S4439

An Act concerning student-athletes, supplementing Title 18A of the New Jersey Statutes, and repealing P.L.2020, c.83.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in this act, "related entity" includes, but is not limited to, an auxiliary services corporation, an alumni association, a foundation related to a four-year institution of higher education, or any subsidiary or affiliated entity of a four-year institution of higher education.

2. a. A four-year institution of higher education shall not prohibit or prevent a student-athlete who participates in intercollegiate athletics from earning compensation as a result of the use of the student-athlete’s name, image, or likeness.

b. A four-year institution of higher education or any related entity of an institution may enter into a contract with a student-athlete to directly compensate the student-athlete for use of the student-athlete’s name, image, or likeness.

c. Notwithstanding the provisions of subsections a. and b. of this section to the contrary, a student-athlete participating in intercollegiate athletics who is under 21 years of age shall be prohibited from earning compensation as a result of the use of the student-athlete’s name, image, or likeness in connection with any person, company, or organization related to or associated with the development, production, distribution, wholesaling, or retailing of: alcohol products; tobacco and electronic smoking products and devices; and cannabis products.

3. a. A four-year institution of higher education shall not prohibit or prevent a student-athlete participating in intercollegiate athletics from obtaining professional representation in relation to contracts or legal matters including, but not limited to, representation provided by athlete agents or legal representation provided by attorneys.

b. Legal representation obtained by student-athletes shall be by licensed attorneys. Athlete agents representing student-athletes shall comply with the federal "Sports Agent Responsibility and Trust Act" (15 U.S.C. s.7801 et seq.) in their relationship with student-athletes. Licensed attorneys and athlete agents shall act in a fiduciary capacity when representing a student-athlete.

4. Notwithstanding any other law, rule, or regulation to the contrary, any contract a student-athlete enters into providing compensation to the student-athlete for use of the student-athlete’s name, image, or likeness pursuant to section 2 of this act shall not be subject to public disclosure pursuant to the provisions of P.L.1963, c.73 (C.47:1A-1 et seq.), commonly known as the open public records act.

5. a. An athletic association, conference with member institutions that offer athletic scholarships, or other group or organization with authority over intercollegiate athletics including, but not limited to, the National Collegiate Athletic Association, shall not:

(1) prohibit or prevent a four-year institution of higher education from becoming a member of the association, conference, or organization, or participating in intercollegiate athletics sponsored by the association, conference, or organization, as a consequence of any student-athlete earning compensation for the use of the student-athlete’s name, image, or likeness or obtaining representation by an athlete agent or attorney in connection with issues related to name, image, or likeness;

(2) take any other adverse action against a four-year institution of higher education or any other related entity of an institution, for activity permitted pursuant to this act;

(3) penalize a four-year institution of higher education or student-athlete, or prevent a four-year institution of higher education or student-athlete from participating in intercollegiate athletics, because an individual or related entity whose purpose includes supporting or benefiting the institution or student-athletes violates its rules or regulations concerning name, image, or likeness;

(4) prevent a four-year institution of higher education from compensating a student-athlete for the use of the student-athlete’s name, image, or likeness; or

(5) prevent a four-year institution of higher education or any other related entity of an institution from identifying, creating, negotiating, facilitating, supporting, engaging with, assisting with, or otherwise enabling a name, image, or likeness opportunity for a student-athlete.

b. A four-year institution of higher education or any other related entity of an institution that is subjected to any actual or threatened complaint, investigation, penalty, or other adverse action of an athletic association, conference, or other group or organization with authority over intercollegiate athletics including, but not limited to, the National Collegiate Athletic Association, for engaging in activities permitted pursuant to this act, may bring an action to recover actual damages and reasonable attorney fees and may seek injunctive relief and any other remedy available at law or in equity.

6. In each academic year, each four-year institution of higher education shall make available to all student-athletes participating in intercollegiate athletics at the institution programming or educational materials on name, image, or likeness. The programming or educational materials shall include, but not be limited to, financial literacy; brand management; life skills; and other programming on skills necessary for success as a student-athlete.

