,,ii #aahth ,,congress #ast ,session ,s4 #bdie ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #be1 #bjbc,mr4 ,manchin 7for himself and ,mr4 ,tuberville7 introduced the following bill2 which was read twice and referred to the ,committee on ,commerce1 ,science1 and ,transportation ,a ,,bill ,to protect student athletes1 ensure fair competition and compensation1 and preserve intercollegiate athletics1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,protecting ,athletes1 ,schools1 and ,sports ,act of #bjbc4 #b4 ,definitions ,in this ,act3 7#a7 ,agent ,the term agent means an athlete agent 7as defined in section #b of the ,sports ,agent ,responsibility and ,trust ,act 7#ae ,u4,s4,c4 #ghja774 7#b7 ,athletic department ,the term athletic department means a department at an institution of higher education that sponsors or conducts #a or more varsity intercollegiate athletics programs in which student athletes enrolled at the institution of higher education compete in athletic contests against student athletes enrolled at another institution of higher education4 7#c7 ,booster ,the term booster means any individual or entity that has-- 7,a7 provided a donation-- 7i7 to an institution of higher education to obtain season tickets for any sport2 or 7ii7 to support the athletics program at an institution of higher education2 7,b7 participated in or has been a member of an organization promoting in any way the varsity intercollegiate athletics programs of an institution of higher education2 or 7,c7 made a financial contribution to the athletic department1 athletics foundation1 collective1 or booster organization affiliated with an institution of higher education4 7#d7 ,compensation ,the term compensation-- 7,a7 means any monetary or in-kind payment to a student athlete2 and 7,b7 does not include-- 7i7 grant-in-aid2 7ii7 funds from any student assistance fund or academic enhancement fund affiliated with an institution of higher education that are available and distributed without regard to athletic ability for the purposes of assisting student athletes in meeting their financial needs1 improving the welfare of student athletes1 providing academic support for student athletes1 or recognizing the academic achievement of student athletes1 including by providing-- 7,i7 postgraduate scholarships2 7,,ii7 school supplies2 7,,iii7 benefits1 such as travel expenses for student athletes1 clothing1 and magazine subscriptions2 or 7,,iv7 payments incidental to athletics participation1 such as the ,national ,collegiate ,athletic ,association cost-of-attendance stipend2 7iii7 awards for participation or achievement in intercollegiate athletics1 such as qualifying for a bowl game1 or payments for performance in the ,olympics2 7iv7 awards for future educational opportunities2 7v7 premiums paid on behalf of a student athlete for loss-of-value insurance or disability insurance2 or 7vi7 travel funds for members of a student athlete's immediate family to attend sporting events of the student athlete4 7#e7 ,conference ,the term conference means an organization that-- 7,a7 has as members #b or more institutions of higher education2 7,b7 arranges or conducts season-long intercollegiate athletic events to determine1 among its members1 a champion in a particular intercollegiate sport2 and 7,c7 sets rules for varsity intercollegiate sports competition among its members4 7#f7 ,grant-in-aid ,the term grant-in-aid means-- 7,a7 tuition1 room1 board1 books1 fees1 and personal expenses paid or provided by an institution of higher education up to the full cost of attendance2 7,b7 ,federal ,pell ,grants and other ,state and ,federal grants unrelated to1 and not awarded with respect to1 participation in varsity intercollegiate sports competition2 7,c7 health insurance and the costs of health care wholly or partly self-funded by the ,national ,collegiate ,athletic ,association1 a conference1 or an institution of higher education2 7,d7 disability and loss of value insurance that is wholly or partly self-funded by the ,national ,collegiate ,athletic ,association1 a conference1 or an institution of higher education2 and 7,e7 career counseling or job placement services available to all students at an institution of higher education4 7#g7 ,immediate family ,with respect to a student athlete1 the term immediate family means the #a or more parents1 guardians1 siblings1 aunts1 uncles1 and grandparents of the student athlete4 7#h7 ,institution of higher education ,the term institution of higher education means an institution of higher education as defined in section #aja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja74 7#i7 ,name1 image1 or likeness ,the term name1 