House approves law to let colleges compensate student-athletes for name, image and likeness

The House on Feb. 14 passed House Bill 10‑41, titled the Student Athlete Name, Image, and Likeness (NIL) bill, which allows public institutions of higher education and affiliated enterprises to compensate student athletes for the use of their name, image and likeness.

Representative Smith, the bill sponsor, said the measure is intended to ensure Colorado institutions can participate competitively with forthcoming NCAA rules and a settlement expected to be finalized in April. ‘‘This bill will allow an institution of higher education or athletic association to compensate a student athlete for the use of a student athlete's name, image, or likeness,’’ Representative Smith said on the floor.

Lawmakers debated two related policy areas in committee and on the floor: the confidentiality of athlete contracts and transparency/reporting for the public. Sponsors and proponents noted protections for personally identifiable information under the Family Educational Rights and Privacy Act (FERPA) and said the bill was amended to specify which financial terms and contract elements are protected. The bill also adds reporting requirements for institutions — the sponsor described amendments requiring reporting of total NIL dollars by sport and by gender for University of Colorado (CU) programs.

Several members raised transparency concerns. Representative Hartzock and others said public institutions traditionally disclose many contract values and argued the public should have access to how public funds or auxiliaries are spent. Several proposed amendments that would have shortened or limited contract confidentiality (for example, temporary sealing or delayed disclosure of compensation amounts) were offered during committee meetings but were withdrawn by their proponents after discussion.

Representative AML Bacon explained that some members proposed time-limited sealings — for example, redacting personally identifiable information but releasing aggregated contract amounts after two academic years — but withdrew those amendments after stakeholder conversations. The sponsor said committee deliberations included changes excluding high school students and clarifying the specific types of financial information covered by FERPA and the bill’s language.

After floor discussion emphasizing bipartisan compromise on parental‑consent protections for minors and reporting requirements, the House adopted the committee report and passed House Bill 10‑41.

What’s next: The bill was ordered revised and placed on the calendar for third reading and final passage, per the Committee of the Whole report.