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Public Act 102-0042


 

Public Act 0042 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0042
 
SB2338 EnrolledLRB102 14260 CMG 19612 b

    AN ACT concerning education.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the
Student-Athlete Endorsement Rights Act.
 
    Section 5. Definitions. In this Act:
    "Compensation" means anything of value, monetary or
otherwise, including, but not limited to, cash, gifts, in-kind
items of value, social media compensation, payments for
licensing or use of publicity rights, payments for other
intellectual or intangible property rights under federal or
State law, and any other form of payment or remuneration,
except as excluded under this Act. "Compensation" shall not
include:
        (1) tuition, room, board, books, fees, and personal
    expenses that a postsecondary educational institution
    provides to a student-athlete in accordance with the rules
    of the athletic association or conference of which the
    postsecondary educational institution is a member;
        (2) Federal Pell Grants and other State and federal
    grants or scholarships unrelated to, and not awarded
    because of a student-athlete's participation in
    intercollegiate athletics or sports competition;
        (3) any other financial aid, benefits, or awards that
    a postsecondary educational institution provides to a
    student-athlete in accordance with the rules of the
    athletic association or conference of which the
    postsecondary educational institution is a member; or
        (4) the payment of wages and benefits to a
    student-athlete for work actually performed (but not for
    athletic ability or participation in intercollegiate
    athletics) at a rate commensurate with the prevailing rate
    for similar work in the locality of the student-athlete's
    postsecondary educational institution.
    "Image" means any visual depiction, including, but not
limited to, photograph, digital image, rendering, and video.
    "Intercollegiate athletics program" means an
intercollegiate athletics program played at the collegiate
level for which eligibility requirements for participation by
a student-athlete are established by a national association
for the promotion or regulation of collegiate athletics.
    "Likeness" means a physical, digital, rendering, or other
depiction or representation of a student-athlete, including a
student-athlete's uniform number or signature, that reasonably
identifies the student-athlete with particularity.
    "Name" means the first or last name or the nickname of a
student-athlete when used in a context that reasonably
identifies the student-athlete with particularity.
    "Name, image, and likeness agreement" or "publicity rights
agreement" means a contract or other written or oral
arrangement between a student-athlete and a third party
licensee regarding the use of the name, image, likeness, or
voice of the student-athlete.
    "Publicity right" means any right that (i) is licensed
under a publicity rights agreement or (ii) is recognized under
a federal or State law that permits an individual to control
and benefit from the commercial use of the name, image,
likeness, or voice of the individual.
    "Postsecondary educational institution" means a public
university or community college or private university or
college.
    "Social media compensation" means all forms of payment for
engagement on social media received by a student-athlete as a
result of the use of that student-athlete's name, image,
likeness, or voice.
    "Student-athlete" means a student currently enrolled at a
postsecondary educational institution who engages in, is
eligible to engage in, or may be eligible in the future to
engage in, an intercollegiate athletics program at a
postsecondary educational institution. If an individual is
permanently ineligible to participate in a particular
intercollegiate sport, the individual is not a student-athlete
for purposes of that sport.
    "Third party licensee" means any individual or entity that
licenses publicity rights or the use of name, image, likeness,
or voice from any prospective or current student-athlete or
group of student-athletes. "Third party licensee" shall not
include any national association for the promotion or
regulation of collegiate athletics, athletics conference, or
postsecondary educational institution.
 
    Section 10. Compensation. Except as provided in Section
15:
        (1) A student-athlete may earn compensation,
    commensurate with market value, for the use of the name,
    image, likeness, or voice of the student-athlete while
    enrolled at a postsecondary educational institution and
    obtain and retain a certified agent for any matter or
    activity relating to such compensation.
        (2) A student-athlete may not earn compensation in
    exchange for the student-athlete's athletic ability or
    participation in intercollegiate athletics or sports
    competition or agreement or willingness to attend a
    postsecondary educational institution.
        (3) Notwithstanding any other provision of law or
    agreement to the contrary, a student-athlete shall not be
    deemed an employee, agent, or independent contractor of an
    association, a conference, or a postsecondary educational
    institution based on the student-athlete's participation
    in an intercollegiate athletics program.
 
