MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Universities and Colleges
By: Representative Lamar
AN ACT TO AMEND SECTION 37-97-105, MISSISSIPPI CODE OF 1972, TO PROHIBIT A HIGH SCHOOL STUDENT-ATHLETE FROM RECEIVING COMPENSATION FOR THE USE OF THE ATHLETE'S PUBLICITY RIGHTS BEFORE THE ATHLETE SIGNS A LETTER OF INTENT OR OTHER WRITTEN AGREEMENT TO ENROLL IN A POSTSECONDARY EDUCATIONAL INSTITUTION; TO AMEND SECTION 37-97-107, MISSISSIPPI CODE OF 1972, TO AUTHORIZE EMPLOYEES OF POSTSECONDARY EDUCATIONAL INSTITUTIONS TO ASSIST, WITHOUT COMPENSATION, WITH NEGOTIATIONS OF NAME, IMAGE AND LIKENESS AGREEMENTS ON BEHALF OF STUDENT-ATHLETES; TO EXEMPT NAME, IMAGE AND LIKENESS AGREEMENTS FROM THE PUBLIC RECORDS ACT; TO CREATE NEW SECTION 37-97-111, MISSISSIPPI CODE OF 1972, TO REQUIRE A POSTSECONDARY EDUCATIONAL INSTITUTION TO DEVELOP A PROCESS FOR GRANTING A LICENSE FOR THE USE OF THE INSTITUTION'S UNIQUE IDENTIFIERS IN CONNECTION WITH THE PUBLICITY OF A STUDENT-ATHLETE, AND TO AUTHORIZE THE INSTITUTION TO CHARGE A FEE FOR THE LICENSE; TO CREATE NEW SECTION 37-97-113, MISSISSIPPI CODE OF 1972, TO REQUIRE EDUCATIONAL INSTITUTIONS TO OFFER WORKSHOPS TO STUDENT-ATHLETES ON FINANCIAL LITERACY AND LIFE SKILLS; TO BRING FORWARD SECTION 37-97-103, MISSISSIPPI CODE OF 1972, WHICH DEFINES CERTAIN TERMS USED UNDER THE MISSISSIPPI INTERCOLLEGIATE ATHLETICS COMPENSATION RIGHTS ACT, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 37-97-105, Mississippi Code of 1972, is amended as follows:
37-97-105. (1) Except as provided in subsection (3) of this section and in Section 37-97-107, a student-athlete may:
(a) Earn compensation, for the use of publicity rights of the student-athlete; and
(b) Obtain and retain a certified agent for any matter or activity relating to such compensation.
(2) No student-athlete may earn compensation in exchange for the student-athlete's athletic ability or participation in intercollegiate athletics or sports competition.
(3) A student-athlete who is a high school student may not earn or attempt to earn compensation for the use of the athlete's publicity rights before signing an athletic letter of intent or other written agreement to enroll in a postsecondary educational institution in this state.
( * * *4) Notwithstanding any other provision
of applicable law or agreement to the contrary, a student-athlete shall not be deemed
an employee or independent contractor of an association, a conference, or a postsecondary
educational institution based on the student-athlete's participation in an intercollegiate
athletics program.
SECTION 2. Section 37-97-107, Mississippi Code of 1972, is amended as follows:
37-97-107. (1) Except as provided for under this article, a postsecondary educational institution shall not uphold any contract, rule, regulation, standard or other requirement that prevents a student-athlete of that institution from earning compensation for the use of the student's publicity rights. Any such contract, rule, regulation standard or other requirement shall be void and unenforceable against the postsecondary educational institution or the student-athlete. Compensation from the use of a student-athlete's publicity rights may not affect the student-athlete's scholarship eligibility, grant-in-aid or other financial aid, awards or benefits, or the student-athlete's intercollegiate athletic eligibility. Nothing in this article is intended to alter any state and federal laws or regulations regarding the award of financial aid at postsecondary educational institutions.
