Bill Text: IN HB1311 | 2012 | Regular Session | Introduced
Bill Title: Sports scholarships and player safety.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-11 - First reading: referred to Committee on Education [HB1311 Detail]
Download: Indiana-2012-HB1311-Introduced.html
Citations Affected: IC 21-15-11.
Effective: January 1, 2013.
January 10, 2012, read first time and referred to Committee on Education.
Digest Continued
program to grant another institution of higher education's request for
permission to contact a student athlete if the student athlete authorizes
the request. Requires a division 1 educational institution's athletic
program that does not receive a waiver to dedicate $500,000 annually
to cover medical expenses of student athletes. Requires the state
student assistance commission to establish and administer the athletic
trust fund (trust fund). Requires a division 1 educational institution's
athletic program that does not receive a waiver to pay an annual fee to
be paid to the trust. Provides that the fees paid to the trust may be used
by former football and men's basketball student athletes after their
eligibility to participate in intercollegiate athletics is exhausted.
Requires a division 1 educational institution's athletic program that
does not receive a waiver to pay an annual fee to the trust fund to be
used to make student loan payments on behalf of each student athlete
who obtains an undergraduate degree from the state educational
institution. Provides that a division 1 educational institution may be
granted a waiver if the division 1 educational institution receives less
than $10,000,000 in annual television revenue. Requires a division 1
educational institution to allocate money to be used to comply with
federal law pertaining to sexual equality in the division 1 educational
institution's athletic program. Requires a division 1 educational
institution to annually submit a report to the commission for higher
education pertaining to the institution's compliance with federal law
pertaining to sexual equality in the institution's athletic program.
Provides that the commission for higher education may fine a division
1 educational institution if a division 1 educational institution fails to
dedicate money to provide sexual equality in the division 1 educational
institution's athletic program.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
Chapter 11. Protection of Student Athletes
Sec. 1. This chapter applies to a state educational institution that is a Division 1 member of the National Collegiate Athletic Association.
Sec. 2. As used in this chapter, "athletic program" means a state educational institution's intercollegiate athletic program.
Sec. 3. As used in this chapter, "athletic scholarship" refers to financial aid provided by a state educational institution for a student to participate in intercollegiate athletics.
Sec. 4. As used in this chapter, "athletic scholarship shortfall" means the difference between:
(1) a state educational institution's cost of attendance; and
(2) the sum of:
(A) a full grant-in-aid athletic scholarship; plus
(B) any stipend, excluding any stipend for summer school, preseason, postseason, tournament, and expense payments.
Sec. 5. As used in this chapter, "cost of attendance" means a state educational institution's total annual in-state on campus expenses officially reported to the United States Department of Education.
Sec. 6. As used in this chapter, "full grant-in-aid" means financial aid provided by a state educational institution to a student to participate in intercollegiate athletics and used by the student to pay the cost of tuition and fees, room and board, and required course-related books related to attendance at the state educational institution.
Sec. 7. As used in this chapter, "participate in intercollegiate athletics" means participation of a student of a state educational institution in a sport that is subject to the bylaws established by the National Collegiate Athletic Association.
Sec. 8. As used in this chapter, "student athlete" means any student of the state educational institution who participates or has participated in intercollegiate athletics.
Sec. 9. As used in this chapter, "trust fund" refers to the athletic trust fund established under section 16 of this chapter.
Sec. 10. (a) Beginning after December 31, 2012, each athletic scholarship awarded by a state educational institution must be renewed by the state educational institution at an amount that is at least the amount awarded the previous year as long as the athletic scholarship recipient:
(1) remains in good academic standing, as determined by the state educational institution; and
(2) is not subject to disciplinary action.
(b) If a student athlete who meets the requirements of subsection (a) is involuntarily removed from a team, the state educational institution shall provide a scholarship equal to the athletic scholarship awarded by the state educational institution to the student athlete. A student athlete is entitled to receive a scholarship described in this subsection and the student athlete's prior athletic scholarship until:
(1) five (5) years after the student athlete is admitted to the state educational institution; or
(2) the date the student athlete receives a four (4) year undergraduate degree;
whichever occurs first.
