SB328 Alabama 2021 Session

Summary

Primary Sponsor

Kirk HatcherSenator

Democrat

Co-Sponsors

Linda Coleman-MadisonVivian Davis FiguresBobby D. SingletonRodger Smitherman

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

SB328 would let Alabama college student athletes earn compensation for their name, image, or likeness, while setting rules to protect students, require financial education, and create an HBCU working group to study improvements.

What This Bill Does

If passed, the bill would prevent schools and athletic groups from blocking athletes from earning name/image/likeness compensation or from participating in sports because of that compensation. It also bars revoking scholarships for earning compensation or seeking representation. It creates an opt-out option with an annuity fund (up to $10,000 per athlete per year) for those who declare they will not receive compensation and will not seek representation, with funds reverting to the school if the athlete later earns compensation or seeks representation. It requires financial literacy and life-skills workshops for athletes, and it establishes a historically Black colleges and universities working group to study compensation policies, reporting by early 2022, with most provisions taking effect January 1, 2023.

Who It Affects

• Current and prospective student athletes at Alabama postsecondary institutions: can earn compensation for use of their name, image, or likeness; must declare their intent each year and may opt-out (with an annuity).
• Postsecondary educational institutions and athletic programs: must allow compensation, fund opt-out annuities, conduct required financial literacy workshops, and disclose contracts or conflicts involving athletes.
• Athletic associations and conferences (including the NCAA): may not block compensation or participation, may not cap athlete compensation, and must not penalize schools for allowing compensation.
• Historically Black Colleges and Universities (HBCUs) in Alabama and their students: a dedicated working group will study compensation policies and make recommendations specific to HBCUs.

Key Provisions

• Prohibits postsecondary institutions and athletic bodies from preventing student athletes from earning compensation for use of name, image, or likeness or from seeking/providing legal representation related to participation.
• Prohibits revoking a student’s scholarship or impacting eligibility solely because the student earns compensation or seeks/obtains representation; prohibits team contracts from blocking the use of name/image/likeness for non-official activities if the contract is entered after Jan 1, 2023.
• Allows a student athlete and their team to have contracts that conflict with the athlete’s team contract only if no conflict exists, and requires disclosure of any conflicting provisions to the athlete and their legal representation.
• If a student declares they will not receive compensation or seek representation, the institution must create an annuity fund for that student’s use, depositing up to $10,000 per athlete within 45 days after the start of each academic year; if the athlete later earns compensation or seeks representation, the annuity fund reverts to the institution; upon graduation, the annuity is turned over to the student.
• Requires each institution to conduct a minimum five-hour financial literacy and life skills workshop at the beginning of the student athlete’s first and third years, covering topics like financial aid, debt management, budgeting, time management, and academic resources (no marketing of financial products).
• Prior to participation and at the start of each academic year, each student athlete must declare whether they will receive compensation or seek/retain representation; declarations may be renewed or amended within 30 days; contracts must be disclosed to institutional officials.
• Creates the Historically Black Colleges and Universities Name, Image, and Likeness Working Group to study compensation at HBCUs, with members from specified institutions and legislators, first meeting by July 1, 2021 and a report due by January 1, 2022; the remaining provisions become operative January 1, 2023.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Student Athletes