As I am now a lawyer, I am looking for those here that are to help me with a question. What exactly does this California bill do? AS far as I know, it is not currently illegal (from a legal standpoint, not an NCAA standpoint) for a player to profit from their likeness. It only becomes an issue with the NCAA as far as their eligibility to compete in a sport for a member institution. From what I can tell, this is really a meaningless bill. I don't know of any local or federal laws that would currently prohibit a player from doing that now. But if they are caught, they are ruled ineligible by the NCAA. I don't think a bill passed in California can tell the NCAA they have to change their rules.
Please correct me if I'm wrong here.
Honestly, not trying to be a jerk at all, but I'd suggest you go back and re-read this thread in its entirety, because we've discussed this from a few angles. And the other thread that bwar started also has some interesting nuggets.
To sum up, though, you are correct that the state of California can't dictate the NCAA rules. It can, however, control the actions of the schools within its state boundaries. This law is saying that universities within the borders of California-- UCLA, for example-- cannot deny any athlete from getting compensation from a 3rd party for using his image and likeness in endorsements, for his own profit. So although it's against NCAA rules, UCLA can't deny its own student athletes this benefit. Even if UCLA wanted to, they're in violation of California state law if they attempt to comply with the NCAA rules. So UCLA has to accept athletes that are being paid 3rd party endorsements, they are legally bound to do so.
The logical progression, then, is that either the PAC (because not all PAC members are in California), or the NCAA itself, would have to suspend a California school for violating and NCAA policy. At that point, though, the PAC or the NCAA are entering dangerous territory and exposing themselves to antitrust prosecution, among other potential problems. The NCAA can posture and bluster as much as it wants, but there's no way they actually want to end up in court against the state of California, or the Federal government.
Add to it that other states are considering similar legislation and the NCAA's footing becomes even more precarious. I really don't see how they're going to survive this if they insist on maintaining the status quo.