Requires that if compensation in excess of ten thousand dollars per year is paid to a student-athlete who is a minor from contracts for the use of the student-athlete's name, image and likeness, all amounts in excess of ten thousand dollars must be deposited into a restricted trust account established for the benefit of the student-athlete.
STATE OF NEW YORK
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11717
IN ASSEMBLY
September 16, 2026
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Introduced by COMMITTEE ON RULES -- (at request of M. of A. Solages) --
read once and referred to the Committee on Higher Education
AN ACT to amend the education law, in relation to compensation received
by minor student-athletes from contracts for the use of a student-
athlete's name, image and likeness
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 6438-c of the education law is amended by adding a
2 new subdivision 9 to read as follows:
3 9. (a) The provisions of this subdivision apply to a student-athlete
4 who has completed at least their sophomore year of high school or inter-
5 national equivalent, and is eligible, or may in the future be eligible,
6 to attend a college and participate in intercollegiate athletics. The
7 provisions of this subdivision shall not apply to student-athletes eigh-
8 teen years of age or older.
9 (b) If total compensation earned from the use of a student-athlete's
10 name, image and likeness paid to a student-athlete during a calendar
11 year is ten thousand dollars or less, such compensation may be paid
12 directly to the student-athlete or the parent or legal guardian of such
13 student-athlete.
14 (c)(i) If total compensation earned from the use of a student-
15 athlete's name, image and likeness paid to a student-athlete during a
16 calendar year exceeds ten thousand dollars, all amounts in excess of ten
17 thousand dollars shall be deposited into a restricted trust account
18 established for the benefit of the student-athlete.
19 (ii) The trust account described in this paragraph shall be adminis-
20 tered in a manner consistent with New York state law applicable to
21 settlement funds involving a minor, except as modified by this subdivi-
22 sion.
23 (iii) Funds held in trust as described in this subparagraph shall not
24 be released until the student-athlete graduates from high school or
25 attains the age of eighteen, whichever occurs first.
26 (iv) The trust account shall:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16167-01-6
A. 11717 2
1 (A) be established by the parent or legal guardian of the student-ath-
2 lete;
3 (B) prohibit withdrawals except by court order or as provided herein;
4 and
5 (C) be subject to judicial supervision upon petition if necessary.
6 (d) The superintendent of financial services shall add, amend and/or
7 repeal any rule or regulation necessary for the implementation of this
8 subdivision on its effective date.
9 § 2. This act shall take effect on the first of July next succeeding
10 the date upon which it shall have become a law and shall apply to all
11 contracts entered into by any student-athlete on and after such effec-
12 tive date.
