Student Athlete Level Playing Field Act

I 117TH CONGRESS 1ST SESSION H. R. 2841 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 con- tract, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 26, 2021 Mr. GONZALEZ of Ohio (for himself, Mr. CLEAVER, Mr. RODNEY DAVIS of Illinois, Mr. GOTTHEIMER, Mr. STIVERS, Mr. ALLRED, Mr. HUDSON, and Ms. DAVIDS of Kansas) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Com- mittee on Education and Labor, for a period to be subsequently deter- mined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL 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 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 ‘‘Student Athlete Level 4 Playing Field Act’’. 5 VerDate Sep 11 2014 22:10 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2841.IH H2841 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 2841 IH SEC. 2. CONTRACTS RELATING TO STUDENT ATHLETES 1 AND COLLEGE AND UNIVERSITY ATHLETIC 2 PROGRAMS. 3 (a) PROHIBITION.—Subject to the exceptions in sub- 4 section (b), a covered athletic organization or institution 5 of higher education may not prohibit a student athlete 6 from participating in intercollegiate athletics because such 7 student athlete enters into an agency contract or an en- 8 dorsement contract or otherwise receives consideration for 9 such student athlete’s name, image, or likeness. 10 (b) EXCEPTIONS FOR ENDORSEMENT CONTRACTS.— 11 A covered athletic organization or institution of higher 12 education may prohibit a student athlete from entering 13 into an endorsement contract with the following categories 14 of brands, companies, or types of contracts: 15 (1) A tobacco company or brand, including any 16 vaping device or e-cigarette or related product. 17 (2) Any alcohol company or brand. 18 (3) Any seller or dispensary of a controlled sub- 19 stance, including marijuana. 20 (4) Any adult entertainment business. 21 (5) Any casino or entity whose primary busi- 22 ness is sponsoring or promotion of gambling activi- 23 ties. 24 (c) PERMISSIBLE PROHIBITIONS.—A student athlete 25 may be prohibited by the institution of higher education 26 VerDate Sep 11 2014 22:10 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2841.IH H2841 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 2841 IH of the student athlete from wearing any item of clothing 1 or gear with the insignia of any entity during any athletic 2 competition or athletic-related university-sponsored event. 3 (d) RESULTANT PROHIBITIONS ON INSTITUTIONS OF 4 HIGHER EDUCATION FROM ENTERING INTO CERTAIN 5 SPONSORSHIP AND ENDORSEMENT CONTRACTS.— 6 (1) FROM PROHIBITIONS ON ATHLETES.—If a 7 covered athletic organization or institution of higher 8 education prohibits a student athlete from entering 9 into an endorsement contract pursuant to subsection 10 (b), such covered athletic organization or institution 11 of higher education may not enter into or continue 12 in any sponsorship or endorsement contract for itself 13 with the same category or categories of brands, com- 14 panies, or types of contracts described in paragraphs 15 (1) through (5) of such subsection. 16 (2) FROM PROHIBITIONS BY A COVERED ATH- 17 LETIC ORGANIZATION.—If a covered athletic organi- 18 zation prohibits a student athlete from entering into 19 a contract pursuant to subsection (b), any institu- 20 tion of higher education that is a part of that cov- 21 ered athletic organization may not enter into any 22 sponsorship or endorsement contract for itself with 23 the same category or categories of brands, compa- 24 VerDate Sep 11 2014 22:10 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2841.IH H2841 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 2841 IH nies, or types of contracts described in paragraphs 1 (1) through (5) of such subsection. 2 SEC. 3. ENFORCEMENT. 3 (a) UNFAIR OR DECEPTIVE ACTS OR PRACTICES.— 4 A violation of section 2 shall be treated as an unfair and 5 deceptive act or practice in violation of a regulation under 6 section 18(a)(1)(B) of the Federal Trade Commission Act 7 (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive 8 acts or practices. 9 (b) POWERS OF THE FTC.—The Federal Trade 10 Commission shall enforce this section in the same manner, 11 by the same means, and with the same jurisdiction, pow- 12 ers, and duties as though all applicable terms and provi- 13 sions of the Federal Trade Commission Act (15 U.S.C. 14 41 et seq.) were incorporated into and made part of this 15 Act. Any person that violates this section shall be subject 16 to the penalties and entitled to the privileges and immuni- 17 ties provided in the Federal Trade Commission Act (15 18 U.S.C. 41 et seq.). Nothing in this Act shall be construed 19 to limit the authority of the Federal Trade Commission 20 under any other provision of law. 21 SEC. 4. COVERED ATHLETIC ORGANIZATION COMMISSION. 