Senate Bill 1667 amends various sections of the Tennessee Code Annotated related to motor vehicle financial responsibility. A significant change includes the addition of a new subsection to Section 55-12-211, which stipulates that the Department of Revenue or county clerks cannot process applications for vehicle registration until the owner provides proof of insurance that is valid for at least 30 days. The bill also increases the coverage failure fee from $25 to $500 and establishes a new $1,000 continued coverage failure fee, with specific allocations of these fees to county clerks and the Department of Safety. Additionally, if an owner receives a second notice of coverage failure within three years, a $1,500 repeated coverage failure fee will apply.

Furthermore, the bill introduces a new chapter that limits the recovery of noneconomic damages in civil actions for bodily injury or property damage to plaintiffs who were not in compliance with financial responsibility requirements at the time of the incident. However, exceptions are made for defendants who were driving under the influence or engaged in other serious offenses. The bill also allows for the use of electronic displays on highways to remind the public of financial responsibility requirements. The changes outlined in Sections 1 through 8 will take effect on July 1, 2027, while the remaining provisions will take effect upon becoming law.

Statutes affected:
Introduced: 55-12-211, 55-12-210(a)(2), 55-12-210, 55-12-210(b)(1)(A), 55-12-210(b)(2), 55-12-210(c)(1), 55-12-207