Amateur Athletes Protection and Compensation Act of 2021
Bill: S.414 | Sponsor: Sen. Moran, Jerry (R-KS)
Policy area: Sports and Recreation

Summary:
Amateur Athletes Protection and Compensation Act of 2021
This bill provides standards relating to compensation for the use of the names, images, and likenesses of amateur intercollegiate athletes and protections for these athletes.
Specifically, compensation for such an athlete may only be provided by unaffiliated third parties. Currently the National Collegiate Athletic Association and colleges generally prohibit student athletes from receiving compensation.
A national amateur athletic association or institution of higher education may not punish an athlete in an amateur intercollegiate athletic event or competition based on the athlete having entered into an agency contract with an amateur athlete representative certified by the Amateur Intercollegiate Athletics Corporation (AIAC) established by this bill.
An amateur intercollegiate athletics association shall allow an amateur intercollegiate athlete to transfer from one institution of higher education to another at least once without losing or delaying eligibility for intercollegiate athletics if specified conditions are met.
The AIAC shall serve as a clearinghouse for best practices with respect to the rights and protections of amateur intercollegiate athletes who enter into agency and endorsement contracts.
The bill requires institutions of higher education to provide a certain level of health care coverage for such athletes. Such institutions must make specified legally binding disclosures to each athlete before he or she commits to enroll in or attend the institution.
The institution must comply with requirements of this bill in order to participate in certain federal student financial aid programs.

