SB 1068

This bill replaces the "Modernization of Towing, Immobilization, and Oversight Normalization (MOTION) Act"" with the ""Modernization of Towing, Immobilization, and Oversight Normalization (MOTION) Act of 2025."" The following are significant changes and additions that this bill makes to present law concerning towing and immo b ilizing of motor vehicles: (1) Present law generally makes it an offense for a commercial parking lot owner to boot or tow a motor vehicle located on the lot owner's lot if the motor vehicle is not an abandoned, immobile, or unattended motor vehicle. I t is an exception to the general prohibition if, after July 1, 2024, a local government passes an ordinance specifically opting to permit a licensed parking lot, or a licensed parking attendant on the licensed parking lot's behalf, to boot or tow on the l i censed parking lot. This bill removes authorization for local governments to authorize parking lots and attendants to boot or tow motor vehicles and prohibits any person from booting a motor vehicle. This bill also specifies that no person may tow a mot o r vehicle without express written authorization by the owner or authorized agent of the owner of the motor vehicle unless: (A) An owner or authorized agent of the owner of a commercial parking lot or other private property open to the public has authori zed the towing of the motor vehicle left unattended and the owner has posted notice that any motor vehicle not authorized to park on the private property is subject to towing; (B) An owner or authorized agent of the owner of a commercial parking lot or o ther private property open to the public has authorized the towing of a motor vehicle that has been unattended for more than 12 hours; (C) An owner or authorized agent of the owner of private property not open to the public has authorized the towing of a motor vehicle left unattended; or (D) A law enforcement officer with appropriate jurisdiction requests that the motor vehicle be towed; (2) Present law requires the department of revenue to create and implement an electronic database or online platfo rm that, on and after July 1, 2025, allows a police department or another user to input abandoned, immobile, or unattended vehicle information for public notice. This bill instead authorizes the department to contract with a third-party service provider t o create and implement the motor vehicle portal, requires the department to begin the procurement process to create and implement the portal no later than July 1, 2025, and implement the portal by July 1, 2026. Generally, the purpose of the portal is t o provide notice that a vehicle has been taken into custody when the vehicle's owner or lienholder cannot be identified through ordinary due diligence. Present law authorizes the commissioner of revenue to promulgate rules to effectuate the implementatio n of the portal. This bill retains the commissioner's rulemaking authority and adds nine capabilities that the portal must have, which are described in the full text of this bill. Present law authorizes the department of revenue to charge a police depart ment or another user of the portal a fee to cover the cost of creating and administering the portal. All revenues received from the fees must be earmarked and used for the administration and maintenance of the portal. This bill adds that the portal user fee must be charged in an amount to cover the cost of creating, administering, and maintaining the portal. This bill prohibits the department from charging a fee for conducting a public search on the portal. This bill also requires the commissioner to p r ovide the public and the Tennessee code commission with notice of the portal's operability; (3) Present law requires commercial parking lot owners to post signage providing notice if the owner uses automatic license plate readers to enforce their parkin g requirements or charges a penalty for non-payment of parking fees. This bill makes technical changes to the signage requirements, which are described in the full text of this bill, and adds slight variations for signs to provide notice of non-payment p e nalties depending on whether parking fees are payable at the beginning or the end of a parking session; (4) To provide notice of a vehicle being towed when the owner is not present, present law requires the person towing the vehicle to provide certain i nformation (such as VIN and license plate numbers) to law enforcement within 15 minutes of towing the vehicle. A law enforcement agency that receives such information is required to keep a record of the information and make it available for public inspec t ion. This bill adds to the information that must be provided and extends the time within which the report must be made from 15 minutes to one hour. Beginning 90 days after the motor vehicle portal is operational, towing reports will be made through the p ortal instead of directly to law enforcement; (5) 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 th e owner or lienholder has been