SENATE BILL NO. 1174
A bill to amend 2020 PA 366, entitled
"An act to prohibit postsecondary educational institutions in this state and certain athletic organizations from preventing a college athlete from receiving compensation for the use of his or her name, image, or likeness rights,"
by amending the title and sections 1, 2, 3, 4, 5, 6, 7, 8, and 10 (MCL 390.1731, 390.1732, 390.1733, 390.1734, 390.1735, 390.1736, 390.1737, 390.1738, and 390.1740) and by adding section 9a; and to repeal acts and parts of acts.
the people of the state of michigan enact:
An act to prohibit high schools and postsecondary educational institutions in this state and certain athletic sports organizations from preventing a college an amateur athlete from receiving compensation for the use of his or her name, image, or likeness rights; to provide for the powers and duties of certain state and local governmental officers and entities; and to prescribe civil sanctions.
Sec. 1. (1) As used in this act: , "postsecondary
(a) "Amateur athlete" means an athlete who is a resident and is not provided compensation for the time he or she spends competing in or training for an athletic competition. The term includes an individual who engages in, is eligible to engage in, or may be eligible to engage in any high school or intercollegiate contest, game, meet, match, tournament, regatta, or other sporting event. For purposes of this definition, a scholarship or other form of financial support that provides for the cost of attendance at a high school or a postsecondary educational institution is not compensation.
(b) "Amateur sports organization" means a not-for-profit corporation, athletic conference or association, or other group that sponsors, arranges, operates, or determines or sets standards governing athlete or team eligibility for participation in a contest, game, meet, match, tournament, regatta, or other sporting event in which amateur athletes compete. Amateur sports organization includes, but is not limited to, a youth, interscholastic, or intercollegiate sports organization.
(c) "High school" means a public school or nonpublic school in this state that offers at least 1 of grades 9 to 12.
(d) "Nonpublic school" means that term as defined in section 5 of the revised school code, 1976 PA 451, MCL 380.5.
(e) "Postsecondary educational institution" means a public or private institution in this state that offers a degree or course of study beyond the twelfth grade 12 and receives state or federal funding of any kind.
(2) A postsecondary educational institution shall not uphold any rule, requirement, standard, or other limitation that prevents a student of that institution from fully participating in intercollegiate athletics based upon the student earning compensation as a result of the student's use of his or her name, image, or likeness rights. Earning compensation from the use of a student's name, image, or likeness rights shall not affect a student's scholarship eligibility or renewal.
(f) "Public school" means that term as defined in section 5 of the revised school code, 1976 PA 451, MCL 380.5.
(g) "Resident" means either of the following:
(i) An individual who resides in this state.
(ii) An individual who does not reside in this state, but is enrolled in and attending a high school or postsecondary educational institution.
Sec. 2. (1) An athletic association, conference, or other group or organization with authority over intercollegiate athletics, amateur sports organization, including, but not limited to, the National Collegiate Athletic Association, shall not do either of the following:
(a) Prevent a student of a postsecondary educational institution an amateur athlete from fully participating in interscholastic or intercollegiate athletics based upon the student amateur athlete earning compensation as a result of the student's amateur athlete's use of his or her name, image, or likeness rights, or otherwise limit the amateur athlete's ability to earn such compensation.
(b) Prevent a high school or postsecondary educational institution from fully participating in interscholastic or intercollegiate athletics, or otherwise limit such participation, without penalty based upon a student's use of his or her an amateur athlete earning compensation for the use of his or her name, image, or likeness rights.
(2) A high school or postsecondary educational institution shall not uphold any rule, requirement, standard, or other limitation that prevents an amateur athlete who is a student of that high school or postsecondary educational institution from fully participating in interscholastic or intercollegiate athletics based upon the amateur athlete earning compensation for the use of his or her name, image, or likeness rights.
Sec. 3. A high school, postsecondary educational institution, athletic association, conference, or other group or organization with authority over intercollegiate athletics amateur sports organization, including, but not limited to, the National Collegiate Athletic Association, shall not do either of the following:
(a) Provide a prospective college an amateur athlete who attends or will attend a high school or postsecondary educational institution with compensation in relation to the athlete's name, image, or likeness rights.
(b) Prevent a student an amateur athlete who resides in this state and participates, or aims to participate, in interscholastic or intercollegiate athletics from obtaining professional representation in relation to contracts or legal matters regarding opportunities to be compensated for use of the student's amateur athlete's name, image, or likeness rights, including, but not limited to, representation provided by an athlete agent or legal representation provided by an attorney, or otherwise limit that amateur athlete's ability to obtain such representation.
Sec. 4. (1) For purposes of this act, an athletics grant-in aid grant-in-aid or stipend scholarship from a high school or postsecondary educational institution in which a student an amateur athlete is enrolled is not compensation for use of a student's an amateur athlete's name, image, or likeness rights. , and the
(2) A high school or postsecondary educational institution shall not revoke or reduce an athletics grant-in aid grant-in-aid or stipend scholarship based upon a student an amateur athlete earning compensation in accordance with this act.
