Senate committee backs bill letting public colleges authorize NIL deals, bars use of legislative appropriations

House Bill 25-76, a measure to let state colleges and universities authorize and administer name, image and likeness (NIL) compensation for student athletes, was reported to the full Senate with a recommendation that it pass after committee debate and a rejected amendment.

Counsel Hank told the committee the bill "allows state institutions of higher education to enter into agreements providing for the compensation of student athletes for the use of the student's, the student athlete's name, image, or likeness," and permits revenue sharing or direct payments from an institution while expressly prohibiting the use of monies "appropriated by the legislature" for those payments. Hank said the bill also protects student athletes and institutions from adverse actions by athletic associations for engaging in authorized NIL activities and lists categories of activity for which students may not receive compensation, including alcohol, adult entertainment, cannabis, performance-enhancing drugs, tobacco and gambling.

Supporters and university representatives told the committee the bill would help West Virginia institutions remain competitive in recruiting. Ren Baker, athletic director at West Virginia University, said the legislation "gives us the opportunity to compensate the student athletes for their name, image, and likeness" and "provides us some protections, so that we can go ahead and move forward." Head coach Rich Rodriguez added, "When we win, everybody wins," arguing athletic success benefits the state and university.

A proposed amendment from the senior senator from the fourth sought to strike a final section that creates an express cause of action, arguing that adding explicit causes of action could deter businesses from locating in West Virginia. The amendment was rejected after debate: the chair ruled the "no" votes had it and declared the amendment rejected.

The vice chair then moved to report the bill to the full Senate with a recommendation that it do pass; the chair called the ayes and declared the motion adopted.

What the bill would do, according to counsel, includes permitting student athletes to retain agents or attorneys regarding NIL matters and defining "likeness" to include a student's voice. The bill also allows institutions to condition compensation on institution-established terms and to share revenues generated by intercollegiate athletic departments.

The committee record shows frequent references to the bill's intent to keep West Virginia institutions competitive and to limit state appropriations from being diverted to athlete compensation. No fiscal estimate or appropriation change was provided in the committee discussion.

The committee hearing included questions about the scope of "likeness" (Hank confirmed the bill's definition includes voice and pseudonyms) and about whether expressing causes of action in statute was necessary; counsel said remedies may already be available but that the explicit language had been included in the draft.

House Bill 25-76 will advance to the full Senate for further consideration.