Bill Text: MS SB2690 | 2022 | Regular Session | Enrolled
Bill Title: Mississippi Intercollegiate Athletics Compensation Act and Mississippi Uniform Agents act; revise various provisions of.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2022-04-18 - Approved by Governor [SB2690 Detail]
Download: Mississippi-2022-SB2690-Enrolled.html
MISSISSIPPI LEGISLATURE
2022 Regular Session
To: Universities and Colleges
By: Senator(s) Parks
Senate Bill 2690
(As Sent to Governor)
AN ACT TO AMEND SECTION 37-97-103, MISSISSIPPI CODE OF 1972, TO CLARIFY THE DEFINITIONS OF CERTAIN TERMINOLOGY RELATED TO NAME, IMAGE AND LIKENESS AGREEMENTS FOR STUDENT-ATHLETES; TO AMEND SECTION 37-97-105, MISSISSIPPI CODE OF 1972, TO CLARIFY THE ABILITY OF A STUDENT-ATHLETE TO EARN COMPENSATION FOR THE USE OF HIS OR HER PUBLICITY RIGHTS; TO AMEND SECTION 37-97-107, MISSISSIPPI CODE OF 1972, TO CLARIFY THE AUTHORITY OF POSTSECONDARY EDUCATIONAL INSTITUTIONS REGARDING RESTRICTIONS ON COMPENSATION FOR THE USE OF A STUDENT-ATHLETE'S PUBLICITY RIGHTS; TO FURTHER RESTRICT ASSOCIATIONS OR ORGANIZATIONS WITH AUTHORITY OVER INTERCOLLEGIATE ATHLETIC PROGRAMS FROM PENALIZING A POSTSECONDARY EDUCATIONAL INSTITUTION OR ITS INTERCOLLEGIATE ATHLETIC PROGRAM FOR COMPLIANCE WITH PROVISIONS OF THE MISSISSIPPI INTERCOLLEGIATE ATHLETICS COMPENSATION RIGHTS ACT; TO PERMIT POSTSECONDARY EDUCATIONAL INSTITUTIONS TO FACILITATE OPPORTUNITIES FOR STUDENT-ATHLETES TO ENGAGE THIRD PARTIES INTERESTED IN ENTERING INTO NAME, IMAGE AND LIKENESS AGREEMENTS; TO REMOVE THE PROHIBITION ON A STUDENT-ATHLETE ENTERING INTO A NAME, IMAGE AND LIKENESS AGREEMENT BEFORE ENROLLING AT A POSTSECONDARY EDUCATIONAL INSTITUTION; TO AMEND SECTION 73-42-19, MISSISSIPPI CODE OF 1972, TO REVISE THE REQUIRED WARNING TO STUDENT-ATHLETES IN AN AGENCY CONTRACT TO CONFORM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 37-97-103, Mississippi Code of 1972, is amended as follows:
37-97-103. (1) As used in this article, the following terms shall have the following meanings unless the context clearly indicates otherwise:
(a) "Compensation" means anything of value, monetary or otherwise, including, but not limited to, cash, gifts, in-kind items of value, social media compensation, payments for licensing or use of publicity rights, payments for other intellectual or intangible property rights under federal or state law, and any other form of payment or remuneration, except as excluded under this article.
For the purposes of this article, "compensation" shall not mean or include the following:
(i) Tuition, room, board, books, fees and personal expenses that a postsecondary educational institution provides a student-athlete in accordance with the rules of the athletic association or conference of which the postsecondary educational institution is a member;
(ii) Federal Pell Grants and other state and federal grants or scholarships unrelated to, and not awarded because of a student-athlete's participation in intercollegiate athletics or sports competition;
(iii) Any other financial aid, benefits or awards that a postsecondary educational institution provides a student-athlete in accordance with the rules of the athletic association or conference of which the postsecondary educational institution is a member; or
(iv) The payment of
wages and benefits to a student-athlete for work actually performed * * *
for services unrelated to a student-athlete's publicity rights or other
intellectual or intangible property rights of a student-athlete under federal
or state law.
