Bill Text: NY S05891 | 2021-2022 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to enacting the "New York collegiate athletic participation compensation act"; allows student-athletes to receive compensation including for the use of a student's name, image, or likeness; allows student-athletes to seek professional representation.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2022-11-21 - SIGNED CHAP.622 [S05891 Detail]

Download: New_York-2021-S05891-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         5891--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                     March 22, 2021
                                       ___________

        Introduced  by  Sens.  PARKER, BAILEY -- read twice and ordered printed,
          and when printed to be committed to  the  Committee  on  Education  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee

        AN ACT to amend the education law, in relation to enacting the "New York
          collegiate athletic participation compensation act"

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "New York collegiate athletic participation compensation act".
     3    § 2. The education law is amended by adding two  new  sections  6438-a
     4  and 6438-b to read as follows:
     5    §  6438-a.  Student-athlete  compensation.  1. (a) A college shall not
     6  uphold  any  rule,  requirement,  standard,  or  other  limitation  that
     7  prevents  a student of that institution participating in intercollegiate
     8  athletics from earning compensation pursuant to this  section  including
     9  as  a result of the use of the student's name, image, or likeness. Earn-
    10  ing compensation as a result of the use of a student's name,  image,  or
    11  likeness shall not affect the student's scholarship eligibility.
    12    (b)  An  athletic association, conference, or other group or organiza-
    13  tion with authority over intercollegiate athletics, including,  but  not
    14  limited  to,  the National Collegiate Athletic Association (NCAA), shall
    15  not prevent a student of  a  college  participating  in  intercollegiate
    16  athletics  from  earning compensation pursuant to this section including
    17  as a result of the use of the student's name, image, or likeness.
    18    (c) An athletic association, conference, or other group  or  organiza-
    19  tion  with  authority over intercollegiate athletics, including, but not
    20  limited to, the National Collegiate Athletic Association  (NCAA),  shall
    21  not prevent a college from participating in intercollegiate athletics as
    22  a  result  of  the  compensation  of  a student-athlete pursuant to this
    23  section including for the use of the student's name, image, or likeness.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06266-02-1

        S. 5891--A                          2

     1    (d) A community college shall be exempt from the requirements of  this
     2  section.
     3    2.  A  college,  athletic  association,  conference, or other group or
     4  organization with authority over  intercollegiate  athletics  shall  not
     5  provide  a  prospective student-athlete with compensation in relation to
     6  the athlete's name, image, or likeness.
     7    3. (a) A college, athletic association, conference, or other group  or
     8  organization  with  authority  over  intercollegiate athletics shall not
     9  prevent a student-athlete  participating  in  intercollegiate  athletics
    10  from  obtaining  professional representation in relation to contracts or
    11  legal matters, including, but not limited to, representation provided by
    12  athlete agents or legal representation provided by attorneys.
    13    (b) Professional representation obtained by student-athletes shall  be
    14  from  persons  registered  and/or  licensed  by  the state. Professional
    15  representation provided by athlete agents shall be by persons registered
    16  pursuant to article thirty-nine-E of the  general  business  law.  Legal
    17  representation of student-athletes shall be by attorneys licensed pursu-
    18  ant to article fifteen of the judiciary law.
    19    (c) Athlete agents representing student-athletes shall comply with the
    20  federal  Sports Agent Responsibility and Trust Act, established in chap-
    21  ter 104 of title 15 of the United States Code,  in  their  relationships
    22  with student-athletes.
    23    4.  A scholarship from the college in which a student is enrolled that
    24  provides the student with the cost of attendance at that institution  is
    25  not  compensation  for purposes of this section, and a scholarship shall
    26  not be revoked as a result of earning compensation, or  obtaining  legal
    27  or athletic agent representation.
    28    5.  (a)  A  student-athlete  shall not enter into a contract providing
    29  compensation to the athlete for use of the  athlete's  name,  image,  or
    30  likeness  if  a provision of the contract causes a conflict as described
    31  in paragraph (d) of this subdivision.
    32    (b) A student-athlete who enters into  a  contract  providing  compen-
    33  sation  to the athlete for use of the athlete's name, image, or likeness
    34  shall disclose the contract in advance of executing it to an official of
    35  the college, to be designated by the college.
    36    (c) A college asserting a conflict described in paragraph (a) of  this
    37  subdivision  shall disclose to the athlete or the athlete's legal repre-
    38  sentation the relevant contractual provisions that are in conflict.
    39    (d) A college asserting a conflict described in paragraph (a) of  this
    40  subdivision  may  assert  a  conflict  based on, but not limited to, the
    41  following grounds:
    42    (i) the proposed contract would cause the student to violate the  team
    43  contract; or
    44    (ii)  the  proposed  contract  would  cause the student to violate the
    45  institution's student handbook or code of conduct; or
    46    (iii) the proposed contract would conflict with an  existing  contract
    47  or sponsorship the institution participates in; or
    48    (iv)  the proposed contract would reasonably be judged to cause finan-
    49  cial loss or reputational damage to the institution; or
    50    (v) the proposed contract would require actions by the  player  during
    51  team activities; or
    52    (vi)  the proposed contract would require actions by the player during
    53  scheduled classes; or
    54    (vii) the proposed contract would use the institution's name or  brand
    55  or copywritten materials.

