TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING
SECTION 59-158-10, RELATING TO DEFINITIONS CONCERNING INTERCOLLEGIATE 
ATHLETES
'
COMPENSATION FOR NAME, IMAGE, OR LIKENESS, SO AS TO REVISE SEVERAL DEFINITIONS;
BY AMENDING SECTION 59-158-20, RELATING TO THE AUTHORIZATION OF COMPENSATION
FOR USE OF AN INTERCOLLEGIATE ATHLETE'S NAME, IMAGE, OR LIKENESS, SO AS TO
DELETE EXISTING LANGUAGE AND PROVIDE INSTITUTIONS OF HIGHER LEARNING AND
CERTAIN AGENTS OF THE INSTITUTIONS MAY ENGAGE IN CERTAIN ACTIONS THAT MAY
ENABLE INTERCOLLEGIATE ATHLETEs TO EARN COMPENSATION FOR USE OF THE NAME,
IMAGE, OR LIKENESS OF THE ATHLETE, AND TO PROVIDE THE INSTITUTIONS ALSO MAY
PERMIT INTERCOLLEGIATE ATHLETES TO USE TRADEMARKS AND FACILITIES OF THE
INSTITUTION, AMONG OTHER THINGS; BY AMENDING SECTION 59-158-30, RELATING TO THE
AFFECTS OF NAME, IMAGE, AND LIKENESS COMPENSATION ON GRANT-IN-AID OR ATHLETIC ELIGIBILITY,
SO AS TO DELETE EXISTING LANGUAGE AND PROVIDE NAME, IMAGE, OR LIKENESS
CONTRACTS MAY NOT EXTEND BEYOND THE INTERCOLLEGIATE ATHLETE'S ELIGIBILITY TO
PARTICIPATE IN AN INTERCOLLEGIATE ATHLETICS PROGRAM AT AN INSTITUTION OF HIGHER
LEARNING; BY AMENDING SECTION 59-158-40, RELATING TO ALLOWED AND PROHIBITED
ACTIONS CONCERNING INTERCOLLEGIATE ATHLETEs NAME, IMAGE, AND LIKENESS-RELATED
MATTERS, SO AS TO DELETE EXISTING LANGUAGE AND PROVIDE LIMITATIONS ON LIABILITY
FOR INSTITUTION OF HIGHER LEARNING EMPLOYEES FOR DAMAGES RESULTING FROM CERTAIN
ROUTINE DECISIONS MADE IN INTERCOLLEGIATE ATHLETICS, AND TO PROHIBIT CERTAIN
CONDUCT BY ATHLETIC ASSOCIATIONS, ATHLETIC CONFERENCES, OR OTHER GROUPS WITH
AUTHORITY OVER INTERCOLLEGIATE ATHLETIC PROGRAMS AT PUBLIC INSTITUTIONS OF
HIGHER LEARNING; BY AMENDING SECTION 59-158-50, RELATING TO GOOD ACADEMIC
STANDING REQUIRED FOR PARTICIPATION IN NAME, IMAGE, AND LICENSE ACTIVITIES, SO
AS TO DELETE EXISTING PROVISIONS AND PROVIDE CERTAIN MATTERS CONCERNING NAME,
IMAGE, AND LICENSING AGREEMENTS MAY NOT BE CONSIDERED PUBLIC RECORDS SUBJECT TO
AN EXCEPTION AND MAY NOT BE DISCLOSED TO CERTAIN ENTITIES; BY AMENDING SECTION
59-158-60, RELATING TO DISCLOSURE OF NAME, IMAGE, OR LIKENESS CONTRACTS AND
THIRD-PARTY ADMINISTRATORS, SO AS TO DELETE EXISTING LANGUAGE AND PROVIDE FOR
THE RESOLUTION OF CONFLICTS BETWEEN CERTAIN PROVISIONS OF THIS ACT AND
PROVISIONS IN THE UNIFORM ATHLETE AGENTS ACT OF 2018, AND TO PROVIDE ATHLETE
AGENTS SHALL COMPLY WITH CERTAIN FEDERAL REQUIREMENTS; BY AMENDING SECTION
59-102-20, RELATING TO DEFINITIONS IN THE UNIFORM ATHLETE AGENTS ACT OF 2018,
SO AS TO REVISE THE DEFINITION OF "ATHLETE AGENT"; BY AMENDING SECTION
59-102-100, RELATING TO AGENCY CONTRACTS, SO AS TO REMOVE A PROVISION
CONCERNING COMPENSATION; BY REPEALING SECTION 59-158-70 RELATING TO DISCLOSURES
AND LIMITATIONS IN NAME, IMAGE, OR LIKENESS CONTRACTS AND REVOCATION PERIODS
FOR SUCH CONTRACTS; AND BY REPEALING SECTION 59-158-80 RELATING TO GOVERNING
LAW AND FEDERAL COMPLIANCE CONTRACTS.
