SENATE BILL 1419
By Akbari
HOUSE BILL 1386
By Harris
HB1386
001691
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AN ACT to amend Tennessee Code Annotated, Title 4,
Chapter 29; Title 49, Chapter 7; Title 49, Chapter
8 and Title 49, Chapter 9, relative to student
athletes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 49, Chapter 7, is amended by deleting
part 28 and substituting:
49-7-2801.
As used in this part:
(1) "Athletic program" means an intercollegiate athletic program at an
institution;
(2) "Institution" means a four-year public or private institution of higher
education located in this state;
(3) "Intercollegiate athlete" means a student enrolled in an institution who
participates in an athletic program;
(4) "Media network" refers to a platform created and operated by certified
NIL representatives, collectives, or institutions to distribute content directly to
consumers, including, but not limited to, social media, podcasts, and video
channels;
(5) "Name, Image, and Likeness (NIL)" means the legal right of an
intercollegiate athlete to earn compensation from the authorized use of the
intercollegiate athlete's name, image, or likeness; and
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(6) "Talent fee" means a supplemental fee applied to revenuegenerating
activities by an institution, including, but not limited to, ticket sales, merchandise,
sponsorship deals, broadcast rights, and event concessions, to support NIL
opportunities.
49-7-2802.
(a) An intercollegiate athlete may earn compensation for the use of the
intercollegiate athlete's name, image, and likeness. The compensation earned pursuant
to this subsection (a) must reflect fair market value and not be contingent upon athletic
performance or enrollment.
(b) Institutions, certified NIL collectives, and representatives may:
(1) Establish NIL funds to attract and manage revenue from NIL
activities, including corporate sponsorships, alumni contributions, and third-party
collaborations;
(2) Operate media networks to distribute exclusive content featuring
intercollegiate athletes; provided, that the network:
(A) Ensures free access to consumers to maximize audience
reach;
(B) Allocates a percentage of media network-generated revenues
to intercollegiate athletes featured in the content and their certified NIL
representatives; and
(C) Collaborates with professional content creators to ensure
high-quality production and strategic distribution; and
(3) Implement a talent fee on revenue streams, including, but not limited
to, ticket sales, merchandise, sponsorship deals, and event concessions, to
support NIL activities and compensate intercollegiate athletes fairly.
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49-7-2803.
(a) A certified NIL representative who represents an intercollegiate athlete under
this part for purposes of securing compensation for the use of the athlete's name, image,
or likeness must be licensed under § 49-7-2104, and must satisfy the requirements of
chapter 7, part 21 of this title.
(b) Certified NIL representatives must adhere to a fiduciary duty, acting in the
best interests of the intercollegiate athlete at all times.
(c) The secretary of state shall maintain a publicly accessible registry of certified
NIL representatives.
49-7-2804.
(a) Institutions shall:
(1) Conduct mandatory workshops for intercollegiate athletes covering
NIL contract negotiation, tax responsibilities, wealth management, and personal
branding;
(2) Provide mentorship programs connecting intercollegiate athletes with
alumni and industry leaders to support NIL success; and
(3) Document and report on NIL activities and revenues annually to the
general assembly.
(b)
(1) There is established the statewide NIL oversight committee. The
Tennessee higher education commission shall appoint five (5) members who
have experience with NIL for intercollegiate athletes in this state to the statewide
NIL oversight committee. The statewide NIL oversight committee shall:
(A) Monitor the implementation and impact of NIL activities;
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(B) Publish annual reports on NIL revenues, expenditures, and
best practices; and
(C) Resolve disputes related to NIL agreements.
(2) In order to stagger the terms of the committee members, two (2) initial
appointees serve two-year terms, two (2) initial appointees serve three-year
terms, and one (1) initial appointee serves a four-year term. All subsequent
appointments are for four-year terms. A member's term of office begins on July 1
and expires on June 30. Committee members may continue to serve on the
committee after their term expires, but only until a new member is appointed to
replace the committee member. Committee members may be reappointed to
multiple terms.
49-7-2805.
(a) Institutions may create incentive-based revenue-sharing models that
allocate:
(1) A minimum of fifty percent (50%) of NIL-generated funds directly to
intercollegiate athletes and the intercollegiate athletes' certified NIL
representatives;
(2) Additional funds to enhance scholarships, athletic facilities, and
academic resources without reducing intercollegiate athlete compensation; and
(3) Reserved revenues for community outreach programs and
institutional growth.
