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Warning! This is a not the current version of this legislative bill.
Italicized text includes proposed additions to law or the previous version of the bill.
Struck text includes proposed deletions to law or the previous version of the bill.

(pdf version)
AMENDED IN SENATE APRIL 26, 2012
AMENDED IN SENATE MARCH 27, 2012

INTRODUCED BY Senator Padilla

FEBRUARY 24, 2012

An act to add Part 40.3 (commencing with Section 67450) to
Division 5 of Title 3 of the Education Code, relating to
postsecondary education , and making an appropriation
therefor
.


LEGISLATIVE COUNSEL'S DIGEST


SB 1525, as amended, Padilla. Postsecondary education: Student
Athlete Bill of Rights.
Existing law provides for a system of postsecondary education in
this state. This system includes 4 segments: the University of
California, administered by the Regents of the University of
California; the California State University, administered by the
Trustees of the California State University; the California Community
Colleges, administered by the Board of Governors of the California
Community Colleges; and independent institutions of higher education.

This bill would enact the Student Athlete Bill of Rights, pursuant
to which, commencing with the 2013-14 academic year, intercollegiate
athletic programs at 4-year institutions of higher education in the
state, as defined, that receive, as an average, $10,000,000 or
more in annual revenue derived from media
rights for
intercollegiate athletics,
would be required to comply with
prescribed requirements. Among other things, the bill would require
that, if an athletic program, as defined, does not renew the athletic
scholarship of a qualifying student athlete, as
defined, who suffers an injury resulting from his or her
participation in the athletic program or whose athletic scholarship
is not renewed for another nondisciplinary cause,
the
institution of higher education would provide an equivalent
scholarship, as prescribed. The
The bill would also require that athletic programs
that receive, as an average, $10,000,000 or more in annual revenue
derived from media rights for intercollegiate athletics
be
responsible for any and all medical expenses
paying the premiums
of each of its student athletes
whose household has an income and asset level that does not
exceed the level for Cal Grant A recipients, as specified, for
insurance covering claims
resulting from their participation in
the athletic program. The bill would provide that the athletic
program would be responsible for paying the insurance deductible
amount applicable to the claim of any student athlete who suffers an
injury resulting from his or her participation in the athletic
program and makes a claim relating to that injury. These provisions
would apply for up to 5 years after the date of the injury that is
the subject of the claim.

The bill would require that the institutions of higher education
to which these provisions relating to equivalent scholarships and
insurance coverage apply would rely exclusively on revenue derived
from media rights for intercollegiate athletics to defray any costs
accrued under these provisions.

These provisions would become inoperative on January 1, 2021.

The bill would establish the State Trust Fund under the
administration of the State Trust Fund Executive Board. The bill
would specify the membership of the State Trust Fund Executive Board,
and would provide that the Controller preside over that board. The
bill would continuously appropriate the funds deposited in the State
Trust Fund to the Controller for expenditure for purposes of the
Student Athlete Bill of Rights, thereby making an appropriation.

The bill, commencing with the 2013-14 academic year, would require
an athletic program that receives, as an average, $10,000,000 or
more in annual revenue derived from media rights for intercollegiate
athletics to pay a designated fee to the State Trust Fund.


The bill would require institutions of higher education subject to
its provisions to set aside a certain amount to be used for
achieving the gender equity requirements of a specified provision of
federal law.

The bill would require the executive board to submit a report to
the Governor and the Legislature with specified data related to fees
collected and funds disbursed under the bill on or before August 1,
2014, and on or before August 1 every 3 years thereafter. This
provision would become inoperative on January 1, 2021.

Vote: 2/3 majority . Appropriation:
yes no . Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. Part 40.3 (commencing with Section 67450) is added to
Division 5 of Title 3 of the Education Code, to read:

PART 40.3. STUDENT ATHLETE BILL OF RIGHTS


CHAPTER 1. PREAMBLE


67450. The Legislature finds and declares all of the following:
(a) Meeting the educational needs of student athletes should be a
priority for intercollegiate athletic programs.
(b) Football and basketball student

(b) California's institutions of higher education that participate
in Division I and Division II intercollegiate athletics collectively
generate millions of dollars annually in media contracts, and this
revenue would not exist without the efforts of student athletes.

(c) Student athletes generate
large revenues for many athletic programs, spend approximately 40
hours per week participating in their respective sports, and suffer
current and historically low graduation rates.
(c)

(d) Providing adequate health and safety protection for
student athletes can help prevent serious injury and death.

