Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB840 Compare Versions

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327
4-An Act
5-ENROLLED SENATE
6-BILL NO. 840 By: McCortney and Jett of the
28+STATE OF OKLAHOMA
29+
30+1st Session of the 59th Legislature (2023)
31+
32+CONFERENCE COMMITTEE SUBSTITUTE
33+FOR ENGROSSED
34+SENATE BILL 840 By: McCortney and Jett of the
735 Senate
836
937 and
1038
1139 Echols and Deck of the
1240 House
1341
1442
43+
44+CONFERENCE COMMITTEE SUBSTITUTE
1545
1646 An Act relating to collegiate athletics; amend ing 70
1747 O.S. 2021, Sections 8 20.22, 820.23, 820.24, 820.25,
1848 and 820.26, which relate to the Student Athlete Name,
1949 Image and Likeness Rights Act; modifying definitions;
2050 modifying limitation on certain compensation;
2151 prohibiting postsecondary institution from providing
2252 certain representation or compensation; prohibiting
2353 collegiate athletic association from imposing certain
2454 restrictions on postsec ondary institutions;
2555 construing provisions; removing limitation on certain
2656 representation; establishing require ments for certain
2757 agreements; requiring certain individual or entity to
2858 ensure certain disclosures; requiring disclosure of
2959 certain representation; modifying requirements for
3060 certain contracts; prohibiting use o f certain marks
3161 for certain purposes; providing exception;
3262 authorizing adoption of certa in restrictions;
3363 authorizing certain third-party agreements;
3464 authorizing certain educational or training
3565 requirements; modifying effective date of provisions;
3666 prohibiting collegiate athletic association and
3767 member institutions from taking certain actions
3868 against student athlete or post secondary
3969 institutions; prohibiting liability for employees of
4070 postsecondary institution for certain de cisions or
4171 actions; updating statutory langu age; amending 70
4272 O.S. 2021, Section 822.1, which relates to gifts to
4373 student athletes; updating statutory references;
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44100 modifying definition; providing for codification; and
45101 declaring an emergency.
46102
47103
48-ENR. S. B. NO. 840 Page 2
49104
50105
51-SUBJECT: Student Athlete Name, Image and Likeness Rights Act
52-
53106 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
54-
55107 SECTION 1. AMENDATORY 70 O.S. 2021, Section 820.22, is
56108 amended to read as follows:
57-
58109 Section 820.22. As used in the Student Athlete Name , Image and
59110 Likeness Rights Act:
60-
61111 1. “Athletic grant-in-aid” shall have the meaning provided by
62112 the applicable collegiate athletic association as aid related to the
63113 student athlete’s participation in an intercollegiate sport for a
64114 postsecondary institution . “Athletic grant-in-aid” Athletic grant-
65115 in-aid shall not include compensation for the use of the student-
66116 athlete’s name, image, or likeness rights or athletic reputation;
67-
68117 2. “Collegiate athletic assoc iation” means any athletic
69118 association, conference, or other group or organi zation with
70119 authority over intercollegiate sports including, but not limited to,
71120 the National Collegiate Athletic Association;
72-
73121 3. “Postsecondary institution ” means any state educat ional
74122 institution or private educational institution as defined in Section
75123 3102 of Title 70 of the Oklahoma Statutes;
76-
77124 4. “Professional representation” includes, but is not limited
78125 to, representation provided by an athlete agent holding a
79126 certificate of registration under the Revised Uniform Athlete Agents
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80153 Act or an attorney duly admitted to practice law in this state by
81154 any individual or entity engaged by a student athlete for the
82155 purpose of securing compensation or benefits for a student athlete ’s
83156 name, image, or likeness activit ies. Any individual or entity
84157 engaged for such purpose shall be a fiduciary for the represented
85158 student athlete;
86-
87159 5. “Sponsor” means an individual or organization that receives
88160 institutional recognition for its financial support or other
89161 contributions in support of a postsecondary institution or its
90162 departments or programs;
91-
92-ENR. S. B. NO. 840 Page 3
93-
94163 6. “Student athlete” shall have the same meaning as defined in
95164 the Revised Uniform Athlete Agents Act ; and
96-
97165 7. “Team contract” means a contract between a postsecondary
98166 institution or a postsecondary institution’s athletic department and
99167 a sponsor or a third party authorized to enter into a sponsorship
100168 agreement or agreements on behalf of a postsecondary institution
101-
102169 6. “Team activities” means student athlete partic ipation in
103170 countable athletically related activities and required athletic
104171 activities as defined by the collegiate athletic association or as
105172 otherwise defined by the postsecondary institution.
