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SB0818 • 2026

Business and Commerce

AN ACT to amend Tennessee Code Annotated, Title 55 and Title 65, Chapter 15, Part 3, relative to transportation network companies.

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Hensley, Bricken
Last action
2025-03-18
Official status
Assigned to General Subcommittee of Senate Commerce and Labor Committee
Effective date
Not listed

Plain English Breakdown

The bill summary and text do not provide detailed information on how out-of-state drivers without a Tennessee transportation network license will be treated, leaving this as an unknown.

Transportation Network Company Driver Licensing Act

This bill requires transportation network company (TNC) drivers in Tennessee to obtain a special license from the Department of Commerce and Insurance, with penalties for non-compliance.

What This Bill Does

  • Requires TNC drivers to get a special license before they can work in Tennessee.
  • Limits licensing to residents of Tennessee or certain nearby counties in Mississippi and Arkansas.
  • Sets rules for renewing licenses online and suspending/revoking them if there are serious violations.
  • Prohibits TNC companies from allowing unlicensed drivers to pick up rides within the state, with fines and potential shutdowns for repeat offenders.

Who It Names or Affects

  • Transportation network company (TNC) drivers in Tennessee
  • Residents of Desoto County, Mississippi, and Crittenden County, Arkansas who want to drive TNC vehicles in Tennessee

Terms To Know

transportation network license
A special permit required for individuals driving for transportation network companies (TNCs) in Tennessee.
serious traffic violation or criminal offense
Actions that can lead to the suspension or revocation of a TNC driver's license, as defined by the Department of Commerce and Insurance rules.

Limits and Unknowns

  • The bill does not specify how out-of-state drivers will be treated if they are caught driving without a Tennessee transportation network license.
  • It is unclear what specific actions the commissioner can take to suspend or revoke TNC companies' ability to operate in Tennessee.

Bill History

  1. 2025-03-18 Tennessee General Assembly

    Assigned to General Subcommittee of Senate Commerce and Labor Committee

  2. 2025-03-13 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 3/18/2025

  3. 2025-03-11 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 3/18/2025

  4. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Commerce and Labor Committee

  5. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  6. 2025-02-10 Tennessee General Assembly

    Assigned to s/c Business & Utilities Subcommittee

  7. 2025-02-06 Tennessee General Assembly

    P2C, ref. to Commerce Committee- Government Operations for Review

  8. 2025-02-05 Tennessee General Assembly

    Intro., P1C.

  9. 2025-02-04 Tennessee General Assembly

    Filed for introduction

  10. 2025-02-04 Tennessee General Assembly

    Filed for introduction

Official Summary Text

LICENSE REQUIRED FOR TRA
NSPORTATION NETWORK COMPANY DRIVERS

As of January 1, 2026, this bill requires

a
n individual seeking to work as a transportation network
company
driver in this state
to
first obtain a transportation network license from the department of commerce and insu
rance.
I
n order to be issued a transportation network license from the department,
this bill generally requires
the individual
to
have a valid Tennessee driver license.
However,
a resident of Desoto County, Mississippi, or Crittenden County, Arkansas, ma
y be issued
such
a license from the department upon providing proof of residency of such county.

This bill provides that

a
driver's transportation network license is valid for a period of one year. The department
must
establish a means by which a driver
may renew a license through the department's website
and
promulgate rules

by which the department may suspend or revoke
such
a license upon the driver committing a serious traffic violation or criminal offense or upon good cause shown.

An individual wit
hout a valid transportation network license is prohibited from accepting or transporting a prearranged ride originating in this state.
However, t
his does not prohibit a prearranged ride originating in another state from ending in this state.

PROHIBITED C
ONDUCT BY TRANSPORTATION NETWORK COMPANIES

This bill prohibits

a
transportation network company
from
authoriz
ing
a driver without a valid transportation network license to accept or transport a prearranged ride originating in this state.

A transportatio
n network company that violates
this provision
is subject to a civil penalty of $1,000 per violation. If a transportation
network company
is found by the commissioner of commerce and insurance to have multiple
such
violations in a manner that is deemed to
constitute willful or wanton disregard of the requirements of this
bill
, then the commissioner
must
take action to suspend or revoke the transportation network company's ability to operate in this state.

RULEMAKING

This bill authorizes the
department o
f commerce and insurance to promulgate rules to effectuate this
bill
.

Current Bill Text

Read the full stored bill text
HOUSE BILL 879
By Bricken

SENATE BILL 818
By Hensley

SB0818
002376
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 55
and Title 65, Chapter 15, Part 3, relative to
transportation network companies.

WHEREAS, Tennessee is the only state in the southeast that allows out-of-state ride hail
drivers to operate within the state, while Tennessee ride hail drivers may not work in
surrounding states; and
WHEREAS, Tennesseans who live and work in our communities, contributing directly to
our local economy, struggle to compete with an oversaturated market of out-of-state drivers;
and
WHEREAS, instead of bringing down prices for consumers, an oversaturated market of
out-of-state drivers has worsened traffic congestion and diverted Tennessee tourism dollars to
other states; and
WHEREAS, a basic licensing regime is necessary to regulate this profession; now,
therefore,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 65, Chapter 15, Part 3, is amended by
adding the following as a new section:
(a) An individual seeking to work as a transportation network driver in this state
shall first obtain a transportation network license from the department of commerce and
insurance.
(b)

- 2 - 002376

(1) Except as provided in subdivision (b)(2), in order to be issued a
transportation network license from the department, the individual must have a
valid Tennessee driver license.
(2) Notwithstanding subdivision (b)(1), a resident of Desoto County,
Mississippi, or Crittenden County, Arkansas, may be issued a transportation
network license from the department upon providing proof of residency of such
county.
(c) A driver's transportation network license is valid for a period of one (1) year.
The department shall establish a means by which a driver may renew a license through
the department's website. The department shall also promulgate rules, in accordance
with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, by which
the department may suspend or revoke a driver's transportation network license upon
the driver committing a serious traffic violation or criminal offense or upon good cause
shown.
(d) An individual without a valid transportation network license is prohibited from
accepting or transporting a prearranged ride originating in this state. This subsection (d)
does not prohibit a prearranged ride originating in another state from ending in this state.
(e) A transportation network company shall not authorize a driver without a valid
transportation network license to accept or transport a prearranged ride originating in
this state.
(f) A transportation network company that violates subsection (e) is subject to a
civil penalty of one thousand dollars ($1,000) per violation. If a transportation is found by
the commissioner of commerce and insurance to have multiple violations of subsection
(e) in a manner that is deemed to constitute willful or wanton disregard of the

- 3 - 002376

requirements of this section, then the commissioner shall take action to suspend or
revoke the transportation network company's ability to operate in this state.
SECTION 2. The department of commerce and insurance is authorized to promulgate
rules to effectuate this act. The rules must be promulgated in accordance with the Uniform
Administrative Procedures Act, compiled in Tennessee Code Annotated, Title 4, Chapter 5.
SECTION 3. For purposes of promulgating rules, this act takes effect upon becoming a
law, the public welfare requiring it. For all other purposes, this act takes effect January 1, 2026,
the public welfare requiring it.