Bill Text: IL SB2338 | 2021-2022 | 102nd General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Creates the Student-Athlete Endorsement Rights Act. Sets forth definitions, including "compensation", "student-athlete", and "postsecondary educational institution". Sets forth provisions concerning the conditions in which a student-athlete may and may not earn compensation for the use of the student-athlete's name, image, likeness, or voice while enrolled at a postsecondary education institution. Provides that an institution may impose reasonable limitations on the dates and time that a student-athlete may participate in endorsement, promotional, social media, or other activities related to the license or use of the student-athlete's name, image, likeness, or voice. Provides, among other prohibitions, that no institution, athletic association, conference, or other group or organization with authority over intercollegiate athletic programs shall uphold any contract, rule, or regulation that prevents a student-athlete from earning compensation as result of the use the student-athlete's name, image, likeness, or voice. Provides that a student-athlete's financial aid, awards, and other benefits may not be revoked, reduced, or the terms and conditions altered as a result of the student-athlete receiving compensation. Sets forth other requirements, limitations, and prohibitions on the use of a student-athlete's name, image, likeness, or voice. Sets forth provisions concerning agents, publicity rights, and third party licensees. Sets forth other provisions concerning student-athlete contracts, endorsements, or the promotion of products or services. In liability provisions, provides that no postsecondary educational institution shall be subject to a claim of any kind under the Act. Effective immediately or on July 1, 2021, whichever is later.
Spectrum: Strong Partisan Bill (Democrat 17-1)
Status: (Passed) 2021-10-19 - Sponsor Removed Sen. Jacqueline Y. Collins [SB2338 Detail]
Download: Illinois-2021-SB2338-Enrolled.html
Bill Title: Creates the Student-Athlete Endorsement Rights Act. Sets forth definitions, including "compensation", "student-athlete", and "postsecondary educational institution". Sets forth provisions concerning the conditions in which a student-athlete may and may not earn compensation for the use of the student-athlete's name, image, likeness, or voice while enrolled at a postsecondary education institution. Provides that an institution may impose reasonable limitations on the dates and time that a student-athlete may participate in endorsement, promotional, social media, or other activities related to the license or use of the student-athlete's name, image, likeness, or voice. Provides, among other prohibitions, that no institution, athletic association, conference, or other group or organization with authority over intercollegiate athletic programs shall uphold any contract, rule, or regulation that prevents a student-athlete from earning compensation as result of the use the student-athlete's name, image, likeness, or voice. Provides that a student-athlete's financial aid, awards, and other benefits may not be revoked, reduced, or the terms and conditions altered as a result of the student-athlete receiving compensation. Sets forth other requirements, limitations, and prohibitions on the use of a student-athlete's name, image, likeness, or voice. Sets forth provisions concerning agents, publicity rights, and third party licensees. Sets forth other provisions concerning student-athlete contracts, endorsements, or the promotion of products or services. In liability provisions, provides that no postsecondary educational institution shall be subject to a claim of any kind under the Act. Effective immediately or on July 1, 2021, whichever is later.
Spectrum: Strong Partisan Bill (Democrat 17-1)
Status: (Passed) 2021-10-19 - Sponsor Removed Sen. Jacqueline Y. Collins [SB2338 Detail]
Download: Illinois-2021-SB2338-Enrolled.html
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1 | AN ACT concerning education.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||
5 | Student-Athlete Endorsement Rights Act.