106-
107173 SECTION 2. AMENDATORY 70 O.S. 2021, Section 820.23, is
108174 amended to read as follows:
109-
110175 Section 820.23. A. Except as otherwise provide d in the Student
111176 Athlete Name, Image and Likeness Rights Act, a student athlete may
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112203 earn compensation commensurate with market value for the use of the
113204 name, image, or likeness of the student athlete while enrolled at a
114205 postsecondary institution without pe nalty or resulting limitation on
115206 participation. Compensation for the use of a student athlete’s
116207 name, image, or likeness shall not affect the student ath lete’s
117208 eligibility for athletic grant-in-aid.
118-
119209 B. A student athlete shall not earn compensation in exc hange
120210 for his or her athletic pe rformance or participation in
121211 intercollegiate athletics or sports competition. Compensation shall
122212 not be provided as an i nducement for athletic performance or to
123213 attend or enroll at a particular institution.
124-
125214 C. A postsecondary institution, an entity whose purpose
126215 includes supporting or benefitting the postsecondary institution or
127216 its athletic programs or an officer, directo r, or employee of such
128217 postsecondary institution or entity shall not provide professional
129218 representation, or compensate or cause compe nsation to be directed
130219 to a current or prospective student athlete for his or her name,
131220 image, or likeness. A scholarship from a postsecondary institution
132221 in which a student athlete is enrolled that provides him or her with
133222 the cost of attendance, as defined by an applicable collegiate
134223 athletic association, at the institution shall not be considered
135-
136-ENR. S. B. NO. 840 Page 4
137224 compensation for purposes of this Act unless otherwise permitted by
138225 a collegiate athletics association and institutional policy .
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140252 D. A collegiate athletic association shall not, and shall not
141253 authorize its member institutions to:
142-
143254 1. Prevent a student athlete at a postsecondary institution
144255 from earning compensation from the use of his or her name, image or
145256 likeness;
146-
147257 2. Prevent a postsecondary institution from participation in
148258 intercollegiate athletics because a student athlete in attendance
149259 has previously earned or intends to earn compensation for the use of
150260 his or her name, image or likeness ;
151-
152261 3. Provide a prospective student athlete with compensation in
153262 relation to the use of his or her name, image or likeness;
154-
155263 4. Penalize a student athlete or prevent a student athlete from
156264 full participation in an inter collegiate sport because he or she
157265 obtains professional representation in relatio n to a contract or
158266 other legal matter; or
159-
160267 5. Allow compensation earned by a student athlete for the use
161268 of his or her name, image or likeness or athletic reputation to
162269 affect the amount, duration or renewal of or eligibility for any
163270 athletic grant-in-aid or other institutional scholarship; provided,
164271 however, compensation earned by a student athlete for the use of his
165272 or her name, image or likeness or athletic reputation may be used
166273 for the calculation of income for determining eligibility for need -
167274 based financial aid prohibit a postsecondary institution from
168275 identifying, facilitating, enabling, or supporting opportunities for
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169302 a student athlete to earn compensation for the stude nt athlete’s
170303 name, image, or likeness activities .
171-
172304 E. The provisions of this section shall not be con strued to
173305 qualify a student athlete as an employee of a postsecondary
174306 institution.
175-
176307 SECTION 3. AMENDATORY 70 O.S. 2021, Section 820.24, is
177308 amended to read as follows:
178-
179-
180-ENR. S. B. NO. 840 Page 5
181309 Section 820.24. A. 1. A student athlete may obtain
182310 professional representation by an athlete agent or attorney for the
183311 purpose of securing compensation for the use of his or her name,
184312 image, or likeness without penalty, resulting li mitation on
185313 participation or effect on the student-athlete’s athletic grant-in-
186314 aid eligibility.
187-
188315 2. Any professional representation agreement shall:
189-
190316 a. be in writing,
191-
192317 b. be executed by both parties ,
193-
194318 c. clearly describe the obligations of the parties, and
195-
196319 d. outline fees for the professional representation .
197-
198320 3. An individual or entity engage d for professional
199321 representation by a student athlete shall ensure the student athlete
200322 discloses the profession al relationship to the postsecondary
201323 institution as required by this section.
202-
203324 B. Professional representation provided by athlete agents shall
204325 be by persons licensed pursuant to the Revised Uniform Athlete
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205352 Agents Act or superseding law. An athlete agent representing a
206353 student athlete shall comply with the federal Sports Agent
207354 Responsibility and Trust Act, Chapter 104, Section 7801 et seq. of
208355 Title 15 of the United States Code.
209-
210356 C. A student athlete who enters into a contract providing
211357 compensation to the student athlete for use of his or her name,
212358 image, or likeness or for professional rep resentation shall disclose
213359 the contract in a manner designa ted by the postsecondary
214360 institution, but in any event within seventy-two (72) hours after
215361 entering into the contract or before the next athletic event in
216362 which the student athlete is eligible to par ticipate, whichever
217363 occurs first.
