[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2495 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                S. 2495

To protect student athletes, ensure fair competition and compensation, 
    and preserve intercollegiate athletics, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 25, 2023

 Mr. Manchin (for himself and Mr. Tuberville) introduced the following 
 bill; which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To protect student athletes, ensure fair competition and compensation, 
    and preserve 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 ``Protecting Athletes, Schools, and 
Sports Act of 2023''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Agent.--The term ``agent'' means an athlete agent (as 
        defined in section 2 of the Sports Agent Responsibility and 
        Trust Act (15 U.S.C. 7801)).
            (2) Athletic department.--The term ``athletic department'' 
        means a department at an institution of higher education that 
        sponsors or conducts 1 or more varsity intercollegiate 
        athletics programs in which student athletes enrolled at the 
        institution of higher education compete in athletic contests 
        against student athletes enrolled at another institution of 
        higher education.
            (3) Booster.--The term ``booster'' means any individual or 
        entity that has--
                    (A) provided a donation--
                            (i) to an institution of higher education 
                        to obtain season tickets for any sport; or
                            (ii) to support the athletics program at an 
                        institution of higher education;
                    (B) participated in or has been a member of an 
                organization promoting in any way the varsity 
                intercollegiate athletics programs of an institution of 
                higher education; or
                    (C) made a financial contribution to the athletic 
                department, athletics foundation, collective, or 
                booster organization affiliated with an institution of 
                higher education.
            (4) Compensation.--The term ``compensation''--
                    (A) means any monetary or in-kind payment to a 
                student athlete; and
                    (B) does not include--
                            (i) grant-in-aid;
                            (ii) funds from any student assistance fund 
                        or academic enhancement fund affiliated with an 
                        institution of higher education that are 
                        available and distributed without regard to 
                        athletic ability for the purposes of assisting 
                        student athletes in meeting their financial 
                        needs, improving the welfare of student 
                        athletes, providing academic support for 
                        student athletes, or recognizing the academic 
                        achievement of student athletes, including by 
                        providing--
                                    (I) postgraduate scholarships;
                                    (II) school supplies;
                                    (III) benefits, such as travel 
                                expenses for student athletes, 
                                clothing, and magazine subscriptions; 
                                or
                                    (IV) payments incidental to 
                                athletics participation, such as the 
                                National Collegiate Athletic 
                                Association cost-of-attendance stipend;
                            (iii) awards for participation or 
                        achievement in intercollegiate athletics, such 
                        as qualifying for a bowl game, or payments for 
                        performance in the Olympics;
                            (iv) awards for future educational 
                        opportunities;
                            (v) premiums paid on behalf of a student 
                        athlete for loss-of-value insurance or 
                        disability insurance; or
                            (vi) travel funds for members of a student 
                        athlete's immediate family to attend sporting 
                        events of the student athlete.
            (5) Conference.--The term ``conference'' means an 
        organization that--
                    (A) has as members 2 or more institutions of higher 
                education;
                    (B) arranges or conducts season-long 
                intercollegiate athletic events to determine, among its 
                members, a champion in a particular intercollegiate 
                sport; and
                    (C) sets rules for varsity intercollegiate sports 
                competition among its members.
            (6) Grant-in-aid.--The term ``grant-in-aid'' means--
                    (A) tuition, room, board, books, fees, and personal 
                expenses paid or provided by an institution of higher 
                education up to the full cost of attendance;
                    (B) Federal Pell Grants and other State and Federal 
                grants unrelated to, and not awarded with respect to, 
                participation in varsity intercollegiate sports 
                competition;
                    (C) health insurance and the costs of health care 
                wholly or partly self-funded by the National Collegiate 
                Athletic Association, a conference, or an institution 
                of higher education;
                    (D) disability and loss of value insurance that is 
                wholly or partly self-funded by the National Collegiate 
                Athletic Association, a conference, or an institution 
                of higher education; and
                    (E) career counseling or job placement services 
                available to all students at an institution of higher 
                education.
            (7) Immediate family.--With respect to a student athlete, 
        the term ``immediate family'' means the 1 or more parents, 
        guardians, siblings, aunts, uncles, and grandparents of the 
        student athlete.
            (8) Institution of higher education.--The term 
        ``institution of higher education'' means an institution of 
        higher education as defined in section 101 of the Higher 
        Education Act of 1965 (20 U.S.C. 1001).
            (9) Name, image, or likeness.--The term ``name, image, or 
        likeness'' means a symbol, word, given name, surname, nickname, 
        design, or image (such as a photograph or video) that readily 
        identifies a student athlete.
            (10) Name, image, or likeness contract.--The term ``name, 
        image, or likeness contract'' means an agreement under which a 
        student athlete receives compensation from a third party for 
        the use of the publicity received by, or the reputation, 
        following, or fame of, the student athlete.
            (11) National collegiate athletic association.--The term 
        ``National Collegiate Athletic Association'' means the National 
        Collegiate Athletic Association that functions as an authority 
        for intercollegiate athletics in the United States (or a 
        successor organization).
            (12) Prospective student athlete.--The term ``prospective 
        student athlete'' means an individual who--
                    (A) is attending, and has not yet graduated from, 
                an elementary school or a secondary school (as such 
                terms are defined in section 8101 of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7801)); and
                    (B) participates in a sports program.
            (13) Student athlete.--The term ``student athlete'' means 
        an individual who engages or is eligible to engage in 
        intercollegiate athletics.
            (14) Third party.--The term ``third party'' means--
                    (A) a person, other than an institution of higher 
                education or a student athlete, that--
                            (i) offers, solicits, or enters into a 
                        name, image, or likeness contract; or
                            (ii) offers or provides name, image, or 
                        likeness compensation;
                    (B) an entity that is affiliated with an 
                institution of higher education, yet operates 
                independently of the institution of higher education, 
                that generates funding to support opportunities for 
                student athletes to enter into name, image, or likeness 
                contracts; or
                    (C) an entity that is, refers to itself as, or is 
                colloquially referred to as, a collective.
            (15) Transfer portal.--The term ``transfer portal'' means a 
        process managed by the National Collegiate Athletic Association 
        that facilitates the transfer of student athletes from one 
        institution of higher education to another institution of 
        higher education for the purpose of engaging, or being able to 
        engage in the future, in intercollegiate athletics.
            (16) Varsity intercollegiate athletics program.--The term 
        ``varsity intercollegiate athletics program'' means a sport 
        played at the intercollegiate level, administered by an 
        athletic department, for which eligibility requirements for 
        participation by student athletes are established by the 
        National Collegiate Athletic Association or a conference.
            (17) Varsity intercollegiate sports competition.--The term 
        ``varsity intercollegiate sports competition'' means a 
        competition--
                    (A) between or among student athletes; and
                    (B) involving 2 or more varsity intercollegiate 
                athletics programs sponsored by different institutions 
                of higher education.

