Strengthening Penalties for Cargo Theft in Tennessee

Cargo theft has surged nationwide across every mode of freight transportation, driving up costs for shippers, retailers, and ultimately consumers. As a critical logistics hub, Tennessee has become an especially attractive target for organized crime rings—contributing to losses that total as much as $35 billion annually in the United States. 

The Chamber has spent several years working to address this growing threat by supporting legislation to strengthen penalties for cargo theft, and this year those efforts appear likely to succeed. While HB0555 (Capley) / SB0671 (Taylor) has received broad bipartisan support in the General Assembly over the past two sessions, proposed increases in felony penalties trigger a fiscal note, requiring dedicated funding in the state budget for the bill to take effect. Governor Lee’s inclusion of that funding in his administration’s budget amendment marks a pivotal breakthrough and marking a major step towards clearing the final hurdle to enactment and positioning Tennessee to establish stronger, more meaningful deterrents against organized cargo theft.  

What the legislation does 

The goal of this bill is to help combat the growing issue of cargo theft in the state of Tennessee. With the implementation of the bill, the penalty for this form of burglary would be upgraded from a class E felony to a class D felony. This creates an added layer of deterrence for those attempting to disrupt the transportation of cargo in the state.  

Why it matters 

Tennessee has seen a continued rise in the rates of cargo theft in recent years; in 2023, Tennessee accounted for 9% of all recorded cargo theft in the United States. With Tennessee’s growing economy, businesses need to be assured that their operations are not at risk of being targeted while in transit. Additionally, the geographic location of Tennessee makes the state a gateway between eastern and western railroads in the US, making it vital that cargo passing through the state can reach its intended destination.  

Bill Update 

Last year, after passing through the Judiciary committee, HB0555/SB0671 was sent to Finance and ultimately placed behind the budget and did not receive funding. On Monday, Governor Lee released his annual budget amendment, which included the necessary funding to implement HB0555/SB0671. This is a major step towards enactment, as the budget amendment will serve as the baseline from which the legislature appropriates money in the upcoming fiscal year. The Chamber will work to ensure that this funding remains in the final budget passed by the General Assembly before they adjourn sine die.