[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 414 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 414
To provide standards relating to compensation for the use of the names,
images, and likenesses of amateur intercollegiate athletes and to
provide protections for amateur intercollegiate athletes, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 24, 2021
Mr. Moran introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To provide standards relating to compensation for the use of the names,
images, and likenesses of amateur intercollegiate athletes and to
provide protections for amateur intercollegiate athletes, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Amateur Athletes Protection and
Compensation Act of 2021''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Agency contract.--The term ``agency contract'' means a
written agreement in which an amateur intercollegiate athlete
authorizes an amateur athlete representative to act on behalf
of the amateur intercollegiate athlete.
(2) AIAC.--The term ``AIAC'' means the Amateur
Intercollegiate Athletics Corporation established by section
8(a).
(3) Amateur athlete representative.--
(A) In general.--The term ``amateur athlete
representative'' means an individual who--
(i) enters into an agency contract with an
amateur intercollegiate athlete; or
(ii) directly or indirectly recruits or
solicits an amateur intercollegiate athlete for
the purpose of--
(I) entering into an agency
contract with the amateur
intercollegiate athlete;
(II) representing or attempting to
represent the amateur intercollegiate
athlete for the purpose of marketing
his or her athletics ability or
reputation for financial gain; or
(III) seeking to obtain any type of
financial gain or benefit from the
potential earnings of the amateur
intercollegiate athlete as a
professional athlete.
(B) Inclusions.--The term ``amateur athlete
representative'' includes--
(i) a certified contract advisor;
(ii) a financial advisor;
(iii) a marketing representative;
(iv) a brand manager; and
(v) any individual employed by or
associated with an individual described in any
of clauses (i) through (iv).
(C) Exclusions.--The term ``amateur athlete
representative'' does not include--
(i) the spouse, a parent, a sibling, a
grandparent, or a legal guardian of an amateur
intercollegiate athlete; or
(ii) an individual acting solely on behalf
of a professional sports team or a professional
sports organization.
(4) Amateur intercollegiate athlete.--The term ``amateur
intercollegiate athlete'' means an athlete who is or may be
recruited to attend, or is enrolled in, a 4-year degree-
granting institution of higher education.
(5) Amateur intercollegiate athletic event.--
(A) In general.--The term ``amateur intercollegiate
athletic event'' means a game, meet, competition,
banquet, practice, conditioning session, media session,
or any other event that has been organized or
authorized by an athletics representative of an
institution of higher education or by a national
amateur athletic association, regardless of whether
such event occurs on or off the campus of an
institution of higher education or during or outside
the season for competition.
(B) Inclusion.--The term ``amateur intercollegiate
athletic event'' includes travel to and from any event
described in subparagraph (A).
(6) Amateur intercollegiate athletic competition.--The term
``amateur intercollegiate athletic competition'' means any
varsity game, meet, or other competition between or among teams
sponsored by institutions of higher education.
(7) Athletics booster.--The term ``athletics booster''
means any individual or entity that, directly or indirectly,
through any other individual or entity or in any other manner--
(A) has provided 1 or more donations exceeding
$5,000, in the aggregate, to obtain season tickets for
any sport at an institution of higher education;
(B) has made 1 or more financial contributions
exceeding $5,000, in the aggregate, to the athletics
department or other athletics management organization
of an institution of higher education; or
(C) has assisted, or been requested by an employee
of an institution of higher educations to assist, in
the recruitment of an amateur intercollegiate athlete.
(8) Conference.--The term ``conference'' means any
organization or association that--
(A) has as members 2 or more institutions of higher
education;
(B) arranges championships and sets rules for
amateur intercollegiate athletic competition.
(9) Cost of attendance.--The term ``cost of attendance''--
(A) has the meaning given the term in section 472
of the Higher Education Act of 1965 (20 U.S.C. 1087ll);
and
(B) shall be calculated by the financial aid office
of an institution of higher education applying the same
standards, policies, and procedures for all students.
(10) Covered compensation.--
(A) In general.--The term ``covered compensation''
means any remuneration, in cash or in kind and
regardless of the date on which the remuneration is
provided, to an amateur intercollegiate athlete.
