Illinois General Assembly - Full Text of SB2338
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Full Text of SB2338  102nd General Assembly

SB2338ham001 102ND GENERAL ASSEMBLY

Rep. Kambium Buckner

Filed: 5/12/2021

 

 


 

 


 
10200SB2338ham001LRB102 14260 CMG 26479 a

1
AMENDMENT TO SENATE BILL 2338

2    AMENDMENT NO. ______. Amend Senate Bill 2338 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Student-Athlete Endorsement Rights Act.
 
6    Section 5. Definitions. In this Act:
7    "Compensation" means anything of value, monetary or
8otherwise, including, but not limited to, cash, gifts, in-kind
9items of value, social media compensation, payments for
10licensing or use of publicity rights, payments for other
11intellectual or intangible property rights under federal or
12State law, and any other form of payment or remuneration,
13except as excluded under this Act. "Compensation" shall not
14include:
15        (1) tuition, room, board, books, fees, and personal
16    expenses that a postsecondary educational institution

 

 

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1    provides to a student-athlete in accordance with the rules
2    of the athletic association or conference of which the
3    postsecondary educational institution is a member;
4        (2) Federal Pell Grants and other State and federal
5    grants or scholarships unrelated to, and not awarded
6    because of a student-athlete's participation in
7    intercollegiate athletics or sports competition;
8        (3) any other financial aid, benefits, or awards that
9    a postsecondary educational institution provides to a
10    student-athlete in accordance with the rules of the
11    athletic association or conference of which the
12    postsecondary educational institution is a member; or
13        (4) the payment of wages and benefits to a
14    student-athlete for work actually performed (but not for
15    athletic ability or participation in intercollegiate
16    athletics) at a rate commensurate with the prevailing rate
17    for similar work in the locality of the student-athlete's
18    postsecondary educational institution.
19    "Image" means any visual depiction, including, but not
20limited to, photograph, digital image, rendering, and video.
21    "Intercollegiate athletics program" means an
22intercollegiate athletics program played at the collegiate
23level for which eligibility requirements for participation by
24a student-athlete are established by a national association
25for the promotion or regulation of collegiate athletics.
26    "Likeness" means a physical, digital, rendering, or other

 

 

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1depiction or representation of a student-athlete, including a
2student-athlete's uniform number or signature, that reasonably
3identifies the student-athlete with particularity.
4    "Name" means the first or last name or the nickname of a
5student-athlete when used in a context that reasonably
6identifies the student-athlete with particularity.
7    "Name, image, and likeness agreement" or "publicity rights
8agreement" means a contract or other written or oral
9arrangement between a student-athlete and a third party
10licensee regarding the use of the name, image, likeness, or
11voice of the student-athlete.
12    "Publicity right" means any right that (i) is licensed
13under a publicity rights agreement or (ii) is recognized under
14a federal or State law that permits an individual to control
15and benefit from the commercial use of the name, image,
16likeness, or voice of the individual.
17    "Postsecondary educational institution" means a public
18university or community college or private university or
19college.
20    "Social media compensation" means all forms of payment for
21engagement on social media received by a student-athlete as a
22result of the use of that student-athlete's name, image,
23likeness, or voice.
24    "Student-athlete" means a student currently enrolled at a
25postsecondary educational institution who engages in, is
26eligible to engage in, or may be eligible in the future to

 

 

10200SB2338ham001- 4 -LRB102 14260 CMG 26479 a

1engage in, an intercollegiate athletics program at a
2postsecondary educational institution. If an individual is
3permanently ineligible to participate in a particular
4intercollegiate sport, the individual is not a student-athlete
5for purposes of that sport.
6    "Third party licensee" means any individual or entity that
7licenses publicity rights or the use of name, image, likeness,
8or voice from any prospective or current student-athlete or
9group of student-athletes. "Third party licensee" shall not
10include any national association for the promotion or
11regulation of collegiate athletics, athletics conference, or
12postsecondary educational institution.
 
13    Section 10. Compensation. Except as provided in Section
1415:
15        (1) A student-athlete may earn compensation,
16    commensurate with market value, for the use of the name,
17    image, likeness, or voice of the student-athlete while
18    enrolled at a postsecondary educational institution and
19    obtain and retain a certified agent for any matter or
20    activity relating to such compensation.
21        (2) A student-athlete may not earn compensation in
22    exchange for the student-athlete's athletic ability or
23    participation in intercollegiate athletics or sports
24    competition or agreement or willingness to attend a
25    postsecondary educational institution.

 

 

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1        (3) Notwithstanding any other provision of law or
2    agreement to the contrary, a student-athlete shall not be
3    deemed an employee, agent, or independent contractor of an
4    association, a conference, or a postsecondary educational
5    institution based on the student-athlete's participation
6    in an intercollegiate athletics program.
 
