Amateur Athletes Protection and Compensation Act of 2021

II 117TH CONGRESS 1ST SESSION S. 414 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. IN THE SENATE OF THE UNITED STATES FEBRUARY 24, 2021 Mr. MORAN introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To provide standards relating to compensation for the use of the names, images, and likenesses of amateur inter- collegiate athletes and to provide protections for amateur intercollegiate athletes, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Amateur Athletes Pro- 4 tection and Compensation Act of 2021’’. 5 SEC. 2. DEFINITIONS. 6 In this Act: 7 VerDate Sep 11 2014 23:54 Mar 17, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S414.IS S414 kjohnson on DSK79L0C42PROD with BILLS 2 •S 414 IS (1) AGENCY CONTRACT.—The term ‘‘agency 1 contract’’ means a written agreement in which an 2 amateur intercollegiate athlete authorizes an ama- 3 teur athlete representative to act on behalf of the 4 amateur intercollegiate athlete. 5 (2) AIAC.—The term ‘‘AIAC’’ means the Ama- 6 teur Intercollegiate Athletics Corporation established 7 by section 8(a). 8 (3) AMATEUR ATHLETE REPRESENTATIVE.— 9 (A) IN GENERAL.—The term ‘‘amateur 10 athlete representative’’ means an individual 11 who— 12 (i) enters into an agency contract with 13 an amateur intercollegiate athlete; or 14 (ii) directly or indirectly recruits or 15 solicits an amateur intercollegiate athlete 16 for the purpose of— 17 (I) entering into an agency con- 18 tract with the amateur intercollegiate 19 athlete; 20 (II) representing or attempting 21 to represent the amateur intercolle- 22 giate athlete for the purpose of mar- 23 keting his or her athletics ability or 24 reputation for financial gain; or 25 VerDate Sep 11 2014 23:54 Mar 17, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S414.IS S414 kjohnson on DSK79L0C42PROD with BILLS 3 •S 414 IS (III) seeking to obtain any type 1 of financial gain or benefit from the 2 potential earnings of the amateur 3 intercollegiate athlete as a profes- 4 sional athlete. 5 (B) INCLUSIONS.—The term ‘‘amateur 6 athlete representative’’ includes— 7 (i) a certified contract advisor; 8 (ii) a financial advisor; 9 (iii) a marketing representative; 10 (iv) a brand manager; and 11 (v) any individual employed by or as- 12 sociated with an individual described in 13 any of clauses (i) through (iv). 14 (C) EXCLUSIONS.—The term ‘‘amateur 15 athlete representative’’ does not include— 16 (i) the spouse, a parent, a sibling, a 17 grandparent, or a legal guardian of an 18 amateur intercollegiate athlete; or 19 (ii) an individual acting solely on be- 20 half of a professional sports team or a pro- 21 fessional sports organization. 22 (4) AMATEUR INTERCOLLEGIATE ATHLETE.— 23 The term ‘‘amateur intercollegiate athlete’’ means 24 an athlete who is or may be recruited to attend, or 25 VerDate Sep 11 2014 23:54 Mar 17, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S414.IS S414 kjohnson on DSK79L0C42PROD with BILLS 4 •S 414 IS is enrolled in, a 4-year degree-granting institution of 1 higher education. 2 (5) AMATEUR INTERCOLLEGIATE ATHLETIC 3 EVENT.— 4 (A) IN GENERAL.—The term ‘‘amateur 5 intercollegiate athletic event’’ means a game, 6 meet, competition, banquet, practice, condi- 7 tioning session, media session, or any other 8 event that has been organized or authorized by 9 an athletics representative of an institution of 10 higher education or by a national amateur ath- 11 letic association, regardless of whether such 12 event occurs on or off the campus of an institu- 13 tion of higher education or during or outside 14 the season for competition. 15 (B) INCLUSION.—The term ‘‘amateur 16 intercollegiate athletic event’’ includes travel to 17 and from any event described in subparagraph 18 (A). 19 (6) AMATEUR INTERCOLLEGIATE ATHLETIC 20 COMPETITION.—The term ‘‘amateur intercollegiate 21 athletic competition’’ means any varsity game, meet, 22 or other competition between or among teams spon- 23 sored by institutions of higher education. 24 VerDate Sep 11 2014 23:54 Mar 17, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S414.IS S414 kjohnson on DSK79L0C42PROD with BILLS 5 •S 414 IS (7) ATHLETICS BOOSTER.—The term ‘‘athletics 1 booster’’ means any individual or entity that, di- 2 rectly or indirectly, through any other individual or 3 entity or in any other manner— 4 (A) has provided 1 or more donations ex- 5 ceeding $5,000, in the aggregate, to obtain sea- 6 son tickets for any sport at an institution of 7 higher education; 8 (B) has made 1 or more financial contribu- 9 tions exceeding $5,000, in the aggregate, to the 10 athletics department or other athletics manage- 11 ment organization of an institution of higher 12 education; or 13 (C) has assisted, or been requested by an 14 employee of an institution of higher educations 15 to assist, in the recruitment of an amateur 16 intercollegiate athlete. 