Stricken language would be deleted from and underlined language would be added to present law. *CRH247* 03/31/2025 9:37:53 AM CRH247 State of Arkansas 1 95th General Assembly A Bill 2 Regular Session, 2025 HOUSE BILL 1917 3 4 By: Representatives M. Shepherd, Evans 5 By: Senator Hester 6 7 For An Act To Be Entitled 8 AN ACT TO AMEND THE ARKANSAS STUDENT-ATHLETE 9 PUBLICITY RIGHTS ACT; TO AMEND THE LAW RELATED TO 10 ATHLETIC PROGRAM FUNDING; AND FOR OTHER PURPOSES. 11 12 13 Subtitle 14 TO AMEND THE ARKANSAS STUDENT -ATHLETE 15 PUBLICITY RIGHTS ACT; AND TO AMEND THE 16 LAW RELATED TO ATHLETIC PROGRAM FUNDING. 17 18 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19 20 SECTION 1. Arkansas Code §§ 4 -75-1303 — 4-75-1305 are amended to read 21 as follows: 22 4-75-1303. Right to compensation. 23 (a) Except as prohibited in this subchapter, a student-athlete shall 24 have the right to enter into a contract and receive compensation for the 25 commercial use of the student -athlete's publicity rights. 26 (b) An institution of higher education, its supporting foundations, or 27 its authorized entities may identify: 28 (1) Identify, create, facilitate, and otherwise enable 29 opportunities for a student -athlete to earn compensation for the commercial 30 use of the student-athlete's publicity rights ; 31 (2) Compensate a student -athlete for the commercial use of the 32 student-athlete's publicity rights; and 33 (3) Enter into an exclusive or nonexclusive license agreement 34 with a student-athlete for the commercial use of the student -athlete's 35 publicity rights. 36 HB1917 2 03/31/2025 9:37:53 AM CRH247 (c)(1) A charitable organization that qualifies as an exempt 1 organization under 26 U.S.C. § 501(c)(3), as it existed on January 1, 2023, 2 shall have the right to compensate student -athletes for the commercial use of 3 the student-athlete's publicity rights. 4 (d) Except as provided in this subchapter or applicable federal law, 5 an institution of higher education shall not uphold any rule, requirement, 6 standard, or other limitation of an athletic association or athletic 7 conference that prevents a student -athlete from earning compensation for the 8 commercial use of the student -athlete's publicity rights An institution of 9 higher education in this state may revoke or rescind an agreement or 10 commitment to provide compensation, a grant -in-aid, or other benefit to a 11 student-athlete who receives or agrees to receive compensation that conflicts 12 with a term or condition of a contract, policy, rule, regulation, or standard 13 of the student-athlete's committed or enrolled institution of higher 14 education. 15 (2) The institution of higher education and officers, agents, 16 and employees of the institution of higher education shall not be liable for 17 damages or be subjected to any injunctive relief by a court as a consequence 18 of the revocation or rescission of an agreement under subdivision (c)(1) of 19 this section. 20 (e) Earning compensation for the commercial use of a student -athlete's 21 publicity rights shall not affect the student -athlete's scholarship 22 eligibility. 23 (f)(d) An athletic association, athletic conference, or any other 24 organization with authority over varsity intercollegiate athletics shall not: 25 (1) Prevent a student -athlete from receiving compensation for 26 the commercial use of the student -athlete's publicity rights under this 27 subchapter; 28 (2) Penalize a student -athlete for receiving compensation for 29 the commercial use of the student -athlete's publicity rights under this 30 subchapter unless expressly agreed by an institution of higher education as a 31 condition of athletic association or conference membership or as otherwise 32 provided by applicable federal law ; or 33 (3) Prevent an institution of higher education from 34 participating in varsity intercollegiate athletics, or otherwise penalize an 35 institution of higher education, as a result of a student -athlete's receipt 36 HB1917 3 03/31/2025 9:37:53 AM CRH247 of compensation under this subchapter unless expressly agreed by an 1 institution of higher education as a condition of athletic association or 2 conference membership or as otherwise provided by applicable federal law . 3 (e) Income received by a student -athlete from an institution of higher 4 education as compensation for the use of his or her name, image, or likeness 5 or as a percentage of institutional athletic revenue permitted by the 6 institution of higher education's governing athletic association or 7 conference under this subchapter is exempt from state income tax. 8 (f) Personal or financial information of a student -athlete contained 9 in an agreement authorized under this subchapter is confidential and not 10 subject to disclosure under the Freedom of Information Act of 1967, § 25 -19-11 101 et seq. 12 13 4-75-1304. Conflicts. 14 (a) A third-party licensee or student -athlete shall not enter into a 15 contract for the commercial use of the student -athlete's publicity rights if 16 the contract: 17 (1) Requires the student -athlete to endorse, use, solicit, sell, 18 market, advertise, promote, refer to, mention, display, or otherwise promote 19 the name, image, logo, product, service, purpose, campaign, business, digital 20 or physical address, or location of any third -party licensee or commercial 21 entity during a varsity intercollegiate athletic practice, competition, or 22 other activity without the written authorization from the student -athlete's 23 committed or enrolled institution of higher education ; 24 (2) Conflicts with a term or condition of a contract, policy, 25 rule, regulation, or standard of the student -athlete's committed or enrolled 26 institution of higher education; or 27 (3) Involves the student -athlete's performance or lack of 28 performance in athletic competition without the written authorization from 29 the student-athlete's committed or enrolled institution of higher education . 30 (b) A contract in violation of this subchapter is void and 31 unenforceable. 32 33 4-75-1305. Representation. 34 (a) An agent, athlete agent, financial advisor, or attorney who is 35 providing professional representation of a student -athlete shall be licensed, 36 HB1917 4 03/31/2025 9:37:53 AM CRH247 as applicable, in this state. 1 (b) An institution of higher education, athletic association, athletic 2 conference, or other organization with authority over varsity intercollegiate 3 athletics shall not prevent a student -athlete from participating in a varsity 4 intercollegiate sport, or otherwise penalize a student -athlete, for obtaining 5 professional representation in connection with an opportunity to earn 6 compensation for the commercial use of the student -athlete's publicity 7 rights. 8 (c) A student-athlete may rescind a publicity rights contract with a 9 third-party licensee or a contract for professional representation related to 10 publicity rights without being held liable for breach of contract and with no 11 obligation to return payments received before giving notice of rescission if 12 the student-athlete: 13 (1) Student-athlete is no longer eligible to participate in any 14 varsity intercollegiate athletics program at an institution of higher 15 education; or 16 (2) Individual providing professional representation is not 17 licensed in this state . 18 19 SECTION 2. Arkansas Code § 4 -75-1307(a)(5), concerning that the 20 Arkansas Student-Athlete Publicity Rights Act does not render a student -21 athlete an employee of the institution of higher education, is amended to 22 read as follows: 23 (5)(A) Render student-athletes employees of the institution of 24 higher education based on participation in varsity intercollegiate athletic 25 competition. 26 (B) A student-athlete has not been and shall not be 27 considered an employee of an institution of higher education, a conference, 28 or an association for purposes of or as a basis for imposing liability or 29 awarding damages or other monetary relief under any state law based on the 30 student-athlete's receipt of compensation or of any payments or benefits, 31 other than payment of hourly wages and benefits for work actually performed 32 and not for participation in intercollegiate athletics, at a rate 33 commensurate with the applicable rate in the locality of the institution of 34 higher education for similar work or any of the following: 35 (i) Participation in intercollegiate athletic 36 HB1917 5 03/31/2025 9:37:53 AM CRH247 competition; 1 (ii) Membership on any varsity sports team; or 2 (iii) Imposition of requirements, controls or 3 restrictions on student -athletes by institutions of higher education, in 4 connection with participation in intercollegiate athletic activities, 5 practices, and competition. 