[House Report 119-270]
[From the U.S. Government Publishing Office]
119th Congress } { Rept. 119-270
HOUSE OF REPRESENTATIVES
1st Session } { Part 1
=======================================================================
STUDENT COMPENSATION AND OPPORTUNITY THROUGH
RIGHTS AND ENDORSEMENTS ACT
----------------
September 11, 2025.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
----------------
Mr. Guthrie, from the Committee on Energy and Commerce,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 4312]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 4312) to protect the name, image, and likeness
rights of student athletes and to promote fair competition with
respect to intercollegiate athletics, and for other purposes,
having considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 11
Background and Need for Legislation.............................. 11
Committee Action................................................. 13
Committee Votes.................................................. 13
Oversight Findings and Recommendations........................... 16
New Budget Authority, Entitlement Authority, and Tax Expenditures 16
Congressional Budget Office Estimate............................. 16
Federal Mandates Statement....................................... 16
Statement of General Performance Goals and Objectives............ 16
Duplication of Federal Programs.................................. 16
Related Committee and Subcommittee Hearings...................... 16
Committee Cost Estimate.......................................... 17
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 17
Advisory Committee Statement..................................... 17
Applicability to Legislative Branch.............................. 17
Section-by-Section Analysis of the Legislation................... 17
Changes in Existing Law Made by the Bill, as Reported............ 21
Minority, Additional, or Dissenting Views........................ 68
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Student Compensation and Opportunity
through Rights and Endorsements Act'' or the ``SCORE Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Agent.--The term ``agent'' means an individual who
receives compensation to represent a student athlete with
respect to--
(A) a name, image, and likeness agreement; or
(B) another agreement for compensation related to the
participation of such student athlete on a varsity
sports team.
(2) Antitrust laws.--The term ``antitrust laws'' has the
meaning given such term in the 1st section of the Clayton Act
(15 U.S.C. 12) and includes section 5 of the Federal Trade
Commission Act (15 U.S.C. 45) to the extent that such section 5
applies to unfair methods of competition.
(3) Associated entity or individual.--The term ``associated
entity or individual'' means, with respect to an institution,
each of the following:
(A) An entity that is known or should be known to the
employees of the athletic department of such
institution to exist, in significant part, for the
purpose of--
(i) promoting or supporting the varsity
sports teams or student athletes of such
institution; or
(ii) creating or identifying opportunities
relating to name, image, and likeness
agreements solely for the student athletes of
such institution.
(B) An individual who is or has been a member,
employee, director, officer, owner, or other
representative of an entity described in subparagraph
(A).
(C) An individual who directly or indirectly
(including through contributions by an entity
affiliated with such individual or an immediate family
member of such individual) has contributed more than
$50,000 (as adjusted on July 1 each year by the
percentage increase (if any), during the preceding 12-
month period, in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics)
over the lifetime of the individual to the athletic
programs of such institution or to an entity described
in subparagraph (A).
(D) An individual or entity who--
(i) is directed or requested by the employees
of the athletic department of such institution
to assist in the recruitment or retention of
prospective student athletes or student
athletes, respectively; or
(ii) otherwise assists in such recruitment or
retention.
(E) Any entity (other than a publicly traded
corporation) owned, controlled, operated by, or
otherwise affiliated with an individual or entity
described in subparagraph (A), (B), (C), or (D).
(4) College sports revenue.--The term ``college sports
revenue'' means any revenue (without regard to ownership or
legal title to such revenue) received by an institution with
respect to intercollegiate athletics--
(A) from the sale of admission to intercollegiate
athletic competitions or any other event involving a
varsity sports team, including actual monetary revenue
received by or for the benefit of such institution for
a suite license (unless such suite license is
associated with philanthropy or any purpose not related
to intercollegiate athletic competitions, including a
concert);
(B) from participation by the varsity sports teams of
such institution in intercollegiate athletic
competitions held at other institutions, including
payments received due to cancellations of such
intercollegiate athletic competitions;
(C) for radio, television, internet, digital, and e-
commerce rights, including revenue relating to media
rights distributed by a conference to members of the
conference, if applicable;
(D) from an interstate intercollegiate athletic
association, including any grant, distribution of
revenue, reimbursement relating to travel with respect
to a championship of such interstate intercollegiate
athletic association, and payment for hosting such a
championship;
(E) generated by a post-season football bowl,
including any distribution of revenue by a conference
to members of the conference and any other payment
related to the participation of such institution in
such post-season football bowl, including for ticket
sales and reimbursement of expenses;
(F) from a conference, other than any revenue
otherwise described in this paragraph;
(G) for sponsorships, licensing agreements,
advertisements, royalties, and in-kind products and
services as part of a sponsorship agreement; or
(H) relating to any additional form of revenue,
including fundraising, an interstate intercollegiate
athletic association uses with respect to the pool
limit of such interstate intercollegiate athletic
association.
(5) Compensation.--The term ``compensation''--
(A) means, with respect to a student athlete or a
prospective student athlete, any form of payment or
remuneration, whether provided through cash, benefits,
awards, or any other means, including payments for--
(i) licenses relating to, or the use of,
name, image, and likeness rights; or
(ii) licenses relating to, or the use of, any
other Federal or State intellectual or
intangible property right; and
(B) does not include--
(i) grants-in-aid;
(ii) Federal Pell Grants and other Federal or
State grants unrelated to and not awarded with
regard to participation in intercollegiate
athletics;
(iii) health insurance and payments for the
costs of health care, including health
insurance and payments for the costs of health
care wholly or partly self-funded by an
institution, conference, or interstate
intercollegiate athletic association;
(iv) disability and loss-of-value insurance,
including disability and loss-of-value
insurance that is wholly or partly self-funded
by an institution, conference, or interstate
intercollegiate athletic association;
(v) career counseling, job placement
services, and other guidance 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 going rate in the
locality of an institution for similar work;
(vii) academic awards paid to student
athletes by institutions;
(viii) provision of financial literacy or tax
education resources and guidance; or
(ix) any program to connect student athletes
with employers and facilitate employment
opportunities, if--
(I) the financial terms of such
employment opportunities are consistent
with the terms offered to similarly
situated employees who are not student
athletes; and
(II) such program is not used to
induce a student athlete to attend a
particular institution.
(6) Conference.--The term ``conference'' means an entity
that--
(A) has as members 2 or more institutions;
(B) arranges regular season intercollegiate athletic
competitions and championships for such members; and
(C) sets rules with respect to such intercollegiate
athletic competitions and championships.
(7) Cost of attendance.--The term ``cost of attendance'' has
the meaning given such term in section 472 of the Higher
Education Act of 1965 (20 U.S.C. 1087ll).
(8) Grant-in-aid.--The term ``grant-in-aid'' means a
scholarship, grant, stipend, or other form of financial
assistance, including the provision of tuition, room, board,
books, or funds for fees or personal expenses, that--
(A) is paid or provided by an institution to a
student for the undergraduate or graduate course of
study of the student; and
(B) is in an amount that does not exceed the cost of
attendance at the institution for such student.
(9) Image.--The term ``image'' means, with respect to a
student athlete, a picture or a video that identifies, is
linked to, or is reasonably linkable to such student athlete.
(10) Institution.--The term ``institution'' has the meaning
given the term ``institution of higher education'' in section
102 of the Higher Education Act of 1965 (20 U.S.C. 1002).
(11) Intercollegiate athletic competition.--The term
``intercollegiate athletic competition'' means any contest,
game, meet, match, tournament, regatta, or other event in which
varsity sports teams of more than 1 institution compete.
(12) Intercollegiate athletics.--The term ``intercollegiate
athletics''--
(A) means the varsity sports teams for which the
length of time a student athlete is eligible to
participate and the academic standards for
participation are established by a conference or an
interstate intercollegiate athletic association; and
(B) does not include any recreational, intramural, or
club teams.
(13) Interstate intercollegiate athletic association.--The
term ``interstate intercollegiate athletic association''
means--
(A) any entity that--
(i) sets common rules, standards, procedures,
or guidelines for the administration and
regulation of varsity sports teams and
intercollegiate athletic competitions;
(ii) is composed of 2 or more institutions or
conferences located in more than 1 State; and
(iii) has rules or bylaws prohibiting the
provision of prohibited compensation to student
athletes and prospective student athletes; and
(B) does not include any entity affiliated with
professional athletic competitions.
(14) Likeness.--The term ``likeness'' means, with respect to
a student athlete, a physical or digital depiction or
representation that identifies, is linked to, or is reasonably
linkable to such student athlete.
(15) Name.--The term ``name'' means, with respect to a
student athlete, the first, middle, or last name, or the
nickname or former name, of such student athlete if used in a
context that identifies, is linked to, or is reasonably
linkable to such student athlete.
(16) Name, image, and likeness agreement.--The term ``name,
image, and likeness agreement'' means a contract or similar
agreement under which a student athlete licenses or authorizes,
or a contract or similar agreement that otherwise is in
relation to, the commercial use of the name, image, or likeness
of the student athlete.
(17) Name, image, and likeness rights.--The term ``name,
image, and likeness rights'' means rights recognized under
Federal or State law that allow an individual to control and
profit from the commercial use of the name, image, and likeness
of such individual, including all rights commonly referred to
as ``publicity rights''.
(18) Pool limit.--The term ``pool limit'' means a dollar
amount based on college sports revenue that--
(A) is calculated and published by an interstate
intercollegiate athletic association pursuant to the
rules the interstate intercollegiate athletic
association establishes under section 6; and
(B) serves as the annual maximum amount that an
institution that is a member of such interstate
intercollegiate athletic association may provide, in
total, to student athletes of such institution,
including in the form of a name, image, and likeness
agreement or direct payment.
(19) Prohibited compensation.--The term ``prohibited
compensation'' means--
(A) compensation (including an agreement for
compensation) to a student athlete from an associated
entity or individual of the institution at which the
student athlete is enrolled (or to a prospective
student athlete from an associated entity or individual
of an institution for which the prospective student
athlete is being recruited) for any license or use of
the name, image, and likeness rights of such student
athlete or prospective student athlete (or any other
license or use), unless the license or use is for a
valid business purpose related to the promotion or
endorsement of goods or services provided to the
general public for profit, with compensation at rates
and terms commensurate with compensation paid to
individuals with name, image, and likeness rights of
comparable value who are not student athletes or
prospective student athletes with respect to such
institution; and
(B) compensation to a student athlete (or a
prospective student athlete) if such compensation is
paid by or on behalf of the institution at which the
student athlete is enrolled (or for which the
prospective student athlete is being recruited) and
results in the exceeding of the pool limit established
by the interstate intercollegiate athletic association
of which such institution is a member.
(20) Prospective student athlete.--The term ``prospective
student athlete'' means an individual who is solicited to
enroll at an institution by, or at the direction of, an
employee or an associated entity or individual of the
institution in order for such individual to participate in a
varsity sports team of such institution.
(21) State.--The term ``State'' means each State of the
United States, the District of Columbia, and each commonwealth,
territory, or possession of the United States.
(22) Student athlete.--The term ``student athlete'' means an
individual who--
(A) is enrolled or has agreed to enroll at an
institution; and
(B) participates in a varsity sports team of such
institution.
(23) Varsity sports team.--The term ``varsity sports team''
means an entity composed of an individual or group of
individuals enrolled at an institution that is organized by
such institution for the purpose of participation in
intercollegiate athletic competitions.
SEC. 3. PROTECTION OF NAME, IMAGE, AND LIKENESS RIGHTS OF STUDENT
ATHLETES.
(a) Right To Enter Into Name, Image, and Likeness Agreements.--
(1) In general.--No institution, conference, or interstate
intercollegiate athletic association may restrict the ability
of a student athlete to enter into a name, image, and likeness
agreement.
(2) Exceptions.--
(A) Prohibited compensation.--Paragraph (1) does not
apply with respect to a name, image, and likeness
agreement to the extent such agreement provides
prohibited compensation.
(B) Codes of conduct and conflicting agreements.--
Notwithstanding paragraph (1), an institution may
restrict the ability of a student athlete of such
institution (including a prospective student athlete
who has agreed to attend such institution) to enter
into a name, image, and likeness agreement that--
(i) violates the code of conduct of such
institution; or
(ii) conflicts with the terms of a contract
or similar agreement to which such institution
is a party.
(b) Right to Representation.--Except as provided by this Act, no
institution, conference, or interstate intercollegiate athletic
association may restrict the ability of a student athlete to obtain an
agent.
(c) Right to Privacy.--Except as provided by this Act, no
institution, conference, or interstate intercollegiate athletic
association may release information with respect to a name, image, and
likeness agreement without the express written consent of any student
athlete who is a party to such agreement.
(d) Right to Transparent Agreements.--A name, image, and likeness
agreement under which a student athlete is provided compensation in an
amount greater than $600 shall be considered void from the inception of
such agreement if such agreement does not satisfy the following:
(1) The agreement is in writing.
(2) The agreement contains the following:
(A) A description of any services to be rendered
under the agreement.
(B) The names of the parties to the agreement.
(C) The term of the agreement.
(D) The amount of compensation to be provided to the
student athlete under the agreement.
(E) A provision specifying the circumstances or
events under which the agreement may be terminated due
to non-performance of obligations by the student
athlete.
(F) A provision specifying that the student athlete
may terminate the agreement, notwithstanding any other
term described in the agreement, beginning on the date
that is 6 months after the date on which the student
athlete is no longer enrolled at any institution.
(G) The signature of the student athlete or, if the
student athlete is under the age of 18 years, the
signature of the parent or guardian of the student
athlete.
(e) Actions by States.--In any case in which the attorney general of
a State, or an official or agency of a State, has reason to believe
that an interest of the residents of such State has been or is
threatened or adversely affected by an act or practice in violation of
this section, the State, as parens patriae, may bring a civil action on
behalf of the residents of the State in an appropriate State court or
an appropriate district court of the United States to--
(1) enjoin such act or practice;
(2) enforce compliance with this section;
(3) obtain damages, restitution, or other compensation on
behalf of residents of the State; or
(4) obtain such other legal and equitable relief as the court
may consider to be appropriate.
SEC. 4. SPORTS AGENT RESPONSIBILITY AND TRUST ACT.
The Sports Agent Responsibility and Trust Act (15 U.S.C. 7801 et
seq.) is amended--
(1) in section 3(a)--
(A) by redesignating paragraphs (2) and (3) as
paragraphs (4) and (5), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) charge a student athlete a fee with respect to an
endorsement contract that is in an amount that is greater than
5 percent of the amount of the compensation provided to such
student athlete under such contract;
``(3) enter into an agency contract with a student athlete
that does not include a provision specifying that the student
athlete may terminate the agency contract, notwithstanding any
other term described in the agency contract, beginning on the
date that is 6 months after the date on which the student
athlete is no longer enrolled at any institution (as defined in
section 2 of the SCORE Act);'';
(2) in section 3(b)(3), by striking ``Warning to Student
Athlete: If you agree orally or in writing to be represented by
an agent now or in the future you may lose your eligibility to
compete as a student athlete in your sport.'' and inserting
``Notice to Student Athlete:''; and
(3) by adding at the end the following:
``SEC. 9. DISCLOSURE AND CONSENT RELATING TO NAME, IMAGE, AND LIKENESS
AGREEMENTS.
``(a) In General.--An athlete agent who assists a student athlete
with an endorsement contract shall disclose in writing to the student
athlete--
``(1) whether the athlete agent is registered with an
interstate intercollegiate athletic association (as defined in
section 2 of the SCORE Act); and
``(2) if the athlete agent is registered with an interstate
intercollegiate athletic association, whether the athlete agent
is registered with the interstate intercollegiate athletic
association that has as a member the institution (as defined in
section 2 of the SCORE Act) at which the student athlete is
enrolled.
``(b) Consent.--In the case of an athlete agent who is not registered
with an interstate intercollegiate athletic association, the athlete
agent may only assist a student athlete with an endorsement contract if
the student athlete (or, in the case of a student athlete who is under
18 years of age, the parent or guardian of the student athlete)
provides to the athlete agent written consent for such assistance after
receiving the disclosure under subsection (a).
``(c) Enforcement.--
``(1) In general.--If an attorney general of a State has
reason to believe that an interest of the residents of that
State has been or is threatened or adversely affected by the
engagement of any athlete agent in a practice that violates
this section, the attorney general may bring a civil action
pursuant to section 5 in the same manner as the attorney
general may bring a civil action with respect to a violation of
section 3.
``(2) Sole authority.--No individual or entity other than an
attorney general of a State may enforce this section.
``(3) No federal notice necessary.--Subsections (a)(2), (b),
and (d) of section 5 do not apply to an action brought by an
attorney general of a State pursuant to this subsection.''.
SEC. 5. REQUIREMENTS APPLICABLE TO CERTAIN INSTITUTIONS.
(a) Requirements.--An institution described in subsection (c) shall--
(1) provide comprehensive academic support and career
counseling services to student athletes that include life
skills development programs with respect to--
(A) mental health, including alcohol and substance
abuse;
(B) strength and conditioning;
(C) nutrition;
(D) name, image, and likeness rights, including
related legal advice;
(E) financial literacy, including taxes;
(F) career readiness and counseling;
(G) the process for transferring between
institutions; and
(H) sexual violence prevention;
(2) provide medical and health benefits to student athletes
that include--
(A) medical care, including payment of out-of-pocket
expenses, for an injury of a student athlete incurred
during the involvement of such student athlete in
intercollegiate athletics for such institution that is
available to the student athlete during the period of
enrollment of the student athlete with such institution
and a period of at least 3 years following graduation
or separation from such institution (unless such
separation is due to violation of a code of conduct);
(B) mental health services and support, including
mental health educational materials and resources;
(C) an administrative structure that provides
independent medical care, including with respect to
decisions regarding return to play; and
(D) a certification of insurance coverage for medical
expenses resulting from injuries of student athletes
incurred during the involvement of such student
athletes in intercollegiate athletics for such
institution;
(3) maintain a grant-in-aid provided to a student athlete in
relation to the involvement of such student athlete in
intercollegiate athletics during the period of that grant-in-
aid for such institution without regard to--
(A) athletic performance;
(B) contribution to team success;
(C) injury, illness, or physical or mental condition;
or
(D) receipt of compensation pursuant to a name,
image, and likeness agreement;
(4) provide a degree completion program--
(A) for each former student athlete of such
institution who received a grant-in-aid from such
institution and did not graduate from such institution;
and
(B) that provides financial aid to such former
student athlete in an amount that is based on the
average annual grant-in-aid provided to such former
student athlete during the period that such former
student athlete participated on a varsity sports team
of the institution; and
(5) establish, not later than July 1, 2027, and thereafter
maintain, at least 16 varsity sports teams.
(b) Collaboration.--An institution may carry out subsection (a) in
conjunction with a conference or interstate intercollegiate athletic
association.
(c) Applicability.--An institution is described in this subsection if
any member of the coaching staff of a varsity sports team of such
institution earns more than $250,000 in base salary annually (as
adjusted on July 1 each year by the percentage increase (if any),
during the preceding 12-month period, in the Consumer Price Index for
All Urban Consumers published by the Bureau of Labor Statistics).
