Bill Summaries: S324 (2021)

  • Summary date: Mar 18 2021 - View summary

    Enacts Article 38, Student-Athlete Compensation, of GS Chapter 116. States legislative findings and sets forth three defined terms.

    Permits student-athletes to receive compensation for the use of the student-athlete's name, image, or likeness related to an athletic program at an institution of higher education, which is defined to include a constituent institution of UNC or a private college or university in the State. Defines athletic program to mean a sport 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 intercollegiate athletics. Further, allows student-athletes to contract for athlete agent or attorney representation pursuant to state and federal law.

    Prohibits an institution of higher education or an athletic group or organization with authority over intercollegiate athletics from providing a prospective student-athlete with compensation in relation to his or her name, image, or likeness; excludes scholarships.

    Details specified retaliatory actions prohibited to be taken by institutions of higher education or groups or organizations with authority over intercollegiate athletics in response to a student-athlete taking action permitted by the statute. Prohibited actions include those taken against the student-athlete and the athletic team.

    Establishes requirements regarding contracts entered into by student-athletes for compensation, including that there is no conflict with the team contract and disclosure of the compensation contract to a designated official for the institution of higher education. Requires the institution of higher education to disclose to the student-athlete or his or her representative any conflict identified in the compensation contract and the team contract. Further, prohibits a team contract from preventing a student-athlete from using the athlete's name, image, and likeness for a commercial purpose when the athlete is not engaged in official team activities.

    Amends GS 78C-94 to modify the standard form of agency contract provided for student-athletes, conforming to the authorities now provided in new Article 38, GS Chapter 116. Makes conforming repeal of GS 78C-98(b)(6).

    The above provisions are effective January 1, 2024, and apply to contracts entered into on or after that date.

    Effective when the act becomes law, establishes the 18-member NC Study Committee on Student-Athlete Compensation (Committee). Details Committee membership and appointment, chairs, and meetings. Charges the Committee with studying and making recommendations on ensuring implementation of a fair and equitable system of compensation for student-athletes. Requires consideration of at least five specified factors, including (1) whether receiving compensation will impact eligibility for scholarships or other financial assistance for student-athletes and (2) whether there continues to be significant limitations related to rules of athletic associations, conferences, or other groups or organizations with authority over intercollegiate athletics. Provides for member compensation and committee powers, expenses, staffing, and meeting location. 

    Requires the Committee to report to the 2021 Regular Session of the NCGA by May 15, 2022. Terminates the Committee upon the earlier of its filing a final report or May 15, 2022.