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Back to SB 703
Tennessee General Assembly· SB 703Signed by Governor.

Highways, Roads and Bridges - As enacted, requires TACIR to study sustainable funding sources that meet this state's future transportation infrastructure needs and submit its recommendations. - Amends TCA Title 4; Title , the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Tennessee General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the chaptered version. The official bill page.
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                             PUBLIC CHAPTER NO. 438

                                                     SENATE BILL NO. 703

                                           By Massey, Campbell, Seal, Hatcher

                                             Substituted for: House Bill No. 736

                                    By Vital, Howell, Hawk, Bricken, Littleton, White

AN ACT to amend Tennessee Code Annotated, Title 4; Title 9; Title 54 and Title 55, relative to
          transportation infrastructure funding.

          WHEREAS, transportation is a priority to the State of Tennessee, and depleting revenue is a
vital problem; and

          WHEREAS, due to new vehicles becoming more energy efficient, it is taking less gas to drive
the same distance, and therefore, less gasoline tax is being collected; and

          WHEREAS, the cost of building and maintaining roads is ever increasing; and

          WHEREAS, the State's population is rising and visitors to the State are putting more people
on the road, causing greater wear and tear and affecting resurfacing needs on the State's roads and
bridges; and

          WHEREAS, it is imperative that alternative sources of funding be established to supplement
the decreases in transportation infrastructure funding due to vehicles becoming more fuel efficient or
using no fuel and due to inflation-related increases in road construction and maintenance costs;
now, therefore,

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1.

                    (a) The Tennessee advisory commission on intergovernmental relations (TACIR)
          shall conduct a study and prepare a report on recommendations for establishing sustainable
          funding sources that meet this state's future, long-term transportation infrastructure needs.

                    (b) The study and report must:

                              (1) Identify the critical, long-term highway and bridge infrastructure needs of
                    this state, the annual highway and bridge infrastructure funding gap, and the amount
                    needed to fund the maintenance, repair, and modernization of existing highways and
                    bridges across the state;

                              (2) Identify the recurring expenditures associated with the state highway fund,
                    including, but not limited to, salary increases for employees of the department of
                    transportation;

                              (3) Include a comprehensive review and analysis of appreciated sources of
                    revenue that have the potential to grow over time and that will meet the critical, long-
                    term highway and bridge infrastructure needs of this state, including, but not limited
                    to, the following revenue sources:

                                         (A) Road usage fees;

                                         (8) Rental car fees;

                                         (C) Transportation network company fees;
SB 703

                                        (D) Retail delivery fees;
                                        (E) Commercial vehicle road usage charges;
                                        (F) Highway impact fees for heavy trucks;
                                        (G) Dedicated state funds consisting of revenues from the collection of
                              state sales tax from the sale of new or used vehicles and new or used tires in
                              this state; and
                                        (H) Other options that are based on variables, including, but not limited
                              to, vehicle weight, or that account for variations in road usage and degree of
                              damage caused to transportation infrastructure by vehicles of different sizes
                              and configurations;
                              (4) Estimate the amount of revenue generated in this state from the sources of
                    income identified pursuant to subdivision (b)(3);
                              (5) Assemble information concerning the stakeholders affected by the
                    appreciated sources of revenue identified in subdivision (b){3), including, but not
                    limited to, the trucking industry, automobile dealers, and rental car, delivery, and
                    transportation network companies; and
                              (6) Survey appreciated sources of revenue successfully used by at least three
                    (3) other states to address their challenges in establishing sustainable transportation
                    infrastructure funding.
                    (c) All appropriate state departments and agencie.s shall provide assistance to TACIR
          in connection with the study required by subsection (a).
                    (d) On or before September 30, 2026, TACIR shall report its findings and
          recommendations, including any proposed legislation, to the chair of the committee of the
          house of representatives having jurisdiction over transportation matters, the chair of the
          transportation and safety committee of the senate, and the legislative librarian.
                    (e) It is the legislative intent that this study must be conducted from TACIR's existing
          resources.
          SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.

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               SENATE BILL NO. 703

PASSED:        April 21, 2025

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                               ~          '  RAND~ McNALLY

                                - - --;-

                               SPEAKER OF THE SENATE

                               CAMERO~EXTON,SPEAKER
                               HOUSE OF REPRESENTATIVES

APPROVED this  ~dayof f\l\o,/\/              2025

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               BILL LEE, GOVERNOR
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