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SB 1335

Motor Vehicles, Titling and Registration - As introduced, requires evidence of compliance with the financial responsibility law prior to registering vehicles; increases from $25 to $50 the coverage failure fee imposed by the department of revenue for the first failure to comply with the James Lee Atwood Jr. Law; increases that fee to $250 for a second failure to comply and to $500 for a third or subsequent failure to comply; allocates 50 percent of the fees to county clerks. - Amends TCA Title 55, Chapter 12 and Title 55, Chapter 4.

114th Regular Session (2025-2026)

SB 1335 requires auto insurance proof for vehicle registration and escalates violation fees to $500, directing half of collected penalties to county clerks.

Assigned to General Subcommittee of Senate Transportation and Safety Committee
#motorvehicles #titlingandregistration
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Bill Summary · SB 1335

Legislative bill overview

SB 1335 strengthens Tennessee's motor vehicle registration requirements by mandating proof of auto insurance compliance before registration and significantly increases financial penalties for failing to maintain required coverage. The bill escalates fees from $25 to $50 for first violations, $250 for second violations, and $500 for third and subsequent violations, with half the collected fees directed to county clerks.

Why is this important

Uninsured drivers create substantial costs for other motorists through increased insurance premiums and potential out-of-pocket expenses from accidents. By enforcing insurance requirements at the registration stage and implementing steeper financial penalties, the bill aims to reduce the number of uninsured vehicles on Tennessee roads and create a funding mechanism for county administrative costs related to enforcement.

Potential points of contention

  • Regressivity concerns: Escalating penalty structure ($50→$250→$500) disproportionately impacts lower-income drivers who may already struggle with insurance costs, potentially creating a debt spiral rather than encouraging compliance
  • Administrative burden: Requiring proof of compliance at registration may create delays and additional processing requirements for county clerks, whose readiness to handle increased workload is unclear
  • Revenue incentive questions: The 50-50 revenue split between the state and county clerks could create perverse incentives to enforce penalties rather than focus on actual compliance and accident prevention

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

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