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION 1. Section 59-158-10 of the S.C. Code is amended to read:
Section
59-158-10. For the purposes of this chapter:
(1)
"Athlete agent" means a person who is registered with the Department of
Consumer Affairs pursuant to Section 59-102-60 or Section 59-102-80. If an
athlete agent is an attorney, then he must also be a member in good standing of
a state bar association.
(2) "Athletic booster"
means a person or entity that has participated in or has been a member of an
organization promoting an institution of higher learning's intercollegiate
athletics program.
(3)(2) "Compensation" means any remuneration, in cash or in
kind, whether provided at the time or at any subsequent date, to a student an intercollegiate athlete.
"Compensation" does not mean any grant, scholarship, fellowship, tuition
assistance, or other form of financial aid provided to a student for pursuing a
post-secondary education.
(4)(3) "Institution of higher learning" means any
post-secondary educational institution, including a technical or comprehensive
educational institution.
(5)(4) "Intercollegiate athlete" means an individual who has graduated from high school that engages in, is
eligible to engage in, or may be eligible in the future to engage in an
intercollegiate sport. If an individual is permanently ineligible to
participate in a particular intercollegiate sport, then the individual is not
an intercollegiate athlete for the purposes of that sport.
(6)(5) "Intercollegiate sport" means a sport played at the
collegiate level for which eligibility requirements for participation by an
intercollegiate athlete are established by a national association that promotes
or regulates collegiate athletics.
(7)(6) "Name, image, or likeness activities", "name, image,
or likeness contract", "NIL activities", or "NIL contract" means an agreement
in which an intercollegiate athlete participating in intercollegiate sports
authorizes a person to use his name, image, or likeness and, in return,
receives consideration. This term shall include, but is not limited to,
endorsement contracts.
(8) "Recruit or solicit"
means an attempt to influence the choice of an athlete agent by an
intercollegiate athlete or, if the intercollegiate athlete is a minor, a parent
or guardian of the intercollegiate athlete. "Recruit or solicit" does not mean
giving advice on the selection of a particular athlete agent in a family,
coaching, or social situation unless the individual giving the advice does so
because of the receipt or anticipated receipt of an economic benefit, directly
or indirectly, from the athlete agent.
(9) "Team contract" means
any agreement between an intercollegiate athlete and an institution of higher
learning that could impact the intercollegiate athlete's eligibility to
participate in an intercollegiate sport, including, but not limited to, scholarship
agreements or participation agreements.
(10)(7) "Third party" means, with respect to an
intercollegiate athlete, any entity other than the institution of higher
learning in which the intercollegiate athlete is enrolled.
(11) "Third-party
endorsement" means an intercollegiate athlete's public support for, approval
of, or recommendation of a product or service, including, but not limited to,
social media influencer marketing opportunities; personal appearances; and
digital content creation, distribution, and promotion of athletic-related
business activities. "Third-party endorsement" does not mean the use of an
intercollegiate athlete's name, image, or likeness in news reports, commentary,
entertainment, or advertisements that is incidental to such uses; the
broadcast of a sports contest; the rebroadcast of a sports contest; a brief
video or audio clip of a sports contest; or anything that violates a
registered or licensed copyright or trademark.
SECTION 2. Section 59-158-20 of the S.C. Code is amended to read:
Section
59-158-20. (A)(1) An intercollegiate athlete at an institution of higher
learning may earn compensation for the use of his name, image, or likeness as
provided for in this chapter.
(2) Compensation earned
by an intercollegiate athlete for the use of his name, image, or likeness must
represent a genuine payment for the use of his name, image, or likeness,
independent of, rather than as a payment for, his athletic participation or performance.
Compensation may only be provided by a third party.
(3) Compensation may not
be provided in exchange for an intercollegiate athlete's athletic performance
or attendance at a particular institution of higher learning and may only be
provided by a third party unaffiliated with the intercollegiate athlete's institution
of higher learning.
(4) A name, image, or
likeness contract in conflict with the provisions of this chapter is voidable.
(B) An intercollegiate
athlete may receive compensation only for the use of his name, image, or
likeness for third-party endorsements, the intercollegiate athlete's
non-athletic work product, or activities related to a business that the
intercollegiate athlete owns.