(B) Exclusion.--The term ``covered compensation''
does not include the payment or provision of any of the
following--
(i) grants-in-aid;
(ii) Federal Pell Grants and other State or
Federal grants unrelated and not awarded with
regard to participation in amateur
intercollegiate athletic events;
(iii) health insurance and costs of health
care, including health insurance and health
care costs wholly or partly self-funded by an
institution of higher education or a national
amateur athletic association;
(iv) disability and loss of value
insurance, including disability and loss of
value insurance that is wholly or partly self-
funded by an institution of higher education or
a national amateur athletic association;
(v) career counseling, job placement
services, and other guidance available to all
students at an institution of higher education;
and
(vi) payment of hourly wages and benefits
for work actually performed (and not for
participation in amateur intercollegiate
athletic event) at a rate commensurate with the
going rate in the locality of an institution of
higher education for similar work.
(11) Endorsement contract.--The term ``endorsement
contract'' has the meaning given the term in section 2 of the
Sports Agent Responsibility and Trust Act (15 U.S.C. 7801).
(12) Former amateur intercollegiate athlete.--The term
``former intercollegiate athlete'' means an amateur
intercollegiate athlete who is no longer eligible to
participate in amateur intercollegiate athletic competition.
(13) Grant-in-aid.--The term ``grant-in-aid''--
(A) 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--
(i) is paid or provided by an institution
of higher education to a student for the
student's undergraduate or graduate course of
study; and
(ii) is in an amount that does not exceed
the cost of attendance for such student at the
institution; and
(B) does not include covered compensation paid to
an individual who is an amateur intercollegiate athlete
or a former amateur intercollegiate athlete.
(14) Image.--The term ``image'', with respect to an amateur
intercollegiate athlete, means a photograph, video, or
computer-generated representation that identifies, is linked
to, or is reasonably linkable to the athlete.
(15) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term under section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001).
(16) Likeness.--The term ``likeness'' means--
(A) with respect to an amateur intercollegiate
athlete of a sport for which the athlete has a jersey
number, the jersey number associated with the athlete
and the sport in which the athlete participates at a
particular institution of higher education during the
period of the participation of the athlete in the sport
at the institution of higher education, if the jersey
number is accompanied by--
(i) a logo or color scheme that is clearly
associated with the institution of higher
education; or
(ii) some other means by which the jersey
number is clearly associated with the
particular athlete; and
(B) with respect to any amateur intercollegiate
athlete--
(i) the uniquely identifiable voice or
catch phrase of the athlete; or
(ii) any other trademark that identifies or
distinguishes the athlete.
(17) Name.--The term ``name'', with respect to an amateur
intercollegiate athlete, means--
(A) a combination of a first and last or family
name that identifies the athlete;
(B) a last or family name that identifies the
athlete; or
(C) a unique nickname that identifies the athlete.
(18) National amateur athletic association.--
(A) In general.--The term ``national amateur
athletic association'' means a not-for-profit
corporation, an association, or any other group
organized in the United States that--
(i) sponsors or arranges amateur
intercollegiate athletic competition between
institutions of higher education; and
(ii) sets common rules, standards,
procedures, or guidelines for the
administration of amateur intercollegiate
athletic competition at institutions of higher
education.
(B) Inclusions.--The term ``national amateur
athletic association'' includes--
(i) the National Collegiate Athletic
Association; and
(ii) each division and member conference of
the National Collegiate Athletic Association,
or of any other national amateur athletic
association, separately and collectively.
(19) Third party.--The term ``third party'' means an
individual or entity that--
(A) is not an athletics department or an athletics
booster of an institution of higher education; and
(B) is unaffiliated with an athletics department or
an athletics booster of an institution of higher
education.
(20) Unaffiliated.--With respect to 2 or more individuals
or entities, the term ``unaffiliated'' means that the
individuals or entities do not share interrelated operations,
common management, centralized control of labor relations, or
common ownership or financial control.
SEC. 3. COVERED COMPENSATION PROVIDED BY UNAFFILIATED THIRD PARTIES.
