701 American Bar Association
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
701 AMERICAN BAR ASSOCIATION ADOPTED BY THE HOUSE OF DELEGATES 2022 MIDYEAR MEETING FEBRUARY 14, 2022 RESOLUTION RESOLVED, That the American Bar Association approves the Uniform College Athlete Name, Image, or Likeness Act, promulgated by the National Conference of Commissioners on Uniform State Laws, as an appropriate Act for those states desiring to adopt the specific substantive law suggested therein.
701 REPORT Uniform College Athlete Name, Image, or Likeness Act Summary Intercollegiate sports have grown into a billion-dollar industry, with massive television deals, multi-million-dollar coaching contracts, extravagant facilities, and lucrative commercial licensing agreements, all of which have historically provided huge sums of money to almost everyone involved. Coaches, universities, television networks, and brands have been financially benefitting from an industry built on the backs of college athletes who, until recently, were prohibited from earning compensation for the use of their name, image, or likeness. This all changed in 2019 when California enacted a first in the nation bill to give college athletes a right to earn money from the use of their name, image, or likeness (“NIL”). 1 Since that time an additional 25 states have enacted NIL legislation 2 and three states have expanded college athletes’ rights via executive order. 3 In addition, the National Collegiate Athletic Association (NCAA) announced a new interim NIL policy on June 30, 2021, that permits college athletes “to engage in NIL activities that are consistent with the law of the state where the school is located,” and allows “[c]ollege athletes who attend a school in a state without a NIL law to engage in NIL activity without violating NCAA rules relating to NIL.” 4 The lack of uniformity in the state laws presents significant challenges for educational institutions, athletic associations, conferences, coaches, administrators, college athletes, and high school athletes attempting to select which university to attend. As one of many examples, the Athletic Coast Conference encompasses five states with disparate NIL state laws, 5 two states with differing NIL executive orders, 6 and three states with no NIL state legislation at all. 7 The importance of having a uniform set of rules governing intercollegiate athletic competitions is well established, as is the notion that intercollegiate sports cannot effectively function with conflicting or inconsistent rules from state to state. Given the interdependence of the institutions across the country, the impact of a change in one state’s laws could have a ripple effect on schools and athletes in other states. A uniform law across all states would prevent this instability and ensure that schools in each state are playing under the same general rules. Although existing state NIL laws 1 Sen. Bill 206, 2019-2020 Reg. Sess. (Cal. 2019), https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB206. 2 Alabama, Arizona, Arkansas, Colorado, Connecticut, Florida, Georgia, Illinois, Louisiana, Maryland, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, and Virginia. 3 Kentucky, North Carolina, and Ohio. 4 Michelle Brutlag Hosick, NCAA adopts interim name, image and likeness policy, NAT’L COLLEGIATE ATHLETIC ASSOC. (June 30, 2021), https://www.ncaa.org/about/resources/media-center/news/ncaa- adopts-interim-name-image-and-likeness-policy. 5 Florida, Georgia, Pennsylvania, South Carolina, and Virginia. 6 Kentucky and North Carolina. 7 Indiana, Massachusetts, and New York.
