Senate Bill 398 aims to amend various sections of the Tennessee Code Annotated to prohibit discrimination based on race, color, ethnicity, or national origin in the membership and operations of state entity boards. The bill establishes that no individual can be excluded from board membership or subjected to discrimination on these bases. It also prohibits boards from implementing race-based policies, such as affirmative action or racial quotas, and disallows the use of aggregated data regarding race or ethnicity to determine board participation.

Additionally, the bill creates a private cause of action for individuals who experience violations of these provisions, allowing them to seek actual or compensatory damages, as well as punitive damages if discrimination is proven to be intentional or reckless. The legislation mandates a minimum statutory damage award of $4,000 for violations and allows plaintiffs to pursue injunctive and declaratory relief while waiving the state's sovereign immunity. This act is set to take effect immediately upon becoming law.