Sec. 4. Prohibitions on certain activities of institutions, boosters, and third-party licensees
509 words·~2 min read·
/bill/116/s/5003/is/section-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
An association, a conference, or an institution may not adopt or maintain a contract, rule, regulation, standard, or other requirement that prevents or unduly restricts a student athlete from earning covered compensation for the use of the name, image, or likeness of the student athlete. Notwithstanding any other provision of Federal or State law, a student athlete shall not be considered an employee of an association, a conference, or an institution based on participation in varsity intercollegiate sports competition.
An institution may not, directly or indirectly, provide covered compensation to a student athlete or a prospective student athlete, or to the family of a student athlete or a prospective student athlete. An institution or an association may not revoke or impose a condition on an athletic scholarship of a student athlete based on the student athlete having earned covered compensation or having obtained a certified agent in accordance with this Act. Except as provided in paragraph (2), a third-party licensee may not enter into, or offer to enter into, a name, image, and likeness agreement with a student athlete that provides covered compensation if a provision of the name, image, and likeness agreement conflicts with a provision of a contract, rule, regulation, standard, or other requirement of the applicable institution.
A third-party licensee may enter into, or offer to enter into, a name, image, and likeness agreement with a student athlete that conflicts with a provision of a contract, rule, regulation, standard, or other requirement of the applicable institution if— the institution consents, in writing, to the name, image, and likeness agreement; or the contract, rule, regulation, standard, or other requirement unduly restricts student athletes from earning covered compensation for the use of the name, image, or likeness of the student athlete.
An institution asserting a conflict described in paragraph
(1)shall disclose to the certified agent and the Entity each relevant term of the contract, rule, regulation, standard, or other requirement of the athletic team. A certified agent asserting a restriction described in paragraph (2)(B) shall disclose to the Entity the nature of such restriction. An individual may not carry out any agent activity or representation of a student athlete with respect to a student athlete name, image, and likeness agreement unless the individual is a certified agent. An association, a conference, or an institution may prohibit a booster from providing covered compensation to, or entering into a name, image, and likeness agreement with, a student athlete or prospective student athlete as an inducement to attend or enroll in or continue attending a specific institution or group of institutions. An association, a conference, or an institution may prohibit a student athlete from entering into a name, image, and likeness agreement with a third-party licensee relating to the name, image, or likeness of the student athlete— before the date on which the student athlete enrolls at an institution; or for the promotion of gambling, tobacco or alcohol products, adult entertainment, or any other product or service that is reasonably considered to be inconsistent with the values of an institution.