Collegiate Athlete Compensation Rights Act
Bill: S.4855 | Sponsor: Sen. Wicker, Roger F. (R-MS)
Policy area: Sports and Recreation

Summary:
Collegiate Athlete Compensation Rights Act
This bill addresses the rights of student athletes and issues of transparency and accountability regarding student athlete name, image, and likeness (NIL) agreements.
Specifically, an athletic association, conference, or institution must permit a student athlete or a group of student athletes to
A third party may not use the NIL of a group to sell or promote any product or service without obtaining the written consent from each member of the group for that purpose.
The Federal Trade Commission (FTC) must make available specified educational resources for student athletes with respect to financial and contract literacy and earning compensation for the commercial use of the student athlete's NIL.
The bill sets forth prohibitions on activities of institutions, boosters, and third parties, including a prohibition on institutions, athletic associations, or conferences entering into NIL agreements with student athletes. The bill limits transfer penalties and prohibits incentives intended to induce the student athlete to enroll in, maintain enrollment in, or transfer to a particular institution.
The FTC must establish an Office of Sport.
The Government Accountability Office must report to Congress on the health, safety, and education needs of student athletes.

To protect the rights of student athletes and to provide for 
 transparency and accountability with respect to student athlete name, 
        image, and likeness agreements, 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 ``Collegiate Athlete Compensation 
Rights Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Athletic association.--The term ``athletic 
        association'' means any organization or other group that--
                    (A) has 2 or more conferences as members; and
                    (B) arranges, sets rules for, or regulates varsity 
                intercollegiate sports competition.
            (2) Athletic department.--The term ``athletic department'' 
        means a department at an institution responsible for sponsoring 
        1 or more varsity intercollegiate athletic programs.
            (3) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Committee on Commerce, Science, and 
                Transportation and the Committee on Health, Education, 
                Labor, and Pensions of the Senate; and
                    (B) the Committee on Energy and Commerce and the 
                Committee on Education and Labor of the House of 
                Representatives.
            (4) Booster.--With respect to an institution, the term 
        ``booster'' means--
                    (A) an individual or entity that, directly or 
                indirectly, through any other individual or entity or 
                in any other manner--
                            (i) has provided a donation to obtain 
                        season tickets for any varsity intercollegiate 
                        athletic program at the institution that 
                        exceeds the annual amount determined by the 
                        Commission;
                            (ii) has made a financial contribution 
                        directly to the athletic department or other 
                        athletics management organization of the 
                        institution in an amount that exceeds the 
                        annual amount determined by the Commission;
                            (iii) is party to any agreement for use of 
                        the trademarks of the institution in connection 
                        with any varsity intercollegiate athletic 
                        program under which the total payments exceed 
                        such amount;
                            (iv) has made any combination of such 
                        financial donations, contributions, 
                        expenditures, or payments in connection with an 
                        activity described in any of clauses (i) 
                        through (iii), that, in the aggregate, exceed 
                        such amount;
                            (v) has arranged or provided employment for 
                        1 or more student athletes; or
                            (vi) has assisted, or been requested by an 
                        employee of the institution to assist, in the 
                        recruitment of a prospective student athlete; 
                        and
                    (B) includes any entity, group or collective, 
                including any tax-exempt or nonprofit entity, that is 
                controlled by, or receives or has received 25 percent 
                or more of its funding or assets from, 1 or more 
                individuals or entities described in subparagraph (A) 
                of the institution.
            (5) Certified agent.--The term ``certified agent'' means an 
        athlete agent (as defined in section 2 of the Sports Agent 
        Responsibility and Trust Act (15 U.S.C. 7801)), a contract 
        advisor, a financial advisor, a marketing representative, a 
        brand manager, or a similarly employed individual who is 
        certified by the Commission as being in full compliance with 
        all requirements established by the Commission--
                    (A) to represent a student athlete in a name, 
                image, and likeness agreement;
                    (B) to provide consulting services to a student 
                athlete with respect to a name, image, and likeness 
                agreement; or
                    (C) to recruit or solicit, directly or indirectly, 
                a student athlete--
                            (i) to engage in an activity described in 
                        subparagraph (A) or (B); or
                            (ii) to represent or attempt to represent a 
                        student athlete for the purpose of marketing 
                        the name, image, or likeness of the student 
                        athlete.
            (6) Chair.--The term ``Chair'' means the Chair of the 
        Federal Trade Commission.
            (7) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (8) Conference.--The term ``conference'' means any 
        organization that--
                    (A) is not an athletic association;
                    (B) has 2 or more institutions as members; and
                    (C) arranges championships, sets rules for, or 
                regulates varsity intercollegiate sports 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 by applying the same standards, 
                policies, and procedures for all students at such 
                institution.
            (10) Covered compensation.--
                    (A) In general.--With respect to a name, image, and 
                likeness agreement, the term ``covered compensation'' 
