Bill Text: IA SF2058 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to compensation of college athletes and including effective date provisions. (See SF 2330.)
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2020-02-19 - Committee report approving bill, renumbered as SF 2330. S.J. 357. [SF2058 Detail]
Download: Iowa-2019-SF2058-Introduced.html
Senate
File
2058
-
Introduced
SENATE
FILE
2058
BY
BOULTON
and
ZAUN
A
BILL
FOR
An
Act
relating
to
compensation
of
college
athletes
and
1
including
effective
date
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
261I.1
Definition.
1
For
purposes
of
this
chapter,
“postsecondary
educational
2
institution”
means
a
regents
institution,
community
college,
or
3
private
postsecondary
educational
institution
in
Iowa.
4
Sec.
2.
NEW
SECTION
.
261I.2
Compensation
of
college
5
athletes
——
limitation
on
postsecondary
institutions.
6
1.
A
postsecondary
educational
institution
shall
not
7
enforce
any
rule,
requirement,
standard,
or
other
limitation
8
that
prevents
a
college
athlete
enrolled
at
the
institution
9
from
fully
participating
in
intercollegiate
athletics
and
10
earning
compensation
as
a
result
of
the
use
of
the
athlete’s
11
name,
image,
or
likeness
rights,
or
athletic
reputation,
or
12
that
otherwise
penalizes
such
an
athlete.
A
college
athlete’s
13
financial
aid
eligibility,
amount,
duration,
or
renewal,
or
14
any
other
benefit
for
which
the
athlete
is
otherwise
eligible,
15
shall
not
be
affected
by
the
athlete
earning
compensation
from
16
the
use
of
an
athlete’s
name,
image,
or
likeness
rights,
or
17
athletic
reputation.
18
2.
For
purposes
of
this
chapter,
financial
aid
from
a
19
postsecondary
educational
institution
in
which
a
college
20
athlete
is
enrolled
is
not
compensation
for
use
of
the
21
athlete’s
name,
image,
and
likeness
rights,
or
athletic
22
reputation.
Such
financial
aid
shall
not
be
revoked
or
reduced
23
as
a
result
of
an
athlete
earning
compensation
pursuant
to
this
24
chapter.
25
Sec.
3.
NEW
SECTION
.
261I.3
College
athletes
——
26
professional
representation.
27
1.
A
postsecondary
educational
institution
shall
not
28
interfere
with
or
prevent
a
college
athlete
enrolled
at
a
29
postsecondary
educational
institution
from
fully
participating
30
in
intercollegiate
athletics
for
obtaining
professional
31
representation
in
relation
to
contracts
or
legal
matters,
32
including
but
not
limited
to
representation
provided
by
athlete
33
agents
or
financial
advisors,
or
legal
representation
provided
34
by
attorneys.
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2.
Professional
representation
provided
to
college
athletes
1
enrolled
at
a
postsecondary
educational
institution
by
athlete
2
agents,
financial
advisors,
or
attorneys
shall
only
be
provided
3
by
persons
licensed
in
the
state
of
Iowa.
4
Sec.
4.
NEW
SECTION
.
261I.4
College
athletes
——
apparel,
5
equipment,
or
beverage
contracts.
6
1.
A
college
athlete
shall
not
enter
into
an
apparel,
7
equipment,
or
beverage
contract
providing
compensation
to
the
8
athlete
for
use
of
the
athlete’s
name,
image,
or
likeness
9
rights,
or
athletic
reputation
that
requires
the
athlete
to
10
display
a
sponsor’s
apparel,
equipment,
or
beverage,
or
that
11
otherwise
advertises
for
the
sponsor
during
official
team
12
activities
if
such
provisions
are
in
conflict
with
a
provision
13
of
the
athlete’s
team
contract.
14
2.
A
postsecondary
educational
institution
asserting
a
15
conflict
described
in
subsection
1
shall
disclose
to
the
16
college
athlete
and
the
athlete’s
legal
representative,
17
if
applicable,
the
full
contract
that
is
asserted
to
be
18
in
conflict.
The
college
athlete
and
the
athlete’s
legal
19
representative,
if
applicable,
shall
not
disclose
to
any
20
other
person
the
terms
of
an
institution’s
contract
that
21
the
institution
deems
to
be
a
trade
secret
or
otherwise
22
confidential.
23
Sec.
5.
NEW
SECTION
.
261I.5
Disclosure
of
contract
——
24
confidentiality.
25
A
college
athlete
who
enters
into
a
contract
providing
26
compensation
to
the
athlete
for
use
of
the
athlete’s
name,
27
image,
or
likeness
rights,
or
athletics
reputation,
shall
28
disclose
the
full
contract
to
an
official
of
the
postsecondary
29
educational
institution
at
which
the
athlete
is
enrolled
30
designated
by
the
institution
for
that
purpose.
The
31
institution
and
designated
official
shall
not
disclose
to
32
any
other
person
the
terms
of
such
contract
that
the
college
33
athlete
or
the
college
athlete’s
legal
representative
deems
to
34
be
a
trade
secret
or
otherwise
confidential.
