3 | 2 | | *CRH247* 03/31/2025 9:37:53 AM CRH247 |
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4 | 3 | | State of Arkansas 1 |
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5 | 4 | | 95th General Assembly A Bill 2 |
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6 | 5 | | Regular Session, 2025 HOUSE BILL 1917 3 |
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7 | 6 | | 4 |
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8 | 7 | | By: Representatives M. Shepherd, Evans 5 |
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9 | 8 | | By: Senator Hester 6 |
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10 | 9 | | 7 |
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11 | 10 | | For An Act To Be Entitled 8 |
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12 | 11 | | AN ACT TO AMEND THE ARKANSAS STUDENT-ATHLETE 9 |
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13 | 12 | | PUBLICITY RIGHTS ACT; TO AMEND THE LAW RELATED TO 10 |
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14 | 13 | | ATHLETIC PROGRAM FUNDING; AND FOR OTHER PURPOSES. 11 |
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15 | 14 | | 12 |
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16 | 15 | | 13 |
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17 | 16 | | Subtitle 14 |
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18 | 17 | | TO AMEND THE ARKANSAS STUDENT -ATHLETE 15 |
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19 | 18 | | PUBLICITY RIGHTS ACT; AND TO AMEND THE 16 |
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20 | 19 | | LAW RELATED TO ATHLETIC PROGRAM FUNDING. 17 |
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21 | 20 | | 18 |
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22 | 21 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19 |
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23 | 22 | | 20 |
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24 | 23 | | SECTION 1. Arkansas Code §§ 4 -75-1303 — 4-75-1305 are amended to read 21 |
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25 | 24 | | as follows: 22 |
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26 | 25 | | 4-75-1303. Right to compensation. 23 |
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27 | 26 | | (a) Except as prohibited in this subchapter, a student-athlete shall 24 |
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28 | 27 | | have the right to enter into a contract and receive compensation for the 25 |
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29 | 28 | | commercial use of the student -athlete's publicity rights. 26 |
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30 | 29 | | (b) An institution of higher education, its supporting foundations, or 27 |
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31 | 30 | | its authorized entities may identify: 28 |
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32 | 31 | | (1) Identify, create, facilitate, and otherwise enable 29 |
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33 | 32 | | opportunities for a student -athlete to earn compensation for the commercial 30 |
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34 | 33 | | use of the student-athlete's publicity rights ; 31 |
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35 | 34 | | (2) Compensate a student -athlete for the commercial use of the 32 |
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36 | 35 | | student-athlete's publicity rights; and 33 |
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37 | 36 | | (3) Enter into an exclusive or nonexclusive license agreement 34 |
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38 | 37 | | with a student-athlete for the commercial use of the student -athlete's 35 |
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39 | 38 | | publicity rights. 36 HB1917 |
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40 | 39 | | |
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42 | 41 | | (c)(1) A charitable organization that qualifies as an exempt 1 |
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43 | 42 | | organization under 26 U.S.C. § 501(c)(3), as it existed on January 1, 2023, 2 |
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44 | 43 | | shall have the right to compensate student -athletes for the commercial use of 3 |
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45 | 44 | | the student-athlete's publicity rights. 4 |
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46 | 45 | | (d) Except as provided in this subchapter or applicable federal law, 5 |
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47 | 46 | | an institution of higher education shall not uphold any rule, requirement, 6 |
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48 | 47 | | standard, or other limitation of an athletic association or athletic 7 |
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49 | 48 | | conference that prevents a student -athlete from earning compensation for the 8 |
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50 | 49 | | commercial use of the student -athlete's publicity rights An institution of 9 |
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51 | 50 | | higher education in this state may revoke or rescind an agreement or 10 |
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52 | 51 | | commitment to provide compensation, a grant -in-aid, or other benefit to a 11 |
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53 | 52 | | student-athlete who receives or agrees to receive compensation that conflicts 12 |
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54 | 53 | | with a term or condition of a contract, policy, rule, regulation, or standard 13 |
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55 | 54 | | of the student-athlete's committed or enrolled institution of higher 14 |
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56 | 55 | | education. 15 |
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57 | 56 | | (2) The institution of higher education and officers, agents, 16 |
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58 | 57 | | and employees of the institution of higher education shall not be liable for 17 |
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59 | 58 | | damages or be subjected to any injunctive relief by a court as a consequence 18 |
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60 | 59 | | of the revocation or rescission of an agreement under subdivision (c)(1) of 19 |
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61 | 60 | | this section. 20 |
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62 | 61 | | (e) Earning compensation for the commercial use of a student -athlete's 21 |
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63 | 62 | | publicity rights shall not affect the student -athlete's scholarship 22 |
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64 | 63 | | eligibility. 23 |
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65 | 64 | | (f)(d) An athletic association, athletic conference, or any other 24 |