701 share many similarities, there are significant differences among the laws that create inconsistent and conflicting NIL regulation across the states. Since the NCAA announced its interim NIL policy, athletes in states without NIL laws have been able to engage in a wide variety of NIL activity that is prohibited under most state laws. The patchwork of state laws has thus led to disparate NIL benefits and opportunities for college athletes dictated almost entirely by the state law (if any) that governs their institution. These differences may become even more magnified during the upcoming recruiting cycle and influence the enrollment decisions of prospective college athletes. The Uniform College Athlete Name, Image, or Likeness Act will provide a uniform framework for state-level NIL regulation that will provide college athletes with robust protections for their NIL rights while also creating a level playing field for athletes and institutions across state lines. Specifically, the Act does the following: • Protects college athlete NIL rights by prohibiting educational institutions, conferences, and athletic associations from preventing or restricting college athletes from receiving NIL compensation, entering into NIL agreements, engaging in NIL activity, obtaining the services of a NIL agent, or creating or participating in a group license. The Act also prohibits educational institutions, conferences, and athletic associations from interfering with the formation or recognition of a collective representative to facilitate or provide representation to negotiate a group license. • Prohibits the use of logos/trademarks in NIL activity by stating that a college athlete may not include in NIL activity an institution, conference, or athletic association name, trademark, service mark, logo, uniform design, or other identifier of athletic performance depicted or included in a media broadcast or related game footage. In addition, the Act states that a college athlete may not express or imply that an institution, conference, or athletic association endorses or is otherwise affiliated with the athlete’s NIL activity. • Allows educational institutions to prohibit NIL activity in certain circumstances. The Act states that an institution may only adopt policies to prevent college athletes from engaging in NIL activity that is illegal or, if the institution complies with the same policy, that the institution determines has an adverse impact on its reputation. • Clarifies institutional involvement in NIL activity by stating that institutions, conferences, or athletic associations may provide education about NIL compensation, agreements, and activity to college athletes. In addition, institutions, conferences, or athletic associations may: assist a college athlete in evaluating the permissibility of NIL activities, including compliance with state law and institution, conference, and association rules; with the disclosure requirements included in the Act; and by providing a good-faith evaluation of a NIL agent or third party. 2
701 • Creates a framework for college athlete disclosure to university athletic departments for all NIL agreements that meet a certain threshold that is determined by the enacting state. Only college athletes who engage in NIL activity that, for example, amounts to more than $300 for one NIL agreement or more than $2,000 in aggregate in a calendar year must be disclosed. These thresholds, which are set by the enacting state, can ease the compliance burden on college athletes who only engage in small dollar NIL deals or who enter NIL agreements infrequently. • Harnesses existing state laws on athlete agent registration for registration and regulation of NIL agents. Under the Act, all NIL agents are athlete agents and would be subject to the registration provisions of the Uniform Athlete Agents Act (2000), Revised Uniform Athlete Agents Act (2015), or other comparable state law governing registration of athlete agents. • Includes optional provisions on registration of third parties that follows the same framework created by the Uniform Athlete Agents Act. A state that wishes to have oversight of third parties may enact these sections which would require third parties to register with the same agency in the state that oversees athlete agent registration. • Provides institutions and college athletes with a cause of action for damages against a NIL agent or third party if the institution or athlete is adversely affected by an act or omission of the agent or third party in violation of the Act. The Uniform College Athlete Name, Image, or Likeness Act strikes a balance between providing robust rights to college athletes while maintaining the integrity of intercollegiate sports. The work of the Drafting Committee is available in this archive: https://www.uniformlaws.org/viewdocument/committee-archive- 120?CommunityKey=540d3a4a-82de-4b1a-bb1f-3abd6a23b67b&tab=librarydocuments A direct link to the Uniform College Athlete Name, Image, or Likeness Act is available: https://www.uniformlaws.org/HigherLogic/System/DownloadDocumentFile.ashx?Docum entFileKey=5d9316f3-e7b2-cf27-4dd2-a572f5b6cd66&forceDialog=0 Respectfully submitted, Dan Robbins President, National Conference of Commissioners on Uniform State Laws February 2022 3
