H.F. 2282 Section 1. NEW SECTION . 261I.1 Definition. 1 For purposes of this chapter, “postsecondary educational 2 institution” means a regents institution or private 3 postsecondary educational institution in Iowa. 4 Sec. 2. NEW SECTION . 261I.2 Compensation of college 5 athletes. 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. An athletic association, conference, or other group or 19 organization with authority over intercollegiate athletics, 20 including but not limited to the national collegiate athletic 21 association, shall not prevent a college athlete enrolled at a 22 postsecondary educational institution from fully participating 23 in intercollegiate athletics and earning compensation as a 24 result of the athlete’s use of the athlete’s name, image, or 25 likeness rights, or athletic reputation, or otherwise penalize 26 such an athlete. 27 3. An athletic association, conference, or other group or 28 organization with authority over intercollegiate athletics, 29 including but not limited to the national collegiate athletic 30 association, shall not prevent a postsecondary educational 31 institution from fully participating in intercollegiate 32 athletics as a result of a college athlete’s use of the 33 athlete’s name, image, or likeness rights, or athletic 34 reputation, or otherwise penalize such an institution. 35 -1- LSB 5811YH (5) 88 je/jh 1/ 8

H.F. 2282 4. For purposes of this chapter, financial aid from a 1 postsecondary educational institution in which a college 2 athlete is enrolled is not compensation for use of the 3 athlete’s name, image, and likeness rights, or athletic 4 reputation. Such financial aid shall not be revoked or reduced 5 as a result of an athlete earning compensation pursuant to this 6 chapter. 7 Sec. 3. NEW SECTION . 261I.3 College athletes —— 8 professional representation. 9 1. A postsecondary educational institution, athletic 10 association, conference, or other group or organization with 11 authority over intercollegiate athletics, including but not 12 limited to the national collegiate athletic association, shall 13 not interfere with or prevent a college athlete enrolled at a 14 postsecondary educational institution from fully participating 15 in intercollegiate athletics for obtaining professional 16 representation in relation to contracts or legal matters, 17 including but not limited to representation provided by athlete 18 agents and financial advisors, or legal representation provided 19 by attorneys. 20 2. An athletic association, conference, or other group or 21 organization with authority over intercollegiate athletics, 22 including but not limited to the national collegiate athletic 23 association, shall not prevent a postsecondary educational 24 institution from fully participating in intercollegiate 25 athletics as a result of a college athlete enrolled at the 26 institution obtaining professional representation in relation 27 to contracts or legal matters, including but not limited to 28 representation provided by athlete agents, financial advisors, 29 or legal representation provided by attorneys, or otherwise 30 penalize the institution. 31 3. Professional representation provided to college athletes 32 enrolled at a postsecondary educational institution by athlete 33 agents, financial advisors, or attorneys shall only be provided 34 by persons licensed in the state of Iowa. 35 -2- LSB 5811YH (5) 88 je/jh 2/ 8

H.F. 2282 Sec. 4. NEW SECTION . 261I.4 College athletes —— apparel, 1 equipment, or beverage contracts. 2 1. A college athlete shall not enter into an apparel, 3 equipment, or beverage contract providing compensation to the 4 athlete for use of the athlete’s name, image, or likeness 5 rights, or athletic reputation that requires the athlete to 6 display a sponsor’s apparel, equipment, or beverage, or that 7 otherwise advertises for the sponsor during official team 8 activities if such provisions are in conflict with a provision 9 of the athlete’s team contract. 10 2. A postsecondary educational institution asserting a 11 conflict described in subsection 1 shall disclose to the 12 college athlete and the athlete’s legal representative, 13 if applicable, the full contract that is asserted to be 14 in conflict. The college athlete and the athlete’s legal 15 representative, if applicable, shall not disclose to any 16 other person the terms of an institution’s contract that 17 the institution deems to be a trade secret or otherwise 18 confidential. 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 35 -3- LSB 5811YH (5) 88 je/jh 3/ 8

