SENATE BILL 114
By Harshbarger
HOUSE BILL 136
By Atchley
HB0136
000709
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AN ACT to amend Tennessee Code Annotated, Section 9-
21-134, relative to debt reporting requirements.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 9-21-134(a), is amended by adding
the following as new subdivisions:
( ) "Covenant violation" means noncompliance with one (1) or more covenants
as defined in a lending document of a finance transaction;
( ) "Credit rating downgrade" means the reduction or elimination of a credit
rating by any nationally recognized statistical rating organization as identified by the
United States securities and exchange commission;
SECTION 2. Tennessee Code Annotated, Section 9-21-134(c), is amended by deleting
the subsection and substituting:
(c)
(1) The board shall determine the information to be disclosed pursuant to
subdivision (c)(2).
(2) Not later than forty-five (45) days following the issuance, reissuance,
incurrence, execution, or assumption of a finance transaction, the public entity
shall submit, or cause to be submitted, the information required by the board
pursuant to subdivision (c)(1) to the governing body of the public entity, with a
copy also submitted to the comptroller of the treasury or the comptroller's
designee. If an open meeting of the governing body is not scheduled within the
forty-five-day period, then the public entity shall give a copy to each member of
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the body within such period and present the information required by subdivision
(c)(1) to the body at the next scheduled meeting.
SECTION 3. Tennessee Code Annotated, Section 9-21-134, is amended by inserting
the following as a new subsection (d) and redesignating the existing subsection (d) as
subsection (e):
(d) The state funding board shall require public entities to:
(1) Timely comply with continuing disclosure obligations, if applicable;
(2) Disclose financial obligations and events of default on the Electronic
Municipal Market Access (EMMA) website of the Municipal Securities
Rulemaking Board (MSRB), if applicable; and
(3) Disclose any event of default, covenant violation, or credit rating
downgrade to the comptroller of the treasury or the comptroller's designee within
ten (10) business days, in accordance with guidelines approved by the board.
SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.