Bill Text: IA SF386 | 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.(Formerly SF 245.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-04-01 - Referred to Judiciary. S.J. 726. [SF386 Detail]
Download: Iowa-2021-SF386-Introduced.html
Senate
File
386
-
Introduced
SENATE
FILE
386
BY
COMMITTEE
ON
JUDICIARY
(SUCCESSOR
TO
SF
245)
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
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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.
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
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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
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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.
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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
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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
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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
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