They have to take 90% of the class from Tennessee. It's pretty tough to get in out-of-state. I don't know if they show preference to surrounding states or not. Try anyway though, it's a great place to train in the clinical years.
Hey bubba, yes they have to be neighboring states; or be tied to UT some way, ie child of an alum. If you appy without meeting one of these qualifications, it will be just a waste of your money. You can check out their website at www.utmem.edu.