SEC. 6. ROLES OF INTERSTATE INTERCOLLEGIATE ATHLETIC ASSOCIATIONS.
(a) Authority to Establish Rules.--An interstate intercollegiate
athletic association is authorized to establish and enforce rules with
respect to--
(1) requiring a student athlete or prospective student
athlete to disclose, in a timely manner, the terms of a name,
image, and likeness agreement entered into by such student
athlete;
(2) establishing and implementing a process to collect and
publicly share aggregated and anonymized data related to the
name, image, and likeness agreements of student athletes
(without regard to whether such an agreement includes an
institution as a party to the agreement);
(3) prohibited compensation, including processes for dispute
resolution and penalties, if such rules provide that a student
athlete does not lose eligibility to compete in intercollegiate
athletic competitions while a process for dispute resolution is
ongoing;
(4) setting parameters for the manner in which and the time
period during which student athletes and prospective student
athletes may be recruited for intercollegiate athletics;
(5) calculating a pool limit, if such rules provide that such
pool limit is at least 22 percent of the average annual college
sports revenue of the 70 highest earning (with respect to such
revenue) member institutions of such interstate intercollegiate
athletic association (or, if such interstate intercollegiate
athletic association has fewer than 70 members, the average
annual college sports revenue of all members), and monitoring
payments of compensation related to such pool limit;
(6) setting parameters for the manner in which a student
athlete may transfer between institutions, if such rules
provide that--
(A) on at least 1 occasion each student athlete may
transfer between institutions and be immediately
eligible to participate on a varsity sports team of the
institution to which the student athlete transfers (if
academically eligible to participate); and
(B) an institution to which a student athlete is
transferring or is considering transferring shall
provide to such student athlete, at the request of such
student athlete, in writing and at a reasonable time
prior to completion of the transfer, a notice of the
previously earned academic credits of such student
athlete that such institution will accept, including
with respect to the program of study of such student
athlete;
(7) the length of time a student athlete is eligible to
participate in intercollegiate athletics and the academic
standards to be eligible to participate in intercollegiate
athletics;
(8) establishing and implementing a process, including a
database, with respect to agent registration, including--
(A) setting qualifications to be registered as an
agent;
(B) setting parameters for the ability of member
institutions to negotiate with agents who are not
registered under such process; and
(C) limiting the amount of the compensation under a
name, image, and likeness agreement between a student
athlete and an institution that may be provided to the
agent of such student athlete to not more than 5
percent of such compensation;
(9) the membership of, and participation in, such interstate
intercollegiate athletic association (including any
championships administered by such interstate intercollegiate
athletic association), under which such interstate
intercollegiate athletic association may establish membership
qualifications, remove members, and otherwise regulate
participation; and
(10) intercollegiate athletic competitions and playing
seasons, including rules with respect to season length, maximum
number of contests, and student athlete time demands (whether
during a playing season or outside of such season).
(b) Requirements.--
(1) Authority conditioned on compliance.--An interstate
intercollegiate athletic association is only authorized to
establish and enforce rules under subsection (a) if such
interstate intercollegiate athletic association is in
compliance with this subsection and section 3.
(2) Governance structure.--An interstate intercollegiate
athletic association (except for an interstate intercollegiate
athletic association that is also a conference) shall carry out
the following:
(A) Ensure that the membership of any board,
committee, or other similar body of such interstate
intercollegiate athletic association, if tasked with a
decision-making role (including a decision-making role
with respect to establishing or enforcing a rule under
section 6(a)), satisfies the following:
(i) Not less than 20 percent of the members
of the board, committee, or body are
individuals who are student athletes or were
student athletes at any point during the
preceding 10-year period, with--
(I) men and women equally represented
with respect to such individuals; and
(II) each such individual
participating in or having participated
in a different sport.
(ii) Not less than 30 percent of the members
of the board, committee, or body represent
institutions that are not among the 70 highest
earning member institutions of such interstate
intercollegiate athletic association with
respect to annual college sports revenue.
(B) Establish a council to serve as the primary
deliberative body of the interstate intercollegiate
athletic association and that is--
(i) responsible for developing proposals with
respect to policy; and
(ii) composed of individuals who represent
each conference that is a member of such
interstate intercollegiate athletic
association.
SEC. 7. LIABILITY LIMITATION.
(a) In General.--Adoption of, agreement to, compliance with, or
enforcement of any rule, regulation, requirement, standard, or other
provision established pursuant to, or in compliance with, section 6 of
this Act shall be treated as lawful under the antitrust laws and any
similar State provision having the force and effect of law.
(b) Rule of Construction.--Nothing in subsection (a) may be construed
to limit or otherwise affect any provision of law, including any
provision of Federal or State law or the common law, other than the
antitrust laws and any similar State provision having the force and
effect of law.
SEC. 8. EMPLOYMENT STANDING.
Notwithstanding any other provision of Federal or State law, no
individual may be considered an employee of an institution, a
conference, or an interstate intercollegiate athletic association based
on the participation of such individual on a varsity sports team or in
an intercollegiate athletic competition as a student athlete, without
regard to the existence of rules or requirements for being a member of
such team or for participating in such competition.
SEC. 9. STUDENT ATHLETIC FEES.
(a) Transparency Requirements.--
(1) Information dissemination activities.--Section
485(a)(1)(E) of the Higher Education Act of 1965 (20 U.S.C.
1092(a)(1)(E)) is amended by inserting ``(including the amount
of such fees used to support intercollegiate athletic
programs)'' after ``and fees''.
(2) Data required.--
(A) In general.--Section 485(g) of the Higher
Education Act of 1965 (20 U.S.C. 1092(g)) is amended--
(i) in paragraph (1), by adding at the end
the following:
``(K) With respect to fees charged to students to
support intercollegiate athletic programs--
``(i) the total amount of such fees charged
to students;
``(ii) the uses of such fees with respect to
facilities, operating expenses, scholarships,
payments to athletes, salaries of coaches and
support staff, and any other expenses reported
under this paragraph; and
``(iii) the percentage of the total cost of
such programs covered by such fees.''; and
(ii) in paragraph (3)--
(I) by striking the period at the end
and inserting ``; and'';
(II) by striking ``that all
students'' and inserting the following:
``that--
``(A) all students''; and
(III) by adding at the end the
following:
``(B) with respect to the information described in
paragraph (1)(K), the institution shall annually
publish such information on a publicly available
website of the institution not later than October 15
following the end of each fiscal year of the
institution.''.
(B) Effective date.--The amendments made by
subparagraph (A) shall take effect and apply beginning
on July 1, 2026.
(b) Restricting Student Fees for High-Media-Rights-Revenue
Institutions.--
(1) Media rights revenues.--Section 485(g)(1)(I)(ii) of the
Higher Education Act of 1965 (20 U.S.C. 1092(a)(1)(I)(ii)) is
amended by striking ``broadcast revenues'' and inserting
``media rights revenues (including revenues from broadcasting,
streaming, or digital distribution of intercollegiate athletic
events)''.
(2) Program participation agreements.--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, for the most
recently completed fiscal year, had annual media rights
revenues (as described in section 485(g)(1)(I)(ii)) of
$50,000,000 or more, the institution will not, for the fiscal
year immediately following such fiscal year, use student fees
to support intercollegiate athletic programs, including with
respect to facilities, operating expenses (as defined in
section 485(g)), scholarships, payments to athletes, salaries
of coaches and support staff, and any other expenses reported
under section 485(g)(1).''.
(3) Effective date.--The amendments made by this subsection
shall take effect and apply beginning on July 1, 2026.
SEC. 10. PREEMPTION.
(a) In General.--No State, or political subdivision of a State, may
maintain, enforce, prescribe, or continue in effect any law, rule,
regulation, requirement, standard, or other provision having the force
and effect of law that conflicts with this Act, including the
amendments made by this Act, and that--
(1) governs or regulates the compensation, payment, benefits,
or employment status of a student athlete (including a
prospective student athlete) with respect to participation in
intercollegiate athletics, including any law, rule, regulation,
requirement, standard, or other provision that--
(A) relates to the right of a student athlete to
receive compensation or other payments or benefits
directly or indirectly from any institution, associated
entity or individual, conference, or interstate
intercollegiate athletic association; or
(B) relates to the length of time a student athlete
is eligible to participate in intercollegiate athletics
or the academic standards to be eligible to participate
in intercollegiate athletics;
(2) limits or restricts a right provided to an institution, a
conference, or an interstate intercollegiate athletic
association under this Act; or
(3) requires a release of or license to use the name, image,
and likeness rights of any individual participant, or group of
participants, in an intercollegiate athletic competition (or an
individual spectator or group of spectators at an
intercollegiate athletic competition) for purposes of audio-
visual, audio, or visual broadcasts or other distributions of
such intercollegiate athletic competition.
(b) Rule of Construction.--Nothing in subsection (a) may be construed
to--
(1) relieve any person of liability under a State law of
general applicability that does not conflict with this Act,
including the amendments made by this Act; or
(2) relieve any person of liability under common law.
SEC. 11. REPORTS.
(a) Federal Trade Commission Study.--
(1) Study.--The Federal Trade Commission shall conduct a
study to analyze the impacts of establishing a program,
administered by an entity independent of any institution,
conference, or interstate intercollegiate athletic association,
to develop standards for, certify as compliant with such
standards, and otherwise regulate agents who enter into
agreements with student athletes, which shall include an
analysis of--
(A) options for establishing such a program;
(B) potential sources of funding for such a program;
(C) a reasonable timeline for establishing such a
program; and
(D) the costs and benefits associated with such a
program.
(2) Report.--Not later than 1 year after the date of the
enactment of this Act, the Federal Trade Commission shall
submit to Congress a report on the results of the study
conducted under paragraph (1), which shall include legislative
recommendations with respect to the establishment and funding
of the program described in such paragraph.
(b) Compliance Reporting.--
(1) Biennial report.--Not later than 180 days after the date
of the enactment of this Act, and every 2 years thereafter,
each interstate intercollegiate athletic association shall
submit to Congress a report that includes--
(A) a summary of the issues faced by such interstate
intercollegiate athletic association relating to
compliance with this Act, including the amendments made
by this Act;
(B) a summary of the trends among institutions,
conferences, and interstate intercollegiate athletic
associations relating to such compliance; and
(C) recommendations to improve the health, safety,
and educational opportunities of student athletes.
(2) Comptroller general report.--Not later than 5 years after
the date of the enactment of this Act, and every 5 years
thereafter, the Comptroller General of the United States
shall--
(A) conduct an investigation with respect to
compliance with this Act, including the amendments made
by this Act; and
(B) submit to Congress a report that includes--
(i) a summary of the findings of the
investigation conducted under subparagraph (A);
and
(ii) recommendations to improve the health,
safety, and educational opportunities of
student athletes.
(c) Study on Olympic Sports.--
(1) In general.--The Comptroller General of the United States
shall conduct a study--
(A) to assess the impact of this Act on Olympic
Sports, including the funding of Olympic Sports; and
(B) to develop recommendations for support of Olympic
Sports, given the unique nature of Olympic Sports and
intercollegiate athletics in the United States.
(2) Contents.--The study conducted under paragraph (1) shall
include--
(A) a survey of international models of support for
Olympic Sports, including models that could be adapted
to the unique nature of Olympic Sports and
intercollegiate athletics in the United States;
(B) the projected scale and magnitude of potential
support for Olympic Sports, given historic levels of
support provided by institutions;
(C) the coordination required to develop and
cultivate Olympic Sports at institutions; and
(D) an analysis of the trends with respect to roster
sizes for Olympic Sports at institutions, with a focus
on the top 70 highest earning institutions with respect
to average annual college sports revenue.
(3) Report.--Not later than 2 years after the date of the
enactment of this Act, the Comptroller General of the United
States shall submit to Congress a report on the results of the
study conducted under paragraph (1).
(4) Olympic sports defined.--In this subsection, the term
``Olympic Sports'' means the sports officially recognized and
contested during the Summer and Winter Olympic Games.
Purpose and Summary
H.R. 4312 establishes a federal framework governing Name,
Image, and Likeness (NIL) rights for college student-athletes.
It defines key terms used throughout the legislation, including
associated entity or individual, college sports revenue,
Interstate Intercollegiate Athletic Associations (IIAA), pool
limit, and prohibited compensation. It affirms the rights of
student-athletes to enter into NIL agreements, including the
right to representation, privacy, and transparent agreements.
The bill prohibits colleges, conferences, and IIAAs from
restricting those rights or penalizing athletes for engaging in
NIL deals which are to be enforced by State Attorney's General.
H.R. 4312 modifies the Sports Agent Responsibility and
Trust Act (SPARTA) to reflect the new NIL environment. It
requires agents involved in NIL deals to disclose if they are
registered with an IIAA and caps agent fees at five percent.
The bill also removes outdated provisions in SPARTA related to
eligibility risk when hiring agents.
The legislation codifies benefits such as continued access
to medical coverage, academic support services, and scholarship
protections. It authorizes IIAAs to establish and enforce rules
related to collecting and sharing NIL data, prohibited
compensation, recruitment of student athletes, the revenue
sharing pool limit, transferring between schools, student-
athlete eligibility, and competition and championship
management.
Further, the legislation includes limits on liability
conditioned on compliance with Section 6 of the Act. The bill
requires IIAAs to have a governance structure to include
student athletes. H.R. 4312 affirms student-athletes are
student-athletes, and the bill clarifies employment-related
obligations for academic institutions under state and federal
labor laws. The legislation requires public reporting of the
use of student fees to fund athletic programs and prohibits
top-revenue programs from using student fees to cover
intercollegiate athletics costs. Additionally, it preempts any
state or local laws that conflict with the Act. Finally, the
H.R. 4312 requires studies and reports, including a Federal
Trade Commission study on a potential independent agent
certification program, regular compliance reports from IIAAs
and the Comptroller General, and a separate Comptroller General
study on the bill's impact on Olympic sports.
Background and Need for Legislation
The adoption of Name, Image, and Likeness (NIL) rights for
collegiate athletes has fundamentally altered the landscape of
college sports by enabling student-athletes to profit from
their personal brands. While there is widespread support for
this long overdue change, the current system--characterized by
rapid implementation, lack of transparency, and inconsistent
regulation--lacks long-term viability.\1\
---------------------------------------------------------------------------
\1\Sportse Media, NIL Is a Bad: How the Current System Is Failing
College Sports, SportsEpreneur (May 18, 2025), https://
sportsepreneur.com/nil-is-bad-system-failing-college-sports/.
---------------------------------------------------------------------------
For years, the National Collegiate Athletic Association
(NCAA) had strict amateurism rules prohibiting student-athletes
from profiting off of the commercialization of their NIL.\2\
Beginning on July 1, 2021, the NCAA allowed student-athletes to
profit from commercial use of their NIL, and permitted schools
and conferences to establish their own NIL policies, provided
they adhere to state laws.\3\ This shift followed several court
decisions related to NCAA antitrust violations.\4\ Since the
rule change, over 30 different state NIL laws have gone into
effect.\5\
---------------------------------------------------------------------------
\2\See NCAA, Nat'l Collegiate Athletic Ass'n Const., Art. 1.3.1, in
2002-03 NCAA Division I Manual (2002).
\3\NCAA Media Center, NCAA adopts interim name, image and likeness
policy, NCAA, (June 30, 2021, at 16:20 ET), https://www.ncaa.org/news/
2021/6/30/ncaa-adopts-interim-name-image-and-likeness-policy.aspx.
\4\Claire Haws, The Death of Amateurism in the NCAA: How the NCAA
Can Survive the New Economic Reality of College Sports, Michigan
Business & Entrepreneurial L. Rev., Vol. 11, Iss. 2, (2022), https://
repository.law.umich.edu/cgi/
viewcontent.cgi?article=1132&context=mbelr.
\5\Troutman Pepper Locke, State and Federal Legislation Tracker
(last updated May 5, 2025), https://www.troutman.com/state-and-federal-
nil-legislation-tracker.html.
---------------------------------------------------------------------------
After years of legal battles on antitrust grounds, a
historic settlement was reached between the NCAA, the power
conferences, and former college athletes on June 6, 2025.\6\
The $2.8 billion agreement in House v. NCAA allows Division I
schools to directly compensate athletes starting July 1, 2025,
effectively ending the NCAA's amateurism model.\7\ While the
settlement provides retroactive payments and a new compensation
structure, it also introduces legal and operational
uncertainties that have intensified calls for federal
regulation.
---------------------------------------------------------------------------
\6\Ross Dellenger, NCAA's House Settlement Approved, Ushering in
New Era Where Schools Can Directly Pay Athletes, Yahoo! Sports, (June
6, 2025), https://sports.yahoo.com/college-football/article/ncaas-
house-settlement-approved-ushering-in-new-era-where-schools-can-
directly-pay-athletes-011814078.html.
\7\Id.
---------------------------------------------------------------------------
The rapidly evolving NIL landscape, combined with the
absence of consistent and enforceable rules around athlete
eligibility and the transfer portal, has intensified recruiting
battles and led to a surge in student-athlete transfers.
Meanwhile, the rise of donor-funded collectives and increased
booster involvement has normalized pay-for-play arrangements,
raising serious concerns about academic integrity and the
erosion of amateurism in college sports. With the 2025
settlement allowing institutions to directly compensate student
athletes, whether student-athletes should be classified as
employees is a pivotal question. Classifying student-athletes
as employees, however, would likely place enormous financial
burdens on college athletic departments and create additional
legal uncertainty, possibly forcing schools to cut programs and
reduce opportunities for student-athletes nationwide.\8\
---------------------------------------------------------------------------
\8\Nick Tremps, The Memorandum heard Around the College Athletics
World: Why Student-Athletes in Non-Revenue-Generating Sports Should not
Enjoy the Status of ``Employee'' Under the NLRA, 14 Wake Forest L. Rev.
Online 47, 47-68 (Apr. 1, 2025), https://www.wakeforestlawreview.com/
2024/04/the-memorandum-heard-around-the-college-athletics-world-why-
student-athletes-in-non-revenue-generating-sports-should-not-enjoy-the-
status-of-employee-under-the-nlra/.
---------------------------------------------------------------------------
Committee Action
On March 4, 2025, the Subcommittee on Commerce,
Manufacturing, and Trade held a hearing on name, image and
likeness issues in college sports. The title of the hearing
was, ``Moving the Goalposts: How NIL is Reshaping College
Athletics.'' The Subcommittee received testimony from:
Shane Beamer, Head Football Coach,
University of South Carolina;
Josh Whitman, Director of Athletics,
University of Illinois;
Emily Cole, All-American Track Athlete, Duke
University '24;
Anthony Egbo Jr., Football Athlete, Abilene
Christian University '24;
Justin Falcinelli, Former College Athlete,
Clemson Football, and Vice President, College Football
Players Association.
