Student Athlete Level Playing Field Act

I 118TH CONGRESS 1ST SESSION H. R. 3630 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. 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 consider- ation 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. 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; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Student Athlete Level Playing Field Act’’. 5 VerDate Sep 11 2014 05:10 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3630.IH H3630 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3630 IH (b) TABLE OF CONTENTS.—The table of contents for 1 this Act is as follows: 2 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 en- dorsement contracts. Sec. 5. Prohibiting unfair or deceptive acts or practices against student ath- letes. Sec. 6. Registration of certain agents. Sec. 7. State preemption. Sec. 8. Rules of construction. Sec. 9. Sense of Congress. Sec. 10. Definitions. SEC. 2. ABILITY OF STUDENT ATHLETES TO ENTER AGENCY 3 AND ENDORSEMENT CONTRACTS. 4 (a) IN GENERAL.—A covered athletic organization or 5 institution of higher education may not prohibit a student 6 athlete from participating in intercollegiate athletics as a 7 result of such student athlete entering into an agency con- 8 tract or an endorsement contract, or otherwise receiving 9 consideration for the name, image, or likeness of such stu- 10 dent athlete. 11 (b) LIMITATION ON ATHLETIC DEPARTMENTS.—An 12 agreement under which consideration is provided to a stu- 13 dent athlete for use of the name, image, or likeness of 14 the student athlete, including such an agreement between 15 an institution of higher education and a student athlete, 16 may not be negotiated, drafted, or funded by the athletic 17 department of the institution of higher education of the 18 student athlete or an institutional employee who reports 19 to such athletic department. 20 VerDate Sep 11 2014 05:10 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3630.IH H3630 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3630 IH (c) INSIGNIA PROHIBITIONS.—A student athlete may 1 be prohibited, by the institution of higher education of the 2 student athlete, from wearing an item of clothing or gear 3 with the insignia of an entity during an athletic competi- 4 tion or athletic-related event that is sponsored by the insti- 5 tution. 6 (d) ENFORCEMENT BY FEDERAL TRADE COMMIS- 7 SION.— 8 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC- 9 TICES.—A violation of subsection (a) shall be treated 10 as a violation of a regulation under section 11 18(a)(1)(B) of the Federal Trade Commission Act 12 (15 U.S.C. 57a(a)(1)(B)) regarding unfair or decep- 13 tive acts or practices. 14 (2) POWERS OF COMMISSION.—The Federal 15 Trade Commission shall enforce subsection (a) in 16 the same manner, by the same means, and with the 17 same jurisdiction, powers, and duties as though all 18 applicable terms and provisions of the Federal Trade 19 Commission Act (15 U.S.C. 41 et seq.) were incor- 20 porated into and made a part of this Act. Any per- 21 son who violates such subsection shall be subject to 22 the penalties and entitled to the privileges and im- 23 munities provided in the Federal Trade Commission 24 Act. 25 VerDate Sep 11 2014 05:10 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3630.IH H3630 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3630 IH (3) RULE OF CONSTRUCTION.—Nothing in this 1 section may be construed to limit the authority of 2 the Federal Trade Commission under any other pro- 3 vision of law. 4 SEC. 3. COVERED ATHLETIC ORGANIZATION COMMISSION. 5 (a) ESTABLISHMENT.—There is established the Cov- 6 ered Athletic Organization Commission (in this section re- 7 ferred to as the ‘‘Commission’’), the purpose of which shall 8 be to make recommendations— 9 (1) to Congress and covered athletic organiza- 10 tions, on the implementation of name, image, and 11 likeness rules; 12 (2) to covered athletic organizations, on a proc- 13 ess for certifying or recognizing credentialed athlete 14 agents; and 15 (3) on the establishment of an independent dis- 16 pute resolution process for disputes arising between 17 a student athlete and a covered athletic organization 18 or an institution of higher education. 19 (b) MEMBERSHIP.— 20 (1) IN GENERAL.—The Commission shall con- 21 sist of 13 members appointed from among the fol- 22 lowing: 23 VerDate Sep 11 2014 05:10 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3630.IH H3630 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 3630 IH (A) Representatives of institutions of high- 1 er education, including athletic directors and 2 coaches. 