SB 1401: College Athlete Race and Gender Equity Act.
- Session Year: 2021-2022
- House: Senate
- Latest Version Date: 2022-04-25
The Student Athlete Bill of Rights prohibits California postsecondary educational institutions from upholding any rule, requirement, standard or other limitation that prevents an intercollegiate student athlete from earning compensation as a result of the use of the students name, image, or likeness. likeness, or athletic reputation. Existing law prohibits a postsecondary educational institution, athletic association, conference or other group or organization with authority over intercollegiate athletics from providing a prospective student athlete with compensation in relation to the athletes name, image, or likeness. likeness, or athletic reputation. Existing law authorizes an institution of higher education to establish a degree completion fund, in accordance with applicable rules and bylaws of the governing body of the institution and applicable rules and bylaws of any athletic association of which the institution is a member.
This bill would require institutions of higher education with sports in which 50% of the total sports revenue in the state exceeds the total aggregate grant-in-aid athletics scholarship amount provided to college athletes in the sport during the reporting year to pay an athlete degree completion distribution to each qualifying college athlete based on a specified calculation. The bill would require an institution of higher education to deposit, on an annual basis, the athlete degree completion distribution into a qualifying college athletes Athlete Degree Completion Fund established by a designated third party that meets specified requirements. The bill would require the athlete degree completion distribution to be distributed by the designated third party, as specified, to each qualifying college athlete who would have access to up to $25,000 per annual distribution and would be entitled to the remaining athlete degree completion distribution if they complete an undergraduate baccalaureate degree within 7 years from when they enrolled at an institution of higher education.This bill would require each institution of higher education to comply with Title IX of the federal Education Amendments of 1972 as it applies to college athletics, to suspend an athletic director from intercollegiate athletics responsibilities in the state for 3 years if Title IX compliance is not achieved on or before January 1, 2026, and maintained for at least 18 months in each 36-month period after January 1, 2026, and to preserve each athletic programs college athletes educational opportunities and grant-in-aid athletic scholarship amounts, including by requiring program and athletic personnel salary cost-cutting options to be implemented before, or simultaneously with, any reduction in college athletes aggregate unduplicated participation numbers or grant-in-aid athletic scholarship amounts. To the extent the bill would impose additional obligations on community college districts, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.This bill would instead require institutions of higher education to establish a degree completion fund for each of its student athletes in accordance with applicable rules and bylaws of the governing body of the institution and applicable rules and bylaws of any athletic association of which the institution is a member, as provided. The bill would require a student athlete to have immediate access to funds in the degree completion fund of up to $25,000 per academic year, to register and provide their institution of higher education with the information necessary to establish a degree completion fund, and if the student athlete completes an undergraduate baccalaureate degree within 6 years from when the student athlete first enrolls at an institution of higher education, to receive the balance of their degree completion fund within 60 days of showing proof of completion.
This bill would, among other things, require the amount to be deposited into a student athletes degree completion fund by the institution of higher education to be determined by subtracting the amount of grant-in-aid athletic scholarships offered in the student athletes sport from 50% of the athletic programs revenue for that individual sport, divided among each student athlete in that sport, with the resulting quotient allocated to the student athletes degree completion fund. The bill would prohibit a transfer of funds from an institution of higher education to a student athlete from constituting a payment for purposes of establishing an employment relationship between a student athlete and their institution of higher education, and would prohibit a grant-in-aid athletic scholarship from being reduced as a result of a transfer of funds from an institution of higher education to a student athlete for purposes of a degree completion fund.
Existing law prohibits California postsecondary educational institutions from upholding any rule, requirement, standard or other limitation that prevents an intercollegiate student athlete from earning compensation as a result of the use of the students name, image, or likeness. Existing law prohibits a postsecondary educational institution, athletic association, conference or other group or organization with authority over intercollegiate athletics from providing a prospective student athlete with compensation in relation to the athletes name, image, or likeness.
