Bill > HB2272

This bill amends Tennessee law to allow manufacturers, wineries, or non-resident sellers of alcoholic beverages, including those with indirect interests, to also have an interest in establishments licensed to sell alcoholic beverages, provided that their ownership stake is held within an irrevocable trust managed by an independent trustee. This means that while the individual may benefit from the business, they cannot directly manage or operate it. Importantly, individuals can still license the use of their name, image, or likeness for advertising and promotional activities related to the brand or licensed retail establishment through this trust, and compensation can be based on a fixed fee or a percentage of sales/profits not exceeding ten percent. The bill also clarifies that beneficiaries of such trusts and the trustees themselves receive limitations on personal liability, similar to protections found in other trust laws, meaning they are generally not held personally responsible for actions taken within the scope of the trust's administration or for licensing agreements made by the trust.