Tennessee House Bill HB1684

Tennessee 2023-2024 Regular Session

• Introduced: 1/8/24
• Refer: 1/10/24
• Refer: 2/14/24
• Refer: 3/6/24
• Refer: 3/11/24
• Refer: 3/20/24
• Refer: 3/26/24
• Chaptered: 4/17/24
• Passed: 4/17/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 58, Chapter 2, relative to the establishment of the Resilient Tennessee Revolving Loan Act.

Impact

The implementation of HB 1684 will significantly impact Tennessee's statutory framework regarding disaster preparedness. By establishing a dedicated fund within state treasury, the bill aims to provide low-interest loans (up to 1%) to eligible counties and local governments, as well as entities meeting FEMA guidelines. This financial support is designed to bolster local resilience against various natural hazards, including floods, earthquakes, and severe storms, facilitating critical projects that directly address these risks.

Summary

House Bill 1684, known as the Resilient Tennessee Revolving Loan Act, seeks to establish a revolving loan fund aimed at enhancing the state's capacity for disaster mitigation and resilience. The bill emphasizes the importance of preparing Tennessee for disasters by creating a fund that can be utilized by local governments for projects intended to reduce hazards. This initiative aligns with the federal STORM Act, which encourages states to establish similar funds to facilitate risk mitigation projects, thus allowing Tennessee to tap into federal resources for local government assistance.

Sentiment

The sentiment surrounding HB 1684 has generally been positive, particularly among legislators who prioritize disaster preparedness. Proponents believe that the fund will provide necessary financial resources for local governments, enhancing their ability to mitigate risks associated with natural disasters. Additionally, there is a recognition of the collaborative opportunity this bill creates in leveraging federal funds for local projects. However, some concerns have been raised about the administrative capacity of state agencies to manage the fund effectively and ensure that the loans are distributed equitably and efficiently.

Contention

While there appears to be broad support for the bill's objectives, notable points of contention include the accountability and transparency associated with fund administration. Critics argue that without proper oversight mechanisms, there could be challenges in ensuring that the loans are utilized effectively for the intended hazard mitigation projects. The requirement for local governments to demonstrate both need and repayment capability adds another layer of complexity to the fund's implementation, which could pose barriers for smaller municipalities lacking the necessary financial infrastructure.