(2) Except as provided for in this article, an athletic association, conference or other group or organization with authority over intercollegiate athletic programs, including, but not limited to, the National Collegiate Athletic Association (NCAA) and the National Junior College Athletic Association (NJCAA), shall not prevent, or otherwise enforce a contract, rule, regulation, standard or other requirement that prevents, a student-athlete of a postsecondary educational institution from earning compensation as a result of the use of the student-athlete's publicity rights.
(3) To protect the integrity of its educational mission and intercollegiate athletics program, a postsecondary educational institution may impose reasonable limitations on the dates and time that a student-athlete may participate in endorsement, promotional, social media or other activities related to the license or use of the student-athlete's publicity rights. Nothing in this article shall restrict a postsecondary educational institution from exercising its sole discretion to control the authorized use of its marks or logos or to determine a student-athlete's apparel, gear or other wearables during an intercollegiate athletics competition or institution-sponsored event. A student-athlete may not receive or enter into a contract for compensation for the use of his or her publicity rights in a way that also uses any registered or licensed marks, logos, verbiage or designs of a postsecondary institution, unless the institution has provided the student-athlete with written permission to do so prior to entering into the agreement or receipt of compensation. If permission is granted, the postsecondary educational institution, by agreement of all parties, may be compensated for the use in a manner consistent with market rates. A postsecondary educational institution may also prohibit a student-athlete from wearing any item of clothing, shoes, or other gear or wearables with the name, logo or insignia of any entity during an intercollegiate athletics competition or institution-sponsored event.
(4) An athletic association, conference or other group or organization with authority over intercollegiate athletics programs, including, but not limited to, the National Collegiate Athletic Association and the National Junior College Athletic Association, shall not enforce a contract, rule, regulation, standard or other requirement that prevents a postsecondary educational institution from participating in an intercollegiate athletics program, or otherwise penalize the postsecondary educational institution or its intercollegiate athletic program, as a result of activities permitted by this article, including, without limitation, the compensation of a student-athlete for the use of the student-athlete's publicity rights.
(5) (a) A postsecondary educational institution, athletic association, conference or other group or organization with authority over intercollegiate athletics programs, including, but not limited to, the National Collegiate Athletic Association and the National Junior College Athletic Association, shall not:
(i) Enter into, or offer to enter into, a name, image and likeness agreement with a student-athlete; or
(ii) Provide a student-athlete or the student-athlete's family compensation in relation to the use of the student-athlete's publicity rights.
(b) A postsecondary educational institution or officer, director or employee of the institution, including a coach, member of the coaching staff or any individual associated with the institution's athletic department, may identify, create, facilitate, negotiate, support, enable or otherwise assist with opportunities for student-athletes to engage with third parties interested in entering into name, image, and likeness agreements, and may communicate on behalf of student-athletes with third parties interested in providing name, image, and likeness agreements to student-athletes. However, an individual acting on behalf of a student-athlete under this paragraph may not:
(i) Receive compensation from the student-athlete or a third-party for facilitating, enabling or assisting with the opportunities;
(ii) Attempt to influence a student-athlete's choice of professional representation related to the opportunities; or
(iii) Attempt to reduce the student-athlete's opportunities from competing third-parties.
(6) A postsecondary educational institution, athletic association, conference or other group or organization with authority over intercollegiate athletics programs, including, but not limited to, the National Collegiate Athletic Association and the National Junior College Athletic Association shall not prevent a student-athlete from obtaining professional representation in relation to publicity rights, or to secure a name, image and likeness agreement, including, but not limited to, representation provided by athlete agents or legal representation provided by attorneys. A student-athlete shall provide the postsecondary educational institution with written notice at least seven (7) days prior to entering into a representation agreement with any individual for the purpose of exploring or securing compensation for use of the student-athlete's publicity rights.
(7) Professional representation obtained by student-athletes must be from persons registered as athlete agents as provided in Section 73-42-1 et seq. of the Uniform Athlete Agent Act. Attorneys who provide legal representation to student-athletes must be licensed to practice law in the State of Mississippi and in good standing with The Mississippi Bar.
(8) Athlete agents representing student-athletes shall comply with the Uniform Athlete Agents Act, Section 73-42-1 et seq., Mississippi Code of 1972, and the federal Sports Agent Responsibility and Trust Act in 15 USC Sections 7801-7807 in their relationships with student-athletes.
