PRINTER'S NO. 990
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
808
Session of
2021
INTRODUCED BY MARTIN, TOMLINSON, BROWNE, A. WILLIAMS AND SAVAL,
JULY 7, 2021
REFERRED TO EDUCATION, JULY 7, 2021
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," adding provisions relating to
intercollegiate athletics by providing for compensation
regarding a college student athlete's name, image or likeness
rights, for professional representation, for scholarships,
for certain contracts violations and claims and for
settlements.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949, is amended by adding an
article to read:
ARTICLE XX-K
INTERCOLLEGIATE ATHLETICS
Section 2001-K. Scope of article.
This article relates to college athlete compensation related
to name, image or likeness and professional representation.
Section 2002-K. Definitions.
The following words and phrases when used in this article
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Athlete agent." As defined in 5 Pa.C.S. § 3102 (relating to
definitions.
"College student athlete." An individual enrolled at an
institution of higher education who participates in
intercollegiate athletics for the institution of higher
education. The term does not include an individual whose
participation is or was in a college intramural sport, club
sport or in a professional sport outside of intercollegiate
athletics.
"Institution of higher education." Any of the following:
(1) A university within the State System of Higher
Education.
(2) The Pennsylvania State University, the University of
Pittsburgh, Temple University, Lincoln University or any
other institution designated as State-related by the
Commonwealth.
(3) The Thaddeus Stevens College of Technology.
(4) A community college as defined in Article XIX-A.
(5) A college established under Article XIX-G.
(6) An institution of higher education located in and
incorporated or chartered by the Commonwealth and entitled to
confer degrees as specified in section 24 Pa.C.S. § 6505
(relating to power to confer degrees) and as provided for by
the standards and qualifications prescribed by the State
Board of Education under 24 Pa.C.S. Ch. 65 (relating to
private colleges, universities and seminaries).
(7) A private school licensed under the act of December
15, 1986 (P.L.1585, No.174), known as the Private Licensed
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Schools Act.
(8) A foreign corporation approved to operate an
educational enterprise under 22 Pa. Code Ch. 36 (relating to
foreign corporation standards).
"NCAA." The National Collegiate Athletic Association.
Section 2003-K. Compensation regarding college student
athlete's name, image or likeness rights.
(a) Compensation allowed.--A college student athlete may
earn compensation for the use of the college student athlete's
name, image or likeness under this article. The compensation
shall be commensurate with the market value of the student
athlete's name, image or likeness. The compensation may not be
provided in exchange, in whole or in part, for a current or
prospective student athlete to attend, participate or perform at
a particular institution of higher education.
(b) Prohibition regarding institutions of higher
education.--An institution of higher education may not:
(1) Uphold a rule, requirement, standard or other
limitation that prevents a college student athlete of the
institution of higher education from earning compensation
through the use of the college student athlete's name, image
or likeness rights.
(2) Arrange third-party compensation for a college
student athlete relating to the use of the college student
athlete's name, image or likeness rights or use a similar
type of arrangement as an inducement to recruit a prospective
college student athlete.
(c) Prohibitions regarding intercollegiate athletic
entities.--An athletic association, conference or other group or
organization with authority over intercollegiate athletics,
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including the NCAA, may not:
(1) Prevent a college student athlete from earning
compensation through the use or license of the college
student athlete's name, image or likeness rights.
(2) Prevent an institution of higher education from
fully participating in intercollegiate athletics as a result
of a college student athlete's use of the college student
athlete's name, image or likeness rights to seek
compensation.
(d) Royalty payment.--A person that produces a college team
jersey, a college team video game or college team trading cards
for the purpose of making a profit shall make a royalty payment
to each college student athlete whose name, image, likeness or
other individually identifiable feature is used.
Section 2004-K. Professional representation.
(a) Prohibitions.--
(1) An institution of higher education, athletic
association, conference or other group or organization with
authority over intercollegiate athletics, including the NCAA,
may not interfere with or prevent a college student athlete
from fully participating in intercollegiate athletics for
obtaining professional representation in relation to
contracts or legal matters, including representation provided
by athlete agents, financial advisors or legal representation
provided by attorneys, in relation to a college student
athlete's use of the college student athlete's name, image or
likeness rights.
(2) An athletic association, conference or other group
or organization with authority over intercollegiate
athletics, including the NCAA, may not prevent an institution
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of higher education from fully participating in
intercollegiate athletics without penalty to the institution
or individual student as a result of a college student
athlete obtaining professional representation in relation to
contracts or legal matters, including representation provided
by athlete agents, financial advisors or legal representation
provided by attorneys, in relation to a college student
athlete's use of the college student athlete's name, image or
likeness rights.