To provide standards relating to compensation for the use of the names, 
   images, and likenesses of amateur intercollegiate athletes and to 
provide protections for amateur intercollegiate athletes, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Amateur Athletes Protection and 
Compensation Act of 2021''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Agency contract.--The term ``agency contract'' means a 
        written agreement in which an amateur intercollegiate athlete 
        authorizes an amateur athlete representative to act on behalf 
        of the amateur intercollegiate athlete.
            (2) AIAC.--The term ``AIAC'' means the Amateur 
        Intercollegiate Athletics Corporation established by section 
        8(a).
            (3) Amateur athlete representative.--
                    (A) In general.--The term ``amateur athlete 
                representative'' means an individual who--
                            (i) enters into an agency contract with an 
                        amateur intercollegiate athlete; or
                            (ii) directly or indirectly recruits or 
                        solicits an amateur intercollegiate athlete for 
                        the purpose of--
                                    (I) entering into an agency 
                                contract with the amateur 
                                intercollegiate athlete;
                                    (II) representing or attempting to 
                                represent the amateur intercollegiate 
                                athlete for the purpose of marketing 
                                his or her athletics ability or 
                                reputation for financial gain; or
                                    (III) seeking to obtain any type of 
                                financial gain or benefit from the 
                                potential earnings of the amateur 
                                intercollegiate athlete as a 
                                professional athlete.
                    (B) Inclusions.--The term ``amateur athlete 
                representative'' includes--
                            (i) a certified contract advisor;
                            (ii) a financial advisor;
                            (iii) a marketing representative;
                            (iv) a brand manager; and
                            (v) any individual employed by or 
                        associated with an individual described in any 
                        of clauses (i) through (iv).
                    (C) Exclusions.--The term ``amateur athlete 
                representative'' does not include--
                            (i) the spouse, a parent, a sibling, a 
                        grandparent, or a legal guardian of an amateur 
                        intercollegiate athlete; or
                            (ii) an individual acting solely on behalf 
                        of a professional sports team or a professional 
                        sports organization.
            (4) Amateur intercollegiate athlete.--The term ``amateur 
        intercollegiate athlete'' means an athlete who is or may be 
        recruited to attend, or is enrolled in, a 4-year degree-
        granting institution of higher education.
            (5) Amateur intercollegiate athletic event.--
                    (A) In general.--The term ``amateur intercollegiate 
                athletic event'' means a game, meet, competition, 
                banquet, practice, conditioning session, media session, 
                or any other event that has been organized or 
                authorized by an athletics representative of an 
                institution of higher education or by a national 
                amateur athletic association, regardless of whether 
                such event occurs on or off the campus of an 
                institution of higher education or during or outside 
                the season for competition.
                    (B) Inclusion.--The term ``amateur intercollegiate 
                athletic event'' includes travel to and from any event 
                described in subparagraph (A).
            (6) Amateur intercollegiate athletic competition.--The term 
        ``amateur intercollegiate athletic competition'' means any 
        varsity game, meet, or other competition between or among teams 
        sponsored by institutions of higher education.
            (7) Athletics booster.--The term ``athletics booster'' 
        means any individual or entity that, directly or indirectly, 
        through any other individual or entity or in any other manner--
                    (A) has provided 1 or more donations exceeding 
                $5,000, in the aggregate, to obtain season tickets for 
                any sport at an institution of higher education;
                    (B) has made 1 or more financial contributions 
                exceeding $5,000, in the aggregate, to the athletics 
                department or other athletics management organization 
                of an institution of higher education; or
                    (C) has assisted, or been requested by an employee 
                of an institution of higher educations to assist, in 
                the recruitment of an amateur intercollegiate athlete.
            (8) Conference.--The term ``conference'' means any 
        organization or association that--
                    (A) has as members 2 or more institutions of higher 
                education;
                    (B) arranges championships and sets rules for 
                amateur intercollegiate athletic competition.
            (9) Cost of attendance.--The term ``cost of attendance''--
                    (A) has the meaning given the term in section 472 
                of the Higher Education Act of 1965 (20 U.S.C. 1087ll); 
                and
                    (B) shall be calculated by the financial aid office 
                of an institution of higher education applying the same 
                standards, policies, and procedures for all students.
            (10) Covered compensation.--
                    (A) In general.--The term ``covered compensation'' 
                means any remuneration, in cash or in kind and 
                regardless of the date on which the remuneration is 
                provided, to an amateur intercollegiate athlete.
                    (B) Exclusion.--The term ``covered compensation'' 
                does not include the payment or provision of any of the 
                following--
                            (i) grants-in-aid;