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6 | Section 5. Definitions. In this Act: | ||||||
7 | "Compensation" means anything of value, monetary or | ||||||
8 | otherwise, including, but not limited to, cash, gifts, in-kind | ||||||
9 | items of value, social media compensation, payments for | ||||||
10 | licensing or use of publicity rights, payments for other | ||||||
11 | intellectual or intangible property rights under federal or | ||||||
12 | State law, and any other form of payment or remuneration, | ||||||
13 | except as excluded under this Act. "Compensation" shall not | ||||||
14 | include: | ||||||
15 | (1) tuition, room, board, books, fees, and personal | ||||||
16 | expenses that a postsecondary educational institution | ||||||
17 | provides to a student-athlete in accordance with the rules | ||||||
18 | of the athletic association or conference of which the | ||||||
19 | postsecondary educational institution is a member; | ||||||
20 | (2) Federal Pell Grants and other State and federal | ||||||
21 | grants or scholarships unrelated to, and not awarded | ||||||
22 | because of a student-athlete's participation in | ||||||
23 | intercollegiate athletics or sports competition; |
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1 | (3) any other financial aid, benefits, or awards that | ||||||
2 | a postsecondary educational institution provides to a | ||||||
3 | student-athlete in accordance with the rules of the | ||||||
4 | athletic association or conference of which the | ||||||
5 | postsecondary educational institution is a member; or | ||||||
6 | (4) the payment of wages and benefits to a | ||||||
7 | student-athlete for work actually performed (but not for | ||||||
8 | athletic ability or participation in intercollegiate | ||||||
9 | athletics) at a rate commensurate with the prevailing rate | ||||||
10 | for similar work in the locality of the student-athlete's | ||||||
11 | postsecondary educational institution. | ||||||
12 | "Image" means any visual depiction, including, but not | ||||||
13 | limited to, photograph, digital image, rendering, and video. | ||||||
14 | "Intercollegiate athletics program" means an | ||||||
15 | intercollegiate athletics program played at the collegiate | ||||||
16 | level for which eligibility requirements for participation by | ||||||
17 | a student-athlete are established by a national association | ||||||
18 | for the promotion or regulation of collegiate athletics. | ||||||
19 | "Likeness" means a physical, digital, rendering, or other | ||||||
20 | depiction or representation of a student-athlete, including a | ||||||
21 | student-athlete's uniform number or signature, that reasonably | ||||||
22 | identifies the student-athlete with particularity. | ||||||
23 | "Name" means the first or last name or the nickname of a | ||||||
24 | student-athlete when used in a context that reasonably | ||||||
25 | identifies the student-athlete with particularity. | ||||||
26 | "Name, image, and likeness agreement" or "publicity rights |
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1 | agreement" means a contract or other written or oral | ||||||
2 | arrangement between a student-athlete and a third party | ||||||
3 | licensee regarding the use of the name, image, likeness, or | ||||||
4 | voice of the student-athlete. | ||||||
5 | "Publicity right" means any right that (i) is licensed | ||||||
6 | under a publicity rights agreement or (ii) is recognized under | ||||||
7 | a federal or State law that permits an individual to control | ||||||
8 | and benefit from the commercial use of the name, image, | ||||||
9 | likeness, or voice of the individual. | ||||||
10 | "Postsecondary educational institution" means a public | ||||||
11 | university or community college or private university or | ||||||
12 | college. | ||||||
13 | "Social media compensation" means all forms of payment for | ||||||
14 | engagement on social media received by a student-athlete as a | ||||||
15 | result of the use of that student-athlete's name, image, | ||||||
16 | likeness, or voice. | ||||||
17 | "Student-athlete" means a student currently enrolled at a | ||||||
18 | postsecondary educational institution who engages in, is | ||||||
19 | eligible to engage in, or may be eligible in the future to | ||||||
20 | engage in, an intercollegiate athletics program at a | ||||||
21 | postsecondary educational institution. If an individual is | ||||||
22 | permanently ineligible to participate in a particular | ||||||
23 | intercollegiate sport, the individual is not a student-athlete | ||||||
24 | for purposes of that sport. | ||||||
25 | "Third party licensee" means any individual or entity that | ||||||
26 | licenses publicity rights or the use of name, image, likeness, |
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1 | or voice from any prospective or current student-athlete or | ||||||
2 | group of student-athletes. "Third party licensee" shall not | ||||||
3 | include any national association for the promotion or | ||||||
4 | regulation of collegiate athletics, athletics conference, or | ||||||
5 | postsecondary educational institution.
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6 | Section 10. Compensation. Except as provided in Section | ||||||
7 | 15: | ||||||
8 | (1) A student-athlete may earn compensation, | ||||||
9 | commensurate with market value, for the use of the name, | ||||||
10 | image, likeness, or voice of the student-athlete while | ||||||
11 | enrolled at a postsecondary educational institution and | ||||||
12 | obtain and retain a certified agent for any matter or | ||||||
13 | activity relating to such compensation. | ||||||
14 | (2) A student-athlete may not earn compensation in | ||||||
15 | exchange for the student-athlete's athletic ability or | ||||||
16 | participation in intercollegiate athletics or sports | ||||||
17 | competition or agreement or willingness to attend a | ||||||
18 | postsecondary educational institution. | ||||||
19 | (3) Notwithstanding any other provision of law or | ||||||
20 | agreement to the contrary, a student-athlete shall not be | ||||||
21 | deemed an employee, agent, or independent contractor of an | ||||||
22 | association, a conference, or a postsecondary educational | ||||||
23 | institution based on the student-athlete's participation | ||||||
24 | in an intercollegiate athletics program.
