Amends TCA Title 54, Chapter 1, Part 4; Section 57-5-201 and Section 67-4-402.

Under present law, 50 cents of the barrel tax on beer and 0.4 percent of the privilege tax on bottling and manufacturing, or importing, soft drinks for sale in Tennessee is allocated to the highway fund for the purpose of funding programs for the prevention and collection of litter and trash and matters related thereto. The allocations will end on the earlier of a federal law that imposes a mandatory bottle deposit or July 1, 2028. This bill adds that such revenues may be used for special grants for roadway, waterway, and shoreline litter reduction initiatives. This bill authorizes the department of transportation to provide special grants to programs established for the prevention and collection of litter and trash and related matters: (1) Conducted by nonprofit groups; (2) Conducted by local governments; (3) For the purpose of providing technical and policy assistance and enforcement of litter laws by state and local law enforcement agencies and the courts; and (4) For the purpose of providing educational, marketing, and service-oriented events and efforts. This bill prohibits the department from basing the amount of a special grant provided to a municipality under this bill on the department's litter grant program formula for county governments.