On June 12, 2025, the Subcommittee on Commerce,
Manufacturing, and Trade held a legislative hearing on a
discussion draft of H.R. 4312. The title of the hearing was,
``Winning Off the Field: Legislative Proposal to Stabilize NIL
and College Athletics.'' The Subcommittee received testimony
from:
William King, Associate Commissioner/Legal
Affairs Compliance, Southeastern Conference;
Sherika Montgomery, Commissioner, Big South
Conference;
Ashley Cozad, Swimming Student Athlete and
Division I SAAC Chair, University of North Florida '24;
Ramogi Huma, Executive Director, National
College Players Association.
On July 15, 2025, the Subcommittee on Commerce,
Manufacturing, and Trade met in open markup session and
forwarded H.R. 4312, without amendment, to the full Committee
by a record vote of 12 yeas and 11 nays.
On July 23, 2025, the full Committee on Energy and Commerce
met in open markup session and ordered H.R. 4312, as amended,
favorably reported to the House by a record vote of 30 yeas and
23 nays.
Committee Votes
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. The following reflects the record votes taken during
the Committee consideration:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Oversight Findings and Recommendations
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held hearings and made findings that
are reflected in this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 4312 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII, at the time this
report was filed, the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974 was not available.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to protect
the name, image, and likeness rights of student athletes and to
promote fair competition with respect to intercollegiate
athletics.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 4312 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
Related Committee and Subcommittee Hearings
Pursuant to clause 3(c)(6) of rule XIII, the following
related hearing was used to develop or consider H.R. 4312:
On March 4, 2025, the Subcommittee on
Commerce, Manufacturing, and Trade held a hearing on
name, image and likeness issues in college sports. The
title of the hearing was, ``Moving the Goalposts: How
NIL is Reshaping College Athletics.'' The Subcommittee
received testimony from:
Shane Beamer, Head Football
Coach, University of South Carolina;
Josh Whitman, Director of
Athletics, University of Illinois;
Emily Cole, All-American Track
Athlete, Duke University '24;
Anthony Egbo Jr., Football
Athlete, Abilene Christian University '24; and
Justin Falcinelli, Former
College Athlete, Clemson Football, and Vice
President, College Football Players
Association.
On June 12, 2025, the Subcommittee on
Commerce, Manufacturing, and Trade held a legislative
hearing on a discussion draft of H.R. 4312. The title
of the hearing was ``Winning Off the Field: Legislative
Proposal to Stabilize NIL and College Athletics.'' The
Subcommittee received testimony from:
William King, Associate
Commissioner/Legal Affairs Compliance,
Southeastern Conference;
Sherika Montgomery,
Commissioner, Big South Conference;
Ashley Cozad, Swimming Student
Athlete and Division I SAAC Chair, University
of North Florida '24; and
Ramogi Huma, Executive Director,
National College Players Association.
Committee Cost Estimate
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974. At the time this report was
filed, the estimate was not available.
Earmark, Limited Tax Benefits, and Limited Tariff Benefits
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 4312 contains no earmarks, limited
tax benefits, or limited tariff benefits.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This Section provides the short title of the bill: the
``Student Compensation and Opportunity through Rights and
Endorsements Act.''
Section 2. Definitions
This Section defines key terms used throughout the bill,
including:
Associated Entity or Individual: An entity
or individual tied to a specific school's athletic
program--such as boosters, NIL collectives, or large
donors--who promotes or supports student-athletes or
helps arrange name, image, and likeness (NIL)
opportunities.
College sports revenue: revenue generated by
college athletic programs from sources including:
Ticket sales;
Media rights (TV, internet,
radio);
Sponsorships and licensing;
Conference and association
distributions;
Postseason games (e.g., bowl
games); or
Advertising, royalties, and in-
kind sponsorships.
Interstate Intercollegiate Athletic
Association (IIAA): An entity made up of schools from
different states that:
Sets rules for college sports;
Has rules or bylaws prohibiting
the provision of prohibited compensation to
student-athletes and prospective student-
athletes; and
Pool limit: An IIAA-set cap limiting the
amount a school can pay student-athletes out of college
sports revenue in a given year.
Prohibited Compensation: Payments or
agreements that are not considered ``valid business
purposes''' or exceed the pool limit as determined by
an IIAA.
Section 3. Protection of name, image, and likeness rights of student-
athletes
Section 3 affirms the right of student-athletes to enter
into NIL agreements in most circumstances by barring
institutions, conferences, and IIAAs from restricting such
agreements with two exceptions including, NIL agreements that
violate an institution's student code of conduct or interfere
with the terms of an institution's existing contracts or
similar agreements; or NIL agreements that provide prohibited
compensation, as defined in Section 2.
This Section prohibits institutions, conferences, or IIAAs
from releasing information about an NIL agreement without a
student-athletes express written consent; or restricting a
student-athlete's ability to obtain an agent.
This Section affirms the right of student-athletes to
transparent agreements, requiring a written agreement for
student-agent contracts, among other transparency requirements.
Lastly, this section enables State Attorney's General to bring
a civil action on behalf of their residents whenever it
believes a violation of this section has threatened or
adversely affected an interest of a resident.
Section 4. Modifications to Sports Agent Responsibility and Trust Act
Section 4 updates the Sports Agent Responsibility and Trust
Act (SPARTA) (15 U.S.C. Sec. Sec. 7801) to reflect the role of
agents supporting NIL agreements and require agents to disclose
if they are registered with an IIAA. This Section prohibits an
agent from charging fees over 5 percent, requires an agent
agreement with a student athlete to include a provision
allowing the student athlete to terminate the agreement should
they no longer be enrolled at an institution, and strikes
current `warning to student-athlete' language in SPARTA and
replaces it with a required disclosure of if the agent is not
registered with an IIAA.
Section 5. Requirements applicable to certain institutions
Section 5 establishes requirements that institutions must
meet, including providing comprehensive academic support and
career counseling services to student-athletes, providing
medical and health benefits to student-athletes, protection of
grant-in-aid provided to a student-athlete related to their
involvement in intercollegiate athletics regardless of their
athletic performance, contribution to team success, injury,
illness, physical or mental condition, or receipt of
compensation pursuant to an NIL agreement, providing a degree
completion program; and maintaining at least 16 varsity sports
teams after the date July 1, 2027.
The Section establishes that an institution may carry out
these requirements in conjunction with a conference or IIAA.
The section also establishes that an institution is covered by
this section if any member of the coaching staff of a varsity
sports team earns more than $250,000 in base annual salary (as
adjusted annually on July 1 based on the Consumer Price Index
for All Urban Consumers published by the Bureau of Labor
Statistics.
Section 6. Roles of interstate intercollegiate athletic associations
This section authorizes IIAA's to establish and enforce
rules with respect to:
Requiring student-athletes or prospective
student-athletes to disclose the terms of NIL
agreements they enter into;
Establishing a database for collecting and
publicly sharing anonymized data related to NIL
agreements of student-athletes;
Compensation, including processes for
dispute resolution and penalties;
Setting parameters for the manner in which
and the time period during which student athletes and
prospective student athletes may be recruited for
intercollegiate athletics;
Calculating a pool limit, if such rules
provide that such pool limit is at least 22 percent of
the average annual college sports revenue of the 70
highest earning (with respect to such revenue) member
institutions of such interstate intercollegiate
athletic association;
Setting parameters for the manner in which a
student athlete may transfer between institutions;
The length of time a student athlete is
eligible to participate in intercollegiate athletics
and the academic standards to be eligible to
participate in intercollegiate athletics;
Establishing qualifications for and a
process for registration of NIL agents;
Management of membership and participation
in IIAA, including championship events; and
Intercollegiate athletic competitions and
playing seasons, including rules with respect to season
length, maximum number of contests, and student-athlete
time demands (both during and outside of a playing
season).
This Section conditions authority on compliance with
section 3 and the requirements in Section 6. This Section
describes IIAA governance structures, requiring any board,
committee, or other body to consist of at least 20 percent
student-athletes, with men and women being equally represented,
and each student-athlete representing a different sport, and at
least 30 percent of institutions that are not among the 70
highest-earning member institutions. This Section establishes a
council to serve as the primary deliberative body of the IIAA.
Section 7. Liability limitation
Section 7 establishes the adoption of, agreement to,
compliance with, or enforcement of any rule, regulation,
requirement, standard, or other provision established pursuant
to, or in compliance with, section 6 of this Act shall be
treated as lawful under the antitrust laws and any similar
State Section 7 also establishes a rule of construction that
clarifies that the bill does not exempt college sports from any
laws other than antitrust laws and that this exemption is
limited to the narrowly tailored rules listed in section 6.
Section 8. Employment standing
Section 9 establishes that no individual may be considered
an employee of an institution, conference, or IIAA based on the
participation of such individual with a varsity sports team or
in an intercollegiate athletic competition as a student-
athlete.
Section 9. Student athletic fees
Section 9 makes multiple amendments to the Higher Education
Act of 1965. Subsection (a) creates transparency and
publication requirements for fees charged to students to
support intercollegiate athletic programs. Subsection (b) makes
changes regarding media rights revenues and establishes that
institutions which had annual media rights revenues of
$50,000,000 or more in the most recent completed fiscal year
may not use student fees to support intercollegiate athletic
programs in the immediately following fiscal year. The
amendments made to the Higher Education Act of 1965 under this
section come into effect on July 1, 2026.
Section 10. Preemption
Section 10 provides that no state or political subdivision
of a State may maintain, enforce, prescribe, or continue any
law, rule, regulation, requirement, standard, or other
provision having the force and effect of law that conflict with
this Act; that governs or regulates the compensation, payment,
benefits, or employment status of a student-athlete, including
anything that relates to the right of a student athlete to
receive compensation directly or indirectly from an
institution, associated entity or individual, conference, or
IIAA or anything related to the length of time a student
athlete is eligible to participate in intercollegiate athletics
or the academic standards to be eligible to participate in
intercollegiate athletics; limits or restricts a right provided
to an institution, conference, or IIAA under this Act; or
requires a release of license to use the NIL of any
participant(s) in an intercollegiate athletic competition for
purposes of audio-visual, audio, or visual broadcasts or other
distributions of such intercollegiate athletic competition.
Section 10 also provides a rule of construction clarifying
that the preemption in this Act does not preempt state common
law and State laws of generally applicability.
Section 11. Reports
Section 11 requires the Federal Trade Commission to study
and report the impacts of establishing a program administered
by an entity independent of any institution, conference, or
IIAA to develop standards, certification, and other regulations
for agents who enter into agreements with student athletes. It
also requires the Comptroller General of the U.S., not 5 years
after enactment, to conduct an investigation with respect to
compliance with the Act and submit a report to congress that
includes a summary of findings and recommendation to improve
the health, safety, and educational opportunities of student
athletes and conduct a study to assess the impact of this Act
on Olympic Sports and report it Congress not 2 years after the
date of enactment.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
SPORTS AGENT RESPONSIBILITY AND TRUST ACT
* * * * * * *
SEC. 3. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND PRACTICES IN
CONNECTION WITH THE CONTACT BETWEEN AN ATHLETE
AGENT AND A STUDENT ATHLETE.
(a) Conduct Prohibited.--It is unlawful for an athlete agent
to--
(1) directly or indirectly recruit or solicit a
student athlete to enter into an agency contract, by--
(A) giving any false or misleading
information or making a false promise or
representation; or
(B) providing anything of value to a student
athlete or anyone associated with the student
athlete before the student athlete enters into
an agency contract, including any consideration
in the form of a loan, or acting in the
capacity of a guarantor or co-guarantor for any
debt;
(2) charge a student athlete a fee with respect to an
endorsement contract that is in an amount that is
greater than 5 percent of the amount of the
compensation provided to such student athlete under
such contract;
(3) enter into an agency contract with a student
athlete that does not include a provision specifying
that the student athlete may terminate the agency
contract, notwithstanding any other term described in
the agency contract, beginning on the date that is 6
months after the date on which the student athlete is
no longer enrolled at any institution (as defined in
section 2 of the SCORE Act);
[(2)] (4) enter into an agency contract with a
student athlete without providing the student athlete
with the disclosure document described in subsection
(b); or
[(3)] (5) predate or postdate an agency contract.
(b) Required Disclosure by Athlete Agents to Student
Athletes.--
(1) In general.--In conjunction with the entering
into of an agency contract, an athlete agent shall
provide to the student athlete, or, if the student
athlete is under the age of 18, to such student
athlete's parent or legal guardian, a disclosure
document that meets the requirements of this
subsection. Such disclosure document is separate from
and in addition to any disclosure which may be required
under State law.
(2) Signature of student athlete.--The disclosure
document must be signed by the student athlete, or, if
the student athlete is under the age of 18, by such
student athlete's parent or legal guardian, prior to
entering into the agency contract.
(3) Required language.--The disclosure document must
contain, in close proximity to the signature of the
student athlete, or, if the student athlete is under
the age of 18, the signature of such student athlete's
parent or legal guardian, a conspicuous notice in
boldface type stating: ``[Warning to Student Athlete:
If you agree orally or in writing to be represented by
an agent now or in the future you may lose your
eligibility to compete as a student athlete in your
sport.] Notice to Student Athlete: Within 72 hours
after entering into this contract or before the next
athletic event in which you are eligible to
participate, whichever occurs first, both you and the
agent by whom you are agreeing to be represented must
notify the athletic director of the educational
institution at which you are enrolled, or other
individual responsible for athletic programs at such
educational institution, that you have entered into an
agency contract.''.
* * * * * * *
SEC. 9. DISCLOSURE AND CONSENT RELATING TO NAME, IMAGE, AND LIKENESS
AGREEMENTS.
(a) In General.--An athlete agent who assists a student
athlete with an endorsement contract shall disclose in writing
to the student athlete--
(1) whether the athlete agent is registered with an
interstate intercollegiate athletic association (as
defined in section 2 of the SCORE Act); and
(2) if the athlete agent is registered with an
interstate intercollegiate athletic association,
whether the athlete agent is registered with the
interstate intercollegiate athletic association that
has as a member the institution (as defined in section
2 of the SCORE Act) at which the student athlete is
enrolled.
(b) Consent.--In the case of an athlete agent who is not
registered with an interstate intercollegiate athletic
association, the athlete agent may only assist a student
athlete with an endorsement contract if the student athlete
(or, in the case of a student athlete who is under 18 years of
age, the parent or guardian of the student athlete) provides to
the athlete agent written consent for such assistance after
receiving the disclosure under subsection (a).
(c) Enforcement.--
(1) In general.--If an attorney general of a State
has reason to believe that an interest of the residents
of that State has been or is threatened or adversely
affected by the engagement of any athlete agent in a
practice that violates this section, the attorney
general may bring a civil action pursuant to section 5
in the same manner as the attorney general may bring a
civil action with respect to a violation of section 3.
(2) Sole authority.--No individual or entity other
than an attorney general of a State may enforce this
section.
(3) No federal notice necessary.--Subsections (a)(2),
(b), and (d) of section 5 do not apply to an action
brought by an attorney general of a State pursuant to
this subsection.
----------
HIGHER EDUCATION ACT OF 1965
* * * * * * *
TITLE IV--STUDENT ASSISTANCE
* * * * * * *
Part G--General Provisions Relating to Student Assistance Programs
* * * * * * *
SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR
STUDENTS.
(a) Information Dissemination Activities.--(1) Each eligible
institution participating in any program under this title shall
carry out information dissemination activities for prospective
and enrolled students (including those attending or planning to
attend less than full time) regarding the institution and all
financial assistance under this title. The information required
by this section shall be produced and be made readily available
upon request, through appropriate publications, mailings, and
electronic media, to an enrolled student and to any prospective
student. Each eligible institution shall, on an annual basis,
provide to all enrolled students a list of the information that
is required to be provided by institutions to students by this
section and section 444 of the General Education Provisions Act
(commonly known as the ``Family Educational Rights and Privacy
Act of 1974''), together with a statement of the procedures
required to obtain such information. The information required
by this section shall accurately describe--
(A) the student financial assistance programs
available to students who enroll at such institution;
(B) the methods by which such assistance is
distributed among student recipients who enroll at such
institution;
(C) any means, including forms, by which application
for student financial assistance is made and
requirements for accurately preparing such application;
(D) the rights and responsibilities of students
receiving financial assistance under this title;
(E) the cost of attending the institution, including
(i) tuition and fees (including the amount of such fees
used to support intercollegiate athletic programs),
(ii) books and supplies, (iii) estimates of typical
student room and board costs or typical commuting
costs, and (iv) any additional cost of the program in
which the student is enrolled or expresses a specific
interest;
(F) a statement of--
(i) the requirements of any refund policy
with which the institution is required to
comply;
(ii) the requirements under section 484B for
the return of grant or loan assistance provided
under this title; and
(iii) the requirements for officially
withdrawing from the institution;
(G) the academic program of the institution,
including (i) the current degree programs and other
educational and training programs, (ii) the
instructional, laboratory, and other physical plant
facilities which relate to the academic program, (iii)
the faculty and other instructional personnel, and (iv)
any plans by the institution for improving the academic
program of the institution;
(H) each person designated under subsection (c) of
this section, and the methods by which and locations in
which any person so designated may be contacted by
students and prospective students who are seeking
information required by this subsection;
(I) special facilities and services available to
students with disabilities;
(J) the names of associations, agencies, or
governmental bodies which accredit, approve, or license
the institution and its programs, and the procedures
under which any current or prospective student may
obtain or review upon request a copy of the documents
describing the institution's accreditation, approval,
or licensing;
(K) the standards which the student must maintain in
order to be considered to be making satisfactory
progress, pursuant to section 484(a)(2);
(L) the completion or graduation rate of certificate-
or degree-seeking, full-time, undergraduate students
entering such institutions;
(M) the terms and conditions of the loans
that students receive under parts B, D, and E;
(N) that enrollment in a program of study abroad
approved for credit by the home institution may be
considered enrollment in the home institution for
purposes of applying for Federal student financial
assistance;
(O) the campus crime report prepared by the
institution pursuant to subsection (f), including all
required reporting categories;
(P) institutional policies and sanctions
related to copyright infringement, including--
(i) an annual disclosure that
explicitly informs students that
unauthorized distribution of
copyrighted material, including
unauthorized peer-to-peer file sharing,
may subject the students to civil and
criminal liabilities;
(ii) a summary of the penalties for
violation of Federal copyright laws;
and
(iii) a description of the
institution's policies with respect to
unauthorized peer-to-peer file sharing,
including disciplinary actions that are
taken against students who engage in
unauthorized distribution of
copyrighted materials using the
institution's information technology
system;
(Q) student body diversity at the
institution, including information on the
percentage of enrolled, full-time students
who--
(i) are male;
(ii) are female;
(iii) receive a Federal Pell Grant;
and
(iv) are a self-identified member of
a major racial or ethnic group;
(R) the placement in employment of, and types
of employment obtained by, graduates of the
institution's degree or certificate programs,
gathered from such sources as alumni surveys,
student satisfaction surveys, the National
Survey of Student Engagement, the Community
College Survey of Student Engagement, State
data systems, or other relevant sources;
(S) the types of graduate and professional
education in which graduates of the
institution's four-year degree programs
enrolled, gathered from such sources as alumni
surveys, student satisfaction surveys, the
National Survey of Student Engagement, State
data systems, or other relevant sources;
(T) the fire safety report prepared by the
institution pursuant to subsection (i);
(U) the retention rate of certificate- or
degree-seeking, first-time, full-time,
undergraduate students entering such
institution; and
(V) institutional policies regarding
vaccinations.