This bill would require institutions of higher education with sports in which 50% of the total sports revenue in the state exceeds the total aggregate grant-in-aid athletics scholarship amount provided to college athletes in the sport during the reporting year to pay an athlete degree completion distribution to each qualifying college athlete based on a specified calculation. The bill would require an institution of higher education to deposit, on an annual basis, the athlete degree completion distribution into a qualifying college athletes Athlete Degree Completion Fund established by a designated third party that meets specified requirements. The bill would require the athlete degree completion distribution to be distributed by the designated third party, as specified, to each qualifying college athlete who would have access to up to $25,000 per annual distribution and would be entitled to the remaining athlete degree completion distribution if they complete an undergraduate baccalaureate degree within 7 years from when they enrolled at an institution of higher education.
This bill would require each institution of higher education to comply with Title IX of the federal Education Amendments of 1972 as it applies to college athletics, to suspend an athletic director from intercollegiate athletics responsibilities in the state for 3 years if Title IX compliance is not achieved on or before January 1, 2026, and maintained for at least 18 months in each 36-month period after January 1, 2026, and to preserve each athletic programs college athletes educational opportunities and grant-in-aid athletic scholarship amounts, including by requiring program and athletic personnel salary cost-cutting options to be implemented before, or simultaneously with, any reduction in college athletes aggregate unduplicated participation numbers or grant-in-aid athletic scholarship amounts. To the extent the bill would impose additional obligations on community college districts, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law prohibits a person from being subjected to discrimination on the basis of specified attributes, including, among others, disability or gender, in a program or activity conducted by a postsecondary educational institution that receives, or benefits from, state financial assistance or enrolls students who receive state student financial aid.This bill would make nonsubstantive changes to that provision.Existing law prohibits a person from being subjected to discrimination on the basis of specified attributes, including, among others, disability or gender, in a program or activity conducted by a postsecondary educational institution that receives, or benefits from, state financial assistance or enrolls students who receive state student financial aid.
This bill would make nonsubstantive changes to that provision.
(a)The Legislature finds and declares all of the following:
(1)Data clearly shows that college athletes of color in the sports of football and mens basketball have graduated at rates lower than those of other students, other athletes, and their teammates.
(2)Scholars have concluded that Black college athletes as a group often experience educational neglect due to a range of issues, including the lack of adequate academic learning support, practices associated with maintaining athletic eligibility instead of academic advancement, academic clustering, and limitations placed on course selections and academic majors.
(3)In March 2018, the University of Southern California Race and Equity Center released a report that 40 percent of the universities studied reported a decline in graduation rates for Black male athletes between 2016 and 2018, inclusive.
(4)Californias Football Bowl Subdivision football players and Division I men and women basketball players are predominantly Black, and are the only college athletes in the state who do not receive at least 50 percent of the revenue that they produce.
(5)Excessive athletic program expenditures on salaries, administration, and facilities are not necessary to field intercollegiate athletics and should be partially redirected to address racial and gender-based inequities endured by college athletes.
(6)Federal courts, including the United States Supreme Court, have ruled that National Collegiate Athletic Association policies limiting college athlete compensation violate federal antitrust law at the expense of college athletes in California and nationwide.
(b)It is the intent of the Legislature to continue to develop policies to ensure appropriate protections are in place to avoid exploitation of student athletes.
67471.(a)(1)An institution of higher education shall establish a degree completion fund for each of its student athletes in accordance with applicable rules and bylaws of the governing body of the institution and applicable rules and bylaws of any athletic association of which the institution is a member.
(2)A student athlete who completes an undergraduate baccalaureate degree within six years from when the student athlete first enrolls at an institution of higher education shall receive the balance of their degree completion fund within 60 days of showing proof of degree completion.
(3)The institution of higher education shall transfer the remaining balance of a student athletes degree completion fund to the student athlete in the form of a check or electronic payment.
(b)A student athlete shall have immediate access to funds in their degree completion fund of up to twenty-five thousand dollars ($25,000) per academic year.
