[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 5003 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 5003

To protect the rights of student athletes, to provide for transparency 
  and accountability with respect to student athlete name, image, and 
    likeness agreements, and to establish an independent entity for 
           intercollegiate athletics, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 10, 2020

  Mr. Wicker introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To protect the rights of student athletes, to provide for transparency 
  and accountability with respect to student athlete name, image, and 
    likeness agreements, and to establish an independent entity for 
           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 ``Collegiate Athlete Compensation 
Rights Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Association.--The term ``association'' means any 
        organization that--
                    (A) has as members 2 or more conferences or 
                institutions; and
                    (B) arranges championships and sets rules for 
                varsity intercollegiate sports competition.
            (2) Booster.--The term ``booster'' means an individual or 
        entity that, in a calendar year, directly or indirectly, 
        through an institution or any other individual or entity or in 
        any other manner--
                    (A) has provided a donation to obtain season 
                tickets for any sport at an institution that exceeds 
                the annual amount determined by the Entity;
                    (B) has made a financial contribution directly to 
                the athletics department or other athletics management 
                organization of an institution in an amount that 
                exceeds the annual amount determined by the Entity;
                    (C) is party to any license agreement for use of 
                the trademarks of an institution in connection with 
                athletics under which the total payments exceed such 
                amount;
                    (D) has made any combination of such donations, 
                contributions, or license payments, or has provided any 
                other form of consideration in connection with an 
                activity described in any of subparagraphs (A) through 
                (C), that, in the aggregate, exceed such amount;
                    (E) has arranged or provided employment for 1 or 
                more student athletes; or
                    (F) has assisted, or been requested by an employee 
                of an institution to assist, in the recruitment of a 
                prospective student athlete.
            (3) Certification office.--The term ``certification 
        office'' means the office established by the Entity under 
        section 6(e)(2).
            (4) Certified agent.--The term ``certified agent'' means an 
        athlete agent (as defined in section 2 of the Sports Agent 
        Responsibility and Trust Act (15 U.S.C. 7801))--
                    (A) who is certified by the certification office as 
                being in full compliance with all requirements 
                established by the certification office; and
                    (B) whose certification has not lapsed, expired, or 
                been revoked.
            (5) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (6) Conference.--The term ``conference'' means any 
        organization or association that--
                    (A) has as members 2 or more institutions; and
                    (B) arranges championships and sets rules for 
                varsity intercollegiate sports competition.
            (7) Cost of attendance.--The term ``cost of attendance''--
                    (A) has the meaning given the term in section 472 
                of the Higher Education Act of 1965 (20 U.S.C. 1087ll); 
                and
                    (B) shall be calculated by the financial aid office 
                of each institution applying the same standards, 
                policies, and procedures for all students, including 
                such amounts paid or provided by the institution for 
                undergraduate and graduate studies at the institution.
            (8) Covered compensation.--
                    (A) In general.--The term ``covered compensation'' 
                includes any form of payment or remuneration, including 
                cash, benefits, awards, gifts, in-kind contributions, 
                and any other form of payment or remuneration.
                    (B) Inclusions.--The term ``covered compensation'' 
                includes social media compensation and payments for 
                licensing or use of publicity rights or for other 
                intellectual or intangible property rights under 
                Federal or State law.
                    (C) Exclusions.--The term ``covered compensation'' 
                does not include the payment or provision of the 
                following:
                            (i) Tuition, room, board, books, fees, and 
                        personal expenses paid or provided by an 
                        institution up to the full cost of attendance.
                            (ii) Federal Pell Grants and other State 
                        and Federal grants unrelated to, and not 
                        awarded with respect to, participation in 
