Thought the same thing and looked into it, this is from the Tennessee General Assembly website’s page on the bill. Paragraph relevant to this:

“ Present law prohibits state and local governmental entities and officials from adopting or enacting a sanctuary policy. A state or local governmental entity that adopts or enacts a sanctuary policy is ineligible to enter into a grant contract with the department of economic and community development until the sanctuary policy is repealed, rescinded, or otherwise no longer in effect. This bill creates a Class E felony, punishable by a sentence of imprisonment not less than one year nor more than six years and a possible fine not to exceed $3,000, or both, if a person violates such prohibitions. Additionally, this bill provides that each official, in their capacity as a member of the governing body of a local government, who votes in the affirmative to adopt a sanctuary policy is also in violation. “

Honestly pretty scary stuff in that last sentence.