22 (a) ESTABLISHMENT.—There is established the Cov- 23 ered Athletic Organization Commission (in this section re- 24 VerDate Sep 11 2014 22:10 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2841.IH H2841 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 2841 IH ferred to as the ‘‘Commission’’), whose purpose shall be 1 to— 2 (1) make recommendations to Congress and to 3 each covered athletic organization about the imple- 4 mentation of name, image, and likeness rules; 5 (2) recommend to each covered athletic organi- 6 zation such a process to certify or recognize 7 credentialed athlete agents; 8 (3) make recommendations for the establish- 9 ment of an independent dispute resolution process, 10 for any dispute arising between a student athlete 11 and a covered athletic organization or institution of 12 higher education; and 13 (4) make recommendations for additional cat- 14 egories of endorsement contracts that are excepted 15 under section 2(b). 16 (b) MEMBERSHIP.—The Commission shall consist of 17 13 members appointed in accordance with subsection (c) 18 from among or in accordance with the following: 19 (1) Institutions of higher education, including 20 athletic directors and coaches. 21 (2) At least two individuals who are current or 22 former student athletes who advocate for the inter- 23 est of student athletes. 24 VerDate Sep 11 2014 22:10 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2841.IH H2841 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 2841 IH (3) Administrators of covered athletic organiza- 1 tions. 2 (4) Professionals with expertise in sports mar- 3 keting, contracting, and public relations. 4 (5) Individuals— 5 (A) with expertise in corporate governance; 6 and 7 (B) who are not associated with any cov- 8 ered athletic association or institution of higher 9 education. 10 (c) APPOINTMENT.— 11 (1) IN GENERAL.—Not later than 60 days after 12 the date of enactment of this Act, members of the 13 Commission shall be appointed as follows: 14 (A) Three members appointed by the 15 Speaker of the House of Representatives. 16 (B) Three members appointed by the mi- 17 nority leader of the House of Representatives. 18 (C) Three members appointed by the ma- 19 jority leader of the Senate. 20 (D) Three members appointed by the mi- 21 nority leader of the Senate. 22 (E) One member, who shall be the chair of 23 the Commission, selected by the members ap- 24 pointed under subparagraphs (A) through (D) 25 VerDate Sep 11 2014 22:10 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2841.IH H2841 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 2841 IH not later than 60 days after the appointment of 1 such members, and agreed upon by no fewer 2 than eight of such members. If eight such mem- 3 bers are unable to agree on an appointment 4 under this subparagraph within such 60 day pe- 5 riod, the Speaker of the House of Representa- 6 tives shall make the appointment under this 7 subparagraph. 8 (2) DIVERSITY.—To the extent practicable, the 9 Speaker and leaders making appointments under 10 paragraph (1) shall coordinate their appointments to 11 ensure that the Commission reflect diversity in gen- 12 der, race, sport with which they are associated, as 13 applicable, and shall prioritize the appointment of 14 members unaffiliated with divisions or conferences of 15 applicable covered athletic organizations. 16 (d) MEETINGS AND QUORUM.—Meetings of the Com- 17 mission shall be held at the call of the chair appointed 18 under subsection (c)(1)(E). A meeting may only be held 19 where there is a quorum of at least 7 members, including 20 not fewer than two members who are current or former 21 student athletes who advocate for the interest of student 22 athletes. 23 (e) REPORT.—Not later than one, two, and three 24 years, respectively, after the Commission shall be con- 25 VerDate Sep 11 2014 22:10 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2841.IH H2841 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 2841 IH stituted, it shall submit to the Committee on Energy and 1 Commerce of the House of Representatives and the Com- 2 mittee on Commerce, Science, and Transportation of the 3 Senate annual reports that include the recommendations 4 in paragraphs (1) through (4) of subsection (a). The Com- 5 mission shall also make such reports available to the pub- 6 lic. 7 (f) SUNSET.—The Commission shall terminate 60 8 days after submitting the final report required under sub- 9 section (e). 10 SEC. 5. INSTITUTIONS OF HIGHER EDUCATION AND STU- 11 DENT ATHLETES WHO ENTER INTO EN- 12 DORSEMENT CONTRACTS. 