(b) Qualifications.--Professional representation obtained by
a college student athlete shall be from a person:
(1) acting as an athlete agent in accordance with 5
Pa.C.S. Ch. 33 (relating to registration);
(2) acting as a financial advisor in accordance with the
laws of this Commonwealth; or
(3) admitted to practice law by a court of record of
this Commonwealth.
(c) Limitation.--A person that represents an institution of
higher education may not represent a college student athlete in
a business agreement.
Section 2005-K. Scholarships.
(a) Eligibility.--Earning compensation from the use of a
college student athlete's name, image or likeness rights may not
affect the college student athlete's scholarship eligibility,
duration or renewal.
(b) Compensation.--
(1) For purposes of this article, an athletics grant-in-
aid or stipend scholarship from an institution of higher
education in which a college student athlete is enrolled may
not be considered to limit a college student athlete's right
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to use the college student athlete's name, image or likeness
rights, except as expressly provided in this section.
(2) An athletics grant-in-aid or stipend scholarship may
not be revoked or reduced as a result of a college student
athlete earning compensation under this article, except if
otherwise mandated by Federal or state student aid
guidelines.
Section 2006-K. Contracts.
(a) Opportunities.--An institution of higher education,
athletic association, conference or other group or organization
with authority over intercollegiate athletics may not be
required to identify, create, facilitate, negotiate or enable
opportunities for a college student athlete to earn compensation
for the college student athlete's use of the college student
athlete's name, image or likeness rights.
(b) Use of trademarks.--This article shall not establish or
grant a right to a college student athlete to use the name,
trademarks, services marks, logos, symbols or any other
intellectual property, registered or unregistered, of an
institution of higher education, athletic association,
conference or other group or organization with authority over
intercollegiate athletics, in furtherance of the college student
athlete's opportunities to earn compensation for the college
student athlete's use of the college student athlete's name,
image or likeness rights.
(c) Enforcement.--This article shall not limit the right of
an institution of higher education to establish and enforce any
of the following:
(1) Academic standards, requirements, regulations or
obligations for the institution of higher education's college
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student athletes.
(2) Team rules of conduct or other rules of conduct.
(3) Standards or policies regarding the governance or
operation of or participation in intercollegiate athletics.
(4) Disciplinary rules and standards generally
applicable to all students of the institution of higher
education.
(d) Prohibition.--A college student athlete may not earn
compensation as a result of the use of the college student
athlete's name, image or likeness in connection with a person,
company or organization related to or associated with the
development, production, distribution, wholesaling or retailing
of any of the following:
(1) Adult entertainment products and services.
(2) Alcohol products.
(3) Casinos and gambling, including sports betting, the
lottery and betting in connection with video games, online
games and mobile devices.
(4) Tobacco and electronic smoking products and devices.
(5) Prescription pharmaceuticals.
(6) A controlled dangerous substance.
(e) Prohibition.--An institution of higher education may
prohibit a college student athlete's involvement in name, image
or likeness activities that conflict with existing institutional
sponsorship arrangements at the time the college student athlete
discloses a contract to the institution of higher education as
required under subsection (f). An institution of higher
education, at the institution of higher education's discretion,
may prohibit a college student athlete's involvement in name,
image or likeness activities based on other considerations, such
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as conflict with institutional values, as defined by the
institution of higher education. An institution of higher
education shall have policies that specify the name, image or
likeness activities in which college student athletes may or may
not engage.
(f) Disclosure.--A college student athlete who proposes to
enter into a contract providing compensation to the college
student athlete for use of the college student athlete's name,
image or likeness rights shall disclose the contract at least
seven days prior to execution of the contract to an official of
the institution of higher education, who is designated by the
institution of higher education.
Section 2007-K. Violations and claims.
(a) Protections and right to adjudicate.--A college student
athlete, institution of higher education or conference shall not
be deprived of a protection provided under State law with
respect to a controversy that arises in this Commonwealth and
shall have the right to adjudication in this Commonwealth of a
claim that arises in this Commonwealth.
(b) Private civil action.--A college student athlete shall
have the right to pursue a private civil action against a person
that violates this article. The court shall award costs and
reasonable attorney fees to a prevailing plaintiff in an action
brought against a person violating this article.
Section 2008-K. Settlements.
Legal settlements made on or after the effective date of this
section may not permit noncompliance with this article.
Section 2009-K. Severability.
The provisions of this article are severable. If any
provision of this article or the application of any provision of
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this article is held to be invalid, that invalidity shall not
affect any other provision or application of any other provision
that can be given effect without the invalid provision or
application.
Section 2. This act shall take effect in 60 days.
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