Section 18A:3B-87 - Regulations for institution of higher education relative to student-athletesa. A four-year institution of higher education shall not: (1) uphold any rule, requirement, standard, or other limitation that prevents a student of that institution participating in intercollegiate athletics from earning compensation as a result of the use of the student's name, image, or likeness. Except as otherwise provided pursuant to subsection b. of this section, earning compensation from the use of a student's name, image, or likeness shall not affect the student's institutional scholarship eligibility. An institutional scholarship shall not be considered compensation for the purposes of this act and a scholarship shall not be revoked as a result of a student earning compensation or obtaining professional representation;
(2) provide a prospective student-athlete with compensation in relation to the student-athlete's name, image, or likeness; or(3) prevent a student 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. Legal representation obtained by student-athletes shall be from attorneys licensed by the State. 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.
b. Notwithstanding the provisions of subsection a. of this section to the contrary, a student participating in intercollegiate athletics shall be prohibited from earning compensation as a result of the use of the student'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: adult entertainment products and services; alcohol products; casinos and gambling, including sports betting, the lottery, and betting in connection with video games, on-line games, and mobile devices; tobacco and electronic smoking products and devices; prescription pharmaceuticals; a controlled dangerous substance; and weapons, including firearms and ammunition. Earning compensation from the use of a student's name, image, or likeness in connection with products and services listed pursuant to this subsection shall result in the revocation of the student's institutional scholarship eligibility.
Added by L. 2020, c. 83,s. 2, eff. 9/14/2020.