Senate Bill 402 amends various sections of the Tennessee Code Annotated to introduce new regulations regarding the reporting of medical debt. Specifically, it establishes that beginning July 1, 2025, healthcare providers are prohibited from reporting a patient's medical debt to consumer reporting agencies, although they may still report such debts to debt collections agencies. Additionally, consumer reporting agencies are barred from including medical debt records in consumer reports. If a consumer report does contain medical debt information in violation of this provision, individuals have the right to dispute the accuracy of that information under the federal Fair Credit Reporting Act.

The bill also stipulates that violations of these new regulations will be considered violations of the Tennessee Consumer Protection Act of 1977, which allows for penalties and remedies as outlined in that act. The Attorney General has the authority to investigate and enforce these provisions, and any costs incurred in such actions cannot be taxed against the Attorney General or the state. The act is set to take effect on July 1, 2025.