North Carolina SB 563: Uniform Athlete Agents Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 563

Short Title: The Michael Jordans of Tomorrow Act. (Public)
Sponsors: Senators Batch, Garrett, and Smith (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S563-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MAKE VARIOUS CHANGES TO THE LAWS TO ENHANCE THE 2
COMPETITIVENESS OF STUDENT-ATHLETES IN NORTH CAROLINA WITH 3
REGARD TO NAME, IMAGE, AND LIKENESS AGREEMENTS AND DIRECT 4
COMPENSATION OF STUDENT-ATHLETES. 5
The General Assembly of North Carolina enacts: 6
7
PART I. TITLE 8
SECTION 1. This act shall be known as "The Michael Jordans of Tomorrow Act." 9
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PART II. FINDINGS AND PURPOSE 11
SECTION 2. The General Assembly finds all of the following with respect to Name, 12
Image, and Likeness (NIL) compensation in North Carolina: 13
(1) The evolving landscape of NIL compensation has created a competitive 14
imbalance among states. 15
(2) North Carolina must modernize its NIL policies to remain competitive in 16
recruiting and retaining student-athletes. 17
(3) The lack of institutional involvement and State-level incentives places North 18
Carolina schools at a disadvantage as compared to other states with proactive 19
NIL policies. 20
(4) It is in the State's interest to provide clear laws and incentives to support 21
student-athletes while ensuring fair competition and compliance with the rules 22
of the National Collegiate Athletic Association. 23
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PART III. HIGHER EDUCATION NAME, IMAGE, AND LIKENESS AGREEMENTS 25
SECTION 3. Chapter 116 of the General Statutes is amended by adding the 26
following new Article to read: 27
"Article 39. 28
"Student-Athletes. 29
"§ 116-410. Definitions. 30
For purposes of this Part, the following definitions shall apply: 31
(1) Constituent institution. – A constituent institution of The University of North 32
Carolina. 33
(2) NIL. – The use of a student's name, image, or likeness for commercial 34
purposes and in exchange for compensation to the student. Compensation may 35
include cash, in-kind gifts, or other tangible benefits to the student. 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 563-First Edition
(3) NIL Clearinghouse. – As established in G.S. 143B-437.022. 1
(4) NIL collective. – An entity affiliated with a constituent institution with the 2
purpose of supporting interscholastic athletics at that institution. 3
(5) Student-athlete. – A student enrolled in a constituent institution and 4
participating in interscholastic athletics at that institution. 5
"§ 116-411. Name, Image, and Likeness agreements. 6
(a) A constituent institution may assist a student-athlete in securing one or more NIL 7
agreements. Assistance permitted under this subsection may include any of the following 8
activities: 9
(1) Facilitating introductions between student-athletes and potential sponsors. 10
(2) Providing NIL education and contract review assistance. 11
(3) Partnering with businesses and collectives to promote NIL deals. 12
(b) A constituent institution shall not directly compensate any student-athlete for athletic 13
performance or participation. 14
(c) A constituent institution may collaborate with the NIL Clearinghouse to provide 15
support to students when entering NIL agreements. 16
"§ 116-412. Student-athlete compensation. 17
(a) A constituent institution may directly compensate a student-athlete for participating 18
in interscholastic athletics at that institution in addition to any other benefits provided to 19
student-athletes. 20
(b) A constituent institution may allocate up to twenty million five hundred thousand 21
dollars ($20,500,000) per year from interscholastic athletics revenues for direct compensation to 22
student-athletes. For purposes of this subsection, the term "interscholastic athletics revenues" 23
includes all of the following: 24
(1) Revenues received by athletic departments, including revenues from ticket 25
sales, television contracts, and merchandise. 26
(2) Contributions from private donors. 27
(3) Donations from an NIL collective. 28
(c) A constituent institution that provides students with direct compensation in 29
accordance with this section shall report all of the following information no later than October 30
15 of each year to the Joint Legislative Education Oversight Committee and the Department of 31
Commerce: 32
(1) Total amounts provided to each student-athlete. 33
(2) Total amounts provided for student-athlete compensation for each 34
interscholastic athletic team. 35
(d) A constituent institution shall collaborate with the Department of Commerce to ensure 36
direct compensation of student-athletes provided in accordance with this section complies with 37
federal and State law and any other applicable rule or policy." 38
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PART IV. NAME, IMAGE, AND LIKENESS TAX CREDITS 40
SECTION 4.(a) G.S. 105-153.5(b) reads as rewritten: 41
"(b) Other Deductions. – In calculating North Carolina taxable income, a taxpayer may 42
deduct