Bill Text: IA SF245 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act relating to compensation of college athletes and including effective date and applicability provisions.(See SF 386.)

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2021-02-17 - Committee report approving bill, renumbered as SF 386. S.J. 393. [SF245 Detail]

Download: Iowa-2021-SF245-Introduced.html
Senate File 245 - Introduced SENATE FILE 245 BY BOULTON and ZAUN A BILL FOR An Act relating to compensation of college athletes and 1 including effective date and applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1290XS (8) 89 je/jh
S.F. 245 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. 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 doing 10 any of the following 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: 13 (1) Earning compensation. 14 (2) Receiving food, shelter, or insurance coverage, or 15 receiving payment for the cost of food, shelter, insurance 16 coverage, or medical care. 17 b. A college athlete’s financial aid eligibility, amount, 18 duration, or renewal, or any other benefit for which the 19 athlete is otherwise eligible, shall not be affected by 20 the athlete receiving an item described in paragraph “a” , 21 subparagraph (1) or (2), from the use of an athlete’s name, 22 image, or likeness rights, or athletic reputation. 23 2. For purposes of this chapter, financial aid from a 24 postsecondary educational institution in which a college 25 athlete is enrolled is not compensation for use of the 26 athlete’s name, image, and likeness rights, or athletic 27 reputation. Such financial aid shall not be revoked or reduced 28 as a result of an athlete receiving an item described in 29 subsection 1, paragraph “a” , subparagraph (1) or (2), pursuant 30 to this chapter. 31 Sec. 3. NEW SECTION . 261I.3 College athletes —— 32 professional representation. 33 1. A postsecondary educational institution shall not 34 interfere with or prevent a college athlete enrolled at a 35 -1- LSB 1290XS (8) 89 je/jh 1/ 7
S.F. 245 postsecondary educational institution from fully participating 1 in intercollegiate athletics for obtaining professional 2 representation in relation to contracts or legal matters, 3 including but not limited to representation provided by athlete 4 agents or financial advisors, or legal representation provided 5 by attorneys. 6 2. Professional representation provided to college athletes 7 enrolled at a postsecondary educational institution by athlete 8 agents, financial advisors, or attorneys shall only be provided 9 by persons licensed in the state of Iowa. 10 Sec. 4. NEW SECTION . 261I.4 College athletes —— contracts 11 for advertising. 12 A person shall not offer to enter into a contract with a 13 college athlete to provide compensation to the athlete for use 14 of the athlete’s name, image, or likeness rights, or athletics 15 reputation that requires the athlete to engage in in-person 16 advertising for the person during official, mandatory team 17 activities without approval from the athlete’s postsecondary 18 educational institution. 19 Sec. 5. NEW SECTION . 261I.5 Disclosure of contract —— 20 confidentiality. 21 A college athlete who enters into a contract providing 22 compensation to the athlete for use of the athlete’s name, 23 image, or likeness rights, or athletics reputation, shall 24 disclose the full contract to an official of the postsecondary 25 educational institution at which the athlete is enrolled 26 designated by the institution for that purpose. The 27 institution and designated official shall not disclose to 28 any other person the terms of such contract that the college 29 athlete or the college athlete’s legal representative deems to 30 be a trade secret or otherwise confidential. 31 Sec. 6. NEW SECTION . 261I.6 Compensation outside of 32 official, mandatory team activities. 33 The terms of a team contract of a postsecondary educational 34 institution’s athletic program shall not prevent a college 35 -2- LSB 1290XS (8) 89 je/jh 2/ 7
S.F. 245 athlete from receiving compensation for using the athlete’s 1 name, image, or likeness rights, or athletic reputation for a 2 commercial purpose when the athlete is not engaged in official, 3 mandatory team activities if such activities are recorded in 4 writing and made publicly available. Such team activities 5 shall not exceed twenty hours per week during the athletic 6 season and eight hours per week during the off-season. 7 Sec. 7. NEW SECTION . 261I.7 Certification by treasurer. 8 1. A person shall not provide professional representation 9 to a college athlete as described in section 261I.3, subsection 10 1, without prior certification by the treasurer of state. 11 2. The treasurer of state shall establish by rule pursuant 12 to chapter 17A certification processes for the persons 13 described in subsection 1. The treasurer of state shall only 14 certify persons who have significant qualifications for, or 15 demonstrated experience providing, representation to college 16 athletes in negotiations or financial or other relationships 17 with athletic associations, conferences, or other groups or 18 organizations with authority over intercollegiate athletics. 19 Sec. 8. NEW SECTION . 261I.8 Legal requirements —— 20 applicability. 21 1. This chapter applies to contracts entered into, 22 modified, or renewed on or after the effective date of this 23 Act. 24 2. College athletes, postsecondary educational 25 institutions, athletic associations, conferences, or other 26 groups or organizations with authority over intercollegiate 27 athletics, and state or local officials seeking to prosecute 28 violators of this chapter, shall not be deprived of any 29 protections provided under Iowa law with respect to a 30 controversy that arises in Iowa and shall have the right to 31 adjudication in Iowa of a legal claim that arises in Iowa. 32 3. A legal settlement shall not permit noncompliance with 33 this chapter. Any such provision is void and unenforceable. 34 Sec. 9. NEW SECTION . 261I.9 Severability. 35 -3- LSB 1290XS (8) 89 je/jh 3/ 7