notified via a nationally recognized overnight delivery carrier, other than the U.S. postal service, requesting proof of delivery, of the intent to charge a storage fee for a period to exceed 21 days. The notice must be giv e n at least 10 days prior to the imposition of any additional storage fee. This bill adds that notice by overnight delivery must be via a carrier that uses electronic delivery. Additionally, beginning 90 days after the motor vehicle portal is operational, storage fee notices will be made through the portal instead of by overnight delivery; (6) Present law authorizes law enforcement to take into custody, or hire a person to remove, a motor vehicle found abandoned, immobile, or used in curbsto ning. Under present law, law enforcement may provide preseizure notice before taking an abandoned, immobile, or unattended motor vehicle into custody. Present law specifies a process for attempting to verify ownership of a vehicle found abandoned, immob i le, or used in curbstoning, through the Tennessee Information Enforcement System (TIES) and, if necessary, the department of revenue. Present law also specifies a process for providing notice of ownership to a garagekeeper into whose custody a vehicle fo u nd abandoned, immobile, or used in curbstoning, is placed and a process for notifying the vehicle's owner. This bill maintains a substantially similar process for verifying ownership and notifying an owner of a vehicle found abandoned, immobile, or used in curbstoning. Beginning 90 days after the motor vehicle portal is operational, verification of ownership and notice to the owner will be done through the portal; (7) This bill adds a requirement that, after a motor vehicle acquired by a demolisher is demolished, processed, or changed so that it physically is no longer a motor vehicle, the demolisher must notify the National Motor Vehicle Title Information System; (8) Under present law, when any person other than law enforcement takes possession of a motor vehicle found abandoned, immobile, or unattended, the action must be reported immediately to the taxpayer and vehicle services division of the department of revenue for verification of ownership on a form prescribed and provided by the registrar o f motor vehicles. Beginning 90 days after the motor vehicle portal is operational, when any person other than a law enforcement agency or other public agency takes possession of a motor vehicle found abandoned or immobile, this bill requires that the acti o n be reported to the portal; (9) Present law requires newspaper advertisement once a week for two consecutive weeks before selling goods at auction to satisfy an artisan's lien. Beginning 90 days after the motor vehicle portal is operational, newspaper publication will no longer be required if the good is a motor vehicle or another good requiring a certificate of title and notice of the sale will be given through the portal; (10) This bill clarifies that sale to satisfy a garagekeeper's lien must be advertised on the motor vehicle portal; and (11) This bill makes numerous additional technical clarifications to effectuate the provisions described in (1) – (10). ON MARCH 24, 2025, THE SENATE ADOPTED AMENDMENTS #1 AND #2 AND PASSED SENATE BILL 1068 AS AMENDED. AMENDMENT #1 makes the following revisions:  Revises the definition of ""authorized agent"" to also include a person in control of private property, and not just in possession of private property.  Revises the definition of ""boot"" or ""booting"" to only apply to devices installed on motor vehicles that are parked.  Adds a definition of ""electronic tracking"" to mean a system or method used by a national delivery carrier that provides real-time or near real-time monitoring of the delivery process, i ncluding (i) a unique tracking number assigned to each shipment; (ii) recorded timestamps for key delivery events, including acceptance, transit updates, and final delivery; and (iii) confirmation of receipt, which may include an electronic signature, pho t ograph of delivery, or other verifiable proof that the letter or package was delivered to the intended recipient's address.  Requires a motor vehicle portal to be capable of comparing information input into the portal with vehicle registration, ownership, or other relevant data to determine ownership of a motor vehicle.  Removes the requirement that a commercial parking lot owner must require payment at the beginning or conclusion of a parking session in order to apply the prohibition against charging a penalty for nonpayment of parking fees unless certain criteria is met.  Alters the criteria mentioned above relative to signage being located at each designated exit of the commercial parking lot to, also, require such signage to be located at each designa ted entrance.  Prohibits a county, municipality, or other political subdivision of this state from enacting or enforcing an ordinance, resolution, rule, or other requirement that regulates parking in a manner that conflicts with the bill.  