PREPARED BY: Suzanne Houlden
LB 370 DATE PREPARED: March 11, 2025
PHONE: 402-471-0057
Revision: 00
FISCAL NOTE
LEGISLATIVE FISCAL ANALYST ESTIMATE
ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates)
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS See below See below
Any Fiscal Notes received from state agencies and political subdivisions are attached f ollowing the Legislative Fiscal Analyst Estimate.
LB 370 proposes to amend certain provisions of th e Nebraska Student-Athlete Name, Image, or Likeness (NIL) Rights Act (the Act).
The University of Nebraska (N U) system reports that while the proposed changes do not have a direct fiscal impact involving State
funds, the proposed legislation presents substantial fiscal and operational risks to the University. NU asserts that the amended
provisions of the NIL Rights Act could at t imes conflict with National Collegiate At hletics Association (NCAA) and Big Ten Conference
regulations , which could result in disciplinary action, loss of membership, or financial penalties. According to NU, membership in the
NCAA and Big Ten generates significant rev enue annually through media rights, sponsorships, and post-season distributions. The
potential loss of NCAA and Big Ten membership threatens a critical revenue source, and increased administrative complexity and legal
uncertainties would create compliance burdens. Th e Fiscal Office has no basis to disagree with these assertions.
Below is a section-by-section summary of LB 370:
Section 1 Sections 7-9 of LB 370 now become part of the NIL Rights Act.
Section 2
- Adds a definition for Agency agre ement.
- Inserts the word “property ” when referring to the student-athlete’s NIL rights or athletic reputation.
- Expands the definition of collegiate athletic association.
- Adds that compensation may also include considerations regarding the providing of constitutionally protected free speech.
- Expands the definition of an NIL collective.
- Defines the term ‘parties’ and the term ‘third party’.
Section 3 re-writes § 48-3603 to provide for the student-athlete’s rights
A student-athlete may:
- not be required to pay a commission or fee to the athlete agent unless written and acknowledged as required in Sec. 9. The student -
athlete may rescind an agreement within fifteen calendar days via written n otification to the athlete agent.
- receive compensation directly from [NU] an athletic program supporter, an NIL collective, or a third party, from service s performed.
Compensation is not required, however.
- be prohibited by [NU] from entering into an agreement deemed to be inconsistent with [NU’s] educational mission.
- obtain professional representation in relation to a contract or other NIL Ri ghts legal matter.
- original § 48-3603 is stricken
Sections 4 & 5
Re-phrases references to [NIL] “likeness rights” as [NIL] “likeness property rights” in § 48-3604 & § 48-3605.
Section 6 re-writes § 48-3606 to provide for the rights of the postsecondary institution
A postsecondary institution may:
- create and support NIL activities and opportunities but not collect a commission.
- enter into third-party contracts to support NIL activities .
- offer education and training to student-athletes in the areas of networking, brand-building, financial literacy, and compliance.
- obtain professional representation in relation to a contract or other NIL Rights legal matter.
CONTINUED ON PAGE 2 LB 370
PAGE 2
A postsecondary institution shall not:
- impose requirements, including any rule of a collegiate athletic association (e.g. NCAA or Big Ten) that restricts or prohibits a student-
athlete from earning compensat ion for NIL activities conducted in compliance with the Nebraska NIL Rights Act ;
- retaliate against a student-athlete, an athlete agent, an NIL collective, or a 3
rd
party for activities authorized in the Act;
- allow compensation earned by a student-athlete to affect any aspect of any athletic grants or institutional scholarship, though that
compensation can be used to calculate income for determining need-based financial aid ;
- prohibit a student-athlete from entering into an agency agreement. Original § 48-3606 is stricken.
Section 7
Section 7 places restrictions on collegiate athletic associations. A college athletic association cannot:
- require [NU] to take an action prohibited by the Act.
- accept complaints, open investigations, or threaten penalties as a result of activities provided by the Act.
- prohibit any of the parties mentioned in abo ve sections from engaging in activities protected by the Act.
- require any of the parties mentioned in above sections to report information about NIL contracts or agreements.
Section 8
For NIL agreements where at least $5,000 will be paid, there shall be a written contract that includes legal name, address, and contact
information of the entity paying the compensation, and the total amount and other details of the compensation. The obligations and
requirements that the student-athlete have to meet in order to receive compensation must also be listed. Also required are any options
that any parties have for revising the contract.
