís commission shall issue a final order pursuant to KRS Chapter 13B[:

††††† (a) Appoint a hearing officer qualified to conduct hearings under the provisions of KRS Chapter 13B; and

††††† (b) Schedule a hearing to be held:

††††† 1. Prior to the next regularly scheduled meeting of the commission, if the request for a hearing is received more than thirty (30) days before the scheduled commission meeting; or

††††† 2. Within thirty (30) days, if the request for a hearing is received within thirty (30) days of the next scheduled commission meeting.

††††† (3) The hearing officer shall conduct the hearing and present his recommendation at the commission meeting immediately following the hearing date.

††††† (4) At the hearing, the license agent:

††††† (a) May be represented by counsel; and

††††† (b) May present evidence which he feels should be considered, including the calling of witnesses.

††††† (5) The department may present evidence and call witnesses to support the suspension or revocation.

††††† (6) The commission shall make its decision by majority vote.

††††† (7) An agent may appeal a decision of the commission to Franklin Circuit Court pursuant to KRS 150.195.

††††† (8) The department shall conduct suspension or revocation hearings according to the provisions of KRS Chapter 13B].

 

GREGORY K. JOHNSON, Commissioner

DON PARKINSON, Secretary

††††† APPROVED BY AGENCY: November 13, 2017

††††† FILED WITH LRC: November 15, 2017 at noon

††††† PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on December 21, 2017 at 9 a.m. at the Department of Fish and Wildlife Resources in the Commission Room of the Arnold L. Mitchell Building, #1 Sportsmanís Lane, Frankfort, Kentucky. Individuals interested in attending this hearing shall notify this agency in writing by five business days prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who attends 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 not wish to attend the public hearing, you may submit written comments on the proposed administrative regulation through December 31, 2017. Send written notification of intent to attend the public hearing or written comments on the proposed administrative regulation to:

††††† CONTACT PERSON: Mark Cramer, Department of Fish and Wildlife Resources, Arnold L. Mitchell Building, #1 Sportsman's Lane, Frankfort, Kentucky 40601, phone (502) 564-3400, fax (502) 564-0506, email fwpubliccomments@ky.gov

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Mark Cramer

††††† (1) Provide a brief summary of:

††††† (a) What this administrative regulation does: This administrative regulation establishes the requirements for issuing licenses and permits, electronically reporting license sale data and license revenue, and for suspending or revoking license agent status.

††††† (b) The necessity of this administrative regulation: This regulation is necessary to provide the minimum requirements for the license agent registration process, license agent commissions and depositing of license funds, and for suspending or revoking license agent status.

††††† (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 150.195 authorizes the department to promulgate administrative regulations governing the issuance of licenses and permits.

††††† (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation will assist in the effective administration of the statute by establishing minimum requirements for license agents wishing to sell department licenses and permits.

††††† (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: This amendment will update the delivery of license and permits using a new web-based license system. The old language dealing with the terminal-based system and its requirements needed to be removed and replaced. The amendment also covers the capabilities of the new system as well as addressing the license agent commission process.

††††† (b) The necessity of the amendment to this administrative regulation: It is necessary for the department to update the delivery of license and permits to the public by incorporating new and updated technology and establishing the requirements for the new system.

††††† (c) How the amendment conforms to the content of the authorizing statutes: See 1(c) above.

††††† (d) How the amendment will assist in the effective administration of the statutes: See 1(d) above.

††††† (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Department license agents throughout the state will be affected by this administrative regulation. Currently, there are approximately 750 license agents in Kentucky.

††††† (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:

License agents will be required to modify their public delivery platform by using new technology established in a web-based, computer generated license system rather than using the old point-of-sale terminal-based system.

††††† (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): License agents will be required to use their own computer with internet capability and their own paper. The cost is dependent on their initial investment in their computer.

††††† (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Agents will gain the ability to advertise their business by generating a coupon or other incentive through a department sponsorship.

††††† (5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

††††† (a) Initially: There was a minimal initial cost, as the system was designed, developed, and implemented by current agency staff.

††††† (b) On a continuing basis: By providing the agents with flexibility via a sponsorship coupon or advertisement platform within the system, the department will actually reduce costs associated with the administration of this program on a continuing basis.

††††† (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: The source of funding is the state Game and Fish fund.

††††† (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 will not be an increase in fees associated with this amendment.

††††† (8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees: This administrative regulation does not establish any fees directly or indirectly.

††††† (9) TIERING: Is tiering applied? Tiering is not applied because all license agents are treated equally.

 

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 Departmentís Administrative Services Division will be impacted.

††††† (2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 150.195

††††† (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.

††††† (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? It is unlikely that this amendment will generate additional revenue for the first year.

††††† (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? This amendment may generate some additional revenue in subsequent years if license agents waive their applicable license and permit commissions in lieu of coupons or department sponsorships.

††††† (c) How much will it cost to administer this program for the first year? It will not cost the department any additional funds to administer this program for the first year.

††††† (d) How much will it cost to administer this program for subsequent years? It will not cost the department any additional funds to administer this program in subsequent years.

††††† 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: