Substitute For
HOUSE BILL NO. 4816
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "compensation of high school student athletes act".
(a) "Athletic association" means an entity that operates for the purpose of developing common rules for the eligibility and competition of high school student athletes in this state.
(b) "High school" means a nonpublic school or public school that offers at least 1 of grades 9 to 12.
(c) "Nonpublic school" means that term as defined in section 5 of the revised school code, 1976 PA 451, MCL 380.5.
(d) "Public school" means that term as defined in section 5 of the revised school code, 1976 PA 451, MCL 380.5.
Sec. 3. (1) Except as otherwise provided in this act, a student athlete of a high school may earn compensation from the student athlete's use of the student athlete's name, image, and likeness rights under this act from activities such as commercials, product endorsements, personal appearances, autograph sessions, merchandise or apparel sales, group licensing, or acting as a social media influencer.
(2) A student athlete of a high school may not earn compensation from the student athlete's use of the student athlete's name, image, and likeness rights under this act from activities that involve, display, or endorse any of the following:
(a) An adult entertainment product or service.
(b) An alcohol product.
(c) A tobacco or electronic smoking product or device.
(d) A controlled substance.
(e) Any form of gambling, including, but not limited to, sports betting and horse racing.
(f) A weapon, firearm, or ammunition.
(g) A nutritional supplement.
Sec. 5. (1) A student athlete of a high school may not enter into a written agreement or contract with a third party to earn compensation from the student athlete's use of the student athlete's name, image, and likeness rights under this act if any of the following apply:
(a) The third party is an entity that was formed for the express purpose of receiving or pooling funds to create or provide name, image, and likeness opportunities for student athletes.
(b) The agreement or contract is contingent on the student athlete's athletic performance or achievement.
(c) The agreement or contract requires the student athlete to miss school or instructional time to meet the obligations of the agreement or contract.
(2) In addition to any prohibition described in subsection (1), a student athlete of a high school shall not enter into an apparel contract with a third party to earn compensation from the student athlete's use of the student athlete's name, image, or likeness rights, if the contract requires the student athlete to display a sponsor's apparel, or otherwise advertise for a sponsor, during an official team activity.
Sec. 7. (1) Except as otherwise provided in subsection (2), before a student athlete of a high school enters into a written agreement or contract with a third party to earn compensation from the student athlete's use of the student athlete's name, image, and likeness rights under this act, at least 1 parent or legal guardian of the student athlete must consent to the student athlete's entrance into the written agreement or contract.
(2) This section does not apply to either of the following:
(a) A student athlete of a high school who is less than 18 years of age and who is emancipated under 1968 PA 293, MCL 722.1 to 722.6.
(b) A student athlete of a high school who is 18 years of age or older.
Sec. 9. (1) In addition to any requirement under section 7, a student athlete of a high school who intends to enter into a verbal or written opportunity or contract that would provide compensation to the student athlete for use of the student athlete's name, image, or likeness rights shall disclose the proposed opportunity or contract to an official of the Michigan High School Athletic Association, at least 7 days before committing to the opportunity or contract, for review by the Michigan High School Athletic Association.
(2) If the Michigan High School Athletic Association under subsection (1) identifies a conflict with the student athlete's proposed opportunity or contract, the Michigan High School Athletic Association shall communicate that conflict to the student athlete so that the student athlete may negotiate a revision of the opportunity or contract to avoid the conflict, and that revision is subject to additional review and approval by the Michigan High School Athletic Association in accordance with this section.
(3) A policy of a high school's athletic program must not prevent a student athlete of the high school from receiving compensation for using the student athlete's name, image, or likeness rights for a commercial purpose when the student is not engaged in an official team activity, including participating in or being part of an advertisement that was created while not engaged in an official team activity but that may otherwise be broadcasted, displayed, or disseminated at any time.
(4) This section does not apply to a contract entered into, modified, or renewed on or before the effective date of this act.
Sec. 11. A high school shall not uphold any rule, requirement, standard, or other limitation that prevents a student of that high school from fully participating in high school athletics based on that student earning compensation from the student's use of the student's name, image, or likeness rights.
Sec. 13. (1) Except as otherwise provided in subsection (2), a high school or any officer, director, or employee of the high school, including, but not limited to, a coach, a member of a coach staff, or any individual associated with the high school athletic department, shall not do any of the following relating to a student athlete's name, image, likeness rights, or athletic reputation:
(a) Identify or otherwise assist with opportunities for a student athlete to earn compensation from a third party.
