PRINTER'S NO. 756
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
632
Session of
2021
INTRODUCED BY GAINEY, D. MILLER, HILL-EVANS, LEE, A. DAVIS,
SANCHEZ, KINKEAD, MADDEN, SCHLOSSBERG, INNAMORATO, DELLOSO
AND HOWARD, MARCH 4, 2021
REFERRED TO COMMITTEE ON EDUCATION, MARCH 4, 2021
AN ACT
Amending Title 24 (Education) of the Pennsylvania Consolidated
Statutes, in higher education, providing for intercollegiate
athletics.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 24 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 67
INTERCOLLEGIATE ATHLETICS
Sec.
6701. Scope of chapter.
6702. Legislative intent.
6703. Definitions.
6704. Compensation regarding college athlete's name, image or
likeness rights or athletic reputation.
6705. Professional representation.
6706. Scholarships.
6707. Contracts.
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6708. Violations and claims.
6709. Settlements.
6710. Conflicts.
6711. Severability.
§ 6701. Scope of chapter.
This chapter relates to college athlete compensation and
professional representation.
§ 6702. Legislative intent.
The General Assembly finds and declares as follows:
(1) The Commonwealth seeks to help ensure that college
athletes have equal rights and economic freedoms afforded to
all students and residents in this Commonwealth.
(2) The Commonwealth recognizes the disproportionate
negative impact that economic and legal restrictions have on
female college athletes and athletes of color.
(3) The commercial exploitation of college athletes'
name, image or likeness rights is not required for school-
based athletics. It is an optional, lucrative activity for
which college athletes should be fairly compensated by third
parties.
(4) College athletics are a $15 billion industry with
highly compensated coaches and lucrative apparel deals, which
in turn require college athletes to involuntarily advertise
their talents to support their schools' commercial interests.
(5) Rules prohibiting college athlete compensation for
the use of name, image or likeness rights or athletic
reputation do not bring forth competitive equity and cannot
justify denying college athletes equal rights and economic
freedom.
(6) College athletes' representation should be
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independent from athletic associations, athletic conferences
and colleges to avoid a conflict of interest.
§ 6703. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Athlete agent." As defined in 5 Pa.C.S. § 3102 (relating to
definitions).
"College athlete." An individual who participates or
participated in intercollegiate athletics for an institution of
higher education located in this Commonwealth. The term does not
apply to an individual whose participation is or was in a
college intramural sport or in a professional sport outside of
intercollegiate athletics.
"Institution of higher education." As follows:
(1) Any of the following:
(i) A university within the State System of Higher
Education.
(ii) The Pennsylvania State University, the
University of Pittsburgh, Temple University, Lincoln
University or any other institution designated as State-
related by the Commonwealth.
(iii) The Thaddeus Stevens College of Technology.
(iv) A college established under Article XIX-G of
the act of March 10, 1949 (P.L.30, No.14), known as the
Public School Code of 1949.
(v) An institution of higher education located in
and incorporated or chartered by the Commonwealth and
entitled to confer degrees as specified in section 6505
(relating to power to confer degrees) and as provided for
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by the standards and qualifications prescribed by the
State Board of Education under Chapter 65 (relating to
private colleges, universities and seminaries).
(vi) A private school licensed under the act of
December 15, 1986 (P.L.1585, No.174), known as the
Private Licensed Schools Act.
(vii) A foreign corporation approved to operate an
educational enterprise under 22 Pa. Code Ch. 36 (relating
to foreign corporation standards).
(2) The term does not include a community college
operating under Article XIX-A of the Public School Code of
1949.
"NCAA." The National Collegiate Athletic Association.
§ 6704. Compensation regarding college athlete's name, image or
likeness rights or athletic reputation.
(a) Prohibition regarding institutions of higher
education.--An institution of higher education may not uphold a
rule, requirement, standard or other limitation that discourages
or prevents a college athlete of the institution of higher
education from receiving food, shelter, medical expenses or
insurance from a third party or from fully participating in
intercollegiate athletics and earning compensation as a result
of the use of the college athlete's name, image or likeness
rights or athletic reputation. The following apply:
(1) An institution of higher education may not arrange
third party compensation for a college athlete relating to
the use of the college athlete's name, image or likeness
rights or athletic reputation or use any similar type of
arrangement as an inducement to recruit a prospective college
athlete.
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(2) An institution of higher education may not
discourage or prohibit a college athlete from wearing
footwear of the college athlete's choice during official and
mandatory team activities, so long as the footwear does not
have reflective fabric or lights or pose a health risk to any
college athlete.
(3) A person that produces a college team jersey, a
college team video game or college team trading cards for the
purpose of making a profit shall make a royalty payment to
each college athlete whose name, image, likeness, jersey
number or other individually identifiable feature is used.