                means any payment, remuneration, or benefit, including 
                cash, awards, gifts, and in-kind contributions, that--
                            (i) is provided by a third party to a 
                        student athlete;
                            (ii) is commensurate with the market value 
                        for the activity carried out under the name, 
                        image, and likeness agreement; and
                            (iii) is not, or is not intended to be, a 
                        recruiting inducement or compensation for 
                        participation in a varsity intercollegiate 
                        sport.
                    (B) Exclusion.--The term ``covered compensation'' 
                does not include grant-in-aid.
            (11) Grant-in-aid.--The term ``grant-in-aid'' means--
                    (A) tuition, room, board, books, fees, and personal 
                expenses paid or provided by an institution up to the 
                full cost of attendance;
                    (B) Federal Pell Grants and other State and Federal 
                grants unrelated to, and not awarded with respect to, 
                participation in varsity intercollegiate sports 
                competition;
                    (C) health insurance and the costs of health care 
                wholly or partly self-funded by an athletic 
                association, a conference, or an institution;
                    (D) disability and loss of value insurance that is 
                wholly or partly self-funded by an athletic 
                association, a conference, or an institution;
                    (E) career counseling or job placement services 
                available to all students at an institution; or
                    (F) payment of hourly wages and benefits for work 
                actually performed (and not for participation in a 
                varsity intercollegiate athletic program) at a rate 
                commensurate with the prevailing rate in the locality 
                of an institution for similar work.
            (12) Image.--The term ``image'', with respect to a student 
        athlete, means a photograph, video, or computer-generated 
        representation that identifies, is linked to, or is reasonably 
        linkable to the student athlete.
            (13) Institution.--The term ``institution'' means an 
        institution of higher education (as defined in section 101 of 
        the Higher Education Act of 1965 (20 U.S.C. 1001)).
            (14) Likeness.--The term ``likeness'', with respect to a 
        student athlete, means--
                    (A) with respect to a student athlete of a sport 
                for which the student athlete has a jersey number, the 
                jersey number associated with the student athlete and 
                the sport in which the student athlete participates at 
                a particular institution during the period of the 
                participation of the student athlete in the sport at 
                the institution, if the jersey number is accompanied 
                by--
                            (i) a logo or color scheme that is clearly 
                        associated with the institution; or
                            (ii) some other means by which the jersey 
                        number is associated with the particular 
                        student athlete; and
                    (B) with respect to any student athlete--
                            (i) the uniquely identifiable voice, catch 
                        phrase, or nickname of the student athlete; or
                            (ii) any other mark that identifies or 
                        distinguishes the student athlete.
            (15) Loss of value insurance.--The term ``loss of value 
        insurance'' means insurance that protects the future contract 
        value of a student athlete from decreasing below a 
        predetermined amount due to significant injury or illness 
        suffered by the student athlete during the designated coverage 
        period of the insurance policy.
            (16) Name.--The term ``name'', with respect to a student 
        athlete, means the first or last name, the nickname, or the 
        username on any internet platform of the student athlete when 
        used in a context that reasonably identifies the student 
        athlete with specificity or particularity.
            (17) Name, image, and likeness agreement.--The term ``name, 
        image, and likeness agreement'' means a contract or similar 
        arrangement between a student athlete and a third party 
        regarding the commercial use of the name, image, or likeness of 
        the student athlete in exchange for covered compensation.
            (18) Prospective student athlete.--The term ``prospective 
        student athlete'' means an individual attending an elementary 
        school or a secondary school (as such terms are defined in 
        section 8101 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 7801)) who participates in a sport program.
            (19) Publicity right.--The term ``publicity right''--
                    (A) means a right that is recognized under a 
                Federal or State law that permits an individual to 
                control and profit from the commercial use of the name, 
                image, or likeness of the individual; and
                    (B) includes any right that is licensed under a 
                name, image, and likeness agreement.
            (20) Student athlete.--The term ``student athlete'' means 
        any individual enrolled at an institution who participates as a 
        team member or competitor in varsity intercollegiate sports 
        competition sponsored by the institution.
            (21) Third party.--The term ``third party'' means an 
        individual or entity that is not--
                    (A) an institution;
                    (B) an athletic department;
                    (C) an organization or a foundation that provides 
                financial support to an institution or athletic 
                department;
                    (D) a conference;
                    (E) an athletic association;
                    (F) a certified agent; or
                    (G) an employee of any such individual or entity.
            (22) Varsity intercollegiate athletic program.--The term 
        ``varsity intercollegiate athletic program'' means a sport 
        played at the intercollegiate level, administered by an 
        athletic department, for which eligibility requirements for 
        participation by student athletes are established by an 
        athletic association.
            (23) Varsity intercollegiate sports competition.--The term 
        ``varsity intercollegiate sports competition'' means a 
        competition involving 2 or more varsity intercollegiate 
        athletic programs sponsored by different institutions.

