CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 26

Introduced by Senators Skinner and Bradford
(Coauthor: Senator Wilk)

December 07, 2020

An act to amend Section 67456 of the Education Code, relating to collegiate athletics.


LEGISLATIVE COUNSEL'S DIGEST


SB 26, as introduced, Skinner. Collegiate athletics: student athlete compensation and representation.
Existing law prohibits California postsecondary educational institutions except community colleges, and every athletic association, conference, or other group or organization with authority over intercollegiate athletics, from providing a prospective intercollegiate student athlete with compensation in relation to the athlete’s name, image, or likeness, or preventing a student participating in intercollegiate athletics from earning compensation as a result of the use of the student’s name, image, or likeness or obtaining professional representation relating to the student’s participation in intercollegiate athletics. Existing law prohibits an athletic association, conference, or other group or organization with authority over intercollegiate athletics from preventing a postsecondary educational institution other than a community college from participating in intercollegiate athletics as a result of the compensation of a student athlete for the use of the student’s name, image, or likeness. Existing law prohibits the revocation of a student’s scholarship as a result of earning compensation or obtaining legal representation as authorized under these provisions. Existing law prohibits a student athlete from entering into a contract providing compensation to the athlete for use of the athlete’s name, image, or likeness if a provision of the contract is in conflict with a provision of the athlete’s team contract. Existing law prohibits a team contract from preventing a student athlete from using the athlete’s name, image, or likeness for a commercial purpose when the athlete is not engaged in official team activities, as specified. Existing law makes these provisions operative on January 1, 2023.
This bill, the Fair Pay to Play Act, would make these provisions operative on January 1, 2022, or when specified rules changes adopted by the Board of Governors of the National Collegiate Athletic Association take effect, whichever occurs first. The bill would prohibit California postsecondary educational institutions except community colleges, and every athletic association, conference, or other group or organization with authority over intercollegiate athletics, from providing a prospective intercollegiate student athlete with compensation in relation to the athlete’s athletic reputation, or preventing a student participating in intercollegiate athletics from earning compensation as a result of the use of the student’s athletic reputation. The bill would prohibit an athletic association, conference, or other group or organization with authority over intercollegiate athletics from preventing a postsecondary educational institution other than a community college from participating in intercollegiate athletics as a result of the compensation of a student athlete for the use of the student’s athletic reputation. The bill would prohibit the revocation of a student’s scholarship as a result of earning compensation for the use of the student’s athletic reputation.
The bill would prohibit a student athlete from entering into a contract providing compensation to the athlete for use of the athlete’s athletic reputation if a provision of the contract is in conflict with a provision of the athlete’s team contract. The bill would prohibit a team contract from preventing a student athlete from using the athlete’s athletic reputation for a commercial purpose when the athlete is not engaged in official team activities, as specified. The bill would authorize a student athlete who prevails in an action brought against an institution for a violation of these provisions to recover reasonable attorney’s fees and court costs, in addition to any damages or equitable relief, against the institution.
The bill would prohibit a postsecondary educational institution from denying a student athlete any rights provided to other college students at the institution, except as provided. The bill would make these provisions severable, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) On September 27, 2019, Governor Gavin Newsom signed into law Senate Bill 206, a bill by Senator Nancy Skinner and Senator Steven Bradford, at a signing ceremony hosted by LeBron James, a lead proponent and advocate for the legislation.
(b) Senate Bill 206 made California the first state in the nation to enact a law to restore to college athletes a right everyone else has: the right to earn compensation from their name, image, and likeness (NIL), or athletic reputation.
(c) After Senate Bill 206 was signed into law, at least 30 other states initiated plans to introduce similar laws, and four states have enacted them. The State of Florida’s NIL law is scheduled take effect first, on July 1, 2021.

SEC. 2.

 This act shall be known, and may be cited as, the Fair Pay to Play Act.

SEC. 3.