(2) For the purpose of this section, the term ``prospective
student'' means any individual who has contacted an eligible
institution requesting information concerning admission to that
institution.
(3) In calculating the completion or graduation rate under
subparagraph (L) of paragraph (1) of this subsection or under
subsection (e), a student shall be counted as a completion or
graduation if, within 150 percent of the normal time for
completion of or graduation from the program, the student has
completed or graduated from the program, or enrolled in any
program of an eligible institution for which the prior program
provides substantial preparation. The information required to
be disclosed under such subparagraph--
(A) shall be made available by July 1 each year to
enrolled students and prospective students prior to the
students enrolling or entering into any financial
obligation; and
(B) shall cover the one-year period ending on August
31 of the preceding year.
(4) For purposes of this section, institutions may--
(A) exclude from the information disclosed in
accordance with subparagraph (L) of paragraph
(1) the completion or graduation rates of
students who leave school to serve in the Armed
Forces, on official church missions, or with a
recognized foreign aid service of the Federal
Government; or
(B) in cases where the students described in
subparagraph (A) represent 20 percent or more
of the certificate- or degree-seeking, full-
time, undergraduate students at the
institution, recalculate the completion or
graduation rates of such students by excluding
from the calculation described in paragraph (3)
the time period during which such students were
not enrolled due to their service in the Armed
Forces, on official church missions, or with a
recognized foreign aid service of the Federal
Government.
(5) The Secretary shall permit any institution of higher
education that is a member of an athletic association or
athletic conference that has voluntarily published completion
or graduation rate data or has agreed to publish data that, in
the opinion of the Secretary, is substantially comparable to
the information required under this subsection, to use such
data to satisfy the requirements of this subsection; and
(6) Each institution may provide supplemental information to
enrolled and prospective students showing the completion or
graduation rate for students described in paragraph (4) or for
students transferring into the institution or information
showing the rate at which students transfer out of the
institution.
(7)(A)(i) Subject to clause (ii), the information
disseminated under paragraph (1)(L), or reported under
subsection (e), shall be disaggregated by gender, by
each major racial and ethnic subgroup, by recipients of
a Federal Pell Grant, by recipients of a loan made
under part B or D (other than a loan made under section
428H or a Federal Direct Unsubsidized Stafford Loan)
who did not receive a Federal Pell Grant, and by
recipients of neither a Federal Pell Grant nor a loan
made under part B or D (other than a loan made under
section 428H or a Federal Direct Unsubsidized Stafford
Loan), if the number of students in such subgroup or
with such status is sufficient to yield statistically
reliable information and reporting will not reveal
personally identifiable information about an individual
student. If such number is not sufficient for such
purposes, then the institution shall note that the
institution enrolled too few of such students to so
disclose or report with confidence and confidentiality.
(ii) The requirements of clause (i) shall not apply
to two-year, degree-granting institutions of higher
education until academic year 2011-2012.
(B)(i) In order to assist two-year degree-granting
institutions of higher education in meeting the
requirements of paragraph (1)(L) and subsection (e),
the Secretary, in consultation with the Commissioner
for Education Statistics, shall, not later than 90 days
after the date of enactment of the Higher Education
Opportunity Act, convene a group of representatives
from diverse institutions of higher education, experts
in the field of higher education policy, state higher
education officials, students, and other stakeholders
in the higher education community, to develop
recommendations regarding the accurate calculation and
reporting of the information required to be
disseminated or reported under paragraph (1)(L) and
subsection (e) by two-year, degree-granting
institutions of higher education. In developing such
recommendations, the group of representatives shall
consider the mission and role of two-year degree-
granting institutions of higher education, and may
recommend additional or alternative measures of student
success for such institutions in light of the mission
and role of such institutions.
(ii) The Secretary shall widely disseminate the
recommendations required under this subparagraph to
two-year, degree-granting institutions of higher
education, the public, and the authorizing committees
not later than 18 months after the first meeting of the
group of representatives convened under clause (i).
(iii) The Secretary shall use the recommendations
from the group of representatives convened under clause
(i) to provide technical assistance to two-year,
degree-granting institutions of higher education in
meeting the requirements of paragraph (1)(L) and
subsection (e).
(iv) The Secretary may modify the information
required to be disseminated or reported under paragraph
(1)(L) or subsection (e) by a two-year, degree-granting
institution of higher education--
(I) based on the recommendations received
under this subparagraph from the group of
representatives convened under clause (i);
(II) to include additional or alternative
measures of student success if the goals of the
provisions of paragraph (1)(L) and subsection
(e) can be met through additional means or
comparable alternatives; and
(III) during the period beginning on the date
of enactment of the Higher Education
Opportunity Act, and ending on June 30, 2011.
(b) Exit Counseling for Borrowers.--(1)(A) Each eligible
institution shall, through financial aid offices or otherwise,
provide counseling to borrowers of loans that are made,
insured, or guaranteed under part B (other than loans made
pursuant to section 428C or loans under section 428B made on
behalf of a student) or made under part D (other than Federal
Direct Consolidation Loans or Federal Direct PLUS Loans made on
behalf of a student) or made under part E of this title prior
to the completion of the course of study for which the borrower
enrolled at the institution or at the time of departure from
such institution. The counseling required by this subsection
shall include--
(i) information on the repayment plans available,
including a description of the different features of
each plan and sample information showing the average
anticipated monthly payments, and the difference in
interest paid and total payments, under each plan;
(ii) debt management strategies that are designed to
facilitate the repayment of such indebtedness;
(iii) an explanation that the borrower has the
options to prepay each loan, pay each loan on a shorter
schedule, and change repayment plans;
(iv) for any loan forgiveness or cancellation
provision of this title, a general description of the
terms and conditions under which the borrower may
obtain full or partial forgiveness or cancellation of
the principal and interest, and a copy of the
information provided by the Secretary under section
485(d);
(v) for any forbearance provision of this title, a
general description of the terms and conditions under
which the borrower may defer repayment of principal or
interest or be granted forbearance, and a copy of the
information provided by the Secretary under section
485(d);
(vi) the consequences of defaulting on a loan,
including adverse credit reports, delinquent debt
collection procedures under Federal law, and
litigation;
(vii) information on the effects of using a
consolidation loan under section 428C or a Federal
Direct Consolidation Loan to discharge the borrower's
loans under parts B, D, and E, including at a minimum--
(I) the effects of consolidation on total
interest to be paid, fees to be paid, and
length of repayment;
(II) the effects of consolidation on a
borrower's underlying loan benefits, including
grace periods, loan forgiveness, cancellation,
and deferment opportunities;
(III) the option of the borrower to prepay
the loan or to change repayment plans; and
(IV) that borrower benefit programs may vary
among different lenders;
(viii) a general description of the types of tax
benefits that may be available to borrowers;
(ix) a notice to borrowers about the availability of
the National Student Loan Data System and how the
system can be used by a borrower to obtain information
on the status of the borrower's loans; and
(x) an explanation that--
(I) the borrower may be
contacted during the repayment
period by third-party student
debt relief companies;
(II) the borrower should use
caution when dealing with those
companies; and
(III) the services that those
companies typically provide are
already offered to borrowers
free of charge through the
Department or the borrower's
servicer; and
(B) In the case of borrower who leaves an institution without
the prior knowledge of the institution, the institution shall
attempt to provide the information described in subparagraph
(A) to the student in writing.
(2)(A) Each eligible institution shall require that the
borrower of a loan made under part B, D, or E submit to the
institution, during the exit interview required by this
subsection--
(i) the borrower's expected permanent address after
leaving the institution (regardless of the reason for
leaving);
(ii) the name and address of the borrower's expected
employer after leaving the institution;
(iii) the address of the borrower's next of kin; and
(iv) any corrections in the institution's records
relating the borrower's name, address, social security
number, references, and driver's license number.
(B) The institution shall, within 60 days after the
interview, forward any corrected or completed information
received from the borrower to the guaranty agency indicated on
the borrower's student aid records.
(C) Nothing in this subsection shall be construed to prohibit
an institution of higher education from utilizing electronic
means to provide personalized exit counseling.
(c) Financial Assistance Information Personnel.--Each
eligible institution shall designate an employee or group of
employees who shall be available on a full-time basis to assist
students or potential students in obtaining information as
specified in subsection (a). The Secretary may, by regulation,
waive the requirement that an employee or employees be
available on a full-time basis for carrying out
responsibilities required under this section whenever an
institution in which the total enrollment, or the portion of
the enrollment participating in programs under this title at
that institution, is too small to necessitate such employee or
employees being available on a full-time basis. No such waiver
may include permission to exempt any such institution from
designating a specific individual or a group of individuals to
carry out the provisions of this section.
(d) Departmental Publication of Descriptions of Assistance
Programs.--(1) The Secretary shall make available to eligible
institutions, eligible lenders, and secondary schools
descriptions of Federal student assistance programs including
the rights and responsibilities of student and institutional
participants, in order to (A) assist students in gaining
information through institutional sources, and (B) assist
institutions in carrying out the provisions of this section, so
that individual and institutional participants will be fully
aware of their rights and responsibilities under such programs.
In particular, such information shall include information to
enable students and prospective students to assess the debt
burden and monthly and total repayment obligations that will be
incurred as a result of receiving loans of varying amounts
under this title. Such information shall also include
information on the various payment options available for
student loans, including income-sensitive and income-based
repayment plans for loans made, insured, or guaranteed under
part B and income-based repayment plans for loans made under
part D. In addition, such information shall include information
to enable borrowers to assess the practical consequences of
loan consolidation, including differences in deferment
eligibility, interest rates, monthly payments, and finance
charges, and samples of loan consolidation profiles to
illustrate such consequences. The Secretary shall provide
information concerning the specific terms and conditions under
which students may obtain partial or total cancellation or
defer repayment of loans for service, shall indicate (in terms
of the Federal minimum wage) the maximum level of compensation
and allowances that a student borrower may receive from a tax-
exempt organization to qualify for a deferment, and shall
explicitly state that students may qualify for such partial
cancellations or deferments when they serve as a paid employee
of a tax-exempt organization. The Secretary shall also provide
information on loan forbearance, including the increase in debt
that results from capitalization of interest. Such information
shall be provided by eligible institutions and eligible lenders
at any time that information regarding loan availability is
provided to any student.
(2) The Secretary, to the extent the information is
available, shall compile information describing State and other
prepaid tuition programs and savings programs and disseminate
such information to States, eligible institutions, students,
and parents in departmental publications.
(3) The Secretary, to the extent practicable, shall update
the Department's Internet site to include direct links to
databases that contain information on public and private
financial assistance programs. The Secretary shall only provide
direct links to databases that can be accessed without charge
and shall make reasonable efforts to verify that the databases
included in a direct link are not providing fraudulent
information. The Secretary shall prominently display adjacent
to any such direct link a disclaimer indicating that a direct
link to a database does not constitute an endorsement or
recommendation of the database, the provider of the database,
or any services or products of such provider. The Secretary
shall provide additional direct links to information resources
from which students may obtain information about fraudulent and
deceptive practices in the provision of services related to
student financial aid.
(4) The Secretary shall widely publicize the location of the
information described in paragraph (1) among the public,
eligible institutions, and eligible lenders, and promote the
use of such information by prospective students, enrolled
students, families of prospective and enrolled students, and
borrowers.
(e) Disclosures Required With Respect to Athletically Related
Student Aid.--(1) Each institution of higher education which
participates in any program under this title and is attended by
students receiving athletically related student aid shall
annually submit a report to the Secretary which contains--
(A) the number of students at the institution of
higher education who received athletically related
student aid broken down by race and sex in the
following sports: basketball, football, baseball, cross
country/track, and all other sports combined;
(B) the number of students at the institution of
higher education, broken down by race and sex;
(C) the completion or graduation rate for students at
the institution of higher education who received
athletically related student aid broken down by race
and sex in the following sports: basketball, football,
baseball, cross country/track and all other sports
combined;
(D) the completion or graduation rate for students at
the institution of higher education, broken down by
race and sex;
(E) the average completion or graduation rate for the
4 most recent completing or graduating classes of
students at the institution of higher education who
received athletically related student aid broken down
by race and sex in the following categories:
basketball, football, baseball, cross country/track,
and all other sports combined; and
(F) the average completion or graduation rate for the
4 most recent completing or graduating classes of
students at the institution of higher education broken
down by race and sex.
(2) When an institution described in paragraph (1) of this
subsection offers a potential student athlete athletically
related student aid, such institution shall provide to the
student and the student's parents, guidance counselor, and
coach the information contained in the report submitted by such
institution pursuant to paragraph (1). If the institution is a
member of a national collegiate athletic association that
compiles graduation rate data on behalf of the association's
member institutions that the Secretary determines is
substantially comparable to the information described in
paragraph (1), the distribution of the compilation of such data
to all secondary schools in the United States shall fulfill the
responsibility of the institution to provide information to a
prospective student athlete's guidance counselor and coach.
(3) For purposes of this subsection, institutions
may--
(A) exclude from the reporting requirements
under paragraphs (1) and (2) the completion or
graduation rates of students and student
athletes who leave school to serve in the Armed
Forces, on official church missions, or with a
recognized foreign aid service of the Federal
Government; or
(B) in cases where the students described in
subparagraph (A) represent 20 percent or more
of the certificate- or degree-seeking, full-
time, undergraduate students at the
institution, calculate the completion or
graduation rates of such students by excluding
from the calculations described in paragraph
(1) the time period during which such students
were not enrolled due to their service in the
Armed Forces, on official church missions, or
with a recognized foreign aid service of the
Federal Government.
(4) Each institution of higher education described in
paragraph (1) may provide supplemental information to students
and the Secretary showing the completion or graduation rate
when such completion or graduation rate includes students
transferring into and out of such institution.
(5) The Secretary, using the reports submitted under this
subsection, shall compile and publish a report containing the
information required under paragraph (1) broken down by--
(A) individual institutions of higher education; and
(B) athletic conferences recognized by the National
Collegiate Athletic Association and the National
Association of Intercollegiate Athletics.
(6) The Secretary shall waive the requirements of this
subsection for any institution of higher education that is a
member of an athletic association or athletic conference that
has voluntarily published completion or graduation rate data or
has agreed to publish data that, in the opinion of the
Secretary, is substantially comparable to the information
required under this subsection.
(7) The Secretary, in conjunction with the National Junior
College Athletic Association, shall develop and obtain data on
completion or graduation rates from two-year colleges that
award athletically related student aid. Such data shall, to the
extent practicable, be consistent with the reporting
requirements set forth in this section.
(8) For purposes of this subsection, the term ``athletically
related student aid'' means any scholarship, grant, or other
form of financial assistance the terms of which require the
recipient to participate in a program of intercollegiate
athletics at an institution of higher education in order to be
eligible to receive such assistance.
(9) The reports required by this subsection shall be due each
July 1 and shall cover the 1-year period ending August 31 of
the preceding year.
(f) Disclosure of Campus Security Policy and Campus Crime
Statistics.--(1) Each eligible institution participating in any
program under this title, other than a foreign institution of
higher education, shall on August 1, 1991, begin to collect the
following information with respect to campus crime statistics
and campus security policies of that institution, and beginning
September 1, 1992, and each year thereafter, prepare, publish,
and distribute, through appropriate publications or mailings,
to all current students and employees, and to any applicant for
enrollment or employment upon request, an annual security
report containing at least the following information with
respect to the campus security policies and campus crime
statistics of that institution:
(A) A statement of current campus policies regarding
procedures and facilities for students and others to
report criminal actions or other emergencies occurring
on campus and policies concerning the institution's
response to such reports.
(B) A statement of current policies concerning
security and access to campus facilities, including
campus residences, and security considerations used in
the maintenance of campus facilities.
(C) A statement of current policies concerning campus
law enforcement, including--
(i) the law enforcement authority of campus
security personnel;
(ii) the working relationship of campus
security personnel with State and local law
enforcement agencies, including whether the
institution has agreements with such agencies,
such as written memoranda of understanding, for
the investigation of alleged criminal offenses;
and
(iii) policies which encourage accurate and
prompt reporting of all crimes to the campus
police and the appropriate law enforcement
agencies, when the victim of such crime elects
or is unable to make such a report.
(D) A description of the type and frequency of
programs designed to inform students and employees
about campus security procedures and practices and to
encourage students and employees to be responsible for
their own security and the security of others.
(E) A description of programs designed to inform
students and employees about the prevention of crimes.
(F) Statistics concerning the occurrence on campus,
in or on noncampus buildings or property, and on public
property during the most recent calendar year, and
during the 2 preceding calendar years for which data
are available--
(i) of the following criminal offenses
reported to campus security authorities or
local police agencies:
(I) murder;
(II) sex offenses, forcible or
nonforcible;
(III) robbery;
(IV) aggravated assault;
(V) burglary;
(VI) motor vehicle theft;
(VII) manslaughter;
(VIII) arson;
(IX) arrests or persons referred for
campus disciplinary action for liquor
law violations, drug-related
violations, and weapons possession;
(ii) of the crimes described in subclauses
(I) through (VIII) of clause (i), of larceny-
theft, simple assault, intimidation, and
destruction, damage, or vandalism of property,
and of other crimes involving bodily injury to
any person, in which the victim is
intentionally selected because of the actual or
perceived race, gender, religion, national
origin, sexual orientation, gender identity,,
ethnicity, or disability of the victim that are
reported to campus security authorities or
local police agencies, which data shall be
collected and reported according to category of
prejudice;
(iii) of domestic violence, dating violence,
and stalking incidents that were reported to
campus security authorities or local police
agencies; and
(iv) of hazing incidents that were reported
to campus security authorities or local police
agencies.
(G) A statement of policy concerning the monitoring
and recording through local police agencies of criminal
activity at off-campus student organizations which are
recognized by the institution and that are engaged in
by students attending the institution, including those
student organizations with off-campus housing
facilities.
(H) A statement of policy regarding the possession,
use, and sale of alcoholic beverages and enforcement of
State underage drinking laws and a statement of policy
regarding the possession, use, and sale of illegal
drugs and enforcement of Federal and State drug laws
and a description of any drug or alcohol abuse
education programs as required under section 120 of
this Act.
(I) A statement advising the campus community where
law enforcement agency information provided by a State
under section 170101(j) of the Violent Crime Control
and Law Enforcement Act of 1994 (42 U.S.C. 14071(j)),
concerning registered sex offenders may be obtained,
such as the law enforcement office of the institution,
a local law enforcement agency with jurisdiction for
the campus, or a computer network address.
