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--B

                               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 -- committee discharged  and  said  bill
          committed   to   the   Committee  on  Higher  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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06266-04-1

        S. 5891--B                          2

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

        S. 5891--B                          3

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

        S. 5891--B                          4

     1    (iii) a community college  athletic  administrator  appointed  by  the
     2  chancellor's  office;
     3    (iv)  a community college athletic coach appointed by the chancellor's
     4  office;
     5    (v) one member appointed by the governor;
     6    (vi) one member appointed by the temporary president  of  the  senate;
     7  and
     8    (vii) one member appointed by the speaker of the assembly.
     9    (b)  All  appointments  to  the working group shall be completed on or
    10  before July first, two thousand twenty-two.
    11    3. On or before July first, two  thousand  twenty-three,  the  working
    12  group  shall provide a report to the governor, the speaker of the assem-
    13  bly, the temporary president of the senate and  the  chancellor  of  the
    14  state  university of New York, which contains such working group's find-
    15  ings and policy recommendations in connection with its  review  pursuant
    16  to subdivision one of this section.
    17    §  3.  This act shall take effect immediately; provided, however, that
    18  section 6438-a of the education law, as added by  section  two  of  this
    19  act, shall take effect January 1, 2022.
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