(1) Applications for registration of motor vehicles leased or owned by a county, city, urban-county, or board of education, or emergency and ambulance vehicles operated by nonprofit corporations organized by units of government in the state or by the state or federal government shall be submitted to the county clerk, who shall enter the application into AVIS and issue a registration receipt and the official license plate described in KRS 186.240. If the cabinet subsequently determines the registration should not have processed under this section, it may revoke the registration. For providing the services, the entity requesting the registration under this section shall pay the fees described in KRS 186.040.
(2) After the issuance of a license plate under subsection (1) of this section, no subsequent registration or renewal shall be necessary so long as the vehicle is leased or owned by the governmental unit, except in the case of loss or destruction of the license plate. In the event of loss or destruction of the license plate, the license plate shall be replaced in the same manner as if no plate had ever been issued.
(3) When a motor vehicle leased or owned by an entity allowed to use an official plate under this section is transferred or sold to another governmental unit, a new license plate shall be issued for the vehicle in the same manner as provided for in subsection (1) of this section and shall have the same effect as given to such license plates in subsection (2) of this section.
(4) A person shall not use any license plate that has been issued for use on a motor vehicle leased or owned by a governmental unit on a motor vehicle that is not leased or owned by an entity allowed to use an official plate under this section.
(5) Notwithstanding the provisions of KRS 186.020 and 186.050, a governmental entity which leases a motor vehicle may have that vehicle equipped with an official plate under this section. Upon termination of the lease agreement, if ownership of the motor vehicle does not revert to an entity allowed to use an official plate under this section, the owner of the motor vehicle shall surrender the official plates and apply for registration under the provisions of KRS 186.050.