                            (ii) Federal Pell Grants and other State or 
                        Federal grants unrelated and not awarded with 
                        regard to participation in amateur 
                        intercollegiate athletic events;
                            (iii) health insurance and costs of health 
                        care, including health insurance and health 
                        care costs wholly or partly self-funded by an 
                        institution of higher education or a national 
                        amateur 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 of higher education or 
                        a national amateur athletic association;
                            (v) career counseling, job placement 
                        services, and other guidance available to all 
                        students at an institution of higher education; 
                        and
                            (vi) payment of hourly wages and benefits 
                        for work actually performed (and not for 
                        participation in amateur intercollegiate 
                        athletic event) at a rate commensurate with the 
                        going rate in the locality of an institution of 
                        higher education for similar work.
            (11) Endorsement contract.--The term ``endorsement 
        contract'' has the meaning given the term in section 2 of the 
        Sports Agent Responsibility and Trust Act (15 U.S.C. 7801).
            (12) Former amateur intercollegiate athlete.--The term 
        ``former intercollegiate athlete'' means an amateur 
        intercollegiate athlete who is no longer eligible to 
        participate in amateur intercollegiate athletic competition.
            (13) Grant-in-aid.--The term ``grant-in-aid''--
                    (A) 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--
                            (i) is paid or provided by an institution 
                        of higher education to a student for the 
                        student's undergraduate or graduate course of 
                        study; and
                            (ii) is in an amount that does not exceed 
                        the cost of attendance for such student at the 
                        institution; and
                    (B) does not include covered compensation paid to 
                an individual who is an amateur intercollegiate athlete 
                or a former amateur intercollegiate athlete.
            (14) Image.--The term ``image'', with respect to an amateur 
        intercollegiate athlete, means a photograph, video, or 
        computer-generated representation that identifies, is linked 
        to, or is reasonably linkable to the athlete.
            (15) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term under section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (16) Likeness.--The term ``likeness'' means--
                    (A) with respect to an amateur intercollegiate 
                athlete of a sport for which the athlete has a jersey 
                number, the jersey number associated with the athlete 
                and the sport in which the athlete participates at a 
                particular institution of higher education during the 
                period of the participation of the athlete in the sport 
                at the institution of higher education, if the jersey 
                number is accompanied by--
                            (i) a logo or color scheme that is clearly 
                        associated with the institution of higher 
                        education; or
                            (ii) some other means by which the jersey 
                        number is clearly associated with the 
                        particular athlete; and
                    (B) with respect to any amateur intercollegiate 
                athlete--
                            (i) the uniquely identifiable voice or 
                        catch phrase of the athlete; or
                            (ii) any other trademark that identifies or 
                        distinguishes the athlete.
            (17) Name.--The term ``name'', with respect to an amateur 
        intercollegiate athlete, means--
                    (A) a combination of a first and last or family 
                name that identifies the athlete;
                    (B) a last or family name that identifies the 
                athlete; or
                    (C) a unique nickname that identifies the athlete.
            (18) National amateur athletic association.--
                    (A) In general.--The term ``national amateur 
                athletic association'' means a not-for-profit 
                corporation, an association, or any other group 
                organized in the United States that--
                            (i) sponsors or arranges amateur 
                        intercollegiate athletic competition between 
                        institutions of higher education; and
                            (ii) sets common rules, standards, 
                        procedures, or guidelines for the 
                        administration of amateur intercollegiate 
                        athletic competition at institutions of higher 
                        education.
                    (B) Inclusions.--The term ``national amateur 
                athletic association'' includes--
                            (i) the National Collegiate Athletic 
                        Association; and
                            (ii) each division and member conference of 
                        the National Collegiate Athletic Association, 
                        or of any other national amateur athletic 
                        association, separately and collectively.
            (19) Third party.--The term ``third party'' means an 
        individual or entity that--
                    (A) is not an athletics department or an athletics 
                booster of an institution of higher education; and
                    (B) is unaffiliated with an athletics department or 
                an athletics booster of an institution of higher 
                education.
            (20) Unaffiliated.--With respect to 2 or more individuals 
        or entities, the term ``unaffiliated'' means that the 
        individuals or entities do not share interrelated operations, 
        common management, centralized control of labor relations, or 
        common ownership or financial control.