image1 or likeness means a symbol1 word1 given name1 surname1 nickname1 design1 or image 7such as a photograph or video7 that readily identifies a student athlete4 7#aj7 ,name1 image1 or likeness contract ,the term name1 image1 or likeness contract means an agreement under which a student athlete receives compensation from a third party for the use of the publicity received by1 or the reputation1 following1 or fame of1 the student athlete4 7#aa7 ,national ,collegiate ,athletic ,association ,the term ,national ,collegiate ,athletic ,association means the ,national ,collegiate ,athletic ,association that functions as an authority for intercollegiate athletics in the ,united ,states 7or a successor organization74 7#ab7 ,prospective student athlete ,the term prospective student athlete means an individual who-- 7,a7 is attending1 and has not yet graduated from1 an elementary school or a secondary school 7as such terms are defined in section #haja of the ,elementary and ,secondary ,education ,act of #aife 7#bj ,u4,s4,c4 #ghja772 and 7,b7 participates in a sports program4 7#ac7 ,student athlete ,the term student athlete means an individual who engages or is eligible to engage in intercollegiate athletics4 7#ad7 ,third party ,the term third party means-- 7,a7 a person1 other than an institution of higher education or a student athlete1 that-- 7i7 offers1 solicits1 or enters into a name1 image1 or likeness contract2 or 7ii7 offers or provides name1 image1 or likeness compensation2 7,b7 an entity that is affiliated with an institution of higher education1 yet operates independently of the institution of higher education1 that generates funding to support opportunities for student athletes to enter into name1 image1 or likeness contracts2 or 7,c7 an entity that is1 refers to itself as1 or is colloquially referred to as1 a collective4 7#ae7 ,transfer portal ,the term transfer portal means a process managed by the ,national ,collegiate ,athletic ,association that facilitates the transfer of student athletes from one institution of higher education to another institution of higher education for the purpose of engaging1 or being able to engage in the future1 in intercollegiate athletics4 7#af7 ,varsity intercollegiate athletics program ,the term varsity intercollegiate athletics program means a sport played at the intercollegiate level1 administered by an athletic department1 for which eligibility requirements for participation by student athletes are established by the ,national ,collegiate ,athletic ,association or a conference4 7#ag7 ,varsity intercollegiate sports competition ,the term varsity intercollegiate sports competition means a competition-- 7,a7 between or among student athletes2 and 7,b7 involving #b or more varsity intercollegiate athletics programs sponsored by different institutions of higher education4 #c4 ,third parties 7a7 ,in general ,a third party may only promote an intercollegiate athletics program1 assist with recruiting1 or assist with providing benefits to student athletes or the family members of student athletes if the third party is formally associated with an institution of higher education through a written contract pursuant to the normal policies of the institution of higher education4 7b7 ,inducements 7#a7 ,in general ,an individual1 booster1 or third party may not offer or provide a prospective student athlete or a student athlete with any compensation or benefit that is intended to induce the prospective student athlete or student athlete to enroll in or transfer to a particular institution of higher education4 7#b7 ,rule of construction ,nothing in this subsection may be construed to prohibit an individual1 booster1 or third party from offering or providing a bona fide grant that may be used by a prospective student athlete or student athlete solely for the payment of tuition1 room and board1 or other fees charged by an institution of higher education for enrollment in an academic program offered by the institution of higher education4 7c7 ,equal representation ,a third party associated with an institution of higher education shall offer equal representation of1 and provide equal services to1 all student athletes in all intercollegiate athletics programs at the institution of higher education4 #d4 ,transfer portal 7a7 ,role of ,national ,collegiate ,athletic ,association ,the ,national ,collegiate ,athletic ,association shall set forth rules relating to the transfer portal1 including with respect to the #a or more periods during which a student athlete may formally notify the institution of higher education in which the student athlete is enrolled of his or her intent to transfer to another institution