What You Need to Know About HB 1400

Here is what HB 1400 would mean for parents and high school student-athletes, in everyday language, assuming it becomes law.

HB 1400 is a proposal in the 2026 Mississippi legislative session to create the “Mississippi High School Student-Athlete NIL Protection Act.” It is not in effect today. If it passes, it would take effect July 1, 2026.

The bill applies to anyone enrolled in a Mississippi public or private high school who plays interscholastic athletics.

You can earn NIL money, but it cannot be “pay for play.”

The bill says a student-athlete may earn compensation for NIL, but only if the money is not tied to athletic performance, stats or participation, and it is not offered to get you to enroll at a particular school or transfer to a particular school. It also says plainly that nothing in the act permits “pay for play.” In normal terms, you can do endorsements and paid promotions, but nobody can legally pay you “because you scored 20” or “if you commit here.”

It does not rewrite transfer rules or eligibility rules.

The bill says it does not modify or suspend existing transfer rules, eligibility requirements or residency requirements for Mississippi high school athletics. It also says doing NIL activities by itself cannot be the reason to approve or deny a transfer and cannot be used by itself to make someone eligible or ineligible. That means NIL is not supposed to be treated as a loophole or a penalty.

Every NIL deal must be in writing and, for minors, a parent has to sign.

The bill requires that any NIL contract be reduced to writing and signed by the student-athlete and the student-athlete’s parent or legal guardian. If a student-athlete is under 18 and signs an NIL deal without parental or guardian consent, the contract is “void and unenforceable,” which is legal language for “it does not count and cannot be enforced.”

How the money works, including the $10,000 rule.

The bill creates a simple split. If the total NIL compensation paid to the student-athlete during a calendar year is $10,000 or less, it can be paid directly to the student-athlete or to the parent or legal guardian. If the total NIL compensation exceeds $10,000 in a calendar year, then every dollar above $10,000 must be deposited into a restricted trust account established for the benefit of the student-athlete. In plain terms, the first $10,000 can be paid normally, and the extra must be held back in a protected account.

When the trust money becomes available.

The bill says money held in that restricted trust cannot be released until the student-athlete graduates from high school or turns 18, whichever happens first. It also says the trust is established by the parent or legal guardian, it generally prohibits withdrawals unless a court orders it or the act allows it, and it can be subject to court supervision if needed.

What schools and coaches are not allowed to do.

Under the bill, no school, school district, coach or school employee may arrange, negotiate or secure NIL contracts on behalf of a student-athlete. They also cannot receive compensation connected to the student-athlete’s NIL activities. The bill does allow general financial literacy education. So a coach can educate, but cannot play agent or broker the deal.

What the MHSAA & MAIS role would be.

A copy of any NIL contract must be disclosed to the Mississippi High School Activities Association (MHSAA) and Mid-South Association of Independent Schools (MAIS) within a reasonable time after it is signed. At the same time, the bill says the MHSAA & MAIS have no administrative, investigative, enforcement or regulatory duties related to NIL compensation under this act, and that disclosure is informational only and does not mean approval or oversight. It also says any conflicting MHSAA & MAIS rule is preempted to the extent of the conflict, and the MHSAA & MAIS cannot declare a student ineligible solely for participating in NIL activities allowed by the act.

Translation: you still have to share the contract, but this bill does not turn the MHSAA into the NIL police.

Where disputes would go if something goes wrong.

If there is a dispute under an NIL contract, the bill says it must be resolved exclusively in Mississippi state courts.

What parents should do if this becomes law.

Treat every deal like a real contract even if the dollar amount feels small. Make sure it is written, make sure you as the parent or guardian sign if your athlete is under 18, and keep careful track of total NIL earnings across the calendar year so you know when the trust requirement kicks in. Also be alert to “red flag” language like payment tied to performance, payment conditioned on switching schools or anyone pressuring you to keep the deal off-paper. Those are the situations most likely to create eligibility, legal or reputational problems even if the athlete did nothing wrong.

Examples to help understand a little better:

If a local business pays you $300 to appear in a social media post wearing their shirt, that is the kind of NIL deal this bill is built to allow, as long as it is not tied to your stats and not used to push you to a certain school or transfer.

If someone offers, “We will pay you $2,000 for every touchdown,” that conflicts with the “not contingent on performance or statistics” rule.

If a club or booster-type group says, “We will pay you if you move schools,” that is exactly what the bill tries to block by prohibiting inducements to enroll or transfer.

If you have multiple small deals and the total for the calendar year ends up at $14,000, the first $10,000 can be paid directly, and the remaining $4,000 must go into the restricted trust.