SEC. 3. COVERED COMPENSATION PROVIDED BY UNAFFILIATED THIRD PARTIES.

    The provision of covered compensation to an amateur intercollegiate 
athlete who is enrolled, or may in the future enroll, in an institution 
of higher education--
            (1) may only be promised, paid, and permitted if the 
        covered compensation is sourced from, and provided at the 
        discretion of, a third party; and
            (2) shall not be promised, paid, or permitted to induce--
                    (A) the recruitment of an amateur intercollegiate 
                athlete to any institution of higher education or a 
                group of institutions of higher education; or
                    (B) an amateur intercollegiate athlete to continue 
                attending a particular institution of higher education.

SEC. 4. PROTECTIONS FOR AMATEUR INTERCOLLEGIATE ATHLETES.

    (a) Representation Contracts.--A national amateur athletic 
association or an institution of higher education may not punish or 
prohibit the participation of an amateur intercollegiate athlete in an 
amateur intercollegiate athletic event or amateur intercollegiate 
athletic competition based on the amateur intercollegiate athlete 
having entered into an agency contract with an amateur athlete 
representative who has been certified by the AIAC in accordance with 
section 8(b)(4).
    (b) Endorsement Contracts.--
            (1) In general.--Except as provided in paragraph (2), a 
        national amateur athletic association or an institution of 
        higher education may not punish or prohibit the participation 
        of an amateur intercollegiate athlete in an intercollegiate 
        athletic event or amateur intercollegiate athletic competition 
        based on the amateur intercollegiate athlete having entered 
        into an endorsement contract with a third party.
            (2) Exceptions.--A national amateur athletic association or 
        an institution of higher education may prohibit the 
        participation of an amateur intercollegiate athlete in an 
        intercollegiate athletic event or amateur intercollegiate 
        athletic competition based on the amateur intercollegiate 
        athlete having entered into an endorsement contract with a 
        third party if the contract violates--
                    (A) the code of student conduct of the applicable 
                national amateur athletic association or institution of 
                higher education; or
                    (B) a rule established by the AIAC in accordance 
                with section 8(b)(2).
            (3) Limitation.--During and immediately before and after an 
        amateur intercollegiate athletic event, an institution of 
        higher education may prohibit an amateur intercollegiate 
        athlete enrolled at such institution from engaging in 
        promotional or endorsement activities in connection with an 
        endorsement contract.
            (4) Disclosures.--
                    (A) Enrolled athletes.--With respect to an amateur 
                intercollegiate athlete enrolled in an institution of 
                higher education who enters into an endorsement 
                contract, the amateur intercollegiate athlete shall, 
                not later than 7 days after entering into the 
                endorsement contract, provide to the institution of 
                higher education a copy of the endorsement contract.
                    (B) Recruited athletes.--With respect to an amateur 
                intercollegiate athlete who is or may be recruited to 
                attend, but not yet enrolled in, an institution of 
                higher education and who enters into an endorsement 
                contract, the amateur intercollegiate athlete shall, 
                before signing a letter of intent, provide to the 
                institution of higher education a copy of all current 
                and expired endorsement contracts entered into by the 
                amateur intercollegiate athlete.
    (c) Rescission of Agreements.--An amateur intercollegiate athlete 
who no longer participates in amateur intercollegiate athletic 
competitions may rescind an endorsement contract with a remaining term 
of more than 1 year--
            (1) without being held liable for breach; and
            (2) with no obligation to return payments received before 
        giving notice of the rescission.
    (d) Professional Sports Drafts.--A national amateur athletic 
association or an institution of higher education may not prohibit the 
participation of an amateur intercollegiate athlete in an amateur 
intercollegiate athletic event based on the amateur intercollegiate 
athlete having entered into a professional sports draft, if the amateur 
intercollegiate athlete--
            (1) does not receive compensation, directly or indirectly, 
        from--
                    (A) a professional sports league;
                    (B) a professional sports team; or
                    (C) a sports agent;
                    (D) an amateur athlete representative; or
                    (E) any individual or entity affiliated with an 
                individual or entity described in any of subparagraphs 
                (A) through (D); and
            (2) not later than 7 days after the completion of the 
        draft, declares his or her intent to resume participation in 
        amateur intercollegiate athletic competition.
    (e) Grant-in-Aid Protection.--
            (1) In general.--Subject to paragraph (2), an institution 
        of higher education shall honor the grant-in-aid of an amateur 
        intercollegiate athlete.
            (2) Former amateur intercollegiate athletes.--An 
        institution of higher education shall continue to provide a 
        grant-in-aid covering full tuition, books, and fees to any 
        former amateur intercollegiate athlete who--
                    (A) received a full grant-in-aid while enrolled at 
                the institution of higher education; and
                    (B) has not completed his or her course of study 
                for an undergraduate degree as a result of pursuing a 
                career in professional sports.
            (3) Revocation and reinstatement.--
                    (A) Revocation.--An institution of higher education 
                may revoke the grant-in-aid of an amateur 
                intercollegiate athlete or a former amateur 
                intercollegiate athlete who--
                            (i) transfers to another institution of 
                        higher education; or
                            (ii) does not--
