Senate Bill 114 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 pertains to reductions in credit ratings 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 requirements to comply with continuing disclosure obligations, disclose financial obligations and events of default on the Electronic Municipal Market Access (EMMA) website, and report any events of default, covenant violations, or credit rating downgrades 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)