On Wednesday, Republican Rep. Tilman Goins of Morristown delayed consideration of the bill until 2018.
The proposal would have punished a state or local government entity for adopting a sanctuary policy by withholding state funding until the policy is removed.
The bill would outlaw policies that hinder communication and cooperation with federal officials about someone's immigration status; let people in the country illegally stay in Tennessee; interfere with detainment and transfer of people to homeland security officials; among other requirements.
Lawmakers in several other states have introduced similar proposals.
Republican Sen. Mark Green of Clarksville originally sponsored the Senate bill. He signed it over to Republican Sen. Kerry Roberts of Springfield.