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