The provision of covered compensation to an amateur intercollegiate
athlete who is enrolled, or may in the future enroll, in an institution
of higher education--
(1) may only be promised, paid, and permitted if the
covered compensation is sourced from, and provided at the
discretion of, a third party; and
(2) shall not be promised, paid, or permitted to induce--
(A) the recruitment of an amateur intercollegiate
athlete to any institution of higher education or a
group of institutions of higher education; or
(B) an amateur intercollegiate athlete to continue
attending a particular institution of higher education.
SEC. 4. PROTECTIONS FOR AMATEUR INTERCOLLEGIATE ATHLETES.
(a) Representation Contracts.--A national amateur athletic
association or an institution of higher education may not punish or
prohibit the participation of an amateur intercollegiate athlete in an
amateur intercollegiate athletic event or amateur intercollegiate
athletic competition based on the amateur intercollegiate athlete
having entered into an agency contract with an amateur athlete
representative who has been certified by the AIAC in accordance with
section 8(b)(4).
(b) Endorsement Contracts.--
(1) In general.--Except as provided in paragraph (2), a
national amateur athletic association or an institution of
higher education may not punish or prohibit the participation
of an amateur intercollegiate athlete in an intercollegiate
athletic event or amateur intercollegiate athletic competition
based on the amateur intercollegiate athlete having entered
into an endorsement contract with a third party.
(2) Exceptions.--A national amateur athletic association or
an institution of higher education may prohibit the
participation of an amateur intercollegiate athlete in an
intercollegiate athletic event or amateur intercollegiate
athletic competition based on the amateur intercollegiate
athlete having entered into an endorsement contract with a
third party if the contract violates--
(A) the code of student conduct of the applicable
national amateur athletic association or institution of
higher education; or
(B) a rule established by the AIAC in accordance
with section 8(b)(2).
(3) Limitation.--During and immediately before and after an
amateur intercollegiate athletic event, an institution of
higher education may prohibit an amateur intercollegiate
athlete enrolled at such institution from engaging in
promotional or endorsement activities in connection with an
endorsement contract.
(4) Disclosures.--
(A) Enrolled athletes.--With respect to an amateur
intercollegiate athlete enrolled in an institution of
higher education who enters into an endorsement
contract, the amateur intercollegiate athlete shall,
not later than 7 days after entering into the
endorsement contract, provide to the institution of
higher education a copy of the endorsement contract.
(B) Recruited athletes.--With respect to an amateur
intercollegiate athlete who is or may be recruited to
attend, but not yet enrolled in, an institution of
higher education and who enters into an endorsement
contract, the amateur intercollegiate athlete shall,
before signing a letter of intent, provide to the
institution of higher education a copy of all current
and expired endorsement contracts entered into by the
amateur intercollegiate athlete.
(c) Rescission of Agreements.--An amateur intercollegiate athlete
who no longer participates in amateur intercollegiate athletic
competitions may rescind an endorsement contract with a remaining term
of more than 1 year--
(1) without being held liable for breach; and
(2) with no obligation to return payments received before
giving notice of the rescission.
(d) Professional Sports Drafts.--A national amateur athletic
association or an institution of higher education may not prohibit the
participation of an amateur intercollegiate athlete in an amateur
intercollegiate athletic event based on the amateur intercollegiate
athlete having entered into a professional sports draft, if the amateur
intercollegiate athlete--
(1) does not receive compensation, directly or indirectly,
from--
(A) a professional sports league;
(B) a professional sports team; or
(C) a sports agent;
(D) an amateur athlete representative; or
(E) any individual or entity affiliated with an
individual or entity described in any of subparagraphs
(A) through (D); and
(2) not later than 7 days after the completion of the
draft, declares his or her intent to resume participation in
amateur intercollegiate athletic competition.
(e) Grant-in-Aid Protection.--
(1) In general.--Subject to paragraph (2), an institution
of higher education shall honor the grant-in-aid of an amateur
intercollegiate athlete.
(2) Former amateur intercollegiate athletes.--An
institution of higher education shall continue to provide a
grant-in-aid covering full tuition, books, and fees to any
former amateur intercollegiate athlete who--
(A) received a full grant-in-aid while enrolled at
the institution of higher education; and
(B) has not completed his or her course of study
for an undergraduate degree as a result of pursuing a
career in professional sports.
