HB 2159

This bill authorizes a garagekeeper to store a motor vehicle without express written authorization for storage if the garagekeeper makes a good faith attempt to acquire consent to repair, and the garagekeeper sends notice of the intent to store by certif ied mail, return receipt requested, to the last known registered owner of the motor vehicle. GARAGEKEEPERS' ABILITY TO ENFORCE LIENS This bill provides that a garagekeeper's failure to obtain express written authorization to store a motor vehicle does not abrogate the garagekeeper's right to a lien if the garagekeeper makes the good faith attempt to acquire consent and provides notice to the owner. This bill authorizes a garagekeeper to enforce a lien after the expiration of 30 days from the date of mailing of the notice unless a return receipt from the owner is received by the garagekeeper within the 30-day period, and in such case, the lien may b e enforced after the expiration of 30 days from the date of receipt of the notice shown on the return receipt. In order to establish compliance with this bill, this bill requires the garagekeeper to submit both of the following to the department of revenue:  A written record of the name of the person whom the garagekeeper attempted to notify, the date and time of the attempt, and the signature of the person who made the attempted notification.  A copy of the receipt issued by the post office with which the letter is certified, showing the name of the sender of the letter and the name and address of the person to whom the letter is addressed, and a copy of the return receipt, if received. CHARGING FEES Present law prohibits a garagekeeper from charging the owner or lienholder of a stored motor vehicle a storage fee for a period exceeding 21 days without the consent of the owner or lienholder, unless the owner or lienholder has been notified that the mo tor vehicle is available to be released from the garagekeeper and the owner or lienholder refuses to retrieve the motor vehicle Present law authorizes a garagekeeper to charge a storage fee for a period exceeding 21 days if prior to 90 days after the motor vehicle portal created is operational and available for use the last known registered owner of the motor vehicle and all lien holders of record are notified using three-day delivery of the intent to charge a storage fee for a period to exceed 21 days. The notice must be sent at least 10 days prior to the imposition of any additional storage fee. On or after 90 days after the m ot or vehicle portal created is operational and available for use, a garagekeeper may charge a storage fee for a period exceeding 21 days if the garagekeeper notifies all registered owners of the motor vehicle and all lienholders of record of the intent to c harge a storage fee for a period to exceed 21 days via the online motor vehicle portal. The present law described above does not apply to a motor vehicle that was towed or stored by a garagekeeper for the purpose of repairing the motor vehicle, if the garagekeeper first obtained the authorization of the owner for the repairs and the owner o f the motor vehicle has been notified that the repairs have been completed. This bill provides that the present law described above also does not apply to a motor vehicle that was stored by a garagekeeper for the purpose of repairing the motor vehicle if, in the case of a garagekeeper who cannot obtain the authorization of the owner for the repairs, the garagekeeper complies with the good faith attempt to acquire consent and notice requirements of this bill. In addition, this applies to a garagekeeper, whether as the principal business of the garagekeeper or incidental to the garagekeeper's principal business, who is prohibited to charge any of the following to a person for the towing or storage of a motor vehicle that was towed or stored without the express written authorization of the owner of the motor ve hicle to tow or store:  A fee charged at a higher rate than the maximum fee that has been approved by the Tennessee highway patrol district to be charged for the same service by persons engaged in a business described in this section.  A gate, access, or release fee during normal business hours for any day during which daily storage is also being charged.  A release fee of more than $100. ON MARCH 16, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2360, AS AMENDED. AMENDMENT #1 makes the following changes:  Provides that a notice of the intent to store a motor vehicle must be sent using three-day delivery rather than by certified mail, return receipt requested.  Provides that a garagekeeper may enforce a lien 30 days from the date of receipt of the notice of intent to store, rather than 30 days from the date of mailing of the notice.  Provides that a copy of the confirmation receipt, including an electronic signature, photograph of delivery, or other verifiable proof that the notice was delivered may be used to establish compliance with notice requirements to the department of revenue.  Changes the effective date from effective upon becoming a law to July 1, 2026.