SEC. 3. THIRD PARTIES.

    (a) In General.--A third party may only promote an intercollegiate 
athletics program, assist with recruiting, or assist with providing 
benefits to student athletes or the family members of student athletes 
if the third party is formally associated with an institution of higher 
education through a written contract pursuant to the normal policies of 
the institution of higher education.
    (b) Inducements.--
            (1) In general.--An individual, booster, or third party may 
        not offer or provide a prospective student athlete or a student 
        athlete with any compensation or benefit that is intended to 
        induce the prospective student athlete or student athlete to 
        enroll in or transfer to a particular institution of higher 
        education.
            (2) Rule of construction.--Nothing in this subsection may 
        be construed to prohibit an individual, booster, or third party 
        from offering or providing a bona fide grant that may be used 
        by a prospective student athlete or student athlete solely for 
        the payment of tuition, room and board, or other fees charged 
        by an institution of higher education for enrollment in an 
        academic program offered by the institution of higher 
        education.
    (c) Equal Representation.--A third party associated with an 
institution of higher education shall offer equal representation of, 
and provide equal services to, all student athletes in all 
intercollegiate athletics programs at the institution of higher 
education.

SEC. 4. TRANSFER PORTAL.

    (a) Role of National Collegiate Athletic Association.--The National 
Collegiate Athletic Association shall set forth rules relating to the 
transfer portal, including with respect to the 1 or more periods during 
which a student athlete may formally notify the institution of higher 
education in which the student athlete is enrolled of his or her intent 
to transfer to another institution of higher education.
    (b) Effect of Transfer.--
            (1) In general.--A student athlete enrolled at an 
        institution of higher education who transfers to another 
        institution of higher education shall be ineligible to 
        participate in any athletic competition sponsored by the 
        National Collegiate Athletic Association during the academic 
        year, beginning at the start of the fall semester and ending at 
        the end of an institution of higher education's final summer 
        session, in which the student athlete entered the transfer 
        portal.
            (2) Waiver for qualifying events or circumstances.--
                    (A) In general.--The National Collegiate Athletic 
                Association may waive the application of paragraph (1) 
                in the case of a student athlete--
                            (i) who has completed 3 years of athletics 
                        eligibility;
                            (ii) whose family member has died or has 
                        been diagnosed with a terminal illness;
                            (iii) whose primary position coach or head 
                        coach has voluntarily or involuntarily left the 
                        institution of higher education in which the 
                        student athlete was enrolled before the date on 
                        which the student athlete entered the transfer 
                        portal; or
                            (iv) who meets any other criteria, as 
                        determined by the National Collegiate Athletic 
                        Association.
                    (B) Criteria.--
                            (i) In general.--The National Collegiate 
                        Athletic Association may grant a waiver under 
                        subparagraph (A) only if, not later than 30 
                        days after the date on which a qualifying event 
                        or circumstance described in that subparagraph 
                        occurs, the student athlete concerned provides 
                        to the athletic department of his or her 
                        institution of higher education written 
                        documentation of the event or circumstance.
                            (ii) Verification.--The National Collegiate 
                        Athletic Association shall establish procedures 
                        for verifying the validity of the documentation 
                        provided under clause (i).
    (c) Certain Other Rules and Regulations.--This section shall 
supersede any National Collegiate Athletic Association rule or 
regulation related to transfer eligibility that is in effect on the 
date of the enactment of this Act.

SEC. 5. VALID NAME, IMAGE, OR LIKENESS CONTRACT.

    (a) In General.--A student athlete may only enter into a name, 
image, or likeness contract that--
            (1) is in writing and signed by each party;
            (2) includes the names of each party;
            (3) outlines the scope of work to be performed by the 
        student athlete;
            (4) states the timeline for the performance of such work;
            (5) states the compensation to be provided to the student 
        athlete;
            (6) describes the duration of the contract;
            (7) conforms with the format of a standard contract 
