HB383: HB383 Georgia High School NIL Protection Act; enact

26 LC 61 0384S House Bill 383 (COMMITTEE SUBSTITUTE) By: Representatives Cox of the 28th, Rhodes of the 124th, Cannon of the 172nd, McClain of the 109th, and Erwin of the 32nd A BILL TO BE ENTITLED AN ACT To amend Titles 20 and 39 of the Official Code of Georgia Annotated, relating to education1 and minors, respectively, so as to provide for high school stud ent athletes and prospective2 student athletes to receive name, image, or likeness compensati on; to provide for the3 automatic expiration of contracts that provide name, image, and likeness compensation to4 student athletes after the student athlete graduates or is no l onger enrolled; to provide for5 application to certain athletic associations; to allow for professional representation of student6 athletes and prospective student athletes; to provide for required written notice to high school7 student athletes; to provide for definitions; to provide for co nstruction; to provide a short8 title; to provide for related matters; to provide for an effect ive date and applicability; to9 repeal conflicting laws; and for other purposes.10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11 SECTION 1.12 This Act shall be known and may be cited as the "Georgia High School NIL Protection Act."13 H. B. 383 (SUB) - 1 - 26 LC 61 0384S SECTION 2.14 Title 20 of the Official Code of Georgia Annotated, relating to education, is amended in15 Chapter 2, relating to elementary and secondary education, by adding a new article to read16 as follows:17 "ARTICLE 32A18 20-2-2105.19 As used in this article, the term:20 (1) 'Athletic association' means any association of schools or any other similar21 organization which acts as an organizing, sanctioning, scheduling, or rule-making body22 for interscholastic athletic activities in which public high schools in this state participate.23 (2) 'Compensation' means anything of value and shall include, but shall not be limited24 to, a promise, performance, or forbearance provided by a promisor in exchange for his,25 her, or its promise.26 (3) 'High school' means a public or private school in this state that enrolls students in any27 of grades nine through 12.28 (4) 'Interscholastic athletic activity' means interscholastic athletic events, competitions,29 scrimmages, exhibitions, practices, and training sessions.30 (5) 'NIL compensation' means compensation received for the use of a person's name,31 image, or likeness.32 (6) 'Parent' means a person who has legal authority to act on behalf of a minor child as33 a natural or adoptive parent or as a legal guardian.34 (7) 'Participating school' means a public or private high scho ol in this state that is a35 member of an athletic association or participates in interschol astic athletic activities36 which are conducted under the authority or rules of an athletic association.37 H. B. 383 (SUB) - 2 - 26 LC 61 0384S (8) 'Postsecondary educational institution' shall have the sam e meaning as "eligible38 postsecondary institution" as set forth in Code Section 20-3-519.39 (9) 'Student athlete' means a student enrolled in a participating school who participates40 in or is eligible to participate in any interscholastic athletic activity which is conducted41 under the authority or rules of an athletic association. Such term shall include home42 study students who participate in such interscholastic athletic activities as provided in43 Code Section 20-2-319.6 and eighth grade students who participate in or are eligible to44 participate in such interscholastic athletic activities on behalf of a participating school.45 20-2-2105.1.46 Nothing in this article shall be construed to abrogate, impair, or limit the authority of the47 courts of this state or any department or agency of this state to enforce any provision of48 federal or state law.49 20-2-2105.2.50 For purposes of this article, a scholarship from the participating school in which a student51 athlete is enrolled that provides such student athlete with all or part of the cost of52 enrollment and attendance at such participating school is not NIL compensation.53 20-2-2105.3.54 (a) Subject to the provisions of Code Sections 39-2-18 through 39-2-21, and except as55 prohibited in this article, a student athlete shall be permitted to receive NIL compensation.56 (b) No current or prospective student athlete shall be provide d or shall receive NIL57 compensation in exchange, in whole or in part, for attending, participating, or performing58 at a particular participating school or a postsecondary educational institution.59 (c) No participating school or entity whose purpose includes supporting or benefiting such60 participating school or its interscholastic athletic activities or related programs or any61 H. B. 383 (SUB) - 3 - 26 LC 61 0384S officer, director, employee, or agent of such participating school or entity shall provide a62 current or prospective student athlete with NIL compensation.63 (d) No student athlete who receives NIL compensation pursuant to this article shall:64 (1) Wear a school based team jersey or otherwise display a school's name, mascot, logo,65 or any other school identifying marks when engaging in any cond uct or activity in66 exchange for receiving NIL compensation;67 (2) Make any reference to a participating school or an athletic association when engaging68 in any conduct or activity in exchange for receiving NIL compensation; or69 (3)(A) Except as provided in subparagraph (B) of this paragraph, endorse or promote70 any good or service of any party that provides NIL compensation to such student athlete71 or of any third-party partner of a party that provides NIL compensation to such student72 athlete during any interscholastic athletic activity, including, but not limited to:73 (i) Wearing apparel of such party or third-party partner;74 (ii) Displaying a logo or brand of such party or third-party partner; and75 (iii) Displaying an insignia or identifying mark of such party or third-party partner.76 (B) The prohibitions provided for in subparagraph (A) of this paragraph shall not apply77 to tryouts, practices, or training sessions.78 (e) No student athlete shall receive NIL compensation for any conduct or activity