This bill makes various changes to the Tennessee Financial Responsibility Law of 1997 (the "Financial Responsibility Law") and the Uniform Classified and Commercial Driver License Act, as described below.
Present law provides the following in regard to the suspension of registrations upon suspension or revocation of a driver license:
(1) Whenever the commissioner of safety suspends or revokes the license of a person by reason of a conviction, the commissioner of safety must request that the commissioner of revenue suspend or revoke all registrations in the name of that person and those registrations must be suspended or revoked immediately. However, the registrations in the name of that person must not be suspended, unless otherwise required by law, if that person has previously given or immediately gives and maintains for three years, proof of financial responsibility;
(2) Prior to the issuance of a restricted license, the licensee must give and maintain, for the duration of the license's suspension or revocation, proof of financial responsibility;
(3) When the person's license or registrations, or both, are restored after suspension or revocation, the person is required to give, and must maintain for three years, proof of financial responsibility, pay a $100 restoration fee, and pass the driver license examination as a condition precedent to the restoration of the license. Present law requires a person convicted of driving on a revoked license, when the original suspension or revocation was made for a violation of an offense not requiring mandatory revocation, to pay a $65.00 restoration fee. Upon restoration of a person's license, present law requires the commissioner of safety to request that the commissioner of revenue reinstate the person's registration and, upon payment of registration fees, that registration must be reinstated immediately;
(4) Present law requires a Tennessee resident who moves to another state during the period of a cancellation, suspension, or revocation in this state to be deemed in compliance when certification is received by the department that financial responsibility laws have been met in the new state, and upon meeting all other requirements and conditions for reinstatement of driving privileges in this state. If the person becomes a Tennessee resident again and reapplies for a Tennessee driver license, the requirements for regaining driving privileges must be the same as any other resident; and
(5) Under present law, when a driver licensed in another state applies for a Tennessee driver license, and a cancellation, suspension, or revocation action from the former state is in effect, the department may issue a Tennessee driver license to the driver as if the original action had been taken in this state.
This bill alters the above provisions by:
(1) Changing the last sentence of (1) so that the registrations in the person's name must not be suspended or revoked, unless otherwise required by law, if the person provides and maintains proof of financial responsibility for the length of the license's revocation or suspension, instead of for three years;
(2) Removing from (3) the requirements that upon restoration of a person's license, the person must give and maintain for three years proof of financial responsibility and pass the driver license exam as a condition precedent to restoration of the license; and adds an exception to the requirement that a person pay a $100 restoration fee, which states that if the person was convicted of driving on a revoked license and the original suspension or revocation was made for a violation of an offense not requiring mandatory revocation, then the person is only required to pay a $65.00 restoration fee. This bill also adds to (3), that if the person's license has been expired, revoked, or suspended for more than one renewal cycle, then the person must pass the driver license examination; and clarifies that payment of the appropriate restoration fee and, if applicable, passage of the driver license examination, are conditions precedent to the restoration of the license;
(3) Adding the requirement that a person must provide proof of financial responsibility, prospectively for a length of time equal to the length of time for which the suspension or revocation was in effect, to reinstate a driver license after suspension or revocation, if the person was not issued a restricted license or was not eligible for a restricted license. This bill additionally provides that a person who is not eligible for a restricted license is allowed to provide proof of financial responsibility during the person's revocation or suspension period to satisfy this requirement, and a person who provides proof of financial responsibility during the entire suspension or revocation period is not required to provide proof of financial responsibility to reinstate a driver license; and
(4) Removing (5).
MINIMUM DURATION OF PROOF REQUIREMENT
Generally, under present law, where a person is required to give proof of financial responsibility, the proof must be maintained for a period of three years by that person. If a person elects to use a policy of insurance and financial responsibility insurance certificate as proof of financial responsibility, then the effective date on the certificate is the date upon which financial responsibility has been proven. This bill alters the above requirement by changing the amount of time that proof of financial responsibility must be maintained from three years to the period of the suspension or revocation.
Present law requires a person whose license or registration, or both, have been suspended for failure to maintain evidence of financial responsibility, upon reapplying for an operator's license, to refile and maintain with the commissioner evidence of financial responsibility, pay a $65.00 restoration fee, and pass the driver license examination. This bill provides that a person does not need to pass the driver license exam if the license has been expired, revoked, or suspended for less than one renewal cycle.
This bill authorizes, beginning January 1, 2024, a person who was subject to the requirements of proof of financial responsibility prior to January 1, 2024, to petition the department of safety to reduce the time that remains for the person to comply with the proof requirements. If the person has not been convicted of an additional offense requiring the suspension or revocation of a license by the department; has no outstanding suspension, revocation, cancellation, or other prohibition on the person's license; and does not have an unsatisfied judgment based on a motor vehicle accident, then this bill requires the department to grant the reduction.