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66 | 65 | | organization with authority over varsity intercollegiate athletics shall not: 25 |
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67 | 66 | | (1) Prevent a student -athlete from receiving compensation for 26 |
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68 | 67 | | the commercial use of the student -athlete's publicity rights under this 27 |
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69 | 68 | | subchapter; 28 |
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70 | 69 | | (2) Penalize a student -athlete for receiving compensation for 29 |
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71 | 70 | | the commercial use of the student -athlete's publicity rights under this 30 |
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72 | 71 | | subchapter unless expressly agreed by an institution of higher education as a 31 |
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73 | 72 | | condition of athletic association or conference membership or as otherwise 32 |
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74 | 73 | | provided by applicable federal law ; or 33 |
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75 | 74 | | (3) Prevent an institution of higher education from 34 |
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76 | 75 | | participating in varsity intercollegiate athletics, or otherwise penalize an 35 |
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77 | 76 | | institution of higher education, as a result of a student -athlete's receipt 36 HB1917 |
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78 | 77 | | |
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80 | 79 | | of compensation under this subchapter unless expressly agreed by an 1 |
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81 | 80 | | institution of higher education as a condition of athletic association or 2 |
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82 | 81 | | conference membership or as otherwise provided by applicable federal law . 3 |
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83 | 82 | | (e) Income received by a student -athlete from an institution of higher 4 |
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84 | 83 | | education as compensation for the use of his or her name, image, or likeness 5 |
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85 | 84 | | or as a percentage of institutional athletic revenue permitted by the 6 |
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86 | 85 | | institution of higher education's governing athletic association or 7 |
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87 | 86 | | conference under this subchapter is exempt from state income tax. 8 |
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88 | 87 | | (f) Personal or financial information of a student -athlete contained 9 |
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89 | 88 | | in an agreement authorized under this subchapter is confidential and not 10 |
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90 | 89 | | subject to disclosure under the Freedom of Information Act of 1967, § 25 -19-11 |
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91 | 90 | | 101 et seq. 12 |
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92 | 91 | | 13 |
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93 | 92 | | 4-75-1304. Conflicts. 14 |
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94 | 93 | | (a) A third-party licensee or student -athlete shall not enter into a 15 |
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95 | 94 | | contract for the commercial use of the student -athlete's publicity rights if 16 |
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96 | 95 | | the contract: 17 |
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97 | 96 | | (1) Requires the student -athlete to endorse, use, solicit, sell, 18 |
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98 | 97 | | market, advertise, promote, refer to, mention, display, or otherwise promote 19 |
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99 | 98 | | the name, image, logo, product, service, purpose, campaign, business, digital 20 |
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100 | 99 | | or physical address, or location of any third -party licensee or commercial 21 |
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101 | 100 | | entity during a varsity intercollegiate athletic practice, competition, or 22 |
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102 | 101 | | other activity without the written authorization from the student -athlete's 23 |
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103 | 102 | | committed or enrolled institution of higher education ; 24 |
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104 | 103 | | (2) Conflicts with a term or condition of a contract, policy, 25 |
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105 | 104 | | rule, regulation, or standard of the student -athlete's committed or enrolled 26 |
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106 | 105 | | institution of higher education; or 27 |
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107 | 106 | | (3) Involves the student -athlete's performance or lack of 28 |
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108 | 107 | | performance in athletic competition without the written authorization from 29 |
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109 | 108 | | the student-athlete's committed or enrolled institution of higher education . 30 |
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110 | 109 | | (b) A contract in violation of this subchapter is void and 31 |
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111 | 110 | | unenforceable. 32 |
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112 | 111 | | 33 |
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113 | 112 | | 4-75-1305. Representation. 34 |
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114 | 113 | | (a) An agent, athlete agent, financial advisor, or attorney who is 35 |
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115 | 114 | | providing professional representation of a student -athlete shall be licensed, 36 HB1917 |
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116 | 115 | | |
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118 | 117 | | as applicable, in this state. 1 |
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119 | 118 | | (b) An institution of higher education, athletic association, athletic 2 |
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120 | 119 | | conference, or other organization with authority over varsity intercollegiate 3 |
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121 | 120 | | athletics shall not prevent a student -athlete from participating in a varsity 4 |
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122 | 121 | | intercollegiate sport, or otherwise penalize a student -athlete, for obtaining 5 |
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123 | 122 | | professional representation in connection with an opportunity to earn 6 |
