E3C INCOMING: COMPARING STATE LAWS AND PROPOSED LEGISLATION
From the California State Capitol in Sacramento to Florida’s in Tallahassee, no two state offices have garnered more attention on the topic of collegiate student-athletes’ name, image, and likeness (E3C). In the fall of 2019, California Governor Gavin Newsom signed the “Fair Pay to Play Act” into law creating a domino-effect of subsequent state laws and proposals. Nine months later, the state of Florida passed their rendition on the topic under “Intercollegiate Athlete Compensation and Rights” with an effective date of July 1, 2021.
Queue a legislative slew involving nearly every other state in the country.
Despite the effort made by legislators to push the envelope with E3C, post-July 1 many stakeholders recognized it was the states who did not have a state law that had the upper-hand under the NCAA’s Interim E3C Policy. For this reason, as well as the growing interest from institutions to take a more hands-on approach with E3C, the 2022 legislative cycle has seen an uptick in proposals, amendments, and even repealing efforts.
On May 9, 2022, the NCAA Division I Board of Directors issued further guidance to the membership on E3C as it pertains to the recruiting process.https://public.tableau.com/views/2022State-by-StateE3CLandscape/2022State-by-StateE3CLandscape?:embed=y&:showVizHome=no&:host_url=https%3A%2F%2Fpublic.tableau.com%2F&:embed_code_version=3&:tabs=no&:toolbar=yes&:animate_transition=yes&:display_static_image=yes&:display_spinner=no&:display_overlay=yes&:display_count=yes&:language=en-US&publish=yes&:loadOrderID=0
Though the NCAA’s interim policy was much lighter than their previously proposed legislation, the core tenants prohibiting pay-for-play and improper recruiting inducements stand. Nevertheless, the interim does direct student-athletes and schools in states with state laws on the books to defer to their rules of their locale.
Even though each state has unique clauses of their own, the E3C-specific language has all been trending in relatively the same direction. Unless otherwise described, these are the “general characteristics” of E3C legislation referred to in this article:
- Schools, Conferences, and Associations cannot limit a student-athlete’s ability to be compensated for their E3C
- Student-athletes can receive professional representation if they are a registered agent in the state
- Participation in E3C-related activities shall not impact a student-athlete’s athletic or scholarship eligibility
- E3C agreements cannot be in conflict with existing team contracts
- Schools, Conferences, and Associations cannot compensate a student-athlete for their E3C
- Schools may restrict student-athletes from participating in vice industries
*This list is not intended to describe any specific state’s legislation, but rather paint a picture of a common bill for any given state.
It is worth noting this article is a breakdown of legislation specific to collegiate student-athletes. For a breakdown of legislation at the high school level, visit this page.
Let’s take a look at each state a little closer.
STATE-BY-STATE BREAKDOWN
ALABAMA
Status: Repealed Law
Bill: House Bill 404 (Repealed by House Bill 76)
Effective Date: Currently in Effect
More Info: In February 2022, Alabama became the first state to repeal their E3C law. Citing the disadvantage that it put their states’ institutions in, primarily on the recruiting front, Alabama lawmakers turned the policy-making keys over to the schools.
ALASKA
Status: No Known Activity
ARIZONA
Status: Enacted into Law
Bill: Senate Bill 1296
Effective Date: Effective Immediately
More Info: Arguably one of the least impactful state laws across the map, Arizona’s statute essentially defers to the interim policy adopted by the NCAA. Of note, Arizona’s law in nature does not authorize student-athletes to engage in E3C activities using institutional trademarks or logos.
ARKANSAS
Status: Enacted into Law
Bill: House Bill 1671
Effective Date: January 1, 2022
More Info: Drafted by legislators using the input of University of Arkansas legal counsel, this law follows the general characteristics of most others. Noting prohibitions on E3C activities for prospective student-athletes, there are also restrictions on activities involving alcohol, tobacco, drugs and controlled substances, adult entertainment, gambling, sports wagering, performance enhancing drugs, pharmaceuticals, and firearms/weapons.
