Utah NIL Law for NCAA

On March 1st, 2024, Utah passed a Name, Image, Likeness (NIL) law for their colleges and institutions. Utah will see the legislation go live, effective May 1, 2024. Governor Spencer Cox signed House Bill 202 allowing intercollegiate student athletes the ability to earn compensation for the use of their NIL.

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Bill
Status

Signed into Law

Effective
Date

05/01/2024

NCAA
Institutions

Estimated
NCAA Athletes

2,400

High School
NIL Legislation

Yes

Last Updated 08/22/22

Utah NIL Law

House Bill 202:

Be it enacted by the Legislature of the state of Utah:

Part 6. Use of Student Athlete’s Name, Image, and Likeness in Collegiate Athletics

Section 1, Section 53B-16-601 is enacted to read:

53B-16-601. Definitions.

As used in this part:

(1) “Institution” means:

(a) an institution of higher education described in Section 53B-1-102; or

(b) a private, nonprofit institution of higher education.

(2) “Intercollegiate athletics program” means an institution-sponsored athletic program or sporting activity in which a student athlete represents the student athlete’s institution in competition against another institution.

(3) “Prohibited endorsement provision” means a provision that requires or permits the use of a student athlete’s name, image, or likeness to promote:

(a) a tobacco product or e-cigarettes, as those terms are defined in Section 76-10-101, including vaping;

(b) an alcoholic product, as that term is defined in Section 32B-1-102;

(d) gambling or betting;

(e) a sexually oriented business, as that term is defined in Section 17-50-331; or

(f) a firearm that the student athlete cannot legally purchase.

(4) (a) “Student athlete” means an individual who:

(i) is enrolled in an institution; and

(ii) participates as an athlete for the institution in an intercollegiate athletics program.

(b) “Student athlete” includes an agent or other representative of a student athlete.

(5) “Student athlete agreement” means a proposed or executed contract:

(a) between a student athlete and a third party that is not an institution; and

(b) in which the student athlete and third party agree that the student athlete’s name, image, or likeness may be used to promote a business, product, service, or individual in exchange for the student athlete receiving financial compensation or other benefits.

Section 2, Section 53B-16-602 is enacted to read:

53B-16-602. Use of a student athlete’s name, image, or likeness in intercollegiate athletics programs — Contracts — Exceptions — Prohibitions.

(1) A student athlete may not enter into a student athlete agreement that contains a prohibited endorsement provision.

(2) Before a student athlete or prospective student athlete enters into a student athlete agreement that exceeds $600 in value, the student athlete or proposed student athlete shall provide the student athlete agreement to the student athlete’s or proposed student athlete’s institution.

(3) An institution that receives a student athlete agreement under Subsection (2) shall provide the student athlete or prospective student athlete with a written acknowledgment regarding whether the student athlete agreement conflicts with the institution’s policies or the provisions in this part.
(4) A student athlete agreement or any communication, or other material related to a student athlete agreement, including those created before May 1, 2024, is not subject to Title 63G, Chapter 2, Government Records Access Management Act.

(5) An institution may not use funds appropriated by the Legislature for any purpose related to a student athlete’s or prospective student athlete’s student athlete agreement that the student athlete or prospective student athlete submits to the institution.

Section 3. Effective date.

This bill takes effect on May 1, 2024.

Tax Implications

FAQ’s

Utah NIL FAQ’s

What is the Utah NIL Law?

Utah’s House Bill 202 aims to regulate Name, Image, and Likeness (NIL) deals for college athletes within the state. The bill mandates that student-athletes disclose any NIL agreements exceeding $600 to their institution, which must then verify that the deal doesn’t conflict with school or NCAA policies. Additionally, it prohibits institutions from using public funds for any purpose related to student-athlete NIL agreements and restricts athletes from endorsing prohibited products like alcohol, tobacco, and marijuana. The legislation seeks to provide a framework for NIL activities while protecting the integrity of the collegiate athletic system.

When does Utah NIL Compliance Start?

Utah NIL started on July 1, 2021, per the NCAA Interim Policies and with the passage of House Bill 202 Utah State NIL laws will take effect on May 1, 2024.

How does Utah NIL affect NCAA Student-Athletes?

Utah NCAA Student-Athletes will be able to earn compensation for the use of her or his name, image, or likeness (NIL) through a multitude of different opportunities. Student-Athletes can now make money for things such as endorsements, sponsorships, appearances, autographs, memorabilia, podcasts, camps, clinics, private lessons, crowdfunding, and many more!

What are Utah Name, Image, and Likeness Best Practices?

Both athletes and administrators in the State of Utah should start by making sure they have a proper understanding of the rules and regulations set-forth by NCAA Interim Policies. A working-knowledge of the ‘Dos and Don’ts’ for Utah NIL will allow all parties to safely and successfully navigate the new landscape. The next most important aspect would be the compliance component of NIL. Not only do students need to make sure they are entering agreements that are compliant with the passed state regulations, but they need to make sure they are transparent with their school to avoid any institutional conflicts.

Colleges / Institutions

NCAA Utah Schools

What schools are affected by Utah NIL?

All institutions with NCAA athletic programs are affected by NIL. In the state of Utah, the following schools will be affected:

Brigham Young University
Dixie State University
Southern Utah University
University of Utah
Utah State University
Utah Valley University
Weber State University

Westminster College

NJCAA

USU-College of Eastern Utah
Salt Lake Community College
Snow College

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Utah NIL Law for NCAA

Utah NIL Law

Utah NIL Tax Implications

Utah NIL FAQ’s

What is the Utah NIL Law?

When does Utah NIL Compliance Start?

How does Utah NIL affect NCAA Student-Athletes?

What are Utah Name, Image, and Likeness Best Practices?

NCAA Utah Schools

What schools are affected by Utah NIL?

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