Public Funds and Financing - As enacted, broadens certain disclosure obligations of state and local governmental entities by requiring their disclosure of covenant violations and credit rating downgrades to the comptroller of the treasury or the comptroller's designee. - Amends TCA Section 9-21-134.

SB 114 requires Tennessee state and local governments that borrow money to report certain financial events to the state comptroller. Specifically, these entities must disclose covenant violations (noncompliance with loan terms) and credit rating downgrades within 10 business days of occurrence. The bill amends disclosure rules to mandate this reporting directly to the comptroller’s office, rather than solely to governing bodies. This affects all public entities issuing debt, including cities, counties, and state agencies, and aims to improve transparency around financial risks. The law became effective March 12, 2025, after being signed by the governor.