HR3847-119

1. Short title; table of contents This Act may be cited as the Student-athlete Protections and Opportunities through Rights, Transparency, and Safety Act or the SPORTS Act. The table of contents for this Act is as follows:

2. Definitions In this Act: The term compensation— means any form of payment or remuneration, whether provided through cash, benefits, awards, or other means, including payments for— licenses relating to, or the use of, name, image, and likeness rights; or licenses relating to, or the use of, any other Federal or State intellectual or intangible property right; and does not include— grants-in-aid; Federal Pell Grants and other Federal or State grants unrelated to and not awarded with regard to participation in intercollegiate athletic competitions; health insurance and payments for the costs of health care, including health insurance and payments for the costs of health care wholly or partly self-funded by an institution, conference, or interstate intercollegiate athletic association; disability and loss-of-value insurance, including disability and loss-of-value insurance that is wholly or partly self-funded by an institution, conference, or interstate intercollegiate athletic association; career counseling, job placement services, and other guidance available to all students at an institution; payment of hourly wages and benefits for work actually performed (and not for participation in intercollegiate athletic competitions) at a rate commensurate with the going rate in the relevant locality for similar work; or any program to connect student athletes with employers and facilitate employment opportunities, if— the financial terms of such employment opportunities are consistent with the terms offered to similarly situated individuals who are not student athletes; and such program is not used to induce a student athlete to attend a particular institution. The term conference means an entity that— exclusively has as members 2 or more institutions; and arranges championships and sets rules with respect to intercollegiate athletic competitions for members. The term cost of attendance— has the meaning given such term in section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll); and is calculated by the financial aid office of an institution using the same standards, policies, and procedures for all students. The term grant-in-aid means a scholarship, grant, stipend, or other form of financial assistance, including the provision of tuition, room, board, books, or funds for fees or personal expenses, that— is paid or provided by an institution to a student for the undergraduate or graduate course of study of the student; and is in an amount that does not exceed the cost of attendance for such student at the institution. The term image means, with respect to a student athlete, a picture or video that identifies, is linked to, or is reasonably linked to such student athlete. The term institution has the meaning given the term institution of higher education in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001). The term intercollegiate athletic competition means any contest, game, meet, match, tournament, regatta, or other event in which varsity sports teams of more than 1 institution compete. The term interstate intercollegiate athletic association means— any entity organized in the United States that— sponsors or arranges intercollegiate athletic competitions between institutions and conferences; sets common rules, standards, procedures, or guidelines for the administration of intercollegiate athletic competitions; and is composed of 2 or more conferences with member institutions located in more than 1 State; and does not include an entity affiliated with professional athletic competitions. The term likeness means, with respect to a student athlete, a physical or digital depiction or representation that identifies, is linked to, or is reasonably linked to such student athlete. The term name means, with respect to a student athlete, the first or last name, or the nickname, of such student athlete if used in a context that identifies, is linked to, or is reasonably linked to such student athlete. The term name, image, and likeness agreement means a contract or similar agreement between a student athlete and a third party regarding the commercial use of the name, image, or likeness of the student athlete. The term name, image, and likeness rights means rights recognized under Federal or State law that allow an individual to control and profit from the commercial use of the name, image, and likeness of such individual, including all rights commonly referred to as publicity rights. The term NIL representation— means representation of a student athlete by an individual or entity with respect to a name, image, and likeness agreement; and does not include such representation if carried out by an immediate family member of the student athlete. The term student athlete means an individual who— is enrolled at an institution; and participates in a varsity sports team of such institution. The term third party— means any individual or entity that licenses name, image, and likeness rights from any current or prospective student athlete or any group of such athletes; and does not include an institution, conference, or interstate intercollegiate athletic association. The term varsity sports team means an entity composed of an individual or group of individuals enrolled at an institution that is organized by such institution for the purpose of participation in intercollegiate athletic competitions.

