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Tennessee General Assembly· HB 194Sponsor(s) Added.

Sports - As enacted, revises present law relative to an intercollegiate athlete's name, image, or likeness. - Amends TCA Title 49. Companion bill has been assigned Public Chapter Number 300 by the Secretary of State, the official text

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                             PUBLIC CHAPTER NO. 300

                                                    SENATE BILL NO. 536

                                   By Stevens, Yager, Massey, Gardenhire, Lowe

                                             Substituted for: House Bill No. 194

      By Vaughan, Brock Martin; Mr. Speaker Sexton; Zachary, Cochran, Faison, Marsh, Haston,
                     Renea Jones, White, Garrett, Lamberth, McKenzie, Parkinson, Davis

AN ACT to amend Tennessee Code Annotated, Title 49, relative to education.

          WHEREAS, the General Assembly finds and declares it public policy that institutions and their
athletic programs are encouraged to compete nationally, attract elite talent, and provide the support
necessary to grow the economy of this State and its sports and entertainment industry, thereby
advancing, promoting, and protecting the interests of intercollegiate athletes; and

          WHEREAS, Tennessee institutions and their athletic programs need certainty to future-proof
their ability to compete in a fluid national collegiate athletics landscape, preserve their ability to comply
with pending court settlements, and safeguard the State's sovereign immunity; and

          WHEREAS, it is contrary to public policy for an institution's athletic association transacting
business in Tennessee to create anticompetitive restrictions that lessen, or tend to lessen, full and
free competition in trade or commerce affecting this State or to otherwise violate state and federal law;
now, therefore,

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Title 49, Chapter 7, Part 28, is amended by deleting
the part and substituting:

          49-7-2801.

                    As used in this part, unless the context otherwise requires:

                              (1) "Athlete agent" has the same meaning as defined in§ 49-7-2102;

                              (2) "Athletic association" means a corporation, association, or any other group
                    organized or with authority to set common rules, bylaws, standards, procedures,
                    policies, or guidelines in administering, sponsoring, or arranging intercollegiate
                    athletics and its athletic competitions .between and amongst multiple member
                    institutions and intercollegiate athletes in more than one (1) state;

                              (3) "Athletic program" means an intercollegiate athletic program at an institution;

                              (4) "Compensation" means payments, benefits, or other forms of remuneration
                    that may be provided to an intercollegiate athlete pursuant to§ 49-7-2802(a), but does
                    not include state appropriated funds;

                              (5) "Institution":

                                         (A) Means a four-year public or private institution •of higher education
                              located in this state and includes an officer, director, or employee thereof,
                              including athletic program coaches and staff; and

                                         (B) Does not include an institution of higher education governed by the
                              board of regents of the state university and community college system; and
S8536

                (6) "Intercollegiate athlete" means a student who is enrolled in an institution
       and participates in an athletic program or a prospective student who has started or
       completed ninth grade and can, in the future, enroll in an institution and participate in
       an athletic program.

       49-7-2802.

                (a) An intercollegiate athlete may perform diligence and receive compensation related
       to the use of the intercollegiate athlete's name, image, or likeness, the intercollegiate
       athlete's enrollment at an institution, roster position with its athletics program, or any other
       categories of compensation available to or received by similarly situated intercollegiate
       athletes in interstate commerce.

       (b )(1)

                            (A) A third party, including, but not limited to, an institution and its
                   affiliated foundations, or a third party authorized to act on behalf of such
                   institution or affiliated foundation, may facilitate, offer, and provide
                   compensation described in subsection (a) to an intercollegiate athlete unless
                   expressly prohibited or limited by:

                   (i) Federal law;

                            (ii) A valid court order with binding jurisdiction over an
                   institution and its intercollegiate athletes; or

                            (iii) An institution's athletic association that satisfies the
                   requirements in subdivision (b)(3).

                            (B) A third party acting or purporting to act on behalf of an institution or
                   its affiliated foundation pursuant to this subdivision (b)(1) shall provide the
                   intercollegiate athlete, upon request by the intercollegiate athlete, with written
                   evidence and the ability to verify such evidence with the institution or its
                   affiliated foundation within one (1) week of the request; provided, that if the
                   third party does not comply with the request in a timely manner or the
                   intercollegiate athlete is otherwise unable to verify authorization, then, upon
                   notice by the intercollegiate athlete, any contract entered into between an
                   unauthorized third party and an intercollegiate athlete is deemed null and void
                   from its inception without penalty, loss, or fault.

