SENATE FLOOR VERSION – SB840 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION February 7, 2023 SENATE BILL NO. 840 By: McCortney and Jett of the Senate and Echols of the House An Act relating to collegiate athletics; amend ing 70 O.S. 2021, Sections 8 20.22, 820.23, 820.24, 820.25, and 820.26, which relate to the Student Athlete Name, Image and Likeness Rights Act; modifying definitions; modifying limitation on certain compensation; prohibiting postsecondary institution from providing certain representation or compensation; prohibiting collegiate athletic association from imposing certain restrictions on postsec ondary institutions; construing provisions; removing limitation on certain representation; establishing require ments for certain agreements; requiring certain individual or entity to ensure certain disclosures; requiring disclosure of certain representation; modifying requirements for certain contracts; prohibiting use o f certain marks for certain purposes; providing exception; authorizing adoption of certa in restrictions; authorizing certain third-party agreements; authorizing certain educational or training requirements; modifying effective date of provisions; prohibiting collegiate athletic association and member institutions from taking certain actions against student athlete or post secondary institutions; prohibiting liability for employees of postsecondary institution for certain de cisions or actions; updating statutory language ; providing for codification; and declaring an em ergency. BE IT ENACTED BY THE PEOPLE OF THE ST ATE OF OKLAHOMA: SENATE FLOOR VERSION – SB840 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 1. AMENDATORY 70 O.S. 2021, Section 820.22, is amended to read as follows: Section 820.22. As used in the Student Athlete Name , Image and Likeness Rights Act: 1. “Athletic grant-in-aid” shall have the meaning provided by the applicable colleg iate athletic association as aid related to the student athlete’s participation in an intercollegiate sport for a postsecondary institution . “Athletic grant-in-aid” Athletic grant- in-aid shall not include compensation for the use of the student- athlete’s name, image, or likeness rights or athletic reputation; 2. “Collegiate athletic assoc iation” means any athletic association, conference, or other group or organi zation with authority over intercollegiate sports including, but not limited to, the National Collegiate Athletic Assoc iation; 3. “Postsecondary institution ” means any state educat ional institution or private educational institution as defined in Section 3102 of Title 70 of the Oklahoma Statutes; 4. “Professional representation” includes, but is not limited to, representation provided by an athlete agent holding a certificate of registration under the Revised Uniform Athlete Agents Act or an attorney duly admitted to practice law in this state by any individual or entity engaged by a student athlete for the purpose of securing compensation or benefits for a student athlete ’s name, image, or likeness activit ies. Any individual or entity SENATE FLOOR VERSION – SB840 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 engaged for such purpose shall be a fiduciary for the represented student athlete; 5. “Sponsor” means an individual or organization that receives institutional recognition for its financial support or other contributions in support of a postsecondary institution or its departments or programs; 6. “Student athlete” shall have the same meaning as defined in the Revised Uniform Athlete Agents Act ; and 7. “Team contract” means a contract between a postsecondary institution or a postsecondary institution’s athletic department and a sponsor or a third party authorized to enter into a sponsorship agreement or agreements on behalf of a postsecondary institution 6. “Team activities” means student athlete partic ipation in countable athletically related activities and required athletic activities as defined by the collegiate athletic association or as otherwise defined by the postsecondary institution . SECTION 2. AMENDATORY 70 O.S. 2021, Section 820.23, is amended to read as follows: Section 820.23. A. Except as otherwise provide d in the Student Athlete Name, Image and Likeness Rights Act, a student athlete may earn compensation commensurate with market value for the use of the name, image, or likeness of the student athlete while enrolled at a postsecondary institution without pe nalty or resulting limitation on participation. Compensation for the use of a student ath lete’s SENATE FLOOR VERSION – SB840 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 name, image, or likeness shall not affect the student ath lete’s eligibility for athletic grant-in-aid. B. A student athlete shall not earn compensation in exc hange for his or her athletic pe rformance or participation in intercollegiate athletics or sports competition. Compensation shall not be provided as an i nducement for athletic performance or to attend or enroll at a particular institution. C. A postsecondary institution, an entity whose purpose includes supporting or benefitting the postsecond ary institution or its athletic programs or an officer, directo r, or employee of such postsecondary institution or entity shall not provide professional representation, or compensate or cause compe nsation to be directed to a current or prospective student athl ete for his or her name, image, or likeness. A scholarship from a postsecondary institution in which a student athlete is enrolled that provides him or her with the cost of attendance, as defined