[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2699 Introduced in House (IH)]


104th CONGRESS
  1st Session
                                H. R. 2699

   To require the consideration of certain criteria in decisions to 
      relocate professional sports teams, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 30, 1995

  Mr. Stokes introduced the following bill; which was referred to the 
    Committee on the Judiciary, and in addition to the Committee on 
Commerce, 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 require the consideration of certain criteria in decisions to 
      relocate professional sports teams, 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 ``Fans Rights Act of 1995''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) professional sports teams foster a strong local 
        identity with the people of the cities and regions in which 
        they are located, providing a source of civic pride for their 
        supporters;
            (2) professional sports teams provide employment 
        opportunities, revenues, and a valuable form of entertainment 
        for the cities and regions in which they are located;
            (3) there are significant public investments associated 
        with professional sports facilities;
            (4) it is in the public interest to encourage professional 
        sports leagues to operate under policies that promote stability 
        among their member teams and to promote the equitable 
        resolution of disputes arising from the proposed relocation of 
        professional sports teams; and
            (5) professional sports teams travel in interstate to 
        compete and utilize materials shipped in interstate commerce, 
        and professional sports games are broadcast nationally.

SEC. 3. DEFINITIONS.

    As used in this Act--
            (1) the term ``home territory'' means the geographic area 
        within which a member team operates and plays the majority of 
        its home games, as defined in the governing agreement or 
        agreements of the relevant league on November 1, 1995, or upon 
        the commencement of operations of any league after such date;
            (2) the term ``interested party'' includes--
                    (A) any local government that has provided 
                financial assistance, including tax abatement, to the 
                facilities in which the team plays;
                    (B) a representative of the local government for 
                the locality in which a member team's stadium or arena 
                is located;
                    (C) a member team;
                    (D) the owner or operator of a stadium or arena of 
                a member team; and
                    (E) any other affected party, as designated by the 
                relevant league;
            (3) the term ``local government'' means a city, county, 
        parish, town, township, village, or any other general 
        governmental unit established under State law;
            (4) the terms ``member team'' and ``team'' mean any team of 
        professional athletes--
                    (A) organized to play major league football, 
                basketball, hockey, or baseball; and
                    (B) that is a member of a professional sports 
                league;
            (5) the term ``person'' means any individual, partnership, 
        corporation, or unincorporated association, any combination or 
        association thereof, or any political subdivision;
            (6) the terms ``professional sports league'' and ``league'' 
        mean an association that--
                    (A) is composed of 2 or more member teams;
                    (B) regulates the contests and exhibitions of its 
                member teams; and
                    (C) has been engaged in competition in a particular 
                sport for more than 7 years; and
            (7) the terms ``stadium'' and ``arena'' mean the principal 
        physical facility within which a member team plays the majority 
        of its home games.

SEC. 4. CLARIFICATION OF ANTITRUST LAWS RELATED TO THE RELOCATION AND 
              RELOCATION DETERMINATION CRITERIA.

    (a) Application of Antitrust Laws.--It shall not be unlawful by 
reason of any provision of the antitrust laws for a professional sports 
league to enforce rules authorizing the membership of the league to 
decide that a member club of such league shall not be relocated.
    (b) Criteria for Relocation Decisions.--Notwithstanding any other 
law, prior to making a decision to approve or disapprove the relocation 
of a member team, a professional sports league shall take into 
consideration--
            (1) the extent to which fan loyalty to and support for the 
        team has been demonstrated during the team's tenure in the 
        community;
            (2) the degree to which the team has engaged in good faith 
        negotiations with appropriate persons concerning terms and 
        conditions under which the team would continue to play its 
        games in the community or elsewhere within its home territory;
            (3) the degree to which the ownership or management of the 
        team has contributed to any circumstances that might 
        demonstrate the need for the relocation;
            (4) the extent to which the team, directly or indirectly, 
        received public financial support by means of any publicly 
        financed playing facility, special tax treatment, or any other 
        form of public financial support;
            (5) the adequacy of the stadium in which the team played 
        its home games in the previous season, and the willingness of 
        the stadium, arena authority, or local government to remedy any 
        deficiencies in the facility;
            (6) whether the team has incurred net operating losses, 
        exclusive of depreciation and amortization, sufficient to 
        threaten the continued financial viability of the team;
            (7) whether any other team in the league is located in the 
        community in which the team is located;
            (8) whether the team proposes to relocate to a community in 
        which no other team in the league is located;
            (9) whether the stadium authority, if public, is opposed to 
        the relocation; and
            (10) whether there is a bona fide investor offering fair 
        market value for the member team and seeking to retain the team 
        in the home territory.

SEC. 5. NOTICE OF PROPOSED CHANGE IN HOME TERRITORY AND RIGHT OF FIRST 
              REFUSAL.