7    Section 15. Postsecondary educational institutions;
8limitations; prohibitions.
9    (a) Except as provided in this Act, a postsecondary
10educational institution shall not uphold any contract, rule,
11regulation, standard, or other requirement that prevents a
12student-athlete of that institution from earning compensation
13as a result of the use of the student-athlete's name, image,
14likeness, or voice. Any such contract, rule, regulation,
15standard, or other requirement shall be void and unenforceable
16against the postsecondary educational institution or the
17student-athlete. Compensation from the use of a
18student-athlete's name, image, likeness, or voice may not
19affect the student-athlete's scholarship eligibility,
20grant-in-aid, or other financial aid, awards or benefits, or
21the student-athlete's intercollegiate athletic eligibility.
22Nothing in this Act is intended to alter any State or federal
23laws, rules, or regulations regarding the award of financial
24aid at postsecondary educational institutions.
25    (b) Except as provided in this Act, an athletic

 

 

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1association, conference, or other group or organization with
2authority over intercollegiate athletic programs, including,
3but not limited to, the National Collegiate Athletic
4Association, the National Association of Intercollegiate
5Athletics, and the National Junior College Athletic
6Association, shall not prevent, or otherwise enforce a
7contract, rule, regulation, standard, or other requirement
8that prevents a student-athlete at a postsecondary educational
9institution from earning compensation as a result of the use
10of the student-athlete's name, image, likeness, or voice.
11    (c) To protect the integrity of its educational mission
12and intercollegiate athletics program, a postsecondary
13educational institution may impose reasonable limitations on
14the dates and time that a student-athlete may participate in
15endorsement, promotional, social media, or other activities
16related to the license or use of the student-athlete's name,
17image, likeness, or voice. Nothing in this Act shall restrict
18a postsecondary educational institution from exercising its
19sole discretion to control the authorized use of its marks or
20logos or to determine a student-athlete's apparel, gear, or
21other wearables during an intercollegiate athletics
22competition or institution-sponsored event. A student-athlete
23may not receive or enter into a contract for compensation for
24the use of the student-athlete's name, image, likeness, or
25voice in a way that also uses any registered or licensed marks,
26logos, verbiage, name, or designs of a postsecondary

 

 

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1educational institution, unless the postsecondary educational
2institution has provided the student-athlete with written
3permission to do so prior to execution of the contract or
4receipt of compensation. If permission is granted to the
5student-athlete, the postsecondary educational institution, by
6an agreement of all of the parties, may be compensated for the
7use in a manner consistent with market rates. A postsecondary
8educational institution may also prohibit a student-athlete
9from wearing any item of clothing, shoes, or other gear or
10wearables with the name, logo, or insignia of any entity
11during an intercollegiate athletics competition or
12institution-sponsored event.
13    (d) An athletic association, conference, or other group or
14organization with authority over intercollegiate athletics
15programs, including, but not limited to, the National
16Collegiate Athletic Association, the National Association of
17Intercollegiate Athletics, and the National Junior College
18Athletic Association, shall not enforce a contract, rule,
19regulation, standard, or other requirement that prevents a
20postsecondary educational institution from participating in an
21intercollegiate athletics program as a result of the
22compensation of a student-athlete for the use of the
23student-athlete's name, image, likeness, or voice.
24    (e) A postsecondary educational institution, athletic
25association, conference, or other group or organization with
26authority over intercollegiate athletics programs, including,

 

 

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1but not limited to, the National Collegiate Athletic
2Association, the National Association of Intercollegiate
3Athletics, and the National Junior College Athletic
4Association, shall not directly or indirectly:
5        (1) enter into, or offer to enter into, a publicity
6    rights agreement with a prospective or current
7    student-athlete; or
8        (2) provide a prospective or current student-athlete
9    or the student-athlete's family compensation in relation
10    to the use of the student-athlete's name, image, likeness,
11    or voice.
12    (f) A postsecondary educational institution, athletic
13association, conference, or other group or organization with
14authority over intercollegiate athletics programs, including,
15but not limited to, the National Collegiate Athletic
16Association, the National Association of Intercollegiate
17Athletics, and the National Junior College Athletic
18Association, shall not prevent a student-athlete from
19obtaining professional representation for purposes of this Act
20in relation to name, image, likeness, or voice, or to secure a
21publicity rights agreement, including, but not limited to,
22representation provided by athlete agents or legal
23representation provided by attorneys. A student-athlete shall
24provide the postsecondary educational institution with written
25notice and a copy of the agreement within 7 days of entering
26into a representation agreement with any individual for the

 

 

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1purpose of exploring or securing compensation for use of the
2student-athlete's name, image, likeness, or voice.
 
