College Athlete Economic Freedom Act
This bill establishes name, image, likeness (NIL) and athletic reputation rights for college athletes.
Specifically, the bill
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 850 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 850
To establish name, image, likeness, and athletic reputation rights for
college athletes, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 4, 2021
Mrs. Trahan introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committee on
the Judiciary, 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 establish name, image, likeness, and athletic reputation rights for
college athletes, 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 ``College Athlete Economic Freedom
Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Athlete agent.--The term ``athlete agent'' has the
meaning given the term in section 2 of the Sports Agent
Responsibility and Trust Act (15 U.S.C. 7801).
(2) Athletic reputation.--The term ``athletic reputation''
means, with respect to a college athlete or prospective college
athlete, the recognition or fame of the athlete relating to the
participation or performance of the college athlete or
prospective college athlete in a sport.
(3) College athlete.--The term ``college athlete'' means an
individual who participates in or is eligible to participate in
an intercollegiate sport for an institution of higher
education.
(4) Compensation.--The term ``compensation''--
(A) means any payment, remuneration, or benefit
provided to a college athlete or prospective college
athlete in exchange for the use of the name, image,
likeness, or athletic reputation of the college athlete
or prospective college athlete; and
(B) does not include--
(i) a grant-in-aid; or
(ii) a stipend scholarship from the
institution of higher education in which a
college athlete is enrolled.
(5) Grant-in-aid.--The term ``grant-in-aid'' means a
scholarship, grant, or other form of financial assistance that
is provided by an institution of higher education to a college
athlete for the college athlete's undergraduate or graduate
course of study.
(6) Image.--The term ``image'', with respect to a college
athlete or prospective college athlete, means any photograph,
video, or computer-generated representation that reasonably
identifies the college athlete or prospective college athlete.
(7) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001 et seq.).
(8) Intercollegiate athletic association.--The term
``intercollegiate athletic association'' means any association,
conference, or other group or organization that--
(A) exercises authority over intercollegiate
athletics and the recruitment of college athletes or
prospective college athletes; and
(B) is engaged in interstate commerce or in any
industry or activity affecting interstate commerce.
(9) Likeness.--The term ``likeness'', with respect to a
college athlete or prospective college athlete, means the
uniquely identifiable voice, catch phrase, or any other mark
that when used in a context that reasonably identifies the
college athlete or prospective college athlete.
(10) Name.--The term ``name'', with respect to a college
athlete or prospective college athlete, means the first or last
name, or a nickname, of the college athlete or prospective
college athlete when used in a context that reasonably
identifies the college athlete or prospective college athlete.
(11) Prospective college athlete.--The term ``prospective
college athlete'' means an individual who--
(A) has not enrolled at an institution of higher
education; and
(B) may be recruited by an institution of higher
education.
(12) Third party.--The term ``third party'' means an
individual or entity other than an institution of higher
education or an intercollegiate athletic association.
SEC. 3. ATHLETE RIGHTS TO MARKET NAME, IMAGE, LIKENESS, AND ATHLETIC
REPUTATION.
(a) Right To Market Use of Name, Image, Likeness, and Athletic
Reputation.--
(1) In general.--An institution of higher education or
intercollegiate athletic association may not enact or enforce
any rule, requirement, standard, or other limitation that
prevents college athletes or prospective college athletes,
individually or as a group, from marketing the use of their
names, images, likenesses, and athletic reputations.
(2) Collusion.--An institution of higher education may not
coordinate with any other institution of higher education or
third party to limit the amount of payment offered to a college
athlete, prospective college athlete, or group of college
athletes or prospective college athletes under a contract for
the use of the name, image, likeness, or athletic reputation of
the college athlete, prospective college athlete, or group of
college athletes or prospective college athletes.
(3) Right to collective representation.--An institution of
higher education or intercollegiate athletic association may
not enact or enforce any rule, requirement, standard, or other
limitation, or engage in conduct that prevents college athletes
from forming or recognizing, or interferes with such formation
or recognition of, a collective representative to facilitate
group licensing agreements or provide representation for
college athletes.
(4) Group licensing.--A third party may not use the name,
image, likeness, or athletic reputation of any member of a
group of college athletes to market any product unless the
third party obtains a license from the group for that purpose.
(5) Grants-in-aid.--Receipt of compensation for the use of
the name, image, likeness, or athletic reputation of a college
athlete or prospective college athlete shall not adversely
affect--
(A) the eligibility or opportunity of a college
athlete or prospective college athlete to apply for a
grant-in-aid; or
(B) the amount, duration, or renewal of the grant-
in-aid of a college athlete or prospective college
athlete.
