The 4th option that they're suggesting only serves to open them up to lawsuits should they ever try to enforce the rule for CA players.
From Miller vs. NCAA, P 28:
'Under Brown-Forman, 476 U.S. at 579, 106 S.Ct. at 2084, when a state law directly regulates interstate commerce, it can generally be struck down without further inquiry. The Statute directly regulates interstate commerce and runs afoul of the Commerce Clause both because it regulates a product in interstate commerce beyond Nevada's state boundaries, and because it puts the NCAA, and whatever other national collegiate athletic associations may exist, in jeopardy of being subjected to inconsistent legislation arising from the injection of Nevada's regulatory scheme into the jurisdiction of other states. Because the Statute violates the Commerce Clause per se, we need not balance the burden on interstate commerce against the local benefit derived from the Statute.'
Replace Nevada with California and you've got the same issue. A state is not allowed to unilaterally make special statutory carve-out demands on a national organization.
They can say "hey universities, your student-athletes must be allowed to profit from their own likenesses." Totally within the state's power.
They can't say "hey, NCAA, screw your rules, we decided to make up our own for you and you have to deal with it."
https://openjurist.org/10/f3d/633/national-collegiate-athlet...
> By its terms, it regulates only interstate organizations, i.e., national collegiate athletic associations which have member institutions in 40 or more states.
Nevada made the mistake of specifically targeting interstate associations. California does not, so based on the reasoning in that decision the California law does not violate the Commerce Clause per se as the Nevada law did.
The NCAA engages in interstate commerce. California's bill requires that any organization that does business in California allow players in California to be paid. It is requiring the NCAA to provide a carve-out for California.
This is the exact same scenario, legally.
From the official digest of the bill at https://leginfo.legislature.ca.gov/faces/billTextClient.xhtm... :
The bill also would prohibit an athletic association, conference, or other group or organization with authority over intercollegiate athletics from preventing a postsecondary educational institution other than a community college from participating in intercollegiate athletics as a result of the compensation of a student athlete for the use of the student’s name, image, or likeness.
AFAICT this law would make the current NCAA bylaws illegal in California. Any California player who accepted an endorsement and was subsequently prevented from playing would be able to sue.