S.F. 2330 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. 35 -1- LSB 5146SV (1) 88 je/jh 1/ 7

S.F. 2330 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. 35 -2- LSB 5146SV (1) 88 je/jh 2/ 7

S.F. 2330 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 —— 35 -3- LSB 5146SV (1) 88 je/jh 3/ 7

S.F. 2330 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. 35 -4- LSB 5146SV (1) 88 je/jh 4/ 7

S.F. 2330 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 35 -5- LSB 5146SV (1) 88 je/jh 5/ 7

S.F. 2330 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 35 -6- LSB 5146SV (1) 88 je/jh 6/ 7

S.F. 2330 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. 13 -7- LSB 5146SV (1) 88 je/jh 7/ 7