    (a) In General.--Any person seeking to change the home territory of 
a member team to a location other than the location of such member 
team's home territory shall furnish notice of such proposed change not 
later than 180 days before the commencement of the season in which the 
member team is to play in such other location.
    (b) Parties Entitled to Receive Notice.--The notice required under 
subsection (a) shall be furnished to all interested parties.
    (c) Requirements.--The notice shall--
            (1) be in writing and delivered in person or by certified 
        mail;
            (2) be made available to the news media;
            (3) be published in 1 or more newspapers of general 
        circulation within the member team's home territory; and
            (4) contain--
                    (A) an identification of the proposed new location 
                of such member team;
                    (B) a summary of the reasons for the change in home 
                territory based on the criteria listed in section 4(b); 
                and
                    (C) the date on which the proposed change would 
                become effective.
    (d) Opportunity to Purchase.--
            (1) In general.--During the 180-day notice period under 
        subsection (a), a local government, stadium, arena authority, 
        person, or any combination thereof, may prepare and present a 
        proposal to purchase the member team to retain the team in the 
        home territory.
            (2) Membership in league.--If a bid under paragraph (1) is 
        successful, the professional sports league of the member team 
        shall not prohibit membership in the league on the basis that 
        the new ownership of the member team is made up of multiple 
        owners or that the new ownership includes 1 or more local 
        governments.
    (e) Opportunity to Induce Team to Stay.--During the 180-day notice 
period under subsection (a), a local government, stadium authority, 
person, or any combination thereof, shall be given the opportunity to 
prepare and present a proposal to induce the member team to remain in 
its home territory.
    (f) Response.--The response of the owner to any offer made under 
subsection (d) or (e) shall--
            (1) be in writing and delivered in person or by certified 
        mail; and
            (2) state in detail the reasons for refusal of any bona 
        fide offer.
    (g) Determination by League.--
            (1) In general.--The professional sports league shall make 
        a determination with respect to the location of such member 
        team's home territory before the expiration of the 180-day 
        notice period required by this section.
            (2) Hearings.--In making a determination under this 
        subsection, the professional sports league shall conduct a 
        hearing at which interested parties are afforded an opportunity 
        to present oral or written testimony regarding a change in the 
        location of a member team's home territory. The league shall 
        keep a record of all such proceedings.
            (3) Consideration of proposals.--The professional sports 
        league shall take into account any inducement proposal that has 
        been offered under subsection (e).
    (h) Considerations.--In determining whether to approve or 
disapprove the relocation of a member team, a professional sports 
league shall take into consideration the criteria listed in section 
4(b).

SEC. 6. JUDICIAL REVIEW.

    (a) In General.--A decision by a professional sports league to 
approve or disapprove the relocation of a member team may be reviewed 
in a civil action brought by an interested party.
    (b) Venue.--
            (1) In general.--Subject to paragraph (3), venue shall be 
        proper in any district court of the United States having 
        jurisdiction over the action under section 1331 of title 28, 
        United States Code.
            (2) Change of venue.--Subject to paragraph (3), upon the 
        motion of any party, the district court may, for the 
        convenience of the parties or in the interests of justice, 
        transfer an action brought under this section to any district 
        that has jurisdiction over such action under section 1331 of 
        title 28, United States Code.
            (3) Limitation.--No action may be brought under this 
        section in any United States district court of the State that 
        contains--
                    (A) the member club's home territory; or
                    (B) the proposed location of such member club.
    (c) Additional Proceedings.--In any case in which the interested 
parties have not been afforded an opportunity to present oral or 
written testimony in accordance with section 5(f), the district court 
may, by order, require the relevant professional sports league to 
conduct additional proceedings at which such testimony may be 
presented, and to reconsider its decision to approve or disapprove the 
relocation based on such testimony. Not later than 30 days after the 
date of any such order, the league shall reconsider and resubmit its 
decision to the district court, and the district court shall review 
such decision in accordance with this section.
    (d) No Waiver of Rights.--Nothing in this Act shall be construed to 
require the waiver of any legal rights in existence prior to the date 
of enactment of this Act.

SEC. 7. INAPPLICABILITY TO CERTAIN MATTERS.

    (a) In General.--Nothing contained in this Act shall--
            (1) alter, determine, or otherwise affect the applicability 
        or inapplicability of the antitrust laws, the labor laws, or 
        any other provision of law relating to the wages, hours, or 
        other terms and conditions of employment of players in any 
        professional sports league, to any employment matter regarding 
        players in any such league, or to any collective bargaining 
        rights and privilege of any player union in any such league;
            (2) alter or affect the applicability or inapplicability of 
        the antitrust laws or any applicable Federal or State law 
        relating to broadcasting or telecasting, including section 1291 
        of title 15, United States Code, any agreement between any 
        professional sports league or its member teams, and any person 
        not affiliated with such a league for the broadcasting or 
        telecasting of the games of such league or its member teams on 
        any form of television;
            (3) affect any contract, or provision of a contract, 
        relating to the use of a stadium or arena between a member team 
        and the owner or operator of any stadium or arena or any other 
        person;
            (4) exempt from the antitrust laws any agreement to fix the 
        prices of admission to sports contests;
            (5) exempt from the antitrust laws any predatory practice 
        or other conduct with respect to competing sports leagues that 
        would otherwise be unlawful under the antitrust laws; or
            (6) except as provided in this Act, alter, determine, or 
        otherwise affect the applicability or inapplicability of the 
        antitrust laws to any act, contract, agreement, rule, course of 
        conduct, or other activity by, between, or among persons 
        engaging in, conducting, or participating in professional 
        football, basketball, hockey, or baseball.
    (b) Definition.--As used in this section, the term ``antitrust 
laws'' shall have the meaning given to such term in the first section 
of the Clayton Act (15 U.S.C. 12) and in the Federal Trade Commission 
Act (15 U.S.C. 41 et seq.).

SEC. 8. ATTEMPTS TO INFLUENCE RELOCATION DECISIONS.

    It shall be unlawful for any person, including a member team, 
owner, or affiliated party, or any State or political subdivision, to 
make or offer to make a payment of money or to provide or arrange with 
others for the provision of other value to a league or to any of its 
members in connection with a decision regarding the relocation of a 
member team.

SEC. 9. EFFECTIVE DATE.

    This Act shall apply to any relocation of the home territory of a 
member team that occurs on or after October 1, 1995.
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