Motor Vehicles

Plain English Breakdown

Checked against official source text during the last sync.

Stopping Dealers from Keeping ID Copies

This bill makes it illegal for car dealers and their workers to keep copies of people's IDs but allows them to ask for IDs when needed.

What This Bill Does

• Makes it against the law for car dealers or salespeople to keep a copy of someone’s ID.
• Defines 'identification' as any valid document with a name and photo issued by a state or federal agency.
• Does not stop dealers from asking people to show their IDs when needed.
• Allows dealers to keep copies of IDs if they are managing a vehicle transaction for someone else, but only for the time needed.

Who It Names or Affects

• Car dealers and salespeople
• People buying or selling cars

Terms To Know

identification

A valid document with a name and photo issued by a state or federal agency.

Class B misdemeanor

A type of crime that can result in fines but not jail time for first-time offenders.

Limits and Unknowns

• The bill does not specify what happens if someone breaks this law.
• It is unclear how dealers will be monitored to ensure they follow the rules.

Official Summary Text

This bill prohibits a
motor vehicle dealer
,
or its agents, employees, or contractors, or a motor vehicle salesperson,
from
knowingly retain
ing
a copy

of a person's identification.
As used in this bill,
"identification"
m
eans a valid identification document that bears the name and photograph of a person and that is issued by a state or federal agency authorized to issue identification credentials
.
A violation is a Class B misdemeanor, punishable by a fine of $1,000.

EXCEPTIONS

This bill
does not prohibit
such persons
from requesting a person to present a form of identification in its normal course of business.
Additionally, this bill
does not apply to a motor vehicle dealer
(i)
who

is appointed by a person to manage a vehicle transaction on the person's behalf, including a title or registration transaction, pursuant to a valid power of attorney executed by the person on a form prescribed by the commissioner of revenue granting the m
otor vehicle dealer authority to sign the appl
ication for a vehicle transaction, and
(ii)
who is required by the commissioner to submit and retain a copy of the person's identification for purposes of carrying out the vehicle transaction
. However,
the identification must not be retained for longer than necessary to carry out the vehicle transaction
.

Current Bill Text

<BillNo> <Sponsor>

SENATE BILL 2089
By Crowe
SB2089
008669
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 39;
Title 47 and Title 55, relative to the retention of
forms of identification.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 55, Chapter 17, Part 1, is amended by
adding the following as a new section:
(a) As used in this section, "identification":
(1) Means a valid identification document that bears the name and
photograph of a person and that is issued by a state or federal agency authorized
to issue identification credentials; and
(2) Includes a valid driver license or permit, photo identification license,
or social security card.
(b) A motor vehicle dealer or its agents, employees, or contractors, or a motor
vehicle salesperson, shall not knowingly retain a copy, in an electronic or other format, of
a person's identification.
(c) This section does not prohibit a motor vehicle dealer or its agents,
employees, or contractors, or a motor vehicle salesperson, from requesting a person to
present a form of identification in its normal course of business.
(d) This section does not apply to a motor vehicle dealer who is appointed by a
person to manage a vehicle transaction on the person's behalf, including a title or
registration transaction, pursuant to a valid power of attorney executed by the person on
a form prescribed by the commissioner of revenue granting the motor vehicle dealer
authority to sign the application for a vehicle transaction, as provided by the Uniform
Durable Power of Attorney Act, compiled in title 34, chapter 6, part 1, and § 55-3-103,

- 2 - 008669

and who is required by the commissioner to submit and retain a copy of the person's
identification for purposes of carrying out the vehicle transaction; provided, that the
identification must not be retained for longer than necessary to carry out the vehicle
transaction.
(e) A violation of subsection (b) is a Class B misdemeanor, punishable by a fine
of one thousand dollars ($1,000).
SECTION 2. This act takes effect July 1, 2026, the public welfare requiring it.