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124 | 123 | | compensation for the commercial use of the student -athlete's publicity 7 |
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125 | 124 | | rights. 8 |
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126 | 125 | | (c) A student-athlete may rescind a publicity rights contract with a 9 |
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127 | 126 | | third-party licensee or a contract for professional representation related to 10 |
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128 | 127 | | publicity rights without being held liable for breach of contract and with no 11 |
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129 | 128 | | obligation to return payments received before giving notice of rescission if 12 |
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130 | 129 | | the student-athlete: 13 |
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131 | 130 | | (1) Student-athlete is no longer eligible to participate in any 14 |
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132 | 131 | | varsity intercollegiate athletics program at an institution of higher 15 |
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133 | 132 | | education; or 16 |
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134 | 133 | | (2) Individual providing professional representation is not 17 |
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135 | 134 | | licensed in this state . 18 |
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136 | 135 | | 19 |
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137 | 136 | | SECTION 2. Arkansas Code § 4 -75-1307(a)(5), concerning that the 20 |
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138 | 137 | | Arkansas Student-Athlete Publicity Rights Act does not render a student -21 |
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139 | 138 | | athlete an employee of the institution of higher education, is amended to 22 |
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140 | 139 | | read as follows: 23 |
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141 | 140 | | (5)(A) Render student-athletes employees of the institution of 24 |
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142 | 141 | | higher education based on participation in varsity intercollegiate athletic 25 |
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143 | 142 | | competition. 26 |
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144 | 143 | | (B) A student-athlete has not been and shall not be 27 |
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145 | 144 | | considered an employee of an institution of higher education, a conference, 28 |
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146 | 145 | | or an association for purposes of or as a basis for imposing liability or 29 |
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147 | 146 | | awarding damages or other monetary relief under any state law based on the 30 |
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148 | 147 | | student-athlete's receipt of compensation or of any payments or benefits, 31 |
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149 | 148 | | other than payment of hourly wages and benefits for work actually performed 32 |
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150 | 149 | | and not for participation in intercollegiate athletics, at a rate 33 |
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151 | 150 | | commensurate with the applicable rate in the locality of the institution of 34 |
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152 | 151 | | higher education for similar work or any of the following: 35 |
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153 | 152 | | (i) Participation in intercollegiate athletic 36 HB1917 |
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156 | 155 | | competition; 1 |
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157 | 156 | | (ii) Membership on any varsity sports team; or 2 |
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158 | 157 | | (iii) Imposition of requirements, controls or 3 |
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159 | 158 | | restrictions on student -athletes by institutions of higher education, in 4 |
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160 | 159 | | connection with participation in intercollegiate athletic activities, 5 |
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161 | 160 | | practices, and competition. 6 |
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162 | 161 | | 7 |
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163 | 162 | | SECTION 3. Arkansas Code § 4 -75-1307, concerning the scope of 8 |
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164 | 163 | | the Arkansas Student -Athlete Publicity Rights Act, is amended to add an 9 |
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165 | 164 | | additional subsection to read as follows: 10 |
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166 | 165 | | (c) Notwithstanding any provision of state law to the contrary, the 11 |
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167 | 166 | | release of or license to use purported name, image, and likeness rights or a 12 |
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168 | 167 | | name, image, and likeness agreement shall not be required from or with any 13 |
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169 | 168 | | individual or group of participants in a sports game, contest, or event or 14 |
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170 | 169 | | spectators at a sports game, contest, or event for audiovisual, audio, or 15 |
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171 | 170 | | visual broadcasts, rebroadcasts, or other distributions of the sports game, 16 |
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172 | 171 | | contest, or event. 17 |
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173 | 172 | | 18 |
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174 | 173 | | SECTION 4. Arkansas Code § 4 -75-1308(d), concerning liability under 19 |
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175 | 174 | | the Arkansas Student -Athlete Publicity Rights Act, is amended to read as 20 |
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176 | 175 | | follows: 21 |
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177 | 176 | | (d) An institution of higher education , located within this state or 22 |
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178 | 177 | | its employees, a supporting foundation or authorized entity, an athletic 23 |
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179 | 178 | | association, a conference, or other organization with authority over varsity 24 |
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180 | 179 | | intercollegiate athletics located within this state , including athletics 25 |
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181 | 180 | | coaching staff, shall not be liable for any damages related to an subject to 26 |
