Oregon lawmakers are evaluating a bill that could prevent the NCAA and other governing bodies from imposing restrictions on Name, Image, and Likeness (NIL) payments to college athletes in the state.
House Bill 3694 has the backing of the University of Oregon’s athletic department, though Oregon State’s athletic director has raised concerns that parts of the bill could disrupt broader efforts to establish a more equitable NIL landscape.
“This legislation is essential for keeping Oregon at the forefront of NIL policy, ensuring our student-athletes have the resources and protections necessary to succeed,” said UO deputy athletic director Lisa Peterson during a recent hearing before the House Committee on Higher Education and Workforce Development. She urged lawmakers to support HB 3694 to maintain Oregon’s leadership in student-athlete rights.
Introduced by state Rep. John Lively, D-Springfield, the bill seeks to amend Oregon law so that athletes can receive NIL payments directly from their institutions following the resolution of the “House v. NCAA” lawsuit. The final hearing for that settlement is set for April 7.
If the settlement is approved, the NCAA and participating schools will follow a unified NIL framework, including a proposed $20.5 million annual cap per school for athlete compensation. The cap, primarily benefiting football programs, would be distributed across sports at each institution’s discretion.
However, parts of HB 3694 could conflict with the salary cap, potentially allowing schools with greater financial resources to exceed the $20.5 million limit. Legal experts suggest that, without federal legislation to enforce it, the House settlement framework may not be binding, as various state laws could create inconsistencies.
“The measure … prohibits associations, conferences, or other organizations from restricting institutions’ support of student-athletes’ economic rights,” according to an analysis from the Oregon Legislative Policy and Research Office.
An earlier draft of the bill included a provision barring the NCAA and conferences from requiring disclosure of student-athlete NIL contract details, which could have made tracking NIL deals difficult. This language was recently removed by Lively to prevent potential conflicts with the House settlement.
“The amendment ensures Oregon’s statute does not unintentionally block student-athletes from participating in the (House) settlement or create compliance challenges for institutions,” Lively explained to The Oregonian/OregonLive.
HB 3694 also restricts NIL deals from involving products or brands associated with alcohol, drugs, gambling, firearms, sexual entertainment, hate speech, violence, or other prohibited categories.
Still, some Oregon sports officials worry that the bill’s lack of NIL spending limits could create disparities.
“The cap in the House settlement exists for a reason,” said Oregon State athletic director Scott Barnes. “NIL has been chaotic over the past few years, and we’re hopeful the House settlement will bring some order. Schools need to adhere to the cap, and there must be strong enforcement to ensure compliance. That’s key to stabilizing the marketplace.”
Barnes is part of an NCAA committee working on a national NIL framework based on the House settlement. Schools with smaller budgets, like Oregon State, have raised concerns about unregulated NIL spending, which has led to competitive imbalances. The push for a national framework aims to address these disparities.
While Oregon has not disclosed its NIL spending, Ohio State’s athletic director revealed that the Buckeyes’ football program alone had a $20 million NIL budget last year.
Lisa Peterson testified in favor of HB 3694, alongside NIL attorney and former Oregon football player Max Forer. Oregon State gymnast Jade Carey also submitted a letter of support, though no representatives from OSU or other state schools have publicly voiced their positions.
“There are many bad actors in the NIL space looking to exploit student-athletes,” Carey wrote. “Allowing Oregon schools to directly compensate athletes for NIL use would reduce reliance on third parties who may not have their best interests in mind.”
A House committee work session on the bill is scheduled for Tuesday, where lawmakers could vote to advance it.
Ultimately, if Congress enacts a federal law aligned with the House settlement, portions of HB 3694 that contradict it could become void. Barnes noted that the Pac-12 will send representatives to Washington, D.C., to advocate for nationwide NIL legislation.
“We’re working to build a system with consistency and national standards,” Barnes said. “Any deviation weakens that effort. Without federal law, we risk repeating the past few years of inconsistent state laws creating different opportunities for different athletes.
“A federal bill that complements the settlement is critical to bringing stability to this chaotic marketplace.”
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