        template developed by the Federal Trade Commission;
            (8) takes effect after the date on which the student 
        athlete enrolls in an institution of higher education and 
        begins participation in intercollegiate athletics; and
            (9) is consistent with this Act.
    (b) Duration.--A student athlete may only enter into a name, image, 
or likeness contract if--
            (1) the student athlete is enrolled at an institution of 
        higher education during an academic term for which classes have 
        begun; and
            (2) the duration of the contract does not extend beyond the 
        period during which the student athlete is enrolled at an 
        institution of higher education.
    (c) Student Athlete Participation in Intercollegiate Athletics.--
            (1) In general.--Except as provided in paragraph (2), the 
        National Collegiate Athletic Association or an institution of 
        higher education may not prohibit a student athlete from 
        participating in intercollegiate athletics based on the student 
        athlete having entered into a name, image, or likeness 
        contract.
            (2) Limitations on name, image, or likeness contracts.--
                    (A) Contracts with certain persons and entities.--
                Notwithstanding paragraph (1), the National Collegiate 
                Athletic Association or an institution of higher 
                education may prohibit a student athlete who is 
                enrolled at the institution from participating in 
                intercollegiate athletics if the student athlete has 
                entered into a name, image, or likeness contract with 
                any person or entity related to or associated with the 
                development, promotion, production, distribution, 
                wholesaling, or retailing of--
                            (i) adult entertainment, sexually 
                        suggestive products, or sex-oriented products, 
                        services, conduct, imagery, or inferences;
                            (ii) alcohol products;
                            (iii) a casino or gambling, including 
                        sports betting and betting in connection with a 
                        video game or online game, or on a mobile 
                        device;
                            (iv) tobacco, marijuana, or electronic 
                        smoking products and devices;
                            (v) pharmaceuticals;
                            (vi) any dangerous or controlled substance;
                            (vii) drug paraphernalia;
                            (viii) weapons, including firearms and 
                        ammunition; or
                            (ix) any product, substance, or method that 
                        is prohibited in competition by the National 
                        Collegiate Athletic Association, a conference, 
                        or any other organization governing varsity 
                        intercollegiate sports competition.
                    (B) Apparel.--The National Collegiate Athletic 
                Association or an institution of higher education may 
                prohibit a student athlete from--
                            (i) wearing any item of clothing, shoes, or 
                        other gear with the insignia of any entity 
                        while wearing any athletic gear or uniform 
                        provided by an institution of higher education 
                        or otherwise competing in a varsity 
                        intercollegiate sports competition or athletic 
                        event sponsored by the institution of higher 
                        education at which the student athlete is 
                        enrolled; and
                            (ii) using, without the express permission 
                        of the institution of higher education at which 
                        the student athlete is enrolled, the insignia, 
                        logo, or other intellectual property of the 
                        institution of higher education for any 
                        purpose.
            (3) Institutions of higher education.--An institution of 
        higher education may not enter into an advertising or 
        promotional contract with a person or entity described in 
        paragraph (2)(A) if the institution of higher education has 
        prohibited an enrolled student athlete from participating in 
        intercollegiate athletics for having entered into a name, 
        image, or likeness contract with such person or entity.
    (d) Prohibition.--An institution of higher education shall not--
            (1) prohibit a student athlete from entering into a name, 
        image, or likeness contract that complies with this Act, 
        including through a rule, standard, or policy that affects the 
        eligibility of the student to receive athletically related 
        student aid (as defined in section 485(e)(8) of the Higher 
        Education Act of 1965 (20 U.S.C. 1092(e))); or
            (2) provide or arrange compensation for the student athlete 
        for the use of the name, image, or likeness of the student or 
        for participation in intercollegiate athletics.

