Recreational Areas

Plain English Breakdown

The exact financial impact of reducing commercial operator permits cannot be determined due to multiple unknown factors.

Changes to Ocoee River Recreation and Economic Development Fund

This bill modifies how funds from the Ocoee River recreation fund can be used and limits commercial operator permits.

What This Bill Does

• Expands the ways the Ocoee River recreation fund can be used, including hiring people to coordinate events and contributing funds to nonprofit organizations' events on the river.
• Limits the number of commercial operator permits from 24 to 12 over time with strict rules for new permit issuance.

Who It Names or Affects

• Commercial operators in the Ocoee River management zone.
• Nonprofit organizations that benefit from events on the Ocoee River.
• The Tennessee Department of Environment and Conservation (TDEC).

Terms To Know

Ocoee River recreation fund

A fund used to support activities related to tourism and economic development around the Ocoee River.

Commercial operator permits

Permits given by TDEC that allow businesses to operate in the Ocoee River management zone.

Limits and Unknowns

• The exact financial impact of reducing commercial operator permits is uncertain.
• Details about how much money will be available for tourism and economic development activities are not clear.

Official Summary Text

Present law establishes the Ocoee River recreation and economic development fund, which is funded in part by a fee that totals 10% of the gross revenue generated by commercial activities occurring within the Ocoee River management zone. Present law estab
lishes two tiers of purposes for which the fund may be expended. Items in the second tier may only be purchased if there are funds available after all of the purposes in the first tier are addressed. Present law places the following in the first tier:

(1) All costs incurred by TDEC associated with management of the Ocoee River management zone;

(2) Expenses of the Ocoee River recreation and economic development fund board and TDEC associated with administration of the development fund; and

(3) The cost of making payments to the TVA for additional releases of water on the Ocoee River.

Present law places the following in the second tier:

(1) Infrastructure upgrades to the Ocoee River management zone;

(2) Tourism promotion and economic development activities that benefit the Ocoee River management zone; and

(3) Other reasonable expenses as determined by the commissioner or the board to be necessary to carry out the intent of the Ocoee River Recreation and Economic Development Fund Act.

This bill revises (2) and (3) in the second tier to the following:

(
2
) Tourism promotion and economic development activities that benefit the Ocoee River management zone, including, but not limited to:

(
A
) Hiring persons to coordinate community and outdoor events on the Ocoee River; and

(
B
) Contributing funds to events operated on the Ocoee River for the benefit of a nonprofit organization; and

(C) Other reasonable expenses as determined by the commissioner or the board to be necessary to carry out the intent of this chapter, including expenses for professional services, if necessary, to conduct the business of the board.

Presently, the
manager of the Hiwassee/Ocoee Scenic River State Park
serves as a member of the
Ocoee River recreation and economic development fund board.
Effective July 1, 2026, this bill replaces the manager with
director of the division of state parks in
TDEC as a board member.

Present law limits the number of commercial operator
permits that TDEC may issue for the Ocoee to 24. Persons issued and possessing a permit as of June 30, 2024, may transfer the permit subject to certain conditions.

Beginning
July 1, 2026
, this bill commences a reduction in the maximum number of permits from 24 to 12 by prohibiting issuance of a permit to a person whose permit is revoked or whose operation goes out of business. This bill limits issuance of permits to
:

(
1
) Purchasers of businesses conducting such business within the management zone on or after the date of revocation or date the businesses closed, as applicable; and

(
2
) Immediate family members to whom ownership of such businesses is transferred on or after the date of revocation or date the businesses closed, as applicable.

Current Bill Text

HOUSE BILL 2425
By Howell

SENATE BILL 2528
By Hatcher
SB2528
012264
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4,
Chapter 3, Part 10 and Title 11, Chapter 8, relative
to the Ocoee River.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 11-8-103(e), is amended by deleting
the subsection and substituting:
(e)
(1) Subject to availability of sufficient moneys in the development fund
beyond those needed for expenditures for the purposes stated in subsection (d),
the commissioner and the board may use the development fund for expenditures
for the following purposes:
(A) Infrastructure upgrades to the Ocoee River management
zone;
(B)
(i) Tourism promotion and economic development
activities that benefit the Ocoee River management zone,
including, but not limited to:
(a) Hiring persons to coordinate community and
outdoor events on the Ocoee River; and
(b) Contributing funds to events operated on the
Ocoee River for the benefit of a nonprofit organization,
including such organizations other than those created or
established by the board under § 11-8-105(a)(3); and

- 2 - 012264

(C) Other reasonable expenses as determined by the
commissioner or the board to be necessary to carry out the intent of this
chapter, including expenses for professional services, if necessary, to
conduct the business of the board.
(2) Any expenditures made by the board under subdivisions (e)(1)(A) and
(C) must first be approved by a simple majority vote of the board.
SECTION 2. Tennessee Code Annotated, Section 11-8-104(b)(1)(A), is amended by
deleting the subdivision and substituting:
(A) The director of the division of state parks in the department of environment
and conservation who, effective July 1, 2026, shall complete the remaining term of the
manager of the Hiwassee/Ocoee Scenic River State Park and serve in such position as
a member of the board thereafter;
SECTION 3. Tennessee Code Annotated, Section 11-8-107(e), is amended by deleting
the subsection and substituting:
(e)
(1) Persons issued and possessing a permit as of June 30, 2024, may
transfer the permit with prior written approval of the commissioner:
(A) To a member of the person's immediate family;
(B) Pursuant to a purchase and sale agreement; or
(C) As authorized by department rule.
(2) On or after July 1, 2026:
(A) The department shall not issue more than twenty-four (24)
permits pursuant to this section, and, as permits are revoked or otherwise
not renewed after such date, the department shall reduce the maximum
number of permits issued to twelve (12); and

- 3 - 012264

(B)
(i) If a permit issued pursuant to subdivision (e)(1)(A) is
revoked or if a permittee operating a commercial operation
conducting business within the Ocoee River management zone
goes out of business, then the person whose permit is revoked or
whose commercial operation goes out of business may not apply
for a subsequent permit to conduct business within the
management zone; and
(ii) A permit to operate a commercial operation conducting
business within the Ocoee River management zone must not be
issued, except to:
(a) Purchasers of businesses conducting such
business within the management zone on or after the date
of revocation or date the businesses closed, as applicable;
and
(b) Immediate family members to whom ownership
of such businesses is transferred on or after the date of
revocation or date the businesses closed, as applicable.
(3) As used in this section, "immediate family" means a spouse, child,
stepchild, brother, sister, son-in-law, daughter-in-law, parent, or grandparent.
SECTION 4. This act takes effect July 1, 2026, the public welfare requiring it.