3 (B) Individuals who are current or former 4 student athletes and who advocate for the inter- 5 ests of student athletes. 6 (C) Administrators of covered athletic or- 7 ganizations. 8 (D) Professionals with expertise in sports 9 marketing, contracting, and public relations. 10 (E) Individuals— 11 (i) with expertise in corporate govern- 12 ance; and 13 (ii) who are not associated with a cov- 14 ered athletic organization or institution of 15 higher education. 16 (2) STUDENT ATHLETE ADVOCATES.—At least 17 2 individuals described in paragraph (1)(B) shall be 18 appointed to the Commission. 19 (c) APPOINTMENT.— 20 (1) IN GENERAL.—Not later than 60 days after 21 the date of the enactment of this Act, 12 members 22 of the Commission shall be appointed as follows: 23 (A) 3 members appointed by the Speaker 24 of the House of Representatives. 25 VerDate Sep 11 2014 05:10 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3630.IH H3630 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 3630 IH (B) 3 members appointed by the minority 1 leader of the House of Representatives. 2 (C) 3 members appointed by the majority 3 leader of the Senate. 4 (D) 3 members appointed by the minority 5 leader of the Senate. 6 (2) CHAIR.— 7 (A) APPOINTMENT.—Not later than 60 8 days after the appointment of the initial 12 9 members of the Commission under paragraph 10 (1), 1 member shall be appointed to the Com- 11 mission by such members, upon agreement of 8 12 such members on the individual to be ap- 13 pointed. 14 (B) RESULT OF INABILITY TO REACH 15 AGREEMENT.—If agreement on an individual to 16 be appointed as a member of the Commission 17 under subparagraph (A) is not reached during 18 the time period described in that subparagraph, 19 the Speaker of the House of Representatives 20 shall make the appointment of such member. 21 (C) POSITION AS CHAIR OF THE COMMIS- 22 SION.—The member appointed to the Commis- 23 sion under this paragraph shall be the chair of 24 the Commission. 25 VerDate Sep 11 2014 05:10 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3630.IH H3630 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 3630 IH (3) DIVERSITY.—To the extent practicable, the 1 individuals making appointments under paragraphs 2 (1) and (2) shall coordinate their appointments to 3 ensure that the Commission reflects diversity with 4 respect to gender, race, and sport of association, as 5 applicable, and shall prioritize the appointment of 6 members unaffiliated with a division or conference of 7 a covered athletic organization. 8 (d) MEETINGS AND QUORUM.— 9 (1) MEETING AT CALL OF CHAIR.—Meetings of 10 the Commission shall be held at the call of the chair 11 of the Commission. 12 (2) QUORUM.—A meeting of the Commission 13 may only be held if there is a quorum of at least 7 14 members, including not fewer than 2 members who 15 are individuals described in subsection (b)(1)(B). 16 (e) REPORT.—Not later than 1 year after the Com- 17 mission is constituted, and annually thereafter during the 18 subsequent 2-year period, the Commission shall submit to 19 the Committee on Energy and Commerce of the House 20 of Representatives and the Committee on Commerce, 21 Science, and Transportation of the Senate, and make 22 available to the public, a report on the activities of the 23 Commission that includes the recommendations made 24 under subsection (a). 25 VerDate Sep 11 2014 05:10 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3630.IH H3630 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 3630 IH (f) SUNSET.—The Commission shall terminate on the 1 date that is 60 days after the date on which the Commis- 2 sion submits the final report required under subsection 3 (e). 4 SEC. 4. INSTITUTIONS OF HIGHER EDUCATION AND STU- 5 DENT ATHLETES WHO ENTER INTO EN- 6 DORSEMENT CONTRACTS. 7 Section 487(a) of the Higher Education Act of 1965 8 (20 U.S.C. 1094(a)) is amended by adding at the end the 9 following: 10 ‘‘(30) In the case of an institution that has a 11 student attending the institution who is an athlete 12 at the institution and who is entering into an en- 13 dorsement contract (as defined in section 2 of the 14 Sports Agent Responsibility and Trust Act (15 15 U.S.C. 7801)) or an agency contract (as defined in 16 section 10 of the Student Athlete Level Playing 17 Field Act), such institution will not prohibit such 18 student from entering into such contract, including 19 through a rule, standard, or policy that affects the 20 eligibility of such student to receive athletically re- 21 lated student aid (as defined in section 485(e) of 22 this Act).’’