Bill > HB2543

This bill amends Tennessee Code Annotated, Section 9-4-216, to clarify the conditions under which funds from the governor's response and recovery fund can be distributed to local governments and individuals following an emergency or disaster. Key changes include transferring oversight from the commissioner of finance and administration to the director of the Tennessee Emergency Management Agency (TEMA), and defining "eligible individuals in a qualifying county" as residents in a county that has declared a state of emergency and can prove loss or need, and "eligible local governmental entities" as counties, cities, municipalities, metropolitan governments, or local education agencies. For local governmental entities to receive funds, the governor must have declared a state of emergency, the local jurisdiction must have also declared one, federal assistance must be insufficient, eligible costs must exceed a certain threshold determined by TEMA, and a written request must be submitted by the chief elected official. For individual assistance, similar emergency declarations are required, but state damage totals must be unlikely to meet federal thresholds for individual aid, and eligible costs within a county must exceed an amount set by TEMA, with damage to public property not being an eligible cost. The bill also specifies that funds can cover losses not covered by insurance or other government entities, outlines eligible project types for local governments such as debris removal and infrastructure repair, sets a 18-month deadline for project completion, and details local cost-share requirements based on county economic status, though the governor can waive these. Loan repayments are to be returned to the fund, and funds cannot cover insurance deductibles. Finally, local governmental entities receiving funds must obtain all-risk property and flood insurance within 120 days of approval, with potential extensions.