This bill establishes protections for student-athletes and certain four-year institutions of higher education regarding compensation for the use of their name, image, or likeness (NIL). It prohibits institutions from preventing student-athletes from earning such compensation and allows them to enter into contracts with related entities for direct compensation. However, it restricts student-athletes under 21 from earning NIL compensation in connection with alcohol, tobacco, or cannabis products. Additionally, the bill ensures that student-athletes can obtain professional representation for contracts and legal matters, requiring that such representatives act in a fiduciary capacity.

The bill also outlines the limitations on athletic associations and organizations, such as the NCAA, preventing them from penalizing institutions or student-athletes for engaging in activities permitted by this legislation. It mandates that institutions provide educational materials on NIL to student-athletes annually and allows institutions subjected to adverse actions for compliance with the bill to seek legal remedies. Furthermore, the bill repeals the New Jersey Fair Play Act, aiming to strengthen the state's NIL laws in light of recent national developments.