Full Text of HB1175 102nd General Assembly
HB1175enr 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning education.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Student-Athlete Endorsement Rights Act is | 5 | | amended by changing Sections 5, 10, 15, 20, and 25 and by | 6 | | adding Section 22 as follows: | 7 | | (110 ILCS 190/5)
| 8 | | Sec. 5. Definitions. In this Act: | 9 | | "Booster" means a person or entity that has made, within | 10 | | the past 5 years, a financial contribution in an amount | 11 | | greater than $1,000 to a postsecondary educational | 12 | | institution's athletics department or an athletics booster | 13 | | organization of that institution. The purchase of season or | 14 | | single game tickets to any athletics event is not a financial | 15 | | contribution for purposes of determining whether an individual | 16 | | or entity is a booster. | 17 | | "Compensation" means anything of value, monetary or | 18 | | otherwise, including, but not limited to, cash, gifts, in-kind | 19 | | items of value, social media compensation, payments for | 20 | | licensing or use of publicity rights, payments for other | 21 | | intellectual or intangible property rights under federal or | 22 | | State law, and any other form of payment or remuneration, | 23 | | except as excluded under this Act. "Compensation" shall not |
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| 1 | | include: | 2 | | (1) tuition, room, board, books, fees, and personal | 3 | | expenses that a postsecondary educational institution | 4 | | provides to a student-athlete in accordance with the rules | 5 | | of the athletic association or conference of which the | 6 | | postsecondary educational institution is a member; | 7 | | (2) Federal Pell Grants and other State and federal | 8 | | grants or scholarships unrelated to, and not awarded | 9 | | because of a student-athlete's participation in | 10 | | intercollegiate athletics or sports competition; | 11 | | (3) any other financial aid, benefits, or awards that | 12 | | a postsecondary educational institution provides to a | 13 | | student-athlete in accordance with the rules of the | 14 | | athletic association or conference of which the | 15 | | postsecondary educational institution is a member; or | 16 | | (4) the payment of wages and benefits to a | 17 | | student-athlete for work actually performed (but not for | 18 | | athletic ability or participation in intercollegiate | 19 | | athletics) at a rate commensurate with the prevailing rate | 20 | | for similar work in the locality of the student-athlete's | 21 | | postsecondary educational institution. | 22 | | "Enrolled" means registered for courses or attending | 23 | | athletic practice or class at a postsecondary educational | 24 | | institution. | 25 | | "Image" means any visual depiction, including, but not | 26 | | limited to, photograph, digital image, rendering, and video. |
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| 1 | | "Intercollegiate athletics program" means an | 2 | | intercollegiate athletics program played at the collegiate | 3 | | level for which eligibility requirements for participation by | 4 | | a student-athlete are established by a national association | 5 | | for the promotion or regulation of collegiate athletics. | 6 | | "Likeness" means a physical, digital, rendering, or other | 7 | | depiction or representation of a student-athlete, including a | 8 | | student-athlete's uniform number or signature, that reasonably | 9 | | identifies the student-athlete with particularity and is not | 10 | | reasonably considered to be a generic representation of a | 11 | | member of an intercollegiate athletics program . | 12 | | "Name" means the first or last name or the nickname of a | 13 | | student-athlete when used in a context that reasonably | 14 | | identifies the student-athlete with particularity. | 15 | | "Name, image, and likeness agreement" or "publicity rights | 16 | | agreement" means a contract or other written or oral | 17 | | arrangement between a student-athlete and a third party | 18 | | licensee regarding the use of the name, image, likeness, or | 19 | | voice of the student-athlete. | 20 | | "Publicity right" means any right that (i) is licensed | 21 | | under a publicity rights agreement or (ii) is recognized under | 22 | | a federal or State law that permits an individual to control | 23 | | and benefit from the commercial use of the name, image, | 24 | | likeness, or voice of the individual. | 25 | | "Postsecondary educational institution" means a public | 26 | | university or community college or private university or |
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| 1 | | college. | 2 | | "Social media compensation" means all forms of payment for | 3 | | engagement on social media received by a student-athlete as a | 4 | | result of the use of that student-athlete's name, image, | 5 | | likeness, or voice. | 6 | | "Student-athlete" means a student currently enrolled at a | 7 | | postsecondary educational institution who engages in, is | 8 | | eligible to engage in, or may be eligible in the future to | 9 | | engage in, an intercollegiate athletics program at a | 10 | | postsecondary educational institution. If an individual is | 11 | | permanently ineligible to participate in a particular | 12 | | intercollegiate sport, the individual is not a student-athlete | 13 | | for purposes of that sport. | 14 | | "Third party licensee" means any individual or entity that | 15 | | licenses publicity rights or the use of name, image, likeness, | 16 | | or voice from any prospective or current student-athlete or | 17 | | group of student-athletes. "Third party licensee" shall not | 18 | | include any national association for the promotion or | 19 | | regulation of collegiate athletics, athletics conference, or | 20 | | postsecondary educational institution.