(3) Revocation and reinstatement.--
(A) Revocation.--An institution of higher education
may revoke the grant-in-aid of an amateur
intercollegiate athlete or a former amateur
intercollegiate athlete who--
(i) transfers to another institution of
higher education; or
(ii) does not--
(I) remain in good standing,
determined in accordance with--
(aa) the rules established
by the AIAC under section
8(b)(2); or
(bb) in the case of an
amateur intercollegiate athlete
who is enrolled in an
institution of higher education
the standards of which are more
stringent than the standards
described in item (aa), the
standards of the institution of
higher education;
(II) comply with the code of
conduct of the institution of higher
education; and
(III) meet athletic program
standards and norms for participating
in mandatory team athletic activities.
(B) Limitations.--An institution of higher
education may not revoke the grant-in-aid of an amateur
intercollegiate athlete--
(i) on the basis of the amateur
intercollegiate athlete's athletics ability,
performance, or contribution to team success;
or
(ii) as a result of an injury or illness or
based on a physical or mental medical condition
of the amateur intercollegiate athlete.
(C) Reinstatement.--In the case of a revocation
under subparagraph (A), an institution of higher
education may reinstate grant-in-aid if the amateur
intercollegiate athlete concerned reestablishes good
standing.
(f) Limitation on Transfer Penalties.--An amateur intercollegiate
athletics association shall allow an amateur intercollegiate athlete in
any sport to transfer from one institution of higher education to
another not less than once without losing or delaying eligibility for
intercollegiate athletics if--
(1) not less than 7 days before transferring, the amateur
intercollegiate athlete provides to his or her athletic
director notice of intent to transfer; and
(2) the transfer does not occur during--
(A) the season of the sport of the amateur
intercollegiate athlete; or
(B) the 60-day period before the commencement of
such season.
(g) Medical Expenses.--Except as provided in paragraph (3), the
responsibilities of institutions of higher education with respect to
the health care coverage and medical expenses of amateur
intercollegiate athletes are as follows:
(1) Out-of-pocket expenses.--
(A) Institutions of higher education reporting
$20,000,000 or more.--An institution of higher
education that reports not less than $20,000,000 in
total annual athletics revenue to the Department of
Education during the academic year immediately
preceding the date of the last amateur intercollegiate
athletic competition of an amateur intercollegiate
athlete shall, during the 2-year period beginning on
the day after such last amateur intercollegiate
athletic competition, be financially responsible for
all out-of-pocket medical expenses, up to the
deductible, of the amateur intercollegiate athlete's
health care coverage for any injury or communicable
disease that was incurred or acquired while the amateur
intercollegiate athlete was participating in an amateur
intercollegiate athletic event or an amateur
intercollegiate athletic competition.
(B) Institutions of higher education reporting
$50,000,000 or more.--An institution of higher
education that reports not less than $50,000,000 in
total annual athletics revenue to the Department of
Education during the academic year immediately
preceding the date of the last amateur intercollegiate
athletic competition of an amateur intercollegiate
athlete shall, during the 4-year period beginning on
the day after such last amateur athletic competition,
be financially responsible for--
(i) providing or procuring the amateur
intercollegiate athlete's health care coverage
for any injury or communicable disease that was
incurred or acquired while the amateur
intercollegiate athlete was participating in an
amateur intercollegiate athletic event or an
amateur intercollegiate athletic competition;
and
(ii) all out-of-pocket medical expenses, up
to the deductible, for medical care for such
injury or disease.
(2) Second opinions.--During the enrollment of an amateur
intercollegiate athlete in an institution of higher education
and continuing through the 2-year period described in
subparagraph (A) of paragraph (1) or the 4-year period
described in subparagraph (B) of that paragraph, as applicable,
an institution of higher education shall be financially
responsible for the expense of obtaining, for amateur
intercollegiate athletes and former amateur intercollegiate
athletes, medical second opinions independent from the
institution of higher education.
(3) Exception.--The responsibilities under paragraphs (1)
and (2) shall not apply to an institution of higher education
in the case of an amateur intercollegiate athlete who transfers
out of the institution of higher education to continue
participation in intercollegiate athletics elsewhere.
SEC. 5. EMPLOYMENT MATTERS.