(b) Media networks operated by an institution or NIL collective must:
(1) Showcase exclusive content to increase intercollegiate athlete
exposure and fan engagement;
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(2) Provide opportunities for intercollegiate athletes to co-create content
and share revenues; and
(3) Include revenue-sharing agreements to ensure equitable benefits for
intercollegiate athletes, certified NIL representatives, and institutions.
(c) An institution may establish an NIL program at the high school level to
educate prospective intercollegiate athletes on NIL opportunities that comply with state
and federal laws.
49-7-2806.
(a) Institutions are encouraged to secure broadcast rights and partnerships with
streaming services or local networks to increase NIL visibility and revenue opportunities.
(b) Institutions may create branded merchandise collaborations featuring
intercollegiate athletes, with a portion of proceeds directly benefiting intercollegiate
athletes.
(c) Institutions may host NIL-centric events such as athlete showcases, branded
tournaments, or fan experience days, with revenues shared among intercollegiate
athletes and programs.
(d) State regulatory bodies shall not pursue NIL investigations.
(e) NIL programs shall prioritize equality and access and opportunity for all
institutions, ensuring smaller institutions receive the same access to NIL opportunities as
larger institutions.
(f) The state shall encourage high school athletes to explore NIL opportunities.
(g) Institutions may develop methods for NIL compensation, such as
tournaments that guarantee payments to participating teams and partnerships with an
intercollegiate athletic association as a licensor.
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(h) An institution may reinvest a portion of NIL revenues into marketing and
digital strategies to attract additional sponsorships and enhance NIL visibility for
intercollegiate athletes.
49-7-2807.
(a) An institution may implement a talent fee. If an institution authorizes a talent
fee, then:
(1) The talent fee of a ticket sale may be no more than ten percent (10%)
of the ticket price;
(2) Revenues generated must be allocated directly toward NIL activities,
including athlete compensation, NIL program development, and fan engagement
platforms;
(3) The institution must ensure transparency by reporting the use of
talent fee revenues annually to the general assembly and the institution's
governing board;
(4) Talent fee revenue allocation must prioritize equitable compensation
opportunities for all intercollegiate athletes, ensuring access for institutions with
limited financial resources; and
(5) The revenue benefits intercollegiate athletes equitably across
institutions.
(b) Talent fee revenues must not disproportionately benefit intercollegiate
athletes from a single sport, but instead reflect balanced contributions to all athletic
programs at an institution.
(c) Institutions may utilize talent fee revenue to subsidize athletic scholarships,
facility upgrades, and athlete development programs; provided, these initiatives equally
benefit intercollegiate athletes across all sports.
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49-7-2808.
(a) Institutions are encouraged to develop direct-to-consumer NIL platforms to
amplify athlete exposure, enhance fan engagement, and increase NIL revenue streams.
(1) These platforms may include:
(A) Social media channels dedicated to exclusive intercollegiate
athlete content;
(B) Podcasts and video series featuring intercollegiate athlete
interviews, game highlights, and personal stories; and
(C) Merchandise collaborations directly tied to NIL activities,
where intercollegiate athletes share in the revenue.
(2) Institutions must offer free access to such platforms to maximize
audience reach while providing premium sponsorship opportunities to generate
revenue.
(b) Institutions may leverage such platforms to attract local and national
sponsorships, ensuring the institution's athletes are positioned for NIL success on par
with athletes from larger institutions worldwide.
49-7-2809.
(a) To address disparities in institutional resources, the state shall prioritize
support for NIL initiatives that benefit historically underserved institutions.
(b) Institutions may request matching funds from the state for investments in NIL
infrastructure, including media network development, marketing campaigns, and
educational programs.
(c) NIL partnerships that foster community involvement and local business
collaborations must receive priority for state support.
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SECTION 2. If any provision of this act or its application to any person or circumstance
is held invalid, then the invalidity does not affect other provisions or applications of the act that
can be given effect without the invalid provision or application, and to that end, the provisions of
this act are severable.
SECTION 3. This act takes effect July 1, 2025, the public welfare requiring it.