§ 6438-C — Student-athlete compensation

§ 6438-c. Student-athlete compensation. 1. For the purposes of this\nsection:\n (a) "student-athlete" shall mean (i) a student enrolled at a college\nand participating in intercollegiate athletics, or (ii) an individual\nwho has completed at least their sophomore year of high school or\ninternational equivalent and is eligible, or may in the future be\neligible, to attend a college and participate in intercollegiate\nathletics. Such term shall not include an individual permanently\nineligible to participate in a particular interscholastic or\nintercollegiate sport; and\n (b) "team contract" shall mean any written agreement between a\nstudent-athlete and a college, or division, department, program or team\nthereof, which includes goals and objectives, standards, prohibitions,\nbroadcast, advertising or marketing rights or consents, rules or\nexpectations applicable to the student-athlete.\n 2. (a) A college shall not uphold any rule, requirement, standard, or\nother limitation that prevents a student-athlete from earning\ncompensation pursuant to this section as a result of the use of the\nstudent-athlete's name, image, or likeness.\n (b) An athletic association, conference, or other group or\norganization with authority over intercollegiate athletics, including,\nbut not limited to, the National Collegiate Athletic Association (NCAA),\nshall not prevent a student-athlete from earning compensation pursuant\nto this section as a result of the use of the student-athlete's name,\nimage, or likeness.\n (c) An athletic association, conference, or other group or\norganization with authority over intercollegiate athletics, including,\nbut not limited to, the NCAA, shall not prevent a college from: (i)\nparticipating in intercollegiate athletics as a result of allowing a\nstudent-athlete pursuant to this section from earning compensation as a\nresult of the use of the student-athlete's name, image, or likeness; or\n(ii) identifying, facilitating, enabling, or supporting opportunities\nfor a student-athlete to earn compensation for the student-athlete's\nname, image, or likeness.\n (d) An athletic association, conference, or other group or\norganization with authority over intercollegiate athletics, including,\nbut not limited to the NCAA, shall not and shall not authorize its\nmember institutions to:\n (i) prevent a college from participation in intercollegiate athletics\nbecause a student-athlete in attendance has previously earned or intends\nto earn compensation for the use of his or her name, image, or likeness;\n (ii) entertain a complaint, open an investigation, or take any other\nadverse action against a college for engaging in any activity protected\nin this section or for involvement in a student-athlete's name, image,\nor likeness; or\n (iii) penalize or prevent a college from participation in\nintercollegiate athletics because an individual or entity whose purpose\nincludes supporting or benefitting the college or its athletic programs\nor student-athletes violates the collegiate athletic association's rules\nor regulations with regard to a student-athlete's name, image, or\nlikeness.\n 3. A college, athletic association, conference, or other group or\norganization with authority over intercollegiate athletics shall not\nprovide a prospective student-athlete with compensation in relation to\nthe student-athlete's name, image, or likeness.\n 4. (a) A college, athletic association, conference, or other group or\norganization with authority over intercollegiate athletics shall not\nprevent a student-athlete from obtaining professional representation in\nrelation to name, image, or likeness contracts or legal matters,\nincluding, but not limited to, representation provided by athlete agents\nor legal representation provided by attorneys.\n (b) Professional representation obtained by a student-athlete shall be\nfrom persons registered and/or licensed by the state. Professional\nrepresentation provided by athlete agents shall be by persons registered\npursuant to article thirty-nine-E of the general business law. Legal\nrepresentation of student-athletes shall be by attorneys licensed\npursuant to article fifteen of the judiciary law.\n (c) Athlete agents representing student-athletes shall comply with the\nfederal Sports Agent Responsibility and Trust Act, established in\nchapter 104 of title 15 of the United States Code, in their\nrelationships with student-athletes.\n 5. A scholarship from the college in which a student-athlete is\nenrolled that provides the student-athlete with the cost of attendance\nat that college is not compensation for purposes of this section, and a\nscholarship shall not be revoked due to earning compensation as a result\nof the use of the student-athlete's name, image, or likeness, or due to\nobtaining legal or athletic agent representation in relation to name,\nimage, or likeness matters.