HB 2425

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 park s 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. ON APRIL 21, 2026, THE HOUSE SUBSTITUTED SENATE BILL 2528 FOR HOUSE BILL 2425, ADOPTED AMENDMENT #1, AND PASSED SENATE BILL 2528, AS AMENDED. AMENDMENT #1 deletes the following provisions of this bill: (1) The prohibition against allowing an operator whose permit is revoked or who goes out of business to apply for another permit; and (2) The prohibition against issuing a permit to anyone other than the purchaser of an existing operator's business or immediate family members of existing operators to whom ownership is transferred. ON APRIL 22, 2026, THE SENATE CONCURRED IN HOUSE AMENDMENT #1.