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182 | 181 | | liability to a person or an entity as a result of: 27 |
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183 | 182 | | (1) An intercollegiate student -athlete's ability or inability to 28 |
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184 | 183 | | earn compensation for the use of the student -athlete's name, image, or 29 |
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185 | 184 | | likeness resulting from decisions and actions routinely taken within the 30 |
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186 | 185 | | course of their employment in related to intercollegiate athletics ; 31 |
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187 | 186 | | (2) The adoption of, agreement to, enforcement of, or compliance 32 |
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188 | 187 | | with any rule or bylaw of an association or conference that does not violate 33 |
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189 | 188 | | this subchapter limiting or prohibiting a student -athlete from receiving 34 |
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190 | 189 | | compensation from an association, conference, institution, or other person or 35 |
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191 | 190 | | entity; 36 HB1917 |
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192 | 191 | | |
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194 | 193 | | (3) Restricting or curtailing the eligibility for an 1 |
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195 | 194 | | intercollegiate athletics competition of a student -athlete who violates this 2 |
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196 | 195 | | subchapter or a rule of the institution of higher education, association, or 3 |
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197 | 196 | | conference implementing the requirements of this subchapter; or 4 |
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198 | 197 | | (4) Complying with an agreement, understanding, rule, or bylaw 5 |
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199 | 198 | | adopted by an institution of higher education, conference, or association or 6 |
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200 | 199 | | a combination of conferences or institutions of higher education that is 7 |
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201 | 200 | | otherwise reasonably contemplated under this subchapter . 8 |
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202 | 201 | | 9 |
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203 | 202 | | SECTION 5. Arkansas Code § 4 -75-1308, concerning the civil remedies 10 |
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204 | 203 | | available under the Arkansas Student -Athlete Publicity Rights Act, is amended 11 |
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205 | 204 | | to add an additional subsection to read as follows: 12 |
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206 | 205 | | (e) This subchapter does not waive any immunity or statutory 13 |
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207 | 206 | | protection available to or constitutional autonomy of an institution of 14 |
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208 | 207 | | higher education located within the state or an officer, agent, or employee 15 |
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209 | 208 | | of the institution of higher education. 16 |
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210 | 209 | | 17 |
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211 | 210 | | SECTION 6. Arkansas Code § 6 -62-803 is amended to read as follows: 18 |
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212 | 211 | | 6-62-803. Limits on funding. 19 |
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213 | 212 | | (a) For the certification required under § 6 -62-805, the amount 20 |
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214 | 213 | | allowed to be budgeted of unrestricted educational and general funds for 21 |
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215 | 214 | | intercollegiate athletic programs at a state-supported institutions 22 |
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216 | 215 | | institution of higher education shall be limited to an amount established: 23 |
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217 | 216 | | (1) Established by the Division of Higher Education for the 24 |
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218 | 217 | | fiscal year 2012-2013; or an 25 |
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219 | 218 | | (2) An amount of not more than two percent (2%) four percent 26 |
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220 | 219 | | (4%) of the actual total unrestricted educational and general revenues of the 27 |
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221 | 220 | | previous fiscal year at institutions the state-supported institution of 28 |
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222 | 221 | | higher education. 29 |
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223 | 222 | | (b) The division shall annually adjust the allowable transfer based 30 |
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224 | 223 | | upon the Consumer Price Index. 31 |
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225 | 224 | | (c) This section shall not apply to expenditures: 32 |
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226 | 225 | | (1) An expenditure related to compliance with § 6 -60-111 or 33 |
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227 | 226 | | increased compliance under 20 U.S.C. § 1092(f) , nor the; 34 |
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228 | 227 | | (2) The transfer of funds necessary to support women's athletic 35 |
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229 | 228 | | programs; or 36 HB1917 |
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232 | 231 | | (3) The transfer of funds necessary to: 1 |
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233 | 232 | | (A) Comply with federal regulations affecting athletics 2 |
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234 | 233 | | programs; or 3 |
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235 | 234 | | (B) Make up shortfalls in anticipated revenues due to 4 |
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236 | 235 | | third-party litigation settlements affecting athletics programs . 5 |
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237 | 236 | | 6 |
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238 | 237 | | SECTION 7. EFFECTIVE DATE. Arkansas Code § 4 -75-1303(e) of Section 1 7 |
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239 | 238 | | of this act is effective for tax years beginning on or after January 1, 2025. 8 |
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240 | 239 | | 9 |
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241 | 240 | | 10 |
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