Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H1267 Compare Versions

Only one version of the bill is available at this time.

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2	2	HOUSE DOCKET, NO. 903 FILED ON: 1/17/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 1267
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Steven S. Howitt
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to college athlete compensation.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Steven S. Howitt4th Bristol1/17/2023 1 of 11
16	16	HOUSE DOCKET, NO. 903 FILED ON: 1/17/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 1267
18	18	By Representative Howitt of Seekonk, a petition (accompanied by bill, House, No. 1267) of
19	19	Steven S. Howitt relative to intercollegiate athletic compensation and rights. Higher Education.
20	20	[SIMILAR MATTER FILED IN PREVIOUS SESSION
21	21	SEE HOUSE, NO. 4696 OF 2021-2022.]
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Third General Court
25	25	(2023-2024)
26	26	_______________
27	27	An Act relative to college athlete compensation.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 SECTION 1. Chapter 15A of the General Laws, as appearing in the 2018 Official
31	31	2Edition, is hereby amended by adding the following section:-
32	32	3 Section 45 (a) A public or private institution of higher education, hereinafter referred to
33	33	4as an institution, shall not uphold any rule, requirement, standard or other limitation, except as
34	34	5otherwise provided for in this section, that prevents a student of that institution participating in
35	35	6intercollegiate athletics from earning compensation as a result of the use of the student's name,
36	36	7image or likeness. Earning compensation pursuant to this section including from the use of a
37	37	8student's name, image or likeness shall not affect the student's scholarship eligibility. For the
38	38	9purposes of this section, a public or private institution of higher education shall include a
39	39	10community college. 2 of 11
40	40	11 (b) An athletic association, conference or other group or organization with authority over
41	41	12intercollegiate athletics, including, but not limited to, the National Collegiate Athletic
42	42	13Association, shall not prevent a student of an institution participating in intercollegiate athletics
43	43	14from earning compensation as a result of the use of the student's name, image or likeness.
44	44	15 (c) An athletic association, conference, or other group or organization with authority over
45	45	16intercollegiate athletics, including, but not limited to, the National Collegiate Athletic
46	46	17Association, shall not prevent a postsecondary educational institution from participating in
47	47	18intercollegiate athletics as a result of a student athlete earning compensation from third parties
48	48	19for the use of the student’s name, image, or likeness.
49	49	20 (d) An institution, athletic association, conference or other group or organization with
50	50	21authority over intercollegiate athletics shall not prevent a student-athlete participating in
51	51	22intercollegiate athletics from obtaining professional representation in relation to contracts or
52	52	23legal matters, including, but not limited to, representation provided by athlete agents or legal
53	53	24representation provided by attorneys.
54	54	25 (e) Professional representation obtained by student-athletes shall be from persons
55	55	26complying with or registered in the commonwealth pursuant to section 2 of this act.
56	56	27 (f) A scholarship from the institution in which a student is enrolled that provides the
57	57	28student with the cost of attendance at that institution is not compensation for purposes of this
58	58	29section. A scholarship shall not be revoked as a result of earning compensation or obtaining
59	59	30athlete agent or legal representation pursuant to this section.
60	60	31 (g) A student-athlete shall not enter into a contract or agreement providing compensation
61	61	32to the athlete for use of the athlete's name, image or likeness if a provision of the contract or 3 of 11
62	62	33agreement is in conflict with a provision of the athlete's team contract. A student-athlete who
63	63	34enters into a contract or agreement providing compensation to the athlete for use of the athlete's
64	64	35name, image or likeness shall disclose the contract or agreement to an official of the institution,
65	65	36to be designated by the institution.
66	66	37 (h) A new team contract or a renewal or modification of a team contract of an institution's
67	67	38athletic program shall not prevent a student-athlete from using the athlete's name, image or
68	68	39likeness for a commercial purpose when the athlete is not engaged in official team activities.
