To outline the requirements and procedures to allow intercollegiate student athletes within the Florida College System (FCS) to earn compensation for the use of their name, image or likeness. The 24 FCS institutions that ....

 

DEPARTMENT OF EDUCATION

State Board of Education

RULE NO.:RULE TITLE:

6A-14.0582Florida College System Intercollegiate Student-Athlete Compensation and Rights

PURPOSE AND EFFECT: To outline the requirements and procedures to allow intercollegiate student athletes within the Florida College System (FCS) to earn compensation for the use of their name, image or likeness. The 24 FCS institutions that currently offer intercollegiate athletic programs are members of the National Junior College Athletic Association (NJCAA). Student athletes under the NJCAA are considered amateur athletes. NJCAA Bylaw Article V, Section 4 prohibits amateur athletes from earning compensation based on athletic skill or participation. In 2020, Senate Bill 646 created section 1006.74, Florida Statutes (F.S.), which grants FCS intercollegiate athletes the ability to earn compensation for the use of their name, image or likeness. The effect is clarifying the roles and responsibilities of intercollegiate student athletes and FCS institutions as it relates to compensation, specifying the requirements of financial literacy and life skills workshops, and establishing annual reporting requirements.

SUMMARY: Section 1006.74, F.S., outlines the requirements related to intercollegiate student athlete compensation for Florida postsecondary students. This proposed rule specifies the requirements for Florida College System student athletes and institutions.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: While there may be additional time and effort for FCS institutions to comply, particularly with the workshop requirement and adoption of Board of Trustees rules, the contracts for compensation for an athlete’s NIL are between the athlete and a third party, not the institution. In addition, there is no fee, and this rule implements a law that enables an athlete to earn additional compensation, rather than losing compensation. This rule is not expected to have any adverse impact on economic growth, business competitiveness or any other factors listed in s. 120.541(2)(a), F.S., and will not require legislative ratification. No increase in regulatory costs are anticipated as a result of the rule changes.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 1001.02(2)(n), 1006.74(3), F.S.

LAW IMPLEMENTED: 1006.74, F.S.

A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:

DATE AND TIME: June 10, 2021, 9:00 a.m.

PLACE: Florida State College at Jacksonville, Advanced Technology Center, 401 West State Street, Room T140/141, Jacksonville, FL 32202.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Shanna Autry, Ed.D., Director of Student Affairs, Division of Florida Colleges, [e-mail] or [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

6A-14.0582 Florida College System Intercollegiate Student-Athlete Compensation and Rights. 

Each student athlete participating in an intercollegiate athletics program at a Florida College System institution may earn compensation for the use of their name, image, or likeness (NIL) as provided in section 1006.74, F.S.

(1) Student athlete compensation and rights. Intercollegiate student athletes at Florida College System institutions: 

(a) May earn compensation for the use of their NIL if the compensation is provided by a third party unaffiliated with the athlete’s postsecondary educational institution. Compensation may not extend beyond the students’ participation in the intercollegiate athletics program; 

(b) Who are under the age of 18 must have any contract for compensation for the use of their NIL approved pursuant to sections 743.08 and 743.09, F.S.;

(c) Who enter into a contract for compensation for their NIL must adhere to section 1006.74(2), F.S.; 

(d) May not enter into a contract for compensation for their NIL if the contract conflicts with a clause found in the student athlete’s team contract; and 

(e) Must notify their postsecondary educational institution of a contract for compensation for their NIL, in a manner designated by the postsecondary educational institution. 

(2) Florida College System institution responsibilities. Each Florida College System institution with intercollegiate athletics programs: 

(a) May not prevent or restrict an intercollegiate athlete from earning compensation for their NIL. This compensation may not affect the athlete’s grant-in-aid or athletic eligibility; 

(b) May not compensate or cause compensation to be directed to any prospective or current intercollegiate athlete for the use of their NIL. This requirement extends to organizations that support the postsecondary institution, its athletics programs, officers, directors, or employees of said organizations; 

(c) May not prevent or restrict an intercollegiate athlete from obtaining professional representation for the purpose of securing compensation for the use of their NIL. Athletic agents must be licensed pursuant to Part IX Chapter 468 of F.S., and attorneys must be in good standing with the Florida Bar;

(d) Shall, in the process of recruiting student athletes and signing letters of intent, agreements, and contracts, post or make available the requirements as specified in section 1006.74, F.S.; and

(e) Shall adopt policies or procedures regarding student athlete compensation. Minimally, the policies or procedures must include the process student athletes must follow to notify the institution of a contract for compensation for their NIL. 

(3) Financial literacy and life skills workshops. Each Florida College System institution with intercollegiate athletics programs shall conduct financial literacy and life skills workshops for a minimum of five (5) hours at the beginning of student athletes’ first and third academic years pursuant to section 1006.74(2), F.S. All student athletes including those who are not receiving compensation for their NIL are required to complete the workshops. Institutions may utilize new or existing curriculum incorporating the required topics, and the instruction may be delivered through student life skills and related courses, orientation sessions, learning management systems or other technology solutions, workshops, or other appropriate means. 

Rulemaking Authority 1001.02(2)(n). 1006.74, FS. Law Implemented 1006.74, FS. History‒New 

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Shanna Autry, Ed.D., Director of Student Affairs, Division of Florida Colleges, Department of Education.

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Richard Corcoran, Commissioner, Department of Education.

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: May 11, 2021

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: April 5, 2021