(6) Equitable institutional support.--An institution of
higher education, an intercollegiate athletic association, or a
party affiliated with an institution of higher education or an
intercollegiate athletic association that provides direct or
indirect support to college athletes with respect to the
marketing of their names, images, likenesses, and athletic
reputations shall make such support accessible to all college
athletes in the applicable athletic program, regardless of
gender, race, or participating sport.
(b) Right to Representation.--
(1) Ability for college athletes to retain
representation.--An institution of higher education or
intercollegiate athletic association may not prevent a college
athlete or prospective college athlete from fully participating
in intercollegiate athletics based on the college athlete or
prospective college athlete having obtained professional
representation with respect to a contract or legal matter,
including--
(A) representation provided by an athlete agent or
financial advisor; and
(B) legal representation provided by an attorney.
(2) Prohibitions on the regulation of representation.--An
institution of higher education or intercollegiate athletic
association may not regulate the legal, financial, or agency
representation of college athletes and prospective college
athletes with respect to the marketing of their names, images,
likenesses, or athletic reputations, including the
certification of such legal, financial, or agency
representation.
(c) Prohibition on Waiver.--A college athlete, a prospective
college athlete, an institution of higher education, an intercollegiate
athletic association, or any other person may not enter into any
agreement or a legal settlement that waives or permits noncompliance
with this Act.
SEC. 4. GRANTS FOR ANALYZING NAME, IMAGE, LIKENESS, AND ATHLETIC
REPUTATION MONETIZATION.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a business in the United States;
(B) a public or private education and research
organization in the United States; or
(C) a consortium of entities described in
subparagraph (A) or (B).
(2) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(b) Grants Authorized.--Annually, the Secretary may award a grant
to, or enter into a contract or a cooperative agreement with, an
eligible entity for the purpose of conducting a market analysis of the
monetization of the rights granted to college athletes under this Act
during the 1-year period preceding the date of the analysis.
(c) Requirements.--An eligible entity that receives a grant or
enters into a contract or cooperative agreement to conduct an analysis
under subsection (b) shall--
(1) make the analysis and information relating to the
analysis publicly available, including--
(A) the surveys and interviews the eligible entity
conducted during the course of the analysis; and
(B) estimates of the compensation received by
college athletes during the 1-year period preceding the
date of the analysis as a result of the monetization of
the names, images, likenesses, and athletic reputations
of those college athletes, separated by--
(i) gender;
(ii) race; and
(iii) sport; and
(2) provide recommendations to the Secretary to address any
disparate estimates described in paragraph (1)(B).
(d) Public Availability of Recommendations.--The Secretary shall
make any recommendations received under subsection (c)(2) publicly
available.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as may be necessary to carry
out this section.
SEC. 5. ENFORCEMENT PROVISIONS.
(a) Unfair or Deceptive Act or Practice.--
(1) In general.--A violation of section 3 shall be treated
as a violation of a rule defining an unfair or deceptive act or
practice prescribed under section 18(a)(1)(B) of the Federal
Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(2) Actions by the commission.--The Commission shall
enforce section 3 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 a
part of this Act.
(3) Enforcement related to nonprofit organizations.--
Notwithstanding section 4, 5(a)(2), or 6 of the Federal Trade
Commission Act (15 U.S.C. 44, 45(a)(2), 46) or any
jurisdictional limitation of the Federal Trade Commission, the
Commission shall also enforce this Act and the regulations
promulgated under this Act, in the same manner provided in
paragraphs (1) and (2) of this subsection, with respect to
organizations not organized to carry on business for their own
profit or that of their members.
(b) Private Right of Action.--
(1) In general.--An individual who is aggrieved by a
violation of section 3 may bring a civil action in an
appropriate Federal district court of competent jurisdiction.
(2) Damages; costs and attorney's fees.--A court may award
to a prevailing party in a civil action brought under paragraph
(1)--
(A) actual damages sustained by the party as a
result of the violation that is the subject of the
action; and
(B) the costs of the action and reasonable
attorney's fees.
(c) Sherman Act.--A violation of this Act shall be deemed to be a
per se violation of the Sherman Act (15 U.S.C. 1 et seq.) and subject
to all remedies and rights afforded under that Act.
SEC. 6. STATE PREEMPTION.
(a) In General.--A State may not enforce a State law relating to
the ability of college athletes to enter into contracts for the use of
their names, images, likenesses, or athletic reputations pursuant to
this Act.
(b) Exception for the Certification of Athlete Agents.--A State may
enforce a State law or regulation relating to the certification of
athlete agents under the Sports Agent Responsibility and Trust Act (15
U.S.C. 7801 et seq.).
SEC. 7. RULE OF CONSTRUCTION.
Nothing in this Act shall affect the treatment of qualified
scholarships under section 117 of the Internal Revenue Code of 1986.
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Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committee on the Judiciary, 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 the Judiciary, 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.
Referred to the Subcommittee on Courts, Intellectual Property, and the Internet.
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