(9) A grant-in-aid, including cost of attendance, and other permissible financial aid, awards or benefits from the postsecondary educational institution in which a student-athlete is enrolled shall not be revoked, reduced, nor the terms and conditions altered, as a result of a student-athlete earning compensation or obtaining professional or legal representation pursuant to this article.
(10) Before any agreement for compensation for the use of a student-athlete's publicity rights is entered into, and before any compensation is provided to the student-athlete in advance of an agreement, the student-athlete shall disclose the agreement to a designated official of the postsecondary educational institution in which the student-athlete is enrolled in a manner prescribed by the institution. An agreement or proposed agreement detailing compensation to a student-athlete for the use of the student-athlete's publicity rights is exempt from the Mississippi Public Records Act of 1983.
(11) A third-party may not enter into, or offer to enter into, a name, image and likeness agreement with a student-athlete or otherwise compensate a student-athlete for the use of the student-athlete's publicity rights if a provision of the name, image and likeness agreement or the use of the student-athlete's publicity rights conflicts with a provision of a contract, rule, regulation, standard or other requirement of the postsecondary educational institution unless such contract or use is expressly approved in writing by the postsecondary educational institution.
(12) No postsecondary educational institution, booster or third-party shall provide a student-athlete compensation or enter into a name, image and likeness agreement as an inducement for the student-athlete to attend or enroll in a specific institution or group of institutions. Compensation for a student-athlete's publicity rights may not be conditioned on athletic performance or attendance.
(13) No student-athlete shall
enter into a name, image, and likeness agreement or receive compensation from a
third-party licensee for the endorsement or promotion of gambling, sports betting,
controlled substances, marijuana, tobacco or alcohol, brand or product, alternative
or electronic nicotine product or delivery system, performance-enhancing supplement,
adult entertainment or any other product or service that is reasonably considered
to be inconsistent with the values or mission of a postsecondary educational institution
or that negatively impacts or reflects adversely on a postsecondary * * *
educational institution
or its athletic programs, including, without limitation, bringing about public disrepute,
embarrassment, scandal, ridicule or otherwise negatively impacting the reputation
or the moral or ethical standards of the postsecondary educational institution.
(14) An agreement for the use of a student-athlete's publicity rights which is formed while the student-athlete is participating in an intercollegiate sport at a postsecondary educational institution may not extend beyond the student-athlete's participation in the sport at the institution.
(15) Nothing in this article shall be interpreted to modify any requirements or obligations imposed under Title IX of the Education Amendments of 1972 (20 USC 1681 et seq.).
SECTION 3. The following shall be codified as Section 37-97-111, Mississippi Code of 1972.
37-97-111. (1) A postsecondary educational institution may authorize the promotion of:
(a) Athletic events in which a student-athlete who is being compensated for the athlete's publicity rights will or may participate;
(b) The postsecondary educational institution that the student-athlete attends; and
(c) The postsecondary educational institution's intercollegiate athletics or sports program.
(2) A postsecondary educational institution may authorize the use of the postsecondary educational institution's or the institution's intercollegiate athletics program's content creation and marketing capabilities in connection with services provided for the promotion of athletic events in which a student-athlete will or may participate, the postsecondary educational institution, or the institution's intercollegiate athletics or sports program.
(3) Each postsecondary educational institution shall develop and adopt a process for granting to a student-athlete, or to a third-party for use in connection with a student-athlete, a license to use the institution's unique identifiers when earning or attempting to earn compensation from the use of a student-athlete's publicity rights consistent with such other policies of the institution regarding licensing of its unique identifiers. For the purposes of this subsection, a "unique identifier" is any of the following developed or adopted for marketing or promotional purposes by a postsecondary educational institution:
(a) Seal;
(b) Logo;
(c) Emblem;
(d) Motto;
(e) Special symbol;
(f) Institutional colors;
(g) Modifier or descriptor;
(h) Design;
(i) Patentable or copyrightable item, material or information; or
(j) Other item, material or information that identifies and is recognizable as unique to a postsecondary educational institution.
(4) A postsecondary educational institution may charge a reasonable fee for a license to use a unique identifier under this section.
