KY HB162

Transfers responsibility for accepting applications for operator's licenses, instruction permits, and personal identification cards from the Transportation Cabinet to circuit clerks in each county, with clerks electronically transmitting applications and documents to the cabinet for processing and final issuance

Creates a new fee distribution structure where a portion of license and ID card fees is deposited into a newly established Circuit Court clerk salary account to fund additional deputy circuit clerks and salary adjustments

Requires circuit clerks to administer oaths to applicants, capture photographs, perform vision testing for renewals, and remit collected fees to the cabinet by the third business day of each month, with a 10% penalty for late remittances

Maintains the Transportation Cabinet's authority to issue final identity documents, promulgate regulations, verify applicant information through national databases, and process appeals of circuit clerk decisions to deny applications

Takes effect July 1, 2027, and authorizes circuit clerks to maintain branch offices for processing identity document applications