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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
Senate: ED DP 5-0-2-0 | 3rd Read 26-1-3-0
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SB 1615: student athletes; employment status; restrictions
Sponsor: Senator Shope, LD 16
Caucus & COW
Overview
An emergency measure that establishes authorizations, restrictions, requirements and legal remedies for student athletes, postsecondary education institutions and regulators regarding the use of a student athlete's own name, image and likeness (NIL).
History
A postsecondary education institution that competes in an intercollegiate sport must allow a student athlete, to the extent allowed by the rules established by the relevant national association for promoting or regulating collegiate athletics, to earn compensation from the use of the student athlete's own NIL. A student athlete may not be denied a scholarship, have a scholarship revoked or be deemed ineligible for a scholarship or for participating in intercollegiate athletics because the student athlete earns compensation for the use of their own NIL. However, a student athlete is not authorized to enter into a contract that provides compensation for the use of their own NIL if the contract: 1) violates the intellectual property of any person, including the student athlete's postsecondary education institution; or 2) conflicts with the student athlete's team contract (A.R.S. § 15-1892).
The Revised Uniform Athlete Agents Act governs contracts between student athletes and athlete agents by: 1) outlining required provisions in a student athlete's contract; 2) requiring notification to be given to the educational institution at which the student athlete is enrolled; 3) allowing the student athlete to cancel the contract within 14 days of signing; and 4) prohibiting certain athlete agent conduct (A.R.S. §§ 15-1770, 15-1771, 15-1772 and 15-1774).
A student athlete is an individual who engages in, or is otherwise eligible to engage in, any intercollegiate sport, except an individual who is permanently ineligible to participate in a particular intercollegiate sport. An intercollegiate sport is a sport played at the collegiate level and for which student athlete eligibility requirements are established by a national association for the promotion or regulation of college athletics (A.R.S. § 15-1762).
Provisions
Student Athletes
1. Restricts a student athlete who participates in an intercollegiate athletic program at a postsecondary education institution from:
a) executing a contract for the use of their own NIL before disclosing the proposed contract to the postsecondary education institution at which they participate in an intercollegiate athletic program;
b) executing a contract for the use of their own NIL if any contractual provision conflicts with their team contract, any contract of the postsecondary education institution, the postsecondary education institution's honor code or a policy of the postsecondary education institution's athletic department; or
c) using any of the postsecondary education institution's property to increase their opportunities to earn NIL compensation without first obtaining the postsecondary education institution's express authorization. (Sec. 2)
Postsecondary Education Institutions
2. Allows a postsecondary education institution that competes in an intercollegiate sport to:
a) compensate a student athlete for the use of the student athlete's own NIL, except that monies collected from student fees may not be used for compensation; and
b) provide benefits to an institutional marketing associate or third-party entity to incentivize the associate or entity to facilitate opportunities for a student athlete to earn compensation for the use of the student athlete's own NIL. (Sec. 2)
3. Prohibits a postsecondary institution that competes in an intercollegiate sport from:
a) limiting or preventing a student athlete from fully participating in an intercollegiate athletic program because the student athlete engages in specified activities relating to NIL compensation or the obtainment of professional representation; and
b) considering the aforementioned activities when determining a student athlete's eligibility to receive or renew a scholarship. (Sec. 2)
4. Prevents a postsecondary education institution from classifying a student athlete as an employee solely because the student athlete participates in an athletic program at the postsecondary education institution or receives compensation or shared revenues. (Sec. 2)
5. Removes the limitation that any postsecondary education institution that competes in an intercollegiate sport must allow a student athlete to earn compensation from the use of the student athlete's own NIL to the extent allowed by the rules established by the relevant national association for promoting or regulating collegiate athletics. (Sec. 2)
6. Defines postsecondary education institution as an Arizona public university or a licensed degree-granting private postsecondary education institution. (Sec. 2)
Regulators
7. Prohibits a regulator from preventing a student athlete from fully participating in an intercollegiate athletic program because the student athlete:
a) earns compensation for either the use of their own NIL or their position on the roster of an intercollegiate athletic program team; or
