SEC. 2. CONTRACTS RELATING TO STUDENT ATHLETES 
AND COLLEGE AND UNIVERSITY ATHLETIC 
PROGRAMS. 
(a) PROHIBITION.—Subject to the exceptions in sub-
section (b), a covered athletic organization or institution 
of higher education may not prohibit a student athlete 
from participating in intercollegiate athletics because such 
student athlete enters into an agency contract or an en-
dorsement contract or otherwise receives consideration for 
such student athlete’s name, image, or likeness. 
(b) EXCEPTIONS FOR ENDORSEMENT CONTRACTS.— 
A covered athletic organization or institution of higher 
education may prohibit a student athlete from entering 
into an endorsement contract with the following categories 
of brands, companies, or types of contracts: 
(1) A tobacco company or brand, including any 
vaping device or e-cigarette or related product. 
(2) Any alcohol company or brand. 
(3) Any seller or dispensary of a controlled sub-
stance, including marijuana. 
(4) Any adult entertainment business. 
(5) Any casino or entity whose primary busi-
ness is sponsoring or promotion of gambling activi-
ties. 
(c) PERMISSIBLE PROHIBITIONS.—A student athlete 
may be prohibited by the institution of higher education 
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of the student athlete from wearing any item of clothing 
or gear with the insignia of any entity during any athletic 
competition or athletic-related university-sponsored event. 
(d) RESULTANT PROHIBITIONS ON INSTITUTIONS OF 
HIGHER EDUCATION FROM ENTERING INTO CERTAIN 
SPONSORSHIP AND ENDORSEMENT CONTRACTS.— 
(1) FROM PROHIBITIONS ON ATHLETES.—If a 
covered athletic organization or institution of higher 
education prohibits a student athlete from entering 
into an endorsement contract pursuant to subsection 
(b), such covered athletic organization or institution 
of higher education may not enter into or continue 
in any sponsorship or endorsement contract for itself 
with the same category or categories of brands, com-
panies, or types of contracts described in paragraphs 
(1) through (5) of such subsection. 
(2) FROM PROHIBITIONS BY A COVERED ATH-
LETIC ORGANIZATION.—If a covered athletic organi-
zation prohibits a student athlete from entering into 
a contract pursuant to subsection (b), any institu-
tion of higher education that is a part of that cov-
ered athletic organization may not enter into any 
sponsorship or endorsement contract for itself with 
the same category or categories of brands, compa-
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nies, or types of contracts described in paragraphs 
(1) through (5) of such subsection. 
SEC. 3. ENFORCEMENT. 
(a) UNFAIR OR DECEPTIVE ACTS OR PRACTICES.— 
A violation of section 2 shall be treated as an unfair and 
deceptive act or practice in violation of a regulation under 
section 18(a)(1)(B) of the Federal Trade Commission Act 
(15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive 
acts or practices. 
(b) POWERS
OF
THE FTC.—The Federal Trade 
Commission shall enforce this section in the same manner, 
by the same means, and with the same jurisdiction, pow-
ers, and duties as though all applicable terms and provi-
sions of the Federal Trade Commission Act (15 U.S.C. 
41 et seq.) were incorporated into and made part of this 
Act. Any person that violates this section shall be subject 
to the penalties and entitled to the privileges and immuni-
ties provided in the Federal Trade Commission Act (15 
U.S.C. 41 et seq.). Nothing in this Act shall be construed 
to limit the authority of the Federal Trade Commission 
under any other provision of law. 
SEC. 4. COVERED ATHLETIC ORGANIZATION COMMISSION. 
(a) ESTABLISHMENT.—There is established the Cov-
ered Athletic Organization Commission (in this section re-
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ferred to as the ‘‘Commission’’), whose purpose shall be 
to— 
(1) make recommendations to Congress and to 
each covered athletic organization about the imple-
mentation of name, image, and likeness rules; 
(2) recommend to each covered athletic organi-
zation such a process to certify or recognize 
credentialed athlete agents; 
(3) make recommendations for the establish-
ment of an independent dispute resolution process, 
for any dispute arising between a student athlete 
and a covered athletic organization or institution of 
higher education; and 
(4) make recommendations for additional cat-
egories of endorsement contracts that are excepted 
under section 2(b). 
