Section 173.280

Title XI EDUCATION AND LIBRARIES

Chapter 173

Effective - 28 Aug 2022, 3 histories, see footnote   (history) 

  173.280.  Compensation of student athletes permitted, when — grant-in-aid or stipend eligibility not impacted, when — financial development program, purpose — civil action, when — applicability. — 1.  As used in this section, the following terms mean:

  (1)  "Postsecondary educational institution", any campus of a public or private institution of higher education in this state that is subject to the coordinating board for higher education under section 173.005;

  (2)  "Student athlete", an individual who participates or has participated in an intercollegiate sport for a postsecondary educational institution.  Student athlete shall not be construed to apply to an individual's participation in a college intramural sport or in a professional sport outside of intercollegiate athletics;

  (3)  "Third party", any individual or entity, including any athlete agent, other than a postsecondary educational institution, athletic conference, or athletic association.

  2.  (1)  No postsecondary educational institution shall uphold any rule, requirement, standard, or other limitation that prevents a student of that institution from fully participating in intercollegiate athletics without penalty and earning compensation as a result of the use of the student's name, image, likeness rights, or athletic reputation.  A student athlete earning compensation from the use of a student's name, image, likeness rights, or athletic reputation shall not affect such student athlete's grant-in-aid or stipend eligibility, amount, duration, or renewal.

  (2)  No postsecondary educational institution shall interfere with or prevent a student from fully participating in intercollegiate athletics or obtaining professional representation in relation to contracts or legal matters, including, but not limited to, representation provided by athlete agents, financial advisors, or legal representation provided by attorneys.

  3.  A grant-in-aid or stipend from the postsecondary educational institution in which a student is enrolled shall not be construed to be compensation for use of the student's name, image, likeness rights, or athletic reputation for purposes of this section, and no grant-in-aid or stipend shall be revoked or reduced as a result of a student earning compensation under this section.

  4.  (1)  No student athlete shall enter into an apparel, equipment, or beverage contract providing compensation to the athlete for use of the athlete's name, image, likeness rights, or athletic reputation if the contract requires the athlete to display a sponsor's apparel, equipment, or beverage or otherwise advertise for the sponsor during official team activities if such provisions are in conflict with a provision of the postsecondary institution's current licenses or contracts.

  (2)  (a)  Except with the prior written consent of the student athlete's postsecondary educational institution, a student athlete shall not enter into a contract for compensation for the use of such student athlete's name, image, likeness rights, or athletic reputation, if such institution determines that a term of the contract conflicts with a term of a contract to which such institution is a party.

  (b)  A postsecondary educational institution or any officer, director, or employee of such institution, including but not limited to a coach, member of the coaching staff, or any individual associated with the institutions athletic department, may identify or otherwise assist with opportunities for a student athlete to earn compensation from a third party for the use of the student athlete's name, image, likeness rights, or athletic reputation, provided that such individual shall not:

  a.  Serve as the athlete's agent;

  b.  Receive compensation from the student athlete or a third party for facilitating or enabling such opportunities;

  c.  Attempt to influence an athlete's choice of professional representation related to such opportunities;

  d.  Attempt to reduce such athlete's opportunities from competing third parties; or

  e.  Be present at any meeting between a student athlete and a third party who provides for a student athlete's compensation, where the student athlete's name, image, likeness rights, or athletic reputation contract for compensation is negotiated or completed.

  (3)  Before any contract for compensation for the use of a student athlete's name, image, likeness rights, or athletic reputation is executed, and before any compensation is provided to the student athlete in advance of a contract, the student athlete shall disclose that contract to his or her postsecondary educational institution in a manner prescribed by such institution.

  (4)  A postsecondary educational institution or any officer, director, or employee of such institution or entity shall not compensate a student athlete, prospective student athlete, or the family of such individuals, or cause compensation to be directed to a prospective student athlete, or the family of a student athlete or the family of a prospective student athlete, for the use of such student athlete or prospective student athlete's name, image, likeness rights, or athletic reputation.

  5.  No contract of a postsecondary educational institution's athletic program shall prevent a student athlete from receiving compensation for using the student athlete's name, image, likeness rights, or athletic reputation for a commercial purpose when the athlete is not engaged in official mandatory team activities that are recorded in writing and can be made publicly available upon request.

  6.  (1)  Postsecondary educational institutions that enter into commercial agreements that directly or indirectly require the use of a student athlete's name, image, likeness, or athletic reputation shall conduct a financial development program once per year for their athletes.

  (2)  The financial development program shall not include any marketing, advertising, referral, or solicitation by providers of financial products or services.  Such program shall, at a minimum, include information concerning financial aid, debt management, and a recommended budget for student athletes based on the current year's cost of attendance.  The workshop shall also include information on time management skills necessary for success as a student athlete and available academic resources.

  (3)  Postsecondary educational institutions shall help distribute informational materials for such programs as needed.

  (4)  Postsecondary educational institutions shall inform their athletes of such program meetings and provide appropriate meeting space.

  7.  Student athlete representation shall be by attorneys or agents licensed by this state.

  8.  (1)  Any student athlete may bring a civil action against third parties that violate this section for appropriate injunctive relief or actual damages, or both.  Such action shall be brought in the county where the violation occurred, or is about to occur, and the court shall award damages and court costs to a prevailing plaintiff.

  (2)  Student athletes bringing an action under this section shall not be deprived of any protections provided under law with respect to a controversy that arises and shall have the right to adjudicate claims that arise under this section.

  9.  No legal settlement shall conflict with the provisions of this section.

  10.  This section shall apply only to agreements or contracts entered into, modified, or renewed on or after August 28, 2021.  Such agreements or contracts include, but are not limited to, the national letter of intent, an athlete's financial aid agreement, commercial contracts in the athlete group licensing market, and athletic conference or athletic association rules or bylaws.

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(L. 2021 H.B. 297, A.L. 2022 S.B. 718)