7. The provisions of this act shall only apply to four-year institutions of higher education that offer athletic scholarships.

8. P.L.2020, c.83 (C.18A:3B-86 through C.18A:3B-89) is repealed.

9. This act shall take effect immediately.

STATEMENT

This bill establishes protections for student-athletes and certain institutions of higher education concerning name, image, or likeness compensation and repeals the “New Jersey Fair Play Act.”

First, this bill provides that a four-year institution of higher education is not to prohibit or prevent a student-athlete who participates in intercollegiate athletics from earning compensation as a result of the use of the student-athlete’s name, image, or likeness. The bill permits a four-year institution of higher education or any related entity of the institution to enter into a contract with a student-athlete to directly compensate the student-athlete for use of the student-athlete’s name, image, or likeness. However, the bill prohibits a student-athlete participating in intercollegiate athletics who is under 21 years of age from earning compensation as a result of the use of the student-athlete’s name, image, or likeness if it is in connection with any person, company, or organization related to or associated with alcohol products; tobacco and electronic smoking products and devices; and cannabis products.

The bill provides that a four-year institution of higher education is not to prevent a student-athlete participating in intercollegiate athletics from obtaining professional representation in relation to contracts or legal matters, including representation provided by athlete agents or legal representation provided by attorneys. The bill clarifies that licensed attorneys and athlete-agents are required to act in a fiduciary capacity when providing representation to a student-athlete.

The bill clarifies that any contract a student-athlete enters into that provides compensation to the student-athlete for use of the student-athlete’s name, image, or likeness is not subject to public disclosure pursuant to the State’s open public records act.

The bill also regulates certain athletic associations, conferences, or other groups or organizations with authority over intercollegiate athletics, including the National Collegiate Athletic Association. Under the bill, these organizations cannot:

(1) prohibit or prevent a four-year institution of higher education from becoming a member of the organization or from participating in intercollegiate athletics as a consequence of any student-athlete earning compensation for the use of the student-athlete’s name, image, or likeness or obtaining representation by an athlete agent or attorney in connection with issues related to name, image, or likeness;

(2) take any other adverse action against a four-year institution of higher education or any other related entity of an institution, for activity permitted by the bill;

(3) penalize a four-year institution of higher education or a student-athlete, or prevent them from participating in intercollegiate athletics, due to a violation of the organization’s rules or regulations concerning name, image, or likeness;

(4) prevent a four-year institution of higher education from compensating a student-athlete for the use of the student-athlete’s name, image, or likeness; or

(5) prevent a four-year institution of higher education or any related entity of an institution from identifying, creating, negotiating, facilitating, supporting, engaging with, assisting with, or otherwise enabling a name, image, or likeness opportunity for a student-athlete.

The bill provides that a four-year institution of higher education or any related entity of an institution, that is subjected to any actual or threatened complaint, investigation, penalty, or other adverse action of any organization with authority over intercollegiate athletics for engaging in activities permitted pursuant to the bill, may bring an action to recover actual damages and reasonable attorney fees and may seek injunctive relief and any other remedy available at law or in equity.

In each academic year, a four-year institution of higher education that offers academic scholarships is required to make available to all student-athletes participating in intercollegiate athletics at the institution name, image, or likeness programing or educational materials. The programing and educational materials are to provide students with information including, financial literacy; brand management; life skills; and any other programming on skills necessary for success as a student-athlete.

NCAA Division I and Division II institutions are permitted to offer athletic scholarships. The bill applies to four-year institutions of higher education that offer athletic scholarships, including Division I and Division II institutions.

Finally, the bill repeals the “New Jersey Fair Play Act,” which was enacted in 2020 and is first applicable in the academic year beginning in September of 2025. It is the sponsor’s intent to strengthen New Jersey’s name, image, or likeness law to reflect changes made at the national level since its original enactment in 2020.