SB1615 - 571R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 13-3302, Arizona Revised Statutes, is amended to read:

START_STATUTE13-3302. Exclusions

A. The following conduct is not unlawful under this chapter:

1. Amusement gambling.

2. Social gambling.

3. Regulated gambling if the gambling is conducted in accordance with the statutes, rules or orders governing the gambling.

4. Gambling that is conducted at state, county or district fairs and that complies with section 13-3301, paragraph 1, subdivision (d).

B. An organization that has qualified for an exemption from taxation of income under section 501 of the internal revenue code may conduct a raffle that is subject to the following restrictions:

1. The nonprofit organization shall maintain this status and no member, director, officer, employee or agent of the nonprofit organization may receive any direct or indirect pecuniary benefit other than being able to participate in the raffle on a basis equal to all other participants.

2. The nonprofit organization has been in existence continuously in this state for a one-year period immediately before conducting the raffle.

3. No person except a bona fide local member of the sponsoring organization may participate directly or indirectly in the management, sales or operation of the raffle.

4. Paragraph 1 or 3 of this subsection does not prohibit:

(a) A licensed general hospital, a licensed special hospital or a foundation established to support cardiovascular medical research that is exempt from taxation of income under section 501(c)(3) of the internal revenue code from contracting with an outside agent who participates in the management, sales or operation of the raffle if the proceeds of the raffle are used to fund medical research, graduate medical education or indigent care and the raffles are conducted not more than three times per calendar year. The maximum fee for an outside agent shall not exceed fifteen percent of the net proceeds of the raffle.

(b) An entity that is exempt from taxation of income under section 501(c)(3) of the internal revenue code and that has at least a twenty-year history of providing comprehensive services to prevent child abuse and to provide services and advocacy for victims of child abuse from contracting with an outside agent who participates in the management, sales or operation of the raffle if the proceeds of the raffle are used to provide comprehensive services to prevent child abuse and to provide services and advocacy for victims of child abuse and the raffles are conducted not more than three times per calendar year. The maximum fee for an outside agent shall not exceed fifteen percent of the net proceeds of the raffle.

C. A state, county or local historical society designated by this state or a county, city or town to conduct a raffle may conduct the raffle subject to the following conditions:

1. A member, director, officer, employee or agent of the historical society may not receive any direct or indirect pecuniary benefit other than being able to participate in the raffle on a basis equal to all other participants.

2. The historical society must have been in existence continuously in this state for a five-year period immediately before conducting the raffle.

3. A person, except for a bona fide local member of the sponsoring historical society, may not participate directly or indirectly in the management, sales or operation of the raffle.

D. A nonprofit organization that is a booster club, a civic club or a political club or political organization that is formally affiliated with and recognized by a political party in this state may conduct a raffle that is subject to the following restrictions:

1. A member, director, officer, employee or agent of the club or organization may not receive any direct or indirect pecuniary benefit other than being able to participate in the raffle on a basis equal to all other participants.

2. A person, except for a bona fide local member of the sponsoring club or organization, may not participate directly or indirectly in the management, sales or operation of the raffle.

3. The maximum annual benefit that the club or organization receives for all raffles is $10,000.

4. The club or organization is organized and operated exclusively for pleasure, recreation or other nonprofit purposes and no part of the club's or organization's net earnings inures to the personal benefit of any member, director, officer, employee or agent of the club or organization.

E. If a university under the jurisdiction of the arizona board of regents or an organization that has qualified for an exemption from taxation of income under section 501 of the internal revenue code assists student athletes as defined in section 15-1762 to earn compensation from the use of a student athlete's own name, image or likeness, the university or organization may conduct a raffle subject to the following conditions:

1. The university or nonprofit organization shall maintain this status and a member, director, officer, employee or agent of the university or nonprofit organization may not receive any direct or indirect pecuniary benefit other than being able to participate in the raffle on a basis equal to all other participants.

2. The university or nonprofit organization must have been in existence continuously in this state for a one-year period immediately before conducting the raffle.

3. A person, except for a bona fide local member of the sponsoring university or nonprofit organization, may not participate directly or indirectly in the management, sales or operation of the raffle. END_STATUTE

Sec. 2. Section 15-1892, Arizona Revised Statutes, is amended to read:

START_STATUTE15-1892. Student athlete compensation; postsecondary education institutions; prohibitions; student athlete employment status; public records exemption; confidentiality; injunctive relief; definitions

A. Any postsecondary education institution that competes in an intercollegiate sport shall allow a student athlete to earn compensation from the use of the student athlete's own name, image or likeness to the extent allowed by the rules established by the relevant national association for promoting or regulating collegiate athletics.

