Bill Text: CA SB906 | 2023-2024 | Regular Session | Amended

California Senate Bill 906

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Collegiate athletics: student athlete compensation.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed) 2024-07-02 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 2). Re-referred to Com. on APPR. [SB906 Detail]

Download: California-2023-SB906-Amended.html

Amended IN Senate February 15, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 906

Introduced by Senator Skinner

January 04, 2024

~~An act to amend Section 67451 of the Education Code, relating to postsecondary education.~~ An act to amend Section 67456 of the Education Code, relating to collegiate athletics.

LEGISLATIVE COUNSEL'S DIGEST

SB 906, as amended, Skinner. ~~Student Athlete Bill of Rights.~~ Collegiate athletics: student athlete compensation.

Existing law prohibits California postsecondary educational institutions, and every athletic association, conference, or other group or organization with authority over intercollegiate athletics from (1) providing a prospective student athlete with compensation in relation to the athlete’s name, image, likeness, or athletic reputation, (2) preventing a student participating in intercollegiate athletics from earning compensation as a result of the use of the student’s name, image, likeness, or athletic reputation, and (3) preventing a student participating in intercollegiate athletics from obtaining professional representation in relation to contracts or legal matters. Existing law prohibits an athletic association, conference, or other group or organization with authority over intercollegiate athletics from preventing a postsecondary educational institution from participating in intercollegiate athletics as a result of the compensation of a student athlete for the use of the student’s name, image, likeness, or athletic reputation.
This bill would require an entity that provides compensation or any item of value or service to a student athlete or the student athlete’s immediate family pursuant to the above provisions to disclose to the student athlete’s postsecondary educational institution certain information, including, among other information, the amount of compensation paid and the value of any item or service provided to the student athlete or the student athlete’s immediate family. The bill would require the postsecondary educational institution to make that information publicly available. The bill would also require a postsecondary educational institution that provides material support or services to a student athlete in relation to the athlete receiving compensation or items of value or services for the use of the athlete’s name, image, likeness, or athletic reputation to publicly disclose the total value of that material support, as provided. To the extent the bill would impose additional duties on community college districts, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law establishes a Student Athlete Bill of Rights, which, among other things, provides for the protection of athletic scholarships for student athletes and requires certain institutions of higher education to pay the premiums for specified student athletes for insurance for claims resulting from their participation in those institutions’ athletic programs. Existing law defines terms for purposes of the provisions granting these rights to student athletes.
~~This bill would make nonsubstantive changes to certain of these definitions.~~

Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES

The people of the State of California do enact as follows:

SECTION 1.

Section 67456 of the Education Code is amended to read:

67456.

(a) (1) A postsecondary educational institution shall not uphold any rule, requirement, standard, or other limitation that prevents a student of that institution participating in intercollegiate athletics from earning compensation as a result of the use of the student’s name, image, likeness, or athletic reputation. Earning compensation from the use of a student’s name, image, likeness, or athletic reputation shall not affect the student’s scholarship eligibility.

(2) An athletic association, conference, or other group or organization with authority over intercollegiate athletics, including, but not limited to, the National Collegiate Athletic Association, shall not prevent a student of a postsecondary educational institution participating in intercollegiate athletics from earning compensation as a result of the use of the student’s name, image, likeness, or athletic reputation.

(3) An athletic association, conference, or other group or organization with authority over intercollegiate athletics, including, but not limited to, the National Collegiate Athletic Association, shall not prevent a postsecondary educational institution from participating in intercollegiate athletics as a result of the compensation of a student athlete for the use of the student’s name, image, likeness, or athletic reputation.

(b) A postsecondary educational institution, athletic association, conference, or other group or organization with authority over intercollegiate athletics shall not provide a prospective student athlete with compensation in relation to the athlete’s name, image, likeness, or athletic reputation.

(c) (1) A postsecondary educational institution, athletic association, conference, or other group or organization with authority over intercollegiate athletics shall not prevent a California student participating in intercollegiate athletics from obtaining professional representation in relation to contracts or legal matters, including, but not limited to, representation provided by athlete agents or legal representation provided by attorneys.

