Substitute House Bill No. 6446 seeks to amend existing laws concerning student athlete compensation by allowing them to receive earnings through endorsement contracts and revenue sharing agreements. The bill expands the definition of "student athlete" to include individuals who have agreed to attend an institution of higher education and participate in intercollegiate athletics. It introduces the term "revenue sharing agreement," which enables student athletes to share in their institution's revenue as compensation. Institutions are required to establish policies governing these agreements, including disclosure requirements and conflict of interest prohibitions. However, the bill clarifies that institutions are not mandated to compensate student athletes for the use of their name, image, or likeness (NIL) or to enter into revenue sharing agreements.

Additionally, the bill removes the prohibition on receiving NIL compensation as an inducement for attending or continuing at a higher education institution. It protects student athletes from punitive actions by institutions related to their endorsement contracts, provided they comply with established policies. The legislation also ensures that records of compensation will not be disclosed under the Freedom of Information Act without the athlete's consent and prohibits the use of state funds for compensating student athletes. Public institutions are required 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 maintaining their academic and athletic eligibility.

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