AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 9 and Title 58, relative to providing financial assistance in counties impacted by Hurricane Helene.
Summary
SB0646 creates and funds a Hurricane Helene interest payment program to help local governments in Tennessee counties included in the federal disaster declaration recover from storm damage. The bill amends Tennessee law to clarify that the Hurricane Helene interest payment fund may be used to pay local governments’ loan charges and, for up to three years, the interest costs on money borrowed for eligible disaster recovery expenses. It also defines “loan charges” broadly to include common lender-imposed costs such as origination, application, appraisal, payment processing, and brokerage fees.
The measure is targeted relief legislation rather than a broad policy change. It applies only to local governments in affected counties and limits interest assistance to the lower of 5% or the prime rate. The act takes effect immediately upon becoming law, reflecting the legislature’s intent to speed aid to disaster-impacted communities.
Impact
The bill amends Tennessee Code Annotated Section 9-4-215(b) within the state’s disaster recovery financing framework. Its practical effect is to expand and clarify the uses of the Hurricane Helene interest payment fund so that eligible local governments can offset borrowing costs tied to recovery from the storm. Counties outside the federal disaster declaration are not eligible, and the statute now expressly covers both interest and associated loan charges for qualifying recovery borrowing.
Sentiment
The available voting history shows strong bipartisan support and no recorded opposition in committee. The Senate State & Local Government Committee advanced the bill 9-0, and the Senate Finance, Ways and Means Committee advanced it 10-0, both with amendments. That pattern suggests broad agreement that affected local governments needed immediate financial assistance after Hurricane Helene.
Contention
There is little evidence of substantive controversy in the available record. The main policy choices are the scope of eligibility—limited to counties included in the federal disaster declaration—and the cap on reimbursable interest, set at the lesser of 5% or the prime rate. Any discussion would likely center on the adequacy of that cap, the three-year time limit, and which loan-related costs qualify as reimbursable charges, but no direct objections are reflected in the provided committee results.
Crossfiled
AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 9 and Title 58, relative to providing financial assistance in counties impacted by Hurricane Helene.
AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 9 and Title 58, relative to providing financial assistance in counties impacted by Hurricane Helene.