Maryland NIL Law for NCAA

On May 18, 2021, Maryland passed a Name, Image, Likeness (NIL) law for their colleges and institutions. Maryland will see the legislation go live, effective July 1, 2023. Governor Larry Hogan signed Senate Bill 439 allowing intercollegiate student athletes the ability to earn compensation for the use of their NIL. Senate Bill 439 was the broader legislative act that paved the way for NIL rights in Maryland. Md. Code Ann., Educ. § 15-131 is the specific legal language outlining those NIL rights.

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Bill
Status

Signed into Law

Effective
Date

07/01/2023

NCAA
Institutions

Estimated
NCAA Athletes

6,000

High School
NIL Legislation

Yes

Last Updated 08/22/22

Maryland NIL Law

Senate Bill 439

AN ACT concerning

Public Institutions of Higher Education – Student Athletes (Jordan McNair Safe and Fair Play Act)

FOR the purpose of declaring certain findings of the General Assembly; requiring certain athletic programs to adopt certain guidelines and protocols; requiring the University System of Maryland Intercollegiate Athletics Workgroup, Morgan State University, and St. Mary’s College of Maryland each to submit a report on certain policy changes to the General Assembly on or before a certain date each year; prohibiting a public institution of higher education from taking certain actions related to student athletes; prohibiting certain groups or organizations with authority over intercollegiate athletics from preventing a certain student athlete from participating in intercollegiate athletics under certain circumstances; prohibiting a public institution of higher education and certain groups or organizations with authority over intercollegiate athletics from providing compensation to a student athlete under certain circumstances or preventing a student athlete from obtaining representation; prohibiting an athletic program contract at a public institution of higher education from preventing a student athlete from taking certain actions; authorizing an athletic program contract to prohibit a student athlete from engaging in certain advertising; prohibiting a student athlete from entering into certain contracts; requiring a certain student athlete to disclose certain information to a public institution of higher education; prohibiting a student athlete from making commercial use of certain property owned or controlled by a public institution of higher education; providing for a delayed effective date for certain provisions of this Act; defining certain terms; and generally relating to student athletes at public institutions of higher education.

BY adding to

Article – Education

Section 15–128 and 15–129

Annotated Code of Maryland

(2018 Replacement Volume and 2020 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the laws of Maryland read as follows:

Article – Education

15–128

(A) IN THIS SECTION, “ATHLETIC PROGRAM” MEANS ANY INTERCOLLEGIATE ATHLETIC PROGRAM AT A PUBLIC INSTITUTION OF HIGHER EDUCATION IN THE STATE.

(B) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:

(1) MEETING THE EDUCATIONAL NEEDS OF STUDENT ATHLETES SHOULD BE THE PRIORITY FOR INTERCOLLEGIATE ATHLETIC PROGRAMS IN THE STATE; AND

(2) PROVIDING ADEQUATE HEALTH AND SAFETY PROTECTIONS FOR STUDENT ATHLETES CAN HELP PREVENT SERIOUS INJURY AND DEATH

(1) GUIDELINES TO PREVENT, ASSESS, AND TREAT SERIOUS SPORTS–RELATED CONDITIONS, INCLUDING:

(I) BRAIN INJURY;

(II) HEAT ILLNESS; AND

(III) RHABDOMYOLYSIS;

(2) EXERCISE AND SUPERVISION GUIDELINES FOR ANY STUDENT ATHLETE WHO PARTICIPATES IN AN ATHLETIC PROGRAM AND IS IDENTIFIED WITH POTENTIAL LIFE–THREATENING HEALTH CONDITIONS, INCLUDING:

(I) SICKLE CELL TRAIT; AND

(II) ASTHMA; AND

(3) RETURN–TO–PLAY PROTOCOLS FOR ATHLETES WHO EXPERIENCE INJURY OR ILLNESS DURING PRACTICE OR PLAY.

