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TN SB0608

TN SB0608
AN ACT to amend Tennessee Code Annotated, Title 55, relative to motor vehicles.


summary

Introduced
01/31/2025
In Committee
Crossed Over
03/02/2026
Passed
05/05/2026
Dead
Signed/Enacted/Adopted
05/18/2026

Introduced Session

114th General Assembly

Bill Summary

As enacted, prohibits the motor vehicle commission from denying an application for a license, or revoking or suspending the license, of a manufacturer, distributor, distributor branch or factory branch or officer, agent or other representative because such person has failed to deliver motor vehicles within 60 days of a dealer's order due to an act of God, a work stoppage or delay due to a strike or other labor action, a lack of available manufacturing capacity, a freight embargo, or other cause or material issue over which the person has no control; makes related changes. - Amends TCA Title 55.

AI Summary

This bill modifies Tennessee law concerning motor vehicle manufacturers and dealers by prohibiting the Motor Vehicle Commission from penalizing manufacturers, distributors, or their representatives for failing to deliver vehicles within 60 days of a dealer's order if the delay is due to unavoidable circumstances like acts of God, labor disputes, lack of manufacturing capacity, or freight embargoes, with the manufacturer bearing the burden of proof for these exceptions. Additionally, the bill adds several protections for dealers, preventing manufacturers from unfairly forcing dealers to relocate or make significant, unreasonable facility upgrades, dictating specific vendors for construction or alterations unless the dealer's chosen vendor meets quality standards and the manufacturer isn't paying for it, requiring redundant facility upgrades within a decade unless for health, safety, or essential technology, imposing unfair or unequally applied performance standards, or using arbitrary and discriminatory systems for allocating new vehicles, and requiring manufacturers to disclose the basis for vehicle allocation upon a dealer's written request.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Effective date(s) 05/05/2026 (on 05/18/2026)

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