\n 6. (a) A student-athlete shall not enter into a contract providing\ncompensation to the student-athlete for use of the student-athlete's\nname, image, or likeness if a provision of the contract causes a\nconflict pursuant to paragraph (d) of this subdivision.\n (b) A student-athlete who enters into a contract providing\ncompensation to the student-athlete for use of the student-athlete's\nname, image, or likeness shall disclose the contract in advance of\nexecuting it to an official of the college, as designated by the\ncollege.\n (c) A college asserting a conflict pursuant to paragraph (a) of this\nsubdivision shall disclose to the student-athlete or the\nstudent-athlete's legal representation the relevant contractual\nprovisions that are in conflict; provided, however, that a college shall\nnot be required to disclose any financial terms of such contract unless\notherwise required by applicable law.\n (d) A college asserting a conflict pursuant to paragraph (a) of this\nsubdivision may assert a conflict based on, but not limited to, the\nfollowing grounds:\n (i) the proposed contract would cause the student-athlete to violate\nthe team contract; or\n (ii) the proposed contract would cause the student-athlete to violate\nthe college's student handbook or code of conduct; or\n (iii) the proposed contract would conflict with an existing contract\nor sponsorship the college participates in; or\n (iv) the proposed contract would reasonably be judged to cause\nfinancial loss or reputational damage to the college; or\n (v) the proposed contract would require actions by the student-athlete\nduring team activities; or\n (vi) the proposed contract would require actions by the\nstudent-athlete during scheduled classes; or\n (vii) the proposed contract would use the college's name, brand,\ncopywritten materials, trademarks, service marks, symbols, nicknames,\ntrade dress, insignia, mascot, uniform styles, colors, imagery, campus\nlandmarks, or any other intellectual property or indicia; or\n (viii) the proposed contract would require the student-athlete to\ndisplay a sponsor's product, logo, brand, or other indicia, or otherwise\nadvertise for a sponsor, during official team activities; or\n (ix) the proposed contract would require the student-athlete to\ndisplay a sponsor's product, logo, brand or other indicia, or otherwise\nadvertise for a sponsor at any time, and such sponsor is a competitor\nof, or offers products or services within the same category as a sponsor\nof the college.\n 7. A team of a college's athletic program shall not prevent a\nstudent-athlete from using the student-athlete's name, image, or\nlikeness for a commercial purpose when the student-athlete is not\nengaged in official team activities, except where there is a conflict\npursuant to paragraph (d) of subdivision six of this section or any\nother prohibition in this section.\n 8. Each college athletic program that participates in Division 1 NCAA\nathletics shall offer a student-athlete assistance program or programs,\ndesigned to provide student-athletes participating in Division 1\nathletics with tools aimed to enhance their well-being and experiences\nin the classroom, off the field of play, and beyond their tenure as\nstudent-athletes. The student-athlete assistance program may include but\nnot be limited to:\n (a) a dedicated financial distress fund that would support\nstudent-athletes in times of financial need. Disbursements from such\nfund are not compensation for the purposes of this section;\n (b) access to ongoing mental health support services provided by\ncounselors specially trained to understand the unique issues and\npressures student-athletes confront;\n (c) access to broad-based financial literacy training, with a specific\nemphasis on the issues and opportunities relevant to student-athletes,\nduring and beyond their tenure at the college;\n (d) a degree completion assistance program that provides former\nstudent-athletes who disenrolled from the college in good academic\nstanding and who earned the NCAA Academic Progress Rate eligibility\npoint for Division I institutions, before completing their degree,\naccess to need-based financial aid and counseling assistance required to\nsupport undergraduate degree completion;\n (e) access to training regarding sex-based discrimination and\nharassment that ensures student-athletes fully understand their rights\nand responsibilities under the law, including how to make a report of\ndiscrimination or harassment on their campus;\n (f) access to leadership training that will set the conditions for\nstudent-athletes to become successful leaders, improve communication\nskills, make positive decisions, and manage conflict; and\n (g) access to a career development program, positioned to assist\nstudent-athletes in transferring the valuable skills developed during\nintercollegiate athletic participation, to a successful post-college\ncareer.\n * NB There are 2 § 6438-a's\n