SCORE Act

I 117TH CONGRESS 1ST SESSION H. R. 2610 To amend the Higher Education Act of 1965 to require institutions of higher education to report revenue generated by each sports team, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 16, 2021 Mr. PRICE of North Carolina introduced the following bill; which was referred to the Committee on Education and Labor A BILL To amend the Higher Education Act of 1965 to require institutions of higher education to report revenue gen- erated by each sports team, 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 ‘‘Standardization of Col- 4 legiate Oversight of Revenues and Expenditures Act’’ or 5 the ‘‘SCORE Act’’. 6 VerDate Sep 11 2014 23:45 Jun 01, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2610.IH H2610 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2610 IH SEC. 2. REPORTING BY INSTITUTIONS OF HIGHER EDU- 1 CATION ON ATHLETIC REVENUE AND EX- 2 PENSES. 3 Section 485(g) of the Higher Education Act of 1965 4 (20 U.S.C. 1092(g)) is amended— 5 (1) in paragraph (1), by adding at the end the 6 following: 7 ‘‘(K) In the case of an institution that is 8 a member of division I of the National Colle- 9 giate Athletic Association, the amount of rev- 10 enue generated by each of the following cat- 11 egories, disaggregated by each sports team, if 12 applicable: 13 ‘‘(i) Ticket sales. 14 ‘‘(ii) Student fees. 15 ‘‘(iii) Distributions from any other 16 intercollegiate athletic association, con- 17 ference, or tournament. 18 ‘‘(iv) Appearance guarantees and op- 19 tions. 20 ‘‘(v) Contributions from alumni and 21 others. 22 ‘‘(vi) Compensation and benefits pro- 23 vided by third-party support. 24 ‘‘(vii) Concessions, programs, nov- 25 elties, and parking. 26 VerDate Sep 11 2014 23:45 Jun 01, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2610.IH H2610 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2610 IH ‘‘(viii) Broadcast and media rights, 1 reported separately for television, radio, 2 Internet, and print. 3 ‘‘(ix) Royalties, advertising, and spon- 4 sorship. 5 ‘‘(x) Sports camps. 6 ‘‘(xi) Endowment and investment in- 7 come, reported separately for each source 8 of such income. 9 ‘‘(xii) Direct institutional support. 10 ‘‘(xiii) Indirect institutional support 11 for facilities, services, and administrative 12 support. 13 ‘‘(xiv) Direct government support, re- 14 ported separately by State government, 15 local government, Federal Government. 16 ‘‘(L) In the case of an institution that is 17 a member of division I of the National Colle- 18 giate Athletic Association, the expenses attrib- 19 utable to each of the following categories, 20 disaggregated by each sports team, as applica- 21 ble: 22 ‘‘(i) Grants-in-aid. 23 ‘‘(ii) Guarantees and options. 24 VerDate Sep 11 2014 23:45 Jun 01, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2610.IH H2610 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2610 IH ‘‘(iii) Total salaries and benefits, and 1 salaries and benefits paid by the institution 2 and by third parties, respectively, to head 3 coaches, to assistant coaches, and for ad- 4 ministrative salaries. 5 ‘‘(iv) Severance pay. 6 ‘‘(v) Team travel. 7 ‘‘(vi) Recruiting. 8 ‘‘(vii) Equipment, uniforms, and sup- 9 plies. 10 ‘‘(viii) Fundraising. 11 ‘‘(ix) Marketing and promotion. 12 ‘‘(x) Game expenses. 13 ‘‘(xi) Medical, including— 14 ‘‘(I) medical personnel salaries; 15 and 16 ‘‘(II) medical treatment of ath- 17 letes. 18 ‘‘(xii) Membership dues. 19 ‘‘(xiii) Sports camps. 20 ‘‘(xiv) Spirit groups. 21 ‘‘(xv) Transfers to the institution. 22 ‘‘(xvi) Debt service payments. 23 ‘‘(xvii) Athletic facility maintenance 24 and rental. 25 VerDate Sep 11 2014 23:45 Jun 01, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2610.IH H2610 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 2610 IH ‘‘(xviii) Indirect facilities and adminis- 1 trative support. 2 ‘‘(xix) Education and general expenses 3 of the institution— 4 ‘‘(I) including instruction, re- 5 search, public service, academic sup- 6 port, student services, instructional 7 support, and scholarships and fellow- 8 ships; and 9 ‘‘(II) which do not include ex- 10 penses with respect to auxiliary enter- 11 prises, hospitals, or independent oper- 12 ations.’’; 13 (2) in paragraph (5)— 14 (A) by striking ‘‘the term’’ and inserting 15 the following: 16 ‘‘(A) the term’’; 17 (B) by striking the period at the end and 18 inserting ‘‘; and’’; and 19 (C) by adding at the end the following: 20 ‘‘(B) the terms listed in each of the cat- 21 egories under subparagraphs (K) through (L) 22 of paragraph (1) shall be defined by the Sec- 23 retary by regulation, developed in consultation 24 with the Secretary of the Treasury and the task 25 VerDate Sep 11 2014 23:45 Jun 01, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2610.IH H2610 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 2610 IH force described in paragraph (6)(A), and such 1 definitions shall be updated in accordance with 2 paragraph (6)(B).’’; and 3 (3) by adding at the end the following: 4 ‘‘(6) TASK FORCE; DEFINITION UPDATES.