Sec. 2. Definitions
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/bill/119/hr/4312/rh/section-2·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In this Act: The term agent means an individual who receives compensation to represent a student athlete with respect to— a name, image, and likeness agreement; or another agreement for compensation related to the participation of such student athlete on a varsity sports team. The term antitrust laws has the meaning given such term in the 1st section of the Clayton Act ( 15 U.S.C. 12 ) and includes section 5 of the Federal Trade Commission Act ( 15 U.S.C. 45 ) to the extent that such section 5 applies to unfair methods of competition.
The term associated entity or individual means, with respect to an institution, each of the following: An entity that is known or should be known to the employees of the athletic department of such institution to exist, in significant part, for the purpose of— promoting or supporting the varsity sports teams or student athletes of such institution; or creating or identifying opportunities relating to name, image, and likeness agreements solely for the student athletes of such institution.
An individual who is or has been a member, employee, director, officer, owner, or other representative of an entity described in subparagraph (A). An individual who directly or indirectly (including through contributions by an entity affiliated with such individual or an immediate family member of such individual) has contributed more than $50,000 (as adjusted on July 1 each year by the percentage increase (if any), during the preceding 12-month period, in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics) over the lifetime of the individual to the athletic programs of such institution or to an entity described in subparagraph (A).
An individual or entity who— is directed or requested by the employees of the athletic department of such institution to assist in the recruitment or retention of prospective student athletes or student athletes, respectively; or otherwise assists in such recruitment or retention. Any entity (other than a publicly traded corporation) owned, controlled, operated by, or otherwise affiliated with an individual or entity described in subparagraph (A), (B), (C), or (D). The term college sports revenue means any revenue (without regard to ownership or legal title to such revenue) received by an institution with respect to intercollegiate athletics— from the sale of admission to intercollegiate athletic competitions or any other event involving a varsity sports team, including actual monetary revenue received by or for the benefit of such institution for a suite license (unless such suite license is associated with philanthropy or any purpose not related to intercollegiate athletic competitions, including a concert); from participation by the varsity sports teams of such institution in intercollegiate athletic competitions held at other institutions, including payments received due to cancellations of such intercollegiate athletic competitions; for radio, television, internet, digital, and e-commerce rights, including revenue relating to media rights distributed by a conference to members of the conference, if applicable; from an interstate intercollegiate athletic association, including any grant, distribution of revenue, reimbursement relating to travel with respect to a championship of such interstate intercollegiate athletic association, and payment for hosting such a championship; generated by a post-season football bowl, including any distribution of revenue by a conference to members of the conference and any other payment related to the participation of such institution in such post-season football bowl, including for ticket sales and reimbursement of expenses; from a conference, other than any revenue otherwise described in this paragraph; for sponsorships, licensing agreements, advertisements, royalties, and in-kind products and services as part of a sponsorship agreement; or relating to any additional form of revenue, including fundraising, an interstate intercollegiate athletic association uses with respect to the pool limit of such interstate intercollegiate athletic association.
The term compensation — means, with respect to a student athlete or a prospective student athlete, any form of payment or remuneration, whether provided through cash, benefits, awards, or any other means, including payments for— licenses relating to, or the use of, name, image, and likeness rights; or licenses relating to, or the use of, any other Federal or State intellectual or intangible property right; and does not include— grants-in-aid; Federal Pell Grants and other Federal or State grants unrelated to and not awarded with regard to participation in intercollegiate athletics; health insurance and payments for the costs of health care, including health insurance and payments for the costs of health care wholly or partly self-funded by an institution, conference, or interstate intercollegiate athletic association; disability and loss-of-value insurance, including disability and loss-of-value insurance that is wholly or partly self-funded by an institution, conference, or interstate intercollegiate athletic association; career counseling, job placement services, and other guidance available to all students at an institution; payment of hourly wages and benefits for work actually performed (and not for participation in intercollegiate athletics) at a rate commensurate with the going rate in the locality of an institution for similar work; academic awards paid to student athletes by institutions; provision of financial literacy or tax education resources and guidance; or any program to connect student athletes with employers and facilitate employment opportunities, if— the financial terms of such employment opportunities are consistent with the terms offered to similarly situated employees who are not student athletes; and such program is not used to induce a student athlete to attend a particular institution.
