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--C

                               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  --  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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06266-06-1

        S. 5891--C                          2

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

        S. 5891--C                          3

     1    (v)  the  proposed contract would require actions by the player during
     2  team activities; or
     3    (vi)  the proposed contract would require actions by the player during
     4  scheduled classes; or
     5    (vii) the proposed contract would use the institution's  name,  brand,
     6  copywritten  materials,  trademarks,  service marks, symbols, nicknames,
     7  trade dress, insignia, mascot, uniform styles, colors,  imagery,  campus
     8  landmarks, or any other intellectual property or indicia; or
     9    (viii)  the  proposed  contract would require the student to display a
    10  sponsor's product, logo, brand, or other indicia, or otherwise advertise
    11  for a sponsor, during official team activities or any  other  time,  and
    12  such  sponsor  is a competitor of, or offers products or services within
    13  the same category as a sponsor of the college.
    14    6. After the effective date of this section, a new team contract or  a
    15  renewal  or  modification  of  a  team  contract of a college's athletic
    16  program shall not prevent a student-athlete  from  using  the  athlete's
    17  name,  image,  or  likeness for a commercial purpose when the athlete is
    18  not engaged in  official  team  activities,  except  where  there  is  a
    19  conflict  as  described  in  paragraph  (d)  of subdivision five of this
    20  section or any other prohibition in this section.
    21    7. Each college athletic program that participates in Division 1  NCAA
    22  athletics  shall offer a student-athlete assistance program or programs,
    23  designed to provide student-athletes participating in Division 1  sports
    24  with  important  tools aimed to enhance their well-being and experiences
    25  in the classroom, off the field of play,  and  beyond  their  tenure  as
    26  student-athletes. The student-athlete assistance program may include but
    27  not be limited to:
    28    (a)  A  dedicated  financial distress fund that would support enrolled
    29  and/or current student-athletes in times of financial need.    Disburse-
    30  ments  from  such  fund  are  not  compensation for the purposes of this
    31  section.
    32    (b) Access to ongoing mental health support services provided by coun-
    33  selors specially trained to understand the unique issues  and  pressures
    34  student-athletes confront.
    35    (c) Access to broad-based financial literacy training, with a specific
    36  emphasis  on  the issues and opportunities relevant to student-athletes,
    37  during and beyond their tenure at the college or university.
    38    (d)  A  student-athlete  degree  completion  assistance  program  that
    39  provides former student-athletes who disenrolled from the institution in
    40  good  academic  standing  and who earned the NCAA Academic Progress Rate
    41  eligibility point (for Division I institutions), before completing their
    42  degree, access to need-based financial  aid  and  counseling  assistance
    43  required to support undergraduate degree completion.
    44    (e)  Access to training regarding sex-based discrimination and harass-
    45  ment that ensures student-athletes fully  understand  their  rights  and
    46  responsibilities  under  the  law,  including  how  to  make a report of
    47  discrimination or harassment on their campus.
    48    (f) Access to leadership training that will  set  the  conditions  for
    49  student-athletes  to  become  successful  leaders, improve communication
    50  skills, make positive decisions, and manage conflict.
    51    (g) Access to a  career  development  program,  positioned  to  assist
    52  student-athletes  in  transferring  the valuable skills developed during
    53  sport participation, to a successful post-college or university career.
    54    8. For purposes of this section, "team  contract"  means  any  written
    55  agreement  between a student-athlete and a college, or division, depart-
    56  ment, program or team thereof,  which  includes  goals  and  objectives,

        S. 5891--C                          4

     1  standards,  prohibitions,  broadcast, advertising or marketing rights or
     2  consents, rules or expectations applicable to the student-athlete.
     3    §  6438-b.  Community college athlete name, image and likeness working
     4  group. 1.  There shall be established within the department by the chan-
     5  cellor of the state  university  of  New  York,  the  community  college
     6  athlete  name,  image  and likeness working group, to examine and review
     7  existing state university of New York athletic bylaws, state and federal
     8  laws and  national  athletic  association  bylaws  regarding  a  college
     9  athlete's  use  of  such  athlete's name, image and likeness for compen-
    10  sation. The department shall provide necessary secretariat  and  support
    11  services to the working group.
    12    2.  (a) The community college athlete name, image and likeness working
    13  group shall consist of, but not be limited to, the following members:
    14    (i) one representative from the office of the chancellor of the  state
    15  university of New York;
    16    (ii)  at least two community college student-athletes appointed by the
    17  chancellor's office;
    18    (iii) a community college  athletic  administrator  appointed  by  the
    19  chancellor's  office;
    20    (iv)  a community college athletic coach appointed by the chancellor's
    21  office;
    22    (v) one member appointed by the governor;
    23    (vi) one member appointed by the temporary president  of  the  senate;
    24  and
    25    (vii) one member appointed by the speaker of the assembly.
    26    (b)  All  appointments  to  the working group shall be completed on or
    27  before July first, two thousand twenty-two.
    28    3. On or before July first, two  thousand  twenty-three,  the  working
    29  group  shall provide a report to the governor, the speaker of the assem-
    30  bly, the temporary president of the senate and  the  chancellor  of  the
    31  state  university of New York, which contains such working group's find-
    32  ings and policy recommendations in connection with its  review  pursuant
    33  to subdivision one of this section.
    34    §  3.  This act shall take effect immediately; provided, however, that
    35  section 6438-a of the education law, as added by  section  two  of  this
    36  act, shall take effect January 1, 2022.
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