                                    (I) remain in good standing, 
                                determined in accordance with--
                                            (aa) the rules established 
                                        by the AIAC under section 
                                        8(b)(2); or
                                            (bb) in the case of an 
                                        amateur intercollegiate athlete 
                                        who is enrolled in an 
                                        institution of higher education 
                                        the standards of which are more 
                                        stringent than the standards 
                                        described in item (aa), the 
                                        standards of the institution of 
                                        higher education;
                                    (II) comply with the code of 
                                conduct of the institution of higher 
                                education; and
                                    (III) meet athletic program 
                                standards and norms for participating 
                                in mandatory team athletic activities.
                    (B) Limitations.--An institution of higher 
                education may not revoke the grant-in-aid of an amateur 
                intercollegiate athlete--
                            (i) on the basis of the amateur 
                        intercollegiate athlete's athletics ability, 
                        performance, or contribution to team success; 
                        or
                            (ii) as a result of an injury or illness or 
                        based on a physical or mental medical condition 
                        of the amateur intercollegiate athlete.
                    (C) Reinstatement.--In the case of a revocation 
                under subparagraph (A), an institution of higher 
                education may reinstate grant-in-aid if the amateur 
                intercollegiate athlete concerned reestablishes good 
                standing.
    (f) Limitation on Transfer Penalties.--An amateur intercollegiate 
athletics association shall allow an amateur intercollegiate athlete in 
any sport to transfer from one institution of higher education to 
another not less than once without losing or delaying eligibility for 
intercollegiate athletics if--
            (1) not less than 7 days before transferring, the amateur 
        intercollegiate athlete provides to his or her athletic 
        director notice of intent to transfer; and
            (2) the transfer does not occur during--
                    (A) the season of the sport of the amateur 
                intercollegiate athlete; or
                    (B) the 60-day period before the commencement of 
                such season.
    (g) Medical Expenses.--Except as provided in paragraph (3), the 
responsibilities of institutions of higher education with respect to 
the health care coverage and medical expenses of amateur 
intercollegiate athletes are as follows:
            (1) Out-of-pocket expenses.--
                    (A) Institutions of higher education reporting 
                $20,000,000 or more.--An institution of higher 
                education that reports not less than $20,000,000 in 
                total annual athletics revenue to the Department of 
                Education during the academic year immediately 
                preceding the date of the last amateur intercollegiate 
                athletic competition of an amateur intercollegiate 
                athlete shall, during the 2-year period beginning on 
                the day after such last amateur intercollegiate 
                athletic competition, be financially responsible for 
                all out-of-pocket medical expenses, up to the 
                deductible, of the amateur intercollegiate athlete's 
                health care coverage for any injury or communicable 
                disease that was incurred or acquired while the amateur 
                intercollegiate athlete was participating in an amateur 
                intercollegiate athletic event or an amateur 
                intercollegiate athletic competition.
                    (B) Institutions of higher education reporting 
                $50,000,000 or more.--An institution of higher 
                education that reports not less than $50,000,000 in 
                total annual athletics revenue to the Department of 
                Education during the academic year immediately 
                preceding the date of the last amateur intercollegiate 
                athletic competition of an amateur intercollegiate 
                athlete shall, during the 4-year period beginning on 
                the day after such last amateur athletic competition, 
                be financially responsible for--
                            (i) providing or procuring the amateur 
                        intercollegiate athlete's health care coverage 
                        for any injury or communicable disease that was 
                        incurred or acquired while the amateur 
                        intercollegiate athlete was participating in an 
                        amateur intercollegiate athletic event or an 
                        amateur intercollegiate athletic competition; 
                        and
                            (ii) all out-of-pocket medical expenses, up 
                        to the deductible, for medical care for such 
                        injury or disease.
            (2) Second opinions.--During the enrollment of an amateur 
        intercollegiate athlete in an institution of higher education 
        and continuing through the 2-year period described in 
        subparagraph (A) of paragraph (1) or the 4-year period 
        described in subparagraph (B) of that paragraph, as applicable, 
        an institution of higher education shall be financially 
        responsible for the expense of obtaining, for amateur 
        intercollegiate athletes and former amateur intercollegiate 
        athletes, medical second opinions independent from the 
        institution of higher education.
            (3) Exception.--The responsibilities under paragraphs (1) 
        and (2) shall not apply to an institution of higher education 
        in the case of an amateur intercollegiate athlete who transfers 
        out of the institution of higher education to continue 
        participation in intercollegiate athletics elsewhere.

