SB 114 - HB 136
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 6, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
SB 114 - HB 136
SUMMARY OF BILL: Clarifies that the State Funding Board (SFB) shall determine the
information which public entities must disclose to the Comptroller of the Treasury (COT) following
any such public entity’s issuance, incurrence, execution, or assumption of a financial transaction.
Requires public entities to disclose covenant violations or credit rating downgrades, in addition to
any event of default, to the COT or the COT’s designee within 10 business days.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• The SFB is administratively attached to the COT.
• Pursuant to Tenn. Code Ann § 9-21-134(a)(6), a public entity is defined as the state, a state
agency, a local government, a local government instrumentality, or any other authority,
board, district, instrumentality, or entity created by the state, a state agency, local
government, a local government instrumentality, or combination thereof.
• Pursuant to Tenn. Code Ann. § 9-21-134(c)(1), public entities are required to disclose
certain information to the governing body of the public entity and the COT within 45 days
following the issuance, reissuance, incurrence, execution, or assumption of a financial
transaction.
• Rather than specify the information that must be disclosed to the COT, the proposed
legislation clarifies that the SFB shall determine the information to be disclosed. Any impact
on the operations of the SFB and COT is not significant.
• Pursuant to Tenn. Code Ann. § 9-21-134(c)(3), public entities with publicly issued debt are
required to disclose financial obligations and events of default on the Electronic Municipal
Market Access website of the Municipal Securities Rulemaking Board, but are not required
to disclose such information directly to the COT.
• Based on information provided by the COT, public entities with privately-issued debt are
required to report events of default to the COT.
• This legislation will require all public entities to report defaults, covenant violations, and
credit rating downgrades to the COT. Any fiscal impact to the COT is not significant.
• Public entities can meet the disclosure requirements of this legislation utilizing existing staff
and resources, resulting in no significant fiscal impact to state or local government.
SB 114 - HB 136 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director