Alcoholic Beverages

Plain English Breakdown

The bill text includes detailed conditions for endorsements but does not specify penalties or consequences if a celebrity fails to meet these conditions after signing an agreement.

Act to Limit Liability for Celebrities Endorsing Alcoholic Beverages

This bill limits legal responsibility for celebrities who endorse alcoholic beverages or businesses that sell them under certain conditions.

What This Bill Does

• Allows a celebrity to enter into an endorsement agreement if they meet specific criteria, such as being at least 21 years old and not having any criminal record related to alcohol within the last ten years.
• States that compensation received by a celebrity for endorsements does not mean ownership or control of the business.
• Lists activities that do not count as controlling a business, like approving marketing ideas or making personal appearances.
• Gives the alcoholic beverage commission power to ask celebrities for information and documents if they receive 5% or more of proceeds from sales.

Who It Names or Affects

• Celebrities who want to endorse alcohol-related businesses in Tennessee.
• Businesses that sell alcoholic beverages on-premises, like bars or restaurants.

Terms To Know

Celebrity

A famous person widely recognized by the public in Tennessee.

Endorsement Agreement

An agreement where a celebrity gives permission for their name or image to be used with an alcoholic beverage brand or business.

Limits and Unknowns

• The bill does not specify consequences if a celebrity fails to meet the criteria after signing an endorsement agreement.
• It is unclear how this will affect existing endorsements and agreements.
• This act only applies in Tennessee and may change with further actions by the state legislature.

Official Summary Text

This bill authorizes a celebrity to enter into a celebrity endorsement agreement if the celebrity meets all of the following criteria:



Is at least 21.


Is a citizen of the United States.


Is not a member or employee of the alcoholic beverage commission.


Does not hold a public office and is not a public employee, other than uncompensated appointees to municipal boards and commissions where the boards or commissions on which such appointees serve have no duty to vote for, overlook, or in any manner superintend the sale of alcoholic beverages.


Has not been convicted within the 10-year period preceding entering the celebrity endorsement agreement of any offense under this title, or of any similar law of any other state or of the United States, prohibiting or regulating the sale, possession, transportation, storing, manufacturing, or otherwise handling alcoholic beverages or beer, or who has, during such period, been engaged in business alone or with others, in violation of any of such laws or rules promulgated pursuant to such laws.


Has not been convicted of a felony involving moral turpitude within the 10-year period preceding entering the celebrity endorsement agreement.


Has never had a license related to the manufacture, sale, or distribution of any form of alcoholic beverages or beer revoked for cause.

This bill provides that a celebrity endorsement agreement, including compensation received by a celebrity under a celebrity endorsement agreement and any personal promotional activities pursuant to a celebrity endorsement agreement, does not constitute a
direct or indirect ownership interest in the alcoholic beverage brand or on-premise establishment and does not constitute property, if the celebrity does not have any ownership interest in the entity that is a party to the celebrity endorsement agreement
a
nd the celebrity is not directly involved in the operations, management, or control of the entity that is the party to the celebrity endorsement agreement.

This bill provides that neither of the following constitutes involvement in the operations, management, or control of the alcoholic beverage brand or on-premise establishment:



The right to approve use of intellectual property, marketing, brand manufacturing methods, brand taste profiles, and other brand criteria, food, and beverage menus, décor, and other trade dress.


Personal promotional activities or occasional performances by the celebrity at the on-premise establishment or on behalf of the on-premise establishment or alcoholic beverage brand.

This bill authorizes the alcoholic beverage commission to require a questionnaire and valid government identification from a celebrity that receives 5% or more of the proceeds from the sale of alcoholic beverages under a celebrity endorsement agreement t
o establish that the celebrity meets the criteria above. Any questionnaire, government identification form, celebrity endorsement agreement, or related document provided by a celebrity constitutes proprietary information and is not a public record.

ON APRIL 6, 2026, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 2272, AS AMENDED.

AMENDMENT #1 rewrites this bill to change present law concerning common ownership of entities involved in the alcoholic beverages industry.