| 21 | | (Source: P.A. 102-42, eff. 7-1-21.) | 22 | | (110 ILCS 190/10)
| 23 | | Sec. 10. Compensation. Except as provided in Section 15: | 24 | | (1) A student-athlete may earn compensation, | 25 | | commensurate with market value, for the use of the name, |
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| 1 | | image, likeness, or voice of the student-athlete while | 2 | | enrolled at a postsecondary educational institution and | 3 | | obtain and retain an a certified agent for any matter or | 4 | | activity relating to such compensation. | 5 | | (2) A student-athlete may not earn compensation in | 6 | | exchange for the student-athlete's athletic ability or | 7 | | participation in intercollegiate athletics or sports | 8 | | competition or agreement or willingness to attend a | 9 | | postsecondary educational institution. | 10 | | (3) Notwithstanding any other provision of law or | 11 | | agreement to the contrary, a student-athlete shall not be | 12 | | deemed an employee, agent, or independent contractor of an | 13 | | association, a conference, or a postsecondary educational | 14 | | institution based on the student-athlete's participation | 15 | | in an intercollegiate athletics program.
| 16 | | (Source: P.A. 102-42, eff. 7-1-21.) | 17 | | (110 ILCS 190/15)
| 18 | | Sec. 15. Postsecondary educational institutions; | 19 | | limitations; prohibitions. | 20 | | (a) Except as provided in this Act, a postsecondary | 21 | | educational institution shall not uphold any contract, rule, | 22 | | regulation, standard, or other requirement that prevents a | 23 | | student-athlete of that institution from earning compensation | 24 | | as a result of the use of the student-athlete's name, image, | 25 | | likeness, or voice. Any such contract, rule, regulation, |
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| 1 | | standard, or other requirement shall be void and unenforceable | 2 | | against the postsecondary educational institution or the | 3 | | student-athlete. Compensation from the use of a | 4 | | student-athlete's name, image, likeness, or voice may not | 5 | | affect the student-athlete's scholarship eligibility, | 6 | | grant-in-aid, or other financial aid, awards or benefits, or | 7 | | the student-athlete's intercollegiate athletic eligibility. | 8 | | Nothing in this Act is intended to alter any State or federal | 9 | | laws, rules, or regulations regarding the award of financial | 10 | | aid at postsecondary educational institutions. | 11 | | (b) Except as provided in this Act, an athletic | 12 | | association, conference, or other group or organization with | 13 | | authority over intercollegiate athletic programs, including, | 14 | | but not limited to, the National Collegiate Athletic | 15 | | Association, the National Association of Intercollegiate | 16 | | Athletics, and the National Junior College Athletic | 17 | | Association, shall not prevent, or otherwise enforce a | 18 | | contract, rule, regulation, standard, or other requirement | 19 | | that prevents a student-athlete at a postsecondary educational | 20 | | institution from earning compensation as a result of the use | 21 | | of the student-athlete's name, image, likeness, or voice. | 22 | | (c) To protect the integrity of its educational mission | 23 | | and intercollegiate athletics program, a postsecondary | 24 | | educational institution may impose reasonable limitations on | 25 | | the dates and time that a student-athlete may participate in | 26 | | endorsement, promotional, social media, or other activities |
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| 1 | | related to the license or use of the student-athlete's name, | 2 | | image, likeness, or voice. Nothing in this Act shall restrict | 3 | | a postsecondary educational institution from exercising its | 4 | | sole discretion to control the authorized use of its marks or | 5 | | logos or to determine a student-athlete's apparel, gear, or | 6 | | other wearables during an intercollegiate athletics | 7 | | competition or institution-sponsored event. A student-athlete | 8 | | may not receive or enter into a contract for compensation for | 9 | | the use of the student-athlete's name, image, likeness, or | 10 | | voice in a way that also uses any registered or licensed marks, | 11 | | logos, verbiage, name, or designs of a postsecondary | 12 | | educational institution, unless the postsecondary educational | 13 | | institution has provided the student-athlete with written | 14 | | permission to do so prior to execution of the contract or | 15 | | receipt of compensation. If permission is granted to the | 16 | | student-athlete, the postsecondary educational institution, by | 17 | | an agreement of all of the parties, may be compensated for the | 18 | | use in a manner consistent with market rates. A postsecondary | 19 | | educational institution may also prohibit a student-athlete | 20 | | from wearing any item of clothing, shoes, or other gear or | 21 | | wearables with the name, logo, or insignia of any entity | 22 | | during an intercollegiate athletics competition or | 23 | | institution-sponsored event. | 24 | | (d) An athletic association, conference, or other group or | 25 | | organization with authority over intercollegiate athletics | 26 | | programs, including, but not limited to, the National |