                        varsity intercollegiate sports competition.
                            (iii) Health insurance and the costs of 
                        health care wholly or partly self-funded by an 
                        association, a conference, or an institution.
                            (iv) Disability and loss of value insurance 
                        that is wholly or partly self-funded by an 
                        association, a conference, or an institution.
                            (v) Career counseling or job placement 
                        services available to all students at an 
                        institution.
                            (vi) Payment of hourly wages and benefits 
                        for work actually performed (and not for 
                        participation in intercollegiate athletics) at 
                        a rate commensurate with the prevailing rate in 
                        the locality of an institution for similar 
                        work.
            (9) Division.--The term ``division'' means an organization 
        of institutions--
                    (A) the athletics programs of which compete against 
                each other at a similar level of competition; and
                    (B) that is recognized by an association.
            (10) Enroll.--With respect to a student athlete, the term 
        ``enroll'' means to receive passing grades, as determined by 
        the applicable institution, for completing courses of 
        instruction at such institution comprising not less than 12 
        percent of the credits required for graduation from the 
        institution.
            (11) Entity.--The term ``Entity'' means the independent 
        entity for intercollegiate athletics selected by the Commission 
        under section 6(b).
            (12) Image.--The term ``image'', with respect to a student 
        athlete, means a picture of the student athlete.
            (13) Institution.--The term ``institution'' means an 
        institution of higher education (as defined in section 101 of 
        the Higher Education Act of 1965 (20 U.S.C. 1001)) that 
        sponsors varsity intercollegiate sports competition in the 
        United States.
            (14) Intercollegiate athletics.--The term ``intercollegiate 
        athletics'' means sports played at the collegiate level for 
        which eligibility requirements for participation by student 
        athletes are established by an association for the promotion or 
        regulation of collegiate athletics.
            (15) Likeness.--The term ``likeness'', with respect to a 
        student athlete, means a physical or digital depiction or 
        representation of the student athlete.
            (16) Loss of value insurance.--The term ``loss of value 
        insurance'' means insurance that protects the future contract 
        value of a student athlete from decreasing below a 
        predetermined amount due to significant injury or illness 
        suffered by the student athlete during the designated coverage 
        period of the insurance policy.
            (17) Name.--The term ``name'', with respect to a student 
        athlete, means the first or last name, or the nickname, of the 
        student athlete when used in a context that reasonably 
        identifies the student athlete with particularity.
            (18) Name, image, and likeness agreement.--The term ``name, 
        image, and likeness agreement'' means a contract or similar 
        arrangement between a student athlete and a third-party 
        licensee regarding the commercial use of the name, image, or 
        likeness of the student athlete.
            (19) Publicity right.--The term ``publicity right''--
                    (A) means a right that is recognized under a 
                Federal or State law that permits an individual to 
                control and profit from the commercial use of the name, 
                image, or likeness of the individual; and
                    (B) includes any right that is licensed under a 
                name, image, and likeness agreement.
            (20) Social media compensation.--The term ``social media 
        compensation'' includes all forms of payment for engagement on 
        social media received by a student athlete as a result of the 
        use of the name, image, or likeness of the student athlete.
            (21) Student athlete.--The term ``student athlete'' means 
        any individual attending an institution who participates as a 
        team member or competitor in varsity intercollegiate sports 
        competition sponsored by the institution.
            (22) Third-party licensee.--
                    (A) In general.--The term ``third-party licensee'' 
                means any individual or entity that licenses publicity 
                rights from any current or prospective student athlete 
                or groups of student athletes.
                    (B) Exclusion.--The term ``third-party licensee'' 
                does not include any association, conference, or 
                institution.
            (23) Varsity intercollegiate sports competition.--The term 
        ``varsity intercollegiate sports competition'' means 
        competition between and among collegiate sports teams that 
        principally represent an institution at the highest level of 
        competition.