Sec. 5. (1) A high school, postsecondary educational institution, athletic association, conference, or other group or amateur sports organization with authority over intercollegiate athletics shall not interfere with or prevent a student an amateur athlete from fully participating in interscholastic or intercollegiate athletics based upon the student amateur athlete obtaining professional representation in relation to contracts or legal matters regarding the student's amateur athlete's opportunities to earn compensation for the student's amateur athlete's use of his or her name, image, or likeness rights, including, but not limited to, representation provided by an athlete agent or financial advisor, or legal representation provided by an attorney.
(2) An athletic association, conference, or other group or organization with authority over intercollegiate athletics, amateur sports organization, including, but not limited to, the National Collegiate Athletic Association, shall not prevent a high school or postsecondary educational institution from fully participating in interscholastic or intercollegiate athletics without penalty as a result of a student an amateur athlete obtaining professional representation in relation to contracts or legal matters regarding the student's amateur athlete's opportunities to earn compensation for the student's amateur athlete's use of his or her name, image, or likeness rights, including, but not limited to, representation provided by an athlete agent or financial advisor, or legal representation by an attorney.
(3) For purposes of this section, professional representation by an athlete agent, financial advisor, or attorney must be provided by persons licensed in this state, as applicable.
Sec. 6. A student An amateur athlete shall not enter into an apparel contract providing compensation to the student amateur athlete for use of his or her name, image, or likeness rights that requires the student amateur athlete to display a sponsor's apparel, or otherwise advertise for a sponsor, during official team activities if the provision is in conflict with a provision of the student's amateur athlete's high school's or postsecondary educational institution's team contract.
Sec. 7. (1) A student An amateur athlete who intends to enter into a verbal or written opportunity or contract that would provide compensation to the student amateur athlete for use of his or her name, image, or likeness rights shall disclose the proposed opportunity or contract to a designated official of the high school or postsecondary educational institution that the student amateur athlete attends, as designated by that high school or postsecondary educational institution, at least 7 days prior to before committing to the opportunity or contract, for review by that high school or postsecondary educational institution.
(2) If the high school or postsecondary educational institution described in subsection (1) identifies a conflict between the student's amateur athlete's proposed opportunity or contract and any existing agreements of the high school or postsecondary educational institution, the high school or postsecondary educational institution shall communicate that conflict to the student amateur athlete so that the student amateur athlete may negotiate a revision of the opportunity or contract to avoid the conflict and that revision is subject to additional review and approval by the high school or postsecondary educational institution in accordance with this section.
(3) A team contract of a high school or postsecondary educational institution's athletic program shall not prevent a student an amateur athlete from receiving compensation for using his or her name, image, or likeness rights for a commercial purpose when the student amateur athlete is not engaged in official team activities.
(4) This For a contract involving an amateur athlete who attends a postsecondary educational institution, this section does not apply to a the contract if it was entered into, modified, or renewed on or before the effective date of this act.January 4, 2021. For a contract involving an amateur athlete who attends a high school, this section does not apply to the contract if it was entered into, modified, or renewed on or before the effective date of the amendatory act that added section 9a.
Sec. 8. (1) A legal settlement arising under this act shall does not permit noncompliance with this act.
(2) An amateur sports organization or other person that violates this act may be ordered to pay a civil fine of not more than $100,000.00. A violation of this act may be prosecuted by the prosecutor of the county in which the violation occurred, or by the attorney general.
Sec. 9a. By June 30, 2023, any nonprofit trade association that represents high schools in this state shall provide to the chair of the appropriations committee of the house of representatives and the chair of the appropriations committee of the senate a written summary of the preparedness of the association's respective member institutions toward implementation of this act.
Sec. 10. (1) This act does not require a high school, postsecondary educational institution, athletic association, conference, or other group or amateur sports organization with authority over intercollegiate athletics to identify, create, facilitate, negotiate, or otherwise enable opportunities for a student an amateur athlete to earn compensation for the student's amateur athlete's use of his or her name, image, or likeness rights.
(2) This act does not establish or bestow the right of a student an amateur athlete to use the name, trademarks, services marks, logos, symbols, or any other intellectual property, whether registered or not, of a high school, postsecondary educational institution, athletic association, conference, or other group or amateur sports organization with authority over intercollegiate athletics, in furtherance of the student's amateur athlete's opportunities to earn compensation for the student's amateur athlete's use of his or her name, image, or likeness rights.
(3) This act does not limit the right of a high school or postsecondary educational institution to establish and enforce any of the following:
(a) Academic standards, requirements, regulations, or obligations for its students.
(b) Team rules of conduct or other rules of conduct.
(c) Standards or policies regarding the governance or operation of or participation in interscholastic athletics or intercollegiate varsity athletics.
(d) Disciplinary rules and standards generally applicable to all students of the high school or postsecondary educational institution.
Enacting section 1. Enacting section 1 of 2020 PA 366 is repealed.
Enacting section 2. Section 11 of 2020 PA 366, MCL 390.1741, is repealed.
Enacting section 3. This amendatory act takes effect 90 days after the date it is enacted into law.