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State Name, Image, and Likeness Legislation

by michelle

Currently, 11 states have passed legislation around a collegiate athlete’s ability to monetize their Name, Image, and Likeness. Although federal legislation will most likely trump these, states continuing to pass legislation puts pressure on both the NCAA and Congress to act and to act fast. 

July 1st of this year is when the first state NIL bills go into effect; allowing athletes to monetize their name, image, and likeness in Alabama, Florida, Mississippi, and New Mexico. Arizona follows closely after with their state NIL bill going into effect on July 23. 

Jump to State NIL Section:

ALABAMA NIL BILL

Name: HB 404

Passed: April 20, 2021

Effective: July 1, 2021

Notables:

  • Student-athletes could receive compensation for their name, image, and likeness at “market value”.
  • Student-athletes could hire an agent or attorney to represent them for the purposes of receiving NIL compensation.
  • Universities could not unreasonably restrict student-athletes from receiving NIL compensation or hiring an attorney or agent.
  • Universities could not compensate their own athletes for NIL.
  • NIL compensation could not be used as a recruiting inducement or a reward for participation or performance.
  • The bill would also set up an Alabama Collegiate Athletics Commission to make rules consistent with the bill, consult with experts on college athletics, and monitor compliance with the law.

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ARIZONA NIL BILL

Name: SB 1296: Collegiate athletics; compensation

Passed: March 26, 2021

Effective: July 23, 2021

Notables:

  • Prohibits collegiate athletes from entering into contracts that conflict with their team’s contract(s).
  • Includes agent licensing requirements.
  • Protects Collegiate athletes from being denied a scholarship or eligibility for their sport if they receive NIL-based compensation.
  • Prevents collegiate athletes from entering into contracts that conflict with another individual’s, or their institution’s, intellectual property rights.
  • No provision requiring collegiate athletes to disclose endorsement contracts.

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ARKANSAS NIL BILL

Name: AR HB 1671: Arkansas Student-Athlete Publicity Rights Act

Passed: April 21, 2021

Effective: January 1, 2022

Notables:

  • Athletes can’t promote themselves during practices, games, or other team activities. 
  • Contracts can’t conflict with the institution’s contracts or policies.
  • Athletes are permitted to hire representation but they must be licensed in Arkansas.
  • Athletes must disclose contract terms, conditions, parties, and compensation to a designated official of the university. 
  • Athletes are prohibited from endorsing adult entertainment, alcohol, casinos, drugs, or weapons. 

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CALIFORNIA NIL BILL

Name: SB 206: “Fair Pay to Play Act”

Passed: September 27. 2019

Effective: January 1, 2023

Notables:

  • The first state to legislate the right of collegiate athletes to earn compensation for their NIL.
  • Only applicable to athletes enrolled at 4-year institutions.
  • Forbids deals that undermine an institution’s existing endorsements.
  • There may be a supplement added to the original bill to ensure full protection of college athletes’ rights and also move up the effective date no later than January 1, 2022.

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COLORADO NIL BILL

Name: SB20-123: “Compensation and Representation of Student-Athletes”

Passed: March 20, 2020

Effective: January 1, 2023

Notables:

  • Prevents any athletics association from developing legislation that restricts an athlete from monetizing their NIL.
  • An athlete can seek legal representation but it must be a licensed attorney.
  • Athletes may not enter into an agreement that conflicts with a team contract.
  • Athletes must disclose any signed agreements to the institution within 72 hours. 

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FLORIDA NIL BILL

Name: SB646: Intercollegiate Athlete Compensation and Rights

Passed: July 12, 2020

Effective: July 1, 2021

Notables:

  • Compensation must not be based on athletic performance or attendance at a particular institution.
  • Athletes may not enter into an agreement if the terms conflict with the terms of the athlete’s program. If a conflict does occur, the institution is required to disclose the conflict to the athlete.
  • Any attorney representing an athlete must be in good standing with the Florida Bar.
  • Agreements can’t extend beyond the athlete’s eligibility.
  • Institutions are required to conduct financial literacy and life skills workshops that include financial aid, debt management, and budgeting.

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MICHIGAN NIL BILL

Name: House Bill 5217 and 5218

Passed: December 30, 2020

Effective: December 31, 2022

Notables:

  • Athletes can enter endorsement deals, hire agents and attorneys, and accept gifts without risk of punishment.
  • No apparel contract that conflicts with the institutions.
  • Athletes must disclose the deal to the institution seven days prior to committing to the opportunity.
  • Restricts the use of the name and/or other intellectual property of the university in conjunction with the student-athletes use of their NIL.

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MISSISSIPPI NIL BILL

Name: Mississippi SB 2313: Mississippi Intercollegiate Athletics Compensation Rights Act

Passed: March 31, 2021

Effective: July 1, 2021

Notables:

  • Similar provisions to the laws of the six states that have already confirmed NIL rights.⠀⠀⠀⠀⠀⠀⠀⠀⠀
  • However, it allows a school to impose reasonable limitations on the dates and times a student-athlete may participate in any endorsement activities.⠀⠀⠀⠀⠀⠀⠀⠀⠀
  • Allows athletes to hire an agent but the athlete must give 7-day notice of their selection.⠀⠀⠀⠀⠀⠀⠀⠀⠀
  • Mandates disclosure of endorsement deals to their schools before the deals can become effective.⠀⠀⠀⠀⠀⠀⠀

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NEBRASKA NIL BILL

Name: LB962: Nebraska Fair Pay to Play Act

Passed: February 25, 2020

Effective: On or before July 1, 2023

Notables:

  • Prevents an athletics association from taking away an athlete’s eligibility for monetizing their NIL.
  • Prevents an athletics association from penalizing an institution that permits athletes to exercise their NIL rights.
  • Athletes must disclose a detailed account of all deals to the institution.
  • Athletes aren’t permitted to enter contracts that require advertising during team activities and/or conflict with their team’s contracts.
  • Each institution in Nebraska is able to choose a date to apply the act’s regulations.

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NEW JERSEY NIL BILL

Name: Bill NJ S971: New Jersey Fair Play Act

Passed: September 14, 2020

Effective: 2024-2025 Academic Year

Notables:

  • Athletes can hire an agent to represent their NIL interests and it prevents an athlete from being declared ineligible from monetizing their NIL.
  • Forbids deals with adult entertainment products and services, alcohol, gambling, tobacco, pharmaceuticals, controlled “dangerous” substances, and weapons. Violations could result in an athlete losing their scholarship.
  • Forbids deals that conflict with a team contract.
  • A team contract is permitted to utilize their athletes’ NIL for advertising and marketing without additional compensation to the athlete.
  • Athletes required to disclose deals to the institution.

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NEW MEXICO NIL BILL

Name: SB 94: Student Athlete Endorsement Act

Passed: April 7, 2021

Effective: July 1, 2021

Notables:

  • No state university can take away a scholarship or punish in any way a college athlete for “receiving food, shelter, medical expenses or insurance from a third party or for earning compensation from the use of the athlete’s name, image, likeness or athletic reputation.”
  • Athletes can not endorse any product while playing their sport (i.e. during games) or use official team gear for endorsements they set up on their own.
  • The athletes are allowed legal representation for potential endorsement deals, but that doesn’t mean they can hire agents who may represent them for playing professionally.

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