17 (8) CONFERENCE.—The term ‘‘conference’’ 18 means any organization or association that— 19 (A) has as members 2 or more institutions 20 of higher education; 21 (B) arranges championships and sets rules 22 for amateur intercollegiate athletic competition. 23 (9) COST OF ATTENDANCE.—The term ‘‘cost of 24 attendance’’— 25 VerDate Sep 11 2014 23:54 Mar 17, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S414.IS S414 kjohnson on DSK79L0C42PROD with BILLS 6 •S 414 IS (A) has the meaning given the term in sec- 1 tion 472 of the Higher Education Act of 1965 2 (20 U.S.C. 1087ll); and 3 (B) shall be calculated by the financial aid 4 office of an institution of higher education ap- 5 plying the same standards, policies, and proce- 6 dures for all students. 7 (10) COVERED COMPENSATION.— 8 (A) IN GENERAL.—The term ‘‘covered 9 compensation’’ means any remuneration, in 10 cash or in kind and regardless of the date on 11 which the remuneration is provided, to an ama- 12 teur intercollegiate athlete. 13 (B) EXCLUSION.—The term ‘‘covered com- 14 pensation’’ does not include the payment or 15 provision of any of the following— 16 (i) grants-in-aid; 17 (ii) Federal Pell Grants and other 18 State or Federal grants unrelated and not 19 awarded with regard to participation in 20 amateur intercollegiate athletic events; 21 (iii) health insurance and costs of 22 health care, including health insurance and 23 health care costs wholly or partly self-fund- 24 VerDate Sep 11 2014 23:54 Mar 17, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S414.IS S414 kjohnson on DSK79L0C42PROD with BILLS 7 •S 414 IS ed by an institution of higher education or 1 a national amateur athletic association; 2 (iv) disability and loss of value insur- 3 ance, including disability and loss of value 4 insurance that is wholly or partly self- 5 funded by an institution of higher edu- 6 cation or a national amateur athletic asso- 7 ciation; 8 (v) career counseling, job placement 9 services, and other guidance available to all 10 students at an institution of higher edu- 11 cation; and 12 (vi) payment of hourly wages and ben- 13 efits for work actually performed (and not 14 for participation in amateur intercollegiate 15 athletic event) at a rate commensurate 16 with the going rate in the locality of an in- 17 stitution of higher education for similar 18 work. 19 (11) ENDORSEMENT CONTRACT.—The term 20 ‘‘endorsement contract’’ has the meaning given the 21 term in section 2 of the Sports Agent Responsibility 22 and Trust Act (15 U.S.C. 7801). 23 (12) FORMER AMATEUR INTERCOLLEGIATE 24 ATHLETE.—The term ‘‘former intercollegiate ath- 25 VerDate Sep 11 2014 23:54 Mar 17, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S414.IS S414 kjohnson on DSK79L0C42PROD with BILLS 8 •S 414 IS lete’’ means an amateur intercollegiate athlete who 1 is no longer eligible to participate in amateur inter- 2 collegiate athletic competition. 3 (13) GRANT-IN-AID.—The term ‘‘grant-in- 4 aid’’— 5 (A) means a scholarship, grant, stipend, or 6 other form of financial assistance, including the 7 provision of tuition, room, board, books, or 8 funds for fees or personal expenses, that— 9 (i) is paid or provided by an institu- 10 tion of higher education to a student for 11 the student’s undergraduate or graduate 12 course of study; and 13 (ii) is in an amount that does not ex- 14 ceed the cost of attendance for such stu- 15 dent at the institution; and 16 (B) does not include covered compensation 17 paid to an individual who is an amateur inter- 18 collegiate athlete or a former amateur inter- 19 collegiate athlete. 20 (14) IMAGE.—The term ‘‘image’’, with respect 21 to an amateur intercollegiate athlete, means a photo- 22 graph, video, or computer-generated representation 23 that identifies, is linked to, or is reasonably linkable 24 to the athlete. 25 VerDate Sep 11 2014 23:54 Mar 17, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S414.IS S414 kjohnson on DSK79L0C42PROD with BILLS 9 •S 414 IS (15) INSTITUTION OF HIGHER EDUCATION.— 1 The term ‘‘institution of higher education’’ has the 2 meaning given the term under section 101 of the 3 Higher Education Act of 1965 (20 U.S.C. 1001). 4 (16) LIKENESS.