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Code · BILL · 116th Congress · S. 5003 (Introduced in Senate) — To protect the rights of student athletes, to provide for transparency and accountability with respect to student ath... · Sec. 6

Sec. 6. Independent entity for intercollegiate athletics

1,231 words·~6 min read·/bill/116/s/5003/is/section-6·

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The independent entity for intercollegiate athletics shall be a private, independent, self-regulatory, nonprofit corporation. Subject to paragraph (2), the Commission may select an independent entity that meets the requirements described in this section to carry out the duties described in this section. In selecting the Entity, the Commission shall consider applications from individuals representing or under the jurisdiction of not less than 10 conferences. If, not later than 180 days after the date of enactment of this Act, the Commission has not selected the Entity in accordance with paragraph (1), the Commission shall— carry out the duties described in subsection (e), except that the Commission may use its existing enforcement procedures rather than those outlined in such subsection; and establish and oversee an advisory committee in accordance with the requirements in the Federal Advisory Committee Act (5 U.S.C.
App.), with membership as described in subsection (f)(2), to advise the Commission on the topics described in subsection (f)(1). The Entity shall be governed by a board of directors (in this section referred to as the Board ). The Board shall be comprised of 15 voting members who shall include— 3 representatives of student athletes attending an institution; 3 representatives of athletics directors at institutions; 3 representatives of conferences; 3 representatives of institutions of different sizes and geographical locations; and 3 representatives of a variety of intercollegiate athletics teams.
The chair of the Board shall be elected by a majority of the Board. The Board shall be governed by bylaws for the operation of the Entity with respect to— the administrative structure and employees of the Entity; the establishment of standing committees; the procedures for filling vacancies on the Board and the standing committees; termination of membership; and any other matter the Board considers necessary. A member of the Board shall be appointed for a term of 3 years, except that of the members first appointed— 1/3 of the members shall be appointed for 2 years; 1/3 of the members shall be appointed for 3 years; and 1/3 of the members shall be appointed for 4 years.
A member of the Board may serve for not more than 2 consecutive terms. For all items for which Board approval is required, the Board shall have present a majority of members. The Entity shall develop rules and standards— with respect to, and consistent with, the requirements and prohibitions under sections 3 and 4; and to maintain fairness and integrity in amateur intercollegiate athletics and the principle of amateurism in intercollegiate athletic competition. The Entity shall develop rules, consistent with sections 3 and 4, with respect to student athlete name, image, and likeness agreements.
The Entity shall develop a rule limiting the annual amount of booster donations, contributions, license payments, and any other form of consideration in connection with an activity described in section 2(2). The rules and standards developed under this paragraph shall be subject to approval by the Commission in accordance with section 7(d). The Entity shall establish and maintain a certification office to carry out activities described in subparagraph (B). The certification office shall develop and administer a testing program for individuals seeking to become certified agents.
The testing program shall be designed to ensure that each certified agent— understands and is equipped to provide competent business advice to student athletes with respect to publicity rights licensing; and has a reasonable working knowledge of relevant State publicity rights law and applicable tax laws. The certification office shall conduct testing not less frequently than biennially. The certification office shall develop and publish on a publicly available internet website of the Entity standards of conduct and ethics applicable to certified agents.
The certification office shall issue certificates to, and publish on a publicly available internet website of the Entity a list of, certified agents. The certification office shall publish on a publicly available internet website of the Entity a list of individuals— who have attempted to obtain certification as certified agents, but have not been so certified; and whose certification as certified agents has been revoked as a result of an enforcement action or any other action of the Entity.
Not less frequently than annually, the Entity shall compile and publish on a publicly available internet website of the Entity such extracts of data and information available from name, image, and likeness agreements as the Entity determines to be helpful to student athletes in evaluating certified agents and licensing opportunities for publicity rights. The Entity shall develop and publish on a publicly available internet website of the Entity guidance for student athletes that— explains the legal and business concepts to be considered in licensing publicity rights; and specifically includes information concerning the implications of provisions that restrict a student athlete’s choice of institutions or bind the student athlete to long-term arrangements.
The Entity shall establish procedures for— addressing complaints and concerns from student athletes and institutions with respect to certified agents; and upon a showing that a certified agent has not competently represented the interests of 1 or more student athletes or has failed to comply with applicable standards of conduct and ethics, the revocation of certification of a certified agent. The Entity shall enforce the rules and standards developed under paragraph
(1)by imposing fines, penalties, and sanctions, including revocation of agent certifications, for agents, institutions, conferences, and associations that violate any such rule or standard. The Entity shall establish an appeals standing committee, to which any individual affected by an enforcement decision of the Entity may appeal such decision. The appeals standing committee shall be comprised of 7 individuals selected by the nominating committee. The chair of the appeals standing committee shall be elected by a majority of the appeals standing committee. After hearing an appeal on a decision of the Entity, the appeals standing committee shall advise the Board on whether to sustain or overrule the decision. The Entity shall establish a student athlete health and safety standing committee, which shall provide advice and guidance to the Board on the development of standards to help prevent serious injury to and abuse of student athletes. The student athlete health and safety standing committee shall be comprised of not more than 7 voting members who shall be selected by the Board not later than 120 days after the date of the enactment of this Act, including individuals with experience relating to sports medicine. The chair of the student athlete health and safety standing committee shall be elected by a majority of the student athlete health and safety standing committee. The Entity shall establish a nominating committee. The nominating committee shall be comprised of 7 members selected from institutions, conferences, and divisions, except that the initial nominating committee members shall be set forth in the bylaws of the Entity. The majority of the nominating committee shall elect the chair of the nominating committee. The nominating committee shall— be responsible for appointing members to the Board in the event of a vacancy; appoint members to each standing committee established under this section; and appoint members to any other committee established by the Entity. The Entity may establish any additional committee the Board considers necessary. To avoid conflicts of interest, the following individuals may not be selected as a member of the Board or as a member of a standing committee or the nominating committee established under this section: A booster. A certified agent. A third-party licensee.
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