by an applicable collegiate athletic association, at the institution shall not be considered compensation for purposes of this Act unless otherwise permitted by institutional policy or sta te law. D. A collegiate athletic association shall not, and shall not authorize its member institutions to : 1. Prevent a student athlete at a postsecondary institution from earning compensation from the use of his or her name, image or likeness; SENATE FLOOR VERSION – SB840 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Prevent a postsecondary institution from participation in intercollegiate athletics because a student athlete in attendance has previously earned or intends to earn compensation for the use of his or her name, image or likeness ; 3. Provide a prospective student athlete with compensation in relation to the use of his or her name, image or likeness; 4. Penalize a student athlete or prevent a student athlete from full participation in an inter collegiate sport because he or she obtains professional representation in relatio n to a contract or other legal matter; or 5. Allow compensation earned by a student athlete for the use of his or her name, image or likeness or athletic reputation to affect the amount, duration or renewal of or eligibility for any athletic grant-in-aid or other institutional scholarship; provided, however, compensation earned by a student athlete for the use of his or her name, image or likeness or athletic reputation may be used for the calculation of income for determining eligibility for need - based financial aid prohibit a postsecondary institution from identifying, facilitating, enabling, or supporting opportunities for a student athlete to earn compensation for the stude nt athlete’s name, image, or likeness activities . E. The provisions of this section shall not be con strued to qualify a student athle te as an employee of a postsecondary institution. SENATE FLOOR VERSION – SB840 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 3. AMENDATORY 70 O.S. 2021, Section 820.24, is amended to read as follows: Section 820.24. A. 1. A student athlete may obtain professional representation by an athlete agent or attorney for the purpose of securing compensation for the use of his or her name, image, or likeness without penalty, resulting li mitation on participation or effect on the student-athlete’s athletic grant-in- aid eligibility. 2. Any professional representation agreement shall: a. be in writing, b. be executed by both parties , c. clearly describe the obligations of the parties, and d. outline fees for the professional representation . 3. An individual or entity engage d for professional representation by a student athlete shall ensure the student athlete discloses the profession al relationship to the postsecondary institution as required by this section. B. Professional representation provided by athlete agents shall be by persons licensed purs uant to the Revised Uniform Athlete Agents Act or superseding law. An athlete agent representing a student athlete shall comply with the federal Sports Agent Responsibility and Trust Act, Chapter 104, Section 7801 et seq. of Title 15 of the United States Code. SENATE FLOOR VERSION – SB840 SFLR Page 7 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 C. A student athlete who enters into a contract providing compensation to the student athlete for use of his or her name, image, or likeness or for professional rep resentation shall disclose the contract in a manner designa ted by the postsecondary institution, but in any event within seventy-two (72) hours after entering into the contract or before the next athletic event in which the student athlete is eligible to par ticipate, whichever occurs first. SECTION 4. AMENDATORY 70 O.S. 2021, Section 820.25, is amended to read as follows: Section 820.25. A. A student athlete shall n ot enter into a contract that provides compensati on to the student athlete for use of his or her name, image or likeness if a provision of the contract is in conflict with a provision of the postsecondary institution’s team contract. B. A student athlete shall not enter into a contract with a third party that provides compensation to the student athlete use a postsecondary institution’s marks for the purpose of securing compensation for use of his or her name, image , or likeness or athletic reputation if: 1. The contract requires the student athlete to display the third party’s apparel or to otherwise advertise for the third-party during team activities; SENATE FLOOR VERSION – SB840 SFLR Page 8 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Compliance with the third-party contract would conflict with a team contract; or 3. The contract allows for the use or consents to the use of any institutional marks during the student athlete’s third-party contract activities. C. A team contract of a p ostsecondary institution entered into, modified or renewed on or after the effective date of this A ct shall not prevent a student athlete from using his or her name, image or likeness for a commercial purpose when the student athlete is not engaged in team activities unless authorized by the institution. D. B. A student athlete shall not enter into a name, image , and likeness agreement involv ing a commercial product or service that conflicts with a written policy of the pos tsecondary institution which is in compliance with the bylaws and legislation of the applicable collegiate athletic association including, but not limited to, sports wagerin g or banned substances or that negatively impacts or reflects