SUSPENSION OF LICENSE FOR FAILURE TO COMPLY WITH THE FINANCIAL RESPONSIBILITY LAW
Present law requires the commissioner of safety, upon receipt of a record of conviction of failing to show evidence of financial responsibility, to suspend the driver license of the person convicted of this offense. Present law authorizes the person to obtain reinstatement of the person's driver license by meeting the following requirements:
(1) Submitting evidence of financial responsibility;
(2) Paying the fee for reinstatement; and
(3) Successfully passing a driver license examination.
This bill removes the requirement that person must successfully pass a driver license exam to obtain reinstatement, and adds that after satisfying the requirements of (1) and (2), the person is entitled to the return of operating privileges, unless otherwise suspended or revoked pursuant to laws governing motor and other vehicles.
DURATION OF SUSPENSION OR REVOCATION
Present law requires, where proof of financial responsibility is required, the license and registration to remain suspended or revoked and to not be renewed, and prohibits any license from being thereafter issued to the person and a motor vehicle from being registered in the name of the person, until permitted under the motor vehicle laws of this state and not then until the operator provides and maintains for three years, proof of financial responsibility, pays a $65.00 restoration fee, and passes the driver license examination as a condition precedent to the restoration of the license. This bill changes the amount of time that a licensee is required to maintain proof of financial responsibility from three years to the duration of the license's suspension or revocation.
DURATION OF NONRESIDENT'S SUSPENSION OR REVOCATION FOR FAILURE TO FILE PROOF OF FINANCIAL RESPONSIBILITY FOLLOWING CONVICTION
Under present law, whenever, by reason of a conviction, the commissioner of safety suspends or revokes a nonresident's operating privileges in this state, or requests that the commissioner of revenue suspend or revoke that person's registration privileges, the privileges must remain suspended or revoked until that person provides, and maintains for three years, proof of financial responsibility, and pays a $65.00 restoration fee. This bill removes the requirement that the person provide and maintain proof of financial responsibility for three years and, instead, requires the person to maintain proof for the period of the revocation or suspension.
PROOF OF FINANCIAL RESPONSIBILITY REQUIRED ON FINAL JUDGMENT
Under present law, upon receipt of a certified copy of final judgment, the commissioner of safety is required to immediately revoke the operator's license of any resident of this state and any nonresident's operating privileges in this state against whom judgment is rendered, if the judgment is not paid within 60 days from the date of final judgment, and no restriction as to time based on the commissioner's authority elsewhere in financial responsibility law can be a bar to that action under the authority of this provision, as long as any judgment paid to the extent of the limits of financial responsibility is considered paid. Immediately upon request by the commissioner of safety, present law requires the commissioner of revenue to revoke all motor vehicle registrations of a resident or nonresident against whom the judgment is rendered, if the judgment is not paid within 60 days from the date of final judgment. However, this provision does not apply if the parties to the judgment submit on or before the date of revocation, proof satisfactory to the commissioner that the parties have entered into an agreement satisfactory to all parties concerning the payment of their damages.
Present law also requires a license or registration revoked under the provision above to remain revoked until it is stayed, until it is satisfied in full as to the extent outlined in the above provision, and until the person provides and maintains proof of financial responsibility, pays a $100 restoration fee for reinstatement, and passes a driver license examination as a condition precedent to the restoration of such privileges. This bill provides that a person does not need to pass the driver license exam if the license has been expired, revoked, or suspended for less than one renewal cycle.
RELEASE OF PROOF REQUIREMENT
As it pertains to provisions regarding the durations of suspension or revocation for failure to file proof of financial responsibility, after five years from the date of revocation, present law authorizes the department of safety, in its own discretion or upon request of the person required to furnish proof of financial responsibility, to release the requirement of that proof, if the records of the department of safety establish that the person, during the preceding five-year period, has not been convicted of an offense authorizing or requiring the suspension or revocation of a license or registration by the department of safety, or by the department of revenue, and has not suffered suspension, revocation, prohibition, or cancellation of license or registration upon order of the department or a court arising from a conviction of a violation of the law. If the department of safety releases the requirement that a person furnish proof of financial responsibility, and that person's registration has been suspended or revoked due to failure to furnish that proof, then present law requires the commissioner of safety to request that the commissioner of revenue reinstate the person's registration and, upon payment of registration fees, the registration must be reinstated immediately. However, this provision does not apply if there is an unsatisfied judgment based on a motor vehicle accident.
