Fairness in Collegiate Athletics Act

II 116TH CONGRESS 2D SESSION S. 4004 To ensure that college athletes, and not institutions of higher education, are able to profit from their name, image, and likeness, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 18, 2020 Mr. RUBIO introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To ensure that college athletes, and not institutions of higher education, are able to profit from their name, image, and likeness, 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 ‘‘Fairness in Collegiate 4 Athletics Act’’. 5 SEC. 2. DEFINITIONS. 6 In this Act— 7 (1) COMMISSION.—The term ‘‘Commission’’ 8 means the Federal Trade Commission. 9 VerDate Sep 11 2014 22:09 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4004.IS S4004 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 4004 IS (2) COMPENSATION.—The term ‘‘compensa- 1 tion’’ means any remuneration, in cash or kind, 2 whether provided at the time or at any subsequent 3 date to a student athlete, except such term shall not 4 include any grant, scholarship, fellowship, tuition as- 5 sistance, or other form of financial aid provided to 6 a student for pursuing a postsecondary education. 7 (3) INSTITUTION OF HIGHER EDUCATION.—The 8 term ‘‘institution of higher education’’ has the 9 meaning given such term in section 102 of the High- 10 er Education Act of 1965 (20 U.S.C. 1002). 11 (4) INTERCOLLEGIATE ATHLETIC ASSOCIA- 12 TION.—The term ‘‘intercollegiate athletic associa- 13 tion’’— 14 (A) means— 15 (i) the National Collegiate Athletic 16 Association (or any successor organiza- 17 tion); and 18 (ii) any intercollegiate athletic associa- 19 tion that the Commission determines is 20 similar in purpose and scope to the asso- 21 ciation described in clause (i), subject to 22 subparagraph (B); and 23 (B) does not include the National Junior 24 College Athletic Association (or any successor 25 VerDate Sep 11 2014 22:09 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4004.IS S4004 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 4004 IS organization) or the National Association of 1 Intercollegiate Athletics (or any successor orga- 2 nization). 3 (5) STUDENT ATHLETE.—The term ‘‘student 4 athlete’’ means an individual who is enrolled in an 5 institution of higher education and engages in post- 6 secondary athletics. 7 (6) THIRD PARTY.—The term ‘‘third party’’ 8 means, with respect to any student athlete, any enti- 9 ty other than the institution of higher education in 10 which such student athlete is enrolled. 11 SEC. 3. ESTABLISHMENT OF RULES FOR PAYMENT OF STU- 12 DENT ATHLETES. 13 Not later than June 30, 2021, any intercollegiate ath- 14 letic association shall establish— 15 (1) a policy that permits any student athlete 16 to— 17 (A) earn compensation from a third party 18 as a result of the use of the name, image, or 19 likeness of such student athlete; and 20 (B) subject to the requirements under sec- 21 tion 3 of the Sports Agent Responsibility and 22 Trust Act (15 U.S.C. 7802), obtain professional 23 representation with respect to matters described 24 in subparagraph (A); and 25 VerDate Sep 11 2014 22:09 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4004.IS S4004 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 4004 IS (2) rules and programs for the administration 1 of the policy described in paragraph (1), including— 2 (A) requiring student athletes to report 3 any compensation described in such paragraph, 4 or any agreement to receive such compensation, 5 to the institution of higher education in which 6 they are enrolled and the intercollegiate athletic 7 association within a reasonable period fol- 8 lowing— 9 (i) the date on which an agreement to 10 receive such compensation is reached be- 11 tween the student athlete and the third 12 party; and 13 (ii) the date on which such compensa- 14 tion is received by the student athlete; and 15 (B) such rules and programs as are 16 deemed necessary to— 17 (i) preserve the amateur status of stu- 18 dent athletes; 19 (ii) ensure appropriate recruitment of 20 prospective student athletes; and 21 (iii) prevent illegitimate activity with 22 respect to any third party seeking to re- 23 cruit or retain student athletes with re- 24 VerDate Sep 11 2014 22:09 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4004.IS S4004 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 4004 IS spect to any institution of higher edu- 1 cation, including any third party— 2 (I) with a prior or existing asso- 3 ciation, either formally or informally, 4 with any institution of higher edu- 5 cation; or 6 (II) with a prior or existing fi- 7 nancial involvement with respect to 8 postsecondary athletics. 9 SEC. 4. ENFORCEMENT PROVISIONS. 10 (a) UNFAIR OR DECEPTIVE ACT OR PRACTICE.— 11 (1) IN GENERAL.—A violation of section 3 shall 12 be treated as a violation of a rule defining an unfair 13 or deceptive act or practice prescribed under section 14 18(a)(1)(B) of the Federal Trade Commission Act 15 (15 U.S.C. 57a(a)(1)(B)). 16 (2) ACTIONS BY THE COMMISSION.—The Com- 17 mission shall enforce section 3 in the same manner, 18 by the same means, and with the same jurisdiction, 19 powers, and duties as though all applicable terms 20 and provisions of the Federal Trade Commission Act 21 (15 U.S.C. 41 et seq.) were incorporated into and 22 made a part of this Act. 23 (3) ENFORCEMENT RELATED TO NONPROFIT 24 ORGANIZATIONS.—Notwithstanding section 4, 25 VerDate Sep 11 2014 22:09 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4004.IS S4004 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 4004 IS 5(a)(2), or 6 of the Federal Trade Commission Act 1 (15 U.S.C. 44, 45(a)(2), 46) or any jurisdictional 2 limitation of the Federal Trade Commission, the 3 Commission shall also enforce this Act and any reg- 4 ulations promulgated under this Act, in the same 5 manner provided in paragraphs (1) and (2) of this 6 subsection, with respect to organizations not orga- 7 nized to carry on business for their own profit or 8 that of their members. 9 (b) EXCEPTION.—Except as provided under sub- 10 section (a), no cause of action shall lie or be maintained 11 in any court against any intercollegiate athletic associa- 12 tion, or any institution of higher education which is a 13 member of such association for the adoption or enforce- 14 ment of a policy, rule, or program established under sec- 15 tion 3. 16 SEC. 5. PREEMPTION. 17 No State or political subdivision of a State may 18 adopt, maintain, enforce, or continue in effect any law, 19 regulation, rule, requirement, or standard related to per- 20 mitting or prohibiting a student athlete to receive com- 21 pensation from an institution of higher education or a 22 third party as a result of such athlete’s performance or 23 participation in postsecondary athletics. 24 Æ VerDate Sep 11 2014 22:09 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S4004.IS S4004 pbinns on DSKJLVW7X2PROD with BILLS