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This entry was published on 2023-07-07
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SECTION 6438-C
Student-athlete compensation
Education (EDN) CHAPTER 16, TITLE 7, ARTICLE 129-A
§ 6438-c. Student-athlete compensation. 1. For the purposes of this
section:

(a) "student-athlete" shall mean (i) a student enrolled at a college
and participating in intercollegiate athletics, or (ii) an individual
who has completed at least their sophomore year of high school or
international equivalent and is eligible, or may in the future be
eligible, to attend a college and participate in intercollegiate
athletics. Such term shall not include an individual permanently
ineligible to participate in a particular interscholastic or
intercollegiate sport; and

(b) "team contract" shall mean any written agreement between a
student-athlete and a college, or division, department, program or team
thereof, which includes goals and objectives, standards, prohibitions,
broadcast, advertising or marketing rights or consents, rules or
expectations applicable to the student-athlete.

2. (a) A college shall not uphold any rule, requirement, standard, or
other limitation that prevents a student-athlete from earning
compensation pursuant to this section as a result of the use of the
student-athlete's name, image, or likeness.

(b) An athletic association, conference, or other group or
organization with authority over intercollegiate athletics, including,
but not limited to, the National Collegiate Athletic Association (NCAA),
shall not prevent a student-athlete from earning compensation pursuant
to this section as a result of the use of the student-athlete's name,
image, or likeness.

(c) An athletic association, conference, or other group or
organization with authority over intercollegiate athletics, including,
but not limited to, the NCAA, shall not prevent a college from: (i)
participating in intercollegiate athletics as a result of allowing a
student-athlete pursuant to this section from earning compensation as a
result of the use of the student-athlete's name, image, or likeness; or
(ii) identifying, facilitating, enabling, or supporting opportunities
for a student-athlete to earn compensation for the student-athlete's
name, image, or likeness.

(d) An athletic association, conference, or other group or
organization with authority over intercollegiate athletics, including,
but not limited to the NCAA, shall not and shall not authorize its
member institutions to:

(i) prevent a college from participation in intercollegiate athletics
because a student-athlete in attendance has previously earned or intends
to earn compensation for the use of his or her name, image, or likeness;

(ii) entertain a complaint, open an investigation, or take any other
adverse action against a college for engaging in any activity protected
in this section or for involvement in a student-athlete's name, image,
or likeness; or

(iii) penalize or prevent a college from participation in
intercollegiate athletics because an individual or entity whose purpose
includes supporting or benefitting the college or its athletic programs
or student-athletes violates the collegiate athletic association's rules
or regulations with regard to a student-athlete's name, image, or
likeness.

3. A college, 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 student-athlete's name, image, or likeness.

4. (a) A college, athletic association, conference, or other group or
organization with authority over intercollegiate athletics shall not
prevent a student-athlete from obtaining professional representation in
relation to name, image, or likeness contracts or legal matters,
including, but not limited to, representation provided by athlete agents
or legal representation provided by attorneys.

(b) Professional representation obtained by a student-athlete shall be
from persons registered and/or licensed by the state. Professional
representation provided by athlete agents shall be by persons registered
pursuant to article thirty-nine-E of the general business law. Legal
representation of student-athletes shall be by attorneys licensed
pursuant to article fifteen of the judiciary law.

(c) Athlete agents representing student-athletes shall comply with the
federal Sports Agent Responsibility and Trust Act, established in
chapter 104 of title 15 of the United States Code, in their
relationships with student-athletes.

5. A scholarship from the college in which a student-athlete is
enrolled that provides the student-athlete with the cost of attendance
at that college is not compensation for purposes of this section, and a
scholarship shall not be revoked due to earning compensation as a result
of the use of the student-athlete's name, image, or likeness, or due to
obtaining legal or athletic agent representation in relation to name,
image, or likeness matters.

6. (a) A student-athlete shall not enter into a contract providing
compensation to the student-athlete for use of the student-athlete's
name, image, or likeness if a provision of the contract causes a
conflict pursuant to paragraph (d) of this subdivision.

(b) A student-athlete who enters into a contract providing
compensation to the student-athlete for use of the student-athlete's
name, image, or likeness shall disclose the contract in advance of
executing it to an official of the college, as designated by the
college.

(c) A college asserting a conflict pursuant to paragraph (a) of this
subdivision shall disclose to the student-athlete or the
student-athlete's legal representation the relevant contractual
provisions that are in conflict; provided, however, that a college shall
not be required to disclose any financial terms of such contract unless
otherwise required by applicable law.

(d) A college asserting a conflict pursuant to paragraph (a) of this
subdivision may assert a conflict based on, but not limited to, the
following grounds:

(i) the proposed contract would cause the student-athlete to violate
the team contract; or

(ii) the proposed contract would cause the student-athlete to violate
the college's student handbook or code of conduct; or

(iii) the proposed contract would conflict with an existing contract
or sponsorship the college participates in; or

(iv) the proposed contract would reasonably be judged to cause
financial loss or reputational damage to the college; or

(v) the proposed contract would require actions by the student-athlete
during team activities; or

(vi) the proposed contract would require actions by the
student-athlete during scheduled classes; or

(vii) the proposed contract would use the college's name, brand,
copywritten materials, trademarks, service marks, symbols, nicknames,
trade dress, insignia, mascot, uniform styles, colors, imagery, campus
landmarks, or any other intellectual property or indicia; or

(viii) the proposed contract would require the student-athlete to
display a sponsor's product, logo, brand, or other indicia, or otherwise
advertise for a sponsor, during official team activities; or

(ix) the proposed contract would require the student-athlete to
display a sponsor's product, logo, brand or other indicia, or otherwise
advertise for a sponsor at any time, and such sponsor is a competitor
of, or offers products or services within the same category as a sponsor
of the college.

7. A team of a college's athletic program shall not prevent a
student-athlete from using the student-athlete's name, image, or
likeness for a commercial purpose when the student-athlete is not
engaged in official team activities, except where there is a conflict
pursuant to paragraph (d) of subdivision six of this section or any
other prohibition in this section.

8. Each college athletic program that participates in Division 1 NCAA
athletics shall offer a student-athlete assistance program or programs,
designed to provide student-athletes participating in Division 1
athletics with tools aimed to enhance their well-being and experiences
in the classroom, off the field of play, and beyond their tenure as
student-athletes. The student-athlete assistance program may include but
not be limited to:

(a) a dedicated financial distress fund that would support
student-athletes in times of financial need. Disbursements from such
fund are not compensation for the purposes of this section;

(b) access to ongoing mental health support services provided by
counselors specially trained to understand the unique issues and
pressures student-athletes confront;

(c) access to broad-based financial literacy training, with a specific
emphasis on the issues and opportunities relevant to student-athletes,
during and beyond their tenure at the college;

(d) a degree completion assistance program that provides former
student-athletes who disenrolled from the college in good academic
standing and who earned the NCAA Academic Progress Rate eligibility
point for Division I institutions, before completing their degree,
access to need-based financial aid and counseling assistance required to
support undergraduate degree completion;

(e) access to training regarding sex-based discrimination and
harassment that ensures student-athletes fully understand their rights
and responsibilities under the law, including how to make a report of
discrimination or harassment on their campus;

(f) access to leadership training that will set the conditions for
student-athletes to become successful leaders, improve communication
skills, make positive decisions, and manage conflict; and

(g) access to a career development program, positioned to assist
student-athletes in transferring the valuable skills developed during
intercollegiate athletic participation, to a successful post-college
career.

* NB There are 2 § 6438-a's