that79 reasonably can be perceived as endorsing or promoting:80 (1) Alcohol products;81 (2) Tobacco products, including, but not limited to, smokeless tobacco products;82 (3) Vapor products;83 (4) Cannabis products;84 (5) Controlled substances;85 (6) Prescription pharmaceuticals;86 (7) Casinos and gambling, including sports betting, the lottery, and betting in connection87 with video games, online games, and mobile devices;88 H. B. 383 (SUB) - 4 - 26 LC 61 0384S (8) Adult entertainment or pornographic products and services;89 (9) Any product or service, including, but not limited to, online services and products,90 that are restricted for people under the age of 18 years; or91 (10) Weapons, firearms, and ammunition.92 20-2-2105.4.93 Each participating school in this state shall advise each stude nt athlete in writing at the94 beginning of the season of each interscholastic athletic activi ty of the provisions of this95 article, Article 13 of Chapter 3 of this title, and Code Sections 39-2-18 through 39-2-21 and96 shall provide each student athlete with information concerning the effect of receiving97 money or other things of value on the student athlete's future eligibility to participate in98 intercollegiate athletics.99 20-2-2105.5.100 The provisions of this article shall not apply to intramural at hletic programs or events at101 such participating schools.102 20-2-2105.6.103 (a) No contract that provides for NIL compensation to a student athlete shall survive after104 the earlier of:105 (1) Ten calendar days after the date upon which such student a thlete graduates from a106 participating school; or107 (2) Thirty calendar days after the date upon which such student athlete's enrollment in108 a participating school terminates for any reason provided for by Georgia law; the policies,109 rules, or regulations of the State Board of Education; or the policies, rules, or regulations110 of a nonpublic participating school, including, but not limited to, withdrawal,111 nonattendance, dropping out, nonresidency in the participating school's attendance zone,112 H. B. 383 (SUB) - 5 - 26 LC 61 0384S nonresidency in this state, enrollment in a school that is not a participating school, and113 expulsion.114 (b) No contract that provides for NIL compensation to a student athlete shall include any115 provision that does not comply with the provisions of subsection (a) of this Code section,116 and any such provision shall be void and unenforceable.117 20-2-2105.7.118 (a) No athletic association shall prevent a student athlete from or penalize a student athlete119 for receiving NIL compensation as provided for in this article.120 (b) No athletic association shall prevent a participating scho ol from participating in121 interscholastic athletic activities, or otherwise penalize a participating school as a result of122 a student athlete of such participating school receiving NIL compensation as provided for123 in this article.124 (c) No public school which receives funding under Article 6 of this chapter shall125 participate in, sponsor, or provide coaching staff for interscholastic athletic activities which126 are conducted under the authority of, conducted under the rules of, or scheduled by any127 athletic association unless the charter, bylaws, or other gover ning documents of such128 athletic association comply with this article.129 20-2-2105.8.130 (a) No participating school or athletic association shall prev ent a student athlete from131 obtaining professional representation in relation to contracts or legal matters, including, but132 not limited to, representation provided by athlete agents who are certified as provided for133 under Chapter 4A of Title 43 and legal representation provided by attorneys who are134 licensed to practice law in this state.135 H. B. 383 (SUB) - 6 - 26 LC 61 0384S (b) Athlete agents representing student athletes shall comply with the federal Sports Agent136 Responsibility and Trust Act, established in 15 U.S.C. Section 7801, et seq., in their137 relationships with student athletes."138 SECTION 3.139 Title 39 of the Official Code of Georgia Annotated, relating to minors, is amended in140 Chapter 2, relating to regulation of employment of minors, by revising Code Section 39-2-18,141 relating to applicability of provisions of chapter to minors employed as actors or performers,142 as follows:143 "39-2-18.144 (a) Notwithstanding any other provisions of this chapter to the contrary, and provided that145 the written consent of the Commissioner of Labor must be first obtained, nothing in this146 chapter shall apply to any minor employed or compensated:147 (1) As as an actor or performer in motion pictures or theatrical productions, in radio or148 television productions, or in any other performance, concert, or entertainment;, or to any149 minor employed in150 (2) For the making of phonographic records; or as151 (3) As an advertising or photographic model; or152 (4) For the use of such minor's name, image, or likeness provided that the written consent153 of the Commissioner of Labor must be first obtained,.154 (b) Before the Commissioner of Labor shall give his or her written consent, as provided155 in subsection (a) of this Code section, he or she shall investigate and determine that:156 (1) The That the environment in which the work is to be performed is proper for the157 minor;158 ( 2 ) T h e t e r m s a n d That the conditions of employment or compensation a r e n o t159 detrimental to the health of the minor;160 H. B. 383 (SUB) - 7 - 26 LC 61 0384S (3) The That the minor's education will not be neglected or hampered by his or her161 participation in any of the activities referred to in subsection (a) of this Code section; and162 (4) Neither That the minor nor his or her name, image, or likeness will not be used for163 pornographic purposes or for any purpose prohibited by subsecti on (e) of Code164 Section 20-2-2105.3."165 SECTION 4.166 This Act shall become effective upon its approval by the Governor or upon its becoming law167 without such approval and shall apply to all contracts entered into or renewed on or after168 such date.169 SECTION 5.170 All laws and parts of laws in conflict with this Act are repealed.171 H. B. 383 (SUB) - 8 -