SEC. 5. EMPLOYMENT MATTERS.

    Notwithstanding any other provision of Federal or State law, an 
amateur intercollegiate athlete shall not be considered an employee of 
an institution of higher education, a conference, or a national amateur 
athletic association based on the amateur intercollegiate athlete's 
participation in amateur intercollegiate athletic events or amateur 
intercollegiate athletic competitions.

SEC. 6. TRANSPARENCY.

    (a) Disclosures.--
            (1) In general.--An institution of higher education shall 
        make the following legally binding disclosures to each amateur 
        intercollegiate athlete before he or she commits to enroll in 
        or attend the institution of higher education:
                    (A) The amount and duration of grant-in-aid the 
                institution of higher education will provide to the 
                amateur intercollegiate athlete, relative to the most 
                recent cost of attendance, for each academic school 
                year and each summer session.
                    (B) The amount and duration of grant-in-aid the 
                institution of higher education will provide to assist 
                the amateur intercollegiate athlete with undergraduate 
                degree completion and graduate degree completion 
                following the expiration of the intercollegiate 
                athletics eligibility of the amateur intercollegiate 
                athlete.
                    (C) The percentage of comprehensive medical 
                coverage required, including any required coverage to 
                participate in intercollegiate athletics or to enroll 
                as a student, that will be paid by the institution of 
                higher education during the period of intercollegiate 
                athletics eligibility of the amateur intercollegiate 
                athlete.
                    (D) The percentage of any out-of-pocket sports-
                related medical expenses including deductibles, copays, 
                and coinsurance, that the institution of higher 
                education will pay during the period of intercollegiate 
                athletics eligibility of the amateur intercollegiate 
                athlete, and the period for which such expenses will be 
                covered after such eligibility expires. Differences 
                between in-network and out-of-network expenses shall be 
                stated.
                    (E) Whether or not the institution of higher 
                education will pay for a disability insurance policy to 
                cover the maximum available future loss of earnings 
                benefit based on market rates of similarly situated 
                amateur intercollegiate athletes.
            (2) Rule of construction.--Nothing in this subsection shall 
        be construed to require an institution of higher education to 
        provide a benefit described in any of subparagraphs (A) through 
        (E) of paragraph (1) unless otherwise required by this Act.
    (b) Funding Transparency.--Section 485(e)(1) of the Higher 
Education Act of 1965 (20 U.S.C. 1092(e)(1)) is amended--
            (1) in subparagraph (E), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (F), by striking the period and 
        inserting a semicolon; and
            (3) by adding at the end of the following:
                    ``(G) the total compensation of--
                            ``(i) the athletic director of the 
                        institutions;
                            ``(ii) each head coach and each assistant 
                        coach of the institution, by sport;
                    ``(H) the amount of Federal funds received by the 
                institution of higher education; and
                    ``(I) the amount of State funds received by the 
                institution of higher education.''.

SEC. 7. INSTITUTION REQUIREMENTS FOR FEDERAL STUDENT LOAN PROGRAM.

    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)(A) The institution will--
                    ``(i) comply with the requirements of sections 3, 
                4, 5, and 6 of the Amateur Athletes Protection and 
                Compensation Act of 2021; and
                    ``(ii) refrain from providing (or affecting or 
                influencing any third party to provide)--
                            ``(I) any covered compensation to any 
                        amateur intercollegiate athlete; or
                            ``(II) any financial aid, participation 
                        benefit, licensing revenue, or other benefit or 
                        payment to an amateur intercollegiate athlete 
                        for use of the athlete's name, image, or 
                        likeness.
            ``(B) In this paragraph, the terms `amateur intercollegiate 
        athlete', `covered compensation', `image', `likeness', `name', 
        and `third party' have the meanings given the terms in section 
        2 of the Amateur Athletes Protection and Compensation Act of 
        2021.''.

SEC. 8. ESTABLISHMENT OF THE AMATEUR INTERCOLLEGIATE ATHLETICS 
              CORPORATION.