SEC. 3. STUDENT ATHLETE NAME, IMAGE, AND LIKENESS RIGHTS AND 
              PROTECTIONS.

    (a) In General.--Except as provided in section 4, an athletic 
association, a conference, or an institution, or any representative of 
such an entity, shall permit a student athlete or a group of student 
athletes--
            (1) to market, or to earn covered compensation for the 
        value of, their name, image, or likeness; and
            (2) to obtain or retain a certified agent for any matter or 
        activity relating to such covered compensation.
    (b) Consent and Compensation for Group Use.--
            (1) In general.--Subject to paragraph (2), a third party 
        may not use the name, image, or likeness of any group described 
        in subsection (a) to sell or promote any product or service 
        unless the third party obtains the written consent from each 
        member of the group for that purpose.
            (2) Certain third party agreements with institutions, 
        conferences, and athletic associations.--
                    (A) In general.--Paragraph (1) shall not apply to a 
                third party that enters into an agreement with an 
                institution, a conference, or an athletic association 
                to produce or distribute live, archival, or delayed 
                audiocast or videocast of a varsity intercollegiate 
                sports competition of the institution, including--
                            (i) a commercial that promotes such a 
                        competition; and
                            (ii) audio or video distributions of such a 
                        competition.
                    (B) Rule of construction.--Nothing in this 
                paragraph may be construed to require an institution, a 
                conference, or an athletic associations to provide 
                compensation or payment to any student athlete for 
                appearing in an audiocast or videocast of a varsity 
                intercollegiate sports competition of an institution.
    (c) Rescission of Agreements.--In the case of a student athlete who 
no longer participates in a varsity intercollegiate athletic program, 
the student athlete may rescind a name, image, and likeness agreement 
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) Educational Resources.--The Commission shall make available on 
a publicly accessible internet website of the Commission educational 
resources for student athletes with respect to financial and contract 
literacy and earning covered compensation for the commercial use of the 
name, image, or likeness of the student athlete, which shall--
            (1) generally describe the legal and business concepts to 
        be considered in licensing publicity rights; and
            (2) include information concerning the implications of 
        contract provisions that may restrict a student athlete's 
        choice of institutions or bind the student athlete to long-term 
        arrangements.

SEC. 4. PROHIBITIONS ON CERTAIN ACTIVITIES OF INSTITUTIONS, BOOSTERS, 
              AND THIRD PARTIES.

