Tennessee Code Title 55. Motor and Other Vehicles § 55-4-301

(1) Fifty percent (50%) of the funds must be allocated to the nonprofit organization or state agency or fund earmarked to receive the funds by the statute authorizing the issuance of the plate. The funds must be used solely to fulfill the purpose or to accomplish the goal specified in the statute authorizing the issuance of the plate;

(2) Forty percent (40%) of the funds must be allocated to the Tennessee arts commission created in title 4, chapter 20; and

(3) Ten percent (10%) of the funds must be allocated to the state highway fund.

(b)(1) The revenues allocated to the Tennessee arts commission pursuant to subdivision (a)(2) must be distributed by the arts commission in the form of grants to arts organizations or events which meet criteria established by the arts commission for receiving grants, within the following parameters:

(2) Before the revenue allocated in subdivisions (b)(1)(A) and (B) is granted to the particular local arts organizations or events, an amount not to exceed fifty percent (50%) of the revenues allocated to the Tennessee arts commission pursuant to subdivision (a)(2) may be expended for other grants and activities as determined by the commission.

(1) A nonprofit organization;

(2) A department, agency, or other instrumentality of state government; or

(3) A special reserve fund to be utilized by a state agency to effectuate a purpose deemed to be in the state's best interest.

(1) “Rural counties” are those counties that are not included within a metropolitan statistical area, as defined by the federal office of management and budget; and

(2) “Urban counties” are those counties that are included within a metropolitan statistical area, as defined by the federal office of management and budget and as enumerated by the Tennessee state data center.