    (a) Establishment.--There is established a government corporation, 
to be known as the ``Amateur Intercollegiate Athletics Corporation'', 
which shall not for any purpose be an agency or instrumentality of the 
United States Government and shall be subject to the provisions of this 
section.
    (b) Purposes.--The purposes of the AIAC are as follows:
            (1) To serve as a clearinghouse for best practices with 
        respect to the rights and protections of amateur 
        intercollegiate athletes who enter into agency contracts and 
        endorsement contracts, including by providing guidance to 
        amateur intercollegiate athletes concerning such contracts.
            (2) To establish rules to enforce this Act and impose 
        fines, penalties, and sanctions on amateur athlete 
        representatives, institutions of higher education, conferences, 
        and national amateur athletic associations that violate such 
        rules.
            (3) To coordinate with the Federal Trade Commission to 
        promulgate, administer, and enforce standards for reviewing and 
        certifying endorsement contracts entered into by amateur 
        intercollegiate athletes, including competency and ethical 
        standards, that apply to--
                    (A) national amateur athletic associations;
                    (B) conferences;
                    (C) amateur intercollegiate athletes;
                    (D) institutions of higher education; and
                    (E) amateur athlete representatives.
            (4) To establish a formal certification process for amateur 
        athlete representatives by which the AIAC shall--
                    (A) determine the eligibility of an individual to 
                serve as an amateur athlete representative;
                    (B) periodically verify an amateur athlete 
                representative's continued eligibility and compliance 
                with this Act and the best practices, rules, and 
                competency and ethical standards established under this 
                subsection; and
                    (C) in the case of noncompliance with this Act or 
                any such best practice, rule, or competency or ethical 
                standard, revoke a certification issued in accordance 
                with this paragraph.
            (5) To provide recommendations to institutions of higher 
        education, national amateur athletic associations, and 
        conferences on protecting amateur intercollegiate athletes from 
        unscrupulous amateur athlete representatives.
            (6) To investigate disputes with respect to agency 
        contracts and endorsement contracts entered into by amateur 
        intercollegiate athletes, including--
                    (A) verifying that amateur athlete representatives 
                involved in the endorsement contract process have acted 
                in the best interests of amateur intercollegiate 
                athletes; and
                    (B) monitoring compliance with, and making 
                determinations and findings concerning violations of, 
                this Act.
            (7) To provide to amateur intercollegiate athletes a 
        process for the swift resolution of conflicts concerning agency 
        contracts and endorsement contracts, including by providing a 
        neutral arbitrator for any case in which an amateur 
        intercollegiate athlete is the complaining party.
            (8) To ensure institutions of higher education and covered 
        athletic organizations are complying with agency contract and 
        endorsement contract rules set forth by the AIAC in accordance 
        with this section.
    (c) Membership.--
            (1) Eligibility.--Eligibility for membership in the AIAC 
        shall be as provided in the constitution and bylaws of the 
        AIAC.
            (2) Required provisions for representation.--In its 
        constitution and bylaws, the AIAC shall establish and maintain 
        provisions with respect to its governance and the conduct of 
        its affairs for the reasonable representation of--
                    (A) amateur intercollegiate athletes;
                    (B) administrators of institutions of higher 
                education, including directors of athletics;
                    (C) administrators of national amateur athletic 
                associations;
                    (D) athletic conference administrators;
                    (E) professionals with expertise in sports 
                marketing, contracting, and public relations; and
                    (F) individuals unaffiliated with any national 
                amateur athletic association who, in the judgment of 
                the board of directors of the AIAC, represent the 
                interest of providing oversight of the activities of 
                the AIAC.
    (d) Board of Directors.--
            (1) In general.--The AIAC shall be governed by a board of 
        directors comprised of 15 voting members.
            (2) Representation.--
                    (A) In general.--Not less than \1/3\ of the 
                membership of the board of directors of the AIAC shall 
                be composed of current or former amateur 
                intercollegiate athletes.
                    (B) Current amateur intercollegiate athletes.--Not 
                less than 20 percent of the membership of the board of 
                directors of the AIAC shall be composed of amateur 
                intercollegiate athletes who are--
                            (i) enrolled in a 4-year degree-granting 
                        institution of higher education; and
                            (ii) actively engaged in amateur 
                        intercollegiate athletic events.
    (e) Powers.--
            (1) Constitution and bylaws.--The AIAC shall adopt a 
        constitution and bylaws.
            (2) General corporate powers.--The AIAC may--
                    (A) establish and maintain offices to conduct the 
                affairs of the AIAC;
                    (B) enter into contracts;
                    (C) accept gifts, legacies, and devises in 
                furtherance of its corporate purposes;
                    (D) acquire, own, lease, encumber, and transfer 
                property as necessary to carry out the purposes of the 
                AIAC;
                    (E) borrow money, issue instruments of 
                indebtedness, and secure its obligations by granting 
                security interests in its property;
                    (F) publish a magazine, newsletter, and other 
                publications consistent with its corporate purposes;
                    (G) approve and revoke membership in the AIAC; and
                    (H) conduct any other activity necessary and proper 
                to carry out the purposes of the AIAC.
            (3) Subpoena power.--The AIAC shall have subpoena power and 
        shall adopt rules that will result in the AIAC, in response to 
        appropriate requests, issuing subpoenas duces tecum and ad 
        testificandum and compelling deposition testimony at the 
        request of a national amateur athletic association.
    (f) Restrictions.--
            (1) Profit and stock.--The AIAC may not engage in business 
        for profit or issue stock.
            (2) Political activities.--The AIAC shall be nonpolitical 
        and may not promote the candidacy of an individual seeking 
        public office.
    (g) Headquarters, Principal Office, and Meetings.--The AIAC shall 
maintain its principal office and national headquarters in a location 
in the United States decided by the AIAC. The AIAC may hold its annual 
and special meetings in the places decided by the AIAC.
    (h) Service of Process.--As a condition to the exercise of any 
power or privilege granted by this chapter, the AIAC shall have a 
designated agent to receive service of process for the AIAC. Notice to 
or service on the agent, or mailed to the business address of the 
agent, is notice to or service on the AIAC.
    (i) Report.--Not less frequently than annually, the AIAC shall 
submit to the Committee on Commerce, Transportation, and Science of the 
Senate and the Committee on Energy and Commerce of the House of 
Representatives a report that includes--
            (1) the number of disputes investigated by the AIAC in the 
        preceding year pursuant to subsection (b)(6);
            (2) the number of such disputes filed in the preceding 
        year; and
            (3) any recommendations to improve the endorsement contract 
        process.