(c)A student athlete shall register and provide their institution of higher education with the information necessary to establish a degree completion fund pursuant to this chapter.
(d)The institution of higher education shall have a fiduciary duty to each student athlete whose degree completion fund is managed pursuant to this chapter. A student athlete shall not be charged for any costs incurred by the institution of higher education for administering or managing the student athletes degree completion fund. A student athletes degree completion fund is not the property of the institution of higher education.
67472.(a)The amount deposited into a student athletes degree completion fund by the institution of higher education shall be determined by subtracting the amount of grant-in-aid athletic scholarships offered in the student athletes sport from 50 percent of the athletic programs revenue for that individual sport. The difference shall be divided among each student athlete in that sport. The resulting quotient shall be allocated to the student athletes degree completion fund.
(b)Notwithstanding any other law, a transfer of funds from an institution of higher education to a student athlete shall not constitute a payment for purposes of establishing an employment relationship between a student athlete and their institution of higher education.
(c)A student grant-in-aid athletic scholarship shall not be reduced as a result of a transfer of funds from an institution of higher education to a student athlete for purposes of a degree completion fund.
67473.(a)(1)If a student athlete transfers to a different institution of higher education and participates in their athletic program, the remaining balance of the student athletes degree completion fund shall be transferred to the institution of higher education that the student athlete transferred to within 60 days of that student athlete enrolling in that institution of higher education. An institution of higher education receiving a student athletes degree completion fund shall begin managing that student athletes fund in the same manner it manages all other student athlete degree completion funds at that institution of higher education.
(2)If a student athletes chooses to no longer participate in an athletic program after transferring, the student athlete shall forfeit their degree completion fund after the institution of higher education receives the student athletes degree completion fund. The remaining balance shall be redistributed back into the athletic program of the institution of higher education to which the student athlete transferred.
(b)If a student athlete transfers to an athletic program at a community college, the student athlete shall forfeit their degree completion fund. The remaining balance of the student athletes degree completion fund shall be redistributed back into the institution of higher educations athletic program.
67474.(a)A student athlete shall forfeit their degree completion fund, and the remaining balance shall be redistributed back into the institution of higher educations athletic program, in any of the following scenarios:
(1)The student athlete does not complete an undergraduate baccalaureate degree within six years of first enrolling in an institution of higher education.
(2)The student athlete transfers to an athletic program at a community college.
(3)The student athlete transfers to an out-of-state institution of higher education and participates in an athletic program at that institution of higher education
(4)The student athlete chooses to no longer participate in an athletic program.
(b)Notwithstanding subdivision (a), a student athlete with medical proof of suffering a debilitating injury or condition resulting from their participation in an athletic program at their institution of higher education that would significantly interfere with the completion of an undergraduate baccalaureate degree shall receive the remaining balance of their degree completion fund within 60 days of showing proof of the injury or condition.
All matter omitted in this version of the bill appears in the bill as amended in the Senate, March 16, 2022. (JR11)(a)The Legislature finds and declares all of the following:
(1)Data clearly shows that college athletes of color in the sports of football and mens basketball have graduated at rates lower than those of other students, other athletes, and their teammates.
(2)Scholars have concluded that Black college athletes as a group often experience educational neglect due to a range of issues, including the lack of adequate academic learning support, practices associated with maintaining athletic eligibility instead of academic advancement, academic clustering, and limitations placed on course selections and academic majors.
(3)In March 2018, the University of Southern California Race and Equity Center, released a report that 40 percent of the universities studied reported a decline in graduation rates for Black male athletes between 2016 and 2018, inclusive.
(4)Californias Football Bowl Subdivision football players and Division I men and women basketball players are predominantly Black, and are the only college athletes in the state who do not receive at least 50 percent of the revenue that they produce.
(5)Excessive athletic program expenditures on salaries, administration, and facilities are not necessary to field intercollegiate athletics and should be partially redirected to address racial and gender-based inequities endured by college athletes.