Relative to the requirement in the bill for the owner to post notice before being able to tow a motor vehicle, requires such posted notice to (i) provide notice that any motor vehicle not authorized to park on the private property is subject to towing; (ii) be designed a n d placed in a manner that ensures clear visibility and readability by consumers parking on the private property; (iii) be located at each designated entrance and exit of the private property; and (iv) contain the name of the garagekeeper authorized to tow the vehicle, the phone number of the garagekeeper, and the cost that must be paid to retrieve the vehicle.  Removes the requirement that a person whose vehicle has been towed must provide the vehicle's registration information to the law enforcement agency with jurisdiction over the location from which the motor vehicle was towed.  Authorizes a garagekeeper to charge a storage fee for a period exceeding 21 days if the last known registered owner of the motor vehicle and all lienholders of record are notifie d using a three-day delivery, instead of a national carrier that provides electronic tracking, of the intent to charge the fee. This amendment defines ""three-day delivery"" to mean contracting with a national delivery carrier to ship with electronic track i ng a document or package to its intended recipient within three business days.  With respect to the authority for a garagekeeper to charge certain storage fees if certain criteria is met, exempts such provisions from application 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 of the motor vehicle has been notified that the repairs have been completed.  Applies the provisions relative to when a law enforcement agency or other public agency takes possession of a motor vehicle to situations where such entities cause possession to be taken though the use of a garagekeeper.  Requires notice sent by such entit ies or garagekeeper to be sent using three-day delivery as defined in this amendment.  Requires such entities or garagekeeper within one hour after taking the motor vehicle into custody, to enter the vehicle identification number, license plate number, a d escription of the vehicle, the location of the tow, and the location where the motor vehicle will be stored into the motor vehicle portal.  Applies the provisions relative to law enforcement agencies' required actions at auctions to also apply to garagekee pers, as applicable.  Relative to present law provisions regarding garagekeepers' liens upon motor vehicles that have lawfully come into their possession, requires notice sent by such garagekeepers to be sent using three-day delivery as defined in this ame ndment. AMENDMENT #2 makes the following revisions:  Removes from the information required in the posted notice by the owner of the commercial parking lot or other private property open to the public the cost that must be paid to retrieve the vehicle fro m the garagekeeper.  Removes the authority for a person to tow a motor vehicle, without express written authorization by the owner or authorized agent of the owner of the motor vehicle, when the owner or authorized agent of the owner has authorized the towing of motor vehicles creating a hazard, blocking access to public or private property, or parked illegally. ON APRIL 22, 2025, THE HOUSE SUBSTITUTED SENATE BILL 1068 FOR HOUSE BILL 972, ADOPTED AMENDMENTS #3, #4, AND #5 AND PASSED SENATE BILL 1068, A S AMENDED. AMENDMENT #3 removes authorization for the d epartment of revenue to charge a law enforcement agency a fee for entering information or sending notification through the motor vehicle portal. AMENDMENT #4 replaces this bill's provisions concern ing penalties for nonpayment of parking fees and adds to present law consumer protection requirements concerning alternate forms of payment for onsite parking. Under this amendment, if a person, commercial parking lot owner, and this state or a political subdivision of this state (an ""entity"") requires on-site payment from a consumer for the parking of a motor vehicle on the entity's property, and the entity only accepts payment by use of a quick response (QR) code or a credit or debit card machine, then, in the event the QR code or the credit or debit card machine fails to operate correctly to process the payment transaction, the entity must: (1) Accept payment from the consumer by cash or check, or through a system that allows the consumer to provide t he consumer's credit or debit card information over the phone; or ( 2 ) Allow the consumer to leave the property without providing payment at the time; and ( 3 ) Not charge a penalty or late fee for nonpayment until at least seven business days have passed from the date that t he individual left the property without paying. If an entity does not provide information to a consumer enabling the consumer to mail payment to the entity, or provide the consumer's credit or debit card information over the phone fo r payment of the services at a later date, then the consumer is not required to provide payment