6 7 SECTION 3. Arkansas Code § 4 -75-1307, concerning the scope of 8 the Arkansas Student -Athlete Publicity Rights Act, is amended to add an 9 additional subsection to read as follows: 10 (c) Notwithstanding any provision of state law to the contrary, the 11 release of or license to use purported name, image, and likeness rights or a 12 name, image, and likeness agreement shall not be required from or with any 13 individual or group of participants in a sports game, contest, or event or 14 spectators at a sports game, contest, or event for audiovisual, audio, or 15 visual broadcasts, rebroadcasts, or other distributions of the sports game, 16 contest, or event. 17 18 SECTION 4. Arkansas Code § 4 -75-1308(d), concerning liability under 19 the Arkansas Student -Athlete Publicity Rights Act, is amended to read as 20 follows: 21 (d) An institution of higher education , located within this state or 22 its employees, a supporting foundation or authorized entity, an athletic 23 association, a conference, or other organization with authority over varsity 24 intercollegiate athletics located within this state , including athletics 25 coaching staff, shall not be liable for any damages related to an subject to 26 liability to a person or an entity as a result of: 27 (1) An intercollegiate student -athlete's ability or inability to 28 earn compensation for the use of the student -athlete's name, image, or 29 likeness resulting from decisions and actions routinely taken within the 30 course of their employment in related to intercollegiate athletics ; 31 (2) The adoption of, agreement to, enforcement of, or compliance 32 with any rule or bylaw of an association or conference that does not violate 33 this subchapter limiting or prohibiting a student -athlete from receiving 34 compensation from an association, conference, institution, or other person or 35 entity; 36 HB1917 6 03/31/2025 9:37:53 AM CRH247 (3) Restricting or curtailing the eligibility for an 1 intercollegiate athletics competition of a student -athlete who violates this 2 subchapter or a rule of the institution of higher education, association, or 3 conference implementing the requirements of this subchapter; or 4 (4) Complying with an agreement, understanding, rule, or bylaw 5 adopted by an institution of higher education, conference, or association or 6 a combination of conferences or institutions of higher education that is 7 otherwise reasonably contemplated under this subchapter . 8 9 SECTION 5. Arkansas Code § 4 -75-1308, concerning the civil remedies 10 available under the Arkansas Student -Athlete Publicity Rights Act, is amended 11 to add an additional subsection to read as follows: 12 (e) This subchapter does not waive any immunity or statutory 13 protection available to or constitutional autonomy of an institution of 14 higher education located within the state or an officer, agent, or employee 15 of the institution of higher education. 16 17 SECTION 6. Arkansas Code § 6 -62-803 is amended to read as follows: 18 6-62-803. Limits on funding. 19 (a) For the certification required under § 6 -62-805, the amount 20 allowed to be budgeted of unrestricted educational and general funds for 21 intercollegiate athletic programs at a state-supported institutions 22 institution of higher education shall be limited to an amount established: 23 (1) Established by the Division of Higher Education for the 24 fiscal year 2012-2013; or an 25 (2) An amount of not more than two percent (2%) four percent 26 (4%) of the actual total unrestricted educational and general revenues of the 27 previous fiscal year at institutions the state-supported institution of 28 higher education. 29 (b) The division shall annually adjust the allowable transfer based 30 upon the Consumer Price Index. 31 (c) This section shall not apply to expenditures: 32 (1) An expenditure related to compliance with § 6 -60-111 or 33 increased compliance under 20 U.S.C. § 1092(f) , nor the; 34 (2) The transfer of funds necessary to support women's athletic 35 programs; or 36 HB1917 7 03/31/2025 9:37:53 AM CRH247 (3) The transfer of funds necessary to: 1 (A) Comply with federal regulations affecting athletics 2 programs; or 3 (B) Make up shortfalls in anticipated revenues due to 4 third-party litigation settlements affecting athletics programs . 5 6 SECTION 7. EFFECTIVE DATE. Arkansas Code § 4 -75-1303(e) of Section 1 7 of this act is effective for tax years beginning on or after January 1, 2025. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36