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A10964 Summary:

BILL NOA10964
 
SAME ASNo Same As
 
SPONSORSolages
 
COSPNSR
 
MLTSPNSR
 
Amd §6438-c, Ed L
 
Refines conditions for name, image, and likeness compensation agreements involving student-athletes and prospective student-athletes.
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A10964 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10964
 
                   IN ASSEMBLY
 
                                     April 14, 2026
                                       ___________
 
        Introduced  by M. of A. SOLAGES -- read once and referred to the Commit-
          tee on Higher Education
 
        AN ACT to amend the education law, in relation to student-athlete  name,
          image, and likeness compensation
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 6438-c of the education law, as  added  by  chapter
     2  622  of the laws of 2022, subdivision (a) of subdivision 1 and paragraph
     3  (c) of subdivision 2 as amended and paragraph (d) of  subdivision  2  as
     4  added and such section as renumbered by chapter 154 of the laws of 2023,
     5  is amended to read as follows:
     6    §  6438-c.  Student-athlete name, image, and likeness compensation. 1.
     7  For the purposes of this section:
     8    (a) "student-athlete" shall mean (i) a student enrolled at  a  college
     9  and  participating  in  intercollegiate athletics, or (ii) an individual
    10  who has completed at least their sophomore year of high school or inter-
    11  national equivalent and is eligible, or may in the future  be  eligible,
    12  to  attend  a college and participate in intercollegiate athletics. Such
    13  term shall not include an individual permanently ineligible  to  partic-
    14  ipate in a particular interscholastic or intercollegiate sport; [and]
    15    (b)  "team  contract"  shall  mean  any  written  agreement  between a
    16  student-athlete and a college, or division, department, program or  team
    17  thereof,  which  includes goals and objectives, standards, prohibitions,
    18  broadcast, advertising or marketing rights or consents, rules or  expec-
    19  tations applicable to the student-athlete[.];
    20    (c)  "collegiate sports governing body" shall mean an athletic associ-
    21  ation, conference, or other group or organization  with  authority  over
    22  intercollegiate athletics;
    23    (d) "NIL" shall refer to name, image and likeness; and
    24    (e)  "NIL  advisor"  shall mean any individual or entity, other than a
    25  licensed attorney or registered athlete  agent,  that  for  compensation
    26  negotiates,  arranges, procures, or materially advises on a student-ath-
    27  lete name, image, and likeness agreement.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15464-01-6

        A. 10964                            2
 
     1    2. (a) A college shall not uphold any rule, requirement, standard,  or
     2  other  limitation  that  prevents a student-athlete from earning compen-
     3  sation [pursuant to this section as a result of] from  the  use  of  the
     4  student-athlete's  name, image, or likeness, except as expressly permit-
     5  ted under this section.
     6    (b)  [An athletic association, conference, or other group or organiza-
     7  tion with authority over intercollegiate athletics, including,  but  not
     8  limited  to,  the  National  Collegiate  Athletic Association (NCAA),] A
     9  collegiate sports governing body shall not prevent or unreasonably delay
    10  a student-athlete from earning compensation pursuant to this section [as
    11  a result of the use of the student-athlete's name, image, or likeness].
    12    (c) [An athletic association, conference, or other group or  organiza-
    13  tion  with  authority over intercollegiate athletics, including, but not
    14  limited to, the NCAA,] A collegiate  sports  governing  body  shall  not
    15  [prevent]  take  any adverse action against a college [from: (i) partic-
    16  ipating in intercollegiate athletics]: (i) as a  result  of  allowing  a
    17  student-athlete  to  earn  compensation  pursuant  to this section [from
    18  earning compensation as a result of the  use  of  the  student-athlete's
    19  name, image, or likeness]; or (ii) because an individual or entity whose
    20  purpose  includes  supporting or benefitting the college or its athletic
    21  programs or student-athletes violates the  collegiate  sports  governing
    22  body's  rules  with  regard to a student-athlete's name, image, or like-
    23  ness.  A collegiate sports governing body shall  not  take  any  adverse
    24  action  against  a  college,  or  any individual or entity whose purpose
    25  includes supporting or benefitting the college or its athletic  programs
    26  or  student-athletes,  for entering into contracts for a student-athlete
    27  to earn compensation for the student-athlete's name, image, or likeness;
    28  or (iii) identifying, facilitating, enabling,  or  supporting  [opportu-
    29  nities  for  a  student-athlete  to  earn  compensation for the student-
    30  athlete's] lawful name, image, or likeness opportunities.
    31    (d) [An athletic association, conference, or other group or  organiza-
    32  tion  with  authority over intercollegiate athletics, including, but not
    33  limited to the NCAA, shall not and shall not authorize its member insti-
    34  tutions to:
    35    (i) prevent a college from participation in intercollegiate  athletics
    36  because a student-athlete in attendance has previously earned or intends
    37  to earn compensation for the use of his or her name, image, or likeness;
    38    (ii)  entertain  a complaint, open an investigation, or take any other
    39  adverse action against a college for engaging in any activity  protected
    40  in  this  section or for involvement in a student-athlete's name, image,
    41  or likeness; or
    42    (iii) penalize or prevent a college from participation in  intercolle-
    43  giate  athletics  because an individual or entity whose purpose includes
    44  supporting or benefitting  the  college  or  its  athletic  programs  or
    45  student-athletes violates the collegiate athletic association's rules or
    46  regulations  with  regard  to  a student-athlete's name, image, or like-
    47  ness.] A college or affiliated entity shall not directly  or  indirectly
    48  condition  playing  time, scholarship status, team participation, roster
    49  position, or other athletic  benefits  on  a  student-athlete's  partic-
    50  ipation in any specific name, image, and likeness opportunity.
    51    3. (a) A college[, athletic association, conference, or other group or
    52  organization  with authority over intercollegiate athletics] or collegi-
    53  ate sports governing body shall not provide compensation to  a  prospec-
    54  tive  student-athlete  [with  compensation]  in relation to the student-
    55  athlete's name, image, or likeness.

