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Bill > HF628


IA HF628

IA HF628
A bill for an act relating to compensation and name, image, and likeness rights of student athletes at postsecondary educational institutions, providing remedies, and including applicability provisions.


summary

Introduced
02/28/2025
In Committee
02/28/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill relates to compensation and name, image, and likeness rights of student athletes at postsecondary educational institutions. The bill defines a “postsecondary educational institution” as an institution of higher education governed by the state board of regents, a community college, or a private postsecondary educational institution in this state. The bill prohibits a postsecondary educational institution from enforcing any rule, requirement, standard, or other limitation of an athletic association or athletic conference that prevents a student athlete of that institution from fully participating in intercollegiate athletics without penalty or from earning compensation as a result of the use of the student athlete’s name, image, likeness rights, or athletic reputation. The bill provides that a student athlete’s financial aid eligibility shall not be affected by the student athlete earning compensation from the use of the student athlete’s name, image, or likeness rights, or athletic reputation. The bill prohibits a postsecondary educational institution from interfering with or preventing a student athlete from fully participating in intercollegiate athletics or obtaining professional representation without penalty in relation to contracts or legal matters relating to earning compensation as a result of the use of the student athlete’s name, image, likeness rights, or athletic reputation. The bill provides requirements for such professional representation. The bill provides that financial aid from a postsecondary educational institution in which a student athlete is enrolled shall not be considered compensation for use of the athlete’s name, image, and likeness rights, or athletic reputation. The bill provides limitations on a student athlete entering into an apparel, equipment, or beverage contract providing compensation to the athlete for use of the student athlete’s name, image, likeness rights, or athletic reputation. The bill authorizes a postsecondary educational institution or any officer, director, or employee of such institution to identify, create, facilitate, negotiate, support, enable, or otherwise assist with opportunities for a student athlete to earn compensation from a third party, as defined in the bill, for the use of the student athlete’s name, image, likeness rights, or athletic reputation with specified limitations. The bill requires a student athlete to disclose a contract for compensation for the use of a student athlete’s name, image, likeness rights, or athletic reputation, or for professional representation, to the student athlete’s postsecondary educational institution in a manner prescribed by the institution before the contract is executed, and before any compensation is provided to the student athlete in advance of the contract. The bill prohibits a postsecondary educational institution or any officer, director, or employee of such institution from compensating a student athlete, prospective student athlete, or the family thereof for the use of the student athlete or prospective student athlete’s name, image, likeness rights, or athletic reputation, unless otherwise permitted by institutional policy and a collegiate athletics association of which the institution is a member. The bill requires a postsecondary educational institution or a third party to develop and adopt a process for granting to a student athlete, or to a third party for use with a student athlete, a license to use such institution’s or third party’s unique identifiers, such as a seal, logo, or emblem, when earning or attempting to earn compensation from the use of the student athlete’s name, image, likeness rights, or athletic reputation consistent with the institution’s or third party’s policies regarding licensing of its unique identifiers. The bill provides additional requirements for the use of unique identifiers. The bill provides that the terms of a contract of a postsecondary educational institution’s athletic program shall not prevent a student athlete from receiving compensation for using the student athlete’s name, image, likeness rights, or athletic reputation for a commercial purpose when the student athlete is not engaged in official mandatory team activities that are recorded in writing and can be made publicly available upon request. The bill provides that the terms of a contract detailing compensation to a student athlete at a public postsecondary educational institution for the use of the student athlete’s name, image, likeness rights, or athletic reputation shall be considered confidential records. The bill also addresses privacy of such contracts at private postsecondary educational institutions. The bill provides limitations on the conditions that can be placed on compensation to a student athlete for the use of the student athlete’s name, image, likeness rights, or athletic reputation and specifies that a nonprofit entity can provide such compensation. The bill establishes rights of an institutional marketing associate, as defined in the bill, and rights of a student receiving compensation from an institutional marketing associate. The bill requires a postsecondary educational institution to offer educational workshops with specified content to student athletes in certain circumstances. The bill prohibits an athletic association, athletic conference, or any other organization with authority over varsity intercollegiate athletics from engaging in specified activities relating to a student athlete’s name, image, likeness rights, or athletic reputation. The bill authorizes a student athlete to bring a civil action against third parties that violate the provisions of the bill or that interfere with the student athlete’s earning or attempting to earn compensation from the use of such student athlete’s name, image, likeness rights, or athletic reputation for injunctive relief and actual damages. The bill authorizes and provides limitations on compensation of a high school student who competes on an interscholastic athletic team, which must involve an athletic letter of intent or other written agreement to enroll in a postsecondary educational institution. The bill provides that a postsecondary educational institution’s employees shall not be liable for any damages to a student athlete’s ability to earn compensation for the use of the student athlete’s name, image, or likeness resulting from decisions or actions routinely taken in the course of intercollegiate athletics. A provision of a legal settlement permitting noncompliance with the bill is void and unenforceable. The bill shall not be construed to qualify a student athlete as an employee of a postsecondary educational institution or to affect the rights of student athletes under Tit. IX of the Education Amendments of 1972. The bill applies to agreements or contracts entered into, modified, or renewed on or after the effective date of the bill. Such agreements or contracts include but are not limited to the national letter of intent, an athlete’s financial aid agreement, commercial contracts in the athlete group licensing market, and athletic conference or athletic association rules or bylaws.

AI Summary

This bill establishes comprehensive regulations for student-athletes' name, image, and likeness (NIL) rights at postsecondary educational institutions in Iowa. The legislation allows student-athletes to earn compensation from third parties using their name, image, and likeness without penalty, while protecting their financial aid and athletic eligibility. Key provisions include prohibiting educational institutions from interfering with athletes' ability to earn money, requiring disclosure of compensation contracts, and establishing guidelines for professional representation. The bill permits institutional marketing associates and nonprofit organizations to compensate athletes, and mandates that institutions offer educational workshops on financial literacy and life skills. Institutions are restricted from directly compensating athletes but can help them identify NIL opportunities. The bill also extends limited NIL rights to high school athletes who have signed letters of intent to attend college. Importantly, the legislation clarifies that student-athletes are not employees of their institutions and does not affect their Title IX rights. Athletes are granted the ability to bring civil actions against parties who interfere with their NIL earnings, and the law applies to agreements entered into or modified after its effective date. The comprehensive nature of the bill aims to provide student-athletes with more economic opportunities while maintaining educational and athletic integrity.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Tabled until future meeting. (on 03/05/2025)

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