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Sec.
6.
NEW
SECTION
.
261I.6
Compensation
outside
of
1
official,
mandatory
team
activities.
2
The
terms
of
a
team
contract
of
a
postsecondary
educational
3
institution’s
athletic
program
shall
not
prevent
a
college
4
athlete
from
receiving
compensation
for
using
the
athlete’s
5
name,
image,
or
likeness
rights,
or
athletic
reputation
for
a
6
commercial
purpose
when
the
athlete
is
not
engaged
in
official,
7
mandatory
team
activities
if
such
activities
are
recorded
in
8
writing
and
made
publicly
available.
Such
team
activities
9
shall
not
exceed
twenty
hours
per
week
during
the
athletic
10
season
and
eight
hours
per
week
during
the
off-season.
11
Sec.
7.
NEW
SECTION
.
261I.7
Trust
fund
for
compensation.
12
A
team
contract
of
a
postsecondary
educational
institution’s
13
athletic
program
may
require
a
college
athlete
to
deposit
14
some
or
all
funds
received
as
compensation
for
using
the
15
college
athlete’s
name,
image,
or
likeness
rights,
or
athletic
16
reputation,
into
a
trust
fund,
with
all
applicable
state
17
taxation
deferred,
until
the
athlete
is
no
longer
eligible
to
18
participate
in
the
institution’s
athletic
program.
19
Sec.
8.
NEW
SECTION
.
261I.8
Certification
by
treasurer.
20
1.
A
person
shall
not
do
any
of
the
following
without
prior
21
certification
by
the
treasurer
of
state:
22
a.
Provide
professional
representation
to
a
college
athlete
23
as
described
in
section
261I.3,
subsection
1.
24
b.
Administer
a
trust
fund
established
pursuant
to
section
25
261I.7.
26
2.
The
treasurer
of
state
shall
establish
by
rule
pursuant
27
to
chapter
17A
certification
processes
for
the
persons
28
described
in
subsection
1.
The
treasurer
of
state
shall
only
29
certify
persons
who
have
significant
qualifications
for,
or
30
demonstrated
experience
providing,
representation
to
college
31
athletes
in
negotiations
or
financial
or
other
relationships
32
with
athletic
associations,
conferences,
or
other
groups
or
33
organizations
with
authority
over
intercollegiate
athletics.
34
Sec.
9.
NEW
SECTION
.
261I.9
Legal
requirements
——
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applicability.
1
1.
This
chapter
applies
to
contracts
entered
into,
2
modified,
or
renewed
on
or
after
the
effective
date
of
this
3
Act.
4
2.
College
athletes,
postsecondary
educational
5
institutions,
athletic
associations,
conferences,
or
other
6
groups
or
organizations
with
authority
over
intercollegiate
7
athletics,
and
state
or
local
officials
seeking
to
prosecute
8
violators
of
this
chapter,
shall
not
be
deprived
of
any
9
protections
provided
under
Iowa
law
with
respect
to
a
10
controversy
that
arises
in
Iowa
and
shall
have
the
right
to
11
adjudication
in
Iowa
of
a
legal
claim
that
arises
in
Iowa.
12
3.
A
legal
settlement
shall
not
permit
noncompliance
with
13
this
chapter.
Any
such
provision
is
void
and
unenforceable.
14
Sec.
10.
NEW
SECTION
.
261I.10
Severability.
15
The
provisions
of
this
chapter
are
severable
pursuant
to
16
section
4.12.
17
Sec.
11.
Section
422.7,
Code
2020,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
59.
a.
Subtract,
to
the
extent
included,
20
the
amount
of
any
income
deposited
in
a
trust
fund
under
21
section
261I.7.
22
b.
Add,
to
the
extent
previously
deducted
under
paragraph
23
“a”
,
the
amount
withdrawn
during
the
tax
year
from
a
trust
fund
24
under
section
261I.7.
25
Sec.
12.
EFFECTIVE
DATE.
This
Act
takes
effect
July
1,
26
2023.
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
This
bill
relates
to
the
compensation
of
athletes
enrolled
31
at
postsecondary
educational
institutions.
The
bill
32
defines
“postsecondary
educational
institution”
as
a
regents
33
institution,
community
college,
or
private
postsecondary
34
educational
institution
in
Iowa.
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The
bill
prohibits
a
postsecondary
educational
institution
1
from
enforcing
any
rule,
requirement,
standard,
or
other
2
limitation
that
prevents
a
college
athlete
enrolled
at
the
3
institution
from
fully
participating
in
intercollegiate
4
athletics
and
earning
compensation
as
a
result
of
the
use
of
5
the
athlete’s
name,
image,
or
likeness
rights,
or
athletic
6
reputation
or
that
otherwise
penalizes
such
an
athlete.