. 23 VerDate Sep 11 2014 05:10 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3630.IH H3630 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 3630 IH SEC. 5. PROHIBITING UNFAIR OR DECEPTIVE ACTS OR 1 PRACTICES AGAINST STUDENT ATHLETES. 2 (a) PROHIBITING UNFAIR OR DECEPTIVE ACTS OR 3 PRACTICES BY BOOSTERS.—The Sports Agent Responsi- 4 bility and Trust Act (15 U.S.C. 7801 et seq.) is amend- 5 ed— 6 (1) in section 2— 7 (A) by redesignating paragraphs (4) 8 through (9) as paragraphs (5) through (10), re- 9 spectively; and 10 (B) by inserting after paragraph (3) the 11 following new paragraph: 12 ‘‘(4) BOOSTER.—The term ‘booster’ means an 13 individual (other than an individual who is related to 14 an applicable student athlete) or an organization (in- 15 cluding a sponsor) that provides substantial financial 16 assistance or services to the athletic program of an 17 educational institution or that promotes a team or 18 athletic program of an educational institution for 19 purposes of the substantial financial interest of the 20 individual or organization.’’; 21 (2) by inserting after section 3 the following 22 new section: 23 VerDate Sep 11 2014 05:10 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3630.IH H3630 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 3630 IH ‘‘SEC. 3A. REGULATION OF UNFAIR OR DECEPTIVE ACTS OR 1 PRACTICES IN CONNECTION WITH CONTACT 2 BETWEEN A BOOSTER AND A STUDENT ATH- 3 LETE. 4 ‘‘It is unlawful for a booster to directly or indirectly 5 provide or offer to provide any funds or thing of value 6 as an inducement for a student athlete to enroll at a spe- 7 cific educational institution or group of such institutions, 8 including that a booster may not orally or in writing enter 9 into a contract or agreement with a prospective student 10 athlete to provide the prospective student athlete with con- 11 sideration for the use of the name, image, or likeness of 12 the prospective student athlete until the prospective stu- 13 dent athlete enrolls full time at the relevant institution.’’; 14 and 15 (3) in section 5(a)(1), by inserting ‘‘or by the 16 engagement of a booster in a practice that violates 17 section 3A of this Act’’ after ‘‘section 3 of this Act’’. 18 (b) ELIGIBILITY TO COMPETE AS A STUDENT ATH- 19 LETE AFTER ENTERING INTO AN AGENCY CONTRACT.— 20 (1) IN GENERAL.—Section 3(b)(3) of the 21 Sports Agent Responsibility and Trust Act (15 22 U.S.C. 7802(b)(3)) is amended by striking ‘‘boldface 23 type stating:’’ and all that follows through the end 24 of the paragraph and inserting the following: ‘‘bold- 25 face type stating: ‘Notice to Student Athlete: If you 26 VerDate Sep 11 2014 05:10 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3630.IH H3630 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 3630 IH agree orally or in writing to be represented by an 1 agent now or in the future, both you and the agent 2 you are agreeing to be represented by must notify 3 the athletic director of the educational institution at 4 which you are enrolled, or another individual respon- 5 sible for the athletic programs at such educational 6 institution, that you have entered into an agency 7 contract. Such notification must be made within 72 8 hours after entering into the agreement or before 9 the next athletic event in which you are eligible to 10 participate, whichever occurs first.’.’’. 11 (2) CLEARINGHOUSE.— 12 (A) ESTABLISHMENT.—Not later than 180 13 days after the date of the enactment of this 14 Act, the Federal Trade Commission shall estab- 15 lish a clearinghouse for endorsement contracts 16 entered into by student athletes and athlete 17 agents who represent student athletes. 18 (B) AGREEMENT DISCLOSURE RE- 19 QUIRED.— 20 (i) IN GENERAL.—The Federal Trade 21 Commission shall require each student ath- 22 lete and each athlete agent who represents 23 student athletes to disclose to the clearing- 24 house established under subparagraph (A) 25 VerDate Sep 11 2014 05:10 Jun 15, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3630.IH H3630 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 3630 IH each endorsement contract entered into by 1 such student athlete or such agent with a 2 value of more than $500. 3 (ii) TIMING.—Disclosure of a contract 4 under clause (i) shall be made not later 5 than 72 hours after agreement on the con- 6 tract. 7 (C) NOTIFICATION OF INSTITUTIONS.— 8 The Clearinghouse established under subpara- 9 grap [Text truncated for display. 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