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J enne&see Senate
PUBLIC CHAPTER NO. 17
SENATE BILL NO. 114
By Harshbarger, Hatcher
Substituted for: House Bill No. 136
By Atchley, Vaughan
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 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. SENATEBILLNO. 114
PASSED: March 3, 2025
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RANDY-M~NALLY
SPEAKER OF THE SENATE
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CAME SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
APPROVED this fld-day of tv'\o.Yc_.L 2025
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