SESSION OF 2021
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2264
As Recommended by House Committee on
Judiciary
Brief*
HB 2264 would create law related to postsecondary
student athletes and compensation for the use of student
athletes’ names, images, likeness rights, or athletic reputation
(NIL).
Obligations on Postsecondary Educational Institutions
Postsecondary educational institutions (institutions)
would be prohibited from preventing a student athlete
(athlete) from earning compensation for the use of the
athlete’s NIL or restricting an athlete’s scholarship eligibility
based on compensation for the use of the athlete’s NIL,
except for need-based awards related to income received.
Institutions would also be prohibited from compensating
an athlete or prospective student athlete for the use of the
athlete’s NIL. Scholarships and athletics grants-in-aid would
not be considered as compensation for the use of an athlete’s
NIL.
Institutions would be prohibited from preventing an
athlete from obtaining professional representation in relation
to contracts or legal matters or preventing an athlete from
fully participating in athletics as a result of such
representation.
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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
Institutions would also be prohibited from entering into
contracts that prevent athletes from being compensated for
the use of the the athlete’s NIL when the athlete is not
engaged in official team activities.
Obligations on Athletic Associations
Athletic associations, including, but not limited to, the
National Collegiate Athletic Association, would be prohibited
from restricting participation or imposing any penalty on an
athlete or institution as a result of an athlete earning
compensation from the use of the athlete’s NIL.
Athletic associations would also be prohibited from
preventing an athlete from obtaining professional
representation in relation to contracts or legal matters or
preventing an athlete from fully participating in athletics as a
result of such representation.
Athletic associations would also be prohibited from
compensating an athlete or prospective student athlete for
the use of the athlete’s NIL.
Obligations on Student Athletes
Athletes would be deemed to have granted royalty-free
rights without compensation to the athlete’s institution for the
use of the athlete’s NIL for the institution’s promotional
interests, to the extent determined by the institution. Any
contractual provision otherwise would be declared null and
void.
Athletes would also be required to disclose to their
institutions any contracts providing compensation for use of
the athlete’s NIL within five business days of the date of the
signature of the contract by the athlete. An athlete would not
be permitted to enter into contracts providing compensation
for the use of the athlete’s NIL if such contract conflicts with a
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contract entered into by the athlete’s institution, including, but
not limited to, contracts related to athletic apparel or
advertisements during official team activities, and the
institution asserting such a conflict would be required to make
certain disclosures to the athlete and athlete’s professional
representative.
Obligations on Professional Representatives
The bill would require athlete agents and attorneys
providing representation to athletes to be licensed by Kansas
or hold certificates of registration as provided by applicable
Kansas law. Such representatives would be required to
comply with the Kansas Uniform Athlete Agents Act and the
federal Sports Agent Responsibility and Trust Act.
Other Provisions
The bill would define, for purposes of the bill, terms
including “athlete agent,” “postsecondary educational
institution,” and “student athlete.”
The bill would state it would not authorize prospective
student athletes to negotiate, discuss, or receive
compensation for use of NIL prior to the the earlier of the first
day of class or a semester, session, or term in which the
student is registered full-time at an institution or the first
practice or competition in intercollegiate athletics.
The bill would not apply to contracts entered into by
athletes prior to the effective date of the provisions of the bill.
Additionally, legal settlements arising under the bill would not
be permitted to allow noncompliance with provisions of the
bill.
The bill would allow accredited not-for-profit institutions
with a physical presence in Kansas who are exempted from
the Kansas Private and Out-of-State Postsecondary
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Educational Institution Act to opt out of the provisions of the
bill.
The bill would be in effect from and after January 1,
2022.
Background
The bill was introduced by the House Committee on
Judiciary at the request of Representative Patton on behalf of
Kansas State University and the University of Kansas.
House Committee on Judiciary
In the House Committee hearing on February 18, 2021,
the president of Emporia State University and the athletic
directors of Kansas State University and the University of
Kansas testified as proponents of the bill, stating other
states are enacting similar legislation and the bill would keep
Kansas institutions on a level playing field until federal
legislation is adopted.
A representative of the Kansas Independent College
Association provided written-only proponent testimony. No
neutral or opponent testimony was provided.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget, the Kansas Board of Regents (Board) indicates
enactment of the bill could have a fiscal effect on student
athletes at universities and colleges in Kansas, but would
have no fiscal effect on the Board or any postsecondary
educational institution.
The Office of the Attorney General (OAG) indicates
enactment of the bill would result in more athlete agents
operating in Kansas, which would increase costs associated
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with prosecuting violations of the Uniform Athlete Agent Act;
however, potential costs cannot be estimated as it is
uncertain how many additional cases may be referred. The
OAG also indicates the bill could increase revenues from
registration fees to the Office of the Secretary of State from
additional athlete agents to do business in Kansas. Any fiscal
effect associated with enactment of the bill is not reflected in
The FY 2022 Governor’s Budget Report.
Student athletes; postsecondary educational institutions; compensation
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