                 (2) Neither a grant-in-aid for athletics awarded to an intercollegiate athlete by
       an institution, including the cost of attendance, nor an institution's or its affiliated
       foundation's involvement in support of name, image, or likeness activities under this
       part constitutes compensation to, or representation of, an intercollegiate athlete by
       the institution for purposes of this section. Such institutional and affiliated foundation
       involvement shall be in furtherance of public policy and may include, but not be
       .limited to, entering into or otherwise participating in any business arrangements with
       third parties that may provide economic incentives, foster start-ups, make
       investments, explore business combinations, develop licensing opportunities, or
       involve any other commercial activity that directly or indirectly benefits the state, the
       institution, the affiliated foundation, intercollegiate athletes, or industry participants.

                (3) Regardless of the source of authority of an institution's athletic association
       pursuant to subdivisions (b)(1) or (b)(2), or any of its arrangements, agreements,
       contracts, transactions, settlements, or vote of any kind, the athletic association shall:

                            (A) Preserve all rights afforded to intercollegiate athletes under
                   applicable state and federal law;

                   (B) Preserve all immunities and rights available to each of its member

                   institutions under applicable state and federal law;  ,

                            (C) Not establish, adopt, promulgate, implement, or enforce any rule,
                   standard, procedure, policy, or guideline that violates an applicable state or
                   federal antitrust law and, prior to any implementation or enforcement thereof,
                   the athletic association must ensure that any action or conduct expected to be
                   carried out, executed, required, or otherwise performed thereunder by any
                   institution, its affiliated foundation, the athletic association itself, an
                   intercollegiate athlete, or an authorized third party thereof is and will be legally
                   exempt from applicable antitrust laws and meets the requirements of

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S8536

                             subdivisions (b){3)(A) arid (B), regardless of whether a choice or option is
                             made available by the association; and·

                                       (D) Not directly or indirectly condition, threaten, lessen, refuse,
                             remove, terminate, cancel, circumvent, penalize, disrupt, or otherwise interfere
                             with, in any way or degree, an institution's full enjoyment of its current and
                             future membership, status, or any related rights in the same, including, but not
                             limited to, voting rights, participation in athletic events, broadcasts, revenue, or
                             athlete eligibility based, in whole or part, on such association's failure to
                             adhere to, uphold, or otherwise satisfy the requirements of this subdivision
                             (b)(3) or any applicable law.

                             (4) An institution's athletic association shall not create or impose unfair,
                   anticompetitive, or unlawful conditions that directly or indirectly compel an institution
                   or intercollegiate athlete to participate under such conditions or risk violating state or
                   federal law, regardless of whether a choice or option is made available by the
                    association. The availability of a choice, vote, authorization, or mitigation attempt of
                    any kind does not absolve or relieve the athletic association of its obligations under
                    subdivision (b)(3) or this subdivision (b)(4). The requirements of subdivision (b)(3)
                    and this subdivision (b)(4) apply irrespective of a party's participation in such
                    conditions. The athletic association shall fully indemnify and hold harmless the state,
                    its institutions, and intercollegiate athletes from any damages, losses, claims, or
                    remedies of any kind arising from its noncompliance or failure under such applicable
                    law. Any violation of subdivision (b)(3) is unenforceable against institutions and
                    intercollegiate athletes without penalty, loss, or fault.

                    (c) An institution and its affiliated foundations must not be held liable to a third party
          or an intercollegiate athlete for any damages, losses, or claims of any kind resulting from, or
          related to, its good faith decisions, actions, or involvement in name, image, or likeness
          activities taken in the course of its participation in intercollegiate athletics or matters
          otherwise concerning this section. This chapter, including this section, does not waive or
          abrogate, in any way, sovereign immunity or any other right of immunity available at law.

                    (d) Intercollegiate athletes who earn third-party compensation pursuant to subsection
          (a) may be required to disclose any agreement and the terms of such agreement, subject to
          any commercially reasonable terms or conditions contained therein, to an athletic association
          or an institution, and file annual reports at a time and in a manner designated by the athletic
          association or the institution.

                    (e) Any diligence performed, or compensation earned, does not affect the
          intercollegiate athlete's grant-in-aid or athletic eligibility. To the extent that intercollegiate
          athletes receive need-based financial aid, an institution may adjust an intercollegiate athlete's
          need-based financial aid as a result of compensation earned under this part in the same
          manner as the institution would for other students with equivalent levels of financial need.

