[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3630 Introduced in House (IH)]

<DOC>






118th CONGRESS
  1st Session
                                H. R. 3630

   To prohibit certain entities from barring a student athlete from 
participating in intercollegiate athletics as a result of such student 
 athlete entering into an endorsement contract, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 2023

Mr. Carey (for himself and Mr. Landsman) introduced the following bill; 
  which was referred to the Committee on Energy and Commerce, and in 
addition to the Committee on Education and the Workforce, 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 certain entities from barring a student athlete from 
participating in intercollegiate athletics as a result of such student 
 athlete entering 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Student Athlete 
Level Playing Field Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Ability of student athletes to enter agency and endorsement 
                            contracts.
Sec. 3. Covered Athletic Organization Commission.
Sec. 4. Institutions of higher education and student athletes who enter 
                            into endorsement contracts.
Sec. 5. Prohibiting unfair or deceptive acts or practices against 
                            student athletes.
Sec. 6. Registration of certain agents.
Sec. 7. State preemption.
Sec. 8. Rules of construction.
Sec. 9. Sense of Congress.
Sec. 10. Definitions.

SEC. 2. ABILITY OF STUDENT ATHLETES TO ENTER AGENCY AND ENDORSEMENT 
              CONTRACTS.

    (a) In General.--A covered athletic organization or institution of 
higher education may not prohibit a student athlete from participating 
in intercollegiate athletics as a result of such student athlete 
entering into an agency contract or an endorsement contract, or 
otherwise receiving consideration for the name, image, or likeness of 
such student athlete.
    (b) Limitation on Athletic Departments.--An agreement under which 
consideration is provided to a student athlete for use of the name, 
image, or likeness of the student athlete, including such an agreement 
between an institution of higher education and a student athlete, may 
not be negotiated, drafted, or funded by the athletic department of the 
institution of higher education of the student athlete or an 
institutional employee who reports to such athletic department.
    (c) Insignia Prohibitions.--A student athlete may be prohibited, by 
the institution of higher education of the student athlete, from 
wearing an item of clothing or gear with the insignia of an entity 
during an athletic competition or athletic-related event that is 
sponsored by the institution.
    (d) Enforcement by Federal Trade Commission.--
            (1) Unfair or deceptive acts or practices.--A violation of 
        subsection (a) shall be treated as a 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.
            (2) Powers of commission.--The Federal Trade Commission 
        shall enforce subsection (a) 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. Any person who violates such 
        subsection shall be subject to the penalties and entitled to 
        the privileges and immunities provided in the Federal Trade 
        Commission Act.
            (3) Rule of construction.--Nothing in this section may be 
        construed to limit the authority of the Federal Trade 
        Commission under any other provision of law.

SEC. 3. COVERED ATHLETIC ORGANIZATION COMMISSION.