This bill removes from these provisions the condition that five years from the date of revocation must have passed before the department of safety is allowed to release a person's requirement to provide proof of financial responsibility, and, instead, authorizes the department to do so after the period of suspension or revocation, as long as the department's records establish that during the suspension or revocation period, the person was not convicted of an additional offense authorizing or requiring the suspension or revocation of the person's license, nor was the person's license suspended, revoked, prohibited, or canceled due to a separate violation of law.
CANCELLATION OF A BOND OR POLICY
Present law requires the commissioner of safety to, upon request, consent to the immediate cancellation of a bond or certificate of insurance; or to direct, and the state treasurer must return to the person entitled thereto, money deposited as proof of financial responsibility; or the commissioner must waive the requirement of filing proof, in the following events:
(1) After three years from the date the proof was required when, during the three-year period preceding the request, the commissioner has not received record of a conviction that would require or permit the suspension or revocation of the license, registration, or nonresident's operating privilege of the person by or for whom the proof was furnished;
(2) In the event of the death of the person on whose behalf the proof was filed or the permanent incapacity of the person to operate a motor vehicle; or
(3) If the license of a person who has given proof is surrendered to the commissioner of safety and the person's registration is surrendered to the commissioner of revenue.
This bill changes the timing component of (1) from "three years from the date the proof was required, when during the three-year period preceding the request" to after "expiration of the period of suspension or revocation if, during the period of suspension or revocation,"; and adds to (1) the condition that the person maintain the bond, certificate of insurance or deposit for the entire period of suspension or revocation.
Present law prohibits the commissioner of safety from consenting to the cancellation of any bond or return of money in the event an action for damages, upon a liability covered by the proof, is then pending or a judgment upon the liability is then unsatisfied; or in the event the person who has filed the bond or deposited the money has, within three years preceding the request, been involved as the owner or operator in any motor vehicle accident resulting in injury or damage to the person or property of others. Present law provides that an affidavit of the applicant as to the nonexistence of these facts, or that the applicant has been released from all liability, or has been finally adjudicated not to be liable for such injury or damage, is sufficient evidence in the absence of evidence to the contrary in the commissioner's records. This bill changes the "within three years preceding the request" element to "within the preceding suspension or revocation period".
If a person whose proof has been canceled or returned under (1) applies to the commissioner of safety for a license within a period of three years from the date that proof was originally required, then present law requires the commissioner of safety to refuse the application and to request that the commissioner of revenue refuse a registration application, unless the applicant reestablishes the proof for the remainder of the three-year period. This bill rewrites the above provision to provide that if a person whose proof has been canceled or returned under (1) applies to the commissioner of safety for a license within the period of suspension or revocation, instead of within a period of three years, when proof was originally required, then present law requires the commissioner of safety to refuse the application and to request that the commissioner of revenue refuse a registration application, unless the applicant reestablishes the proof for the remainder of the suspension or revocation, instead of a three-year period.
After three years from the date of revocation, present law authorizes the department to, upon its own discretion or upon request of the person required to furnish proof of financial responsibility, release the requirement of this proof if the records of the department establish that the person, during the preceding three-year period, has not been convicted of any offense authorizing or requiring the suspension or revocation of a license by the department and has not suffered suspension, revocation, prohibition, or cancellation of license arising from a conviction of a violation of the law. However, this provision does not apply in any case where there is an unsatisfied judgment based on a motor vehicle accident.
This bill removes from the above condition that three years from the date of revocation must have passed before the department of safety is allowed to release a person's requirement to provide proof of financial responsibility, and, instead, authorizes the department to do so after the expiration of the period of suspension or revocation, as long as the department's records establish that during the suspension or revocation period, the person was not convicted of an additional offense authorizing or requiring the suspension or revocation of the person's license, nor was the person's license suspended, revoked, prohibited, or canceled due to a separate violation of law.
TENNESSEE ONLY DRIVE LICENSES
This bill prohibits the department of safety from issuing a new Tennessee-only license, or reinstating a suspended or revoked Tennessee-only driver license, on or after January 1, 2024.
This bill provides that a valid Tennessee-only driver license issued on or before December 31, 2023, remains valid until its expiration, unless otherwise revoked or suspended under the motor and other vehicle laws of this state.
To receive a Tennessee driver license that can be used to operate a motor vehicle outside of this state, this bill requires a person who held a Tennessee-only license that is suspended, revoked, or expired to meet all applicable driver license issuance requirements as set out in the Uniform Classified and Commercial Driver License Act of 1988.
APPLICABILITY
This bill applies to violations occurring on or after January 1, 2024.

Statutes affected:
Introduced: 55-12-114, 55-12-126, 55-12-109(c), 55-12-109, 55-12-115(b)(2), 55-12-115, 55-12-116, 55-12-117, 55-12-118(c), 55-12-118, 55-12-125, 55-50-303