KRS § 164.6947 — KY Code / Title XIII / Chapter 164 / Section 164.6947
164.6947 Governing board of postsecondary educational institution may adopt policy regulating name, image, and likeness agreements -- Review by institution of proposed agreements -- Liability of employees for damages to student-athlete's ability to earn compensation -- Workshop in financial literacy and life skills -- Programs to provide agreement resources -- Disclosure of information relating to agreements
Status: in_force

164.6947 Governing board of postsecondary educational institution may adopt

policy regulating name, image, and likeness agreements -- Review by

institution of proposed agreements -- Liability of employees for damages to

student-athlete's ability to earn compensation -- Workshop in financial literacy

and life skills -- Programs to provide agreement resources -- Disclosure of

information relating to agreements.

(1) Due to the critical mission of postsecondary educational institutions and the

importance of integrity in an institution's participation in intercollegiate athletics,

the governing board of an institution may adopt a policy governing the name,

image, and likeness agreements of the institution's student-athletes. Any restrictions

included in the policy shall be reasonable and shall not be an undue burden on the

student-athlete's ability to earn compensation through NIL agreements. Reasonable

restrictions shall be in writing and provided to all student-athletes. The institution's

policy shall ensure the equitable enforcement of restrictions. Reasonable restrictions

that an institution may choose to impose include but are not limited to:

(a) Prohibiting a student-athlete from entering into an NIL agreement for

products or services that are reasonably considered to conflict with the

mission of the institution, in the same manner as any other student would be

prohibited;

(b) Forbidding or establishing the conditions for the institution's student-athletes'

use of the institution's intellectual property, such as trademarks, trade dress,

and copyrights, in NIL agreement activities. These conditions may include

preferential conditions for activities involving the institution's partner entities;

(c) Prohibiting a student-athlete from entering into any NIL agreement that would

cause the athlete to miss an official team activity;

(d) Restricting a student-athlete's NIL agreement activities during official team

activities;

(e) Requiring a student-athlete to participate in official team activities pursuant to

the institutional agreement or other written team contract, which may include

the use of the name, image, or likeness of the athlete; and

(f) Imposing disciplinary action under team, institution, or athletic association

rules if a student-athlete violates the provisions of KRS 164.6941 to 164.6951

or violates a reasonable restriction.

(2) (a) A student-athlete who wishes to enter into an NIL agreement with a third

party shall submit the potential agreement to an official designated by the

institution in which the student is enrolled in a manner designated by the

institution. The institution shall have up to three (3) business days to review

the potential NIL agreement for conflicts with the provisions of KRS

164.6941 to 164.6951 or the institution's reasonable restrictions and provide

the student-athlete with a written notice of any conflicts identified by the

institution. The written notice from the institution may include

recommendations or identify concerns. After any conflicts are resolved, the

student-athlete may then enter into the agreement. Any subsequent proposed

modifications to the agreement shall be submitted for review in the same

manner.

(b) The governing board of the institution shall adopt a policy to carry out the

provisions of this subsection that:

1. Designates the official to receive NIL agreement submissions;

2. Establishes NIL agreement review procedures;

3. Provides student-athletes with a process to appeal conflict

determinations; and

4. Ensures review of appeals in a timely manner.

(3) An institution's employees, including athletics coaching staff, or an affiliated

corporation's employees, shall not be liable for any damages to a student-athlete's

ability to earn compensation through an NIL agreement with a third party resulting

from decisions and actions routinely taken in the course of intercollegiate athletics.

However, nothing in this subsection shall protect employees from acts of gross

negligence, or wanton, willful, malicious, or intentional misconduct.

(4) An institution shall provide the institution's student-athletes with a financial literacy

and life skills education workshop for a minimum of five (5) hours at the beginning

of the athlete's first and third academic years. The education shall, at a minimum,

include information concerning financial aid, debt management, saving and

budgeting best practices, time management, available academic resources, and the

skills necessary for success as a student-athlete. The workshop shall also provide

social media and brand management education. The workshop shall not include any

marketing, advertising, or referral for, or solicitation by, providers of financial,

marketing, branding, or other NIL agreement products or services.

(5) An institution's governing board may establish a program to provide NIL agreement

resources and ongoing support to the institution's student-athletes. The mission and

the extent of the program shall be established by the governing board and may

include:

(a) Providing impartial analysis of potential NIL agreements;

(b) Referring third parties soliciting potential NIL agreements to student-athletes

or their athlete agents; and

(c) Maintaining educational resources on name, image, and likeness for student-

athlete use.

(6) An institution's governing board may establish a program to provide NIL agreement

resources as it relates to student-athletes to the general public and potential third-

party licensees.

(7) For the purposes of the Kentucky Open Records Act, KRS 61.870 to 61.884, a

student-athlete's institutional agreement or an NIL agreement submitted pursuant to

subsection (2) of this section to a public postsecondary institution and the

information obtained from the agreement shall be considered as containing

information of a personal nature where the public disclosure thereof would

constitute a clearly unwarranted invasion of personal privacy under KRS 61.878

and not subject to disclosure.