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

SB2338enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
SB2338 EnrolledLRB102 14260 CMG 19612 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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
17    provides to a student-athlete in accordance with the rules
18    of the athletic association or conference of which the
19    postsecondary educational institution is a member;
20        (2) Federal Pell Grants and other State and federal
21    grants or scholarships unrelated to, and not awarded
22    because of a student-athlete's participation in
23    intercollegiate athletics or sports competition;

 

 

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1        (3) any other financial aid, benefits, or awards that
2    a postsecondary educational institution provides to a
3    student-athlete in accordance with the rules of the
4    athletic association or conference of which the
5    postsecondary educational institution is a member; or
6        (4) the payment of wages and benefits to a
7    student-athlete for work actually performed (but not for
8    athletic ability or participation in intercollegiate
9    athletics) at a rate commensurate with the prevailing rate
10    for similar work in the locality of the student-athlete's
11    postsecondary educational institution.
12    "Image" means any visual depiction, including, but not
13limited to, photograph, digital image, rendering, and video.
14    "Intercollegiate athletics program" means an
15intercollegiate athletics program played at the collegiate
16level for which eligibility requirements for participation by
17a student-athlete are established by a national association
18for the promotion or regulation of collegiate athletics.
19    "Likeness" means a physical, digital, rendering, or other
20depiction or representation of a student-athlete, including a
21student-athlete's uniform number or signature, that reasonably
22identifies the student-athlete with particularity.
23    "Name" means the first or last name or the nickname of a
24student-athlete when used in a context that reasonably
25identifies the student-athlete with particularity.
26    "Name, image, and likeness agreement" or "publicity rights

 

 

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1agreement" means a contract or other written or oral
2arrangement between a student-athlete and a third party
3licensee regarding the use of the name, image, likeness, or
4voice of the student-athlete.
5    "Publicity right" means any right that (i) is licensed
6under a publicity rights agreement or (ii) is recognized under
7a federal or State law that permits an individual to control
8and benefit from the commercial use of the name, image,
9likeness, or voice of the individual.
10    "Postsecondary educational institution" means a public
11university or community college or private university or
12college.
13    "Social media compensation" means all forms of payment for
14engagement on social media received by a student-athlete as a
15result of the use of that student-athlete's name, image,
16likeness, or voice.
17    "Student-athlete" means a student currently enrolled at a
18postsecondary educational institution who engages in, is
19eligible to engage in, or may be eligible in the future to
20engage in, an intercollegiate athletics program at a
21postsecondary educational institution. If an individual is
22permanently ineligible to participate in a particular
23intercollegiate sport, the individual is not a student-athlete
24for purposes of that sport.
25    "Third party licensee" means any individual or entity that
26licenses publicity rights or the use of name, image, likeness,

 

 

SB2338 Enrolled- 4 -LRB102 14260 CMG 19612 b

1or voice from any prospective or current student-athlete or
2group of student-athletes. "Third party licensee" shall not
3include any national association for the promotion or
4regulation of collegiate athletics, athletics conference, or
5postsecondary educational institution.
 
6    Section 10. Compensation. Except as provided in Section
715:
8        (1) A student-athlete may earn compensation,
9    commensurate with market value, for the use of the name,
10    image, likeness, or voice of the student-athlete while
11    enrolled at a postsecondary educational institution and
12    obtain and retain a certified agent for any matter or
13    activity relating to such compensation.
14        (2) A student-athlete may not earn compensation in
15    exchange for the student-athlete's athletic ability or
16    participation in intercollegiate athletics or sports
17    competition or agreement or willingness to attend a
18    postsecondary educational institution.
19        (3) Notwithstanding any other provision of law or
20    agreement to the contrary, a student-athlete shall not be
21    deemed an employee, agent, or independent contractor of an
22    association, a conference, or a postsecondary educational
23    institution based on the student-athlete's participation
24    in an intercollegiate athletics program.
 

