California Senate Bill SB1525 Amended / Bill

 BILL NUMBER: SB 1525AMENDED BILL TEXT AMENDED IN SENATE APRIL 26, 2012 AMENDED IN SENATE MARCH 27, 2012 INTRODUCED BY Senator Padilla FEBRUARY 24, 2012 An act to add Part 40.3 (commencing with Section 67450) to Division 5 of Title 3 of the Education Code, relating to postsecondary education  , and making an appropriation therefor  . LEGISLATIVE COUNSEL'S DIGEST SB 1525, as amended, Padilla. Postsecondary education: Student Athlete Bill of Rights. Existing law provides for a system of postsecondary education in this state. This system includes 4 segments: the University of California, administered by the Regents of the University of California; the California State University, administered by the Trustees of the California State University; the California Community Colleges, administered by the Board of Governors of the California Community Colleges; and independent institutions of higher education. This bill would enact the Student Athlete Bill of Rights, pursuant to which, commencing with the 2013-14 academic year, intercollegiate athletic programs at 4-year institutions of higher education in the state, as defined,  that receive, as an average, $10,000,000 or more in annual revenue derived from media   rights for intercollegiate athletics,  would be required to comply with prescribed requirements. Among other things, the bill would require that, if an athletic program, as defined, does not renew the athletic scholarship of a  qualifying  student athlete, as defined,  who suffers an injury resulting from his or her participation in the athletic program or whose athletic scholarship is not renewed for another nondisciplinary cause,  the institution of higher education would provide an equivalent scholarship, as prescribed.  The   The  bill would also require that athletic programs  that receive, as an average, $10,000,000 or more in annual revenue derived from media rights for intercollegiate athletics  be responsible for  any and all medical expenses   paying the premiums  of  each of  its student athletes  whose household has an income and asset level that does not exceed the level for Cal Grant A recipients, as specified, for insurance covering claims  resulting from their participation in the athletic program.  The bill would provide that the athletic program would be responsible for paying the insurance deductible amount applicable to the claim of any student athlete who suffers an injury resulting from his or her participation in the athletic program and makes a claim relating to that injury. These provisions would apply for up to 5 years after the date of the injury that is the subject of the claim.   The bill would require that the institutions of higher education to which these provisions relating to equivalent scholarships and insurance coverage apply would rely exclusively on revenue derived from media rights for intercollegiate athletics to defray any costs accrued under these provisions.   These provisions would become inoperative on January 1, 2021.   The bill would establish the State Trust Fund under the administration of the State Trust Fund Executive Board. The bill would specify the membership of the State Trust Fund Executive Board, and would provide that the Controller preside over that board. The bill would continuously appropriate the funds deposited in the State Trust Fund to the Controller for expenditure for purposes of the Student Athlete Bill of Rights, thereby making an appropriation.   The bill, commencing with the 2013-14 academic year, would require an athletic program that receives, as an average, $10,000,000 or more in annual revenue derived from media rights for intercollegiate athletics to pay a designated fee to the State Trust Fund.   The bill would require institutions of higher education subject to its provisions to set aside a certain amount to be used for achieving the gender equity requirements of a specified provision of federal law.   The bill would require the executive board to submit a report to the Governor and the Legislature with specified data related to fees collected and funds disbursed under the bill on or before August 1, 2014, and on or before August 1 every 3 years thereafter. This provision would become inoperative on January 1, 2021.  Vote:  2/3   majority  . Appropriation:  yes   no  . Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Part 40.3 (commencing with Section 67450) is added to Division 5 of Title 3 of the Education Code, to read: PART 40.3. STUDENT ATHLETE BILL OF RIGHTS CHAPTER 1. PREAMBLE 67450. The Legislature finds and declares all of the following: (a) Meeting the educational needs of student athletes should be a priority for intercollegiate athletic programs.  (b) Football and basketball student   (b) California's institutions of higher education that participate in Division I and Division II intercollegiate athletics collectively generate millions of dollars annually in media contracts, and this revenue would not exist without the efforts of student athletes.   (c)     Student  athletes generate large revenues for many athletic programs, spend approximately 40 hours per week participating in their respective sports, and suffer current and historically low graduation rates.  (c)   (d)  Providing adequate health and safety protection for student athletes can help prevent serious injury and death.  (d)   (e)  Current and former student athletes can be left to pay for medical expenses incurred from injuries suffered while participating in intercollegiate athletics.  (e)   (f)  Institutions of higher education should provide their student athletes with the same due process protection afforded to students who do not participate in athletics.  (f)   (g)  Athletic programs in this state are subject to  federal  gender equity requirements under Title IX of the Education Amendments of 1972 (20 U.S.C. Sec. 1681 et seq.).  (g)   (h)  An institution of higher education should not punish any student athlete for transferring to another institution of higher education. CHAPTER 2. GENERAL PROVISIONS 67451. For purposes of this part: (a) "Athletic association" means any organization that is responsible for governing intercollegiate athletic programs. (b) "Athletic program" means an intercollegiate athletic program at any institution of higher education within the meaning of subdivision  (f)   (d)  .  (c) "Athletic scholarship shortfall" means the difference between an institution of higher education's cost of attendance and the sum of a full grant-in-aid athletic scholarship, plus any stipend, excluding summer school, preseason, postseason, tournament, and expense payments.   (d) "Cost of attendance" means an institution of higher education' s total annual instate oncampus expenses officially reported to the United States Department of Education.   (e) "Executive board" means the State Trust Fund Executive Board established pursuant to Section 67455.   (c) "Graduation rate" means the percentage of student athletes who enroll at an institution of higher education who graduate from that institution within six years of their initial enrollment.   (f)   (d)  "Institution of higher education" means any campus of the University of California or the California State University, or any four-year private university located in California, that maintains an intercollegiate athletic program.  (g) "State Trust Fund" means the State Trust Fund established pursuant to Section 67455.   (h) "Qualifying student athlete" means a student athlete who participates in either basketball or football, and who is in compliance with athletic program academic and conduct standards.   (i)   (e)  "Student athlete" means any college student who participates in an intercollegiate athletic program of an institution of higher education, and includes student athletes who participate in basketball, football, and other intercollegiate sports. 67452. Commencing with the 2013-14 academic year, an athletic program shall comply with all of the following: (a) (1)  (A)    If an athletic program does not renew an athletic scholarship of a  qualifying  student athlete  who has suffered an injury resulting from his or her participation in the athletic program , the institution of higher education shall provide an equivalent scholarship that, combined with the total duration of any previous athletic scholarship or scholarships received by the student athlete, will be provided for a total of  at least five   up to six academic  years or until the student athlete completes his or her undergraduate degree, whichever period is shorter.  (B) If a student athlete takes a temporary leave of absence from an institution of higher education, the duration of that leave of absence shall not count against the six-year limit on eligibility for an equivalent scholarship imposed by subparagraph (A).   (2) If an athletic program does not renew an athletic scholarship of a student athlete for a nondisciplinary cause other than an injury resulting from his or her participation in the athletic program, the institution of higher education shall provide an equivalent scholarship, except that an athletic program with a graduation rate that is above 60 percent, disaggregated by sport, shall not be subject to the requirements of this paragraph.   (2)   (3)  An athletic program may dismiss a student athlete from participation in the program for cause. A student athlete who is dismissed for cause from an athletic program shall receive no benefits under this part, but may  apply to the executive board for reinstatement to eligibility for benefits under this part   appeal this decision within the institution of higher education attended by the student or within the conference or association of which that institution of higher education is a member, as appropriate  . (b) Each athletic program shall conduct a financial and life skills workshop for all of its first-year and third-year student athletes at the beginning of the academic year. This workshop shall include, but not be limited to, information concerning financial aid, debt management, and a recommended budget for full- and partial-scholarship student athletes living on or off campus during the academic year and the summer term based on the current academic year's cost of attendance. The workshop shall also include information on time management skills necessary for success as a student athlete, and academic resources available on campus. (c) An institution of higher education shall grant a student athlete the same rights as other students with regard to any and all matters related to possible adverse or disciplinary actions, including, but not necessarily limited to, actions involving his or her participation in the athletic program. (d) An athletic program shall promptly approve a  qualifying  student athlete's written request to transfer to another institution of higher education without actively or passively imposing any restrictions or conditions. Implementation of this subdivision by an institution of higher education shall include, but not necessarily be limited to, both of the following: (1) Granting other institutions of higher education permission to contact the student athlete. (2) Waiving residency requirements, as permitted by athletic association rules.  (e) An institution of higher education that receives, as an average, less than ten million dollars ($10,000,000) in annual income derived from media rights for intercollegiate athletics, as determined by the Controller, shall not be subject to the requirements of this section.   (f) An institution of higher education to which this section applies shall rely exclusively on revenue derived from media rights for intercollegiate athletics to defray any costs accrued under this section.  67453. (a)  (1)    An athletic program shall be responsible for  any and all medical expenses   paying the premiums of each  of its student athletes  whose household has an income and asset level that does not exceed the level for Cal Grant A recipients set forth in Section 69432.7 for insurance covering claims  resulting from their participation in the athletic program.  This subdivision shall apply irrespective of whether the student athlete is still in school, has graduated from the school, or has ceased being enrolled in the school so long as the medical expenses result from the student athlete's participation in the athletic program.   (2) An athletic program shall be responsible for paying the insurance deductible amount applicable to the claim of any student athlete who suffers an injury resulting from his or her participation in the athletic program and makes a claim relating to that injury.   (3) This subdivision shall apply for up to five years after the date of the injury that is the subject of the claim.  (b) An athletic program shall adopt and implement guidelines to prevent, assess, and treat sports-related concussions and dehydration. In addition, an athletic program shall adopt and implement exercise and supervision guidelines for any student athlete identified with potentially life-threatening health conditions who participates in an athletic program.  (c) An institution of higher education that receives, as an average, less than ten million dollars ($10,000,000) in annual income derived from media rights for intercollegiate athletics, as determined by the Controller, shall not be subject to the requirements of this section.   (d) An institution of higher education to which this section applies shall rely exclusively on revenue derived from media rights for intercollegiate athletics to defray any costs accrued under this section.   67454. This part shall become inoperative on January 1, 2021.   CHAPTER 3. STATE TRUST FUND 67455. (a) The State Trust Fund is hereby established under the administration of the State Trust Fund Executive Board. The State Trust Fund Executive Board shall consist of five members, as follows: (1) The Controller, who shall serve as the presiding officer of the executive board. (2) A representative of the University of California, appointed by and serving at the pleasure of the Regents of the University of California. (3) A representative of the California State University, appointed by and serving at the pleasure of the Trustees of the California State University. (4) The President of the Association of Independent California Colleges and Universities or his or her designee. (5) A representative of the public, appointed by and serving at the pleasure of the Governor. (b) The executive board shall develop and adopt rules and regulations for the implementation of this part. (c) Notwithstanding Section 13340 of the Government Code, the funds deposited in the State Trust Fund are continuously appropriated to the Controller for expenditure for purposes of this part. (d) (1) Commencing with the 2013-14 academic year, an institution of higher education with an athletic program that receives, as an average, ten million dollars ($10,000,000) or more in annual revenue derived from media rights for intercollegiate athletics, as determined by the Controller, shall be subject to this chapter. (2) An institution of higher education that receives, as an average, less than ten million dollars ($10,000,000) in annual income derived from media rights for intercollegiate athletics is not subject to this chapter if it submits a request for waiver to the executive board. The executive board shall grant the waiver, and the waiver shall remain valid unless and until the Controller determines, at a later date, that the athletic program receives annual revenue derived from media rights of at least an average of ten million dollars ($10,000,000) in annual revenue over the duration of the contract. The Controller shall periodically review the media rights arrangements of institutions of higher education subject to this part. (e) (1) An institution of higher education subject to this chapter shall pay to the State Trust Fund an annual fee that shall be the sum of the following: (A) An amount determined by the Controller to be equal to 25 percent of the most expensive cost of attendance among the institutions of higher education in this state subject to this chapter, multiplied by the total number of football and basketball student athletes who receive an athletic scholarship at that institution of higher education. (B) An amount that equals the athletic scholarship shortfall amount at the institution of higher education, as determined by the Controller, plus interest based on each year's unsubsidized federal Stafford Loan interest rate, multiplied by the total number of football and basketball student athletes who receive an athletic scholarship at any point during the academic year at that institution. The Controller shall adjust this amount annually for inflation according to the Consumer Price Index compiled by the Bureau of Labor Statistics of the United States Department of Labor. The State Trust Fund shall return this amount to the appropriate institution of higher education if the Controller does not encumber these funds and the funds are not used within two years from the annual fee deadline date. (2) A separate account shall be established in the State Trust Fund for depositing the fees paid by each institution of higher education subject to this chapter. 67456. An institution of higher education shall pay all fees by June 1 of each academic year beginning on June 1, 2013. Each athletic program shall pay a late fee of fifteen thousand dollars ($15,000) for each calendar day after the deadline that the fee payment is late. Any late fees shall be paid directly to the State Trust Fund, and shall be subsequently distributed evenly among the eligible fund recipients whose funds are put at risk due to a late payment. 67457. An institution of higher education shall set aside an amount equal to the amount described in subparagraph (B) of paragraph (1) of subdivision (e) of Section 67455 exclusively for achieving compliance with the gender equity requirements of Title IX of the Education Amendments of 1972 (20 U.S.C. Sec. 1681 et seq.). If Title IX compliance in athletics, as determined by the executive board, is achieved for a period of four consecutive years, any of these funds not necessary for continuously maintaining Title IX compliance shall not be subject to this section. 67458. (a) The executive board shall make public the amount of fees collected from each athletic program and shall submit a detailed report to the Governor and the Legislature on or before August 1, 2014, and on or before August 1 every three years thereafter. The report required by this section shall be submitted pursuant to Section 9795 of the Government Code. (b) This section shall become inoperative on January 1, 2021.