The University of Colorado and other in-state higher education institutions are now allowed to provide financial compensation for student-athletes.

Last Friday, Gov. Jared Polis signed into law House Bill 25-1041, regarding student-athlete name, image or likeness (NIL).

Co-sponsored by Rep. Lesley Smith, a former CU-Boulder regent, and senators James Coleman and Judy Amabile, the bill passed through the House and Senate by an overwhelming majority before being signed into law by Polis.

“As we enter a new era of collegiate athletics, House Bill 1041 gives Colorado universities the ability to meet the demands of a rapidly changing environment while providing essential protection for our student-athletes,” CU athletic director Rick George said in a statement provided to the Daily Camera. “My thanks to Representative Smith, Senate Leader Coleman, and Senator Amabile for their leadership on this important bill and to Governor Polis for keeping Colorado a national leader when it comes to Name, Image, and Likeness rights for student-athletes.”

Although NCAA rules have prohibited schools and athletic associations from directly paying student-athletes, U.S. District Judge Claudia Wilken granted preliminary approval of a settlement in the House vs. NCAA antitrust case in October. A final approval is expected from Wilken next week.

Once the House vs. NCAA settlement is approved, NCAA schools that opt in may distribute up to $20.5 million during the 2025-26 school year to their student-athletes through revenue sharing. The Big 12 Conference has mandated that all of its schools, including CU, opt in to the settlement. HB 1041 becoming a law allows CU to comply with the NCAA settlement.

“I am signing this bill today to bring Colorado statute in line with the anticipated House v. NCAA settlement agreement (House Settlement), which is expected to be finalized and court-approved this spring, regarding the compensation of student-athletes for their name, image, or likeness,” Polis said in a letter announcing his signature on the bill.

“Our student-athletes should have the freedom to contract and develop their careers, and our institutions of higher education should work to increase and retain top talent while supporting athletes in all aspects of their careers. I support college athletics and recognize Colorado’s esteemed institutions of higher education must remain a competitive destination, whether that be for athletics, academics, our world class outdoors, or other pursuits.”

Throughout the HB 1041 process, there was overwhelming bipartisan support for student-athletes receiving compensation, but also opposition and discussion from some who disagree with a Colorado Open Records Act (CORA) exemption in the bill.

Every Jan. 15, beginning in 2026, each institution must provide a report of how the money was spent, with the data including gender and sport-based spending. Specific names of athletes and financial details of the contracts will not be disclosed, however.

CU has argued that the agreements should be sealed in part because student-athletes are not identified as university employees. In addition, the money distributed to student-athletes through revenue sharing will come from media rights, and ticket and merchandise sales and not from state funds or tuition.

Legislators expressed concerns about the CORA exemption throughout the process, as did Polis in his announcement of the new law. The CORA exemption remained on the bill, however.

“While I support the bill and its goals, there are issues regarding transparency that were not addressed during the legislative process that I would like to see addressed in the future,” Polis wrote. “In particular, I have concerns about the bill’s new Colorado Open Records Act (CORA) exception regarding student-athlete contracts. While the bill’s exception is narrowly tailored, it follows an unfortunate trend of legislative proposals that ultimately impede access to official records that are arguably within the public’s interest to view.

“These exceptions move transparency in the wrong direction and any other proposals that further prevent or delay public access to information will be carefully reviewed. I encourage my colleagues in the General Assembly to consider transparency across all public institutions and to balance legitimate reasons for exceptions with the public interest.”