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House File 671 - IntroducedA Bill ForAn Act 1relating to compensation of college athletes and
2including effective date and applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 261I.1 Definition.
2For purposes of this chapter, “postsecondary educational
3institution” means a regents institution, community college, or
4private postsecondary educational institution in Iowa.
5 Sec. 2. NEW SECTION. 261I.2 Compensation of college
6athletes — limitation on postsecondary institutions.
71. a. A postsecondary educational institution shall not
8enforce any rule, requirement, standard, or other limitation
9that prevents a college athlete enrolled at the institution
10from fully participating in intercollegiate athletics and doing
11any of the following as a result of the use of the athlete’s
12name, image, or likeness rights, or athletic reputation, or
13that otherwise penalizes such an athlete:
14(1) Earning compensation.
15(2) Receiving food, shelter, or insurance coverage, or
16receiving payment for the cost of food, shelter, insurance
17coverage, or medical care.
18b. A college athlete’s financial aid eligibility, amount,
19duration, or renewal, or any other benefit for which the
20athlete is otherwise eligible, shall not be affected by
21the athlete receiving an item described in paragraph “a”,
22subparagraph (1) or (2), from the use of an athlete’s name,
23image, or likeness rights, or athletic reputation.
242. For purposes of this chapter, financial aid from a
25postsecondary educational institution in which a college
26athlete is enrolled is not compensation for use of the
27athlete’s name, image, and likeness rights, or athletic
28reputation. Such financial aid shall not be revoked or reduced
29as a result of an athlete receiving an item described in
30subsection 1, paragraph “a”, subparagraph (1) or (2), pursuant
31to this chapter.
32 Sec. 3. NEW SECTION. 261I.3 College athletes —
33professional representation.
341. A postsecondary educational institution shall not
35interfere with or prevent a college athlete enrolled at a
-1-1postsecondary educational institution from fully participating
2in intercollegiate athletics for obtaining professional
3representation in relation to contracts or legal matters,
4including but not limited to representation provided by athlete
5agents or financial advisors, or legal representation provided
6by attorneys.
72. Professional representation provided to college athletes
8enrolled at a postsecondary educational institution by athlete
9agents, financial advisors, or attorneys shall only be provided
10by persons licensed in the state of Iowa.
11 Sec. 4. NEW SECTION. 261I.4 College athletes — contracts
12for advertising.
13A person shall not offer to enter into a contract with a
14college athlete to provide compensation to the athlete for use
15of the athlete’s name, image, or likeness rights, or athletics
16reputation that requires the athlete to engage in in-person
17advertising for the person during official, mandatory team
18activities without approval from the athlete’s postsecondary
19educational institution.
20 Sec. 5. NEW SECTION. 261I.5 Disclosure of contract —
21confidentiality.
22A college athlete who enters into a contract providing
23compensation to the athlete for use of the athlete’s name,
24image, or likeness rights, or athletics reputation, shall
25disclose the full contract to an official of the postsecondary
26educational institution at which the athlete is enrolled
27designated by the institution for that purpose. The
28institution and designated official shall not disclose to
29any other person the terms of such contract that the college
30athlete or the college athlete’s legal representative deems to
31be a trade secret or otherwise confidential.
32 Sec. 6. NEW SECTION. 261I.6 Compensation outside of
33official, mandatory team activities.
34The terms of a team contract of a postsecondary educational
35institution’s athletic program shall not prevent a college
-2-1athlete from receiving compensation for using the athlete’s
2name, image, or likeness rights, or athletic reputation for a
3commercial purpose when the athlete is not engaged in official,
4mandatory team activities if such activities are recorded in
5writing and made publicly available. Such team activities
6shall not exceed twenty hours per week during the athletic
7season and eight hours per week during the off-season.
8 Sec. 7. NEW SECTION. 261I.7 Certification by treasurer.
91. A person shall not provide professional representation
10to a college athlete as described in section 261I.3, subsection
111, without prior certification by the treasurer of state.