Notwithstanding any other provision of Federal or State law, an
amateur intercollegiate athlete shall not be considered an employee of
an institution of higher education, a conference, or a national amateur
athletic association based on the amateur intercollegiate athlete's
participation in amateur intercollegiate athletic events or amateur
intercollegiate athletic competitions.
SEC. 6. TRANSPARENCY.
(a) Disclosures.--
(1) In general.--An institution of higher education shall
make the following legally binding disclosures to each amateur
intercollegiate athlete before he or she commits to enroll in
or attend the institution of higher education:
(A) The amount and duration of grant-in-aid the
institution of higher education will provide to the
amateur intercollegiate athlete, relative to the most
recent cost of attendance, for each academic school
year and each summer session.
(B) The amount and duration of grant-in-aid the
institution of higher education will provide to assist
the amateur intercollegiate athlete with undergraduate
degree completion and graduate degree completion
following the expiration of the intercollegiate
athletics eligibility of the amateur intercollegiate
athlete.
(C) The percentage of comprehensive medical
coverage required, including any required coverage to
participate in intercollegiate athletics or to enroll
as a student, that will be paid by the institution of
higher education during the period of intercollegiate
athletics eligibility of the amateur intercollegiate
athlete.
(D) The percentage of any out-of-pocket sports-
related medical expenses including deductibles, copays,
and coinsurance, that the institution of higher
education will pay during the period of intercollegiate
athletics eligibility of the amateur intercollegiate
athlete, and the period for which such expenses will be
covered after such eligibility expires. Differences
between in-network and out-of-network expenses shall be
stated.
(E) Whether or not the institution of higher
education will pay for a disability insurance policy to
cover the maximum available future loss of earnings
benefit based on market rates of similarly situated
amateur intercollegiate athletes.
(2) Rule of construction.--Nothing in this subsection shall
be construed to require an institution of higher education to
provide a benefit described in any of subparagraphs (A) through
(E) of paragraph (1) unless otherwise required by this Act.
(b) Funding Transparency.--Section 485(e)(1) of the Higher
Education Act of 1965 (20 U.S.C. 1092(e)(1)) is amended--
(1) in subparagraph (E), by striking ``and'' after the
semicolon;
(2) in subparagraph (F), by striking the period and
inserting a semicolon; and
(3) by adding at the end of the following:
``(G) the total compensation of--
``(i) the athletic director of the
institutions;
``(ii) each head coach and each assistant
coach of the institution, by sport;
``(H) the amount of Federal funds received by the
institution of higher education; and
``(I) the amount of State funds received by the
institution of higher education.''.
SEC. 7. INSTITUTION REQUIREMENTS FOR FEDERAL STUDENT LOAN PROGRAM.
Section 487(a) of the Higher Education Act of 1965 (20 U.S.C.
1094(a)) is amended by adding at the end the following:
``(30)(A) The institution will--
``(i) comply with the requirements of sections 3,
4, 5, and 6 of the Amateur Athletes Protection and
Compensation Act of 2021; and
``(ii) refrain from providing (or affecting or
influencing any third party to provide)--
``(I) any covered compensation to any
amateur intercollegiate athlete; or
``(II) any financial aid, participation
benefit, licensing revenue, or other benefit or
payment to an amateur intercollegiate athlete
for use of the athlete's name, image, or
likeness.
``(B) In this paragraph, the terms `amateur intercollegiate
athlete', `covered compensation', `image', `likeness', `name',
and `third party' have the meanings given the terms in section
2 of the Amateur Athletes Protection and Compensation Act of
2021.''.
SEC. 8. ESTABLISHMENT OF THE AMATEUR INTERCOLLEGIATE ATHLETICS
CORPORATION.
(a) Establishment.--There is established a government corporation,
to be known as the ``Amateur Intercollegiate Athletics Corporation'',
which shall not for any purpose be an agency or instrumentality of the
United States Government and shall be subject to the provisions of this
section.
(b) Purposes.--The purposes of the AIAC are as follows:
(1) To serve as a clearinghouse for best practices with
respect to the rights and protections of amateur
intercollegiate athletes who enter into agency contracts and
endorsement contracts, including by providing guidance to
amateur intercollegiate athletes concerning such contracts.
