(a) A TNC shall collect a local assessment fee equal to one percent of the gross trip fare for all prearranged rides that originate in the state in accordance with this article.

(b)(1) No later than 30 days after the end of each calendar quarter, a TNC shall submit to the commission all of the following:

a. The total local assessment fees collected by a TNC.

b. For prearranged rides that originated within a municipality, a report listing the percentage of the gross trip fare that originated in each municipality during the reporting period.

c. For prearranged rides that originated outside a municipality, a report listing the percentage of the gross trip fare that originated in the unincorporated portion of each county during the reporting period.

(2) The TNC shall be responsible for determining whether a prearranged ride originated within the boundaries of a municipality or originated within the unincorporated portion of a county.

(c) To ensure proper distribution of the local assessment fee, the commission shall prepare and make available for public use Geographic Information System (GIS) data in the form of a file showing the state's county and municipal boundaries. To the extent the commission updates the GIS file, the commission shall notify TNCs and make available to TNCs the updated GIS file. In addition to the requirements of this section, municipalities shall provide annexation information to the commission within 30 days after the annexation is complete. Such information shall include a written description of the boundary, along with a map or plat that clearly defines the new territory added.

(d) The local assessment fees submitted to the commission shall be administered by the commission and may only be expended as provided in this section. The commission may retain an amount necessary to cover the expenses derived from regulation of TNCs and the collection, remittance, and distribution of local assessment fees pursuant to this section, provided the amount retained may not exceed 50 percent of the total local assessment fees collected.

(e) No later than 60 days after the end of each calendar quarter, the commission shall distribute the local assessment fees collected for the preceding calendar quarter, minus the amount retained pursuant to subsection (d), to each municipality where a prearranged ride originated and to each county where a prearranged ride originated in the unincorporated portion of the county, during that calendar quarter. The distribution shall be proportionate to the percentage of the gross trip fare that originated in each applicable municipality and unincorporated portion of a county.

(f) No more than every two years, the commission may request that a TNC engage an independent third party auditor to verify the local assessment fees submitted to the commission pursuant to subdivision (1) of subsection (b) are accurate. The TNC that is subject to the audit shall engage the independent third party auditor, which shall be selected at the sole discretion of the TNC, and bear all costs associated with the third party audit. The independent third party auditor must be a certified public accounting firm licensed in the state and qualified to perform engagements in accordance with American Institute of Certified Public Accountants standards. The TNC shall provide the commission with a copy of the third party audit report within 15 days of completion, which shall in no event occur later than 90 days after receipt of the commission's written request. The third party audit shall be limited to two calendar quarters that may be selected by the commission. If any underpayment of over three percent is identified through the audit, the TNC shall remit the underpaid local assessment fees to the appropriate municipality or county.

(g) The governing body of a municipality that enacted a TNC ordinance prior to January 1, 2018, and permitted at least one TNC to operate prior to January 1, 2018, pursuant to the TNC ordinance, may request the commission to review the portions of a third party audit report provided to the commission pursuant to subsection (f) that are applicable to the municipality. If no third party audit report is available for a TNC from the prior two-year period at the time of the governing body's request, the governing body that enacted a TNC ordinance prior to January 1, 2018, and permitted at least one TNC to operate prior to January 1, 2018, may request the commission to initiate an audit pursuant to subsection (f).

(h) Any record maintained by a TNC or submitted to the commission or a political subdivision of the state pursuant to this section shall be considered tax information and may not be disclosed, as provided in subsection (a) of Section 40-2A-10, except as otherwise provided in this section.