AN ACT to amend Tennessee Code Annotated, Title 4; Title 7; Title 55; Title 56 and Title 65, relative to delivery network companies.
SB2458 creates a new statutory framework in Tennessee for “delivery network companies” (DNCs), which are businesses that use a digital platform to connect customers with drivers who pick up and deliver products from merchants. The bill defines key terms, limits the kinds of deliveries covered, and states that DNCs are governed exclusively by this new part rather than by the Department of Safety’s existing authority over delivery operations. It also requires DNCs to maintain a Tennessee agent for service of process and sets out operational rules for pricing disclosures, driver identification, receipts, zero-tolerance drug and alcohol policies, recordkeeping, background checks, and customer complaint procedures.
The bill also establishes detailed insurance and driver-eligibility requirements. Beginning July 1, 2026, DNCs and drivers must comply with automobile liability insurance standards that vary depending on whether the driver is logged into the platform or actively making a delivery. The bill requires disclosures to drivers about insurance coverage and allows insurers to exclude coverage for certain DNC-related activity if the exclusion is clearly stated and approved. It further requires DNCs to verify driver qualifications, including age, license status, registration, financial responsibility, criminal history, sex offender registry status, and driving record, and it prohibits drivers with specified convictions or violations from participating.
In addition to safety and insurance rules, SB2458 regulates how delivery services are paid for and conducted. It bars street sales, cash payments, and cash solicitation, requiring electronic payment through the DNC’s digital network. It also includes nondiscrimination requirements, prohibits extra charges for customers with physical disabilities, and limits disclosure of customer personally identifiable information except in specified circumstances. The bill clarifies that DNCs are not considered to own or control the vehicles used by drivers and defines when a DNC service begins and ends for purposes of the law.
The bill’s impact on state law is to create a specialized regulatory regime for app-based delivery services within Titles 55, 56, and 65, while carving these companies out from some existing Department of Safety oversight. It would impose new compliance obligations on delivery platforms, drivers, insurers, and potentially merchants and customers using these services. Because the act does not take effect until July 1, 2026, the new requirements would be prospective and give the industry time to adjust.
The general sentiment reflected in the committee vote appears cautiously favorable but not unanimous: the Senate Commerce and Labor Committee recommended passage with amendments by a 7-2 vote. That suggests support for formalizing and regulating the growing delivery-network industry, while the dissent indicates some concern about the scope or details of the regulatory and insurance framework. The main points of contention likely center on the extent of state oversight, the insurance mandates, the liability rules, and the restrictions placed on drivers and insurers.
SB2458 would add a new part to Tennessee Code Annotated Title 65 governing delivery network companies and would preempt other Department of Safety regulation of delivery operations for these companies. It would impose new duties on DNCs regarding disclosures, background checks, driver screening, complaint handling, nondiscrimination, payment methods, privacy, and insurance, while also setting driver disqualification standards and defining the legal relationship between DNCs, drivers, insurers, and customers. The bill would affect delivery platforms, drivers, insurers, and customers, and would take effect July 1, 2026.
The available voting history suggests the bill had generally favorable support, as the Senate Commerce and Labor Committee recommended passage with amendments by a 7-2 vote. That outcome indicates broad agreement that delivery-network companies should be regulated, but not complete consensus on the bill’s approach. The absence of transcript discussion limits more precise sentiment analysis, but the amended recommendation suggests lawmakers were willing to refine the proposal rather than reject it outright.
The likely areas of contention are the bill’s regulatory breadth and its insurance/liability provisions. Critics may object to exempting DNCs from Department of Safety oversight while creating a separate regulatory scheme, or to the detailed requirements imposed on drivers and insurers, including background checks, mandatory disclosures, and coverage rules. The 2 dissenting votes in committee suggest at least some concern about whether the bill appropriately balances consumer protection, driver flexibility, and business burdens. The bill’s restrictions on cash payments, street sales, and driver eligibility may also have been debated as potentially limiting participation in the delivery market.