HOUSE BILL NO. 4643
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 sections 7a, 8a, 12, and 13; and to repeal acts and parts of acts.
the people of the state of michigan enact:
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 the college athlete's name, image, or likeness rights; to provide for certain other measures related to the protection of a college athlete's use of the college athlete's name, image, or likeness rights; to provide for the powers and duties of certain state governmental officers and entities; and to provide remedies.
Sec. 1. (1) As used in this act: , "postsecondary
(a) "NIL" means name, image, or likeness.
(b) "Postsecondary educational institution" means a public or private institution in this state that offers a degree or course of study beyond the twelfth grade and receives state or federal funding of any kind.
(2) A postsecondary educational institution shall not uphold do any of the following:
(a) Uphold any rule, requirement, standard, or other limitation that prevents a student of that institution from fully participating in intercollegiate athletics without penalty based upon on the student earning compensation as a result of the student's use of his or her name, image, or likeness the student's NIL rights. Earning compensation from the use of a student's name, image, or likeness NIL rights shall must not affect a student's scholarship eligibility or renewal.
(b) Comply with any investigations, regulations, or rules of an athletic association, conference, or organization with authority over intercollegiate sports related to agency agreements, NIL agreements, NIL compensation, or NIL activities.
(c) Report any information about prospective or current college athletes' NIL agreements or NIL compensation, individually or in aggregate, to an athletic association, conference, or organization with authority over intercollegiate sports.
Sec. 2. An athletic association, conference, or other group or organization with authority over intercollegiate athletics, including, but not limited to, the National Collegiate Athletic Association, shall not do either any of the following:
(a) Prevent a student of a postsecondary educational institution from fully participating in intercollegiate athletics without penalty based upon on the student earning compensation as a result of the student's use of his or her name, image, or likeness the student's NIL rights.
(b) Prevent a postsecondary educational institution from fully participating in intercollegiate athletics without penalty based upon on a student's use of his or her name, image, or likeness the student's NIL rights.
(c) Accept a complaint, open an investigation, threaten a penalty, impose a penalty, or take any other adverse action against a prospective or current college athlete, an athlete agent, a postsecondary educational institution, an athletic program, or a third party as a result of engaging in activities protected by this act.
(d) Require a prospective or current college athlete, an athlete agent, an institution, or a third party to report any information about NIL agreements or NIL compensation to an athletic association, conference, or organization with authority over intercollegiate sports.
(e) Authorize, cause, or require an institution to take an action prohibited by this act.
Sec. 3. (1) A postsecondary educational institution, athletic association, conference, or other group or organization with authority over intercollegiate athletics shall not do either any of the following:
(a) Provide a prospective college athlete who will attend a postsecondary educational institution with compensation in relation to the athlete's name, image, or likeness rights.
(a) (b) Prevent a student who resides in this state and participates in intercollegiate athletics from obtaining professional representation in relation to contracts or legal matters regarding opportunities to be compensated for use of the student's name, image, or likeness NIL rights, including, but not limited to, representation provided by an athlete agent or legal representation provided by an attorney.
(b) Subject to subsection (2), serve as an athlete agent for a prospective or current college athlete.
(c) Attempt to influence a prospective or current college athlete's selection of an athlete agent.
(d) Interfere with lawful communications between a college athlete and an athlete agent when the college athlete is not participating in mandatory athletic activities.
(e) Own, control, or sublicense college student athletes' NIL group licensing rights for college team video games, jerseys, or trading cards.
(2) Notwithstanding subsection (1)(b), postsecondary educational institutions may arrange or help arrange NIL agreements and NIL compensation for a prospective or current college athlete, but shall not collect a commission for these NIL activities or serve as an athlete agent.
Sec. 4. For purposes of this act, an athletics grant-in aid or stipend scholarship from a postsecondary educational institution in which a student is enrolled is not compensation for use of a student's name, image, or likeness NIL rights, and the institution shall not revoke or reduce an athletics grant-in aid or stipend scholarship based upon on a student earning compensation in accordance with this act.
Sec. 5. (1) A postsecondary educational institution, athletic association, conference, or other group or organization with authority over intercollegiate athletics shall not interfere with or prevent a student from fully participating in intercollegiate athletics without penalty based upon on the student obtaining professional representation in relation to contracts or legal matters regarding the student's opportunities to earn compensation for the student's use of his or her name, image, or likeness the student's NIL 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, including, but not limited to, the National Collegiate Athletic Association, shall not prevent a postsecondary educational institution from fully participating in intercollegiate athletics without penalty as a result of a student obtaining professional representation in relation to contracts or legal matters regarding the student's opportunities to earn compensation for the student's use of his or her name, image, or likeness the student's NIL 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 shall not enter into an apparel contract providing compensation to the student for use of his or her name, image, or likeness the student's NIL rights that requires the student to display a sponsor's apparel, or otherwise advertise for a sponsor, during official team activities if the provision is in conflict conflicts with a provision of the student's postsecondary educational institution's team contract.
