I'm looking for laws/penalties for turning water flow into a blue line stream which is on another person's property without the owners permission nor the state of Tennessee's permission. The water flow is from a new subdivision that was developed next to the blue line stream.

This question is too technical and specific for this chatroom. My suggestion is that you contact your county or regional water authority, or local public works department depending on the type of drainage as I am assuming this is blackwater kind of stuff. Usually, there is permitting and approval of water drainage routes, so if this is legal, it would have been filed and if not, you can make a report.