Senate Bill 398 amends Tennessee law 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 person 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 from using aggregated data related to race or ethnicity to determine board participation.

Additionally, the bill creates a private cause of action against boards and their officers, employees, or agents for violations of these provisions. Plaintiffs can seek actual or compensatory damages, punitive damages for intentional discrimination, and a minimum of $4,000 in statutory damages. The bill also allows for injunctive and declaratory relief and waives the state's sovereign immunity in such actions. This legislation aims to ensure equitable treatment and representation on state boards.