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Bill that would allow colleges to compensate student-athletes for NIL moving through Montana legislature

69th Legislative Session - Montana State Legislature
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HELENA — A bill moving through the Montana legislature would permit colleges or universities in the state to compensate student-athletes for use of their name, image or likeness.

Senate Bill No. 271, which was introduced by Sen. Ellie Boldman, D-Missoula, passed the second reading of the Montana Senate 40-10 on Tuesday and the third reading 39-10 on Wednesday. It will now move to the House.

Montana law already permits college student-athletes "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." That bill was passed in 2021 but excluded student-athletes from receiving compensation directly from their college or university.

SB 271 would remove that exclusion and strike from the Montana Code: "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."

Name, image or likeness, commonly referred to as NIL, allows student-athletes to earn money from their personal brand. Examples of NIL activities include student-athletes selling autographs and memorabilia, hosting camps or clinics, and serving as a brand ambassador.

NIL has also trickled down to the high school level. The Montana High School Association earlier this year passed a bylaw that permits student-athletes to profit off their name, image and likeness, as long as they do not use school gear or property.