[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6632815,"mediaKeyId","2670288-f2fbff1c5a7010f976bee71b8600ac59","parentId",2670288,"title","Motor Vehicle Commission advances fee increases, adds civil-penalty and compliance rules","audioSeconds",5692,"startMs",118000,"endMs",5810000,"viewUrl","/Search/View?dp=1&key=2670288-f2fbff1c5a7010f976bee71b8600ac59&start=118&end=5810","thumbnailUrl","https://assets.pipeline.soar.com/2670288-f2fbff1c5a7010f976bee71b8600ac59/thumbnail_118000.jpg","articleUrl","/articles/6632815/Tennessee/Motor-Vehicle-Commission-advances-fee-increases-adds-civil-penalty-and-compliance-rules","mediaUrl","https://secure.pipeline.soar.com/6632815-f6e3d3cdd8fce7d31c6c3d7d57fbbad4/orig.mp4?Expires=1775699481&Signature=OB-0la9cG-6wzIoSB1QkMVNcIt8z0KXbPw~f6aA5Te12dJhu5Ik5lD9F0CGOwD98AZ2gmm-xhInMktbjaWHh1m3CCDQLLnR4WDuhK9PB9rPKiDVtJQPb7~a-aKJPKRvxC-XSfPKXHXxJ2caMjSX34FnWjbBO-oaZqi6X~PxxnKVMwEXlFPxUh6xvS4ohQYVGIoV0SrkdK0xqcgljvx8eIfQlBstID5l043Hmt1vZE4xSQ0IIWCcXHHvI2ZeyR3D9rfnSt4lU--IR3-AUB-w1GEJLu758vvTx624epjjgKCUFsHgygb30YqUdJc~cjg8PMgJMk-8y7-MVBYcm3-9oYw__&Key-Pair-Id=KUT5TJCACFTXG","author","Commerce & Insurance","date","2025-03-18T14:53:41.78Z","article","CHARLES WEST, chairman of the Rules Committee of the Tennessee Motor Vehicle Commission, reported changes to the commission’s rules and moved the package into the formal rulemaking process after a public hearing on March 17 in Nashville.

The package, presented at the rulemaking hearing by Sierra Shepherd, assistant counsel in the Department of Commerce and Insurance, would increase several biennial license fees, add new enforcement and compliance provisions, remove an outdated certified-mail requirement and authorize a 30-day response requirement for communications from the commission. The commission also voted to adopt required procedural attachments — a regulatory flexibility addendum, an impact-on-local-government statement and information for the joint government operations committee — and to forward the rules for the attorney-general and secretary-of-state review required under Tennessee law.

Why it matters: The fee increases are intended to help the commission maintain self-sufficiency; staff estimated additional revenue of $1,574,000 for the combined fiscal years 2026 and 2027. The package also tightens enforcement tools (a civil-penalty rule and factors for assessing fines) and clarifies licensee responsibilities for responding to the commission and notifying the agency when a dealer relocates.

Key provisions and fee changes

- License-fee increases (biennial amounts shown in proposed rule language): manufacturer/distributor, factory branch and distributor branch license fee from $1,600 to $2,400; motor vehicle dealer (new or used) from $400 to $600; factory or distributor representative from $400 to $600; automotive dismantler and recycler from $400 to $600; automobile auction fee from $800 to $1,200; recreational vehicle dealer from $400 to $600; duplicate license fee from $25 to $50; name-change fee from $400 to $600; automotive mobility dealer from $400 to $600; fee manufacturers pay per franchise dealer from $50 to $75; motor vehicle salesperson fee from $35 to $50.

- New or amended rules: a civil-penalty rule allowing assessment of a penalty for each separate violation and listing factors for determining penalty amounts; a requirement that licensees comply with applicable Tennessee and federal laws; a requirement that licensees respond to commission mail within 30 days; a rule requiring a dealer relocating to submit a new application and notify the commission within 30 days of the move date; revisions to the motor-vehicle shows/displays rule to better reflect current practice and remove some prior show-permit requirements.

Process and next steps

Sierra Shepherd summarized the hearing process and the statutory steps that follow: rules are filed with the secretary of state and remain for 90 days before taking effect, and fee rules generally take effect July 1 if timing requirements are met. The commission adopted the hearing rules language, the regulatory flexibility addendum and the impact-on-local-government statement in roll-call votes on March 17 and directed staff to file the package for review by the governor’s office and the attorney general’s office.

Director Denise Lawrence told commissioners the department posted hearing notices on the program website and sent an e-notify to licensees. Shepherd said there were no written public comments submitted to the commission for this hearing.

Small-business and fiscal findings

Commission staff reported the commission licenses 3,360 new, used and RV dealers across Tennessee and issues more than 900 other licenses (auctions, manufacturers/distributors, representatives, dismantlers/recyclers). Staff estimated about 60% of dealer licensees meet the program’s definition of small business (fewer than 300 vehicles sold annually). The proposed biennial fee increases were described as “minimal” for many small businesses but larger in absolute dollars for larger licensees; staff concluded no less-burdensome alternatives were available. The commission adopted the regulatory flexibility addendum by roll-call vote.

Commission remarks and forward view

Commissioners discussed the broader trend of dealer “boutique” or showroom models and said the commission may need to consider further rulemaking to address how temporary display locations and boutique showrooms operate under Tennessee rules. Charles West said the retrospective review was required by Public Chapter 328 (2021) and that staff had worked to consolidate items into a single package to reduce confusion with a concurrent fee rulemaking.

