Amends TCA Section 67-3-901 and Title 67, Chapter 4, Part 32.

Tennessee HB0127 amends existing laws regarding local option transit surcharges, expanding eligibility for local governments to collect these surcharges and redefining their use to include broader transportation improvement programs rather than solely public transit. The bill requires local governments to allocate a minimum average amount for road purposes over the past five years to qualify for surcharge revenues, with penalties for non-compliance that redirect funds to the state highway fund. Key changes include the expansion of eligible local governments and the inclusion of various transportation projects in the use of surcharge revenue.