Sen. Kennedy files bill in North Carolina Senate to support student-athletes’ NIL opportunities

A new bill filed by Sen. Kennedy seeks to improve student-athletes’ opportunities by clarifying NIL agreements and enabling institutions to provide financial support and education, according to the North Carolina State Senate.

The bill, filed as SB 563 on March 25 during the 2025 regular session, was formally listed with the short title: ‘The Michael Jordans of Tomorrow Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill, titled “The Michael Jordans of Tomorrow Act,” aims to enhance the competitiveness of student-athletes in North Carolina through clearer legislations and incentives related to Name, Image, and Likeness (NIL) agreements and direct compensation. It allows constituent institutions of The University of North Carolina to assist student-athletes in securing NIL agreements, facilitates partnerships, and authorizes institutions to allocate up to $20.5 million annually from athletics revenues for direct compensation to student-athletes. The bill also provides for a North Carolina NIL Advancement Fund for matching funds and allows high school students to enter NIL agreements, with provisions for financial literacy and parental consent for minors. Additionally, it establishes a North Carolina NIL Clearinghouse to facilitate education, review agreements, and provide State-endorsed NIL grants. The tax code is amended to allow deductions and credits for NIL compensation. The bill also mandates a legislative study on NIL revenue sharing, reporting findings by March 31, 2026. Most provisions become effective upon enactment, with tax amendments effective for taxable years beginning on or after January 1, 2026.

Of the three sponsors of this bill, Kandie D. Smith proposed the most bills (55) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Garrett graduated from the University of North Carolina at Greensboro in 2007 with a BSBA.

Garrett, a Democrat, was elected to the North Carolina State Senate in 2019 to represent the state’s 27th Senate district, replacing previous state senator Trudy Wade.