of higher education4 7b7 ,effect of transfer 7#a7 ,in general ,a student athlete enrolled at an institution of higher education who transfers to another institution of higher education shall be ineligible to participate in any athletic competition sponsored by the ,national ,collegiate ,athletic ,association during the academic year1 beginning at the start of the fall semester and ending at the end of an institution of higher education's final summer session1 in which the student athlete entered the transfer portal4 7#b7 ,waiver for qualifying events or circumstances 7,a7 ,in general ,the ,national ,collegiate ,athletic ,association may waive the application of paragraph 7#a7 in the case of a student athlete-- 7i7 who has completed #c years of athletics eligibility2 7ii7 whose family member has died or has been diagnosed with a terminal illness2 7iii7 whose primary position coach or head coach has voluntarily or involuntarily left the institution of higher education in which the student athlete was enrolled before the date on which the student athlete entered the transfer portal2 or 7iv7 who meets any other criteria1 as determined by the ,national ,collegiate ,athletic ,association4 7,b7 ,criteria 7i7 ,in general ,the ,national ,collegiate ,athletic ,association may grant a waiver under subparagraph 7,a7 only if1 not later than #cj days after the date on which a qualifying event or circumstance described in that subparagraph occurs1 the student athlete concerned provides to the athletic department of his or her institution of higher education written documentation of the event or circumstance4 7ii7 ,verification ,the ,national ,collegiate ,athletic ,association shall establish procedures for verifying the validity of the documentation provided under clause 7i74 7c7 ,certain other rules and regulations ,this section shall supersede any ,national ,collegiate ,athletic ,association rule or regulation related to transfer eligibility that is in effect on the date of the enactment of this ,act4 #e4 ,valid name1 image1 or likeness contract 7a7 ,in general ,a student athlete may only enter into a name1 image1 or likeness contract that-- 7#a7 is in writing and signed by each party2 7#b7 includes the names of each party2 7#c7 outlines the scope of work to be performed by the student athlete2 7#d7 states the timeline for the performance of such work2 7#e7 states the compensation to be provided to the student athlete2 7#f7 describes the duration of the contract2 7#g7 conforms with the format of a standard contract template developed by the ,federal ,trade ,commission2 7#h7 takes effect after the date on which the student athlete enrolls in an institution of higher education and begins participation in intercollegiate athletics2 and 7#i7 is consistent with this ,act4 7b7 ,duration ,a student athlete may only enter into a name1 image1 or likeness contract if-- 7#a7 the student athlete is enrolled at an institution of higher education during an academic term for which classes have begun2 and 7#b7 the duration of the contract does not extend beyond the period during which the student athlete is enrolled at an institution of higher education4 7c7 ,student athlete participation in intercollegiate athletics 7#a7 ,in general ,except as provided in paragraph 7#b71 the ,national ,collegiate ,athletic ,association or an institution of higher education may not prohibit a student athlete from participating in intercollegiate athletics based on the student athlete having entered into a name1 image1 or likeness contract4 7#b7 ,limitations on name1 image1 or likeness contracts 7,a7 ,contracts with certain persons and entities ,notwithstanding paragraph 7#a71 the ,national ,collegiate ,athletic ,association or an institution of higher education may prohibit a student athlete who is enrolled at the institution from participating in intercollegiate athletics if the student athlete has entered into a name1 image1 or likeness contract with any person or entity related to or associated with the development1 promotion1 production1 distribution1 wholesaling1 or retailing of-- 7i7 adult entertainment1 sexually suggestive products1 or sex-oriented products1 services1 conduct1 imagery1 or inferences2 7ii7 alcohol products2 7iii7 a casino or gambling1 including sports betting and betting in connection with a video game or online game1 or on a mobile device2 7iv7 tobacco1 marijuana1 or electronic smoking products and devices2 7v7 pharmaceuticals2 7vi7 any dangerous or controlled substance2 7vii7 drug paraphernalia2 7viii7 weapons1 including firearms and ammunition2 or 7ix7 any product1 substance1 or method that is prohibited in competition by the ,national ,collegiate ,athletic ,association1 a conference1 or any other organization governing varsity intercollegiate sports competition4 7,b7 ,apparel ,the ,national ,collegiate ,athletic ,association or an institution of higher education may prohibit a student athlete from-- 7i7 wearing any item of clothing1 shoes1 or other gear with the insignia of any entity while wearing any athletic gear or uniform provided by an institution of higher education or otherwise competing in a varsity intercollegiate sports competition or athletic event sponsored by the institution of higher education at which the student athlete is enrolled2 and 7ii7 using1 without the express permission of the institution of higher education at which the student athlete is enrolled1 the insignia1 logo1 or other intellectual property of the institution of higher education for any purpose4 7#c7 ,institutions of higher education ,an institution of higher education may not enter into an advertising or promotional contract with a person or entity described in paragraph 7#b77;,a7 if the institution of higher education has prohibited an enrolled student athlete from participating in intercollegiate athletics for having entered into a name1 image1 or likeness contract with such person or entity4 7d7 ,prohibition ,an institution of higher education shall not-- 7#a7 prohibit a student athlete from entering into a name1 image1 or likeness contract that complies with this ,act1 including through a rule1 standard1 or policy that affects the eligibility of the student to receive athletically related student aid 7as defined in section #dhe7;e77#h7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajib7;e7772 or 7#b7 provide or arrange compensation for the student athlete for the use of the name1 image1 or likeness of the student or for participation in intercollegiate athletics4 #f4 ,transparency 7a7 ,student athletes ,not later than #cj days after entering into a name1 image1 or likeness contract1 a student athlete shall disclose to the institution of higher education at which the student athlete is enrolled-- 7#a7 the existence of the contract2 7#b7 the names of the parties to the contract2 7#c7 the scope of work to be performed by the student athlete under the contract and the corresponding timeline for such work2 7#d7 the compensation to be provided to the student athlete2 and 7#e7 the duration of the contract4 7b7 ,agents ,an agent representing a student athlete with respect to a name1 image1 or likeness contract shall-- 7#a7 register with the ,federal ,trade ,commission2 and 7#b7 disclose to the ,federal ,trade ,commission-- 7,a7 the fee and compensation structure of the agent2 7,b7 the scope of work to be performed by the agent2 and 7,c7 the duration of the contract4 7c7 ,third parties ,each third party shall-- 7#a7 register with the ,federal ,trade ,commission2 and 7#b7 disclose to the ,federal ,trade ,commission and to each institution of higher education that is a party to a written contract with the third party-- 7,a7 the existence of the contract2 7,b7 the names of the parties to the contract2 7,c7 the scope of work to be performed by the student athlete under the contract and the corresponding timeline for such work2 7,d7 the compensation to be provided to the student athlete2 and 7,e7 the duration of the contract4 7d7 ,individuals and boosters ,any individual or booster seeking to enter into a name1 image1 or likeness contract shall-- 7#a7 register with the ,federal ,trade ,commission2 and 7#b7 not later than #g days before the date on which a name1 image1 or likeness contract is executed1 disclose to the ,federal ,trade ,commission-- 7,a7 the existence of the contract2 7,b7 the names of the parties to the contract2 7,c7 the scope of work to be performed by the student athlete under the contract and the corresponding timeline for such work2 7,d7 the compensation to be provided to the student athlete2 and 7,e7 the duration of the contract4 7e7 ,publication of name1 image1 or likeness data ,not later than #ahj days after the date of the enactment of this ,act1 the ,federal ,trade ,commission shall establish a publicly accessible internet website on which the ,federal ,trade ,commission shall publish and frequently update anonymized and aggregated name1 image1 or likeness data4 7f7 ,rule of construction ,the disclosure of a name1 image1 or likeness contract to an institution of higher education or the ,national ,collegiate ,athletic ,association may not be construed as an approval of the name1 image1 or likeness contract by the institution of higher education or the ,national ,collegiate ,athletic ,association with respect to the legal requirements or the fairness of the