3    Section 20. Agents; publicity rights; third party
4licensees.
5    (a) An agent, legal representative, or other professional
6service provider offering services to a student-athlete shall,
7to the extent required, comply with the federal Sports Agent
8Responsibility and Trust Act and any other applicable laws,
9rules, or regulations.
10    (b) A grant-in-aid, including cost of attendance, and
11other permissible financial aid, awards, or benefits from the
12postsecondary educational institution in which a
13student-athlete is enrolled shall not be revoked, reduced, nor
14the terms and conditions altered, as a result of a
15student-athlete earning compensation or obtaining professional
16or legal representation pursuant to this Act.
17    (c) A student-athlete shall disclose to the postsecondary
18educational institution in which the student is enrolled, in a
19manner and time prescribed by the institution, the existence
20and substance of all publicity rights agreements. Publicity
21rights agreements that contemplate cash or other compensation
22to the student-athlete that is equal to or in excess of a value
23of $500 shall be formalized in a written contract, and the
24contract shall be provided to the postsecondary educational
25institution in which the student is enrolled prior to the

 

 

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1execution of the agreement and before any compensation is
2provided to the student-athlete.
3    (d) A student-athlete may not enter into a publicity
4rights agreement or otherwise receive compensation for that
5student-athlete's name, image, likeness, or voice for services
6rendered or performed while that student-athlete is
7participating in activities sanctioned by that
8student-athlete's postsecondary educational institution if
9such services or performance by the student-athlete would
10conflict with a provision in a contract, rule, regulation,
11standard, or other requirement of the postsecondary
12educational institution.
13    (e) No booster, third-party licensee, or any other
14individual or entity, shall provide or directly or indirectly
15arrange for a third-party to provide compensation to a
16prospective or current student-athlete or enter into, or
17directly or indirectly arrange for a third-party to enter
18into, a publicity rights agreement as an inducement for the
19student-athlete to attend or enroll in a specific institution
20or group of institutions. Compensation for a student-athlete's
21name, image, likeness, or voice shall not be conditioned on
22athletic performance or attendance at a particular
23postsecondary educational institution.
24    (f) A postsecondary educational institution may fund an
25independent, third-party administrator to support education,
26monitoring, disclosures, and reporting concerning name, image,

 

 

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1likeness, or voice activities by student-athletes authorized
2pursuant to this Act. A third-party administrator cannot be a
3registered athlete agent.
4    (g) No postsecondary educational institution shall provide
5or directly or indirectly arrange for a third-party to provide
6compensation to a prospective or current student-athlete or
7enter into, or directly or indirectly arrange for a third
8party to enter into, a publicity rights agreement with a
9prospective or current student-athlete.
10    (h) No student-athlete shall enter into a publicity rights
11agreement or receive compensation from a third party licensee
12relating to the name, image, likeness, or voice of the
13student-athlete before the date on which the student-athlete
14enrolls at a postsecondary educational institution.
15    (i) No student-athlete shall enter into a publicity rights
16agreement or receive compensation from a third party licensee
17for the endorsement or promotion of gambling, sports betting,
18controlled substances, cannabis, a tobacco or alcohol company,
19brand, or products, alternative or electronic nicotine product
20or delivery system, performance-enhancing supplements, adult
21entertainment, or any other product or service that is
22reasonably considered to be inconsistent with the values or
23mission of a postsecondary educational institution or that
24negatively impacts or reflects adversely on a postsecondary
25education institution or its athletic programs, including, but
26not limited to, bringing about public disrepute,

 

 

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1embarrassment, scandal, ridicule, or otherwise negatively
2impacting the reputation or the moral or ethical standards of
3the postsecondary educational institution.
 
4    Section 25. Term of student-athlete contract. A contract
5for the use of the student-athlete's name, image, likeness, or
6voice that is entered into while the student-athlete is
7participating in an intercollegiate sport at a postsecondary
8educational institution may not extend beyond the
9student-athlete's participation in the sport at the
10institution.
 
11    Section 30. Construction. Nothing in this Act shall be
12construed to modify any requirements or obligations imposed
13under Title IX of the Education Amendments of 1972.
 
14    Section 35. Liability. No postsecondary educational
15institution shall be subject to a claim for damages of any kind
16under this Act, including, but not limited to, a claim for
17unfair trade or competition or tortious interference. No
18postsecondary educational institution shall be subject to a
19claim for damages related to its adoption, implementation, or
20enforcement of any contract, rule, regulation, standard, or
21other requirement in compliance with this Act. This Act is not
22intended to and shall not waive or diminish any applicable
23defenses and immunities, including, but not limited to,

 

 

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1sovereign immunity applicable to postsecondary educational
2institutions.
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law or on July 1, 2021, whichever is later.".