House Bill 340 Alabama 2026 Session

Summary

Primary Sponsor

Jeremy GrayRepresentative

Democrat

Session

2026 Regular Session

Title

High School athletics, right to compensation for name, image, and likeness

Summary

HB340 would let Alabama high school student athletes receive compensation for the use of their name, image, or likeness under specific rules.

What This Bill Does

If passed, the bill would allow student athletes to be paid for their name, image, or likeness. Payments could not be based on performance or used to influence school enrollment, and they could not come from the school or a school agent. There are strict limits on what can be used in relation to the compensation (no school logos, apparel, facilities, or other school-associated items), and both the student and a parent or guardian must receive guidance about potential college aid and tax implications, plus provide seven days notice to the school before entering any contract. The act defines key terms and sets an effective date of October 1, 2026.

Who It Affects

• Student athletes (K-12) and their families, who could receive compensation for NIL and must follow defined rules and obtain guidance.
• Schools and school staff (principals and athletic directors), who must oversee compliance, enforce restrictions, and receive advance notice of any NIL contracts.

Key Provisions

• Defines key terms: athletic activity, compensation, and student athlete.
• Authorizes student athletes to receive monetary or in-kind compensation for the use of their name, image, or likeness.
• Compensation cannot be contingent on athletic performance, cannot be used as a recruitment or enrollment incentive, and cannot be provided by a school or a school agent.
• Restrictions on use: no school marks, logos, mascots, or acronyms; no school apparel/equipment; no use of school facilities; no association with activities that violate school policies.
• Before receiving compensation, the student athlete and a parent/guardian must receive professional guidance about potential impacts on collegiate financial aid and tax implications.
• A student athlete may not receive compensation unless the student athlete or guardian notifies the principal or athletic director at least seven days before entering into any NIL contract.
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Education