Section 9
Section 9 stipulates that an agency agreement is not a p ublic record, except as provided by § 48-3604. This section also prevents
athlete agents from entering into an agency agreement if the agent has a pending charge, or has been convicted of a felony or certain
misdemeanors. The agent is also not to enter into an agreement if that agent also provides payments, including loans, to the student-
athlete, or their relative, in exchange for the student-athlete entering into the agency agreement. This section also stat es a requirement
that the athlete agent get a written statem ent from the student-athlete attesting to the student-athlete’s contact information, eligibility
within Nebraska or in other states, and a schedule of fees to commissions to be charged to and collected from the student-athlete in the
conduct of the athlete-agent ’s business. If the athlete agent ceases to meet all requirements for operating as an agent athlete, that
agent is to not ify the student-athlete within five calendar days from the time conditions are no longer met.
Section 10
A contract or agreement cannot provide upfront payments to a prospective college athlete in exchange for any future NIL rights.
Section 11
Section 11 revi ses § 48-3608 to expand the list of the entities who may bring civil action against the postsecondar y institution or
collegiate athletic association committing violations of the Act.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 370 AM: AGENCY/POLT. SUB: Nebraska State College System
REVIEWED BY: Kimberly Burns DATE: 01/25/2025 PHONE: (402) 471-4171
COMMENTS: Nebraska State College System’s estimate of no fiscal impact from LB 370 appears reasonable.
0370Change provisions of the Nebraska Student-Athlete Name, Image, or
Likeness Rights Act
__________________________________
EXPENDITURESEXPENDITURES
NUMBER OF POSITIONS
Please complete ALL (5) blanks in the first three lines. 2025
LB
(1)
FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
University of Nebraska System
Prepared by:
(3)
Anne Barnes Date Prepared:
(4)
01/30/2025 Phone:
(5)
(402) 559-6300
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025 - 26 FY 2026 - 27
EXPENDITURES REVENUE
GENERAL FUNDS
0.00 0.00
CASH FUNDS
0.00 0.00
FEDERAL FUNDS
0.00 0.00
OTHER FUNDS
0.00 0.00
TOTAL FUNDS
0.00 0.00
EXPENDITURES REVENUE
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
Explanation of Estimate:
LB370 proposes changes to Nebraska's Student-Athlete Name, Image, and Likeness (NIL) Rights Act that could create compliance risks for the
University of Nebraska, impact its membership in key athletic associations, and introduce significant financial and administrative challenges. If a
University of Nebraska campus opts into a settlement agreement related to student-athletes NIL rights, the proposed changes may conflict with the
respective campuses' compliance with the terms of the settlement and the enforcement of NIL license agreements with student-athletes. The bill's
prohibition on restricting a student-athlete's ability to earn compensation for NIL activities could be interpreted as preventing the University from
enforcing fair market value assessments, as required under settlement terms. This could expose the University to legal and financial risks related to
NIL contract enforcement and compliance.
The legislation also conflicts with National Collegiate Athletics Association (NCAA) and Big Ten Conference regulations. The proposed prohibition
on complying with NIL-related rules from collegiate athletic associations directly contradicts existing requirements, which could result in disciplinary
action, loss of membership, or financial penalties. Membership in the NCAA and Big Ten generates significant revenue annually for the University
through media rights, sponsorships, and post-season distributions. Any risk to this revenue stream would have significant financial consequences.
Additionally, LB370 creates inconsistencies with existing state laws, particularly the Nebraska Uniform Agents Act, by introducing conflicting agent
requirements. The bill's use of the term "property" in reference to NIL rights may lead to unintended legal implications, and the broad definition of
"NIL collective" could inadvertently categorize the University as a collective, resulting in regulatory complications and additional financial oversight
burdens. Ensuring compliance with multiple, conflicting NIL regulations would require increased legal and administrative oversight, further straining
University resources.
The proposed legislation presents substantial fiscal and operational risks to the University. The potential loss of NCAA and Big Ten membership
threatens a critical revenue source, while increased administrative complexity and legal uncertainty would create additional compliance burdens.
While NIL transparency and student-athlete compensation rights remain important considerations, LB370's broad restrictions could have unintended
consequences that significantly impact the University's financial stability and regulatory obligations.
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
Benefits..............................................
Operating...........................................
Travel.................................................
Capital outlay....................................
Aid...................................................
Capital improvements........................
TOTAL......................................
25 - 26
0
0
26 - 27
0
0
2025 - 26 2026 - 27 Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 370 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Nebraska State College System
Prepared by:
(3) Brenda Owen Date Prepared:
(4)
1-21-2025 Phone:
(5)
471-2507
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
Explanation of Estimate:
No fiscal impact
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS O F EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………… ……………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… .....