at a later date for the service. For a parking lot that is temporarily or continuously unattended, th is amendment requires that an entity provide notice of th e alternative forms of payment accepted on a prominent sign located at each site on the entity's property where payment is taken. A county, municipality, or other political subdivision of this state shall not enact or enforce an ordinance, resolution, ru le, or other requirement that regulates parking in a manner that conflicts with relevant provisions of this amendment . This amendment extends the date by which the department of revenue is required to implement the motor vehicle portal from July 1, 2026, to October 1, 2026 . AMENDMENT #5 replaces this bill's prohibition against booting a motor vehicle. This amendment prohibits any person from boot ing a motor vehicle, including a tractor or trailer, if the motor vehicle is clearly identifiable by a US DO T number issued by the federal motor carrier safety administration or a registration plate issued and attached to the motor vehicle or trailer . This amendment prohibits any person from booting any motor vehicle that is not clearly identifiable by a USDO T number issued by the federal motor carrier safety administration or for which a registration plate has not been issued and attached, unless: (1) The vehicle immobilization device is a self-releasing device . For purposes of this amendment, "" s elf-relea sing device"" means a vehicle immobilization device that: ( A ) Allows the vehicle owner or vehicle operator to remove the device without third-party assistance; (B) Is equipped with an automated or electronic release mechanism that enables removal of the device immediately upon payment of fees; (C) Permits the electronic processing of payment of fees by credit card or debit card; (D) Provides clear, written, and visual instructions for how to make payment of fees and for device removal; and (E) Ensu res the device can be safely removed by the vehicle owner or vehicle operator without damaging the vehicle or presenting a hazard; (2) The motor vehicle is located on a commercial parking lot or on contracted property; (3) The person attaching the vehi cle immobilization device is an employee of a commercial parking lot owner or is a licensed booting operator; (4) The commercial parking lot or contracted property posts signage providing notice that an y motor vehicle not authorized to park on the lot or property is subject to booting . The full text of this amendment specifies content and placement requirements for the signage ; (5) The cost to remove the vehicle immobilization device is not greater than the actual cost of the parking fees owed that led to the attachment of the vehicle immobilization device, if any, plus a vehicle immobilization device removal fee of not greater than $75.00 . I f a vehicle owner or operator intentionally damages a vehicle immobilization device or fails to return the vehic le immobilization device to a clearly designated on-site storage location, the vehicle owner or operator may be subject to an additional fee not to exceed $100 . If a licensee removes or causes the removal of a vehicle immobilization device from a vehicle that has been immobilized on the commercial parking lot or contracted property for the purpose of having the motor vehicle towed from the commercial parking lot or contracted property, then the motor vehicle owner or operator must not be assessed the vehi c le immobilization device removal fee; and (6) A fee is not charged to remove a vehicle immobilization device to a person who had paid to park and who was improperly booted. This amendment authorizes local government s to adopt an ordinance, resolution, regulation, or rule to provide for the licensure of licensed booting operators and licensed parking enforcement vendors; provided, that the ordinance, resolution, regulation, or rule must : ( 1 ) Require the annual licensure of licensees ; ( 2 ) Establish m inimum identification standards for licensed booting operators; ( 3 ) Issue a unique license number to each license e ; ( 4 ) Establish a method by which consumers may file and track complaints against a license e ; ( 5 ) Provide for the suspension or revocation of a license for good cause shown; ( 6 ) Require timely investigation of consumer complaints; ( 7 ) Require, as a condition of licensure, that a licensed parking enforcement vendor file a surety bond in an amount of no less than $250, 000 with th e local government . In addition to the remedies in the penalties provision of this bill, a person injured as a result of a violation of this amendment by a license e may file a claim against the surety bond; ( 8 ) Ensure that each commercial parking lot or contracted property complies with the signage requirements of this amendment ; ( 9 ) Provide for referral of any licensee to the attorney general and reporter, a law enforcement agency, or both, for a suspected violation of this bill ; and ( 10 ) Maintain a publicly accessible registry of all license es ."