Senate Bill 1662, also known as House Bill 1945, aims to amend Tennessee law regarding funding for intercollegiate athletic programs. The bill introduces a new section to Tennessee Code Annotated, Title 4, Chapter 49, which mandates that vendors pay a fee equal to 25% of all compensation received from licensees under revenue-sharing agreements. This fee must be paid to the council within 30 days of receipt and will be deposited into a newly established "public institution athletic program fund" to support public institutions and their athletic programs. Additionally, the bill outlines the responsibilities of vendors and licensees to provide necessary information to the council, which must remain confidential.

The bill further establishes a special account in the state treasury to assist public institutions with eligible recruiting expenses, which include costs related to recruiting intercollegiate athletes. The Tennessee higher education commission will administer this fund, which will consist of the fees collected and any additional public or private funds. The commission is tasked with developing a formula for distributing grants to public institutions based on enrollment, prioritizing the six locally governed state universities. The commission will also be required to submit annual reports detailing the fund's administration and the impact of the grants on attracting talented athletes. The act will take effect upon becoming law for rule promulgation, while other provisions will take effect on July 1, 2026.