Amended IN Senate March 16, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1401Introduced by Senator BradfordFebruary 18, 2022 An act to amend Section 66270 of the Education Code, relating to postsecondary education. An act to add Chapter 3 (commencing with Section 67470) to Part 40.3 of Division 5 of Title 3 of the Education Code, relating to postsecondary education.LEGISLATIVE COUNSEL'S DIGESTSB 1401, as amended, Bradford. Postsecondary education: discrimination. College Athlete Race and Gender Equity Act.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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 3 (commencing with Section 67470) is added to Part 40.3 of Division 5 of Title 3 of the Education Code, to read: CHAPTER 3. The College Athlete Race and Gender Equity Act67470. (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.
Amended IN Senate March 16, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1401Introduced by Senator BradfordFebruary 18, 2022 An act to amend Section 66270 of the Education Code, relating to postsecondary education. An act to add Chapter 3 (commencing with Section 67470) to Part 40.3 of Division 5 of Title 3 of the Education Code, relating to postsecondary education.LEGISLATIVE COUNSEL'S DIGESTSB 1401, as amended, Bradford. Postsecondary education: discrimination. College Athlete Race and Gender Equity Act.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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES
Amended IN Senate March 16, 2022
Amended IN Senate March 16, 2022
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Senate Bill
No. 1401
Introduced by Senator BradfordFebruary 18, 2022
Introduced by Senator Bradford
February 18, 2022
An act to amend Section 66270 of the Education Code, relating to postsecondary education. An act to add Chapter 3 (commencing with Section 67470) to Part 40.3 of Division 5 of Title 3 of the Education Code, relating to postsecondary education.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 1401, as amended, Bradford. Postsecondary education: discrimination. College Athlete Race and Gender Equity Act.
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 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.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Chapter 3 (commencing with Section 67470) is added to Part 40.3 of Division 5 of Title 3 of the Education Code, to read: CHAPTER 3. The College Athlete Race and Gender Equity Act67470. (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.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Chapter 3 (commencing with Section 67470) is added to Part 40.3 of Division 5 of Title 3 of the Education Code, to read: CHAPTER 3. The College Athlete Race and Gender Equity Act67470. (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.
SECTION 1. Chapter 3 (commencing with Section 67470) is added to Part 40.3 of Division 5 of Title 3 of the Education Code, to read:
### SECTION 1.
CHAPTER 3. The College Athlete Race and Gender Equity Act67470. (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.
CHAPTER 3. The College Athlete Race and Gender Equity Act67470. (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.
CHAPTER 3. The College Athlete Race and Gender Equity Act
CHAPTER 3. The College Athlete Race and Gender Equity Act
67470. (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.
67470. (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.
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.
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.
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.
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).
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.
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.
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.
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.
### SEC. 2.
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.