HOUSE BILL NO. 5217
November 07, 2019, Introduced by Reps. Iden,
Hall, Tate and Jones and referred to the Committee on Oversight.
the people of the state of michigan enact:
Sec. 1. (1) As used in this act, "postsecondary educational institution" means a public or private institution in this state that offers a degree or course of study beyond the twelfth grade.
(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 and earning compensation as a result of the use of the student's name, image, likeness rights, or athletic reputation. Earning compensation from the use of a student's name, image, likeness rights, or athletic reputation shall not affect a student's scholarship eligibility or renewal.
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 of the following:
(a) Prevent a student of a postsecondary educational institution from fully participating in intercollegiate athletics and earning compensation as a result of the student's use of the student's name, image, likeness rights, or athletic reputation.
(b) Prevent a postsecondary educational institution from fully participating in intercollegiate athletics without penalty as a result of a student's use of the student's name, image, likeness rights, or athletic reputation.
Sec. 3. A postsecondary educational institution, athletic association, conference, or other group or organization with authority over intercollegiate athletics shall not do either 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, likeness rights, or athletic reputation.
(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, including, but not limited to, representation provided by an athlete agent or legal representation provided by an attorney.
Sec. 4. For purposes of this act, an athletics grant-in aid or a stipend scholarship from a postsecondary educational institution in which a student is enrolled is not compensation for use of a student's name, image, likeness rights, or athletic reputation, and the institution shall not revoke or reduce an athletics grant-in aid or stipend scholarship as a result of 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 as a result of the student obtaining professional representation in relation to contracts or legal matters, 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 college athlete obtaining professional representation in relation to contracts or legal matters, including, but not limited to, representation provided by an athlete agent or financial advisor, or legal representation provided by an attorney.
(3) Professional representation provided by an athlete agent, financial advisor, or attorney shall be by persons licensed by this state, as applicable.
Sec. 6. (1) A college athlete shall not enter into an apparel contract providing compensation to the athlete for use of the athlete's name, image, or likeness rights that requires the 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 athlete's team contract.
(2) A postsecondary educational institution asserting a conflict described in subsection (1) shall disclose to the athlete and the athlete's legal representation, if applicable, the full contract that the institution asserts is in conflict.
(3) A team contract of a postsecondary educational institution's athletic program shall not prevent a college athlete from receiving compensation for using the athlete's name, image, or likeness rights for a commercial purpose when the athlete is not engaged in official team activities.
Sec. 7. (1) This act does not apply to a contract entered into, modified, or renewed on or before the effective date of this act.
(2) A legal settlement arising under this act shall not permit noncompliance with this act.