Amends TCA Title 55, Chapter 12 and Title 55, Chapter 4.

The Tennessee Financial Responsibility Law of 1977 provides that, at the time a driver of a motor vehicle is charged with a violation under provisions relative to rules of the road, certain crimes related to vehicles, driver licenses, or vehicle equipment; is charged with a violation of a local ordinance regulating traffic; or is in an accident for which notice is required, an officer must request evidence of financial responsibility. As used in this provision, "financial responsibility" means:<br /> <br /> (1) Documentation stating that a policy of insurance meeting the financial responsibility requirements has been issued;<br /> <br /> (2) A certificate, issued by the commissioner of safety, stating that a cash deposit or bond has been paid or filed with the commissioner of revenue; or the driver has qualified as a self-insurer; or<br /> <br /> (3) The motor vehicle being operated at the time of the violation was owned by a common carrier subject to the jurisdiction of the department of safety or the interstate commerce commission, or was owned by the United States, this state, or any political subdivision thereof, and that the motor vehicle was being operated with the owner's consent<br /> <br /> REGISTRATION OR RENEWAL OF REGISTRATION<br /> <br /> This bill prohibits the commissioner of revenue or a county clerk from registering or renewing the registration of a motor vehicle unless the vehicle and its owner have met the requirements of the following provisions and the Financial Responsibility Law of 1997 for the registration or renewal period.<br /> <br /> This bill requires that every registration or renewal be accompanied by a notice that declares that the owner or operator, or both, of the motor vehicle is required to meet the financial responsibility requirements. This bill provides that, for applications of registration or renewal submitted in person, submission of the following items constitutes satisfactory proof that the vehicle and its owner have met the financial responsibility requirements: <br /> <br /> (1) Documentation stating that a policy of insurance meeting the financial responsibility requirements has been issued and will be in force throughout the period of registration or renewal of the motor vehicle; or <br /> <br /> (2) A certificate, issued by the commissioner of safety, stating that a cash deposit or bond has been paid or filed with the commissioner of revenue; or the driver has qualified as a self-insurer.<br /> <br /> If an application for registration or renewal is submitted through a website administered by the department or a county clerk, or, if an applicant fails to submit to the commissioner or county clerk proof that the vehicle and its owner have met the financial responsibility requirements, then the commissioner or the county clerk, as applicable, must utilize the vehicle insurance verification program and may rely on the information provided by that program, for the purpose of verifying proof that the vehicle and its owner have met the financial responsibility requirements. <br /> <br /> REMEDIES<br /> <br /> This bill provides that a person who operates a motor vehicle in noncompliance with the requirements above relative to registration or renewal of registration commits a Class C misdemeanor, punishable by a fine of $250 for the first offense and a fine of $500 for each subsequent offense. The bill also provides that a person commits a Class C felony who, with fraudulent intent, alters, forges, or counterfeits an insurance card to make it appear valid; or makes, sells, or otherwise makes available an invalid or counterfeit insurance card, or other evidence of insurance.<br /> <br /> INSURANCE IN FORCE THROUGHOUT PERIOD OF REGISTRATION OR RENEWAL<br /> <br /> As mentioned above, an officer must request evidence of financial responsibility in certain situations. If the driver of a motor vehicle fails to show an officer evidence of financial responsibility, or provides the officer with evidence of a motor vehicle liability policy as evidence of financial responsibility, then the officer must utilize the vehicle insurance verification program and may rely on the information provided by that program, for the purpose of verifying evidence of liability insurance coverage. As mentioned above, financial responsibility means, amongst other proof, documentation stating that a policy of insurance meeting the financial responsibility requirements has been issued. This bill requires that such a policy of insurance must also be in force throughout the period of registration or renewal of the motor vehicle. <br />