(C) An institution of
higher learning or its athletic conference cannot directly or indirectly create
or facilitate compensation opportunities for the use of an intercollegiate
athlete's name, image, or likeness.
(D) An institution of
higher learning may not use or allow boosters to directly or indirectly create
or facilitate compensation opportunities for the use of an intercollegiate
athlete's name, image, or likeness as a recruiting inducement or as a means of
paying for athletics participation.
(E) An intercollegiate
athlete at an institution of higher learning may not use the institution of
higher learning's facilities, uniforms provided by the institution of higher
learning, or the institution of higher learning's intellectual property, including,
but not limited to, the unauthorized use of a registered trademark or product
protected by copyright, in connection with the use of the intercollegiate
athlete's name, image, or likeness activities.
(F) Activities related to
an intercollegiate athlete's use of his name, image, or likeness for
compensation are prohibited from taking place during the intercollegiate
athlete's participation in academic, athletic, or team-mandated activities as
defined by the institution of higher learning.
(G) Activities related to
an intercollegiate athlete's use of his name, image, or likeness for
compensation cannot be contingent on a prospective intercollegiate athlete's
enrollment at a particular institution of higher learning or its athletic
conference and cannot otherwise be used as an inducement by an institution of
higher learning or a booster.
(H) An institution of
higher learning; an entity with a purpose that includes supporting or
benefiting an institution of higher learning or its athletic programs; or an
officer, director, or employee of an institution of higher learning or such an
entity may not directly or indirectly compensate a current or prospective
intercollegiate athlete for the use of the intercollegiate athlete's name,
image, or likeness.
(I) A grant in aid,
including the cost of attendance, awarded to an intercollegiate athlete by an
institution of higher learning is not compensation for the purposes of this
chapter and may not be revoked or reduced as a result of an intercollegiate
athlete earning compensation or obtaining professional representation under
this chapter. Name, image, or likeness compensation shall not be used to limit
athletic grant in aid but may be used in the calculation for need-based
financial aid available to the general student population.
(A) An institution of higher learning
or any officer, trustee, director, or employee, may directly or through an
agreement with a third party, identify, create, solicit, facilitate, and
otherwise enable opportunities for a currently enrolled intercollegiate athlete
to earn compensation for the use of the intercollegiate athlete's name, image,
or likeness. An institution of higher learning may grant permission to
intercollegiate athletes to use its trademarks and facilities.
(B) An institution of higher learning
may not receive compensation or fees directly from an intercollegiate athlete
related to the facilitation of NIL.
SECTION 3. Section 59-158-30 of the S.C. Code is amended to read:
Section
59-158-30. Earning compensation in compliance with the
provisions contained in Section 59-158-40 does not affect an intercollegiate
athlete's grant in aid or athletic eligibility.A
name, image, or likeness contract with an intercollegiate athlete may not
extend beyond their eligibility to participate in an intercollegiate athletics
program at an institution of higher learning.
SECTION 4. Section 59-158-40 of the S.C. Code is amended to read:
Section
59-158-40. (A) Notwithstanding athletic conference or collegiate athletic
association rules, bylaws, regulations, and policies to the contrary, an
institution of higher learning is prohibited from adopting or maintaining a
contract, rule, regulation, standard, or other requirement that prevents or
unduly restricts an intercollegiate athlete from:
(1) earning compensation
for the use of his name, image, or likeness; or
(2) obtaining an athlete
agent for the purpose of securing compensation for the use of his name, image,
or likeness.
(B)(1) An institution of
higher learning may prohibit an intercollegiate athlete from using his name,
image, or likeness for compensation if the proposed use of his name, image, or
likeness conflicts with:
(a) existing
institutional sponsorship agreements or other contracts; or
(b) institutional
values as defined by the institution of higher learning.
(2) An intercollegiate
athlete may not earn compensation for the use of his name, image, or likeness
for the endorsement of tobacco, alcohol, illegal substances or activities,
banned athletic substances, or gambling including, but not limited to, sports betting.
(C) An institution of
higher learning must disclose known prohibitions for the use of an
intercollegiate athlete's name, image, or likeness at the time that an
intercollegiate athlete is admitted to the institution of higher learning or
when the intercollegiate athlete signs a financial aid agreement or team
contract.(A) An institution of higher learning or any officers, trustees,
directors employees, including athletics coaching staff, may not be liable for
any damages to an intercollegiate athlete's ability to earn compensation for
the use of the intercollegiate athlete's name, image, or likeness resulting
from decisions or actions routinely taken in the course of intercollegiate
athletics.