CALIFORNIA
Status: Enacted into Law
Bill: Senate Bill 206 and Senate Bill 26
Effective Date: September 1, 2021
More Info: Despite California’s early involvement in E3C, the original SB 206 was set with an effective date of January 1, 2023. Following the NCAA’s interim action, state legislators pivoted with a new bill, SB 26, with an earlier effective date. While both bills are in-line with one another, SB 26 included slightly more detail on E3C activities completed in conflict with values of the institution.
COLORADO
Status: Enacted into Law
Bill: Senate Bill 20-123
Effective Date: January 1, 2023
More Info: In March of 2020, Colorado became the second state to sign E3C regulations into law. Nearly identical to California’s SB 206, the statute mostly follows the general characteristics of the other states.
CONNECTICUT
Status: Enacted into Law – Amended
Bill: House Bill 6402 (Amendment) and Raised Senate Bill No. 20
Effective Date: July 1, 2021 and July 1, 2022
More Info: The main statute in Connecticut’s state law which differs from others is their explicit prohibition on a student-athlete’s use of institutional intellectual property. Particularly challenging for brands searching to work with student-athletes from within the state, this frustration led to many stakeholders pushing for amendments of the existing law, concluding in the passage of SB 20.
DELAWARE
Status: No Known Activity
DISTRICT OF COLUMBIA
Status: Legislation Proposed (Current Session)
Bill: Bill 24-0456
Effective Date: Effective Immediately
More Info: In October of 2021, following the request of the Uniform Law Commission, the Council of the District of Columbia introduced the Uniform College Athlete Name, Image, or Likeness Act. The proposed legislation covers many of the standard provisions consistent with other E3C bills.
FLORIDA
Status: Enacted into Law – Amending Process
Bill: Senate Bill 646 (New bills include: SB 1428, HB 939)
Effective Date: July 1, 2021
More Info: Much like Alabama, despite their ability to set the tone early, Florida legislators have now recognized the disadvantage their universities are now in under the law. In the start of 2022, there have been two bills introduced on top of conversations to repeal or amend the existing statute. In the eyes of schools, one of the most troublesome clauses in the law restricts institutional staff and supporting entities involvement in E3C activities. The proposed changes in the bills, however, did not survive the end of the 2022 legislative session.
GEORGIA
Status: Enacted into Law
Bill: House Bill 617
Effective Date: July 1, 2021
More Info: Despite including many of the same provisions as other states and going into effect on July 1, Georgia’s law is largely considered to have “sunset”. Although many institutions in the state view their law as voided, the same general characteristics from the law have been carried over to school policies.
HAWAII
Status: Legislation Proposed (Previous Session)
IDAHO
Status: No Known Activity
ILLINOIS
Status: Enacted into Law – Amending Process
Bill: Senate Bill 2338 and House Bill 1175
Effective Date: July 1, 2021
More Info: The current law in Illinois is very middle-of-the-road when compared to other states. While it does hold restrictions on certain vice industries, a provision exists allowing student-athletes to utilize institutional marks after receiving pre-approval from the school. It is in these more specific situations where amendment conversations have arisen.
INDIANA
Status: No Known Activity
IOWA
Status: Legislation Proposed (Previous Session)
KANSAS
Status: Legislation Proposed (Previous Session)
KENTUCKY
Status: Enacted into Law – New Proposals
Bill: Executive Order, Senate Bill 6 and House Concurrent Resolution 94
Effective Date: July 1, 2021
More Info: Kentucky’s Governor took executive action on E3C at the turn of the rule change nationwide, but now after a few months in the E3C-era legislators have shown interest in transitioning the executive order into law. With the same general characteristics as other states, Kentucky became the first states to sign a law over an executive order. Additionally, there is more legislative work in the mix as House Concurrent Resolution 94 has progressed.