(J) A statement of current campus policies
regarding immediate emergency response and
evacuation procedures, including the use of
electronic and cellular communication (if
appropriate), which policies shall include
procedures to--
(i) immediately notify the campus
community upon the confirmation of a
significant emergency or dangerous
situation involving an immediate threat
to the health or safety of students or
staff occurring on the campus, as
defined in paragraph (6), unless
issuing a notification will compromise
efforts to contain the emergency;
(ii) publicize emergency response and
evacuation procedures on an annual
basis in a manner designed to reach
students and staff; and
(iii) test emergency response and
evacuation procedures on an annual
basis.
(K) A statement of current policies relating
to hazing (as defined by the institution), how
to report incidents of such hazing, and the
process used to investigate such incidents of
hazing, and information on applicable local,
State, and Tribal laws on hazing (as defined by
such local, State, and Tribal laws).
(L) A statement of policy regarding
prevention and awareness programs related to
hazing (as defined by the institution) that
includes a description of research-informed
campus-wide prevention programs designed to
reach students, staff, and faculty, which
includes--
(i) the information referred to in
subparagraph (K); and
(ii) primary prevention strategies intended
to stop hazing before hazing occurs, which may
include skill building for bystander
intervention, information about ethical
leadership, and the promotion of strategies for
building group cohesion without hazing.
(2) Nothing in this subsection shall be construed to
authorize the Secretary to require particular policies,
procedures, or practices by institutions of higher education
with respect to campus crimes or campus security.
(3) Each institution participating in any program under this
title, other than a foreign institution of higher education,
shall make timely reports to the campus community on crimes
considered to be a threat to other students and employees
described in paragraph (1)(F) that are reported to campus
security or local law police agencies. Such reports shall be
provided to students and employees in a manner that is timely,
that withholds the names of victims as confidential, and that
will aid in the prevention of similar occurrences.
(4)(A) Each institution participating in any program under
this title, other than a foreign institution of higher
education, that maintains a police or security department of
any kind shall make, keep, and maintain a daily log, written in
a form that can be easily understood, recording all crimes
reported to such police or security department, including--
(i) the nature, date, time, and general location of
each crime; and
(ii) the disposition of the complaint, if known.
(B)(i) All entries that are required pursuant to this
paragraph shall, except where disclosure of such information is
prohibited by law or such disclosure would jeopardize the
confidentiality of the victim, be open to public inspection
within two business days of the initial report being made to
the department or a campus security authority.
(ii) If new information about an entry into a log becomes
available to a police or security department, then the new
information shall be recorded in the log not later than two
business days after the information becomes available to the
police or security department.
(iii) If there is clear and convincing evidence that the
release of such information would jeopardize an ongoing
criminal investigation or the safety of an individual, cause a
suspect to flee or evade detection, or result in the
destruction of evidence, such information may be withheld until
that damage is no longer likely to occur from the release of
such information.
(5) On an annual basis, each institution participating in any
program under this title, other than a foreign institution of
higher education, shall submit to the Secretary a copy of the
statistics required to be made available under paragraph
(1)(F). The Secretary shall--
(A) review such statistics and report to the
authorizing committees on campus crime statistics by
September 1, 2000;
(B) make copies of the statistics submitted to the
Secretary available to the public; and
(C) in coordination with representatives of
institutions of higher education, identify exemplary
campus security policies, procedures, and practices and
disseminate information concerning those policies,
procedures, and practices that have proven effective in
the reduction of campus crime.
(6)(A) In this subsection:
(i) The terms ``dating violence'', ``domestic
violence'', and ``stalking'' have the meaning given
such terms in section 40002(a) of the Violence Against
Women Act of 1994 (42 U.S.C. 13925(a)).
(ii) The term ``campus'' means--
(I) any building or property owned or
controlled by an institution of higher
education within the same reasonably contiguous
geographic area of the institution and used by
the institution in direct support of, or in a
manner related to, the institution's
educational purposes, including residence
halls; and
(II) property within the same reasonably
contiguous geographic area of the institution
that is owned by the institution but controlled
by another person, is used by students, and
supports institutional purposes (such as a food
or other retail vendor).
(iii) The term ``noncampus building or property''
means--
(I) any building or property owned or
controlled by a student organization recognized
by the institution; and
(II) any building or property (other than a
branch campus) owned or controlled by an
institution of higher education that is used in
direct support of, or in relation to, the
institution's educational purposes, is used by
students, and is not within the same reasonably
contiguous geographic area of the institution.
(iv) The term ``public property'' means all public
property that is within the same reasonably contiguous
geographic area of the institution, such as a sidewalk,
a street, other thoroughfare, or parking facility, and
is adjacent to a facility owned or controlled by the
institution if the facility is used by the institution
in direct support of, or in a manner related to the
institution's educational purposes.
(v) The term ``sexual assault'' means an offense
classified as a forcible or nonforcible sex offense
under the uniform crime reporting system of the Federal
Bureau of Investigation.
(vi) The term ``hazing'', for purposes of reporting
statistics on hazing incidents under paragraph
(1)(F)(iv), means any intentional, knowing, or reckless
act committed by a person (whether individually or in
concert with other persons) against another person or
persons regardless of the willingness of such other
person or persons to participate, that--
(I) is committed in the course of an
initiation into, an affiliation with, or the
maintenance of membership in, a student
organization; and
(II) causes or creates a risk, above the
reasonable risk encountered in the course of
participation in the institution of higher
education or the organization (such as the
physical preparation necessary for
participation in an athletic team), of physical
or psychological injury including--
(aa) whipping, beating, striking,
electronic shocking, placing of a
harmful substance on someone's body, or
similar activity;
(bb) causing, coercing, or otherwise
inducing sleep deprivation, exposure to
the elements, confinement in a small
space, extreme calisthenics, or other
similar activity;
(cc) causing, coercing, or otherwise
inducing another person to consume
food, liquid, alcohol, drugs, or other
substances;
(dd) causing, coercing, or otherwise
inducing another person to perform
sexual acts;
(ee) any activity that places another
person in reasonable fear of bodily
harm through the use of threatening
words or conduct;
(ff) any activity against another
person that includes a criminal
violation of local, State, Tribal, or
Federal law; and
(gg) any activity that induces,
causes, or requires another person to
perform a duty or task that involves a
criminal violation of local, State,
Tribal, or Federal law.
(vii) The term ``student organization'', for purposes
of reporting under paragraph (1)(F)(iv) and paragraph
(9)(A), means an organization at an institution of
higher education (such as a club, society, association,
varsity or junior varsity athletic team, club sports
team, fraternity, sorority, band, or student
government) in which two or more of the members are
students enrolled at the institution of higher
education, whether or not the organization is
established or recognized by the institution.
(B) In cases where branch campuses of an institution of
higher education, schools within an institution of higher
education, or administrative divisions within an institution
are not within a reasonably contiguous geographic area, such
entities shall be considered separate campuses for purposes of
the reporting requirements of this section.
(7) The statistics described in clauses (i) and (ii) of
paragraph (1)(F) shall be compiled in accordance with the
definitions used in the uniform crime reporting system of the
Department of Justice, Federal Bureau of Investigation, and the
modifications in such definitions as implemented pursuant to
the Hate Crime Statistics Act. For the offenses of domestic
violence, dating violence, and stalking, such statistics shall
be compiled in accordance with the definitions used in section
40002(a) of the Violence Against Women Act of 1994 (42 U.S.C.
13925(a)). Such statistics shall not identify victims of crimes
or persons accused of crimes.
(8)(A) Each institution of higher education participating in
any program under this title and title IV of the Economic
Opportunity Act of 1964, other than a foreign institution of
higher education, shall develop and distribute as part of the
report described in paragraph (1) a statement of policy
regarding--
(i) such institution's programs to prevent domestic
violence, dating violence, sexual assault, and
stalking; and
(ii) the procedures that such institution will follow
once an incident of domestic violence, dating violence,
sexual assault, or stalking has been reported,
including a statement of the standard of evidence that
will be used during any institutional conduct
proceeding arising from such a report.
(B) The policy described in subparagraph (A) shall address
the following areas:
(i) Education programs to promote the awareness of
rape, acquaintance rape, domestic violence, dating
violence, sexual assault, and stalking, which shall
include--
(I) primary prevention and awareness programs
for all incoming students and new employees,
which shall include--
(aa) a statement that the institution
of higher education prohibits the
offenses of domestic violence, dating
violence, sexual assault, and stalking;
(bb) the definition of domestic
violence, dating violence, sexual
assault, and stalking in the applicable
jurisdiction;
(cc) the definition of consent, in
reference to sexual activity, in the
applicable jurisdiction;
(dd) safe and positive options for
bystander intervention that may be
carried out by an individual to prevent
harm or intervene when there is a risk
of domestic violence, dating violence,
sexual assault, or stalking against a
person other than such individual;
(ee) information on risk reduction to
recognize warning signs of abusive
behavior and how to avoid potential
attacks; and
(ff) the information described in
clauses (ii) through (vii); and
(II) ongoing prevention and awareness
campaigns for students and faculty, including
information described in items (aa) through
(ff) of subclause (I).
(ii) Possible sanctions or protective measures that
such institution may impose following a final
determination of an institutional disciplinary
procedure regarding rape, acquaintance rape, domestic
violence, dating violence, sexual assault, or stalking.
(iii) Procedures victims should follow if a sex
offense, domestic violence, dating violence, sexual
assault, or stalking has occurred, including
information in writing about--
(I) the importance of preserving evidence as
may be necessary to the proof of criminal
domestic violence, dating violence, sexual
assault, or stalking, or in obtaining a
protection order;
(II) to whom the alleged offense should be
reported;
(III) options regarding law enforcement and
campus authorities, including notification of
the victim's option to--
(aa) notify proper law enforcement
authorities, including on-campus and
local police;
(bb) be assisted by campus
authorities in notifying law
enforcement authorities if the victim
so chooses; and
(cc) decline to notify such
authorities; and
(IV) where applicable, the rights of victims
and the institution's responsibilities
regarding orders of protection, no contact
orders, restraining orders, or similar lawful
orders issued by a criminal, civil, or tribal
court.
(iv) Procedures for institutional disciplinary action
in cases of alleged domestic violence, dating violence,
sexual assault, or stalking, which shall include a
clear statement that--
(I) such proceedings shall--
(aa) provide a prompt, fair, and
impartial investigation and resolution;
and
(bb) be conducted by officials who
receive annual training on the issues
related to domestic violence, dating
violence, sexual assault, and stalking
and how to conduct an investigation and
hearing process that protects the
safety of victims and promotes
accountability;
(II) the accuser and the accused are entitled
to the same opportunities to have others
present during an institutional disciplinary
proceeding, including the opportunity to be
accompanied to any related meeting or
proceeding by an advisor of their choice; and
(III) both the accuser and the accused shall
be simultaneously informed, in writing, of--
(aa) the outcome of any institutional
disciplinary proceeding that arises
from an allegation of domestic
violence, dating violence, sexual
assault, or stalking;
(bb) the institution's procedures for
the accused and the victim to appeal
the results of the institutional
disciplinary proceeding;
(cc) of any change to the results
that occurs prior to the time that such
results become final; and
(dd) when such results become final.
(v) Information about how the institution will
protect the confidentiality of victims, including how
publicly-available recordkeeping will be accomplished
without the inclusion of identifying information about
the victim, to the extent permissible by law.
(vi) Written notification of students and employees
about existing counseling, health, mental health,
victim advocacy, legal assistance, and other services
available for victims both on-campus and in the
community.
(vii) Written notification of victims about options
for, and available assistance in, changing academic,
living, transportation, and working situations, if so
requested by the victim and if such accommodations are
reasonably available, regardless of whether the victim
chooses to report the crime to campus police or local
law enforcement.
(C) A student or employee who reports to an institution of
higher education that the student or employee has been a victim
of domestic violence, dating violence, sexual assault, or
stalking, whether the offense occurred on or off campus, shall
be provided with a written explanation of the student or
employee's rights and options, as described in clauses (ii)
through (vii) of subparagraph (B).
(9)(A) Each institution participating in any program under
this title, other than a foreign institution of higher
education, shall develop, in accordance with the institution's
statement of policy relating to hazing under paragraph (1)(K),
a report (which shall be referred to as the ``Campus Hazing
Transparency Report'') summarizing findings concerning any
student organization (except that this shall only apply to
student organizations that are established or recognized by the
institution) found to be in violation of an institution's
standards of conduct relating to hazing, as defined by the
institution, (hereinafter referred to in this paragraph as a
``hazing violation'') that requires the institution to--
(i) beginning July 1, 2025, collect information with
respect to hazing incidents at the institution;
(ii) not later than 12 months after the date of the
enactment of the Stop Campus Hazing Act, make the
Campus Hazing Transparency Report publicly available on
the public website of the institution; and
(iii) not less frequently than 2 times each year,
update the Campus Hazing Transparency Report to
include, for the period beginning on the date on which
the Report was last published and ending on the date on
which such update is submitted, each incident involving
a student organization for which a finding of
responsibility is issued relating to a hazing
violation, including--
(I) the name of such student organization;
(II) a general description of the violation
that resulted in a finding of responsibility,
including whether the violation involved the
abuse or illegal use of alcohol or drugs, the
findings of the institution, and any sanctions
placed on the student organization by the
institution, as applicable; and
(III) the dates on which--
(aa) the incident was alleged to have
occurred;
(bb) the investigation into the
incident was initiated;
(cc) the investigation ended with a
finding that a hazing violation
occurred; and
(dd) the institution provided notice
to the student organization that the
incident resulted in a hazing
violation.
(B) The Campus Hazing Transparency Report may include--
(i) to satisfy the requirements of this paragraph,
information that--
(I) is included as part of a report published
by the institution; and
(II) meets the requirements of the Campus
Hazing Transparency Report; and
(ii) any additional information--
(I) determined by the institution to be
necessary; or
(II) reported as required by State law.
(C) The Campus Hazing Transparency Report shall not include
any personally identifiable information, including any
information that would reveal personally identifiable
information, about any individual student in accordance with
section 444 of the General Education Provisions Act (commonly
known as the ``Family Educational Rights and Privacy Act of
1974'').
(D) The institution shall publish, in a prominent location on
the public website of the institution, the Campus Hazing
Transparency Report, including--
(i) a statement notifying the public of the annual
availability of statistics on hazing pursuant to the
report required under paragraph (1)(F), including a
link to such report;
(ii) information about the institution's policies
relating to hazing under paragraph (1)(K) and
applicable local, State, and Tribal laws on hazing; and
(iii) the information included in each update
required under subparagraph (A)(iii), which shall be
maintained for a period of 5 calendar years from the
date of publication of such update.
(E) The institution may include, as part of the publication
of the Campus Hazing Transparency Report under subparagraph
(D), a description of the purposes of, and differences
between--
(i) the report required under paragraph (1)(F); and
(ii) the Campus Hazing Transparency Report required
under this paragraph.
(F) For purposes of this paragraph, the definition of
``campus'' under paragraph (6)(A)(ii) shall not apply.
(G) An institution described in subparagraph (A) is not
required to--
(i) develop the Campus Hazing Transparency Report
under this subsection until such institution has a
finding of a hazing violation; or
(ii) update the Campus Hazing Transparency Report in
accordance with clause (iii) of subparagraph (A) for a
period described in such clause if such institution
does not have a finding of a hazing violation for such
period.
(10) The Secretary, in consultation with the Attorney General
of the United States, shall provide technical assistance in
complying with the provisions of this section to an institution
of higher education who requests such assistance.
(11) Nothing in this section shall be construed to require
the reporting or disclosure of privileged information.
(12) The Secretary shall report to the appropriate committees
of Congress each institution of higher education that the
Secretary determines is not in compliance with the reporting
requirements of this subsection.
(13) For purposes of reporting the statistics with respect to
crimes described in paragraph (1)(F), an institution of higher
education shall distinguish, by means of separate categories,
any criminal offenses that occur--
(A) on campus;
(B) in or on a noncampus building or property;
(C) on public property; and
(D) in dormitories or other residential facilities
for students on campus.
(14) Upon a determination pursuant to section 487(c)(3)(B)
that an institution of higher education has substantially
misrepresented the number, location, or nature of the crimes
required to be reported under this subsection, the Secretary
shall impose a civil penalty upon the institution in the same
amount and pursuant to the same procedures as a civil penalty
is imposed under section 487(c)(3)(B).
(15)(A) Nothing in this subsection may be construed to--
(i) create a cause of action against any institution
of higher education or any employee of such an
institution for any civil liability; or
(ii) establish any standard of care.
(B) Notwithstanding any other provision of law, evidence
regarding compliance or noncompliance with this subsection
shall not be admissible as evidence in any proceeding of any
court, agency, board, or other entity, except with respect to
an action to enforce this subsection.
(16) The Secretary shall annually report to the
authorizing committees regarding compliance with this
subsection by institutions of higher education,
including an up-to-date report on the Secretary's
monitoring of such compliance.
(17)(A) The Secretary shall seek the advice and counsel of
the Attorney General of the United States concerning the
development, and dissemination to institutions of higher
education, of best practices information about campus safety
and emergencies.
(B) The Secretary shall seek the advice and counsel of the
Attorney General of the United States and the Secretary of
Health and Human Services concerning the development, and
dissemination to institutions of higher education, of best
practices information about preventing and responding to
incidents of domestic violence, dating violence, sexual
assault, and stalking, including elements of institutional
policies that have proven successful based on evidence-based
outcome measurements.
(18) No officer, employee, or agent of an institution
participating in any program under this title shall retaliate,
intimidate, threaten, coerce, or otherwise discriminate against
any individual for exercising their rights or responsibilities
under any provision of this subsection.
(19) This subsection may be cited as the ``Jeanne Clery
Campus Safety Act''.
(g) Data Required.--
(1) In general.--Each coeducational institution of
higher education that participates in any program under
this title, and has an intercollegiate athletic
program, shall annually, for the immediately preceding
academic year, prepare a report that contains the
following information regarding intercollegiate
athletics:
(A) The number of male and female full-time
undergraduates that attended the institution.
(B) A listing of the varsity teams that
competed in intercollegiate athletic
competition and for each such team the
following data:
(i) The total number of participants,
by team, as of the day of the first
scheduled contest for the team.
(ii) Total operating expenses
attributable to such teams, except that
an institution may also report such
expenses on a per capita basis for each
team and expenditures attributable to
closely related teams such as track and
field or swimming and diving, may be
reported together, although such
combinations shall be reported
separately for men's and women's teams.
(iii) Whether the head coach is male
or female and whether the head coach is
assigned to that team on a full-time or
part-time basis. Graduate assistants
and volunteers who serve as head
coaches shall be considered to be head
coaches for the purposes of this
clause.
(iv) The number of assistant coaches
who are male and the number of
assistant coaches who are female for
each team and whether a particular
coach is assigned to that team on a
full-time or part-time basis. Graduate
assistants and volunteers who serve as
assistant coaches shall be considered
to be assistant coaches for the
purposes of this clause.
(C) The total amount of money spent on
athletically related student aid, including the
value of waivers of educational expenses,
separately for men's and women's teams overall.
(D) The ratio of athletically related student
aid awarded male athletes to athletically
related student aid awarded female athletes.