(6)Federal courts, including the United States Supreme Court, have ruled National Collegiate Athletic Association policies limiting college athlete compensation to be in violation of federal antitrust law at the expense of college athletes in California and nationwide.
(b)It is the intent of the Legislature to continue to develop policies to ensure appropriate protections are in place to avoid exploitation of student athletes.
67471.For purposes of this chapter, the following definitions apply:
(a)Athletic program means an intercollegiate athletic program at an institution of higher education. Club and intramural programs are excluded.
(b)College athlete means a college or university student who participates in an athletic program at any time during a calendar year and receives an athletic grant-in-aid scholarship.
(c)Institution of higher education means a public or private four-year college or university located in the state, or a public or private two-year college located in the state that maintains an athletic program.
(d)Qualifying college athlete means a college athlete that is eligible to receive an athlete degree completion distribution as described in Section 67472.
(e)Third party means an athletic conference or other third party designated by an institution of higher education or collectively by multiple institutions of higher education that have qualifying college athletes.
67472.(a)(1)An athlete degree completion distribution shall be made to a qualifying college athlete who completes an undergraduate baccalaureate degree within seven years from when the college athlete enrolled at an institution of higher education.
(2)A college athlete shall be a qualifying college athlete at an institution of higher education in each sport that is designated in an athletic association division or subdivision, such as NCAA Division I, or the Football Bowl Subdivision, in which 50 percent of the sports aggregate revenue in the state, as reported to the United States Department of Education, exceeds the total aggregate grant-in-aid athletic scholarships amount provided to college athletes in that sport, within the division or subdivision, during a reporting year.
(b)(1)The athlete degree completion distribution amount for a college athlete shall be determined for each sport, and division or subdivision, by subtracting the total aggregate grant-in-aid athletic scholarships amount provided to college athletes in a sport from 50 percent of the total sports revenue in the state, as reported to the United States Department of Education. That difference shall be divided by the total number of college athletes receiving a grant-in-aid athletic scholarship in that sport during the reporting year. The resulting quotient shall be the athlete degree completion distribution amount that will be distributed to a qualifying college athlete pursuant to Section 67473.
(2)(A)An institution of higher education may choose to base athlete degree completion distributions on aggregate athletic association division and subdivision total sports revenue and grant-in-aid information instead of aggregate total sports revenue and grant-in-aid information for institutions solely in the state, provided the calculations for athlete degree completion distributions comply with this chapter.
(B)Subparagraph (A) shall not apply for a sport where a college athlete would qualify for an athlete degree completion distribution under paragraph (1) but not subparagraph (A).
(3)An institution of higher education shall not change how it identifies divisions or subdivision, or generates, receives, accounts for, or reports total sports revenue to purposefully or inadvertently reduce an athlete degree completion distribution.
(c)An institution of higher education has a fiduciary duty to collect athlete degree completion distributions in an amount that satisfies subdivision (b) and deposit them, on an annual basis, into a college athletes Athlete Degree Completion Fund, established by the designated third party pursuant to Section 67473, no later than 15 days after the federal deadline to report total sports revenue to the United States Department of Education, as required by the federal Equity in Athletics Disclosure Act (20 U.S.C. Sec. 1092).
(1)An institution of higher education shall not take possession of athlete degree completion distribution funds, and the funds shall be managed and allocated according to this chapter by the designated third party.
(2)Athlete degree completion distribution funds are the property of qualifying college athletes and shall not be considered revenue or an expense for an institution of higher education.
(3)College athletes shall register with the designated third party and allow the designated third party access to necessary information to receive funds pursuant to this chapter.
(4)The designated third party shall keep college athletes registration information confidential and shall not sell the information.
(5)An institution of higher education shall provide the designated third party all necessary information and qualifying college athletes shall grant an institution of higher education the right to provide the information to the designated third party in order to be eligible to receive athlete degree completion distribution funds.