3. Protection of name, image, and likeness rights of student athletes Except as provided in paragraph (2), no institution, conference, or interstate intercollegiate athletic association may restrict the ability of a student athlete to enter into a name, image, and likeness agreement. An institution, conference, or interstate intercollegiate athletic association may restrict the eligibility of a student athlete for intercollegiate athletic competitions if such student athlete enters into a name, image, and likeness agreement that— violates the code of student conduct of the institution at which the student athlete is enrolled; negatively impacts the reputation or public image of such institution; or conflicts with the terms of an existing contract or agreement of such institution. Not later than 60 days after the date on which a student athlete enters into a name, image, and likeness agreement, such student athlete shall disclose the terms of such agreement to the institution at which such student athlete is enrolled. Except as provided in section 6, an institution may not release any information provided by a student athlete in a disclosure provided under subparagraph (A) without the express written consent of such student athlete or the NIL representation of the student athlete. No institution, conference, or interstate intercollegiate athletic association may prohibit the participation of a student athlete in an intercollegiate athletic competition, or events relating to an intercollegiate athletic competition, on the basis that the student athlete has obtained NIL representation. A name, image, and likeness agreement is void from the inception of such agreement if such agreement does not satisfy the following requirements: The agreement is in writing. The agreement contains— a description of any services to be rendered under the agreement; the names of the parties to the agreement; the term of the agreement; the amount of compensation to be provided to the relevant student athlete under the agreement; and a provision specifying under what circumstances or events the agreement may be terminated on account of non-performance of obligations by the relevant student athlete.

4. Modifications to Sports Agent Responsibility and Trust Act The Sports Agent Responsibility and Trust Act (15 U.S.C. 7801 et seq.) is amended— in section 3(b)(3), by striking Warning to Student Athlete: If you agree orally or in writing to be represented by an agent now or in the future you may lose your eligibility to compete as a student athlete in your sport.; and by adding at the end the following: An athlete agent who assists a student athlete with an endorsement contract shall disclose to the student athlete— whether the athlete agent is registered with an interstate intercollegiate athletic association (as defined in section 2 of the SPORTS Act); and if registered with such an association, whether such association has as a member the institution (as defined in section 2 of the SPORTS Act) at which the student athlete is enrolled. In the case of an athlete agent that is not registered with an interstate intercollegiate athletic association (as defined in section 2 of the SPORTS Act), the athlete agent may only assist a student athlete with an endorsement contract if such student athlete (or, in the case of a student athlete who is under 18 years of age, the parent or guardian of such student athlete) provides to the athlete agent written consent for such assistance after receiving a written disclosure from the athlete agent that the athlete agent is not registered with such an association. 9.Disclosure and consent relating to name, image, and likeness agreements(a)In generalAn athlete agent who assists a student athlete with an endorsement contract shall disclose to the student athlete—(1)whether the athlete agent is registered with an interstate intercollegiate athletic association (as defined in section 2 of the SPORTS Act); and(2)if registered with such an association, whether such association has as a member the institution (as defined in section 2 of the SPORTS Act) at which the student athlete is enrolled.(b)ConsentIn the case of an athlete agent that is not registered with an interstate intercollegiate athletic association (as defined in section 2 of the SPORTS Act), the athlete agent may only assist a student athlete with an endorsement contract if such student athlete (or, in the case of a student athlete who is under 18 years of age, the parent or guardian of such student athlete) provides to the athlete agent written consent for such assistance after receiving a written disclosure from the athlete agent that the athlete agent is not registered with such an association..

9. Disclosure and consent relating to name, image, and likeness agreements An athlete agent who assists a student athlete with an endorsement contract shall disclose to the student athlete— whether the athlete agent is registered with an interstate intercollegiate athletic association (as defined in section 2 of the SPORTS Act); and if registered with such an association, whether such association has as a member the institution (as defined in section 2 of the SPORTS Act) at which the student athlete is enrolled. In the case of an athlete agent that is not registered with an interstate intercollegiate athletic association (as defined in section 2 of the SPORTS Act), the athlete agent may only assist a student athlete with an endorsement contract if such student athlete (or, in the case of a student athlete who is under 18 years of age, the parent or guardian of such student athlete) provides to the athlete agent written consent for such assistance after receiving a written disclosure from the athlete agent that the athlete agent is not registered with such an association.