LOUISIANA
Status: Enacted into Law – Amending Process
Bill: Senate Bill 60 and Senate Bill 250
Effective Date: July 1, 2021
More Info: Louisiana’s law is vocal on the standard vice industries, requires pre-approval for institutional marks use, and requires a minimum of five hours of financial literacy and life skills training for student-athletes at the start of their first and third academic years. Nonetheless, legislators in the state have taken action to amend the law.
MAINE
Status: Enacted into Law
Bill: Legislative Document No. 1893
Effective Date: N/A
More Info: Maine became the first state to break the legislative silence in 2022 by proposing a bill in a state with no activity to this point and the 29th state to enact a law. The bill covers the same general characteristics as most other state laws and went into effect immediately following signature from the Governor on March 31st.
MARYLAND
Status: Enacted into Law – New Proposals
Bill: House Bill 125
Effective Date: July 1, 2023
More Info: Passed as the “Jordan McNair Safe and Fair Play Act”, Maryland’s E3C law bundles both health and safety requirements and rights of publicity into one act. Fairly unrestrictive when compared to other state’s laws, the provisions are written in a manner that gives institutions the freedom to establish their own policies. Additionally, another bill has been introduced in the state which specifically highlights high school athletes.
MASSACHUSETTS
Status: Legislation Proposed (Current Session)
Bill: Senate Bill 2813
Effective Date: N/A
More Info: For the second consecutive session, legislators in the state of Massachusetts have introduce an E3C bill.
MICHIGAN
Status: Enacted into Law
Bill: House Bill 5217
Effective Date: December 31, 2022
More Info: Set to impact student-athletes directly at the end of 2022, the law has already indirectly impacted student-athletes in the state of Michigan through their school policies. Written consistent with most other laws, Michigan’s act gives much of the freedom to their institutions when it comes to governance.
MINNESOTA
Status: Legislation Proposed (Previous Session)
MISSISSIPPI
Status: Enacted into Law – Amended
Bill: Senate Bill 2313 and Senate Bill 2690
Effective Date: July 1, 2021
More Info: Similar to the other laws adopted in the southern U.S., Mississippi’s law covers most of the general characteristics outlined above. One unique provision legislators included was around booster involvement in E3C activities as a form of inducement for enrollment. Aligned with the NCAA’s interim policy, what made Mississippi unique was the direct mention of boosters in particular. Mississippi took a step further in April 2022 with the passage of Senate Bill 2690, allowing schools in the state to be involved in athletes’ E3C deal conversations.
MISSOURI
Status: Enacted into Law
Bill: House Bill 297
Effective Date: August 28, 2021
More Info: A late adopter on the state front, Missouri legislators played the slow game to see how the ecosystem would develop. Deferring to the preferences of their state’s institutions, Missouri’s law is most direct when it comes to prohibitions on student-athletes’ E3C activities which conflict with the values of their school.
MONTANA
Status: Enacted into Law
Bill: Senate Bill 248
Effective Date: June 1, 2023
More Info: Montana legislators also took a slowed approach in comparison with other states which adopted acts, pushing for a 2023 effective date, leaving their institutions to develop policies in the meantime. One of the most notable provisions in the law allows for institutions to serve as an agent for the student-athlete.
NEBRASKA
Status: Enacted into Law – Amended
Bill: Legislative Bill 962 and Legislative Bill 1137
Effective Date: July 1, 2023 (all states must apply this act by)
More Info: Nebraska stuck claim to being the fourth state to enact E3C legislation, however the effective date set it apart from most. Written in an “opt-in” fashion, institutions in the state were to remain under NCAA regulations until they adopted the state law. This has created a split – in the case of Creighton the school applied the law on July 1, but the University of Nebraska-Lincoln has held out to remain under their own school policy and can do so until the 2023 date. On top of this, additional legislative activity has occurred in the 2022 session which led to further amendments to E3C regulations.
