Tennessee 2025-2026 Regular Session

Tennessee House Bill HB1364 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	SENATE BILL 1009
3	3	By Oliver
4	4
5	5	HOUSE BILL 1364
6	6	By Chism
7	7
8	8
9	9	HB1364
10	10	002831
11	11	- 1 -
12	12
13	13	AN ACT to amend Tennessee Code Annotated, Title 4;
14	14	Title 9; Title 50 and Title 67, relative to relief for
15	15	small businesses.
16	16
17	17	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	18	SECTION 1. Tennessee Code Annotated, Title 4, Chapter 3, Part 7, is amended by
19	19	adding the following as a new section:
20	20	4-3-722.
21	21	(a) There is created a fund within the state treasury to be known as the small
22	22	business recovery grant fund, to be administered by the department of economic and
23	23	community development.
24	24	(b) The fund consists of:
25	25	(1) Funds appropriated by the general assembly; and
26	26	(2) Gifts, grants, and other donations received by the department for the
27	27	fund.
28	28	(c) Moneys deposited in the fund must be invested for the benefit of the fund
29	29	pursuant to § 9-4-603.
30	30	(d) Moneys in the fund must not revert to the general fund but must remain
31	31	available to be used by the department exclusively for the purposes specified in
32	32	subsection (f).
33	33	(e) The commissioner of economic and community development may
34	34	promulgate rules in accordance with the Uniform Administrative Procedures Act,
35	35	compiled in chapter 5 of this title, to implement this section.
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40	40	(f) Moneys in the fund must be used to assist eligible small businesses with
41	41	eligible costs incurred in responding to, or recovering from, extenuating circumstances.
42	42	Grants made from the fund must cover eligible costs incurred during any one (1) period
43	43	of three (3) consecutive months, but no more than six (6) consecutive months.
44	44	(g) Grants to assist eligible businesses must be made only to nonprofit
45	45	organizations, local governments or to their economic development organizations, or
46	46	other political subdivisions of the state. Grants from the fund may be made in all
47	47	counties where the commissioner of economic and community development determines
48	48	that the grants will have a direct impact on assisting eligible small businesses that
49	49	operate as independent arts or cultural organizations or in the hospitality industry.
50	50	(h) An eligible small business shall submit a complete application in a form and
51	51	manner prescribed by the department. The department shall establish the procedures
52	52	and time period for eligible small businesses to submit applications to the program.
53	53	(i) Beginning January 1, 2026, and on or before January 1 of each year, the
54	54	department shall submit to the chair of the finance, ways and means committee of the
55	55	senate and the chair of the committee in the house of representatives having jurisdiction
56	56	over matters related to public funds a report stating the amount expended from the fund
57	57	in the past year, the purposes for which the money was expended, and the amount
58	58	remaining in the fund.
59	59	(j) As used in this section:
60	60	(1) "Eligible costs" means costs incurred by an eligible small business
61	61	that are attributable to extenuating circumstances, including payroll costs, costs
62	62	of commercial rent or mortgage, insurance costs, utility costs, and costs to repair
63	63	or replace landscaping, parking spaces, or other real property or improvements
64	64	to real property owned by the eligible small business;
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69	69	(2) "Eligible small business" means an independent, for-profit entity that:
70	70	(A) Engages in business with the public;
71	71	(B) Is primarily owned and operated by two (2) or more natural
72	72	persons;
73	73	(C) Maintains a single physical business location in this state;
74	74	(D) Is not owned as a corporation or sole proprietorship or by an
75	75	independent contractor;
76	76	(E) Demonstrates, as determined by the department, that it has
77	77	sustained a substantial decline in gross revenue, substantial business
78	78	modifications, or a substantial disruption to its operations due to
79	79	extenuating circumstances;
80	80	(F) Has total gross receipts of not more than one million dollars
81	81	($1,000,000) averaged over a three-year period; and
82	82	(G) Employs no more than fifteen (15) persons on a full-time
83	83	basis; and
84	84	(3) "Extenuating circumstance":
85	85	(A) Means an unforeseeable event that is outside the control of
86	86	the eligible small business;
87	87	(B) Includes:
88	88	(i) An unforeseeable violent act by a third party or patron,
89	89	such as a shooting occurring at the business; and
90	90	(ii) Construction activities at or near an adjacent or
91	91	adjoining property that disrupts or causes a decline in foot traffic to
92	92	the business, including blocked roads, parking lots, and other
93	93	encroachments attributable to such construction activities; and
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98	98	(C) Does not include an event for which the president or the
99	99	governor declares a state of emergency or disaster declaration pursuant
100	100	to federal or state law, or the COVID-19 pandemic.
101	101	SECTION 2. For purposes of promulgating forms or rules, this act takes effect upon
102	102	becoming a law, the public welfare requiring it. For all other purposes, this act takes effect July
103	103	1, 2025, the public welfare requiring it.