        A. 10964                            3
 
     1    (b) Any name, image, and likeness agreement  involving  a  prospective
     2  student-athlete  who  is a minor shall: (i) require written consent of a
     3  parent or legal guardian; (ii) include clear written disclosure of mate-
     4  rial terms in plain language; and (iii) provide a rescission  period  of
     5  not less than five business days during which the agreement may be void-
     6  ed without penalty.
     7    4. (a) A [college, athletic association, conference, or other group or
     8  organization  with  authority  over  intercollegiate athletics shall not
     9  prevent a] student-athlete [from obtaining] may obtain  professional  or
    10  other  representation  in  [relation to] connection with name, image, or
    11  likeness [contracts or legal] matters, including[, but not limited  to,]
    12  representation  [provided]  by  licensed  attorneys,  registered athlete
    13  agents [or legal representation provided by attorneys], or NIL advisors.
    14    (b) [Professional representation obtained by a  student-athlete  shall
    15  be  from  persons registered and/or licensed by the state.] Professional
    16  representation provided by athlete agents shall be by persons registered
    17  pursuant to article thirty-nine-E of the  general  business  law.  Legal
    18  representation of student-athletes shall be by attorneys licensed pursu-
    19  ant  to  article fifteen of the judiciary law. Athlete agents and attor-
    20  neys shall provide student-athletes with proof of registration or licen-
    21  sure prior to entering an agreement for representation.
    22    (c) Athlete agents representing student-athletes shall comply with the
    23  federal Sports Agent Responsibility and Trust Act, established in  chap-
    24  ter  104  of  title  15  of  the  United States Code, and all applicable
    25  portions of article thirty-nine-E of the general business law, in  their
    26  relationships with student-athletes.
    27    (d)  Athlete agents, attorneys, and NIL advisors representing student-
    28  athletes shall have a fiduciary duty to act  in  the  best  interest  of
    29  student-athletes.
    30    (e)    Athlete  agents,  attorneys, and NIL advisors and  representing
    31  student-athletes shall have an ongoing duty to disclose actual or poten-
    32  tial conflicts of interest to any student-athletes  represented  by  the
    33  athlete agent, attorney or NIL advisor.
    34    (f)  Any  agreements governing an athlete agent, attorney or NIL advi-
    35  sor's representation of a student-athlete shall:
    36    (i) be in writing;
    37    (ii) include a defined term period which shall not automatically renew
    38  and shall not extend beyond the sooner of the  student-athlete's  eligi-
    39  bility  to  participate,  or  actual  participation,  in intercollegiate
    40  athletics;
    41    (iii) include defined and clear termination rights  for  the  student-
    42  athlete, which shall include, at a minimum, the student-athlete's option
    43  to  terminate  the  agreement  upon  the athlete agent, attorney, or NIL
    44  advisor's material breach of the agreement or violation of any  applica-
    45  ble laws; and
    46    (iv)  clearly  define  any  and  all  fees, costs or expenses that the
    47  student-athlete will incur under the agreement, including but not limit-
    48  ed to any fees that the athlete agent,  attorney  or  NIL  advisor  will
    49  charge.
    50    (g)   Any agreements governing an athlete agent, attorney or NIL advi-
    51  sor's representation of a student-athlete shall not:
    52    (i) include terms that require arbitration  and/or  mediation  as  the
    53  exclusive  means  of dispute resolution available to the student-athlete
    54  or that waive the student-athlete's right to pursue remedies in a  court
    55  of  competent  jurisdiction.  Nothing contained in this section shall be
    56  construed to prohibit a student-athlete and an athlete  agent,  attorney

