House File 639 HOUSE FILE BY FORD Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to stipends for athlete students competing in a 2 state board of regents university football program and 3 including a conditional effectiveness provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2878HH 80 6 kh/pj/5 PAG LIN 1 1 Section 1. LEGISLATIVE FINDINGS == ATHLETIC STIPENDS. 1 2 1. The general assembly finds and declares the following: 1 3 a. Scandals are rampant throughout college football as 1 4 evidenced by the number of schools placed on probation by the 1 5 national collegiate athletic association, coaches dismissed or 1 6 forced to resign for improprieties, and players declared 1 7 ineligible to compete for violating rules against receiving 1 8 fair financial compensation. 1 9 b. Many players are recruited from impoverished families 1 10 and the rules of the national collegiate athletic association 1 11 prohibiting reasonable financial compensation render such 1 12 players vulnerable to inducements, benefits, and other types 1 13 of compensation defined as illicit by the national collegiate 1 14 athletic association rules. 1 15 c. A fair rate of financial compensation would give 1 16 players a choice when offered illicit inducements, 1 17 compensation, or assistance. 1 18 d. The rules of the national collegiate athletic 1 19 association prohibiting compensation are unduly restrictive 1 20 and unreasonable, promote unfairness, encourage dishonesty in 1 21 recruiting and retaining players, and would not be tolerated 1 22 if applied to all students. 1 23 e. Players at United States service academies are 1 24 compensated while in attendance and are eligible to compete 1 25 against schools that are members of the national collegiate 1 26 athletic association. 1 27 f. Iowa state university of science and technology and the 1 28 university of Iowa participate in the national intercollegiate 1 29 football program that produces millions of dollars through 1 30 ticket sales, lucrative national television and other 1 31 electronic broadcast contracts, and postseason bowl games. 1 32 g. The football programs promote the universities and 1 33 generate valuable intangible benefits such as enhancement of 1 34 each university's image. 1 35 h. The exertion of players and the revenue they generate 2 1 produces employment and salaries for numerous others, 2 2 subsidizes other sports programs at the universities, and 2 3 underwrites travel expenses of numerous university officials, 2 4 staff, and others who attend postseason bowl games in which 2 5 the teams participate. 2 6 i. The universities employ large athletic departments to 2 7 administer their intercollegiate athletic programs and 2 8 sizeable football coaching staffs charged primarily with the 2 9 responsibility of producing teams capable of competing 2 10 successfully against the best teams in their conferences and 2 11 in the nation and of generating as much revenue as possible. 2 12 j. Maintaining winning football teams has become an 2 13 integral aspect of the overall business or occupation of the 2 14 universities as institutions. 2 15 k. The football programs could not exist without the 2 16 athletes who play the arduous and dangerous game. 2 17 l. Such athletes do not appear at the university by 2 18 accident or happenstance, but are actively recruited by 2 19 university personnel at considerable expense. 2 20 m. Such athletes are not recruited nor are scholarships 2 21 awarded on the basis of need or academic achievement, but for 2 22 athletic prowess, the recipients having been recruited to be 2 23 football players first, scholars second. 2 24 n. Many players spend more time on football=related 2 25 activities than academics. 2 26 o. Because a sound academic program for football players 2 27 may be difficult to develop due to the demands of the sport, 2 28 football players are entitled to some tangible return for the 2 29 strenuous work they perform and the revenue they generate for 2 30 the benefit of the universities. 2 31 2. The general assembly further finds and declares that, 2 32 in the same manner nonathlete students are compensated for 2 33 performing various tasks while enrolled as students, football 2 34 players shall be entitled to fair financial compensation for 2 35 playing football. 3 1 3. Any person who competes for an institution of higher 3 2 learning under the control of the state board of regents in an 3 3 intercollegiate football program sanctioned by the national 3 4 collegiate athletic association shall be granted a stipend by 3 5 the university in which the person is enrolled. The amount of 3 6 the stipend shall be determined by the university. 3 7 4. This section shall not be construed to make a person a 3 8 professional athlete. 3 9 Sec. 2. CONDITIONAL EFFECTIVENESS. This Act takes effect 3 10 whenever laws granting a similar stipend are enacted in at 3 11 least three other states that have teams competing in national 3 12 collegiate athletic association division I-A and I-AA football 3 13 conferences. 3 14 EXPLANATION 3 15 This bill states legislative findings and declarations 3 16 regarding the necessity for allowing athlete students who 3 17 compete in regents university football programs to receive 3 18 stipends for their participation in the football program. The 3 19 bill requires the universities to pay their athlete students 3 20 who compete in an intercollegiate football program sanctioned 3 21 by the national collegiate athletic association a stipend, but 3 22 states that nothing in the bill shall be construed to make a 3 23 person who receives such a stipend a professional athlete. 3 24 The amount of the stipend is to be determined by the 3 25 university. The bill takes effect when at least three other 3 26 states with comparable football programs require similar 3 27 stipends. 3 28 LSB 2878HH 80 3 29 kh/pj/5.1