This bill would shield colleges, universities, athletic conferences, and national sports organizations from legal liability for implementing rules that limit how much student athletes can be paid. The legislation defines "compensation" broadly to include payments for use of a student athlete's name, image, and likeness, while exempting traditional scholarships covering tuition, room and board, health insurance, and career services. It allows schools to provide an additional academic stipend of up to $5,980 per year to scholarship athletes without facing legal consequences. The bill would protect institutions from lawsuits even if they enforce rules that prevent athletes from receiving payment beyond these allowable amounts. In essence, the legislation attempts to create legal immunity for colleges and athletic associations that adopt rules restricting athlete compensation during a time of significant debate over athlete compensation rights.
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