H.F. 2282 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 Trust fund for compensation. 8 A team contract of a postsecondary educational institution’s 9 athletic program may require a college athlete to deposit 10 some or all funds received as compensation for using the 11 college athlete’s name, image, or likeness rights, or athletic 12 reputation, into a trust fund, with all applicable state 13 taxation deferred, until the athlete is no longer eligible to 14 participate in the institution’s athletic program. 15 Sec. 8. NEW SECTION . 261I.8 Certification by treasurer. 16 1. A person shall not administer a trust fund established 17 pursuant to section 261I.7 without prior certification by the 18 treasurer of state. 19 2. The treasurer of state shall establish by rule pursuant 20 to chapter 17A certification processes for the persons 21 described in subsection 1. The treasurer of state shall only 22 certify persons who have significant qualifications for, or 23 demonstrated experience providing, representation to college 24 athletes in negotiations or financial or other relationships 25 with athletic associations, conferences, or other groups or 26 organizations with authority over intercollegiate athletics. 27 Sec. 9. NEW SECTION . 261I.9 Legal requirements —— 28 applicability. 29 1. This chapter applies to contracts entered into, 30 modified, or renewed on or after the effective date of this 31 Act. 32 2. College athletes, postsecondary educational 33 institutions, athletic associations, conferences, or other 34 groups or organizations with authority over intercollegiate 35 -4- LSB 5811YH (5) 88 je/jh 4/ 8

H.F. 2282 athletics, and state or local prosecutors seeking to 1 prosecute violators of this chapter shall not be deprived of 2 any protections provided under Iowa law with respect to a 3 controversy that arises in Iowa and shall have the right to 4 adjudication in Iowa of a legal claim that arises in Iowa. 5 3. A legal settlement shall not permit noncompliance with 6 this chapter. Any such provision is void and unenforceable. 7 Sec. 10. NEW SECTION . 261I.10 Severability. 8 The provisions of this chapter are severable pursuant to 9 section 4.12. 10 Sec. 11. Section 422.7, Code 2020, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 59. a. Subtract, to the extent included, 13 the amount of any income deposited in a trust fund under 14 section 261I.7. 15 b. Add, to the extent previously deducted under paragraph 16 “a” , the amount withdrawn during the tax year from a trust fund 17 under section 261I.7. 18 Sec. 12. EFFECTIVE DATE. This Act takes effect January 1, 19 2022. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill relates to the compensation of athletes enrolled 24 at postsecondary educational institutions. The bill 25 defines “postsecondary educational institution” as a regents 26 institution or private postsecondary educational institution 27 in Iowa. 28 The bill prohibits a postsecondary educational institution 29 from enforcing any rule, requirement, standard, or other 30 limitation that prevents a college athlete enrolled at the 31 institution from fully participating in intercollegiate 32 athletics and earning compensation as a result of the use of 33 the athlete’s name, image, or likeness rights, or athletic 34 reputation or that otherwise penalizes such an athlete. 35 -5- LSB 5811YH (5) 88 je/jh 5/ 8

H.F. 2282 The bill provides that a college athlete’s financial aid 1 eligibility, amount, duration, or renewal, or any other benefit 2 for which the athlete is otherwise eligible, shall not be 3 affected by the athlete earning compensation from the use of 4 an athlete’s name, image, or likeness rights, or athletic 5 reputation. 6 The bill prohibits an athletic association, conference, or 7 other group or organization with authority over intercollegiate 8 athletics from preventing a college athlete enrolled at a 9 postsecondary educational institution from fully participating 10 in intercollegiate athletics and earning compensation as a 11 result of the athlete’s use of the athlete’s name, image, 12 or likeness rights, or athletic reputation, or otherwise 13 penalizing such an athlete. The bill prohibits an athletic 14 association, conference, or other group or organization with 15 authority over intercollegiate athletics from preventing a 16 postsecondary educational institution from fully participating 17 in intercollegiate athletics as a result of a college 18 athlete’s use of the athlete’s name, image, or likeness 19 rights, or athletic reputation, or otherwise penalizing 20 such an institution. The bill specifies that financial 21 aid from a postsecondary educational institution in which a 22 college athlete is enrolled is not compensation for use of 23 the athlete’s name, image, and likeness rights, or athletic 24 reputation for purposes of the bill. The bill provides that 25 such financial aid shall not be revoked or reduced as a result 26 of an athlete earning compensation pursuant to the bill. 27 The bill prohibits a postsecondary educational institution, 28 athletic association, conference, or other group or 29 organization with authority over intercollegiate athletics from 30 interfering with or preventing a college athlete enrolled at 31 the institution from fully participating in intercollegiate 32 athletics for obtaining professional representation in relation 33 to contracts or legal matters. The bill prohibits an athletic 34 association, conference, or other group or organization with 35 -6- LSB 5811YH (5) 88 je/jh 6/ 8

