Compensation.

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A. Except as otherwise provided in the Student Athlete Name, Image and Likeness Rights Act, a student athlete may earn compensation commensurate with market value for the use of the name, image or likeness of the student athlete while enrolled at a postsecondary institution without penalty or resulting limitation on participation. Compensation for the use of a student athlete's name, image or likeness shall not affect the student athlete's eligibility for athletic grant-in-aid.

B. A student athlete shall not earn compensation in exchange for his or her athletic performance or participation in intercollegiate athletics or sports competition. Compensation shall not be provided as an inducement for athletic performance or to attend or enroll at a particular institution.

C. A postsecondary institution, an entity whose purpose includes supporting or benefitting the postsecondary institution or its athletic programs or an officer, director or employee of such postsecondary institution or entity shall not provide professional representation, compensate or cause compensation to be directed to a current or prospective student athlete for his or her name, image or likeness. A scholarship from a postsecondary institution in which a student athlete is enrolled that provides him or her with the cost of attendance, as defined by an applicable collegiate athletic association, at the institution shall not be considered compensation for purposes of this Act.

D. A collegiate athletic association shall not, and shall not authorize its member institutions to:

1. Prevent a student athlete at a postsecondary institution from earning compensation from the use of his or her name, image or likeness;

2. Prevent a postsecondary institution from participation in intercollegiate athletics because a student athlete in attendance has previously earned or intends to earn compensation for the use of his or her name, image or likeness;

3. Provide a prospective student athlete with compensation in relation to the use of his or her name, image or likeness;

4. Penalize a student athlete or prevent a student athlete from full participation in an intercollegiate sport because he or she obtains professional representation in relation to a contract or other legal matter; or

5. Allow compensation earned by a student athlete for the use of his or her name, image or likeness or athletic reputation to affect the amount, duration or renewal of or eligibility for any athletic grant-in-aid or other institutional scholarship; provided, however, compensation earned by a student athlete for the use of his or her name, image or likeness or athletic reputation may be used for the calculation of income for determining eligibility for need-based financial aid.

Added by Laws 2021, c. 559, § 22, emerg. eff. May 28, 2021.


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