Sec. 7. (1) A postsecondary educational institution may require a student who intends to enter into a verbal or written opportunity or contract that would provide compensation to the student for use of his or her name, image, or likeness the student's NIL rights shall to disclose the proposed opportunity or contract to a designated official of the postsecondary educational institution that the student attends, as designated by that institution, at least up to 7 days prior to before committing to the opportunity or contract, for review by that institution. A postsecondary educational institution shall keep confidential an opportunity or contract disclosed to the institution under this subsection, and any record the institution keeps of that opportunity or contract is exempt from disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(2) If the postsecondary educational institution described in subsection (1) identifies a conflict between the student's proposed opportunity or contract and any existing agreements of the postsecondary educational institution, the postsecondary educational institution shall may communicate that conflict to the student so that the student 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 postsecondary educational institution in accordance with this section.
(3) A team contract of a postsecondary educational institution's athletic program shall must not prevent a student from receiving compensation for using his or her name, image, or likeness the student's NIL rights for a commercial purpose when the student is not engaged in official team activities.
(4) This section does not apply to a contract entered into, modified, or renewed on or before the effective date of this act.January 4, 2021.
Sec. 7a. An NIL agreement to pay a prospective or current college athlete at least $5,000.00 in NIL compensation in a calendar year must be executed in writing and include all of the following information:
(a) The legal names, physical addresses, and telephone numbers of all persons that are legally responsible for paying the NIL compensation.
(b) The amount of each NIL compensation payment, the total of all NIL compensation payments, and a description of every other benefit that will be paid to the athlete.
(c) The date on which each NIL compensation payment will be made.
(d) All of the athlete's NIL obligations required to receive the NIL compensation.
(e) The beginning and end date of the agreement.
(f) Any options the parties have for revising, extending, or terminating the agreement.
(g) Any terms of the agreement that would allow the paying party to not pay the athlete any portion of the NIL compensation.
Sec. 8. A legal settlement, including one arising under this act, shall must not permit noncompliance with this act.
Sec. 8a. (1) An athlete agency agreement to represent a prospective or current college athlete terminates at the end of the athlete's intercollegiate athletics eligibility, but the parties may enter into a new agency agreement thereafter.
(2) An athlete agency or group licensing agreement that offers or provides a prospective or current college athlete or the athlete's parent or legal guardian an advance payment or benefit in exchange for any future NIL or professional sports earnings or representation is void and prohibited.
Sec. 10. (1) This act does not require a postsecondary educational institution, athletic association, conference, or other group or organization with authority over intercollegiate athletics to identify, create, facilitate, negotiate, or otherwise enable opportunities for a student to earn compensation for the student's use of his or her name, image, or likeness the student's NIL rights.
(2) This act does not establish or bestow the right of a student to use the name, trademarks, services marks, logos, symbols, or any other intellectual property, whether registered or not, of a postsecondary educational institution, athletic association, conference, or other group or organization with authority over intercollegiate athletics , in furtherance of the student's opportunities to earn compensation for the student's use of his or her name, image, or likeness the student's NIL rights.
(3) This act does not limit the right of a 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 intercollegiate varsity athletics.
(d) Disciplinary rules and standards generally applicable to all students of the postsecondary educational institution.
(4) An entity created or contracted by a postsecondary educational institution to operate or otherwise control parts of its intercollegiate athletic programs that are related to this act has the same rights, duties, and protections, and is subject to the same prohibitions, applicable to the postsecondary educational institution under this act.
(5) A postsecondary educational institution shall not directly or indirectly circumvent any provision of this act.
Sec. 12. (1) A prospective or current college athlete, an athlete agent, a postsecondary educational institution or a supporting foundation of the institution, an entity acting on behalf of a postsecondary educational institution, or a third party that is subjected to an actual or threatened complaint, investigation, penalty, or other adverse action of an athletic association, conference, or other organization with authority over intercollegiate sports for engaging in activities permitted under this act may bring a civil action for damages, reasonable attorney fees, injunctive relief, and any other remedy available by law.
(2) The attorney general may bring a civil action on behalf of an aggrieved person as described in subsection (1) for damages to be paid to that person and for injunctive relief.
Sec. 13. This act applies to any applicable agreement or contract entered into, renewed, modified, or extended on or after the effective date of the amendatory act that added this section.
Enacting section 1. Sections 9 and 11 of 2020 PA 366, MCL 390.1739 and 390.1741, are repealed.