HB340 • 2026

High School athletics, right to compensation for name, image, and likeness

Education Parental Rights Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Gray
Last action: 2026-01-27
Official status: Pending Committee Action in House of Origin
Effective date: Not listed

Plain English Breakdown

The official text states the bill was introduced and passed its first reading on January 27, 2026. The metadata indicates it 'Passed Legislature' but also lists a status of 'Pending Committee Action,' which creates uncertainty about whether the final version matches this draft exactly.

High School Athletes' Right to Earn Money for Name, Image, and Likeness

This bill allows high school student athletes in Alabama to receive payment for using their name, image, or likeness while setting specific rules on how that money can be earned.

What This Bill Does

Allows students who play sports to receive payment for the use of their name, picture, or identity.
Requires parents and student athletes to get professional advice about taxes and college financial aid before accepting money.
Mandates that schools must be told at least seven days before a student signs an agreement to earn this type of compensation.
Sets rules on what cannot happen during these deals, such as using school logos or uniforms in advertisements.

Who It Names or Affects

Student athletes enrolled in K-12 schools who participate in sports
Parents and legal guardians of student athletes
School principals and athletic directors

Terms To Know

Compensation: Any money or items given to a student athlete for using their name, image, or likeness.
Name, Image, and Likeness (NIL): The right of an individual to control how their identity is used in advertising or promotions.

Limits and Unknowns

Payment cannot depend on how well the student plays sports or achieves specific goals.
Schools and people acting for schools are not allowed to give this type of payment directly.
The bill does not take effect until October 1, 2026.

Bill History

2026-01-27 House
Pending Committee Action in House of Origin
2026-01-27 House
Read for the first time and referred to the House Committee on Education Policy

Official Summary Text

High School athletics, right to compensation for name, image, and likeness

Current Bill Text

Read the full stored bill text

HB340 INTRODUCED
Page 0
HB340
6YET8Z3-1
By Representative Gray
RFD: Education Policy
First Read: 27-Jan-26
1
2
3
4
5
6YET8Z3-1 01/27/2026 ZAK (L)ma 2026-519
Page 1
First Read: 27-Jan-26
SYNOPSIS:
This bill would allow high school student
athletes to receive compensation for the use of their
name, image, or likeness.
This bill would also provide requirements to be
adhered to when compensating high school student
athletes for the use of their name, image, or likeness.
A BILL
TO BE ENTITLED
AN ACT
Relating to high school athletics; to allow student
athletes to receive compensation for the use of their name,
image, or likeness; and to provide requirements for
compensating student athletes for the use of their name,
image, or likeness.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) For the purposes of this section, the
following terms have the following meanings:
(1) ATHLETIC ACTIVITY. The term as defined in Section
16-30D-2, Code of Alabama 1975.
(2) COMPENSATION. Any monetary or in-kind payment to a
student athlete.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
HB340 INTRODUCED
Page 2
student athlete.
(3) STUDENT ATHLETE. A student who is enrolled in a
K-12 school and participates in any athletic activity.
(b) No student athlete in this state shall be prevented
from receiving compensation for the use of his or her name,
image, or likeness.
(c) The receipt of compensation by a student athlete
for the use of his or her name, image, or likeness shall be
subject to all of the following requirements:
(1) Compensation may not be:
a. Contingent on specific athletic performance or
achievement.
b. Provided as an incentive to enroll or remain
enrolled at a specific school.
c. Provided by a school or any individual acting as an
agent for a school.
(2) None of the following may be used, worn, or
endorsed in relation to a student athlete receiving
compensation for the use of his or her name, image, or
likeness:
a. Marks, including a school logo, school name, school
mascot, or trademarked logo or acronym of an athletic
association.
b. School apparel or equipment, including a school
uniform or any apparel displaying a trademarked logo or
acronym of an athletic association.
c. A school facility.
d. Activities in conflict with a school's policies,
including the use of tobacco products, alcohol products, or
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
HB340 INTRODUCED
Page 3
including the use of tobacco products, alcohol products, or
controlled substances.
(3) Prior to receiving compensation as authorized by
this act, a student athlete and a parent or legal guardian of
the student athlete shall receive professional guidance as to
the potential impacts and consequences of receiving the
compensation, including collegiate financial aid and tax
implications.
(4) A student athlete may not receive compensation
pursuant to this section unless the student athlete or a
parent or legal guardian of the student athlete notifies the
principal or athletic director of the student athlete's school
that the student athlete intends to enter into any type of
name, image, or likeness contract or agreement no less than
seven days prior to entering into the contract or agreement.
Section 2. This act shall become effective on October
1, 2026.
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72