 

 

SB2338 Enrolled- 5 -LRB102 14260 CMG 19612 b

1    Section 15. Postsecondary educational institutions;
2limitations; prohibitions.
3    (a) Except as provided in this Act, a postsecondary
4educational institution shall not uphold any contract, rule,
5regulation, standard, or other requirement that prevents a
6student-athlete of that institution from earning compensation
7as a result of the use of the student-athlete's name, image,
8likeness, or voice. Any such contract, rule, regulation,
9standard, or other requirement shall be void and unenforceable
10against the postsecondary educational institution or the
11student-athlete. Compensation from the use of a
12student-athlete's name, image, likeness, or voice may not
13affect the student-athlete's scholarship eligibility,
14grant-in-aid, or other financial aid, awards or benefits, or
15the student-athlete's intercollegiate athletic eligibility.
16Nothing in this Act is intended to alter any State or federal
17laws, rules, or regulations regarding the award of financial
18aid at postsecondary educational institutions.
19    (b) Except as provided in this Act, an athletic
20association, conference, or other group or organization with
21authority over intercollegiate athletic programs, including,
22but not limited to, the National Collegiate Athletic
23Association, the National Association of Intercollegiate
24Athletics, and the National Junior College Athletic
25Association, shall not prevent, or otherwise enforce a
26contract, rule, regulation, standard, or other requirement

 

 

SB2338 Enrolled- 6 -LRB102 14260 CMG 19612 b

1that prevents a student-athlete at a postsecondary educational
2institution from earning compensation as a result of the use
3of the student-athlete's name, image, likeness, or voice.
4    (c) To protect the integrity of its educational mission
5and intercollegiate athletics program, a postsecondary
6educational institution may impose reasonable limitations on
7the dates and time that a student-athlete may participate in
8endorsement, promotional, social media, or other activities
9related to the license or use of the student-athlete's name,
10image, likeness, or voice. Nothing in this Act shall restrict
11a postsecondary educational institution from exercising its
12sole discretion to control the authorized use of its marks or
13logos or to determine a student-athlete's apparel, gear, or
14other wearables during an intercollegiate athletics
15competition or institution-sponsored event. A student-athlete
16may not receive or enter into a contract for compensation for
17the use of the student-athlete's name, image, likeness, or
18voice in a way that also uses any registered or licensed marks,
19logos, verbiage, name, or designs of a postsecondary
20educational institution, unless the postsecondary educational
21institution has provided the student-athlete with written
22permission to do so prior to execution of the contract or
23receipt of compensation. If permission is granted to the
24student-athlete, the postsecondary educational institution, by
25an agreement of all of the parties, may be compensated for the
26use in a manner consistent with market rates. A postsecondary

 

 

SB2338 Enrolled- 7 -LRB102 14260 CMG 19612 b

1educational institution may also prohibit a student-athlete
2from wearing any item of clothing, shoes, or other gear or
3wearables with the name, logo, or insignia of any entity
4during an intercollegiate athletics competition or
5institution-sponsored event.
6    (d) An athletic association, conference, or other group or
7organization with authority over intercollegiate athletics
8programs, including, but not limited to, the National
9Collegiate Athletic Association, the National Association of
10Intercollegiate Athletics, and the National Junior College
11Athletic Association, shall not enforce a contract, rule,
12regulation, standard, or other requirement that prevents a
13postsecondary educational institution from participating in an
14intercollegiate athletics program as a result of the
15compensation of a student-athlete for the use of the
16student-athlete's name, image, likeness, or voice.
17    (e) A postsecondary educational institution, athletic
18association, conference, or other group or organization with
19authority over intercollegiate athletics programs, including,
20but not limited to, the National Collegiate Athletic
21Association, the National Association of Intercollegiate
22Athletics, and the National Junior College Athletic
23Association, shall not directly or indirectly:
24        (1) enter into, or offer to enter into, a publicity
25    rights agreement with a prospective or current
26    student-athlete; or

