In this Sept. 16, photo, Gov. Gavin Newsom answers a question during a news conference in Sacramento, Calif. Newsom announced Monday, Sept. 30, he signed a law that would let athletes at California universities make money from their images, names or likenesses. The law also bans schools from kicking athletes off the team if they get paid. AP photo

California Gov. Gavin Newsom has signed legislation that would allow college athletes in California to hire agents and make money from endorsement deals.

State Sen. Kevin Parker, D-Brooklyn, wants to make New York the second state to pass such legislation. Parker introduced the “New York Collegiate Athletic Participation Compensation Act” in the state Senate on Sept. 18. Companion legislation has not yet been introduced in the state Assembly.

Parker’s legislation would also prevent New York colleges and universities from taking away scholarships or eligibility from any athlete making money from endorsements while allowing the players to use an attorney or agent for business deals without punishment.

Community colleges are exempt from Parker’s proposal, though the law would establish a Community College Athlete Name, Image and Likeness Working Group within the State University of New York. That working group will examine and review existing SUNY bylaws regarding the use of a college athlete’s name, image and likeness for compensation. That group’s recommendations are due to the state Legislature and governor by July 1, 2020.

“And with the way the current laws are set up, student athletes tend to make early exits from colleges to the NFL, NBA, or other professional sports league in hopes of making a large profit to provide for their families. Often times having to return to get a degree later in their career or after,” Parker wrote in his legislative justification.

“This legislation is not saying that college student athletes should be millionaires but allows them to profit alongside their colleges and universities off their names and images, provides for them if they should become injured, and offers them a percentage of the profits made from fans and family paying to cheer them on.”

If enacted, New York’s law would take effect Jan. 1, 2023. In addition to California and New York, two lawmakers in South Carolina have already announced plans to introduce similar legislation.

CALIFORNIA’S LAW

Much like Parker’s proposal, California’s law applies to students at both public and private universities in the state and covers all sports, though the big money to be made is in football and basketball. The law bars schools from kicking athletes off the team if they get paid. It does not apply to community colleges and prohibits athletes from accepting endorsement deals that conflict with their schools’ existing contracts. California’s law will take effect in 2023 pending any potential legal challenges.

“Other college students with a talent, whether it be literature, music, or technological innovation, can monetize their skill and hard work,” Newsom said, according to the Associated Press. “Student athletes, however, are prohibited from being compensated while their respective colleges and universities make millions, often at great risk to athletes’ health, academics and professional careers.”

NCAA RESPONSE AND THE FUTURE

The NCAA, which had asked Newsom to veto the bill, responded by saying it will consider its “next steps.” It did not elaborate.

The NCAA, which has 1,100 member schools and claims nearly a half-million athletes, said it is working to “make adjustments to NCAA name, image and likeness rules that are both realistic in modern society and tied to higher education.” But it said any such changes should be made at a national level through the NCAA, not through a patchwork of state laws.

Before the California law was signed, the NCAA warned that the law would give California universities an unfair recruiting advantage, which could prompt the association to bar them from competition. Powerhouses like the University of Southern California, UCLA, Stanford and the University of California, Berkeley, could find themselves banned.

If California schools are drummed out of college sports’ governing body, they could form a new organization, since membership in the NCAA is voluntary.

But Newsom said he doubts the NCAA will kick California schools out, because the economic consequences to the organization would be profound. “They can’t afford to do that,” he said. But the Pac-12 Conference, which includes the four powerhouse California schools, warned that the law “will lead to the professionalization of college sports and many unintended consequences related to this professionalism.”

It said that the measure could affect how California schools compete nationally, reduce opportunities for student athletes in Olympic sports and harm female competitors.

“All reforms must treat our student-athletes as students pursuing an education, and not as professional athletes,” the conference said.

The new law does not go so far as to allow colleges and universities to pay athletes directly for their play.

The NCAA has steadfastly refused to pay players in most cases. But a committee led by Ohio State Athletic Director Gene Smith and Big East Commissioner Val Ackerman is studying other ways players could make money. Its report is expected in October.

The NCAA does let some athletes accept money in some instances. Tennis players can accept up to $10,000 in prize money per year, and Olympians can accept winnings from their competitions.

Also, many schools pay players yearly cost-of-living stipends of $2,000 to $4,000.

The NCAA reported $1.1 billion in revenue in 2017.

The Associated Press contributed to this report.