(b) Prohibitions regarding intercollegiate athletic
entities.--An athletic association, conference or other group or
organization with authority over intercollegiate athletics,
including the NCAA, may not:
(1) Prevent a college athlete from fully participating
in intercollegiate athletics and earning compensation through
the use or license of the college athlete's name, image or
likeness rights or athletic reputation.
(2) Prevent an institution of higher education from
fully participating in intercollegiate athletics as a result
of a college athlete's use of the college athlete's name,
image or likeness rights or athletic reputation to seek
compensation.
§ 6705. Professional representation.
(a) Prohibitions.--
(1) An institution of higher education, athletic
association, conference or other group or organization with
authority over intercollegiate athletics, including the NCAA,
may not interfere with or prevent a college athlete from
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fully participating in intercollegiate athletics for
obtaining professional representation in relation to
contracts or legal matters, including representation provided
by athlete agents or financial advisors or legal
representation provided by attorneys.
(2) An athletic association, conference or other group
or organization with authority over intercollegiate
athletics, including the NCAA, may not prevent an institution
of higher education from fully participating in
intercollegiate athletics without penalty as a result of a
college athlete obtaining professional representation in
relation to contracts or legal matters, including
representation provided by athlete agents or financial
advisors or legal representation provided by attorneys.
(b) Qualifications.--Professional representation obtained by
a college athlete shall be from a person:
(1) acting as an athlete agent in accordance with 5
Pa.C.S. Ch. 33 (relating to registration);
(2) acting as a financial advisor in accordance with the
laws of this Commonwealth; or
(3) admitted to practice law by a court of record of
this Commonwealth.
(c) Limitation.--A person that represents an institution of
higher education or has represented an institution of higher
education in the previous four years may not represent a college
athlete in any business agreement.
§ 6706. Scholarships.
(a) Eligibility.--Earning compensation from the use of a
college athlete's name, image or likeness rights or athletic
reputation shall not affect the college athlete's scholarship
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eligibility, amount, duration or renewal.
(b) Compensation.--
(1) For purposes of this chapter, an athletics grant-in-
aid or stipend scholarship from an institution of higher
education in which a college athlete is enrolled is not
compensation for use of a college athlete's name, image or
likeness rights or athletic reputation.
(2) An athletics grant-in-aid or stipend scholarship may
not be revoked or reduced as a result of a college athlete
earning compensation under this chapter.
§ 6707. Contracts.
(a) Conflict with team contract.--
(1) A college athlete may not enter into an apparel
contract providing compensation to the college athlete for
use of the college athlete's name, image or likeness rights
that requires the college athlete to display a sponsor's
apparel or otherwise advertise for the sponsor in person
during official team activities, if a provision of the
contract is in conflict with a provision of the college
athlete's team contract.
(2) An institution of higher education asserting a
conflict described in paragraph (1) shall disclose to the
college athlete or the college athlete's professional
representative or other agent, if applicable, the full
contract that the institution of higher education asserts to
be in conflict.
(b) Disclosure.--A college athlete who enters into a
contract providing compensation to the college athlete for use
of the college athlete's name, image or likeness rights shall
disclose the contract to an official of the institution of
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higher education, to be designated by the institution of higher
education.
(c) Periods of official team activities.--
(1) Subject to paragraph (2), a team contract applicable
to an institution of higher education's athletic program
shall not prevent a college athlete from receiving
compensation for using the college athlete's name, image or
likeness rights for a commercial purpose when the college
athlete is not engaged in official team activities.
(2) Paragraph (1) shall apply only to contracts entered
into, modified or renewed on or after the effective date of
this subsection.
§ 6708. Violations and claims.
(a) Protections and right to adjudicate.--A college athlete,
institution of higher education, conference or State or local
prosecutor seeking to prosecute a person violating this chapter
shall not be deprived of any protections provided under State
law with respect to a controversy that arises in this
Commonwealth and shall have the right to adjudication in this
Commonwealth a claim that arises in this Commonwealth.
(b) Private civil action.--A college athlete shall have the
right to pursue a private civil action against any person that
violates this chapter. The court shall award costs and
reasonable attorney fees to a prevailing plaintiff in an action
brought against a person violating this chapter.
§ 6709. Settlements.
Legal settlements made on or after the effective date of this
section shall not permit noncompliance with this chapter.
§ 6710. Conflicts.
Any provision of an existing statute that conflicts with a
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provision of this chapter shall be void.
§ 6711. Severability.
The provisions of this chapter shall be severable. If any
provision of this chapter or the application of any provision of
this chapter is held to be invalid, that invalidity shall not
affect any other provision or application of any other provision
that can be given effect without the invalid provision or
application.
Section 2. This act shall take effect in 60 days.
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