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

Tennessee SB1307 amends existing laws regarding local option transit surcharges, allowing any county and incorporated city or town in the state to levy such surcharges for transportation improvement programs, which now include a broader range of transportation projects beyond public transit. Key provisions include a requirement for local governments to allocate funds for road purposes at least equal to the average of the previous five fiscal years to remain eligible for surcharge revenues, and the exclusion of certain funding sources from this average calculation. Additionally, the bill revises the definition of implementing agencies and the use of surcharge revenues, shifting the focus from transit to general transportation improvements.