SEC. 9. ENFORCEMENT.

    (a) Unfair or Deceptive Act or Practice.--A violation of this Act 
shall be treated as a violation of a rule defining an unfair or 
deceptive act or practice prescribed under section 18(a)(1)(B) of the 
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
    (b) Actions by the Commission.--The Federal Trade Commission shall 
enforce this Act in the same manner, by the same means, and with the 
same jurisdiction, powers, and duties as though all applicable terms 
and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et 
seq.) were incorporated into and made a part of this Act.

SEC. 10. ROLE OF NATIONAL AMATEUR ATHLETIC ASSOCIATIONS.

    A national amateur athletic association may establish rules, 
consistent with this Act and the rules developed under section 8(b)(2), 
and enforce such rules by--
            (1) declaring ineligible for amateur intercollegiate 
        athlete competition an amateur intercollegiate athlete who 
        receives payments in violation of such rules; and
            (2) withholding 1 or more revenue distributions from an 
        institution of higher education that makes payments in 
        violation of such rules.

SEC. 11. REPORTING.

    (a) Biennial Report.--Not later than 180 days after the date of 
enactment of this Act, and biennially thereafter, the head of each 
national amateur athletic association shall submit to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee 
on Energy and Commerce of the House of Representatives a report that 
includes--
            (1) a summary of the systemic issues faced by the national 
        amateur athletic association relating to compliance with this 
        Act;
            (2) a summary of the trends that are developing among 
        national amateur athletic associations, conferences, and 
        institutions of higher education in response to the 
        prohibitions under this Act; and
            (3) recommendations for improvements to intercollegiate 
        athletics that would improve the health, safety, and 
        educational opportunities of amateur intercollegiate athletes.
    (b) Investigation and Report.--Not later than 5 years after the 
date of enactment of this Act and once every 5 years thereafter, the 
Comptroller General of the United States shall--
            (1) conduct an investigation to assess compliance with this 
        Act; and
            (2) submit to Congress a report that includes--
                    (A) a summary of the investigation conducted under 
                paragraph (1); and
                    (B) recommendations for improvements to 
                intercollegiate athletics that would improve the 
                health, safety, and educational opportunities of 
                amateur intercollegiate athletes.

SEC. 12. LIMITATION OF LIABILITY.

    A national amateur athletic association, a conference, or an 
institution of higher education that complies with the requirements 
under this Act shall not be subject to liability, based on action taken 
by the national amateur athletic association, conference, or 
institution of higher education before the date of enactment of this 
Act, under--
            (1) any Federal or State statute relating to trade or 
        competition; or
            (2) any Federal or State statute relating to tortious 
        interference based on concepts of unfair competition.

SEC. 13. PREEMPTION.

    No State or political subdivision of a State may establish or 
continue in effect any law or regulation that governs or regulates the 
compensation, intellectual property rights, endorsement contracts, 
employment status, or eligibility for an amateur intercollegiate 
athletic competition of any amateur intercollegiate athlete, including 
any provision that governs or regulates the commercial use of the name, 
image, or likeness of an amateur intercollegiate athlete.
                                 <all>