The term conference means an entity that— has as members 2 or more institutions; arranges regular season intercollegiate athletic competitions and championships for such members; and sets rules with respect to such intercollegiate athletic competitions and championships. The term cost of attendance has the meaning given such term in section 472 of the Higher Education Act of 1965 ( 20 U.S.C. 1087ll ). The term grant-in-aid 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— is paid or provided by an institution to a student for the undergraduate or graduate course of study of the student; and is in an amount that does not exceed the cost of attendance at the institution for such student.
The term image means, with respect to a student athlete, a picture or a video that identifies, is linked to, or is reasonably linkable to such student athlete. The term institution has the meaning given the term institution of higher education in section 102 of the Higher Education Act of 1965 ( 20 U.S.C. 1002 ). The term intercollegiate athletic competition means any contest, game, meet, match, tournament, regatta, or other event in which varsity sports teams of more than 1 institution compete.
The term intercollegiate athletics — means the varsity sports teams for which the length of time a student athlete is eligible to participate and the academic standards for participation are established by a conference or an interstate intercollegiate athletic association; and does not include any recreational, intramural, or club teams. The term interstate intercollegiate athletic association means— any entity that— sets common rules, standards, procedures, or guidelines for the administration and regulation of varsity sports teams and intercollegiate athletic competitions; is composed of 2 or more institutions or conferences located in more than 1 State; and has rules or bylaws prohibiting the provision of prohibited compensation to student athletes and prospective student athletes; and does not include any entity affiliated with professional athletic competitions.
The term likeness means, with respect to a student athlete, a physical or digital depiction or representation that identifies, is linked to, or is reasonably linkable to such student athlete. The term name means, with respect to a student athlete, the first, middle, or last name, or the nickname or former name, of such student athlete if used in a context that identifies, is linked to, or is reasonably linkable to such student athlete. The term name, image, and likeness agreement means a contract or similar agreement under which a student athlete licenses or authorizes, or a contract or similar agreement that otherwise is in relation to, the commercial use of the name, image, or likeness of the student athlete.
The term name, image, and likeness rights means rights recognized under Federal or State law that allow an individual to control and profit from the commercial use of the name, image, and likeness of such individual, including all rights commonly referred to as publicity rights . The term pool limit means a dollar amount based on college sports revenue that— is calculated and published by an interstate intercollegiate athletic association pursuant to the rules the interstate intercollegiate athletic association establishes under section 6; and serves as the annual maximum amount that an institution that is a member of such interstate intercollegiate athletic association may provide, in total, to student athletes of such institution, including in the form of a name, image, and likeness agreement or direct payment.
The term prohibited compensation means— compensation (including an agreement for compensation) to a student athlete from an associated entity or individual of the institution at which the student athlete is enrolled (or to a prospective student athlete from an associated entity or individual of an institution for which the prospective student athlete is being recruited) for any license or use of the name, image, and likeness rights of such student athlete or prospective student athlete (or any other license or use), unless the license or use is for a valid business purpose related to the promotion or endorsement of goods or services provided to the general public for profit, with compensation at rates and terms commensurate with compensation paid to individuals with name, image, and likeness rights of comparable value who are not student athletes or prospective student athletes with respect to such institution; and compensation to a student athlete (or a prospective student athlete) if such compensation is paid by or on behalf of the institution at which the student athlete is enrolled (or for which the prospective student athlete is being recruited) and results in the exceeding of the pool limit established by the interstate intercollegiate athletic association of which such institution is a member.
The term prospective student athlete means an individual who is solicited to enroll at an institution by, or at the direction of, an employee or an associated entity or individual of the institution in order for such individual to participate in a varsity sports team of such institution. The term State means each State of the United States, the District of Columbia, and each commonwealth, territory, or possession of the United States. The term student athlete means an individual who— is enrolled or has agreed to enroll at an institution; and participates in a varsity sports team of such institution.
The term varsity sports team means an entity composed of an individual or group of individuals enrolled at an institution that is organized by such institution for the purpose of participation in intercollegiate athletic competitions.
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