122. The treasurer of state shall establish by rule pursuant
13to chapter 17A certification processes for the persons
14described in subsection 1. The treasurer of state shall only
15certify persons who have significant qualifications for, or
16demonstrated experience providing, representation to college
17athletes in negotiations or financial or other relationships
18with athletic associations, conferences, or other groups or
19organizations with authority over intercollegiate athletics.
20 Sec. 8. NEW SECTION. 261I.8 Legal requirements —
21applicability.
221. This chapter applies to contracts entered into,
23modified, or renewed on or after the effective date of this
24Act.
252. College athletes, postsecondary educational
26institutions, athletic associations, conferences, or other
27groups or organizations with authority over intercollegiate
28athletics, and state or local officials seeking to prosecute
29violators of this chapter, shall not be deprived of any
30protections provided under Iowa law with respect to a
31controversy that arises in Iowa and shall have the right to
32adjudication in Iowa of a legal claim that arises in Iowa.
333. A legal settlement shall not permit noncompliance with
34this chapter. Any such provision is void and unenforceable.
35 Sec. 9. NEW SECTION. 261I.9 Severability.
-3- 1The provisions of this chapter are severable pursuant to
2section 4.12.
3 Sec. 10. EFFECTIVE DATE. This Act, being deemed of
4immediate importance, takes effect upon enactment.
5 Sec. 11. APPLICABILITY. This Act applies to any
6agreement or contract newly entered into, renewed, modified,
7or extended on or after the earlier of July 1, 2021; the
8effective date of any substantially similar state or federal
9law; or the effective date of an athletic association or
10athletic conference rule regarding name, image, and likeness
11compensation for student athletes if a postsecondary
12educational institution, as defined in section 261I.1, as
13enacted by this Act, is a member of such athletic association
14or athletic conference. For purposes of this section,
15“agreement or contract” includes but is not limited to the
16national letter of intent, a college athlete’s financial aid
17agreement, a commercial contract, and rules or bylaws of an
18athletic conference or athletic association.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to the compensation of athletes enrolled
23at postsecondary educational institutions. The bill
24defines “postsecondary educational institution” as a regents
25institution, community college, or private postsecondary
26educational institution in Iowa.
27The bill prohibits a postsecondary educational institution
28from enforcing any rule, requirement, standard, or other
29limitation that prevents a college athlete enrolled at the
30institution from fully participating in intercollegiate
31athletics and earning compensation; receiving food, shelter,
32or insurance coverage; or receiving payment for the cost of
33food, shelter, insurance coverage, or medical care as a result
34of the use of the athlete’s name, image, or likeness rights,
35or athletic reputation or that otherwise penalizes such an
-4-1athlete. The bill provides that a college athlete’s financial
2aid eligibility, amount, duration, or renewal, or any other
3benefit for which the athlete is otherwise eligible, shall not
4be affected by the athlete earning compensation or such other
5specified items from the use of an athlete’s name, image, or
6likeness rights, or athletic reputation.
7The bill prohibits a postsecondary educational institution
8from interfering with or preventing a college athlete enrolled
9at the institution from fully participating in intercollegiate
10athletics for obtaining professional representation in
11relation to contracts or legal matters. The bill provides
12that professional representation provided to college athletes
13enrolled at a postsecondary educational institution by athlete
14agents, financial advisors, or attorneys shall only be provided
15by persons licensed in the state of Iowa.
16The bill prohibits a person from offering to enter into
17a contract with a college athlete to provide compensation to
18the athlete for use of the athlete’s name, image, or likeness
19rights, or athletics reputation that requires the athlete to
20engage in in-person advertising for the person during official,
21mandatory team activities without approval from the athlete’s
22postsecondary educational institution.
23The bill requires a college athlete who enters into a
24contract providing compensation to the athlete for use of
25the athlete’s name, image, or likeness rights, or athletics
26reputation, to disclose the full contract to a designated
27official of the postsecondary educational institution at which
28the athlete is enrolled and provides for the nondisclosure of
29the terms of such a contract.