    (a) Restrictions on Earning Covered Compensation.--Except as 
provided in a rule established in accordance with section 8, an 
athletic association, a conference, or an institution may not--
            (1) adopt or maintain a contract, rule, regulation, 
        standard, or other requirement that prevents or unduly 
        restricts a student athlete from earning covered compensation 
        for the use of the name, image, or likeness of the student 
        athlete;
            (2) impose a speech restriction for student athletes that 
        is more stringent than any speech restriction imposed on other 
        students at the same institution;
            (3) limit athletic opportunities for a student athlete 
        solely on the basis of the student athlete's commercial use of 
        his or her name, image, or likeness; or
            (4) coordinate or cooperate with any other institution, 
        conference, or athletic association to limit payment offered to 
        a student athlete under a name, image, and likeness agreement.
    (b) Classification of Student Athletes.--Notwithstanding any other 
provision of Federal or State law, a student athlete shall not be 
considered an employee of an athletic association, a conference, or an 
institution with respect to the participation of the student athlete in 
a varsity intercollegiate sports competition.
    (c) Scholarships.--An institution, a conference, or an athletic 
association may not revoke, reduce, or impose a condition on an 
athletic scholarship of a student athlete based on the student athlete 
having earned covered compensation or having obtained a certified agent 
in accordance with this Act.
    (d) Preventing Conflicts of Interest.--An institution, an athletic 
association, a conference, or a business partner of such an entity may 
not--
            (1) represent a student athlete or prospective student 
        athlete in a name, image, and likeness agreement;
            (2) arrange a name, image, and likeness agreement on behalf 
        of a student athlete or prospective student athlete;
            (3) enter into a name, image, and likeness agreement with a 
        student athlete or prospective student athlete;
            (4) regulate the representation of a student athlete or a 
        group of student athletes or a prospective student athlete or 
        group of prospective student athletes with respect to a name, 
        image, and likeness agreement; or
            (5) engage in the certification or promotion of individuals 
        for such representation.
    (e) Certified Agent Restriction.--
            (1) In general.--A certified agent may not represent a 
        prospective student athlete in a name, image, and likeness 
        agreement if the prospective student athlete plans to enroll in 
        an institution and participate in a varsity intercollegiate 
        sports competition for such institution.
            (2) Exclusion.--For purposes of this subsection, a family 
        member of a prospective student athlete shall not be considered 
        to be a certified agent with respect to representation of the 
        prospective student athlete.
    (f) Conflicts With Contracts or Rules of Institution.--
            (1) In general.--Except as provided in paragraph (2), a 
        third party may not enter into, or offer to enter into, a name, 
        image, and likeness agreement with a student athlete that 
        provides covered compensation if a provision of the name, 
        image, and likeness agreement conflicts with a provision of a 
        contract, rule, regulation, standard, or other requirement of 
        the applicable institution.
            (2) Exception.--A third party may enter into, or offer to 
        enter into, a name, image, and likeness agreement with a 
        student athlete that conflicts with a provision of a contract, 
        rule, regulation, standard, or other requirement of the 
        applicable institution if--
                    (A) the institution consents, in writing, to the 
                name, image, and likeness agreement; or
                    (B) the contract, rule, regulation, standard, or 
                other requirement unduly restricts student athletes 
                from earning covered compensation for the use of the 
                name, image, or likeness of the student athlete, as 
                determined by the Commission.
            (3) Disclosures.--
                    (A) Conflicts.--An institution asserting a conflict 
                described in paragraph (1) shall disclose to the 
                certified agent and the Commission each relevant term 
                of the contract, rule, regulation, standard, or other 
                requirement of the varsity intercollegiate athletic 
                program.
                    (B) Restrictions.--A certified agent asserting a 
                restriction described in paragraph (2)(B) shall 
                disclose to the Commission the nature of such 
                restriction.
    (g) Agent Activities.--An individual may not carry out any agent 
activity or representation of a student athlete with respect to a 
student athlete name, image, and likeness agreement unless the 
individual is a certified agent.
    (h) Prohibited Agreements.--An athletic association, a conference, 
or an institution may prohibit a student athlete from entering into a 
name, image, and likeness agreement with a third party for the 
promotion of gambling, tobacco, or alcohol products, or adult 
entertainment.

SEC. 5. TRANSPARENCY AND ACCOUNTABILITY RELATING TO NAME, IMAGE, AND 
              LIKENESS AGREEMENTS AND STUDENT ATHLETE ENDORSEMENTS.

    (a) Receipt of Covered Compensation.-- Not later than 5 days after 
the date on which a student athlete receives covered compensation under 
a name, image, and likeness agreement, the certified agent representing 
the student athlete shall report to the institution--
            (1) the receipt and amount of such covered compensation; 
        and
            (2) the terms and conditions of the name, image, and 
        likeness agreement, including the name of each party to the 
        agreement.
    (b) Written Consent Required.--An institution may not publicly 
disclose any information with respect to a name, image, and likeness 
agreement between a student athlete and a third party without the 
express written consent of the student athlete.