(b) "Image" means a picture of the student-athlete.
(c) "Intercollegiate athletics program" means an intercollegiate athletics program played at the collegiate level for which eligibility requirements for participation by a student-athlete are established by a national association for the promotion or regulation of collegiate athletics.
(d) "Likeness" means a physical, digital or other depiction or representation of a student-athlete.
(e) "Name" means the first or last name, or the nickname, of a student-athlete when used in a context that reasonably identifies the student-athlete with particularity.
(f) "Name, Image and
Likeness Agreement" means a contract or * * * other arrangement between a student-athlete
and a third-party * * *
regarding the * * *
use of the * * * publicity of the student-athlete.
(g) "Publicity right"
means any right * * *:
(i) * * * Associated with the name,
image, * * *
likeness * * *,
publicity, reputation, fame or personal following of a student-athlete; or
(ii) Recognized under
a federal or state law * * * as permitting an individual to control and profit
from the * * *
use of the name, image * * *, likeness, publicity,
reputation, fame or personal following of the individual.
(h) "Postsecondary educational institution" means a public university or community college or private university or college.
(i) "Social media
compensation" means all forms of payment for engagement on social media received
by a student-athlete as a result of the use of that student-athlete's * * * publicity rights.
(j) "Student-athlete" means an individual who engages in, is eligible to engage in, or may be eligible in the future to engage in, intercollegiate athletics program at a postsecondary educational institution, including, without limitation, prospective student-athletes of an intercollegiate athletics program. If an individual is permanently ineligible to participate in a particular intercollegiate sport, the individual is not a student-athlete for purposes of that sport.
(k) "Third party * * *" means any individual or entity or
group of the same, acting independently or collectively, that * * * enters into an agreement for the
publicity rights * * * of
a student-athlete or group of student-athletes. The term "third party * * *" shall not include any national association
for the promotion or regulation of collegiate athletics, athletics conference, or
postsecondary educational institution.
SECTION 2. Section 37-97-105, Mississippi Code of 1972, is amended as follows:
37-97-105. (1) Except as provided in Section 37-97-107, a student-athlete may:
(a) Earn compensation, * * * for the use of * * * publicity
rights of the student-athlete * * *;
and
(b) Obtain and retain a certified agent for any matter or activity relating to such compensation.
(2) No student-athlete may earn compensation in exchange for the student-athlete's athletic ability or participation in intercollegiate athletics or sports competition.
(3) Notwithstanding any other provision of applicable law or agreement to the contrary, a student-athlete shall not be deemed an employee or independent contractor of an association, a conference, or a postsecondary educational institution based on the student-athlete's participation in an intercollegiate athletics program.
SECTION 3. Section 37-97-107, Mississippi Code of 1972, is amended as follows:
37-97-107. (1) Except as provided
for under this article, a postsecondary educational institution shall not uphold
any contract, rule, regulation, standard or other requirement that prevents a student-athlete
of that institution from earning compensation * * * for the use of the student's * * * publicity rights.
Any such contract, rule, regulation standard or other requirement shall be void
and unenforceable against the postsecondary educational institution or the student-athlete.
Compensation from the use of a student-athlete's * * * publicity rights
may not affect the student-athlete's scholarship eligibility, grant-in-aid or other
financial aid, awards or benefits, or the student-athlete's intercollegiate athletic
eligibility. Nothing in this article is intended to alter any state and federal
laws or regulations regarding the award of financial aid at postsecondary educational
institutions.
(2) Except as provided for in
this article, an athletic association, conference or other group or organization
with authority over intercollegiate athletic programs, including, but not limited
to, the National Collegiate Athletic Association (NCAA) and the National Junior
College Athletic Association (NJCAA), shall not prevent, or otherwise enforce a
contract, rule, regulation, standard or other requirement that prevents, a student-athlete
of a postsecondary educational institution from earning compensation as a result
of the use of the student-athlete's * * * publicity rights.
