Student Athlete Level Playing Field Act

Bill: 118-hr-3630
Sponsor: full_name: Rep. Carey, Mike [R-OH-15]
Introduced: 2023-05-24
Policy area: Sports and Recreation
Subjects: Advisory bodies

Alternative dispute resolution, mediation, arbitration

Athletes

Congressional oversight

Consumer affairs

Contracts and agency

Federal preemption

Financial literacy

Government information and archives

Higher education

Licensing and registrations

Marketing and advertising

School administration

School athletics

Student aid and college costs
Latest action: action_date: 2023-05-26
text: Referred to the Subcommittee on Innovation, Data, and Commerce.

Summaries:
action_date: 2023-05-24
action_desc: Introduced in House
text: <p><b>Student Athlete Level Playing Field Act</b></p> <p>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 or otherwise receive consideration for the athlete's name, image, or likeness.</p> <p> It also provides for enforcement by the Federal Trade Commission (FTC), preempts state laws relating to endorsement or agency contracts, and establishes the Covered Athletic Organization Commission.</p> <p>The FTC must</p> <ul> <li> establish a clearinghouse for endorsement contracts entered into by student athletes and athlete agents; </li> <li> require each student athlete and athlete agent to disclose to the clearinghouse each endorsement contract entered into with a value of more than $500; and </li> <li>establish a program to register athlete agents who represent student athletes, require such athlete agents to register, and treat a violation of such requirement as a violation regarding unfair or deceptive acts or practices.</li> </ul> <p>The FTC may not charge a fee in relation to such registration.</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 3630 IN THE HOUSE OF REPRESENTATIVES May 24, 2023 Mr. Carey (for himself and Mr. Landsman ) introduced the following bill; which was referred to the Committee on Energy and Commerce , and in addition to the Committee on Education and the Workforce , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To prohibit certain entities from barring a student athlete from participating in intercollegiate athletics as a result of such student athlete entering into an endorsement contract, and for other purposes.

