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SB 818

Business and Commerce - As introduced, prohibits an individual without a valid transportation network license from accepting or transporting a prearranged ride originating in this state; requires the department of commerce and insurance to issue transportation network licenses to eligible individuals; limits the issuance of transportation network licenses to residents of this state and residents of certain out-of-state counties adjacent to this state. - Amends TCA Title 55 and Title 65, Chapter 15, Part 3.

114th Regular Session (2025-2026) Introduced by Joey Hensley

Tennessee SB 818 requires rideshare drivers to obtain state licenses and be residents of Tennessee or adjacent counties, restricting out-of-state driver participation.

Assigned to General Subcommittee of Senate Commerce and Labor Committee
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Bill Summary · SB 818

Legislative bill overview

SB 818 establishes a state licensing requirement for rideshare drivers operating in Tennessee, requiring individuals to obtain a "transportation network license" from the Department of Commerce and Insurance. The bill restricts eligibility to Tennessee residents and residents of certain out-of-state counties adjacent to Tennessee, effectively creating a residency requirement for rideshare services.

Why is this important

This bill would fundamentally change how rideshare services operate in Tennessee by imposing state-level licensing and residency restrictions. Currently, rideshare platforms like Uber and Lyft operate under a lighter regulatory framework. The residency requirement could significantly impact service availability, driver supply, and consumer access—particularly in border regions and urban areas—while raising questions about how existing out-of-state drivers would be affected during any transition period.

Potential points of contention

  • Interstate commerce concerns: Residency restrictions may conflict with the dormant Commerce Clause of the U.S. Constitution, which generally prohibits states from discriminating against out-of-state economic participants
  • Driver supply and service gaps: Limiting drivers to state residents could reduce driver availability, increase wait times, and potentially raise fares—particularly in rural areas
  • Regulatory burden vs. safety claims: Unclear what licensing requirements protect consumers versus creating administrative costs; existing background check and insurance requirements may already address safety concerns

Compiled from official sources — confirm details with the bill’s official record.

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