(5) A student-athlete granted a license, or a third-party for use in connection with a student-athlete, may not use a unique identifier in any manner that would cause the student-athlete to violate the prohibition against endorsing or promoting certain products or services under Section 37-97-107(13).
SECTION 4. The following shall be codified as Section 37-97-113, Mississippi Code of 1972:
37-97-113. (1) A postsecondary educational institution that enters into commercial agreements that directly or indirectly require the use of a student-athlete's name, image or likeness, or which enrolls a student-athlete who is a party to a name, image and likeness agreement, must offer at least two (2) workshops per academic year on topics including, but not limited to, financial literacy, life skills, time management and entrepreneurship. The workshops may not be offered during the same semester or academic term. Each workshop offered in an academic year must be unique and not simply a repeat of the other workshop offered that year. The institution must notify all student-athletes of the sessions through distribution of informational materials via email or other communication methods that the institution regularly uses to communicate with student-athletes.
(2) An educational workshop may not include any marketing, advertising, referral or solicitation by providers of financial products or services.
SECTION 5. Section 37-97-103, Mississippi Code of 1972, is brought forward as follows:
37-97-103. As used in this article, the following terms shall have the following meanings unless the context clearly indicates otherwise:
(a) "Compensation" means anything of value, monetary or otherwise, including, but not limited to, cash, gifts, in-kind items of value, social media compensation, payments for licensing or use of publicity rights, payments for other intellectual or intangible property rights under federal or state law, and any other form of payment or remuneration, except as excluded under this article.
For the purposes of this article, "compensation" shall not mean or include the following:
(i) Tuition, room, board, books, fees and personal expenses that a postsecondary educational institution provides a student-athlete in accordance with the rules of the athletic association or conference of which the postsecondary educational institution is a member;
(ii) Federal Pell Grants and other state and federal grants or scholarships unrelated to, and not awarded because of a student-athlete's participation in intercollegiate athletics or sports competition;
(iii) Any other financial aid, benefits or awards that a postsecondary educational institution provides a student-athlete in accordance with the rules of the athletic association or conference of which the postsecondary educational institution is a member; or
(iv) The payment of wages and benefits to a student-athlete for work actually performed for services unrelated to a student-athlete's publicity rights or other intellectual or intangible property rights of a student-athlete under federal or state law.
(b) "Image" means a picture of the student-athlete.
(c) "Intercollegiate athletics program" means an intercollegiate athletics program played at the collegiate level for which eligibility requirements for participation by a student-athlete are established by a national association for the promotion or regulation of collegiate athletics.
(d) "Likeness" means a physical, digital or other depiction or representation of a student-athlete.
(e) "Name" means the first or last name, or the nickname, of a student-athlete when used in a context that reasonably identifies the student-athlete with particularity.
(f) "Name, Image and Likeness Agreement" means a contract or other arrangement between a student-athlete and a third-party regarding the use of the publicity of the student-athlete.
(g) "Publicity right" means any right:
(i) Associated with the name, image, likeness, publicity, reputation, fame or personal following of a student-athlete; or
(ii) Recognized under a federal or state law as permitting an individual to control and profit from the use of the name, image, likeness, publicity, reputation, fame or personal following of the individual.
(h) "Postsecondary educational institution" means a public university or community college or private university or college.
(i) "Social media compensation" means all forms of payment for engagement on social media received by a student-athlete as a result of the use of that student-athlete's publicity rights.
(j) "Student-athlete" means an individual who engages in, is eligible to engage in, or may be eligible in the future to engage in, intercollegiate athletics program at a postsecondary educational institution, including, without limitation, prospective student-athletes of an intercollegiate athletics program. If an individual is permanently ineligible to participate in a particular intercollegiate sport, the individual is not a student-athlete for purposes of that sport.
(k) "Third party" means any individual or entity or group of the same, acting independently or collectively, that enters into an agreement for the publicity rights of a student-athlete or group of student-athletes. The term "third party" shall not include any national association for the promotion or regulation of collegiate athletics, athletics conference, or postsecondary educational institution.
SECTION 6. This act shall take effect and be in force from and after July 1, 2024.