H.F. 2282 authority over intercollegiate athletics from preventing a 1 postsecondary educational institution from fully participating 2 in intercollegiate athletics as a result of a college 3 athlete enrolled at the institution obtaining professional 4 representation in relation to contracts or legal matters or 5 otherwise penalizing the institution. The bill provides that 6 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 The bill prohibits a college athlete from entering into an 11 apparel, equipment, or beverage contract providing compensation 12 to the athlete for use of the athlete’s name, image, or 13 likeness rights, or athletic reputation that requires the 14 athlete to display a sponsor’s apparel, equipment, or beverage, 15 or that otherwise advertises for the sponsor during official 16 team activities if such provisions are in conflict with a 17 provision of the athlete’s team contract. The bill requires 18 the disclosure of the full contract to the college athlete 19 and the athlete’s legal representative in such instances and 20 provides for the nondisclosure of the terms of such a contract. 21 The bill requires a college athlete who enters into a 22 contract providing compensation to the athlete for use of 23 the athlete’s name, image, or likeness rights, or athletics 24 reputation, to disclose the full contract to a designated 25 official of the postsecondary educational institution at which 26 the athlete is enrolled and provides for the nondisclosure of 27 the terms of such a contract. 28 The bill provides that the terms of a team contract of a 29 postsecondary educational institution’s athletic program shall 30 not prevent a college athlete from receiving compensation 31 for using the athlete’s name, image, or likeness rights, or 32 athletic reputation for a commercial purpose when the athlete 33 is not engaged in official, mandatory team activities if such 34 activities are recorded in writing and made publicly available. 35 -7- LSB 5811YH (5) 88 je/jh 7/ 8

H.F. 2282 The bill limits such team activities to 20 hours per week 1 during the athletic season and eight hours per week during the 2 off-season. 3 The bill provides that a team contract of a postsecondary 4 educational institution’s athletic program may require a 5 college athlete to deposit some or all funds received as 6 compensation for using the college athlete’s name, image, or 7 likeness rights, or athletic reputation into a trust fund, with 8 all applicable state taxation deferred, until the athlete is no 9 longer eligible to participate in the institution’s athletic 10 program. 11 The bill requires certification by the treasurer of state 12 before a person may administer a trust established pursuant 13 to the bill. The bill requires the treasurer of state 14 to establish certification processes by rule and to only 15 certify persons who have significant qualifications for, or 16 demonstrated experience providing, representation to college 17 athletes in negotiations or financial or other relationships 18 with athletic associations, conferences, or other groups or 19 organizations with authority over intercollegiate athletics. 20 The bill applies to contracts entered into, modified, or 21 renewed on or after the effective date of the bill. 22 The bill provides that college athletes; postsecondary 23 educational institutions; athletic associations, conferences, 24 or other groups or organizations with authority over 25 intercollegiate athletics; and state or local prosecutors 26 seeking to prosecute violators of the bill shall not be 27 deprived of any protections provided under Iowa law with 28 respect to a controversy that arises in Iowa and shall have the 29 right to adjudication in Iowa of a legal claim that arises in 30 Iowa. The bill provides that a legal settlement that permits 31 noncompliance with the bill is void and unenforceable. 32 The bill includes severability provisions. 33 The bill takes effect January 1, 2022. 34 -8- LSB 5811YH (5) 88 je/jh 8/ 8