Amends TCA Title 55, Chapter 50.

This bill requires the department of safety to establish procedures for licensing third-party service providers that may provide driver services currently provided by the department. The department will create two tiers of licenses for third-party services providers, as follows: (1) Tier 1 licenses must allow third party service providers to provide all driver services, excluding all written, knowledge, and skills testing requirements; and (2) Tier 2 licenses must allow third-party service providers to provide all driver services. This bill sets out in detail the process and qualifications for a licensee under this bill, which include the following: (1) The application process. As part of the application process, the applicant must submit a bond of at least $25,000 for each location at which driver services will be provided. This bond requirement will not apply to the department of safety, any agency of government, a third-party service provider that is licensed, bonded, and in good standing with all relevant government agencies to conduct its business in this state; a person who owns or is the registrant of a fleet of 100 or more vehicles; or a person who employs at least 500 individuals; and (2) The licensing process. This bill requires for Tier 1 licensees that the applicant have at least one key person who has completed the department's driver services training. "Driver services training" means educational courses or materials that provide a comprehensive overview of the procedures and practices necessary to provide driver services in this state. To be a Tier 2 licensee, the applicant must have continuously operated as a tier 1 third-party service provider for a period of no less than three years. This bill requires: (1) A third-party service provider issued a license pursuant to this bill to comply with all applicable federal regulations and with rules promulgated by the department pertaining to the issuance, examination, and renewal of commercial driver licenses; (2) No later than January 1, 2024, the department, in addition to any driver services provided in person, to provide online driver services that include at least the same or similar types of driver services offered online by agencies and departments in other states that provide driver services; (3) That funding for public, online, and third-party service providers be derived from fees charged for driver services. This bill requires the department to set the appropriate standard public fee for each driver service provided by the department. The department and public service providers may assess a processing or convenience fee in addition to the standard public fees set by the department; and (4) The department and public service providers to remit to the state the amount of the standard public fee charged for each transaction processed. Public service providers may retain any amounts collected for each driver service that exceeds the standard public fee. Any amounts retained must be used to fund the operation of the public service provider, including awarding bonuses to employees. Any bonuses awarded to employees for performing driver services must be drawn from amounts retained by the public service provider for performing driver services after remitting the standard public fee for each service to the state. This bill authorizes third-party service providers to set their own rates to provide driver services. Providers must remit to the state the amount of the standard public fee for each transaction for driver services that the providers process. Other provisions of this bill include: (1) Wait time calculation. This bill requires the department to collect and calculate a representative sample of wait times for each driver service provided by both public and third-party service providers no later than December 31 of each calendar year. Also, the department must calculate an average wait time for all third-party service providers no later than December 31 of each calendar year. In the event a public service provider has an average wait time that is less than the average wait time for all third-party service providers, the department or a public service provider, will award to: (A) The most senior manager of each public service provider a one-time performance bonus in the amount of 10 percent of gross annual compensation for each 10 percent reduction in wait times relative to the third-party service provider average; and (B) All the public service provider's employees, excluding the most senior manager who received a bonus, a one-time performance bonus; (2) Net promotor score. This bill requires all public, online, and third-party service providers to offer an opportunity for members of the public to provide feedback at the conclusion of the provider performing any driver service for the person. The feedback will be provided through the following question: "On a scale from 1 to 10, how would you rate your experience?". All feedback received in response to this question must be provided to the department. This bill requires the department to calculate the average net promoter score for each public and third-party service provider based on feedback collected from members of the public. In the event a public service provider has a net promoter score that is greater than the average net promoter score for the third-party service providers, the department or the public service provider must award to: (A) The most senior manager of each public service provider a one-time performance bonus in the amount of 10 percent of gross annual compensation for each net promoter score point above the third-party service provider average; and (B) All the public service provider's employees, excluding the most senior manager of a public service provider who received a bonus, a one-time performance bonus; and (3) Efficiency mandate. This bill requires the department to survey managers of public service providers for recommendations on potential methods of improving efficiency and the quality of services provided by the department no later than December 31 of each calendar year. This bill also authorizes managers of public service providers to outsource driver services provided by their office to other departments of this state if doing so would reduce the overall costs of providing such services and to hire temporary and part-time labor as needed to meet demand. This bill sets out in detail provisions governing cancellation and suspension of a third-party service provider's license, including provisions for a hearing and an appeal. For rulemaking purposes, this bill will take effect upon becoming law. For all other purposes, it will take effect January 1, 2023.