(b) MEMBERSHIP.—The Commission shall consist of 
13 members appointed in accordance with subsection (c) 
from among or in accordance with the following: 
(1) Institutions of higher education, including 
athletic directors and coaches. 
(2) At least two individuals who are current or 
former student athletes who advocate for the inter-
est of student athletes. 
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(3) Administrators of covered athletic organiza-
tions. 
(4) Professionals with expertise in sports mar-
keting, contracting, and public relations. 
(5) Individuals— 
(A) with expertise in corporate governance; 
and 
(B) who are not associated with any cov-
ered athletic association or institution of higher 
education. 
(c) APPOINTMENT.— 
(1) IN GENERAL.—Not later than 60 days after 
the date of enactment of this Act, members of the 
Commission shall be appointed as follows: 
(A) Three members appointed by the 
Speaker of the House of Representatives. 
(B) Three members appointed by the mi-
nority leader of the House of Representatives. 
(C) Three members appointed by the ma-
jority leader of the Senate. 
(D) Three members appointed by the mi-
nority leader of the Senate. 
(E) One member, who shall be the chair of 
the Commission, selected by the members ap-
pointed under subparagraphs (A) through (D) 
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not later than 60 days after the appointment of 
such members, and agreed upon by no fewer 
than eight of such members. If eight such mem-
bers are unable to agree on an appointment 
under this subparagraph within such 60 day pe-
riod, the Speaker of the House of Representa-
tives shall make the appointment under this 
subparagraph. 
(2) DIVERSITY.—To the extent practicable, the 
Speaker and leaders making appointments under 
paragraph (1) shall coordinate their appointments to 
ensure that the Commission reflect diversity in gen-
der, race, sport with which they are associated, as 
applicable, and shall prioritize the appointment of 
members unaffiliated with divisions or conferences of 
applicable covered athletic organizations. 
(d) MEETINGS AND QUORUM.—Meetings of the Com-
mission shall be held at the call of the chair appointed 
under subsection (c)(1)(E). A meeting may only be held 
where there is a quorum of at least 7 members, including 
not fewer than two members who are current or former 
student athletes who advocate for the interest of student 
athletes. 
(e) REPORT.—Not later than one, two, and three 
years, respectively, after the Commission shall be con-
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stituted, it shall submit to the Committee on Energy and 
Commerce of the House of Representatives and the Com-
mittee on Commerce, Science, and Transportation of the 
Senate annual reports that include the recommendations 
in paragraphs (1) through (4) of subsection (a). The Com-
mission shall also make such reports available to the pub-
lic. 
(f) SUNSET.—The Commission shall terminate 60 
days after submitting the final report required under sub-
section (e). 
SEC. 5. INSTITUTIONS OF HIGHER EDUCATION AND STU-
DENT 
ATHLETES 
WHO 
ENTER 
INTO 
EN-
DORSEMENT CONTRACTS. 
Section 487(a) of the Higher Education Act of 1965 
(20 U.S.C. 1094(a)) is amended by adding at the end the 
following: 
‘‘(30) In the case of an institution that has a 
student attending the institution who is an athlete 
and has entered into an endorsement contract (as 
defined under section 2 of the Sports Agent Respon-
sibility and Trust Act (15 U.S.C. 7801)) or an agen-
cy contract (as defined in section 9 of the Student 
Athlete Level Playing Field Act), such institution 
will not— 
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‘‘(A) prohibit such student from entering 
into such an endorsement contract or an agency 
contract, including through a rule, standard, or 
policy that affects the eligibility of such student 
to receive athletically related student aid (as de-
fined in section 485(e) of the Higher Education 
Act of 1965 (20 U.S.C. 1092(e))); or 
‘‘(B) compensate such student for the 
name, image, or likeness of such student.’’. 
SEC. 6. PROHIBITING UNFAIR AND DECEPTIVE PRACTICES 
AGAINST STUDENT ATHLETES. 
