Requires public institution of higher education to provide alternative scholarship to student-athlete who loses athletic scholarship due to injury.

This bill requires New Jersey public colleges and universities to provide an alternative scholarship to student-athletes who lose their athletic scholarship due to an injury or illness that makes them medically ineligible to compete. Specifically, if a school rescinds or fails to renew an athletic scholarship because of an "incapacitating injury or illness" (defined as one directly related to athletics and confirmed by the school's medical staff), the institution must offer a replacement scholarship equal in value for the remainder of the student's undergraduate degree program or up to five years total (including the original scholarship period), whichever is shorter. It directly affects student-athletes at public New Jersey institutions who become unable to compete due to athletic-related injuries. The bill takes effect immediately upon enactment.