Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB840 Latest Draft

Bill / Enrolled Version Filed 04/24/2023

                             
 
 
An Act 
ENROLLED SENATE 
BILL NO. 840 	By: McCortney and Jett of the 
Senate 
 
  and 
 
  Echols and Deck 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 langu age; amending 70 
O.S. 2021, Section 822.1, which relates to gifts to 
student athletes; updating statutory references; 
modifying definition; providing for codification; and 
declaring an emergency. 
   
 
ENR. S. B. NO. 840 	Page 2 
 
 
SUBJECT:  Student Athlete Name, Image and Likeness Rights Act 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA: 
 
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 collegiate 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 reputa tion; 
 
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 Association; 
 
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 
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;   
 
ENR. S. B. NO. 840 	Page 3 
 
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 athlete’s 
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 postsecondary 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 athlete 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   
 
ENR. S. B. NO. 840 	Page 4 
compensation for purposes of this Act unless otherwise permitted by 
a collegiate athletics association and institutional policy . 
 
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; 
 
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 athlete as an employee of a postsecondary 
institution. 
 
SECTION 3.     AMENDATORY     70 O.S. 2021, Section 820.24, is 
amended to read as follows: 
   
 
ENR. S. B. NO. 840 	Page 5 
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 pursuant 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. 
 
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: 
   
 
ENR. S. B. NO. 840 	Page 6 
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; 
 
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 postsecondary 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. 
   
 
ENR. S. B. NO. 840 	Page 7 
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 
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 create 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, financial literacy, 
or any other subject the postsecondary institution deems necessary 
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.   
 
ENR. S. B. NO. 840 	Page 8 
 
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 
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 of 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 institutions 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,   
 
ENR. S. B. NO. 840 	Page 9 
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 
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.     AMENDATORY    70 O.S. 2021, Section 822.1, is 
amended to read as follows: 
 
Section 822.1. As used in Sections 2 822.2 and 3 822.3 of this 
act title: 
 
1.  “Immediate family” means a spouse, parent, legal guardian, 
child, sibling, grandparent, domestic pa rtner or any individual 
whose close association with the student -athlete is the practi cal 
equivalent of a family relationship; 
 
2.  “Person” means an individual, corporation, business trust, 
estate, trust, partnership, limited liability company, association , 
joint venture, firm or any other legal or commercial entity; 
 
3.  “Student-athlete” means a student at any public or private 
institution of postsecondary education in this state or a student 
residing in this state who has applied, is eligible to apply, or may 
be eligible to apply in the future to a public or private 
institution of postseco ndary education who engages in, is eligible 
to engage in, or may be eligible to engage in any intercollegiate 
sporting event, contest, exhibition or program shall have the same 
meaning as defined in the Revised Uniform Athlete Agents Act ; and 
   
 
ENR. S. B. NO. 840 	Page 10 
4.  “Transaction” means any action or set of actions occurring 
between two or more persons for the sale or exchange of any property 
or services. 
 
SECTION 8.  It being immediately nec essary 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 a fter its passage and approval. 
   
 
ENR. S. B. NO. 840 	Page 11 
Passed the Senate the 20th day of April, 2023. 
 
 
  
 	Presiding Officer of the Senate 
 
 
Passed the House of Representatives the 20th day of April, 2023. 
 
 
  
 	Presiding Officer of the House 
 	of Representatives 
 
OFFICE OF THE GOVERNOR 
Received by the Office of the Governor this _______ _____________ 
day of ___________________, 20_______, at _______ o'clock _______ M. 
By: _______________________________ __ 
Approved by the Governor of the State of Oklahoma this _____ ____ 
day of _________________ __, 20_______, at _______ o'clock _______ M. 
 
 	_____________________________ ____ 
 	Governor of the State of Oklahoma 
 
 
OFFICE OF THE SECRETARY OF STATE 
Received by the Office of the Secretary of State this _______ ___ 
day of __________________, 20 _______, at _______ o'clock _______ M. 
By: _______________________________ __