Senate Bill (SB) 248, Montana’s NIL bill, was signed into law by Governor Greg Gianforte on April 30, 2021 and is set to take effect on June 1, 2023.
Public and private colleges and universities in the state of Montana are prohibited from:
Preventing or restricting a student athlete from exercising the student athlete's right to earn compensation for the use of the student athlete’s name, image and likeness and to contract with and retain professional representation of an athlete agent
Penalizing or retaliating against a student athlete for exercising the student athlete's rights
Prohibiting a student athlete from participating in an intercollegiate sport for exercising the student athlete's rights
Imposing an eligibility requirement on a scholarship or grant that requires a student athlete to refrain from exercising the student athlete's rights
Providing a prospective or current student athlete compensation for use of the student athlete's NIL
The institution may:
Include provisions in scholarship agreements allowing the school to use the athlete's NIL
Prohibit the use of an athlete's NIL on school property, at school functions, or in any advertising material distributed or placed on school property
Serve as an agent for the athlete to manage any contract using an athlete's NIL. [My emphasis]
The bill does not prohibit an institution from establishing or enforcing a conduct code that is applicable to all students enrolled at the unit.
Student athletes may not enter into a contract that provides NIL-related compensation if terms of the contract conflict with the student athlete’s team rules or with terms of a contract between the student athlete’s institution and a third party. The team rules or a contract entered into between the institution and a third party may not prevent a student athlete from earning NIL-related compensation when not engaged in official team activities.
Student athletes must disclose NIL contracts to an official of the institution if the student athlete is a team member, or if the student athlete is not a team member, at the time the student athlete seeks to become a team member.