Tennessee Senate Bill SB1038

Tennessee 2025-2026 Regular Session

• Introduced: 2/5/25
• Chaptered: 5/8/25
• Passed: 5/8/25

Caption

AN ACT to amend Tennessee Code Annotated, Section 70-2-106, relative to agent fees.

Summary

SB1038 amends Tennessee law governing fees collected by county clerks and other authorized agents when they sell licenses, permits, stamps, tags, registrations, or similar privileges on behalf of a state agency. The bill keeps the existing $3 flat fee for one annual license or permit and the $3 fee for a short-term license or permit valid for a day or a set number of days. It also adds explicit authority for the executive director to set an agent fee through competitive bidding for sales made over the telephone or by other electronic means. In practical terms, the bill preserves the current in-person agent fee structure while allowing a separate fee arrangement for remote or electronic sales channels. It applies to county clerks and any other person, firm, or corporation designated as an agent by the executive director under Tennessee Code Annotated Section 70-2-106. The act takes effect immediately upon becoming law.

Impact

The bill amends Tennessee Code Annotated Section 70-2-106(b)(1) by replacing the existing agent-fee subdivision. It does not change the underlying licensing or permitting authority, but it clarifies and expands how agent compensation may be set, especially for telephone and electronic transactions. The affected parties are county clerks, designated private or public agents, and the state agency executive director responsible for setting or contracting for those fees.

Sentiment

The bill appears to have been received favorably in committee, with strong support at each recorded stage. It passed the Senate Energy, Agriculture and Natural Resources Committee 8-1 and the Senate Finance, Ways and Means Committee 11-0, suggesting broad agreement on the need to update fee authority for modern sales methods. The bill ultimately became Public Chapter No. 349 and was enacted into law.

Contention

The only visible point of contention is the method for setting fees for telephone and electronic sales. The bill gives the executive director discretion to establish those fees through competitive bidding contract procedures, which may raise questions about administrative flexibility, vendor selection, and how much compensation agents should receive for remote transactions. However, the recorded votes show little opposition overall, indicating that any disagreement was limited.