Senate Bill 398 amends various sections of the Tennessee Code Annotated to establish protections against discrimination based on race, color, ethnicity, or national origin for members of state entity boards. The bill explicitly prohibits boards from excluding individuals from membership or subjecting them to discrimination based on these characteristics. It also forbids the establishment of race-based policies, including affirmative action, racial preferences, or quotas, and prohibits the use of aggregated data related to race or ethnicity in determining board participation.

Additionally, the bill creates a private cause of action for individuals who believe they have been discriminated against under these provisions, allowing them to seek actual or compensatory damages, punitive damages for intentional discrimination, and a minimum of $4,000 in statutory damages. The legislation also waives sovereign immunity for the state in such actions, enabling plaintiffs to pursue injunctive and declaratory relief. The bill is set to take effect upon becoming law.