ON MARCH 25, 2024, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 709, AS AMENDED.
AMENDMENT #1 rewrites the bill to, instead, make the changes described below to the present law regarding an intercollegiate athlete's name, image, or likeness.
Present law authorizes an intercollegiate athlete to earn compensation for the use of the intercollegiate athlete's own name, image, or likeness. Such compensation must be commensurate with the fair market value of the authorized use of the intercollegiate athlete's name, image, or likeness. To preserve the integrity, quality, character, and amateur nature of intercollegiate athletics and to maintain a clear separation between amateur intercollegiate athletics and professional sports, such compensation must not be provided in exchange for athletic performance or attendance at an institution. This amendment revises the present law by, instead, authorizing an intercollegiate athlete may earn compensation and perform diligence for the use of the intercollegiate athlete's own name, image, or likeness. An intercollegiate athletic association must not unfairly restrict an intercollegiate athlete's ability to earn compensation for, or perform diligence related to, the intercollegiate athlete's name, image, or likeness rights. This amendment deletes the present law provision above prohibiting such compensation from being provided in exchange for athletic performance or attendance at an institution.
As used in the above present law, an "intercollegiate athlete" means a student who is enrolled in an institution and participates in an athletic program. This amendment adds to the definition by providing that an "intercollegiate athlete" also means a prospective student who has started or completed ninth grade and can, in the future, enroll in an institution and participate in an athletic program.
Present law prohibits an institution or an officer, director, or employee of the institution from compensating a current or prospective intercollegiate athlete for the intercollegiate athlete's name, image, or likeness. This amendment revises the present law by, instead, prohibiting an institution and its affiliated foundations, or an officer, director, or employee thereof, including athletic coaches and staff, from compensating an intercollegiate athlete for the intercollegiate athlete's name, image, or likeness unless expressly permitted by federal law, a court order, or the institution's athletic association. However, an athletic association must not, in any way, abridge an individual's property rights under existing law, or restrict an intercollegiate athlete's ability to earn compensation, obtain representation, or perform diligence for the same under this amendment.
This amendment prohibits an institution and its affiliated foundations, or an officer, director, or employee thereof, including athletic coaches and staff, from being held liable to a third party or an intercollegiate athlete for any damages, losses, or claims of any kind resulting from, or related to, its good faith decisions, actions, or involvement in name, image, or likeness activities taken in the course of its participation in intercollegiate athletics.
Present law prohibits an institution from adopting or maintaining a rule, regulation, standard, or other requirement that prevents or unduly restricts an intercollegiate athlete from earning compensation for the use of the athlete's name, image, or likeness. Any compensation earned does not affect the intercollegiate athlete's grant-in-aid or athletic eligibility. To the extent that intercollegiate athletes receive need-based financial aid, an institution may adjust an intercollegiate athlete's need-based financial aid as a result of compensation earned for the athlete's name, image, or likeness in the same manner as the institution would for other students with equivalent levels of financial need. This amendment adds to the present law by providing that any diligence performed also does not affect the intercollegiate athlete's grant-in-aid or athletic eligibility.
Present law authorizes an intercollegiate athlete to obtain representation by a third party for the purpose of securing compensation for the use of the athlete's name, image, or likeness. Any third-party representative of an intercollegiate athlete is a fiduciary for the represented intercollegiate athlete. All athlete agents who represent intercollegiate athletes for purposes of securing compensation for the use of the athlete's name, image, or likeness must be licensed. If the athlete's representative is an attorney who represents an intercollegiate athlete for purposes of securing compensation for the use of her or his name, image, or likeness, then the attorney must also be active and in good standing with the board of professional responsibility or equivalent entity in the state in which the attorney is licensed. This amendment adds to the present law by also authorizing an intercollegiate athlete to obtain representation by a third party for the purpose of performing diligence. If the athlete's representative is an attorney who represents an intercollegiate athlete for purposes of performing diligence, then the attorney must also be active and in good standing with the board of professional responsibility or equivalent entity in the state in which the attorney is licensed.
Present law provides that parents, siblings, grandparents, spouses, and legal guardians of an intercollegiate athlete who represent the intercollegiate athlete for the purpose of securing compensation for the use of the intercollegiate athlete's name, image, or likeness are not considered to be athlete agents, and are not subject to the requirements for athlete agents as prescribed by the law regarding intercollegiate athlete's name, image, or likeness. This amendment adds to the present law by providing that such parents, siblings, grandparents, spouses, and legal guardians are also not subject to the requirements for athlete agents under the Revised Uniform Athlete Agent Act.
This amendment provides that an institution and its affiliated foundations, or an officer, director, or employee thereof, including athletic coaches and staff, who assist, facilitate, or otherwise provide support to an intercollegiate athlete for the purpose of performing diligence and securing compensation for the use of the intercollegiate athlete's name, image, or likeness are not and must not be considered to be athlete agents, and are not subject to the requirements for athlete agents as prescribed by the law regarding intercollegiate athlete's name, image, or likeness or Revised Uniform Athlete Agent Act so long as such individual does not have a direct pecuniary or financial interest in the terms of the student athlete's compensation.
This amendment prohibits an intercollegiate athletic association, including through its governing actions, sanctions, bylaws, and rules, from interfering with an intercollegiate athlete's ability to earn compensation, seek representation, or perform diligence and from otherwise impacting an intercollegiate athlete's eligibility or full participation in intercollegiate athletic events, unless the intercollegiate athlete has committed a violation of an institution's rules, or the law is invalidated or rendered unenforceable by operation of law. The attorney general may bring any appropriate action or proceeding against an intercollegiate athletic association in any court of competent jurisdiction.

Statutes affected:
Introduced: 49-7-1310(c)(3), 49-7-1310