    Section 15. Postsecondary educational institutions;
limitations; prohibitions.
    (a) Except as provided in this Act, a postsecondary
educational institution shall not uphold any contract, rule,
regulation, standard, or other requirement that prevents a
student-athlete of that institution from earning compensation
as a result of the use of the student-athlete's name, image,
likeness, or voice. Any such contract, rule, regulation,
standard, or other requirement shall be void and unenforceable
against the postsecondary educational institution or the
student-athlete. Compensation from the use of a
student-athlete's name, image, likeness, or voice may not
affect the student-athlete's scholarship eligibility,
grant-in-aid, or other financial aid, awards or benefits, or
the student-athlete's intercollegiate athletic eligibility.
Nothing in this Act is intended to alter any State or federal
laws, rules, or regulations regarding the award of financial
aid at postsecondary educational institutions.
    (b) Except as provided in this Act, an athletic
association, conference, or other group or organization with
authority over intercollegiate athletic programs, including,
but not limited to, the National Collegiate Athletic
Association, the National Association of Intercollegiate
Athletics, and the National Junior College Athletic
Association, shall not prevent, or otherwise enforce a
contract, rule, regulation, standard, or other requirement
that prevents a student-athlete at a postsecondary educational
institution from earning compensation as a result of the use
of the student-athlete's name, image, likeness, or voice.
    (c) To protect the integrity of its educational mission
and intercollegiate athletics program, a postsecondary
educational institution may impose reasonable limitations on
the dates and time that a student-athlete may participate in
endorsement, promotional, social media, or other activities
related to the license or use of the student-athlete's name,
image, likeness, or voice. Nothing in this Act shall restrict
a postsecondary educational institution from exercising its
sole discretion to control the authorized use of its marks or
logos or to determine a student-athlete's apparel, gear, or
other wearables during an intercollegiate athletics
competition or institution-sponsored event. A student-athlete
may not receive or enter into a contract for compensation for
the use of the student-athlete's name, image, likeness, or
voice in a way that also uses any registered or licensed marks,
logos, verbiage, name, or designs of a postsecondary
educational institution, unless the postsecondary educational
institution has provided the student-athlete with written
permission to do so prior to execution of the contract or
receipt of compensation. If permission is granted to the
student-athlete, the postsecondary educational institution, by
an agreement of all of the parties, may be compensated for the
use in a manner consistent with market rates. A postsecondary
educational institution may also prohibit a student-athlete
from wearing any item of clothing, shoes, or other gear or
wearables with the name, logo, or insignia of any entity
during an intercollegiate athletics competition or
institution-sponsored event.
    (d) An athletic association, conference, or other group or
organization with authority over intercollegiate athletics
programs, including, but not limited to, the National
Collegiate Athletic Association, the National Association of
Intercollegiate Athletics, and the National Junior College
Athletic Association, shall not enforce a contract, rule,
regulation, standard, or other requirement that prevents a
postsecondary educational institution from participating in an
intercollegiate athletics program as a result of the
compensation of a student-athlete for the use of the
student-athlete's name, image, likeness, or voice.
    (e) A postsecondary educational institution, athletic
association, conference, or other group or organization with
authority over intercollegiate athletics programs, including,
but not limited to, the National Collegiate Athletic
Association, the National Association of Intercollegiate
Athletics, and the National Junior College Athletic
Association, shall not directly or indirectly:
        (1) enter into, or offer to enter into, a publicity
    rights agreement with a prospective or current
    student-athlete; or
        (2) provide a prospective or current student-athlete
    or the student-athlete's family compensation in relation
    to the use of the student-athlete's name, image, likeness,
    or voice.
    (f) A postsecondary educational institution, athletic
association, conference, or other group or organization with
authority over intercollegiate athletics programs, including,
but not limited to, the National Collegiate Athletic
Association, the National Association of Intercollegiate
Athletics, and the National Junior College Athletic
Association, shall not prevent a student-athlete from
obtaining professional representation for purposes of this Act
in relation to name, image, likeness, or voice, or to secure a
publicity rights agreement, including, but not limited to,
representation provided by athlete agents or legal
representation provided by attorneys. A student-athlete shall
provide the postsecondary educational institution with written
notice and a copy of the agreement within 7 days of entering
into a representation agreement with any individual for the
purpose of exploring or securing compensation for use of the
student-athlete's name, image, likeness, or voice.
 