(E) The total amount of expenditures on
recruiting, separately for men's and women's
teams overall.
(F) The total annual revenues generated
across all men's teams and across all women's
teams, except that an institution may also
report such revenues by individual team.
(G) The average annual institutional salary
of the head coaches of men's teams, across all
offered sports, and the average annual
institutional salary of the head coaches of
women's teams, across all offered sports.
(H) The average annual institutional salary
of the assistant coaches of men's teams, across
all offered sports, and the average annual
institutional salary of the assistant coaches
of women's teams, across all offered sports.
(I)(i) The total revenues, and the revenues
from football, men's basketball, women's
basketball, all other men's sports combined and
all other women's sports combined, derived by
the institution from the institution's
intercollegiate athletics activities.
(ii) For the purpose of clause (i), revenues
from intercollegiate athletics activities
allocable to a sport shall include (without
limitation) gate receipts, [broadcast revenues]
media rights revenues (including revenues from
broadcasting, streaming, or digital
distribution of intercollegiate athletic
events), appearance guarantees and options,
concessions, and advertising, but revenues such
as student activities fees or alumni
contributions not so allocable shall be
included in the calculation of total revenues
only.
(J)(i) The total expenses, and the expenses
attributable to football, men's basketball,
women's basketball, all other men's sports
combined, and all other women's sports
combined, made by the institution for the
institution's intercollegiate athletics
activities.
(ii) For the purpose of clause (i), expenses
for intercollegiate athletics activities
allocable to a sport shall include (without
limitation) grants-in-aid, salaries, travel,
equipment, and supplies, but expenses such as
general and administrative overhead not so
allocable shall be included in the calculation
of total expenses only.
(K) With respect to fees charged to students
to support intercollegiate athletic programs--
(i) the total amount of such fees
charged to students;
(ii) the uses of such fees with
respect to facilities, operating
expenses, scholarships, payments to
athletes, salaries of coaches and
support staff, and any other expenses
reported under this paragraph; and
(iii) the percentage of the total
cost of such programs covered by such
fees.
(2) Special rule.--For the purposes of paragraph
(1)(G), if a coach has responsibilities for more than
one team and the institution does not allocate such
coach's salary by team, the institution should divide
the salary by the number of teams for which the coach
has responsibility and allocate the salary among the
teams on a basis consistent with the coach's
responsibilities for the different teams.
(3) Disclosure of information to students and
public.--An institution of higher education described
in paragraph (1) shall make available to students and
potential students, upon request, and to the public,
the information contained in the report described in
paragraph (1), except [that all students] that--
(A) all students shall be informed of their
right to request such information[.]; and
(B) with respect to the information described
in paragraph (1)(K), the institution shall
annually publish such information on a publicly
available website of the institution not later
than October 15 following the end of each
fiscal year of the institution.
(4) Submission; report; information availability.--
(A) On an annual basis, each institution of higher
education described in paragraph (1) shall provide to
the Secretary, within 15 days of the date that the
institution makes available the report under paragraph
(1), the information contained in the report.
(B) The Secretary shall ensure that the reports
described in subparagraph (A) are made available to the
public within a reasonable period of time.
(C) Not later than 180 days after the date of
enactment of the Higher Education Amendments of 1998,
the Secretary shall notify all secondary schools in all
States regarding the availability of the information
made available under paragraph (1), and how such
information may be accessed.
(5) Definition.--For the purposes of this subsection,
the term ``operating expenses'' means expenditures on
lodging and meals, transportation, officials, uniforms
and equipment.
(h) Transfer of Credit Policies.--
(1) Disclosure.--Each institution of higher education
participating in any program under this title shall
publicly disclose, in a readable and comprehensible
manner, the transfer of credit policies established by
the institution which shall include a statement of the
institution's current transfer of credit policies that
includes, at a minimum--
(A) any established criteria the institution
uses regarding the transfer of credit earned at
another institution of higher education; and
(B) a list of institutions of higher
education with which the institution has
established an articulation agreement.
(2) Rule of construction.--Nothing in this subsection
shall be construed to--
(A) authorize the Secretary or the National
Advisory Committee on Institutional Quality and
Integrity to require particular policies,
procedures, or practices by institutions of
higher education with respect to transfer of
credit;
(B) authorize an officer or employee of the
Department to exercise any direction,
supervision, or control over the curriculum,
program of instruction, administration, or
personnel of any institution of higher
education, or over any accrediting agency or
association;
(C) limit the application of the General
Education Provisions Act; or
(D) create any legally enforceable right on
the part of a student to require an institution
of higher education to accept a transfer of
credit from another institution.
(i) Disclosure of Fire Safety Standards and Measures.--
(1) Annual fire safety reports on student housing
required.--Each eligible institution participating in
any program under this title that maintains on-campus
student housing facilities shall, on an annual basis,
publish a fire safety report, which shall contain
information with respect to the campus fire safety
practices and standards of that institution,
including--
(A) statistics concerning the following in
each on-campus student housing facility during
the most recent calendar years for which data
are available:
(i) the number of fires and the cause
of each fire;
(ii) the number of injuries related
to a fire that result in treatment at a
medical facility;
(iii) the number of deaths related to
a fire; and
(iv) the value of property damage
caused by a fire;
(B) a description of each on-campus student
housing facility fire safety system, including
the fire sprinkler system;
(C) the number of regular mandatory
supervised fire drills;
(D) policies or rules on portable electrical
appliances, smoking, and open flames (such as
candles), procedures for evacuation, and
policies regarding fire safety education and
training programs provided to students,
faculty, and staff; and
(E) plans for future improvements in fire
safety, if determined necessary by such
institution.
(2) Report to the secretary.--Each institution
described in paragraph (1) shall, on an annual basis,
submit to the Secretary a copy of the statistics
required to be made available under paragraph (1)(A).
(3) Current information to campus community.--Each
institution described in paragraph (1) shall--
(A) make, keep, and maintain a log, recording
all fires in on-campus student housing
facilities, including the nature, date, time,
and general location of each fire; and
(B) make annual reports to the campus
community on such fires.
(4) Responsibilities of the secretary.--The Secretary
shall--
(A) make the statistics submitted under
paragraph (1)(A) to the Secretary available to
the public; and
(B) in coordination with nationally
recognized fire organizations and
representatives of institutions of higher
education, representatives of associations of
institutions of higher education, and other
organizations that represent and house a
significant number of students--
(i) identify exemplary fire safety
policies, procedures, programs, and
practices, including the installation,
to the technical standards of the
National Fire Protection Association,
of fire detection, prevention, and
protection technologies in student
housing, dormitories, and other
buildings;
(ii) disseminate the exemplary
policies, procedures, programs and
practices described in clause (i) to
the Administrator of the United States
Fire Administration;
(iii) make available to the public
information concerning those policies,
procedures, programs, and practices
that have proven effective in the
reduction of fires; and
(iv) develop a protocol for
institutions to review the status of
their fire safety systems.
(5) Rules of construction.--Nothing in this
subsection shall be construed to--
(A) authorize the Secretary to require
particular policies, procedures, programs, or
practices by institutions of higher education
with respect to fire safety, other than with
respect to the collection, reporting, and
dissemination of information required by this
subsection;
(B) affect section 444 of the General
Education Provisions Act (commonly known as the
``Family Educational Rights and Privacy Act of
1974'') or the regulations issued under section
264 of the Health Insurance Portability and
Accountability Act of 1996 (42 U.S.C. 1320d-2
note);
(C) create a cause of action against any
institution of higher education or any employee
of such an institution for any civil liability;
or
(D) establish any standard of care.
(6) Compliance report.--The Secretary shall annually
report to the authorizing committees regarding
compliance with this subsection by institutions of
higher education, including an up-to-date report on the
Secretary's monitoring of such compliance.
(7) Evidence.--Notwithstanding any other provision of
law, evidence regarding compliance or noncompliance
with this subsection shall not be admissible as
evidence in any proceeding of any court, agency, board,
or other entity, except with respect to an action to
enforce this subsection.
(j) Missing Person Procedures.--
(1) Option and procedures.--Each institution of
higher education that provides on-campus housing and
participates in any program under this title shall--
(A) establish a missing student notification
policy for students who reside in on-campus
housing that--
(i) informs each such student that
such student has the option to identify
an individual to be contacted by the
institution not later than 24 hours
after the time that the student is
determined missing in accordance with
official notification procedures
established by the institution under
subparagraph (B);
(ii) provides each such student a
means to register confidential contact
information in the event that the
student is determined to be missing for
a period of more than 24 hours;
(iii) advises each such student who
is under 18 years of age, and not an
emancipated individual, that the
institution is required to notify a
custodial parent or guardian not later
24 hours after the time that the
student is determined to be missing in
accordance with such procedures;
(iv) informs each such residing
student that the institution will
notify the appropriate law enforcement
agency not later than 24 hours after
the time that the student is determined
missing in accordance with such
procedures; and
(v) requires, if the campus security
or law enforcement personnel has been
notified and makes a determination that
a student who is the subject of a
missing person report has been missing
for more than 24 hours and has not
returned to the campus, the institution
to initiate the emergency contact
procedures in accordance with the
student's designation; and
(B) establish official notification
procedures for a missing student who resides in
on-campus housing that--
(i) includes procedures for official
notification of appropriate individuals
at the institution that such student
has been missing for more than 24
hours;
(ii) requires any official missing
person report relating to such student
be referred immediately to the
institution's police or campus security
department; and
(iii) if, on investigation of the
official report, such department
determines that the missing student has
been missing for more than 24 hours,
requires--
(I) such department to
contact the individual
identified by such student
under subparagraph (A)(i);
(II) if such student is under
18 years of age, and not an
emancipated individual, the
institution to immediately
contact the custodial parent or
legal guardian of such student;
and
(III) if subclauses (I) or
(II) do not apply to a student
determined to be a missing
person, inform the appropriate
law enforcement agency.
(2) Rule of construction.--Nothing in this subsection
shall be construed--
(A) to provide a private right of action to
any person to enforce any provision of this
subsection; or
(B) to create a cause of action against any
institution of higher education or any employee
of the institution for any civil liability.
(l) Entrance Counseling for Borrowers.--
(1) Disclosure required prior to disbursement.--
(A) In general.--Each eligible institution
shall, at or prior to the time of a
disbursement to a first-time borrower of a loan
made, insured, or guaranteed under part B
(other than a loan made pursuant to section
428C or a loan made on behalf of a student
pursuant to section 428B) or made under part D
(other than a Federal Direct Consolidation Loan
or a Federal Direct PLUS loan made on behalf of
a student), ensure that the borrower receives
comprehensive information on the terms and
conditions of the loan and of the
responsibilities the borrower has with respect
to such loan in accordance with paragraph (2).
Such information--
(i) shall be provided in a simple and
understandable manner; and
(ii) may be provided--
(I) during an entrance
counseling session conduction
in person;
(II) on a separate written
form provided to the borrower
that the borrower signs and
returns to the institution; or
(III) online, with the
borrower acknowledging receipt
of the information.
(B) Use of interactive programs.--The
Secretary shall encourage institutions to carry
out the requirements of subparagraph (A)
through the use of interactive programs that
test the borrower's understanding of the terms
and conditions of the borrower's loans under
part B or D, using simple and understandable
language and clear formatting.
(2) Information to be provided.--The information to
be provided to the borrower under paragraph (1)(A)
shall include the following:
(A) To the extent practicable, the effect of
accepting the loan to be disbursed on the
eligibility of the borrower for other forms of
student financial assistance.
(B) An explanation of the use of the master
promissory note.
(C) Information on how interest accrues and
is capitalized during periods when the interest
is not paid by either the borrower or the
Secretary.
(D) In the case of a loan made under section
428B or 428H, a Federal Direct PLUS Loan, or a
Federal Direct Unsubsidized Stafford Loan, the
option of the borrower to pay the interest
while the borrower is in school.
(E) The definition of half-time enrollment at
the institution, during regular terms and
summer school, if applicable, and the
consequences of not maintaining half-time
enrollment.
(F) An explanation of the importance of
contacting the appropriate offices at the
institution of higher education if the borrower
withdraws prior to completing the borrower's
program of study so that the institution can
provide exit counseling, including information
regarding the borrower's repayment options and
loan consolidation.
(G) Sample monthly repayment amounts based
on--
(i) a range of levels of indebtedness
of--
(I) borrowers of loans under
section 428 or 428H; and
(II) as appropriate, graduate
borrowers of loans under
section 428, 428B, or 428H; or
(ii) the average cumulative
indebtedness of other borrowers in the
same program as the borrower at the
same institution.
(H) The obligation of the borrower to repay
the full amount of the loan, regardless of
whether the borrower completes or does not
complete the program in which the borrower is
enrolled within the regular time for program
completion.
(I) The likely consequences of default on the
loan, including adverse credit reports,
delinquent debt collection procedures under
Federal law, and litigation.
(J) Information on the National Student Loan
Data System and how the borrower can access the
borrower's records.
(K) The name of and contact information for
the individual the borrower may contact if the
borrower has any questions about the borrower's
rights and responsibilities or the terms and
conditions of the loan.
(m) Disclosures of Reimbursements for Service on Advisory
Boards.--
(1) Disclosure.--Each institution of higher education
participating in any program under this title shall
report, on an annual basis, to the Secretary, any
reasonable expenses paid or provided under section
140(d) of the Truth in Lending Act to any employee who
is employed in the financial aid office of the
institution, or who otherwise has responsibilities with
respect to education loans or other financial aid of
the institution. Such reports shall include--
(A) the amount for each specific instance of
reasonable expenses paid or provided;
(B) the name of the financial aid official,
other employee, or agent to whom the expenses
were paid or provided;
(C) the dates of the activity for which the
expenses were paid or provided; and
(D) a brief description of the activity for
which the expenses were paid or provided.
(2) Report to congress.--The Secretary shall
summarize the information received from institutions of
higher education under paragraph (1) in a report and
transmit such report annually to the authorizing
committees.
* * * * * * *
SEC. 487. PROGRAM PARTICIPATION AGREEMENTS.
(a) Required for Programs of Assistance; Contents.--In order
to be an eligible institution for the purposes of any program
authorized under this title, an institution must be an
institution of higher education or an eligible institution (as
that term is defined for the purpose of that program) and
shall, except with respect to a program under subpart 4 of part
A, enter into a program participation agreement with the
Secretary. The agreement shall condition the initial and
continuing eligibility of an institution to participate in a
program upon compliance with the following requirements:
(1) The institution will use funds received by it for
any program under this title and any interest or other
earnings thereon solely for the purpose specified in
and in accordance with the provision of that program.
(2) The institution shall not charge any student a
fee for processing or handling any application, form,
or data required to determine the student's eligibility
for assistance under this title or the amount of such
assistance.
(3) The institution will establish and maintain such
administrative and fiscal procedures and records as may
be necessary to ensure proper and efficient
administration of funds received from the Secretary or
from students under this title, together with
assurances that the institution will provide, upon
request and in a timely fashion, information relating
to the administrative capability and financial
responsibility of the institution to--
(A) the Secretary;
(B) the appropriate guaranty agency; and
(C) the appropriate accrediting agency or
association.
(4) The institution will comply with the provisions
of subsection (c) of this section and the regulations
prescribed under that subsection, relating to fiscal
eligibility.
(5) The institution will submit reports to the
Secretary and, in the case of an institution
participating in a program under part B or part E, to
holders of loans made to the institution's students
under such parts at such times and containing such
information as the Secretary may reasonably require to
carry out the purpose of this title.
(6) The institution will not provide any student with
any statement or certification to any lender under part
B that qualifies the student for a loan or loans in
excess of the amount that student is eligible to borrow
in accordance with sections 425(a), 428(a)(2), and
428(b)(1) (A) and (B).
(7) The institution will comply with the requirements
of section 485.
(8) In the case of an institution that advertises job
placement rates as a means of attracting students to
enroll in the institution, the institution will make
available to prospective students, at or before the
time of application (A) the most recent available data
concerning employment statistics, graduation
statistics, and any other information necessary to
substantiate the truthfulness of the advertisements,
and (B) relevant State licensing requirements of the
State in which such institution is located for any job
for which the course of instruction is designed to
prepare such prospective students.
(9) In the case of an institution participating in a
program under part B or D, the institution will inform
all eligible borrowers enrolled in the institution
about the availability and eligibility of such
borrowers for State grant assistance from the State in
which the institution is located, and will inform such
borrowers from another State of the source for further
information concerning such assistance from that State.
(10) The institution certifies that it has in
operation a drug abuse prevention program that is
determined by the institution to be accessible to any
officer, employee, or student at the institution.
(11) In the case of any institution whose students
receive financial assistance pursuant to section
484(d), the institution will make available to such
students a program proven successful in assisting
students in obtaining a certificate of high school
equivalency.
(12) The institution certifies that--
(A) the institution has established a campus
security policy; and
(B) the institution has complied with the
disclosure requirements of section 485(f).
(13) The institution will not deny any form of
Federal financial aid to any student who meets the
eligibility requirements of this title on the grounds
that the student is participating in a program of study
abroad approved for credit by the institution.
(14)(A) The institution, in order to participate as
an eligible institution under part B or D, will develop
a Default Management Plan for approval by the Secretary
as part of its initial application for certification as
an eligible institution and will implement such Plan
for two years thereafter.
(B) Any institution of higher education which changes
ownership and any eligible institution which changes
its status as a parent or subordinate institution
shall, in order to participate as an eligible
institution under part B or D, develop a Default
Management Plan for approval by the Secretary and
implement such Plan for two years after its change of
ownership or status.
(C) This paragraph shall not apply in the case of an
institution in which (i) neither the parent nor the
subordinate institution has a cohort default rate in
excess of 10 percent, and (ii) the new owner of such
parent or subordinate institution does not, and has
not, owned any other institution with a cohort default
rate in excess of 10 percent.
(15) The institution acknowledges the authority of
the Secretary, guaranty agencies, lenders, accrediting
agencies, the Secretary of Veterans Affairs, and the
State agencies under subpart 1 of part H to share with
each other any information pertaining to the
institution's eligibility to participate in programs
under this title or any information on fraud and abuse.
(16)(A) The institution will not knowingly employ an
individual in a capacity that involves the
administration of programs under this title, or the
receipt of program funds under this title, who has been
convicted of, or has pled nolo contendere or guilty to,
a crime involving the acquisition, use, or expenditure
of funds under this title, or has been judicially
determined to have committed fraud involving funds
under this title or contract with an institution or
third party servicer that has been terminated under
section 432 involving the acquisition, use, or
expenditure of funds under this title, or who has been
judicially determined to have committed fraud involving
funds under this title.
(B) The institution will not knowingly contract with
or employ any individual, agency, or organization that
has been, or whose officers or employees have been--
(i) convicted of, or pled nolo contendere or
guilty to, a crime involving the acquisition,
use, or expenditure of funds under this title;
or
(ii) judicially determined to have committed
fraud involving funds under this title.
(17) The institution will complete surveys conducted
as a part of the Integrated Postsecondary Education
Data System (IPEDS) or any other Federal postsecondary
institution data collection effort, as designated by
the Secretary, in a timely manner and to the
satisfaction of the Secretary.
