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Protecting Athletes, Schools, and Sports Act of 2023
Introduced Jul 25, 2023 · Last action Jul 25, 2023 — Read twice and referred to the Committee on Commerce, Science, and Transportation.
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Summary
This legislation is called the Protecting Athletes, Schools, and Sports Act of 2023. It is being reviewed by a committee.
Full bill text
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2495 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 2495
To protect student athletes, ensure fair competition and compensation,
and preserve intercollegiate athletics, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 25, 2023
Mr. Manchin (for himself and Mr. Tuberville) introduced the following
bill; which was read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
A BILL
To protect student athletes, ensure fair competition and compensation,
and preserve intercollegiate athletics, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting Athletes, Schools, and
Sports Act of 2023''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Agent.--The term ``agent'' means an athlete agent (as
defined in section 2 of the Sports Agent Responsibility and
Trust Act (15 U.S.C. 7801)).
(2) Athletic department.--The term ``athletic department''
means a department at an institution of higher education that
sponsors or conducts 1 or more varsity intercollegiate
athletics programs in which student athletes enrolled at the
institution of higher education compete in athletic contests
against student athletes enrolled at another institution of
higher education.
(3) Booster.--The term ``booster'' means any individual or
entity that has--
(A) provided a donation--
(i) to an institution of higher education
to obtain season tickets for any sport; or
(ii) to support the athletics program at an
institution of higher education;
(B) participated in or has been a member of an
organization promoting in any way the varsity
intercollegiate athletics programs of an institution of
higher education; or
(C) made a financial contribution to the athletic
department, athletics foundation, collective, or
booster organization affiliated with an institution of
higher education.
(4) Compensation.--The term ``compensation''--
(A) means any monetary or in-kind payment to a
student athlete; and
(B) does not include--
(i) grant-in-aid;
(ii) funds from any student assistance fund
or academic enhancement fund affiliated with an
institution of higher education that are
available and distributed without regard to
athletic ability for the purposes of assisting
student athletes in meeting their financial
needs, improving the welfare of student
athletes, providing academic support for
student athletes, or recognizing the academic
achievement of student athletes, including by
providing--
(I) postgraduate scholarships;
(II) school supplies;
(III) benefits, such as travel
expenses for student athletes,
clothing, and magazine subscriptions;
or
(IV) payments incidental to
athletics participation, such as the
National Collegiate Athletic
Association cost-of-attendance stipend;
(iii) awards for participation or
achievement in intercollegiate athletics, such
as qualifying for a bowl game, or payments for
performance in the Olympics;
(iv) awards for future educational
opportunities;
(v) premiums paid on behalf of a student
athlete for loss-of-value insurance or
disability insurance; or
(vi) travel funds for members of a student
athlete's immediate family to attend sporting
events of the student athlete.
(5) Conference.--The term ``conference'' means an
organization that--
(A) has as members 2 or more institutions of higher
education;
(B) arranges or conducts season-long
intercollegiate athletic events to determine, among its
members, a champion in a particular intercollegiate
sport; and
(C) sets rules for varsity intercollegiate sports
competition among its members.
(6) Grant-in-aid.--The term ``grant-in-aid'' means--
(A) tuition, room, board, books, fees, and personal
expenses paid or provided by an institution of higher
education up to the full cost of attendance;
(B) Federal Pell Grants and other State and Federal
grants unrelated to, and not awarded with respect to,
participation in varsity intercollegiate sports
competition;
(C) health insurance and the costs of health care
wholly or partly self-funded by the National Collegiate
Athletic Association, a conference, or an institution
of higher education;
(D) disability and loss of value insurance that is
wholly or partly self-funded by the National Collegiate
Athletic Association, a conference, or an institution
of higher education; and
(E) career counseling or job placement services
available to all students at an institution of higher
education.
(7) Immediate family.--With respect to a student athlete,
the term ``immediate family'' means the 1 or more parents,
guardians, siblings, aunts, uncles, and grandparents of the
student athlete.