    (a) Establishment.--There is established the Covered Athletic 
Organization Commission (in this section referred to as the 
``Commission''), the purpose of which shall be to make 
recommendations--
            (1) to Congress and covered athletic organizations, on the 
        implementation of name, image, and likeness rules;
            (2) to covered athletic organizations, on a process for 
        certifying or recognizing credentialed athlete agents; and
            (3) on the establishment of an independent dispute 
        resolution process for disputes arising between a student 
        athlete and a covered athletic organization or an institution 
        of higher education.
    (b) Membership.--
            (1) In general.--The Commission shall consist of 13 members 
        appointed from among the following:
                    (A) Representatives of institutions of higher 
                education, including athletic directors and coaches.
                    (B) Individuals who are current or former student 
                athletes and who advocate for the interests of student 
                athletes.
                    (C) Administrators of covered athletic 
                organizations.
                    (D) Professionals with expertise in sports 
                marketing, contracting, and public relations.
                    (E) Individuals--
                            (i) with expertise in corporate governance; 
                        and
                            (ii) who are not associated with a covered 
                        athletic organization or institution of higher 
                        education.
            (2) Student athlete advocates.--At least 2 individuals 
        described in paragraph (1)(B) shall be appointed to the 
        Commission.
    (c) Appointment.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, 12 members of the Commission shall 
        be appointed as follows:
                    (A) 3 members appointed by the Speaker of the House 
                of Representatives.
                    (B) 3 members appointed by the minority leader of 
                the House of Representatives.
                    (C) 3 members appointed by the majority leader of 
                the Senate.
                    (D) 3 members appointed by the minority leader of 
                the Senate.
            (2) Chair.--
                    (A) Appointment.--Not later than 60 days after the 
                appointment of the initial 12 members of the Commission 
                under paragraph (1), 1 member shall be appointed to the 
                Commission by such members, upon agreement of 8 such 
                members on the individual to be appointed.
                    (B) Result of inability to reach agreement.--If 
                agreement on an individual to be appointed as a member 
                of the Commission under subparagraph (A) is not reached 
                during the time period described in that subparagraph, 
                the Speaker of the House of Representatives shall make 
                the appointment of such member.
                    (C) Position as chair of the commission.--The 
                member appointed to the Commission under this paragraph 
                shall be the chair of the Commission.
            (3) Diversity.--To the extent practicable, the individuals 
        making appointments under paragraphs (1) and (2) shall 
        coordinate their appointments to ensure that the Commission 
        reflects diversity with respect to gender, race, and sport of 
        association, as applicable, and shall prioritize the 
        appointment of members unaffiliated with a division or 
        conference of a covered athletic organization.
    (d) Meetings and Quorum.--
            (1) Meeting at call of chair.--Meetings of the Commission 
        shall be held at the call of the chair of the Commission.
            (2) Quorum.--A meeting of the Commission may only be held 
        if there is a quorum of at least 7 members, including not fewer 
        than 2 members who are individuals described in subsection 
        (b)(1)(B).
    (e) Report.--Not later than 1 year after the Commission is 
constituted, and annually thereafter during the subsequent 2-year 
period, 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, and make available to the 
public, a report on the activities of the Commission that includes the 
recommendations made under subsection (a).
    (f) Sunset.--The Commission shall terminate on the date that is 60 
days after the date on which the Commission submits the final report 
required under subsection (e).

SEC. 4. 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 at the institution 
        and who is entering into an endorsement contract (as defined in 
        section 2 of the Sports Agent Responsibility and Trust Act (15 
        U.S.C. 7801)) or an agency contract (as defined in section 10 
        of the Student Athlete Level Playing Field Act), such 
        institution will not prohibit such student from entering into 
        such 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 this Act).''.

SEC. 5. PROHIBITING UNFAIR OR DECEPTIVE ACTS OR PRACTICES AGAINST 
              STUDENT ATHLETES.

    (a) Prohibiting Unfair or Deceptive Acts or 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 an applicable 
        student athlete) or an organization (including a sponsor) that 
        provides substantial financial assistance or services to the 
        athletic program of an educational institution or that promotes 
        a team or athletic program of an educational institution for 
        purposes of the substantial financial interest of the 
        individual or organization.'';
            (2) by inserting after section 3 the following new section:

``SEC. 3A. REGULATION OF UNFAIR OR DECEPTIVE ACTS OR 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 at a specific educational institution or 
group of such institutions, including that a booster may not orally or 
in writing enter into a contract or agreement with a prospective 
student athlete to provide the prospective student athlete with 
consideration for the use of the name, image, or likeness of the 
prospective student athlete until the prospective student athlete 
enrolls full time at the relevant institution.''; and
            (3) in section 5(a)(1), by inserting ``or by the engagement 
        of a booster in a practice that violates section 3A of this 
        Act'' after ``section 3 of this Act''.
    (b) Eligibility To Compete as a Student Athlete After Entering Into 
an Agency Contract.--
            (1) In general.--Section 3(b)(3) of the Sports Agent 
        Responsibility and Trust Act (15 U.S.C. 7802(b)(3)) is amended 
        by striking ``boldface type stating:'' and all that follows 
        through the end of the paragraph and inserting the following: 
        ``boldface type stating: `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 you are agreeing to be 
        represented by must notify the athletic director of the 
        educational institution at which you are enrolled, or another 
        individual responsible for the athletic programs at such 
        educational institution, that you have entered into an agency 
        contract. Such notification must be made within 72 hours after 
        entering into the agreement or before the next athletic event 
        in which you are eligible to participate, whichever occurs 
        first.'.''.
            (2) Clearinghouse.--
                    (A) Establishment.--Not later than 180 days after 
                the date of the enactment of this Act, the Federal 
                Trade Commission shall establish a clearinghouse for 
                endorsement contracts entered into by student athletes 
                and athlete agents who represent student athletes.
                    (B) Agreement disclosure required.--
                            (i) In general.--The Federal Trade 
                        Commission shall require each student athlete 
                        and each athlete agent who represents student 
                        athletes to disclose to the clearinghouse 
                        established under subparagraph (A) each 
                        endorsement contract entered into by such 
                        student athlete or such agent with a value of 
                        more than $500.
                            (ii) Timing.--Disclosure of a contract 
                        under clause (i) shall be made not later than 
                        72 hours after agreement on the contract.
                    (C) Notification of institutions.--The 
                Clearinghouse established under subparagraph (A) shall 
                notify the relevant institution of higher education 
                about each contract disclosed under this paragraph and 
                shall make such disclosures available to the public on 
                a regular basis.
    (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.), as amended by this Act, is further 
amended by inserting after section 6 the following new section:

