TN HB1945

Vendors must pay a 25% fee on all compensation received from licensees under revenue sharing agreements, due within 30 days of receipt, with proceeds deposited into a new "Public Institution Athletic Program Fund"

The fund, administered by the Tennessee Higher Education Commission, provides grants to four-year public institutions (excluding Board of Regents schools) to cover eligible recruiting expenses such as lodging, meals, transportation, and recruiting materials

Grant distribution uses an inverse enrollment weighting formula, giving smaller institutions higher amounts and larger institutions lower amounts, with priority given to the six locally governed state universities

Commission administrative costs are capped at 5% of grants awarded, and fund balances carry forward without reverting to the general fund

Annual reporting to legislative leadership is required by December 31 starting in 2026, detailing fund balances, grants awarded, and impact on institutions' ability to recruit athletes