Tennessee 2025-2026 Regular Session

Tennessee House Bill HB1386 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	SENATE BILL 1419
3	3	By Akbari
4	4
5	5	HOUSE BILL 1386
6	6	By Harris
7	7
8	8
9	9	HB1386
10	10	001691
11	11	- 1 -
12	12
13	13	AN ACT to amend Tennessee Code Annotated, Title 4,
14	14	Chapter 29; Title 49, Chapter 7; Title 49, Chapter
15	15	8 and Title 49, Chapter 9, relative to student
16	16	athletes.
17	17
18	18	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
19	19	SECTION 1. Tennessee Code Annotated, Title 49, Chapter 7, is amended by deleting
20	20	part 28 and substituting:
21	21	49-7-2801.
22	22	As used in this part:
23	23	(1) "Athletic program" means an intercollegiate athletic program at an
24	24	institution;
25	25	(2) "Institution" means a four-year public or private institution of higher
26	26	education located in this state;
27	27	(3) "Intercollegiate athlete" means a student enrolled in an institution who
28	28	participates in an athletic program;
29	29	(4) "Media network" refers to a platform created and operated by certified
30	30	NIL representatives, collectives, or institutions to distribute content directly to
31	31	consumers, including, but not limited to, social media, podcasts, and video
32	32	channels;
33	33	(5) "Name, Image, and Likeness (NIL)" means the legal right of an
34	34	intercollegiate athlete to earn compensation from the authorized use of the
35	35	intercollegiate athlete's name, image, or likeness; and
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40	40	(6) "Talent fee" means a supplemental fee applied to revenuegenerating
41	41	activities by an institution, including, but not limited to, ticket sales, merchandise,
42	42	sponsorship deals, broadcast rights, and event concessions, to support NIL
43	43	opportunities.
44	44	49-7-2802.
45	45	(a) An intercollegiate athlete may earn compensation for the use of the
46	46	intercollegiate athlete's name, image, and likeness. The compensation earned pursuant
47	47	to this subsection (a) must reflect fair market value and not be contingent upon athletic
48	48	performance or enrollment.
49	49	(b) Institutions, certified NIL collectives, and representatives may:
50	50	(1) Establish NIL funds to attract and manage revenue from NIL
51	51	activities, including corporate sponsorships, alumni contributions, and third-party
52	52	collaborations;
53	53	(2) Operate media networks to distribute exclusive content featuring
54	54	intercollegiate athletes; provided, that the network:
55	55	(A) Ensures free access to consumers to maximize audience
56	56	reach;
57	57	(B) Allocates a percentage of media network-generated revenues
58	58	to intercollegiate athletes featured in the content and their certified NIL
59	59	representatives; and
60	60	(C) Collaborates with professional content creators to ensure
61	61	high-quality production and strategic distribution; and
62	62	(3) Implement a talent fee on revenue streams, including, but not limited
63	63	to, ticket sales, merchandise, sponsorship deals, and event concessions, to
64	64	support NIL activities and compensate intercollegiate athletes fairly.
65	65
66	66
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68	68
69	69	49-7-2803.
70	70	(a) A certified NIL representative who represents an intercollegiate athlete under
71	71	this part for purposes of securing compensation for the use of the athlete's name, image,
72	72	or likeness must be licensed under § 49-7-2104, and must satisfy the requirements of
73	73	chapter 7, part 21 of this title.
74	74	(b) Certified NIL representatives must adhere to a fiduciary duty, acting in the
75	75	best interests of the intercollegiate athlete at all times.
76	76	(c) The secretary of state shall maintain a publicly accessible registry of certified
77	77	NIL representatives.
78	78	49-7-2804.
79	79	(a) Institutions shall:
80	80	(1) Conduct mandatory workshops for intercollegiate athletes covering
81	81	NIL contract negotiation, tax responsibilities, wealth management, and personal
82	82	branding;
83	83	(2) Provide mentorship programs connecting intercollegiate athletes with
84	84	alumni and industry leaders to support NIL success; and
85	85	(3) Document and report on NIL activities and revenues annually to the
86	86	general assembly.
87	87	(b)
88	88	(1) There is established the statewide NIL oversight committee. The
89	89	Tennessee higher education commission shall appoint five (5) members who
90	90	have experience with NIL for intercollegiate athletes in this state to the statewide
91	91	NIL oversight committee. The statewide NIL oversight committee shall:
92	92	(A) Monitor the implementation and impact of NIL activities;
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97	97	(B) Publish annual reports on NIL revenues, expenditures, and
98	98	best practices; and
99	99	(C) Resolve disputes related to NIL agreements.
100	100	(2) In order to stagger the terms of the committee members, two (2) initial
101	101	appointees serve two-year terms, two (2) initial appointees serve three-year
102	102	terms, and one (1) initial appointee serves a four-year term. All subsequent
103	103	appointments are for four-year terms. A member's term of office begins on July 1
104	104	and expires on June 30. Committee members may continue to serve on the
105	105	committee after their term expires, but only until a new member is appointed to
106	106	replace the committee member. Committee members may be reappointed to
107	107	multiple terms.
108	108	49-7-2805.