(2) To establish rules to enforce this Act and impose
fines, penalties, and sanctions on amateur athlete
representatives, institutions of higher education, conferences,
and national amateur athletic associations that violate such
rules.
(3) To coordinate with the Federal Trade Commission to
promulgate, administer, and enforce standards for reviewing and
certifying endorsement contracts entered into by amateur
intercollegiate athletes, including competency and ethical
standards, that apply to--
(A) national amateur athletic associations;
(B) conferences;
(C) amateur intercollegiate athletes;
(D) institutions of higher education; and
(E) amateur athlete representatives.
(4) To establish a formal certification process for amateur
athlete representatives by which the AIAC shall--
(A) determine the eligibility of an individual to
serve as an amateur athlete representative;
(B) periodically verify an amateur athlete
representative's continued eligibility and compliance
with this Act and the best practices, rules, and
competency and ethical standards established under this
subsection; and
(C) in the case of noncompliance with this Act or
any such best practice, rule, or competency or ethical
standard, revoke a certification issued in accordance
with this paragraph.
(5) To provide recommendations to institutions of higher
education, national amateur athletic associations, and
conferences on protecting amateur intercollegiate athletes from
unscrupulous amateur athlete representatives.
(6) To investigate disputes with respect to agency
contracts and endorsement contracts entered into by amateur
intercollegiate athletes, including--
(A) verifying that amateur athlete representatives
involved in the endorsement contract process have acted
in the best interests of amateur intercollegiate
athletes; and
(B) monitoring compliance with, and making
determinations and findings concerning violations of,
this Act.
(7) To provide to amateur intercollegiate athletes a
process for the swift resolution of conflicts concerning agency
contracts and endorsement contracts, including by providing a
neutral arbitrator for any case in which an amateur
intercollegiate athlete is the complaining party.
(8) To ensure institutions of higher education and covered
athletic organizations are complying with agency contract and
endorsement contract rules set forth by the AIAC in accordance
with this section.
(c) Membership.--
(1) Eligibility.--Eligibility for membership in the AIAC
shall be as provided in the constitution and bylaws of the
AIAC.
(2) Required provisions for representation.--In its
constitution and bylaws, the AIAC shall establish and maintain
provisions with respect to its governance and the conduct of
its affairs for the reasonable representation of--
(A) amateur intercollegiate athletes;
(B) administrators of institutions of higher
education, including directors of athletics;
(C) administrators of national amateur athletic
associations;
(D) athletic conference administrators;
(E) professionals with expertise in sports
marketing, contracting, and public relations; and
(F) individuals unaffiliated with any national
amateur athletic association who, in the judgment of
the board of directors of the AIAC, represent the
interest of providing oversight of the activities of
the AIAC.
(d) Board of Directors.--
(1) In general.--The AIAC shall be governed by a board of
directors comprised of 15 voting members.
(2) Representation.--
(A) In general.--Not less than \1/3\ of the
membership of the board of directors of the AIAC shall
be composed of current or former amateur
intercollegiate athletes.
(B) Current amateur intercollegiate athletes.--Not
less than 20 percent of the membership of the board of
directors of the AIAC shall be composed of amateur
intercollegiate athletes who are--
(i) enrolled in a 4-year degree-granting
institution of higher education; and
(ii) actively engaged in amateur
intercollegiate athletic events.
(e) Powers.--
(1) Constitution and bylaws.--The AIAC shall adopt a
constitution and bylaws.
(2) General corporate powers.--The AIAC may--
(A) establish and maintain offices to conduct the
affairs of the AIAC;
(B) enter into contracts;
(C) accept gifts, legacies, and devises in
furtherance of its corporate purposes;
(D) acquire, own, lease, encumber, and transfer
property as necessary to carry out the purposes of the
AIAC;
(E) borrow money, issue instruments of
indebtedness, and secure its obligations by granting
security interests in its property;
(F) publish a magazine, newsletter, and other
publications consistent with its corporate purposes;
(G) approve and revoke membership in the AIAC; and
(H) conduct any other activity necessary and proper
to carry out the purposes of the AIAC.
(3) Subpoena power.--The AIAC shall have subpoena power and
shall adopt rules that will result in the AIAC, in response to
appropriate requests, issuing subpoenas duces tecum and ad
testificandum and compelling deposition testimony at the
request of a national amateur athletic association.
