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S 4439

Establishes the definition for legislation

2025 Regular Session Introduced by Dan Stec

Establishes a comprehensive NIL framework allowing four-year colleges to compensate student-athletes for NIL, with confidentiality, representation, and anti-penalty protections for

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Bill Summary · S 4439

Summary of Senate Bill No. 4439 (S 4439)

Subtitle: An Act concerning student-athletes, supplementing Title 18A of the New Jersey Statutes, and repealing P.L.2020, c.83.

Status and Chronology
- Introduced: May 19, 2025
- Referred to Senate Higher Education Committee; subsequently reported favorably (May 22, 2025) and passed by both houses mid-2025
- Reaffirmed and enacted as P.L. 2025, c.110 on July 22, 2025
- Primary sponsor: Dan Stec
- Related/complementary bills: A 5729 (companion)

Purpose and Scope
- Establishes a framework for name, image, and likeness (NIL) compensation for student-athletes at four-year colleges and universities that offer athletic scholarships.
- Repeals the New Jersey Fair Play Act (P.L.2020, c.83).

Key Provisions

1) Definitions
- Introduces and defines “related entity” to include entities such as auxiliary services corporations, alumni associations, foundations related to a four-year institution, or any subsidiary or affiliated entity.

2) NIL Compensation
- Four-year institutions shall not prohibit a student-athlete from earning compensation for the use of their name, image, or likeness (NIL).
- Institutions or related entities may contract directly with student-athletes to provide NIL compensation.
- Age-based limit: student-athletes under 21 may not earn NIL compensation if the compensation is connected to alcohol, tobacco/electronic smoking products, or cannabis products.

3) Professional Representation
- Student-athletes may obtain professional representation related to NIL contracts or legal matters.
- Representations may be provided by licensed attorneys or athlete agents.
- Licenses and conduct: attorneys and athlete agents must act in fiduciary capacity; athlete agents must comply with the federal Sports Agent Responsibility and Trust Act (SARRA).

4) Public Disclosure
- NIL contracts entered into by student-athletes are not subject to open public records requests (FOIA-like disclosure) under the state Open Public Records Act.

5) Intercollegiate Athletic Oversight
- Athletic associations, conferences, or groups (including the NCAA) cannot penalize four-year institutions or related entities for activities permitted under the act.
- Violations may be addressed via civil action for damages, attorney fees, injunctive relief, and other legal remedies.

6) Education and Programming
- Institutions must provide annual programming/materials to all student-athletes on NIL topics (financial literacy, brand management, life skills, etc.).

7) Applicability
- Applies to four-year institutions that offer athletic scholarships (Division I and II institutions included).

8) Repeal
- Repeals P.L.2020, c.83 (the prior NIL framework under the NJ Fair Play Act).

Effective Date
- Effective immediately upon enactment.

Impact and Considerations

  • For Student-Athletes: Greater autonomy to monetize NIL, access to formal representation, and confidentiality of NIL contracts. Age-21 restriction moderates NIL deals tied to certain products.
  • For Institutions and Related Entities: New NIL contracting authority, fiduciary duties for representation, and potential exposure to injunctive relief and damages if challenged by governing bodies.
  • For Governing Bodies/Associations: Limitations on sanctions against institutions for NIL activities; potential litigation avenues if action is perceived as punitive for compliant NIL activity.
  • For Public Records: NIL contracts remain confidential, limiting public transparency of NIL deals.
  • Education/Compliance: Ongoing NIL education requirements in each academic year.

Overall, S 4439 creates a comprehensive NIL framework within New Jersey higher education, balancing student-athlete opportunities with protections for institutions, while repealing the prior statutory regime from 2020.

Compiled from official sources — confirm details with the bill’s official record.

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