Illinois General Assembly - Full Text of HB1175
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Full Text of HB1175  102nd General Assembly

HB1175eng 102ND GENERAL ASSEMBLY



 


 
HB1175 EngrossedLRB102 03191 CMG 13204 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 5. The Student-Athlete Endorsement Rights Act is
5amended by changing Sections 5, 10, 15, 20, and 25 and by
6adding Section 22 as follows:
 
7    (110 ILCS 190/5)
8    Sec. 5. Definitions. In this Act:
9    "Booster" means a person or entity that has made, within
10the past 5 years, a financial contribution in an amount
11greater than $1,000 to a postsecondary educational
12institution's athletics department or an athletics booster
13organization of that institution. The purchase of season or
14single game tickets to any athletics event is not a financial
15contribution for purposes of determining whether an individual
16or entity is a booster.
17    "Compensation" means anything of value, monetary or
18otherwise, including, but not limited to, cash, gifts, in-kind
19items of value, social media compensation, payments for
20licensing or use of publicity rights, payments for other
21intellectual or intangible property rights under federal or
22State law, and any other form of payment or remuneration,
23except as excluded under this Act. "Compensation" shall not

 

 

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1include:
2        (1) tuition, room, board, books, fees, and personal
3    expenses that a postsecondary educational institution
4    provides to a student-athlete in accordance with the rules
5    of the athletic association or conference of which the
6    postsecondary educational institution is a member;
7        (2) Federal Pell Grants and other State and federal
8    grants or scholarships unrelated to, and not awarded
9    because of a student-athlete's participation in
10    intercollegiate athletics or sports competition;
11        (3) any other financial aid, benefits, or awards that
12    a postsecondary educational institution provides to a
13    student-athlete in accordance with the rules of the
14    athletic association or conference of which the
15    postsecondary educational institution is a member; or
16        (4) the payment of wages and benefits to a
17    student-athlete for work actually performed (but not for
18    athletic ability or participation in intercollegiate
19    athletics) at a rate commensurate with the prevailing rate
20    for similar work in the locality of the student-athlete's
21    postsecondary educational institution.
22    "Enrolled" means registered for courses or attending
23athletic practice or class at a postsecondary educational
24institution.
25    "Image" means any visual depiction, including, but not
26limited to, photograph, digital image, rendering, and video.

 

 

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1    "Intercollegiate athletics program" means an
2intercollegiate athletics program played at the collegiate
3level for which eligibility requirements for participation by
4a student-athlete are established by a national association
5for the promotion or regulation of collegiate athletics.
6    "Likeness" means a physical, digital, rendering, or other
7depiction or representation of a student-athlete, including a
8student-athlete's uniform number or signature, that reasonably
9identifies the student-athlete with particularity and is not
10reasonably considered to be a generic representation of a
11member of an intercollegiate athletics program.
12    "Name" means the first or last name or the nickname of a
13student-athlete when used in a context that reasonably
14identifies the student-athlete with particularity.
15    "Name, image, and likeness agreement" or "publicity rights
16agreement" means a contract or other written or oral
17arrangement between a student-athlete and a third party
18licensee regarding the use of the name, image, likeness, or
19voice of the student-athlete.
20    "Publicity right" means any right that (i) is licensed
21under a publicity rights agreement or (ii) is recognized under
22a federal or State law that permits an individual to control
23and benefit from the commercial use of the name, image,
24likeness, or voice of the individual.
25    "Postsecondary educational institution" means a public
26university or community college or private university or

 

 

HB1175 Engrossed- 4 -LRB102 03191 CMG 13204 b

1college.
2    "Social media compensation" means all forms of payment for
3engagement on social media received by a student-athlete as a
4result of the use of that student-athlete's name, image,
5likeness, or voice.
6    "Student-athlete" means a student currently enrolled at a
7postsecondary educational institution who engages in, is
8eligible to engage in, or may be eligible in the future to
9engage in, an intercollegiate athletics program at a
10postsecondary educational institution. If an individual is
11permanently ineligible to participate in a particular
12intercollegiate sport, the individual is not a student-athlete
13for purposes of that sport.
14    "Third party licensee" means any individual or entity that
15licenses publicity rights or the use of name, image, likeness,
16or voice from any prospective or current student-athlete or
17group of student-athletes. "Third party licensee" shall not
18include any national association for the promotion or
19regulation of collegiate athletics, athletics conference, or
20postsecondary educational institution.
21(Source: P.A. 102-42, eff. 7-1-21.)
 