(a) PROHIBITING UNFAIR AND DECEPTIVE PRAC-
TICES BY BOOSTERS.—The Sports Agent Responsibility 
and Trust Act (15 U.S.C. 7801 et seq.) is amended— 
(1) in section 2— 
(A) 
by 
redesignating 
paragraphs 
(4) 
through (9) as paragraphs (5) through (10), re-
spectively; and 
(B) by inserting after paragraph (3) the 
following new paragraph: 
‘‘(4) BOOSTER.—The term ‘booster’ means an 
individual (other than an individual who is related to 
a student athlete) or an organization, including a 
sponsor of an institution’s athletic program, that 
provides substantial financial assistance or services 
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to the athletic program of an institution of higher 
education or that promotes a team or athletic pro-
gram of an institution of higher education for such 
individual’s or organization’s own substantial finan-
cial interest.’’; 
(2) by inserting after section 3 the following 
new section: 
‘‘SEC. 3A. REGULATION OF UNFAIR AND DECEPTIVE ACTS 
AND PRACTICES IN CONNECTION WITH CON-
TACT BETWEEN A BOOSTER AND A STUDENT 
ATHLETE. 
‘‘It is unlawful for a booster to directly or indirectly 
provide or offer to provide any funds or thing of value 
as an inducement for a student athlete to enroll or remain 
at a specific institution or group of institutions.’’; and 
(3) in section 5(a)(1), by inserting ‘‘or by the 
engagement of any booster in a practice that violates 
section 3A’’ after ‘‘section 3’’. 
(b) ELIGIBILITY TO COMPETE AS A STUDENT ATH-
LETE AFTER ENTERING INTO AN AGENCY CONTRACT.— 
Section 3(b)(3) of the Sports Agent Responsibility and 
Trust Act (15 U.S.C. 7802(b)(3)) is amended in the 
quoted part by inserting after ‘‘boldface type stating:’’ the 
following: ‘‘ ‘Notice to Student Athlete: If you agree orally 
or in writing to be represented by an agent now or in the 
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future, 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 edu-
cational institution, that you have entered into an agency 
contract. Such notification must be within 72 hours after 
entering into this contract or before the next athletic event 
in which you are eligible to participate, whichever occurs 
first.’ ’’. 
(c) REPORT ON CLAIMS FILED PURSUANT TO THE 
SPORTS AGENT RESPONSIBILITY AND TRUST ACT.—The 
Sports Agent Responsibility and Trust Act (15 U.S.C. 
7801 et seq.) is further amended by inserting after section 
6 the following new section: 
‘‘SEC. 6A. REPORT TO CONGRESS. 
‘‘Not later than 6 months after the date of enactment 
of this section, and annually thereafter, the Commission 
shall submit to the Committee on Energy and Commerce 
of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate a 
report summarizing any investigation or enforcement ac-
tion brought by the Commission pursuant to this Act, in-
cluding the number of complaints filed with the Commis-
sion pursuant to this Act.’’. 
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SEC. 7. STATE PREEMPTION. 
No State may enforce a State law or regulation with 
respect to permitting or abridging the ability of a student 
athlete attending an institution of higher education to 
enter into an endorsement contract or agency contract 
pursuant to this Act or by an amendment made by this 
Act. 
SEC. 8. RULES OF CONSTRUCTION. 
(a) TAX PROVISIONS.—Nothing in this Act or the 
amendments made by this Act shall affect the treatment 
of qualified scholarships under section 117 of the Internal 
Revenue Code of 1986. 
(b) NONDISCRIMINATION OF STUDENT ATHLETES.— 
Nothing in this Act or the amendments made by this Act 
may be construed to affect the rights of student athletes 
or affect any program funded under title IX of the Edu-
cation Amendments of 1972 (20 U.S.C. 1681 et seq.). 
(c) ANTITRUST LAWS.—Nothing in this Act or the 
amendments made by this Act shall provide a cause of 
action pursuant to the Sherman Act (15 U.S.C. 1 et seq.). 
(d) STUDENT ATHLETE NOT CONSIDERED AN EM-
PLOYEE.—Nothing in this Act or the amendments made 
by this Act shall affect the employment status of a student 
athlete who enters into an endorsement contract with re-
spect to a covered athletic organization or institution of 
higher education. 
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