Enacts the student athlete free enterprise act to permit student athletes to engage in free enterprise activities; provides that associations and organizations regulating student athletics in this state shall not prohibit student athletes from engaging in free enterprise activities.
STATE OF NEW YORK
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1428
2009-2010 Regular Sessions
IN ASSEMBLY(Prefiled)
January 7, 2009
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Introduced by M. of A. WRIGHT, MORELLE, BOYLAND, BRENNAN, DIAZ, WEISEN-
BERG -- Multi-Sponsored by -- M. of A. ALFANO, BARRA -- read once and
referred to the Committee on Education
AN ACT to amend the education law, in relation to enacting the "student
athlete free enterprise act"
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "student
2 athlete free enterprise act".
3 § 2. The education law is amended by adding a new article 15-D to read
4 as follows:
5 ARTICLE 15-D
6 STUDENT ATHLETE FREE ENTERPRISE ACT
7 Section 730. Student athlete free enterprise.
8 731. Student athlete trust fund account.
9 § 730. Student athlete free enterprise. No organization or association
10 which governs or otherwise regulates student athletics in this state
11 shall prohibit any student athlete in this state from engaging in any
12 free enterprise activity including, but not limited to; entering into a
13 contract with any person, firm or corporation for the endorsement of any
14 product manufactured or distributed by such person, firm or corporation,
15 selling any product which bears the name or likeness of such student
16 athlete or any other promotional activity which relates to such individ-
17 ual student athlete. No college or university located in this state,
18 which receives any funds or financial support from New York state, shall
19 associate with, join or otherwise participate in activities sponsored or
20 organized by any organization or association which violates the
21 provisions of this section.
22 § 731. Student athlete trust fund account. 1. Any student athlete who
23 competes in amateur athletics sponsored by a college or university
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00102-01-9
A. 1428 2
1 located in this state and who enters into a contractual relationship for
2 the endorsement of any product manufactured or distributed by any
3 person, firm or corporation, sells any product which bears the name or
4 likeness of such student athlete or engages in any other promotional
5 activity which relates to such individual student athlete, shall deposit
6 the proceeds from such contract, sales or activities into a fiduciary
7 account to be held in trust for such student. Such fiduciary account
8 shall be maintained and managed by the higher education services corpo-
9 ration.
10 2. The higher education services corporation shall permit withdrawals
11 and expenditures from such fund for the purposes of:
12 a. providing educational support for a family member; or
13 b. providing emergency assistance, including health care expenses, for
14 such student or his or her family.
15 3. Ten percent of the balance of such account may be provided to the
16 student each year for living expenses.
17 4. The higher education services corporation shall be awarded one
18 percent of any such account for administrative costs associated with the
19 management of such accounts and for use by such corporation for finan-
20 cial assistance programs for other students.
21 § 3. This act shall take effect immediately.
