Senate Bill 2089 amends Tennessee law regarding the retention of identification forms by motor vehicle dealers and their representatives. The bill defines "identification" to include valid documents such as driver licenses, photo identification licenses, and social security cards. It prohibits motor vehicle dealers, their agents, employees, or contractors from knowingly retaining copies of a person's identification in any format. However, the bill allows for the request of identification during normal business operations and provides an exception for dealers managing vehicle transactions on behalf of a person with a valid power of attorney, as long as the identification is not retained longer than necessary for the transaction.

Additionally, the bill establishes that a violation of the prohibition against retaining identification is classified as a Class B misdemeanor, which carries a penalty of a $1,000 fine. The act is set to take effect on July 1, 2026, ensuring that the public welfare is prioritized in its implementation.