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S. 414: Amateur Athletes Protection and Compensation Act of 2021

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The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Feb 24, 2021.

Amateur Athletes Protection and Compensation Act of 2021

This bill provides standards relating to compensation for the use of the names, images, and likenesses of amateur intercollegiate athletes and protections for these athletes.

Specifically, compensation for such an athlete may only be provided by unaffiliated third parties. Currently the National Collegiate Athletic Association and colleges generally prohibit student athletes from receiving compensation.

A national amateur athletic association or institution of higher education may not punish an athlete in an amateur intercollegiate athletic event or competition based on the athlete having entered into an agency contract with an amateur athlete representative certified by the Amateur Intercollegiate Athletics Corporation (AIAC) established by this bill. The AIAC shall serve as a clearinghouse for best practices with respect to the rights and protections of amateur intercollegiate athletes who enter into agency and endorsement contracts.

The bill requires institutions of higher education to provide a certain level of health care coverage for such athletes. Such institutions must make specified legally binding disclosures to each athlete before he or she commits to enroll in or attend the institution.

The institution must comply with requirements of this bill in order to participate in certain federal student financial aid programs.