 

 

SB2338 Enrolled- 8 -LRB102 14260 CMG 19612 b

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

 

 

SB2338 Enrolled- 9 -LRB102 14260 CMG 19612 b

1to the extent required, comply with the federal Sports Agent
2Responsibility and Trust Act and any other applicable laws,
3rules, or regulations.
4    (b) A grant-in-aid, including cost of attendance, and
5other permissible financial aid, awards, or benefits from the
6postsecondary educational institution in which a
7student-athlete is enrolled shall not be revoked, reduced, nor
8the terms and conditions altered, as a result of a
9student-athlete earning compensation or obtaining professional
10or legal representation pursuant to this Act.
11    (c) A student-athlete shall disclose to the postsecondary
12educational institution in which the student is enrolled, in a
13manner and time prescribed by the institution, the existence
14and substance of all publicity rights agreements. Publicity
15rights agreements that contemplate cash or other compensation
16to the student-athlete that is equal to or in excess of a value
17of $500 shall be formalized in a written contract, and the
18contract shall be provided to the postsecondary educational
19institution in which the student is enrolled prior to the
20execution of the agreement and before any compensation is
21provided to the student-athlete.
22    (d) A student-athlete may not enter into a publicity
23rights agreement or otherwise receive compensation for that
24student-athlete's name, image, likeness, or voice for services
25rendered or performed while that student-athlete is
26participating in activities sanctioned by that

 

 

SB2338 Enrolled- 10 -LRB102 14260 CMG 19612 b

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

 

 

SB2338 Enrolled- 11 -LRB102 14260 CMG 19612 b

1party to enter into, a publicity rights agreement with a
2prospective or current student-athlete.
3    (h) No student-athlete shall enter into a publicity rights
4agreement or receive compensation from a third party licensee
5relating to the name, image, likeness, or voice of the
6student-athlete before the date on which the student-athlete
7enrolls at a postsecondary educational institution.
8    (i) No student-athlete shall enter into a publicity rights
9agreement or receive compensation from a third party licensee
10for the endorsement or promotion of gambling, sports betting,
11controlled substances, cannabis, a tobacco or alcohol company,
12brand, or products, alternative or electronic nicotine product
13or delivery system, performance-enhancing supplements, adult
14entertainment, or any other product or service that is
15reasonably considered to be inconsistent with the values or
16mission of a postsecondary educational institution or that
17negatively impacts or reflects adversely on a postsecondary
18educational institution or its athletic programs, including,
19but not limited to, bringing about public disrepute,
20embarrassment, scandal, ridicule, or otherwise negatively
21impacting the reputation or the moral or ethical standards of
22the postsecondary educational institution.
 
23    Section 25. Term of student-athlete contract. A contract
24for the use of the student-athlete's name, image, likeness, or
25voice that is entered into while the student-athlete is

 

 

SB2338 Enrolled- 12 -LRB102 14260 CMG 19612 b

1participating in an intercollegiate sport at a postsecondary
2educational institution may not extend beyond the
3student-athlete's participation in the sport at the
4institution.
 
5    Section 30. Construction. Nothing in this Act shall be
6construed to modify any requirements or obligations imposed
7under Title IX of the Education Amendments of 1972.
 
8    Section 35. Liability. No postsecondary educational
9institution shall be subject to a claim for damages of any kind
10under this Act, including, but not limited to, a claim for
11unfair trade or competition or tortious interference. No
12postsecondary educational institution shall be subject to a
13claim for damages related to its adoption, implementation, or
14enforcement of any contract, rule, regulation, standard, or
15other requirement in compliance with this Act. This Act is not
16intended to and shall not waive or diminish any applicable
17defenses and immunities, including, but not limited to,
18sovereign immunity applicable to postsecondary educational
19institutions.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law or on July 1, 2021, whichever is later.