HB150 Alabama 2021 Session

Summary

Primary Sponsor

Kirk HatcherSenator

Democrat

Session

Regular Session 2021

Title

Student athletes, compensation for name, image, and likeness, working group for Historically Black Colleges and Universities (HBCU's) , created

Summary

HB150 would let Alabama student athletes earn compensation from the use of their name, image, or likeness, require financial literacy training, and create an HBCU NIL working group with an annuity option for students who opt out.

What This Bill Does

It prevents schools and athletic groups from blocking NIL compensation or representation for student athletes and from revoking scholarships for earning NIL income or seeking representation. It also restricts team contracts that would bar NIL use or conflict with NIL contracts, with some provisions applying to contracts after January 1, 2023. It requires schools to fund an annuity for students who declare they will not receive NIL compensation or seek representation, deposit up to $10,000 per student per year, and revert funds if the student later earns compensation, with graduation transferring the annuity to the student. Additionally, it requires financial literacy and life skills workshops for student athletes in the first and third years and creates an HBCU NIL Working Group to study and recommend policies, with specified timelines for convening and reporting; the rest of the act would take effect January 1, 2023.

Who It Affects

• Student athletes at Alabama postsecondary institutions: can earn compensation from NIL, must disclose representation, and may elect to opt out of NIL compensation and have an annuity funded on their behalf.
• Postsecondary educational institutions and athletic organizations: must not restrict NIL compensation, must implement annuity funding for opt-out students, conduct financial literacy workshops, and participate in the HBCU NIL Working Group's activities and reporting.

Key Provisions

• Prohibits institutions and athletic groups from preventing NIL compensation or representation and from revoking a student’s scholarship for earning compensation or seeking representation.
• Prohibits teams from enforcing contracts that block NIL use when not in official activities and from conflicting with a student’s NIL contracts; restrictions on team contracts apply to contracts entered, modified, or renewed on or after January 1, 2023.
• Requires institutions to fund an annuity for each student athlete who declares they will not receive NIL compensation or seek representation, depositing up to $10,000 per student within 45 days after the start of each academic year; annuity reverts to the institution if the student later earns compensation or seeks representation; upon graduation, control of the annuity goes to the student.
• Requires at least five hours of financial literacy and life skills training at the beginning of each student athlete’s first and third academic years, covering topics like financial aid, debt management, and budgeting; prohibits marketing of financial products in the workshop.
• Creates a Historically Black Colleges and Universities Working Group to study NIL compensation for HBCU students, with specific membership and reporting duties, convening by July 1, 2021, and a report by January 1, 2022; the rest of the act becomes effective January 1, 2023.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Student Athletes