Present law authorizes a licensed manufacturer of alcoholic beverages to have a direct or indirect interest in an establishment licensed for on premises consumption of alcoholic beverages; provided, that such interest is held in an irrevocable trust by a
n independent trustee

This amendment changes present law to authorize a licensed manufacturer, winery, or a non-resident seller or a non-manufacturer, licensed non-resident seller, including, but not limited to, a person with a direct or indirect interest in any of the forego
ing, to have a direct or indirect interest in an establishment licensed for on premises consumption of alcoholic beverages; provided, that the person's interest is held in an irrevocable trust by an independent trustee.

This amendment prohibits a person whose interest in a brand or business is held in an irrevocable trust by an independent trustee from participating in the management or operation of the brand or business for which the interest was placed in the irrevoca
ble trust.

This amendment authorizes person whose interest is held in an irrevocable trust by an independent trustee to 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 adve
rtising or promotional activities for the brand or business held in the trust. Any such licensing agreement may provide for compensation payable to the trust that is based on one or more of the following:

(1) A fixed fee; or

(2) A percentage of sales or profits that does not exceed 10%.

Any licensing agreement or related document provided to the alcoholic beverage commission pursuant to this amendment constitutes proprietary information for purposes of the open records law.

ON APRIL 9, 2026, THE SENATE SUBSTITUTED HOUSE BILL 2272 FOR SENATE BILL 2163, ADOPTED AMENDMENT #2, AND PASSED HOUSE BILL 2272, AS AMENDED.

AMENDMENT #2 r
ewrites this bill to change present law concerning common ownership of entities involved in the alcoholic beverages industry.

Present law authorizes a licensed manufacturer of alcoholic beverages to have a direct or indirect interest in an establishment licensed for on premises consumption of alcoholic beverages; provided, that such interest is held in an irrevocable trust by a
n independent trustee
.

This amendment changes present law to authorize a licensed
manufacturer, winery, or a non-resident seller or a non-manufacturer,
licensed
non-resident seller, including, but not limited to, a person with a direct or indirect interest in any of the foregoing,
to
have a direct or indirect interest in
an establishment licensed for on premises consumption of alcoholic beverages
; provided, that the person's interest is held in an irrevocable trust by an independent trustee.

This amendment prohibits a
person whose interest in a brand or business is held in an irrevocable trust by an independent trustee
from
participat
ing
in the management or operation of the brand or business for which the interest was placed in the irrevocable trust.

This amendment authorizes
person whose interest is held in an irrevocable trust by an independent trustee
to
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.
A
ny such licensing agreement may provide for compensation payable to the trust that is based on one or more of the following:

(
1
) A fixed fee; or

(
2
) A percentage of sales or profits that
does not exceed 10%.

Any licensing agreement or related document provided to the
alcoholic beverage c
ommission pursuant to this
amendment
constitutes proprietary information
for purposes of the open records law
.

Current Bill Text

HOUSE BILL 2272
By Crawford

SENATE BILL 2163
By Briggs
SB2163
011236
- 1 -

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

WHEREAS, the General Assembly finds that a celebrity endorsement of an alcoholic
beverage brand or a business that sells alcoholic beverages for on-premise consumption does
not constitute ownership of the brand or business, and that a celebrity should not be liable for
damages from the sale of celebrity-endorsed alcoholic beverages of an endorsed brand or by
an endorsed business that the celebrity does not own; now, therefore,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 57, Chapter 10, is amended by adding
the following as a new section:
(a) As used in this section:
(1) "Alcoholic beverage brand" means a brand, as defined in § 57-3-301,
that is manufactured by or for an establishment licensed or permitted under § 57-
3-202, § 57-3-207, or § 57-3-602;
(2) "Celebrity" means a prominent individual widely recognized by the
public in this state, including, but not limited to, musicians and other entertainers,
film and television actors, authors, athletes, and other individuals that have
attained widespread public attention in this state, and who meets the
requirements of subsection (b);
(3) "Celebrity endorsement agreement" means an NIL agreement in
which a celebrity licenses use of the celebrity's intellectual property for use by an
alcoholic beverage brand or an on-premise establishment;