(c) In order for a scholarship to be renewed under subsection (b), the student athlete must remain in good academic standing, as determined by the state educational institution.
(d) Any written agreement concerning athletic grants-in-aid signed by both an athletic program representative and a prospective student athlete are legally binding on the state educational institution.
Sec. 11. (a) An athletic program shall screen each incoming student athlete for the sickle cell trait and heart abnormalities prior to allowing the student athlete to participate in intercollegiate athletics.
(b) An athletic program shall establish a program or protocols to prevent, assess, and treat sports related concussions and dehydration.
(c) An athletic program shall establish and maintain exercise and supervision guidelines for any student athlete who participates in intercollegiate athletics and is identified as having a potentially life threatening health condition.
Sec. 12. An athletic program shall conduct a financial and life skills workshop for all of the state educational institution's first-year and third-year student athletes at the beginning of the state educational institution's academic year. The financial and life skills workshop must include information concerning:
(1) financial aid;
(2) debt management;
(3) interest rates;
(4) personal credit scores;
(5) a recommended budget for full and partial scholarship student athletes living on and off campus during the state educational institution's academic school year and summer courses that take place outside the state educational institution's regular academic school year based on the current year's cost of attendance;
(6) time management skills necessary for success as a student athlete;
(7) academic resources on campus; and
(8) the value of building relationships with the nonathletic campus community.
In addition, athletic programs that pay any of the fees described in sections 17 and 18 of this chapter must provide financial guidance to student athletes who may become eligible to receive money
under the trust fund established under section 16 of this chapter.
Sec. 13. A state educational institution shall grant student
athletes the same rights as other students regarding matters
related to possible adverse or disciplinary actions, including
matters involving athletics.
Sec 14. An athletic program shall grant any other institution of
higher education's request for permission to contact a student
athlete according to the bylaws of the National Collegiate Athletic
Association if the permission is requested in writing by the student
athlete interested in transferring to another institution of higher
education. The state educational institution shall grant the request
within five (5) business days after receipt of the request. An athletic
program shall approve a student athlete's written request to
transfer to another institution of higher education without any
restrictions, conditions, or residency requirements if the other state
educational institution is located in Indiana.
Sec. 15. (a) This section does not apply to a state educational
institution that is granted a waiver under section 22 of this chapter.
(b) Beginning after December 31, 2012, and each year
thereafter, an athletic program shall dedicate five hundred
thousand dollars ( $500,000) per year to pay for medical insurance
premiums and medical expenses to pay for a student athlete's
out-of-pocket sports related medical expenses. If any part of the
annual dedicated funds remains after paying medical expenses for
student athletes, the remainder must be used to pay medical
expenses for former student athletes who suffered a sports related
injury while participating in the athletic program. The money must
be paid to former student athletes in the order the claims are
submitted to the athletic department.
(c) The funds dedicated by an athletic program under
subsection (b) cannot be used to replace current levels of an
athletic program's student athlete medical expenditures or medical
benefits provided to or on behalf of student athletes.
(d) The amount dedicated under subsection (b) must be adjusted
annually according to the medical care price index prepared by the
United States Department of Labor.
(e) Funds dedicated under subsection (b) that have not been
used within four (4) years after the funds were dedicated may be
used by the state educational institution in the manner prescribed
by the state educational institution.
(f) A state educational institution that does not comply with this
section is legally responsible for medical expenses that should have
been paid by the funds dedicated under subsection (b).
Sec. 16. The state student assistance commission shall establish
a trust fund to provide a source of money for the purposes set forth
in sections 17 and 18 of this chapter. The expenses of administering
the trust fund must be paid from money in the trust fund. The trust
fund shall be administered by the state student assistance
commission. Money in the trust fund at the end of the state fiscal
year does not revert to the state general fund.
Sec. 17. (a) This section does not apply to a state educational
institution that has been granted a waiver under section 22 of this
chapter. Each athletic program shall pay to the trust fund an
annual fee equal to fifty percent (50%) of the cost of attendance at
the most expensive state educational institution multiplied by the
total number of football and men's basketball student athletes who
receive athletic scholarships during the current calendar year.
