Assembly Bill A1428

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1428

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

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:

  Section  1.  This  act shall be known and may be cited as the "student
athlete free enterprise act".
  S 2. The education law is amended by adding a new article 15-D to read
as follows:
                              ARTICLE 15-D
                   STUDENT ATHLETE FREE ENTERPRISE ACT
SECTION 730. STUDENT ATHLETE FREE ENTERPRISE.
        731. STUDENT ATHLETE TRUST FUND ACCOUNT.
  S 730. STUDENT ATHLETE FREE ENTERPRISE. NO ORGANIZATION OR ASSOCIATION
WHICH GOVERNS OR OTHERWISE REGULATES STUDENT  ATHLETICS  IN  THIS  STATE
SHALL  PROHIBIT  ANY  STUDENT ATHLETE IN THIS STATE FROM ENGAGING IN ANY
FREE ENTERPRISE ACTIVITY INCLUDING, BUT NOT LIMITED TO; ENTERING INTO  A
CONTRACT WITH ANY PERSON, FIRM OR CORPORATION FOR THE ENDORSEMENT OF ANY
PRODUCT MANUFACTURED OR DISTRIBUTED BY SUCH PERSON, FIRM OR CORPORATION,
SELLING  ANY  PRODUCT  WHICH  BEARS THE NAME OR LIKENESS OF SUCH STUDENT
ATHLETE OR ANY OTHER PROMOTIONAL ACTIVITY WHICH RELATES TO SUCH INDIVID-
UAL STUDENT ATHLETE. NO COLLEGE OR UNIVERSITY  LOCATED  IN  THIS  STATE,
WHICH RECEIVES ANY FUNDS OR FINANCIAL SUPPORT FROM NEW YORK STATE, SHALL
ASSOCIATE WITH, JOIN OR OTHERWISE PARTICIPATE IN ACTIVITIES SPONSORED OR
ORGANIZED   BY  ANY  ORGANIZATION  OR  ASSOCIATION  WHICH  VIOLATES  THE
PROVISIONS OF THIS SECTION.
  S 731. STUDENT ATHLETE TRUST FUND ACCOUNT. 1. ANY STUDENT ATHLETE  WHO
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

LOCATED IN THIS STATE AND WHO ENTERS INTO A CONTRACTUAL RELATIONSHIP FOR
THE ENDORSEMENT OF  ANY  PRODUCT  MANUFACTURED  OR  DISTRIBUTED  BY  ANY
PERSON,  FIRM  OR CORPORATION, SELLS ANY PRODUCT WHICH BEARS THE NAME OR
LIKENESS  OF  SUCH  STUDENT  ATHLETE OR ENGAGES IN ANY OTHER PROMOTIONAL
ACTIVITY WHICH RELATES TO SUCH INDIVIDUAL STUDENT ATHLETE, SHALL DEPOSIT
THE PROCEEDS FROM SUCH CONTRACT, SALES OR ACTIVITIES  INTO  A  FIDUCIARY
ACCOUNT  TO  BE  HELD  IN TRUST FOR SUCH STUDENT. SUCH FIDUCIARY ACCOUNT
SHALL BE MAINTAINED AND MANAGED BY THE HIGHER EDUCATION SERVICES  CORPO-
RATION.
  2.  THE HIGHER EDUCATION SERVICES CORPORATION SHALL PERMIT WITHDRAWALS
AND EXPENDITURES FROM SUCH FUND FOR THE PURPOSES OF:
  A. PROVIDING EDUCATIONAL SUPPORT FOR A FAMILY MEMBER; OR
  B. PROVIDING EMERGENCY ASSISTANCE, INCLUDING HEALTH CARE EXPENSES, FOR
SUCH STUDENT OR HIS OR HER FAMILY.
  3. TEN PERCENT OF THE BALANCE OF SUCH ACCOUNT MAY BE PROVIDED  TO  THE
STUDENT EACH YEAR FOR LIVING EXPENSES.
  4.  THE  HIGHER  EDUCATION  SERVICES  CORPORATION SHALL BE AWARDED ONE
PERCENT OF ANY SUCH ACCOUNT FOR ADMINISTRATIVE COSTS ASSOCIATED WITH THE
MANAGEMENT OF SUCH ACCOUNTS AND FOR USE BY SUCH CORPORATION  FOR  FINAN-
CIAL ASSISTANCE PROGRAMS FOR OTHER STUDENTS.
  S 3. This act shall take effect immediately.