economic terms of the name1 image1 or likeness contract4 #g4 ,additional protections for student athletes 7a7 ,educational resources 7#a7 ,national ,collegiate ,athletic ,association ,the ,national ,collegiate ,athletic ,association or its designee shall develop and make available to student athletes educational resources and information on the rights of student athletes with respect to name1 image1 or likeness contracts and related legal and regulatory matters4 7#b7 ,institutions of higher education ,each institution of higher education shall develop and make available to student athletes educational resources and information consistent with the educational resources and information developed under paragraph 7#a74 7b7 ,financial literacy ,the ,national ,collegiate ,athletic ,association or its designee shall develop1 maintain1 and conduct financial literacy and life skills programming for student athletes1 which shall include-- 7#a7 information relating to financial aid and debt management2 7#b7 recommended model budgets for student athletes based on the estimated cost of attendance for the academic year and any grant-in-aid received by the student athlete2 and 7#c7 information relating to the potential tax implications of entering into a name1 image1 or likeness contract4 7c7 ,travel and medical expenses 7#a7 ,trust fund 7,a7 ,in general ,the organizers of any revenue-generating collegiate-level tournament or playoff shall deposit not less than #a percent of annual gross revenues from such events into a trust fund 7referred to in this subsection as the ,fund71 to be managed in a manner determined by the ,national ,collegiate ,athletic ,association1 for the purpose of covering the costs of-- 7i7 in the case of a student athlete who is a dependent1 travel to sporting events for members of the immediate family of the student athlete2 and 7ii7 in the case of a former student athlete1 all out-of-pocket medical expenses of such athlete that are not covered under paragraph 7#b77;,b71 until the later of-- 7,i7 the date on which such athlete attains the age of #bh years2 or 7,,ii7 #h years after the date on which the eligibility of such athlete for intercollegiate athletics expired4 7,b7 ,eligibility of former student athletes ,to be eligible to receive amounts from the ,fund under subparagraph 7,a77ii71 a former student athlete shall-- 7i7 not later than #g days after the date on which the last regular season of the sport of such athlete ends1 complete an exit physical examination with the institution of higher education2 and 7ii7 graduate from the institution of higher education at which such was enrolled during such last regular season4 7#b7 ,medical expenses 7,a7 ,responsibility of institution of higher education ,to provide health care coverage for student athletes ,an institution of higher education shall provide or procure health care coverage for each student athlete enrolled at the institution of higher education during any academic year in which the student athlete participates in intercollegiate athletics4 7,b7 ,payment of out-of-pocket medical expenses for student athletes and former student athletes 7i7 ,institutions reporting less than #bj1jjj1jjj ,an institution of higher education that reports less than #bj1jjj1jjj in total annual athletics revenue to the ,department of ,education during an academic year shall be1 during the enrollment of a student athlete at the institution of higher education1 financially responsible for all out-of-pocket medical expenses of the student athlete's health care coverage for any injury or communicable disease incurred or acquired while the student athlete was participating in an intercollegiate athletic event or a varsity intercollegiate athletic competition4 7ii7 ,institutions reporting #bj1jjj1jjj or more ,an institution of higher education that reports not less than #bj1jjj1jjj in total annual athletics revenue to the ,department of ,education during an academic year shall be1 during the enrollment of a student athlete at the institution of higher education and the #b-year period beginning on the day after the last varsity intercollegiate sports competition of the student athlete1 financially responsible for all out-of-pocket medical expenses of the student athlete's health care coverage for any injury or communicable disease that was incurred or acquired while the student athlete was participating in an intercollegiate athletic event or a varsity intercollegiate athletic competition4 7iii7 ,institutions reporting #ej1jjj1jjj or more ,an institution of higher education that reports not less than #ej1jjj1jjj in total annual athletics revenue to the ,department of ,education during an