Gov. Whitmer Signs Bills Allowing Collegiate Athletes To Receive Compensation

LANSING, Mich. (CBS DETROIT) - Gov. Gretchen Whitmer signed bills Wednesday allowing student athletes to use their own name, image, likeness, and reputation for financial compensation.

This marks the first time in Michigan history that collegiate athletes will have the opportunity to financially benefit from the countless hours they commit to their sport while attending school. 

The bills will take effect on December 31, 2022, except for a reporting requirement in Section 9 which has been given immediate effect.

Here's a closer look at the bills Whitmer signed into law:

House Bill 5217 prohibits post-secondary educational institutions from enforcing rules that prohibit student athletes from profiting from promotional deals. Students may earn compensation for their name, image, or likeness, and could not be prevented from playing intercollegiate sports or receiving scholarships because of doing so. The bill was sponsored by Representative Brandt Iden (R-Kalamazoo).  

House Bill 5218 repeals a section of the Penal Code which prohibits athletic agents from inducing students into contracts before their eligibility for college athletics expires. The bill also repeals a section of the Revised Judicature Act which creates civil liability for interfering with the "prospective advantage" given by an institution of higher education by virtue of its relationship with the student athlete, by promising an improper gift or service to the athlete, if that gift results in injury to the school. The bill was sponsored by Representative Joe Tate (D-Detroit). 

 The bills allow players from any sport in all divisions to use agents to earn money from their own image, name, or likeness. However, students cannot enter into an apparel contract that conflicts with the apparel contracts of their school, and must disclose contracts to their school prior to signing. The bills do not establish the right for students to use trademarked names, symbols, intellectual property, and logos of schools, associations, or conferences.