HB 972 - SB 1068
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 22, 2025
Fiscal Analyst: Arielle Woodmore | Email: arielle.woodmore@capitol.tn.gov | Phone: 615-741-2564
HB 972 - SB 1068
SUMMARY OF BILL: Revises the requirements of the electronic portal the Department of
Revenue (DOR) is required to create and implement that allows a law enforcement agency or
garagekeeper to input abandoned vehicle information for public notice. Details nine capabilities that
the portal must have. Authorizes DOR to contract with a third-party service provider to create and
implement the portal. Requires the procurement process for the portal to begin no later than July 1,
2025, and the implementation of the portal to begin no later than, July 1, 2026. Requires the portal
user fee the DOR can charge a police department or other user must be charged in an amount to
cover the cost of creating, administering and maintaining the portal. Prohibits DOR from charging a
fee for conducting a public search on the portal. Requires the Commissioner of DOR to notify the
public and the Tennessee Code Commission when the motor vehicle portal is operational.
Removes the authorization for a local government to pass an ordinance specifically opting to be
governed by the Modernization of Towing, Immobilization, and Oversight Normalization (MOTION) Act.
Prohibits any person from booting a motor vehicle. Expands the conditions for which a person is
authorized to tow a motor vehicle without the written authorization of the owner. Requires a person
towing a motor vehicle to report specific information to the motor vehicle portal once it is
operational. Establishes that a violation of this section is a violation of the Consumer Protection Act of
1977. Makes technical changes to the signage requirements in commercial parking lots. Establishes
requirements for commercial parking lot owners seeking to charge penalties for nonpayment of
parking fees.
Establishes protocol for law enforcement agencies to verify the owner of a motor vehicle, provide
the ownership information to specified parties, and notify the owners of a motor vehicle that has
been taken into custody, before and after the motor vehicle portal is operational. Requires any
person who takes possession of a motor vehicle, other than a law enforcement agency or other
public agency, to immediately report the information to DOR until the motor vehicle portal is
operational. Eliminates the requirement to advertise a motor vehicle for auction in the newspaper,
and requires the public sale notice to be posted on the online motor vehicle portal.
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FISCAL IMPACT:
STATE GOVERNMENT
REVENUE General Fund
FY25-26 $400,000
EXPENDITURES General Fund
FY25-26 $400,000
LOCAL GOVERNMENT
EXPENDITURES Mandatory
FY25-26 $400,000
Article II, Section 24 of the Tennessee Constitution provides that: no law of general application shall impose increased expenditure
requirements on cities or counties unless the General Assembly shall provide that the state share in the cost.
Assumptions:
• Pursuant to Tenn. Code Ann. § 55-31-310, DOR is required to create and implement an
electronic database or online platform that, on and after July 1, 2025, allows a police
department or another user to input abandoned, immobile, or unattended vehicle
information for public notice to be made through the motor vehicle portal.
• The proposed legislation revises and expands the requirements of the portal and establishes
functional requirements the portal must have, including real-time access to information,
automated notifications to vehicle owners, and integration with third-party systems, and
delays implementation to July 1, 2026.
• Based on information provided by the DOR, there will be a one-time increase in state
expenditures of $400,000 to contract with a third-party vendor to create the expanded
electronic database.
• Pursuant to Tenn. Code Ann. § 55-31-310(b), on and after July 1, 2025, the DOR may
charge a police department or another user of the portal a fee to cover the cost of creating
and administering the motor vehicle portal.
• The proposed legislation requires such fee be charged in an amount to cover the cost of
creating, administering and maintaining the portal.
• Based on U.S. Department of Justice data, there are 363 law enforcement agencies in
Tennessee.
• DOR will charge a one-time fee to law enforcement agencies at a rate necessary to pay costs
associated with implementing the database resulting in a one-time increase in mandatory
local government expenditures of $400,000 and corresponding increase in state revenue of
$400,000 in FY25-26.
• Committing an unfair or deceptive practice under the Consumer Protection Act of 1977 is a
Class B misdemeanor offense.
• Any increase in the number of complaints handled by the AG is estimated to be not
significant and can be handled by existing staff during normal work hours.
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• There will not be a sufficient number of prosecutions for state or local government to
experience any significant increase in revenue or expenditures.
IMPACT TO COMMERCE:
BUSINESS IMPACT
FISCAL YEAR REVENUE
FY25-26 $400,000
OTHER COMMERCE IMPACT
The precise impact on operations of businesses providing vehicle booting and towing services
cannot be determined with reasonable certainty.
Assumptions:
• The proposed legislation will significantly impact operations of businesses providing vehicle
booting and towing services by enacting various reporting requirements to law enforcement
agencies and the online motor vehicle portal.
• However, due to multiple unknown factors including the number of companies currently
operating and the extent to which the proposed legislation will impact operations of such
companies, the precise impact to jobs and commerce in Tennessee cannot reasonably be
estimated.
• There will be a one-time increase in business revenue of $400,000 in FY25-26 resulting
from DOR paying a third-party vendor to create the database.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director