NEVADA
Status: Enacted into Law
Bill: Assembly Bill 254
Effective Date: July 1, 2021
More Info: Nevada legislators adopted one of the lightest E3C state laws around the country. Available for schools to set the boundaries they desire, the only prohibitions on E3C activities outline outside of the general characteristics are those which conflict with the student-athlete’s institution.
NEW HAMPSHIRE
Status: Legislation Proposed (Previous Session)
NEW JERSEY
Status: Enacted into Law – New Proposals
Bill: Senate Bill 971 (Assembly Bill 2322)
Effective Date: August 1, 2025 (AB 2322 is effective immediately)
More Info: One of the first five states to enact E3C legislation, New Jersey set their effective date later than any other state. However, there is current activity surround AB 2322 which could impact the E3C front, specifically in regard to income tax. Apart from this, the current law has prohibitions on the standard vice industries.
NEW MEXICO
Status: Enacted into Law
Bill: Senate Bill 94
Effective Date: July 1, 2021
More Info: Legislators in the state of New Mexico adopted E3C regulations consistent with those of other states with one major exception – footwear. This act states that a school cannot prohibit or discourage a student-athlete from wearing the footwear of their choice during official team activities, including games and practices. This clause potentially opens the door for E3C-related apparel deals which are largely restricted in other states.
NEW YORK
Status: Legislation Proposed (Current Session)
Bill: Assembly Bill 5115
Effective Date: January 1, 2023
More Info: New York legislators have carried over efforts from 2021 into the current session, introducing three different E3C bills. The bill which has seen the most traction, Assembly Bill 5115, has several unique aspects, including provisions specific to NCAA Division I institutions.
NORTH CAROLINA
Status: Enacted into Law
Bill: Executive Order
Effective Date: July 2, 2021
More Info: The Governor of North Carolina, with the influence of many legislators and institutional officials in the state, took executive action just after the rule change to protect student-athletes within the state. Though written broadly, the order defers decisions on topics such as facility and marks use to the school policies.
NORTH DAKOTA
Status: No Known Activity
OHIO
Status: Enacted into Law
Bill: Executive Order
Effective Date: July 1, 2021
More Info: As there were a handful of legislators pushing for a bill in the state leading up to July 1, the Governor stepped in to act on E3C with the help of Ohio State University officials. Crafted advantageously for the universities in the locale, Ohio’s ruling has placed its schools in a position to adapt their policies to best suit the needs of the ever-changing landscape.
OKLAHOMA
Status: Enacted into Law
Bill: Senate Bill 48
Effective Date: July 1, 2023 (all states must apply this act by)
More Info: Similar to Nebraska’s act, Oklahoma created their law in an “opt-in” fashion. Unlike Nebraska’s, however, student-athletes in the state of Oklahoma are prohibited from engaging in E3C activities using school logos, involving sports wagering or banned substances, or with supporting entities of the university.
OREGON
Status: Enacted into Law
Bill: Senate Bill 5 and Senate Bill 1505
Effective Date: July 1, 2021 (SB 1505 goes in effect on July 1, 2022)
More Info: The Oregon legislators, like others, deferred to the discretion to the schools to create policies of their own. One topic which has drawn more attention, concluding with a second E3C state law being enacted, is royalty payments to student-athletes on trading cards, video games, and jersey sales.
PENNSYLVANIA
Status: Enacted into Law
Bill: Senate Bill 381
Effective Date: July 1, 2021
More Info: One of the most efficient legislative efforts made at the turn of the rule change came from Pennsylvania, which became one of the only June 30 adopters of policy. The state law in governance, however, does outline restrictions for student-athletes on traditional vice industries and gives the discretion to the schools in regard to school IP use in E3C activities.
RHODE ISLAND
Status: Legislation Proposed (Current Session)
Bill: House Bill 6673
Effective Date: January 1, 2023
More Info: One of several northeastern states without an E3C law, some Rhode Island legislators seek to change that with the introduction of House Bill 6673. Effective in the coming year, the bill covers many of the common provisions, without explicit prohibition on school marks use or vice industry endorsements.
