Bill Summary for S 574 (2023-2024)

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Summary date: 

Apr 4 2023

Bill Information:

View NCGA Bill Details2023-2024 Session
Senate Bill 574 (Public) Filed Tuesday, April 4, 2023
Intro. by Galey, Craven, Jarvis.

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Bill summary

Amends the NC Uniform Athlete Agents Act (Article 9 of GS Chapter 78C) to provide for certain types of student-athlete contracts, as follows. Defines terms name, image, and likeness (NIL) agency contract (an agreement in which a student-athlete authorizes a person to negotiate or solicit an NIL contract on behalf of the student-athlete), name, image, and likeness (NIL) contract (a contract between a student-athlete and another entity in which the student-athlete receives consideration in exchange for use of the student-athlete's name, image, or likeness), and professional-sports-services agency contract (a agreement in which a  student-athlete authorizes a person to negotiate or solicit a professional-sports-services contract on behalf of the student-athlete). Makes conforming changes to defined term agency contract to include an NIL contract. Removes the term endorsement contract.

Amends GS 78C-94(c) (pertaining to the required form of contracts) to specify that the conspicuous boldface warnings set forth in that subdivision only apply to professional-sports-services agency contracts (currently, applies to agency contracts). Requires an NIL agency contract to contain the specified boldfaced notice in close proximity to the signature. 

Amends GS 78C-95 (pertaining to notice to educational institution) to specify that when a student-athlete enters into professional-sports-services agency contracts they must provide certain notice to certain personnel in their educational institution (currently, only applicable to agency contracts).

Amends GS 78C-98 to provide that if an athlete agent is currently or was within the prior two years employed or in a contractual relationship with an educational institution, the following applies: (1) the athlete agent cannot enter into an NIL agency contract with a student-athlete who is enrolled in that educational institution and (2) an NIL agency contract is void if, following entry into an NIL agency contract, a student-athlete enrolls in that educational institution. Makes conforming changes to GS 78C-88 (pertaining to athlete agents).

Applies to NIL contracts entered into on or after the date the act becomes law.

Amends GS 132-1.2 (confidential information under State public records law) to bar public agencies from disclosing records related to a student-athlete's name, image, and likeness contract with a third party that only came into the possession of an institution of higher education for the purpose of reviewing for compliance with federal law, State law, institutional policies, or policies of an intercollegiate sports association, organization, or conference. Effective when the act becomes law and applies retroactively to all records related to a student-athlete's name, image, and likeness contract ever in the possession of the institution of higher education.