Tennessee Code Title 63. Professions of the Healing Arts § 63-10-316

(1) “Affiliate” means a person or entity that directly or indirectly controls, is controlled by, or is under common ownership or control with another entity;

(2) “Board” means the board of pharmacy;

(3) “Control” means the power, directly or indirectly, to direct, manage, or influence the operations or policies of a pharmacy, whether through ownership, contract, shared governance, overlapping management, audit authority, exclusive provider agreement, formulary management clause, or other arrangement conferring material influence over the professional practice of pharmacy, including dispensing decisions, patient steering, clinical operations, or the independent judgment of a licensed pharmacist;

(4) “Health insurance issuer” has the same meaning as defined in § 56-7-2802;

(5) “Pharmacy” has the same meaning as defined in § 63-10-204;  and

(6) “Pharmacy benefits manager” has the same meaning as defined in § 56-7-3102.

(1) Directly or indirectly own, operate, control, or direct the operation of, the whole or any part of a pharmacy;  and

(2) Directly or indirectly own, operate, control, or direct the operation of, the whole or any part of:

(d)(1) For purposes of subsection (b), a hospital or health-system pharmacy is not a pharmacy benefits manager.

(2) This section does not limit the ability of independently owned or unaffiliated pharmacies to provide mail-order, specialty, or delivery services directly to patients of such pharmacies.

(3) This section does not apply to an FDA-designated orphan drug with limited distribution, or to a drug that is subject to an FDA-required risk evaluation and mitigation strategy (REMS) that includes limited distribution.

(f)(1) The attorney general and reporter is authorized to enforce this section.

(2) The board shall refer information of potential violations of this section to the attorney general and reporter.

(3) A violation of this section is subject to a civil penalty of up to ten thousand dollars ($10,000) per violation.  Each day a violation continues constitutes a separate violation.