The bill amends the Arkansas Student-Athlete Publicity Rights Act and related laws concerning athletic program funding. Key changes include granting student-athletes the right to enter into contracts and receive compensation for the commercial use of their publicity rights. Institutions of higher education are allowed to facilitate opportunities for student-athletes to earn compensation, enter into licensing agreements, and are not liable for damages related to a student-athlete's ability to earn such compensation. Additionally, the bill clarifies that student-athletes will not be considered employees of their institutions based on their participation in athletics, and it establishes that income received from these arrangements will be exempt from state income tax.

Furthermore, the bill modifies funding limits for intercollegiate athletic programs at state-supported institutions, increasing the allowable budget from two percent to four percent of the previous fiscal year's unrestricted educational and general revenues. It also includes provisions to ensure that contracts for the commercial use of student-athletes' publicity rights do not conflict with institutional policies and that personal information related to these agreements remains confidential. The effective date for certain provisions related to tax exemptions is set for tax years beginning on or after January 1, 2025.

Statutes affected:
HB 1917: 4-75-1303, 4-75-1305, 4-75-1304, 4-75-1307(a), 4-75-1307, 4-75-1308(d), 4-75-1308
Act 839: 4-75-1303, 4-75-1305, 4-75-1304, 4-75-1307(a), 4-75-1307, 4-75-1308(d), 4-75-1308