House Bill 136 amends Tennessee Code Annotated, Section 9-21-134, to enhance debt reporting requirements for public entities. The bill introduces new definitions for "covenant violation," which refers to noncompliance with covenants in lending documents, and "credit rating downgrade," which indicates a reduction or elimination of a credit rating by recognized rating organizations. Additionally, the bill modifies the existing reporting requirements, mandating that public entities submit relevant financial information to their governing bodies and the comptroller of the treasury within 45 days of any finance transaction.

Furthermore, the bill establishes new obligations for public entities under a newly inserted subsection (d). This includes timely compliance with continuing disclosure obligations, the requirement to disclose financial obligations and events of default on the Electronic Municipal Market Access (EMMA) website, and the necessity to report any event of default, covenant violation, or credit rating downgrade to the comptroller within ten business days. The existing subsection (d) is redesignated as subsection (e) to accommodate these changes. The act is set to take effect upon becoming law.

Statutes affected:
Introduced: 9-21-134(a), 9-21-134, 9-21-134(c)