(18) The institution will meet the requirements
established pursuant to section 485(g).
(19) The institution will not impose any penalty,
including the assessment of late fees, the denial of
access to classes, libraries, or other institutional
facilities, or the requirement that the student borrow
additional funds, on any student because of the
student's inability to meet his or her financial
obligations to the institution as a result of the
delayed disbursement of the proceeds of a loan made
under this title due to compliance with the provisions
of this title, or delays attributable to the
institution.
(20) The institution will not provide any commission,
bonus, or other incentive payment based directly or
indirectly on success in securing enrollments or
financial aid to any persons or entities engaged in any
student recruiting or admission activities or in making
decisions regarding the award of student financial
assistance, except that this paragraph shall not apply
to the recruitment of foreign students residing in
foreign countries who are not eligible to receive
Federal student assistance.
(21) The institution will meet the requirements
established by the Secretary and accrediting agencies
or associations, and will provide evidence to the
Secretary that the institution has the authority to
operate within a State.
(22) The institution will comply with the refund
policy established pursuant to section 484B.
(23)(A) The institution, if located in a State to
which section 4(b) of the National Voter Registration
Act of 1993 (42 U.S.C. 1973gg-2(b)) does not apply,
will make a good faith effort to distribute a mail
voter registration form, requested and received from
the State, to each student enrolled in a degree or
certificate program and physically in attendance at the
institution, and to make such forms widely available to
students at the institution.
(B) The institution shall request the forms from the
State 120 days prior to the deadline for registering to
vote within the State. If an institution has not
received a sufficient quantity of forms to fulfill this
section from the State within 60 days prior to the
deadline for registering to vote in the State, the
institution shall not be held liable for not meeting
the requirements of this section during that election
year.
(C) This paragraph shall apply to general and special
elections for Federal office, as defined in section
301(3) of the Federal Election Campaign Act of 1971 (2
U.S.C. 431(3)), and to the elections for Governor or
other chief executive within such State).
(D) The institution shall be considered in
compliance with the requirements of
subparagraph (A) for each student to whom the
institution electronically transmits a message
containing a voter registration form acceptable
for use in the State in which the institution
is located, or an Internet address where such a
form can be downloaded, if such information is
in an electronic message devoted exclusively to
voter registration.
(24) In the case of a proprietary institution of
higher education (as defined in section 102(b)), such
institution will derive not less than ten percent of
such institution's revenues from sources other than
Federal funds that are disbursed or delivered to or on
behalf of a student to be used to attend such
institution (referred to in this paragraph and
subsection (d) as ``Federal education assistance
funds''), as calculated in accordance with subsection
(d)(1), or will be subject to the sanctions described
in subsection (d)(2).
(25) In the case of an institution that participates
in a loan program under this title, the institution
will--
(A) develop a code of conduct with respect to
such loans with which the institution's
officers, employees, and agents shall comply,
that--
(i) prohibits a conflict of interest
with the responsibilities of an
officer, employee, or agent of an
institution with respect to such loans;
and
(ii) at a minimum, includes the
provisions described in subsection (e);
(B) publish such code of conduct prominently
on the institution's website; and
(C) administer and enforce such code by, at a
minimum, requiring that all of the
institution's officers, employees, and agents
with responsibilities with respect to such
loans be annually informed of the provisions of
the code of conduct.
(26) The institution will, upon written request,
disclose to the alleged victim of any crime of violence
(as that term is defined in section 16 of title 18,
United States Code), or a nonforcible sex offense, the
report on the results of any disciplinary proceeding
conducted by such institution against a student who is
the alleged perpetrator of such crime or offense with
respect to such crime or offense. If the alleged victim
of such crime or offense is deceased as a result of
such crime or offense, the next of kin of such victim
shall be treated as the alleged victim for purposes of
this paragraph.
(27) In the case of an institution that has entered
into a preferred lender arrangement, the institution
will at least annually compile, maintain, and make
available for students attending the institution, and
the families of such students, a list, in print or
other medium, of the specific lenders for loans made,
insured, or guaranteed under this title or private
education loans that the institution recommends,
promotes, or endorses in accordance with such preferred
lender arrangement. In making such list, the
institution shall comply with the requirements of
subsection (h).
(28)(A) The institution will, upon the request of an
applicant for a private education loan, provide to the
applicant the form required under section 128(e)(3) of
the Truth in Lending Act (15 U.S.C. 1638(e)(3)), and
the information required to complete such form, to the
extent the institution possesses such information.
(B) For purposes of this paragraph, the term
``private education loan'' has the meaning given such
term in section 140 of the Truth in Lending Act.
(29) The institution certifies that the institution--
(A) has developed plans to effectively combat
the unauthorized distribution of copyrighted
material, including through the use of a
variety of technology-based deterrents; and
(B) will, to the extent practicable, offer
alternatives to illegal downloading or peer-to-
peer distribution of intellectual property, as
determined by the institution in consultation
with the chief technology officer or other
designated officer of the institution.
(30) In the case of an institution that, for the most
recently completed fiscal year, had annual media rights
revenues (as described in section 485(g)(1)(I)(ii)) of
$50,000,000 or more, the institution will not, for the
fiscal year immediately following such fiscal year, use
student fees to support intercollegiate athletic
programs, including with respect to facilities,
operating expenses (as defined in section 485(g)),
scholarships, payments to athletes, salaries of coaches
and support staff, and any other expenses reported
under section 485(g)(1).
(b) Hearings.--(1) An institution that has received written
notice of a final audit or program review determination and
that desires to have such determination reviewed by the
Secretary shall submit to the Secretary a written request for
review not later than 45 days after receipt of notification of
the final audit or program review determination.
(2) The Secretary shall, upon receipt of written notice under
paragraph (1), arrange for a hearing and notify the institution
within 30 days of receipt of such notice the date, time, and
place of such hearing. Such hearing shall take place not later
than 120 days from the date upon which the Secretary notifies
the institution.
(c) Audits; Financial Responsibility; Enforcement of
Standards.--(1) Notwithstanding any other provisions of this
title, the Secretary shall prescribe such regulations as may be
necessary to provide for--
(A)(i) except as provided in clauses (ii) and (iii),
a financial audit of an eligible institution with
regard to the financial condition of the institution in
its entirety, and a compliance audit of such
institution with regard to any funds obtained by it
under this title or obtained from a student or a parent
who has a loan insured or guaranteed by the Secretary
under this title, on at least an annual basis and
covering the period since the most recent audit,
conducted by a qualified, independent organization or
person in accordance with standards established by the
Comptroller General for the audit of governmental
organizations, programs, and functions, and as
prescribed in regulations of the Secretary, the results
of which shall be submitted to the Secretary and shall
be available to cognizant guaranty agencies, eligible
lenders, State agencies, and the appropriate State
agency notifying the Secretary under subpart 1 of part
H, except that the Secretary may modify the
requirements of this clause with respect to
institutions of higher education that are foreign
institutions, and may waive such requirements with
respect to a foreign institution whose students receive
less than $500,000 in loans under this title during the
award year preceding the audit period;
(ii) with regard to an eligible institution which is
audited under chapter 75 of title 31, United States
Code, deeming such audit to satisfy the requirements of
clause (i) for the period covered by such audit; or
(iii) at the discretion of the Secretary, with regard
to an eligible institution (other than an eligible
institution described in section 102(a)(1)(C)) that has
obtained less than $200,000 in funds under this title
during each of the 2 award years that precede the audit
period and submits a letter of credit payable to the
Secretary equal to not less than \1/2\ of the annual
potential liabilities of such institution as determined
by the Secretary, deeming an audit conducted every 3
years to satisfy the requirements of clause (i), except
for the award year immediately preceding renewal of the
institution's eligibility under section 498(g);
(B) in matters not governed by specific program
provisions, the establishment of reasonable standards
of financial responsibility and appropriate
institutional capability for the administration by an
eligible institution of a program of student financial
aid under this title, including any matter the
Secretary deems necessary to the sound administration
of the financial aid programs, such as the pertinent
actions of any owner, shareholder, or person exercising
control over an eligible institution;
(C)(i) except as provided in clause (ii), a
compliance audit of a third party servicer (other than
with respect to the servicer's functions as a lender if
such functions are otherwise audited under this part
and such audits meet the requirements of this clause),
with regard to any contract with an eligible
institution, guaranty agency, or lender for
administering or servicing any aspect of the student
assistance programs under this title, at least once
every year and covering the period since the most
recent audit, conducted by a qualified, independent
organization or person in accordance with standards
established by the Comptroller General for the audit of
governmental organizations, programs, and functions,
and as prescribed in regulations of the Secretary, the
results of which shall be submitted to the Secretary;
or
(ii) with regard to a third party servicer that is
audited under chapter 75 of title 31, United States
Code, such audit shall be deemed to satisfy the
requirements of clause (i) for the period covered by
such audit;
(D)(i) a compliance audit of a secondary market with
regard to its transactions involving, and its servicing
and collection of, loans made under this title, at
least once a year and covering the period since the
most recent audit, conducted by a qualified,
independent organization or person in accordance with
standards established by the Comptroller General for
the audit of governmental organizations, programs, and
functions, and as prescribed in regulations of the
Secretary, the results of which shall be submitted to
the Secretary; or
(ii) with regard to a secondary market that is
audited under chapter 75 of title 31, United States
Code, such audit shall be deemed to satisfy the
requirements of clause (i) for the period covered by
the audit;
(E) the establishment, by each eligible institution
under part B responsible for furnishing to the lender
the statement required by section 428(a)(2)(A)(i), of
policies and procedures by which the latest known
address and enrollment status of any student who has
had a loan insured under this part and who has either
formally terminated his enrollment, or failed to re-
enroll on at least a half-time basis, at such
institution, shall be furnished either to the holder
(or if unknown, the insurer) of the note, not later
than 60 days after such termination or failure to re-
enroll;
(F) the limitation, suspension, or termination of the
participation in any program under this title of an
eligible institution, or the imposition of a civil
penalty under paragraph (3)(B) whenever the Secretary
has determined, after reasonable notice and opportunity
for hearing, that such institution has violated or
failed to carry out any provision of this title, any
regulation prescribed under this title, or any
applicable special arrangement, agreement, or
limitation, except that no period of suspension under
this section shall exceed 60 days unless the
institution and the Secretary agree to an extension or
unless limitation or termination proceedings are
initiated by the Secretary within that period of time;
(G) an emergency action against an institution, under
which the Secretary shall, effective on the date on
which a notice and statement of the basis of the action
is mailed to the institution (by registered mail,
return receipt requested), withhold funds from the
institution or its students and withdraw the
institution's authority to obligate funds under any
program under this title, if the Secretary--
(i) receives information, determined by the
Secretary to be reliable, that the institution
is violating any provision of this title, any
regulation prescribed under this title, or any
applicable special arrangement, agreement, or
limitation,
(ii) determines that immediate action is
necessary to prevent misuse of Federal funds,
and
(iii) determines that the likelihood of loss
outweighs the importance of the procedures
prescribed under subparagraph (D) for
limitation, suspension, or termination,
except that an emergency action shall not exceed 30
days unless limitation, suspension, or termination
proceedings are initiated by the Secretary against the
institution within that period of time, and except that
the Secretary shall provide the institution an
opportunity to show cause, if it so requests, that the
emergency action is unwarranted;
(H) the limitation, suspension, or termination of the
eligibility of a third party servicer to contract with
any institution to administer any aspect of an
institution's student assistance program under this
title, or the imposition of a civil penalty under
paragraph (3)(B), whenever the Secretary has
determined, after reasonable notice and opportunity for
a hearing, that such organization, acting on behalf of
an institution, has violated or failed to carry out any
provision of this title, any regulation prescribed
under this title, or any applicable special
arrangement, agreement, or limitation, except that no
period of suspension under this subparagraph shall
exceed 60 days unless the organization and the
Secretary agree to an extension, or unless limitation
or termination proceedings are initiated by the
Secretary against the individual or organization within
that period of time; and
(I) an emergency action against a third party
servicer that has contracted with an institution to
administer any aspect of the institution's student
assistance program under this title, under which the
Secretary shall, effective on the date on which a
notice and statement of the basis of the action is
mailed to such individual or organization (by
registered mail, return receipt requested), withhold
funds from the individual or organization and withdraw
the individual or organization's authority to act on
behalf of an institution under any program under this
title, if the Secretary--
(i) receives information, determined by the
Secretary to be reliable, that the individual
or organization, acting on behalf of an
institution, is violating any provision of this
title, any regulation prescribed under this
title, or any applicable special arrangement,
agreement, or limitation,
(ii) determines that immediate action is
necessary to prevent misuse of Federal funds,
and
(iii) determines that the likelihood of loss
outweighs the importance of the procedures
prescribed under subparagraph (F), for
limitation, suspension, or termination,
except that an emergency action shall not exceed 30
days unless the limitation, suspension, or termination
proceedings are initiated by the Secretary against the
individual or organization within that period of time,
and except that the Secretary shall provide the
individual or organization an opportunity to show
cause, if it so requests, that the emergency action is
unwarranted.
(2) If an individual who, or entity that, exercises
substantial control, as determined by the Secretary in
accordance with the definition of substantial control in
subpart 3 of part H, over one or more institutions
participating in any program under this title, or, for purposes
of paragraphs (1) (H) and (I), over one or more organizations
that contract with an institution to administer any aspect of
the institution's student assistance program under this title,
is determined to have committed one or more violations of the
requirements of any program under this title, or has been
suspended or debarred in accordance with the regulations of the
Secretary, the Secretary may use such determination,
suspension, or debarment as the basis for imposing an emergency
action on, or limiting, suspending, or terminating, in a single
proceeding, the participation of any or all institutions under
the substantial control of that individual or entity.
(3)(A) Upon determination, after reasonable notice and
opportunity for a hearing, that an eligible institution has
engaged in substantial misrepresentation of the nature of its
educational program, its financial charges, or the
employability of its graduates, the Secretary may suspend or
terminate the eligibility status for any or all programs under
this title of any otherwise eligible institution, in accordance
with procedures specified in paragraph (1)(D) of this
subsection, until the Secretary finds that such practices have
been corrected.
(B)(i) Upon determination, after reasonable notice and
opportunity for a hearing, that an eligible institution--
(I) has violated or failed to carry out any provision
of this title or any regulation prescribed under this
title; or
(II) has engaged in substantial misrepresentation of
the nature of its educational program, its financial
charges, and the employability of its graduates,
the Secretary may impose a civil penalty upon such institution
of not to exceed $25,000 for each violation or
misrepresentation.
(ii) Any civil penalty may be compromised by the Secretary.
In determining the amount of such penalty, or the amount agreed
upon in compromise, the appropriateness of the penalty to the
size of the institution of higher education subject to the
determination, and the gravity of the violation, failure, or
misrepresentation shall be considered. The amount of such
penalty, when finally determined, or the amount agreed upon in
compromise, may be deducted from any sums owing by the United
States to the institution charged.
(4) The Secretary shall publish a list of State agencies
which the Secretary determines to be reliable authority as to
the quality of public postsecondary vocational education in
their respective States for the purpose of determining
eligibility for all Federal student assistance programs.
(5) The Secretary shall make readily available to appropriate
guaranty agencies, eligible lenders, State agencies notifying
the Secretary under subpart 1 of part H, and accrediting
agencies or associations the results of the audits of eligible
institutions conducted pursuant to paragraph (1)(A).
(6) The Secretary is authorized to provide any information
collected as a result of audits conducted under this section,
together with audit information collected by guaranty agencies,
to any Federal or State agency having responsibilities with
respect to student financial assistance, including those
referred to in subsection (a)(15) of this section.
(7) Effective with respect to any audit conducted under this
subsection after December 31, 1988, if, in the course of
conducting any such audit, the personnel of the Department of
Education discover, or are informed of, grants or other
assistance provided by an institution in accordance with this
title for which the institution has not received funds
appropriated under this title (in the amount necessary to
provide such assistance), including funds for which
reimbursement was not requested prior to such discovery or
information, such institution shall be permitted to offset that
amount against any sums determined to be owed by the
institution pursuant to such audit, or to receive reimbursement
for that amount (if the institution does not owe any such
sums).
(d) Implementation of Non-Federal Revenue Requirement.--
(1) Calculation.--In making calculations under
subsection (a)(24), a proprietary institution of higher
education shall--
(A) use the cash basis of accounting, except
in the case of loans described in subparagraph
(D)(i) that are made by the proprietary
institution of higher education;
(B) consider as revenue only those funds
generated by the institution from--
(i) tuition, fees, and other
institutional charges for students
enrolled in programs eligible for
assistance under this title;
(ii) activities conducted by the
institution that are necessary for the
education and training of the
institution's students, if such
activities are--
(I) conducted on campus or at
a facility under the control of
the institution;
(II) performed under the
supervision of a member of the
institution's faculty; and
(III) required to be
performed by all students in a
specific educational program at
the institution; and
(iii) funds paid by a student, or on
behalf of a student by a party other
than the institution, for an education
or training program that is not
eligible for funds under this title, if
the program--
(I) is approved or licensed
by the appropriate State
agency;
(II) is accredited by an
accrediting agency recognized
by the Secretary; or
(III) provides an industry-
recognized credential or
certification;
(C) presume that any Federal education
assistance funds that are disbursed or
delivered to or on behalf of a student will be
used to pay the student's tuition, fees, or
other institutional charges, regardless of
whether the institution credits those funds to
the student's account or pays those funds
directly to the student, except to the extent
that the student's tuition, fees, or other
institutional charges are satisfied by--
(i) grant funds provided by non-
Federal public agencies or private
sources independent of the institution;
(ii) funds provided under a
contractual arrangement with a Federal,
State, or local government agency for
the purpose of providing job training
to low-income individuals who are in
need of that training;
(iii) funds used by a student from
savings plans for educational expenses
established by or on behalf of the
student and which qualify for special
tax treatment under the Internal
Revenue Code of 1986; or
(iv) institutional scholarships
described in subparagraph (D)(iii);
(D) include institutional aid as revenue to
the school only as follows:
(i) in the case of loans made by a
proprietary institution of higher
education on or after July 1, 2008 and
prior to July 1, 2012, the net present
value of such loans made by the
institution during the applicable
institutional fiscal year accounted for
on an accrual basis and estimated in
accordance with generally accepted
accounting principles and related
standards and guidance, if the loans--
(I) are bona fide as
evidenced by enforceable
promissory notes;
(II) are issued at intervals
related to the institution's
enrollment periods; and
(III) are subject to regular
loan repayments and
collections;
(ii) in the case of loans made by a
proprietary institution of higher
education on or after July 1, 2012,
only the amount of loan repayments
received during the applicable
institutional fiscal year, excluding
repayments on loans made and accounted
for as specified in clause (i); and
(iii) in the case of scholarships
provided by a proprietary institution
of higher education, only those
scholarships provided by the
institution in the form of monetary aid
or tuition discounts based upon the
academic achievements or financial need
of students, disbursed during each
fiscal year from an established
restricted account, and only to the
extent that funds in that account
represent designated funds from an
outside source or from income earned on
those funds;
(E) in the case of each student who receives
a loan on or after July 1, 2008, and prior to
July 1, 2011, that is authorized under section
428H or that is a Federal Direct Unsubsidized
Stafford Loan, treat as revenue received by the
institution from sources other than funds
received under this title, the amount by which
the disbursement of such loan received by the
institution exceeds the limit on such loan in
effect on the day before the date of enactment
of the Ensuring Continued Access to Student
Loans Act of 2008; and
(F) exclude from revenues--
(i) the amount of funds the
institution received under part C,
unless the institution used those funds
to pay a student's institutional
charges;
(ii) the amount of funds the
institution received under subpart 4 of
part A;
(iii) the amount of funds provided by
the institution as matching funds for a
program under this title;
(iv) the amount of funds provided by
the institution for a program under
this title that are required to be
refunded or returned; and
(v) the amount charged for books,
supplies, and equipment, unless the
institution includes that amount as
tuition, fees, or other institutional
charges.
