The “Fair Pay to Play Act,” which allows California’s student-athletes to profit off the use of their name, image or likeness, was signed into law on Monday by Governor Gavin Newsom.

Senate Bill 206 (SB 206), co-sponsored by Senator Scott Wilk, R-Santa Clarita, previously passed both the State Assembly and the Senate unanimously before it made its way to the governor’s desk.

Newsom took the opportunity to join LeBron James on the set of his HBO show, “The Shop,” for an online-only episode to officially sign the bill and discuss its importance.

I’m so incredibly proud to share this moment with all of you. @gavinnewsom came to The Shop to do something that will change the lives for countless athletes who deserve it! @uninterrupted hosted the formal signing for SB 206 allowing college athletes to responsibly get paid. pic.twitter.com/NZQGg6PY9d

— LeBron James (@KingJames) September 30, 2019

Joining James and Newsom to discuss the legislation were James’ business partner, Maverick Carter; his agent, Rich Paul; WNBA player Diana Turasi; former UCLA basketball player Ed O’Bannon; and former UCLA gymnast Katelyn Ohashi.

“This is the beginning of a national movement – one that transcends geographic and partisan lines,” said Newsom in a statement. “Collegiate student-athletes put everything on the line – their physical health, future career prospects and years of their lives to compete. Colleges reap billions from these student-athletes’ sacrifices and success, but, in the same breath, block them from earning a single dollar. That’s a bankrupt model – one that puts institutions ahead of the students they are supposed to serve. It needs to be disrupted.”

Related: Pay To Play Bill: California College Student-Athletes Could Be Financially Compensated

The bill does not allow schools to pay players themselves, but instead allows students to utilize the use of their image or name, according to officials.

These opportunities can range from major endorsement deals for the top football and basketball players or other smaller opportunities, such as paid autographs or using their own image to promote youth training camps.

“LeBron James is right — this is a game-changer for college athletes. California will no longer tolerate the NCAA — which is a billion-dollar industry — treating our student-athletes like they are chattel,” Wilk said. “These young men and women deserve every opportunity to benefit financially from their hard work, just like any other talented young person.”

However, the bill does not allow student-athletes to sign endorsements that conflict with their school’s already existing endorsements.

Additionally, the bill allows student-athletes to obtain professional representatives licensed by the state in relation to their participation in intercollegiate athletics.

The bill also protects students from having their scholarships revoked for receiving income for their work and prevents the NCAA from enforcing rules that prevent student-athletes from receiving compensation or banning California universities from intercollegiate sports if their athletes sign endorsement deals.

Along the journey to passage, the bill faced a number of opponents in the form of the NCAA, California universities and colleges, and boosters, and it is expected to face legal challenges from the NCAA and others, according to officials.

While SB 206 is officially law, it does not take effect until Jan. 1, 2023 in an effort to allow the government and the NCAA to navigate the unfamiliar area of paying college athletes.

The bill is available in its entirety here.

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