Tennessee Code Title 9. Public Finances § 9-4-216

(a) There is created a fund within the state treasury to be known as the governor's response and recovery fund.  The fund consists of grants, appropriations by the general assembly, loan repayments, federal funds, to the extent permitted by federal law and regulation, and any other moneys made available to the Tennessee emergency management agency for the purposes of such fund from any other source or sources.  Moneys deposited in the fund must be invested for the benefit of the fund pursuant to § 9-4-603;  provided, however, that some or all interest earnings may be transferred to the Hurricane Helene interest payment fund created pursuant to § 9-4-215.  Moneys in the governor's response and recovery fund must not revert to the general fund but must remain available to be used by the Tennessee emergency management agency exclusively for the purposes specified in subsection (b).  The commissioner of finance and administration may promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, in order to ensure the funds are received and expended for the purposes consistent with subsection (b).

(b) The purpose of the governor's response and recovery fund is to respond to, or recover from, an emergency, as defined in § 58-2-101, including, but not limited to, the following:

(c) Moneys must only be expended in response to Hurricane Helene or another event for which the governor declares a state of emergency or disaster declaration pursuant to § 58-2-107(b)(1)(A).

(d) The Tennessee emergency management agency may expend moneys in the fund in the form of grants or loans to third parties.  Loan repayments must become part of the fund and remain available for the purposes described in subsection (b).

(e) At least annually, the Tennessee emergency management agency shall submit to the chair of the finance, ways and means committee of the senate and the chair of the committee in the house of representatives having jurisdiction over matters related to public funds a report stating the amount expended from the fund in the past year, the purposes for which the money was expended, and the amount remaining in the fund.