218-
219364 SECTION 4. AMENDATORY 70 O.S. 2021, Section 820.25, is
220365 amended to read as follows:
221-
222-
223-ENR. S. B. NO. 840 Page 6
224366 Section 820.25. A. A student athlete shall n ot enter into a
225367 contract that provides compensati on to the student athlete for use
226368 of his or her name, image or likeness if a provision of the contract
227369 is in conflict with a provision of the postsecondary institution’s
228370 team contract.
229-
230371 B. A student athlete shall not enter into a contract with a
231372 third party that provides compensation to the student athlete use a
232373 postsecondary institution’s marks for the purpose of securing
233374 compensation for use of his or her name, image , or likeness or
234375 athletic reputation if:
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236402 1. The contract requires the student athlete to display the
237403 third party’s apparel or to otherwise advertise for the third-party
238404 during team activities;
239-
240405 2. Compliance with the third-party contract would conflict with
241406 a team contract; or
242-
243407 3. The contract allows for the use or consents to the use of
244408 any institutional marks during the student athlete’s third-party
245409 contract activities.
246-
247410 C. A team contract of a postsecondary institution entered into,
248411 modified or renewed on or after the effective date of this A ct shall
249412 not prevent a student athlete from using his or her name, image or
250413 likeness for a commercial purpose when the student athlete is not
251414 engaged in team activities unless authorized by the institution.
252-
253415 D. B. A student athlete shall not enter into a name, image , and
254416 likeness agreement involv ing a commercial product or service that
255417 conflicts with a written policy of the pos tsecondary institution
256418 which is in compliance with the bylaws and legislation of the
257419 applicable collegiate athletic association including, but not
258420 limited to, sports wagerin g or banned substances or that negatively
259421 impacts or reflects adversely on the post secondary institution or
260422 its athletic programs including, but not limited to, generating
261423 public disrepute, embarrassment, scandal, ridicule or otherwise
262424 negatively impacting the reputation or the moral or ethical
263425 standards of the postsecondary institution.
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265451
266-ENR. S. B. NO. 840 Page 7
267452 E. C. A contract for the use of a student athlete’s name,
268453 image, or likeness or a contract for professional representation
269454 related to name, image, or likeness that is formed while the student
270455 athlete is participating in an intercollegiate sport at a
271456 postsecondary educational institution may not extend beyond the
272457 student athlete’s participation in the sport at the institution.
273-
274458 F. Nothing in the Stu dent Athlete Name, Image and Likene ss
275459 Rights Act shall be construed to authorize a student athlete to
276460 assert any right or interest as a party to or intended beneficiary
277461 of team contracts or to create a right of one or more student
278462 athletes to participate in the negotiat ion, awarding or earn ings of
279463 team contracts.
280-
281464 D. A postsecondary institution may adopt reasonabl e time,
282465 place, and manner restrictions to prevent a student athlete’s name,
283466 image, or likeness activities from interfering with team activities,
284467 the postsecondary institution ’s operations, or the use of the
285468 institution’s facilities. A postsecondary instit ution may receive
286469 compensation for the use of its institutional marks or facilities in
287470 conjunction with a student athlete ’s name, image, and likeness
288471 activities.
289-
290472 E. A collegiate athletic association shall not prohibit a
291473 postsecondary institution from establishing agreements with a third-
292474 party entity to act on its behalf to identify, facilitate, enable,
293475 or support student athlete name, image , and likeness activities.
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294501
295502 F. An institution may require a student athlete to take courses
296503 or receive education or tr aining in contracts, financial literacy,
297504 or any other subject the postsecondary institution deems necessary
298505 to prepare a student athlete to engage in name, image , and likeness
299506 activities.
300-
301507 SECTION 5. AMENDATORY 70 O.S. 2021, Sectio n 820.26, is
302508 amended to read as follows:
303-
304509 Section 820.26. Each postsecondary institution shall determine
305510 a date on or before July 1, 2023, upon wh ich the The provisions of
306511 the Student Athlete Name, Ima ge and Likeness Rights Act will shall
307512 be recognized by the postsecondary institution effective
308513 immediately.