(2) Sanctions.--
(A) Ineligibility.--A proprietary institution
of higher education that fails to meet a
requirement of subsection (a)(24) for two
consecutive institutional fiscal years shall be
ineligible to participate in the programs
authorized by this title for a period of not
less than two institutional fiscal years. To
regain eligibility to participate in the
programs authorized by this title, a
proprietary institution of higher education
shall demonstrate compliance with all
eligibility and certification requirements
under section 498 for a minimum of two
institutional fiscal years after the
institutional fiscal year in which the
institution became ineligible.
(B) Additional enforcement.--In addition to
such other means of enforcing the requirements
of this title as may be available to the
Secretary, if a proprietary institution of
higher education fails to meet a requirement of
subsection (a)(24) for any institutional fiscal
year, then the institution's eligibility to
participate in the programs authorized by this
title becomes provisional for the two
institutional fiscal years after the
institutional fiscal year in which the
institution failed to meet the requirement of
subsection (a)(24), except that such
provisional eligibility shall terminate--
(i) on the expiration date of the
institution's program participation
agreement under this subsection that is
in effect on the date the Secretary
determines that the institution failed
to meet the requirement of subsection
(a)(24); or
(ii) in the case that the Secretary
determines that the institution failed
to meet a requirement of subsection
(a)(24) for two consecutive
institutional fiscal years, on the date
the institution is determined
ineligible in accordance with
subparagraph (A).
(3) Publication on college navigator website.--The
Secretary shall publicly disclose on the College
Navigator website--
(A) the identity of any proprietary
institution of higher education that fails to
meet a requirement of subsection (a)(24); and
(B) the extent to which the institution
failed to meet such requirement.
(4) Report to congress.--Not later than July 1, 2009,
and July 1 of each succeeding year, the Secretary shall
submit to the authorizing committees a report that
contains, for each proprietary institution of higher
education that receives assistance under this title, as
provided in the audited financial statements submitted
to the Secretary by each institution pursuant to the
requirements of subsection (a)(24)--
(A) the amount and percentage of such
institution's revenues received from sources
under this title; and
(B) the amount and percentage of such
institution's revenues received from other
sources.
(e) Code of Conduct Requirements.--An institution of higher
education's code of conduct, as required under subsection
(a)(25), shall include the following requirements:
(1) Ban on revenue-sharing arrangements.--
(A) Prohibition.--The institution shall not
enter into any revenue-sharing arrangement with
any lender.
(B) Definition.--For purposes of this
paragraph, the term ``revenue-sharing
arrangement'' means an arrangement between an
institution and a lender under which--
(i) a lender provides or issues a
loan that is made, insured, or
guaranteed under this title to students
attending the institution or to the
families of such students; and
(ii) the institution recommends the
lender or the loan products of the
lender and in exchange, the lender pays
a fee or provides other material
benefits, including revenue or profit
sharing, to the institution, an officer
or employee of the institution, or an
agent.
(2) Gift ban.--
(A) Prohibition.--No officer or employee of
the institution who is employed in the
financial aid office of the institution or who
otherwise has responsibilities with respect to
education loans, or agent who has
responsibilities with respect to education
loans, shall solicit or accept any gift from a
lender, guarantor, or servicer of education
loans.
(B) Definition of gift.--
(i) In general.--In this paragraph,
the term ``gift'' means any gratuity,
favor, discount, entertainment,
hospitality, loan, or other item having
a monetary value of more than a de
minimus amount. The term includes a
gift of services, transportation,
lodging, or meals, whether provided in
kind, by purchase of a ticket, payment
in advance, or reimbursement after the
expense has been incurred.
(ii) Exceptions.--The term ``gift''
shall not include any of the following:
(I) Standard material,
activities, or programs on
issues related to a loan,
default aversion, default
prevention, or financial
literacy, such as a brochure, a
workshop, or training.
(II) Food, refreshments,
training, or informational
material furnished to an
officer or employee of an
institution, or to an agent, as
an integral part of a training
session that is designed to
improve the service of a
lender, guarantor, or servicer
of education loans to the
institution, if such training
contributes to the professional
development of the officer,
employee, or agent.
(III) Favorable terms,
conditions, and borrower
benefits on an education loan
provided to a student employed
by the institution if such
terms, conditions, or benefits
are comparable to those
provided to all students of the
institution.
(IV) Entrance and exit
counseling services provided to
borrowers to meet the
institution's responsibilities
for entrance and exit
counseling as required by
subsections (b) and (l) of
section 485, as long as--
(aa) the
institution's staff are
in control of the
counseling, (whether in
person or via
electronic
capabilities); and
(bb) such counseling
does not promote the
products or services of
any specific lender.
(V) Philanthropic
contributions to an institution
from a lender, servicer, or
guarantor of education loans
that are unrelated to education
loans or any contribution from
any lender, guarantor, or
servicer that is not made in
exchange for any advantage
related to education loans.
(VI) State education grants,
scholarships, or financial aid
funds administered by or on
behalf of a State.
(iii) Rule for gifts to family
members.--For purposes of this
paragraph, a gift to a family member of
an officer or employee of an
institution, to a family member of an
agent, or to any other individual based
on that individual's relationship with
the officer, employee, or agent, shall
be considered a gift to the officer,
employee, or agent if--
(I) the gift is given with
the knowledge and acquiescence
of the officer, employee, or
agent; and
(II) the officer, employee,
or agent has reason to believe
the gift was given because of
the official position of the
officer, employee, or agent.
(3) Contracting arrangements prohibited.--
(A) Prohibition.--An officer or employee who
is employed in the financial aid office of the
institution or who otherwise has
responsibilities with respect to education
loans, or an agent who has responsibilities
with respect to education loans, shall not
accept from any lender or affiliate of any
lender any fee, payment, or other financial
benefit (including the opportunity to purchase
stock) as compensation for any type of
consulting arrangement or other contract to
provide services to a lender or on behalf of a
lender relating to education loans.
(B) Exceptions.--Nothing in this subsection
shall be construed as prohibiting--
(i) an officer or employee of an
institution who is not employed in the
institution's financial aid office and
who does not otherwise have
responsibilities with respect to
education loans, or an agent who does
not have responsibilities with respect
to education loans, from performing
paid or unpaid service on a board of
directors of a lender, guarantor, or
servicer of education loans;
(ii) an officer or employee of the
institution who is not employed in the
institution's financial aid office but
who has responsibility with respect to
education loans as a result of a
position held at the institution, or an
agent who has responsibility with
respect to education loans, from
performing paid or unpaid service on a
board of directors of a lender,
guarantor, or servicer of education
loans, if the institution has a written
conflict of interest policy that
clearly sets forth that officers,
employees, or agents must recuse
themselves from participating in any
decision of the board regarding
education loans at the institution; or
(iii) an officer, employee, or
contractor of a lender, guarantor, or
servicer of education loans from
serving on a board of directors, or
serving as a trustee, of an
institution, if the institution has a
written conflict of interest policy
that the board member or trustee must
recuse themselves from any decision
regarding education loans at the
institution.
(4) Interaction with borrowers.--The institution
shall not--
(A) for any first-time borrower, assign,
through award packaging or other methods, the
borrower's loan to a particular lender; or
(B) refuse to certify, or delay certification
of, any loan based on the borrower's selection
of a particular lender or guaranty agency.
(5) Prohibition on offers of funds for private
loans.--
(A) Prohibition.--The institution shall not
request or accept from any lender any offer of
funds to be used for private education loans
(as defined in section 140 of the Truth in
Lending Act), including funds for an
opportunity pool loan, to students in exchange
for the institution providing concessions or
promises regarding providing the lender with--
(i) a specified number of loans made,
insured, or guaranteed under this
title;
(ii) a specified loan volume of such
loans; or
(iii) a preferred lender arrangement
for such loans.
(B) Definition of opportunity pool loan.--In
this paragraph, the term ``opportunity pool
loan'' means a private education loan made by a
lender to a student attending the institution
or the family member of such a student that
involves a payment, directly or indirectly, by
such institution of points, premiums,
additional interest, or financial support to
such lender for the purpose of such lender
extending credit to the student or the family.
(6) Ban on staffing assistance.--
(A) Prohibition.--The institution shall not
request or accept from any lender any
assistance with call center staffing or
financial aid office staffing.
(B) Certain assistance permitted.--Nothing in
paragraph (1) shall be construed to prohibit
the institution from requesting or accepting
assistance from a lender related to--
(i) professional development training
for financial aid administrators;
(ii) providing educational counseling
materials, financial literacy
materials, or debt management materials
to borrowers, provided that such
materials disclose to borrowers the
identification of any lender that
assisted in preparing or providing such
materials; or
(iii) staffing services on a short-
term, nonrecurring basis to assist the
institution with financial aid-related
functions during emergencies, including
State-declared or federally declared
natural disasters, federally declared
national disasters, and other localized
disasters and emergencies identified by
the Secretary.
(7) Advisory board compensation.--Any employee who is
employed in the financial aid office of the
institution, or who otherwise has responsibilities with
respect to education loans or other student financial
aid of the institution, and who serves on an advisory
board, commission, or group established by a lender,
guarantor, or group of lenders or guarantors, shall be
prohibited from receiving anything of value from the
lender, guarantor, or group of lenders or guarantors,
except that the employee may be reimbursed for
reasonable expenses incurred in serving on such
advisory board, commission, or group.
(f) Institutional Requirements for Teach-Outs.--
(1) In general.--In the event the Secretary initiates
the limitation, suspension, or termination of the
participation of an institution of higher education in
any program under this title under the authority of
subsection (c)(1)(F) or initiates an emergency action
under the authority of subsection (c)(1)(G) and its
prescribed regulations, the Secretary shall require
that institution to prepare a teach-out plan for
submission to the institution's accrediting agency or
association in compliance with section 496(c)(3), the
Secretary's regulations on teach-out plans, and the
standards of the institution's accrediting agency or
association.
(2) Teach-out plan defined.--In this subsection, the
term ``teach-out plan'' means a written plan that
provides for the equitable treatment of students if an
institution of higher education ceases to operate
before all students have completed their program of
study, and may include, if required by the
institution's accrediting agency or association, an
agreement between institutions for such a teach-out
plan.
(g) Inspector General Report on Gift Ban Violations.--The
Inspector General of the Department shall--
(1) submit an annual report to the authorizing
committees identifying all violations of an
institution's code of conduct that the Inspector
General has substantiated during the preceding year
relating to the gift ban provisions described in
subsection (e)(2); and
(2) make the report available to the public through
the Department's website.
(h) Preferred Lender List Requirements.--
(1) In general.--In compiling, maintaining, and
making available a preferred lender list as required
under subsection (a)(27), the institution will--
(A) clearly and fully disclose on such
preferred lender list--
(i) not less than the information
required to be disclosed under section
153(a)(2)(A);
(ii) why the institution has entered
into a preferred lender arrangement
with each lender on the preferred
lender list, particularly with respect
to terms and conditions or provisions
favorable to the borrower; and
(iii) that the students attending the
institution, or the families of such
students, do not have to borrow from a
lender on the preferred lender list;
(B) ensure, through the use of the list of
lender affiliates provided by the Secretary
under paragraph (2), that--
(i) there are not less than three
lenders of loans made under part B that
are not affiliates of each other
included on the preferred lender list
and, if the institution recommends,
promotes, or endorses private education
loans, there are not less than two
lenders of private education loans that
are not affiliates of each other
included on the preferred lender list;
and
(ii) the preferred lender list under
this paragraph--
(I) specifically indicates,
for each listed lender, whether
the lender is or is not an
affiliate of each other lender
on the preferred lender list;
and
(II) if a lender is an
affiliate of another lender on
the preferred lender list,
describes the details of such
affiliation;
(C) prominently disclose the method and
criteria used by the institution in selecting
lenders with which to enter into preferred
lender arrangements to ensure that such lenders
are selected on the basis of the best interests
of the borrowers, including--
(i) payment of origination or other
fees on behalf of the borrower;
(ii) highly competitive interest
rates, or other terms and conditions or
provisions of loans under this title or
private education loans;
(iii) high-quality servicing for such
loans; or
(iv) additional benefits beyond the
standard terms and conditions or
provisions for such loans;
(D) exercise a duty of care and a duty of
loyalty to compile the preferred lender list
under this paragraph without prejudice and for
the sole benefit of the students attending the
institution, or the families of such students;
(E) not deny or otherwise impede the
borrower's choice of a lender or cause
unnecessary delay in loan certification under
this title for those borrowers who choose a
lender that is not included on the preferred
lender list; and
(F) comply with such other requirements as
the Secretary may prescribe by regulation.
(2) Lender affiliates list.--
(A) In general.--The Secretary shall maintain
and regularly update a list of lender
affiliates of all eligible lenders, and shall
provide such list to institutions for use in
carrying out paragraph (1)(B).
(B) Use of most recent list.--An institution
shall use the most recent list of lender
affiliates provided by the Secretary under
subparagraph (A) in carrying out paragraph
(1)(B).
(i) Definitions.--For the purpose of this section:
(1) Agent.--The term ``agent'' has the meaning given
the term in section 151.
(2) Affiliate.--The term ``affiliate'' means a person
that controls, is controlled by, or is under common
control with another person. A person controls, is
controlled by, or is under common control with another
person if--
(A) the person directly or indirectly, or
acting through one or more others, owns,
controls, or has the power to vote five percent
or more of any class of voting securities of
such other person;
(B) the person controls, in any manner, the
election of a majority of the directors or
trustees of such other person; or
(C) the Secretary determines (after notice
and opportunity for a hearing) that the person
directly or indirectly exercises a controlling
interest over the management or policies of
such other person's education loans.
(3) Education loan.--The term ``education loan'' has
the meaning given the term in section 151.
(4) Eligible institution.--The term ``eligible
institution'' means any such institution described in
section 102 of this Act.
(5) Officer.--The term ``officer'' has the meaning
given the term in section 151.
(6) Preferred lender arrangement.--The term
``preferred lender arrangement'' has the meaning given
the term in section 151.
(j) Construction.--Nothing in the amendments made by the
Higher Education Amendments of 1992 shall be construed to
prohibit an institution from recording, at the cost of the
institution, a hearing referred to in subsection (b)(2),
subsection (c)(1)(D), or subparagraph (A) or (B)(i) of
subsection (c)(2), of this section to create a record of the
hearing, except the unavailability of a recording shall not
serve to delay the completion of the proceeding. The Secretary
shall allow the institution to use any reasonable means,
including stenographers, of recording the hearing.
* * * * * * *
MINORITY VIEWS
College athletics is a multi-billion dollar a year
business. Historically the National Collegiate Athletic
Association (NCAA) and the college athletic conferences (the
Conferences) (both defined in H.R. 4312 as Intercollegiate
Athletic Associations or IIAAs) imposed stringent limitations
on financial opportunities for the college athletes that drive
that revenue. Over the last few years, by bringing antitrust
lawsuits and championing new state laws, college athletes have
won the right to profit from their own name, image, and
likeness (NIL), share in some of the revenue received by their
colleges from their sports, and transfer schools without losing
athletic eligibility.\1\ Instead of celebrating and building
upon these hard fought successes won by athletes, H.R. 4312
returns power to the NCAA and the Conferences, providing them
with unchecked authority to regulate every aspect of the
college athletic experience, exempting them from the antitrust
laws, and preempting state laws that protect athletes'
interests.
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\1\Opinion Regarding Order Granting Motion for Final Approval of
Settlement Agreement (June 6, 2025), House v. NCAA, N. D. Cal (No. 717
CV 03919).
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H.R. 4312 also imposes restrictions on college athletes
that are not imposed on other college students. For example, it
prohibits college athletes from being considered employees of
their institution, regardless of the commitments or other
conditions imposed on them by their colleges. The simplest and
most straightforward way for colleges to avoid an employer-
employee relationship is to make sure they are not treating
college athletes like employees. Employment liability cannot be
triggered if the facts do not support it. On the other hand, if
particular colleges do treat their college athletes like
employees, H.R. 4312 will deny college athletes the benefits
provided by federal and state law to employees, including the
right to engage in collective bargaining and qualify for
disability benefits.
Also, contrary to the Majority's claims in this report,
H.R. 4312 does not protect college athletes' privacy nor does
it ``affirm[] the right of student-athletes to enter into NIL
agreements.''\2\ Instead it allows the NCAA and the Conferences
to require college athletes to disclose their NIL deals to a
designated entity, and to accept that entity's determinations
on the validity of those deals. No other college student is
required to share their confidential business agreements with a
designated entity or to receive approval of those deals. The
Act also institutes arbitrary transfer limits on college
athletes, restricting their ability to transfer more than once
regardless of circumstances which could include a college
athlete's need to escape abuse or mistreatment, find a new team
after being cut from their team, or to deal with personal or
family situations, or financial considerations.
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\2\House Committee on Energy and Commerce, H.R. 4312, Student
Compensation and Opportunity Through Rights and Endorsements (SCORE)
Act, 119th Cong., at 1 (2025).
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In addition, H.R. 4312 does not greatly strengthen existing
health and safety protections and benefits for college athletes
or provide meaningful pathways to protect athletes who have
been harmed. Instead, most of the health and safety benefits
the Act requires colleges to provide to their athletes are
already required by the NCAA. Moreover, the Majority fails to
acknowledge in this report that H.R. 4312 only requires
colleges with highly paid coaches to provide the required
benefits, leaving the vast majority of college athletes,
including a substantial percentage of Division I athletes,
without any mandated health and safety protections. And the
bill provides no federal enforcement to ensure compliance for
those with mandated protections.
H.R. 4312 would strip college athletes of hard-fought
protections and benefits they have won in recent years and
existing pathways they can use to advocate for additional
benefits in the future. H.R. 4312 would give institutions that
have historically put profits over the safety and wellbeing of
athletes virtually unchecked authority to dictate the state of
college sports and athlete prosperity. Therefore, we oppose
this legislation in its current form.
Frank Pallone, Jr.,
Ranking Member.
[all]