                    (f) An institution may adopt reasonable time, place, and manner restrictions to
          prevent an intercollegiate athlete's name, image, or likeness activities from interfering with
          team activities, the institution's operations, or the use of the institution's facilities, or where an
          athlete is engaged, or expected to be engaged, in any academic or athletic program activities
          at the institution.

                    (g)(1) An institution may prohibit an intercollegiate athlete's involvement in name,
                    image, and likeness activities that are reasonably considered tq be in conflict with the
                    values of the institution.

                              (2) An institution may prohibit use of the institution's intellectual property,
                    including, but not limited to, its trademarks, trade dress, and copyrights, by the
                    institution's intercollegiate athletes in the athletes' personal name, image, and
                    likeness activities.

                              (3) Intercollegiate athletes are prohibited from involvement in name, image, or
                    likeness activities that promote gambling, tobacco, tetrahydrocannabinol products or
                    derivatives, alcohol, and adult entertainment.

                    (h)(1) An intercollegiate athlete may obtain representation by a third party, including,
                    but not limited to, an athlete agent, for ·the purpose of performing diligence and
                    securing compensation contemplated pursuant to this . part. Any third-party
                    representative of an intercollegiate athlete under this part is· a fiduciary for the
                    represented intercollegiate athlete. All athlete agents who represent intercollegiate

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SB 536

                   athletes under this part for purposes of securing compensation must be licensed
                 • under§ 49-7-2104, and must satisfy the requirements of chapter 7, part 21 of this

                   title. If the athlete's representative is an attorney who represents an intercollegiate
                   athlete for purposes of performing diligence and securing compensation, then the
                   attorney must be active and in good standing with the board of professional
                   responsibility or equivalent entity in the state in which the attorney is licensed.

                             (2) Parents, siblings, grandparents, spouses, and legal guardians of an
                   intercollegiate athlete who represent the intercollegiate athlete for the purpose of
                   performing diligence and securing compensation for the use of the intercollegiate
                   athlete's name, image, or likeness are not considered to be athlete agents for
                   purposes of this part and are not subject to the requirements for athlete agents as
                   prescribed by this part or part 21 of this chapter.

                             (3) An institution and its affiliated foundations who assist, facilitate, or
                   otherwise provide support to an intercollegiate athlete for the purpose of performing
                   diligence and securing third-party compensation contemplated under subsections (a)
                   and (b) are not athlete agents for purposes of this part, and are not subject to the
                    requirements for athlete agents as prescribed by this part or part 21 of this chapter;
                    provided, that an individual of such institution or affiliated foundation shall not have a
                   direct pecuniary or financial interest in the specific terms of the intercollegiate
                    athlete's third-party compensation other than a third-party agreement described in
                    subdivision (b)(1 ), and such individual does not coerce, compel, or interfere with an
                    intercollegiate athlete's decision to earn such compensation.

                    (i)(1) An intercollegiate athlete or the athlete's representative shall not enter into an
                    agreement for compensation pursuant to subsection (a) if the agreement conflicts or
                    unreasonably competes with the terms of an existing agreement entered into at any
                   _time by the institution the athlete attends or its affiliated foundations.

                             (2) The institution or affiliated foundation asserting a conflict or unreasonable
                    competition under this subsection (i) shall disclose the relevant terms of the
                    institution's existing agreement that conflicts or unreasonably competes with the
                    athlete's agreement to the intercollegiate athlete or the athlete's representative.

                    0) A,ny agreement entered into by an intercollegiate athlete under eighteen (18) years
          of age for the use of the athlete's name, image, or likeness must be in accordance with the
          Tennessee Protection of Minor Performers Act, compiled in title 50, chapter 5, part 2.

                    (k) An agreement for representation of an intercollegiate athlete must not be in effect
          any longer than the duration of the athlete's participation in an athletic program at an
          institution. If an intercollegiate athlete enters into a third-party agreement other than an
          agreement described in subdivision (b)(1 ), and the agreement with the third party is in
          conflict with an athlete's eligibility to participate in an athletic program at an institution, or will
          prevent an athlete from participating in any athletic program event, then the agreement must
          be immediately rescinded or modified to adequately remove the defect and preserve the
          athlete's eligibility prior to participating in the athletic program or the event and, if the
          agreement is not timely resolved or the third party is otherwise in default, then the athlete has
          the right to have such agreement immediately deemed null and void from its inception, and
          all rights under the agreement must immediately revert to the athlete without fault, loss, or
          penalty.

