,i #aaith ,,congress #ast ,session ,h4 ,r4 #efic ,,in ,,the ,,house ,,of ,,representatives ,october #f1 #bjbe,mr4 ,baumgartner introduced the following bill2 which was referred to the ,committee on ,education and ,workforce ,a ,,bill ,to amend the ,higher ,education ,act of #aife to prohibit certain private-equity and sovereign wealth fund agreements involving intercollegiate athletics4 #a4 ,short title ,this ,act may be cited as the ,protect ,college ,sports from ,private ,equity and ,foreign ,influence ,act or the ,,protect ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,intercollegiate athletics are conducted under the auspices of nonprofit institutions of higher education and1 when properly governed1 promote student development1 campus life1 community identity1 and broad public engagement in education--benefits that constitute a public good aligned with the educational missions those institutions are chartered to serve4 7#b7 ,intercollegiate athletics generate billions of dollars in revenue annually through national media contracts1 sponsorships1 and ticket sales that span multiple ,states1 creating a significant impact on interstate commerce4 7#c7 ,public institutions of higher education are financed and supported by taxpayers through direct appropriations1 tax-exempt status1 subsidized ,federal student aid1 and tax-advantaged debt1 and therefore have a heightened obligation to ensure that institutional assets--including intercollegiate athletics programs and facilities--are managed for public benefit and student welfare rather than private enrichment4 7#d7 ,agreements that convey ownership1 revenue-sharing1 control rights1 or security interests in intercollegiate athletics to private equity1 hedge funds1 or similar vehicles are inherently conflicted1 create pressure to maximize short-term cash flows at the expense of educational and ,title ,,ix obligations1 and risk extracting wealth from publicly supported institutions and their students--undermining transparency1 accountability1 and the public purposes for which those institutions exist4 #c4 ,program participation agreements ,section #dhg7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a77 is amended by adding at the end the following3 7#cj7 ,prohibition on private-capital and sovereign wealth agreements involving intercollegiate athletics 7,a7 ,as a condition of eligibility under this title1 an institution shall not enter into1 maintain1 or permit any agreement with a private capital firm or a sovereign wealth fund that-- 7i7 transfers1 assigns1 pledges1 or otherwise conveys to such firm or fund any ownership1 profit1 net-revenue1 or gross-revenue interest arising from the institution's intercollegiate athletics program1 including media1 sponsorship1 licensing1 ticketing1 premium seating1 data1 or other commercial rights2 7ii7 grants such firm or fund control rights over athletics decisions1 institutional branding1 scheduling1 personnel1 or student participation2 or 7iii7 establishes a joint venture1 new entity1 or other agreement through which such firm or fund receives any share of1 or any interest in1 athletics-related revenues or rights1 including licensing and merchandising rights1 or athletics facilities or related real property including any leasehold1 sublease1 concession1 easement1 mortgage1 deed of trust1 lien1 or similar property interest4 7,b7 ,exceptions ,subparagraph 7,a7 shall not apply to3 7i7 fee-for-service contracts for discrete services2 7ii7 charitable contributions1 gifts1 or grants2 7iii7 tax-exempt bond financings or lease-purchase agreements with governmental units or #eja7;c77#c7 conduit issuers that do not convey revenue interests or control rights to a private capital firm2 or 7iv7 sponsorships or advertising agreements that provide brand placement without revenue-sharing or control4 7,c7 ,conference and affiliate coverage ,an institution shall ensure compliance with this paragraph for any agreement entered by an athletics conference1 media-rights consortium1 or other affiliate that allocates1 assigns1 or encumbers the institution's athletics-related revenues or rights4 7,d7 ,collectives and controlled entities ,this paragraph applies to any collective1 foundation1 affiliate1 or separate legal entity that is directly or indirectly owned1 controlled1 or operated by the institution or its athletics department4 7,e7 ,certification and disclosure ,the ,secretary shall require annual program participation agreement certification that the institution and its affiliates have not entered into any agreement described under subparagraph 7,a7 and shall require public disclosure of all agreements relying on an exception under subparagraph 7,b74 7,f7 ,definitions ,for purposes of this paragraph3 7i7 ,private capital firm ,the term private capital firm means 7,i7 a hedge fund or private equity fund as those terms are defined in #ab ,u4,s4,c4 #ahea7;h77#b71 7,,ii7 a private fund as defined in #ae ,u4,s4,c4 #hj;b-#b7;a77#bi71 and 7,,iii7 any investment adviser 7as defined in #ae ,u4,s4,c4 #hj;b-#b7;a77#aa77 that advises a fund described in subclause 7,i7 or 7,,ii74 7ii7 ,control rights ,the term control rights includes consent1 veto1 or approval rights over budgets1 hiring1 scheduling1 competition1 branding1 or strategic decisions2 or other rights to assume or direct management or operations of an intercollegiate athletics program or athletics facility4 7iii7 ,intercollegiate athletics program ,the term intercollegiate athletics program includes teams1 departments1 conferences1 media or data rights1 ticketing and premium seating1 sponsorships1 licensing and merchandising1 and athletics facilities used primarily for intercollegiate varsity sports competition4 7iv7 ,sovereign wealth fund ,the term sovereign wealth fund means an investment fund owned or controlled by a foreign state1 an agency or instrumentality of a foreign state 7as defined in #bh ,u4,s4,c4 #afjc71 or an agent of a foreign principal 7as defined in #bb ,u4,s4,c4 #faa74 7,g7 ,transition ,agreements in effect on the date of enactment shall be brought into compliance or terminated not later than #bd months after such date4 ,no agreement may be renewed or extended except in compliance with this paragraph4 7,h7 ,rulemaking ,the ,secretary of ,education shall issue regulations to carry out this paragraph after consultation with the ,secretary of the ,treasury and the ,securities and ,exchange ,commission2 and shall1 to the maximum extent practicable1 harmonize such regulations with definitions and interpretations under the ,federal securities laws4 4