Criminal Offenses - As enacted, creates a criminal offense of possessing, distributing, or producing technology, software, or digital tools designed for the purpose of creating material that includes a minor engaged in sexual activity or simulated sexual activity that is patently offensive; establishes relevant factors to be considered in determining whether artificial technology, software, or digital tools are used or possessed with intent to create material that includes a minor engaged in sexual activity or simulated sexual activity that is patently offensive. - Amends TCA Title 39.

HB 769 makes it a crime to knowingly possess, distribute, or produce technology, software, or digital tools designed to create material featuring minors in sexual activity or extremely inappropriate simulated sexual activity. It directly affects individuals who use such tools, with penalties ranging from a Class E felony (possession) to a Class B felony (production). The law specifies that courts must consider factors like the defendant’s statements, existing material in their possession, advertising, and expert testimony to determine intent. This bill creates new criminal penalties for tools specifically intended to generate such material, not for general technology use.