On April 30th, 2021, Montana passed a Name, Image, Likeness (NIL) law for their colleges and institutions. Montana will see the legislation go live, effective June 1, 2023. Governor Greg Gianforte signed State Bill 248 allowing intercollegiate student athletes the ability to earn compensation for the use of their NIL.
Bill
Status
Signed Into Law
Effective
Date
6/1/2023
NCAA
Institutions
25
Estimated
NCAA Athletes
7,500
High School
NIL Legislation
No
Last Updated 08/22/22
Senate Bill 248
A BILL FOR AN ACT ENTITLED: “AN ACT ESTABLISHING STUDENT-ATHLETE RIGHTS AND PROTECTIONS; ENSURING THAT A STUDENT-ATHLETE CAN EARN COMPENSATION FOR THE USE OF THE STUDENT-ATHLETE’S NAME, IMAGE, OR LIKENESS; AND PROVIDING A DELAYED EFFECTIVE DATE.”
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Student-athlete rights and protections. (1) As used in this section:
(a) “Postsecondary institution” means a 2-year or 4-year public or private college or university located in the state.
(b) (i) “Student-athlete rights” means the rights of a student-athlete enrolled in a postsecondary institution to earn compensation for the use of the student-athlete’s name, image, or likeness and to contract with and retain professional representation of an athlete agent.
(ii) The term does not include a right to receive compensation from a postsecondary institution.
(2) Except as provided in subsections (3) through (6), a postsecondary institution or an athletic association, conference, or organization with authority over intercollegiate sports may not:
(a) prohibit, prevent, or restrict a student-athlete from exercising the student-athlete’s rights;
(b) penalize or retaliate against a student-athlete for exercising the student-athlete’s rights;
(c) prohibit a student-athlete from participating in an intercollegiate sport for exercising the student athlete’s rights; or
(d) subject to subsection (5)(a), impose an eligibility requirement on a scholarship or grant that requires a student-athlete to refrain from exercising the student-athlete’s rights.
(3) (a) A student-athlete may not enter into a contract that provides compensation to the student athlete for the use of the student-athlete’s name, image, or likeness if terms of the contract conflict with the student-athlete’s team rules or with terms of a contract entered into between the student-athlete’s postsecondary institution and a third party, except the team rules or a contract entered into between the postsecondary institution and a third party may not prevent a student-athlete from earning compensation for the use of the student-athlete’s name, image, or likeness when not engaged in official team activities.
(b) A student-athlete who enters into a contract that provides compensation to the student-athlete for the use of the student-athlete’s name, image, or likeness shall disclose the contract to an official of the postsecondary institution if the student-athlete is a team member or, if the student-athlete is not a team member, at the time the student-athlete seeks to become a team member.
(c) If a postsecondary institution asserts that the terms of the contract conflict with the team rules or with terms of a contract entered into between the student-athlete’s postsecondary institution and a third party, the unit shall disclose the specific rules or terms asserted to be in conflict to the student-athlete or to the student-athlete’s professional representative or athlete agent if the student-athlete is represented.
(4) A postsecondary institution or an athletic association, conference, or organization with authority over intercollegiate sports may not provide to a prospective or current student-athlete compensation for use of the student-athlete’s name, image, or likeness.
(5) A postsecondary school may:
(a) include provisions in scholarship agreements allowing the postsecondary school to use the athlete’s name, image, and likeness;
(b) prohibit the use of an athlete’s name, image, and likeness on school property, at school functions, or in any advertising material distributed or placed on school property;
(c) serve as an agent for the athlete to manage any contract using an athlete’s name, image, and likeness; or
(d) do any combination of subsections (5)(a) through (5)(c).
(6) Nothing in this section prohibits a postsecondary institution from establishing or enforcing a conduct code that is applicable to all students enrolled at the unit.
Section 2. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 20, chapter 1, part 2, and the provision of Title 20, chapter 1l, part 2, apply to [section 1].
Section 3. Effective date. [This act] is effective June 1, 2023.
Now that Student Athletes will have the ability to profit off of their name, image and likeness, they have to remain conscious about certain thresholds that could have certain tax consequences. Specific to the State of Montana:
The Montana NIL Law is an act establishing student-athlete rights and protections; ensuring that a student-athlete can earn compensation for the use of the student-athlete’s name, image, or likeness; and providing a delayed effective date.
Montana NIL started on July 1, 2021, per the NCAA Interim Policies and with the passage of State Bill 248, Montana State NIL laws will take effect on June 1, 2023.
Montana 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!
Both athletes and administrators in the State of Montana should start by making sure they have a proper understanding of the rules and regulations set-forth by State Bill 248. A working-knowledge of the ‘Dos and Don’ts’ for Montana 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.
All institutions with NCAA athletic programs are affected by NIL. In the state of Montana, the following schools will be affected:
D2
NJCAA
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