House Bill 769 amends Tennessee Code Annotated, Title 39, by introducing a new section that criminalizes the possession, distribution, or production of technology, software, or digital tools specifically designed to create material depicting minors engaged in sexual or simulated sexual activity that is patently offensive. The bill establishes a tiered felony classification for violations: possession is classified as a Class E felony, distribution as a Class C felony, and production as a Class B felony.

Additionally, the bill outlines specific factors that courts must consider when determining whether the technology or tools in question are intended for creating such material. These factors include the defendant's statements about the technology's use, the presence of related offensive material, accompanying instructions, advertising methods, and expert testimony. The act is set to take effect on July 1, 2025.