SEC. 3. PROTECTION OF STUDENT ATHLETE RIGHTS.

    (a) In General.--Except as provided in section 4, an association, a 
conference, or an institution shall permit a student athlete--
            (1) to earn covered compensation, commensurate with market 
        value, for the use of the name, image, or likeness of the 
        student athlete while enrolled at an institution; and
            (2) to obtain and retain a certified agent for any matter 
        or activity relating to such covered compensation.
    (b) Rescission of Agreements.--In the case of a student athlete who 
no longer participates in varsity intercollegiate sports competition, 
the student athlete may rescind a name, image, and likeness agreement 
with a remaining term of more than 1 year--
            (1) without being held liable for breach; and
            (2) with no obligation to return payments received before 
        giving notice of the rescission.
    (c) Educational Resources.--The Entity shall provide educational 
resources to student athletes with respect to earning covered 
compensation for the use of the name, image, or likeness of the student 
athlete.

SEC. 4. PROHIBITIONS ON CERTAIN ACTIVITIES OF INSTITUTIONS, BOOSTERS, 
              AND THIRD-PARTY LICENSEES.

    (a) Restrictions on Earning Covered Compensation.--
            (1) In general.--An association, a conference, or an 
        institution may not adopt or maintain a contract, rule, 
        regulation, standard, or other requirement that prevents or 
        unduly restricts a student athlete from earning covered 
        compensation for the use of the name, image, or likeness of the 
        student athlete.
    (b) Classification of Student Athletes.--Notwithstanding any other 
provision of Federal or State law, a student athlete shall not be 
considered an employee of an association, a conference, or an 
institution based on participation in varsity intercollegiate sports 
competition.
    (c) Payment to Student Athletes or Families.--An institution may 
not, directly or indirectly, provide covered compensation to a student 
athlete or a prospective student athlete, or to the family of a student 
athlete or a prospective student athlete.
    (d) Scholarships.--An institution or an association may not revoke 
or impose a condition on an athletic scholarship of a student athlete 
based on the student athlete having earned covered compensation or 
having obtained a certified agent in accordance with this Act.
    (e) Conflicts With Contracts or Rules of Institution.--
            (1) In general.--Except as provided in paragraph (2), a 
        third-party licensee may not enter into, or offer to enter 
        into, a name, image, and likeness agreement with a student 
        athlete that provides covered compensation if a provision of 
        the name, image, and likeness agreement conflicts with a 
        provision of a contract, rule, regulation, standard, or other 
        requirement of the applicable institution.
            (2) Exception.--A third-party licensee may enter into, or 
        offer to enter into, a name, image, and likeness agreement with 
        a student athlete that conflicts with a provision of a 
        contract, rule, regulation, standard, or other requirement of 
        the applicable institution if--
                    (A) the institution consents, in writing, to the 
                name, image, and likeness agreement; or
                    (B) the contract, rule, regulation, standard, or 
                other requirement unduly restricts student athletes 
                from earning covered compensation for the use of the 
                name, image, or likeness of the student athlete.
            (3) Disclosures.--
                    (A) Conflicts.--An institution asserting a conflict 
                described in paragraph (1) shall disclose to the 
                certified agent and the Entity each relevant term of 
                the contract, rule, regulation, standard, or other 
                requirement of the athletic team.
                    (B) Restrictions.--A certified agent asserting a 
                restriction described in paragraph (2)(B) shall 
                disclose to the Entity the nature of such restriction.
    (f) Agent Activities.--An individual may not carry out any agent 
activity or representation of a student athlete with respect to a 
student athlete name, image, and likeness agreement unless the 
individual is a certified agent.
    (g) Prohibited Agreements.--
            (1) Booster agreements and inducements.--An association, a 
        conference, or an institution may prohibit a booster from 
        providing covered compensation to, or entering into a name, 
        image, and likeness agreement with, a student athlete or 
        prospective student athlete as an inducement to attend or 
        enroll in or continue attending a specific institution or group 
        of institutions.
            (2) Other prohibited agreements.--An association, a 
        conference, or an institution may prohibit a student athlete 
        from entering into a name, image, and likeness agreement with a 
        third-party licensee relating to the name, image, or likeness 
        of the student athlete--
                    (A) before the date on which the student athlete 
                enrolls at an institution; or
                    (B) for the promotion of gambling, tobacco or 
                alcohol products, adult entertainment, or any other 
                product or service that is reasonably considered to be 
                inconsistent with the values of an institution.

SEC. 5. TRANSPARENCY AND ACCOUNTABILITY RELATING TO NAME, IMAGE, AND 
              LIKENESS AGREEMENTS AND STUDENT ATHLETE ENDORSEMENTS.

    (a) Contract With Certified Agent.--A certified agent may not enter 
into a representation agreement with a student athlete before the date 
on which the student athlete is enrolled.
    (b) Disclosures Relating to Receipt of Covered Compensation.--Not 
later than 5 days after the date on which a student athlete receives 
covered compensation relating to a name, image, and likeness agreement, 
the certified agent representing the student athlete shall report to 
the Entity--
            (1) the receipt and amount of such covered compensation; 
        and
            (2) the terms and conditions of the agreement, including 
        the name of each party to the agreement.
    (c) Limitation on Duration of Endorsement Activities.--To preserve 
the integrity of the educational programs of institutions, an 
institution or the Entity may impose reasonable limits on the amount of 
time a student athlete may spend to carry out endorsement activities 
relating to a name, image, and likeness agreement.
    (d) Annual Report.--Not less frequently than annually, the Entity 
shall make available to the public on the internet website of the 
Entity, for the preceding 1-year period--
            (1) the total number of student athletes who have entered 
        into name, image, and likeness agreements;
            (2) the total number of student athletes eligible to earn 
        covered compensation from third-party licensees as a result of 
        name, image, and likeness agreements;
            (3) the total amount of covered compensation earned by 
        student athletes, disaggregated by division and by conference;
            (4) the average amount of covered compensation earned by 
        student athletes;
            (5) the average amount of covered compensation earned by 
        student athletes, disaggregated by sport; and
            (6) a detailed description of each name, image, and 
        likeness agreement entered into, including, for each student 
        athlete--
                    (A) the terms and conditions of the name, image, 
                and likeness agreement;
                    (B) the amount of covered compensation;
                    (C) the requirements of the student athlete for 
                receiving such covered compensation;
                    (D) the dates for which the name, image, and 
                likeness agreement is in effect; and
                    (E) any other information the Entity considers 
                relevant.