— 5 ‘‘(A) TASK FORCE.—The Secretary shall 6 appoint a task force of nonprofit and higher 7 education accounting experts, professionals, and 8 organizations representing institutions of higher 9 education that are members of division I of the 10 National Collegiate Athletic Association. 11 ‘‘(B) UPDATING DEFINITIONS.—The Sec- 12 retary, on a biannual basis and in consultation 13 with the task force described in subparagraph 14 (A), shall review each definition under para- 15 graph (5)(B) and, if necessary, update such 16 definition in accordance with generally accepted 17 accounting principles or significant changes in 18 the national system of intercollegiate athletics. 19 ‘‘(7) SPECIAL RULE.—An institution of higher 20 education that submits the information described in 21 subparagraphs (K) through (L) of paragraph (1) to 22 an intercollegiate athletic association for an aca- 23 demic year, and such information is verified by an 24 independent audit and certified by the chancellor of 25 VerDate Sep 11 2014 23:45 Jun 01, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2610.IH H2610 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 2610 IH the institution, may, in lieu of submitting such infor- 1 mation under paragraph (1), request such associa- 2 tion to directly submit such information to the Sec- 3 retary on behalf of the institution for such academic 4 year.’’. 5 SEC. 3. PROGRAM REQUIREMENTS. 6 Section 487(a) of the Higher Education Act of 1965 7 (20 U.S.C. 1094(a)) is amended by adding at the end the 8 following: 9 ‘‘(30)(A) In the case of an institution that is a 10 member of division I of the National Collegiate Ath- 11 letic Association, such institution will not be a mem- 12 ber of such association or participate in any inter- 13 collegiate athletics competition organized by any per- 14 son, unless such association or person reports, on an 15 annual basis, to the Secretary the following, 16 disaggregated by sport, athletic event, or contract, 17 as applicable: 18 ‘‘(i) Total generated revenue and amount 19 of revenue generated by each of the following 20 categories: 21 ‘‘(I) Total ticket sales. 22 ‘‘(II) Distributions from other inter- 23 collegiate athletic organization or person. 24 ‘‘(III) Cash contributions. 25 VerDate Sep 11 2014 23:45 Jun 01, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2610.IH H2610 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 2610 IH ‘‘(IV) Dues and other assessments 1 from member institutions of higher edu- 2 cation. 3 ‘‘(V) Third-party support. 4 ‘‘(VI) Merchandise. 5 ‘‘(VII) Concessions, programs, and 6 novelties. 7 ‘‘(VIII) Broadcast and media rights, 8 reported separately for television, radio, 9 Internet, and print. 10 ‘‘(IX) Endowment and investment in- 11 come, reported separately for each source 12 of such income. 13 ‘‘(X) Other corporate sponsorship. 14 ‘‘(XI) Royalties, advertising, and 15 sponsorship. 16 ‘‘(XII) Net assets. 17 ‘‘(XIII) Direct government support, 18 reported separately by State government, 19 local government, or Federal Government. 20 ‘‘(XIV) Any other category deter- 21 mined appropriate by the Secretary. 22 ‘‘(ii) Amount of expenses attributable to 23 each of the following categories: 24 VerDate Sep 11 2014 23:45 Jun 01, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2610.IH H2610 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 2610 IH ‘‘(I) Disbursements to institutions of 1 higher educations, athletic conferences, or 2 other persons. 3 ‘‘(II) Salaries and benefits. 4 ‘‘(III) Severance pay. 5 ‘‘(IV) Equipment, uniforms, and sup- 6 plies. 7 ‘‘(V) Fundraising. 8 ‘‘(VI) Marketing and promotion. 9 ‘‘(VII) Game expenses. 10 ‘‘(VIII) Medical, including— 11 ‘‘(aa) medical personnel salaries; 12 and 13 ‘‘(bb) medical treatment of ath- 14 letes. 15 ‘‘(IX) Facility construction. 16 ‘‘(X) Facility maintenance and rental. 17 ‘‘(XI) Capital investment. 18 ‘‘(XII) Debt service payments. 19 ‘‘(XIII) Charitable donations. 20 ‘‘(XIV) Any other category deter- 21 mined appropriate by the Secretary. 22 ‘‘(iii) Executive compensation schedules. 23 ‘‘(B) The Secretary shall— 24 VerDate Sep 11 2014 23:45 Jun 01, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2610.IH H2610 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 2610 IH ‘‘(i) define by regulation, developed in con- 1 sultation with the Secretary of the Treasury 2 and the task force described in section 3 485(g)(6)(A), the terms listed in each of the 4 categories under subparagraph (A); and 5 ‘‘(ii) on a biannual basis and in consulta- 6 tion with such task force, review each definition 7 under clause (i) and, if necessary, update such 8 definition in accordance with generally accepted 9 accounting principles or significant changes in 10 the national system of intercollegiate ath- 11 letics.’’. 12 Æ VerDate Sep 11 2014 23:45 Jun 01, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6301 E:\BILLS\H2610.IH H2610 kjohnson on DSK79L0C42PROD with BILLS