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SB 2458

Motor Vehicles - As introduced, establishes requirements governing delivery network companies and delivery network company drivers. - Amends TCA Title 4; Title 7; Title 55; Title 56 and Title 65.

114th Regular Session (2025-2026) Introduced by Paul Bailey

Tennessee requires delivery networks and drivers to carry specified auto insurance, vet drivers with background checks, disclose driver/vehicle info, and ensure transparent pricing

Companion House Bill substituted
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Bill Summary · SB 2458

Summary of Bill: SB 2458 / HB 2175 (Amendment No. 3) – Tennessee, 114th Legislature

Purpose and Intent

This bill establishes regulatory requirements for delivery network companies (DNCs) operating in Tennessee and the drivers who use their platforms. The core aims are to ensure appropriate automobile liability insurance coverage, compliance with financial responsibility laws, record-keeping, and certain hiring practices for DNCs and their drivers. The amended version sets an effective date of January 1, 2027.

Key Provisions and Changes

  • Definition of Delivery Network Company (DNC): A DNC is a business that uses a digital network to connect customers with delivery network drivers to provide delivery services.

  • Delivery Services Scope: Covers pickup of products from a location and delivery to customers, including multi-stop deliveries. Excludes typical for-hire vehicle services and street hail.

  • Insurance and Financial Responsibility

    • DNC must ensure primary automobile liability insurance recognizes that the driver is a DNC driver or does not exclude coverage for using a personal vehicle for deliveries.
    • DNC drivers or the DNC itself must maintain automobile liability insurance meeting specified minimum coverage requirements.
    • Insurance must cover scenarios where the driver’s personal policy excludes coverage or lapses, and must comply with Tennessee’s Financial Responsibility Law of 1977 (Act) during times the driver is logged into the DNC network or performing delivery services.
    • Insurers may exclude coverage/defense for losses that occur during the delivery availability period or actual delivery service, if explicitly stated in the policy (subject to state approval).

  • Driver Vetting and Hiring (as part of amended bill):

    • DNCs must initiate local and national criminal background checks and national sex offender registry searches for potential drivers.
    • Driver applications must include personal information, driving history, vehicle registration, and proof of automobile liability coverage, among other requirements.
    • DNCs cannot employ drivers who have disqualifying offenses, are in the sex offender registry, are under 19, lack a valid license, lack proof of vehicle registration, or lack proof of financial responsibility.
    • DNCs must maintain records of trips and drivers and provide public-facing information such as driver photos and vehicle license plate numbers.

  • Operational and Transparency Requirements:

    • DNCs must provide applicable delivery rates to customers and an estimated total before purchase.
    • Display driver and vehicle information (driver photo and license plate number) on the DNC’s software/app.
    • Transmit an electronic receipt to customers shortly after delivery.
    • Implement and publish a zero-tolerance drug/alcohol policy for drivers on the platform.

  • Insurance for Logged-In Periods: Coverage must apply when drivers are logged into the network or providing services; gaps in coverage outside those periods are not covered by the act.

Who Is Affected

  • Delivery Network Companies (DNCs) operating in Tennessee.
  • DNC Drivers who are logged into the network and performing deliveries.
  • Insurance Providers offering automobile liability coverage that would extend to DNC drivers.
  • State Agencies (Department of Revenue, Department of Commerce and Insurance, Tennessee Public Utility Commission) may experience changes in workload related to compliance, though the fiscal impact is characterized as not significant.

Timelines and Fiscal Impact

  • Effective Date: January 1, 2027 (amendment extends from July 1, 2026 to January 1, 2027).
  • Fiscal Impact: Assessed as NOT SIGNIFICANT. Anticipated workload increases for state agencies are not significant, and there is no expected large effect on tax or premium revenues.

Notes

  • The bill contains comprehensive regulatory provisions for DNC operations, driver vetting, and insurance requirements that align with ensuring financial responsibility and consumer transparency.
  • It is unclear how many DNCs operate in Tennessee, but the bill assumes compliance by any qualifying DNCs.

Sponsor: Co-sponsor Paul Bailey
Status: Amended version scheduled for consideration; various action history steps show progression through committees and calendars in 2026.

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

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