    Section 20. Agents; publicity rights; third party
licensees.
    (a) An agent, legal representative, or other professional
service provider offering services to a student-athlete shall,
to the extent required, comply with the federal Sports Agent
Responsibility and Trust Act and any other applicable laws,
rules, or regulations.
    (b) A grant-in-aid, including cost of attendance, and
other permissible financial aid, awards, or benefits from the
postsecondary educational institution in which a
student-athlete is enrolled shall not be revoked, reduced, nor
the terms and conditions altered, as a result of a
student-athlete earning compensation or obtaining professional
or legal representation pursuant to this Act.
    (c) A student-athlete shall disclose to the postsecondary
educational institution in which the student is enrolled, in a
manner and time prescribed by the institution, the existence
and substance of all publicity rights agreements. Publicity
rights agreements that contemplate cash or other compensation
to the student-athlete that is equal to or in excess of a value
of $500 shall be formalized in a written contract, and the
contract shall be provided to the postsecondary educational
institution in which the student is enrolled prior to the
execution of the agreement and before any compensation is
provided to the student-athlete.
    (d) A student-athlete may not enter into a publicity
rights agreement or otherwise receive compensation for that
student-athlete's name, image, likeness, or voice for services
rendered or performed while that student-athlete is
participating in activities sanctioned by that
student-athlete's postsecondary educational institution if
such services or performance by the student-athlete would
conflict with a provision in a contract, rule, regulation,
standard, or other requirement of the postsecondary
educational institution.
    (e) No booster, third party licensee, or any other
individual or entity, shall provide or directly or indirectly
arrange for a third party to provide compensation to a
prospective or current student-athlete or enter into, or
directly or indirectly arrange for a third party to enter
into, a publicity rights agreement as an inducement for the
student-athlete to attend or enroll in a specific institution
or group of institutions. Compensation for a student-athlete's
name, image, likeness, or voice shall not be conditioned on
athletic performance or attendance at a particular
postsecondary educational institution.
    (f) A postsecondary educational institution may fund an
independent, third-party administrator to support education,
monitoring, disclosures, and reporting concerning name, image,
likeness, or voice activities by student-athletes authorized
pursuant to this Act. A third-party administrator cannot be a
registered athlete agent.
    (g) No postsecondary educational institution shall provide
or directly or indirectly arrange for a third-party to provide
compensation to a prospective or current student-athlete or
enter into, or directly or indirectly arrange for a third
party to enter into, a publicity rights agreement with a
prospective or current student-athlete.
    (h) No student-athlete shall enter into a publicity rights
agreement or receive compensation from a third party licensee
relating to the name, image, likeness, or voice of the
student-athlete before the date on which the student-athlete
enrolls at a postsecondary educational institution.
    (i) No student-athlete shall enter into a publicity rights
agreement or receive compensation from a third party licensee
for the endorsement or promotion of gambling, sports betting,
controlled substances, cannabis, a tobacco or alcohol company,
brand, or products, alternative or electronic nicotine product
or delivery system, performance-enhancing supplements, adult
entertainment, or any other product or service that is
reasonably considered to be inconsistent with the values or
mission of a postsecondary educational institution or that
negatively impacts or reflects adversely on a postsecondary
educational institution or its athletic programs, including,
but not limited to, bringing about public disrepute,
embarrassment, scandal, ridicule, or otherwise negatively
impacting the reputation or the moral or ethical standards of
the postsecondary educational institution.
 
    Section 25. Term of student-athlete contract. A contract
for the use of the student-athlete's name, image, likeness, or
voice that is entered into while the student-athlete is
participating in an intercollegiate sport at a postsecondary
educational institution may not extend beyond the
student-athlete's participation in the sport at the
institution.
 
    Section 30. Construction. Nothing in this Act shall be
construed to modify any requirements or obligations imposed
under Title IX of the Education Amendments of 1972.
 
    Section 35. Liability. No postsecondary educational
institution shall be subject to a claim for damages of any kind
under this Act, including, but not limited to, a claim for
unfair trade or competition or tortious interference. No
postsecondary educational institution shall be subject to a
claim for damages related to its adoption, implementation, or
enforcement of any contract, rule, regulation, standard, or
other requirement in compliance with this Act. This Act is not
intended to and shall not waive or diminish any applicable
defenses and immunities, including, but not limited to,
sovereign immunity applicable to postsecondary educational
institutions.
 
    Section 99. Effective date. This Act takes effect upon
becoming law or on July 1, 2021, whichever is later.

Effective Date: 7/1/2021