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TN HB0864

TN HB0864
AN ACT to amend Tennessee Code Annotated, Title 55, Chapter 12 and Title 55, Chapter 4, relative to motor vehicle financial responsibility.


summary

Introduced
02/04/2025
In Committee
02/25/2025
Crossed Over
Passed
Dead

Introduced Session

114th General Assembly

Bill Summary

As introduced, requires evidence of compliance with the financial responsibility law prior to registering vehicles; increases from $25 to $50 the coverage failure fee imposed by the department of revenue for the first failure to comply with the James Lee Atwood Jr. Law; increases that fee to $250 for a second failure to comply and to $500 for a third or subsequent failure to comply; allocates 50 percent of the fees to county clerks. - Amends TCA Title 55, Chapter 12 and Title 55, Chapter 4.

AI Summary

This bill strengthens Tennessee's motor vehicle financial responsibility requirements by implementing several key changes. The legislation mandates that vehicle owners provide proof of insurance before registering or renewing vehicle registration, expanding the acceptable forms of proof to include electronic documentation displayed on mobile devices. The bill increases coverage failure fees for not maintaining required vehicle insurance, with escalating penalties for repeated violations: the first offense will result in a $50 fee (up from $25), the second offense within three years will incur a $250 fee, and the third offense within three years will trigger a $500 fee. These fees will be partially distributed to county clerks, with 20% specifically earmarked for administering the vehicle insurance verification program. The law aims to ensure that all vehicle owners maintain proper insurance coverage, with the goal of enhancing road safety and protecting citizens by reducing the number of uninsured vehicles on Tennessee roads. The provisions will take effect on July 1, 2025, giving stakeholders time to prepare for the new requirements.

Committee Categories

Transportation and Infrastructure

Sponsors (2)

Last Action

Def. to Special Calendar to be Published with Final Calendar in Transportation Committee (on 01/20/2026)

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