academic year shall be1 during the enrollment of a student athlete at the institution of higher education and the #d-year period beginning on the day after the last varsity intercollegiate sports competition of the student athlete1 financially responsible for all out-of-pocket medical expenses of the student athlete's health care coverage for any injury or communicable disease incurred or acquired while the student athlete was participating in an intercollegiate athletic event or varsity intercollegiate sports competition4 7,c7 ,second opinions 7i7 ,student athletes ,during the enrollment of a student athlete at an institution of higher education1 an institution of higher education shall be financially responsible for the expense of obtaining for the student athlete medical second opinions independent from the institution of higher education4 7ii7 ,former student athletes 7,i7 ,in general ,in the case of an institution of higher education described in clause 7ii7 or 7iii7 of subparagraph 7,b71 continuing through the #b-year period described in clause 7ii7 or the #d-year period described in clause 7iii71 respectively1 the institution of higher education shall be financially responsible for the expense of obtaining1 for former student athletes1 medical second opinions independent from the institution of higher education4 7,,ii7 ,institutions reporting less than #bj1jjj1jjj ,in the case of an institution of higher education described in clause 7i71 during any period not exceeding #d years beginning on the day after the last varsity intercollegiate sports competition of a student athlete that is not covered under subclause 7,i71 the ,fund shall be financially responsible for the expense of obtaining1 for former student athletes1 medical second opinions independent from the institution of higher education4 7,d7 ,exception ,the responsibilities of an institution of higher education under subparagraphs 7,a7 through 7,c7 shall not apply to an institution of higher education in the case of a student athlete who transfers out of the institution of higher education to continue participation in intercollegiate athletics elsewhere4 7d7 ,grant-in-,aid protection 7#a7 ,in general ,except as otherwise provided in this ,act1 an institution of higher education may not revoke1 reduce1 or impose a condition on the grant-in-aid of a student athlete based on the student athlete having entered into a permissible name1 image1 or likeness contract or having been injured4 7#b7 ,original grant-in-aid commitment 7,a7 ,in general ,subject to subparagraph 7,b71 an institution of higher education shall honor the original grant-in-aid commitment made by the institution of higher education to a student athlete4 7,b7 ,effect of transfer ,in the case of a student athlete who transfers from one institution of higher education to another institution of higher education1 subparagraph 7,a7-- 7i7 shall not apply to the former institution of higher education of the student athlete2 and 7ii7 shall apply to the new institution of higher education to which the student athlete transfers4 7,c7 ,former student athletes ,grant-in-aid provided to a former student athlete-- 7i7 may not count against athlete scholarship caps2 and 7ii7 may be provided through the general financial aid budget of an institution of higher education4 7#c7 ,rule of construction ,nothing in this subsection may be construed to prohibit an institution of higher education from revoking the grant-in-aid of a student athlete or former student athlete who does not remain in good standing in accordance with the standards or code of conduct of the institution of higher education4 #h4 ,enforcement 7a7 ,unfair or deceptive acts or practices ,a violation under section #c or #f of this ,act shall be treated as an unfair or deceptive act or practice under section #e7;a77#a7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7;a77#a774 7b7 ,powers of the ,federal ,trade ,commission 7#a7 ,in general ,the ,federal ,trade ,commission shall enforce section #c and #f in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties as though all applicable terms and provisions of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 were incorporated into and made part of this ,act4 7#b7 ,privileges and immunities ,any person who violates this ,act shall be subject to the penalties and entitled to the privileges and immunities provided in the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 et seq474 7#c7 ,rules of construction 7,a7 ,no power to prescribe rules ,nothing in this ,act or any other provision of ,federal law may be construed to authorize or permit the ,federal ,trade ,commission to prescribe or promulgate