69	69	40 (i) Notwithstanding any other provision set forth in this section, a student-athlete may not
70	70	41receive compensation for use of the student-athlete’s name, image, likeness: (i) to the extent that
71	71	42compensation is contingent on enrollment at a particular institution; (ii) for athletic participation,
72	72	43or that is based on athletic achievements or performance milestones; (iii) for services or work
73	73	44that the student-athlete has not actually performed; (iv) from an institution, athletic association,
74	74	45conference or other group or organization with authority over intercollegiate athletics to the
75	75	46student-athlete for the use of the name, image, likeness; and (v) for any other activity that is
76	76	47deemed an impermissible inducement from the institution to the student-athlete under the rules
77	77	48of any athletic association, conference, other group or organization with authority over
78	78	49intercollegiate athletics.
79	79	50 SECTION 2 Chapter 9 of the General Laws, as so appearing, is hereby amended by
80	80	51adding the following section:-
81	81	52 Section 32. (a) For the purposes of this section the following terms shall, unless the
82	82	53context clearly appears otherwise, have the following meanings: – 4 of 11
83	83	54 “Athlete agent”, a person who enters into a contract or agreement with a student-athlete
84	84	55or, directly or indirectly, recruits or solicits a student-athlete to enter into a contract or
85	85	56agreement. Such term includes an individual who represents to the public that the individual is an
86	86	57athlete agent. This term shall not include a spouse, parent, sibling, grandparent or guardian of the
87	87	58student-athlete, or an individual acting solely on behalf of a professional sports team or
88	88	59professional sports organization.
89	89	60 “Registration”, registration as an athlete agent pursuant to this section.
90	90	61 “Student-athlete”, an individual who engages in, is eligible to engage in or may be
91	91	62eligible in the future to engage in any intercollegiate or interscholastic sport at a public or private
92	92	63institution of higher education.
93	93	64 (b) A person shall not act as an athlete agent in commonwealth without holding a
94	94	65certificate of registration issued pursuant to this section.
95	95	66 (c) Before being issued a certificate of registration, a person may act as an athlete agent
96	96	67in this state for all purposes except signing a contract or agreement, if: (i) a student-athlete or
97	97	68another person acting on behalf of the student-athlete initiates communication with such
98	98	69individual; and (ii) within 7 days after an initial act as an athlete agent, such individual submits
99	99	70an application for registration as an athlete agent under this section.
100	100	71 (d) A contract or agreement between a student-athlete and an athlete agent resulting from
101	101	72conduct in violation of this section shall be void. In the event a student-athlete voids such
102	102	73contract or agreement, the student-athlete shall not be required to pay any consideration under
103	103	74such contract or agreement or to return any consideration received from the athlete agent to
104	104	75induce the student-athlete to enter into the contract or agreement, and the athlete agent shall be 5 of 11
105	105	76required to return any consideration received pursuant to such voided contract or agreement. Any
106	106	77contract or agreement under this section shall be void and unenforceable unless it is in writing
107	107	78and executed by the athlete agent and the student-athlete.