(3) To protect the integrity
of its educational mission and intercollegiate athletics program, a postsecondary
educational 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 * * * publicity rights.
Nothing in this article shall restrict a postsecondary educational institution from
exercising its sole discretion to control the authorized use of its marks or logos
or to determine a student-athlete's apparel, gear or other wearables during an intercollegiate
athletics competition or institution-sponsored event. A student-athlete may not
receive or enter into a contract for compensation for the use of his or her * * * publicity rights
in a way that also uses any registered or licensed marks, logos, verbiage or designs
of a postsecondary institution, unless the institution has provided the student-athlete
with written permission to do so prior to * * * entering into the
agreement or receipt of compensation. If permission is granted, the postsecondary
educational institution, by agreement of all parties, may be compensated for the
use in a manner consistent with market rates. A postsecondary educational institution
may also prohibit a student-athlete from wearing any item of clothing, shoes, or
other gear or wearables with the name, logo or insignia of any entity during an
intercollegiate athletics competition or institution-sponsored event.
(4) An athletic association,
conference or other group or organization with authority over intercollegiate athletics
programs, including, but not limited to, the National Collegiate Athletic Association
and the National Junior College Athletic Association, shall not enforce a contract,
rule, regulation, standard or other requirement that prevents a postsecondary educational
institution from participating in an intercollegiate athletics program, or
otherwise penalize the postsecondary educational institution or its intercollegiate
athletic program, as a result of activities permitted by this article, including,
without limitation, the compensation of a student-athlete for the use of the
student-athlete's * * * publicity rights.
(5) (a) A postsecondary
educational institution, athletic association, conference or other group or organization
with authority over intercollegiate athletics programs, including, but not limited
to, the National Collegiate Athletic Association and the National Junior College
Athletic Association, shall not * * *:
( * * *i) Enter into, or offer to enter into,
a name, image and likeness agreement with a * * * student-athlete; or
( * * *ii) Provide a * * * student-athlete or the student-athlete's
family compensation in relation to the use of the student-athlete's * * * publicity rights.
(b) A postsecondary educational institution may facilitate opportunities for student-athletes to engage with third parties interested in entering into name, image, and likeness agreements, and may communicate with third parties interested in providing name, image, and likeness agreements to student-athletes.
(6) A postsecondary educational
institution, athletic association, conference or other group or organization with
authority over intercollegiate athletics programs, including, but not limited to,
the National Collegiate Athletic Association and the National Junior College Athletic
Association shall not prevent a student-athlete from obtaining professional representation
in relation to * * * publicity rights, or to secure a name, image and likeness
agreement, including, but not limited to, representation provided by athlete agents
or legal representation provided by attorneys. A student-athlete shall provide
the postsecondary educational institution with written notice at least seven (7)
days prior to entering into a representation agreement with any individual for the
purpose of exploring or securing compensation for use of the student-athlete's * * * publicity rights.
(7) Professional representation obtained by student-athletes must be from persons registered as athlete agents as provided in Section 73-42-1 et seq. of the Uniform Athlete Agent Act. Attorneys who provide legal representation to student-athletes must be licensed to practice law in the State of Mississippi and in good standing with The Mississippi Bar.
(8) Athlete agents representing student-athletes shall comply with the Uniform Athlete Agents Act, Section 73-42-1 et seq., Mississippi Code of 1972, and the federal Sports Agent Responsibility and Trust Act in 15 USC Sections 7801-7807 in their relationships with student-athletes.
(9) A grant-in-aid, including cost of attendance, and other permissible financial aid, awards or benefits from the postsecondary educational institution in which a student-athlete is enrolled shall not be revoked, reduced, nor the terms and conditions altered, as a result of a student-athlete earning compensation or obtaining professional or legal representation pursuant to this article.