(b) Serve as a student athlete's agent.
(c) Receive compensation from the student athlete or a third party for facilitating or enabling those opportunities.
(d) Attempt to influence the student athlete's high school of enrollment or choice of professional representation related to those opportunities.
(e) Attempt to reduce the student athlete's opportunities from competing third parties.
(f) Attend any meeting at which a contract for compensation from those opportunities is negotiated or completed between the student athlete and a third party.
(2) The prohibitions described in this section do not apply to an individual acting in the individual's capacity as the parent or legal guardian of a student athlete.
Sec. 15. An athletic association, conference, or other group or organization with authority over high school athletics shall not do either of the following:
(a) Prevent a student of a high school from fully participating in high school athletics based on the student earning compensation from the student's use of the student's name, image, or likeness rights.
(b) Prevent a high school from fully participating in high school athletics without penalty based on a student of the high school's use of the student's name, image, or likeness rights.
Sec. 17. (1) A high school, athletic association, conference, or other group or organization with authority over high school athletics shall not do any of the following:
(a) Provide a student athlete of a high school or a prospective student athlete of a high school with compensation in relation to the student athlete's name, image, or likeness rights.
(b) Prevent a student athlete of a high school from obtaining professional representation in relation to contracts or legal matters regarding opportunities to be compensated, including, but not limited to, representation provided by an athlete agent or legal representation provided by an attorney.
(c) Prevent a student athlete of a high school from earning compensation from a third party as a result of the student's name, image, likeness rights, or athletic reputation, so long as the student's contract with the third party does not require the student to advertise for a sponsor in person during an official, mandatory team activity. As used in this subdivision, "compensation" includes food, shelter, medical expenses, insurance, cash, barters, free products, and discounts.
(2) As used in this section, "group" includes, but is not limited to, a booster club, a dad's club, or an athletic foundation.
Sec. 19. (1) A high school, athletic association, conference, or other group or organization with authority over high school athletics shall not interfere with or prevent a student from fully participating in high school athletics based on the student obtaining professional representation in relation to contracts or legal matters regarding the student's opportunities to earn compensation, including, but not limited to, representation provided by an athlete agent or financial advisor, or legal representation provided by an attorney.
(2) An athletic association, conference, or other group or organization with authority over high school athletics shall not prevent a high school from fully participating in high school athletics without penalty as a result of a student of the high school obtaining professional representation in relation to contracts or legal matters regarding the student's opportunities to earn compensation, including, but not limited to, representation provided by an athlete agent or financial advisor, or legal representation by an attorney.
(3) For purposes of this section, professional representation by an athlete agent, financial advisor, or attorney must be provided by persons licensed in this state, as applicable.
Sec. 21. A legal settlement arising under this act must not permit noncompliance with this act.
Sec. 23. (1) By December 31, 2024, and by December 31, 2025, any nonprofit trade association that represents high schools in this state shall provide to the department of education for each of those years, respectively, a written summary of any congressional action on legislation on student athlete name, image, and likeness compensation.
(2) By June 30, 2026, any nonprofit trade association that represents high schools in this state shall provide to the department of education a written summary of the preparedness of the association's respective member high schools in implementing this act.
Sec. 25. (1) This act does not require a high school, athletic association, conference, or other group or organization with authority over high school athletics to identify, create, facilitate, negotiate, or otherwise enable opportunities for a student athlete of a high school to earn compensation for the student's use of the student's name, image, or likeness rights.
(2) This act does not establish or bestow the right of a student to use the name, trademarks, services marks, logos, symbols, or any other intellectual property, whether registered or not, of a high school, athletic association, conference, or other group or organization with authority over high school athletics, in furtherance of the student's opportunities to earn compensation for the student's use of the student's name, image, or likeness rights.
(3) This act does not limit the right of a high school or athletic association to establish and enforce any of the following:
(a) Academic standards, requirements, regulations, or obligations for its students.
(b) Team rules of conduct or other rules of conduct.
(c) Standards or policies regarding the governance or operation of or participation in high school varsity athletics.
(d) Disciplinary rules and standards generally applicable to all students of the high school.
(e) Rules relating to amateur status that do not conflict with this act.