SB 1261 requires Tennessee health insurance companies, including TennCare and pharmacy benefits managers, to follow strict rules when using artificial intelligence (AI) for healthcare decisions like approving treatments. It mandates that AI tools must base decisions on individual patient medical history and provider recommendations - not just group data - and cannot replace licensed doctors in determining medical necessity. Insurers must disclose AI use in their policies, regularly review AI performance, and ensure patient data is handled securely under HIPAA. The law prohibits AI from discriminating or causing harm and treats violations as unfair claims practices, allowing patients to sue for damages.
SB 786 requires psychologists and neuropsychologists to securely store test materials and data from psychological evaluations to maintain test validity. It prohibits third-party observers (like family members, attorneys, or insurance representatives) during testing and bans video/audio recordings, with limited exceptions for disabilities, language needs, minors, or trainee supervision. The bill restricts access to test materials/data solely to licensed psychologists or trained experts who must legally and ethically protect their security. It directly affects professionals conducting psychological evaluations, ensuring data integrity for high-stakes decisions like forensic assessments, medical evaluations, and educational accommodations.
SB 663 allows Tennessee consumers to appoint an authorized agent (like a family member or professional) to manage their data privacy requests on their behalf, directly affecting consumers and businesses (controllers) that collect personal data. It requires businesses to honor opt-out requests from these agents if they can verify both the consumer's identity and the agent's authority. The bill mandates clear opt-out links on business websites and requires a standardized, user-friendly "opt-out preference signal" by January 2026, which must be an active choice by the consumer, not a default setting. This law takes effect July 1, 2025, applying to all Tennessee businesses handling consumer data.
HB 138 establishes a $5 million annual special fund to provide grants to Tennessee local school districts and public charter schools. The fund supports acquiring or expanding digital career and technical education programs that include multimedia lessons, interactive activities, and assessments. Schools must apply through the state education department, which will prioritize applications based on demonstrated need, student impact, and alignment with workforce goals. Unspent funds carry forward annually rather than reverting to the general budget, and the bill requires separate annual appropriations for funding.
HB 433 amends Tennessee's unlawful exposure law to specifically criminalize distributing digitally altered intimate images of identifiable people. The bill directly affects individuals who create or share such images using digital tools like AI or photo editing software, with intent to cause emotional distress. Key provisions expand the offense to cover images "created or modified by means of a computer software program, artificial intelligence application, or other digital editing tools" when shared without consent. This makes it illegal to distribute these digitally manipulated images under circumstances where privacy was expected. The law takes effect July 1, 2025.
HB 869 requires Tennessee health insurance companies to create two new digital systems: a "provider access API" to let doctors quickly retrieve patient records electronically, and a "prior authorization API" to speed up insurance approvals for treatments. It directly affects health insurance entities by mandating these technical standards under revised state laws in Titles 8, 47, 56, 63, and 68. The bill also shortens a deadline for insurers from 10 working days to 10 calendar days for certain patient record requests. This law aims to improve efficiency in healthcare coordination by standardizing electronic access to records and prior authorization processes.
HB 952, the "Small Business Growth and Empowerment Act," creates tax credits for small businesses that hire locally or provide workforce training, and establishes grants for minority-owned and women-owned businesses in underserved areas. The bill authorizes a dedicated fund (managed by the Department of Economic and Community Development) to provide grants for activities like site development, infrastructure, training, and technology improvements that directly support these businesses. Grants must be used in underserved communities - defined as areas with historical barriers to capital, such as rural or inner-city neighborhoods - and recipients must be local governments, economic development organizations, or nonprofits. The fund requires quarterly public reporting of grant recipients, amounts, and project descriptions to ensure transparency. This legislation directly affects small businesses, minority/women business owners, and communities seeking economic development resources.
HB 614 requires pharmacy services administrative organizations (like those managing cost data) to destroy pharmacy cost information within five business days of a written request from the pharmacy that shared it. The bill also prohibits these organizations from disclosing the shared information to third parties. It directly affects pharmacies that contract with such organizations and share maximum allowable cost lists, giving them greater control over sensitive data. The law amends Tennessee Code Sections 56-7-3111 to establish these specific data-handling requirements.
SB 514 requires Tennessee public schools and charter schools to provide age-appropriate instruction on accessing, using, and critically evaluating artificial intelligence tools within regular classes starting in the 2026-2027 school year. The bill mandates the Tennessee Department of Education to issue implementation guidance covering basic AI concepts, practical applications, responsible usage, tool access, and critical thinking skills. It also directs the department to offer AI-focused professional development for educators, contingent on available funding. This bill directly affects all local education agencies and public charter schools in Tennessee by integrating AI literacy into standard curricula.
SB 604 requires pharmacy services organizations (like administrative groups that handle pharmacy data) to destroy any pharmacy cost information they receive within five business days of a written request from the pharmacy that shared it. This applies directly to pharmacies and the organizations they contract with for services. The bill amends Tennessee law to prevent these organizations from retaining or disclosing shared pharmacy data without the original pharmacy's explicit consent for destruction. It creates a clear, time-bound process for pharmacies to control their own shared information.
