Section 1 (135A.1915) states that it is the intent of the Legislature to monitor the National Collegiate Athletic Association (NCAA) working group created in May 2019 to examine issues related to the use of a student’s name, image, or likeness (NIL) and revisit this issue to implement findings and recommendations of the NCAA working group.  It is also the intent of the Legislature to continue to develop policies to ensure appropriate protections are in place to avoid exploitation of student athletes, colleges, and universities.

Section 2 (135A.1916, subdivision 1) defines the term “postsecondary educational institution.”

Subdivision 2 prohibits a postsecondary institution and an athletic association, conference, or other group from preventing a student who is participating in athletics from receiving compensation as a result of the use of the student’s NIL. Prohibits an educational institution from providing a prospective student with compensation in relation to the student’s NIL, and prohibits an athletic association from preventing a postsecondary institution from participating in intercollegiate athletics as a result of the compensation of a student athlete for the use of the student’s NIL.

Subdivision 3 requires professional representation obtained by student athletes be from a person licensed by the state and requires the athlete agents to comply with federal Sports Agent law in their relationships with student athletes.

Subdivision 4 clarifies that a scholarship is not compensation for purposes of this section, and a scholarship cannot be revoked as a result of earning compensation or obtaining legal representation.

Subdivision 5 prohibits a student athlete from entering into a contract providing compensation for the student’s NIL if it conflicts with the athlete’s team contract. An institution asserting a conflict shall disclose to the athlete or the legal representative the relevant contractual provisions that are in conflict. 

Subdivision 6 prohibits a team contract from preventing a student athlete from using the athlete’s NIL for a commercial purpose when the athlete is not engaged in official team activities.

Section 2 becomes effective January 1, 2024, if the NCAA fails to modify the bylaws related to student athlete compensation. If the bylaws are modified, this section is not effective until the Legislature has reviewed and assessed the new bylaws, to determine if there are conflicts or inconsistencies with section 135A.1916  (section 2). The Legislature may repeal, modify, or update section 135A.1916, and shall determine the date on which the legislation is effective.