30The bill provides that the terms of a team contract of a
31postsecondary educational institution’s athletic program shall
32not prevent a college athlete from receiving compensation
33for using the athlete’s name, image, or likeness rights, or
34athletic reputation for a commercial purpose when the athlete
35is not engaged in official, mandatory team activities if such
-5-1activities are recorded in writing and made publicly available.
2The bill limits such team activities to 20 hours per week
3during the athletic season and eight hours per week during the
4off-season.
5The bill requires certification by the treasurer of state
6before a person may provide professional representation to a
7college athlete as described in the bill. The bill requires
8the treasurer of state to establish certification processes
9by rule and to only certify persons who have significant
10qualifications for, or demonstrated experience providing,
11representation to college athletes in negotiations or
12financial or other relationships with athletic associations,
13conferences, or other groups or organizations with authority
14over intercollegiate athletics.
15The bill applies to contracts entered into, modified, or
16renewed on or after the effective date of the bill.
17The bill provides that college athletes; postsecondary
18educational institutions; athletic associations, conferences,
19or other groups or organizations with authority over
20intercollegiate athletics; and state or local officials seeking
21to prosecute violators of the bill shall not be deprived
22of any protections provided under Iowa law with respect to
23a controversy that arises in Iowa and shall have the right
24to adjudication in Iowa of a legal claim that arises in
25Iowa. The bill provides that a legal settlement that permits
26noncompliance with the bill is void and unenforceable.
27The bill includes severability provisions.
28The bill is effective upon enactment and applies to any
29agreement or contract, as defined in the bill, newly entered
30into, renewed, modified, or extended on or after the earlier
31of July 1, 2021; the effective date of any substantially
32similar state or federal law; or the effective date of an
33athletic association or athletic conference rule regarding
34name, image, and likeness compensation for student athletes if
35a postsecondary educational institution in Iowa is a member of
-6-1such athletic association or athletic conference.
-7-je/jh
2including effective date and applicability provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 261I.1 Definition.
2For purposes of this chapter, “postsecondary educational
3institution” means a regents institution, community college, or
4private postsecondary educational institution in Iowa.
5 Sec. 2. NEW SECTION. 261I.2 Compensation of college
6athletes — limitation on postsecondary institutions.
71. a. A postsecondary educational institution shall not
8enforce any rule, requirement, standard, or other limitation
9that prevents a college athlete enrolled at the institution
10from fully participating in intercollegiate athletics and doing
11any of the following as a result of the use of the athlete’s
12name, image, or likeness rights, or athletic reputation, or
13that otherwise penalizes such an athlete:
14(1) Earning compensation.
15(2) Receiving food, shelter, or insurance coverage, or
16receiving payment for the cost of food, shelter, insurance
17coverage, or medical care.
18b. A college athlete’s financial aid eligibility, amount,
19duration, or renewal, or any other benefit for which the
20athlete is otherwise eligible, shall not be affected by
21the athlete receiving an item described in paragraph “a”,
22subparagraph (1) or (2), from the use of an athlete’s name,
23image, or likeness rights, or athletic reputation.
242. For purposes of this chapter, financial aid from a
25postsecondary educational institution in which a college
26athlete is enrolled is not compensation for use of the
27athlete’s name, image, and likeness rights, or athletic
28reputation. Such financial aid shall not be revoked or reduced
29as a result of an athlete receiving an item described in
30subsection 1, paragraph “a”, subparagraph (1) or (2), pursuant
31to this chapter.
32 Sec. 3. NEW SECTION. 261I.3 College athletes —
33professional representation.
341. A postsecondary educational institution shall not
35interfere with or prevent a college athlete enrolled at a
-1-1postsecondary educational institution from fully participating
2in intercollegiate athletics for obtaining professional
3representation in relation to contracts or legal matters,
4including but not limited to representation provided by athlete
5agents or financial advisors, or legal representation provided
6by attorneys.