SEC. 6. INDEPENDENT ENTITY FOR INTERCOLLEGIATE ATHLETICS.

    (a) In General.--The independent entity for intercollegiate 
athletics shall be a private, independent, self-regulatory, nonprofit 
corporation.
    (b) Selection of Independent Entity.--
            (1) In general.--Subject to paragraph (2), the Commission 
        may select an independent entity that meets the requirements 
        described in this section to carry out the duties described in 
        this section. In selecting the Entity, the Commission shall 
        consider applications from individuals representing or under 
        the jurisdiction of not less than 10 conferences.
            (2) Special rule.--If, not later than 180 days after the 
        date of enactment of this Act, the Commission has not selected 
        the Entity in accordance with paragraph (1), the Commission 
        shall--
                    (A) carry out the duties described in subsection 
                (e), except that the Commission may use its existing 
                enforcement procedures rather than those outlined in 
                such subsection; and
                    (B) establish and oversee an advisory committee in 
                accordance with the requirements in the Federal 
                Advisory Committee Act (5 U.S.C. App.), with membership 
                as described in subsection (f)(2), to advise the 
                Commission on the topics described in subsection 
                (f)(1).
    (c) Board of Directors.--
            (1) Membership.--The Entity shall be governed by a board of 
        directors (in this section referred to as the ``Board'').
            (2) Representation.--The Board shall be comprised of 15 
        voting members who shall include--
                    (A) 3 representatives of student athletes attending 
                an institution;
                    (B) 3 representatives of athletics directors at 
                institutions;
                    (C) 3 representatives of conferences;
                    (D) 3 representatives of institutions of different 
                sizes and geographical locations; and
                    (E) 3 representatives of a variety of 
                intercollegiate athletics teams.
            (3) Chair.--The chair of the Board shall be elected by a 
        majority of the Board.
            (4) Bylaws.--The Board shall be governed by bylaws for the 
        operation of the Entity with respect to--
                    (A) the administrative structure and employees of 
                the Entity;
                    (B) the establishment of standing committees;
                    (C) the procedures for filling vacancies on the 
                Board and the standing committees;
                    (D) termination of membership; and
                    (E) any other matter the Board considers necessary.
            (5) Terms.--
                    (A) In general.--A member of the Board shall be 
                appointed for a term of 3 years, except that of the 
                members first appointed--
                            (i) \1/3\ of the members shall be appointed 
                        for 2 years;
                            (ii) \1/3\ of the members shall be 
                        appointed for 3 years; and
                            (iii) \1/3\ of the members shall be 
                        appointed for 4 years.
                    (B) Limit.--A member of the Board may serve for not 
                more than 2 consecutive terms.
    (d) Quorum.--For all items for which Board approval is required, 
the Board shall have present a majority of members.
    (e) Duties.--
            (1) Development of rules.--
                    (A) In general.--The Entity shall develop rules and 
                standards--
                            (i) with respect to, and consistent with, 
                        the requirements and prohibitions under 
                        sections 3 and 4; and
                            (ii) to maintain fairness and integrity in 
                        amateur intercollegiate athletics and the 
                        principle of amateurism in intercollegiate 
                        athletic competition.
                    (B) Name, image, and likeness agreement rules.--The 
                Entity shall develop rules, consistent with sections 3 
                and 4, with respect to student athlete name, image, and 
                likeness agreements.
                    (C) Annual limitation on booster contributions.--
                The Entity shall develop a rule limiting the annual 
                amount of booster donations, contributions, license 
                payments, and any other form of consideration in 
                connection with an activity described in section 2(2).
                    (D) Approval of commission.--The rules and 
                standards developed under this paragraph shall be 
                subject to approval by the Commission in accordance 
                with section 7(d).
            (2) Establishment of certification office.--
                    (A) In general.--The Entity shall establish and 
                maintain a certification office to carry out activities 
                described in subparagraph (B).
                    (B) Activities of certification office.--
                            (i) Testing program.--
                                    (I) In general.--The certification 
                                office shall develop and administer a 
                                testing program for individuals seeking 
                                to become certified agents.
                                    (II) Elements.--The testing program 
                                shall be designed to ensure that each 
                                certified agent--
                                            (aa) understands and is 
                                        equipped to provide competent 
                                        business advice to student 
                                        athletes with respect to 
                                        publicity rights licensing; and
                                            (bb) has a reasonable 
                                        working knowledge of relevant 
                                        State publicity rights law and 
                                        applicable tax laws.
                                    (III) Frequency of testing.--The 
                                certification office shall conduct 
                                testing not less frequently than 
                                biennially.
                            (ii) Standards of conduct.--The 
                        certification office shall develop and publish 
                        on a publicly available internet website of the 
