Senate Bill 818 aims to regulate transportation network companies in Tennessee by establishing a licensing requirement for drivers. Under the new provisions, individuals must obtain a transportation network license from the Department of Commerce and Insurance before operating as a ride-hail driver in the state. To qualify for this license, applicants must possess a valid Tennessee driver license, with an exception for residents of Desoto County, Mississippi, and Crittenden County, Arkansas, who can obtain a license by proving their residency. The license will be valid for one year, and the department will create a system for online renewals. Additionally, the bill stipulates that drivers without a valid license are prohibited from accepting rides originating in Tennessee, and transportation network companies cannot authorize such drivers to operate.

The bill also introduces penalties for transportation network companies that violate these regulations, imposing a civil penalty of $1,000 per violation. If a company is found to have multiple violations that demonstrate willful disregard for the law, the commissioner of commerce and insurance may suspend or revoke the company's operating privileges in Tennessee. The Department of Commerce and Insurance is tasked with promulgating rules to implement this act, which will take effect upon becoming law for rule-making purposes, while the remaining provisions will take effect on January 1, 2026.