S3266-119

What This Bill Does

The USMMA Athletics Act authorizes the Transportation Secretary to establish a wholly United States-owned New York nonprofit corporation dedicated to Merchant Marine Academy athletics. Its uncompensated board may include Transportation employees, but federal directors may comprise no more than one-third, serve only in an oversight and advisory role, and may not control daily operations; the Secretary must publish their authorization in the Federal Register. The corporation may enter contracts and cooperative agreements, including sole-source arrangements, acquire goods and services, arrange travel, lease Academy property not immediately needed for up to five years, charge fees, and receive donations, NCAA or conference distributions, game guarantees, ticket revenue, licenses, and other nonappropriated support. It may receive transferred nonappropriated-fund assets and liabilities other than real property, and the Academy may accept its funds, supplies, and services. Corporate personnel are not federal employees, and the United States is not liable for corporate obligations. Integrity safeguards restrict support tied to wagering, tobacco, controlled substances, pornography, firearms, or conflicts with Academy values. With approval, the corporation may manage trademarks, licensing, marketing, advertising, and sponsorships. Receipts remain available until expended for athletics. Separately, Transportation may designate and license Academy marks, recover registration and program costs, apply excess receipts to athletics and recruiting, and must issue implementation guidance within 180 days.

Who Benefits and How

Merchant Marine Academy athletes, coaches, recruits, and athletic programs gain a dedicated vehicle for donations, commercial receipts, contracts, travel, facilities access, and retained revenue. The Academy can accept corporate support and use excess federal trademark receipts for athletics and recruiting. Donors, sponsors, athletic conferences, and licensing partners gain a formal counterpart for contributions and commercial arrangements. Transportation and Academy leaders gain oversight rights, ownership of the corporation, integrity controls, and a structured way to separate nonappropriated athletic operations from ordinary federal accounts.

Who Bears the Burden and How

Transportation officials must establish and oversee the corporation, authorize federal directors publicly, approve sensitive commercial uses, administer property leases and transfers, protect federal interests, designate marks, account for receipts, and issue guidance within 180 days. Board members serve without compensation other than reasonable meeting expenses. The corporation must comply with federal and New York nonprofit rules, preserve financial and program integrity, accept no federal liability backstop, and keep support within authorized athletics purposes. Vendors may face less competition when sole-source contracts are used, and Academy property temporarily leased to the corporation is unavailable for other immediate uses.

Key Provisions

• Authorizes a wholly federal-owned New York nonprofit corporation to support Merchant Marine Academy athletics.
• Limits federal employee directors to one-third of the board and bars their day-to-day control.
• Authorizes contracts, cooperative agreements, sole-source awards, short property leases, fees, donations, and athletic receipts.
• Provides for transfer and acceptance of nonappropriated assets and support while shielding the United States from corporate liabilities.
• Restricts support and sponsorships that conflict with program-integrity standards.
• Authorizes trademark licensing and retains receipts for athletics and recruiting after program costs.
• Requires Transportation implementation guidance within 180 days.