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Policy panel forwards student name-image‑likeness rules after state mandate

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Summary

A New Hanover County Schools policy committee voted to send proposed changes on student name-image‑likeness (NIL) agreements to the full board after discussion of newly adopted state rules and a recent court order requiring regulation rather than prohibition.

The New Hanover County Schools policy committee on a voice vote advanced proposed revisions to policy 36.20 on extracurricular activities to the full school board, sending district lawyers’ implementation language after trustees discussed newly adopted state rules and a court directive.

Committee members said the changes reflect recent action by the State Board of Education and related court decisions that require school systems to regulate, but not prohibit, student agreements to monetize a student’s name, image or likeness in limited circumstances.

The committee moved the change to the full board with a recorded committee vote of 3-0. The proposal adds a paragraph recognizing that a student who participates in athletics may enter an agreement to use the student’s name, image or likeness subject to requirements in state administrative rules (cited in discussion as 16 NCAC 06E .0211) and other law. During committee discussion members asked how the district will limit school references in commercial activities and what safeguards will prevent pay-for-transfer or booster-driven inducements.

Committee members and staff described several limits reflected in the draft language and by the state rule: NIL agreements may not condition compensation on athletic performance; parents must sign for minors; the agreements must hold the school system and certain governing bodies harmless; agreements must comply with state and federal law; and agreements may not reference or use the school’s name, logos or marks (the committee used the example that a student could not wear or promote a Hoggard High School jersey in a NIL commercial). The committee also noted the draft prohibits endorsements of certain products and services — including alcohol, tobacco, cannabis, gambling, weapons and other items the district said could disrupt school operations.

Committee members referenced a Wake County Superior Court ruling and subsequent State Board of Education rules as the drivers for the change. Committee discussion cited a court finding that the State Board was required to adopt regulations that allow but do not prohibit NIL agreements after litigation involving the governance of high school athletics.

The policy will return to the full board for final consideration. Staff said the proposed language also mirrors rules adopted by the State Board of Education and the North Carolina High School Athletic Association and that further refinement would be possible after legal review.

The committee recorded no amendments to the draft policy and sent the item onward for full-board action.