Timing: staff projected that, after required reviews, fee changes could be effective as soon as the rule process and legislative timing allow, and noted fee rules frequently take effect July 1 if the timing in the secretary-of-state filing is met.

Ending: The commission approved the rulemaking items and asked staff to advance the package through the governor’s and attorney-general’s review; the commission will receive updates as those reviews and any legislative review proceed.","mediaType","Video","parentTitle","MVC Rulemaking Hearing 3/17/2025","oneSentenceSummary","CHARLES WEST, chairman of the Rules Committee of the Tennessee Motor Vehicle Commission, reported changes to the commission’s rules and moved the package into the formal rulemaking process after a public hearing on March 17 in Nashville.","taxTitle","Commerce & Insurance, Deparments in Office of the Governor, Organizations, Executive, Tennessee","taxId",17379,"location","Tennessee","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6632811,"Motor Vehicle Commission fines dealership group $38,000 for unlicensed sales activity, deceptive advertising",2127,2994000,5121000,"/Search/View?dp=1&key=2670288-f2fbff1c5a7010f976bee71b8600ac59&start=2994&end=5121","https://assets.pipeline.soar.com/2670288-f2fbff1c5a7010f976bee71b8600ac59/thumbnail_2994000.jpg","/articles/6632811/Tennessee/Motor-Vehicle-Commission-fines-dealership-group-38000-for-unlicensed-sales-activity-deceptive-advertising","https://secure.pipeline.soar.com/6632811-da9213b5a11c8a35262e39aa9a56c992/orig.mp4?Expires=1775699481&Signature=DgTAaQWAYRvzzhHn1CCv7MxyZuiMbYmtyQZCwBB5eQIYENKl-XNmg58J9NhIKcDsGwiOcMqFSZahJo0yn31qyhk-pvlBtuZ29lJVRmKBbRJHNtW5PGrV4c8zdM8KV8ovSzBq2ZtuTzWjOD5SNxRwGjPC7s440fUUwAzkiyxyHk5U~rR2bSbh741x817ZO1zFGb5mdxl9i59xpQyOgQOnHwRzqP1snwTqwTcsVlkSIRR-uaqYX1hwqCRGqIZPVHvhBCBHVgXNJgUPWiZqPp1-GLj2pyn7JA1mUNARl90LawaeuxNmrvp~CCX5OZg4r8-qxVlOWXjoNBEu7G-zRES0AA__&Key-Pair-Id=KUT5TJCACFTXG","Legal staff presented a summary of an investigation into alleged unlicensed sales activity, deceptive advertising and related recordkeeping problems involving three related entities owned by the same automotive group. Erica Smith (legal staff) told the commission investigators found unlicensed sales activity at a downtown showroom, confusing online advertising that made the showroom appear to be a licensed dealer, and use of temporary tags issued by a different licensed dealership.

Smith recommended a maximum-penalty approach given staff’s view of intentional violations and repeated warnings: a $20,000 civil penalty for the unlicensed showroom (respondent A), a $15,000 civil penalty recommendation for the affiliated licensed location (respondent B), and a $3,000 civil penalty for the licensed dealership that issued the temporary tags (respondent C). Smith said, “my recommendation for the showroom location, the unlicensed location, is a $20,000 civil penalty.” She also recommended opening complaints against the affiliated licensed entities.

Commissioners discussed details and enforcement options. Smith told commissioners investigators found that of six vehicles advertised for the showroom at the time of investigation, three had been sold and that showroom staff admitted facilitating at least 10 test drives per month; staff also found contract paperwork using the showroom address while temporary tags had been issued by another franchise in the same ownership group. Commissioners flagged public-safety and law-enforcement concerns tied to temporary-tag issuance and discussed remedies including consent orders, civil penalties and potential license suspension if violations continued.

Vote and outcome

After discussion, the commission adopted legal staff’s recommendation with a motion that was narrowed on the floor. The final recorded vote approved the recommendation for respondent A: a $20,000 civil penalty for the unlicensed showroom. Commissioners recorded an affirmative roll-call vote to adopt staff’s recommendation for respondent A. Staff indicated related complaints for the affiliated entities have been opened and will be presented for response and possible future action; staff said those matters may return to the commission at the April meeting for further action or formal hearings.

Context and next steps

Smith said the commission had previously informed the business in writing that the downtown space could operate only as a showroom and not as a licensed dealer location; staff and the executive director had made a compliance visit. Legal staff said the company had represented in writing that certain transactions were handled at a separate licensed location but that consumers searching online would find vehicles listed at the showroom address, creating consumer confusion and triggering third-party marketplaces to list inventory as if it were sold at the showroom.

Commissioners and staff said the agency plans to follow up: staff will send a proposed consent order and the entities will have time to accept or contest it; if they contest, staff said a formal hearing would be scheduled. Commissioners emphasized that repeated violations could lead to license suspension or revocation.","The Tennessee Motor Vehicle Commission voted to impose civil penalties on a dealer group after legal staff reported unlicensed sales activity at a downtown showroom that misled consumers and involved misuse of temporary tags. The commission approved a $20,000 penalty for the unlicensed showroom and continued related complaints against affiliated,","actionData","errors"]

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Motor Vehicle Commission advances fee increases, adds civil-penalty and compliance rules

Motor Vehicle Commission fines dealership group $38,000 for unlicensed sales activity, deceptive advertising