Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB1009 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2		-	HOUSE BILL 1364
3		-	By Chism
	2	+	<BillNo> <Sponsor>
4	3
5	4		SENATE BILL 1009
6	5		By Oliver
7	6
8	7
9	8		SB1009
10	9		002831
11	10		- 1 -
12	11
13	12		AN ACT to amend Tennessee Code Annotated, Title 4;
14	13		Title 9; Title 50 and Title 67, relative to relief for
15	14		small businesses.
16	15
17	16		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	17		SECTION 1. Tennessee Code Annotated, Title 4, Chapter 3, Part 7, is amended by
19	18		adding the following as a new section:
20	19		4-3-722.
21	20		(a) There is created a fund within the state treasury to be known as the small
22	21		business recovery grant fund, to be administered by the department of economic and
23	22		community development.
24	23		(b) The fund consists of:
25	24		(1) Funds appropriated by the general assembly; and
26	25		(2) Gifts, grants, and other donations received by the department for the
27	26		fund.
28	27		(c) Moneys deposited in the fund must be invested for the benefit of the fund
29	28		pursuant to § 9-4-603.
30	29		(d) Moneys in the fund must not revert to the general fund but must remain
31	30		available to be used by the department exclusively for the purposes specified in
32	31		subsection (f).
33	32		(e) The commissioner of economic and community development may
34	33		promulgate rules in accordance with the Uniform Administrative Procedures Act,
35	34		compiled in chapter 5 of this title, to implement this section.
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37	36
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40	39		(f) Moneys in the fund must be used to assist eligible small businesses with
41	40		eligible costs incurred in responding to, or recovering from, extenuating circumstances.
42	41		Grants made from the fund must cover eligible costs incurred during any one (1) period
43	42		of three (3) consecutive months, but no more than six (6) consecutive months.
44	43		(g) Grants to assist eligible businesses must be made only to nonprofit
45	44		organizations, local governments or to their economic development organizations, or
46	45		other political subdivisions of the state. Grants from the fund may be made in all
47	46		counties where the commissioner of economic and community development determines
48	47		that the grants will have a direct impact on assisting eligible small businesses that
49	48		operate as independent arts or cultural organizations or in the hospitality industry.
50	49		(h) An eligible small business shall submit a complete application in a form and
51	50		manner prescribed by the department. The department shall establish the procedures
52	51		and time period for eligible small businesses to submit applications to the program.
53	52		(i) Beginning January 1, 2026, and on or before January 1 of each year, the
54	53		department shall submit to the chair of the finance, ways and means committee of the
55	54		senate and the chair of the committee in the house of representatives having jurisdiction
56	55		over matters related to public funds a report stating the amount expended from the fund
57	56		in the past year, the purposes for which the money was expended, and the amount
58	57		remaining in the fund.
59	58		(j) As used in this section:
60	59		(1) "Eligible costs" means costs incurred by an eligible small business
61	60		that are attributable to extenuating circumstances, including payroll costs, costs
62	61		of commercial rent or mortgage, insurance costs, utility costs, and costs to repair
63	62		or replace landscaping, parking spaces, or other real property or improvements
64	63		to real property owned by the eligible small business;
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69	68		(2) "Eligible small business" means an independent, for-profit entity that:
70	69		(A) Engages in business with the public;
71	70		(B) Is primarily owned and operated by two (2) or more natural
72	71		persons;
73	72		(C) Maintains a single physical business location in this state;
74	73		(D) Is not owned as a corporation or sole proprietorship or by an
75	74		independent contractor;
76	75		(E) Demonstrates, as determined by the department, that it has
77	76		sustained a substantial decline in gross revenue, substantial business
78	77		modifications, or a substantial disruption to its operations due to
79	78		extenuating circumstances;
80	79		(F) Has total gross receipts of not more than one million dollars
81	80		($1,000,000) averaged over a three-year period; and
82	81		(G) Employs no more than fifteen (15) persons on a full-time
83	82		basis; and
84	83		(3) "Extenuating circumstance":
85	84		(A) Means an unforeseeable event that is outside the control of
86	85		the eligible small business;
87	86		(B) Includes:
88	87		(i) An unforeseeable violent act by a third party or patron,
89	88		such as a shooting occurring at the business; and
90	89		(ii) Construction activities at or near an adjacent or
91	90		adjoining property that disrupts or causes a decline in foot traffic to
92	91		the business, including blocked roads, parking lots, and other
93	92		encroachments attributable to such construction activities; and
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98	97		(C) Does not include an event for which the president or the
99	98		governor declares a state of emergency or disaster declaration pursuant
100	99		to federal or state law, or the COVID-19 pandemic.
101	100		SECTION 2. For purposes of promulgating forms or rules, this act takes effect upon
102	101		becoming a law, the public welfare requiring it. For all other purposes, this act takes effect July
103	102		1, 2025, the public welfare requiring it.