FISCAL NOTE

House Bill 404 as substituted, amended and reported by the Committee on State Government establishes the six-member Alabama Collegiate Athletics Commission to make rules and recommendations, and publicly report the same, related to student athletes earning compensation for the use of the student athlete’s name, image, or likeness. This bill provides that a violation of a commission rule shall be punishable by a civil penalty of up to $1,000, which could increase deposits presumably to the State General Fund by an undetermined amount dependent upon the number of violations and the penalty assessed.

Further, this bill requires each postsecondary education institution to conduct a financial literacy and life skills programming for student athletes which would increase the obligations of each institution by an undetermined amount, which could be offset, in whole or in part, by any compensation received by the institution for granting a student athlete permission to be compensated for use of any registered or licensed designs of the institution. Further, this bill could increase the obligations of postsecondary education institutions by an undetermined amount dependent upon (1) the number of violations reported and (2) the cost to conduct investigations. This bill could increase the obligations of the Alabama Athlete Agents Commission by an undetermined amount dependent upon (1) the number of reports of violations received and (2) the cost to investigate each report.

In addition, this bill could increase receipts to the State General Fund and municipal general funds from fines; increase receipts to the State General Fund, county general funds, municipal general funds, and other funds to which court costs are deposited; and could increase the obligations of the State General Fund, local jails, the district attorneys, the Department of Corrections, community corrections and the Bureau of Pardons and Paroles by an undetermined amount dependent upon the number of persons charged with and convicted of the offenses provided by this bill and the penalties imposed.