22    (110 ILCS 190/10)
23    Sec. 10. Compensation. Except as provided in Section 15:
24        (1) A student-athlete may earn compensation,
25    commensurate with market value, for the use of the name,

 

 

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1    image, likeness, or voice of the student-athlete while
2    enrolled at a postsecondary educational institution and
3    obtain and retain an a certified agent for any matter or
4    activity relating to such compensation.
5        (2) A student-athlete may not earn compensation in
6    exchange for the student-athlete's athletic ability or
7    participation in intercollegiate athletics or sports
8    competition or agreement or willingness to attend a
9    postsecondary educational institution.
10        (3) Notwithstanding any other provision of law or
11    agreement to the contrary, a student-athlete shall not be
12    deemed an employee, agent, or independent contractor of an
13    association, a conference, or a postsecondary educational
14    institution based on the student-athlete's participation
15    in an intercollegiate athletics program.
16(Source: P.A. 102-42, eff. 7-1-21.)
 
17    (110 ILCS 190/15)
18    Sec. 15. Postsecondary educational institutions;
19limitations; prohibitions.
20    (a) Except as provided in this Act, a postsecondary
21educational institution shall not uphold any contract, rule,
22regulation, standard, or other requirement that prevents a
23student-athlete of that institution from earning compensation
24as a result of the use of the student-athlete's name, image,
25likeness, or voice. Any such contract, rule, regulation,

 

 

HB1175 Engrossed- 6 -LRB102 03191 CMG 13204 b

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

 

 

HB1175 Engrossed- 7 -LRB102 03191 CMG 13204 b

1related to the license or use of the student-athlete's name,
2image, likeness, or voice. Nothing in this Act shall restrict
3a postsecondary educational institution from exercising its
4sole discretion to control the authorized use of its marks or
5logos or to determine a student-athlete's apparel, gear, or
6other wearables during an intercollegiate athletics
7competition or institution-sponsored event. A student-athlete
8may not receive or enter into a contract for compensation for
9the use of the student-athlete's name, image, likeness, or
10voice in a way that also uses any registered or licensed marks,
11logos, verbiage, name, or designs of a postsecondary
12educational institution, unless the postsecondary educational
13institution has provided the student-athlete with written
14permission to do so prior to execution of the contract or
15receipt of compensation. If permission is granted to the
16student-athlete, the postsecondary educational institution, by
17an agreement of all of the parties, may be compensated for the
18use in a manner consistent with market rates. A postsecondary
19educational institution may also prohibit a student-athlete
20from wearing any item of clothing, shoes, or other gear or
21wearables with the name, logo, or insignia of any entity
22during an intercollegiate athletics competition or
23institution-sponsored event.
24    (d) An athletic association, conference, or other group or
25organization with authority over intercollegiate athletics
26programs, including, but not limited to, the National

 

 

HB1175 Engrossed- 8 -LRB102 03191 CMG 13204 b

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

 

 

HB1175 Engrossed- 9 -LRB102 03191 CMG 13204 b

1Association, the National Association of Intercollegiate
2Athletics, and the National Junior College Athletic
3Association, shall not prevent a student-athlete from
4obtaining professional representation for purposes of this Act
5in relation to name, image, likeness, or voice, or to secure a
6publicity rights agreement, including, but not limited to,
7representation provided by athlete agents or legal
8representation provided by attorneys. A student-athlete shall
9provide the postsecondary educational institution with written
10notice and a copy of the agreement in the manner and at a time
11prescribed by the institution within 7 days of entering into a
12representation agreement with any individual for the purpose
13of exploring or securing compensation for use of the
14student-athlete's name, image, likeness, or voice.
15(Source: P.A. 102-42, eff. 7-1-21.)
 
