Tennessee House of Representatives bill in Session 114.
Status: in_committee. Latest action: April 7, 2026.
AN ACT to amend Tennessee Code Annotated, Title 47, relative to programmable money.
This bill prohibits any person from requiring the use of programmable money for any transaction, including offering or accepting payments only in programmable money and not accepting or offering a nondigital alternative free of charge. As used in this b ill, "programmable money"" means money or currency that (i) can be encoded with specific rules and conditions that allow it to be automatically controlled and used according to predefined parameters; (ii) has capabilities allowing for the denial or approva l of specific transactions; (iii) allows for user-specific restrictions on usability, or on location, nature, time, or identity of the transaction or parties to the transaction; (iv) expires or diminishes; or (v) can be used implement a social credit score system. DENIAL OF A TRANSACTION This bill prohibits an issuer of programmable money from denying a transaction on the basis of any of the following: A person's political opinions, speech, or affiliations. A person's religious beliefs, religious exercise, or religious affiliations. A person's gender, skin color, ethnicity, or sexual orientation. A person's medical history. A person's location, purchase, or browsing history. A person's place of residence or current location. Any factor related to a person's business sector. The use of a rating, scoring, analysis, tabulation, or action that considers a social credit score based on factors that include: (i) any of the above; (ii) a person's lawful ownership of a firearm; (iii) a person's engagement in the lawful manufacture, distribution, sale, purchase, or use of firearms, firearms accessories, or ammunition; (iv) a person's engagement in the exploration, production, utilization, transportation, sale, or manufacture of fossil fuel-based energy, timber, mining, or agriculture; (v) a person's support of the state or federal government in combatting illegal immigration, drug trafficking, or human trafficking; (vi) a person's engagement with, facilitation of, employment by, support of, business or other relationship with, representation of, or advocacy for any person described above; (vii) a person's failure to meet environmental standards, social governance standards or requirements, corporate board or company employment composition standards or requirements, or policies or procedures requiring or encouraging employee participation in social justice programming; or (viii) any other lawful act or behavior. This bill prohibits an issuer of programmable money from causing or allowing for the denial or failure of transactions based on any of the above-listed criteria, whether through direct action, automation, or programming. As used in such prohibition, ""al low for the denial or failure"" includes any act or omission by the issuer relating to the programmable money issued by the issuer, including automatic actions caused by computer code, algorithms, or artificial intelligence. However, an issuer may decline a transaction that constitutes a criminal offense or payment for a criminal act. This bill authorizes either party to a denied transaction to request a statement of specific reasons for the denial within 90 days. The issuer must transmit the statement of specific reasons within 30 days of receiving the affected party's request. Thi s bill requires such a statement to include (i) a detailed explanation of the basis for the denial, restriction, or termination of service; (ii) a copy of the terms of service agreed to by the person and the issuer; and (iii) a citation to the specific pr ov isions of the terms of service upon which the issuer relief to refuse to provide, restrict, or terminate service. However, this bill clarifies that its provisions do not prohibit an investment in cryptocurrency by any private party. REMEDIES AND PENALTIES A violation of this bill constitutes a violation of the Tennessee Consumer Protection Act of 1977 and is subject to the penalties and remedies as provided in that Act, which includes, but is not limited to, restraining orders, injunctions, private rights of action, and damages. Further, the commissioner of financial institutions may institute proceedings against a state-chartered bank that is an issuer of programmable money for a violation of this bill. The secretary of state may rescind the authority of an issuer of programm able money to do business in this s tate if the issuer of programmable money knowingly, intentionally, or repeatedly violates this bill. This bill allows a party harmed by a violation of this bill to bring a suit for statutory and declaratory relief, and actual and punitive damages against the violating party. Further, a prevailing plaintiff is entitled to reasonable attorney fees. A co urt must award punitive damages equal to the greater of three times the actual damages or three times the amount of the awarded attorney fees. Such an action may be brought in chancery court in the plaintiff's county of residence, the county where the vi ol ation occurred, the county where the defendant is domiciled, or in Davidson County."
| Date | Event | Detail |
|---|---|---|
| 2026-01-22 | Introduced | Bill introduced |
| 2026-04-07 | Status | in_committee |
| 2026-04-07 | Latest Action | Assigned to General Subcommittee of Senate Commerce and Labor Committee |