72. Professional representation provided to college athletes
8enrolled at a postsecondary educational institution by athlete
9agents, financial advisors, or attorneys shall only be provided
10by persons licensed in the state of Iowa.
11 Sec. 4. NEW SECTION. 261I.4 College athletes — contracts
12for advertising.
13A person shall not offer to enter into a contract with a
14college athlete to provide compensation to the athlete for use
15of the athlete’s name, image, or likeness rights, or athletics
16reputation that requires the athlete to engage in in-person
17advertising for the person during official, mandatory team
18activities without approval from the athlete’s postsecondary
19educational institution.
20 Sec. 5. NEW SECTION. 261I.5 Disclosure of contract —
21confidentiality.
22A college athlete who enters into a contract providing
23compensation to the athlete for use of the athlete’s name,
24image, or likeness rights, or athletics reputation, shall
25disclose the full contract to an official of the postsecondary
26educational institution at which the athlete is enrolled
27designated by the institution for that purpose. The
28institution and designated official shall not disclose to
29any other person the terms of such contract that the college
30athlete or the college athlete’s legal representative deems to
31be a trade secret or otherwise confidential.
32 Sec. 6. NEW SECTION. 261I.6 Compensation outside of
33official, mandatory team activities.
34The terms of a team contract of a postsecondary educational
35institution’s athletic program shall not prevent a college
-2-1athlete from receiving compensation for using the athlete’s
2name, image, or likeness rights, or athletic reputation for a
3commercial purpose when the athlete is not engaged in official,
4mandatory team activities if such activities are recorded in
5writing and made publicly available. Such team activities
6shall not exceed twenty hours per week during the athletic
7season and eight hours per week during the off-season.
8 Sec. 7. NEW SECTION. 261I.7 Certification by treasurer.
91. A person shall not provide professional representation
10to a college athlete as described in section 261I.3, subsection
111, without prior certification by the treasurer of state.
122. The treasurer of state shall establish by rule pursuant
13to chapter 17A certification processes for the persons
14described in subsection 1. The treasurer of state shall only
15certify persons who have significant qualifications for, or
16demonstrated experience providing, representation to college
17athletes in negotiations or financial or other relationships
18with athletic associations, conferences, or other groups or
19organizations with authority over intercollegiate athletics.
20 Sec. 8. NEW SECTION. 261I.8 Legal requirements —
21applicability.
221. This chapter applies to contracts entered into,
23modified, or renewed on or after the effective date of this
24Act.
252. College athletes, postsecondary educational
26institutions, athletic associations, conferences, or other
27groups or organizations with authority over intercollegiate
28athletics, and state or local officials seeking to prosecute
29violators of this chapter, shall not be deprived of any
30protections provided under Iowa law with respect to a
31controversy that arises in Iowa and shall have the right to
32adjudication in Iowa of a legal claim that arises in Iowa.
333. A legal settlement shall not permit noncompliance with
34this chapter. Any such provision is void and unenforceable.
35 Sec. 9. NEW SECTION. 261I.9 Severability.
-3- 1The provisions of this chapter are severable pursuant to
2section 4.12.
3 Sec. 10. EFFECTIVE DATE. This Act, being deemed of
4immediate importance, takes effect upon enactment.
5 Sec. 11. APPLICABILITY. This Act applies to any
6agreement or contract newly entered into, renewed, modified,
7or extended on or after the earlier of July 1, 2021; the
8effective date of any substantially similar state or federal
9law; or the effective date of an athletic association or
10athletic conference rule regarding name, image, and likeness
11compensation for student athletes if a postsecondary
12educational institution, as defined in section 261I.1, as
13enacted by this Act, is a member of such athletic association
14or athletic conference. For purposes of this section,
15“agreement or contract” includes but is not limited to the
16national letter of intent, a college athlete’s financial aid
17agreement, a commercial contract, and rules or bylaws of an
18athletic conference or athletic association.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to the compensation of athletes enrolled
23at postsecondary educational institutions. The bill
24defines “postsecondary educational institution” as a regents
25institution, community college, or private postsecondary
26educational institution in Iowa.
