House Bill 2039, also known as Senate Bill 2071, amends the Tennessee Code Annotated to address the regulation of programmable money. The bill defines "programmable money" and specifies that it does not include central bank digital currencies. It establishes that it is unlawful to require individuals to use programmable money for transactions and prohibits issuers from denying transactions based on various personal characteristics, including political opinions, religious beliefs, and medical history. Additionally, the bill mandates that if a transaction is denied, the issuer must provide a detailed explanation upon request.

The bill also outlines penalties for violations, including the potential for civil suits and punitive damages for aggrieved parties. It allows the commissioner of financial institutions to take action against state-chartered banks that violate these provisions and grants the secretary of state the authority to rescind the business licenses of non-compliant issuers. The act is set to take effect on July 1, 2026, and includes a severability clause to ensure that if any part of the act is deemed invalid, the remaining provisions will still be enforceable.

Statutes affected:
Introduced: 47-1-201(b)(25)(C), 47-1-201, 47-1-201(b), 47-9-102(a)(29), 47-9-102, 47-18-104(b), 47-18-104