701 GENERAL INFORMATION FORM Submitting Entity: National Conference of Commissioners on Uniform State Laws Submitted By: Dan Robbins, NCCUSL President 1. Summary of the Resolution(s). The National Conference of Commissioners on Uniform State Laws (NCCUSL) requests approval of the Uniform College Athlete Name, Image, or Likeness Act by the American Bar Association (ABA) House of Delegates. 2. Indicate which of the ABA’s Four goals the resolution seeks to advance (1-Serve our Members; 2-Improve our Profession; 3-Eliminate Bias and Enhance Diversity; 4- Advance the Rule of Law) and provide an explanation on how it accomplishes this. This resolution seeks to advance the ABA’s Goal IV, Advancing the Rule of Law, by providing a uniform set of rules governing college athlete name, image, and likeness compensation to prevent instability, correct competitive imbalances, and ensure that schools in each state are playing under the same general rules. 3. Approval by Submitting Entity. The National Conference of Commissioners on Uniform State Laws granted final approval to the Act at its July 2021 Annual Meeting. 4. Has this or a similar resolution been submitted to the House or Board previously? No. 5. What existing Association policies are relevant to this Resolution and how would they be affected by its adoption? The House previously approved a resolution (02M106D) approving the Uniform Athlete Agent Act promulgated in 2000 as an appropriate Act for those states desiring to adopt the specific substantive law therein, stating that the Act establishes significant disclosure, registration, and record-keeping requirements for sports agents seeking to represent student athletes who are or may be eligible to participate in intercollegiate sports. The House also previously approved a resolution (16M115A) approving the Revised Uniform Athlete Agents Act, promulgated by the National Conference of Commissioners on Uniform State Laws, as an appropriate Act for those states desiring to adopt the specific substantive law therein. The Uniform College Athlete Name, Image, or Likeness Act incorporates an enacting state’s enactment of either the Uniform Athlete Agents Act (2000) or the Revised Uniform Athlete Agents Act (2015) as the method to register NIL agents under the Act. The Uniform College Athlete Name, Image, or Likeness Act also copies the framework for registering sports agents 4
701 promulgated in the Revised Uniform Athlete Agents Act (2015) to create a registration framework for “third parties” as defined in the Act. The existing Association resolutions (02M106D, 16M115A) are not directly affected, but would be indirectly affirmed by adoption of this Resolution. 6. If this is a late report, what urgency exists which requires action at this meeting of the House? Not applicable. 7. Status of Legislation. (If applicable) The Uniform College Athlete Name, Image, or Likeness Act has not yet been enacted in any jurisdiction. 8. Brief explanation regarding plans for implementation of the policy, if adopted by the House of Delegates. NCCUSL will present the Act to state legislatures for consideration and enactment. 9. Cost to the Association. (Both direct and indirect costs) None. 10. Disclosure of Interest. (If applicable) None. 11. Referrals. Pursuant to the agreement between NCCUSL and the ABA, NCCUSL provides information on all of its drafting projects to the ABA via the Section Officers Conference, which notifies all ABA Standing Committees, as well as Sections, Divisions, and Forums. For all NCCUSL drafting projects, the ABA then appoints advisors who are responsible for communication with other interested ABA entities during the drafting process. Tentative drafts are provided upon request. The Drafting Committee’s work can be found here: https://www.uniformlaws.org/viewdocument/committee-archive- 120?CommunityKey=540d3a4a-82de-4b1a-bb1f- 3abd6a23b67b&tab=librarydocuments 12. Name and Contact Information (Prior to the Meeting. Please include name, telephone number and e-mail address). Be aware that this information will be available to anyone who views the House of Delegates agenda online.) 5
701 Tim Schnabel, NCCUSL Executive Director 111 North Wabash Ave., Suite 1010 Chicago, IL 60602 (312) 450-6604 (office) tschnabel@uniformlaws.org 13. Name and Contact Information. (Who will present the Resolution with Report to the House?) Please include best contact information to use when on-site at the meeting. Be aware that this information will be available to anyone who views the House of Delegates agenda online. Dan Robbins, NCCUSL President Motion Picture Association 15301 Ventura Blvd., Bldg. E Sherman Oaks, CA 91403 drobbins@uniformlaws.org 6
701 EXECUTIVE SUMMARY 1. Summary of the Resolution. That the American Bar Association approves the Uniform College Athlete Name, Image, or Likeness Act promulgated by the National Conference of Commissioners on Uniform State Laws in July 2021 as an appropriate Act for those states desiring to adopt the specific substantive law suggested therein. 2. Summary of the issue that the resolution addresses. The Uniform College Athlete Name, Image, or Likeness Act creates a set of rules and restrictions to ensure that college athletes can benefit from the use of their name, image, or likeness without hurting their eligibility to compete as a college athlete and strikes a balance between providing more rights to college athletes while maintaining the integrity of intercollegiate sports. Provisions of the Act provide: (1) a mechanism for permitting college athletes to receive compensation for their name, image, or likeness rights; (2) parameters on the types of activity athletes can engage in to protect institutions; (3) parameters on the compensation athletes can receive to protect college athletes and institutions from misuse or abuse of name, image, or likeness deals; (4) limitations on institution, conference, and athletic association involvement; (5) a disclosure requirement for college athletes; (6) a mechanism for certifying and regulating agents; (7) a mechanism for certifying and regulating third parties who provide compensation to college athletes for the use of their name, image, or likeness; (8) a right of action for college athletes if their name, image, or likeness rights are violated; and (9) civil penalties for violations of the Act. 3. Please explain how the proposed policy position will address the issue. Approval of the Uniform College Athlete Name, Image, or Likeness Act by the American Bar Association House of Delegates would demonstrate to states that the Act is an appropriate approach for addressing the issues described above. 4. Summary of any minority views or opposition internal and/or external to the ABA which have been identified. None known. 7
You can also read