What's happening
This bill requires large endorsement payments to high school athletes under 18 to be put in a trust.
Why it matters
Impacts high school athletes under 18 across New York State. This bill specifically targets minor student-athletes who are at least sophomores, including those who may go on to play college sports, meaning it could affect any high school with athletes signing endorsement deals, not just elite or urban schools.
Introduces new financial protections for families. For endorsement or NIL (name, image, likeness) deals exceeding $10,000 annually, the law requires that the excess be placed in a court-supervised trust account, shielding young athletes’ earnings from potential misuse by adults or guardians until the athlete graduates or turns 18.
Establishes new state oversight and procedures. The bill mandates the Department of Financial Services to develop regulations for these trusts, creating both new administrative responsibilities and legal pathways for families or courts to intervene, which could drive more uniformity, but also more complexity, in how large NIL payments to minors are managed statewide.
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Who cares
High School Student-Athletes (Minors) and Their Families
This bill directly impacts high school athletes under age 18 who earn money from their name, image, and likeness (NIL), as well as their parents or guardians who may be responsible for establishing and managing trust accounts.
Colleges and College Athletic Programs
Colleges recruiting high school athletes will need to understand and comply with these new rules regarding compensation and trust requirements for underage recruits.
Businesses and Sponsors Engaging with Minor Athletes
Companies or individuals entering NIL deals with high school athletes must be aware of the payment thresholds and the requirement for restricted trust accounts for higher compensation.
Financial Institutions and Legal Professionals
Banks and legal advisors involved in trust account setup, management, and court supervision for minor athletes will have new responsibilities and potential business opportunities related to these accounts.
Headline styles
Protect Minor Athlete Earnings
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 22
No co-sponsors yet.
History
- Referred to higher education
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
11717
IN ASSEMBLY
September 16, 2026
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 studentathlete's name, image and likeness
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 6438-c of the education law is amended by adding a new subdivision 9 to read as follows:
9. (a) The provisions of this subdivision apply to a student-athlete who has completed at least their sophomore year of high school or international equivalent, and is eligible, or may in the future be eligible, to attend a college and participate in intercollegiate athletics. The provisions of this subdivision shall not apply to student-athletes eighteen years of age or older.
(b) If total compensation earned from the use of a student-athlete's name, image and likeness paid to a student-athlete during a calendar year is ten thousand dollars or less, such compensation may be paid directly to the student-athlete or the parent or legal guardian of such student-athlete.
(c)(i) If total compensation earned from the use of a studentathlete's name, image and likeness paid to a student-athlete during a calendar year exceeds ten thousand dollars, all amounts in excess of ten thousand dollars shall be deposited into a restricted trust account established for the benefit of the student-athlete.
(ii) The trust account described in this paragraph shall be administered in a manner consistent with New York state law applicable to settlement funds involving a minor, except as modified by this subdivision.
(iii) Funds held in trust as described in this subparagraph shall not be released until the student-athlete graduates from high school or attains the age of eighteen, whichever occurs first.
(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) be established by the parent or legal guardian of the student-athlete;
(B) prohibit withdrawals except by court order or as provided herein; and
(C) be subject to judicial supervision upon petition if necessary.
(d) The superintendent of financial services shall add, amend and/or repeal any rule or regulation necessary for the implementation of this subdivision on its effective date.
§ 2. This act shall take effect on the first of July next succeeding the date upon which it shall have become a law and shall apply to all contracts entered into by any student-athlete on and after such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.