SEC. 6. TRANSPARENCY.

    (a) Student Athletes.--Not later than 30 days after entering into a 
name, image, or likeness contract, a student athlete shall disclose to 
the institution of higher education at which the student athlete is 
enrolled--
            (1) the existence of the contract;
            (2) the names of the parties to the contract;
            (3) the scope of work to be performed by the student 
        athlete under the contract and the corresponding timeline for 
        such work;
            (4) the compensation to be provided to the student athlete; 
        and
            (5) the duration of the contract.
    (b) Agents.--An agent representing a student athlete with respect 
to a name, image, or likeness contract shall--
            (1) register with the Federal Trade Commission; and
            (2) disclose to the Federal Trade Commission--
                    (A) the fee and compensation structure of the 
                agent;
                    (B) the scope of work to be performed by the agent; 
                and
                    (C) the duration of the contract.
    (c) Third Parties.--Each third party shall--
            (1) register with the Federal Trade Commission; and
            (2) disclose to the Federal Trade Commission and to each 
        institution of higher education that is a party to a written 
        contract with the third party--
                    (A) the existence of the contract;
                    (B) the names of the parties to the contract;
                    (C) the scope of work to be performed by the 
                student athlete under the contract and the 
                corresponding timeline for such work;
                    (D) the compensation to be provided to the student 
                athlete; and
                    (E) the duration of the contract.
    (d) Individuals and Boosters.--Any individual or booster seeking to 
enter into a name, image, or likeness contract shall--
            (1) register with the Federal Trade Commission; and
            (2) not later than 7 days before the date on which a name, 
        image, or likeness contract is executed, disclose to the 
        Federal Trade Commission--
                    (A) the existence of the contract;
                    (B) the names of the parties to the contract;
                    (C) the scope of work to be performed by the 
                student athlete under the contract and the 
                corresponding timeline for such work;
                    (D) the compensation to be provided to the student 
                athlete; and
                    (E) the duration of the contract.
    (e) Publication of Name, Image, or Likeness Data.--Not later than 
180 days after the date of the enactment of this Act, the Federal Trade 
Commission shall establish a publicly accessible internet website on 
which the Federal Trade Commission shall publish and frequently update 
anonymized and aggregated name, image, or likeness data.
    (f) Rule of Construction.--The disclosure of a name, image, or 
likeness contract to an institution of higher education or the National 
Collegiate Athletic Association may not be construed as an approval of 
the name, image, or likeness contract by the institution of higher 
education or the National Collegiate Athletic Association with respect 
to the legal requirements or the fairness of the economic terms of the 
name, image, or likeness contract.

SEC. 7. ADDITIONAL PROTECTIONS FOR STUDENT ATHLETES.