adversely on the post secondary institution or its athletic programs including, but not limited to, generating public disrepute, embarrassment, scandal, ridicule or otherwise negatively impacting the reputation or the moral or ethical standards of the postsecondary institution. E. C. A contract for the use of a student athlete’s name, image, or likeness or a contract for professional representation related to name, image, or likeness that is formed while the student SENATE FLOOR VERSION – SB840 SFLR Page 9 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 athlete is participating in an intercollegiate sport at a postsecondary educational institution may not extend beyond the student athlete’s participation in the sport at the institution. F. Nothing in the Stu dent Athlete Name, Image and Likene ss Rights Act shall be construed to authorize a student athlete to assert any right or interest as a party to or intended beneficiary of team contracts or to cr eate a right of one or more student athletes to participate in the negotiat ion, awarding or earn ings of team contracts. D. A postsecondary institution may adopt reasonabl e time, place, and manner restrictions to prevent a student athlete’s name, image, or likeness activities from interfering with team activities, the postsecondary institution ’s operations, or the use of the institution’s facilities. A postsecondary instit ution may receive compensation for the use of its institutional marks or facilities in conjunction with a student athlete ’s name, image, and likeness activities. E. A collegiate athletic association shall not prohibit a postsecondary institution from establishing agreements with a third- party entity to act on its behalf to identify, facilitate, enable, or support student athlete name, image , and likeness activities. F. An institution may require a student athlete to take courses or receive education or tr aining in contracts, fina ncial literacy, or any other subject the postsecondary institution deems necessary SENATE FLOOR VERSION – SB840 SFLR Page 10 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 to prepare a student athlete to engage in name, image , and likeness activities. SECTION 5. AMENDATORY 70 O.S. 2021, Sectio n 820.26, is amended to read as follows: Section 820.26. Each postsecondary institution shall determine a date on or before July 1, 2023, upon wh ich the The provisions of the Student Athlete Name, Ima ge and Likeness Rights Act will shall be recognized by the postsecondary institution effective immediately. SECTION 6. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 820.27 of Title 70, unless there is created a duplication in numb ering, reads as follows : A. A collegiate athletic association shall not and shall not authorize its member institutions to: 1. Prevent a student athlete at a postsecondary institutio n from earning compensation from the use of his or her name, image , or likeness; 2. Provide a prospective student athlete with compensation in relation to the use of his or her name, image , or likeness; 3. Penalize a student athlete or prevent a student athlete from full participation in an intercollegiate sport because he or she obtains professional representation or receives assistance with services associated with name, image , or likeness activities SENATE FLOOR VERSION – SB840 SFLR Page 11 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 including with contracts or other legal matter s from an individual, entity, or a postsecondary institution ; or 4. Allow compensation earned by a st udent athlete for the use of his or her name, image, or likeness or athletic reputation to affect the amount, duration , or renewal of or eligibility for any athletic grant-in-aid or other institutional scholarship; provided, however, compensation earned by a student athlete for the use o f his or her name, image, or likeness or athletic reputation may be used for the calculation of income for determining eligibilit y for need- based financial aid. B. A collegiate athletic associ ation shall not and shall not authorize its member institution s to: 1. Prevent a postsecondary institution from participation in intercollegiate athletics because a student athlete in attend ance has previously earned or intends to earn compensation for t he use of his or her name, imag e, or likeness; 2. Entertain a complaint, open an investigation, or take any other adverse action against a postsecondary institution for engaging in any activi ty protected in the Student Athlete Name, Image and Likeness Rights Act or for involvement in s tudent athlete name, image, or likeness activities; or 3. Penalize a postsecondary institution from participation in intercollegiate athletics because an individual or entity whose purpose includes supporting or benefitting the postsecondary SENATE FLOOR VERSION – SB840 SFLR Page 12 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 institution or its athletic programs violates the collegiate athletic association’s rules or regulations with regard to student athlete name, image, or likeness activities . C. No postsecondary institution ’s employees, including athletics coaching staff, shall be liabl e for any damages to a student athlete’s ability to earn compensation for the use of the student athlete’s name, image, or likeness resulting from decisions and actions routinely taken in the course of intercollegiate athletics. SECTION 7. It being immediately necessary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage an d approval. COMMITTEE REPORT BY: EDUCATION February 7, 2023 - DO PASS