(10) Before any * * * agreement for compensation for
the use of a student-athlete's * * * publicity rights
is * * *
entered into, and before any compensation is provided to the student-athlete
in advance of * * *
an agreement, the student-athlete shall disclose the * * * agreement to a designated official
of the postsecondary educational institution in which the student-athlete
is enrolled in a manner prescribed by the institution.
(11) A third-party * * * may not enter into, or offer to enter
into, a name, image and likeness agreement with a student-athlete or otherwise compensate
a student-athlete for the use of the student-athlete's * * * publicity rights
if a provision of the name, image and likeness agreement or the use of the student-athlete's * * * publicity rights
conflicts with a provision of a contract, rule, regulation, standard or other requirement
of the postsecondary educational institution unless such contract or use is expressly
approved in writing by the postsecondary educational institution.
(12) No postsecondary educational
institution, booster * * * or third-party * * * shall
provide a * * * student-athlete compensation or enter into a name, image and
likeness agreement as an inducement for the student-athlete to attend or enroll
in a specific institution or group of institutions. Compensation for a student-athlete's * * * publicity rights
may not be conditioned on athletic performance or attendance * * *.
* * *
( * * *13) No student-athlete shall enter into
a name, image, and likeness agreement or receive compensation from a third-party
licensee for the endorsement or promotion of gambling, sports betting, controlled
substances, marijuana, tobacco or alcohol * * *, brand or * * * product, alternative or electronic
nicotine product or delivery system, performance-enhancing * * * supplement, adult entertainment
or any other product or service that is reasonably considered to be inconsistent
with the values or mission of a postsecondary educational institution or that negatively
impacts or reflects adversely on a postsecondary education institution or its athletic
programs, including, without limitation, bringing about public disrepute, embarrassment,
scandal, ridicule or otherwise negatively impacting the reputation or the moral
or ethical standards of the postsecondary educational institution.
( * * *14) * * * An agreement for the use of * * * a student-athlete's * * * publicity rights
which is formed while the student-athlete is participating in an intercollegiate
sport at a postsecondary educational institution may not extend beyond the student-athlete's
participation in the sport at the institution.
( * * *15) Nothing in this article shall be interpreted
to modify any requirements or obligations imposed under Title IX of the Education
Amendments of 1972 (20 USC 1681 et seq.).
SECTION 4. Section 73-42-19, Mississippi Code of 1972, is amended as follows:
73-42-19. (1) An agency contract must be in a record, signed by the parties.
(2) An agency contract must state or contain:
(a) The amount and method of calculating the consideration to be paid by the student-athlete for services to be provided by the athlete agent under the contract and any other consideration or anything of value that the athlete agent has received or will receive from any other source for entering into the contract or for providing the services;
(b) The name of any person not listed in the application for registration or renewal who will be compensated because the student-athlete signed the agency contract;
(c) A description of any expenses that the student-athlete agrees to reimburse;
(d) A description of the services to be provided to the student-athlete;
(e) The duration of the contract; and
(f) The date of execution.
(3) An agency contract must contain, in close proximity to the signature of the student-athlete, a conspicuous notice in boldface type in capital letters stating:
WARNING TO STUDENT-ATHLETE
IF YOU SIGN THIS CONTRACT:
(1) YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT-ATHLETE IN YOUR SPORT UNLESS THIS CONTRACT IS SERVING AS A NAME, IMAGE AND LIKENESS AGREEMENT PURSUANT TO SECTION 37-97-103;
(2) BOTH YOU AND YOUR ATHLETE AGENT ARE REQUIRED TO TELL YOUR ATHLETIC DIRECTOR, IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS AFTER ENTERING INTO AN AGENCY CONTRACT; AND
(3) YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER SIGNING IT. CANCELLATION OF THE CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.
(4) An agency contract that does not conform to this section is voidable by the student-athlete.
(5) The athlete agent shall give a copy of the signed agency contract to the student-athlete at the time of signing.
SECTION 5. This act shall take effect and be in force from and after its passage.