(b) The fees paid to the trust fund in subsection (a) may be used
by a football or men's basketball student athlete:
(1) who received an athletic scholarship;
(2) who was included in the calculation of the annual fee paid
under subsection (a); and
(3) whose eligibility to participate in intercollegiate athletics
is exhausted.
Subject to subsection (c), the annual fees paid to the trust fund by
an athletic program under subsection (a) must be divided for use
among the eligible student athletes who participated on the state
educational institution's football or men's basketball team.
(c) Former football and men's basketball student athletes who
qualify to receive money under this section are entitled to receive
benefits under either subsection (d) or (e) in an amount
proportional to the fees collected from the student athletes'
respective state educational institutions and prorated according to
the number of years the student athlete received an athletic
scholarship as determined by the state student assistance
commission.
(d) Subject to subsection (c), a student athlete who qualifies to
receive a part of the fees under subsection (b) but has not
completed the student athlete's undergraduate degree may receive
an amount up to an amount not to exceed the cost of attendance at
the student athlete's state educational institution with any
remainder of the fees paid to be divided equally among the former
student athletes after the student athletes have completed their
undergraduate degrees.
(e) Subject to subsection (c), a student athlete who does qualify to receive a benefit under subsection (d) and qualifies to receive a benefit under subsection (b) is entitled to receive the total part allocated for the student athlete after the student athlete completes the student athlete's undergraduate degree and is no longer enrolled as an undergraduate student at the state educational institution.
(f) The state student assistance commission shall return any unused state educational institution's annual fees if the fees are not used within (4) four years after the annual fee deadline date established in section 19 of this chapter.
(g) Funds distributed to eligible former football and men's basketball student athletes pursuing undergraduate degrees under subsection (d) must be in the form of reimbursements for all expenses required by the student athletes' school (such as tuition, fees, and books) and in monthly installments for all other expenses (room, board, and incidentals) during the academic school year. A student athlete may use the student athlete's distribution to pay for summer courses or any course that takes place outside the state educational institution's regular academic school year.
(h) Funds distributed to student athletes under subsection (d) must be paid in twelve (12) equal monthly installments after the student athlete's eligibility to receive funds from the trust fund is verified by the state student assistance commission.
(i) A student athlete who is ineligible to participate in intercollegiate athletics for at least one (1) season for disciplinary reasons may not receive money from the trust fund under this section.
Sec. 18. (a) This section does not apply to a state educational institution that has been granted a waiver under section 22 of this chapter. Each athletic program shall pay an annual fee to the trust fund established in section 16 of this chapter. The fee must be based on the highest athletic scholarship shortfall for the 2013-14 school year among the various state educational institutions and must be equal to:
(1) the appropriate athletic scholarship shortfall amount plus interest based on each year's unsubsidized federal Direct Stafford Loan interest rate; multiplied
(2) by the total number of football and men's basketball student athletes who receive an athletic scholarship at any point during the academic school year.
The annual fee amount must be adjusted annually according to the
consumer price index (United States city average) prepared by the
United States Department of Labor. The state student assistance
commission shall divide the annual fees paid under this subsection
among the eligible student athletes who participated on the state
educational institution's football or men's basketball team.
(b) A state educational institution's annual fees paid in
subsection (a) must be used to make direct payments to established
student loan creditors on behalf of each student athlete included in
the calculation under subsection (a) who subsequently obtains an
undergraduate degree from the state educational institution. Each
student athlete eligible to receive funds under this section may
receive an amount equal to the scholarship shortfall plus interest
at the rate determined under section 25(a)(1) of this chapter for
each year that the qualifying former student athlete received an
athletic scholarship.
(c) A state educational institution's fees paid to the trust fund
under this section must be returned to the appropriate athletic
program if the fees are not used within two (2) years after the
annual fee deadline date established by the state student assistance
commission.