27The bill prohibits a postsecondary educational institution
28from enforcing any rule, requirement, standard, or other
29limitation that prevents a college athlete enrolled at the
30institution from fully participating in intercollegiate
31athletics and earning compensation; receiving food, shelter,
32or insurance coverage; or receiving payment for the cost of
33food, shelter, insurance coverage, or medical care as a result
34of the use of the athlete’s name, image, or likeness rights,
35or athletic reputation or that otherwise penalizes such an
-4-1athlete. The bill provides that a college athlete’s financial
2aid eligibility, amount, duration, or renewal, or any other
3benefit for which the athlete is otherwise eligible, shall not
4be affected by the athlete earning compensation or such other
5specified items from the use of an athlete’s name, image, or
6likeness rights, or athletic reputation.
7The bill prohibits a postsecondary educational institution
8from interfering with or preventing a college athlete enrolled
9at the institution from fully participating in intercollegiate
10athletics for obtaining professional representation in
11relation to contracts or legal matters. The bill provides
12that professional representation provided to college athletes
13enrolled at a postsecondary educational institution by athlete
14agents, financial advisors, or attorneys shall only be provided
15by persons licensed in the state of Iowa.
16The bill prohibits a person from offering to enter into
17a contract with a college athlete to provide compensation to
18the athlete for use of the athlete’s name, image, or likeness
19rights, or athletics reputation that requires the athlete to
20engage in in-person advertising for the person during official,
21mandatory team activities without approval from the athlete’s
22postsecondary educational institution.
23The bill requires a college athlete who enters into a
24contract providing compensation to the athlete for use of
25the athlete’s name, image, or likeness rights, or athletics
26reputation, to disclose the full contract to a designated
27official of the postsecondary educational institution at which
28the athlete is enrolled and provides for the nondisclosure of
29the terms of such a contract.
30The bill provides that the terms of a team contract of a
31postsecondary educational institution’s athletic program shall
32not prevent a college athlete from receiving compensation
33for using the athlete’s name, image, or likeness rights, or
34athletic reputation for a commercial purpose when the athlete
35is not engaged in official, mandatory team activities if such
-5-1activities are recorded in writing and made publicly available.
2The bill limits such team activities to 20 hours per week
3during the athletic season and eight hours per week during the
4off-season.
5The bill requires certification by the treasurer of state
6before a person may provide professional representation to a
7college athlete as described in the bill. The bill requires
8the treasurer of state to establish certification processes
9by rule and to only certify persons who have significant
10qualifications for, or demonstrated experience providing,
11representation to college athletes in negotiations or
12financial or other relationships with athletic associations,
13conferences, or other groups or organizations with authority
14over intercollegiate athletics.
15The bill applies to contracts entered into, modified, or
16renewed on or after the effective date of the bill.
17The bill provides that college athletes; postsecondary
18educational institutions; athletic associations, conferences,
19or other groups or organizations with authority over
20intercollegiate athletics; and state or local officials seeking
21to prosecute violators of the bill shall not be deprived
22of any protections provided under Iowa law with respect to
23a controversy that arises in Iowa and shall have the right
24to adjudication in Iowa of a legal claim that arises in
25Iowa. The bill provides that a legal settlement that permits
26noncompliance with the bill is void and unenforceable.
27The bill includes severability provisions.
28The bill is effective upon enactment and applies to any
29agreement or contract, as defined in the bill, newly entered
30into, renewed, modified, or extended on or after the earlier
31of July 1, 2021; the effective date of any substantially
32similar state or federal law; or the effective date of an
33athletic association or athletic conference rule regarding
34name, image, and likeness compensation for student athletes if
35a postsecondary educational institution in Iowa is a member of
-6-1such athletic association or athletic conference.
-7-je/jh