Bill

Bill > A5729


NJ A5729

Establishes protections for student-athletes and certain institutions of higher education concerning name, image, or likeness compensation; repeals "New Jersey Fair Play Act."


summary

Introduced
05/22/2025
In Committee
06/12/2025
Crossed Over
Passed
Dead

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill establishes protections for student-athletes and certain institutions of higher education concerning name, image, or likeness compensation and repeals the "New Jersey Fair Play Act." First, this bill provides that a four-year institution of higher education is not to prohibit or prevent a student-athlete who participates in intercollegiate athletics from earning compensation as a result of the use of the student-athlete's name, image, or likeness. The bill permits a four-year institution of higher education or any related entity of the institution to enter into a contract with a student-athlete to directly compensate the student-athlete for use of the student-athlete's name, image, or likeness. However, the bill prohibits a student-athlete participating in intercollegiate athletics who is under 21 years of age from earning compensation as a result of the use of the student-athlete's name, image, or likeness if it is in connection with any person, company, or organization related to or associated with alcohol products; tobacco and electronic smoking products and devices; and cannabis products. The bill provides that a four-year institution of higher education is not to prevent a student-athlete participating in intercollegiate athletics from obtaining professional representation in relation to contracts or legal matters, including representation provided by athlete agents or legal representation provided by attorneys. The bill clarifies that licensed attorneys and athlete-agents are required to act in a fiduciary capacity when providing representation to a student-athlete. The bill clarifies that any contract a student-athlete enters into that provides compensation to the student-athlete for use of the student-athlete's name, image, or likeness is not subject to public disclosure pursuant to the State's open public records act. The bill also regulates certain athletic associations, conferences, or other groups or organizations with authority over intercollegiate athletics, including the National Collegiate Athletic Association. Under the bill, these organizations cannot: (1) prohibit or prevent a four-year institution of higher education from becoming a member of the organization or from participating in intercollegiate athletics as a consequence of any student-athlete earning compensation for the use of the student-athlete's name, image, or likeness or obtaining representation by an athlete agent or attorney in connection with issues related to name, image, or likeness; (2) take any other adverse action against a four-year institution of higher education or any other related entity of an institution, for activity permitted by the bill; (3) penalize a four-year institution of higher education or a student-athlete, or prevent them from participating in intercollegiate athletics, due to a violation of the organization's rules or regulations concerning name, image, or likeness; (4) prevent a four-year institution of higher education from compensating a student-athlete for the use of the student-athlete's name, image, or likeness; or (5) prevent a four-year institution of higher education or any related entity of an institution from identifying, creating, negotiating, facilitating, supporting, engaging with, assisting with, or otherwise enabling a name, image, or likeness opportunity for a student-athlete. The bill provides that a four-year institution of higher education or any related entity of an institution, that is subjected to any actual or threatened complaint, investigation, penalty, or other adverse action of any organization with authority over intercollegiate athletics for engaging in activities permitted pursuant to the bill, may bring an action to recover actual damages and reasonable attorney fees and may seek injunctive relief and any other remedy available at law or in equity. In each academic year, a four-year institution of higher education that offers academic scholarships is required to make available to all student-athletes participating in intercollegiate athletics at the institution name, image, or likeness programing or educational materials. The programing and educational materials are to provide students with information including, financial literacy; brand management; life skills; and any other programming on skills necessary for success as a student-athlete. NCAA Division I and Division II institutions are permitted to offer athletic scholarships. The bill applies to four-year institutions of higher education that offer athletic scholarships, including Division I and Division II institutions. Finally, the bill repeals the "New Jersey Fair Play Act," which was enacted in 2020 and is first applicable in the academic year beginning in September of 2025. It is the sponsor's intent to strengthen New Jersey's name, image, or likeness law to reflect changes made at the national level since its original enactment in 2020.

AI Summary

This bill establishes comprehensive protections for student-athletes and higher education institutions regarding name, image, and likeness (NIL) compensation. The legislation prevents four-year institutions from prohibiting student-athletes from earning money through their NIL, allows institutions to directly compensate athletes for NIL usage, and permits student-athletes to obtain professional representation from lawyers and athlete agents. However, the bill includes a restriction preventing students under 21 from earning NIL compensation related to alcohol, tobacco, electronic smoking, or cannabis products. The bill also protects institutions from punitive actions by athletic associations like the NCAA for supporting student-athlete NIL opportunities, and requires colleges to provide educational programming on financial literacy, brand management, and life skills for student-athletes. Additionally, the bill mandates that attorneys and athlete agents act in a fiduciary capacity when representing student-athletes and ensures that NIL contracts are not subject to public disclosure under open records laws. The legislation applies specifically to four-year institutions offering athletic scholarships and repeals the previous "New Jersey Fair Play Act" to update the state's NIL regulations to reflect recent national changes.

Committee Categories

Education

Sponsors (1)

Last Action

Substituted by S4439 (on 06/30/2025)

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