(d)

(e) Current and former student athletes can be left to
pay for medical expenses incurred from injuries suffered while
participating in intercollegiate athletics.
(e)

(f) Institutions of higher education should provide
their student athletes with the same due process protection afforded
to students who do not participate in athletics.
(f)

(g) Athletic programs in this state are subject to
federal
gender equity requirements under Title IX of the
Education Amendments of 1972 (20 U.S.C. Sec. 1681 et seq.).
(g)

(h) An institution of higher education should not
punish any student athlete for transferring to another institution of
higher education.
CHAPTER 2. GENERAL PROVISIONS


67451. For purposes of this part:
(a) "Athletic association" means any organization that is
responsible for governing intercollegiate athletic programs.
(b) "Athletic program" means an intercollegiate athletic program
at any institution of higher education within the meaning of
subdivision (f) (d) .
(c) "Athletic scholarship shortfall" means the difference between
an institution of higher education's cost of attendance and the sum
of a full grant-in-aid athletic scholarship, plus any stipend,
excluding summer school, preseason, postseason, tournament, and
expense payments.

(d) "Cost of attendance" means an institution of higher education'
s total annual instate oncampus expenses officially reported to the
United States Department of Education.

(e) "Executive board" means the State Trust Fund Executive Board
established pursuant to Section 67455.

(c) "Graduation rate" means the percentage of student athletes who
enroll at an institution of higher education who graduate from that
institution within six years of their initial enrollment.


(f)

(d) "Institution of higher education" means any campus
of the University of California or the California State University,
or any four-year private university located in California, that
maintains an intercollegiate athletic program.
(g) "State Trust Fund" means the State Trust Fund established
pursuant to Section 67455.

(h) "Qualifying student athlete" means a student athlete who
participates in either basketball or football, and who is in
compliance with athletic program academic and conduct standards.

(i)

(e) "Student athlete" means any college student who
participates in an intercollegiate athletic program of an institution
of higher education, and includes student athletes who participate
in basketball, football, and other intercollegiate sports.
67452. Commencing with the 2013-14 academic year, an athletic
program shall comply with all of the following:
(a) (1) (A) If an athletic program does not
renew an athletic scholarship of a qualifying
student athlete who has suffered an injury resulting from his or
her participation in the athletic program
, the institution of
higher education shall provide an equivalent scholarship that,
combined with the total duration of any previous athletic scholarship
or scholarships received by the student athlete, will be provided
for a total of at least five up to six
academic
years or until the student athlete completes his or
her undergraduate degree, whichever period is shorter.
(B) If a student athlete takes a temporary leave of absence from
an institution of higher education, the duration of that leave of
absence shall not count against the six-year limit on eligibility for
an equivalent scholarship imposed by subparagraph (A).

(2) If an athletic program does not renew an athletic scholarship
of a student athlete for a nondisciplinary cause other than an injury
resulting from his or her participation in the athletic program, the
institution of higher education shall provide an equivalent
scholarship, except that an athletic program with a graduation rate
that is above 60 percent, disaggregated by sport, shall not be
subject to the requirements of this paragraph.

(2)

(3) An athletic program may dismiss a student athlete
from participation in the program for cause. A student athlete who is
dismissed for cause from an athletic program shall receive no
benefits under this part, but may apply to the executive
board for reinstatement to eligibility for benefits under this part
appeal this decision within the institution of higher
education attended by the student or within the conference or
association of which that institution of higher education is a
member, as appropriate
.
(b) Each athletic program shall conduct a financial and life
skills workshop for all of its first-year and third-year student
athletes at the beginning of the academic year. This workshop shall
include, but not be limited to, information concerning financial aid,
debt management, and a recommended budget for full- and
partial-scholarship student athletes living on or off campus during
the academic year and the summer term based on the current academic
year's cost of attendance. The workshop shall also include
information on time management skills necessary for success as a
student athlete, and academic resources available on campus.
(c) An institution of higher education shall grant a student
athlete the same rights as other students with regard to any and all
matters related to possible adverse or disciplinary actions,
including, but not necessarily limited to, actions involving his or
her participation in the athletic program.
(d) An athletic program shall promptly approve a
qualifying
student athlete's written request to transfer to
another institution of higher education without actively or
passively imposing any restrictions or conditions. Implementation of
this subdivision by an institution of higher education shall include,
but not necessarily be limited to, both of the following:
(1) Granting other institutions of higher education permission to
contact the student athlete.
(2) Waiving residency requirements, as permitted by athletic
association rules.
(e) An institution of higher education that receives, as an
average, less than ten million dollars ($10,000,000) in annual income
derived from media rights for intercollegiate athletics, as
determined by the Controller, shall not be subject to the
requirements of this section.

(f) An institution of higher education to which this section
applies shall rely exclusively on revenue derived from media rights
for intercollegiate athletics to defray any costs accrued under this
section.

67453. (a) (1) An athletic program shall be
responsible for any and all medical expenses
paying the premiums of each
of its student athletes whose
household has an income and asset level that does not exceed the
level for Cal Grant A recipients set forth in Section 69432.7 for
insurance covering claims
resulting from their participation in
the athletic program. This subdivision shall apply
irrespective of whether the student athlete is still in school, has
graduated from the school, or has ceased being enrolled in the school
so long as the medical expenses result from the student athlete's
participation in the athletic program.

