Alcoholic Beverages - As enacted, changes present law concerning common ownership of entities involved in the alcoholic beverages industry. - Amends TCA Title 57. HB2272 has been assigned Public Chapter Number 917 by the, the official text

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                        ~tate of \lrennessee

                          PUBLIC CHAPTER NO. 917

                                                  HOUSE BILL NO. 2272

                          By Representatives Crawford, Eldridge, Atchley, Davis

                                       Substituted for: Senate Bill No. 2163

                                                By Senators Briggs, Seal

          AN ACT to amend Tennessee Code Annotated, Title 57, relative to liability of celebrities
who endorse an alcoholic beverage licensee.

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

          SECTION 1. Tennessee Code Annotated, Section 57-4-110, is amended by deleting the
section and substituting:

                    (a) Notwithstanding another law or rule to the contrary, a manufacturer licensed
          under § 57-3-202, a winery licensed under § 57-3-207, or a non-resident seller or a non-
          manufacturer, non-resident seller licensed under§ 57-3-605, including, but not limited to,
          a person with a direct or indirect interest in any of the foregoing, may have a direct or
          indirect interest in an establishment licensed pursuant to this part; provided, that the
          person's interest under chapter 3 of this title or the person's interest under this part is
          held in an irrevocable trust by an independent trustee.

                    (b) A person whose interest in a brand or business is held in an irrevocable trust
          by an independent trustee shall not participate in the management or operation of the
          brand or business for which the interest was placed in the irrevocable trust.

                    (c)

                              (1) A person whose interest is held in an irrevocable trust by an
                    independent trustee may enter into a licensing agreement through the trust for
                    the use of the person's name, image, or likeness, and such person may
                    participate in advertising or promotional activities for the brand or business held
                    in the trust through the use of the person's individual name, image, or likeness,
                    including, but not limited to, personal appearances, active promotion, and new
                    content capture if the advertising or promotional activities are limited to the
                    promotion of the brand or licensed retail establishment and such advertising or
                    promotional activities do not constitute a violation of existing federal law.

                              (2) Any such licensing agreement may provide for compensation payable
                    to the trust that is based on one (1) or more of the following:

                                        (A) A fixed fee; or

                                        (B) A percentage of sales or profits that does not exceed ten
                              percent (10%).

                              (3) Any licensing agreement or related document provided to the
                    commission pursuant to this subsection (c) constitutes proprietary information
                    pursuant to§ 10-7-504(a)(24).

                    (d) The limitation on personal liability of beneficiaries in§ 35-15-1015 applies to
          beneficiaries of a trust formed under this section and the trustee is afforded all limitation
          of liability granted a trustee under § 35-15-1010. The limitation on personal liability of
          beneficiaries applies to licensing agreements placed into a trust pursuant to this section,
          as though the licensing agreement was made by the trustee or the tort was committed
          by the trustee in the course of administration of the trust.

          SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.
         HOUSE BILL NO. 2272

PASSED:  April 14, 2026

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                            CAMERON SEXTON, SPEAKER
                           HOUSE OF REPRESENTATIVES

                                      RANDY MCNA~Y
                         SPEAKER OF THE SENA'E

APPROVED this JS+ day of { \ I ) ~  2026

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BILL LEE, GOVERNOR