5. Roles of conferences and interstate intercollegiate athletic associations Each interstate intercollegiate athletic association shall— establish a process by which an individual or entity seeking to represent a student athlete with respect to a name, image, and likeness agreement may register with such interstate intercollegiate athletic association for purposes of NIL representation; and establish and maintain a publicly accessible, searchable database to assist student athletes and the NIL representation of such athletes to estimate the fair market value for name, image, and likeness agreements based on the information provided under section 6. Each conference or interstate intercollegiate athletic association may— establish and enforce rules relating to— the manner and timing for the recruitment of an athlete before and during the period of eligibility of such athlete for intercollegiate athletic competitions; and the transfer of student athletes between institutions, including prohibiting or limiting compensation to student athletes by institutions and conferences for the purposes of inducing a student athlete to transfer institutions; provide student athletes and the parents and guardians of student athletes with educational materials relating to name, image, and likeness rights; organize championships; and establish bylaws governing membership under which a conference or interstate intercollegiate athletic association may, if in compliance with this Act— remove member institutions; restrict participation in intercollegiate athletic competitions for institutions or student athletes; and restrict eligibility of student athletes for intercollegiate athletic competitions.

6. Determination of NIL market value Not later than July 1 of the first year beginning after the date of the enactment of this Act, and annually thereafter, each institution shall provide, in an anonymized manner, to any interstate intercollegiate athletic association of which such institution is a member the following data with respect to each name, image, and likeness agreement disclosed to the institution under section 3(a)(3) during the preceding year: A description of services rendered by the student athlete under such agreement. The amount of compensation to be provided to the student athlete under such agreement. In providing data under paragraph (1), an institution shall ensure that no personally identifiable information of a student athlete is transmitted. Data provided to an interstate intercollegiate athletic association under subsection (a) shall be used by such association to establish and maintain a publicly accessible, searchable database for student athletes and the NIL representation of such athletes to estimate the fair market value for name, image, and likeness agreements. An interstate intercollegiate athletic association shall take reasonable measures to ensure that data available in the database described in paragraph (1) is unable to be used to identify a student athlete.

7. Eligibility for certain Department of Education funding An institution is not eligible for any Federal funding made available by the Department of Education unless such institution satisfies the requirements of this section, including any requirement included in a regulation promulgated under subsection (e). An institution shall provide, to each student athlete who receives a grant-in-aid from such institution in relation to participation in a varsity sports team, education and training with respect to the following: Career preparation. Financial literacy. Mental health. Name, image, and likeness opportunities. Nutrition. Sexual violence prevention. Strength and conditioning. The process for transferring to another institution. For the 4-year period beginning on the date on which an individual graduates or otherwise separates from an institution in which such individual was enrolled, such institution shall pay all the medical costs of such individual in relation to any injury of such individual that occurred— while the individual was a student athlete at such institution; and as a result of participation in a varsity sports team. An institution that provides a grant-in-aid to a student athlete in relation to participation in a varsity sports team— may not reduce the amount of or cancel such grant-in-aid for any reason relating to— athletic ability or performance; contribution to team success; injury; physical or mental illness; or roster management decisions; and during the 10-year period beginning on the date on which such grant-in-aid is initially agreed to by such institution, shall make such grant-in-aid available to such student athlete for purposes of degree completion without regard to whether such student athlete continues to participate in a varsity sports team. The Secretary of Education may promulgate, in accordance with section 553 of title 5, United States Code, such regulations as may be necessary to carry out this section. This section shall apply with respect to Federal funding made available on or after the date that is 1 year after the date of the enactment of this Act.

8. Limitation on liability An institution, conference, or interstate intercollegiate athletic association that complies with this Act, including the amendments made by this Act, may not be treated as violating any law or regulation, and may not be subject to liability under any law or regulation, on the basis of— the adoption of, agreement to, enforcement of, or compliance with any rule or bylaw of an institution, conference, or interstate intercollegiate athletic association that limits or prohibits a student athlete from receiving compensation from an institution, conference, or interstate intercollegiate athletic association; a restriction on the eligibility, with respect to intercollegiate athletic competitions, of a student athlete who violates a rule of an institution, conference, or interstate intercollegiate athletic association that is reasonably contemplated under this Act; or compliance with any agreement, understanding, rule, or bylaw adopted by an institution, conference, or interstate intercollegiate athletic association that is reasonably contemplated under this Act.

9. Preemption No State or political subdivision of a State may enforce any law, regulation, rule, requirement, or standard that— conflicts with this Act, including any amendments made by this Act; or governs or regulates, with respect to intercollegiate athletic competitions or varsity sports teams, the compensation, employment status, or eligibility of a student athlete, including any law, regulation, rule, requirement, or standard that governs or regulates the commercial use of the name, image, or likeness of a student athlete. Notwithstanding any other provision of law, a student athlete may not be considered an employee of an institution, conference, or interstate intercollegiate athletic association, on the basis of the participation of such student athlete in a varsity sports team.