(d)An institution of higher education shall make public, and provide to its college athletes, all sport-specific revenue data, including athlete degree completion distribution calculations and payments, no later than 15 days after the federal deadline to report total sports revenue to the United States Department of Education, as required by the federal Equity in Athletics Disclosure Act (20 U.S.C. Sec. 1092).
(e)An institution of higher education shall conduct a financial development program of no less than 15 hours in duration once per year for all qualifying college athletes that receive an athlete degree completion distribution.
(1)The financial development program shall include, but not be limited to, assistance in establishing a budget and a long-term financial plan, including retirement, and information on asset appreciation and depreciation, real estate purchasing and investing, the significance of interest rates, the pitfalls of debt, their tax liability related to their athlete degree completion distribution, and the provisions of this chapter.
(2)The financial development program shall not include any marketing, advertising, referral, or solicitation by providers of financial products or services.
67473.(a)The third party designated to distribute athlete degree completion distributions pursuant to this chapter shall establish an Athlete Degree Completion Fund for each qualifying college athlete.
(1)The designated third party shall have at least 15 years experience in administering funds, including eligibility management, claims administration, recordkeeping, and compliance with state and federal law.
(2)The designated third party shall have a fiduciary duty to each qualifying college athlete whose funds it manages pursuant to this chapter.
(3)The designated third party shall have an up-to-date bond to protect athlete degree completion distributions.
(4)A qualifying college athlete shall not be charged for any costs incurred by the third party or an institution of higher education related to this chapter.
(5)All funds held by the designated third party shall be fully insured by the Federal Deposit Insurance Corporation (FDIC). If funds being held for a qualifying college athlete pursuant to this chapter exceed FDIC insurance limits, the designated third party shall open one or more additional FDIC insured accounts at other financial institutions to ensure that funds in any one account do not exceed FDIC limits.
(b)An institution of higher education shall regularly monitor the designated third party to ensure it fully complies with this chapter.
(c)From the Athlete Degree Completion Fund established pursuant to subdivision (a), the designated third party shall provide an athlete degree completion distribution to each qualifying college athlete in the amount determined pursuant to subdivision (b) of Section 67472.
(1)A qualifying college athlete shall have immediate access to funds of up to twenty-five thousand dollars ($25,000) per annual distribution.
(2)A qualifying college athlete shall gain access to the remainder of any athlete degree completion distribution within 45 calendar days of showing proof of completing an undergraduate baccalaureate degree within seven years of enrolling in an institution of higher education.
(3)A qualifying college athlete with medical proof of suffering a debilitating injury or condition that would significantly interfere with the completion of an undergraduate baccalaureate degree shall receive all funds within 45 calendar days.
(4)An athlete degree completion distribution designated for a qualifying college athlete who does not complete an undergraduate baccalaureate degree within seven years of enrolling in an institution of higher education is forfeited and shall be divided equally among qualifying college athletes of the same sport during that year and placed in their respective Athlete Degree Completion Fund.
(5)A qualifying college athlete may choose to receive any distribution in a lump sum or over a 12-month period.
(6)Any portion of an athlete degree completion distribution that remains unallocated because an institution of higher education overestimated how much money should go to the Athlete Degree Completion Fund shall be returned in full to that institution of higher education within 30 days.
(d)An athlete degree completion distribution provided to a qualifying college athlete pursuant to this chapter shall not be the property of an institution of higher education, shall not constitute a payment from an institution of higher education to a college athlete, shall not be considered financial aid, shall not cause a college athletes financial aid to be reduced, and does not establish or constitute evidence of an employment relationship between the college athlete and their institution of higher education.
(e)Any scheme, arrangement, or understanding that seeks to provide sports-specific athletics revenue to an institution of higher education in a way that would cloak its sports-specific purpose is a violation of this chapter and the affected college athletes shall have a right to private action to seek recovery.
(f)A representative or personnel of an institution of higher education who willfully violates Section 67472 or this section shall be subject to civil liability and, if found by a court of law to have violated either of these sections, shall be permanently banned from involvement in intercollegiate athletics in the state.