1. Short title; table of contents (a) Short title This Act may be cited as the Student Athlete Level Playing Field Act . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Ability of student athletes to enter agency and endorsement contracts. Sec. 3. Covered Athletic Organization Commission. Sec. 4. Institutions of higher education and student athletes who enter into endorsement contracts. Sec. 5. Prohibiting unfair or deceptive acts or practices against student athletes. Sec. 6. Registration of certain agents. Sec. 7. State preemption. Sec. 8. Rules of construction. Sec. 9. Sense of Congress. Sec. 10. Definitions. 2. Ability of student athletes to enter agency and endorsement contracts (a) In general A covered athletic organization or institution of higher education may not prohibit a student athlete from participating in intercollegiate athletics as a result of such student athlete entering into an agency contract or an endorsement contract, or otherwise receiving consideration for the name, image, or likeness of such student athlete. (b) Limitation on athletic departments An agreement under which consideration is provided to a student athlete for use of the name, image, or likeness of the student athlete, including such an agreement between an institution of higher education and a student athlete, may not be negotiated, drafted, or funded by the athletic department of the institution of higher education of the student athlete or an institutional employee who reports to such athletic department. (c) Insignia prohibitions A student athlete may be prohibited, by the institution of higher education of the student athlete, from wearing an item of clothing or gear with the insignia of an entity during an athletic competition or athletic-related event that is sponsored by the institution. (d) Enforcement by Federal Trade Commission (1) Unfair or deceptive acts or practices A violation of subsection (a) shall be treated as a 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. (2) Powers of Commission The Federal Trade Commission shall enforce subsection (a) 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. Any person who violates such subsection shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act. (3) Rule of construction Nothing in this section may be construed to limit the authority of the Federal Trade Commission under any other provision of law. 3. Covered Athletic Organization Commission (a) Establishment There is established the Covered Athletic Organization Commission (in this section referred to as the Commission ), the purpose of which shall be to make recommendations— (1) to Congress and covered athletic organizations, on the implementation of name, image, and likeness rules; (2) to covered athletic organizations, on a process for certifying or recognizing credentialed athlete agents; and (3) on the establishment of an independent dispute resolution process for disputes arising between a student athlete and a covered athletic organization or an institution of higher education. (b) Membership (1) In general The Commission shall consist of 13 members appointed from among the following: (A) Representatives of institutions of higher education, including athletic directors and coaches. (B) Individuals who are current or former student athletes and who advocate for the interests of student athletes. (C) Administrators of covered athletic organizations. (D) Professionals with expertise in sports marketing, contracting, and public relations. (E) Individuals— (i) with expertise in corporate governance; and (ii) who are not associated with a covered athletic organization or institution of higher education. (2) Student athlete advocates At least 2 individuals described in paragraph (1)(B) shall be appointed to the Commission. (c) Appointment (1) In general Not later than 60 days after the date of the enactment of this Act, 12 members of the Commission shall be appointed as follows: (A) 3 members appointed by the Speaker of the House of Representatives. (B) 3 members appointed by the minority leader of the House of Representatives. (C) 3 members appointed by the majority leader of the Senate. (D) 3 members appointed by the minority leader of the Senate. (2) Chair (A) Appointment Not later than 60 days after the appointment of the initial 12 members of the Commission under paragraph (1), 1 member shall be appointed to the Commission by such members, upon agreement of 8 such members on the individual to be appointed. (B) Result of inability to reach agreement If agreement on an individual to be appointed as a member of the Commission under subparagraph (A) is not reached during the time period described in that subparagraph, the Speaker of the House of Representatives shall make the appointment of such member. (C) Position as chair of the Commission The member appointed to the Commission under this paragraph shall be the chair of the Commission. (3) Diversity To the extent practicable, the individuals making appointments under paragraphs (1) and (2) shall coordinate their appointments to ensure that the Commission reflects diversity with respect to gender, race, and sport of association, as applicable, and shall prioritize the appointment of members unaffiliated with a division or conference of a covered athletic organization. (d) Meetings and quorum (1) Meeting at call of chair Meetings of the Commission shall be held at the call of the chair of the Commission. (2) Quorum A meeting of the Commission may only be held if there is a quorum of at least 7 members, including not fewer than 2 members who are individuals described in subsection (b)(1)(B). (e) Report Not later than 1 year after the Commission is constituted, and annually thereafter during the subsequent 2-year period, 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, and make available to the public, a report on the activities of the Commission that includes the recommendations made under subsection (a). (f) Sunset The Commission shall terminate on the date that is 60 days after the date on which the Commission submits the final report required under subsection (e). 4. 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 at the institution and who is entering into an endorsement contract (as defined in section 2 of the Sports Agent Responsibility and Trust Act ( 15 U.S.C. 7801 )) or an agency contract (as defined in section 10 of the Student Athlete Level Playing Field Act), such institution will not prohibit such student from entering into such 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 this Act). . 