Bill Summary
This legislation, called the "Fairness in Collegiate Athletics Act", aims to ensure that college athletes are able to profit from their name, image, and likeness, rather than the institutions of higher education profiting from them. It defines terms such as "compensation" and "student athlete", and establishes rules for payment of student athletes. It also provides for enforcement of these rules by the Federal Trade Commission and preempts any state or local laws that would interfere with the ability of student athletes to receive compensation.
Possible Impacts
1. Student athletes may now have the ability to earn compensation for the use of their name, image, or likeness, which could greatly benefit them financially.
2. The Act also requires student athletes to report any compensation they receive to their institution and the intercollegiate athletic association, which could potentially limit the amount of under-the-table deals or financial exploitation.
3. The Act could also lead to increased transparency and regulation in the recruitment of student athletes, as well as prevent any illegitimate activity involving third parties seeking to recruit or retain athletes.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4004 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 4004
To ensure that college athletes, and not institutions of higher
education, are able to profit from their name, image, and likeness, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 18, 2020
Mr. Rubio introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To ensure that college athletes, and not institutions of higher
education, are able to profit from their name, image, and likeness, 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 ``Fairness in Collegiate Athletics
Act''.
SEC. 2. DEFINITIONS.
In this Act--
(1) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(2) Compensation.--The term ``compensation'' means any
remuneration, in cash or kind, whether provided at the time or
at any subsequent date to a student athlete, except such term
shall not include any grant, scholarship, fellowship, tuition
assistance, or other form of financial aid provided to a
student for pursuing a postsecondary education.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning given such
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
(4) Intercollegiate athletic association.--The term
``intercollegiate athletic association''--
(A) means--
(i) the National Collegiate Athletic
Association (or any successor organization);
and
(ii) any intercollegiate athletic
association that the Commission determines is
similar in purpose and scope to the association
described in clause (i), subject to
subparagraph (B); and
(B) does not include the National Junior College
Athletic Association (or any successor organization) or
the National Association of Intercollegiate Athletics
(or any successor organization).
(5) Student athlete.--The term ``student athlete'' means an
individual who is enrolled in an institution of higher
education and engages in postsecondary athletics.
(6) Third party.--The term ``third party'' means, with
respect to any student athlete, any entity other than the
institution of higher education in which such student athlete
is enrolled.
SEC. 3. ESTABLISHMENT OF RULES FOR PAYMENT OF STUDENT ATHLETES.
Not later than June 30, 2021, any intercollegiate athletic
association shall establish--
(1) a policy that permits any student athlete to--
(A) earn compensation from a third party as a
result of the use of the name, image, or likeness of
such student athlete; and
(B) subject to the requirements under section 3 of
the Sports Agent Responsibility and Trust Act (15
U.S.C. 7802), obtain professional representation with
respect to matters described in subparagraph (A); and
(2) rules and programs for the administration of the policy
described in paragraph (1), including--
(A) requiring student athletes to report any
compensation described in such paragraph, or any
agreement to receive such compensation, to the
institution of higher education in which they are
enrolled and the intercollegiate athletic association
within a reasonable period following--
(i) the date on which an agreement to
receive such compensation is reached between
the student athlete and the third party; and
(ii) the date on which such compensation is
received by the student athlete; and
(B) such rules and programs as are deemed necessary
to--
(i) preserve the amateur status of student
athletes;
(ii) ensure appropriate recruitment of
prospective student athletes; and
(iii) prevent illegitimate activity with
respect to any third party seeking to recruit
or retain student athletes with respect to any
institution of higher education, including any
third party--
(I) with a prior or existing
association, either formally or
informally, with any institution of
higher education; or
(II) with a prior or existing
financial involvement with respect to
postsecondary athletics.
SEC. 4. ENFORCEMENT PROVISIONS.
(a) Unfair or Deceptive Act or Practice.--
(1) In general.--A violation of section 3 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)).
(2) Actions by the commission.--The Commission shall
enforce section 3 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.
(3) Enforcement related to nonprofit organizations.--
Notwithstanding section 4, 5(a)(2), or 6 of the Federal Trade
Commission Act (15 U.S.C. 44, 45(a)(2), 46) or any
jurisdictional limitation of the Federal Trade Commission, the
Commission shall also enforce this Act and any regulations
promulgated under this Act, in the same manner provided in
paragraphs (1) and (2) of this subsection, with respect to
organizations not organized to carry on business for their own
profit or that of their members.
(b) Exception.--Except as provided under subsection (a), no cause
of action shall lie or be maintained in any court against any
intercollegiate athletic association, or any institution of higher
education which is a member of such association for the adoption or
enforcement of a policy, rule, or program established under section 3.
SEC. 5. PREEMPTION.
No State or political subdivision of a State may adopt, maintain,
enforce, or continue in effect any law, regulation, rule, requirement,
or standard related to permitting or prohibiting a student athlete to
receive compensation from an institution of higher education or a third
party as a result of such athlete's performance or participation in
postsecondary athletics.
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