Bill > SB2163

This bill amends Tennessee law to provide a limitation on liability for celebrities who endorse alcoholic beverage brands or establishments licensed to sell alcohol for on-premises consumption. It defines terms like "alcoholic beverage brand," "celebrity," "celebrity endorsement agreement," and "NIL agreement" (which refers to an agreement for the use of an individual's commercial exploitation or publicity rights, including their name, image, and likeness). The bill outlines specific requirements for a celebrity to enter into such an agreement, including being at least 21 years old, a U.S. citizen, and not holding certain public offices or having recent convictions related to alcohol sales or felonies involving moral turpitude. Crucially, it states that a celebrity endorsement agreement, including compensation and personal promotional activities, does not create an ownership interest or involvement in the operations of the alcoholic beverage brand or establishment, as long as the celebrity has no ownership interest and is not directly involved in the entity's operations, management, or control. The bill clarifies that certain actions, like approving intellectual property use or marketing materials, or participating in personal promotional activities, do not constitute such involvement. It also establishes that a celebrity is generally not liable for injuries or damages caused by the alcoholic beverage brand or establishment, unless the celebrity was directly involved in the sale, has an ownership interest, or is directly involved in the operation, management, or control of the entity. The bill allows the commission to require documentation from celebrities receiving a significant portion of proceeds to verify eligibility, and this information will be considered proprietary and not public record.

Government Affairs, Justice

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=SB2163&ga=114