                        Entity standards of conduct and ethics 
                        applicable to certified agents.
                            (iii) Certification.--
                                    (I) In general.--The certification 
                                office shall issue certificates to, and 
                                publish on a publicly available 
                                internet website of the Entity a list 
                                of, certified agents.
                                    (II) List of individuals not 
                                certified.--The certification office 
                                shall publish on a publicly available 
                                internet website of the Entity a list 
                                of individuals--
                                            (aa) who have attempted to 
                                        obtain certification as 
                                        certified agents, but have not 
                                        been so certified; and
                                            (bb) whose certification as 
                                        certified agents has been 
                                        revoked as a result of an 
                                        enforcement action or any other 
                                        action of the Entity.
            (3) Availability of information.--Not less frequently than 
        annually, the Entity shall compile and publish on a publicly 
        available internet website of the Entity such extracts of data 
        and information available from name, image, and likeness 
        agreements as the Entity determines to be helpful to student 
        athletes in evaluating certified agents and licensing 
        opportunities for publicity rights.
            (4) Guidance for student athletes.--
                    (A) In general.--The Entity shall develop and 
                publish on a publicly available internet website of the 
                Entity guidance for student athletes that--
                            (i) explains the legal and business 
                        concepts to be considered in licensing 
                        publicity rights; and
                            (ii) specifically includes information 
                        concerning the implications of provisions that 
                        restrict a student athlete's choice of 
                        institutions or bind the student athlete to 
                        long-term arrangements.
            (5) Grievance procedures.--The Entity shall establish 
        procedures for--
                    (A) addressing complaints and concerns from student 
                athletes and institutions with respect to certified 
                agents; and
                    (B) upon a showing that a certified agent has not 
                competently represented the interests of 1 or more 
                student athletes or has failed to comply with 
                applicable standards of conduct and ethics, the 
                revocation of certification of a certified agent.
            (6) Enforcement.--
                    (A) In general.--The Entity shall enforce the rules 
                and standards developed under paragraph (1) by imposing 
                fines, penalties, and sanctions, including revocation 
                of agent certifications, for agents, institutions, 
                conferences, and associations that violate any such 
                rule or standard.
                    (B) Appeals standing committee.--
                            (i) In general.--The Entity shall establish 
                        an appeals standing committee, to which any 
                        individual affected by an enforcement decision 
                        of the Entity may appeal such decision.
                            (ii) Membership.--The appeals standing 
                        committee shall be comprised of 7 individuals 
                        selected by the nominating committee.
                            (iii) Chair.--The chair of the appeals 
                        standing committee shall be elected by a 
                        majority of the appeals standing committee.
                            (iv) Advice to board.--After hearing an 
                        appeal on a decision of the Entity, the appeals 
                        standing committee shall advise the Board on 
                        whether to sustain or overrule the decision.
    (f) Student Athlete Health and Safety Standing Committee.--
            (1) In general.--The Entity shall establish a student 
        athlete health and safety standing committee, which shall 
        provide advice and guidance to the Board on the development of 
        standards to help prevent serious injury to and abuse of 
        student athletes.
            (2) Membership.--The student athlete health and safety 
        standing committee shall be comprised of not more than 7 voting 
        members who shall be selected by the Board not later than 120 
        days after the date of the enactment of this Act, including 
        individuals with experience relating to sports medicine.
            (3) Chair.--The chair of the student athlete health and 
        safety standing committee shall be elected by a majority of the 
        student athlete health and safety standing committee.
    (g) Nominating Committee.--
            (1) In general.--The Entity shall establish a nominating 
        committee.
            (2) Membership.--The nominating committee shall be 
        comprised of 7 members selected from institutions, conferences, 
        and divisions, except that the initial nominating committee 
        members shall be set forth in the bylaws of the Entity.
            (3) Chair.--The majority of the nominating committee shall 
        elect the chair of the nominating committee.
            (4) Duties.--The nominating committee shall--
                    (A) be responsible for appointing members to the 
                Board in the event of a vacancy;
                    (B) appoint members to each standing committee 
                established under this section; and
                    (C) appoint members to any other committee 
                established by the Entity.
    (h) Additional Committees.--The Entity may establish any additional 
committee the Board considers necessary.
    (i) Conflicts of Interest.--To avoid conflicts of interest, the 
following individuals may not be selected as a member of the Board or 
as a member of a standing committee or the nominating committee 
established under this section:
            (1) A booster.
            (2) A certified agent.
            (3) A third-party licensee.