                    (I) Institutions shall conduct a financial literacy workshop for intercollegiate athletes
          during the athlete's first full-time term of enrollment. The workshop must cover, at a
          minimum, information related to the requirements of this part, budgeting, and debt
          management. An institution and its affiliated foundations may contract with qualified persons
          or entities to conduct the workshop.

                    (m)(1) Notwithstanding § 10-7-503 or another law to the contrary, any records,
                    materials, information, or other data received, developed, generated, ascertained, or
                    discovered in the course of diligence, compensation, or other activities pursuant to
                    this section, including, but not limited to, planning, strategies, recruitment, eligibility,
                    competition, marketing, commercial opportunities, financial_ strategies, or other
                    matters pertaining thereto, _regardless of physical form or characteristics, are
                    confidential and not subject to public inspection under the open records laws.

                              (2) Notwithstanding subdivision (m)(1 ), upon an institution receiving a public
                    records request pursuant to the open records laws, compiled in title 10, chapter 7, the
                    institution shall make available annualized, aggregated compensation data

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SB 536

                   representing actual amounts provided by such institution to its intercollegiate athletes
                   for an academic year pursuant to subdivision (b)(1) for an intercollegiate athlete's
                   name, image, and likeness;· provided, however, such data must not reveal any
                   personally identifiable information of an intercollegiate athlete protected under state
                   or federal law nor reveal any proprietary business information of a third party,
                   including confidential commercial terms.

                             (3) The attorney general and reporter or a state agency performing an official
                   function may review all records, materials, or other information subject to this
                   subsection (m); provided, however, that any information obtained remains confidential
                   and is not subject to disclosure.

                             (4) This subsection (m) does not prohibit voluntary disclosure by an
                   intercollegiate athlete, the athlete's representative, an institution, an affiliated
                   foundation, or an authorized third party.

                             (5) This subsection (m) is repealed on July 1, 2032.

          49-7-2803.

                    (a) An institution's athletic association shall not:

                             (1) Interfere with, prohibit, restrict, or otherwise adversely affect an
                    intercollegiate athlete's ability to earn compensation, seek representation, perform
                    diligence, or otherwise participate in an activity described in§ 49-7-2802 and shall not
                    otherwise impact an intercollegiate athlete's eligibility or full participation in
                    intercollegiate athletic events;

                              (2) Interfere with, prohibit, restrict, or otherwise punish an institution and its
                    affiliated foundation for participating in an activity described in § 49-7-2802;

                              (3) Threaten, condition, or cause an institution or a governing body of this
                    state to repeal any state law and suffer any detrimental harm, economic or otherwise,
                    in order to participate in such association and enjoy its full rights of membership or
                    otherwise thereunder; or

                              (4) Violate § 49-7-2802(b)(4); unless, in each case, this part is invalidated or
                    rendered unenforceable by operation of law. The attorney general and reporter may
                    bring any appropriate action or proceeding against an institution's athletic association
                    in any court of competent jurisdiction pursuant to this part.

                    (b) This section does not authorize, create, or afford any private cause of action,
          liability, or basis for injunctive or equitable relief by any private person or entity by virtue of
          such party's or entity's relationship with an institution's athletic association.

          49-7-2804.

                    (a) Notwithstanding §§ 49-7-2802 and 49-7-2803, a private institution of higher
          education and an athletic association of which the private institution is a member may, upon
          mutual agreement between the institution and the athletic association, opt out of the
          requirements of § 49-7-2802(b)(3) or (b)(4) or § 49-7-2803 with respect to the athletic
          association's common rules, bylaws, standards, procedures, policies, or guidelines pertaining
          to intercollegiate athletes enrolled at the private institution; provided, that no private
          institution's agreement can modify or prevent the application of this chapter with regard to the
          athletic association and its relationship to other institutions or other intercollegiate athletes.

                    (b) The private institution shall provide notice to all intercollegiate athletes enrolled at
          the institution and all members of the relevant athletic association de$cribed in subsection (a)
          of any mutual election to opt out of any provision of this part within the earlier of thirty (30)
          days of the mutual election or thirty (30) days of an intercollegiate athlete's first enrollment at
          the institution where the athlete intends to participate in the institution's athletic program.

          SECTION 2. If any provision of thi"s 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 upon becoming a law, the public welfare requiring it.

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         SENATE BILL NO. 536

PASSED:  April 21, 2025

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                          ' - - --  RANo\ McNALLY

                          SPEAKER OF THE SENATE

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                             CAMERONSEXTON,SPEAKER
                            HOUSE OF REPRESENTATIVES

/5!___ APPROVED this  day o f ~     2025

         BILL LEE, GOVERNOR
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