(8) Institution of higher education.--The term
``institution of higher education'' means an institution of
higher education as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001).
(9) Name, image, or likeness.--The term ``name, image, or
likeness'' means a symbol, word, given name, surname, nickname,
design, or image (such as a photograph or video) that readily
identifies a student athlete.
(10) Name, image, or likeness contract.--The term ``name,
image, or likeness contract'' means an agreement under which a
student athlete receives compensation from a third party for
the use of the publicity received by, or the reputation,
following, or fame of, the student athlete.
(11) National collegiate athletic association.--The term
``National Collegiate Athletic Association'' means the National
Collegiate Athletic Association that functions as an authority
for intercollegiate athletics in the United States (or a
successor organization).
(12) Prospective student athlete.--The term ``prospective
student athlete'' means an individual who--
(A) is attending, and has not yet graduated from,
an elementary school or a secondary school (as such
terms are defined in section 8101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801)); and
(B) participates in a sports program.
(13) Student athlete.--The term ``student athlete'' means
an individual who engages or is eligible to engage in
intercollegiate athletics.
(14) Third party.--The term ``third party'' means--
(A) a person, other than an institution of higher
education or a student athlete, that--
(i) offers, solicits, or enters into a
name, image, or likeness contract; or
(ii) offers or provides name, image, or
likeness compensation;
(B) an entity that is affiliated with an
institution of higher education, yet operates
independently of the institution of higher education,
that generates funding to support opportunities for
student athletes to enter into name, image, or likeness
contracts; or
(C) an entity that is, refers to itself as, or is
colloquially referred to as, a collective.
(15) Transfer portal.--The term ``transfer portal'' means a
process managed by the National Collegiate Athletic Association
that facilitates the transfer of student athletes from one
institution of higher education to another institution of
higher education for the purpose of engaging, or being able to
engage in the future, in intercollegiate athletics.
(16) Varsity intercollegiate athletics program.--The term
``varsity intercollegiate athletics program'' means a sport
played at the intercollegiate level, administered by an
athletic department, for which eligibility requirements for
participation by student athletes are established by the
National Collegiate Athletic Association or a conference.
(17) Varsity intercollegiate sports competition.--The term
``varsity intercollegiate sports competition'' means a
competition--
(A) between or among student athletes; and
(B) involving 2 or more varsity intercollegiate
athletics programs sponsored by different institutions
of higher education.
SEC. 3. THIRD PARTIES.
(a) In General.--A third party may only promote an intercollegiate
athletics program, assist with recruiting, or assist with providing
benefits to student athletes or the family members of student athletes
if the third party is formally associated with an institution of higher
education through a written contract pursuant to the normal policies of
the institution of higher education.
(b) Inducements.--
(1) In general.--An individual, booster, or third party may
not offer or provide a prospective student athlete or a student
athlete with any compensation or benefit that is intended to
induce the prospective student athlete or student athlete to
enroll in or transfer to a particular institution of higher
education.
(2) Rule of construction.--Nothing in this subsection may
be construed to prohibit an individual, booster, or third party
from offering or providing a bona fide grant that may be used
by a prospective student athlete or student athlete solely for
the payment of tuition, room and board, or other fees charged
by an institution of higher education for enrollment in an
academic program offered by the institution of higher
education.
(c) Equal Representation.--A third party associated with an
institution of higher education shall offer equal representation of,
and provide equal services to, all student athletes in all
intercollegiate athletics programs at the institution of higher
education.
SEC. 4. TRANSFER PORTAL.
(a) Role of National Collegiate Athletic Association.--The National
Collegiate Athletic Association shall set forth rules relating to the
transfer portal, including with respect to the 1 or more periods during
which a student athlete may formally notify the institution of higher
education in which the student athlete is enrolled of his or her intent
to transfer to another institution of higher education.
(b) Effect of Transfer.--
(1) In general.--A student athlete enrolled at an
institution of higher education who transfers to another
institution of higher education shall be ineligible to
participate in any athletic competition sponsored by the
National Collegiate Athletic Association during the academic
year, beginning at the start of the fall semester and ending at
the end of an institution of higher education's final summer
session, in which the student athlete entered the transfer
portal.
(2) Waiver for qualifying events or circumstances.--
(A) In general.--The National Collegiate Athletic
Association may waive the application of paragraph (1)
in the case of a student athlete--
(i) who has completed 3 years of athletics
eligibility;
(ii) whose family member has died or has
been diagnosed with a terminal illness;
(iii) whose primary position coach or head
coach has voluntarily or involuntarily left the
institution of higher education in which the
student athlete was enrolled before the date on
which the student athlete entered the transfer
portal; or
(iv) who meets any other criteria, as
determined by the National Collegiate Athletic
Association.
(B) Criteria.--
(i) In general.--The National Collegiate
Athletic Association may grant a waiver under
subparagraph (A) only if, not later than 30
days after the date on which a qualifying event
or circumstance described in that subparagraph
occurs, the student athlete concerned provides
to the athletic department of his or her
institution of higher education written
documentation of the event or circumstance.
(ii) Verification.--The National Collegiate
Athletic Association shall establish procedures
for verifying the validity of the documentation
provided under clause (i).
(c) Certain Other Rules and Regulations.--This section shall
supersede any National Collegiate Athletic Association rule or
regulation related to transfer eligibility that is in effect on the
date of the enactment of this Act.
SEC. 5. VALID NAME, IMAGE, OR LIKENESS CONTRACT.
(a) In General.--A student athlete may only enter into a name,
image, or likeness contract that--
(1) is in writing and signed by each party;
(2) includes the names of each party;
(3) outlines the scope of work to be performed by the
student athlete;
(4) states the timeline for the performance of such work;
(5) states the compensation to be provided to the student
athlete;
(6) describes the duration of the contract;
(7) conforms with the format of a standard contract
template developed by the Federal Trade Commission;
(8) takes effect after the date on which the student
athlete enrolls in an institution of higher education and
begins participation in intercollegiate athletics; and
(9) is consistent with this Act.
(b) Duration.--A student athlete may only enter into a name, image,
or likeness contract if--
(1) the student athlete is enrolled at an institution of
higher education during an academic term for which classes have
begun; and
(2) the duration of the contract does not extend beyond the
period during which the student athlete is enrolled at an
institution of higher education.
(c) Student Athlete Participation in Intercollegiate Athletics.--
(1) In general.--Except as provided in paragraph (2), the
National Collegiate Athletic Association or an institution of
higher education may not prohibit a student athlete from
participating in intercollegiate athletics based on the student
athlete having entered into a name, image, or likeness
contract.
(2) Limitations on name, image, or likeness contracts.--
(A) Contracts with certain persons and entities.--
Notwithstanding paragraph (1), the National Collegiate
Athletic Association or an institution of higher
education may prohibit a student athlete who is
enrolled at the institution from participating in
intercollegiate athletics if the student athlete has
entered into a name, image, or likeness contract with
any person or entity related to or associated with the
development, promotion, production, distribution,
wholesaling, or retailing of--
(i) adult entertainment, sexually
suggestive products, or sex-oriented products,
services, conduct, imagery, or inferences;
(ii) alcohol products;
(iii) a casino or gambling, including
sports betting and betting in connection with a
video game or online game, or on a mobile
device;
(iv) tobacco, marijuana, or electronic
smoking products and devices;
(v) pharmaceuticals;
(vi) any dangerous or controlled substance;
(vii) drug paraphernalia;
(viii) weapons, including firearms and
ammunition; or
(ix) any product, substance, or method that
is prohibited in competition by the National
Collegiate Athletic Association, a conference,
or any other organization governing varsity
intercollegiate sports competition.
(B) Apparel.--The National Collegiate Athletic
Association or an institution of higher education may
prohibit a student athlete from--
(i) wearing any item of clothing, shoes, or
other gear with the insignia of any entity
while wearing any athletic gear or uniform
provided by an institution of higher education
or otherwise competing in a varsity
intercollegiate sports competition or athletic
event sponsored by the institution of higher
education at which the student athlete is
enrolled; and
(ii) using, without the express permission
of the institution of higher education at which
the student athlete is enrolled, the insignia,
logo, or other intellectual property of the
institution of higher education for any
purpose.
(3) Institutions of higher education.--An institution of
higher education may not enter into an advertising or
promotional contract with a person or entity described in
paragraph (2)(A) if the institution of higher education has
prohibited an enrolled student athlete from participating in
intercollegiate athletics for having entered into a name,
image, or likeness contract with such person or entity.
(d) Prohibition.--An institution of higher education shall not--
(1) prohibit a student athlete from entering into a name,
image, or likeness contract that complies with this Act,
including through a rule, standard, or policy that affects the
eligibility of the student to receive athletically related
student aid (as defined in section 485(e)(8) of the Higher
Education Act of 1965 (20 U.S.C. 1092(e))); or
(2) provide or arrange compensation for the student athlete
for the use of the name, image, or likeness of the student or
for participation in intercollegiate athletics.
SEC. 6. TRANSPARENCY.
(a) Student Athletes.--Not later than 30 days after entering into a
name, image, or likeness contract, a student athlete shall disclose to
the institution of higher education at which the student athlete is
enrolled--
(1) the existence of the contract;
(2) the names of the parties to the contract;
(3) the scope of work to be performed by the student
athlete under the contract and the corresponding timeline for
such work;
(4) the compensation to be provided to the student athlete;
and
(5) the duration of the contract.
(b) Agents.--An agent representing a student athlete with respect
to a name, image, or likeness contract shall--
(1) register with the Federal Trade Commission; and
(2) disclose to the Federal Trade Commission--
(A) the fee and compensation structure of the
agent;
(B) the scope of work to be performed by the agent;
and
(C) the duration of the contract.
(c) Third Parties.--Each third party shall--
(1) register with the Federal Trade Commission; and
(2) disclose to the Federal Trade Commission and to each
institution of higher education that is a party to a written
contract with the third party--
(A) the existence of the contract;
(B) the names of the parties to the contract;
(C) the scope of work to be performed by the
student athlete under the contract and the
corresponding timeline for such work;
(D) the compensation to be provided to the student
athlete; and
(E) the duration of the contract.
(d) Individuals and Boosters.--Any individual or booster seeking to
enter into a name, image, or likeness contract shall--
(1) register with the Federal Trade Commission; and
(2) not later than 7 days before the date on which a name,
image, or likeness contract is executed, disclose to the
Federal Trade Commission--
(A) the existence of the contract;
(B) the names of the parties to the contract;
(C) the scope of work to be performed by the
student athlete under the contract and the
corresponding timeline for such work;
(D) the compensation to be provided to the student
athlete; and
(E) the duration of the contract.
(e) Publication of Name, Image, or Likeness Data.--Not later than
180 days after the date of the enactment of this Act, the Federal Trade
Commission shall establish a publicly accessible internet website on
which the Federal Trade Commission shall publish and frequently update
anonymized and aggregated name, image, or likeness data.
(f) Rule of Construction.--The disclosure of a name, image, or
likeness contract to an institution of higher education or the National
Collegiate Athletic Association may not be construed as an approval of
the name, image, or likeness contract by the institution of higher
education or the National Collegiate Athletic Association with respect
to the legal requirements or the fairness of the economic terms of the
name, image, or likeness contract.
SEC. 7. ADDITIONAL PROTECTIONS FOR STUDENT ATHLETES.
(a) Educational Resources.--
(1) National collegiate athletic association.--The National
Collegiate Athletic Association or its designee shall develop
and make available to student athletes educational resources
and information on the rights of student athletes with respect
to name, image, or likeness contracts and related legal and
regulatory matters.
(2) Institutions of higher education.--Each institution of
higher education shall develop and make available to student
athletes educational resources and information consistent with
the educational resources and information developed under
paragraph (1).
(b) Financial Literacy.--The National Collegiate Athletic
Association or its designee shall develop, maintain, and conduct
financial literacy and life skills programming for student athletes,
which shall include--
(1) information relating to financial aid and debt
management;
(2) recommended model budgets for student athletes based on
the estimated cost of attendance for the academic year and any
grant-in-aid received by the student athlete; and
(3) information relating to the potential tax implications
of entering into a name, image, or likeness contract.
(c) Travel and Medical Expenses.--
(1) Trust fund.--
(A) In general.--The organizers of any revenue-
generating collegiate-level tournament or playoff shall
deposit not less than 1 percent of annual gross
revenues from such events into a trust fund (referred
to in this subsection as the ``Fund''), to be managed
in a manner determined by the National Collegiate
Athletic Association, for the purpose of covering the
costs of--
(i) in the case of a student athlete who is
a dependent, travel to sporting events for
members of the immediate family of the student
athlete; and
(ii) in the case of a former student
athlete, all out-of-pocket medical expenses of
such athlete that are not covered under
paragraph (2)(B), until the later of--
(I) the date on which such athlete
attains the age of 28 years; or
(II) 8 years after the date on
which the eligibility of such athlete
for intercollegiate athletics expired.
(B) Eligibility of former student athletes.--To be
eligible to receive amounts from the Fund under
subparagraph (A)(ii), a former student athlete shall--
(i) not later than 7 days after the date on
which the last regular season of the sport of
such athlete ends, complete an exit physical
examination with the institution of higher
education; and
(ii) graduate from the institution of
higher education at which such was enrolled
during such last regular season.
(2) Medical expenses.--
(A) Responsibility of institution of higher
education to provide health care coverage for student
athletes.--An institution of higher education shall
provide or procure health care coverage for each
student athlete enrolled at the institution of higher
education during any academic year in which the student
athlete participates in intercollegiate athletics.
(B) Payment of out-of-pocket medical expenses for
student athletes and former student athletes.--
(i) Institutions reporting less than
$20,000,000.--An institution of higher
education that reports less than $20,000,000 in
total annual athletics revenue to the
Department of Education during an academic year
shall be, during the enrollment of a student
athlete at the institution of higher education,
financially responsible for all out-of-pocket
medical expenses of the student athlete's
health care coverage for any injury or
communicable disease incurred or acquired while
the student athlete was participating in an
intercollegiate athletic event or a varsity
intercollegiate athletic competition.
(ii) Institutions reporting $20,000,000 or
more.--An institution of higher education that
reports not less than $20,000,000 in total
annual athletics revenue to the Department of
Education during an academic year shall be,
during the enrollment of a student athlete at
the institution of higher education and the 2-
year period beginning on the day after the last
varsity intercollegiate sports competition of
the student athlete, financially responsible
for all out-of-pocket medical expenses of the
student athlete's health care coverage for any
injury or communicable disease that was
incurred or acquired while the student athlete
was participating in an intercollegiate
athletic event or a varsity intercollegiate
athletic competition.
(iii) Institutions reporting $50,000,000 or
more.--An institution of higher education that
reports not less than $50,000,000 in total
annual athletics revenue to the Department of
Education during an academic year shall be,
during the enrollment of a student athlete at
the institution of higher education and the 4-
year period beginning on the day after the last
varsity intercollegiate sports competition of
the student athlete, financially responsible
for all out-of-pocket medical expenses of the
student athlete's health care coverage for any
injury or communicable disease incurred or
acquired while the student athlete was
participating in an intercollegiate athletic
event or varsity intercollegiate sports
competition.
(C) Second opinions.--
(i) Student athletes.--During the
enrollment of a student athlete at an
institution of higher education, an institution
of higher education shall be financially
responsible for the expense of obtaining for
the student athlete medical second opinions
independent from the institution of higher
education.
(ii) Former student athletes.--
(I) In general.--In the case of an
institution of higher education
described in clause (ii) or (iii) of
subparagraph (B), continuing through
the 2-year period described in clause
(ii) or the 4-year period described in
clause (iii), respectively, the
institution of higher education shall
be financially responsible for the
expense of obtaining, for former
student athletes, medical second
opinions independent from the
institution of higher education.
(II) Institutions reporting less
than $20,000,000.--In the case of an
institution of higher education
described in clause (i), during any
period not exceeding 4 years beginning
on the day after the last varsity
intercollegiate sports competition of a
student athlete that is not covered
under subclause (I), the Fund shall be
financially responsible for the expense
of obtaining, for former student
athletes, medical second opinions
independent from the institution of
higher education.
(D) Exception.--The responsibilities of an
institution of higher education under subparagraphs (A)
through (C) shall not apply to an institution of higher
education in the case of a student athlete who
transfers out of the institution of higher education to
continue participation in intercollegiate athletics
elsewhere.
(d) Grant-in-Aid Protection.--
(1) In general.--Except as otherwise provided in this Act,
an institution of higher education may not revoke, reduce, or
impose a condition on the grant-in-aid of a student athlete
based on the student athlete having entered into a permissible
name, image, or likeness contract or having been injured.
(2) Original grant-in-aid commitment.--
(A) In general.--Subject to subparagraph (B), an
institution of higher education shall honor the
original grant-in-aid commitment made by the
institution of higher education to a student athlete.
(B) Effect of transfer.--In the case of a student
athlete who transfers from one institution of higher
education to another institution of higher education,
subparagraph (A)--
(i) shall not apply to the former
institution of higher education of the student
athlete; and
(ii) shall apply to the new institution of
higher education to which the student athlete
transfers.
(C) Former student athletes.--Grant-in-aid provided
to a former student athlete--
(i) may not count against athlete
scholarship caps; and
(ii) may be provided through the general
financial aid budget of an institution of
higher education.
(3) Rule of construction.--Nothing in this subsection may
be construed to prohibit an institution of higher education
from revoking the grant-in-aid of a student athlete or former
student athlete who does not remain in good standing in
accordance with the standards or code of conduct of the
institution of higher education.
SEC. 8. ENFORCEMENT.
(a) Unfair or Deceptive Acts or Practices.--A violation under
section 3 or 6 of this Act shall be treated as an unfair or deceptive
act or practice under section 5(a)(1) of the Federal Trade Commission
Act (15 U.S.C. 45(a)(1)).
(b) Powers of the Federal Trade Commission.--
(1) In general.--The Federal Trade Commission shall enforce
section 3 and 6 in the same manner, by the same means, and with
the same jurisdiction, powers, and duties as though all
applicable terms and provisions of the Federal Trade Commission
Act (15 U.S.C. 41 et seq.) were incorporated into and made part
of this Act.
(2) Privileges and immunities.--Any person who violates
this Act shall be subject to the penalties and entitled to the
privileges and immunities provided in the Federal Trade
Commission Act (15 U.S.C. et seq.).
(3) Rules of construction.--
(A) No power to prescribe rules.--Nothing in this
Act or any other provision of Federal law may be
construed to authorize or permit the Federal Trade
Commission to prescribe or promulgate any rule or
regulation with respect to any act, practice, or
conduct under by this Act.
(B) Authority preserved.--Nothing in this section
shall be construed to limit the authority of the
Federal Trade Commission under any other provision of
law.
(c) Prohibiting Unfair and Deceptive Practices by Third Parties.--
The Sports Agent Responsibility and Trust Act (15 U.S.C. 7801 et seq.)
is amended--
(1) in section 2 (15 U.S.C. 7801)--
(A) by redesignating paragraphs (4), (5), (6), (7),
(8), and (9) as paragraphs (5), (6), (8), (9), (10),
and (11), respectively;
(B) by inserting after paragraph (3) the following
new paragraph:
``(4) Booster.--The term `booster' means any individual or
entity that has--
``(A) provided a donation--
``(i) to an institution of higher education
to obtain season tickets for any sport; or
``(ii) to support the athletics program at
an institution of higher education;
``(B) participated in or has been a member of an
organization promoting in any way the varsity
intercollegiate athletics programs of an institution of
higher education; or
``(C) made a financial contribution to the athletic
department, athletics foundation, collective, or
booster organization affiliated with an institution of
higher education.'';
(C) by inserting after paragraph (6), as
redesignated, the following:
``(7) Institution of higher education.--The term
`institution of higher education' means an institution of
higher education as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001).''; and
(D) by adding at the end the following:
``(12) Third party.--The term `third party' means--
``(A) a person, other than an institution of higher
education or a student athlete, that--
``(i) offers, solicits, or enters into a
name, image, or likeness contract; or
``(ii) offers or provides name, image, or
likeness compensation;
``(B) an entity that is affiliated with an
institution of higher education, yet operates
independently of the institution of higher education,
that generates funding to support opportunities for
student athletes to enter into name, image, or likeness
contracts; or
``(C) an entity that is, refers to itself as, or is
colloquially referred to as, a collective.'';
(2) by inserting after section 3 (15 U.S.C. 7802) the
following:
``SEC. 3A. REGULATION OF BOOSTERS AND THIRD PARTIES.
``It is unlawful for a booster or a third party to directly or
indirectly provide or offer to provide any funds or thing of value as
an inducement to a student athlete to enroll in, transfer from, or
remain at a specific institution of higher education or group of
institutions of higher education.''; and
(3) in section 5(a)(1) (15 U.S.C. 7804(a)(1)), by inserting
``or by the engagement of any booster or third party in a
practice that violates section 3A of this Act'' after ``section
3 of this Act''.
(d) Eligibility To Compete as a Student Athlete After Entering Into
a Name, Image, or Likeness Contract.--Section 3(b)(3) of the Sports
Agent Responsibility and Trust Act (15 U.S.C. 7802(b)(3)) is amended by
striking ``Warning to Student Athlete:'' and inserting ``Notice to
Student Athlete: If you agree orally or in writing to be represented by
an agent now or in the future, or enter into a name, image, or likeness
contract, you, the agent by whom you are agreeing to be represented,
and any other booster or third party must notify the institution of
higher education in which you are enrolled that you have entered into
an agency or name, image, or likeness contract. Warning to Student
Athlete:''.
SEC. 9. NATIONAL COLLEGIATE ATHLETIC ASSOCIATION.
(a) Duties.--The National Collegiate Athletic Association or its
designee shall--
(1) establish--
(A) rules to govern and provide oversight of
institutions of higher education, including the duties
of institutions of higher education under section 7;
and
(B) a process by which such rules may be enforced;
(2) establish and maintain processes--
(A) by which third parties shall register with the
National Collegiate Athletic Association; and
(B) for regulating third parties;
(3) establish and maintain a mechanism for certifying and
regulating third parties that provide compensation to student
athletes under name, image, or likeness contracts;
(4) develop and maintain--
(A) a list of permissible activities for registered
third parties;
(B) a uniform standard name, image, or likeness
contract for use in all name, image, or likeness
activities; and
(C) the educational resources described in
subsection (a) of section 7 and the financial literacy
curriculum and programming described in subsection (b)
of that section; and
(5) establish a dispute resolution process for student
athletes who assert a violation of this Act, under which a
student athlete may select arbitration.
(b) Authority.--
(1) Investigations and audits.--The National Collegiate
Athletic Association shall--
(A) conduct investigations and audits to assess
compliance with this Act; and
(B) not less frequently than annually, submit to
the Committee on Commerce, Science, and Transportation
of the Senate and the Committee on Energy and Commerce
of the House of Representatives an annual report with
respect to such compliance.
(2) Penalties.--In the case of a violation of this Act or a
potential violation of any other Federal law by an agent, third
party, institution of higher education, conference, or student
athlete, the National Collegiate Athletic Association may--
(A) revoke licenses to participate in name, image,
or likeness activities;
(B) with respect to a violation of this Act, refer
the matter to the Federal Trade Commission as an unfair
and deceptive act or practice for enforcement; and
(C) with respect to a violation of any other
Federal law, refer the matter to the appropriate
Federal agency for enforcement.
(3) Limitation.--The National Collegiate Athletic
Association shall not have the authority to approve name,
image, or likeness contracts for legality or appropriateness.
(c) Noncompliance.--In the case of a failure by the National
Collegiate Athletic Association to carry out the duties under this
section, the Federal Trade Commission may commence an investigation of
such failure and impose penalties, including--
(1) a penalty for an unfair and deceptive act or practice;
and
(2) revocation of tax-exempt status.
(d) Report.--Not later than 1 year after the date of the enactment
of this Act, and annually thereafter, the Federal Trade Commission
shall submit to the Committee on Commerce, Science, and Transportation
of the Senate and the Committee on Energy and Commerce of the House of
Representatives a report that summarizes any investigation or
enforcement action brought by the Federal Trade Commission or the
National Collegiate Athletic Association under this Act during the
preceding year, including the number of complaints filed with the
Federal Trade Commission under this Act.
(e) Disclosure.--The disclosure of a name, image, or likeness
contract to the National Collegiate Athletic Association may not be
construed as an approval by the National Collegiate Athletic
Association of the contract with respect to the legal requirements of
the contract.
SEC. 10. LIMITATION OF LIABILITY.
No agreement, understanding, rule, or bylaw adopted by a
conference, the National Collegiate Athletic Association, or a
combination of 2 or more institutions of higher education acting in
concert that is authorized, consistent with, or reasonably contemplated
by any provision of this Act shall be invalid or a basis for liability
under or pursuant to any Federal or State law upon enactment of this
Act.
SEC. 11. RELATIONSHIP TO STATE LAW.
(a) State Preemption.--No State or political subdivision of a State
may adopt, maintain, enforce, or continue in effect any law,
regulation, rule, requirement, or standard that--
(1) conflicts with the provisions of this Act;
(2) limits or restricts the rights of student athletes, the
National Collegiate Athletic Association, conferences, or
institutions of higher education under this Act; or
(3) relates to the rights of student athletes to receive
compensation directly or indirectly from any institution of
higher education, affiliate of an institution of higher
education, third party, conference, or the National Collegiate
Athletic Association.
(b) Nondiscrimination of Student Athletes.--No State or political
subdivision of a State may establish or continue in effect any law,
regulation, rule, requirement, or standard that is inconsistent with
title IX of the Higher Education Act of 1972 (20 U.S.C. 1681 et seq.),
including any law, regulation, rule, requirement, or standard that
provides for the payment of student athletes participating in a varsity
intercollegiate athletics program based on a share of annual revenue
generated by that particular sports program.
SEC. 12. RULES OF CONSTRUCTION.
(a) Tax Provisions.--Nothing in this Act or the amendments made by
this Act shall affect the treatment of qualified scholarships under
section 117 of the Internal Revenue Code of 1986.
(b) Classification of Student Athletes.--Nothing in this Act or the
amendments made by this Act shall affect the employment status of a
student athlete with respect to a conference or an institution of
higher education.
<all>Official legislative text sourced from the public record (cached on CivicsHQ).
Official source
View the original bill, actions, and full legislative record on Congress.gov.
Status
In Committee
- 1Introduced
- 2Committee
- 3Floor
- 4Passed
- 5Signed
Timeline reflects current normalized status only. Full action history is not yet stored in the API.
Sponsors
- Sen. Manchin, Joe, III [D-WV]DSenateWV
Cosponsors
Votes
Voting records are not yet available for this bill.