67474.(a)Each institution of higher education shall comply with Title IX of the federal Education Amendments of 1972 (20 U.S.C. Sec. 1681 et seq.), as it applies to college athletics by doing both of the following:
(1)Monitoring and evaluating its compliance with Title IX as it applies to athletics, and posting evaluations annually on its internet website.
(2)Ensuring that its Title IX coordinator is sufficiently knowledgeable about Title IX compliance, and making the designees name and contact information publicly available and known to its college athletes.
(b)An athletic director shall be suspended from involvement in intercollegiate athletics in the state for a period of three years if their institutions Title IX compliance evaluations show, the United States Department of Education determines, or a court of law rules, that Title IX compliance as it applies to athletics is not achieved on or before January 1, 2026, and maintained for at least 18 months in each 36-month period after January 1, 2026. This subdivision shall also apply to a newly hired athletic director who does not achieve Title IX compliance within three years of their hire date and does not maintain compliance for at least 18 months in each 36-month period thereafter.
67475.(a)An institution of higher education shall preserve its athletic programs college athletes educational opportunities and grant-in-aid athletic scholarship amounts to the greatest extent possible. All other available and prudent athletic program cost-cutting options, including a significant reduction of all athletic personnel salaries, shall be implemented before, or simultaneously with, any reduction in college athletes aggregate unduplicated participation numbers or grant-in-aid athletic scholarship amounts, as reported to the United States Department of Education in 2019.
(b)An athletic director shall be suspended from involvement in intercollegiate athletics in the state for a period of three years if their institution of higher education violates subdivision (a).
67476.(a)The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(b)A college athlete who is harmed by violations of this chapter has the right to a private action against a violator.
SEC. 2.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.Section 66270 of the Education Code is amended to read:66270.A person shall not be subjected to discrimination on the basis of disability, gender, gender identity, gender expression, nationality, race or ethnicity, religion, sexual orientation, or any characteristic listed or defined in Section 11135 of the Government Code or any other characteristic that is contained in the prohibition of hate crimes set forth in subdivision (a) of Section 422.6 of the Penal Code, including immigration status, in a program or activity conducted by a postsecondary educational institution that receives, or benefits from, state financial assistance or enrolls students who receive state student financial aid.No person shall A person shall not be subjected to discrimination on the basis of disability, gender, gender identity, gender expression, nationality, race or ethnicity, religion, sexual orientation, or any characteristic listed or defined in Section 11135 of the Government Code or any other characteristic that is contained in the prohibition of hate crimes set forth in subdivision (a) of Section 422.6 of the Penal Code, including immigration status, in any a program or activity conducted by any a postsecondary educational institution that receives, or benefits from, state financial assistance or enrolls students who receive state student financial aid.
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Date
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Status
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|---|---|
| May 19, 2022 | May 19 hearing: Held in committee and under submission. |
| May 13, 2022 | Set for hearing May 19. |
| May 9, 2022 | May 9 hearing: Placed on APPR suspense file. |
| Apr 29, 2022 | Set for hearing May 9. |
| Apr 27, 2022 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 1. Page 3515.) (April 26). Re-referred to Com. on APPR. |
| Apr 25, 2022 | Read second time and amended. Re-referred to Com. on JUD. |
| Apr 21, 2022 | From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 4. Noes 0. Page 3457.) (April 20). |
| Apr 7, 2022 | Set for hearing April 26 in JUD. pending receipt. |
| Apr 6, 2022 | Set for hearing April 20. |
| Apr 4, 2022 | April 6 set for first hearing canceled at the request of author. |
| Mar 24, 2022 | Set for hearing April 6. |
| Mar 23, 2022 | Re-referred to Coms. on ED. and JUD. |
| Mar 16, 2022 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Mar 9, 2022 | Referred to Com. on RLS. |
| Feb 22, 2022 | From printer. |
| Feb 18, 2022 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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