Bill Text: MI HB4816 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Education: athletics; preventing high school student athletes from receiving compensation for the use of their name, image, or likeness rights; prohibit. Creates new act.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Engrossed) 2023-10-24 - Referred To Committee On Oversight [HB4816 Detail]
Download: Michigan-2023-HB4816-Introduced.html
HOUSE BILL NO. 4816
A bill to prohibit high schools and certain athletic organizations from preventing high school student athletes in this state from receiving compensation for the use of their name, image, or likeness rights.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "compensation of high school student athletes act".
(a) "Athletic association" means an entity that operates for the purpose of developing common rules for the eligibility and competition of high school student athletes in this state.
(b) "High school" means a nonpublic school or public school that offers at least 1 of grades 9 to 12.
(c) "Nonpublic school" means that term as defined in section 5 of the revised school code, 1976 PA 451, MCL 380.5.
(d) "Public school" means that term as defined in section 5 of the revised school code, 1976 PA 451, MCL 380.5.
Sec. 5. (1) A high school shall not uphold any rule, requirement, standard, or other limitation that prevents a student of that high school from fully participating in high school athletics based on the student earning compensation as a result of the student's use of the student's name, image, or likeness rights.
(2) The earning of compensation by a student athlete of a high school from the use of the student's name, image, or likeness rights must not affect the student's scholarship eligibility or renewal.
Sec. 7. An athletic association, conference, or other group or organization with authority over high school athletics shall not do either of the following:
(a) Prevent a student of a high school from fully participating in high school athletics based on the student earning compensation as a result of the student's use of the student's name, image, or likeness rights.
(b) Prevent a high school from fully participating in high school athletics without penalty based on a student of the high school's use of the student's name, image, or likeness rights.
Sec. 9. A high school, athletic association, conference, or other group or organization with authority over high school athletics shall not do any of the following:
(a) Provide a prospective student athlete of a high school with compensation in relation to the prospective student athlete's name, image, or likeness rights.
(b) Prevent a student athlete of a high school from obtaining professional representation in relation to contracts or legal matters regarding opportunities to be compensated, including, but not limited to, representation provided by an athlete agent or legal representation provided by an attorney.
(c) Prevent a student athlete of a high school from earning compensation from a third party as a result of the student's name, image, likeness rights, or athletic reputation, so long as the student's contract with the third party does not require the student to advertise for a sponsor in person during official, mandatory team activities. As used in this subdivision, "compensation" includes food, shelter, medical expenses, and insurance.
Sec. 11. For purposes of this act, an athletics grant-in-aid or stipend scholarship from the high school of a student is not compensation for use of the student's name, image, or likeness rights, and the high school shall not revoke or reduce an athletics grant-in-aid or stipend scholarship based on the student earning compensation in accordance with this act.
Sec. 13. (1) A high school, athletic association, conference, or other group or organization with authority over high school athletics shall not interfere with or prevent a student from fully participating in high school athletics based on the student obtaining professional representation in relation to contracts or legal matters regarding the student's opportunities to earn compensation, including, but not limited to, representation provided by an athlete agent or financial advisor, or legal representation provided by an attorney.
(2) An athletic association, conference, or other group or organization with authority over high school athletics shall not prevent a high school from fully participating in high school athletics without penalty as a result of a student of the high school obtaining professional representation in relation to contracts or legal matters regarding the student's opportunities to earn compensation, including, but not limited to, representation provided by an athlete agent or financial advisor, or legal representation by an attorney.
(3) For purposes of this section, professional representation by an athlete agent, financial advisor, or attorney must be provided by persons licensed in this state, as applicable.
Sec. 15. A student athlete of a high school shall not enter into an apparel contract providing compensation to the student for use of the student's name, image, or likeness rights that requires the student to display a sponsor's apparel, or otherwise advertise for a sponsor, during official team activities if the provision is in conflict with a contract regarding the student's athletic team.
Sec. 17. (1) A student athlete of a high school who intends to enter into a verbal or written opportunity or contract that would provide compensation to the student for use of the student's name, image, or likeness rights shall disclose the proposed opportunity or contract to an official of the high school, as designated by the high school, at least 7 days before committing to the opportunity or contract, for review by the high school.
(2) If the high school described in subsection (1) identifies a conflict between the student's proposed opportunity or contract and any existing agreements of the high school, the high school shall communicate that conflict to the student so that the student may negotiate a revision of the opportunity or contract to avoid the conflict and that revision is subject to additional review and approval by the high school in accordance with this section.
(3) A team contract of a high school's athletic program must not prevent a student athlete from receiving compensation for using the student's name, image, or likeness rights for a commercial purpose when the student is not engaged in official team activities, including participating in or being part of an advertisement that was created while not engaged in official team activities but that may otherwise be broadcasted, displayed, or disseminated at any time.
(4) This section does not apply to a contract entered into, modified, or renewed on or before the effective date of this act.
Sec. 19. A legal settlement arising under this act must not permit noncompliance with this act.
Sec. 21. (1) By December 31, 2024, and by December 31, 2025, any nonprofit trade association that represents high schools in this state shall provide for each of those years, respectively, to the chair of the appropriations committee of the house of representatives and the chair of the appropriations committee of the senate a written summary of any congressional action on legislation on student athlete name, image, and likeness compensation.
(2) By June 30, 2026, any nonprofit trade association that represents high schools in this state shall provide to the chair of the appropriations committee of the house of representatives and the chair of the appropriations committee of the senate a written summary of the preparedness of the association's respective member high schools in implementing this act.
Sec. 23. (1) This act does not require a high school, athletic association, conference, or other group or organization with authority over high school athletics to identify, create, facilitate, negotiate, or otherwise enable opportunities for a student athlete of a high school to earn compensation for the student's use of the student's name, image, or likeness rights. However, a high school or any officer, director, or employee of the high school, including, but not limited to, a coach, a member of a coach staff, or any individual associated with the high school athletic department, may identify or otherwise assist with opportunities for a student to earn compensation from a third party for the use of the student's name, image, likeness rights, or athletic reputation, provided that the high school or individual does not do any of the following:
(a) Serve as a student's agent.
(b) Receive compensation from the student or a third party for facilitating or enabling those opportunities.
(c) Attempt to influence the student athlete's choice of professional representation related to those opportunities.
(d) Attempt to reduce the student's opportunities from competing third parties.
(e) Attend any meeting at which a contract for compensation for the use of the student's name, image, likeness rights, or athletic reputation is negotiated or completed between the student and a third party.
(2) This act does not establish or bestow the right of a student to use the name, trademarks, services marks, logos, symbols, or any other intellectual property, whether registered or not, of a high school, athletic association, conference, or other group or organization with authority over high school athletics, in furtherance of the student's opportunities to earn compensation for the student's use of the student's name, image, or likeness rights.
(3) This act does not limit the right of a high school to establish and enforce any of the following:
(a) Academic standards, requirements, regulations, or obligations for its students.
(b) Team rules of conduct or other rules of conduct.
(c) Standards or policies regarding the governance or operation of or participation in high school varsity athletics.
(d) Disciplinary rules and standards generally applicable to all students of the high school.