        A. 10964                            4
 
     1  or  NIL  advisor  from voluntarily agreeing to submit a dispute to arbi-
     2  tration or mediation after such dispute has arisen;
     3    (ii)  provide or offer a student-athlete, prospective student-athlete,
     4  or student-athlete's parent or legal guardian an advance payment,  loan,
     5  or  other  thing of value prior to the student-athlete's enrollment at a
     6  college, except as permitted under the federal Sports Agent Responsibil-
     7  ity and Trust Act;
     8    (iii) require repayment of  any  advance  payment,  loan,  or  benefit
     9  provided  to a student-athlete, prospective student-athlete, or student-
    10  athlete's parent or legal guardian in an amount exceeding the  principal
    11  amount  advanced,  excluding reasonable interest at a rate not to exceed
    12  the applicable federal rate established by the Internal Revenue  Service
    13  pursuant  to  section  1274(d)  of the Internal Revenue Code of 1986, as
    14  amended; or
    15    (iv) grant the athlete agent,  attorney  or  NIL  advisor  any  share,
    16  percentage,  or  interest in the student-athlete or prospective student-
    17  athlete's future earnings that accrue after the sooner of  the  student-
    18  athlete  or prospective student-athlete's eligibility to participate, or
    19  actual participation, in intercollegiate athletics.
    20    (h) Agreements that: (i) do not satisfy the requirements of  paragraph
    21  (g)  of  this  subdivision; or (ii) are between a student-athlete and an
    22  athlete agent or attorney who is not properly licensed or registered  in
    23  compliance  with  applicable rules, regulations and laws, shall be unen-
    24  forceable as against the  student-athlete.  Any  deviations  from  those
    25  fees,  costs  or expenses disclosed under subparagraph (iv) of paragraph
    26  (f) of this subdivision which have not been expressly agreed to in writ-
    27  ing by a student-athlete shall be unenforceable as against the  student-
    28  athlete.
    29    (i)  A student-athlete shall have a right of action against an athlete
    30  agent, attorney or NIL advisor for damages caused by  any  violation  of
    31  this subdivision. In an action brought pursuant to this section, a court
    32  may  award injunctive relief and any other remedy available at law or in
    33  equity to a student-athlete and may award reasonable attorneys' fees  to
    34  a prevailing plaintiff student-athlete.
    35    5.  A  scholarship  [from  the  college  in which a student-athlete is
    36  enrolled that provides the student-athlete with] providing the  cost  of
    37  attendance  [at  that  college  is not compensation for purposes of this
    38  section, and a scholarship] shall not be  revoked,  reduced,  or  condi-
    39  tioned due to a student-athlete earning compensation [as a result of the
    40  use of the student-athlete's] from name, image, or likeness[, or due to]
    41  activities  or  obtaining  [legal  or athletic agent] representation [in
    42  relation to name, image, or likeness matters] as  permitted  under  this
    43  section.
    44    6.  (a)  A  student-athlete  shall not enter into a contract providing
    45  compensation to the student-athlete for  use  of  the  student-athlete's
    46  name,  image,  or  likeness  if  a  provision  of  the contract causes a
    47  conflict pursuant to paragraph (d) of this subdivision.
    48    (b) A student-athlete who enters into  a  contract  providing  compen-
    49  sation  to  the  student-athlete  for use of the student-athlete's name,
    50  image, or likeness shall disclose the contract in advance  of  executing
    51  it  to  an  official  of  the  college,  as designated by the college. A
    52  college shall respond to such disclosure within seven business days.
    53    (c) A college asserting a conflict pursuant to paragraph (a)  of  this
    54  subdivision  shall  disclose  to  the  student-athlete  or  the student-
    55  athlete's [legal] representation  the  relevant  contractual  provisions
    56  that  are  in  conflict;  provided, however, that a college shall not be