(2) An athletic program shall be responsible for paying the
insurance deductible amount applicable to the claim of any student
athlete who suffers an injury resulting from his or her participation
in the athletic program and makes a claim relating to that injury.

(3) This subdivision shall apply for up to five years after the
date of the injury that is the subject of the claim.

(b) An athletic program shall adopt and implement guidelines to
prevent, assess, and treat sports-related concussions and
dehydration. In addition, an athletic program shall adopt and
implement exercise and supervision guidelines for any student athlete
identified with potentially life-threatening health conditions who
participates in an athletic program.
(c) An institution of higher education that receives, as an
average, less than ten million dollars ($10,000,000) in annual income
derived from media rights for intercollegiate athletics, as
determined by the Controller, shall not be subject to the
requirements of this section.

(d) An institution of higher education to which this section
applies shall rely exclusively on revenue derived from media rights
for intercollegiate athletics to defray any costs accrued under this
section.

67454. This part shall become inoperative on January 1, 2021.

CHAPTER 3. STATE TRUST FUND


67455. (a) The State Trust Fund is hereby established under the
administration of the State Trust Fund Executive Board. The State
Trust Fund Executive Board shall consist of five members, as follows:

(1) The Controller, who shall serve as the presiding officer of
the executive board.
(2) A representative of the University of California, appointed by
and serving at the pleasure of the Regents of the University of
California.
(3) A representative of the California State University, appointed
by and serving at the pleasure of the Trustees of the California
State University.
(4) The President of the Association of Independent California
Colleges and Universities or his or her designee.
(5) A representative of the public, appointed by and serving at
the pleasure of the Governor.
(b) The executive board shall develop and adopt rules and
regulations for the implementation of this part.
(c) Notwithstanding Section 13340 of the Government Code, the
funds deposited in the State Trust Fund are continuously appropriated
to the Controller for expenditure for purposes of this part.
(d) (1) Commencing with the 2013-14 academic year, an institution
of higher education with an athletic program that receives, as an
average, ten million dollars ($10,000,000) or more in annual revenue
derived from media rights for intercollegiate athletics, as
determined by the Controller, shall be subject to this chapter.
(2) An institution of higher education that receives, as an
average, less than ten million dollars ($10,000,000) in annual income
derived from media rights for intercollegiate athletics is not
subject to this chapter if it submits a request for waiver to the
executive board. The executive board shall grant the waiver, and the
waiver shall remain valid unless and until the Controller determines,
at a later date, that the athletic program receives annual revenue
derived from media rights of at least an average of ten million
dollars ($10,000,000) in annual revenue over the duration of the
contract. The Controller shall periodically review the media rights
arrangements of institutions of higher education subject to this
part.
(e) (1) An institution of higher education subject to this chapter
shall pay to the State Trust Fund an annual fee that shall be the
sum of the following:
(A) An amount determined by the Controller to be equal to 25
percent of the most expensive cost of attendance among the
institutions of higher education in this state subject to this
chapter, multiplied by the total number of football and basketball
student athletes who receive an athletic scholarship at that
institution of higher education.
(B) An amount that equals the athletic scholarship shortfall
amount at the institution of higher education, as determined by the
Controller, plus interest based on each year's unsubsidized federal
Stafford Loan interest rate, multiplied by the total number of
football and basketball student athletes who receive an athletic
scholarship at any point during the academic year at that
institution. The Controller shall adjust this amount annually for
inflation according to the Consumer Price Index compiled by the
Bureau of Labor Statistics of the United States Department of Labor.
The State Trust Fund shall return this amount to the appropriate
institution of higher education if the Controller does not encumber
these funds and the funds are not used within two years from the
annual fee deadline date.
(2) A separate account shall be established in the State Trust
Fund for depositing the fees paid by each institution of higher
education subject to this chapter.
67456. An institution of higher education shall pay all fees by
June 1 of each academic year beginning on June 1, 2013. Each athletic
program shall pay a late fee of fifteen thousand dollars ($15,000)
for each calendar day after the deadline that the fee payment is
late. Any late fees shall be paid directly to the State Trust Fund,
and shall be subsequently distributed evenly among the eligible fund
recipients whose funds are put at risk due to a late payment.
67457. An institution of higher education shall set aside an
amount equal to the amount described in subparagraph (B) of paragraph
(1) of subdivision (e) of Section 67455 exclusively for achieving
compliance with the gender equity requirements of Title IX of the
Education Amendments of 1972 (20 U.S.C. Sec. 1681 et seq.). If Title
IX compliance in athletics, as determined by the executive board, is
achieved for a period of four consecutive years, any of these funds
not necessary for continuously maintaining Title IX compliance shall
not be subject to this section.
67458. (a) The executive board shall make public the amount of
fees collected from each athletic program and shall submit a detailed
report to the Governor and the Legislature on or before August 1,
2014, and on or before August 1 every three years thereafter. The
report required by this section shall be submitted pursuant to
Section 9795 of the Government Code.
(b) This section shall become inoperative on January 1, 2021.