108	108	79 (e) An applicant for registration shall submit an application therefor to the state secretary
109	109	80in such form as shall be prescribed by the state secretary. An application filed pursuant to this
110	110	81section shall be a public record. The application shall be in the name of an individual and signed
111	111	82or otherwise authenticated by the applicant under penalty of perjury, and shall include, but is not
112	112	83limited to, the following:
113	113	84 (i) the name of the applicant and the address of the applicant’s principal place of
114	114	85business;
115	115	86 (ii) the name of the applicant’s business or employer, if applicable;
116	116	87 (iii) any business or occupation engaged in by the applicant for the 5 years next preceding
117	117	88the date of submission of the application;
118	118	89 (iv) a description of the applicant’s: (1) formal training as an athlete agent; (2) practical
119	119	90experience as an athlete agent; and (3) educational background relating to the applicant’s
120	120	91activities as an athlete agent;
121	121	92 (v) the names and addresses of 3 individuals not related to the applicant who are willing
122	122	93to serve as references;
123	123	94 (vi) the name, sport and last known team for each individual for whom the applicant
124	124	95acted as an athlete agent during the 5 years next preceding the date of submission of the
125	125	96application; 6 of 11
126	126	97 (vii) the names and addresses of all persons who are: (1) with respect to the athlete
127	127	98agent’s business if it is not a corporation, the partners, members, officers, managers, associates
128	128	99or profit-sharers having an interest of 5 percent or greater of the business; and (2) with respect to
129	129	100a corporation employing the athlete agent, the officers, directors and any shareholder of the
130	130	101corporation having an interest of 5 per cent or greater;
131	131	102 (viii) whether the applicant or any person named pursuant to clause (vii) has been
132	132	103convicted of a crime that, if committed in this state, would be a crime involving moral turpitude
133	133	104or a felony, and identify the crime;
134	134	105 (ix) whether there has been any administrative or judicial determination that the applicant
135	135	106or any person named pursuant to clause (vii) has made a false, misleading, deceptive or
136	136	107fraudulent representation;
137	137	108 (x) any instance in which the conduct of the applicant or any person named pursuant to
138	138	109clause (vii) resulted in the imposition of a sanction, suspension or declaration of ineligibility to
139	139	110participate in an interscholastic or intercollegiate athletic event on a student-athlete or
140	140	111educational institution;
141	141	112 (xi) any sanction, suspension or disciplinary action taken against the applicant or any
142	142	113person named pursuant to clause (vii) of this subsection by a governmental or quasi-
143	143	114governmental licensing entity or adjudicatory process arising out of occupational or professional
144	144	115conduct; and
145	145	116 (xii) whether there has been any denial of an application for, suspension or revocation of,
146	146	117or refusal to renew the registration or licensure of the applicant or any person named pursuant to
147	147	118clause (vii) as an athlete agent in any state. 7 of 11
148	148	119 (f) An individual who has submitted an application for, and holds a certificate of,
149	149	120registration or licensure as an athlete agent in another state, may submit a copy of the application
150	150	121and certificate in lieu of submitting an application, or an application of renewal, in the form
151	151	122prescribed by the state secretary. The state secretary shall accept the application and the
152	152	123certificate from the other state as an application for registration in this state if the application to
153	153	124the other state:
154	154	125 (i) was submitted in the other state within 6 months next preceding the submission of the
155	155	126application in this state and the applicant certifies that the information contained in the
156	156	127application is current;
157	157	128 (ii) contains information substantially similar to or more comprehensive than that
158	158	129required in an application submitted in this state; and
159	159	130 (iii) was signed by the applicant under penalty of perjury.
160	160	131 (g) Except as otherwise provided in this section, the state secretary shall issue a
161	161	132certificate of registration to an individual who complies the requirements of this section.
162	162	133 (h) The state secretary may refuse to issue a certificate of registration if the state secretary
163	163	134determines that the applicant has engaged in conduct that has an adverse effect on the applicant’s
164	164	135fitness to act as an athlete agent. In making the determination, the state secretary may consider
165	165	136whether the applicant has:
166	166	137 (i) been convicted of a crime that, if committed in this state, would be a crime
167	167	138involving moral turpitude or a felony; 8 of 11
168	168	139 (ii) made a materially false, misleading, deceptive or fraudulent representation in
169	169	140the application or as an athlete agent;
170	170	141 (iii) engaged in conduct that would disqualify the applicant from serving in a
171	171	142fiduciary capacity;
172	172	143 (iv) engaged in conduct prohibited by this section;
173	173	144 (v) had a registration or licensure as an athlete agent suspended, revoked or
174	174	145denied, or been refused renewal of registration or licensure as an athlete agent in any state;
175	175	146 (vi) engaged in conduct the consequence of which was that a sanction, suspension
176	176	147or declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event
177	177	148was imposed on a student-athlete or educational institution; or
178	178	149 (vii) engaged in conduct that significantly adversely reflects on the applicant’s
179	179	150credibility, honesty or integrity.
180	180	151 (i) A certificate of registration or a renewal of a registration shall be valid for 2 years.
181	181	152 (j) The state secretary may suspend, revoke or refuse to renew a registration for conduct
182	182	153that would have justified denial of registration under this section.