    (a) Educational Resources.--
            (1) National collegiate athletic association.--The National 
        Collegiate Athletic Association or its designee shall develop 
        and make available to student athletes educational resources 
        and information on the rights of student athletes with respect 
        to name, image, or likeness contracts and related legal and 
        regulatory matters.
            (2) Institutions of higher education.--Each institution of 
        higher education shall develop and make available to student 
        athletes educational resources and information consistent with 
        the educational resources and information developed under 
        paragraph (1).
    (b) Financial Literacy.--The National Collegiate Athletic 
Association or its designee shall develop, maintain, and conduct 
financial literacy and life skills programming for student athletes, 
which shall include--
            (1) information relating to financial aid and debt 
        management;
            (2) recommended model budgets for student athletes based on 
        the estimated cost of attendance for the academic year and any 
        grant-in-aid received by the student athlete; and
            (3) information relating to the potential tax implications 
        of entering into a name, image, or likeness contract.
    (c) Travel and Medical Expenses.--
            (1) Trust fund.--
                    (A) In general.--The organizers of any revenue-
                generating collegiate-level tournament or playoff shall 
                deposit not less than 1 percent of annual gross 
                revenues from such events into a trust fund (referred 
                to in this subsection as the ``Fund''), to be managed 
                in a manner determined by the National Collegiate 
                Athletic Association, for the purpose of covering the 
                costs of--
                            (i) in the case of a student athlete who is 
                        a dependent, travel to sporting events for 
                        members of the immediate family of the student 
                        athlete; and
                            (ii) in the case of a former student 
                        athlete, all out-of-pocket medical expenses of 
                        such athlete that are not covered under 
                        paragraph (2)(B), until the later of--
                                    (I) the date on which such athlete 
                                attains the age of 28 years; or
                                    (II) 8 years after the date on 
                                which the eligibility of such athlete 
                                for intercollegiate athletics expired.
                    (B) Eligibility of former student athletes.--To be 
                eligible to receive amounts from the Fund under 
                subparagraph (A)(ii), a former student athlete shall--
                            (i) not later than 7 days after the date on 
                        which the last regular season of the sport of 
                        such athlete ends, complete an exit physical 
                        examination with the institution of higher 
                        education; and
                            (ii) graduate from the institution of 
                        higher education at which such was enrolled 
                        during such last regular season.
            (2) Medical expenses.--
                    (A) Responsibility of institution of higher 
                education to provide health care coverage for student 
                athletes.--An institution of higher education shall 
                provide or procure health care coverage for each 
                student athlete enrolled at the institution of higher 
                education during any academic year in which the student 
                athlete participates in intercollegiate athletics.
                    (B) Payment of out-of-pocket medical expenses for 
                student athletes and former student athletes.--
                            (i) Institutions reporting less than 
                        $20,000,000.--An institution of higher 
                        education that reports less than $20,000,000 in 
                        total annual athletics revenue to the 
                        Department of Education during an academic year 
                        shall be, during the enrollment of a student 
                        athlete at the institution of higher education, 
                        financially responsible for all out-of-pocket 
                        medical expenses of the student athlete's 
                        health care coverage for any injury or 
                        communicable disease incurred or acquired while 
                        the student athlete was participating in an 
                        intercollegiate athletic event or a varsity 
                        intercollegiate athletic competition.
                            (ii) Institutions reporting $20,000,000 or 
                        more.--An institution of higher education that 
                        reports not less than $20,000,000 in total 
                        annual athletics revenue to the Department of 
                        Education during an academic year shall be, 
                        during the enrollment of a student athlete at 
                        the institution of higher education and the 2-
                        year period beginning on the day after the last 
                        varsity intercollegiate sports competition of 
                        the student athlete, financially responsible 
                        for all out-of-pocket medical expenses of the 
                        student athlete's health care coverage for any 
                        injury or communicable disease that was 
                        incurred or acquired while the student athlete 
                        was participating in an intercollegiate 