SEC. 7. ENFORCEMENT AND REVIEW BY THE FEDERAL TRADE COMMISSION.

    (a) In General.--A violation of this Act or any rule approved 
pursuant to subsection (d) 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)).
    (b) Enforcement Authority.--
            (1) In general.--The Commission shall enforce this Act and 
        any rule approved pursuant to subsection (d) 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.
            (2) Nonprofit organizations.--Notwithstanding section 4 of 
        the Federal Trade Commission Act (15 U.S.C. 44) or any 
        jurisdictional limitation of the Commission, the Commission 
        shall also enforce this Act and any rule approved pursuant to 
        subsection (d) in the same manner provided in paragraph (1), 
        with respect to organizations not organized to carry on 
        business for their own profit or that of their members.
            (3) Penalties; privileges and immunities.--Any person who 
        violates this Act or any rule approved pursuant to subsection 
        (d) 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.).
            (4) Intervention.--The Commission shall have the right to 
        intervene in any action brought by the Entity with respect to 
        any violation of this Act or any rule approved pursuant to 
        subsection (d).
            (5) Actions by the federal trade commission.--In any case 
        in which an action is instituted by or on behalf of the 
        Commission for any violation of this Act or any rule approved 
        pursuant to subsection (d), the Entity may not, during the 
        pendency of that action, institute an action under this Act 
        against any defendant named in the complaint in that action for 
        violation of such Act or rule.
    (c) Appeals.--In accordance with such rules as the Commission may 
prescribe, any person subject to a final decision by the Board under 
section 6(e)(6) may obtain review by the Commission of such decision.
    (d) Review of Proposed Rules.--
            (1) In general.--The Entity shall file with the Commission, 
        in accordance with such rules as the Commission may prescribe, 
        copies of any proposed rule or modification to any rule 
        developed by the Entity under section 6(e)(1) (in this 
        subsection referred to as a ``proposed rule'').
            (2) Publication.--The Commission shall publish a proposed 
        rule filed under paragraph (1) and provide interested persons 
        an opportunity to comment.
            (3) Timeline.--Not later than 45 days after a proposed rule 
        is published under paragraph (2), the Commission shall approve 
        or disapprove the proposed rule.
            (4) Approval.--The Commission shall approve a proposed rule 
        if the Commission finds that the proposed rule is consistent 
        with the requirements and purposes of this Act.
            (5) Prohibition.--A proposed rule shall not take effect 
        unless such rule has been approved by the Commission.

SEC. 8. ROLE OF ASSOCIATIONS AND CONFERENCES.

    Associations and conferences may--
            (1) establish rules, consistent with this Act and the rules 
        and standards developed in accordance with section 6(e)(1); and
            (2) enforce such rules by--
                    (A) declaring ineligible for competition a student 
                athlete who receives payments in violation of this Act 
                or any such rule or standard; and
                    (B) withholding 1 or more revenue distributions 
                from an institution that makes payments in violation of 
                this Act or any such rule or standard.

SEC. 9. LIMITATION OF LIABILITY.

    An institution, a conference, or an association that complies with 
the requirements under this Act shall not be subject to liability, 
based on action taken by the institution, conference, or association 
before the date of the enactment of this Act, under--
            (1) any Federal or State statute relating to trade or 
        competition; or
            (2) any Federal or State statute relating to tortious 
        interference based on concepts of unfair competition.

SEC. 10. RELATIONSHIP TO STATE LAWS.

    No State or political subdivision of a State may establish or 
continue in effect any law, regulation, rule, requirement, or standard 
that governs or regulates the compensation, publicity rights, 
employment status, or eligibility for competition of a student athlete, 
including any provision that governs or regulates the commercial use of 
the name, image, or likeness of a student athlete.

SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Commission such sums 
as are necessary to carry out this Act.
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