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| 1 | | Collegiate Athletic Association, the National Association of | 2 | | Intercollegiate Athletics, and the National Junior College | 3 | | Athletic Association, shall not enforce a contract, rule, | 4 | | regulation, standard, or other requirement that prevents a | 5 | | postsecondary educational institution from participating in an | 6 | | intercollegiate athletics program as a result of the | 7 | | compensation of a student-athlete for the use of the | 8 | | student-athlete's name, image, likeness, or voice. | 9 | | (e) A postsecondary educational institution, athletic | 10 | | association, conference, or other group or organization with | 11 | | authority over intercollegiate athletics programs, including, | 12 | | but not limited to, the National Collegiate Athletic | 13 | | Association, the National Association of Intercollegiate | 14 | | Athletics, and the National Junior College Athletic | 15 | | Association, shall not directly or indirectly: | 16 | | (1) enter into, or offer to enter into, a publicity | 17 | | rights agreement with a prospective or current | 18 | | student-athlete; or | 19 | | (2) provide a prospective or current student-athlete | 20 | | or the student-athlete's family compensation in relation | 21 | | to the use of the student-athlete's name, image, likeness, | 22 | | or voice. | 23 | | (f) A postsecondary educational institution, athletic | 24 | | association, conference, or other group or organization with | 25 | | authority over intercollegiate athletics programs, including, | 26 | | but not limited to, the National Collegiate Athletic |
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| 1 | | Association, the National Association of Intercollegiate | 2 | | Athletics, and the National Junior College Athletic | 3 | | Association, shall not prevent a student-athlete from | 4 | | obtaining professional representation for purposes of this Act | 5 | | in relation to name, image, likeness, or voice, or to secure a | 6 | | publicity rights agreement, including, but not limited to, | 7 | | representation provided by athlete agents or legal | 8 | | representation provided by attorneys. A student-athlete shall | 9 | | provide the postsecondary educational institution with written | 10 | | notice and a copy of the agreement in the manner and at a time | 11 | | prescribed by the institution within 7 days of entering into a | 12 | | representation agreement with any individual for the purpose | 13 | | of exploring or securing compensation for use of the | 14 | | student-athlete's name, image, likeness, or voice .
| 15 | | (Source: P.A. 102-42, eff. 7-1-21.) | 16 | | (110 ILCS 190/20)
| 17 | | Sec. 20. Agents; publicity rights; third party licensees. | 18 | | (a) An agent, legal representative, or other professional | 19 | | service provider offering services to a student-athlete shall, | 20 | | to the extent required, comply with the federal Sports Agent | 21 | | Responsibility and Trust Act and any other applicable laws, | 22 | | rules, or regulations. | 23 | | (b) A grant-in-aid, including cost of attendance, and | 24 | | other permissible financial aid, awards, or benefits from the | 25 | | postsecondary educational institution in which a |
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| 1 | | student-athlete is enrolled shall not be revoked, reduced, nor | 2 | | the terms and conditions altered, as a result of a | 3 | | student-athlete earning compensation or obtaining professional | 4 | | or legal representation pursuant to this Act. | 5 | | (c) A student-athlete shall disclose to the postsecondary | 6 | | educational institution in which the student is enrolled, in a | 7 | | manner and time prescribed by the institution, the existence | 8 | | and substance of all publicity rights agreements. Publicity | 9 | | rights agreements that contemplate cash or other compensation | 10 | | to the student-athlete that is equal to or in excess of a value | 11 | | of $500 shall be formalized into in a written contract, and the | 12 | | contract shall be provided to the postsecondary educational | 13 | | institution in the manner and at a time prescribed by the | 14 | | institution which the student is enrolled prior to the | 15 | | execution of the agreement and before any compensation is | 16 | | provided to the student-athlete . | 17 | | (d) A student-athlete may not enter into a publicity | 18 | | rights agreement or otherwise receive compensation for that | 19 | | student-athlete's name, image, likeness, or voice for services | 20 | | rendered or performed while that student-athlete is | 21 | | participating in activities sanctioned by that | 22 | | student-athlete's postsecondary educational institution if | 23 | | such services or performance by the student-athlete would | 24 | | conflict with a provision in a contract, rule, regulation, | 25 | | standard, or other requirement of the postsecondary | 26 | | educational institution. |
