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SB 6003

Public Funds and Financing - As enacted, creates two funds within the state treasury to be known as the Hurricane Helene interest payment fund and the governor's response and recovery fund; authorizes moneys in each fund to be used to assist with the response to and the recovery from certain declared emergencies. - Amends TCA Title 9, Chapter 4, Part 2.

114th First Extraordinary Session (January 2025)

The bill creates two state funds to assist Hurricane Helene response: pay local governments' loan interest and provide grants/loans for East Tennessee recovery, with sunset in 2030

Pub. Ch. 2
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Bill Summary · SB 6003

Summary — SB 6003 (Pub. Ch. 2, 2025)

Status: Enacted (Public Chapter 2). Filed Jan 22, 2025; signed by Governor Feb 12, 2025; effective on enactment.

Main purpose

SB 6003 creates two dedicated state treasury funds administered by the Tennessee Emergency Management Agency (TEMA) to support response and recovery from Hurricane Helene and other declared emergencies: (1) the Hurricane Helene Interest Payment Fund and (2) the Governor’s (Helene) Response and Recovery Fund. The bill authorizes use of those funds for interest-cost relief, grants, and loans tied to emergency response and recovery.

Key provisions

  • Hurricane Helene Interest Payment Fund (new § 9-4-215)

    • Purpose: pay local governments’ interest costs for up to three years on loans borrowed to pay eligible Hurricane Helene disaster-recovery costs.
    • Interest coverage limited to either 5% or the prime interest rate, whichever is lower.
    • Eligibility limited to local governments located in counties included in the federal disaster declaration for Hurricane Helene.
    • Fund accepts appropriations, grants, federal funds (as permitted), and other moneys; funds are invested and do not revert to the general fund.

  • Governor’s (Helene) Response and Recovery Fund (new § 9-4-216; as amended)

    • Purpose: respond to or recover from Helene damage in East Tennessee (as amended), including agricultural recovery, unemployment assistance, and business recovery assistance.
    • Moneys may be expended only in response to Hurricane Helene (amendment narrows original broader emergency language).
    • TEMA may make grants or loans; loan repayments return to the fund.
    • The fund’s text (as amended) permits reversion to the general fund and includes a sunset/reversion trigger: moneys remaining June 30, 2030, revert to the general fund unless changed.
    • Interest earnings may be transferred to the Hurricane Helene Interest Payment Fund.

  • Reporting and rulemaking

    • TEMA must report at least annually to the chairs of specified legislative committees on amounts expended, purposes, and remaining balances.
    • Finance & Administration commissioner may adopt rules under the Uniform Administrative Procedures Act to implement the funds.

Fiscal impact

  • Fiscal Note (Tennessee Fiscal Review Committee) estimates a one-time General Fund increase in expenditures of $210,000,000 (FY25-26), split as:
    • $110,000,000 to the Hurricane Helene Interest Payment Fund
    • $100,000,000 to the Governor’s Response and Recovery Fund
  • The timing and amount of future disbursements to local governments and third parties are uncertain and depend on loan/grant choices, future events, and any federal funds. The fiscal analysis assumes no federal deposits.

Who is affected

  • Local governments in counties listed in the federal Hurricane Helene disaster declaration (eligible for interest-cost assistance).
  • Businesses, agricultural interests, unemployed persons, and other third parties potentially eligible for grants or loans from the Governor’s (Helene) Response and Recovery Fund, subject to TEMA’s program design and eligibility rules.
  • State fiscal exposures are limited to the appropriations made and the structure of future disbursements.

Amendments and legislative actions

  • Amendment HA6037 (retitled fund to “Governor’s Helene response and recovery fund,” narrowed purpose to Helene damage in East Tennessee, allowed potential reversion to the general fund, and added a June 30, 2030 reversion date) was included in the enacted text.
  • Amendment HA6005 (would have created a Volunteer Neighbor Assistance Fund with $50M from the revenue fluctuation reserve and $10,000 homeowner grants) was tabled and not adopted.
  • Amendment HA6006 (would have provided one-time $2,500 sales tax reimbursements to property owners) was withdrawn.

Effective date

  • The act took effect upon becoming law (effective date shown as 02/12/2025).

Compiled from official sources — confirm details with the bill’s official record.

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