AL HB340

K-12 student athletes in Alabama would be permitted to receive monetary or in-kind compensation for use of their name, image, or likeness (NIL)

Compensation cannot be contingent on athletic performance, used as an enrollment incentive, or provided by schools or their agents

Student athletes cannot use school logos, names, mascots, uniforms, facilities, or athletic association trademarks in NIL activities

NIL deals cannot involve activities conflicting with school policies, including promotion of tobacco, alcohol, or controlled substances

Student athletes and parents must receive professional guidance on financial aid and tax implications, and notify the school principal or athletic director at least 7 days before entering any NIL contract

Effective date: October 1, 2026