 Section 67456 of the Education Code is amended to read:

67456.
 (a) (1) A postsecondary educational institution shall not uphold any rule, requirement, standard, or other limitation that prevents a student of that institution participating in intercollegiate athletics from earning compensation as a result of the use of the student’s name, image, or likeness. likeness, or athletic reputation. Earning compensation from the use of a student’s name, image, or likeness likeness, or athletic reputation shall not affect the student’s scholarship eligibility.
(2) An athletic association, conference, or other group or organization with authority over intercollegiate athletics, including, but not limited to, the National Collegiate Athletic Association, shall not prevent a student of a postsecondary educational institution participating in intercollegiate athletics from earning compensation as a result of the use of the student’s name, image, or likeness. likeness, or athletic reputation.
(3) An athletic association, conference, or other group or organization with authority over intercollegiate athletics, including, but not limited to, the National Collegiate Athletic Association, shall not prevent a postsecondary educational institution from participating in intercollegiate athletics as a result of the compensation of a student athlete for the use of the student’s name, image, or likeness. likeness, or athletic reputation.
(b) A postsecondary educational institution, 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 athlete’s name, image, or likeness. likeness, or athletic reputation.
(c) (1) A postsecondary educational institution, athletic association, conference, or other group or organization with authority over intercollegiate athletics shall not prevent a California student participating in intercollegiate athletics from obtaining professional representation in relation to contracts or legal matters, including, but not limited to, representation provided by athlete agents or legal representation provided by attorneys.
(2) Professional representation obtained by student athletes shall be from persons licensed by the state. Professional representation provided by athlete agents shall be by persons licensed pursuant to Chapter 2.5 (commencing with Section 18895) of Division 8 of the Business and Professions Code. Legal representation of student athletes shall be by attorneys licensed pursuant to Article 1 (commencing with Section 6000) of Chapter 4 of Division 3 of the Business and Professions Code.
(3) Athlete agents representing student athletes shall comply with the federal Sports Agent Responsibility and Trust Act, established in Chapter 104 (commencing with Section 7801) of Title 15 of the United States Code, in their relationships with student athletes.
(d) A scholarship from the postsecondary educational institution in which a student is enrolled that provides the student with the cost of attendance at that institution is not compensation for purposes of this section, and a scholarship shall not be revoked as a result of earning compensation or obtaining legal representation pursuant to this section.
(e) (1) A student athlete shall not enter into a contract providing compensation to the athlete for use of the athlete’s name, image, or likeness likeness, or athletic reputation if a provision of the contract is in conflict with a provision of the athlete’s team contract.
(2) A student athlete who enters into a contract providing compensation to the athlete for use of the athlete’s name, image, or likeness likeness, or athletic reputation shall disclose the contract to an official of the institution, to be designated by the institution.
(3) An institution asserting a conflict described in paragraph (1) shall disclose to the athlete or the athlete’s legal representation the relevant contractual provisions that are in conflict.
(f) A team contract of a postsecondary educational institution’s athletic program shall not prevent a student athlete from using the athlete’s name, image, or likeness likeness, or athletic reputation for a commercial purpose when the athlete is not engaged in official team activities. It is the intent of the Legislature that this prohibition shall apply only to contracts entered into, modified, or renewed on or after the enactment of this section.
(g) A student athlete who prevails in an action brought against an institution for a violation of this section may recover reasonable attorney’s fees and court costs, in addition to any damages or equitable relief, against the institution.
(h) A postsecondary educational institution shall not deny a student athlete any rights provided to other college students at the institution, except in relation to recruitment.

(g)

(i) For purposes of this section, “postsecondary educational institution” means any campus of the University of California or the California State University, an independent institution of higher education, as defined in Section 66010, or a private postsecondary educational institution, as defined in Section 94858.
(j) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

(h)

(k) This section shall become operative on January 1, 2023. 2022, or when rule changes adopted by the Board of Governors of the National Collegiate Athletic Association to allow student athletes to receive compensation for third-party endorsements take effect, whichever occurs first.