109	109	(a) Institutions may create incentive-based revenue-sharing models that
110	110	allocate:
111	111	(1) A minimum of fifty percent (50%) of NIL-generated funds directly to
112	112	intercollegiate athletes and the intercollegiate athletes' certified NIL
113	113	representatives;
114	114	(2) Additional funds to enhance scholarships, athletic facilities, and
115	115	academic resources without reducing intercollegiate athlete compensation; and
116	116	(3) Reserved revenues for community outreach programs and
117	117	institutional growth.
118	118	(b) Media networks operated by an institution or NIL collective must:
119	119	(1) Showcase exclusive content to increase intercollegiate athlete
120	120	exposure and fan engagement;
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125	125	(2) Provide opportunities for intercollegiate athletes to co-create content
126	126	and share revenues; and
127	127	(3) Include revenue-sharing agreements to ensure equitable benefits for
128	128	intercollegiate athletes, certified NIL representatives, and institutions.
129	129	(c) An institution may establish an NIL program at the high school level to
130	130	educate prospective intercollegiate athletes on NIL opportunities that comply with state
131	131	and federal laws.
132	132	49-7-2806.
133	133	(a) Institutions are encouraged to secure broadcast rights and partnerships with
134	134	streaming services or local networks to increase NIL visibility and revenue opportunities.
135	135	(b) Institutions may create branded merchandise collaborations featuring
136	136	intercollegiate athletes, with a portion of proceeds directly benefiting intercollegiate
137	137	athletes.
138	138	(c) Institutions may host NIL-centric events such as athlete showcases, branded
139	139	tournaments, or fan experience days, with revenues shared among intercollegiate
140	140	athletes and programs.
141	141	(d) State regulatory bodies shall not pursue NIL investigations.
142	142	(e) NIL programs shall prioritize equality and access and opportunity for all
143	143	institutions, ensuring smaller institutions receive the same access to NIL opportunities as
144	144	larger institutions.
145	145	(f) The state shall encourage high school athletes to explore NIL opportunities.
146	146	(g) Institutions may develop methods for NIL compensation, such as
147	147	tournaments that guarantee payments to participating teams and partnerships with an
148	148	intercollegiate athletic association as a licensor.
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153	153	(h) An institution may reinvest a portion of NIL revenues into marketing and
154	154	digital strategies to attract additional sponsorships and enhance NIL visibility for
155	155	intercollegiate athletes.
156	156	49-7-2807.
157	157	(a) An institution may implement a talent fee. If an institution authorizes a talent
158	158	fee, then:
159	159	(1) The talent fee of a ticket sale may be no more than ten percent (10%)
160	160	of the ticket price;
161	161	(2) Revenues generated must be allocated directly toward NIL activities,
162	162	including athlete compensation, NIL program development, and fan engagement
163	163	platforms;
164	164	(3) The institution must ensure transparency by reporting the use of
165	165	talent fee revenues annually to the general assembly and the institution's
166	166	governing board;
167	167	(4) Talent fee revenue allocation must prioritize equitable compensation
168	168	opportunities for all intercollegiate athletes, ensuring access for institutions with
169	169	limited financial resources; and
170	170	(5) The revenue benefits intercollegiate athletes equitably across
171	171	institutions.
172	172	(b) Talent fee revenues must not disproportionately benefit intercollegiate
173	173	athletes from a single sport, but instead reflect balanced contributions to all athletic
174	174	programs at an institution.
175	175	(c) Institutions may utilize talent fee revenue to subsidize athletic scholarships,
176	176	facility upgrades, and athlete development programs; provided, these initiatives equally
177	177	benefit intercollegiate athletes across all sports.
178	178
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181	181
182	182	49-7-2808.
183	183	(a) Institutions are encouraged to develop direct-to-consumer NIL platforms to
184	184	amplify athlete exposure, enhance fan engagement, and increase NIL revenue streams.
185	185	(1) These platforms may include:
186	186	(A) Social media channels dedicated to exclusive intercollegiate
187	187	athlete content;
188	188	(B) Podcasts and video series featuring intercollegiate athlete
189	189	interviews, game highlights, and personal stories; and
190	190	(C) Merchandise collaborations directly tied to NIL activities,
191	191	where intercollegiate athletes share in the revenue.
192	192	(2) Institutions must offer free access to such platforms to maximize
193	193	audience reach while providing premium sponsorship opportunities to generate
194	194	revenue.
195	195	(b) Institutions may leverage such platforms to attract local and national
196	196	sponsorships, ensuring the institution's athletes are positioned for NIL success on par
197	197	with athletes from larger institutions worldwide.
198	198	49-7-2809.
199	199	(a) To address disparities in institutional resources, the state shall prioritize
200	200	support for NIL initiatives that benefit historically underserved institutions.
201	201	(b) Institutions may request matching funds from the state for investments in NIL
202	202	infrastructure, including media network development, marketing campaigns, and
203	203	educational programs.
204	204	(c) NIL partnerships that foster community involvement and local business
205	205	collaborations must receive priority for state support.
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210	210	SECTION 2. If any provision of this act or its application to any person or circumstance
211	211	is held invalid, then the invalidity does not affect other provisions or applications of the act that
212	212	can be given effect without the invalid provision or application, and to that end, the provisions of
213	213	this act are severable.
214	214	SECTION 3. This act takes effect July 1, 2025, the public welfare requiring it.