Create new sections of KRS Chapter 67 to define "owner," "code enforcement board," "county," "camera monitoring system," "recorded images," and "stop arm camera violation"; permit the legislative body of a county to enact an ordinance to authorize the use of camera monitoring systems by a local school district and permit the enforcement of a civil penalty for a stop arm camera violation recorded by a camera monitoring system; permit the legislative body of a county to enter into an interlocal agreement to implement and enforce such ordinances; provide that a legislative body shall set the amount of the civil penalty; provide that the revenue generated from a civil penalty shall be retained by the county; require specific notice for a stop arm camera violation; require the legislative body of a county to designate a form for a stop arm camera violation; establish defenses to a stop arm camera violation; define the procedures for a contest to a stop arm camera violation; require a recipient of a stop arm camera violation to pay or contest the violation within 60 days; allow for suspension of registration for failure to pay a fine; require a county to notify the Transportation Cabinet of the need to release a suspension within one business day of payment; amend KRS 189.990 to increase the maximum fine from $200 to $300 for the first offense of failing to stop for a school bus or church bus that is receiving or discharging passengers; amend KRS 189.370 to require traffic in the opposite direction of a school bus to stop for a school bus on highways that are not divided by a raised barrier or unpaved median.