                        athletic event or a varsity intercollegiate 
                        athletic competition.
                            (iii) Institutions reporting $50,000,000 or 
                        more.--An institution of higher education that 
                        reports not less than $50,000,000 in total 
                        annual athletics revenue to the Department of 
                        Education during an academic year shall be, 
                        during the enrollment of a student athlete at 
                        the institution of higher education and the 4-
                        year period beginning on the day after the last 
                        varsity intercollegiate sports competition of 
                        the student athlete, financially responsible 
                        for all out-of-pocket medical expenses of the 
                        student athlete's health care coverage for any 
                        injury or communicable disease incurred or 
                        acquired while the student athlete was 
                        participating in an intercollegiate athletic 
                        event or varsity intercollegiate sports 
                        competition.
                    (C) Second opinions.--
                            (i) Student athletes.--During the 
                        enrollment of a student athlete at an 
                        institution of higher education, an institution 
                        of higher education shall be financially 
                        responsible for the expense of obtaining for 
                        the student athlete medical second opinions 
                        independent from the institution of higher 
                        education.
                            (ii) Former student athletes.--
                                    (I) In general.--In the case of an 
                                institution of higher education 
                                described in clause (ii) or (iii) of 
                                subparagraph (B), continuing through 
                                the 2-year period described in clause 
                                (ii) or the 4-year period described in 
                                clause (iii), respectively, the 
                                institution of higher education shall 
                                be financially responsible for the 
                                expense of obtaining, for former 
                                student athletes, medical second 
                                opinions independent from the 
                                institution of higher education.
                                    (II) Institutions reporting less 
                                than $20,000,000.--In the case of an 
                                institution of higher education 
                                described in clause (i), during any 
                                period not exceeding 4 years beginning 
                                on the day after the last varsity 
                                intercollegiate sports competition of a 
                                student athlete that is not covered 
                                under subclause (I), the Fund shall be 
                                financially responsible for the expense 
                                of obtaining, for former student 
                                athletes, medical second opinions 
                                independent from the institution of 
                                higher education.
                    (D) Exception.--The responsibilities of an 
                institution of higher education under subparagraphs (A) 
                through (C) shall not apply to an institution of higher 
                education in the case of a student athlete who 
                transfers out of the institution of higher education to 
                continue participation in intercollegiate athletics 
                elsewhere.
    (d) Grant-in-Aid Protection.--
            (1) In general.--Except as otherwise provided in this Act, 
        an institution of higher education may not revoke, reduce, or 
        impose a condition on the grant-in-aid of a student athlete 
        based on the student athlete having entered into a permissible 
        name, image, or likeness contract or having been injured.
            (2) Original grant-in-aid commitment.--
                    (A) In general.--Subject to subparagraph (B), an 
                institution of higher education shall honor the 
                original grant-in-aid commitment made by the 
                institution of higher education to a student athlete.
                    (B) Effect of transfer.--In the case of a student 
                athlete who transfers from one institution of higher 
                education to another institution of higher education, 
                subparagraph (A)--
                            (i) shall not apply to the former 
                        institution of higher education of the student 
                        athlete; and
                            (ii) shall apply to the new institution of 
                        higher education to which the student athlete 
                        transfers.
                    (C) Former student athletes.--Grant-in-aid provided 
                to a former student athlete--
                            (i) may not count against athlete 
                        scholarship caps; and
                            (ii) may be provided through the general 
                        financial aid budget of an institution of 
                        higher education.
            (3) Rule of construction.--Nothing in this subsection may 
        be construed to prohibit an institution of higher education 
        from revoking the grant-in-aid of a student athlete or former 
        student athlete who does not remain in good standing in 
        accordance with the standards or code of conduct of the 
        institution of higher education.