        A. 10964                            5
 
     1  required to disclose any financial terms of such contract unless  other-
     2  wise required by applicable law.
     3    (d)  A  college asserting a conflict pursuant to paragraph (a) of this
     4  subdivision may assert a conflict based on,  but  not  limited  to,  the
     5  following grounds:
     6    (i)  the  proposed contract would cause the student-athlete to violate
     7  the team contract; or
     8    (ii) the proposed contract would cause the student-athlete to  violate
     9  the college's student handbook or code of conduct; or
    10    (iii)  the  proposed contract would conflict with an existing contract
    11  or sponsorship the college participates in; or
    12    (iv) the proposed contract would reasonably be judged to cause  finan-
    13  cial loss or reputational damage to the college; or
    14    (v) the proposed contract would require actions by the student-athlete
    15  during team activities; or
    16    (vi)  the  proposed contract would require actions by the student-ath-
    17  lete during scheduled classes; or
    18    (vii) the proposed contract would use the college's name, brand, copy-
    19  written materials, trademarks, service marks, symbols, nicknames,  trade
    20  dress,  insignia,  mascot, uniform styles, colors, imagery, campus land-
    21  marks, or any other intellectual property or indicia without the consent
    22  of the college; or
    23    (viii) the proposed contract  would  require  the  student-athlete  to
    24  display a sponsor's product, logo, brand, or other indicia, or otherwise
    25  advertise for a sponsor, during official team activities; or
    26    (ix)  the  proposed  contract  would  require  the  student-athlete to
    27  display a sponsor's product, logo, brand or other indicia, or  otherwise
    28  advertise  for  a  sponsor at any time, and such sponsor is a competitor
    29  of, or offers products or services within the same category as a sponsor
    30  of the college.
    31    (e) A student-athlete may appeal a conflict determination by a college
    32  through a neutral institutional or statewide review process  established
    33  pursuant to this section. Nothing in this subdivision shall be construed
    34  to  override  or  impair  rights  established  under any other agreement
    35  voluntarily entered into by the student-athlete.
    36    7. A [team of a  college's  athletic  program  shall  not  prevent  a]
    37  student-athlete  [from  using the student-athlete's] may engage in name,
    38  image, or likeness [for  a  commercial  purpose]  activities  when  [the
    39  student-athlete  is]  not  engaged  in official team activities, [except
    40  where there is a conflict pursuant to paragraph (d) of  subdivision  six
    41  of  this  section or any other prohibition in this section] subject only
    42  to lawful conflict determinations under subdivision six of this section.
    43    8. [Each college athletic program that participates in Division 1 NCAA
    44  athletics shall offer a student-athlete assistance program or  programs,
    45  designed to provide student-athletes participating in Division 1 athlet-
    46  ics  with tools aimed to enhance their well-being and experiences in the
    47  classroom, off the field of play, and beyond their  tenure  as  student-
    48  athletes.  The student-athlete assistance program may include but not be
    49  limited to:
    50    (a) a dedicated financial distress fund that  would  support  student-
    51  athletes  in  times  of financial need. Disbursements from such fund are
    52  not compensation for the purposes of this section;
    53    (b) access to ongoing mental health support services provided by coun-
    54  selors specially trained to understand the unique issues  and  pressures
    55  student-athletes confront;

        A. 10964                            6

     1    (c) access to broad-based financial literacy training, with a specific
     2  emphasis  on  the issues and opportunities relevant to student-athletes,
     3  during and beyond their tenure at the college;
     4    (d)  a  degree  completion  assistance  program  that  provides former
     5  student-athletes who disenrolled  from  the  college  in  good  academic
     6  standing  and  who  earned  the  NCAA Academic Progress Rate eligibility
     7  point for Division  I  institutions,  before  completing  their  degree,
     8  access to need-based financial aid and counseling assistance required to
     9  support undergraduate degree completion;
    10    (e)  access to training regarding sex-based discrimination and harass-
    11  ment that ensures student-athletes fully  understand  their  rights  and
    12  responsibilities  under  the  law,  including  how  to  make a report of
    13  discrimination or harassment on their campus;
    14    (f) access to leadership training that will  set  the  conditions  for
    15  student-athletes  to  become  successful  leaders, improve communication
    16  skills, make positive decisions, and manage conflict; and
    17    (g) access to a  career  development  program,  positioned  to  assist
    18  student-athletes  in  transferring  the valuable skills developed during
    19  intercollegiate athletic participation,  to  a  successful  post-college
    20  career.]  Institutions  providing name, image, and likeness compensation
    21  to student-athletes shall  offer  student-athlete  assistance  programs,
    22  including  mental  health services, financial literacy education, degree
    23  completion support, and career development. Institutions shall  annually
    24  report  to  the  commissioner,  in  aggregate form, the availability and
    25  utilization of such programs.
    26    9. (a) A student-athlete, college, and any individual or entity  whose
    27  purpose  includes  supporting or benefitting the college or its athletic
    28  programs or student-athletes, that is subjected to any adverse action by
    29  a collegiate sports governing body  for  conduct  permitted  under  this
    30  section  may  seek  injunctive relief, damages, attorneys' fees, and any
    31  other remedy available at law or in equity.
    32    (b) The commissioner shall designate or  establish  a  student-athlete
    33  NIL  and  athlete  ombudsperson  to  provide guidance on the interaction
    34  between individual NIL rights and other rights, assist with  complaints,
    35  and facilitate non-judicial dispute resolution.
    36    (c)  Nothing in this section shall be construed to diminish, waive, or
    37  automatically incorporate individual name, image,  and  likeness  rights
    38  into  any  agreement absent the student-athlete's informed and voluntary
    39  consent.
    40    § 2. This act shall take effect immediately and shall apply to  agree-
    41  ments  entered  into,  renewed,  modified,  or  extended on or after the
    42  effective date.
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