(2) Professional representation obtained by student athletes shall be from persons licensed by the state. Professional representation provided by athlete agents shall be by persons licensed pursuant to Chapter 2.5 (commencing with Section 18895) of Division 8 of the Business and Professions Code. Legal representation of student athletes shall be by attorneys licensed pursuant to Article 1 (commencing with Section 6000) of Chapter 4 of Division 3 of the Business and Professions Code.

(3) Athlete agents representing student athletes shall comply with the federal Sports Agent Responsibility and Trust Act, established in Chapter 104 (commencing with Section 7801) of Title 15 of the United States Code, in their relationships with student athletes.

(d) A scholarship from the postsecondary educational institution in which a student is enrolled that provides the student with the cost of attendance at that institution is not compensation for purposes of this section, and a scholarship shall not be revoked as a result of earning compensation or obtaining legal representation pursuant to this section.

(e) (1) A student athlete shall not enter into a contract providing compensation to the athlete for use of the athlete’s name, image, likeness, or athletic reputation if a provision of the contract is in conflict with a provision of the athlete’s team contract.

(2) A student athlete who enters into a contract providing compensation to the athlete for use of the athlete’s name, image, likeness, or athletic reputation shall disclose the contract to an official of the institution, to be designated by the institution.

(3) An institution asserting a conflict described in paragraph (1) shall disclose to the athlete or the athlete’s legal representation the relevant contractual provisions that are in conflict.

(f) A team contract of a postsecondary educational institution’s athletic program shall not prevent a student athlete from using the athlete’s name, image, likeness, or athletic reputation for a commercial purpose when the athlete is not engaged in official team activities. It is the intent of the Legislature that this prohibition shall apply only to contracts entered into, modified, or renewed on or after ~~the enactment of this section.~~ September 1, 2021.

(g) (1) Any entity that provides compensation or any item of value or service to a student athlete or the student athlete’s immediate family pursuant to this section shall disclose to the student athlete’s postsecondary educational institution all of the following information:
(A) The amount of compensation and the value of the item or service provided to the student athlete or the student athlete’s immediate family.
(B) The athletic team for which the student athlete currently plays or the team for which it is anticipated the student athlete will play.
(C) The student athlete’s gender.
(D) The total amount of compensation and the value of the items and services provided to all student athletes at the postsecondary institution each academic year disaggregated by athletic sport and gender.
(2) The postsecondary educational institution shall make the information received pursuant to paragraph (1) publicly available.
(h) (1) A postsecondary educational institution that provides material support or services to a student athlete in relation to the athlete receiving compensation or items of value or services for the use of the athlete’s name, image, likeness, or athletic reputation shall make the following information publicly available:
(2) The total value of the material support or services provided to student athletes in relation to those athletes receiving compensation or items of value or services for the use of the athlete’s name, image, likeness, or athletic reputation each academic year disaggregated by athletic sport and gender.
~~(g)~~

(i) For purposes of this section, “postsecondary educational institution” means any campus of the University of California, the California State University, the California Community Colleges, an independent institution of higher education, as defined in Section 66010, or a private postsecondary educational institution, as defined in Section 94858.

~~(h)This section shall become operative on September 1, 2021.~~

SEC. 2.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SECTION 1.Section 67451 of the Education Code is amended to read:
67451.
~~For purposes of this part:~~
~~(a)“Athletic association” means an organization that is responsible for governing intercollegiate athletic programs.~~
~~(b)“Athletic program” means an intercollegiate athletic program at an institution of higher education within the meaning of subdivision (d).~~
(c)“Graduation success rate” means the percentage of student athletes who graduate from an institution of higher education within six years of initial enrollment at that institution, excluding outgoing transfers in good academic standing with athletic eligibility remaining, and including incoming transfers. The rate shall be calculated by combining the rates of the four most recent classes that are available for the institution of higher education in the exact manner as the rate is calculated under National Collegiate Athletic Association rules.
(d)“Institution of higher education” means a campus of the University of California or the California State University, or a four-year private university located in California, that maintains an intercollegiate athletic program.
(e)“Media rights” means the rights to media coverage of intercollegiate athletics included in contracts that are entered into by intercollegiate athletic conferences and television networks and that generate monetary payments to individual institutions of higher education.
~~(f)“Office for Civil Rights” means the Office for Civil Rights within the United States Department of Education.~~
(g)“Student athlete” means any college student who participates in an intercollegiate athletic program of an institution of higher education, and includes student athletes who participate in basketball, football, and other intercollegiate sports.