b) obtains professional representation from an athlete agent or attorney. (Sec. 2)
8. Declares a regulator may not prevent a postsecondary education institution, because a student athlete who participates in an intercollegiate athletic program at the institution engages in the specified activities relating to NIL compensation or the obtainment of professional representation, from:
a) becoming a member of any regulator that is a membership organization; or
b) participating in intercollegiate athletic programs sponsored by the regulator. (Sec. 2)
9. Restricts a regulator from preventing a postsecondary education institution, including any supporting foundation or entity acting on behalf of the postsecondary education institution, from:
a) compensating a student athlete for the use of the student athlete's own NIL or for the student's position on the roster of an intercollegiate athletic program team;
b) sharing with student athletes the revenue that the institution receives for the commercial use of the student athlete's own NIL; or
c) enabling a student athlete to participate in an opportunity to receive compensation for the use of the student athlete's own NIL. (Sec. 2)
10. Prohibits a regulator from:
a) considering a complaint, initiating an investigation or taking any adverse action against a postsecondary education institution, institutional marketing associate or third-party entity for engaging in any authorized conduct; or
b) taking 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 student athlete NIL compensation:
i. imposing a penalty against a postsecondary education institution or student athlete; or
ii. preventing the postsecondary institution or student athlete from participating in an intercollegiate athletic program. (Sec. 2)
11. Defines regulator as any organization with authority over intercollegiate athletic programs, including an athletic conference or an association for promoting or regulating collegiate athletic programs. (Sec. 2)
Cause of Action
12. Enables a student athlete to 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 regarding student athlete compensation. (Sec. 2)
13. Permits a postsecondary education institution, institutional marketing associate or third-party entity to bring a cause of action against a regulator in a court of competent jurisdiction to enjoin the regulator from taking any adverse action against these entities for engaging in authorized conduct. (Sec. 2)
14. Directs a postsecondary education institution that determines a student athlete violated student athlete compensation requirements to notify the student athlete in writing of the determination. (Sec. 2)
15. Authorizes a postsecondary education institution, if the student athlete does not correct the violation within 10 days after receiving notice of a postsecondary education institution's determination, to bring a cause of action against a student athlete in a court of competent jurisdiction to seek injunctive relief. (Sec. 2)
Public Records
16. Exempts records relating to a contract for the use of a student athlete's own NIL from public records and public records requests. (Sec. 2)
17. Declares 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 NIL is confidential and not subject to public disclosure. (Sec. 2)
Miscellaneous
18. Allows an Arizona public university or a tax-exempt nonprofit organization, if the university or organization assists student athletes to earn compensation from the use of the student athlete's own NIL, to conduct a raffle if:
a) the university or organization maintains its status;
b) a university or organization member, director, officer, employee or agent does not receive any pecuniary benefit other than being able to participate in the raffle on a basis equal to all other participants;
c) the university or organization has been in continuous existence in Arizona for one year immediately before the raffle; and
d) a person, except for a bona fide local member of the sponsoring university or organization, does not participate in raffle management, sales or operation. (Sec. 1)
19. Asserts an employee of a postsecondary education institution or third-party entity is not liable for a student athlete's inability to earn compensation for the use of the student athlete's own NIL because of a decision or action that routinely occurs in the course of intercollegiate athletic programs. (Sec. 2)
20. States that statutes relating to student athlete compensation do not affect the rights of student athletes under Title IX of the Education Amendments of 1972. (Sec. 2)
21. Defines institutional marketing associate, intercollegiate sport and third-party entity. (Sec. 2)
22. Contains an emergency clause. (Sec. 3)
23. Makes technical and conforming changes. (Sec. 2)
Amendments
Committee on Education
1. Modifies the prohibition on a postsecondary education institution from limiting or preventing a student athlete's participation in an intercollegiate athletic program by prohibiting the institution from considering whether a student athlete engages in the specified NIL activities when rostering or determining the student athlete's level of participation.
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SB 1615
Initials CH Page 0 Caucus & COW
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