The bill amends the existing law that prohibits postsecondary educational institutions and certain athletic organizations in Michigan from preventing college athletes from receiving compensation for the use of their name, image, or likeness (NIL) rights. Key changes include the clarification of terms, such as replacing "his or her" with "the college athlete's" to promote gender neutrality. The bill also introduces new provisions that ensure college athletes can earn compensation without affecting their scholarship eligibility and prohibits institutions from penalizing students for engaging in NIL activities. Additionally, it mandates that any NIL agreement providing at least $5,000 in compensation must be documented in writing and outlines the necessary information that must be included in such agreements.

Furthermore, the bill establishes the right for college athletes, their agents, and institutions to take legal action against any adverse actions from athletic associations related to NIL activities. It also clarifies that institutions are not required to facilitate opportunities for athletes to earn compensation and that they can maintain academic and conduct standards. The bill repeals certain sections of the previous law, streamlining the regulations surrounding NIL rights and enhancing protections for college athletes in Michigan.

Statutes affected:
House Introduced Bill: 390.1731