SB 492 – HB 1023
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 17, 2025
Fiscal Analyst: Natalie Dusek | Email: natalie.dusek@capitol.tn.gov | Phone: 615-741-2564
SB 492 – HB 1023
SUMMARY OF BILL: Requires an enforcement officer to issue an out-of-service order to a
driver with a commercial driver license (CDL) if the officer determines during a safety inspection
that the driver is unable to read and speak the English language sufficiently to converse with the
general public, to understand highway traffic signs and signals, to respond to official inquiries, and to
make entries on reports and records as required by federal law.
Requires the Department of Safety (DOS) to develop and administer an English language
proficiency test to assess such capabilities, and to reinstate a driver’s CDL upon passing such test.
Creates a Class C misdemeanor offense, punishable only by a fine of $500, for any employer of a
driver whose license is suspended for lack of English language proficiency.
For purposes of promulgating rules and developing the English language proficiency test, effective
upon becoming a law. For all other purposes, effective January 1, 2026.
FISCAL IMPACT:
OTHER FISCAL IMPACT
According to the Department of Transportation and Department of Safety, passage of the proposed
legislation could jeopardize significant Federal Highway Administration Funds to the Department
of Transportation, and Motor Carrier Safety Assistance Program Funds to the Department of Safety
in FY25-26 and subsequent years.
The Department of Safety will require software updates in order to integrate a new out-of-service
order into the existing system. It is assumed the updates can be accomplished by the relevant
vendor under the current contractual agreement. If, however, the relevant provisions of that
agreement are exhausted by this legislation and other legislation subsequently enacted, the
department could incur an increase in expenditures of approximately $100,000 in FY25-26.
Assumptions:
• Pursuant to Tenn. Code Ann. § 55-50-403, it is prohibited for an employer to knowingly
permit an employee to operate a commercial motor vehicle under certain circumstances,
including in which the employee’s license has been suspended, revoked, or cancelled or the
employee is subject to an out-of-service order.
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• Pursuant to 49 CFR § 391.11(b)(2), a person is not qualified to drive a commercial motor
vehicle unless the person can read and speak the English language sufficiently to converse
with the general public, understand highway traffic signs and signals in the English
language, to respond to official inquiries, and to make entries on reports and records.
• According to the Department of Transportation (TDOT), a violation of such requirement
is not a reason for which the state could issue an out-of-service order.
• Based on information provided by TDOT and DOS, passage of the proposed legislation
may result in a violation of federal regulations governing CDLs. Particularly, the DOS
asserts that the state may be found to be circumventing the Federal Motor Carrier Safety
Administration’s authority to regulate interstate commerce.
• Pursuant to 49 CFR § 384.401, an amount up to four percent of federal-aid highway funds
shall be withheld from a state on the first day of the fiscal year following such state’s first
year of noncompliance. An amount up to eight percent of the federal-aid highway funds
shall be withheld from a state on the first day of the fiscal year following such state's second
or subsequent year(s) of noncompliance.
• Based on information provided by TDOT, the total amount of Federal Highway
Administration (FHWA) funds to be received in FY26-27 is estimated to be
$1,324,489,000. The proposed effective date is January 1, 2026, which is halfway through
FY25-26. It is assumed that four percent, or $26,489,980 [($1,324,489,000 x 4%) x 50% FY]
could be withheld in FY25-26 and that eight percent, or $105,959,120 ($1,324,489,000 x
8%) could be withheld in FY26-27 and subsequent years for noncompliance.
• Based on information provided by the DOS, the department received $10,658,842 from the
Motor Carrier Safety Assistance Program for FY24-25. If such funds are withheld, the DOS
will need to increase state expenditures by $5,329,421 ($10,658,842 x 50%) in FY25-26 and
$10,658,842 in FY26-27 and subsequent years.
• The proposed legislation also requires DOS to develop an English language proficiency test
based on requirements in 49 CFR 391.11(b)(2) and administer the test to drivers whose
licenses have been suspended. The driver may have their license reinstated upon passage of
the test.
• It is assumed the DOS can develop and administer an English language proficiency test
within existing resources.
• Any fiscal impact to the DOS related to the suspension and reinstatement of CDLs is
estimated to be not significant.
• According to the DOS, the department would require software updates in order to integrate
a new out-of-service order into the existing system. The DOS was unable to provide an
estimate for how much those updates may cost.
• It is assumed that such changes could be accomplished by the relevant vendor under the
current contractual agreement. If, however, the relevant provisions of that agreement are
exhausted by this legislation and other legislation subsequently enacted, it is reasonably
assumed that the DOS could incur an increase in expenditures estimated to be $100,000 in
FY25-26.
• There is not estimated to be a significant increase in revenue to the DOS or local
governments related to fines associated with the Class C misdemeanor offense.
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CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director