        S. 5891--A                          3

     1    6.  After the effective date of this section, a new team contract or a
     2  renewal or modification of a  team  contract  of  a  college's  athletic
     3  program  shall  not  prevent  a student-athlete from using the athlete's
     4  name, image, or likeness for a commercial purpose when  the  athlete  is
     5  not  engaged  in  official  team  activities,  except  where  there is a
     6  conflict as described in paragraph  (d)  of  subdivision  five  of  this
     7  section.
     8    7.  Each college athletic program that participates in Division 1 NCAA
     9  athletics shall offer a student-athlete assistance program or  programs,
    10  designed  to provide student-athletes participating in Division 1 sports
    11  with important tools aimed to enhance their well-being  and  experiences
    12  in  the  classroom,  off  the  field of play, and beyond their tenure as
    13  student-athletes. The student-athlete assistance program may include but
    14  not be limited to:
    15    (a) A dedicated financial distress fund that  would  support  enrolled
    16  and/or current student-athletes in times of financial need.
    17    (b) Access to ongoing mental health support services provided by coun-
    18  selors  specially  trained to understand the unique issues and pressures
    19  student-athletes confront.
    20    (c) Access to broad-based financial literacy training, with a specific
    21  emphasis on the issues and opportunities relevant  to  student-athletes,
    22  during and beyond their tenure at the college or university.
    23    (d)  A  student-athlete  degree  completion  assistance  program  that
    24  provides former student-athletes who disenrolled from the institution in
    25  good academic standing and who earned the NCAA  Academic  Progress  Rate
    26  eligibility point (for Division I institutions), before completing their
    27  degree,  access  to  need-based  financial aid and counseling assistance
    28  required to support undergraduate degree completion.
    29    (e) Access to training regarding sex-based discrimination and  harass-
    30  ment  that  ensures  student-athletes  fully understand their rights and
    31  responsibilities under the law,  including  how  to  make  a  report  of
    32  discrimination or harassment on their campus.
    33    (f)  Access  to  leadership  training that will set the conditions for
    34  student-athletes to become  successful  leaders,  improve  communication
    35  skills, make positive decisions, and manage conflict.
    36    (g)  Access  to  a  career  development  program, positioned to assist
    37  student-athletes in transferring the valuable  skills  developed  during
    38  sport participation, to a successful post-college or university career.
    39    §  6438-b.  Community college athlete name, image and likeness working
    40  group. 1.  There shall be established within the department by the chan-
    41  cellor of the state  university  of  New  York,  the  community  college
    42  athlete  name,  image  and likeness working group, to examine and review
    43  existing state university of New York athletic bylaws, state and federal
    44  laws and  national  athletic  association  bylaws  regarding  a  college
    45  athlete's  use  of  such  athlete's name, image and likeness for compen-
    46  sation. The department shall provide necessary secretariat  and  support
    47  services to the working group.
    48    2.  (a) The community college athlete name, image and likeness working
    49  group shall consist of, but not be limited to, the following members:
    50    (i) one representative from the office of the chancellor of the  state
    51  university of New York;
    52    (ii)  at least two community college student-athletes appointed by the
    53  chancellor's office;
    54    (iii) a community college  athletic  administrator  appointed  by  the
    55  chancellor's  office;

        S. 5891--A                          4

     1    (iv)  a community college athletic coach appointed by the chancellor's
     2  office;
     3    (v) one member appointed by the governor;
     4    (vi)  one  member  appointed by the temporary president of the senate;
     5  and
     6    (vii) one member appointed by the speaker of the assembly.
     7    (b) All appointments to the working group shall  be  completed  on  or
     8  before July first, two thousand twenty-two.
     9    3.  On  or  before  July first, two thousand twenty-three, the working
    10  group shall provide a report to the governor, the speaker of the  assem-
    11  bly,  the  temporary  president  of the senate and the chancellor of the
    12  state university of New York, which contains such working group's  find-
    13  ings  and  policy recommendations in connection with its review pursuant
    14  to subdivision one of this section.
    15    § 3. This act shall take effect immediately; provided,  however,  that
    16  section  6438-a  of  the  education law, as added by section two of this
    17  act, shall take effect January 1, 2025.
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