SEC. 8. ENFORCEMENT.

    (a) Unfair or Deceptive Acts or Practices.--A violation under 
section 3 or 6 of this Act shall be treated as an unfair or deceptive 
act or practice under section 5(a)(1) of the Federal Trade Commission 
Act (15 U.S.C. 45(a)(1)).
    (b) Powers of the Federal Trade Commission.--
            (1) In general.--The Federal Trade Commission shall enforce 
        section 3 and 6 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 part 
        of this Act.
            (2) Privileges and immunities.--Any person who violates 
        this Act shall be subject to the penalties and entitled to the 
        privileges and immunities provided in the Federal Trade 
        Commission Act (15 U.S.C. et seq.).
            (3) Rules of construction.--
                    (A) No power to prescribe rules.--Nothing in this 
                Act or any other provision of Federal law may be 
                construed to authorize or permit the Federal Trade 
                Commission to prescribe or promulgate any rule or 
                regulation with respect to any act, practice, or 
                conduct under by this Act.
                    (B) Authority preserved.--Nothing in this section 
                shall be construed to limit the authority of the 
                Federal Trade Commission under any other provision of 
                law.
    (c) Prohibiting Unfair and Deceptive Practices by Third Parties.--
The Sports Agent Responsibility and Trust Act (15 U.S.C. 7801 et seq.) 
is amended--
            (1) in section 2 (15 U.S.C. 7801)--
                    (A) by redesignating paragraphs (4), (5), (6), (7), 
                (8), and (9) as paragraphs (5), (6), (8), (9), (10), 
                and (11), respectively;
                    (B) by inserting after paragraph (3) the following 
                new paragraph:
            ``(4) Booster.--The term `booster' means any individual or 
        entity that has--
                    ``(A) provided a donation--
                            ``(i) to an institution of higher education 
                        to obtain season tickets for any sport; or
                            ``(ii) to support the athletics program at 
                        an institution of higher education;
                    ``(B) participated in or has been a member of an 
                organization promoting in any way the varsity 
                intercollegiate athletics programs of an institution of 
                higher education; or
                    ``(C) made a financial contribution to the athletic 
                department, athletics foundation, collective, or 
                booster organization affiliated with an institution of 
                higher education.'';
                    (C) by inserting after paragraph (6), as 
                redesignated, the following:
            ``(7) Institution of higher education.--The term 
        `institution of higher education' means an institution of 
        higher education as defined in section 101 of the Higher 
        Education Act of 1965 (20 U.S.C. 1001).''; and
                    (D) by adding at the end the following:
            ``(12) Third party.--The term `third party' means--
                    ``(A) a person, other than an institution of higher 
                education or a student athlete, that--
                            ``(i) offers, solicits, or enters into a 
                        name, image, or likeness contract; or
                            ``(ii) offers or provides name, image, or 
                        likeness compensation;
                    ``(B) an entity that is affiliated with an 
                institution of higher education, yet operates 
                independently of the institution of higher education, 
                that generates funding to support opportunities for 
                student athletes to enter into name, image, or likeness 
                contracts; or
                    ``(C) an entity that is, refers to itself as, or is 
                colloquially referred to as, a collective.'';
            (2) by inserting after section 3 (15 U.S.C. 7802) the 
        following:

``SEC. 3A. REGULATION OF BOOSTERS AND THIRD PARTIES.

    ``It is unlawful for a booster or a third party to directly or 
indirectly provide or offer to provide any funds or thing of value as 
an inducement to a student athlete to enroll in, transfer from, or 
remain at a specific institution of higher education or group of 
institutions of higher education.''; and
            (3) in section 5(a)(1) (15 U.S.C. 7804(a)(1)), by inserting 
        ``or by the engagement of any booster or third party in a 
        practice that violates section 3A of this Act'' after ``section 
        3 of this Act''.
    (d) Eligibility To Compete as a Student Athlete After Entering Into 
a Name, Image, or Likeness Contract.--Section 3(b)(3) of the Sports 
Agent Responsibility and Trust Act (15 U.S.C. 7802(b)(3)) is amended by 
striking ``Warning to Student Athlete:'' and inserting ``Notice to 
Student Athlete: If you agree orally or in writing to be represented by 
an agent now or in the future, or enter into a name, image, or likeness 
contract, you, the agent by whom you are agreeing to be represented, 
and any other booster or third party must notify the institution of 
higher education in which you are enrolled that you have entered into 
an agency or name, image, or likeness contract. Warning to Student 
Athlete:''.

SEC. 9. NATIONAL COLLEGIATE ATHLETIC ASSOCIATION.