(B) An athletic association, an
athletic conference, or any other group or organization with authority over an
intercollegiate athletic program at an institution of higher learning to which
this chapter applies may not:
(1) enforce a contract term, a rule, a
regulation, a standard, a bylaw, guidance, or any other requirement that
prohibits the institution from participating in intercollegiate sports or
otherwise penalizes the institution, the institution's intercollegiate athletic
program, or intercollegiate athletes for performing, participating in, or
allowing an activity required or authorized by this chapter; or
(2) prevent an institution of higher
learning from establishing agreements with a third-party entity to act on the
institutions behalf to identify, facilitate, enable, or support an
intercollegiate athlete's name, image, or likeness activities.
SECTION 5. Section 59-158-50 of the S.C. Code is amended to read:
Section
59-158-50. An intercollegiate athlete participating in name, image, or
likeness activities must abide by his institution of higher learning and its
athletic department's policies with respect to missed class time and good
academic standing. Good academic standing includes meeting both grade point
average and course hour requirements. An intercollegiate athlete must also
meet all academic requirements of the athletic association and conference that
his institution of higher learning is a member of in order to participate in
name, image, or likeness activities.
(A) If an institution of higher
learning collects, retains, or maintains copies or summaries of the terms of an
intercollegiate athlete's name, image, or likeness contract or proposed
contract detailing compensation to the intercollegiate athlete for the use of
the intercollegiate athlete's name, image, or likeness or athletic reputation,
the documentation may not be considered a public record under Section
30-4-20(C) unless they are a party.
(B) An institution of higher learning
may not be compelled to disclose the information to a collegiate athletic
association, athletic conference, or other group or organization with
authority over an intercollegiate athletic program at an institution of higher
learning.
SECTION 6. Section 59-158-60 of the S.C. Code is amended to read:
Section
59-158-60. (A) A prospective intercollegiate athlete who enters into a name,
image, or likeness contract shall disclose the name, image, or likeness
contract to his institution of higher learning and its athletic department
prior to enrollment or signing a financial aid agreement with the institution
of higher learning or a team contract.
(B) A current
intercollegiate athlete must disclose the terms of a name, image, or likeness
contract prior to signing the name, image, or likeness contract, in a manner
designated by the institution of higher learning.
(C) The disclosures
required by this section must:
(1) describe the
proposed use of the intercollegiate athlete's name, image, or likeness,
compensation arrangements, the name of the athlete agent, and a list of all
parties to the name, image, or likeness contract; and
(2) be made in the
manner designated by the institution of higher learning.
(D) An institution of
higher learning may fund, through its athletic department, an independent,
third-party administrator to support education, monitoring, disclosures, and
reporting concerning name, image, or likeness activities authorized pursuant to
this chapter. A third-party administrator cannot be a registered athlete
agent. An athlete agent is prohibited from having any affiliation with a
third-party administrator.(A) If there is a conflict
between the provisions of this chapter and those of Chapter 102, then the
provisions of this chapter govern. An athlete agent representing an
intercollegiate athlete in a transaction authorized pursuant to this chapter
also shall comply with all provisions contained in Chapter 102 that do not
conflict with the provisions of this chapter.
(B) An athlete agent shall comply with
the federal "Sports Agent Responsibility and Trust Act", 15 U.S.C. Sections
7801-7807.
SECTION 7. Section 59-102-20(2)(b) of the S.C. Code is amended to
read:
(b) does not include an individual
who:
(i) acts solely on behalf of a
professional sports team or organization; or
(ii) is a licensed, registered, or
certified professional and offers or provides services to a student athlete
customarily provided by members of the profession, unless the individual:
(A) also recruits or solicits the
athlete to enter into an agency contract;
(B) also, for compensation, procures
employment or offers, promises, attempts, or negotiates to obtain employment
for the athlete as a professional athlete or member of a professional sports
team or organization; or
(C) receives consideration for
providing the services calculated using a different method than for an
individual who is not a student athlete; or
(iii) is an institution of higher
learning, an employee employed by an institution of higher learning, or a
student athlete's family member acting under Chapter 158, Title 59.
SECTION 8. Section 59-102-100(H) of the S.C. Code is amended to
read:
(H) An agency contract for name, image, or likeness activities,
as defined in Chapter 158, Title 59, may not provide for athlete agent
compensation that exceeds ten percent of the name, image, or likeness contract.
SECTION 9. Sections
59-158-70 and 59-158-80 of the S.C. Code are repealed.
SECTION 10. This act takes effect upon
approval by the Governor.
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