183	183	154 (k) The state secretary may deny, suspend, revoke or refuse to renew a certificate of
184	184	155registration or licensure only after proper notice and an opportunity for a hearing as provided
185	185	156pursuant to the provisions of chapter 30A.
186	186	157 (l) An application for registration or renewal of registration shall be accompanied by a fee
187	187	158to be determined by the commissioner of administration pursuant to section 3B of chapter 7. 9 of 11
188	188	159 (m) A contract or agreement between an athlete agent and a student athlete shall be in a
189	189	160record, signed or otherwise authenticated by the parties. The contract or agreement shall include,
190	190	161but not limited to, the following:
191	191	162 (i) the amount and method of calculating the consideration to be paid by the student-
192	192	163athlete for services to be provided by the athlete agent under the contract or agreement and any
193	193	164other consideration the athlete agent has received or will receive from any other source for
194	194	165entering into the contract or agreement or for providing the services;
195	195	166 (ii) the name of any person not listed in the application for registration or renewal of
196	196	167registration who will be compensated because the student-athlete signed the contract or
197	197	168agreement;
198	198	169 (iii) a description of any expenses that the student athlete agrees to reimburse;
199	199	170 (iv) a description of the services to be provided to the student athlete;
200	200	171 (v) the duration of the contract or agreement; and
201	201	172 (vi) the date of execution.
202	202	173 (n) A student athlete may cancel a contract or agreement with an athlete agent by giving
203	203	174notice of the cancellation to the athlete agent in a record within 10 days after the contract or
204	204	175agreement is signed.
205	205	176 (o) A student athlete may not waive the right to cancel a contract or agreement with an
206	206	177athlete agent. 10 of 11
207	207	178 (p) If a student athlete cancels a contract or agreement with an athlete agent, the student
208	208	179athlete shall not be required to pay any consideration under such contract or agreement to return
209	209	180any consideration received from the athlete agent to induce the student-athlete to enter into the
210	210	181contract or agreement, unless such cancellation is pursuant to subsection (n) of this section.
211	211	182 (q) An athlete agent shall retain the following records for a period of 5 years:
212	212	183 (i) the name and address of each individual represented by the athlete agent;
213	213	184 (ii) any contract or agreement entered into by the athlete agent; and
214	214	185 (iii) any direct costs incurred by the athlete agent in the recruitment or solicitation of a
215	215	186student-athlete to enter into a contract or agreement.
216	216	187 The records required to be retained pursuant this section shall be open to inspection by
217	217	188the state secretary during normal business hours.
218	218	189 The athlete agent shall give a record of the signed or otherwise authenticated contract or
219	219	190agreement to the student athlete at the time of execution.
220	220	191 (r) An athlete agent, with the intent to induce a student-athlete to enter into a contract or
221	221	192agreement, shall not:
222	222	193 (i) give any materially false or misleading information or make a materially false promise
223	223	194or representation;
224	224	195 (ii) furnish anything of value to a student-athlete before the student-athlete enters into the
225	225	196contract or agreement; or 11 of 11
226	226	197 (iii) furnish anything of value to any other individual or another registered athlete agent
227	227	198before the student-athlete enters into the contract or agreement;
228	228	199 (s) An athlete agent shall not willfully:
229	229	200 (i) initiate contact with a student-athlete unless registered pursuant to this section;
230	230	201 (ii) refuse or fail to retain or permit inspection of the records required to be retained by
231	231	202this section;
232	232	203 (iii) fail to register when required by this section;
233	233	204 (iv) provide materially false or misleading information in an application for registration
234	234	205or renewal of registration; or
235	235	206 (s) predate or postdate a contract or agreement with a student athlete.
236	236	207 (t) The state secretary may assess a civil penalty against an athlete agent not to exceed
237	237	208$25,000 for a violation of the registration provisions of this section.
238	238	209 (u) Athlete agents representing student-athletes shall comply with the federal Sports
239	239	210Agent Responsibility and Trust Act, established in chapter 104 of title 15 of the United States
240	240	211Code, in their relationships with student-athletes