HB404 Summary

• Student athletes at Alabama postsecondary educational institutions may earn compensation for use of their name, image, or likeness commensurate with market value.

• Institutions may prohibit endorsement deals with tobacco, alcohol, controlled substances, adult entertainment, gambling entities, or brands that negatively impact the institution's reputation.

• Compensation cannot be conditioned on athletic performance, provided by the institution or its supporters, used as enrollment inducement, or extend beyond the athlete's participation in the sport.

• Each institution must provide financial literacy and life skills programming covering financial aid, debt management, budgeting, and time management for student athletes.

• Establishes the Alabama Collegiate Athletics Commission to develop rules and recommendations on name, image, and likeness standards; violations punishable by civil penalty up to $1,000; effective July 1, 2021.