- 2 - 011236

(4) "Intellectual property" means any trademark, trade name, service
mark, copyright, or other proprietary right recognized under state or federal law;
(5) "NIL agreement" means an agreement for the use of an individual's
commercial exploitation rights, publicity rights, or other intellectual property rights
in the individual's name, image, voice, signature, photo, likeness, and any other
identifiable attribute of the individual. An NIL may include personal promotional
activities;
(6) "On-premise establishment" means a retailer licensed pursuant to §
57-4-101; and
(7) "Personal promotional activities":
(A) Means a celebrity's sponsorship, advertising, endorsement,
marketing, or other promotion of an alcoholic beverage brand or an on-
premise establishment, pursuant to a celebrity endorsement agreement,
including, but not limited to, personal appearances, social media posts,
performances, or events; and
(B) Includes a celebrity's agent acting on behalf of the celebrity
and other indirect efforts pursuant to a celebrity endorsement agreement.
(b) A celebrity may enter into a celebrity endorsement agreement if the celebrity:
(1) Is at least twenty-one (21) years of age;
(2) Is a citizen of the United States;
(3) Is not a member or employee of the commission;
(4) Does not hold a public office and is not a public employee, other than
uncompensated appointees to municipal boards and commissions where the
boards or commissions on which such appointees serve have no duty to vote for,
overlook, or in any manner superintend the sale of alcoholic beverages;

- 3 - 011236

(5) Has not been convicted within the ten-year period preceding entering
the celebrity endorsement agreement of any offense under this title, or of any
similar law of any other state or of the United States, prohibiting or regulating the
sale, possession, transportation, storing, manufacturing, or otherwise handling
alcoholic beverages or beer, or who has, during such period, been engaged in
business alone or with others, in violation of any of such laws or rules
promulgated pursuant to such laws;
(6) Has not been convicted of a felony involving moral turpitude within
the ten-year period preceding entering the celebrity endorsement agreement;
and
(7) Has never had a license related to the manufacture, sale, or
distribution of any form of alcoholic beverages or beer revoked for cause.
(c) A celebrity endorsement agreement, including compensation received by a
celebrity under a celebrity endorsement agreement and any personal promotional
activities pursuant to a celebrity endorsement agreement, does not constitute a direct or
indirect ownership interest in the alcoholic beverage brand or on-premise establishment
under this title and does not constitute property as the term is used in a rule of the
commission, if:
(1) The celebrity does not have any ownership interest in the entity that is
a party to the celebrity endorsement agreement; and
(2) The celebrity is not directly involved in the operations, management,
or control of the entity that is the party to the celebrity endorsement agreement.
(d) The following does not constitute involvement in the operations,
management, or control of the alcoholic beverage brand or on-premise establishment:

- 4 - 011236

(A) The right to approve use of intellectual property, marketing, brand
manufacturing methods, brand taste profiles, and other brand criteria, food, and
beverage menus, décor, and other trade dress; or
(B) Personal promotional activities or occasional performances by the
celebrity at the on-premise establishment or on behalf of the on-premise
establishment or alcoholic beverage brand.
(e) The commission may require a questionnaire and valid government
identification from a celebrity that receives five percent (5%) or more of the proceeds
from the sale of alcoholic beverages under a celebrity endorsement agreement to
establish that the celebrity meets the criteria in subsection (b). Any questionnaire,
government identification form, celebrity endorsement agreement, or related document
provided by a celebrity pursuant to this subsection (e) constitutes proprietary information
and is not a public record pursuant to § 10-7-504(a)(24).
(f)
(1) Except as provided in subdivision (f)(2), a celebrity who is a party to a
celebrity endorsement agreement with an on-premise establishment or alcoholic
beverage brand is not liable for an injury, death, damage, loss, or claim based in
whole or in part on the action or inaction of the alcoholic beverage brand or on-
premise establishment, or a franchisee, or agent, contractor, or employee of such
on-premise establishment or alcoholic beverage brand.
(2) Subdivision (f)(1) does not apply if the celebrity:
(A) Personally sold, supervised, directed, or was otherwise
involved in the sale of the alcoholic beverage or beer, or the proximate
cause of the injury or death;

- 5 - 011236

(B) Has an ownership interest in the on-premise establishment or
alcoholic beverage brand; or
(C) Is directly involved in the operation, management, or control
of the on-premise establishment or alcoholic beverage brand.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.