Amateur athlete income provisions, unemployment tax rate changes approved

Lawmakers passed a bill April 11 that changes state law regarding name, image and likeness income opportunities for student athletes and authorizes a temporary reduction in the state’s unemployment tax rate.

LB1393, sponsored by Blair Sen. Ben Hansen on behalf of Gov. Jim Pillen, updates provisions of state law governing NIL activity for student athletes, which involves the use of an individual’s name, image or likeness for commercial or promotional purposes.

Under the bill, Nebraska universities may assist student athletes with creating, identifying, facilitating or supporting NIL activities. A university may compensate a student athlete for the use of their name, image or likeness only if allowed by a college athletic association policy, court order or settlement agreement.

Among other provisions, the measure also clarifies that NIL compensation of a student athlete does not inherently make the athlete an employee of the institution.

In addition, LB1393 changes the allowable yield factor when determining the combined tax rate under the state’s Unemployment Security Law and lowers the rate by 5% from Jan. 1, 2025, through Dec. 31, 2029.

The bill passed on a 42-0 vote and takes effect immediately.