SOUTH CAROLINA
Status: Enacted into Law – Amending Process
Bill: Senate Bill 685 and 2022-2023 Fiscal Year State Budget
Effective Date: July 1, 2021
More Info: Debatably the most restrictive state law on the books, South Carolina legislators did not hold back in their prohibitions on E3C activities involving vice industries, as well as restrictions on unauthorized use of institutional marks and facilities. Regardless, the same legislators have now made the decision to reevaluate the law as it stands, including amendments in the 2022-2023 Fiscal Year State Budget.
SOUTH DAKOTA
Status: No Known Activity
TENNESSEE
Status: Enacted into Law – Amended
Bill: House Bill 1351 and Senate Bill 2392
Effective Date: January 1, 2022
More Info: Tennessee, the state with one of the most recently effective E3C laws, had early rumblings on the amendment process. Common among the neighboring states within the southern U.S., there is a growing interest in schools and their staff having more freedom to interact with stakeholders in the E3C environment. Tennessee legislators recognized that and made the desired changes applicable on April 20, 2022.
TEXAS
Status: Enacted into Law
Bill: Senate Bill 1385
Effective Date: July 1, 2021
More Info: Another highly restricted state, legislators in Texas included provisions within their act to prevent against student-athletes using school logos, among others. Though there have not been a shortage in frustrations expressed around the restrictive nature of the state law, the Texas legislative cycle inhibits any major amendment activity unless a special session were to be called.
UTAH
Status: No Known Activity
VERMONT
Status: Legislation Proposed (Previous Session)
VIRGINIA
Status: Enacted into Law
Bill: Senate Bill 223
Effective Date: Effective Immediately
More Info: A second example of a state without a law on the books making a late push towards legislation, Virginia became the 30th state to enact an E3C law in the country. However, in the same action which passed SB 223, the Governor vetoed House Bill 1298 which was proposed legislation on E3C prohibiting activities for high school athletes.
WASHINGTON
Status: Legislation Proposed (Previous Session)
Bill: Senate Bill 5942
Effective Date: January 1, 2023
More Info: Washington legislators introduced the Uniform Law Commission’s (ULC) proposed act as a bill this session. Despite sharing many common characteristics with other state laws, the legislative session came to a quick end and it did not fair well for the progression of this bill.
WEST VIRGINIA
Status: Legislation Proposed (Previous Session)
WISCONSIN
Status: Legislation Proposed (Previous Session)
WYOMING
Status: No Known Activity
Timeline
Below is the timeline of all states enactment of E3C legislation:
9/30/19 – California (SB 206)
3/20/20 – Colorado
6/12/20 – Florida
7/27/20 – Nebraska
9/14/20 – New Jersey
12/31/20 – Michigan
3/26/21 – Arizona
4/8/21 – New Mexico
4/16/21 – Mississippi
4/20/21 – Alabama
4/21/21 – Arkansas
4/30/21 – Montana
5/6/21 – Georgia
5/6/21 – South Carolina
5/12/21 – Tennessee
5/18/21 – Maryland
5/28/21 – Oklahoma
5/31/21 – Nevada
6/14/21 – Texas
6/24/21 – Connecticut
6/24/21 – Kentucky
6/28/21 – Ohio
6/29/21 – Illinois
6/29/21 – Oregon
6/30/21 – Pennsylvania
7/1/21 – Louisiana
7/2/21 – North Carolina
7/14/21 – Missouri
8/31/21 – California (SB 26)
2/3/22 – Alabama (Repealed)
3/7/22 – Oregon (SB 1505)
3/9/22 – Kentucky (SB 6)
3/31/22 – Maine
4/11/22 – Virginia
4/18/22 – Nebraska (LB 1137)
4/18/22 – Mississippi (SB 2690)
4/20/22 – Tennessee (SB 2392)