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1 | Section 15. Postsecondary educational institutions; | ||||||
2 | limitations; prohibitions. | ||||||
3 | (a) Except as provided in this Act, a postsecondary | ||||||
4 | educational institution shall not uphold any contract, rule, | ||||||
5 | regulation, standard, or other requirement that prevents a | ||||||
6 | student-athlete of that institution from earning compensation | ||||||
7 | as a result of the use of the student-athlete's name, image, | ||||||
8 | likeness, or voice. Any such contract, rule, regulation, | ||||||
9 | standard, or other requirement shall be void and unenforceable | ||||||
10 | against the postsecondary educational institution or the | ||||||
11 | student-athlete. Compensation from the use of a | ||||||
12 | student-athlete's name, image, likeness, or voice may not | ||||||
13 | affect the student-athlete's scholarship eligibility, | ||||||
14 | grant-in-aid, or other financial aid, awards or benefits, or | ||||||
15 | the student-athlete's intercollegiate athletic eligibility. | ||||||
16 | Nothing in this Act is intended to alter any State or federal | ||||||
17 | laws, rules, or regulations regarding the award of financial | ||||||
18 | aid at postsecondary educational institutions. | ||||||
19 | (b) Except as provided in this Act, an athletic | ||||||
20 | association, conference, or other group or organization with | ||||||
21 | authority over intercollegiate athletic programs, including, | ||||||
22 | but not limited to, the National Collegiate Athletic | ||||||
23 | Association, the National Association of Intercollegiate | ||||||
24 | Athletics, and the National Junior College Athletic | ||||||
25 | Association, shall not prevent, or otherwise enforce a | ||||||
26 | contract, rule, regulation, standard, or other requirement |
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1 | that prevents a student-athlete at a postsecondary educational | ||||||
2 | institution from earning compensation as a result of the use | ||||||
3 | of the student-athlete's name, image, likeness, or voice. | ||||||
4 | (c) To protect the integrity of its educational mission | ||||||
5 | and intercollegiate athletics program, a postsecondary | ||||||
6 | educational institution may impose reasonable limitations on | ||||||
7 | the dates and time that a student-athlete may participate in | ||||||
8 | endorsement, promotional, social media, or other activities | ||||||
9 | related to the license or use of the student-athlete's name, | ||||||
10 | image, likeness, or voice. Nothing in this Act shall restrict | ||||||
11 | a postsecondary educational institution from exercising its | ||||||
12 | sole discretion to control the authorized use of its marks or | ||||||
13 | logos or to determine a student-athlete's apparel, gear, or | ||||||
14 | other wearables during an intercollegiate athletics | ||||||
15 | competition or institution-sponsored event. A student-athlete | ||||||
16 | may not receive or enter into a contract for compensation for | ||||||
17 | the use of the student-athlete's name, image, likeness, or | ||||||
18 | voice in a way that also uses any registered or licensed marks, | ||||||
19 | logos, verbiage, name, or designs of a postsecondary | ||||||
20 | educational institution, unless the postsecondary educational | ||||||
21 | institution has provided the student-athlete with written | ||||||
22 | permission to do so prior to execution of the contract or | ||||||
23 | receipt of compensation. If permission is granted to the | ||||||
24 | student-athlete, the postsecondary educational institution, by | ||||||
25 | an agreement of all of the parties, may be compensated for the | ||||||
26 | use in a manner consistent with market rates. A postsecondary |
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1 | educational institution may also prohibit a student-athlete | ||||||
2 | from wearing any item of clothing, shoes, or other gear or | ||||||
3 | wearables with the name, logo, or insignia of any entity | ||||||
4 | during an intercollegiate athletics competition or | ||||||
5 | institution-sponsored event. | ||||||
6 | (d) An athletic association, conference, or other group or | ||||||
7 | organization with authority over intercollegiate athletics | ||||||
8 | programs, including, but not limited to, the National | ||||||
9 | Collegiate Athletic Association, the National Association of | ||||||
10 | Intercollegiate Athletics, and the National Junior College | ||||||
11 | Athletic Association, shall not enforce a contract, rule, | ||||||
12 | regulation, standard, or other requirement that prevents a | ||||||
13 | postsecondary educational institution from participating in an | ||||||
14 | intercollegiate athletics program as a result of the | ||||||