SEC. 6. LIMITATION ON TRANSFER PENALTIES; PROHIBITION ON INDUCEMENTS.

    (a) Limitation on Transfer Penalties.--An institution, an athletic 
association, or a conference shall allow a student athlete to transfer 
from one institution to another not less than once without losing or 
delaying grant-in-aid opportunities or eligibility to participate in a 
varsity intercollegiate sports competition if--
            (1) not less than 7 days before transferring, the student 
        athlete provides to his or her institution notice of intent to 
        transfer; and
            (2) the transfer does not occur during--
                    (A) the season of the varsity intercollegiate 
                sports competition of the student athlete; or
                    (B) the 60-day period before the commencement of 
                such season.
    (b) Prohibition on Inducements.--
            (1) In general.--An institution, an athletic association, a 
        conference, a booster, a third party, or any agent of such an 
        entity, may not offer or provide--
                    (A) a student athlete with any compensation or 
                benefit (other than grant-in-aid) that is--
                            (i) conditioned on the student athlete 
                        enrolling in, maintaining enrollment in, or 
                        transferring to a particular institution; or
                            (ii) intended to induce the student athlete 
                        to enroll in, maintain enrollment in, or 
                        transfer to a particular institution; or
                    (B) a prospective student athlete with any 
                compensation or benefit (other than grant-in-aid) that 
                is--
                            (i) conditioned on the prospective student 
                        athlete enrolling in a particular institution; 
                        or
                            (ii) intended to induce the prospective 
                        student athlete to enroll in a particular 
                        institution.
            (2) Campus tours.--Notwithstanding paragraph (1), an 
        institution, an athletic association, or a conference may 
        provide to a student athlete or a prospective student athlete 
        reimbursement for expenses relating to campus tours or visits.

SEC. 7. ENFORCEMENT BY THE COMMISSION.

    (a) Office of Sport.--
            (1) Establishment.--Not later than 30 days after the date 
        of the enactment of this Act, the Chair shall--
                    (A) establish within the Commission the ``Office of 
                Sport'' (in this section referred to as the 
                ``Office''); and
                    (B) appoint a Director of the Office (in this 
                section referred to as the ``Director'').
            (2) Purpose.--The purpose of the Office is to assist the 
        Commission in protecting amateur, collegiate, and professional 
        athletes from unfair methods of competition and unfair or 
        deceptive acts or practices in or affecting commerce under the 
        Federal Trade Commission Act (15 U.S.C. 41 et seq.).
    (b) Duties.--
            (1) In general.--The Director shall engage in activities 
        that include--
                    (A) leading and coordinating the Commission's work 
                in furtherance of the purpose described in subsection 
                (a)(2);
                    (B) coordinating and consulting with the Bureau of 
                Consumer Protection of the Commission and the Bureau of 
                Competition of the Commission;
                    (C) developing guidance and recommendations; and
                    (D) organizing public workshops, issuing reports, 
                and providing educational materials.
            (2) Oversight of name, image, and likeness rights and 
        protections.--With respect to the implementation of this Act, 
        the duties of the Office are as follows:
                    (A) To establish a process for hearing, addressing, 
                and resolving complaints, concerns, conflicts, and 
                grievances from student athletes, institutions, 
                conferences, athletic associations, certified agents, 
                and third parties alleging violations of this Act or 
                any rule or standard developed under this Act.
                    (B) To establish a certification process and set 
                and enforce standards for, and maintain a registry of, 
                certified agents.
                    (C) To determine the financial limits for boosters, 
                as described in clauses (i) and (ii) of section 
                2(4)(A).
                    (D) On an ongoing basis and as necessary, to gather 
                and compile information relating to the development and 
                status of the student athlete name, image, and likeness 
                market.
                    (E) To provide confidential guidance to student 
                athletes.
                    (F) To develop rules to carry out the activities 
                described in this paragraph.
    (c) Enforcement Authority.--
            (1) In general.--A violation of this Act or any rule or 
        standard developed pursuant to subsection (b)(2) 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)).
            (2) Powers of the federal trade commission.--The Commission 
        shall enforce this Act and any rule or standard developed 
        pursuant to subsection (b)(2) 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.
            (3) Nonprofit organizations.--Notwithstanding section 4 of 
        the Federal Trade Commission Act (15 U.S.C. 44) or any 
        jurisdictional limitation of the Commission, the Commission 
        shall also enforce this Act and any rule or standard developed 
        pursuant to subsection (b)(2) in the same manner provided in 
        paragraph (1), with respect to organizations not organized to 
        carry on business for their own profit or that of their 
        members.
            (4) Penalties; privileges and immunities.--Any person who 
        violates this Act or any rule or standard developed pursuant to 
        subsection (b)(2) shall be subject to the penalties and 
        entitled to the privileges and immunities provided in the 
        Federal Trade Commission Act (15 U.S.C. 41 et seq.).

