Tennessee 2025-2026 Regular Session

Tennessee House Bill HB0864 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2		SENATE BILL 1335
3		-	By ~~Powers~~
	3	+	By Southerland
4	4
5	5		HOUSE BILL 864
6	6		By Hicks T
7	7
8	8
9	9		HB0864
10	10		000872
11	11		- 1 -
12	12
13	13		AN ACT to amend Tennessee Code Annotated, Title 55,
14	14		Chapter 12 and Title 55, Chapter 4, relative to
15	15		motor vehicle financial responsibility.
16	16
17	17		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	18		SECTION 1. Tennessee Code Annotated, Title 55, Chapter 4, Part 1, is amended by
19	19		adding the following as a new section:
20	20		55-4-144.
21	21		(a) The general assembly finds that the Financial Responsibility Law of 1977,
22	22		compiled in chapter 12, part 1 of this title, is of utmost importance to the safety of the
23	23		citizens of this state.
24	24		(b) The commissioner or a county clerk shall not register or renew the
25	25		registration of a motor vehicle, unless the vehicle and its owner have met the
26	26		requirements of this section and the Financial Responsibility Law of 1977 for the
27	27		registration or renewal period. Every registration or renewal of registration must be
28	28		accompanied by the following notice:
29	29		THE OWNER AND/OR OPERATOR OF THIS VEHICLE ARE REQUIRED TO
30	30		MEET THE REQUIREMENTS OF THE TENNESSEE FINANCIAL
31	31		RESPONSIBILITY LAW PURSUANT TO TENNESSEE CODE ANNOTATED, §
32	32		55-4-144.
33	33		(c) For applications for registration or renewal submitted in person, submission
34	34		of the following items constitutes satisfactory proof that a vehicle and its owner have met
35	35		the requirements of the Financial Responsibility Law of 1977, as required by subsection
36	36		(b):
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41	41		(1) Documentation, such as the declaration page of an insurance policy,
42	42		an insurance binder, or an insurance card from an insurance company
43	43		authorized to do business in this state, whether in paper or electronic format,
44	44		stating that a policy of insurance meeting the requirements of the Financial
45	45		Responsibility Law of 1977 has been issued and will be in force throughout the
46	46		motor vehicle's period of registration or renewal; or
47	47		(2) A certificate, valid for one (1) year, issued by the commissioner of
48	48		safety, stating that:
49	49		(A) A cash deposit or bond in the amount required by the
50	50		Financial Responsibility Law of 1977 has been paid or filed with the
51	51		commissioner of revenue; or
52	52		(B) The driver has qualified as a self-insurer under § 55-12-111.
53	53		(d) For purposes of this section, acceptable electronic formats include display of
54	54		electronic images on a cell phone or any other type of portable electronic device.
55	55		(e) If an application for registration or renewal is submitted through a website
56	56		administered by the department or a county clerk, or, if an applicant fails to submit to the
57	57		commissioner or a county clerk proof that the vehicle and its owner have met the
58	58		requirements of the Financial Responsibility Law of 1977 pursuant to subsection (c),
59	59		then the commissioner or the county clerk, as applicable, shall utilize the vehicle
60	60		insurance verification program, as defined in § 55-12-203, and may rely on the
61	61		information provided by the vehicle insurance verification program, for the purpose of
62	62		verifying proof that the vehicle and its owner have met the requirements of the Financial
63	63		Responsibility Law of 1977.
64	64		SECTION 2. Tennessee Code Annotated, Section 55-12-139(b)(2)(A), is amended by
65	65		deleting the language "has been issued;" and substituting instead the following:
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67	67
68	68		- 3 - 000872
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70	70		has been issued and is expected to be in force throughout the motor vehicle's period of
71	71		registration or renewal;
72	72		SECTION 3. Tennessee Code Annotated, Section 55-12-210(a)(2), is amended by
73	73		deleting "twenty-five-dollar coverage failure fee" and substituting instead "fifty-dollar coverage
74	74		failure fee" and by deleting "The notice described in subdivision (a)(1)" and substituting instead
75	75		"Subject to subsection (h), the notice described in subdivision (a)(1)".
76	76		SECTION 4. Tennessee Code Annotated, Section 55-12-210(b)(1)(A), is amended by
77	77		deleting the subdivision and substituting instead:
78	78		(A) Subject to subsection (h), impose on the owner of the motor vehicle a fifty-
79	79		dollar coverage failure fee. Of this fee, twenty-five dollars ($25.00) must be distributed
80	80		to the county clerk of the county in which the motor vehicle is registered, five dollars
81	81		($5.00) must be distributed to the department of safety, and the remainder must be
82	82		deposited into the uninsured motorist identification restricted fund created in § 55-12-
83	83		213. Twenty percent (20%) of the revenue distributed to the county clerk must be
84	84		earmarked for the county clerk's work in administration of the vehicle insurance
85	85		verification program and must not revert to the county general fund at the end of the
86	86		budget year if unexpended, and the remainder of the revenue distributed to the county
87	87		clerk must be retained by the clerk and handled in the same manner as all other fees
88	88		collected by the clerk for the clerk's benefit.
89	89		SECTION 5. Tennessee Code Annotated, Section 55-12-210, is amended by adding
90	90		the following new subsection:
91	91		(h)
92	92		(1) If an owner of a motor vehicle becomes eligible for a second notice as
93	93		described in subsection (a) within three (3) years from the date of the first notice
94	94		the department issued to the owner under subsection (a), then the coverage
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96	96
97	97		- 4 - 000872
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99	99		failure fee imposed pursuant to subdivision (b)(1)(A) is two hundred fifty dollars
100	100		($250). Of this fee, one hundred twenty-five dollars ($125) must be distributed to
101	101		the county clerk of the county in which the motor vehicle is registered, fifty dollars
102	102		($50.00) must be distributed to the department of safety, and the remainder must
103	103		be deposited into the uninsured motorist identification restricted fund created in §
104	104		55-12-213. Twenty percent (20%) of the revenue distributed to the county clerk
105	105		must be earmarked for the county clerk's work in administration of the vehicle
106	106		insurance verification program and must not revert to the county general fund at
107	107		the end of the budget year if unexpended, and the remainder of the revenue
108	108		distributed to the county clerk must be retained by the clerk and handled in the
109	109		same manner as all other fees collected by the clerk for the clerk's benefit.
110	110		(2) If an owner of a motor vehicle becomes eligible for a third notice as
111	111		described in subsection (a) within three (3) years from the date of the second
112	112		notice the department issued to the owner as described in subdivision (h)(1),
113	113		then the coverage failure fee imposed pursuant to subdivision (b)(1)(A) is five
114	114		hundred dollars ($500). Of this fee, two hundred fifty dollars ($250) must be
115	115		distributed to the county clerk of the county in which the motor vehicle is
116	116		registered, one hundred dollars ($100) must be distributed to the department of
117	117		safety, and the remainder must be deposited into the uninsured motorist
118	118		identification restricted fund created in § 55-12-213. Twenty percent (20%) of the
119	119		revenue distributed to the county clerk must be earmarked for the county clerk's
120	120		work in administration of the vehicle insurance verification program and must not
121	121		revert to the county general fund at the end of the budget year if unexpended,
122	122		and the remainder of the revenue distributed to the county clerk must be retained
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127	127		by the clerk and handled in the same manner as all other fees collected by the
128	128		clerk for the clerk's benefit.
129	129		SECTION 6. This act takes effect July 1, 2025, the public welfare requiring it.