(D) (1) ON OR BEFORE OCTOBER 1, 2021, AND EACH OCTOBER 1 THEREAFTER, THE UNIVERSITY SYSTEM OF MARYLAND INTERCOLLEGIATE ATHLETICS WORKGROUP SHALL SUBMIT A REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON STUDENT ATHLETES IN THE UNIVERSITY SYSTEM OF MARYLAND, INCLUDING ANY STUDENT ATHLETE POLICY CHANGES AT EACH INSTITUTION RELATED TO THE HEALTH AND SAFETY OF STUDENT ATHLETES

(2) ON OR BEFORE OCTOBER 1, 2021, AND EACH OCTOBER 1 THEREAFTER, MORGAN STATE UNIVERSITY AND ST. MARY’S COLLEGE OF MARYLAND SHALL SUBMIT A REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON STUDENT ATHLETES AT EACH INSTITUTION, INCLUDING ANY STUDENT ATHLETE POLICY CHANGES AT EACH INSTITUTION RELATED TO THE HEALTH AND SAFETY OF STUDENT ATHLETES

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read as follows:

Article – Education

15–129

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED.

(2) “PUBLIC INSTITUTION OF HIGHER EDUCATION” MEANS:

(I) THE CONSTITUENT INSTITUTIONS OF THE UNIVERSITY SYSTEM OF MARYLAND; AND

(II) MORGAN STATE UNIVERSITY.

(3) (I) “STUDENT ATHLETE” MEANS A COLLEGE STUDENT WHO PARTICIPATES IN AN INTERCOLLEGIATE ATHLETIC PROGRAM AT A PUBLIC INSTITUTION OF HIGHER EDUCATION.

(II) “STUDENT ATHLETE” DOES NOT INCLUDE A STUDENT WHO PARTICIPATES SOLELY IN INTRAMURAL OR CLUB ATHLETICS.

(B) (1) A PUBLIC INSTITUTION OF HIGHER EDUCATION MAY NOT:

(I) UPHOLD ANY RULE, REQUIREMENT, STANDARD, OR OTHER LIMITATION THAT PREVENTS A STUDENT ATHLETE FROM EARNING COMPENSATION FROM THE USE OF THE STUDENT ATHLETE’S NAME, IMAGE, OR LIKENESS; OR

(II) REDUCE, RESCIND, OR OTHERWISE AFFECT A STUDENT ATHLETE’S SCHOLARSHIP BECAUSE THE STUDENT ATHLETE EARNS COMPENSATION FROM THE USE OF THE STUDENT ATHLETE’S NAME, IMAGE, OR LIKENESS.

(2) AN ATHLETIC ASSOCIATION, A CONFERENCE, OR ANY OTHER GROUP OR ORGANIZATION WITH AUTHORITY OVER INTERCOLLEGIATE ATHLETICS, INCLUDING THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION, MAY NOT PREVENT A STUDENT ATHLETE FROM EARNING COMPENSATION AS A RESULT OF THE USE OF THE STUDENT ATHLETE’S NAME, IMAGE, OR LIKENESS.

(3) AN ATHLETIC ASSOCIATION, A CONFERENCE, OR ANY OTHER GROUP OR ORGANIZATION WITH AUTHORITY OVER INTERCOLLEGIATE ATHLETICS, INCLUDING THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION, MAY NOT PREVENT A PUBLIC INSTITUTION OF HIGHER EDUCATION FROM PARTICIPATING IN INTERCOLLEGIATE ATHLETICS AS A RESULT OF THE COMPENSATION OF A STUDENT ATHLETE FOR THE USE OF THE STUDENT ATHLETE’S NAME, IMAGE, OR LIKENESS

(C) A PUBLIC INSTITUTION OF HIGHER EDUCATION, AN ATHLETIC ASSOCIATION, A CONFERENCE, OR ANY OTHER GROUP OR ORGANIZATION WITH AUTHORITY OVER INTERCOLLEGIATE ATHLETICS MAY NOT:

(1) PROVIDE A PROSPECTIVE STUDENT ATHLETE WITH COMPENSATION IN RELATION TO THE STUDENT ATHLETE’S NAME, IMAGE, OR LIKENESS; OR

(2) PREVENT A STUDENT ATHLETE FROM OBTAINING PROFESSIONAL REPRESENTATION IN RELATION TO CONTRACTS OR LEGAL MATTERS

(D) (1) AN ATHLETIC PROGRAM CONTRACT OF A PUBLIC INSTITUTION OF HIGHER EDUCATION MAY NOT PREVENT A STUDENT ATHLETE FROM USING THE STUDENT ATHLETE’S NAME, IMAGE, OR LIKENESS FOR A COMMERCIAL PURPOSE WHEN THE STUDENT ATHLETE IS NOT ENGAGED IN OFFICIAL TEAM ACTIVITIES.

