N.Y. Education Law § 6438-c: Student-athlete compensation

§ 6438-c. Student-athlete compensation. 1. For the purposes of this

section:

(a) "student-athlete" shall mean (i) a student enrolled at a college

and participating in intercollegiate athletics, or (ii) an individual

who has completed at least their sophomore year of high school or

international equivalent and is eligible, or may in the future be

eligible, to attend a college and participate in intercollegiate

athletics. Such term shall not include an individual permanently

ineligible to participate in a particular interscholastic or

intercollegiate sport; and

(b) "team contract" shall mean any written agreement between a

student-athlete and a college, or division, department, program or team

thereof, which includes goals and objectives, standards, prohibitions,

broadcast, advertising or marketing rights or consents, rules or

expectations applicable to the student-athlete.

2. (a) A college shall not uphold any rule, requirement, standard, or

other limitation that prevents a student-athlete from earning

compensation pursuant to this section as a result of the use of the

student-athlete's name, image, or likeness.

(b) An athletic association, conference, or other group or

organization with authority over intercollegiate athletics, including,

but not limited to, the National Collegiate Athletic Association (NCAA),

shall not prevent a student-athlete from earning compensation pursuant

to this section as a result of the use of the student-athlete's name,

image, or likeness.

(c) An athletic association, conference, or other group or

organization with authority over intercollegiate athletics, including,

but not limited to, the NCAA, shall not prevent a college from: (i)

participating in intercollegiate athletics as a result of allowing a

student-athlete pursuant to this section from earning compensation as a

result of the use of the student-athlete's name, image, or likeness; or

(ii) identifying, facilitating, enabling, or supporting opportunities

for a student-athlete to earn compensation for the student-athlete's

name, image, or likeness.

(d) An athletic association, conference, or other group or

organization with authority over intercollegiate athletics, including,

but not limited to the NCAA, shall not and shall not authorize its

member institutions to:

(i) prevent a college 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;

(ii) entertain a complaint, open an investigation, or take any other

adverse action against a college for engaging in any activity protected

in this section or for involvement in a student-athlete's name, image,

or likeness; or

(iii) penalize or prevent a college from participation in

intercollegiate athletics because an individual or entity whose purpose

includes supporting or benefitting the college or its athletic programs

or student-athletes violates the collegiate athletic association's rules

or regulations with regard to a student-athlete's name, image, or

likeness.

3. A college, athletic association, conference, or other group or

organization with authority over intercollegiate athletics shall not

provide a prospective student-athlete with compensation in relation to

the student-athlete's name, image, or likeness.

4. (a) A college, athletic association, conference, or other group or

organization with authority over intercollegiate athletics shall not

prevent a student-athlete from obtaining professional representation in

relation to name, image, or likeness contracts or legal matters,

including, but not limited to, representation provided by athlete agents

or legal representation provided by attorneys.

(b) Professional representation obtained by a student-athlete shall be

from persons registered and/or licensed by the state. Professional

representation provided by athlete agents shall be by persons registered

pursuant to article thirty-nine-E of the general business law. Legal

representation of student-athletes shall be by attorneys licensed

pursuant to article fifteen of the judiciary law.

(c) Athlete agents representing student-athletes shall comply with the

federal Sports Agent Responsibility and Trust Act, established in

chapter 104 of title 15 of the United States Code, in their

relationships with student-athletes.

5. A scholarship from the college in which a student-athlete is

enrolled that provides the student-athlete with the cost of attendance

at that college is not compensation for purposes of this section, and a

scholarship shall not be revoked due to earning compensation as a result

of the use of the student-athlete's name, image, or likeness, or due to

obtaining legal or athletic agent representation in relation to name,

image, or likeness matters.

6. (a) A student-athlete shall not enter into a contract providing

compensation to the student-athlete for use of the student-athlete's

name, image, or likeness if a provision of the contract causes a

conflict pursuant to paragraph (d) of this subdivision.

(b) A student-athlete who enters into a contract providing

compensation to the student-athlete for use of the student-athlete's

name, image, or likeness shall disclose the contract in advance of

executing it to an official of the college, as designated by the

college.

(c) A college asserting a conflict pursuant to paragraph (a) of this

subdivision shall disclose to the student-athlete or the

student-athlete's legal representation the relevant contractual

provisions that are in conflict; provided, however, that a college shall

not be required to disclose any financial terms of such contract unless

otherwise required by applicable law.

(d) A college asserting a conflict pursuant to paragraph (a) of this

subdivision may assert a conflict based on, but not limited to, the

following grounds:

(i) the proposed contract would cause the student-athlete to violate

the team contract; or

(ii) the proposed contract would cause the student-athlete to violate

the college's student handbook or code of conduct; or

(iii) the proposed contract would conflict with an existing contract

or sponsorship the college participates in; or

(iv) the proposed contract would reasonably be judged to cause

financial loss or reputational damage to the college; or

(v) the proposed contract would require actions by the student-athlete

during team activities; or

(vi) the proposed contract would require actions by the

student-athlete during scheduled classes; or

(vii) the proposed contract would use the college's name, brand,

copywritten materials, trademarks, service marks, symbols, nicknames,

trade dress, insignia, mascot, uniform styles, colors, imagery, campus

landmarks, or any other intellectual property or indicia; or

(viii) the proposed contract would require the student-athlete to

display a sponsor's product, logo, brand, or other indicia, or otherwise

advertise for a sponsor, during official team activities; or

(ix) the proposed contract would require the student-athlete to

display a sponsor's product, logo, brand or other indicia, or otherwise

advertise for a sponsor at any time, and such sponsor is a competitor

of, or offers products or services within the same category as a sponsor

of the college.

7. A team of a college's athletic program shall not prevent a

student-athlete from using the student-athlete's name, image, or

likeness for a commercial purpose when the student-athlete is not

engaged in official team activities, except where there is a conflict

pursuant to paragraph (d) of subdivision six of this section or any

other prohibition in this section.

8. Each college athletic program that participates in Division 1 NCAA

athletics shall offer a student-athlete assistance program or programs,

designed to provide student-athletes participating in Division 1

athletics with tools aimed to enhance their well-being and experiences

in the classroom, off the field of play, and beyond their tenure as

student-athletes. The student-athlete assistance program may include but

not be limited to:

(a) a dedicated financial distress fund that would support

student-athletes in times of financial need. Disbursements from such

fund are not compensation for the purposes of this section;

(b) access to ongoing mental health support services provided by

counselors specially trained to understand the unique issues and

pressures student-athletes confront;

(c) access to broad-based financial literacy training, with a specific

emphasis on the issues and opportunities relevant to student-athletes,

during and beyond their tenure at the college;

(d) a degree completion assistance program that provides former

student-athletes who disenrolled from the college in good academic

standing and who earned the NCAA Academic Progress Rate eligibility

point for Division I institutions, before completing their degree,

access to need-based financial aid and counseling assistance required to

support undergraduate degree completion;

(e) access to training regarding sex-based discrimination and

harassment that ensures student-athletes fully understand their rights

and responsibilities under the law, including how to make a report of

discrimination or harassment on their campus;

(f) access to leadership training that will set the conditions for

student-athletes to become successful leaders, improve communication

skills, make positive decisions, and manage conflict; and

(g) access to a career development program, positioned to assist

student-athletes in transferring the valuable skills developed during

intercollegiate athletic participation, to a successful post-college

career.