Official Summary Text
ON MARCH 24, 2025, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 536, AS AMENDED.
AMENDMENT #1 rewrites the bill to, instead, revise present law relative to an intercollegiate athlete's name, image, or likeness in the follow
ing ways:
Rewrites such law to, instead, authorize an intercollegiate athlete to 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.
Defines "compensation" as payments, benefits, or other forms of remuneration that may be provided to an intercollegiate athlete pursuant to this amendment, but does not include state appropriated funds.
Defines an "institution" as 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. However, such term does not include an institution of higher education governed by the board of regents of the state university and community college system.
Authorizes 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, to facilitate, offer, and provide compensation described above 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 this amendment.
Defines an "athletic association" as 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 state.
Requires a third party so acting, or purporting to act, on behalf of an institution, or its affiliated foundation, to provide the intercollegiate athlete, upon request by the athlete, with written evidence and the ability to verify such evidence with the institution or its affiliated foundation within one week of the request. However, 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.
Provides that 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 amendment constitutes compensation to, or representation of, an intercollegiate athlete by the institution for purposes of this amendment. Such institutional and affiliated foundation involvement must 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.
REQUIREMENTS OF AN INSTITUTION'S ATHLETIC ASSOCIATION
Requires, regardless of the source of authority of an institution's athletic association pursuant to the above provisions, or any of its arrangements, agreements, contracts, transactions, settlements, or vote of any kind, the athletic association to comply with all of the following:
Preserve
all rights afforded to intercollegiate athletes under applicable state and federal law
.
Preserve all immunities and rights available to each of its member institutions under applicable state and federal law.
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 intercollege athlete, or an authorized third party thereof is and will be legally exempt from applicable antitrust laws and meets the requirements of this heading, regardless of whether a choice or option is made available by the association.
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 heading or any applicable law.
Prohibits an institution's athletic association from creating or imposing 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 this heading. The requirements of this heading apply irrespective of a party's participation in such conditions. The athletic association must 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 this heading is unenforceable against institutions and intercollegiate athletes without penalty, loss, or fault.
IMMUNITY FROM LIABILITY
Prohibits an institution and its affiliated foundations from being 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 amendment. However, this amendment does not waive or abrogate, in any way, sovereign immunity or any other right of immunity available at law.
DISCLOSURES AND ANNUAL REPORTS
Authorizes intercollegiate athletes who earn third-party compensation pursuant to this amendment to 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.
EFFECT ON FINANCIAL AID
Provides that 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 amendment in the same manner as the institution would for other students with equivalent levels of financial need.
PERMITTED RESTRICTIONS
Authorizes an institution to 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.
CONFLICTS WITH THE INSTITUTION'S VALUES AND INTELLECTUAL PROPERTY
Authorizes an institution to prohibit an intercollegiate athlete's involvement in name, image, and likeness activities that are reasonably considered to be in conflict with the values of the institution.
Authorizes an institution to 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.
Prohibits intercollegiate athletes from involvement in name, image, or likeness activities that promote gambling, tobacco, tetrahydrocannabinol products or derivatives, alcohol, and adult entertainment.
ATHLETE AGENTS
Authorizes an intercollegiate athlete to 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 amendment. Any third-party representative of an intercollegiate athlete under this amendment is a fiduciary for the represented intercollegiate athlete. All athlete agents who represent intercollegiate athletes under this amendment for purposes of securing compensation must be licensed under, and must satisfy the requirements of, the Revised Uniform Athlete Agents Act. 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.
Provides that 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 amendment and are not subject to the requirements for athlete agents as prescribed by this amendment or the Revised Uniform Athlete Agents Act.
Provides that 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 this amendment are not athlete agents, and are not subject to the requirements for athlete agents as prescribed in this amendment or the Revised Uniform Athlete Agents Act as long as an individual of such institution or affiliated foundation does 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 this amendment, and such individual does not coerce, compel, or interfere with an intercollegiate athlete's decision to earn such compensation.
PROHIBITED AGREEMENTS
Prohibits an intercollegiate athlete or the athlete's representative from entering into an agreement for compensation pursuant to this amendment 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.
Requires the institution or affiliated foundation asserting a conflict or unreasonable competition under this heading to 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.
COMPLIANCE WITH TENNESSEE PROTECTION OF MINOR PERFORMERS ACT
Requires any agreement entered into by an intercollegiate athlete under 18 for the use of the athlete's name, image, or likeness to be in accordance with the Tennessee Protection of Minor Performers Act.
PROHIBITED AGREEMENT FOR REPRESENTATION
Prohibits an agreement for representation of an intercollegiate athlete from being 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 this amendment, 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.
FINANCIAL LITERACY WORKSHOP
Requires institutions to 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.
CONFIDENTIALITY
Provides that 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 amendment, 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.
Requires, upon an institution receiving a public records request pursuant to the open records laws, the institution to make available annualized, aggregated compensation data representing actual amounts provided by such institution to its intercollegiate athletes for an academic year for an intercollegiate athlete's name, image, and likeness. 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.
Authorizes the attorney general, or a state agency performing an official function, to review all records, materials, or other information subject to this heading. However, any information obtained remains confidential and is not subject to disclosure.
The provisions in this heading do not prohibit voluntary disclosure by an intercollegiate athlete, the athlete's representative, an institution, an affiliated foundation, or an authorized third party.
Removes the provisions in this heading on July 1, 2032.
PROHIBITIONS OF AN INSTITUTION'S ATHLETIC ASSOCIATION
Prohibits an institution's athletic association from engaging in any of the following:
Interfering with, prohibiting, restricting, or otherwise adversely affecting an intercollegiate athlete's ability to earn compensation, seek representation, perform diligence, or otherwise participate in an activity described in this amendment and otherwise impacting an intercollegiate athlete's eligibility or full participation in intercollege athletic events.
Interfering with, prohibiting, restricting, or otherwise punishing an institution and its affiliated foundation for participating in an activity described in this amendment.
Threatening, conditioning, or causing 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.
Creating or imposing 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 unless, in each case, this amendment is invalidated or rendered unenforceable by operation of law. The attorney general may bring any appropriate action or proceeding against an institution's athletic association in any court of competent jurisdiction pursuant to this amendment.
Provides that the provisions in this heading do 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.
SEVERABILITY CLAUSE
Provides that if any provision of this amendment or its application to any person or circumstance is held invalid, then the invalidity does not affect other provisions or applications of the amendment that can be given effect without the invalid provision or application, and to that end, the provisions of this amendment are severable.
ON APRIL 16, 2025, THE HOUSE SUBSTITUTED SENATE BILL 356 FOR HOUSE BILL 194, ADOPTED AMENDMENT #1, AND PASSED SENATE BILL 356, AS AMENDED.
AMENDMENT #1 incorporates the changes made by Senate Amendment #1 with the follo
wing changes and additions:
(1) Makes several corrections to cross references to conform to standardized form and style guidelines; and
(2) Specifies that
a private institution of higher education and an athletic association of which the private insti
tution is a member may, upon mutual agreement between the institution and the athletic association, opt out of the requirements of
this bill concerning anticompetitive behavior
with respect to the athletic association's common rules, bylaws, standards, pro
cedures, 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
present law concerning postsecondary and higher educatio
n
with regard to the athletic association and its relationship to other institutions or other intercollegiate athletes.
The private institution shall provide notice to all intercollegiate athletes enrolled at the institution and all members of the relevan
t athletic association
with which it makes
a mutual election to opt out of any provision of this
bill
within the earlier of 30 days of the mutual election or 30 days of an intercollegiate athlete's first enrollment at the institution where the athlete inte
nds to participate in the institution's athletic program.