B. A postsecondary education institution that competes in an intercollegiate sport may:

1. Compensate a student athlete for the use of the student athlete's own name, image or likeness, except that the postsecondary education institution may not use monies collected from student fees to pay for compensation pursuant to this paragraph.

2. Provide monies, assets, resources, opportunities, services or other benefits to an institutional marketing associate or third-party entity to incentivize the institutional marketing associate or third-party entity to facilitate opportunities for a student athlete to earn compensation for the use of the student athlete's own name, image or likeness.

C. A postsecondary education institution that competes in an intercollegiate sport may not:

1. cONSIDER WHETHER A student athlete engages in one or more of the activities described in subsection G, paragraph 1 of this section WHEN rostering or otherwise determining the level of participation that the postsecondary education institution assigns to each student athlete in an intercollegiate athletic program at the postsecondary education institution.

B. 2. A student athlete may not be denied a Consider a student athlete's activities described in subsection G, paragraph 1 of this section when determining the student athlete's eligibility to receive or renew a scholarship.

3. Deny or revoke a student athlete's scholarship, have a scholarship revoked, be deemed deem a student athlete ineligible for a scholarship or be deemed deem a student athlete ineligible for participating to participate in intercollegiate athletics based on earning because the student athlete earns compensation for the use of that the student athlete's own name, image or likeness in a manner and to the extent allowed by the rules established by the relevant national association for promoting or regulating collegiate athletics.

D. A student athlete who participates in an intercollegiate athletic program at a postsecondary education institution may not:

1. Execute a contract for the use of the student athlete's own name, image or likeness before disclosing the proposed contract to the postsecondary education institution at which the student athlete participates in an intercollegiate athletic program.

2. Execute a contract for the use of the student athlete's own name, image or likeness if any provision of the contract conflicts with any of the following:

(a) A provision of the student athlete's team contract.

(b) A provision of any contract executed by the postsecondary education institution.

(d) A provision of the postsecondary education institution's honor code.

3. Use any of the postsecondary education institution's property to increase the student athlete's opportunities to earn compensation for the use of the student athlete's own name, image or likeness without first obtaining express authorization from the postsecondary education institution. For the purposes of this paragraph, "property" includes facilities, equipment, apparel, uniforms and intellectual property, including logos, indicia, products protected by copyright, registered trademarks and unregistered trademarks.

C. E. An athlete agent who advises or represents a student athlete in connection with earning compensation from the use of that student athlete's own name, image or likeness shall comply with chapter 13, article 10 of this title.

D. F. This section does not authorize student athletes to enter into a contract providing compensation for the use of the student athlete's name, image or likeness if doing so either:

1. Violates the intellectual property rights of any person, including the student athlete's postsecondary education institution.

2. Conflicts with the student athlete's team contract.

G. A regulator may not do any of the following:

1. Prevent a student athlete from fully participating in an intercollegiate athletic program because the student athlete does any of the following:

(a) Earns compensation for the use of the student athlete's own name, image or likeness.

(b) Earns compensation for the student athlete's position on the roster of an intercollegiate athletic program team.

2. prevent a postsecondary education institution from doing any of the following because a student athlete who participates in an intercollegiate athletic program at the postsecondary education institution engages in one or more of the activities described in paragraph 1 of this subsection:

(a) Becoming a member of any regulator that is a membership organization.

(b) Participating in one or more intercollegiate athletic programs that are sponsored by the regulator.

3. Prevent a postsecondary education institution from doing any of the following:

(a) Compensating a student athlete as described in paragraph 1, subdivision (a) or (b) of this subsection.

(b) Sharing with student athletes the revenue that the postsecondary education institution receives for the commercial use of the student athlete's own name, image or likeness.

(c) Identifying, creating, negotiating with, facilitating, supporting, engaging with, assisting or otherwise enabling a student athlete to participate in an opportunity to receive compensation for the use of the student athlete's own name, image or likeness. For the purposes of this subdivision, the postsecondary education institution includes any supporting foundation or entity acting on behalf of the postsecondary education institution.

