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