Sec. 19. An athletic program shall pay fees that are required
under sections 17 and 18 of this chapter by June 1 of each year. An
athletic program shall pay a late fee of fifteen thousand dollars
($15,000) for each calendar day that the payment has not been
made after the deadline. Any fines shall be paid directly to the state
student assistance commission, which shall distribute the fines
evenly among the eligible fund recipients whose payments are put
at risk due to any late payment, as determined by the state student
assistance commission.
Sec. 20. (a) In order for a student athlete to receive money under
section 17 or 18 of this chapter, the student athlete must authorize
the student athlete's state educational institution and student loan
creditors to provide the state student assistance commission any
information necessary for the state student assistance commission
to make distributions to verify the student athlete's eligibility to
receive payments under section 17 or 18 of this chapter.
(b) A state educational institution shall provide the information
necessary to comply with subsection (a) within fifteen (15) days
after receiving the authorization from the student athlete.
Sec. 21. The state student assistance commission shall withhold
appropriate federal and state taxes for distributions made under
section 17 or 18 of this chapter.
Sec 22. If an athletic program awards athletic scholarships and has television contracts under which the program will receive an average of at least ten million dollars ($10,000,000) in annual television revenue during the terms of the television contracts, the state educational institution shall comply with sections 15, 17, and 18 of this chapter. If an athletic program awards athletic scholarships and has television contracts under which the program will receive less than ten million dollars ($10,000,000) in annual television revenue during the terms of the television contracts, the state educational institution may submit a waiver request to the state student assistance commission, which the state student assistance commission must approve. The waiver exempts the state educational institution from sections 15, 17, and 18 of this chapter and remains valid until the state educational institution's television revenues are at least an average of ten million dollars ($10,000,000) in annual television revenue during the terms of the television contracts.
Sec. 23. This section applies after December 31, 2013. Not later than November 1 of each year, the state student assistance commission shall post a report on the state student assistance commission's Internet web site regarding the trust fund and include information regarding the amount of fees collected from a state educational institution under sections 17 and 18 of this chapter and the amount distributed to qualifying former student athletes.
Sec. 24. The state student assistance commission shall adopt rules under IC 4-22-2 to administer sections 17 through 23 of this chapter. The rules must include the following:
(1) Student athlete qualification requirements and application procedures.
(2) Procedures for a state educational institution to request a waiver under section 22 of this chapter.
(3) Due dates for a state educational institution to make payments to the trust fund under section 17 or 18 of this chapter.
(4) Procedures for calculating distributions paid to a student athlete based on the fees collected from a state educational institution.
(5) Procedures for collecting and distributing late payments under section 19 of this chapter.
Sec. 25. (a) Beginning in 2013, and each year thereafter, an athletic program shall dedicate an amount of money to be used to
comply with Title IX of the Education Amendments of 1972, 20
U.S.C. 1681 et seq. in the athletic program. The amount the state
educational institution shall dedicate must be based on the highest
athletic scholarship shortfall for the 2013-14 school year among the
state educational institutions and must equal:
(1) the appropriate athletic scholarship shortfall amount plus
interest based on each year's unsubsidized federal Direct
Stafford Loan interest rate; multiplied by
(2) the total number of football and men's basketball student
athletes who receive an athletic scholarship at any point
during the academic school year.
The amount dedicated each year must be adjusted annually
according to the consumer price index (United States city average)
prepared by the United States Department of Labor.
(b) If an athletic program achieves compliance with Title IX of
the Education Amendments of 1972, 20 U.S.C. 1681 et seq, for four
(4) consecutive years, as determined by the commission for higher
education, any money dedicated to maintain compliance under this
section may be used in the manner prescribed by the state
educational institution.
(c) Not later than August 1 of each year, a state educational
institution shall provide a detailed report to the commission for
higher education. The report must include information that shows
that the state educational institution is:
(1) complying or has taken action to comply with Title IX of
the Education Amendments of 1972, 20 U.S.C. 1681 et seq;
and
(2) complying with this section.
(d) After receiving the report under subsection (c), the
commission may require a state educational institution to pay a
penalty of one thousand dollars ($1,000) for each day the
commission for higher education determines that a state
educational institution is not complying with subsection (a).
(e) The commission for higher education shall adopt rules under
IC 4-22-2 to administer this section.