4. Consider a complaint, initiate an investigation or take any adverse action against a postsecondary education institution, institutional marketing associate or third-party entity for engaging in any conduct authorized under this section.

5. Take either of the following actions against an individual, third-party entity or student athlete for a violation of the regulator's rules or regulations relating to compensation for the use of a student athlete's own name, image or likeness:

(a) Impose a penalty against a postsecondary education institution or student athlete.

(b) Prevent the postsecondary education institution or student athlete from participating in an intercollegiate athletic program.

H. a postsecondary education institution may not classify a student athlete as an employee of the postsecondary education institution solely on the basis of the student athlete's participation in an athletic program at the postsecondary education institution or the student athlete's receipt of compensation as described in subsection G, paragraph 1, subdivision (a) or (b) of this section or shared revenues as described in subsection G, paragraph 3 of this section.

I. A student athlete may bring a cause of action against a postsecondary education institution or regulator in a court of competent jurisdiction to seek injunctive relief for a violation of this section.

J. A postsecondary education institution, institutional marketing associate or third-party entity may bring a cause of action against a regulator in a court of competent jurisdiction to enjoin the regulator from taking any adverse action against the postsecondary education institution, institutional marketing associate or third-party entity for engaging in any conduct that is authorized pursuant to this section. For the purposes of this subsection, "adverse action" includes considering a complaint, initiating an investigation or imposing a penalty.

K. If a postsecondary education institution determines that a student athlete has violated this section, the postsecondary education institution shall notify the student athlete in writing of the determination. If the student athlete does not correct the violation on or before the tenth day after the student athlete receives notice pursuant to this subsection, the postsecondary education institution may bring a cause of action against the student athlete in a court of competent jurisdiction to seek injunctive relief for a violation of this section.

L. Records relating to a contract or proposed contract for the use of the student athlete's own name, image or likeness are not public records and are exempt from title 39, chapter 1. Information collected by a postsecondary education institution relating to a student athlete's contract to receive compensation for the use of the student athlete's own name, image or likeness is confidential and not subject to public disclosure.

M. An employee of a postsecondary education institution or of a third-party entity is not liable for a student athlete's inability to earn compensation for the use of the student athlete's own name, image or likeness because of a decision or action that routinely occurs in the course of intercollegiate athletic programs.

N. This section does not affect the rights of student athletes under title IX of the education amendments of 1972 (P. L. 92-318; 86 stat. 235; 20 united states code sections 1681 through 1688).

E. O. For the purposes of this section: ,

1. "Athlete agent", has the same meaning prescribed in section 15-1762.

2. "Institutional marketing associate":

(a) means a third-party entity that enters into an agreement with a postsecondary education institution, postsecondary education institution's intercollegiate athletic program or postsecondary education institution's intercollegiate sports program to either:

(i) market or promote, or both, the postsecondary education institution, postsecondary education institution's intercollegiate athletic program or postsecondary education institution's intercollegiate sports program.

(ii) act on behalf of the postsecondary education institution, postsecondary education institution's intercollegiate athletic program or postsecondary education institution's intercollegiate sports program.

(b) Does not include:

(i) A postsecondary education institution.

(ii) A regulator.

(iii) A staff member, employee, officer, director, manager or owner of a postsecondary education institution or regulator.

3. "Intercollegiate sport": ,

(a) Means a sport that is played at the collegiate level and for which eligibility requirements for participation by a student athlete are established by a national association for the promotion or regulation of a collegiate athletic program.

(b) Does not include a college intramural sport or a professional sport outside of intercollegiate athletic programs.

4. "Person" and has the same meaning prescribed in section 15-1762.

5. "Postsecondary education institution" means either:

(a) A university under the jurisdiction of the Arizona Board of Regents.

(b) A degree-granting institution that is licensed by the state board for private postsecondary education pursuant to title 32, chapter 30, article 2.

6. "Regulator":

(a) Means any organization with authority over one or more intercollegiate athletic programs.

(b) Includes an athletic conference and association for promoting or regulating collegiate athletic programs.

7. "Student athlete" have has the same meanings meaning prescribed in section 15-1762.

8. "Third-party entity" means an individual or entity, including an athlete agent, who is not a postsecondary education institution or a regulator and whose purpose includes supporting or benefiting the postsecondary education institution. END_STATUTE

Sec. 3. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.