—The term ‘‘likeness’’ means— 5 (A) with respect to an amateur intercolle- 6 giate athlete of a sport for which the athlete 7 has a jersey number, the jersey number associ- 8 ated with the athlete and the sport in which the 9 athlete participates at a particular institution of 10 higher education during the period of the par- 11 ticipation of the athlete in the sport at the in- 12 stitution of higher education, if the jersey num- 13 ber is accompanied by— 14 (i) a logo or color scheme that is 15 clearly associated with the institution of 16 higher education; or 17 (ii) some other means by which the 18 jersey number is clearly associated with 19 the particular athlete; and 20 (B) with respect to any amateur intercolle- 21 giate athlete— 22 (i) the uniquely identifiable voice or 23 catch phrase of the athlete; or 24 VerDate Sep 11 2014 23:54 Mar 17, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S414.IS S414 kjohnson on DSK79L0C42PROD with BILLS 10 •S 414 IS (ii) any other trademark that identi- 1 fies or distinguishes the athlete. 2 (17) NAME.—The term ‘‘name’’, with respect to 3 an amateur intercollegiate athlete, means— 4 (A) a combination of a first and last or 5 family name that identifies the athlete; 6 (B) a last or family name that identifies 7 the athlete; or 8 (C) a unique nickname that identifies the 9 athlete. 10 (18) NATIONAL AMATEUR ATHLETIC ASSOCIA- 11 TION.— 12 (A) IN GENERAL.—The term ‘‘national 13 amateur athletic association’’ means a not-for- 14 profit corporation, an association, or any other 15 group organized in the United States that— 16 (i) sponsors or arranges amateur 17 intercollegiate athletic competition between 18 institutions of higher education; and 19 (ii) sets common rules, standards, 20 procedures, or guidelines for the adminis- 21 tration of amateur intercollegiate athletic 22 competition at institutions of higher edu- 23 cation. 24 VerDate Sep 11 2014 23:54 Mar 17, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S414.IS S414 kjohnson on DSK79L0C42PROD with BILLS 11 •S 414 IS (B) INCLUSIONS.—The term ‘‘national 1 amateur athletic association’’ includes— 2 (i) the National Collegiate Athletic 3 Association; and 4 (ii) each division and member con- 5 ference of the National Collegiate Athletic 6 Association, or of any other national ama- 7 teur athletic association, separately and 8 collectively. 9 (19) THIRD PARTY.—The term ‘‘third party’’ 10 means an individual or entity that— 11 (A) is not an athletics department or an 12 athletics booster of an institution of higher edu- 13 cation; and 14 (B) is unaffiliated with an athletics depart- 15 ment or an athletics booster of an institution of 16 higher education. 17 (20) UNAFFILIATED.—With respect to 2 or 18 more individuals or entities, the term ‘‘unaffiliated’’ 19 means that the individuals or entities do not share 20 interrelated operations, common management, cen- 21 tralized control of labor relations, or common owner- 22 ship or financial control. 23 VerDate Sep 11 2014 23:54 Mar 17, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S414.IS S414 kjohnson on DSK79L0C42PROD with BILLS 12 •S 414 IS SEC. 3. COVERED COMPENSATION PROVIDED BY UNAFFILI- 1 ATED THIRD PARTIES. 2 The provision of covered compensation to an amateur 3 intercollegiate athlete who is enrolled, or may in the future 4 enroll, in an institution of higher education— 5 (1) may only be promised, paid, and permitted 6 if the covered compensation is sourced from, and 7 provided at the discretion of, a third party; and 8 (2) shall not be promised, paid, or permitted to 9 induce— 10 (A) the recruitment of an amateur inter- 11 collegiate athlete to any institution of higher 12 education or a group of institutions of higher 13 education; or 14 (B) an amateur intercollegiate athlete to 15 continue attending a particular institution of 16 higher education. 17 SEC. 4. PROTECTIONS FOR AMATEUR INTERCOLLEGIATE 18 ATHLETES. 19 (a) REPRESENTATION CONTRACTS.—A national 20 amateur athletic association or an institution of higher 21 education may not punish or prohibit the participation of 22 an amateur intercollegiate athlete in an amateur inter- 23 collegiate athletic event or amateur intercollegiate athletic 24 competition based on the amateur intercollegiate athlete 25 having entered into an agency contract with an amateur 26 VerDate Sep 11 2014 23:54 Mar 17, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S414.IS S414 kjohnson on DSK79L0C42PROD with BILLS 13 •S 414 IS athlete representative who has been certified by the AIAC 1 in accordance with section 8(b)(4). 2 (b) ENDORSEMENT CONTRACTS.— 3 (1) IN GENERAL.—Except as provided in para- 4 graph (2), a national amateur athletic association or 5 an institution of higher education may not punish or 6 prohibit the participation of an amateur intercolle- 7 giate athlete in an intercollegiate athletic event or 8 amateur intercollegiate athletic competition based on 9 the amateur intercollegiate athlete having entered 10 into an endorsement contract with a third party. 11 (2) EXCEPTIONS.—A national amateur athletic 12 association or an insti [Text truncated for display. 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