NC H866

Requires UNC Board of Governors to adopt policies mandating NCAA Division I schools participating in FBS football or Division I basketball to pay student-athlete stipends up to the full cost of attendance using revenue from commercial use of athletes' names, images, and likenesses.

Mandates that universities hold limited and equal shares of licensing revenue in trust for FBS football and Division I basketball student-athletes to be distributed after they leave college or eligibility expires.

Prohibits state funding to private NCAA Division I institutions that participate in FBS football or Division I basketball unless they adopt and implement substantially similar student-athlete compensation policies.

Applies only upon final judgment in O'Bannon v. NCAA case with all appellate review exhausted or abandoned, requiring NCAA schools to pay student-athlete stipends and hold funds in trust.

Becomes effective upon enactment.