5. Prohibiting unfair or deceptive acts or practices against student athletes (a) Prohibiting unfair or deceptive acts or 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 an applicable student athlete) or an organization (including a sponsor) that provides substantial financial assistance or services to the athletic program of an educational institution or that promotes a team or athletic program of an educational institution for purposes of the substantial financial interest of the individual or organization. ; (2) by inserting after section 3 the following new section: 3A. Regulation of unfair or deceptive acts or 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 at a specific educational institution or group of such institutions, including that a booster may not orally or in writing enter into a contract or agreement with a prospective student athlete to provide the prospective student athlete with consideration for the use of the name, image, or likeness of the prospective student athlete until the prospective student athlete enrolls full time at the relevant institution. ; and (3) in section 5(a)(1), by inserting or by the engagement of a booster in a practice that violates section 3A of this Act after section 3 of this Act . (b) Eligibility To compete as a student athlete after entering into an agency contract (1) In general Section 3(b)(3) of the Sports Agent Responsibility and Trust Act ( 15 U.S.C. 7802(b)(3) ) is amended by striking boldface type stating: and all that follows through the end of the paragraph and inserting the following: boldface type stating: 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 you are agreeing to be represented by must notify the athletic director of the educational institution at which you are enrolled, or another individual responsible for the athletic programs at such educational institution, that you have entered into an agency contract. Such notification must be made within 72 hours after entering into the agreement or before the next athletic event in which you are eligible to participate, whichever occurs first. . . (2) Clearinghouse (A) Establishment Not later than 180 days after the date of the enactment of this Act, the Federal Trade Commission shall establish a clearinghouse for endorsement contracts entered into by student athletes and athlete agents who represent student athletes. (B) Agreement disclosure required (i) In general The Federal Trade Commission shall require each student athlete and each athlete agent who represents student athletes to disclose to the clearinghouse established under subparagraph (A) each endorsement contract entered into by such student athlete or such agent with a value of more than $500. (ii) Timing Disclosure of a contract under clause (i) shall be made not later than 72 hours after agreement on the contract. (C) Notification of institutions The Clearinghouse established under subparagraph (A) shall notify the relevant institution of higher education about each contract disclosed under this paragraph and shall make such disclosures available to the public on a regular basis. (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. ), as amended by this Act, is further amended by inserting after section 6 the following new section: 6A. Report to Congress Not later than 180 days after the date of the 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 investigations or enforcement actions brought by the Commission pursuant to this Act during the preceding 1-year period, including the number of complaints filed with the Commission pursuant to this Act during such period. . 6. Registration of certain agents (a) Program Not later than 180 days after the date of the enactment of this Act, the Federal Trade Commission shall establish a program to register athlete agents for student athletes. (b) Registration required Upon establishment of the program required under subsection (a), a person who enters into an agency contract with a student athlete shall register with the Federal Trade Commission as an athlete agent for student athletes. (c) No cost for registration The Federal Trade Commission may not charge a fee in relation to a registration under this section. (d) Enforcement by Federal Trade Commission (1) Unfair or deceptive acts or practices A violation of subsection (b) shall be treated as a 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. (2) Powers of Commission The Federal Trade Commission shall enforce subsection (b) 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. Any person who violates such subsection shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act. (3) Rule of construction Nothing in this section may be construed to limit the authority of the Federal Trade Commission under any other provision of law. 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 an amendment made by this Act. 8. Rules of construction (a) Tax Nothing in this Act, or the amendments made by this Act, may be construed to affect the treatment of qualified scholarships under section 117 of the Internal Revenue Code of 1986. (b) Nondiscrimination 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 Nothing in this Act, or the amendments made by this Act, may be construed to provide a cause of action pursuant to the Sherman Act ( 15 U.S.C. 1 et seq. ). (d) Employee status Nothing in this Act, or the amendments made by this Act, may be construed to affect the employment status of a student athlete who enters into an endorsement contract with respect to a covered athletic organization or an institution of higher education. 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 financial literacy with respect to entering into endorsement contracts; 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. ). 10. Definitions In this Act: (1) Agency contract The term agency contract means an oral or written agreement under which a student athlete authorizes a person to negotiate or solicit an endorsement contract on behalf of the student athlete. (2) Athlete agent The term athlete agent has the meaning given that term in section 2 of the Sports Agent Responsibility and Trust Act ( 15 U.S.C. 7801 ). (3) Covered athletic organization The term covered athletic organization means an athletic association, conference, or other organization with authority over intercollegiate athletics or that administers intercollegiate athletics. (4) Endorsement contract 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 ). (5) Institution of higher education The term institution of higher education has the meaning given that term in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 ). (6) Student athlete The term student athlete has the meaning given that term in section 2 of the Sports Agent Responsibility and Trust Act ( 15 U.S.C. 7801 ).