    (a) Duties.--The National Collegiate Athletic Association or its 
designee shall--
            (1) establish--
                    (A) rules to govern and provide oversight of 
                institutions of higher education, including the duties 
                of institutions of higher education under section 7; 
                and
                    (B) a process by which such rules may be enforced;
            (2) establish and maintain processes--
                    (A) by which third parties shall register with the 
                National Collegiate Athletic Association; and
                    (B) for regulating third parties;
            (3) establish and maintain a mechanism for certifying and 
        regulating third parties that provide compensation to student 
        athletes under name, image, or likeness contracts;
            (4) develop and maintain--
                    (A) a list of permissible activities for registered 
                third parties;
                    (B) a uniform standard name, image, or likeness 
                contract for use in all name, image, or likeness 
                activities; and
                    (C) the educational resources described in 
                subsection (a) of section 7 and the financial literacy 
                curriculum and programming described in subsection (b) 
                of that section; and
            (5) establish a dispute resolution process for student 
        athletes who assert a violation of this Act, under which a 
        student athlete may select arbitration.
    (b) Authority.--
            (1) Investigations and audits.--The National Collegiate 
        Athletic Association shall--
                    (A) conduct investigations and audits to assess 
                compliance with this Act; and
                    (B) not less frequently than annually, submit to 
                the Committee on Commerce, Science, and Transportation 
                of the Senate and the Committee on Energy and Commerce 
                of the House of Representatives an annual report with 
                respect to such compliance.
            (2) Penalties.--In the case of a violation of this Act or a 
        potential violation of any other Federal law by an agent, third 
        party, institution of higher education, conference, or student 
        athlete, the National Collegiate Athletic Association may--
                    (A) revoke licenses to participate in name, image, 
                or likeness activities;
                    (B) with respect to a violation of this Act, refer 
                the matter to the Federal Trade Commission as an unfair 
                and deceptive act or practice for enforcement; and
                    (C) with respect to a violation of any other 
                Federal law, refer the matter to the appropriate 
                Federal agency for enforcement.
            (3) Limitation.--The National Collegiate Athletic 
        Association shall not have the authority to approve name, 
        image, or likeness contracts for legality or appropriateness.
    (c) Noncompliance.--In the case of a failure by the National 
Collegiate Athletic Association to carry out the duties under this 
section, the Federal Trade Commission may commence an investigation of 
such failure and impose penalties, including--
            (1) a penalty for an unfair and deceptive act or practice; 
        and
            (2) revocation of tax-exempt status.
    (d) Report.--Not later than 1 year after the date of the enactment 
of this Act, and annually thereafter, the Federal Trade Commission 
shall submit to the Committee on Commerce, Science, and Transportation 
of the Senate and the Committee on Energy and Commerce of the House of 
Representatives a report that summarizes any investigation or 
enforcement action brought by the Federal Trade Commission or the 
National Collegiate Athletic Association under this Act during the 
preceding year, including the number of complaints filed with the 
Federal Trade Commission under this Act.
    (e) Disclosure.--The disclosure of a name, image, or likeness 
contract to the National Collegiate Athletic Association may not be 
construed as an approval by the National Collegiate Athletic 
Association of the contract with respect to the legal requirements of 
the contract.

SEC. 10. LIMITATION OF LIABILITY.

    No agreement, understanding, rule, or bylaw adopted by a 
conference, the National Collegiate Athletic Association, or a 
combination of 2 or more institutions of higher education acting in 
concert that is authorized, consistent with, or reasonably contemplated 
by any provision of this Act shall be invalid or a basis for liability 
under or pursuant to any Federal or State law upon enactment of this 
Act.

SEC. 11. RELATIONSHIP TO STATE LAW.

    (a) State Preemption.--No State or political subdivision of a State 
may adopt, maintain, enforce, or continue in effect any law, 
regulation, rule, requirement, or standard that--
            (1) conflicts with the provisions of this Act;
            (2) limits or restricts the rights of student athletes, the 
        National Collegiate Athletic Association, conferences, or 
        institutions of higher education under this Act; or
            (3) relates to the rights of student athletes to receive 
        compensation directly or indirectly from any institution of 
        higher education, affiliate of an institution of higher 
        education, third party, conference, or the National Collegiate 
        Athletic Association.
    (b) Nondiscrimination of Student Athletes.--No State or political 
subdivision of a State may establish or continue in effect any law, 
regulation, rule, requirement, or standard that is inconsistent with 
title IX of the Higher Education Act of 1972 (20 U.S.C. 1681 et seq.), 
including any law, regulation, rule, requirement, or standard that 
provides for the payment of student athletes participating in a varsity 
intercollegiate athletics program based on a share of annual revenue 
generated by that particular sports program.

SEC. 12. RULES OF CONSTRUCTION.

    (a) Tax Provisions.--Nothing in this Act or the amendments made by 
this Act shall affect the treatment of qualified scholarships under 
section 117 of the Internal Revenue Code of 1986.
    (b) Classification of Student Athletes.--Nothing in this Act or the 
amendments made by this Act shall affect the employment status of a 
student athlete with respect to a conference or an institution of 
higher education.
                                 <all>