16    (110 ILCS 190/20)
17    Sec. 20. Agents; publicity rights; third party licensees.
18    (a) An agent, legal representative, or other professional
19service provider offering services to a student-athlete shall,
20to the extent required, comply with the federal Sports Agent
21Responsibility and Trust Act and any other applicable laws,
22rules, or regulations.
23    (b) A grant-in-aid, including cost of attendance, and
24other permissible financial aid, awards, or benefits from the
25postsecondary educational institution in which a

 

 

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1student-athlete is enrolled shall not be revoked, reduced, nor
2the terms and conditions altered, as a result of a
3student-athlete earning compensation or obtaining professional
4or legal representation pursuant to this Act.
5    (c) A student-athlete shall disclose to the postsecondary
6educational institution in which the student is enrolled, in a
7manner and time prescribed by the institution, the existence
8and substance of all publicity rights agreements. Publicity
9rights agreements that contemplate cash or other compensation
10to the student-athlete that is equal to or in excess of a value
11of $500 shall be formalized into in a written contract, and the
12contract shall be provided to the postsecondary educational
13institution in the manner and at a time prescribed by the
14institution which the student is enrolled prior to the
15execution of the agreement and before any compensation is
16provided to the student-athlete.
17    (d) A student-athlete may not enter into a publicity
18rights agreement or otherwise receive compensation for that
19student-athlete's name, image, likeness, or voice for services
20rendered or performed while that student-athlete is
21participating in activities sanctioned by that
22student-athlete's postsecondary educational institution if
23such services or performance by the student-athlete would
24conflict with a provision in a contract, rule, regulation,
25standard, or other requirement of the postsecondary
26educational institution.

 

 

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1    (e) No booster, third party licensee, or any other
2individual or entity, shall provide or directly or indirectly
3arrange for a third party to provide compensation to a
4prospective or current student-athlete or enter into, or
5directly or indirectly arrange for a third party to enter
6into, a publicity rights agreement as an inducement for the
7student-athlete to attend or enroll in a specific institution
8or group of institutions. Compensation for a student-athlete's
9name, image, likeness, or voice shall not be conditioned on
10athletic performance or attendance at a particular
11postsecondary educational institution.
12    (f) A postsecondary educational institution may fund an
13independent, third-party administrator to support education,
14monitoring, disclosures, and reporting concerning name, image,
15likeness, or voice activities by student-athletes authorized
16pursuant to this Act. A third-party administrator cannot be a
17registered athlete agent.
18    (g) No postsecondary educational institution shall provide
19or directly or indirectly arrange for a third party to provide
20compensation to a prospective or current student-athlete or
21enter into, or directly or indirectly arrange for a third
22party to enter into, a publicity rights agreement with a
23prospective or current student-athlete. Nothing in this Act
24shall require a postsecondary educational institution to
25directly or indirectly identify, create, facilitate, arrange,
26negotiate, or otherwise enable opportunities for a prospective

 

 

HB1175 Engrossed- 12 -LRB102 03191 CMG 13204 b

1or current student-athlete to enter into a publicity rights
2agreement with a third party.
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(Source: P.A. 102-42, eff. 7-1-21; 102-687, eff. 12-17-21.)
 
24    (110 ILCS 190/22 new)
25    Sec. 22. Educational programming. Postsecondary

 

 

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1educational institutions are encouraged to provide financial
2literacy, brand management, and life skills programming
3designed for student athletes. The programming may include
4information on time management skills necessary for success as
5a student athlete and available academic resources. Marketing,
6advertising, referral, or solicitation information by
7providers of financial products or services may not be
8included in such programming.
 
9    (110 ILCS 190/25)
10    Sec. 25. Term of student-athlete contract. A contract or
11representation agreement relating to for the use of the
12student-athlete's name, image, likeness, or voice that is
13entered into while the student-athlete is participating in an
14intercollegiate sport at a postsecondary educational
15institution may not extend beyond the student-athlete's
16participation in the sport at an the institution.
17(Source: P.A. 102-42, eff. 7-1-21.)