13 Section 487(a) of the Higher Education Act of 1965 14 (20 U.S.C. 1094(a)) is amended by adding at the end the 15 following: 16 ‘‘(30) In the case of an institution that has a 17 student attending the institution who is an athlete 18 and has entered into an endorsement contract (as 19 defined under section 2 of the Sports Agent Respon- 20 sibility and Trust Act (15 U.S.C. 7801)) or an agen- 21 cy contract (as defined in section 9 of the Student 22 Athlete Level Playing Field Act), such institution 23 will not— 24 VerDate Sep 11 2014 22:10 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2841.IH H2841 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 2841 IH ‘‘(A) prohibit such student from entering 1 into such an endorsement contract or an agency 2 contract, including through a rule, standard, or 3 policy that affects the eligibility of such student 4 to receive athletically related student aid (as de- 5 fined in section 485(e) of the Higher Education 6 Act of 1965 (20 U.S.C. 1092(e))); or 7 ‘‘(B) compensate such student for the 8 name, image, or likeness of such student.’’. 9 SEC. 6. PROHIBITING UNFAIR AND DECEPTIVE PRACTICES 10 AGAINST STUDENT ATHLETES. 11 (a) PROHIBITING UNFAIR AND DECEPTIVE PRAC- 12 TICES BY BOOSTERS.—The Sports Agent Responsibility 13 and Trust Act (15 U.S.C. 7801 et seq.) is amended— 14 (1) in section 2— 15 (A) by redesignating paragraphs (4) 16 through (9) as paragraphs (5) through (10), re- 17 spectively; and 18 (B) by inserting after paragraph (3) the 19 following new paragraph: 20 ‘‘(4) BOOSTER.—The term ‘booster’ means an 21 individual (other than an individual who is related to 22 a student athlete) or an organization, including a 23 sponsor of an institution’s athletic program, that 24 provides substantial financial assistance or services 25 VerDate Sep 11 2014 22:10 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2841.IH H2841 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 2841 IH to the athletic program of an institution of higher 1 education or that promotes a team or athletic pro- 2 gram of an institution of higher education for such 3 individual’s or organization’s own substantial finan- 4 cial interest.’’; 5 (2) by inserting after section 3 the following 6 new section: 7 ‘‘SEC. 3A. REGULATION OF UNFAIR AND DECEPTIVE ACTS 8 AND PRACTICES IN CONNECTION WITH CON- 9 TACT BETWEEN A BOOSTER AND A STUDENT 10 ATHLETE. 11 ‘‘It is unlawful for a booster to directly or indirectly 12 provide or offer to provide any funds or thing of value 13 as an inducement for a student athlete to enroll or remain 14 at a specific institution or group of institutions.’’; and 15 (3) in section 5(a)(1), by inserting ‘‘or by the 16 engagement of any booster in a practice that violates 17 section 3A’’ after ‘‘section 3’’. 18 (b) ELIGIBILITY TO COMPETE AS A STUDENT ATH- 19 LETE AFTER ENTERING INTO AN AGENCY CONTRACT.— 20 Section 3(b)(3) of the Sports Agent Responsibility and 21 Trust Act (15 U.S.C. 7802(b)(3)) is amended in the 22 quoted part by inserting after ‘‘boldface type stating:’’ the 23 following: ‘‘ ‘Notice to Student Athlete: If you agree orally 24 or in writing to be represented by an agent now or in the 25 VerDate Sep 11 2014 22:10 Jun 07, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2841.IH H2841 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 2841 IH future, both you and the agent by whom you are agreeing 1 to be represented must notify the athletic director of the 2 educational institution at which you are enrolled, or other 3 individual responsible for athletic programs at such edu- 4 cational institution, that you have entered into an agency 5 contract. Such notification must be within 72 hours after 6 entering into this contract or before the next athletic event 7 in which you are eligible to participate, whichever occurs 8 first.’ ’’. 9 (c) REPORT ON CLAIMS FILED PURSUANT TO THE 10 SPORTS AGENT RESPONSIBILITY AND TRUST ACT.—The 11 Sports Agent Responsibility and Trust Act (15 U.S.C. 12 7801 et seq.) is further amended by inserting after section 13 6 the following new section: 14 ‘‘SEC. 6A. REPORT TO CONGRESS. 15 ‘‘Not later than 6 months after the date of enactment 16 of this section, and annually thereafter, the Commission 17 shall submit to the Committee on Energy and Commerce 18 of the House of Representatives and the Committee on 19 Commerce, Science, and Transportation of the Senate a 20 report summarizing any investigation or enforcement ac- 21 tion brought by the Commission pursuant to this Act, in- 22 cluding the number of complaints filed with the Commis- [Text truncated for display. Full text available on Congress.gov.]