15 | compensation of a student-athlete for the use of the | ||||||
16 | student-athlete's name, image, likeness, or voice. | ||||||
17 | (e) A postsecondary educational institution, athletic | ||||||
18 | association, conference, or other group or organization with | ||||||
19 | authority over intercollegiate athletics programs, including, | ||||||
20 | but not limited to, the National Collegiate Athletic | ||||||
21 | Association, the National Association of Intercollegiate | ||||||
22 | Athletics, and the National Junior College Athletic | ||||||
23 | Association, shall not directly or indirectly: | ||||||
24 | (1) enter into, or offer to enter into, a publicity | ||||||
25 | rights agreement with a prospective or current | ||||||
26 | student-athlete; or |
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1 | (2) provide a prospective or current student-athlete | ||||||
2 | or the student-athlete's family compensation in relation | ||||||
3 | to the use of the student-athlete's name, image, likeness, | ||||||
4 | or voice. | ||||||
5 | (f) A postsecondary educational institution, athletic | ||||||
6 | association, conference, or other group or organization with | ||||||
7 | authority over intercollegiate athletics programs, including, | ||||||
8 | but not limited to, the National Collegiate Athletic | ||||||
9 | Association, the National Association of Intercollegiate | ||||||
10 | Athletics, and the National Junior College Athletic | ||||||
11 | Association, shall not prevent a student-athlete from | ||||||
12 | obtaining professional representation for purposes of this Act | ||||||
13 | in relation to name, image, likeness, or voice, or to secure a | ||||||
14 | publicity rights agreement, including, but not limited to, | ||||||
15 | representation provided by athlete agents or legal | ||||||
16 | representation provided by attorneys. A student-athlete shall | ||||||
17 | provide the postsecondary educational institution with written | ||||||
18 | notice and a copy of the agreement within 7 days of entering | ||||||
19 | into a representation agreement with any individual for the | ||||||
20 | purpose of exploring or securing compensation for use of the | ||||||
21 | student-athlete's name, image, likeness, or voice.
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22 | Section 20. Agents; publicity rights; third party | ||||||
23 | licensees. | ||||||
24 | (a) An agent, legal representative, or other professional | ||||||
25 | service provider offering services to a student-athlete shall, |
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1 | to the extent required, comply with the federal Sports Agent | ||||||
2 | Responsibility and Trust Act and any other applicable laws, | ||||||
3 | rules, or regulations. | ||||||
4 | (b) A grant-in-aid, including cost of attendance, and | ||||||
5 | other permissible financial aid, awards, or benefits from the | ||||||
6 | postsecondary educational institution in which a | ||||||
7 | student-athlete is enrolled shall not be revoked, reduced, nor | ||||||
8 | the terms and conditions altered, as a result of a | ||||||
9 | student-athlete earning compensation or obtaining professional | ||||||
10 | or legal representation pursuant to this Act. | ||||||
11 | (c) A student-athlete shall disclose to the postsecondary | ||||||
12 | educational institution in which the student is enrolled, in a | ||||||
13 | manner and time prescribed by the institution, the existence | ||||||
14 | and substance of all publicity rights agreements. Publicity | ||||||
15 | rights agreements that contemplate cash or other compensation | ||||||
16 | to the student-athlete that is equal to or in excess of a value | ||||||
17 | of $500 shall be formalized in a written contract, and the | ||||||
18 | contract shall be provided to the postsecondary educational | ||||||
19 | institution in which the student is enrolled prior to the | ||||||
20 | execution of the agreement and before any compensation is | ||||||
21 | provided to the student-athlete. | ||||||
22 | (d) A student-athlete may not enter into a publicity | ||||||
23 | rights agreement or otherwise receive compensation for that | ||||||
24 | student-athlete's name, image, likeness, or voice for services | ||||||
25 | rendered or performed while that student-athlete is | ||||||
26 | participating in activities sanctioned by that |
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1 | student-athlete's postsecondary educational institution if | ||||||
2 | such services or performance by the student-athlete would | ||||||
3 | conflict with a provision in a contract, rule, regulation, | ||||||
4 | standard, or other requirement of the postsecondary | ||||||
5 | educational institution. | ||||||
6 | (e) No booster, third party licensee, or any other | ||||||
7 | individual or entity, shall provide or directly or indirectly | ||||||
