Substitute House Bill No. 6446 seeks to regulate student athlete compensation at institutions of higher education by allowing them to earn money through endorsement contracts and revenue sharing agreements. The bill introduces key definitions such as "student athlete," "compensation," "endorsement contract," and "revenue sharing agreement." It mandates that institutions create policies governing these contracts, which must include provisions for disclosure, conflict of interest, and prohibitions on conflicting endorsements. Importantly, the bill clarifies that institutions are not required to compensate student athletes for the use of their name, image, or likeness, nor are they obligated to enter into revenue sharing agreements. It also ensures that student athletes are not classified as employees based solely on their endorsement activities.

The legislation modifies existing laws by removing the prohibition on receiving Name, Image, and Likeness (NIL) compensation as an inducement for attending or continuing at a higher education institution. It expands eligibility for compensation to include student athletes who have committed to attend a higher education institution, rather than those who are currently enrolled. The bill prohibits institutions from restricting a student athlete's eligibility based on endorsement contracts and ensures that public institutions cannot disclose compensation records without the athlete's consent. Additionally, it specifies that state funds cannot be used for these compensation agreements and requires public institutions to report annually on the total revenue used for student athlete compensation and the number of athletes receiving such compensation. Overall, the bill aims to create a more equitable framework for student athlete compensation while ensuring compliance with institutional policies.

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