Senate Bill 402 amends various sections of the Tennessee Code Annotated to introduce new regulations regarding the reporting of medical debt. Specifically, it establishes a new part under Title 47, Chapter 18, which defines key terms such as "consumer report," "consumer reporting agency," "debt collections agency," "healthcare provider," and "medical debt." The bill prohibits healthcare providers from reporting a patient's medical debt to consumer reporting agencies starting July 1, 2025, while still allowing them to report such debts to debt collections agencies. Additionally, consumer reporting agencies are barred from including medical debt records in consumer reports after the same date.

The bill also outlines the consequences of violations, stating that any breach of these provisions will be considered a violation of the Tennessee Consumer Protection Act of 1977, which includes penalties and remedies for unfair or deceptive practices. The Attorney General is granted investigative and enforcement authority to address alleged violations, with the ability to initiate proceedings in Davidson County or other permitted venues. Furthermore, it specifies that costs cannot be taxed against the Attorney General or the state in actions taken under this part. The act is set to take effect on July 1, 2025.