8 | arrange for a third party to provide compensation to a | ||||||
9 | prospective or current student-athlete or enter into, or | ||||||
10 | directly or indirectly arrange for a third party to enter | ||||||
11 | into, a publicity rights agreement as an inducement for the | ||||||
12 | student-athlete to attend or enroll in a specific institution | ||||||
13 | or group of institutions. Compensation for a student-athlete's | ||||||
14 | name, image, likeness, or voice shall not be conditioned on | ||||||
15 | athletic performance or attendance at a particular | ||||||
16 | postsecondary educational institution. | ||||||
17 | (f) A postsecondary educational institution may fund an | ||||||
18 | independent, third-party administrator to support education, | ||||||
19 | monitoring, disclosures, and reporting concerning name, image, | ||||||
20 | likeness, or voice activities by student-athletes authorized | ||||||
21 | pursuant to this Act. A third-party administrator cannot be a | ||||||
22 | registered athlete agent. | ||||||
23 | (g) No postsecondary educational institution shall provide | ||||||
24 | or directly or indirectly arrange for a third-party to provide | ||||||
25 | compensation to a prospective or current student-athlete or | ||||||
26 | enter into, or directly or indirectly arrange for a third |
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1 | party to enter into, a publicity rights agreement with a | ||||||
2 | prospective or current student-athlete. | ||||||
3 | (h) No student-athlete shall enter into a publicity rights | ||||||
4 | agreement or receive compensation from a third party licensee | ||||||
5 | relating to the name, image, likeness, or voice of the | ||||||
6 | student-athlete before the date on which the student-athlete | ||||||
7 | enrolls at a postsecondary educational institution. | ||||||
8 | (i) No student-athlete shall enter into a publicity rights | ||||||
9 | agreement or receive compensation from a third party licensee | ||||||
10 | for the endorsement or promotion of gambling, sports betting, | ||||||
11 | controlled substances, cannabis, a tobacco or alcohol company, | ||||||
12 | brand, or products, alternative or electronic nicotine product | ||||||
13 | or delivery system, performance-enhancing supplements, adult | ||||||
14 | entertainment, or any other product or service that is | ||||||
15 | reasonably considered to be inconsistent with the values or | ||||||
16 | mission of a postsecondary educational institution or that | ||||||
17 | negatively impacts or reflects adversely on a postsecondary | ||||||
18 | educational institution or its athletic programs, including, | ||||||
19 | but not limited to, bringing about public disrepute, | ||||||
20 | embarrassment, scandal, ridicule, or otherwise negatively | ||||||
21 | impacting the reputation or the moral or ethical standards of | ||||||
22 | the postsecondary educational institution.
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23 | Section 25. Term of student-athlete contract. A contract | ||||||
24 | for the use of the student-athlete's name, image, likeness, or | ||||||
25 | voice that is entered into while the student-athlete is |
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1 | participating in an intercollegiate sport at a postsecondary | ||||||
2 | educational institution may not extend beyond the | ||||||
3 | student-athlete's participation in the sport at the | ||||||
4 | institution.
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5 | Section 30. Construction. Nothing in this Act shall be | ||||||
6 | construed to modify any requirements or obligations imposed | ||||||
7 | under Title IX of the Education Amendments of 1972.
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8 | Section 35. Liability. No postsecondary educational | ||||||
9 | institution shall be subject to a claim for damages of any kind | ||||||
10 | under this Act, including, but not limited to, a claim for | ||||||
11 | unfair trade or competition or tortious interference. No | ||||||
12 | postsecondary educational institution shall be subject to a | ||||||
13 | claim for damages related to its adoption, implementation, or | ||||||
14 | enforcement of any contract, rule, regulation, standard, or | ||||||
15 | other requirement in compliance with this Act. This Act is not | ||||||
16 | intended to and shall not waive or diminish any applicable | ||||||
17 | defenses and immunities, including, but not limited to, | ||||||
18 | sovereign immunity applicable to postsecondary educational | ||||||
19 | institutions.
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20 | Section 99. Effective date. This Act takes effect upon | ||||||
21 | becoming law or on July 1, 2021, whichever is later.
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