(2) AN ATHLETIC PROGRAM CONTRACT MAY PROHIBIT A STUDENT ATHLETE FROM ENGAGING IN IN–PERSON ADVERTISING FOR A THIRD–PARTY SPONSOR DURING OFFICIAL AND MANDATORY TEAM ACTIVITIES WITHOUT PRIOR APPROVAL FROM THE INSTITUTION’S ATHLETIC DEPARTMENT.

(E) (1) A STUDENT ATHLETE MAY NOT ENTER INTO A CONTRACT PROVIDING COMPENSATION TO THE STUDENT ATHLETE FOR USE OF THE STUDENT ATHLETE’S NAME, IMAGE, OR LIKENESS IF A PROVISION OF THE CONTRACT IS IN CONFLICT WITH A PROVISION OF THE STUDENT ATHLETE’S ATHLETIC PROGRAM CONTRACT

(2) A STUDENT ATHLETE WHO ENTERS INTO A CONTRACT PROVIDING COMPENSATION TO THE STUDENT ATHLETE FOR USE OF THE STUDENT ATHLETE’S NAME, IMAGE, OR LIKENESS SHALL DISCLOSE THE CONTRACT TO AN OFFICIAL OF THE PUBLIC INSTITUTION OF HIGHER EDUCATION, DESIGNATED BY THE PUBLIC INSTITUTION OF HIGHER EDUCATION.

(F) NOTHING IN THIS SECTION MAY BE CONSTRUED TO GRANT A STUDENT ATHLETE A RIGHT TO MAKE COMMERCIAL USE OF NAMES, TRADEMARKS, LOGOS, OR OTHER INTELLECTUAL PROPERTY OWNED OR CONTROLLED BY A PUBLIC INSTITUTION OF HIGHER EDUCATION.

SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take effect July 1, 2023

SECTION 4. AND BE IT FURTHER ENACTED, That, except as provided in Section 3 of this Act, this Act shall take effect July 1, 2021.

Approved by the Governor, May 18, 2021.

Tax Implications

FAQ’s

Maryland NIL FAQ’s

What is the Maryland NIL Law?

The Maryland NIL Law states that athletes cannot enter into NIL agreements that conflict with their athletic program contracts. Any NIL agreement must be disclosed to a designated official at the school. Athletes do not have a right to use school intellectual property in NIL activities without school permission. Schools may prohibit athletes from engaging in NIL activities during official and mandatory team activities. Athletes may hire agents and other representatives to assist with NIL activities.

When does Maryland NIL Compliance Start?

Maryland NIL started on July 1, 2021, per the NCAA Interim Policies and with the passage of Senate Bill 439, Maryland State NIL laws will take effect on July 1, 2023.

How does Maryland NIL affect NCAA Student-Athletes?

Maryland 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 Maryland Name, Image, and Likeness Best Practices?

Both athletes and administrators in the State of Maryland should start by making sure they have a proper understanding of the rules and regulations set-forth by Senate Bill 439. A working-knowledge of the ‘Dos and Don’ts’ for Maryland 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 Maryland Schools

What schools are affected by Maryland NIL?

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

Coppin State University
Loyola University Maryland
Mount St. Mary’s University
University of Maryland Eastern Shore
University of Maryland, Baltimore County
U.S. Navel Academy
University of Maryland, College Park
Morgan State University
Towson University

Bowie State University
Frostburg State University

Goucher College
Hood College
Johns Hopkins University
McDaniel College
Notre Dame of Maryland uNIversity
Salisbury University
St. Mary’s College of Maryland
Stevenson Universty
Washington College

NAIA

Washington Adventist University

NJCAA

Allegany College of Maryland
Anne Arundel Community College
Baltimore City Community College
Carroll Community College
CCBC-Catonsville
CCBC-Dundalk
CCBC-Essex
Cecil College
Chesapeake College
College of Southern Maryland
Frederick Community College
Garrett College
Hagerstown Community College
Harford Community College
Howard Community College
Montgomery College
Prince George’s Community College

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Maryland NIL Law for NCAA

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What is the Maryland NIL Law?

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How does Maryland NIL affect NCAA Student-Athletes?

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

NCAA Maryland Schools

What schools are affected by Maryland NIL?

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