The California state senate unanimously passed a bill that will allow students to be compensated for use of their names, images or likenesses. The bill would not allow schools to directly pay athletes, but would permit students to receive compensation from outside sources — for example, from a video game company or for signing autographs or memorabilia. The bill is now sitting on Gov. Newsom's desk and has 30 days to be either signed or veto'd.
The NCAA sent a letter to the legislature stating "If the bill becomes law and California's 58 NCAA schools are compelled to allow an unrestricted name, image and likeness scheme, it would erase the critical distinction between college and professional athletics and, because it gives those schools an unfair recruiting advantage, would result in them eventually being unable to compete in NCAA competitions."
If passed, it doesn't take effect until Jan. 1st, 2023.