Minnesota NIL Law for NCAA

On February 13, 2020, Minnesota introduced a Name, Image, Likeness (NIL) law for their colleges and institutions. Although the bill has not successfully made its way through the House & the Senate, nor has it received Governor approval, it has a tentative effective date of January 1, 2023. If passed, House Bill 3329 will allow 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

07/23/2021

NCAA
Institutions

Estimated
NCAA Athletes

1,200

High School
NIL Legislation

Last Updated 08/12/22

Minnesota NIL Law

This bill was introduced to Minnesota’s Senate in late-January 2021, and is still in the process of being turned into a law. The following components have been proposed by the Bill:

Applicability.

This section applies to:
1. institutions governed by the Board of Trustees of the Minnesota State Colleges and Universities;
2. private postsecondary institutions that offer in-person courses on a campus located in Minnesota; and
3. institutions governed by the Board of Regents of the University of Minnesota.
This section applies only to contracts entered into, modified, or renewed on or after the enactment of this section.

Compensation.

A postsecondary educational institution must not uphold any rule, requirement, standard, or other limitation that prevents a student of that institution from fully participating in intercollegiate athletics and earning compensation as a result of the use of the student’s name, image, or likeness rights or the student’s athletic reputation. Earning compensation from the use of a student’s name, image, or likeness rights or the student’s athletic reputation must not affect a student’s scholarship eligibility or renewal.
An athletic association, conference, or other group or organization with authority over intercollegiate athletics, including but not limited to the National Collegiate Athletic Association, must not prevent a student of a postsecondary educational institution from fully participating in intercollegiate athletics without penalty and earning compensation as a result of the student’s use of his or her name, image, or likeness rights or his or her athletic reputation.
An athletic association, conference, or other group or organization with authority over intercollegiate athletics, including but not limited to the National Collegiate Athletic Association, must not prevent a postsecondary educational institution from fully participating in intercollegiate athletics without penalty as a result of a student’s use of his or her name, image, or likeness rights or his or her athletic reputation.
For purposes of this section, an athletics grant-in-aid or a stipend scholarship from a postsecondary educational institution in which a student is enrolled is not compensation for use of a student’s name, image, and likeness rights or a student’s athletic reputation; and an athletics grant-in-aid or stipend scholarship must not be revoked or reduced as a result of a student earning compensation pursuant to this section.

Representation.

A postsecondary educational institution, athletic association, conference, or other group or organization with authority over intercollegiate athletics must not interfere with or prevent a student from fully participating in intercollegiate athletics for obtaining professional representation in relation to contracts or legal matters, including but not limited to representation provided by athlete agents, financial advisors, or legal representation provided by attorneys.
An athletic association, conference, or other group or organization with authority over intercollegiate athletics, including but not limited to the National Collegiate Athletic Association, must not prevent a postsecondary educational institution from fully participating in intercollegiate athletics without penalty as a result of a college athlete obtaining professional representation in relation to contracts or legal matters, including but not limited to representation provided by athlete agents, financial advisors, or legal representation provided by attorneys.
Professional representation provided by athlete agents, financial advisors, or attorneys must be by persons licensed by the state.

Contracts.

A college athlete must not enter into an apparel contract providing compensation to the athlete for use of the athlete’s name, image, or likeness rights which requires a student to display a sponsor’s apparel or otherwise advertises for the sponsor during official team activities if such provisions are in conflict with a provision of the athlete’s team contract.
A college athlete who enters into a contract providing compensation to the athlete for use of the athlete’s name, image, or likeness rights or the athlete’s athletic reputation must disclose the contract to an official of the institution, to be designated by the institution.
An institution asserting a conflict described in paragraph (a) must disclose to the athlete and the athlete’s legal representation, if applicable, the full contract the institution asserts to be in conflict.
A team contract of a postsecondary educational institution’s athletic program must not prevent a college athlete from receiving compensation for using the athlete’s name, image, or likeness rights for a commercial purpose when the athlete is not engaged in official team activities.

Enforcement.

In addition to the remedies otherwise provided by law, any person injured by a violation of this section may bring a civil action and recover damages and receive other equitable relief as determined by the court.
A provision of any contract or agreement that is prohibited by this section or which waives the provisions of this section is contrary to public policy and shall be void and unenforceable. When a contract contains a provision that is void and unenforceable under this paragraph, that provision must be severed from the other provisions of the contract that may remain enforceable.

Severability.

The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity does not affect other provisions or applications that can be given effect without the invalid provision or application.

Tax Implications

FAQ’s

Minnesota NIL FAQ’s

What is the Minnesota NIL Law?

The Minnesota NIL law is a bill for an act relating to higher education; allowing student athletes various rights to compensation and representation; proposing coding for new law in Minnesota Statutes, chapter 135A.

When does Minnesota NIL Compliance Start?

Minnesota NIL started on July 1, 2021, per the NCAA Interim Policies. If and when House Bill 3329 is passed into law, Minnesota State NIL laws would take effect on January 1, 2023.

How does Minnesota NIL affect NCAA Student-Athletes?

Minnesota 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 Minnesota Name, Image, and Likeness Best Practices?

Both athletes and administrators in the State of Minnesota should start by making sure they have a proper understanding of the rules and regulations set-forth by House Bill 3329. A working-knowledge of the ‘Dos and Don’ts’ for Minnesota 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 Minnesota Schools

What schools are affected by Minnesota NIL?

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

University of Minnesota Twin Cities
University of St. Thomas

Bemidji State University
Concordia University
University of Minnesota Crookston
University of Minnesota Duluth
Minnesota State University, Mankato
Minnesota State University Moorhead
Southwest Minnesota State University
St. Cloud State University
Winona State University

Augsburg University
Bethany Lutheran College
Bethel University
Carleton College
Concordia College, Moorhead
Crown College
Gustavus Adolphus College
Hamline University
Macalester College
Martin Luther College
University of Minnesota Morris
North Central University
University of Northwestern – St. Paul
College of Saint Benedict
St. Catherine University
Saint John’s University
Saint Mary’s University of Minnesota
St. Olaf College
College of St. Scholastica

NJCAA

Anoka-Ramsey Community College
Central Lakes College
Fond du Lac Tribal & Community College
Hibbing Community College
Itasca Community College
Mesabi Range College
Minnesota State Community & Technical College
Minnesota West Community & Technical College
Northland Community & Technical College
Rainy River Community College
Ridgewater College
Riverland Community College
Rochester Community & Technical College
St. Cloud Technical and Community College
Vermilion Community College

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