(f) Restrictions.--
(1) Profit and stock.--The AIAC may not engage in business
for profit or issue stock.
(2) Political activities.--The AIAC shall be nonpolitical
and may not promote the candidacy of an individual seeking
public office.
(g) Headquarters, Principal Office, and Meetings.--The AIAC shall
maintain its principal office and national headquarters in a location
in the United States decided by the AIAC. The AIAC may hold its annual
and special meetings in the places decided by the AIAC.
(h) Service of Process.--As a condition to the exercise of any
power or privilege granted by this chapter, the AIAC shall have a
designated agent to receive service of process for the AIAC. Notice to
or service on the agent, or mailed to the business address of the
agent, is notice to or service on the AIAC.
(i) Report.--Not less frequently than annually, the AIAC shall
submit to the Committee on Commerce, Transportation, and Science of the
Senate and the Committee on Energy and Commerce of the House of
Representatives a report that includes--
(1) the number of disputes investigated by the AIAC in the
preceding year pursuant to subsection (b)(6);
(2) the number of such disputes filed in the preceding
year; and
(3) any recommendations to improve the endorsement contract
process.
SEC. 9. ENFORCEMENT.
(a) Unfair or Deceptive Act or Practice.--A violation of this Act
shall be treated as a violation of a rule defining an unfair or
deceptive act or practice prescribed under section 18(a)(1)(B) of the
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(b) Actions by the Commission.--The Federal Trade Commission shall
enforce this Act in the same manner, by the same means, and with the
same jurisdiction, powers, and duties as though all applicable terms
and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et
seq.) were incorporated into and made a part of this Act.
SEC. 10. ROLE OF NATIONAL AMATEUR ATHLETIC ASSOCIATIONS.
A national amateur athletic association may establish rules,
consistent with this Act and the rules developed under section 8(b)(2),
and enforce such rules by--
(1) declaring ineligible for amateur intercollegiate
athlete competition an amateur intercollegiate athlete who
receives payments in violation of such rules; and
(2) withholding 1 or more revenue distributions from an
institution of higher education that makes payments in
violation of such rules.
SEC. 11. REPORTING.
(a) Biennial Report.--Not later than 180 days after the date of
enactment of this Act, and biennially thereafter, the head of each
national amateur athletic association shall submit to the Committee on
Commerce, Science, and Transportation of the Senate and the Committee
on Energy and Commerce of the House of Representatives a report that
includes--
(1) a summary of the systemic issues faced by the national
amateur athletic association relating to compliance with this
Act;
(2) a summary of the trends that are developing among
national amateur athletic associations, conferences, and
institutions of higher education in response to the
prohibitions under this Act; and
(3) recommendations for improvements to intercollegiate
athletics that would improve the health, safety, and
educational opportunities of amateur intercollegiate athletes.
(b) Investigation and Report.--Not later than 5 years after the
date of enactment of this Act and once every 5 years thereafter, the
Comptroller General of the United States shall--
(1) conduct an investigation to assess compliance with this
Act; and
(2) submit to Congress a report that includes--
(A) a summary of the investigation conducted under
paragraph (1); and
(B) recommendations for improvements to
intercollegiate athletics that would improve the
health, safety, and educational opportunities of
amateur intercollegiate athletes.
SEC. 12. LIMITATION OF LIABILITY.
A national amateur athletic association, a conference, or an
institution of higher education that complies with the requirements
under this Act shall not be subject to liability, based on action taken
by the national amateur athletic association, conference, or
institution of higher education before the date of enactment of this
Act, under--
(1) any Federal or State statute relating to trade or
competition; or
(2) any Federal or State statute relating to tortious
interference based on concepts of unfair competition.
SEC. 13. PREEMPTION.
No State or political subdivision of a State may establish or
continue in effect any law or regulation that governs or regulates the
compensation, intellectual property rights, endorsement contracts,
employment status, or eligibility for an amateur intercollegiate
athletic competition of any amateur intercollegiate athlete, including
any provision that governs or regulates the commercial use of the name,
image, or likeness of an amateur intercollegiate athlete.
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