any rule or regulation with respect to any act1 practice1 or conduct under by this ,act4 7,b7 ,authority preserved ,nothing in this section shall be construed to limit the authority of the ,federal ,trade ,commission under any other provision of law4 7c7 ,prohibiting unfair and deceptive practices by third parties ,the ,sports ,agent ,responsibility and ,trust ,act 7#ae ,u4,s4,c4 #ghja et seq47 is amended-- 7#a7 in section #b 7#ae ,u4,s4,c4 #ghja7-- 7,a7 by redesignating paragraphs 7#d71 7#e71 7#f71 7#g71 7#h71 and 7#i7 as paragraphs 7#e71 7#f71 7#h71 7#i71 7#aj71 and 7#aa71 respectively2 7,b7 by inserting after paragraph 7#c7 the following new paragraph3 7#d7 ,booster ,the term booster means any individual or entity that has-- 7,a7 provided a donation-- 7i7 to an institution of higher education to obtain season tickets for any sport2 or 7ii7 to support the athletics program at an institution of higher education2 7,b7 participated in or has been a member of an organization promoting in any way the varsity intercollegiate athletics programs of an institution of higher education2 or 7,c7 made a financial contribution to the athletic department1 athletics foundation1 collective1 or booster organization affiliated with an institution of higher education4 2 7,c7 by inserting after paragraph 7#f71 as redesignated1 the following3 7#g7 ,institution of higher education ,the term institution of higher education means an institution of higher education as defined in section #aja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja74 2 and 7,d7 by adding at the end the following3 7#ab7 ,third party ,the term third party means-- 7,a7 a person1 other than an institution of higher education or a student athlete1 that-- 7i7 offers1 solicits1 or enters into a name1 image1 or likeness contract2 or 7ii7 offers or provides name1 image1 or likeness compensation2 7,b7 an entity that is affiliated with an institution of higher education1 yet operates independently of the institution of higher education1 that generates funding to support opportunities for student athletes to enter into name1 image1 or likeness contracts2 or 7,c7 an entity that is1 refers to itself as1 or is colloquially referred to as1 a collective4 2 7#b7 by inserting after section #c 7#ae ,u4,s4,c4 #ghjb7 the following3 #c;,a4 ,regulation of boosters and third parties ,it is unlawful for a booster or a third party to directly or indirectly provide or offer to provide any funds or thing of value as an inducement to a student athlete to enroll in1 transfer from1 or remain at a specific institution of higher education or group of institutions of higher education4 2 and 7#c7 in section #e7;a77#a7 7#ae ,u4,s4,c4 #ghjd7;a77#a771 by inserting or by the engagement of any booster or third party in a practice that violates section #c;,a of this ,act after section #c of this ,act4 7d7 ,eligibility ,to compete as a student athlete after entering into a name1 image1 or likeness contract ,section #c7;b77#c7 of the ,sports ,agent ,responsibility and ,trust ,act 7#ae ,u4,s4,c4 #ghjb7;b77#c77 is amended by striking ,warning to ,student ,athlete3 and inserting ,notice to ,student ,athlete3 ,if you agree orally or in writing to be represented by an agent now or in the future1 or enter into a name1 image1 or likeness contract1 you1 the agent by whom you are agreeing to be represented1 and any other booster or third party must notify the institution of higher education in which you are enrolled that you have entered into an agency or name1 image1 or likeness contract4 ,warning to ,student ,athlete34 #i4 ,national ,collegiate ,athletic ,association 7a7 ,duties ,the ,national ,collegiate ,athletic ,association or its designee shall-- 7#a7 establish-- 7,a7 rules to govern and provide oversight of institutions of higher education1 including the duties of institutions of higher education under section #g2 and 7,b7 a process by which such rules may be enforced2 7#b7 establish and maintain processes-- 7,a7 by which third parties shall register with the ,national ,collegiate ,athletic ,association2 and 7,b7 for regulating third parties2 7#c7 establish and maintain a mechanism for certifying and regulating third parties that provide compensation to student athletes under name1 image1 or likeness contracts2 7#d7 develop and maintain-- 7,a7 a list of permissible activities for registered third parties2 7,b7 a uniform standard name1 image1 or likeness contract for use in all name1 image1 or likeness activities2 and 7,c7 the educational resources described in subsection 7a7 of section #g and the financial literacy curriculum and programming described in subsection 7b7 of that section2 and 7#e7 establish a