Summary — HB 4643 (2025)
Title: Higher education: other; requirements regarding compensation of college athletes; modify. (Amends 2020 PA 366 — MCL 390.1731 et seq.; adds sections; repeals secs. 9 & 11.)
Status / Timeline
- Introduced: March 12, 2025; House introduced version filed June 12, 2025.
- Passed both chambers April–May 2025; enrolled and sent to Governor May 22, 2025.
- Signed by Governor: June 20, 2025.
- Effective: Immediately upon signing (June 20, 2025).
- Companion: SB 1640.
Purpose and intent
HB 4643 revises and expands Michigan’s 2020 law protecting college athletes’ right to be compensated for use of their name, image, and likeness (NIL). The bill clarifies and strengthens student-athlete protections, limits institutional and athletic-association control over NIL activities, and sets boundaries on institutional involvement in NIL transactions.
Key provisions and changes
- Expanded definitions: clarifies “NIL” (name, image, or likeness) and defines “postsecondary educational institution” as any public or private degree-granting institution in Michigan that receives state or federal funding.
- Prohibitions on institutions:
- May not enforce rules, standards, or penalties that bar a student from full athletic participation because the student earns NIL compensation.
- May not revoke or reduce athletics grants-in-aid or stipend scholarships based on lawful NIL earnings (grants-in-aid/stipends explicitly not treated as NIL compensation).
- May not comply with or report NIL agreements/compensation to athletic associations, conferences, or organizations (e.g., NCAA).
- May not serve as an athlete agent or collect commissions if arranging or assisting with NIL agreements; institutions may help arrange NIL deals but cannot act as an agent or take commission.
- May not own or control group NIL licensing rights for team video games, jerseys, or trading cards.
- Restrictions on athletic associations/conferences:
- May not prevent students or institutions from fully participating in athletics due to NIL compensation or representation.
- May not accept complaints, open investigations, impose penalties, demand reporting, or otherwise take adverse action for activities protected by the act.
- May not require institutions to take actions the act prohibits.
- Representation and advisors:
- Students may obtain professional representation (athlete agents, financial advisors, attorneys) for NIL contracts and legal matters.
- Representation must be provided by persons licensed in Michigan, as applicable.
- Institutions and associations may not interfere with lawful communications between athletes and agents outside mandatory athletic activities.
- Enforcement, additions, repeals:
- The bill amends multiple sections of 2020 PA 366, adds new sections (7a, 8a, 12, 13), and repeals sections 9 and 11 of the prior act. (Text indicates additional procedural/remedy provisions are added, though full text of those sections is not provided in the excerpt.)
Who is affected
- Current and prospective college athletes in Michigan (increased freedom to monetize NIL and obtain licensed representation).
- Postsecondary educational institutions (public and private) — restrictions on oversight, reporting, agent activities, and licensing of athletes’ group rights.
- Athletic associations/conferences (e.g., NCAA) — limited ability to investigate or penalize NIL activities by Michigan students or institutions.
- Athlete agents, attorneys, financial advisors, apparel/licensing companies, and third parties engaging in NIL deals in Michigan.
Potential implications
- Strengthens state-level protections for student NIL activities and limits institutional/association enforcement authority over NIL in Michigan.
- Creates possible conflicts with national athletic association rules; the law prohibits cooperation with outside investigations or reporting that would impede protected activities.
- Preserves athletic scholarships while allowing athletes to earn compensation from NIL deals and to secure licensed representation.
For full legal detail, consult the enacted bill text which amends 2020 PA 366 (MCL 390.1731 et seq.) and the newly added/repealed sections.