7
The
bill
provides
that
a
college
athlete’s
financial
aid
8
eligibility,
amount,
duration,
or
renewal,
or
any
other
benefit
9
for
which
the
athlete
is
otherwise
eligible,
shall
not
be
10
affected
by
the
athlete
earning
compensation
from
the
use
of
11
an
athlete’s
name,
image,
or
likeness
rights,
or
athletic
12
reputation.
13
The
bill
prohibits
a
postsecondary
educational
institution
14
from
interfering
with
or
preventing
a
college
athlete
enrolled
15
at
the
institution
from
fully
participating
in
intercollegiate
16
athletics
for
obtaining
professional
representation
in
17
relation
to
contracts
or
legal
matters.
The
bill
provides
18
that
professional
representation
provided
to
college
athletes
19
enrolled
at
a
postsecondary
educational
institution
by
athlete
20
agents,
financial
advisors,
or
attorneys
shall
only
be
provided
21
by
persons
licensed
in
the
state
of
Iowa.
22
The
bill
prohibits
a
college
athlete
from
entering
into
an
23
apparel,
equipment,
or
beverage
contract
providing
compensation
24
to
the
athlete
for
use
of
the
athlete’s
name,
image,
or
25
likeness
rights,
or
athletic
reputation
that
requires
the
26
athlete
to
display
a
sponsor’s
apparel,
equipment,
or
beverage,
27
or
that
otherwise
advertises
for
the
sponsor
during
official
28
team
activities
if
such
provisions
are
in
conflict
with
a
29
provision
of
the
athlete’s
team
contract.
The
bill
requires
30
the
disclosure
of
the
full
contract
to
the
college
athlete
31
and
the
athlete’s
legal
representative
in
such
instances
and
32
provides
for
the
nondisclosure
of
the
terms
of
such
a
contract.
33
The
bill
requires
a
college
athlete
who
enters
into
a
34
contract
providing
compensation
to
the
athlete
for
use
of
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the
athlete’s
name,
image,
or
likeness
rights,
or
athletics
1
reputation,
to
disclose
the
full
contract
to
a
designated
2
official
of
the
postsecondary
educational
institution
at
which
3
the
athlete
is
enrolled
and
provides
for
the
nondisclosure
of
4
the
terms
of
such
a
contract.
5
The
bill
provides
that
the
terms
of
a
team
contract
of
a
6
postsecondary
educational
institution’s
athletic
program
shall
7
not
prevent
a
college
athlete
from
receiving
compensation
8
for
using
the
athlete’s
name,
image,
or
likeness
rights,
or
9
athletic
reputation
for
a
commercial
purpose
when
the
athlete
10
is
not
engaged
in
official,
mandatory
team
activities
if
such
11
activities
are
recorded
in
writing
and
made
publicly
available.
12
The
bill
limits
such
team
activities
to
twenty
hours
per
week
13
during
the
athletic
season
and
eight
hours
per
week
during
the
14
off-season.
15
The
bill
provides
that
a
team
contract
of
a
postsecondary
16
educational
institution’s
athletic
program
may
require
a
17
college
athlete
to
deposit
some
or
all
funds
received
as
18
compensation
for
using
the
college
athlete’s
name,
image,
or
19
likeness
rights,
or
athletic
reputation
into
a
trust
fund,
with
20
all
applicable
state
taxation
deferred,
until
the
athlete
is
no
21
longer
eligible
to
participate
in
the
institution’s
athletic
22
program.
23
The
bill
requires
certification
by
the
treasurer
of
state
24
before
a
person
may
provide
professional
representation
to
25
a
college
athlete
as
described
in
the
bill
or
administer
a
26
trust
established
pursuant
to
the
bill.
The
bill
requires
the
27
treasurer
of
state
to
establish
certification
processes
by
rule
28
and
to
only
certify
persons
who
have
significant
qualifications
29
for,
or
demonstrated
experience
providing,
representation
30
to
college
athletes
in
negotiations
or
financial
or
other
31
relationships
with
athletic
associations,
conferences,
or
other
32
groups
or
organizations
with
authority
over
intercollegiate
33
athletics.
34
The
bill
applies
to
contracts
entered
into,
modified,
or
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renewed
on
or
after
the
effective
date
of
the
bill.
1
The
bill
provides
that
college
athletes;
postsecondary
2
educational
institutions;
athletic
associations,
conferences,
3
or
other
groups
or
organizations
with
authority
over
4
intercollegiate
athletics;
and
state
or
local
officials
seeking
5
to
prosecute
violators
of
the
bill
shall
not
be
deprived
6
of
any
protections
provided
under
Iowa
law
with
respect
to
7
a
controversy
that
arises
in
Iowa
and
shall
have
the
right
8
to
adjudication
in
Iowa
of
a
legal
claim
that
arises
in
9
Iowa.
The
bill
provides
that
a
legal
settlement
that
permits
10
noncompliance
with
the
bill
is
void
and
unenforceable.
11
The
bill
includes
severability
provisions.
12
The
bill
takes
effect
July
1,
2023.
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