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--D

                               2021-2022 Regular Sessions

                    IN SENATE

                                     March 22, 2021
                                       ___________

        Introduced  by  Sens.  PARKER, BAILEY, JACKSON -- read twice and ordered
          printed, and when printed to be committed to the Committee  on  Educa-
          tion  --  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 -- recommitted
          to the Committee on Higher Education in accordance with Senate Rule 6,
          sec. 8 -- 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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06266-12-2

        S. 5891--D                          2

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

        S. 5891--D                          3

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

        S. 5891--D                          4

     1    (g) Access to a  career  development  program,  positioned  to  assist
     2  student-athletes  in  transferring  the valuable skills developed during
     3  sport participation, to a successful post-college or university career.
     4    8.  For  purposes  of  this section, "team contract" means any written
     5  agreement between a student-athlete and a college, or division,  depart-
     6  ment,  program  or  team  thereof,  which includes goals and objectives,
     7  standards, prohibitions, broadcast, advertising or marketing  rights  or
     8  consents, rules or expectations applicable to the student-athlete.
     9    §  6438-b.  Community college athlete name, image and likeness working
    10  group. 1.  There shall be established within the department by the chan-
    11  cellor of the state  university  of  New  York,  the  community  college
    12  athlete  name,  image  and likeness working group, to examine and review
    13  existing state university of New York athletic bylaws, state and federal
    14  laws and  national  athletic  association  bylaws  regarding  a  college
    15  athlete's  use  of  such  athlete's name, image and likeness for compen-
    16  sation. The department shall provide necessary secretariat  and  support
    17  services to the working group.
    18    2.  (a) The community college athlete name, image and likeness working
    19  group shall consist of, but not be limited to, the following members:
    20    (i) one representative from the office of the chancellor of the  state
    21  university of New York;
    22    (ii)  at least two community college student-athletes appointed by the
    23  chancellor's office;
    24    (iii) a community college  athletic  administrator  appointed  by  the
    25  chancellor's  office;
    26    (iv)  a community college athletic coach appointed by the chancellor's
    27  office;
    28    (v) one member appointed by the governor;
    29    (vi) one member appointed by the temporary president  of  the  senate;
    30  and
    31    (vii) one member appointed by the speaker of the assembly.
    32    (b)  All  appointments  to  the working group shall be completed on or
    33  before July first, two thousand twenty-three.
    34    3. On or before July first, two  thousand  twenty-three,  the  working
    35  group  shall provide a report to the governor, the speaker of the assem-
    36  bly, the temporary president of the senate and  the  chancellor  of  the
    37  state  university of New York, which contains such working group's find-
    38  ings and policy recommendations in connection with its  review  pursuant
    39  to subdivision one of this section.
    40    §  3.  This act shall take effect immediately; provided, however, that
    41  section 6438-a of the education law, as added by  section  two  of  this
    42  act, shall take effect January 1, 2023.
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