Tennessee Motor Vehicle Commission
2016 Legislative Update
The Tennessee General Assembly has recently made changes to statutes which may impact you as a holder of a license with the Tennessee Motor Vehicle Commission. Pursuant to Tenn. Code. Ann. § 4-3-1306(d), you are receiving this notice because you have elected to receive notification by e-mail of certain changes or potential changes to the law applicable to your profession. These new changes set out in the following Public Chapters specifically amend the Tennessee Code Annotated as set forth below.
SECTION 1. The items listed in Section 1, may affect your auto or recreational vehicle dealer, dismantler-recycler, manufacturer, auto auction, sales person or representative license issued by the Motor Vehicle Commission.
Public Chapter No. 776 extends the Tennessee Motor Vehicle Commission until June 30, 2020 and establishes a minimum attendance requirement for commission members to fifty (50%) percent of actually held meetings. This law became effective upon passage. A copy of the new law is available for review on the website of the Tennessee Secretary of State here: http://share.tn.gov/sos/acts/109/pub/pc0776.pdf.
Public Chapter 781 expands the recreation vehicle provisions and establishes the Tennessee Recreational Vehicle Franchise Act, which specifically impacts the manufacture and distribution of new recreational vehicles and associated parts. It also provides protest provisions for recreational vehicle dealers who may have a dispute with the manufacturer of a product line they have been authorized to sell. This marks a significant change for the franchised recreational vehicle industry. Section 11 of this act takes effect July 1, 2017, and the remaining sections of this act shall take effect January 1, 2017. A copy of the new law is available for review on the website of the Tennessee Secretary of State here: http://share.tn.gov/sos/acts/109/pub/pc0781.pdf.
Public Chapter 533 authorizes an individual to purchase up to a total five (5) non-repairable and/or salvage vehicles in a twelve (12) month period from an automobile auction that sells such vehicles on consignment without the purchaser being required to have a motor vehicle dealer license. This change does not authorize an individual to sell more than five (5) vehicles titled and registered in their name in a twelve (12) month period of time without a dealer’s license. This law will be of interest to auto auctions who sell salvage, non-repairable (wrecked) vehicles; particularly those that sell vehicles that have been declared a total loss by an insurance company. This law takes effect July 1, 2016. A copy of the new law is available for review on the website of the Tennessee Secretary of State here: http://share.tn.gov/sos/acts/109/pub/pc0533.pdf.
Public Chapter No. 1053, known as the “Right to Earn a Living Act”, requires that on or before December 31, 2016, each state licensing authority (state board, commission, council or committee) submit all existing or pending regulations to the chairs of the Government Operations Committees and that the committees perform a study of all submitted regulations and, at their discretion, conduct a hearing regarding any such regulation. During the review of the entry regulations, the committees shall consider whether an entry regulation is not required by state or federal law, is unnecessary to protect the public health, safety or welfare, has the purpose or effect of unnecessarily inhibiting competition or arbitrarily denying entry into the profession, if such regulation could be accomplished by less restrictive means or if the regulation is outside the scope of the licensing authority’s statutory authority. If a regulation meets one of those factors, the committees may disapprove of the regulation and request that the authority amend or repeal it. If the licensing agency does not initiate compliance with the committees’ request within ninety (90) days or does not comply within a reasonable amount of time, the committees may then vote to request that the General Assembly suspend all or part of the agency’s rulemaking authority. Beginning January 1, 2018, each licensing authority must submit all new entry regulations to the committees prior to a “Sunset” hearing being held. This Act took effect upon passage, April 28, 2016. A copy of the new law is available for review on the website of the Tennessee Secretary of State here: http://share.tn.gov/sos/acts/109/pub/pc1053.pdf.
SECTION 2. The items noted in this section 2, are being provided for information purposes only and are notgoverned under the authority of the Tennessee Motor Vehicle Commission. However, recognizing that these changes in Section 2 do impact some of the licensees of the Tennessee Motor Vehicle Commission they are being provided additionally for information and reference. For additional information related to the changes noted in section 2, the link to the Public Chapter has been provided.
Public Chapter 790 authorizes certain off-highway vehicles (those having top speeds over 35 mph and non-straddle seating for up to four passengers) to be operated on county roads. This law permits the issuance of off-highway license plates and establishes equipment and safety requirements for these vehicles. These changes will be of interest to those vehicle dealers (auto and motorcycle) who may sell a modified low or medium speed vehicle product type. A copy of the new law is available for review on the website of the Tennessee Secretary of State here: http://share.tn.gov/sos/acts/109/pub/pc0790.pdf.
Public Chapter No. 649 reduces, from 60 days to 14 days, the maximum period of time a towing company may charge a car’s owner for storage fees. This change will be of interest to businesses that also have a wrecker service and tow vehicle in connection with their auto sales or dismantling business. A copy of the new law is available for review on the website of the Tennessee Secretary of State here: http://share.tn.gov/sos/acts/109/pub/pc0649.pdf.
Public Chapter No. 691 requires the issuance of salvage certificates on salvaged motorcycles. This change will be of interest to those businesses that sell or rebuild motorcycles or used motor cycle parts. A copy of the new law is available for review on the website of the Tennessee Secretary of State here: http://share.tn.gov/sos/acts/109/pub/pc0691.pdf.
Public Chapter No. 860 makes it a misdemeanor offense for any person to sell or leases a car with an electronic tracking device installed without the written consent of the purchaser of the car. This change will be of interest to any dealer who places tracking devices on dealer financed vehicles in order to locate them in case of a default payment. A copy of the new law is available for review on the website of the Tennessee Secretary of State here: http://share.tn.gov/sos/acts/109/pub/pc0860.pdf.
Public Chapter No. 927 establishes a certification program which must be completed prior to any self-driving car being tested, operated, or sold in Tennessee. The certification program will be established by the Tennessee Department of Safety. This law also creates a per mile tax structure for these cars. This law will be of interest to vehicle manufacturers and dealers who may be interested in the future of self-driving vehicles and their use and testing on the roadways in the state of Tennessee. A copy of the new law is available for review on the website of the Tennessee Secretary of State here: http://share.tn.gov/sos/acts/109/pub/pc0927.pdf.
Public Chapter No. 904 clarifies that no license is required for a person to sell cars to a licensed dismantler and recycler, or scrap metal processor, if the car has been designated as non-repairable. This bill will be of interest to dismantlers and recyclers who purchase vehicles from individuals that are not licensed as a motor vehicle dealer. If this is an area that interests you, you can learn more about the non-repairable certificate process by contacting your local county clerk or the Vehicle Services Division of the Tennessee Department of Revenue. A copy of the new law is available for review on the website of the Tennessee Secretary of State here: http://share.tn.gov/sos/acts/109/pub/pc0904.pdf.
Public Chapter 867 prohibits certain persons engaged in the business of towing or storing motor vehicles from charging a storage fee for any day on which the vehicle is not available for release to the owner, lienholder, or insurer, unless such failure to release is based on a hold placed on the vehicle by law enforcement. This act also requires such businesses to release the vehicle to the insurer or lienholder, or an authorized agent or representative, upon the insurer's or lienholder's payment of reasonable charges due, without requiring additional consent from the owner of the vehicle. A copy of the new law is available for review on the website of the Tennessee Secretary of State here: http://share.tn.gov/sos/acts/109/pub/pc0867.pdf.
If you have any questions or concerns about these new laws, please contact us by email at reg.boards@tn.gov.
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