``SEC. 6A. REPORT TO CONGRESS.

    ``Not later than 180 days after the date of the 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 investigations or enforcement actions brought by 
the Commission pursuant to this Act during the preceding 1-year period, 
including the number of complaints filed with the Commission pursuant 
to this Act during such period.''.

SEC. 6. REGISTRATION OF CERTAIN AGENTS.

    (a) Program.--Not later than 180 days after the date of the 
enactment of this Act, the Federal Trade Commission shall establish a 
program to register athlete agents for student athletes.
    (b) Registration Required.--Upon establishment of the program 
required under subsection (a), a person who enters into an agency 
contract with a student athlete shall register with the Federal Trade 
Commission as an athlete agent for student athletes.
    (c) No Cost for Registration.--The Federal Trade Commission may not 
charge a fee in relation to a registration under this section.
    (d) Enforcement by Federal Trade Commission.--
            (1) Unfair or deceptive acts or practices.--A violation of 
        subsection (b) shall be treated as a 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.
            (2) Powers of commission.--The Federal Trade Commission 
        shall enforce subsection (b) 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. Any person who violates such 
        subsection shall be subject to the penalties and entitled to 
        the privileges and immunities provided in the Federal Trade 
        Commission Act.
            (3) Rule of construction.--Nothing in this section may be 
        construed to limit the authority of the Federal Trade 
        Commission under any other provision of law.

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 an amendment made by this 
Act.

SEC. 8. RULES OF CONSTRUCTION.

    (a) Tax.--Nothing in this Act, or the amendments made by this Act, 
may be construed to affect the treatment of qualified scholarships 
under section 117 of the Internal Revenue Code of 1986.
    (b) Nondiscrimination.--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.--Nothing in this Act, or the amendments made by this 
Act, may be construed to provide a cause of action pursuant to the 
Sherman Act (15 U.S.C. 1 et seq.).
    (d) Employee Status.--Nothing in this Act, or the amendments made 
by this Act, may be construed to affect the employment status of a 
student athlete who enters into an endorsement contract with respect to 
a covered athletic organization or an 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 financial literacy with respect to 
        entering into endorsement contracts; 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) Agency contract.--The term ``agency contract'' means an 
        oral or written agreement under which a student athlete 
        authorizes a person to negotiate or solicit an endorsement 
        contract on behalf of the student athlete.
            (2) Athlete agent.--The term ``athlete agent'' has the 
        meaning given that term in section 2 of the Sports Agent 
        Responsibility and Trust Act (15 U.S.C. 7801).
            (3) Covered athletic organization.--The term ``covered 
        athletic organization'' means an athletic association, 
        conference, or other organization with authority over 
        intercollegiate athletics or that administers intercollegiate 
        athletics.
            (4) Endorsement contract.--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).
            (5) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (6) Student athlete.--The term ``student athlete'' has the 
        meaning given that term in section 2 of the Sports Agent 
        Responsibility and Trust Act (15 U.S.C. 7801).
                                 <all>