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Children - As enacted, establishes the children's digital protection fund within the state treasury. - Amends TCA Title 9, Chapter 4, Part 2. Companion bill has been assigned Public Chapter Number 1114 by the Secretary o, the official text

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State f/JeMteSsee

                             PUBLIC CHAPTER NO. 1114

                                                    SENATE BILL NO. 2061

                          By Watson, Gardenhire, Bailey, Campbell, Yager, Jackson

                                           Substituted for: House Bill No. 2270

                                            By Gary Hicks, Lamberth, Littleton

AN ACT to amend Tennessee Code Annotated, Title 9, Chapter 4, Part 2, relative to funding for the
          protection of children.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Title 9, Chapter 4, Part 2, is amended by adding
the following as a new section:

          9-4-217. Children's digital protection fund.

                    (a) There is created a fund within the state treasury to be known as the children's
          digital protection fund. Notwithstanding another law to the contrary, moneys received by the
          state pursuant to the resolution of legal claims concerning the effects of the use of a social
          media platform, an online gaming platform, or other digital technology on the mental health
          and wellbeing of minors, as determined by, and in the sole discretion of, the attorney general
          and reporter, must be deposited in the fund and used only to implement and administer the
          purposes set forth in subsection (b).

                    (b) Moneys in the children's digital protection fund may be expended, subject to
          appropriation by the general assembly, for the following purposes:

                              (1) Mental health supports, programs, and treatment services for minors;

                              (2) Research related to the impact of social media and technology on the
                    mental health and wellbeing of minors;

                              (3) Criminal and civil law enforcement resources for addressing the impact of
                    social media and technology on the mental health and wellbeing of minors;

                              (4) Criminal and civil law enforcement resources for addressing the
                    exploitation of minors through technology;

                              (5) Education relating to the impact of social media and technology on the
                    mental health and wellbeing of minors;

                              (6) Allocation to, and deposit of, funds in the K-12 mental health endowment
                    fund, created by title 49, chapter 3, part 5; and

                              (7) Suicide prevention for minors.

                    (c) As used in this section, unless the context otherwise requires:

                              (1) "Minor" means an individual who is:

                                        (A) Under eighteen (18) years of age; and

                                        (B) A resident of this state;
SB 2061

                             (2) "Net recovery" means the total amount paid to the state through the
                   resolution of legal claims described in subsection (a) minus:

                                       (A) Investigation and litigation costs;
                                       (B) Attorney's fees; and
                                       (C) Amounts designated for restitution;
                             (3) "Online gaming platform" means an internet-based platform, website, or
                   application enabling users to create, publish, access, play, or participate in digital
                   games or experiences; and •
                             (4) "Social media platform" means a website or internet application that:
                                       (A) Allows a person to create an account; and
                                       (8) Enables an account holder to communicate with other account
                             holders and users through posts.
                    (d) The attorney general and reporter shall determine the amount of the net recovery
          and direct the deposit of that amount to the children's digital protection fund. Moneys in the
          fund must be expended and obligated only in accordance with this section and
          appropriations made by the general assembly. This section does not prevent the fund from
          also receiving moneys from other sources.
                    (e) Moneys in the children's digital protection fund must be invested by the state
          treasurer in accordance with § 9-4-603. Notwithstanding any law to the contrary, interest
          accruing on investments and deposits of the fund must be credited to the fund, and remain
          part of the fund. Any unencumbered moneys and any unexpended balance of the fund
          remaining at the end of a fiscal year must not revert to the general fund but must be carried
          forward until expended in accordance with this section.
          SECTION 2. If any provision of this act or its application to any person or circumstance is
held invalid, then the invalidity does not affect other provisions or applications of the act that can be
given effect without the invalid provision or application, and to that end, the provisions of this act are
severable.
          SECTION 3. The heading in this act is for reference purposes only and does not constitute a
part of the law enacted by this act. However, the Tennessee Code Commission is requested to
include the heading in any compilation or publication containing this act.
          SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.

                                                                2
         SENATE BILL NO. 2061

PASSED:  April 21, 2026

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                         '                RANDY~cNALLY

                            SPEAKER OF TH SENATE

                            CAMERONSEXTON,SPEAKER

                            HOUSE OF REPRESENTATIVES

APPROVED this Z),...d day of rV'\°=7'     2026

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                  BILL LEE, GOVERNOR
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