dispute resolution process for student athletes who assert a violation of this ,act1 under which a student athlete may select arbitration4 7b7 ,authority 7#a7 ,investigations and audits ,the ,national ,collegiate ,athletic ,association shall-- 7,a7 conduct investigations and audits to assess compliance with this ,act2 and 7,b7 not less frequently than annually1 submit to the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate and the ,committee on ,energy and ,commerce of the ,house of ,representatives an annual report with respect to such compliance4 7#b7 ,penalties ,in the case of a violation of this ,act or a potential violation of any other ,federal law by an agent1 third party1 institution of higher education1 conference1 or student athlete1 the ,national ,collegiate ,athletic ,association may-- 7,a7 revoke licenses to participate in name1 image1 or likeness activities2 7,b7 with respect to a violation of this ,act1 refer the matter to the ,federal ,trade ,commission as an unfair and deceptive act or practice for enforcement2 and 7,c7 with respect to a violation of any other ,federal law1 refer the matter to the appropriate ,federal agency for enforcement4 7#c7 ,limitation ,the ,national ,collegiate ,athletic ,association shall not have the authority to approve name1 image1 or likeness contracts for legality or appropriateness4 7c7 ,noncompliance ,in the case of a failure by the ,national ,collegiate ,athletic ,association to carry out the duties under this section1 the ,federal ,trade ,commission may commence an investigation of such failure and impose penalties1 including-- 7#a7 a penalty for an unfair and deceptive act or practice2 and 7#b7 revocation of tax-exempt status4 7d7 ,report ,not later than #a year after the date of the enactment of this ,act1 and annually thereafter1 the ,federal ,trade ,commission shall submit to the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate and the ,committee on ,energy and ,commerce of the ,house of ,representatives a report that summarizes any investigation or enforcement action brought by the ,federal ,trade ,commission or the ,national ,collegiate ,athletic ,association under this ,act during the preceding year1 including the number of complaints filed with the ,federal ,trade ,commission under this ,act4 7e7 ,disclosure ,the disclosure of a name1 image1 or likeness contract to the ,national ,collegiate ,athletic ,association may not be construed as an approval by the ,national ,collegiate ,athletic ,association of the contract with respect to the legal requirements of the contract4 #aj4 ,limitation of liability ,no agreement1 understanding1 rule1 or bylaw adopted by a conference1 the ,national ,collegiate ,athletic ,association1 or a combination of #b or more institutions of higher education acting in concert that is authorized1 consistent with1 or reasonably contemplated by any provision of this ,act shall be invalid or a basis for liability under or pursuant to any ,federal or ,state law upon enactment of this ,act4 #aa4 ,relationship to ,state law 7a7 ,state preemption ,no ,state or political subdivision of a ,state may adopt1 maintain1 enforce1 or continue in effect any law1 regulation1 rule1 requirement1 or standard that-- 7#a7 conflicts with the provisions of this ,act2 7#b7 limits or restricts the rights of student athletes1 the ,national ,collegiate ,athletic ,association1 conferences1 or institutions of higher education under this ,act2 or 7#c7 relates to the rights of student athletes to receive compensation directly or indirectly from any institution of higher education1 affiliate of an institution of higher education1 third party1 conference1 or the ,national ,collegiate ,athletic ,association4 7b7 ,nondiscrimination of student athletes ,no ,state or political subdivision of a ,state may establish or continue in effect any law1 regulation1 rule1 requirement1 or standard that is inconsistent with title ,,ix of the ,higher ,education ,act of #aigb 7#bj ,u4,s4,c4 #afha et seq471 including any law1 regulation1 rule1 requirement1 or standard that provides for the payment of student athletes participating in a varsity intercollegiate athletics program based on a share of annual revenue generated by that particular sports program4 #ab4 ,rules of construction 7a7 ,tax provisions ,nothing in this ,act or the amendments made by this ,act shall affect the treatment of qualified scholarships under section #aag of the ,internal ,revenue ,code of #aihf4 7b7 ,classification of student athletes ,nothing in this ,act or the amendments made by this ,act shall affect the employment status of a student athlete with respect to a conference or an institution of higher education4