Student Athlete Level Playing Field Act
Bill: H.R.2841 | Sponsor: Rep. Gonzalez, Anthony (R-OH)
Policy area: Education

Summary:
Student Athlete Level Playing Field Act
This bill generally prohibits an institution of higher education or a covered athletic organization (e.g., an athletic association, a conference, or an organization with authority over intercollegiate athletics) from restricting the ability of a student athlete to enter into an endorsement or agency contract, with exceptions. It also provides for enforcement by the Federal Trade Commission, preempts state laws relating to endorsement or agency contracts, and establishes the Covered Athletic Organization Commission.

To prohibit a covered athletic association and institution of higher 
  education from prohibiting a student athlete from participating in 
 intercollegiate athletics because such student athlete enters into an 
             endorsement contract, 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 ``Student Athlete Level Playing Field 
Act''.

SEC. 2. CONTRACTS RELATING TO STUDENT ATHLETES AND COLLEGE AND 
              UNIVERSITY ATHLETIC PROGRAMS.

    (a) Prohibition.--Subject to the exceptions in subsection (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 endorsement 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 substance, 
        including marijuana.
            (4) Any adult entertainment business.
            (5) Any casino or entity whose primary business is 
        sponsoring or promotion of gambling activities.
    (c) Permissible Prohibitions.--A student athlete may be prohibited 
by the institution of higher education 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, companies, or 
        types of contracts described in paragraphs (1) through (5) of 
        such subsection.
            (2) From prohibitions by a covered athletic organization.--
        If a covered athletic organization prohibits a student athlete 
        from entering into a contract pursuant to subsection (b), any 
        institution of higher education that is a part of that covered 
        athletic organization may not enter into any sponsorship or 
        endorsement contract for itself with the same category or 
        categories of brands, companies, 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, powers, and duties as though all applicable terms and 
provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) 
were incorporated into and made part of this Act. Any person that 
violates this section 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.). 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 Covered Athletic 
Organization Commission (in this section referred to as the 
``Commission''), whose purpose shall be to--
            (1) make recommendations to Congress and to each covered 
        athletic organization about the implementation of name, image, 
        and likeness rules;
            (2) recommend to each covered athletic organization such a 
        process to certify or recognize credentialed athlete agents;
            (3) make recommendations for the establishment 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 categories 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 interest of student 
        athletes.
            (3) Administrators of covered athletic organizations.
            (4) Professionals with expertise in sports marketing, 
        contracting, and public relations.
            (5) Individuals--
                    (A) with expertise in corporate governance; and
                    (B) who are not associated with any covered 
                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 minority leader 
                of the House of Representatives.
                    (C) Three members appointed by the majority leader 
                of the Senate.
                    (D) Three members appointed by the minority leader 
                of the Senate.
                    (E) One member, who shall be the chair of the 
                Commission, selected by the members appointed under 
                subparagraphs (A) through (D) 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 
                members are unable to agree on an appointment under 
                this subparagraph within such 60 day period, the 
                Speaker of the House of Representatives 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 gender, 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 Commission 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 constituted, it 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 annual reports that include the 
recommendations in paragraphs (1) through (4) of subsection (a). The 
Commission shall also make such reports available to the public.
    (f) Sunset.--The Commission shall terminate 60 days after 
submitting the final report required under subsection (e).

SEC. 5. INSTITUTIONS OF HIGHER EDUCATION AND STUDENT ATHLETES WHO ENTER 
              INTO ENDORSEMENT 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 Responsibility and Trust Act (15 U.S.C. 7801)) or 
        an agency contract (as defined in section 9 of the Student 
        Athlete Level Playing Field Act), such institution will not--
                    ``(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 defined 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 Practices 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), respectively; 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 to the athletic program of an 
        institution of higher education or that promotes a team or 
        athletic program of an institution of higher education for such 
        individual's or organization's own substantial financial 
        interest.'';
            (2) by inserting after section 3 the following new section:

``SEC. 3A. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND PRACTICES IN 
              CONNECTION WITH CONTACT 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 Athlete 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 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 educational 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 action brought by 
the Commission pursuant to this Act, including the number of complaints 
filed with the Commission pursuant to this Act.''.

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 
Education 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 Employee.--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 respect to a covered athletic organization or institution of 
higher education.

SEC. 9. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) institutions of higher education and covered athletic 
        organizations should develop a course or program to assist 
        student athletes with understanding financial literacy with 
        respect to entering into an endorsement contract; and
            (2) the Federal Trade Commission should investigate each 
        claim filed pursuant to the Sports Agent Responsibility and 
        Trust Act (15 U.S.C. 7801 et seq.).

SEC. 10. DEFINITIONS.

    In this Act--
            (1) the term ``agency contract'' means an oral or written 
        agreement in which a student athlete authorizes a person to 
        negotiate or solicit an endorsement contract on behalf of the 
        student athlete;
            (2) the terms ``athlete agent'' and ``student athlete'' 
        shall have the same meaning given such terms in section 2 of 
        the Sports Agent Responsibility and Trust Act (15 U.S.C. 7801);
            (3) the term ``covered athletic organization'' means an 
        athletic association, conference, or other organization with 
        authority over intercollegiate athletics or that administers 
        intercollegiate athletics;
            (4) the term ``endorsement contract'' has the meaning given 
        such term in section 2 of the Sports Agent Responsibility and 
        Trust Act (15 U.S.C. 7801); and
            (5) the term ``institution of higher education'' has the 
        same meaning as that term under section 101 of the Higher 
        Education Act (20 U.S.C. 1001).
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