So I heard about this through the twit network on its tech news today podcast for June 2 I believe. So as I read the article, I agree that it is really not worth it to pass a law like this. Its going to be very hard to find the people who are doing this, and as Security Now points out, this type of thing is done via IP which could get other people in trouble unless this will be done via login base. Only time will tell. Check out this article.
Netflix sharing will be a crime in TN | The Tennessean | tennessean.com.