Substitute House Bill No. 6446 seeks to amend existing laws concerning student athlete compensation by allowing them to earn money through endorsement contracts and revenue sharing agreements as soon as they agree to attend a higher education institution. The bill introduces the term "revenue sharing agreement," which enables student athletes to share in their institution's revenue, and it clarifies that institutions must establish policies regarding endorsements and employment activities. Notably, the bill removes the prohibition on receiving compensation for Name, Image, and Likeness (NIL) as an inducement for attending or continuing at a higher education institution, while also ensuring that institutions are not required to compensate student athletes for their NIL or enter into revenue sharing agreements.

Additionally, the bill mandates that public institutions report annually on the total revenue used for compensating student athletes and the number of athletes receiving such compensation, while explicitly prohibiting the use of state funds for these agreements. It expands the current restrictions on disclosing student athlete compensation records to include revenue sharing agreements and protects student athletes from adverse actions by athletic associations based on their participation in these agreements. The legislation aims to create a framework that allows student athletes to benefit financially from their involvement in sports while adhering to institutional policies and legal standards.

Statutes affected:
Raised Bill:
HED Joint Favorable Substitute:
File No. 6: