Student Athlete Level Playing Field Act
This bill generally prohibits an institution of higher education or a covered athletic organization (e.g., an athletic association, a conference, or an organization with authority over intercollegiate athletics) from restricting the ability of a student athlete to enter into an endorsement or agency contract, with exceptions. It also provides for enforcement by the Federal Trade Commission, preempts state laws relating to endorsement or agency contracts, and establishes the Covered Athletic Organization Commission.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2841 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2841
To prohibit a covered athletic association and institution of higher
education from prohibiting a student athlete from participating in
intercollegiate athletics because such student athlete enters into an
endorsement contract, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 26, 2021
Mr. Gonzalez of Ohio (for himself, Mr. Cleaver, Mr. Rodney Davis of
Illinois, Mr. Gottheimer, Mr. Stivers, Mr. Allred, Mr. Hudson, and Ms.
Davids of Kansas) introduced the following bill; which was referred to
the Committee on Energy and Commerce, and in addition to the Committee
on Education and Labor, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To prohibit a covered athletic association and institution of higher
education from prohibiting a student athlete from participating in
intercollegiate athletics because such student athlete enters into an
endorsement contract, 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 ``Student Athlete Level Playing Field
Act''.
SEC. 2. CONTRACTS RELATING TO STUDENT ATHLETES AND COLLEGE AND
UNIVERSITY ATHLETIC PROGRAMS.
(a) Prohibition.--Subject to the exceptions in subsection (b), a
covered athletic organization or institution of higher education may
not prohibit a student athlete from participating in intercollegiate
athletics because such student athlete enters into an agency contract
or an endorsement contract or otherwise receives consideration for such
student athlete's name, image, or likeness.
(b) Exceptions for Endorsement Contracts.--A covered athletic
organization or institution of higher education may prohibit a student
athlete from entering into an endorsement contract with the following
categories of brands, companies, or types of contracts:
(1) A tobacco company or brand, including any vaping device
or e-cigarette or related product.
(2) Any alcohol company or brand.
(3) Any seller or dispensary of a controlled substance,
including marijuana.
(4) Any adult entertainment business.
(5) Any casino or entity whose primary business is
sponsoring or promotion of gambling activities.
(c) Permissible Prohibitions.--A student athlete may be prohibited
by the institution of higher education of the student athlete from
wearing any item of clothing or gear with the insignia of any entity
during any athletic competition or athletic-related university-
sponsored event.
(d) Resultant Prohibitions on Institutions of Higher Education From
Entering Into Certain Sponsorship and Endorsement Contracts.--
(1) From prohibitions on athletes.--If a covered athletic
organization or institution of higher education prohibits a
student athlete from entering into an endorsement contract
pursuant to subsection (b), such covered athletic organization
or institution of higher education may not enter into or
continue in any sponsorship or endorsement contract for itself
with the same category or categories of brands, companies, or
types of contracts described in paragraphs (1) through (5) of
such subsection.
(2) From prohibitions by a covered athletic organization.--
If a covered athletic organization prohibits a student athlete
from entering into a contract pursuant to subsection (b), any
institution of higher education that is a part of that covered
athletic organization may not enter into any sponsorship or
endorsement contract for itself with the same category or
categories of brands, companies, or types of contracts
described in paragraphs (1) through (5) of such subsection.
SEC. 3. ENFORCEMENT.
(a) Unfair or Deceptive Acts or Practices.--A violation of section
2 shall be treated as an unfair and deceptive act or practice in
violation of a regulation under section 18(a)(1)(B) of the Federal
Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or
deceptive acts or practices.
(b) Powers of the FTC.--The Federal Trade Commission shall enforce
this section 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. Any person that
violates this section shall be subject to the penalties and entitled to
the privileges and immunities provided in the Federal Trade Commission
Act (15 U.S.C. 41 et seq.). Nothing in this Act shall be construed to
limit the authority of the Federal Trade Commission under any other
provision of law.
SEC. 4. COVERED ATHLETIC ORGANIZATION COMMISSION.
(a) Establishment.--There is established the Covered Athletic
Organization Commission (in this section referred to as the
``Commission''), whose purpose shall be to--
(1) make recommendations to Congress and to each covered
athletic organization about the implementation of name, image,
and likeness rules;
(2) recommend to each covered athletic organization such a
process to certify or recognize credentialed athlete agents;
(3) make recommendations for the establishment of an
independent dispute resolution process, for any dispute arising
between a student athlete and a covered athletic organization
or institution of higher education; and
(4) make recommendations for additional categories of
endorsement contracts that are excepted under section 2(b).
(b) Membership.--The Commission shall consist of 13 members
appointed in accordance with subsection (c) from among or in accordance
with the following:
(1) Institutions of higher education, including athletic
directors and coaches.
(2) At least two individuals who are current or former
student athletes who advocate for the interest of student
athletes.
(3) Administrators of covered athletic organizations.
(4) Professionals with expertise in sports marketing,
contracting, and public relations.
(5) Individuals--
(A) with expertise in corporate governance; and
(B) who are not associated with any covered
athletic association or institution of higher
education.
(c) Appointment.--
(1) In general.--Not later than 60 days after the date of
enactment of this Act, members of the Commission shall be
appointed as follows:
(A) Three members appointed by the Speaker of the
House of Representatives.
(B) Three members appointed by the minority leader
of the House of Representatives.
(C) Three members appointed by the majority leader
of the Senate.
(D) Three members appointed by the minority leader
of the Senate.
(E) One member, who shall be the chair of the
Commission, selected by the members appointed under
subparagraphs (A) through (D) not later than 60 days
after the appointment of such members, and agreed upon
by no fewer than eight of such members. If eight such
members are unable to agree on an appointment under
this subparagraph within such 60 day period, the
Speaker of the House of Representatives shall make the
appointment under this subparagraph.
(2) Diversity.--To the extent practicable, the Speaker and
leaders making appointments under paragraph (1) shall
coordinate their appointments to ensure that the Commission
reflect diversity in gender, race, sport with which they are
associated, as applicable, and shall prioritize the appointment
of members unaffiliated with divisions or conferences of
applicable covered athletic organizations.
(d) Meetings and Quorum.--Meetings of the Commission shall be held
at the call of the chair appointed under subsection (c)(1)(E). A
meeting may only be held where there is a quorum of at least 7 members,
including not fewer than two members who are current or former student
athletes who advocate for the interest of student athletes.
(e) Report.--Not later than one, two, and three years,
respectively, after the Commission shall be constituted, it shall
submit to the Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate annual reports that include the
recommendations in paragraphs (1) through (4) of subsection (a). The
Commission shall also make such reports available to the public.
(f) Sunset.--The Commission shall terminate 60 days after
submitting the final report required under subsection (e).
SEC. 5. INSTITUTIONS OF HIGHER EDUCATION AND STUDENT ATHLETES WHO ENTER
INTO ENDORSEMENT CONTRACTS.
Section 487(a) of the Higher Education Act of 1965 (20 U.S.C.
1094(a)) is amended by adding at the end the following:
``(30) In the case of an institution that has a student
attending the institution who is an athlete and has entered
into an endorsement contract (as defined under section 2 of the
Sports Agent Responsibility and Trust Act (15 U.S.C. 7801)) or
an agency contract (as defined in section 9 of the Student
Athlete Level Playing Field Act), such institution will not--
``(A) prohibit such student from entering into such
an endorsement contract or an agency contract,
including through a rule, standard, or policy that
affects the eligibility of such student to receive
athletically related student aid (as defined in section
485(e) of the Higher Education Act of 1965 (20 U.S.C.
1092(e))); or
``(B) compensate such student for the name, image,
or likeness of such student.''.
SEC. 6. PROHIBITING UNFAIR AND DECEPTIVE PRACTICES AGAINST STUDENT
ATHLETES.
(a) Prohibiting Unfair and Deceptive Practices by Boosters.--The
Sports Agent Responsibility and Trust Act (15 U.S.C. 7801 et seq.) is
amended--
(1) in section 2--
(A) by redesignating paragraphs (4) through (9) as
paragraphs (5) through (10), respectively; and
(B) by inserting after paragraph (3) the following
new paragraph:
``(4) Booster.--The term `booster' means an individual
(other than an individual who is related to a student athlete)
or an organization, including a sponsor of an institution's
athletic program, that provides substantial financial
assistance or services to the athletic program of an
institution of higher education or that promotes a team or
athletic program of an institution of higher education for such
individual's or organization's own substantial financial
interest.'';
(2) by inserting after section 3 the following new section:
``SEC. 3A. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND PRACTICES IN
CONNECTION WITH CONTACT BETWEEN A BOOSTER AND A STUDENT
ATHLETE.
``It is unlawful for a booster to directly or indirectly provide or
offer to provide any funds or thing of value as an inducement for a
student athlete to enroll or remain at a specific institution or group
of institutions.''; and
(3) in section 5(a)(1), by inserting ``or by the engagement
of any booster in a practice that violates section 3A'' after
``section 3''.
(b) Eligibility To Compete as a Student Athlete After Entering Into
an Agency Contract.--Section 3(b)(3) of the Sports Agent Responsibility
and Trust Act (15 U.S.C. 7802(b)(3)) is amended in the quoted part by
inserting after ``boldface type stating:'' the following: ```Notice to
Student Athlete: If you agree orally or in writing to be represented by
an agent now or in the future, both you and the agent by whom you are
agreeing to be represented must notify the athletic director of the
educational institution at which you are enrolled, or other individual
responsible for athletic programs at such educational institution, that
you have entered into an agency contract. Such notification must be
within 72 hours after entering into this contract or before the next
athletic event in which you are eligible to participate, whichever
occurs first.'''.
(c) Report on Claims Filed Pursuant to the Sports Agent
Responsibility and Trust Act.--The Sports Agent Responsibility and
Trust Act (15 U.S.C. 7801 et seq.) is further amended by inserting
after section 6 the following new section:
``SEC. 6A. REPORT TO CONGRESS.
``Not later than 6 months after the date of enactment of this
section, and annually thereafter, the Commission shall submit to the
Committee on Energy and Commerce of the House of Representatives and
the Committee on Commerce, Science, and Transportation of the Senate a
report summarizing any investigation or enforcement action brought by
the Commission pursuant to this Act, including the number of complaints
filed with the Commission pursuant to this Act.''.
SEC. 7. STATE PREEMPTION.
No State may enforce a State law or regulation with respect to
permitting or abridging the ability of a student athlete attending an
institution of higher education to enter into an endorsement contract
or agency contract pursuant to this Act or by an amendment made by this
Act.
SEC. 8. 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) Nondiscrimination of Student Athletes.--Nothing in this Act or
the amendments made by this Act may be construed to affect the rights
of student athletes or affect any program funded under title IX of the
Education Amendments of 1972 (20 U.S.C. 1681 et seq.).
(c) Antitrust Laws.--Nothing in this Act or the amendments made by
this Act shall provide a cause of action pursuant to the Sherman Act
(15 U.S.C. 1 et seq.).
(d) Student Athlete Not Considered an Employee.--Nothing in this
Act or the amendments made by this Act shall affect the employment
status of a student athlete who enters into an endorsement contract
with respect to a covered athletic organization or institution of
higher education.
SEC. 9. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) institutions of higher education and covered athletic
organizations should develop a course or program to assist
student athletes with understanding financial literacy with
respect to entering into an endorsement contract; and
(2) the Federal Trade Commission should investigate each
claim filed pursuant to the Sports Agent Responsibility and
Trust Act (15 U.S.C. 7801 et seq.).
SEC. 10. DEFINITIONS.
In this Act--
(1) the term ``agency contract'' means an oral or written
agreement in which a student athlete authorizes a person to
negotiate or solicit an endorsement contract on behalf of the
student athlete;
(2) the terms ``athlete agent'' and ``student athlete''
shall have the same meaning given such terms in section 2 of
the Sports Agent Responsibility and Trust Act (15 U.S.C. 7801);
(3) the term ``covered athletic organization'' means an
athletic association, conference, or other organization with
authority over intercollegiate athletics or that administers
intercollegiate athletics;
(4) the term ``endorsement contract'' has the meaning given
such term in section 2 of the Sports Agent Responsibility and
Trust Act (15 U.S.C. 7801); and
(5) the term ``institution of higher education'' has the
same meaning as that term under section 101 of the Higher
Education Act (20 U.S.C. 1001).
<all>
Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Consumer Protection and Commerce.
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