Amends TCA Title 4; Title 49; Title 54 and Title 55.

This bill requires the department of transportation ("department") to establish and administer a student pedestrian protection grant program ("program"). The purpose of the program is to provide grants to local governments to be used solely for designing, constructing, and repairing or replacing sidewalk infrastructure around public schools in this state. FUNDING This bill provides that a separate fund is created within the general fund, to be known as the student pedestrian protection grant fund. The fund is composed of funds appropriated by the general assembly for the fund and gifts, grants, and other donations received by the department for the fund. This bill clarifies that, for the purpose of awarding grants from the fund, it is the legislative intent that funding be appropriated in fiscal year 2025-2026 in the general appropriations act. GRANTS Subject to the availability of funds and beginning not later than January 1, 2026, this bill requires the department to allocate and disperse grants each fiscal year to local governments. The grants must be awarded on a competitive basis. This bill requires the commissioner to propose the annual recurring budget of the program and to establish the selection criteria for awarding grants. However, funds must not be obligated or expended under the program unless the local government agrees to match the proposed expenditures in an amount established by the commissioner. The commissioner must determine whether all, or a portion, of the required match may be provided by in-kind project work approved by the commissioner. REPORTS This bill requires each recipient of student pedestrian protection grant funds to provide a quarterly report to the department detailing the progress on use of the funds and a final report once all of the grant funds have been expended. On or before October 1, 2026, and by October 1 of each subsequent year, this bill requires the department to prepare a report to the general assembly regarding the funds received and payments made by the fund. RULEMAKING AUTHORITY This bill authorizes the commissioner to promulgate rules to effectuate the bill.