SEC. 8. ROLE OF ATHLETIC ASSOCIATIONS AND CONFERENCES.

    Athletic associations and conferences may--
            (1) establish rules, consistent with this Act and any rule 
        or standard developed under this Act;
            (2) establish rules that prohibit payments of compensation 
        to prospective student athletes and student athletes by 
        institutions, conferences, and athletic associations; and
            (3) enforce the rules established under paragraphs (1) and 
        (2) by declaring ineligible for a varsity intercollegiate 
        sports competition a student athlete or a prospective student 
        athlete who receives payments in violation of this Act or any 
        rule or standard developed under this Act.

SEC. 9. COMPTROLLER GENERAL REPORT ON HEALTH, SAFETY, AND EDUCATION 
              NEEDS.

    (a) In General.--Not later than 2 years after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the appropriate committees of Congress a report on the 
health, safety, and education needs of student athletes.
    (b) Contents of Report.--The report required by subsection (a) 
shall include the following:
            (1) An analysis of the current state of student athlete 
        health insurance coverage in the United States, including a 
        comparison of amounts and types of coverage offered by 
        institutions of varying sizes and resources.
            (2) An analysis of the degree to which student athletes are 
        not covered for injuries or conditions related to their 
        participation in athletics.
            (3) An analysis of the additional cost to institutions of 
        providing health insurance coverage to student athletes for 
        each year, up to 5 years, after graduation.
            (4) An analysis of the need for health and safety standards 
        for varsity intercollegiate athletic programs.
            (5) An analysis of the current authorities and activities 
        of the Department of Health and Human Services to determine 
        whether the Department of Health and Human Services possesses 
        the appropriate authority or expertise to develop and enforce 
        such health and safety standards.
            (6) An analysis of the extent to which student athletes are 
        unable to complete their degree due to losing scholarship 
        support before graduation within 4 years.
            (7) An analysis of the additional cost to institutions of 
        providing guaranteed scholarships for student athletes for each 
        additional year, up to 5 years, after a typical 4-year 
        enrollment.

SEC. 10. LIMITATION OF LIABILITY.

    (a) In General.--An institution, a conference, and an athletic 
association shall comply with the requirements of this Act and with any 
rule or standard developed under this Act, but shall not be held liable 
under any provision of Federal or State law for prohibiting a student 
athlete or prospective student athlete from being paid by an 
institution, conference, or athletic association or for prohibiting a 
student athlete or prospective student athlete from being paid for the 
commercial use of the name, image, or likeness of the student athlete 
or prospective student athlete before the date of the enactment of this 
Act.
    (b) Rule of Construction.--Except as provided in subsection (a), 
nothing in this Act or the fact or circumstances of the enactment of 
this Act may be construed to or relied upon by any court--
            (1) to alter the application of Federal or State antitrust 
        law to intercollegiate athletics;
            (2) to imply the creation of any cause of action not 
        created expressly by this Act; or
            (3) to retroactively create liability, or invalidate legal 
        defenses, related to aspects of intercollegiate athletics not 
        directly addressed by this Act.

SEC. 11. RELATIONSHIP TO STATE LAWS.

    (a) In General.--No State or political subdivision of a State may 
establish or continue in effect any law, regulation, rule, requirement, 
or standard that governs or regulates the compensation, publicity 
rights, employment status, or eligibility for competition of a student 
athlete or prospective student athlete, including any provision that 
governs or regulates the commercial use of the name, image, or likeness 
of a student athlete or prospective student athlete;
    (b) Unauthorized Use by a Third Party.--A State or political 
subdivision of a State may establish and enforce laws that prohibit the 
unauthorized use of the name, image, and likeness of a student athlete 
or prospective student athlete by a third party.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Commission such sums 
as are necessary to carry out this Act.
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