Insurance subcommittee advances bill to consolidate bond-certificate process under Department of Revenue

The Tennessee House Insurance Subcommittee voted Feb. 12 to pass House Bill 119, a measure that would consolidate issuance of certificates for cash bonds and deposits under the Department of Revenue.

Supporters told the subcommittee the change would simplify an existing two-department process and reduce confusion for the small number of people who use the cash-bond option.

Chairman Hicks, who presented the bill, said the current practice requires one state department to accept a cash bond or deposit while the Department of Safety issues a certificate valid for one year. He said HB 119 would place the certificate with the Department of Revenue to centralize recordkeeping and streamline the process. Committee discussion did not produce technical objections.

Hicks said that the administrative impact is small: about 41 people are issued bonds under the existing process and only two certificates involve cash bonds. The subcommittee recorded no debate beyond clarifying questions and proceeded to a roll-call vote.

On a roll call, Representatives Bob Freeman; Youssef Hakim; Chairwoman Esther Hilton Haines; Renee Jones; Anssavi Kumar; Kevin Raper; and Rick Scarborough voted to advance the bill (7 ayes, 0 nays). The bill will go to the full House Insurance Committee for further consideration.

The measure, as presented, does not alter the substantive requirements for bonds or certificates; it moves administrative responsibility for certificate issuance and recordkeeping to the Department of Revenue.