S.F. 245 The provisions of this chapter are severable pursuant to 1 section 4.12. 2 Sec. 10. EFFECTIVE DATE. This Act, being deemed of 3 immediate importance, takes effect upon enactment. 4 Sec. 11. APPLICABILITY. This Act applies to any 5 agreement or contract newly entered into, renewed, modified, 6 or extended on or after the earlier of July 1, 2021; the 7 effective date of any substantially similar state or federal 8 law; or the effective date of an athletic association or 9 athletic conference rule regarding name, image, and likeness 10 compensation for student athletes if a postsecondary 11 educational institution, as defined in section 261I.1, as 12 enacted by this Act, is a member of such athletic association 13 or athletic conference. For purposes of this section, 14 “agreement or contract” includes but is not limited to the 15 national letter of intent, a college athlete’s financial aid 16 agreement, a commercial contract, and rules or bylaws of an 17 athletic conference or athletic association. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill relates to the compensation of athletes enrolled 22 at postsecondary educational institutions. The bill 23 defines “postsecondary educational institution” as a regents 24 institution, community college, or private postsecondary 25 educational institution in Iowa. 26 The bill prohibits a postsecondary educational institution 27 from enforcing any rule, requirement, standard, or other 28 limitation that prevents a college athlete enrolled at the 29 institution from fully participating in intercollegiate 30 athletics and earning compensation; receiving food, shelter, 31 or insurance coverage; or receiving payment for the cost of 32 food, shelter, insurance coverage, or medical care as a result 33 of the use of the athlete’s name, image, or likeness rights, 34 or athletic reputation or that otherwise penalizes such an 35 -4- LSB 1290XS (8) 89 je/jh 4/ 7
S.F. 245 athlete. The bill provides that a college athlete’s financial 1 aid eligibility, amount, duration, or renewal, or any other 2 benefit for which the athlete is otherwise eligible, shall not 3 be affected by the athlete earning compensation or such other 4 specified items from the use of an athlete’s name, image, or 5 likeness rights, or athletic reputation. 6 The bill prohibits a postsecondary educational institution 7 from interfering with or preventing a college athlete enrolled 8 at the institution from fully participating in intercollegiate 9 athletics for obtaining professional representation in 10 relation to contracts or legal matters. The bill provides 11 that professional representation provided to college athletes 12 enrolled at a postsecondary educational institution by athlete 13 agents, financial advisors, or attorneys shall only be provided 14 by persons licensed in the state of Iowa. 15 The bill prohibits a person from offering to enter into 16 a contract with a college athlete to provide compensation to 17 the athlete for use of the athlete’s name, image, or likeness 18 rights, or athletics reputation that requires the athlete to 19 engage in in-person advertising for the person during official, 20 mandatory team activities without approval from the athlete’s 21 postsecondary educational institution. 22 The bill requires a college athlete who enters into a 23 contract providing compensation to the athlete for use of 24 the athlete’s name, image, or likeness rights, or athletics 25 reputation, to disclose the full contract to a designated 26 official of the postsecondary educational institution at which 27 the athlete is enrolled and provides for the nondisclosure of 28 the terms of such a contract. 29 The bill provides that the terms of a team contract of a 30 postsecondary educational institution’s athletic program shall 31 not prevent a college athlete from receiving compensation 32 for using the athlete’s name, image, or likeness rights, or 33 athletic reputation for a commercial purpose when the athlete 34 is not engaged in official, mandatory team activities if such 35 -5- LSB 1290XS (8) 89 je/jh 5/ 7
S.F. 245 activities are recorded in writing and made publicly available. 1 The bill limits such team activities to 20 hours per week 2 during the athletic season and eight hours per week during the 3 off-season. 4 The bill requires certification by the treasurer of state 5 before a person may provide professional representation to a 6 college athlete as described in the bill. The bill requires 7 the treasurer of state to establish certification processes 8 by rule and to only certify persons who have significant 9 qualifications for, or demonstrated experience providing, 10 representation to college athletes in negotiations or 11 financial or other relationships with athletic associations, 12 conferences, or other groups or organizations with authority 13 over intercollegiate athletics. 14 The bill applies to contracts entered into, modified, or 15 renewed on or after the effective date of the bill. 16 The bill provides that college athletes; postsecondary 17 educational institutions; athletic associations, conferences, 18 or other groups or organizations with authority over 19 intercollegiate athletics; and state or local officials seeking 20 to prosecute violators of the bill shall not be deprived 21 of any protections provided under Iowa law with respect to 22 a controversy that arises in Iowa and shall have the right 23 to adjudication in Iowa of a legal claim that arises in 24 Iowa. The bill provides that a legal settlement that permits 25 noncompliance with the bill is void and unenforceable. 26 The bill includes severability provisions. 27 The bill is effective upon enactment and applies to any 28 agreement or contract, as defined in the bill, newly entered 29 into, renewed, modified, or extended on or after the earlier 30 of July 1, 2021; the effective date of any substantially 31 similar state or federal law; or the effective date of an 32 athletic association or athletic conference rule regarding 33 name, image, and likeness compensation for student athletes if 34 a postsecondary educational institution in Iowa is a member of 35 -6- LSB 1290XS (8) 89 je/jh 6/ 7
S.F. 245 such athletic association or athletic conference. 1 -7- LSB 1290XS (8) 89 je/jh 7/ 7
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