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| 1 | | (e) No booster, third party licensee, or any other | 2 | | individual or entity, shall provide or directly or indirectly | 3 | | arrange for a third party to provide compensation to a | 4 | | prospective or current student-athlete or enter into, or | 5 | | directly or indirectly arrange for a third party to enter | 6 | | into, a publicity rights agreement as an inducement for the | 7 | | student-athlete to attend or enroll in a specific institution | 8 | | or group of institutions. Compensation for a student-athlete's | 9 | | name, image, likeness, or voice shall not be conditioned on | 10 | | athletic performance or attendance at a particular | 11 | | postsecondary educational institution. | 12 | | (f) A postsecondary educational institution may fund an | 13 | | independent, third-party administrator to support education, | 14 | | monitoring, disclosures, and reporting concerning name, image, | 15 | | likeness, or voice activities by student-athletes authorized | 16 | | pursuant to this Act. A third-party administrator cannot be a | 17 | | registered athlete agent. | 18 | | (g) No postsecondary educational institution shall provide | 19 | | or directly or indirectly arrange for a third party to provide | 20 | | compensation to a prospective or current student-athlete or | 21 | | enter into , or directly or indirectly arrange for a third | 22 | | party to enter into, a publicity rights agreement with a | 23 | | prospective or current student-athlete. Nothing in this Act | 24 | | shall require a postsecondary educational institution to | 25 | | directly or indirectly identify, create, facilitate, arrange, | 26 | | negotiate, or otherwise enable opportunities for a prospective |
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| 1 | | or current student-athlete to enter into a publicity rights | 2 | | agreement with a third party. | 3 | | (h) No student-athlete shall enter into a publicity rights | 4 | | agreement or receive compensation from a third party licensee | 5 | | relating to the name, image, likeness, or voice of the | 6 | | student-athlete before the date on which the student-athlete | 7 | | enrolls at a postsecondary educational institution. | 8 | | (i) No student-athlete shall enter into a publicity rights | 9 | | agreement or receive compensation from a third party licensee | 10 | | for the endorsement or promotion of gambling, sports betting, | 11 | | controlled substances, cannabis, a tobacco or alcohol company, | 12 | | brand, or products, alternative or electronic nicotine product | 13 | | or delivery system, performance-enhancing supplements, adult | 14 | | entertainment, or any other product or service that is | 15 | | reasonably considered to be inconsistent with the values or | 16 | | mission of a postsecondary educational institution or that | 17 | | negatively impacts or reflects adversely on a postsecondary | 18 | | educational institution or its athletic programs, including, | 19 | | but not limited to, bringing about public disrepute, | 20 | | embarrassment, scandal, ridicule, or otherwise negatively | 21 | | impacting the reputation or the moral or ethical standards of | 22 | | the postsecondary educational institution.
| 23 | | (Source: P.A. 102-42, eff. 7-1-21; 102-687, eff. 12-17-21.) | 24 | | (110 ILCS 190/22 new) | 25 | | Sec. 22. Educational programming. Postsecondary |
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| 1 | | educational institutions are encouraged to provide financial | 2 | | literacy, brand management, and life skills programming | 3 | | designed for student athletes. The programming may include | 4 | | information on time management skills necessary for success as | 5 | | a student athlete and available academic resources. Marketing, | 6 | | advertising, referral, or solicitation information by | 7 | | providers of financial products or services may not be | 8 | | included in such programming. | 9 | | (110 ILCS 190/25)
| 10 | | Sec. 25. Term of student-athlete contract. A contract or | 11 | | representation agreement relating to for the use of the | 12 | | student-athlete's name, image, likeness, or voice that is | 13 | | entered into while the student-athlete is participating in an | 14 | | intercollegiate sport at a postsecondary educational | 15 | | institution may not extend beyond the student-athlete's | 16 | | participation in the sport at an the institution.
| 17 | | (Source: P.A. 102-42, eff. 7-1-21.)
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