309-
310-ENR. S. B. NO. 840 Page 8
311-
312514 SECTION 6. NEW LAW A new section of law to be codified
313515 in the Oklahoma Statutes as Section 820.27 of Title 70, unless there
314516 is created a duplication in numb ering, reads as follows :
315-
316517 A. A collegiate athletic association shall not and shall not
317518 authorize its member institutions to:
318-
319519 1. Prevent a student athlete at a postsecondary institutio n
320520 from earning compensation from the use of his or her name, image , or
321521 likeness;
322-
323522 2. Provide a prospective student athlete with compensation in
324523 relation to the use of his or her name, image , or likeness;
325-
326524 3. Penalize a student athlete or prevent a student athlete from
327525 full participation in an intercollegiate sport because he or she
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328552 obtains professional representation or receives assistance with
329553 services associated with name, image, or likeness activities
330554 including with contracts or other legal matter s from an individual,
331555 entity, or a postsecondary institution ; or
332-
333556 4. Allow compensation earned by a st udent athlete for the use
334557 of his or her name, image, or likeness or athletic reputation to
335558 affect the amount, duration , or renewal of or eligibility for any
336559 athletic grant-in-aid or other institutional scholarship; provided,
337560 however, compensation earned by a student athlete for the use of his
338561 or her name, image, or likeness or athletic reputation may be used
339562 for the calculation of income for determining eligibilit y for need-
340563 based financial aid.
341-
342564 B. A collegiate athletic associ ation shall not and shall not
343565 authorize its member institutions to:
344-
345566 1. Prevent a postsecondary institution from participation in
346567 intercollegiate athletics because a student athlete in attend ance
347568 has previously earned or intends to earn compensation for t he use of
348569 his or her name, imag e, or likeness;
349-
350570 2. Entertain a complaint, open an investigation, or take any
351571 other adverse action against a postsecondary institution for
352572 engaging in any activi ty protected in the Student Athlete Name,
353-
354-ENR. S. B. NO. 840 Page 9
355573 Image and Likeness Rights Act or for involvement in s tudent athlete
356574 name, image, or likeness activities; or
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357600
358601 3. Penalize a postsecondary institution from participation in
359602 intercollegiate athletics because an individual or entity whose
360603 purpose includes supporting or benefitting the postsecondary
361604 institution or its athletic programs violates the collegiate
362605 athletic association’s rules or regulations with regard to student
363606 athlete name, image, or likeness activities .
364-
365607 C. No postsecondary institution ’s employees, including
366608 athletics coaching staff, shall be liabl e for any damages to a
367609 student athlete’s ability to earn compensation for the use of the
368610 student athlete’s name, image, or likeness resulting from decisions
369611 and actions routinely taken in the course of intercollegiate
370612 athletics.
371-
372613 SECTION 7. AMENDATORY 70 O.S. 2021, Section 822.1, is
373614 amended to read as follows:
374-
375615 Section 822.1. As used in Sections 2 822.2 and 3 822.3 of this
376616 act title:
377-
378617 1. “Immediate family” means a spouse, parent, legal guardian,
379618 child, sibling, grandparent, domestic pa rtner or any individual
380619 whose close association with the student -athlete is the practi cal
381620 equivalent of a family relationship;
382-
383621 2. “Person” means an individual, corporation, business trust,
384622 estate, trust, partnership, limited liability company, association ,
385623 joint venture, firm or any other legal or commercial entity;
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387650 3. “Student-athlete” means a student at any public or private
388651 institution of postsecondary education in this state or a student
389652 residing in this state who has applied, is eligible to apply, or may
390653 be eligible to apply in the future to a public or private
391654 institution of postseco ndary education who engages in, is eligible
392655 to engage in, or may be eligible to engage in any intercollegiate
393656 sporting event, contest, exhibition or program shall have the same
394657 meaning as defined in the Revised Uniform Athlete Agents Act ; and
395-
396-
397-ENR. S. B. NO. 840 Page 10
398658 4. “Transaction” means any action or set of actions occurring
399659 between two or more persons for the sale or exchange of any property
400660 or services.
401-
402661 SECTION 8. It being immediately nec essary for the preservation
403662 of the public peace, health or safety, an emergency is hereby
404663 declared to exist, by reason whereof this act shall take effect and
405664 be in full force from and a fter its passage and approval.
406665
407-
408-ENR. S. B. NO. 840 Page 11
409-Passed the Senate the 20th day of April, 2023.
410-
411-
412-
413- Presiding Officer of the Senate
414-
415-
416-Passed the House of Representatives the 20th day of April, 2023.
417-
418-
419-
420- Presiding Officer of the House
421- of Representatives
422-
423-OFFICE OF THE GOVERNOR
424-Received by the Office of the Governor this _______ _____________
425-day of ___________________, 20_______, at _______ o'clock _______ M.
426-By: _______________________________ __
427-Approved by the Governor of the State of Oklahoma this _____ ____
428-day of _________________ __, 20_______, at _______ o'clock _______ M.
429-
430- _____________________________ ____
431- Governor of the State of Oklahoma
432-
433-
434-OFFICE OF THE SECRETARY OF STATE
435-Received by the Office of the Secretary of State this _______ ___
436-day of __________________, 20 _______, at _______ o'clock _______ M.
437-By: _______________________________ __
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