SB 1017

SENATE BILL NO. 1017
A bill to amend 2020 PA 366, entitled
"An act to prohibit postsecondary educational
institutions in this state and certain athletic organizations from preventing a
college athlete from receiving compensation for the use of his or her name,
image, or likeness rights,"
(MCL 390.1731 to 390.1741) by adding section 6a.
the people of the state of michigan enact:
Sec. 6a. (1) A
student athlete shall not enter into a contract that provides compensation to
the student athlete for the use of the student athlete's name, image, or
likeness if the contract does any of the following:
(a) Remains in effect beyond the date the student athlete is no longer
eligible to participate in intercollegiate athletics.
(b) Requires the student athlete to provide either of the following as
consideration:
(i) Any
compensation the student athlete may earn for the use of the student athlete's
name, image, or likeness beyond the date the student athlete is no longer
eligible to participate in intercollegiate athletics.
(ii) The use of the
student athlete's name, image, or likeness beyond the date the student athlete is
no longer eligible to participate in intercollegiate athletics.
(c) Requires any litigation, arbitration, or other dispute resolution
process arising from the contract to occur in another state.
(2) An athlete agent shall not enter into an agent contract with a
student athlete under which the athlete agent represents the
student athlete in relation to contracts or legal matters regarding
opportunities for the student athlete to earn compensation for the use of the
student athlete's name, image, or likeness if the agent contract remains in
effect beyond the date the student athlete is no longer eligible to participate
in intercollegiate athletics.
(3) An athlete agent shall not enter into a fee agreement that requires
the student athlete to provide as consideration either of the following:
(a) Any compensation the student athlete may earn after the student athlete
is no longer eligible to participate in intercollegiate athletics for use of
the student athlete's name, image, or likeness.
(b) Rights associated with the use of the student athlete's name, image,
or likeness after the student athlete is no longer eligible to participate in
intercollegiate athletics.
(4) A contract that provides a student athlete compensation for the use
of the student athlete's name, image, or likeness must require any litigation,
arbitration, or other dispute resolution process arising from the contract to
occur in this state and be governed by this state's laws.
(5) The parties to a contract that provides a student athlete with
compensation for the use of the student athlete's name, image, or likeness
shall ensure that the contract complies with this section.
(6) The parties to any contract involving a student athlete who
transfers from an educational institution located outside of this state to a
postsecondary educational institution shall ensure that the contract complies
with this section if both of the following apply:
(a) The contract provides the student athlete with compensation for the
use of the student athlete's name, image, or likeness.
(b) The contract is in effect on the date of the student athlete's
transfer to the postsecondary educational institution and continues in effect
at the student athlete's postsecondary educational institution.
(7) A contract entered into in violation of this section is void.
(8) As used in this section:
(a) "Athlete agent" means a person who, directly or
indirectly, recruits or solicits an individual to enter into an agent contract
or professional sport services contract, or who procures, offers, promises, or
attempts to obtain employment for an individual with a professional sport team
or as a professional athlete. Athlete agent does not include a member of an
individual's immediate family.
(b) "Compensation" means money, thing of value, or financial
benefit.
(c) "Intercollegiate athletics" means a sport played at the
collegiate level for which eligibility requirements for participation are
established by an athletic association, conference, or organization with
authority over the associated sport.
(d) "Name, image, and likeness" means an individual's name,
voice, signature, photograph, image, likeness, or distinctive appearance, if
any of these aspects have commercial value.
(e) "Student athlete" means an individual who engages in, is
eligible to engage in, or may be eligible to engage in any intercollegiate
sporting event, contest, exhibition, or program. Student athlete does not
include an individual who participates in intramural athletics at a state
institution of higher education or private college or who participates in
professional athletics.